"11 June 2015" Archive

Statutory Auditors to Attend AGM Compulsorily?

The Company jurisprudence in India enshrines statutory auditors who audit the accounts of a company as representatives of the shareholders who appoint them at every Annual General meeting {AGM} to look after the interest of the shareholders. ...

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Posted Under: Company Law |

Focus Areas in Vat Assessment

Let us understand the words VAT assessment on individual basis. When I say assessment it means to check something of it's correctness or verification by other person. Similarly VAT as stands for value added tax can be understood as tax on value addition. So can we say that VAT assessment is nothing but verification of tax paid on the valu...

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Posted Under: Company Law |

Return Filing under Service Tax

The Person who is liable to pay Service Tax has to submit half yearly return i.e. 1st April to 30th September and 1st October to 31st March of Financial Year in Form-ST-3 within 25 days of the end of the Half Year. Note: Input Service Distributor is also required to file half yearly returns, even if he is not liable to pay service tax....

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Posted Under: Company Law |

Chart on Penalties under Companies Act 2013

Company and every officer of the company who is in default or such other person shall be punishable with fine which may extend to ten thousand rupees and where the contravention is continuing one with a further fine which may extend to one thousand rupees for every day after the first during which the contravention continues....

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Posted Under: Company Law |

FAQs on Limited Liability Partnership

LLP is defined as partnership formed and registered under Limited Liability Partnership Act is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP can continue its existence irrespective of changes in partners....

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Posted Under: Company Law |

Reg. Refund of Wealth Tax Paid on Urban Agricultural Land Used for Agriculture

Circular No. 11/2015-Income Tax (11/06/2015)

CIRCULAR NO. 11/2015 Prior to amendment by Finance Act 2013, sub clause (b) of Explanation 1 to clause (ea) of section 2 of the Wealth-tax Act 1957 (Act) provided that an urban land shall be chargeable to wealth-tax. This inter alia included land situated in any area which is comprised within the jurisdiction of a municipality or a canton...

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GST : A Tool to Reduce Tax Leakage

Goods and Services Tax (GST) is a very simple indirect tax structure, wherein tax paid on goods or services procured by any entity (manufactures, trader or service provider) at first level can be availed as input tax credit while passing on the goods or service to the second level....

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Posted Under: Company Law |

Disallowance u/s 40(a)(ia) for not deducting TDS u/s 195 in the absence of PE and business connection in India not justified

JCIT Vs M/s. Tirupati Plywood Industries (ITAT KOLKATA)

The assessee is engaged in manufacturing of plywood where imported timber is being used. During the relevant previous year assessee has imported wood logs from outside India. Assessee has made payment of Rs.32,46,905/- to the exporter on its sale these woods to the assessee on F.O.R. basis....

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Mere acceptance by assessee of addition not entitles department to levy concealment penalty

IGL Gemstones Pvt. Ltd. Vs. DCIT (ITAT Mumbai)

Prima-facie, according to the provisions of section 194C r.w. definition given of "work" under the explanation to section 194C, the case of the assessee has to be accepted that assessee could be under bonafide belief for non-deduction of tax from the type of payments upon which it has been held that assessee is liable to deduct tax at sou...

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Indian Accounting Standards Converged with IFRS (Ind AS)-An Overview

The world is getting smaller and smaller, globalization has made it possible to accept the world as one market. For better understanding of the business reporting and consistency in accounting policies, there was an urgent need to align to one global accounting language. Application of a single set of accounting requirements would increas...

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Posted Under: Company Law |

A Bird Eye on Credit Rating

Credit Rating is the evaluation of the credit worthiness of an instrument of a company based on perceived overall risk of a company’s business and financial profile as well as structural consideration. Credit rating establishes a link between risk and return. An investor or any other interested person uses the rating to assess the risk ...

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Posted Under: Company Law |

Plethora of exemptions to government companies!!!!

Ever since the draft notifications were placed before the Parliament, companies have been eagerly waiting for the approval and promulgation of the same. Finally the exemption notifications saw the light of day with MCA releasing 4 exemption notifications in bulk on June 05, 2015. Among the four notifications, one notification pertains to ...

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Posted Under: Company Law |

Trading by Insiders – approach under SEBI (Prohibition of Insider Trading) Regulations of 2015

 1. Introduction Stock market is all about dealing in securities. It is a specialized market. Stock markets are formed under the Securities Contracts (Regulation) Act,1956 and the operations are regulated by the Securities Contracts (Regulation Rules,1957. SEBI formed as per the Securities and Exchange Board of India Act, 1992 is the reg...

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Posted Under: Company Law |

Section 188 – Related Party Transactions

Manshi Baid The definition of Related Party is given in Clause (76) of section 2 of Companies Act 2013 . This section provides that a related party for a company are :- 1.      A director or his relative 2.      A key managerial personnel or his relative 3.      A firm in which director , manager or […]...

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Posted Under: Company Law |

Holidays to be observed in Central Government Offices during the year 2016

12/7/2015-JCA-2 (11/06/2015)

It has been decided that the holidays as specified in the Annexure -I to this O.M. will be observed in all the Administrative Offices of the Central Government located at Delhi/New Delhi during the year 2016. In addition, each employee will also be allowed to avail ...

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Supply of a ‘service’ by units located in DTA to SEZ units – ineligible for rewards under SEIS

Policy Circular No. 1/2015-20 (11/06/2015)

Therefore it is clarified that regardless of the amendment notified vide Notification No. 08/2015-2020 dated 04.06.2015 (through which export turnover relating to services of units operating under SEZ Scheme or supplies of services made to such units has been deleted from the list of ineligible categories under SEIS thereby making supply ...

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Analysis of Service tax applicability on Chit Fund

Amendment made by Finance Bill, 2015 by way of insertion of explanation to Sec 65B(44) , it is clear that the Govt. intends to collect the service tax on foreman commission . However, it is well settled position of the law that the any explanation bringing the new activity into tax net would not be having a retrospective effect unless the...

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Posted Under: Company Law |

Estimating Sacrifice Ratio for Indian Economy – A Time Varying Perspective

Press Release : 2014-2015/2631 (11/06/2015)

This paper estimates sacrifice ratios for the post liberalization period for India. Around the late 1970’s, tight monetary policy created a disinflationary situation resulting in recession for many advanced economies. This highlighted the cost of reducing trend inflation in the interim period. In this context, the concept of ‘Sacrific...

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RBI notifies additional documents for limited purpose of ‘proof of address’

RBI/2014-15/633 DBR. AML.BC. No.104/14.01.001/2014-15 (11/06/2015)

or the limited purpose of proof of address the following additional documents are deemed to be OVDs under ‘simplified measures’. Utility bill which is not more than two months old of any service provider (electricity, telephone, postpaid mobile phone, piped gas, water bill); Property or Municipal Tax receipt; Bank account or Pos...

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Subscription to chit funds by Non-Resident Indian on non-repatriation basis

RBI/2014-15/636 A. P. (DIR Series) Circular No.107 (11/06/2015)

The extant guidelines for subscription to the chit funds have been reviewed in consultation with the Government of India and accordingly, it has been decided to permit Non-Resident Indians (NRIs) to subscribe to the chit funds, without limit, on non-repatriation basis subject to the following conditions:...

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VAT Collected on activation of SIM card ordered to transfer to Service Tax Department

Idea Cellular Ltd. Vs. Union of India [(2015) 57 taxmann.com 293 (Punjab & Haryana)]

Where VAT has been collected without authority of law and Service tax demand also has been raised for the same period then the VAT Assessing Authority is liable to transfer amount of VAT to Service Tax Department. Idea Cellular Ltd. Vs. Union of India [(2015) 57 taxmann.com 293 (Punjab & Haryana)]...

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Posted Under: Company Law |

Input Tax credit is available at invoice value even if goods are sold at a price lower than invoice value

Commercial Tax Officer Vs. Jyoti Electronics [(2015) 57 taxmann.com 381 (Rajasthan)]

Jyoti Electronics (the Respondent) purchased certain goods after payment of Input Tax credit. Thereafter, manufacturer of the goods granted trade discount on the goods purchased during the Assessment Year 2008-09 of an amount of Rs.9,60,183/-....

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Posted Under: Company Law |

Goods may be liable for confiscation when value of export goods in invoices is exaggerated

Commissioner of Customs, Lucknow Vs. G.P. Jaiswal [2015 (57) Taxman 295 – SC]

The Hon’ble Supreme Court held that the provisions of Section 113(d) of the Customs Act would get attracted and goods may be liable for confiscation when value of goods in invoices is exaggerated. Commissioner of Customs, Lucknow Vs. G.P. Jaiswal [2015 (57) Taxman 295 – SC]...

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Posted Under: Company Law |

Extended period cannot be invoked, if details of clearance made without payment of duty to 100% EOU were already informed to Department vide CT-3 certificates

Commissioner of Central Excise, Mumbai Vs. Blue Star Ltd. [2015 (57) Taxman 270 – SC]

The Hon’ble Supreme Court held that since CT-3 certificates were filed before the Department, no clearance could have taken place without the knowledge of the officer as to the ultimate destination of the goods and the fact that they were cleared without payment of duty in terms of the exemption notification, which was specified in the ...

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Posted Under: Company Law |

Excess credit reversed by assessee under protest during investigation with no SCN cannot be retained by Department

Commissioner of Central Excise, Pune-II Vs. Finolex Industries Ltd. [2015 (57) Taxman 153 - Mumbai-CESTAT]

Excess credit reversed by assessee under protest in course of investigation, for which no SCN has been issued, cannot be retained by Department -Refund thereof is not hit by bar of unjust enrichment. Commissioner of Central Excise, Pune-II Vs. Finolex Industries Ltd. [2015 (57) Taxman 153 - Mumbai-CESTAT]...

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Posted Under: Company Law |

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015

Notification No. FEMA. 344/2015 RB (11/06/2015)

Notification No. FEMA. 344/2015 RB sweat equity shares means such equity shares as issued by a company to its directors or employees at a discount or for consideration other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called;”...

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Import freight/ charges incurred prior to import or included in Customs valuation, cannot be charged to Service tax

United Shippers Ltd Vs. Commissioner of Central Excise, Thane-II [2015 (57) Taxman 429 – Mumbai-CESTAT]

Import freight/ charges etc., which are incurred prior to import or which are included in Customs valuation, cannot be charged to Service tax under Cargo Handling or any other service. United Shippers Ltd Vs. Commissioner of Central Excise, Thane-II [2015 (57) Taxman 429 – Mumbai-CESTAT]...

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Posted Under: Company Law |

Assessee cannot avoid responsibility to pay Service tax by contractual arrangement with its contractors

Delhi Transport Corporation Vs. Commissioner Service Tax [2015-TIOL-961-HC-DEL-ST]

Service tax burden can be transferred by contractual arrangement to the other party but, the assessee cannot ask the Revenue to wait for discharge of the liability till it has recovered the amount from its contractors. Delhi Transport Corporation Vs. Commissioner Service Tax [2015-TIOL-961-HC-DEL-ST]...

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Posted Under: Company Law |

Method of computation of value in respect of Input services used for trading prior to 01.04.2011

Synise Technologies Ltd. Vs. Commissioner of Central Excise, Pune [2015-TIOL-1036-CESTAT-MUM]

Method of computation of value U/R 6(3A) of the Credit Rules in respect of Input services used for trading cannot be applied for period prior to April 1,2011 – Value to be calculated on proportionate turnover basis. Synise Technologies Ltd. Vs. Commissioner of Central Excise, Pune [2015-TIOL-1036-CESTAT-MUM]...

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Posted Under: Company Law |

No Condition that Input services must be received within factory premises for availment of Cenvat credit

he Hon’ble High Court of Bombay held that Rule 3 and 4 of the Credit Rules provide that any Input or Capital goods received in the factory or any Input service received by manufacturer of final product would be susceptible to Cenvat credit. ...

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Posted Under: Company Law |

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