{"id":2164,"date":"2016-09-23T06:01:53","date_gmt":"2016-09-23T06:01:53","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=2164"},"modified":"2021-07-14T12:00:03","modified_gmt":"2021-07-14T12:00:03","slug":"corporate-and-professional-updates-july-21-2016-2","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-updates-july-21-2016-2\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATES JULY 21, 2016"},"content":{"rendered":"
\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; Corporate updates<\/figcaption><\/figure>\n

DIRECT TAX:<\/strong><\/p>\n

Income Tax<\/a>: \u00a0Interest paid by the contractor to finance its business wasn’t includible in cost of inventory; No understatement of WIP Deputy Commissioner of Income-tax, Central Circle 2(2), Bangalore v. JSR Constructions (P.) Ltd. [2016] 71 taxmann.com 184 (Bangalore – Trib.)<\/p>\n

Income tax: ITAT Chennai in the below-citied case held that Continuance of registration u\/s 12AA – The beneficiaries are only the members and benefit is not passed on to the public at large in any way. – Therefore, the objects and activities of the applicant cannot be called as \u201ccharitable\u201d within the definition of the main provision of section 2(15) \u2013( ITAT Chennai in case of [M\/s. Aiema Technology Centre Vs. The DIT, (Exemptions)]<\/p>\n

Income tax: ITAT C Ahmedabad in the below-citied case held that Valuation u\/s 50C is a deeming provision and it extends only to land or building or both. – Rights in the land cannot be equated to land or building or both and therefore section 50C is not applicable to transfer of such rights \u2013( ITAT Ahmedabad in case of [Smt. Devindraben I. Barot Vs. ITO, Ahmedabad])<\/p>\n

INDIRECT TAX:<\/strong><\/p>\n

Excise: Where assessee manufactured two machineries and used same within its factory for manufacturing of final products and subsequently it cleared these machineries to its job worker and for discharging duty liability on machineries calculated assessable value of machineries by availing benefit of depreciation, availing of depreciation was in consonance with law – [2016] 71 taxmann.com 122 (Bangalore – CESTAT)<\/p>\n

Service tax : Where assessee provided site formation and clearance and excavation services to one ‘S’ and ‘S’ in terms of agreement supplied explosives and diesel oil free of cost to assessee for rendering services and also paid bonus to it for a good performance, Adjudicating Authority was wrong in including value of explosives and diesel oil and bonus received by assessee in assessable value of services –\u00a0[2016] 71\u00a0taxmann.com\u00a0175 (Bangalore – CESTAT)<\/p>\n

COMPANY LAW UPDATES :<\/strong><\/p>\n

Query:\u00a0\u00a0\u00a0What shall be treatment of reserves in case we convert our Private Limited company to LLP?<\/p>\n

Answer:\u00a0\u00a0\u00a0In case of conversion of Private company into LLP, reverves can be treated in two ways. – for the treatment of reserves subsisting in the Balance sheet of Company,\u00a0either distribute the reserves\u00a0among the partners in their capital sharing ratio or the same would be transferred in the reserves account of the LLP under the head Reserves & Surplus.<\/p>\n

Use latest version of e-Forms INC-23, MR-1 and MR-2, which are likely to be revised on MCA Portal by 21.07.2016.\u00a0<\/strong><\/p>\n

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

The recommendation of the Supreme Court-constituted special investigation team (SIT) to ban cash transactions above\u00a0Rs.3 lakh and capping cash holdings of\u00a0companies and individuals at\u00a0Rs.15 lakh will be detrimental for India\u2019s traditional economy, according to a leading traders body.<\/p>\n

KEY DATES:<\/strong><\/p>\n