{"id":2052,"date":"2016-05-28T10:19:06","date_gmt":"2016-05-28T10:19:06","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=2052"},"modified":"2021-07-07T12:52:57","modified_gmt":"2021-07-07T12:52:57","slug":"corporate-and-professional-update-may-20-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-may-20-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE MAY 20, 2016"},"content":{"rendered":"

TODAYS UPDATES<\/span><\/p>\n

\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; Corporate updates<\/figcaption><\/figure>\n

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

Deductions claimed u\/s. 54EC and 54F denied – Except the fact that assessee has received the so called 1\/4th share out of the total consideration there is no indication of any assessee s ownership on the property either to full extent or to 1\/4th extent.<\/p>\n

AO proceeded on the fallacious assumption that the bank deposits constituted undisclosed income over-looking the fact that the source of the deposits need not necessarily be the income of the assessee.<\/p>\n

IT:\u00a0AO proceeded on the fallacious assumption that the bank deposits constituted undisclosed income over-looking the fact that the source of the deposits need not necessarily be the income of the assessee \u2013Amrik Singh Vs. ITO, W-1, Kapurthala (2016 (5) TMI 768 \u2013 ITAT Amritsar)<\/p>\n

Forex loss incurred on loan is deductible if its underlying objective is to save interest cos<\/p>\n

IT : Foreign exchange fluctuation loss on outstanding foreign currency loan being revenue consideration towards saving interest costs etc. is an allowable expenditure under section 37(1)Cooper Corporation (P.) Ltd. v. Deputy Commissioner of Income-tax[2016] 69\u00a0taxmann.com\u00a0244 (Pune – Trib.)<\/p>\n

Provisions relation to \u201cSpecial Court\u2019s\u201d under Cos. Act 2013 comes into force wef. May 18, 2016 Section 1 of The Companies Act, 2013 – Act – Enforcement of – Notified Date On Which Provisions Of Section 2(29)(iv), Sections 435 To 438 And Section 440 Of Said Act Shall Come Into Force NOTIFICATION NO. SO 1795(E) [F.NO.01\/12\/2009-CL-I (VOL.IV)],\u00a0DATED 18-5-2016<\/p>\n

Large profit making Cos couldn’t be selected as comparables for TP study<\/p>\n

IT\/ILT: Where TPO made addition to assessee’s ALP in respect of rendering engineering, designing and product development services to its AEs, since comparables selected by TPO were large and distinct companies with different area of development and as such profit earned by those companies could not be equated with assessee-company, impugned addition was to be set aside Commissioner of Income Tax v. Pentair Water India (P.) Ltd.[2016] 69\u00a0taxmann.com\u00a0180 (Bombay)\u00a0<\/strong><\/p>\n

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

Clarification issued regarding leviability of service tax in respect of services provided by arbitral tribunal and members of such tribunal vide circular no. 193\/03\/2016 dated 18\/05\/2016-\u00a0(Click here to view)<\/p>\n

Service Tax liability for services provided by an arbitral tribunal shall be on the service recipient if it is a business entity located in the taxable territory with a turnover exceeding rupees ten lakh in the preceding financial year.Nature of activity of Payment Gateway services provided to client in USA – As all the ingredients enlisted under Rule 6A ibid are satisfied said service will qualify as export of taxable service.<\/p>\n

 <\/p>\n

Service Tax : Activity of operating\/running plant owned by client and allied activities, prima facie, fall within expression ‘Operational or Administrative assistance in any manner’ and are taxable under ‘Business Support Services’ only from 1-5-2011\u00a0[2016] 69\u00a0taxmann.com\u00a099 (Mumbai – CESTAT)\u00a0Commissioner of Service Tax v. Polydrill Engineers (P.) Ltd.<\/p>\n

Service Tax : Multi-modal Transport Operators or Freight Forwarders engaged in buying and selling ‘cargo space’ are acting on principal-to-principal basis; hence, freight surplus\/profit earned on such purchase\/sale of cargo space cannot be regarded as ‘commission’ and cannot, therefore, be taxed under Business Auxiliary Services\u00a0[2016] 69\u00a0taxmann.com\u00a0100 (Mumbai – CESTAT)\u00a0Greenwich Meridian Logistics (India) (P.) Ltd. v. Commissioner of Service Tax<\/p>\n

DVAT\u00a0has launched a Mobile App\u00a0\u2018DVATMsewa\u2019\u00a0to get registration under DVAT & CST –\u00a0Cir.No.6 of 2016-17, dt.17-05-2016.\u00a0<\/strong><\/p>\n

RBI Updates:<\/strong><\/span><\/p>\n

RBI has issued procedural guidelines for\u00a0<\/strong>Establishment of B<\/strong>ranch Office (BO)\/ Liaison Office (LO)\/ Project Office (PO) in India by foreign entities\u00a0vide Notification No- RBI\/2015-16\/397 A.P. (DIR Series) Circular No.69 [(1)\/22(R)] dated 12\/05\/2016.\u00a0(Click here to view)<\/p>\n

SEBI\u00a0has issued\u00a0guidelines for public issue of units of Infrastructure Investment Trusts (InvITs).\u00a0\u00a0<\/span><\/strong><\/p>\n

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

MoF\u00a0has announced\u00a0Income Declaration Scheme, 2016. The government is providing a 4-month window starting from\u00a01 JUN 2016.<\/p>\n

Finance Bill\u2019 2016: Rajya Sabha passes the Finance Bill, 2016 & Insolvency & Bankruptcy Code, 2016 on 11.05.2016.<\/p>\n

ICAI\u00a0has revised 5 Standards on Auditing (SA) and introduced 1 new SA, effective for audit of financial statements beginning on or after 01 APR 2017.<\/p>\n

Revised SA-700 – Forming an Opinion and Reporting on Financial Statements.<\/p>\n

New SA-701 – Communicating Key Audit Matters in the Independent Auditor’s Report<\/p>\n

Revised SA-705 – Modifications to the Opinion in the Independent Auditor\u2019s Report<\/p>\n

Revised SA-706 – Emphasis of Matter Paragraphs and Other Matter Paragraphs in the \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Independent Auditor\u2019s Report<\/p>\n

Revised SA-260 – Communication with those charged with Governance<\/p>\n

Revised SA-570 – Going Concern\u00a0\u00a0<\/em><\/p>\n

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

Payment of ESI of April:\u00a021\/05\/2016<\/p>\n

E-Payment of DVAT & CST for April:\u00a021\/05\/2016\u00a0<\/em><\/p>\n

\u201cPride and ego come when, you feel you have done something right. However respect and honour come when,\u00a0others feel you have done something right.\u201d<\/p>\n

\u201cYou have to expect things of yourself before you can do them.\u201d\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u2014 Michael Jordan\u00a0<\/em><\/p>\n

We look forward for your valuable comments.\u00a0www.caindelhiindia.com<\/a><\/p>\n

FOR\u00a0 FURTHER\u00a0 QUERIES\u00a0 CONTACT\u00a0US:<\/strong><\/p>\n

W: www.caindelhiindia.com \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0 E: info@caindelhiindia.com \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0T:011-233-4-33333, 9-555-555-480<\/p>\n","protected":false},"excerpt":{"rendered":"

TODAYS UPDATES Direct Tax: Deductions claimed u\/s. 54EC and 54F denied – Except the fact that assessee has received the so called 1\/4th share out of the total consideration there is no indication of any assessee s ownership on the property either to full extent or to 1\/4th extent. AO proceeded on the fallacious assumption …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[647,78,142,146],"tags":[502,501,179,180,723,541,537,550,538,534,536],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/2052"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=2052"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/2052\/revisions"}],"predecessor-version":[{"id":2878,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/2052\/revisions\/2878"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=2052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=2052"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=2052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}