• Sep
  • 02
  • 2014

Appointment of Auditor under Companies Act, 2013

Added In Company Law
As per section 139(6) the first auditor of the company shall be appointed by the Board within 30 days of Incorporation. In case of Board’s failure, an EGM shall be called within 90 days to appoint the first auditor. The law is silent regarding from when this time limit of 90 days be reckoned, it is better to take a stricter view and interpret that the 90 days limit starts from Incorporation rather than expiry of 30 days(i.e. failure of Board) from it.

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  • Sep
  • 02
  • 2014

Issue and redemption of preference shares by company

Added In Income Tax
As per Explanation(ii) to section 42 of the Companies Act, 2013 (‘the Act’), the term preference shares mean and includes that part of the share capital the holders of which have a preferential right over payment of dividend (fixed amount or rate) and repayment of share capital in the event of winding up of the company.

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  • Sep
  • 02
  • 2014

Cenvat credit not available on Tower Parts & Pre-fabricated buildings

Added In Service Tax
We are sharing with you an important judgment of the Hon’ble High Court of Bombay in the case of Bharti Airtel Ltd. Vs. The Commissioner of Central Excise, Pune III [2014-TIOL-1452-HC-MUM-ST]on following issue: Issue: Whether Cenvat credit is available to provider of Cellular Mobile Service on Tower Parts & Pre-fabricated buildings?

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  • Sep
  • 02
  • 2014

Return Cannot Be Treated As Defective If Tax Audit Report Not Attached

Added In Income Tax
We know that a good deal of discussion is going on as to whether the date of ITR is also extended, whether it is mandatory to attach the copy of the tax audit report with the return and whether the return will be defective if no tax audit report is attached to the ITR.

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  • Sep
  • 02
  • 2014

Haryana VAT for Developers – A Sea of Uncertain Territories & Way Forward

Added In GST
Continuing from my earlier writings on the subject matter of Haryana Vat for developers and builders, it is quite noteworthy that the recently implemented notification of 1% composition scheme as prescribed under new inserted Rule 49A of Haryana Rules faced no changes from the earlier version of draft notification to the extent it was made […]

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  • Sep
  • 02
  • 2014

What should be first, ITR or Tax Audit report? Lord Ganesha -Please Help!

Added In Income Tax
Karniti -Dear Vighnaharta .., what should be first…, Income tax return or Tax Audit report? Please remove the Vighna (Complications). Arjuna (Fictional Character): Krishna, the festival of Lord of Wisdom Shri Ganesha is being celebrated with Joy all over India, but the Income Tax payers under Tax audit are facing the obstacles in their Joy. As per Income Tax Departments recent circular, the due date of income tax return is 30th September 2014, but the extended due date of Tax Audit report filing is 30th November 2014. What mess is going on? Please explain in detail.

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  • Sep
  • 02
  • 2014

Service Tax – Relevance of General Clauses Act Vis. A. Vis British Calendar

Added In Service Tax
In the very recent decision vide 2014-TIOL-1635-CESTAT-MUM in the case The Ahmednagar Merchants Co-Op Bank Ltd vs. CCE the Hon’ble CESTAT, Mumbai has interpreted the relevance of definition of British Calender Month as per The General Clauses Act under service tax law. The brief facts of the case were as follows: Facts:“The lower appellate authority […]

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  • Sep
  • 02
  • 2014

Leased Assets qualify for Industrial Undertaking Purposes- holds Bombay HC

Added In Income Tax
Whether the film production companies are Industrial Undertaking for the purpose of Section 80IB of the Income Tax Act, 1961? Whether a film production company can be considered as Industrial Undertaking under the provision of Section 80 IB of the Income tax Act, when the plant or machinery of such company is not owned by the assessee and are hired by the assessee?

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  • Sep
  • 02
  • 2014

Whether all returns filed before filing Tax Audit Report are defective?

Added In Income Tax
As you are aware CBDT vide order no. F.No. 133/24/2014-TPL dt. 20.08.2014 issued order thereby exercising power conferred u/s 119 of the Income Tax Act for extending the due date for obtaining and furnishing of report of audit u/s 44AB of the Act for the Assessment Year 2014-15. In the absence of any reference to section 139 of the Act in that order, a vacuum was created which in turn leads to ambiguity and confusion among the assesses and professionals with respect to the due date for filing of return of income.

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