{"id":2746,"date":"2016-10-05T18:46:44","date_gmt":"2016-10-05T13:16:44","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=2746"},"modified":"2021-08-13T15:15:22","modified_gmt":"2021-08-13T09:45:22","slug":"corporate-and-professional-update-oct-5-2016","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE OCT 5, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc5955e6ef7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc5955e6ef7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/#Direct_Tax\" title=\"Direct Tax:-\">Direct Tax:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/#Indirect_Tax\" title=\"Indirect Tax:-\">Indirect Tax:-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/#_MCA_UPDATE\" title=\"\u00a0MCA UPDATE: \">\u00a0MCA UPDATE: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/#RBI_UPDATE\" title=\"RBI UPDATE: \">RBI UPDATE: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/#GST_UPDATE\" title=\"GST UPDATE: \">GST UPDATE: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-oct-5-2016\/#FAQ_on_GST_issued_by_CBEC\" title=\"FAQ on GST issued by CBEC\">FAQ on GST issued by CBEC<\/a><\/li><\/ul><\/nav><\/div>\n<p>Professional Update For the Day:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/02\/1-768x407.png\" alt=\"1\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Direct_Tax\"><\/span><strong><u>Direct Tax:-<\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CBDT notifies ICDS to be applicable w.e.f. AY 2017-18 for all assesses other than individual &amp; <a href=\"https:\/\/carajput.com\/blog\/tag\/hindu-undivided-family-huf\/\">HUF (<\/a>who are not under audit u\/s 44AB) following mercantile system of accounting for the purposes of computation of income chargeable to income-tax under the head \u201cProfits and gains of business or profession\u201d or \u201cIncome from other sources\u201dvide Notification No. 87\/2016 dated 29\/09\/2016.(Click here to view)<\/p>\n<p>CBDT has issued Income tax (23rd\u00a0Amendments) Rules, 2016 vide\u00a0Notification No. 88\/2016 dated 29\/09\/2016.These Rules shall come in to force with effect from 1st\u00a0April, 2017.(Click here to view)<\/p>\n<p>CBEC has issued revised guidelines for arrest in relation to Service Tax offences punishable under the\u00a0Finance Act, 1994 and Central Excise Act, 1944, Circular No. 201\/11\/2016-Service Tax dated. 30.09.2016.<\/p>\n<p>Assessee could not get the accounts audited within the time limit prescribed u\/s 44AB and if there is no mala fide reason for not obtaining the accounts audited in time than penalty u\/s 271B should not be imposed &#8211; Gemorium Vs ITO W-5(1), Jaipur (ITAT Jaipur).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Indirect_Tax\"><\/span><strong><u>Indirect Tax:-<\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>CBEC has issued guidelines for arrest in relation to offenses punishable under the Finance Act, 1994 and Central Excise Act, 1944 vide Circular No. 201\/11\/2016 dated 30\/09\/2016.(Click here to view)<\/p>\n<p>CBEC has exempted the service tax on transportation to educational institutions vide Notification No. 45\/2016 dated 30\/09\/2016.(Click here to view)<\/p>\n<p>Judgment of Delhi high court quashing Rule 5A(2) of service tax rules, 1994 and holding service tax audits as invalid, has been stayed by the supreme court; hence, for time being, service tax audits may continue.[SC of India vs. Mega Cabs (p.) Ltd].<\/p>\n<h2><span class=\"ez-toc-section\" id=\"_MCA_UPDATE\"><\/span><strong><u>\u00a0MCA UPDATE: <\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>MCA has introduced SPICE (simplified proforma for incorporating Company electronically) w.e.f. 02.10.2016 in e-form INC-32.<\/p>\n<p>Form INC-32, INC-33, INC-34 under simplified Performa for Incorporating Companies electronically are available as notified by Comp. (Fourth) Amendment Rules, 2014.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"RBI_UPDATE\"><\/span><strong><u>RBI UPDATE: <\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/tag\/rbi\/\">RBI<\/a> has cuts the Repo rate by 25 bps now The *new Repo rate is 6.25%.* This will make the loan rate cheaper.<\/p>\n<p>RBI issued a circular regarding\u00a0Investment by foreign portfolio Investors (FPI) in government securities vide Circular No. 4\/2016 dated 30\/09\/2016.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST_UPDATE\"><\/span><u><\/u><strong><u>GST UPDATE<\/u><\/strong><strong>: <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under GST Composition Scheme is not applicable if assessee makes Inter- state supplies or pays tax on Reverse Charge basis.<\/p>\n<p>Under GST no need to file GST RFD-01 for refund of balance in electronic cash ledger. Same can be claimed through return forms GSTR-3, 4 &amp; 7.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQ_on_GST_issued_by_CBEC\"><\/span><strong><u>FAQ on GST issued by CBEC<\/u><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Q 1.\u00a0What is the taxable event under GST?<\/p>\n<p>Ans.\u00a0The taxable event under GST shall be the supply of goods and \/ or services made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as \u2018supply\u2019.<\/p>\n<p>Q 2.\u00a0What is the meaning of \u2018Supply\u2019?<\/p>\n<p>Ans.\u00a0The term \u2018supply\u2019 is wide in its import and includes all forms of supply of goods and \/ or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of service. The model GST law also provides for including certain transactions made without consideration within the scope of supply.<\/p>\n<p>Q 3.\u00a0What is a taxable supply?<\/p>\n<p>Ans.\u00a0A \u2018taxable supply\u2019 means a supply of goods and \/ or services which is chargeable to good and services tax under the GST Act.<\/p>\n<p>Q 4.\u00a0What are the necessary elements that constitute supply under MGL?<\/p>\n<p>Ans.\u00a0In order to constitute a \u2018supply\u2019, the following elements are required to be satisfied, i.e.-<\/p>\n<p>(i)\u00a0 supply of goods and \/ or services;<\/p>\n<p>(ii)\u00a0 supply is for a consideration;<\/p>\n<p>(iii)\u00a0 supply is made in the course or furtherance of business;<\/p>\n<p>(iv)\u00a0 supply is made in the taxable territory;<\/p>\n<p>(v)\u00a0 supply is a taxable supply; and<\/p>\n<p>(vi)\u00a0 Supply is made by a taxable person.<\/p>\n<p><strong>Read our articles:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/e-invoice-mechanism-under-the-gst\/\"><strong>E-Invoice Mechanism under the GST<\/strong><\/a><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/blocking-the-e-way-bill-creation-system-if-fails-to-file-gstr-3b-gstn\/\">Blocking\/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/reasons-for-the-movement-of-goods-under-the-gst\/\">Reasons for the Movement of Goods under the GST<\/a><\/strong><\/li>\n<\/ul>\n<p>Q 5.\u00a0Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?<\/p>\n<p>Ans.\u00a0Yes. Under certain circumstances such as importation of service (Section 3(1) (b)) or supplies made without consideration, specified under Schedule-I of MGL, where one or more ingredients specified in answer to question no. 4 are not satisfied, it shall still be treated as supply under GST Law<\/p>\n<p>Q 6.\u00a0Importation of Goods is conspicuous by its absence in Section 3. Why?<\/p>\n<p>Ans.\u00a0Importation of goods is dealt separately under the Customs Act, 1962, wherein IGST shall be levied as additional duty of customs in addition to basic customs duty.<\/p>\n<p>Q 7.\u00a0Are self-supplies taxable under GST?<\/p>\n<p>Ans.Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise registration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable.<\/p>\n<p>Q 8.\u00a0Whether transfer of title and\/or possession is necessary for a transaction to constitute supply of goods?<\/p>\n<p>Ans.\u00a0Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1). In some cases, possession may be transferred immediately but titled may be transferred at a future date like in case of sale on approval basis or hire purchase arrangement. Such transactions will also be termed as supply of goods.<\/p>\n<p>Q 9.\u00a0What do you mean by \u201csupply made in the course or furtherance of business\u201d?<\/p>\n<p>Ans.\u00a0No definition or test as to whether the activity is in the course or furtherance of business has been specified under the MGL. However, the following business test is normally applied to arrive at a conclusion whether a supply has been made in the course or furtherance of business:<\/p>\n<p>Is the activity, a serious undertaking earnestly pursued?<\/p>\n<p>Is the activity is pursued with reasonable or recognisable continuity?<\/p>\n<p>Is the activity conducted in a regular manner based on sound and recognised business principles?<\/p>\n<p>Is the activity predominantly concerned with the making of taxable supply for consideration\/ profit motive?<\/p>\n<p>The test may ensure that occasional supplies, even if made for consideration, will not be subjected to GST.<\/p>\n<p>Q 10.\u00a0An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.<\/p>\n<p>Ans.\u00a0No, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was meant for non-business use.<\/p>\n<p>Q 11.\u00a0A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?<\/p>\n<p>Ans\u00a0Yes. As per Schedule-I (1) business assets put to a private or non-business use without consideration will be treated as supply.<\/p>\n<p>Q 12.\u00a0Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?<\/p>\n<p>Ans.\u00a0Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of \u2018business\u2019 in section 2(17) of MGL.<\/p>\n<p><u><\/u><strong><u>Key Dates:<\/u><\/strong><\/p>\n<p>Excise payment for Non SSI for the month of September by G.A.R.- 7 challan-06\/10\/2016<\/p>\n<p>Service tax payment for the company for the month of September by G.A.R.- 7 challan-06\/10\/2016<\/p>\n<p>Service tax payment for Individuals\/Proprietory\/ Partnership Firms for the quarter ended by G.A.R.- 7 challan-06\/10\/2016<\/p>\n<p>Submission of TCS forms (27C) received in sep to IT Commissioner-\u00a007\/10\/2016<\/p>\n<p>Payment of TDS\/TCS challan No. 281-07\/10\/2016<\/p>\n<p>The biggest enemy of success is fear of failure. So when fear knocks at your door send courage to open the door and Success will wait for you.<\/p>\n<p>&#8220;Change will not come if we wait for some other person or some other time. We are the ones we&#8217;ve been waiting for. We are the change that we seek.<\/p>\n<p>We look forward for your valuable comments.\u00a0<a href=\"https:\/\/l.facebook.com\/l.php?u=http%3A%2F%2Fwww.carajput.com%2F&amp;h=gAQHsWv16AQFzlc4f70dAECucTda_B9jilKfCgneeqqu7PA&amp;enc=AZPUk1qSy7_DGmookvElFjnUXYX3K0FPXVQ6LxfUnjgljqDX0P6jFZnpNH5t7Yt6TpvPD_TBP30DWaadPDKvaBy4FKUuIg27nk64qxy4GjjzfG96BrSAO9DKSM7QZ-zRr0H_1seDnwx81zv7LENE7mngqEq05doeSutrNoPIQRvjIbEFb_PEZA8D1pUlJzy7MCsIwWN_xt9o3UmaFFdtL9S1&amp;s=1\">www.carajput.com<\/a><\/p>\n<p>FOR FURTHER QUERIES CONTACT US:<\/p>\n<p>W:\u00a0<a href=\"https:\/\/l.facebook.com\/l.php?u=http%3A%2F%2Fwww.carajput.com%2F&amp;h=SAQGflxq6AQEemiXU5m1Sleu5gX786YxP36euwMDL4osVrw&amp;enc=AZNOhiS8emvOi54UCNVnOtgbK0wGSKeEDPbJpQZAlf7cr5YxodSOowKyOSqQSaPOGvHdnvM7BqIC59kJjZSk01ga1fRZiYW43kCBMakJLj2AABFBk9rS2CYBcAfrJuc94lg0aPhuGpayaxGpsPeGoOhC-uzXppp1p3gEF_2Ypq758ZRU2ATuk77eX5g1paVf-MLMxpH-3DA9l9FUmq44lBe_&amp;s=1\">www.carajput.com<\/a>\u00a0\u00a0\u00a0 E: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0:, 9-555-555-460<\/p>\n<p><!--more--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Professional Update For the Day: Direct Tax:- CBDT notifies ICDS to be applicable w.e.f. AY 2017-18 for all assesses other than individual &amp; HUF (who are not under audit u\/s 44AB) following mercantile system of accounting for the purposes of computation of income chargeable to income-tax under the head \u201cProfits and gains of business or &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,150,9,4],"tags":[9180,9032,906,9182,9181],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2746"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=2746"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2746\/revisions"}],"predecessor-version":[{"id":15674,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/2746\/revisions\/15674"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=2746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=2746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=2746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}