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<\/a><\/p>\nCORPORATE AND PROFESSIONAL UPDATE AUG 9, 2016<\/h2>\n
Direct Tax:<\/span><\/strong><\/p>\n The scrap and spent solution are part of the manufacturing process and eligible for exemption u\/s 10B. [The CIT vs. M\/s. Orchid Chemicals & Pharmaceuticals Ltd. – 2016 (8) TMI 278 \u2013 Madras High Court]<\/p>\n ITAT Bangalore in the below citied case held that as assessee has failed to establish this fact that he Diamonds sold in the present year are the same Diamonds which declared by the assessee in VDIS declaration 1997\u00a0 hence\u00a0 addition u\/s 68 will be made.(\u00a0Shri Ramavatar S. Mahajan Vs.\u00a0The ITO, Hubli)<\/p>\n Delhi ITAT holds that EPFO (Employees Provident Fund Organisation governed by Employees Provident Fund Act, 1952) is liable to deduct tax u\/s 192 in respect of settlement\/withdrawals of accumulated balances\u00a0by employees before 5 years\u00a0 of rendering of\u00a0continuous\u00a0service\u00a0during\u00a0 AYs 2008-09 to 2013-14-[TS-422-ITAT-2016(DEL) ]<\/p>\n Even a motor vehicle can be treated as machinery if it is used in execution of works contract under Gujarat VAT State of Gujarat v. Yantraman Automac (P.) Ltd. [2016] 72\u00a0\u00a062 (Gujarat)<\/p>\n A co. preparing its final accounts on basis of a calendar year couldn’t be chosen as comparable Core Objects India (P.) Ltd. v. Income-tax Officer, Ward 11(1), Bangalore [2016] 72\u00a0\u00a053 (Bangalore – Trib.)<\/p>\n No interest if differential service tax is paid prior to finalization of provisional assessment Fee charged by Finance Co. for collecting EMI from bank customers would be considered for sec. 36(viii) deduction Gruh Finance Ltd. v. Assistant Commissioner Income-tax, Circle-4, Ahmedabad[2016] 72\u00a0\u00a048 (Ahmedabad – Trib.)<\/p>\n TDS under sec. 192 applicable to EPF Scheme prior to introduction of sec. 192A Capital goods used for generation of electricity eligible for credit even if they are installed on premises of AE OPG Metals (P.) Ltd. v. Commissioner of Central Excise, Trichy No abuse of dominance by DLF in Lucknow as there were many real estate developers therein Vinay Kala and Smt. Mina Kala v. DLF Ltd. [2016] 72\u00a0\u00a041 (CCI)<\/p>\n Indirect Tax:<\/span><\/strong><\/p>\n Kerala VAT dealer can claim rebate of entire tax if output tax doesn’t exceed total rebate claimed Maya Rajeev v. Commercial Tax Officer [2016] 72\u00a0\u00a061 (Kerala)<\/p>\n Intellectual Property Right service – taxability u\/s 66A – Held that – to be categorized for service tax purpose under IPR, such right should have been registered with trade mark\/patent authority. As such, there can be no provision of IPR service for tax liability on reverse charge basis. Demand set aside and Decided in favor of assessee –\u00a0Chambal Fertilizers and Chemicals Ltd. Versus C.C.E., Jaipur – 2016 – CESTAT NEW DELHI<\/p>\n If Indian courier-agency hires foreign courier-agencies to complete delivery outside India of foreign-bound packages, then, since role of foreign agencies commences and ends beyond border of India, hence, services of foreign agencies cannot be treated as wholly\/partly performed in India and cannot, therefore, be taxed in India under reverse charge under section 66A-(First\u00a0Flight Couriers Ltd. v. Commissioner of Service Tax, Mumbai-II.)<\/p>\n GST <\/span><\/strong><\/p>\n Constitutional amendments on GST Bill made by Rajya Sabha, rectified by Lok sabha unanimously.<\/p>\n FAQ on Company Law:<\/span><\/strong><\/p>\n Query: \u00a0In case a director has attended Board meetings through video conferencing mode. Will it be counted for quorum. Please advice<\/p>\n Answer:\u00a0Yes, as per Rule 3(2)(e) & (f) of the Companies (Meetings of Board and its Powers) Rules, 2014, any director who desire, to participate may intimate his intention of participation through electronic mode at the beginning of calendar year and such declaration shall be valid for one calendar year. And in absence of any intimation, it shall be assumed that director shall attend the meeting in person.<\/p>\n Further, Rule 4 of the Companies (Meetings of Board and its Powers) Rules, 2014 provides for the matters which shall not be dealt with in a meeting through video conferencing mode or other audio visual means.<\/p>\n Further, as per Section 174 of the Companies Act 2013, participation of directors through video conferencing shall be counted for the purpose of quorum.<\/p>\n Query: \u00a0\u00a0We have a query regarding the regularization of Additional director in a Private Limited Company. We want to change designation of a person from additional director to Director Are we required to re appoint him as the\u00a0 Director in the Annual General Meeting of the Company as he is suppose to retire in the ensuing Annual General Meeting or else. Please advise us that how can we change his designation from additional director to Director?<\/p>\n Answer:\u00a0\u00a0You shall have to convene an Extra ordinary General meeting of the Company or you may regularize him in the ensuing Annual General Meeting also, for the purpose. Thereafter, you need to file Form DIR-12 and purpose selected should be \u201cChange in Designation\u201d and attach the copy of Resolution passed in the General Meeting of the Company with the Form.<\/p>\n Further, to state that Form DIR 12 is not only meant for appointment or Cessation of Director only. It is meant for Change in Designation as well.<\/p>\n Query: \u00a0\u00a0How can Board meeting of an OPC be convened?<\/p>\n Answer:\u00a0\u00a0For the purposes of holding board meetings, in case of an OPC which has only One director, It shall be deemed to sufficient compliance if the resolution is entered in the minutes of meetings maintained and such minutes be signed and dated by director as well as member, then such date shall be deemed to be the date of the board meeting for all the purposes under Companies Act, 2013.<\/p>\n IRDA:<\/span><\/strong><\/p>\n The Insurance Regulatory and Development Authority of India has issued Insurance Regulatory and Development Authority of India (Listed Indian Insurance Companies) Guidelines, 2016. These guidelines shall be applicable to all insurers whose equity shares are listed on the stock exchanges and to the allotment process pursuant to the public issue. These guidelines shall be in addition to, and should be read with any other law for the time being in force, including the IRDAI (Issuance of capital by Indian Insurance Companies transacting other than Life Insurance Business) Regulations, 2015. These guidelines shall come into effect on the day of their issuance.<\/p>\n RBI Updates:-<\/span><\/strong><\/p>\n The only limit to our realization of\u00a0tomorrow\u00a0will be our doubts of today. \u00a0\u00a0 -Franklin D. Roosevelt<\/p>\n The way to get started is to quit talking and begin doing. \u00a0\u00a0\u00a0 -Walt Disney<\/p>\n Positive thinking is the investment which gives us regular dividend in the form of self confidence.<\/p>\n
\nCanara Bank v. Commissioner of Central Excise & Customs (LTU) [2016] 72\u00a0\u00a052 (Bangalore – CESTAT)<\/p>\n
\nEmployees Provident Fund Organization v. Deputy Commissioner of Income-tax, (TDS), Noida [2016] 72\u00a0\u00a083 (Delhi – Trib.)<\/p>\n
\n[2016] 72\u00a0\u00a051 (Chennai – CESTAT)<\/p>\n\n
Key Dates:<\/span><\/h1>\n
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