CORPORATE AND PROFESSIONAL UPDATE MAY 23, 2016
TODAYS UPDATES :
DIRECT TAX:
CBDT issued clarification on the Income Declaration Scheme, 2016 vide Circular No. 17 of 2016 dated 20.05.2016.
CBDT issued explanatory notes on provisions of the Income Declaration Scheme, 2016 as provided in chapter ix of the finance act, 2016 vide Circular No. 16 of 2016 dated 20.05.2016
CBDT has issued circular regarding additional depreciation u/s 32(1)(iia) of IT Act, 1961. Further it has clarified that the business of printing or printing and publishing amounts to manufacture or production of article or thing and is accordingly eligible for additional depreciation u/s 32(1)(iia) of the Act Vide Circular No. 15 of 2016 dated 19.05.2016.
CBEC excludes certain services provided by Govt. to specified business entities from mega-exemption list (For notification, send msg)
No Addition u/s 68 if identity, creditworthiness and genuineness established. [DCIT vs. Overseas Infrastructure Alliance (I) Pvt. Ltd. (ITAT MUMBAI)].
No disallowance u/s. 14A on shares held as stock-in-trade. [Shri Paresh Pritamlal Mehta vs. Income Tax Officer, (ITAT, Pune)].
274 notice must specify if it’s for concealment or for incorrect particulars. [Sanghavi Savla Commodity Brokers Pvt. Ltd. vs. ACIT (ITAT Mumbai)].
Additional Depreciation u/s 32(1) (iia) on printing and publishing :Circular No. 15/2016
No Addition u/s 68 if identity, creditworthiness and genuineness established. [DCIT vs. Overseas Infrastructure Alliance (I) Pvt. Ltd. (ITAT MUMBAI)].
No disallowance u/s. 14A on shares held as stock-in-trade. [Shri Paresh Pritamlal Mehta vs. Income Tax Officer, (ITAT, Pune)].
Additional Depreciation u/s 32(1) (iia) on printing and publishing :Circular No. 15/2016.
Intimation u/s 143(1) not assessment; Sec. 234B interest charged upto date of scrutiny assessment [2016] 69 taxmann.com 310 (Chennai – Trib.) Nuts ‘n’ Spices v. ACIT
INDIRECT TAX:
Service Tax : Providing advice/consultancy by posting key senior personnel to assist clients to conduct their hotel business with their own infrastructure and manpower amounts to ‘Management or Business Consultant’s Services’ and not Business Auxiliary Services [2016] 69 taxmann.com 201 (Mumbai – CESTAT) Piem Hotels Ltd. v. Commissioner of Central Excise
Service Tax : Where assessee had not collected service tax separately, tax liability is to be worked out from consideration received holding same as cum-tax [2016] 69 taxmann.com 200 (Mumbai – CESTAT) Lalit Dongre v. Commissioner of Central Excise & Customs
CBEC directs that service tax payable under section 66B of the Finance Act ,1994, on the services provided by the organization as specified by the notification in respect of the religious pilgrimage facilitated by the Ministry of External Affairs of the Government of India, under bilateral arrangement, in the said period, but for the said practice, shall not be required to be paid Vide Notification No. 25/2016 dated 17-05-2016
CBEC clarified that Service Tax liability for services provided by an arbitral tribunal (including the individual arbitrators of the tribunal) shall be on the service recipient if it is a business entity located in the taxable territory with a turnover exceeding rupees ten lakh in the preceding financial year Vide Circular No.193/03/2016-Service Tax dated 18.05.2016.
Commissioner of DVAT extended the due date for filing the returns in Form CR-II for all the four quarters of the financial year 2015-16 to 16th June, 2016 Vide Notification No. F.3(628)/Policy/VAT/2016/238- 50 dated 19.05.2016.
Commissioner of DVAT has directed that the detail in respect of any commodities/goods to be moved from Delhi to any place outside the territory of Delhi on account of sale, stock transfer or due to whatsoever reason, shall be submitted online, in Form Delhi Sugam -1 (DS-1) by all the registered dealers of Delhi before the actual movement of such goods occur Vide Notification No. F.3(671)/Policy/VAT/2016/251- 63 dated 19.05.2016.
Govt. releases Mobile App for instant registration of DVAT
Company Law:
Query: Whether NOC from Income Tax / Sales Tax / Central Excise / Other Govt authorities also required for filing application for striking off the Company under FTE Scheme with ROC?
Answer: No. NOC is not required from Income Tax / Sales Tax / Central Excise / other Govt authorities. But all directors need to confirm that there are no dues pending against Company with any such authorities. And MCA will send letter confirming that Income Tax has no objection for striking off the name of the said Company.
Query: A Private Limited company is desirous of allotting shares having nominal value of Rs.10/- per equity share, has obtained valuation report from a approved valuer based on Discounted Cash flow Method and as per the Report, Value per share is Rs.1560/- per share. Can the Company go ahead and allot shares of Rs.10/- each at a Premium of Rs.1550?
Answer: Yes, Company can allot shares at the price determined by valuation report from approved valuer.
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