Direct and Indirect tax updates for 1st March to 15th March 2017

Income Tax

Notification No. 02/2017 dated 9^thMarch 2017- Procedure for PAN Application

Application for allotment of Permanent Account Number(PAN) will be filed in SPICe (INC-32) form using Digital Signature of the applicant as specified by the Ministry of Corporate Affairs. After generation of Corporate Identity Number (CIN). MCA will forward data in form 49A to prescribed Income Tax Authority through digital signature. Class 2/Class 3, of MCA. The SPICe (INC-32) shall apply for newly incorporated Company.

Circular No. 09/2017 dated 14^thMarch 2017- Clarification on Taxation and investment regime for Pradhan Mantri Garib Kalyan Yojana

The Taxation and Investment Regime for PMGKY is open for declarations upto 31-3-2017. CBDT has clarified that where the undisclosed income is represented in the form of deposits in an account maintained with a specified entity, it is not necessary that the said deposits should exist on the date of making payments under the Scheme or furnishing a declaration under the Scheme. However, where the undisclosed income is represented in the form of cash, it is clarified that such cash should exist on the date of making payment of tax, surcharge and penalty under the Scheme or on the date of making deposit under the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, whichever is earlier.

Press release dated 9^thMarch 2017- Revised DTAA between India and Belgium

India and Belgium have signed a Protocol amending the existing Agreement. The revised Protocol will broaden the scope of the existing framework of exchange of tax related information which will help curb tax evasion and tax avoidance between the two countries and will also enable mutual assistance in collection of taxes.

Press release dated  7^thMarch 2017- CBDT Signs Another APA

The CBDT has entered into a bilateral Advance Pricing Agreement (APA) with rollback provision with a Japanese subsidiary on 6th March, 2017. The total number of bilateral APAs signed with Japanese subsidiaries has thus reached five, all with rollback provisions. Four APAs out of these five have been signed in the current financial year.

The total number of APAs entered into by the CBDT has reached 141 with this signing. The CBDT expects more APAs to be concluded and signed before the end of the current fiscal.

Press release dated  7^thMarch 2017- Clarification by Pension Fund Regulatory

This press release specifies the clarification by pension fund regularity and development authority on transfer of amount from recognized provident fund and superannuation fund to notational pension scheme.

Instruction No. 04/2017 dated 4^thMarch – Power to call information u/s 133

This instruction specifies that income tax authorities will have the power to issue notice under section 133(6) for verification of cash deposit under the operation clean money.

Notice under section 133(6) of the Act is required to be issued, after obtaining prior approval of Pr. CIT/CIT/Pr. DIT/DIT as provided in the Act

Service Tax

Notification No. 10/2017 dated 8^th March 2017- Service tax Exemption

This Notification provides clarification that exemption available in entry no. 9(b) of notification No.25/2012-Service Tax, dated 20^th June 2012 shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent.

Custom Duty

Notification No. 07/2017 dated 1^stMarch 2017– Exemption to exporters

The purpose of this notification is to clarify exemption contained in notification no. 9/2012 dated 9th March, 2012, shall also be applicable if the exportation and re-importation of cut and polished diamonds are undertaken by the authorized offices or agencies in India of the laboratories mentioned under paragraph 4.74 of Handbook of Procedures 2015-2020 on behalf of the exporters subject to the fulfillment of conditions specified in the Foreign Trade Policy and Handbook of Procedures.

Notification No. 16/2017 dated 3^rdMarch – Courier Imports and Exports  Amendment Regulations, 2017

This notification provides the Courier imports and Exports Amendment regulation, 2017 which states that for the goods specified in Appendix 3C of the Foreign Trade Policy (2015-20) and for other commercial goods, not covered under clause (e) of sub-regulation (2) of regulation 2, where value of the consignment is up to rupees twenty-five thousand and transaction in foreign exchange is involved, such entry shall be made in Form Courier Shipping Bill CSB-V.

Notification No. 21/2017 dated 15^thMarch – Tariff Value

The purpose of this notification is to fix the tariff value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver.

Central Excise

Circular No. 1053/02/2017-CX dated 10^thMarch 2017– Master Circular on Show Cause Notice, Adjudication and Recovery

This circular invites attention to Ninety two Circulars and Instructions on Show Cause Notices and Adjudication issued by the Board from time to time, placed at the Annexures to this Master Circular.

Circular No. 1054/02/2017-CX dated 15^thMarch 2017– Classification of ‘Saree’

This circular provides the clarification on classification of ‘Saree’ under CETA, 1985

DVAT (Delhi VAT)

Circular No- 26/2016-17 dated 8^th March 2017–Extension of period of filing  DVAT Return

Due date for filing online/ hard copy return of third quarter of 2016-17, in form DVAT – 16, DVAT – 17 and DVAT – 48 has been extended to 17^th March 2017.

Circular No- 24/2016-17 dated 8^thMarch 2017- De sealing of Business Premises

This circular provides the procedure to be adopted for de–sealing of the business premises, which are sealed in the event of enforcement survey etc. by the officers of the department of Trade & taxes.

RAJ-Tax (Rajasthan VAT)

Notification No- 2492 dated 15^thMarch 2017-Extension of period of filing  Annual VAT Return for FY 2015-16

Due date for filing annual return in Form VAT-10A for the FY 2015-16 has been extended to 31^st March 2017.

http://rajtax.gov.in/vatweb//download/cir_noti/NOCC/date.pdf

Circular No- 2385 dated 9^th March 2017-Details to be furnished for yarn brought into the State exclusively  for job work

With this circular, Commissioner, Commercial Taxes, Rajasthan hereby prescribes that the dealer or a person importing any kind of yarn into any local area of state from outside of state, exclusively for the purpose of job work, shall furnish the information in Form ET-JW1 and ET JW2, along with copies of the agreement or job work orders and central excise document as prescribed under rule 16A of the Central Excise Rule 2002.

HAR-Tax (Haryana VAT)

Notification No- 06 dated 10^th March 2017-Exemption from levy of VAT

This notification provides exemption from levy of VAT on Bio-Diesel in the state.