Today updates:

DIRECT TAX:-

IT: Late filing fee u/s 234E – late filing of TDS return prior to 01 JUN 2015 – demand notices u/s 200A for intimation for payment of fee u/s 234E can be said as without any authority of law and the same are quashed and set aside to that extent – Sri Fatheraj Singhvi & Others Vs Union of India & Others (2016 (9) TMI 964 – Karnataka High Court)

IT: Adjustment in respect of levy of fees U/s 234E was indeed beyond the scope of permissible adjustments contemplated U/s 200A – Little Servants of Divine Providence Charitable Trust Vs ITO (TDS), Alappuzha (2016 (9) TMI 960 – ITAT Cochin)

CBDT notifies the institution approved by the national committee for Promotion of Social and Economic Welfare and approves the eligible projects or schemes as specified to be carried on by the said institutions and the estimated cost and also specify the maximum amount of such cost which may be allowed as a deduction under the section 35 AC for the period of approval vide Notification No. 61/2016 dated 22/09/2016.

ITAT Jaipur in the below-citied case held that no penalty can be imposed u/s 271B where the assessee firm could not get the accounts audited within the time limit prescribed u/s 44AB and there is no mala fide reason for not obtaining the accounts audited in time and penalty u/s 271B should not be imposed. ( M/s. Gemorium Vs. The ITO Ward- 5 (1), Jaipur)

IT: Assessee has directly deposited cash in the supplier’s account and has produced the bills, no evasion of tax by claiming the bogus expenditure in cash – Arun Kumar Mondal Vs ITO, W-2(2), Burdwan (2016 (9) TMI 995 – ITAT Kolkata)

INDIRECT TAX:-

CBEC Seeks to exempt taxable service provided by State Government Industrial Development Corporations/ Undertakings by way of granting long term (thirty years, or more) lease of industrial plots to industrial units from so much of service tax which is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease vide Notification No. 41/2016 –Service Tax dated 22/09/2016.

FAQ ON GST AS ISSUED BY CBEC

Q . Whether supplies made without consideration will also come within the purview of Supply under GST?

Ans. Yes, only those cases which are specified under Schedule I to the Model GST Law.

Q . Who can notify a transaction to be the supply of goods and/or services?

Ans. Central Government or State Government on the recommendation of the GST Council can notify a transaction to be the supply of goods and/or services.

1. Will a taxable person be eligible to opt for a composition scheme only for one out of 3 business verticals?

Ans. No, composition scheme would become applicable for all the business verticals/registrations which are separately held by the person with the same PAN

1. Can a composition scheme be availed if the taxable person affects inter-State supplies?

Ans. No, the composition scheme is applicable subject to the condition that the taxable person does not affect inter-state supplies.

1. Can the taxable person under the composition scheme claim the input tax credit?

Ans. No, a taxable person under the composition scheme is not eligible to claim an input tax credit.

1. Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as an input tax credit?

Ans. No, a customer who buys goods from a taxable person who is under the composition scheme is not eligible for composition input tax credit because a composition scheme supplier cannot issue a tax invoice

1. Can composition tax be collected from customers?

Ans. No, the taxable person under the composition scheme is restricted from collecting tax. It means that a composition scheme supplier cannot issue a tax invoice.

1. What is the threshold for opting to pay tax under the composition scheme?

Ans. The threshold for the composition scheme is Rs. 50 Lakhs of aggregate turnover in the financial year.

GST UPDATES:-

Under GST apply for registration in 30 days from becoming liable, to claim ITC of inputs in stock on the date preceding the date of liability.

GST: CBEC released Frequently Asked Questions (FAQ) on GST on 21.09.2016. Link thttp://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/faq-on-gst.pdf

GST Gyan 1029. proposal to compensate states for revenue loss in the first 5 years on the basis of average revenue of 2013-14, 2014-15 & 2015-16.

COMPANY LAW UPDATES:-

 MCA has made an amendment to the Companies (Management and Administration) Rules, 2014. These rules may be called the Companies (Management and Administration) Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette.

MCA has released the revised versions of e-forms – form CRA-2, form CRA-4, form SH-8,  form CHG-4, form MR-2. The revised forms will be available on the portal w.e.f  22nd September, 2016 of MCA.

SEBI Updates:-

NSE & BSE issue circulars mandating listing cos. to comply with SEBI clarification requiring ‘Income from Operations’ to be disclosed inclusive of excise duty vide Ref No: NSE/CML/2016/12 dated 20/09/2016.

SEBI has issued new norms for risk management at commodity markets to strengthen the Risk Management framework. (Circular no. SEBI/HO/CDMRD/DRMP/CIR/P/2016/90).

ICAI Updates:-

The Direct Taxes Committee, Indirect Taxes Committee, and Committee on International Taxation of ICAI are in the process of identifying issues for inclusion in the Pre-Budget Memoranda – 2017 to be submitted to the Ministry of Finance or respective State Ministry.

Key Dates:

Advance information in BE_2  Form or 1st fortnight of Oct of functions with booking cost more than Rs 1 lakh in Banquet Halls, hotels, etc. in Delhi for DVAT -27/09/2016

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