CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 23, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 23, 2016

Direct tax Update

• Extension of due date to file returns in form GE-II for 1st three quarters of F.Y.2015-16 to 07.03.2016. Notification no. F3 (619)/POLICY/VAT/2016/1496-1506.
• Business set up expenses deductible despite of no business income. [Multi Act Realty Enterprises Pvt. Ltd vs. ACIT (ITAT Mumbai)].
• Expenses not generating capital asset are revenue in nature. [CIT vs. M/s Manganese Ore India Limited (Bombay High Court)].
• Reopening on incoherent reasons not valid u/s 147. [Sabharwal Properties Industries Pvt. Ltd. vs. ITO (Delhi High Court)].
• CBDT Mechanism to Identify of Duplicate PANs. ITBA-PAN Instruction No. 3 – (24/02/2016)
• CBDT vide its notification has exempted the Competition Commission of India from computing the income as part of the total income for income tax purpose. This includes amount received in the form of Government grants; fees received under the Competition Act, 2002; and interest accrued on Government grants and interest accrued on fees received under the Competition Act, 2002.
• IT:Disallowance u/s 40(a)(i) – TDS – commission payments to the nonresident agents are not taxable in India as the agents are remaining outside, services are rendered abroad and payments are also made abroad. When the transaction does not attract the provisions of Sec-9 of the Act then there is no question of applying Explanation 4 to Sec-9 – CIT, Chennai Vs. Farida Leather Co. (2016 (2) TMI 798 Gujarat High Court)
• IT:TDS u/s 194H – credit card commission to the banks are in the nature of normal bank charges and are not in the nature of commission within the meaning of Section-194H and therefore no tax is required to be deducted at source on the same – ITO Vs. Vijay Sales (2016 (2) TMI 786 ITAT Mumbai)

Indirect tax Update

• ST:The costs claimed to be reimbursibles are not attributable to the business auxiliary service rendered by the assessee but to the cost of the product itself. Not surprisingly the bank reimburses these expenses – demand of service tax with penalty set aside –Bhaven Desai Vs. CST, Mumbai (2016 (2) TMI 806 CESTAT Mumbai)
• MVAT: Changes in automation processes & other procedures. Trade Circular No. 7T of 2016 -(25/02/2016)

MCA Update

• MCA:Due to maintenance activity, Companies, LLP and VPD services will not be available intermittently on 27 FEB 10:00 PM to 28 FEB 8:00 AM.

Other Update

• Single Window Project-Problems in clearance of Ex-Bond Bills of entry in online clearance facility.F.No.450/147/2015-CUS-IV -(26/02/2016)
• Mutual Funds to trace owner of unclaimed redemption & dividend amounts. Circular No. SEBI/HO/IMD/DF2/CIR/P/2016/37 -(25/02/2016)
• NIRCgot its new Team for the year 2016-17 under the Chairmanship of CA Deepak Garg on 26 FEB 2016.
• Be with those who bring best in you and not stress in you.
• An error doesn’t become a mistake until you refuse to correct it.

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