CORPORATE AND PROFESSIONAL UPDATES JULY 6, 2016
Today updates:
DIRECT TAX:
Income Tax : ITAT in the given case held that-as the international transactions of payment of royalty and fees for technical services are separate transactions and not closely linked with the other transactions with which the assessee has merged them, we cannot permit such merger or aggregation for the purpose of the determining their ALP on entity level under TNMM. (Gruner India Pvt. Ltd. Vs. DCIT, New Delhi)
Income Tax : S. 37(1): Expenditure on Corporate Social Responsibility (CSR), though voluntary, is allowable as business expenditure. Explanation 2 to s. 37(1) inserted w.e.f. 01.04.2015 is not retrospective. It applies only to CSR expenditure referred to in s. 135 of the Companies Act and not to voluntary CSR expenditure ACIT vs. Jindal Power Limited (ITAT Raipur)
Income Tax: No notional interest on belated payments by AE when assessee allows credit period to non-AEs as well GSS Infotech Ltd. v. Assistant Commissioner of Income-tax, Circle-2(2), Hyderabad
[2016] 70 taxmann.com 356 (Hyderabad – Trib.)
Income Tax: Apex Court admits SLP of revenue against ‘Vodafone India’ to decide taxability of transfer of call option rights
Commissioner of Income-tax-3 v. Vodafone India Services (P.) Ltd. [2016] 70 taxmann.com 383 (SC).)
INDIRECT TAX:
Vat & sales tax: Department of Trade & Taxes has issued a circular regarding description of goods /Items along with their item codes vide circular No. 10 /2016-17 dated 01.07.2016.All registered dealers of Delhi are mandatorily required to file their returns as per the list made by the department for the tax period commencing from 1st April, 2016 and all subsequent tax periods. The list along with item codes has been uploaded on the website of the department.
CBEC has issued a circular regarding recovery of confirmed demands during the pendency of stay application vide circular No. 1035/23/2016-CX dated 04-07.2016.
OTHER UPDATES:
COMPAT quashes CCI’s penalty order of Rs. 6.75 crores on India Trade Promotion Organisation India Trade Promotion Organisation v. Competition Commission of India , New Delhi [2016] 71 taxmann.com 71 (CAT – New Delhi)
Time period u/s 139 to comply with provisions of rotation, changed to 1st AGM held after 3yrs from commencement of Companies Act, 2013. Removal of Difficulties 3rd Order, 2016.
KEY DATES :
E- Payment of service tax for June: 06/07/2016
Payment of TDS for the month of June: 07/07/2016
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