CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 21, 2016
Table of Contents
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 21, 2016
DIRECT TAX
CBDT had issued Clarifications for implementation of FATCA and CRS Vide Press release dated 19.02.2016
ITAT: Rejects double-deduction on BSE membership card; Special provisions u/s 50 override Sec 55(2)(ab) [TS-75-ITAT-2016(Mum)]
IT: Tax cannot be levied on assessee at a higher amount or at a higher rate merely because assessee, under a mistaken belief or due to an error, offered income for taxation at that amount or that rate [2016] 66 taxmann.com 181 (Rajkot – Trib.) ACIT v. Rupam Impex
Compensation received in connection with termination of share purchase agreement to be taxed as revenue receipt [2016] 66 taxmann.com 183 (Himachal Pradesh) Avantor Performance Materials India Ltd. v. CIT
IT: Penalty u/s 271(1)(c) – the return which was filed on the basis of the certificate issued by the Chartered Accountant though under mistake the assessee could take the benefit on the basis of bonafide belief – CIT-3, Ludhiana Vs. S.S. Food Industries (2016 (2) TMI 517 Punjab & Haryana High Court)
IT: Section 194C(2) had no application when the Union was merely acting in representative capacity and there was no separate contract between the Union and its members (truck operators) for performance of the work – CIT-I, Ludhiana Vs. Truck Operator Union (2016 (2) TMI 520 Punjab & Haryana High Court)
ITAT: False claim supported by CA opinion irrelevant, upholds Sec 271(1)(c) penalty [TS-74-ITAT-2016(CHNY)]
IT: Deduction u/s 80-IA – Whether the Tribunal was right in holding that the deduction under Section 80-IA is not allowable at all to the assessee since there was no taxable income though the unit eligible for deduction had net profit – Held Yes – Sanra Software Ltd. Vs. DCIT, Chennai (2016 (2) TMI 574 Madras High Court)
IT: Advance Rulings – it serves no purpose and certainly not that of the Petitioner to pronounce on the validity of the portion of clause (i) of Section 245R(2) of the Act that exempts resident PSUs from the bar of that provision to be violative of Article 14 of the Constitution – Hyosung Corporation Vs. AFR & ANR (2016 (2) TMI 575 Delhi High Court)
INDIRET TAX
ST: CESTAT dismissed the appeal for non prosecution – The order passed by the CESTAT with regard to the non-appearance of the Assessee is cryptic and devoid of reasons. The reasons are the soul of the Judgment. The order passed without giving reasons cannot be sustained – Empee Distilleries Ltd. Vs. DCST (2016 (2) TMI 581 Madras High Court)
ST: Refund of service tax on the basis of Credit Note – value of services provided (sharing of expenses) earlier got reduced as per the mutual agreement – refund allowed – Piramal Enterprises Ltd. Vs. CST, Mumbai (2016 (2) TMI 545 CESTAT Mumbai)
CBEC has notified the Service Tax and Central Excise (Furnishing of Annual Information Return) Rules, 2016 which shall come into force from 1st April, 2016. The Central Board of Excise and Customs will now use the annual information returns to detect tax evasion.
DVAT Created a separate E-commerce Zone and Ward No.300 for E-Commerce Companies.
Service Tax : Flying training services provided by an approved flying training institute are not liable to service tax, as services fall within meaning of ‘qualification recognized by law’
[2016] 66 taxmann.com 180 (Ahmedabad – CESTAT) Ahmedabad Aviation & Aeronautics Ltd. v. Commissioner of Service Tax
All services provided by Govt. to business entities would be taxable from April 1, 2016
No service-tax on services provided by Govt. to business entities having turnover below 10 lacs
CG appointed 1th day of April, 2016 as the date with effect from which all the services provided by the Government or local authority to a business entity, except the services that are specifically exempted, or covered by any another entry in the Negative List, shall be liable to service tax i.e. the provisions of Section 109(1) as contained in the Finance Act, 2015 shall come into effect w.e.f. 01.04.2016 Vide Notification No. 06/2016-Service Tax dated 18.02.2016
CG also exempted the services provided by Government or a local authority to a business entity with a turnover up to rupees ten lakh in the preceding financial year w.e.f. 1.4.2016 Vide Notification No. 07/2016-Service Tax dated 18.02.2016.
Delhi VAT Commissioners vested with power to specify dealers who have to furnish returns with digital signature
COMPANY LAW
Query: Whether a director has to disclose his interest in foreign companies as well in Form MBP-1?
Answer:Yes, interest in companies, body Corporates, firms or other association of individuals needs to be disclosed in Form MBP-1. Foreign company being a body corporate, interest in it should be disclosed in Form MBP-1.
OTHER UPDATES
RBI: The Budget Division of the Department of Economic Affairs notifies that repurchase of “7.59%, 10.71%and 7.02% Government Stock 2016” will be undertaken through reverse auction by the Government of India in one or more tranches for an aggregate amount of Rs 15,000 crore for its cash management operations.
Company Secretaries in employment shouldn’t be allowed to certify Annual Returns: ICSI’s recommendation
Govt. issues clarifications for implementation of FATCA
Govt. notifies definition of a start-up and process of its recognition
U.K. Sinha is re-appointed as Chairman of SEBI
With self-discipline most anything is possible. -Theodore Roosevelt
Live your beliefs and you can turn the world around. -Henry David Thoreau
KEY DATES
E-payment of DVAT & CST tax for Jan: 21.02.2016
Payment of ESI of Jan: 21.02.2016
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