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…)
A: CENVAT ELIGIBILITY OF WORKS CONTRACT SERVICE: Recently CESTAT of Mumbai in the case of Red Hat India (P.) Ltd. v. Principal Commissioner of Service Tax, Pune (2016) 70 taxmann.com 132 has held that Works Contract Services used for maintenance of office equipment and building is not excluded from definition of input service and hence, same is eligible for …
The Income Declaration Scheme, 2016 (hereinafter referred to as ‘the Scheme’) incorporated as Chapter IX of the Finance Act, 2016 provides an opportunity to persons who have not paid full taxes in the past to come forward and declare the undisclosed income and pay tax, surcharge and penalty totaling in all the 45% of such …
MCA OUTLINING THE ROADMAP FOR IMPLEMENTATION OF INDIAN ACCOUNTING STANDARDS (IND AS) FOR BANKS, NON-BANKING FINANCIAL COMPANIES: The Ministry of Corporate Affairs (MCA), Government of India has notified the Companies (Indian Accounting Standards) Rules, 2015 on February 16, 2015. A reference is also invited to the Press Release dated January 18, 2016 issued by the …
Today updates: DIRECT TAX: Income Tax: Amounts deposited in “golaks” in Gurudwara doesn’t amount to anonymous donations but charity [TS-343-ITAT-2016(ASR)] Income Tax: CBDT issued an addendum circular to Circular No. 22/2016 clarifying that no TCS u/s 206C(1D) will be levied if the cash receipt does not exceeds two lakh even if the sale consideration exceeds two laks rupees …
Today updates: DIRECT TAX: Income Tax: Where issue of allowability of MAT credit was decided by AO by order dated 8-12-2011, even though issue of surcharge and cess was also allowed to be carried forward by AO by order dated 29-11-2012, revisional order passed on 30-3-2015 denying MAT credit would be time barred [2016] 70 taxmann.com 155 (Kolkata …
Today updates: DIRECT TAX: Income Tax : The initiation of the proceedings u/s 153C in the absence of recording of the satisfaction by the AO of the person searched was held to be invalid and accordingly the assessment framed u/s 153C of the Act is quashed – Bhawna Bhalla Vs. ACIT, CC-21, New Delhi & DCIT, …
Today updates:
DIRECT TAX:
Income Tax : Compensation and interest awarded by the Motor Accident Claims cannot be categorized or even described as income – TDS is not liable to be deducted – Chinnadurai Vs. Tamil Nadu State Transport Corporation, Salem (Madras High Court)
Income Tax : Cancellation of the lease and the payments of the consideration – It is clearly a capital asset has come into existence in the hands of the assessee which is of enduring benefit for the business of the assessee and consequently the expenditure is liable to be treated as capital expenditure – Depreciation to be allowed – Hotel La Paz Gardens Ltd. Vs. ACIT, Cir-2(1), Panaji, Goa (ITAT Panaji)
Income Tax : CBDT has notified the Cost Inflation Index (CII) for FY 2016-17 at 1125 (FY 2015-16: 1081) – Notification No.42/2016, dt.02 JUN 2016. Income Tax : AIR Information without lawful enquiry is not sufficient to hold a belief that cash deposit is Income and hence cannot form reason to believe that Income has escaped assessment.(Sh. Amrik Singh, vs. Income Tax Officer ) [ITAT Amritsar ]
Income Tax : Pune ITAT allows deduction to assessee for interest paid on Share application money received from shareholders pending allotment. [TS-304-ITAT-2016(PUN)]
Income Tax : Where assessee, a charitable trust, incurred expenditure in excess of income in previous year relevant to assessment year for charitable purposes, out of accumulated charity fund, it could not be denied benefit of exemption under section 11(1)(a) in respect of income of previous year relevant to assessment year, which had been admittedly applied for charitable purposes – [2016] 69 taxmann 425 (Rajasthan)
INDIRECT TAX:
Service Tax: services rendered by director aren’t liable to service-tax if his remuneration is taxed as salary Rent Works India (P.) Ltd. V. Commissioner of Central Excise, Mumbai-V [2016] 70 taxmann.com 38 (Mumbai – CESTAT)
Service Tax : Cenvat credit ALLOWED for all the input services pertain to the manufacturing activity and the respective services were input for the said activity for which that was utilised – M/s Sundaram Clayton Ltd. Vs.CCE, Chennai (CESTAT Chennai)
Service Tax : CBEC notifies 100% reverse charge on representational service provided by Senior Advocate before any court, tribunal, authority etc., directly or indirectly, to any business entity who is litigant, applicant or petitioner in such case and such business entity shall be the person liable to pay service tax in the government exchequer – Notification No.33 & 34/2016-ST, dt.06 JUN 2016.
Service Tax: Service tax department cannot conduct audit of assessee. Delhi High Court has held as Under after hearing the revenue and assessee and considering their submissions. Resultantly, the Court: (i) declares Rule 5A(2) as amended in terms of Notification No. 23/2014- Service Tax dated 5th December 2014 of the Central Government, to the extent that it authorises the officers of the Service Tax.( Mega Cabs Pvt. Ltd. Vs. Union Of India & Ors.)Delhi High Court
Service Tax : Short payment of Service tax in the month of July 2011 made due to the adjustment of service tax paid in excess in the month of May 2011. Section 13 of the General Clauses Act 1897 provides that singular include the plural.Further it is a well settled legal principle that the statue should be interpreted as it is even if the intention isimperfect, accordingly month includes months.(M/s. Schwing Stetter (India) Pvt. Ltd. Versus CCE, LTU, Chennai) – 2016 (6) TMI 239 – CESTAT CHENNAI
VAT : Department of Trade & Taxes has issued a circular for requirement of item wise details in Forma Annexure -2A, Annexure 2B, DVAT 30 and DVAT 31 Vide circular No. 9/2016 of 2016-17 dated 6/06/2016. Delhi Govt. clarifies that furnishing of item-wise details of sales and purchases in DVAT Returns and Forms DVAT 30 and 31 (Sales & Purchases Registers) is mandatory for tax period commencing from April 1, 2016. However, same is optional for last quarter of FY 2015-16.
CENTRAL EXCISE : Procuring various components of lamp shades and chandeliers from different sources and thereafter, assembling and packing same in cartons with logo and code number of product does not give rise to a ‘new product’ and therefore, does not amount to manufacture – [2016] 70 taxmann 20 (Punjab & Haryana)
CENTRAL EXCISE : When condonation of delay is sought on ground that delay occurred due to mistake of counsel, then, such plea cannot be accepted without affidavit of such counsel; hence, appeal was dismissed as time-barred – [2016] 70 taxmann 18 (Punjab & Haryana)
MCA UPDATES :
MCA has notified new versions of e-forms AOC-4, INC-6, INC-12 and INC-29.
KEY DATES :
Return filling for non SSI assessee for may in form ER-1-10/06/2016
Return filling for EOU for Month of March in form ER-2- 10/06/2016
Return filling in form no ER-6 by the units paying duty more than 1 crore (Cenvat + PLA) for may -10/06/2016
“A seed grows with no sound, but a tree falls with huge noise. Destruction has noise, but creation is quiet. This is the power of silence”
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