CORPORATE AND PROFESSIONAL UPDATE OCT 3, 2016.
Today updates:
DIRECT TAX:-
IT: Change in method of valuation of stock – from lowest price during the year to the weighted average cost formula – So long as the change made by the assessee in his method of accounting is bona fide and amounts to a permanent arrangement to be followed the Revenue has no cause to complain – Bajaj Auto Ltd. Vs CIT-II, Bombay (2016 (9) TMI 1047 – Bombay High Court)
ICAI issued revised handbook on Indian Accounting Standards (Ind AS). It can be downloaded fromhttp://resource.cdn.icai.org/ 43399indas33174.pdf
HC sets aside e-auction of SBI as there was less than 30 days gap between publication of notice and sale Smt. R. Vimala v. State Bank of India [2016] 73 taxmann.com 308 (Andhra Pradesh)
AO should treat land as agricultural land if survey dept. found it beyond 8 kms from municipal limits Commissioner of Income-tax, Coimbatore v. K.R.N. Prabhakaran (HUF) [2016] 73 taxmann.com 305 (Madras)
Fee for delay in filing TDS return not permissible in an intimation with retro-effect: Pune ITAT Gajanan Constructions v. Deputy Commissioner of Income-tax, Ghaziabad [2016] 73 taxmann.com 380 (Pune – Trib.)
Due date for filing return & TAR for assessee whose due date for filing income tax return is 30th Sept (being Company,firms,and other required to get accounts audited under income tax act or other law and working partners of such firm) is extended to 17th October 2016.
Assessees not having PAN, may file IDS declaration manually by quoting date & acknowledgment no. of PAN application form. CBDT Instruction No.10 of 2016.
Under GST TDS, TCS, Tax under Reverse charge, composition tax, interest, penalty, fee or any other amount can be paid only from Electronic cash ledger.
CBDT notifies backward districts in Andhra Pradesh U/s. 32 & 32 AD. Notification No. 85/2016.
INDIRECT TAX:-
Apex Court stays Delhi HC’s judgment of ‘Mega Cabs’ on service tax audit. Union of India v .Mega Cabs (P.) Ltd. [2016] 73 taxmann.com 402 (SC)
ST: Renovation and modernization services provided in the form of works contract, excluded from the definition of input service, Cenvat credit was rightly denied – JDSU India Pvt. Ltd. Vs CST, Pune (2016 (9) TMI 1059 – CESTAT Mumbai)
ST: CBEC exempts Advancement of Yoga from Service Tax. Notification # 42/2016, dt.26SEP2016.
GST: CBEC has released Draft GST Formats, Forms and Rules.
GST Update – The Goods and Services Tax (GST) Council is holding its 3rd meet today on 30th September 2016. The meet is to finalise the rules regarding registration, refunds and payment, and also take a view on exemption of goods under the upcoming Goods and Services Tax (GST) regime.
MCA UPDATES:
The Ministry of Corporate Affairs has amended the Companies (Incorporation) Rules, 2014 and notified the Companies (Incorporation) Fourth Amendment Rules, 2016 which shall come into force on the date of their publication in the Official Gazette.
Through this amendment, MCA revised integrated incorporation form for companies. “Simplified Proforma for Incorporating Companies Electronically (SPICe-INC 32)” along with electronic MoA (SPICe MoA-INC 33) and electronic AoA(SPICe AoA-INC 34) are available for filing purposes.
Highlights of INC-32
- This form can be filed even after approval of INC-1, which was not available in INC-29.
- Memorandum of Association has been provided in Electronic Mode INC-33.
- The article of Association has been provided in Electronic Mode INC-34.
- By new e-MOA & AOA no need of signatures of subscribers, Instead of a sign of subscribers DSC of Subscribers can be affixed on MOA & AOA.
- By new e-MOA & AOA, no need of signatures of the witness, Instead of the sign of witness DSC of the witness can be affixed on MOA & AOA.
- Information in the form is increased in comparison of INC-29.
Before filing these forms, stakeholders may get themselves familiarized by downloading them from the portal and thoroughly reading the corresponding instruction kits.
INDIAN PHARMA EXPORT MARKET VS FDI : The Indian Pharmaceutical Industry (IPI) is ranked third globally in terms of volume and thirteenth in terms of value. The lower market share in terms of value can be attributed to the predominance of IPI in generic medicines which command lower prices. Further India is the largest provider of generic medicines globally accounting for about 20% of the total generic medicine exports of the world. Lower cost of manufacturing has given competitive edge for India over many developed nations. The exports grew by 9.4% during 2015-16 as against 3.2% and 1.9% during previous two years. The Indian pharmaceutical majors secured 167 Abbreviated New Drugs Applications (ANDA) approvals as against 130 ANDA approvals during previous year registering a growth of 28.5% on account of higher investments in R&D expenditure and focus on new product launches.
Of the sprawling sectors, there are very few industries which could sail through crests and troughs of economic cycles and other geo-political demographic vicissitudes. IPI is one such industry which has faced all such headwinds and thrived thus marking its presence having ranked third globally in terms of volume and thirteenth in terms of value. Despite all the aforesaid accolades IPI has failed to attract global pharma companies to invest in India. The government, in order to benefit the pharma industry, has raised the FDI for brownfield projects to 74% under automatic route. The recent move by the government to allow FDI up to 74% under automatic route is expected to bring technological know-how in the Indian market which has been lagging behind in terms of innovation, research and development of new products.
Amendment is made to clarify the provision of Section 93 of the Companies Act, 2013 under which every listed company is required to file with the Registrar, a return in Form No. MGT.10, with respect to changes in the shareholding position of promoters and top ten shareholders of the company, in each case, representing increase or decrease by two per cent or more of the paid-up share capital of the company, within fifteen days of such change.
Further, Form MGT-6 which is Return to the Registrar in respect of declaration of beneficial interest in shares under section 89 by the company has also been revised.
Key Dates:
Excise payment for Non SSI for the month of September by G.A.R.- 7 challan(6th if paid electronically)-05/10/2016
Service tax payment for company for the month of September by G.A.R.- 7 challan(6th if paid electronically)-05/10/2016
Service tax payment for Individuals/Proprietory/ Partnership Firms for the quarter ended by G.A.R.- 7 challan(6th if paid electronically)-05/10/2016
Payment of TDS/TCS challan No. 281-07/10/2016
It doesn’t matter if the glass is half empty or half full. Be thankful that you have a glass & grateful that there’s something in it.
Life is either a great adventure or nothing. – Helen Keller
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