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CORPORATE AND PROFESSIONAL UPDATE OCT 15, 2016

CORPORATE AND PROFESSIONAL UPDATE OCT 15, 2016

www.caindelhiindia.com; Corporate updates
www.caindelhiindia.com; Corporate updates

Direct Tax:-

ITAT Ahemdabad in the below mention case confirmed the addition u/s 68 on unexplained share capital and premium received as assessee has been able to just prove the identity of the company but unable to prove the genuineness & creditworthiness the parties.( ACIT, Ahmedabad Vs. Nakoda Fashion Pvt. Ltd.)

ITAT Kolkata in the below mwntioned case held that the assessee under consideration has one truck only and the same was being used for purpose of business, hence depreciation should be allowed to the assessee – since the truck are not used for renting, provisions of presumptive income U/s 44AE not applicable – [M/s Northern Services & Supply Co. (P) Ltd. Vs. DCIT, Jalpaiguri]

IT: Assessee is required to prove the source of huge Cash Deposit in Bank even if he has declared his income u/s 44AF – Naresh Kumar Vs CIT, Patiala (2016 (10) TMI 252 – Punjab & Haryana High Court).

Indirect Tax:-

Madras High Court in the below case held that encashment of bank guarantee doesn’t amount to payment of duty:(Nizamabad Agro (P.) Ltd. v.Assistant Commissioner of Customs –EODC)

period of limitation where refund claim was filed electronically within prescribed time – They later submitted in physical form all these documents with Jurisdictional officer – refund cannot be rejected on the ground of time bar – Tri – Service Tax(M/s Boston Scientific India Private Limited Versus CST, Delhi-IV, Gurgaon)

ST: Refund claim filed electronically within prescribed time later submitted in physical form – refund cannot be rejected on the ground of time bar – M/s Boston Scientific India Private Limited Vs CST, Delhi-IV, Gurgaon (2016 (10) TMI 281 – CESTAT Chandigarh)

VAT & ST: Principle of lifting of the corporate veil – recovery of duty / tax from the director cannot be made merely on the basis of allegation – The test of fraudulent conduct not satisfied so as to attract the principle of lifting of corporate veil – Shri Harbhajan Singh Vs C.T.T., U.P. Lucknow (2016 (10) TMI 260 – Allahabad High Court)

DVAT: Circular No.15 of 2016-17 relating to disposal of refunds in the stipulated time stands withdrawn and shall be considered void ab initio – Circular No.16/2016-17.

MCA Update :

MCA has issued Notice inviting comments/ suggestions on the draft regulations relating to Insolvency and Bankruptcy Code, 2016 available on the website of MCA.

MCA has revised the version of e-forms viz. MGT-15, FC-3, INC-4, MGT-14, 23C, 23D, A-XBRL, I-XBRL, 23AC XBRL, 23ACA XBRL, AOC-4 XBRL.

MCA has released Updated C&I Taxonomy 2016 for filing Annual Financial Statements in Form AOC-4 XBRL in respect of financial years commencing on or after 01.04.2014.

ICAI Updates:-

The Council, at its 359th meeting, held on September 16-17, 2016, has decided to withdraw the Guidance Notes on Availability of Revaluation Reserve for Issue of Bonus Shares[GN(A) 9 (Issued 1994)] and Guidance Notes on Accounting for Fringe Benefits Tax[GN(A) 20 (Issued 2005)] dated on 07/10/2016.(Click here to view)

Application Guide on the Provisions of Schedule II to the Companies Act, 2013 is no longer effective as the Guidance Note on Accounting for Depreciation in Companies in the context of Schedule II to the Companies Act, 2013 has been issued.(Click here to view)

Other Update

SEBI proposed a Consultative Paper titled ‘Corporate Governance Issues in Compensation Agreements’ to review the disclosure requirements under SEBI (LODR) Regulations, 2015.

ED: 10 OCT 2016 is the Last date for filing of Excise return in form ER-1 for the m/o SEP’ 2016.

FAQ on GST Issued by CBEC
Q . A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….

Ans. 31st July, 2017.

Q . What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?

Ans. As per section 16(2A) of MGL, the person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi- finished goods and finished goods in stock, held on the day immediately preceding the date of registration.

Q . Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

Ans. As per section 16(6) of MGL, the input tax credit of goods and / or service attributable to only taxable supplies can be taken by registered taxable person. The amount of eligible credit would be calculated in a manner to be prescribed in terms of section 16(7) of the MGL read with GST ITC Rules (yet to be issued). It is important to note that credit on capital goods also would now be permitted on proportionate basis.

Q . Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?

Ans. As per section 16(5) of the MGL, the input tax credit of goods and / or service attributable to only supplies effectedfor business purpose can be taken by registered taxable person. The amount of eligible credit would be calculated in a manner to be prescribed in terms of section 16(7) of the MGL read with GST ITC Rules (yet to be issued). It is important to note that credit on capital goods also would now be permitted on proportionate basis.

Q . What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?

Ans. As per section 16(8) of the MGL, the transferor shall be allowed to transfer the input tax credit that remains unutilized in its books of accounts to the transferee provided that there is a specific provision for transfer of liabilities.

Key Dates:

  • Advance information for 2nd fortnight of Oct of functions with booking cost more than rs 1 lakh in Banquet halls, hotels etc. in Delhi-12/010/2016
  • Payment of DVAT TDS for the month of September-15/10/2016
  • Form 27EQ (TCS return) by all deductor-15/10/2016
  • Issue of TDS Certificate in case of payment/credit made in the month of august for purchase of property u/s 194IA-15/10/2016
  • Statement by bank in Form no. 15CC in respect of foreign remmitence during the quarter-15/10/2016
  • E-Payment of PF for the month of September-15/10/2016

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Regards

Indian financial consultancy private limited

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