DIRECT AND INDIRECT TAX UPDATE NOV 13,2015
TAX UPDATE
Indirect Taxes:
Back to Back transactions – The shipping vessel places an enquiry for required quantity of HSD with the Petitioner – Petitioner in turn places a back to back purchase order/nomination of the same quantity on any of the Oil Marketing Companies – After the delivery of the HSD to the nominated vessel is complete, the Petitioner raises an invoice on the shipping line, based on the BDN – Provisions of MVAT are applicable- (M/s. Raj Shipping and M/s. Bhambani Shipping Ltd. Versus The State of Maharashtra and Others, BOMBAY HIGH COURT).
Challenge to legality and validity of attachment order – Petitioners had no knowledge or notice of the charge of the Sales Tax Authorities before they purchased the secured property from Respondent No.2 and therefore, the Sales Tax Authorities cannot enforce their charge against the secured property- (Sherwood Resorts Pvt. Ltd. And Another Versus State of Maharashtra And Others- BOMBAY HIGH COURT)
Direct taxes:
Transfer of the property by way of distribution of assets on retirement of two partners – there is no error or illegality in the order of the CIT(A) in allowing the claim of the assessee regarding capital gain as long term capital gain u/s 45(4) arising from the land retained by the assessee which was purchased in the year 1960- (Deputy Commissioner of Income-tax 24 (3) , Mumbai Versus M/s. S.C. Brothers, ITAT MUMBAI).
Delays in remittance of TDS amounts – Assessee could never be faulted for delay on the part of the bank or the clearing house, whatever may be the rules governing receipts and payments into the Central Government account-(Income-Tax Officer (TDS) Versus M/s Broadcom Communication Technologies Pvt Ltd Formerly Known As M/s Broadcom India Research Pvt Ltd, ITAT BANGALORE).
Company Law:
Query: I have a query that if one of the promoter has done some preliminary contracts with the third person on behalf of Proposed company. Now that Company has been incorporated, so whether that contract entered by him before incorporation of the Company is valid. Please advice.
Answer: As per Section 15(h) of the Specific Relief Act 1963, company can ratify/ confirms such contract entered by the Promoter before the incorporation of company after coming into existence. Provided such ratification/ adoption should be communicated by the company to the third party.
MCA Update:
Ministry of Corporate Affairs has issued Companies (Share Capital and Debentures) Third Amendment Rules, 2015 vide Notification No- F.No. 1/4/2013 CL-V dated 06/11/2015.
Key Dates:
Payment of TDS/TCS deducted/Collected in October: 07/11/2015.
Submission of Forms received in October to IT Commissioner (15G & 15H not to be submitted): 07/11/2015.
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