Today updates: DIRECT TAX: Income Tax : Where assessee trust was carrying on micro finance business in a commercial manner so as to earn profit and there was no iota of charity carried on by assessee, exemption under section 11 could not have been granted to assessee .( Assistant Commissioner of Income-tax v. Grama Vidiyal Trust) Income …
Today updates: DIRECT TAX: Income Tax : Cash deposits in bank can’t be held as undisclosed income without verifying source of deposits Gurpal Singh v. Income-tax Officer, Ward-1, Kapurthala Income-tax Officer, Ward-1, Kapurthala Income Tax : Chennai ITAT denies Sec 11 exemption to assessee ,an educational trust with respect to income earned from renting of ‘auditorium hall’ …
Today updates: DIRECT TAX: Income Tax : Deduction u/s 80HH of the Act in respect of profit and gains from newly established industrial undertaking in backward areas would be given subject to fulfillment of certain conditions as provided in sub section (2) of the said provision. Indian Railway Const. Co. Ltd. Vs. IAC (A) -ITAT Delhi Income …
Today updates: DIRECT TAX: Income Tax : ITAT in the given case held that-as the international transactions of payment of royalty and fees for technical services are separate transactions and not closely linked with the other transactions with which the assessee has merged them, we cannot permit such merger or aggregation for the purpose of …
Today updates: DIRECT TAX: Income Tax : Gujrat High Court held that the payment of stamp duty is not for business expediency but it is in the nature of a compulsory levy under the Bombay Stamp Act. It is legally settled that accounting practice cannot over rider the provisions of the Income Tax Act, 1961. …
Today updates:
DIRECT TAX:
Income Tax : Mumbai ITAT allows Sec.11 exemption on profits earned by assessee hospital from pharmacy business for AY 2006-07, upholds assessee’s claim that pharmacy business was an integral part of hospital business; [TS-350-ITAT-2016(Mum)]
Income Tax : ITAT: Retention bonus for arresting employee attrition deductible as revenue expenditure [TS-349-ITAT-2016(DEL)]
Income Tax: Transfer-fees from outgoing member not taxable for co-operative housing society applying ‘mutuality’ [TS-346-HC-2016(BOM)]
CBDT issued 3rd clarification in the form of FAQs on the Income Declaration Scheme, 2016 Vide Circular No. 25 of 2016 dated 30.06.2016 Under the ‘Income Declaration Scheme’ tax of forty-five per cent of such undisclosed income is there. The IDS is effective from June 1, 2016 and will remain open up to September 30, 2016. The declarant is required to pay tax up to November 30, 2016. In the recent FAQs issued on June 30, 2016 the CBDT has clarified that once the person had declared undisclosed income, no question will be asked from where such income or tax is coming from. So the effective rate of tax will be 31% as you have to pay 45% on 145 i.e. amount declared and tax paid thereon.
No denial of sec. 54F relief due to two houses if taxpayer had partial interest in one of the houses Mrs. V.R. Usha v. Income-tax Officer, Business Ward-XV(1), Chennai[2016] 70 taxmann.com 340 (Chennai – Trib.)
Interest on FD was includible in operating profit as FD was made from advances received from buyers Deputy Commissioner of Income-tax, Circle- 8 (1), Mumbai v. Bunge India (P.) Ltd. [2016] 70 taxmann.com 323 (Mumbai – Trib.)
INDIRECT TAX:
Excise : CBEC specified the procedure and conditions for supply of bunker fuel without payment of Central Excise duty from the warehouse of the OMCs to the eligible ships/vessels Vide Circular No. 1034/22/2016 – CX dated 01.07.2016 Excise: The time limit for taking Central excise registration of an establishment by a jeweller is being extended up to 31.07.2016.
Vat & sales tax : Dealers having gross turnover above Rs. 1 Cr in F.Y. 2015-16, are required to attach DSC with form DVAT 16/DVAT 17 for Q1 of 2016-17 and onwards. Notification of 1.6.16.
Custom : Clearance of bunker fuels to Indian ship/vessel carrying containerized cargo—reg. vide Circular No. 1034/22/2016-CX dated 1st July, 2016.
Excise: Time limit for excise registration by jewellers extended up to July 31, 2016 Circular No. 1033/21/2016 – CX. Dated July 1, 2016 F. No. 354/25/2016–TRUExcise: Refund of tax paid on non-taxable services is also governed by time limit of section 11B Giriraj Construction v. Commissioner of Central Excise & Customs, Service Tax, Nasik [2016] 70 taxmann.com 303 (Mumbai – CESTAT)
Service tax : No recovery of service tax without adjudication even if tax was collected from customers: HC Union of India v. Mrs. Prashanthi [2016] 70 taxmann.com 346 (Karnataka)
OTHER UPDATES :
RBI: As per new guideline given by RBI spelling should be written in LAKH not LAC on cheque and Bank Mandate.
Companies (Removal of difficulties) Third Order, 2016 released by MCA. MCA order dated 30.06.2016.
Bank of Baroda invites proposal for appointment of concurrent auditors of the bank for Branches/RBOs/CBOs/Other Units vide RFP for 545 of its Branches, 22 CBOS, 13 RBOs and 3 Other Units Last date : – 21/07/2016.
Employees drawing salary of Rs.1.2Cr p.a. / 8.5Lac p.m. to be disclosed in board report. Companies (Appt. and remuneration of managerial personnel) amendment rules, 2016.
Invalid transfer of shares didn’t become valid just because petitioner didn’t dispute her sign on transfer docs Ms. Sulochana Neelkanth Kalyani v. Takle Investments Co. [2016] 70 taxmann.com 351 (Bombay)
KEY DATES :
E- Payment of service tax for June: 06/07/2016
Payment of TDS for the month of June: 07/07/2016
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Today updates: DIRECT TAX: Income Tax : CBDT issues 3rd FAQs on Income Declaration Scheme, 2016, Circular No.25 of 2016 -Income Tax Dated 30th of June, 2016. Income Tax : Explanation on disallowance of CSR exp. doesn’t have retro-effect, says ITAT Assistant Commissioner of Income-tax, Circle 1 (1), Bilaspur V. Jindal Power Ltd. [2016] 70 taxmann.com 389 …
Today updates: DIRECT TAX: Income Tax : CBDT issues 3rd FAQs on Income Declaration Scheme, 2016, Circular No.25 of 2016 -Income Tax Dated 30th of June, 2016. Income Tax : Explanation on disallowance of CSR exp. doesn’t have retro-effect, says ITAT Assistant Commissioner of Income-tax, Circle 1 (1), Bilaspur V. Jindal Power Ltd. [2016] 70 taxmann.com 389 (RAIPUR-TRIB) …
QUARTERLY STATEMENT / RETURNS SHALL BE UPLOADED AT TRACES TDSCPC WEBSITE AND NOT ON TIN NSDL WEBSITE. TDS STATEMENT UPLOAD: User Manual Pre-Requisites for Uploading TDS Statement To upload TDS, user should hold valid TAN and should be registered in e-Filing Statement should be prepared using the Return Preparation Utility (RPU) and validated using the …
CSR
Q. A private limited company was incorporated under the erstwhile Companies Act, 1956. Company’s net profit for the Financial Year ended on 31st March, 2015 was Rs. 5.25 crores which decreased to Rs. 4.90 crores for the financial year ended on 31st March, 2016. Whether such private limited company is required to constitute Corporate Social Responsibility Committee?
A. In terms of section 135(1) of the Companies Act, 2013 every company having net worth of Rs. 500 crores or more, or turnover of Rs. 1,000 crore or more or a net profit of Rs. 5 crores or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board. Hence, if any company (whether it be a public, private company, company incorporated under section 8 or foreign company) fulfils any of three criteria as mentioned in the said sub-section, CSR Committee is required to be constituted. This section came into force w.e.f. 1st April, 2014. The constitution of the CSR Committee will be as under:
Q.Where a company has been incorporated under any Special Act passed by the Parliament and not under the provisions of the Companies Act, whether such company is also required to constitute CSR Committee?
A. Yes, the companies incorporated under any Special Act passed by the Parliament have to constitute CSR Committee, if the criteria mentioned in section 135(1) of the CA 2013 are fulfilled.
Section 1(4) of the CA 2013 provides that the provisions of this Act shall apply to:
(a) Companies incorporated under this Act or under any previous company law;
(b) Insurance companies, insofar as the said provisions are inconsistent with the provisions of the Insurance Act, 1938 or the Insurance Regulatory and Development Authority Act, 1999;
(c) Banking companies, insofar as the said provisions are inconsistent with the provisions of the Banking Regulation Act, 1949;
(d) Companies engaged in the generation or supply of electricity, insofar as the said provisions are inconsistent with the provisions of the Electricity Act, 2003;
(e) Any other company governed by any Special Act for the time being in force, insofar as the said provisions are inconsistent with the provisions of such special Act; and
(f) Such body corporate, incorporated by any Act for the time being in force, as the Central Government may, by notification, specify in this behalf, subject to such exceptions, modifications or adaptations, as may be specified in the notification
EOU
EOU is entitled to get refund of CST paid on purchases made from another EOU: HC Foreign Trade Policy: Where assessee was registered with Development Commissioner, Madras Export Processing Zone as EOU to manufacture and export of pharmaceutical preparations and during year 2012 it purchased goods from another EOU after payment of central sales tax, in view of paragraph 6.11 of Foreign Trade Policy 2009-14, it was entitled to refund of tax paid on purchases made from another EOU [2016] 69 taxmann.com 18 (Madras) Hospira Health Care India (P.) Ltd. v. Development Commissioner
EOU is entitled to get refund of CST paid on purchases made from another EOU: HC Foreign Trade Policy: Where assessee was registered with Development Commissioner, Madras Export Processing Zone as EOU to manufacture and export of pharmaceutical preparations and during year 2012 it purchased goods from another EOU after payment of central sales tax, in view of paragraph 6.11 of Foreign Trade Policy 2009-14, it was entitled to refund of tax paid on purchases made from another EOU[2016] 69 taxmann.com 18 (Madras)Hospira Health Care India (P.) Ltd. v. Development Commissioner (more…)