CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 1, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 1, 2016

DIRECT TAX

• Non deduction of tax at source in respect of interest on debenture u/s 193 – Mere because of Provision made in the books of account as per Accounting Standards where no income has accrued to or has been received by then debenture holders TDS not required to be deducted – Assessee cannot be treated in default- (Income-tax Officer (TDS) -3 (4) , Mumbai v. Baroda Rayon Corpn. Ltd. – 2016 (2) TMI 30 – ITAT MUMBAI)

• Addition of long term capital gain – Since the possession of the property was to be given to the developer only upon fulfillment of the conditions of the agreement i.e. last payment therefore there is no transfer in terms of section 2(47)(v)- (ITO-19 (3) (3) , Mumbai Versus Ms. Mehrunnisa Jagirdar – 2016 (2) TMI 32 – ITAT MUMBAI)
• Shares couldn’t be said to be held for trading purposes just because they were sold in 7 days to diversify portfolio.
• Order of SetCom could not be challenged just because taxpayer hadn’t made true disclosure of income before AO.

INDIRECT TAX

• Taxability of services – Nature of activity – transfer of right to use goods – effective control and possession of the subject System stands transferred to the Customer – The activity proposed to be undertaken by applicant is not liable to Service Tax-(M/s SICPA India Pvt. Ltd. New Delhi Versus Commissioner of Service Tax, Commissioner of Trade And Taxess, Govt. of NCT of Delhi – 2016 (1) TMI 1066 – AUTHORITY FOR ADVANCE RULINGS)

• Nature of agreement – sales agreement or service agreement – activity proposed IDEAS Oman will be selling educational books and printed manuals for onward sale to organizations in India via Creative Problem Solving India Mumbai – Not liable to service tax- (M/s. Creative Problem Solving India Versus Commissioner of Service Tax-VI – 2016 (1) TMI 1065 – AUTHORITY FOR ADVANCE RULINGS)

• Form DP-1 to be submitted online by all dealers latest by 29.02.2016 notified vide partial modification of notification no. F.3(352)Policy/VAT/2013/1210-21 dated 01/02/2016

• Rate of exchange of conversion of the foreign currency with effect from 2nd February, 2016 notified

FAQ ON COMPANY LAW

A woman can become Karta of HUF if she is eldest member of a family, rules Delhi HC

Query: We have a query regarding CSR. Our Company satisfies the provisions of Section 135 and recently our company has introduced a scheme for the benefit of employees & their families. Will it be treated as CSR activity or not. Please advice.

Answer: No, projects or programmes or activities that benefit only the employees of the Company and their families shall not qualify as CSR activities.

OTHER UPDATE 

Certificate Course on Concurrent Audit of Banks batch at Delhi has been postponed. now it will be held on 6 February, 2016 instead of 30 January, 2016.

Due date of filing DVAT return in form DVAT-16, DVAT-17 & DVAT-48 for Q3 of 2015-2016 extended to 05.02.2016. Circular no. 36 of dated. 28.01.2016.

 The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact :  info@caindelhiindia.com or call  at 011-233 43 333

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