"February, 2017" Archive

Budget 2017: Transfer of Unquoted Shares- Double taxation in the hands of seller as well as buyer

Section 50CA and section 56(2)(x)(c)- Fair Market Value to be full value of consideration in case of transfer of unquoted shares –Amendment required in view of double taxation in the hands of seller as well as buyer...

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Posted Under: Income Tax |

ICAI President’s Message – March 2017

I feel extremely privileged to take over as 65th President of ICAI, in the 68th year of its glorious existence and recognition. Realising my increased involvement in the affairs of my dear profession, I feel humbled, as nothing could be more satisfying in the career of a professional than serving his/her alma-mater...

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Posted Under: Income Tax |

Budget 2017- Capital gain in case of joint development agreement – Concerns which need attention

The Finance Bill 2017 proposes to insert sub-section (5A) in the existing section 45 to provide that the capital gains arising to an individual or Hindu undivided family under a Joint Development Agreement shall be taxed in the year in which completion certificate for the whole or part of the project is received...

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Posted Under: Income Tax |

Budget 2017: Exemption Limit of Rs. 50000 U/s. 56 should be raised to 5 Lakh

In order to avoid the unintended hardship to small taxpayer, the limit of exemption under section 56 may be increased from 50,000 to Rs. 5 lakhs....

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Posted Under: Income Tax | ,

Vacancy for Director Position in Indirect Tax

Vacancy for the position of Director, Indirect Tax with a Mumbai Based leading Constancy firm having experience in the field of 10 to 15 Years....

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Posted Under: Income Tax | ,

Advance Pricing Agreements Signed by CBDT Touches 140

Total number of APAs entered into by the CBDT has reached 140. This includes 10 Bilateral APAs and 130 Unilateral APAs. In the current financial year, a total of 76 APAs (7 Bilateral APAs and 61 Unilateral APAs) have already been entered into. ...

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Posted Under: Income Tax |

Companies (Transfer of Pending Proceedings) Amendment Rules, 2017

Notification No. F. No. 1/5/2016-C1-V (28/02/2017)

In exercise of the powers conferred under sub-sections (1) and (2) of section 434 of the Companies Act, 2013 (18 of 2013) read with sub-section (1) of section 239 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) (hereinafter referred to as the Code), the Central Government hereby makes the following rules further to amend the Comp...

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Aadhaar mandatory for initiatives under National Health Mission

Notification No. S.O. 697(E) (28/02/2017)

Ministry of Health & Family Welfare in the Government of India is supporting multiple programmes and initiatives under National Health Mission to achieve goals as provided in National Framework for Implementation of Scheme...

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Procedure to Reset Password while migrating to ICSI SMASH Portal

ICSI is receiving a number of queries from the students informing therein that they are facing difficulties in resetting the password while migrating to the ICSI SMASH Portal. Even though detailed User Manual has been uploaded on the website, the procedure for resetting the password is described hereunder :...

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Posted Under: Income Tax |

Treatment of IND AS Adjustments under MAT

Financials for FY 2016-17 will be prepared as per IND AS and the presentation will be done as per Division II of Schedule III as per Companies Act 013. The computation of book profit under MAT depends on accounting profit. The financial have become complex due to initial impact of IND AS and recurring impact due to adoption of IND AS...

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Posted Under: Income Tax |

Conflicts in Meaning of Supply & Scope of Supply under GST

The levy of GST is on supply of goods and/or services which is dealt with by Section 8 of the revised model GST law. Section 3 of the said law provides for meaning and scope of supply. In this article, we would be discussing on the relevance of two terms namely meaning and scope, similarities, conflicts and overriding nature of both the t...

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Posted Under: Income Tax |

Anti- Profiteering Clause in GST (Section 163)

With the upcoming reform of Indirect Tax in the country as a whole, pursuant to Constitutional Amendment, the government is intent to take every measure for the fulfilment and successful implementation of GST in every corner and for the betterment, and by this oath...

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Posted Under: Income Tax |

Clash of Cash Part 2- Now its turn of tax officers

Krishna, After demonetization of currency, government has sent notices to tax payers. It is said that there are certain rights given to Income Tax officers to verify the answers of notices and to conduct further inspection. what are they?...

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Posted Under: Income Tax |

Zero Rated Supply and consequences of charging IGST in place of CGST and SGST

What is Zero rated supply and what is the benefit and implication of the such supply. Just look at the provision of the same provided in Revised GST Law and IGST Law...

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Posted Under: Income Tax |

Interest deduction to house property held as stock-in-trade- Only Rs. 2 Lakh?

The Finance Bill 2017 proposes to insert sub-section (5) in existing section 23 to provide that where the house property consisting of any building and land appurtenant thereto is held as stock-in-trade and the property or any part of the property is not let during the whole or any part of the previous year...

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Posted Under: Income Tax |

Disallow only cash payment portion in respect of Capital Expenditure in Cash

Only such expenditure for acquisition of asset may be disallowed which has been incurred in cash and accordingly, depreciation under section 32 may be permitted for balance portion expended in non-cash mode....

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Posted Under: Income Tax |

Duty of AO in case of Reassessment after 4 Year of original assessment

ACIT Vs Shri Venkataraman S. Iyer (ITAT Ahmedabad)

AO bound to demonstrate that the assessee has failed to disclose material facts fully and truly which has resulted in escapement of income. If he fails to demonstrate this aspect, then, in the case where scrutiny assessment has been made and four years have expired, he cannot take action under section 147 of the Income Tax Act....

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No Penalty when Quantum addition itself not sustained; No Statutory Obligation to follow FIFO Method for Stock Valuation

Pareshkumar Bhikamchand Shah Vs. ITI (ITAT Ahmedabad)

P:enalty u/s 271(1)(c) of the Act has been levied on the addition made by ld. Assessing Officer but when the basis i.e. quantum addition has itself been deleted by the Co-ordinate Bench,...

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Personal Penalty on director for clearance of taxable goods as exempt is unwarranted in absence of their role in the same

C.C.E. Vs M/s Avi Sales Pvt Ltd. (CESTAT Ahmedabad)

From the evidences as recorded and analysed in the impugned order, the role of the Director has not been specifically discussed and brought out the fact that non-payment of duty was at his instance. In these circumstances, the personal penalty on the Director is unwarranted and accordingly set aside....

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RBI forms Inter-disciplinary Standing Committee on Cyber Security

Press Release: 2016-2017/2303 (28/02/2017)

Reserve Bank of India has set up an Inter-disciplinary Standing Committee on Cyber Security to, inter alia, review the threats inherent in the existing/emerging technology; study adoption of various security standards/protocols; interface with stakeholders; and suggest appropriate policy interventions to strengthen cyber security and resi...

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Income Tax Calculator for Financial Year 2016-17

This Indian Income Tax Calculator can be used to compute tax liabilities for salaried individuals only. I do not have a version for professionals or businessmen. After downloading, please read the instructions in the first sheet carefully before entering data. You would need Microsoft Excel 2007 or above to open these files. They may not ...

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Posted Under: Income Tax |

Section 40(b)(v): AO cannot compel assessee to charge interest or remuneration

M/s Sagar Foods Vs ITO (ITAT Ahmedabad)

It is correct that the terms of partnership provided payment of interest at the rate of 12 per cent on capital of partners as well as remuneration to the working partners. The assesses, however, did not make payment thereof to the partners nor made any provision of liability in the books of account...

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Aadhaar not mandatory for settlement of withdrawal claims under EPS 1995

No. Pension – I/17(10)/2016-17/Jeevan Pramaan/32049 (28/02/2017)

It has been decided that obtaining of aadhaar should be mandatory for the time being only for pension (10D) claims) and not in withdrawal cases (Form 10C)....

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IEPF Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017

G.S.R. 178(E) (28/02/2017)

These rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017. They shall come into force from the 28th February, 2017....

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Aadhaar mandatory for Deendayal Antyodaya Yojana

Notification No. S.O. 643(E) (28/02/2017)

Deendayal Antyodaya Yojana-National Rural Livelihoods Mission involves expenditure incurred from the Consolidated Fund of India; An individual who is a member of a Self Help Group or otherwise receives remuneration as a community cadre under DAY-NRLM, shall furnish proof of possession of Aadhaar or undergo Aadhaar authentication....

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Migration to GST of existing Central Excise/ Service Tax Assessees – reg.

D.O.No. IV (33) 16/2016 - Systems (28/02/2017)

The process of migration to GST has been going since 20.01.2017 in Central Excise (when all Provisional IDs were made available to taxpayers via ACES website) and since 09.02.2017 in Service This migration process is for CE/ ST taxpayers who are not getting migrated through State VAT....

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MFs to give 15 days for exit option to REITs, InvITs investors

Circular No. SEBI/HO/IMD/DF2/CIR/P/2017/17 (28/02/2017)

Any existing scheme intending to invest in units of REITs/InvITs shall abide by the provisions of Regulation 18 (15A) of SEBI (Mutual Funds) Regulations, 1996. For investment in units of REITs/InvITs by an existing Mutual Fund scheme, unitholders of the scheme shall be given a time period of at least 15 days for the purpose of exercising ...

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FPIs allowed to invest in unlisted corporate bonds, securitised debt

Circular No. SEBI/HO/IMD/FPIC/CIR/P/2017/16 (28/02/2017)

Unlisted corporate debt securities in the form of non-convertible debentures/bonds issued by public or private Indian companies subject to the guidelines issued by the Ministry of Corporate Affairs, Government of India from time to time and also subject to minimum residual maturity of three years and end use-restriction on investment in r...

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DGFT to accept e-BRC for exports with LEO date upto 31.03.2014

Circular No. 06/2017-Customs (28/02/2017)

CBEC decided that for exports with LEO dates 12.08.2012 onwards till 31.03.2014, DGFT’s e-BRC would be accepted, except in case of specific intelligence or information of misuse. This shall be subject to appropriate declaration by the exporter on back of DGFT e-BRC. Format of the said declaration is annexed herewith....

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Exemption from drawal of samples for grant of drawback

Circular No. 05/2017-Custom (28/02/2017)

It has been decided by the Board that those exporters who have been accorded Authorized Economic Operator (AEO) certificate (Tier II & Tier III) in terms of Circular No. 33/2016- Customs dated 22.07.2016 are being exempt from the requirements of drawl of samples for the purpose of grant of drawback, except in case of any specific informat...

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Notification No. 13/2017-Customs (N.T.), Dated: 28.02.2017

Notification No. 13/2017-Customs (N.T.) (28/02/2017)

Tariff Notification Notification No. 13/2017-Customs (N.T.), Dated: 28.02.2017 in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver - Reg...

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Proposal to amend Customs Valuation (Determination of Price of Imported Goods) Rules, 2007

The Central Govt. proposes to consider the following amendments to the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007...

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Posted Under: Income Tax |

Lessee cannot claim CENVAT credit on capital goods on which lessor has availed depreciation U/s. 32 of Income Tax Act, 1961

Kapstone Paper and Packaging Pvt. Ltd Vs C.C.E. & S.Tax,Surat (CESTAT Ahmedabad)

Briefly stated the facts of the case are that the appellants are engaged in the manufacture of excisable goods, namely paper and paperboard falling Chapter Heading 48 of the Central Excise Tariff Act, 1985. They have availed CENVAT credit of Rs.39,50,149/- on capital goods, procured on lease basis from one M/s B.G. India Energy Services P...

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ICSI Procedure to Exam Enrolment by CS Students under New System

This document will guide the registered student on how to enroll in the registered course for a particular session. Registered students can enroll in the course for the session anytime after 6 months of the registration....

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Posted Under: Income Tax |

Aadhaar Mandatory for Accredited Social Health Activists Scheme

Notification No. S.O. 698(E) (28/02/2017)

Performance based incentives are paid as benefits to Accredited Social Health Activists (ASHA) (hereinafter referred to as the beneficiaries) for the work performed by them and which involve recurring expenditures from the Consolidated Fund of India;...

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DVAT 3rd quarter of 2016-17 Online Return Filing due date extended to 08/03/2017

Circular No. 25 of 2016-17 (28/02/2017)

Commissioner, Value Added Tax, do hereby extend the last date of filing of online/hard copy of third quarter return for the year 2016-17, in Form DVAT-16 ,DVAT-17 and DVAT-48 along with required annexure/enclosures to 08/03/2017....

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Regional Centre for Biotechnology Act, 2016 effective from 01.03.2017

S.O. 642 (E) (28/02/2017)

In exercise of the powers conferred by sub-section (2) of section 1 of the Regional Centre for Biotechnology Act, 2016 (36 of 2016), the Central Government hereby appoints the 1st day of March, 2017 as the date on which the provisions of the said Act shall come into force....

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MVAT notification under Sch. entry D-5 & D-10 (Nagpur) Extension

Notification No. No. VAT 1517/CR 10/Taxation-1 (28/02/2017)

No. VAT 1517/CR 10/Taxation-1.—In pursuance of the powers conferred by clause (a) of entry 5 of Schedule 'D' appended to the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005), the Government of Maharashtra hereby notifies with effect from the 1st March 2017...

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Budget 2017: Increase 2 crore Turnover limit for section 194A/ 194H/ 194I & 194J

Section 44AB - Increased threshold for presumptive tax cases under section 44AD - Consequential amendments required in section 194A/ 194H/ 194I & 194J...

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Posted Under: Income Tax | ,

Reduce tax rate to 25% for LLPs, Firms Converted in Companies & to new Companies

Reduction in corporate tax rate - Reduced corporate tax rate to be applicable for erstwhile firms recently converted into companies and also LLPs and companies which were set up subsequent to P.Y.2015-16...

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Posted Under: Income Tax | ,

Remove 10% Surcharge on individual/HUF/AOP/BOI having Income exceeding Rs 50 lakhs

Surcharge @ 10% is proposed in cases where total income of an individual/HUF/AOP/BOI exceeds Rs.50 lakhs but do not exceed Rs. 1 crore. Surcharge of 15% would continue to be applicable where the total income of an individual/HUF/AOP/BOI exceeds Rs 1 crore....

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Posted Under: Income Tax |

“ONGC” –Abandonment cost/ Decommissioning liability – Ind-As/ IFRS

Cost of temporary occupation of land, successful exploratory wells. all development wells, depreciation on related equipment. facilities and estimated Future abandonment costs are capitalised and reflected as Oil & Gas Assets....

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Posted Under: Income Tax |

Guidance Note on Audit of Banks (2017 Edition)

The Auditing and Assurance Standards Board of the ICAI has today issued the Guidance Note on Audit of Banks 2017 edition. For the benefit of the members, complete text of the Guidance Note and the contents of accompanying CD can be downloaded at the following links:...

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Posted Under: Income Tax |

ICAI submits Post-Budget Memorandum-2017

In this memorandum, suggestions on the specific clauses of the Finance Bill, 2017 relating to Income-tax Act have been given in detail....

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Posted Under: Income Tax |

Expectations From CS Students during Examination Enrollment for June, 2017

Some of the common errors committed by the students during the examination enrollment process are given hereunder with an advice to the students to be careful and avoid such errors which will help in eliminating the complications at a later stage....

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Posted Under: Income Tax |

ICSI: Guidance of Creating Password by Students Under New System

It has been observed that some of the students have reported minor issues while logging into the new portal due to the reasons furnished below. For the convenience of students, the solutions have been mentioned against each issue....

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Posted Under: Income Tax |

Exempt Interest on Motor Accident Compensation and remove TDS on Such Interest

Normally it takes several years for a person injured in an accident or for the legal heirs/Dependents of the deceased who had died in an accident to get compensation from the Insurance Companies which insured the vehicles that caused the accident through Motor Accident Claims Tribunal....

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Posted Under: Income Tax |

No service-tax on museum entry fee during 01.07.2012 to 31.03.2015

Notification No. 09/2017-Service Tax (28/02/2017)

Central Government hereby directs that the service tax payable on the services by way of admission to a museum under section 66B of the Finance Act, 1994 shall not be required to be paid for the period commencing on and from the 1St day of July, 2012 and ending with the 31St day of March, 2015...

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Law on Cessation of RBI Liability on demonetised bank notes get Presidents Assent

No. 2 of 2017 (27/02/2017)

Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the same was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary, or other officer or employee of the company, such directo...

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Section 68: Identity and credit worthiness of creditors not establishes with mere Submission of Name and address not sufficient

M/s. Malnad Finance Corporation (R) Vs Asst. Commissioner of Income Tax (ITAT Bangalore)

In the present case, the assessee has failed to carry out his obligations and hence, the burden cannot be shifted to the revenue to find out from the creditors about their identity and credit worthiness after receiving the names and addresses of the creditors. ...

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Deduction U/s. 80IB cannot be denied for low electricity Consumption when majority of work is Manual

ITO Vs M/s.Padmavati Arts (ITAT Ahmedabad)

First ground of the assessee for claiming the deduction under section 80IB was that it had started production in Asstt.Year 2004-05. Asstt.Year 2006-07 is the third year. Deduction under section 80IB was granted in Asstt.Year 2005-06 in a scrutiny assessment. ...

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Credit not to be reversed when inputs shown as scrap at lesser value and not written off

Whether reversal of Cenvat credit is required on the inputs which are shown as scrap & value of such inputs was shown at lesser value and not written off in the books of account?...

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Posted Under: Income Tax |

No SSI Exemption on manufacturing own Goods with 3rd Party Brand

M/s Hindustan Machines Vs CCE (CESTAT Delhi)

In as much as the brand name owner M/s Hindustan Machines has been held to be entitled to the benefit of Notification, the other units using the said brand name would become entitled to the benefit of SSI exemption Notification as they are not hit by para 7 of the Notification....

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Goods used in Rail cleaning does not amount to transfer to Railways

VPSSR Facilities Vs Commissioner of Value Added and ANR. (Delhi High Court)

The petitioner (Contractor) impugns the order dated 30.06.20 14 passed by the Commissioner Valued Added Tax holding that the chemicals/Solvents used in the process of cleaning, amounted to sale of goods and the moment the chemicals were poured on the property of the Contractee, even though used for the purposes of cleaning, amounted to de...

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Aadhaar number mandatory for Stipend to Persons with Disabilities

Notification No. S.O. 640(E) (27/02/2017)

Aadhaar number mandatory for Stipend to Persons with Disabilities defined under the Right of Person With Disabilities (RPwD) Act, 2016 under the Scheme of National Career Services Centres for Differently Abled (Erstwhile Vocational Rehabilitation Centre for Handicapped)...

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Aadhaar number mandatory for Stipend to SC / ST Trainees

Notification No. S.O. 639(E) (27/02/2017)

Aadhaar number mandatory for Scheme of Stipend to Trainees under the Scheme of Welfare for the Scheduled Castes and the Scheduled Tribes Job-seekers through Coaching, Guidance and Vocational Training implemented by the National Career Services Centres for the Scheduled Castes and the Scheduled Tribes (Erstwhile Coaching cum Guidance Centr...

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Aadhaar number mandatory for Scheme of National Career Services

Notification No. S.O. 638(E) (27/02/2017)

S.O. 638(E).—Whereas, the use of Aadhaar as identity document for delivery of services or benefits or subsidies simplifies the Government delivery processes, brings in transparency and efficiency, and enables beneficiaries to get their entitlements directly in a convenient and seamless manner and Aadhaar obviates the need for producing ...

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Rajeev Kher to discharge functions of Chairperson CAT

Notification No. S.O. 686(E) (27/02/2017)

Central Government hereby authorised Shri Rajeev Kher, the senior-most Member in the Competition Appellate Tribunal , to discharge functions of Chairperson in Tribunal for a period of six months with effect from the 12th day of December, 2016 or until further orders, whichever is earlier....

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SEBI (Settlement of Administrative and Civil Proceedings)(Amendment) Regulation, 2017

Notification No. SEBI/LAD/NRO/GN/2016-17/036 (27/02/2017)

Settlement Notice: Except in cases which are excluded from settlement, a settlement notice indicating the substance of the charges and probable actions may be issued in advance of the notice to show cause so as to afford an opportunity to file a settlement application, within fifteen calendar days from receipt of the settlement notice....

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SEBI (Foreign Portfolio Investor) Second Amendment Regulation, 2017

Notification No. SEBI/LAD/NRO/GN/2016-17/035 (27/02/2017)

Unlisted non-convertible debentures/bonds issued by an Indian company subject to the guidelines issued by the Ministry of Corporate Affairs, Government of India from time to time;...

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Retired VAT Officer can be appointed as member of VAT Tribunal: HC

Bihar Value Added Tax Act Vs Commercial Taxes Bar Association (Patna High Court)

Mere fact that at one point of time, the officer was working with the Commercial Taxes Department, cannot be a reasonable suspicion to disqualify him for appointment....

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SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2017

Notification No. SEBI/LAD/NRO/GN/2016-17/035 (27/02/2017)

1. These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2017. 2. They shall come into force on the date of their publication in the Official Gazette....

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Income Tax Due Date Calendar for the Year 2017

This Article Compiles Various Due dates on which some provisions need to be complied under Income Tax Act, 1961 i.e. related to Payment of TDS / TCS /Advance Tax, Submission of Quarterly TDS/ TCS Return, Furnishing of TDS / TCS /Income Tax Returns/ Annual Financial Statement / Statement of Non-Deduction of Tax At Source, challan-cum-state...

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Posted Under: Income Tax | ,

Appeal before CESTAT? Declare that such matter not pending in other courts

01(05)/ Circular/ CESTAT/ 2017 (27/02/2017)

All the concerned parties may be directed that while filing appeal/ applications before this Tribunal they have to give an undertaking in the following format along with the appeals/applications to be filed before CESTAT....

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GST Migration: Allotment of Provisional Id & Access Token to Maharashtra dealers

Trade Circular No. 5T of 2017 (27/02/2017)

(a) Last date for Disabling Provisional Id and Access Token of Non-Compliant Phase 1 & Phase 2 dealers, (b) Distribution of Provisional Id and Access Token for Phase 3 dealers and (c) Last date for submission of signed Enrollment Applications....

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Domino’s Pizza- “Franchise Agreement”- An accounting perspective- Ind-As/ IFRS

We all must have read about Jubilant Food i.e. Domino’s pizza which is essentially under a franchise agreement with Domino’s pizza USA (as per its annual report). Current accounting practices in India does not have any specific guidance on such franchise agreements in relation to its accounting specifically...

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Posted Under: Income Tax | ,

U. S. Taxation: Partnership Firms– LLC & others– Series No. 1

It is a common debate among accounting professionals that Partnership firms in U.S.A. would solve all the problems and that they would recommend their clients to have the same structure for business. ...

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Posted Under: Income Tax |

One Life…….Many Struggles

A lot of people already predicted that this article is related to their own lives because they can easily relate themselves with the word in heading above Struggles. Actually, the reason behind writing this article is just to pen down my own view on this word because I am suffering with this word too....

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Posted Under: Income Tax |

Current Status of GST in India

GST is termed as a destination based consumption tax and covers all the current forms of indirect tax laws such as VAT, Service tax, Excise Duty which will be subsumed under a single term GST....

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Posted Under: Income Tax | ,

Need For Review & Reversal of Hike in CA Institute’s Membership Fees

The Institute of Chartered Accountants of India  has recently notified steep hike in CA Annual Membership Fees & COP Fees. Both Fees, together work out to Rs.7000 p.a. ( For Senior Members above age 60, Rs.6300). The question is : Is this Fee Revision warranted ? Does the Institute’s Financial Position justify this ? What [&hel...

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Posted Under: Income Tax |

Section 54F exemption not available house acquired is demolished within 3 years

K.V. Vijayaraghavan v. DCIT (ITAT Chennai)

Assessee will be entitled for benefit of deduction U/s. 54F of Act if he demolished new asset being residential house purchased by him within period of three years from the date of purchase in violation to Section 54F(3) of Act. ...

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Limitation period U/s. 275(1)(c) not applies to penalty proceeding U/s. 271D & 271E

CIT Vs Hissaria Brothers (Supreme Court of India)

Penalty proceedings for default in not having transactions through the bank as required under Sections 269SS and 269T are not related to the assessment proceeding but are independent of it....

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Section 206AA not overrides other provisions of Income Tax Act, 1961

Nagarjuna Fertilizers and Chemicals Limited Vs ACIT (ITAT Hyderabad)

Assessee cannot be held liable to deduct tax at higher of the rates prescribed in section 206AA in case of payments made to non-resident persons having taxable income in India in spite of their failure to furnish the Permanent Account Numbers....

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Sec. 14A No attribution of expense for exempted income earned without employee interference

Pradeep Khanna Vs ACIT (Delhi High Court)

If tax exempted income was earned without interference of any employee but rather through solicitation and advertisement of bank the question of attributing any expenditure cannot arise at all....

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Section 256(1): HC returns reference unserved for 16 years unanswered

Naath Industries Pvt. Ltd Vs CIT (Bombay High Court)

This Reference under Section 256(1)of the Income Tax Act, 1961 by the Income Tax Appellate Tribunal (Tribunal) seeks our opinion on two substantial questions of law as framed by it. However, Mr. Rattesar, the learned counsel appearing for the applicant assessee very fairly states that he is not in a possession of evidence to show that the...

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Understanding Secondary Transfer Pricing Adjustments

Formal Transfer pricing regulation has been present in India for more than twelve years. Section 92 of income tax act, 1961 warrants that international transactions between the associated enterprises shall be computed having regard to the Arm’s Length Price (ALP). ...

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Posted Under: Income Tax |

Lukewarm response to proposal to keep shops open all 7 days

Expressing concern over a lukewarm response on allowing small and medium scale shop-keepers to remain open for all seven days, the ASSOCHAM has impressed upon the Centre to ask the states to realise benefits of model Shops and Establishments Bill and adopt the same , for promoting retail trade which is the largest sector employer in the...

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Posted Under: Income Tax |

Impact of GST and Demonetisation on Indian Economy

GST and Demonetization are two bold decisions taken by the Indian government to tackle the issues which are existing and to resolve the emerging issues which arises day by day in the Indian economy. GST and Demonetization are likely to be described as game changers of the Indian Economy....

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Posted Under: Income Tax | ,

Section 50C not applicable to transfer of leasehold land & building

CIT Vs Greenfield Hotels & Estates Pvt. Ltd (Bombay High Court)

Section 50C of Income Tax Act, 1961 is not applicable while computing capital gains on transfer of leasehold rights in land and buildings....

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Taxability of business done by NRI through Power of Attorney holder

Carpi Tech SA Vs ADIT (ITAT Chennai)

Assessee submitted that project receipt from Tanakpur Power Project of NHPC work is exempt from tax in India for the reason that assessee does not have continuous presence or 'business connection' or a permanent establishment in India....

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Foreign exchange fluctuation loss due to compliance with AS-11 is not a notional loss

Silicon Graphics Systems (India) Pvt. Ltd Vs DCIT (ITAT Delhi)

Foreign exchange fluctuation loss cannot be called notional loss since the fall in the exchange rate has already taken place in the accounting year. Accounting Standards-11 provides that the entire amount of liabilities outstanding as at the balance sheet date should be restated and the loss should be charged to the Profit and Loss accou...

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CA in practice cannot run Business via Companies, Trusts & Firms

Council of Instt. of Chartered Accountants of India Vs Subodh Gupta & anr. (Delhi High Court)

The Institute of Chartered Accountants has made the instant Reference under Section 21(5) of the Chartered Accountants Act, 1949 in respect of the respondent being indicted for a misconduct other than such misconduct which is referred to in sub-Section (4) of Section 21....

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Aadhaar mandatory for STEP Scheme for women

Notification No. S.O. 625(E) (25/02/2017)

Aadhaar mandatory for Support to Training and Employment Programme (STEP) Scheme for women.In order to provide convenient and hassle free benefits to the beneficiaries under the Scheme, the Implementing Agencies receiving grants from the Ministry under the Scheme shall make all required arrangements on behalf of the Ministry ...

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Yoga a form of ‘medical relief and Propagation of Yoga constitutes imparting of education

Patanjali Yogpeeth (Nyas) Vs ADIT (ITAT Delhi)

In a big relied to Baba Ramdev’s Patanjali Yogpeeth, the Delhi bench of Income Tax Appellate Tribunal (ITAT) has allowed exemption status under section 11 and 12 of the Income Tax Act....

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Section 68: ITAT gives relief to Reliance Group, Deletes addition of Rs. 700 crore

DCIT Vs. M/s Reliance Utilities P Ltd. & M/s Reliance Ports and Terminals Ltd. (ITAT Mumbai)

Whole issue in the present appeal by Revenue, is about the source, nature and genuineness of the transaction to determine whether the addition made by the AO under section 68 of the Act is sustainable. ...

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Proposed Important Amendments for Charitable Trust by Finance Bill 2017

While presenting budget 2017, there were several amendments proposed by Finance Minister Mr. Arun Jaitley with respect to Taxation of Charitable Trust...

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Posted Under: Income Tax | ,

Related Party transactions under Companies Act, 2013 & SEBI LODR, 2015

Article Discusses Related Party Transactions under Companies Act, 2013 and SEBI LODR Regulations, 2015. It Explains who is Related Party, What is a related party transaction, Related Party Transaction requiring Audit Committee Approval, Related Party Transaction requiring Board/Shareholders’ Approval and Related Party Transactions whic...

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Posted Under: Income Tax | ,

What will happen after submission of response to notices on cash deposits during demonetization

The IT Department issued online intimations for verification of cash deposits during demonetization to nearly 18 lakh taxpayers of which about 9 lakh submitted response for verification of cash deposits during demonetization. ...

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Posted Under: Income Tax | ,

Udyog Aadhaar: Govt’s treat for small & medium businesses

MSMEs, you are the power house of the India’s economy. Feel proud of it. The government recognizes your importance and hence, promotes you, provides you enormous benefits. Udyog Aadhaar is a valuable present that the government has provided for small and medium businesses....

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Posted Under: Income Tax |

Name Change? How It Impacts Taxes in USA

A name change can have an impact on taxes. All the names on a taxpayer’s tax return must match Social Security Administration records. A name mismatch can delay a tax refund. Here’s what taxpayers should know if they changed their name:...

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Posted Under: Income Tax |

IRS Reminds International Taxpayers of Tax Obligations; Clarifies Rules for Tax Withholding Agents

The Internal Revenue Service today reminded non-U.S. citizens who may have taxable income, such as international students and scholars who may be working or receiving scholarship funds, that they may have special requirements to file a U.S. tax return....

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Posted Under: Income Tax |

CBEC launches GST mobile app & invites suggestions on AIR Duty Drawback rates under GST

CBEC has invited suggestions from Export Promotion Councils/ Commodity Boards/ Trade and Industry Associations/ Chambers of Commerce on All Industry Rates of Duty Drawback under the GST framework....

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Posted Under: Income Tax |

Applicability of ICDS for May 2017 CA exams

The Central Government had, vide Notification No.S.O.892(E) dated 31.3.2015, in exercise of the powers conferred by section 145(2), notified ten income computation and disclosure standards (ICDSs) to be followed by all assessees, following the mercantile system of accounting, for the purposes of computation of income chargeable to income-...

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Posted Under: Income Tax |

CS Dec 2016 Exam results to be declared on 25th February 2017

The result of Company Secretaries Examinations for Professional Programme and Executive Programme held in December,2016 is scheduled to be declared at 11.00 A.M. and 2.00 P.M . respectively on Saturday, the 25th February,2017 through the website of the Institute: www.icsi.edu...

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Posted Under: Income Tax |

ICAI Shocker: CPE hour increased to 120 Hours

A. All the members (aged less than 60 years) who are holding Certificate of Practice (except all those members who are residing abroad) are required to: a. Complete at least 120 CPE credit hours in a rolling period of three-years....

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Posted Under: Income Tax |

Exemption U/s. 11 and 12 cannot be denied just because of profits from imparting of education

Society for Participatory Research in Asia Vs ITO(E) (ITAT Delhi)

Invocation of proviso to section 2(15) of the Act to deny claim of exemption under section 11 and 12 of the Act is not justified. Accordingly, grounds of appeal are allowed...

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Amount Paid to ex-Staffs to avoid Litigation is not Profit in Lieu of Salary

Kuwait Airways Corporation Vs ITO (ITAT Mumbai)

Challenging the order,dated 02/01/2013,of the CIT(A)-20,Mumbai the Assessing Officer (AO)has filed the present appeal.The assessee has filed cross objections. Assessee-company is an international airline engaged in the business of passenger and cargo transportation....

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Sec. 153C: Documents found during Search must belong to Assessee

CIT Vs M/s Arpit Land Pvt. Ltd. (Bombay High Court)

Requirement of Section 153C of the Act cannot be ignored at the alter of suspicion. The Revenue has to strictly comply with Section 153C of the Act. We are of the view that non satisfaction of the condition precedent viz. the seized document must belong to the respondent – assessee is a jurisdictional issue and non satisfaction thereof ...

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Profit exempt in Partnership cannot be taxed in Partners Account

DCIT Vs M/s. Bakeri Construction Pvt Ltd (ITAT Ahmedabad)

CBDT itself has accepted the proposition that the share income from the firm received by the partners is exempt u/s 10(2A) of the Act and under no circumstances can be taxed in the hands of the partners. ...

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