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

“If you want to achieve greatness stop asking for permission.”

Don’t fear from facing failure in the first attempt, because even the successful moths starts with zero only.

There was never a night that could defeat sunrise, as equally there is never a problem that could defeat hope. Hope for the best always.

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