/ Company Law Compliances

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 14, 2016

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 14, 2016

www.caindelhiindia.com; CORPORATE UPDATES
www.caindelhiindia.com; CORPORATE UPDATES

DIRECT TAX

TDS : challenge to the notices / summonses issued u/s 201 – no order u/s 201(i) can be passed for which limitation had already expired prior to amended section 201(3) as amended by Finance Act No.2 of 2014 – The impugned notices / summonses held to be invalid quashed and set aside – HC – TATA TELESERVICES Versus UNION OF INDIA & 1 – 2016 (2) TMI 414 – GUJARAT HIGH COURT

Royalty u/s 9(1)(vi) read with DTAA: It is fallacious to assume that any change made to domestic law to rectify a situation of mistaken interpretation can spontaneously further their case in an international treaty. Therefore mere amendment to Section 9(1)(vi) cannot result in a change – HC – Director of Income Tax Versus New Skies Satellite BV, Shin Satellite Public Co. Ltd. – 2016 (2) TMI 415 – DELHI HIGH COURT

Sec 68: No addition where parties have sufficient bank balance while giving loans. [ITO vs. Rekha Bansal (ITAT Delhi), I.T.A.No.4455/Del/2013 & C.O. No. 43 / Del/ 2014, AY 2009-10].

Subsidy to set up a new unit or to expand an existing unit is capital receipts, purpose test will prevail. [M/s. Shivalik Prints Limited vs. ACIT (ITAT Delhi), ITA No.4698/Del./2011]

Interest subsidy for repayment of loan acquired for acquisition of capital assets, is capital receipts. [DCIT vs. M/s J.K. Cement Ltd. (ITAT Lucknow), ITA No.499/LKW/2010, ITA No.247 / LKW/2011, ITA No.180/LKW/2012, ITA No.570/LKW/2012 & ITA No.668/LKW/2014]

Indirect Tax

CG directed that whole duty of excise payable on Di-Calcium Phosphate of rock phosphate shall not be required to be paid in respect of said goods on which said duty is not levied during the period commencing on 1stFebruary, 2008 and ending with 1st February, 2014 Vide Notification No. 04/2016- Central Excise (N.T.) dated 12.02.2016

Refund of SAD : payment of 4 SAD has not been made by cash but has been paid using the Reward Scrip i.e. Focus Product Scheme. – there is no condition in Notification No. 102/07 that SAD should initially be paid through cash – refund allowed – Commissioner of Customs, Goa Versus M/s Birla Furukawa Fiber Optics Ltd. – 2016 (2) TMI 390 – CESTAT MUMBAI

COMPANY LAW

Query:  Whether provisions of CSR are applicable Foreign Company as well? If yes, whether it is mandatory for foreign company to give report on CSR activity?

Answer:  There is no exemption from the provisions of CSR. Therefore, if a Company whether listed or unlisted or Foreign Company or else, if it falls under the applicability of the provisions of CSR. It has to adhere to the provisions of CSR.

Further in case of a foreign company, the balance sheet filed under section 381(1)(b) shall contain an Annexure regarding report on CSR.

Procedure: Change in Object Clause as per Companies Act’ 2013

Other Updates

The empanelment process of Chartered Accountant firms (firm) and Limited Liability Partnership firm (LLP) for allotment of audit of Public Sector Undertakings/Statutory Corporations for the year 2016-17. The desired firms were allowed to fill the online forms till 15.02.2016.

Expenditure incurred by the assessee on issue of Foreign Currency Convertible Bonds (FCCB) is revenue expenditure allowable under section 37(1) of the I.T. Act. – Tribunal. (Gati Limited vs Income Tax Officer, Ward – 2 (2) Hyderabad – 2016 (2) TMI 404 – ITAT HYDERABAD)

ICAI released an announcement on Manner of Signing of Certificates by Chartered under Accountant With a view to bring uniformity in the manner of signing of certificates, icai has decided to require the members of the ICAI to include (in addition to any other requirements in this regard prescribed by the relevant law or regulation under which the certificate is being issued) the following details in their “Signatures” on the certificates issued by them:

Key Dates

  • Deposit of DVAT TDS for Jan: 15.02.2016
  • Issue of Quarterly TDS certificates for Dec Quarter by Govt. deductors: 15.02.2016
  • E-payment of PF for Jan (No grace of 5days): 15.02.2016

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