{"id":2009,"date":"2016-04-30T12:09:21","date_gmt":"2016-04-30T12:09:21","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=2009"},"modified":"2021-07-07T12:54:36","modified_gmt":"2021-07-07T12:54:36","slug":"corporate-and-professional-update-april-21-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-april-21-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE April 21, 2016"},"content":{"rendered":"
CORPORATE AND PROFESSIONAL UPDATE April 21, 2016<\/a><\/h5>\n
\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; CORPORATE UPDATES<\/figcaption><\/figure>\n

Direct Tax:<\/span><\/strong><\/p>\n

TPL under Section 90\/90A\/91 of IT Act 1961- Draft Rules for Granting Relief or Deduction vide Circular No. F.NO.142\/24\/2015 under section 90\/90A\/91 of IT\u00a0dated 18-04-2016-\u00a0(Click here to view)<\/p>\n

Benefit of deduction u\/s 80P(2)(a)(i) – Held that – Assessee is entitled for deduction of interest income derived from investment of surplus funds with banks also. – Decided in favour of assessee\u00a0(Shri Sarvodaya Credit Co-op. Society Ltd. Versus ITO, Ward-2 (5) , Bhavnagar<\/strong>)-\u00a02016 (4) TMI 649 – ITAT AHMEDABAD<\/p>\n

Exemption u\/s. 11 denied – Activity carried on by assesse charitable or not u\/s 2(15) – Held that – As find that the assessee trust is registered with the DIT(E), Mumbai u\/s. 12A of the Act as charitable institution. The assessee falls under the definition of charitable purposes under the last limb of definition to charitable purposes u\/s. 2(15) of the act i.e. the advancement of any other object of general public utility\u00a0\u00a0(Indo French Chamber of Commerce & Industry, Assistant Director of Income-tax Versus Assistant Director of Income-tax, Indo French Chamber of Commerce & Industry,)-\u00a0<\/strong>2016(4) TMI 651- ITAT MUMBA<\/strong><\/p>\n

Indirect Tax:<\/span><\/strong><\/p>\n

Clarification on issue regarding levy of services provided by Government or a local authority to business entities vide \u00a0Circular No. 192\/02\/2016 \u2013 Dated 13-04-2016 \u2013 Service Tax-(Click here to view)<\/p>\n

Service tax liability – External commercial borrowings (ECB) are raised in the form of foreign currency convertible bonds – Amount paid by the appellant to M\/s Jefferies International Ltd. for the services rendered for raising ECB for the appellant – Held that – in view of majority of decisions held in the case of Tata Steel Limited vs. Commissioner of Service Tax, Mumbai -I 2015 (11) TMI 1049 – CESTAT MUMBAI (LB) , service tax liability under reverse charge mechanism arises on the person making the payment for the services rendered by an intermediary who helps in raising the ECB. Therefore, the service tax liability arise on the appellant in respect of the amounts paid to M\/s Jefferies International Ltd. for raising the ECB.\u00a0(Gitanjali Gems Ltd. Versus Commissioner of Service Tax, Mumbai -I)<\/strong>– 2016 (4) TMI 628-\u00a0<\/strong>\u00a0CESTAT MUMBAI<\/p>\n

FAQ on Company Law:<\/span><\/strong><\/p>\n

Query:<\/strong>\u00a0\u00a0Can a LLP be converted into a Private Limited Company?<\/p>\n

Answer<\/strong>:\u00a0\u00a0No, a Private Limited Company can be converted into LLP but its vice versa is not possible as the provisions of the LLP Act, 2008.<\/strong><\/p>\n

OTHER UPDATE: <\/span><\/strong><\/p>\n

RBI vide circular dated April 13, 2016 has resolved the ambiguity under section 160 of the Companies Act, 2013, where it is provided that a person who intends to nominate himself or any other person as a director in an Indian company is required to place a deposit with the said company and clarified in this regard that deposits with an Indian Company by person resident outside India, in accordance with section 160 of the Companies Act, 2013 is a current account (payment) transaction and, as such, does not require any approval from Reserve Bank.<\/p>\n

Facebook friends may be treated as connected for insider trading [In the matter of trading in the shares of Palred Technologies Limited (SEBI)].<\/p>\n

RBI amends provisioning norms in respect of fraud cases.<\/p>\n

Key Dates:<\/span><\/strong><\/p>\n