CORPORATE AND PROFESSIONAL UPDATE DEC 27, 2016
www.caindelhiindia.com; Corporate updates
Table of Contents
DIRECT TAX:-
- CBDT has issued a circular via circular no. 42 of 2016 regarding clarifications on the Direct Tax Dispute Resolution Scheme, 2016. This scheme provides an opportunity for taxpayers who are under litigation to come forward & settle the dispute in accordance with the provisions of the scheme.
- ITAT Bench Jaipur in the below-cited case held that if the assessee has treated the securities as the investment and not as stock in trade earlier years, the revenue is not permitted to take a contrary view in the present years to claim that the security is stock in trade. [The DCIT Circle-2 Vs Shri Mahender Kumar Bader]
- ITAT Kolkata held that Sections 194C(6) and Section 194C(7) are independent of each other, and cannot be read together to attract disallowance u/s 40(a)(ia) read with section 194C of the Act; and if the assessee complies with the provisions of section 194C(6), no disallowance u/s 40(a)(ia) of the Act is permissible, even there is violation of the provisions of Section 194C(7) of the Act. [Soma Rani Ghosh Vs Deputy Commissioner of Income Tax].
- Where assessee claimed deduction under section 80-IA(10) for entire project, allowance of deduction proportionately justified Commissioner of Income-tax-21 v. Aakash Nidhi Builders & Developers [2016] (Bombay).
- 147 reopening opens a “Pandora’s box” and cannot be done in a casual manner. The reasons cannot be based on mere doubts or with a view to verify basic facts. If the AO takes the view that the income referred to in the reasons has not escaped assessment, he loses jurisdiction to assess other escaped income that comes to his notice during reassessment Torm Shipping India Pvt Ltd vs. ITO (ITAT Mumbai).
- ITAT DELHI, in the below-cited case, held that the renovation made by the assessee company is in the nature of a permanent structure that cannot be covered under current repairs as provided in section 30 of the IT Act, 1961. Such work as made by the assessee company is meant to be capital expenditure in nature on which depreciation cannot be allowed of 100%. [ M/s. Ripe Component Technologies Pvt. Ltd. V/s ACIT (ITAT Delhi)].
Indirect Tax:-
- CESTAT Ahemdabad held that the requirement under Rule 6(4A) and 6(4B) of the service tax rules, 1994 to intimate the department regarding the adjustment of excess service tax paid is only procedural in nature and such infringement of the procedure is not serious enough to deny the benefit of suo-motto adjustment of excess service tax paid. [M/s. L&T Sargent & Lundy Ltd Vs Commissioner of Central Excise & S.T, Vadodara]
- CESTAT Chennai in the below-cited case held that merely because the assessee has not reverse credit attributable to the provision of exempted services would not disentitle it to claim credit which is otherwise available in respect of input services used in the provision of taxable services. [SIFY Technologies ltd. Vs Commissioner of Service Tax, LTU Chennai].
GST Update:-
- In GST Enrollment, Aadhar No of primary Authorized Signatory must be given if we want to use the E-sign facility for signing enrolment and other forms.
- In Revised Draft GST Law, Securities has been excluded from definitions of Goods & Services. So no GST will be applicable on shares, bonds, etc.
RBI Update:-
- Rate of royalty approved by RBI couldn’t be considered to determine ALP Sara Lee TTK Ltd. v. Deputy Commissioner of Income-tax, Range-10(2), Mumbai [2016] (Mumbai – Trib.)
- RBI has advised all the Regulated Entities (REs) to strictly comply with the extant instructions stipulated in the Master Direction on Know Your Customer (KYC).
Companies Act Update:-
- MCA has issued the Companies (Compromises, Arrangements, and Amalgamations) Rules, 2016 which shall become into force with effect from 15th December 2016.
Other Update:-
- The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post facto approval of the MoUs signed in 2008 and 2011 and the renewal of the Memorandum of Understanding (MoU) between the (ICAI) and College of Banking and Financial Studies (CBFS), Oman.
- SEBI has issued a circular regarding the filing of forms PAS-4 and PAS-5 in case of issuance of Debt Securities on a private placement basis.
- Cheque bounce is a bailable offense under the current law, which enables defaulters to stay away from jail as long as the trial is on, the government could make the law a non-bailable offense.
- Allahabad High Court in the below cited case held that the attachment of property and bank accounts can only be done by the revenue authorities after giving proper notice to the assessee and reasonable opportunity of being heard. The attachments need to be only after following the prescribed procedures provided in the rules. [M/s kunj Power Project Pvt. Ltd. Vs Union of India].
- ICAI issues mandatory KYC Norms applicable w.e.f 1.1.2017.
Key Dates:-
- Payment of TDS for purchase of property for Nov: 30.12.2016.
- Advance information of 2nd fortnight of Dec functions with booking cost > RS 1 lakh in Banquet Hall, hotels etc in Delhi: 12/12/2016
- Payment of Advance Income Tax for all assessee’s (75%): 15/12/2016
- E-Payment of PF for Nov: 15/12/2016
- E- Payment of DVAT & CST for Nov: 21.12.2016
- Issue of DVAT Certificate for Deduction made in Nov: 22.12.2016
“Two roads diverged in a wood and I took the one less traveled by, and that made all the difference.”
“Life is like a coin, Pleasure and pain are the two sides. Only one side is visible at a time, but remember other side also waiting for its turn”
“Some men see things as they are, and ask why. I dream of things that never were, and ask why not”
“When I dare to be powerful, to use my strength in the service of my vision, then it becomes less and less important whether I am afraid.”
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