CORPORATE AND PROFESSIONAL UPDATES AUG 4, 2016
Tax update:
Direct Tax:
- Person attaining age of 60 or 80 years on 1st April shall be considered Senior/Very senior citizen for immediately preceding financial year. CBDT Circular 28 of 27-7-16.
- No Section 40(a)(ia) disallowance when income is determined on estimated basis after rejecting books.
- Receipt on settlement of dispute on use of trademark is tax free when trademark itself is cancelled Orient Blackswan (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle-16 (3), Hyderabad [2016] 71 taxmann.com 319 (Hyderabad – Trib.)
- No disallowance of cultivation exp. just because it didn’t generate desired results to assessee Principle Commissioner of Income-tax-III, Bangalore v. Sami Labs Ltd. [2016] 71 taxmann.com 298 (Karnataka)
- TDS on commission doesn’t prove its genuiness; assessee has to prove that services were rendered by recipient Income-tax Officer, Ward – 56(2), Kolkata v. PKS Holdings [2016] 71 taxmann.com 345 (Kolkata – Trib.)
- Now medium and long-term deposits can be redeemed in form of Gold under Gold Monetization Scheme NOTIFICATION F. No. 20/6/2015–FT (Pt.7). Dated 27th June, 2016
- ITAT Hyderabad in the below citied case held that where husband and wife are having joint bank a/c – any amount deposited by her husband which he would have earned from a separate business, it cannot be added to the hands of the assessee as unexplained cash deposit.( ITO, Hyderabad Vs. Smt. Guthula Nagamany And Vice-Versa
- Gujrat high Court deleted the addition made on the basis of statement recorded u/s 131. The assessee was not allowed to crossexamine the person, on the basis of whose statement the proceedings was initiated.( CIT Vs. Ramanbhai B Patel)
Indirect Tax:
- Delhi HC sets aside order passed by Jt. Secretary to Govt. of India rejecting assessee’s revision application u/s 129DD of Customs Act, absent valid signature; Notes that order is in fact a draft with no signature and numerous corrections not initialled by Jt. Secretary; [TS-299-HC-2016(DEL)-CUST]
- Service Tax: Export of services or not – place of performance is in India – The destination has to be decided on the basis of place of consumption, not the place of performance of service in case of Business Auxiliary Service – CESTAT New Delhi in case of [M/s Airbus Group India Pvt. Ltd. Vs. CST, Delhi]
- DVAT Return of Composition Dealers in Form DVAT 17 for Q-1 of 16-17 can be filed without Commodity Code.
- Constitution (122nd) Amendment Bill, 2014 enabling levy of GST by Central Govt. as well as State Govts. is finally passed by Rajya Sabha with 100% in favour of the same. Now it shall go back to Lok Sabha to approve the amendments made by Rajya Sabha. Thereafter it shall be ratified by at least 16 States before being presented to the Hon’ble President for his assent.
- CESTAT Bangalore in the below citied case set aside the demand for inclusion of value towards reimbursement of expenses. The facts in respect of these two appellants do not come within the mischief of provisions of Section 73(4) of the Finance Act, 1994(M/s. Raja’s Enterprises, M/s. Rajvinayaka Pharmaceuticals Vs. Commissioner of Central Excise & Customs (Appeals)
Company Law:
- Extension of last date of filing Form AOC-4, AOC-4 XBRL, AOC-4 CFS & MGT-7 under the Companies Act, 2013.
- MCA issues The Companies (Accounts) Amendment Rules, 2016. MCA Notification dated 27.07.2016.
FAQ on Company Law:
Query: We had a query regarding the conversion of Private Limited Companies into One Person Company. Is there any criteria which is required to be fulfilled in case Private Limited Companies want to convert themselves into OPC? Please confirm.
Answer: Yes, As per Section 18 of Companies Act, 2013 read with Rule 7(4) of the Companies (Incorporation) Rules, 2014, any private company other than a Company registered under section 8 of the Companies Act, 2013 (or section 25 of the Companies Act, 1956) having a paid-up capital of less than Rs. 50 Lac and an average turnover of less than Rs. 2 Crores, in the specified period, can only convert itself into OPC.
Query: Can a director cum member of a OPC transfer his entire shareholding to other person. Please advice.
Answer: OPC being a new class of Company introduced under the concept of Private Limited Companies as per Section 3 of the Companies Act 2013. Thus, the law applicable to Private Limited Companies applies to the OPC as well with certain exceptions as provided under the Companies Act 2013 and rules thereunder. Thus, Likewise the Private Company, an OPC can also restrict the right of members to transfer the shares by way of an article of association, choice of which is solely available to an OPC itself.
OTHER UPDATE :
- Allahabad Bank invites applications for empanelment as Concurrent/ Revenue Auditors for the year 2016-17 by practicing CA Firms, latest by 18.08.2016.
- Sebi proposes changes in Institutional Trading Platform (ITP) norms to attract more firms.
Key Dates:
· Filing of ITR returns by Individuals, HUF (Without Audit): 05/08/2016
· Filing of ITR returns by Firms, AOP, BOI (Without audit): 05/08/2016
· E-Payment of Service Tax for July by Companies: 06/08/2016
· Extension of last date of filing of Income tax returns for the FY 2015-2016 (AY 2016-17) from31.07.2016 to 05.08.2016. For J&K assessees last date is 31.08.2016.
· Extension to 29.10.2016, of Last Date of filing of e-forms AOC-4 , AOC-4 XBRL, AOC-4 (CFS), & MGT-7. Circular No.08/2016 Dated 29.07.2016.
· Public Servants Annual Assets Liabilities Return Filing due date extended to 31.12.2016
· 15-08-16 is the last date for Issue of TDS certificates in form 16A for quarter ended 30-6-16 by all deductors.
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