The CVD exemption earlier available to the Gold coins having gold content not below 99.5% and gold findings vide Sl. No. 323 of Notification No. 12/2012-Cus. Dated 07.03.2012 has now been withdrawn.

Two new Sl. No. 256A and 256B has now been inserted in Notification No. 12/2012-C.E. dated 17.03.2012 providing unconditional exemption to the Point of Sale (POS) Devices till 31.03.2017. Sl. No. 256B further exempts goods required for the manufacture of the Point of Sale (POS) Devices provided Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed.

Government of India vide notification no. 46/ 2016-ST, 47/2016-ST, 48/2016-ST and 49/2016ST all dated 9th November, 2016 notifies that Service tax would be chargeable on Online Information and Database Access or Retrieval [OIDAR] services provided by any person located in non-taxable territory and received by Government, local authority, governmental authority, or an individual in relation to any purpose other than commerce, industry or any other business or profession with effect from 1st December 2016. Service tax shall be payable in reverse charge by the service receiver in the taxable territory.

CESTAT, New Delhi bench held that for deciding eligibility to SSI-exemption Notification, turnover is to be computed as follows : (a) value of nonexcisable and exempted excisable goods is to be excluded; (b) value is to be computed at transaction value, as per Central Excise Act and valuation rules; and (c) value of goods liable to duty based on retail sale price, is to be computed after giving benefit of abatement from retail sale price.

CESTAT, New Delhi bench held that Service Tax paid on Terminal Handling Charges, bills of lading charges, origin haulage charges, repo charges, etc. and Custom House Agent's services used for export goods is eligible for refund in hands of exporter.

The High Court of Kerala held that levy of service tax on Air Conditioned Restaurants is unconstitutional since when food is supplied as part of any service, such transfer would be deemed as sale. Thus, there is no component of service which could be charged to service tax when food is supplied by Air Conditioned Restaurant.

Based on representations received from stakeholders and to further ease the PAN verification process at the time of account opening of FPIs, it is decided that the intermediaries can verify the PAN of FPIs online from website authorized by Income Tax department at the time of account-opening for FPIs. However, FPIs need to provide the copy of PAN card within 60 days of account-opening or before remitting funds out of India, whichever is earlier to their intermediaries.

Markets regulator Sebi re- constituted its committee that suggests roadmap for developing corporate bond market in the country. The 28-member committee would be chaired by Shyamala Gopinath, former Deputy Governor at the Reserve Bank

Sebi has notified norms to increase the value of such allotments to Rs5 lakh, up from Rs2 lakh currently, under staff quota. 

The ITAT Bangalore Bench held that where assessee entered into a contract with a party to supply labourers for construction of flats, mere fact that assessee procurred materials also through said contractor without any profit markup involved therein for contractor, it could not be regarded as a case of composite work contract and, thus, assessee was not required to deduct tax at source while making reimbursement of cost of materials supplied.

CBDT has accepted the settled position of the various cases settled by Gujarat High Court, Bombay High Court, and Allahabad high Court and has decided that the disallowances made under sections 32, 40(a)(ia), 40A(3), 43B, etc. of the Income Tax Act, 1961 and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance.

Accordingly, it has decided that the appeals will not be filed on this ground by officers of the Department and appeals already filed in Courts/ Tribunals deemed to be withdrawn/ not pressed upon.

India and Switzerland for the implementation of Automatic Exchange of Information (AEOI) between the two countries has signed the ‘Joint Declaration’. As a result, it will now be possible for India to receive from September, 2019 onwards, the financial information of accounts held by Indian residents in Switzerland for 2018 and subsequent years, on an automatic basis.

The High Court of Bombay held that Professional fees paid by assessee to its collaborator for implementation of SAP software programme for enhancing efficiency of its organisation is revenue expenditure.

Commissioner of Income-tax v. KSB Pumps Ltd. [2016] 75 taxmann.com 184

The ITAT Ahmedabad Bench held that on new induction of motor car, depreciation at higher rate would be admissible to assessee engaged in business of giving vehicles on hire; such vehicles needed not be used for public transportation for people.

CBDT has inserted new Rule 12E after Rule 12D of Income Tax rules, 1962 to notify the “Prescribed Authority” for serving the notice for the purpose of section 143(2). Under this Section assessee is issued a notice to attend the office of the Officer to produce any evidence on which the officer may rely in support of the return.

Under the new inserted rule CBDT has notified that the income-tax authority not below the rank of an Income-tax officer who has been authorized by the CBDT to to act as income tax authority for section 143(2).

CBDT has restricted the allow ability to forty percent (40%) in respect of depreciation of any block of assets entitled to more than forty per cent under section 32(1)(ii) of the Income-tax Act, 1961 with effect from the 1st day of April, 2017.

This restriction is only for a domestic company which has exercised option under section 115BA(4) of the Income-tax Act, 1961 who has opted for paying 25% Income tax instead of 30% from financial year starting from 1st April, 2017

CBDT has amended Rule 10V of the Income Tax Rules which provide guidelines for application

of Section 9A of Income Tax Act. Section 9A was inserted from 1st April, 2016 which defines certain activities not to constitute business connection in India for the purpose of Income Tax Act.

Effects of the amendment under Rule 10V are as follows:

Notification No. 106/2016, Dated 21st November, 2016

CBDT has inserted Rule 12CC after Rule 12CB in the Income-tax Rules, 1962, to notify the statement to be furnished by securitisation trust to Income Tax department and to Investor in accordance with Section 115TCA of Income Tax Act, 1961.

CA Certified copy of “Form No. 64E” is to be furnished by securitisation trust to the Principal Commissioner or the Commissioner of Incometax as the statement of income distributed in accordance with prescribed manners and time limits.

Verified Copy of Form No. 64F is also required to be issued to the investors in the prescribed manner and time. Further format of Forms are also notified in the same notification.

A substantial amount of investments into the real estate sector in India had come through the Cyprus route. After the government in November 2013 notified Cyprus as a non-cooperative jurisdiction over tax matters, concerns had risen over the applicability of exemption from capital gains tax for existing deals. The amended tax treaty provides India the right to tax capital gains on the sale of shares by a Cyprus company. However, what comes as a major relief is that investments made prior to April 1, 2017, will not be liable to capital gains tax in India.

The Finance Ministry drew attention of instruction No.1916 which provides that during the search operations, no seizure of gold jewellery and ornaments to the extent of 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male member of the family shall be made. Further, legitimate holding of jewellery up to any extent is fully protected, the release added.

Central Government has amended the Schedule II in the companies Act, 2013, under Part ‘A’, in para 3, to substitute sub paragraph (iii), which deals with provisions of the Accounting Standards applicable to the Intangible assets with- “(iii) For intangible assets, the relevant Indian Accounting Standards (Ind AS) shall apply. Where a company is not required to comply with the Indian Accounting Standards (Ind AS), it shall comply with relevant Accounting Standards under Companies (Accounting Standards) Rules, 2006.” This notification shall be applicable for accounting period commencing on or after 01st April, 2016.

The Insurance Regulatory and Development Authority of India (Irdai) has allowed insurers to be part of the Joint Lenders' Forum (JLF), formed under Reserve Bank of India (RBI) guidelines for loan accounts that could turn nonperforming assets (NPAs). 

The Reserve Bank of India (RBI) allowed banks, non-banking financial companies (NBFCs) and district central co-operative banks to retain the 'standard' asset classification on loans of up to R1 crore for another 60 days from the date it would have turned non-performing. This relaxation will be applicable to home loans, farm loans and working capital loans, among others. 

In a bid to effectively address currency risk at the systemic level, the Reserve Bank of India on Monday said borrowers tapping External Commercial Borrowings (ECBs) will be required to cover the principal as well as the coupon through financial hedges. AD Category-I banks will have the responsibility of verifying that 100 per cent hedging requirement is complied with

The Prime Ministers strongest action against corruption and black money by de recognising High Denomination Notes is a historical step. The de monetisation of Rs. 1000 and Rs. 500 Rupee notes on 8th November has brought India on the centre stage of discussion and acclamation worldwide. The Indian economy has seen major impact of this decision and rampant money laundering exercise has been observed by the entire system:

• Gold and Diamond brisk sale in first 7 days at hefty premium 
• Heavy import of Gold officially as well as through other channels 
• Transactions in Real Estate at official price in large numbers at hefty premium
• Currency Mafia became active exchanging old HDN notes with new currency 
• A large number of bankers and unprofessional middleman contributed to the Chaos of common man by contributing to the currency Mafia 

The deposit of old currency in bank accounts also picked up substantially and it looks likely that the entire money in circulation will get deposited by 30th December 2016, barring a small percentage to walk in through RBI exchange route in Jan- March 2017. The message from the government is loud and clear that " Na Khaunga Na Khanne Doonga". The real war against the menace of black money got strengthened by the nation wide support to the great initiative. The issue being debated is as to what will be the implication of this move. The following clear indications are coming:

• A higher tax collection voluntarily from a larger number of new and existing assessees 
• A reasonably large voluntary disclosure in new scheme of 50% tax and 25% deposit
• A large additional bank deposit base leaving about 400,000 Crores to 600,000 crores 
• The M 3 ( Money Velocity ) of 6 to 10 times to create substantial additional resources for the system An expected reduction of interest rates by 300 basis points ( 3%) lowering EMI and interest burden Big push to Housing, Automobiles, Steel, Cement and infrastructure sector 
• Revival of Non- performing assets ( Bank Loans) with a lower interest burden will ensure sustainability for larger number of borrowers improving potential for debt restructuring, one time settlement and waiver of accumulated high interest burden 
• GDP growth to marginally slow down in 5 months ending 31st March 2016, followed by a GDP growth rate crossing 10% in 2017-18 
• Less cash economy initiative will require lesser currency issuance by Government 
• Significant reduction in public debt and interest rates (Yield to maturity) will reduce burden on the Government and will reduce deficit financing substantially 
• Significant reduction in Bank Deposit rates , except for senior citizens and special classes 
• A major reduction in Income Tax rates and upward revision of exemption and taxation slabs
• The Government can even consider a lower GST middle rate at 4% lower in the announced rate of 12% and 18%. The Excise duty rates and Service tax rates can be immediately cut  pending the GST implementation, which is likely to take some more time in consensus building
• Mandatory electronic interface between tax assessee and tax officials has already been announced. In case it is implemented in direct and indirect taxes this year, a major blow to hit corruption can be achieved.                                                                                                                                                                                                                                                                 The persuasive approach of Prime Minister has distinguished clearly between the honest and dishonest tax payers. The incentive to hoard cash will also wane away in the course of time. The properties will become affordable even by the honest. Several other sin in the society will get a big hit for example dowry, lavish expenditure on marriages, unnecessary spent and accumulation of jewellery and so on. Even the terrorism and other crimes will reduce with more and more cash less economy.

Can we achieve upliftment of common man, make in India and evolution of India as number one economy will depend on how fast we move along with Prime Minister and take his initiative forward. The complete eradication of black money will depend on determination of the society leaving a better honest economic system to the next generation.