CORPORATE AND PROFESSIONAL UPDATE AUG 22, 2016 :
Today updates:
DIRECT TAX:
- CBDT Notification Reg. Adoption of Indexed Stamp Duty Value for Income Declaration Scheme. Notification dated 17th August 2016.
- Those disclosing unaccounted wealth under (IDS) will have the option of paying the tax on such income in cash, the income-tax department has clarified through a fifth set of frequently asked questions (FAQs).
- Interest disallowed under section 57(iii) – interest for the same borrowing has been allowed in the immediately preceding year .it was held that It would not be equitable to permit the revenue to take a different stand subsequently in respect of the amounts which were the subject matter of previous years assessment.(Virendra R Gandhi Versus Deputy Commissioner Of Income Tax Central Circle 1 (4) )- 2016 (8) TMI 516 – Gujarat High Court )
- CBDT has issued Income Declaration Scheme (Third Amendments)Rules ,2016 vide Notification No. 74/2016 dated 17/08/2016. (Click here to view)
- CBDT has issued clarification on the Income Declaration Scheme vide Circular No. 29/2016 dated 18/08/2016.This was the 5th Set of FAQs issued on the subject. With this, CBDT has clarified/answered to a total 58 issues relating to practical implementation of IDS, 2016.
- Delhi HC reverses ITAT order for AY 2006-07, lump sum amount received by assessee-individual (a doctor) on account of professional/management consultancy taxable in entirety on receipt basis. It Rejected assessee’s stand that since amount was received as advance on account of appointment as hospital/management consultant for five years, it should be spread over the period of service i.e. five years in view of matching principle.[TS-447-HC-2016(DEL) ]
Indirect Tax:
- CBEC has issued a clarification onService Tax liability in case of hiring of goods without the transfer of the right to use goods vide Circular No. 198/08/2016 dated 17/08/2016. (Click here to view)
- Even a motor vehicle can be treated as machinery if it is used in execution of works contract under Gujarat VAT (State of Gujarat v. Yantraman Automac (P.) Ltd. [2016] 72 taxmann.com 62 (Gujarat).
- Service tax paid on medi-claim insurance for the employees – Held that – the issue is no more res integra and has been settled in favour of the assessee in various decisions of the Tribunal as well as High Courts.(M/s Nalwa Steel and Power Limited Versus CCE & S.T., Raipur) – 2016 (8) TMI 630 – CESTAT NEW DELHI – Service Tax
- On STBA representation dated 09.08.2016 the following problems resolved by the Delhi VAT Department.
- In Item code with rate of 12.5% the option of others would now be working.
- Restaurant & Halwai dealers under composition Scheme can now file returns without filing commodity in Annex-2B.
- C forms can now be uploaded even if dealer has not filed the return for Q-1 2016.
- Labour & service charges can now be filled in Annex 2A/2B without item Code.
GST UPDATE:
- GST provisional registration for existing Service tax, VAT etc assesses for 6 months. Final registration after submitting necessary details.
- GST a legislative accomplishment by Narendra Modi: US expert
- The landmark Goods and Services Tax (GST) bill passed by Parliament recently is a legislative accomplishment by Prime Minister Narendra Modi which even his harshest critics cannot not dismiss, a top US expert has said.
- GST Bill likely to be ratified by 11 more states
- Moderate taxes, high evasions cannot coexist: Arun Jaitley
- Credit can’t be denied merely due to discrepancies in transport documents
- Cenvat Credit : If inter-state movement of inputs is recognized by sales-tax authorities at check-posts, then, merely due to discrepancies in transport documents/dates, department cannot deny credit alleging that inputs were never received [2016] 72com 172 (New Delhi – CESTAT) S. Pal Enterprises (P.) Ltd. v. Commissioner of Central Excise & Service Tax.
COMPANY LAW UPDATE :
- MCA issues The Companies (Share Capital and Debentures) Fourth Amendment Rules, 2016, effective from 12.08.16. MCA Notification dated 12.08.16.
- Where the shareholders are present in the meeting and willing to participate in the meeting, it cannot be held that it is impracticable to call the meeting. [Vil ltd. vs. Raibareilly Allahabad Highway (p.) Ltd. (clb) Delhi].
OTHER UPDATE
- Since there is nothing in the Limitation Act to ascribe a broader meaning to the expression ‘court’ used in it so as to include within it the Company Law Board, no particular limitation period can be prescribed for application under sub-section (4).[ Sulochana neelkanth kalyani vs. Takle invest co. ( HC Bombay)].
- Indian Overseas Bank invites application for empanelments of concurrent audit. The firm or its prop/partners have not been the subject of inquiries in the past by the ICAI.
KEY DATES:
- Issue of DVAT certificate for deduction made for the month of July-22/08/2016
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