{"id":2245,"date":"2016-09-20T11:30:54","date_gmt":"2016-09-20T11:30:54","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=2245"},"modified":"2024-04-04T11:37:25","modified_gmt":"2024-04-04T11:37:25","slug":"corporate-and-professional-update-sept-202016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-sept-202016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE SEPT 20,2016"},"content":{"rendered":"

TODAY UPDATES:<\/h1>\n
\"www.caindelhiindia.com;<\/a>
www.caindelhiindia.com; Corporate updates<\/figcaption><\/figure>\n

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

CBDT has issued a clarification regarding u\/s 119 of the Income Tax Act, 1961<\/a> dated 9th September 2016 vide F. No. 225\/195\/2016-ITA II dated 14th September 2016. CBDT clarified that the extended due date of filing return would also apply for the tax audit report.<\/p>\n

ITAT Indore in the below citied case held that\u00a0 the failure of the assessee to comply with the notice u\/s 142(1) cannot be said to be a default which may justify the levy of penalty u\/s 271(1)(b) of the Act.-\u00a0(M\/s. M.P. State Civil Supplies Corporation Limited Versus ACIT, 2 (1) , Bhopal)<\/p>\n

Calcutta High Court In the below citied case dismissed the petition as the assessee had questioned the territorial jurisdiction of the assessing officer and the assessing officer held that the assessee had lost the right to raise the objection by efflux of time.\u00a0(M\/s. ELITE PHARMACEUTICALS AND ANR. Versus INCOME TAX OFFICER, WARD 46 (1) , KOLKATA)<\/p>\n

Bombay High court in the below citied case held that retrenchment compensation paid by subsidiary to the workers of the two units which belonged to the assessee and which were transferred to the subsidiary and which amount was reimbursed by the assessee under a contractual agreement – allowable as an admissible deduction\u00a0(The Wallace Flour Mills Co. Ltd. Versus The Commissioner of Income Tax Central CircleI)<\/p>\n

ITAT Delhi in the below citied case held that once no sum in respect of accrual of interest\u00a0 is credited in the books of accounts of the assesssee it is really not known how any figure reflected in Form 26AS can be treated as income of the assessee as Form 26AS neither forms part of books of accounts of the assessee.(VIKASH YADAV Versus ITO, WARD-2, REWARI)<\/p>\n

ITAT disallows Rs 76 lakh incurred by Pharma Co. on foreign trip of doctors and their spouses Assistant Commissioner of Income-tax, Circle 6 (3), Mumbai\u00a0v.\u00a0Liva Healthcare Ltd. [2016] 73\u00a0taxmann.com\u00a0171 (Mumbai – Trib.)<\/p>\n

Period of holding of shares would commence from date of its conversion from stock-in-trade to capital asset Cambay Investment Corpn. Ltd.\u00a0v.\u00a0Deputy Commissioner of Income-tax [2016] 73\u00a0taxmann.com\u00a0124 (Gujarat)<\/p>\n

Cash deposited by partner in saving account couldn’t be held as unexplained when it was cash sales of firm Income-tax Officer, Ward- 30 (1), New Delhi\u00a0v.\u00a0Vinod Chadha [2016] 73\u00a0taxmann.com\u00a0118 (Delhi – Trib.)<\/p>\n

Valuation loss in open derivative contract is allowable Mili Consultants & Investment (P.) Ltd.\u00a0v.\u00a0Deputy Commissioner of Income-tax, Circle-4(3) [2016] 72\u00a0taxmann.com\u00a0141 (Mumbai – Trib.)<\/p>\n

Direct cash deposit in supplier\u2019s bank a\/c not attracts disallowance u\/s 40A (3) [Bolkunda Pachwai & (S) C.S. Shop vs. Income-tax Officer (ITAT Kolkata)].<\/p>\n

CBDT clarifies due date extension also applicable to Accounts audited under Sec 44AB vide notification no 225\/195\/2016-ITA II.<\/p>\n

The CBDT on Monday said assessees taking advantage of direct tax dispute resolution scheme, 2016 will be required to pay taxes within the stipulated period to avail the relief under the scheme.<\/p>\n

Corporate Income tax Rate\u00a0<\/strong><\/span><\/h3>\n

\"Corporate<\/p>\n

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

Cenvat credit in respect of service tax paid on Rent-a-cab service for picking up and dropping down of its employees to the factory and back rightly denied – Tri – Service Tax\u00a0(Wipro Ltd. Versus Commissioner of Central Excise, Puducherry)-\u00a0\u00a02016 (9) TMI 537 – CESTAT CHENNAI – Service Tax<\/p>\n

The only irregularity committed by the appellant is that the Headquarters of the appellant was not registered as ISD Distributor. This being a procedural irregularity therefore cannot be made the basis of denying CENVAT Credit on services received by the appellant – Tri – Service Tax\u00a0(Cement Manufacturing Company\u00a0Versus Commr. of Central Excise & Service Tax, Shillong – 2016 (9) TMI 536 – CESTAT KOLKATA – Service Tax<\/p>\n

Supreme Court in the below citied case held that the value of the work entrusted to the sub-contractors or payments made to them shall not be taken into consideration while computing total turnover\u00a0\u2013\u00a0(Larsen & Toubro Limited Versus Additional Deputy Commissioner of Commercial Taxes & Another<\/p>\n

CESTAT Chandigarh in the below citied case held that where amounts collected by the appellants as Sales Tax from the customers but not paid to the State Sales Tax authorities.50% of the amount not payable to state is liable to be included in the value.( M\/s Honda Motorcycles & Scooters India Pvt. Ltd. Versus CCE, Delhi-III)<\/p>\n

Job-worker to be treated as manufacture for medicines made for brand owners<\/p>\n

Commissioner of Central Excise & Service Tax, Ahmedabad-II\u00a0v.\u00a0Intas Pharmaceuticals Ltd. [2016] 73\u00a0taxmann.com\u00a0144 (SC)<\/p>\n

Physician’s samples packed in “special packs” are to be valued on basis of price of “regular packs” Commissioner of Central Excise, Mumbai v. Johnson & Johnson Ltd. [2016] 73\u00a0taxmann.com\u00a0143 (SC)<\/p>\n

Depreciation already allowed before initial AY couldn’t be artificially carry forward to deny sec. 80-IA relief Eagle Press (P.) Ltd.\u00a0v.\u00a0Assistant Commissioner of Income-tax, Company Circle II(1), Chennai [2016] 73\u00a0taxmann.com\u00a0141 (Madras)<\/p>\n

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

MCA\u00a0notified that the\u00a0Remuneration Limits for the Companies having no or inadequate profits can be enhanced without the Central Government approval,\u00a0that is, Section II of Part II has been substituted.<\/p>\n

MCA doubles limit of managerial remuneration payable by Cos. having no profit or inadequate profit REGD. NO. D. L.-33004\/99 Dated SEPTEMBER 12, 2016<\/p>\n

Vijay Mallya’ rightly summoned when cheque issued by ‘Kingfisher Airlines’ was dishonoured: HC, Vijay Mallya\u00a0v.\u00a0Delhi International Airport (P.) Ltd. [2016] 3\u00a0taxmann.com\u00a095 (Delhi)<\/p>\n

FAQ ON COMPANY LAW:<\/span><\/strong><\/p>\n

Query:\u00a0If during the lean period, there is some activity being carried out by the company, which is not in its normal course of business, and there is a receivable or outstanding from such activity, whether it shall be considered as \u201cTrade Receivable\u201d in Financial Statements of Company?<\/p>\n

Answer:\u00a0If the receivables arise out of sale of materials or rendering of services in the normal course of business, it should be treated as trade receivables. Otherwise, it is treated as other assets in Financial Statements of Company.<\/p>\n

Query:\u00a0A company has a single class of equity shares. Is the company still required to disclose rights, restrictions and preferences with respect to the same in the Financial Statements?<\/p>\n

Answer:\u00a0Schedule III of Companies Act 2013 requires disclosures of rights, preferences and restrictions attached to each class of shares. If a company has only one class of equity shares, it is still required to make this disclosure in the Financial Statements of Company.<\/p>\n

Query:\u00a0Should investment in LLP should be disclosed in Financial statements of company?<\/p>\n

Answer:\u00a0LLP is a body corporate and not a partnership firm as envisaged under the Partnership Act, 1932. Hence, disclosures pertaining to investment in partnership firms will not include the investment in LLP. The investment in LLP should therefore be disclosed separately under \u2018Other Investments\u2019. Other disclosures prescribed for investment in a partnership firm need not be made for investment in an LLP.<\/p>\n

Query:\u00a0\u00a0How will a company classify its investment in preference shares, which are convertible into equity shares\u00a0within one year\u00a0from the balance sheet date? Will it classify the investment as a current asset or a non-current asset?<\/p>\n

Answer:\u00a0In accordance with the Schedule III, an investment realisable\u00a0within 12 months\u00a0from the reporting date is classified as a current asset. Such realisation should be in the form of cash or cash equivalents, rather than through conversion of one asset into another non-current asset. Hence, the company must classify such an investment as a non-current asset, unless it expects to sell the preference shares or the equity shares on conversion and realise cash\u00a0within 12 months.<\/p>\n

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

GST:\u00a0MoF notifies\u00a0Constitution of Goods & Services Tax Council – Notification – Goods and Services Tax\u00a0\u2013F.No.31011\/09\/2015-SO (ST) – S.O.2957(E), dt.15-9-2016.<\/p>\n

GST:\u00a0PM Narendra Modi wants all steps for GST rollout to be completed before April 1, 2017.<\/p>\n

Under GST late returns would attract fee @ 100 per day subject to maximum of Rs 5,000\/- maximum fee in case of annual return is 0.25% of aggregate turnover.<\/p>\n

DGFT UPDATES:-<\/span><\/strong><\/p>\n

DGFT has issued a clarification in regard of issuance\u00a0 of Free Sale & Commerce Certificate to Merchant Exporters\u00a0vide circular No. 02\/2015-20 dated 15\/09\/2016.<\/p>\n

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

Kindly pay ICAI membership\/COP fee for the year 2016-17 by 30th September, 2016.<\/p>\n

CA held as guilty of professional misconduct as he had disclosed info gathered during audit Council of The Institute of Chartered Accountants of India\u00a0v.\u00a0Devinder Kumar Jain [2016] 73\u00a0taxmann.com\u00a0103 (Delhi)<\/p>\n

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

Peace cannot be kept by force; it can only be achieved by understanding.\u00a0 -Albert Einstein<\/p>\n

The mind is not a vessel to be filled but a fire to be kindled. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 -Plutarch<\/p>\n

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

FOR FURTHER QUERIES CONTACT US:<\/p>\n

W:\u00a0www.caindelhiindia.com<\/a> E: info@caindelhiindia.com T: 9-555-555-480<\/p>\n","protected":false},"excerpt":{"rendered":"

TODAY UPDATES: DIRECT TAX: CBDT has issued a clarification regarding u\/s 119 of the Income Tax Act, 1961 dated 9th September 2016 vide F. No. 225\/195\/2016-ITA II dated 14th September 2016. CBDT clarified that the extended due date of filing return would also apply for the tax audit report. ITAT Indore in the below citied …<\/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":[161,96,20,647,144,142,146],"tags":[502,501,179,182,183,178,180,181,537,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/2245"}],"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=2245"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/2245\/revisions"}],"predecessor-version":[{"id":6915,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/2245\/revisions\/6915"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=2245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=2245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=2245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}