CORPORATE AND PROFESSIONAL UPDATES JULY 22, 2016
Today updates:
DIRECT TAX:
Income tax : No TDS on transportation charges reimbursed by buyer if seller is liable to pay such charges to GTA Hightension Switchgears (P.) Ltd. v. Commissioner of Income-tax [2016] 71 taxmann.com 207 (Calcutta
Income Tax Department to issue 7 lakh letters seeking Information in respect of High Value Transactions CBDT Press Release Dated 21st July, 2016
Income tax : SLP granted against High Court’s ruling that where assessee, a Mauritius based telecaster of TV channels, carried out entire activities from Mauritius and its affiliates/agents in India were remunerated on arm’s length basis for carrying out only routine functions in India, they did not constitute assessee’s PE in India – [2016] 71 taxmann 182 (SC)
INDIRECT TAX:
Excise : In case of stock-transfer of goods by assessee-EOU to its DTA unit, in computing excise duty equal to notional customs duty, “Special CVD/Special Additional Duty (SAD)” component of ‘notional customs duty’ would be exempt, if goods are not exempted from sales-tax. [2016] 71 149 (Mumbai –CESTAT)
Service tax : Where assessee, a restaurant, opted to pay tax under Composition Scheme, whereas Assessing Authority passed reassessment order on assessee and denied him benefit of Composition Scheme based on ground that during year he purchased from outside State tiles and since they were ‘goods in stock’, there was a violation of conditions and restrictions imposed under rule 135(2), as tiles were fixed in floor of restaurant, they could not be said to be ‘goods in stock’ – [2016] 71 taxmann 77 (Karnataka)
COMPANY LAW UPDATES:
Query: Whether vacancy arising in the office of an independent director of a limited company – a casual vacancy?
Answer: As per the explanation to sub-section (4) of section 152, Independent director would not be counted for the purpose of determining the total number of directors who are liable to retire by rotation. Therefore, he would not be a director retiring by rotation and a vacancy arising in the office of an independent director is not a causal vacancy
OTHER UPDATES:
CBEC has issued a circular regarding Manual Signature on digital signed invoices vide circular no. 1038/26/2016-CX dated 19th July 2016. It is hereby clarified that the manufacturer or service provider who opts to issue invoices authenticated by digital signature may print a copy of such invoice and sign them manually and forward the same to such customers who are unable to accept or receive the digitally signed invoices.
Key dates :
Issue of DVAT certificate (DVAT-43) for deduction made in the month of June- 22/07/2016
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