- Cretificate for lower TDS 'Person specific and not income specific
- Cretificate for lower TDS ‘Person specific’ and not ‘Income specific’
- Shri G.D Aggarwal appointed as President of ITAT
- Interest earned by Mauritius Bamk from Indian securities is exempt in India
- No section for 54F relief if newly aquired house is instantly demolished
- RBI allows NRIs to invest in exchange-traded currency derivatives
- Furnishiung of Aadhar is mandatory for final settlement of Pension calimes
Wednesday, March 15, 2017
Interest on refund is available from date of reassessment when there is suppression of facts by assessee
- Migrations to GST-Approach and guidelines for migration
- Draft Law-Model GST law, IGST law and GST compensation law
- Draft Rules-Rules related to registeration, returns, payment, refund and invoice
- Frequently Asked Questions (FAQs) on GST
- Various resources on GST such as videos, articles etc.
- Related website links
Deputy Commissioner of Central Excise, Siliguri v. Kishan Biri Mfg. Co.*  78 taxmann.com 167 (Calcutta)
Idea Cellular Ltd. v. Assistant Commissioner of Commercial Tax, LTU, Indore*  78 taxmann.com 106 (Madhya Pradesh)
Gimmco Ltd. v. Commissioner of Central Excise & Service Tax, Nagpur*  78 taxmann.com 30 (Mumbai - CESTAT)
- Any process amounting to manufacture or production of goods excluding alcoholic liquor for human consumption; or
- Any intermediate production process as job work not amounting to manufacture or production in relation to specified cases
- Process amounting to manufacture or production of goods" means a process on which duties of excise are leviable.
Decision of board to increase share capital nullified as it was taken in absence of petitioner director: NCLT
M. Sridhar Reddy v. Rohini Auto Electricals (P.) Ltd.  78 taxmann.com 27 (NCLT - Hyd.)
- Industrial Disputes Act, 1947 Relaxes hire-andfire policy
- Factories Act,1948 increases threshold limit for firms, from 20 workers to 40
- Contract Labour (Regulation & Abolition) Act, 1970 industries will be able to hire more temporary
- Contract Labour (Regulation & Abolition) Act,
- 1970 increases threshold limit of applicable factories, from 20 workers to 50
- Factories Act,1948 reduces units under the law
- Madhya Pradesh Labour Laws (Amendment) Act, 2015 allows easier retrenchment policy and
- night shifts for women
- Labour Laws ( Gujarat Amendment) Bill, 2015 introduces compromise as a dispute mechanism.
- Allows prohibition of strike in public utility services
Sebi has already written to the Reserve Bank of India and ministry of agriculture for their comments.
Besides this, the government has also launched the Cyber Swachhta Kendra - Botnet Cleaning and Malware Analysis Centre for analysis of malware and botnets that affect networks and systems - which is operated by CERT-In. Whenever an infection is detected, the central government will send alerts on the infected IP addresses to the Internet Service Providers, who in turn will inform the end-user about the malware and botnet infections on their system.
Council of The Institute of Chartered Accountants of India v. CA G.S. Johar  78 taxmann.com 286 (Delhi)
The In the ITAT Kolkata Bench 'C' income earned by assessee a company incorporated in Netherlands from on-shore supply of software and licenses for mere purpose of operating equipment is for 'copyright' in such software because software in question is embedded in equipment supplied under project and cannot be regarded as giving any independent right to use software. Accordingly, such consideration is for purchase of a 'copyrighted article' and hence not taxable as 'royalty'
HITT Holland Institute of Traffic Technology B.V. v. Deputy Director of Income-tax  78 taxmann.com 101 (Kolkata - Trib.)
T.S. Sujatha v. Tax Recovery Officer*  78 taxmann.com 93 (Kerala)
Commissioner of Income-tax, Bikaner v. Krishi Upaj Mandi Samiti (Grain)*  78 taxmann.com 164 (SC)
years and such violators would also stand to be charged under the normal I-T Act. Benami Property Transactions Act, 1988, has came into effect from November 1, 2016. Show cause notices for attachment have been issued in 140 cases where benami assets worth Rs 200 crore are involved. The attached assets, include deposits in bank accounts, agricultural and other land, flats and jewellery shares issued to entry operators, among others.
Payment made for connectivity facility for sending bulk SMS couldnot be held as royalty: Mumbai ITAT
Jamnalal Sons Ltd. v. Commissioner of Income-tax, Nagpur*  77 taxmann.com 350 (Bombay)
Payment made to purchase equipment for research is not royalty when no research is carried out: ITAT
Aatash Power (P.) Ltd. v. Income Tax Officer, International Taxation-II, Ahmedabad*  78 taxmann.com 202 (Ahmedabad - Trib.)
Payment for testing, trail operation and commissioning work would attract sec. 194C TDS and not sec. 194J TDS
As it promotes paperless e-mail based assessment to limit personal interface between the taxpayer and taxmen, the Revenue Department has asked officers to file a report on the e-assessments they took up and disposed off in the year. In the self appraisal form, they have also been asked to file reasons for "low performance", according to a CBDT order.` The Central Board of Direct Taxes (CBDT) has started paperless assessment proceedings in 7 metro cities of Delhi, Mumbai, Ahmedabad, Bengaluru, Chennai, Hyderabad and Kolkata.
- The following clarifications have been issued by CBDT:
- No junior officer has power to conduct a search on his own
- Proper procedure including permission from principal director general has been laid out for search
- There will be no arbitrary searches, no additional powers given for searches or seizure
- Satisfaction note prepared for the search is shown in the court and it is provided to the court whenever it seeks it in a sealed cover
- The note provides the justification for the search, including evidence to support the conclusions
- After trying to tighten the rules against shell companies through its Budget proposals, the
- government has decided to follow with "harsh punitive" action that will include freezing of bank
- accounts and striking off the names of dormant companies
- Shell companies' investments in real estate could also come under the scanner
- The government has also decided to invoke the Benami Transactions (Prohibition) Amendment Act
- A task force has been set up to monitor actions against deviant shell companies by various enforcement agencies. The basic approach is to prevent money laundering and tax evasion. The government will use technology to identify shell companies, a database on these companies and their directors would be built by pulling information from various agencies
medium enterprises (MSMEs), evaluate their credit decisions better, credit information company TransUnion CIBIL has introduced a credit risk rank for these firms. Called the CIBIL MSME rank (CMR), algorithms based on the credit history, data are used to forecast the chances of an MSME loan going bad in the next 12 months.
(CA) firms have been witnessing growth of professional accounting in India and have qualitatively handled large number of audits, tax matters and consulting assignments based on their knowledge and expertise in infrastructure and professional competence.
Indian CA firms managed in terms of Indian culture and Ethos are highly ethical and ensure that financial statements once certified or audited by them are free from fraud and error
The Indian CA firms have wide geographical presence in India and overseas and are competing with international CA firms not only for large assignments but also for mid size clients. Indian chartered accounting firms have been following highest level of standards and professional competence and have made significant efforts to improve Brand India.
All major borrowers of corporate sector and banks in India, where frauds were discovered were not subject to audit by an Indian CA firm
The Indian CA firms are also being supported by a large number of corporate professionals, government officials, bankers and highly placed persons due to the effective and efficient professional services being provided by these Indian CA firms. Even a large number of international
collaborators, venture capitalists, foreign investors mandate appointment of Indian firms as auditors and for several other important assignments.
Indian CA firms guarantee and ensure that money and resources are neither wasted nor diverted or siphoned off
The Indian CA firms have been vigorously working to gain strength to meet challenges and reap new
opportunities. A large number of Indian CA firms have also established themselves at several Indian and International locations and are expanding geographically in size and in view of their commitment towards growth and prosperity of their clients. These firms have also added to their strength, number of their professional partners and other experts.
Once an Indian CA reviews financial statements or accounts, all material or potential frauds and errors are brought to light
The advent of liberalisation and now a concrete visionary action of the new government to bring in
transparency and to eradicate corruption and black money have brought the role of Indian CA firms to centre stage.
The Prime Minister Narendra Modi have called upon the nation to take a pledge to achieve major milestone and targets so as to make significant growth in next 5 years and take India to new heights by 2022, when India will be completing 75 years of independence. There are large number of new opportunities and challenges for Indian Chartered Accountants to shape India's future in the right direction including:To increase tax compliance and educate more and more Indians to be fully compliant with the tax laws.
- To implement biggest tax reforms "Goods and Service tax" in a fair and effective manner by their clients, businesses and all the stakeholders.
- Demonetisation has also brought several enquires, investigations, surveys, searches and raids. It is important to grant real justice in all these cases. Professionalism of highest order of Indian CA firm will be of biggest help and support to distinguish genuine cases.
- Benami Property prohibition law is being administered by the tax department which will severely impact spurious transactions. Already hundred of show cause notices and confiscation of properties have been initiated.
- Capital market is getting activated and is on unprecedented growth path. Merchant banking, brokerages, mutual funds, private equity funds, infrastructure fund & all latest financial products, financial structuring, corporate structuring will need CA's for their active professional hand holding support.
- Banking sector suffering from large scale nonperforming assets have brought a new challenge to manage the corporate and businesses effectively and efficiently and to bring in financial modes of sustained growth. The financial management, control, discipline and devoted austelity measures by cutting cost and improving performance are real challenging targets to be met by Indian CAs.
Indian CAs have commited to eradicate corruption and unethical practices from the financial system. A Special Action Task Force(SATF) has been constituted to run operation "Black Belt"
The Chartered Accountants also have to work as intellectuals policy makers to evolve new strategies, to maximize with compliance and to keep the requirements of filing and other procedures to the minimum.
Wednesday, February 15, 2017
- AO couldn't make re-assessment for unexplained investment merely on basis of roving enquiry
- Payment made for supply of Software embedded in mobile phones couldn't be taxed as royalty
- Assessee has option to choose initial assessment year for Sec 80IA relief
- Fraud related issues couldn't be decided by NCLT in a petition filed for rectification of register
- Stakeholders have to compulsory file Form 3 within 30 days of incorporation for initial agreement and changes with regard to LLP , before filing of Form 8 and Form 11
Currently, FPIs can trade in Indian markets only through brokers who are registered with stock exchanges as their members.
- A merged entity should have at least 25% public shareholding
- Must be listed on NSE,BSE, or an exchange with nationwide terminals
- SEBI pricing formula will apply
- Compulsory e-voting if a substantial part of listed firms gets transferred into unlisted
- Compulsory e-voting if shares of unlisted firms are being acquired by promoters
Jatinder Kumar Sachdeva v. Union of India*  77 taxmann.com 50