India Financial Consultancy

CORPORATE AND PROFESSIONAL UPDATE MARCH 30, 2016

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

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