/ INCOME TAX

CORPORATE AND PROFESSIONAL UPDATE APRIL 1, 2016

CORPORATE AND PROFESSIONAL UPDATE APRIL 1, 2016 DIRECT TAX Income Tax: Fee for technical services : Where assessee-foreign company provided data processing support service to Indian bank and it was argued that no technical services were rendered in India whereas only processing of data was done and that too at Hong Kong and therefore, payment made by …

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/ GST

CORPORATE AND PROFESSIONAL UPDATE MARCH 31, 2016

CORPORATE AND PROFESSIONAL UPDATE MARCH 31, 2016 DIRECT TAX Income Tax: Reopening of assessment – receipt of accomadation enteries – without forming a prima facie opinion on the basis of such material that income has escaped assessment the AO can not assume valid jurisdiction to initiate proceedings and to issue notice u/s 147/148 – Notice u/s …

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/ Company Law Compliances

CORPORATE AND PROFESSIONAL UPDATE MARCH 30, 2016

CORPORATE AND PROFESSIONAL UPDATE MARCH 30, 2016

www.caindelhiindia.com; Corporate updates
www.caindelhiindia.com; Corporate updates

DIRECT TAX

  • INCOME TAX: Where assessee claimed deduction of secret commission paid to employees of different companies who had given business to assessee, since assessee had not kept any accounts as to where and to whom such commission was paid, Tribunal was justified in allowing assessee’s claim to extent of one per cent of total sales – [2016] 67 taxmann 257 (Gujarat)
  • INCOME TAX: TDS on sale of property u/s 194IA : CPC-TDS has enabled functionality for online correction in form 26QB (challan / statement) with effect from  29/02/2016

INDIRECT TAX

  • SERVICE TAX : Where assessee is engaged in promoting brand of foreign holding company and receives consideration from foreign holding company, then : (a) since services are provided on principal-to-principal basis, such services cannot be regarded intermediary services; (b) their Place of Provision would be location of service recipient, viz., outside India; and (c) same would amount to export of service and not liable to service tax – [2016] 67 taxmann 324 (AAR – New Delhi)
  • DELHI VAT : Deputy Chief Minister Manish Sisodia presented a ‘zero tax budget’ Monday aimed at rationalizing Delhi’s Value Added Tax (VAT) structure. The budget implies cheaper sweets, namkeen, watches, readymade garments, shoes and school bags, even as the government continues to focus on education, health and transport sectors.
  • DELHI VAT : Education, health, and transport sectors are likely get a major allocation of funds in the Delhi Budget, which will be tabled in the assembly Monday by Deputy Chief Minister Manish Sisodia. Sisodia, who holds the finance and education portfolios, is likely to allocate 25 per cent of the total budget to the education sector
  • EXCISE : Refund claim – pre-deposit – As soon as the order appropriating such fine was set aside they became eligible to refund of the deposits made during the investigations – refund allowed with Interest- (M/s Shoreline Hotel Pvt. Ltd. Versus Commissioner of Central Excise, Mumbai-I And Vice-Versa – 2016 (3) TMI 806 – CESTAT MUMBAI)

MCA  UPDATES

  • COMPANY LAW : Where appellants did not impugn either allotment of Rights Issue or their removal from Board of Directors at relevant time and raised such grievances only when company’s economic difficulties were over and it was on path of substantial progress, appellant’s interest in company was limited to their initial shareholding and nothing more – [2016] 67 taxmann 263 (Delhi)
  • COMPANY LAW : Where Single Judge dismissed earlier winding up petition filed by appellant with a liberty to bring fresh action in accordance with law and respondent was not prepared to deposit sum due, second winding up petition filed by appellant was not barred by res judicata and same was to be admitted – [2016] 67 taxmann 262 (Calcutta)

Key Dates

  • E-Payment of Service Tax for the month/quarter ended March: 31/03/ 2016
  • E-Payment of Excise duty for the month/quarter ended March: 31/03/ 2016
  • Last date of filing of ITR for A.Y. 2015-16 without penalty & A.Y. 2014-15 with penalty of Rs. 5000: 31/03/2016
  • Last date for filing Wealth Tax return for A.Y. 2014-15: 31/03/2016
  • Payment of balance advance income tax by all: 31/03/2016
  • Reconciliation return of statutory forms for the year 2014-15: 31/03/2016

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances ; Hope the information will assist you in your Professional   endeavors. For query or help, contact:  info@caindelhiindia.com or call at  011-233-43-333 (more…)

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/ GST

CORPORATE AND PROFESSIONAL UPDATE MARCH 29, 2016

CORPORATE AND PROFESSIONAL UPDATE MARCH 29, 2016 DIRECT TAX Income Tax: Disallowance being 1/10th Global Depository Receipts – whether the GDR is nothing but increase in the capital and expenses relating to the same is capital in nature? – Section 35D(2)(iv) categorically deals with the expenses in connection with the issue, or public subscription of shares …

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/ INCOME TAX

CORPORATE AND PROFESSIONAL UPDATE MARCH 28, 2016

CORPORATE AND PROFESSIONAL UPDATE MARCH 28, 2016 DIRECT TAX Income Tax: Correction of statement cum challan relating to TDS on sale of property u/s 194IA – CPC-TDS has enabled functionality for online correction in form 26QB from 29/02/2016. Income Tax: TDS u/s 194I – whether the tour operators/travel agents were required to deduct TDS under Section 194-I …

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/ INCOME TAX

CORPORATE AND PROFESSIONAL UPDATE MARCH 26, 2016

CORPORATE AND PROFESSIONAL UPDATE MARCH 26, 2016

www.caindelhiindia.com; PRIVATE LIMITED
www.caindelhiindia.com; CORPORATE UPDATES

DIRECT TAX

  • Income Tax: Penalty u/s 271E – Company has directly repaid the loan taken from Director to Bank – violation of section 269T – The assessee has demonstrated that under the compulsion the payment was directly credited in the bank account of the Director. Strictly it was not paid in cash – No penalty .
  • Income Tax: Non collection of TCS (tax collection at source) – main husk is a by-product and the same cannot be considered as scrap and waste as provided in the Explanation to Section 206C of the Income-tax Act.
  • Income Tax: Non collection of TCS (tax collection at source) – DOC is a by-product and it certainly cannot be categorized as scrap and waste and it has its own market value – AO has erred in categorizing DOC as scrap within the meaning of Explanation to Section 206C

INDIRECT TAX

  • Cenvat credit – service tax paid by the sub-broker – there is no evidence to elevate such suspicion to a level to come to an inference that the higher commission (than the commission received by the appellant) was paid to sub-brokers in respect of goods other than the goods for which it received commission from its clients – credit allowed- (M/s N.R. Wires Pvt. Ltd. Versus Commissioner of Central Excise, Raipur – 2016 (3) TMI 714 – CESTAT NEW DELHI).
  • CENVAT Credit – eligibility of input services – By denying credit on all the input services it seems to appear that the appellants has not availed any input service for providing output service during the relevant period which is not possible- (M/s Conexant Systems Pvt Ltd, Hyderabad Versus Commissioner of Central Excise And Service Tax, Hyderabad-II – 2016 (3) TMI 713 – CESTAT HYDERABAD).
  • Service Tax: Liability of Service tax on TDS amount absorbed by the assessee on foreign remittance – Reverse charge – Service Tax liability needs to be discharged on amounts which have been billed by the service provider – Demand set aside.
  • Service Tax: Sharing of resources and cost / expenses with the group companies – The activities carried out by the Appellant enables the Participating Group Companies to share the common services, the best available talent and resources required for carrying out their business activities. No taxable service is provided by the appellant – No service tax liability.

DATES 

  • Company e-forms revised on MCA portal w.e.f. 03.2016.Download the latest version of forms from company forms download page on the MCA portal.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:  info@caindelhiindia.com or call at  011-233-43-333

(more…)

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/ Company Law Compliances

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 22, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 22, 2016

www.caindelhiindia.com; value added tax
www.caindelhiindia.com; value-added tax

DIRECT TAX

  • Income Tax: Wherever under the DTAA’s. Make available clause is found, then as there is no imparting, the payment in question is not ‘FTS’ under the Treaty and when there is no ‘FTS’ clause in the treaties, the payment falls under Article 7 of the Treaty and is business income. – Tri
  • Income tax ; TDS u/s 192 or 194J : The difference between this clause in two types of agreements itself goes to prove that doctors who are engaged on retainer ship basis are not the servants of the assessee since they are allowed to do whatever they want except joining the similar business while other doctors who are on the pay roll of the assessee are debarred from doing any other activity apart from that of the assessee- (The A.C.I.T. (TDS) , Chandigarh Versus M/s Fortis Healthcare Ltd. – 2016 (3) TMI 629 – ITAT CHANDIGARH)

INDIRECT TAX

  • Service Tax: Exemption from service tax on construction service provided in case of religious use but not to charitable purpose – clause 13(c) of Notification No. 25/2012-ST, dated 20.6.2012 – in the absence of petitioner’s demonstration that the enactment/provision/notification is arbitrary, discriminatory or violative of Article 14 of the Constitution of India, it cannot be declared to be unconstitutional. – HC
  • Service Tax: The appellants are eligible for refund under Rule 5 of CCR read with Notfn No.12/2003 as amended on the input services i.e. Company Secretary Service, Chartered Accountant service , Security service, Legal Consultancy service, ITS service, GTA service – Tri
  • Service Tax: When the assesse is not disputing his liability for discharging the statutory obligations and has paid the entire tax alongwith the interest and 25% of the penalty and there after discharging his obligations as a tax payer, in view of the provisions of Section 73(4A) the proceeding should be deemed to have been concluded – Tri
  • Service Tax: Imposition of penalties for the period 2007-08 to 2010-11 – Sections 76 & 78 of the Finance Act, 1994 – if the show cause notices are issued after the date of amendment, penalties under Section 76 and 78 simultaneously cannot be imposed and hence setting aside the penalty under Section 76 is uninterferable – Tri
  • Service Tax: Liability of tax on extended warranty service between October 2005 and September 2010 – Mere coverage by the extended warranty scheme does not, of itself, create an intention to use the service of the dealer. – Tri
  • Central Excise: Valuation of goods sold through dealers – inclusion of the expenditure incurred by the wholesale dealers in the assessable value of the goods sold by the appellant to such wholesale dealers – Not to be included – Tri
  • Central Excise: Eligibility of quantity discount – as cash discount is something which is “known” at or prior to the clearance of the goods, being contained in the agreement of sale between the assessee and its buyers, and must therefore be deducted from the sale price in order to arrive at the value of excisable goods “at the time of removal”. – Tri
  • VAT and Sales Tax: Principles of natural justice – it was the assessee, who invited the attention of the Tribunal to the balance sheet – the Tribunal is entitled to come to its own conclusion from what was produced. It is not part of the principles of natural justice to expect the Tribunal to confront the person producing the document with what is found by the Tribunal – HC

MCA UPDATES

  • Companies Law: If contract expressly bars award of interest pendente lite, the same cannot be awarded by the Arbitrator. – the bar to award interest on delayed payment by itself will not be readily inferred as express bar to award interest pendente lite by the Arbitral Tribunal, as ouster of power of Arbitrator has to be considered on various relevant aspects – SC

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances;Hope the information will assist you in your Professional   endeavors. For query or help, contact:  info@caindelhiindia.com or call at  011-233-43-333 (more…)

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