IMPORTANT UPDATES FOR CHARTERED ACCOUNTANTS - 24 Aug 2015

➡ IMPORTANTS NEWS

1. Govt. enables online filing of form FC-TRS for transfer of shares between NRs and Residents via e-Biz portal

➡ INCOME TAX

1. Even if advance forfeited by supplier wasn't allowable as bad-debt, yet it could be considered as business loss. 60 taxmann.com 82 (Guwahati - Trib.)

2. 60 taxmann.com 206 (Bombay)Where assessee- joint venture company did not execute contract work on its own and same was done by one of its constituents, as there was no finding of receipt of any income by assessee on account of said contract, same would not be taxable in its hands.

➡ BANKING AND CORPORATES LAWS
1. SEBI proposes to allow Infra Investment Trusts to invest in two level SPVs and to reduce sponsor's commitment.

➡ CST AND VAT LAWS
1. August 22, 2015[2015] 60 taxmann.com 191 (Karnataka) CST & VAT: Karnataka VAT - Only condition for making further reassessment under section 39(2) in addition to earlier reassessment is when authority takes notice of further evidence

2. The purchaser need not to reversed input tax credit unless seller has claimed refund in case of incentive given or credit note issued ruled by Delhi high Court.

➡ SERVICE TAX AND EXCISE LAWS.

1. Service Tax could not be levied to indivisible works contract prior to 1-6-2007.

2. 59 taxmann.com 460 (Bombay) Excise & Customs : Tribunal does not have power to dismiss appeal for default or for want of prosecution, without adjudication on merits; and if appeal has been so dismissed, Tribunal must restore same subject to reasonable conditions.

- CA Kasliwal Ambar

IMPORTANT NEWS & UPDATES FOR CHARTERED ACCOUNTANTS - 20th Aug 2015

➡ IMPORTANTS NEWS

1. Govt. notifies 'Challan No. ITNS 284' for depositing taxes under Black Money Act.

2. RBI grants approvals for 11 payment banks including Reliance, Airtel, Vodafone

➡ INCOME TAX

1. Compounding fee paid to Municipal Corporation is in nature of penalty disallowable.

2. 60 taxmann.com 287 (Chennai - Trib.) ITAT allows sec. 11 tax exemption to Tamil Nadu Cricket Association.

3. High Court has inherent power to review its own judgment, says Supreme Court.

4. 60 taxmann.com 135 (Bombay) No concealment penalty if sum treated as capital receipt was disclosed in notes to accounts and return.

➡ BANKING AND CORPORATES LAWS
1. 60 taxmann.com 285 (SAT - Mumbai) Where in guise of running real estate business, PACL was running sham Collective Investment Schemes (CIS) which were detrimental to interest of investors, decision of SEBI directing PACL to wind up existing CIS and refund money collected from investors with promised return could not faulted.

➡ CST AND VAT LAWS
1. 60 taxmann.com 123 (Gujarat) Gujarat VAT - Where Assessing Authority cancelled registration certificates of assessee on ground that alleged purchases made by it from two dealers were bogus and not genuine and even assessee had indulged into billing activities only, registration certificates had been rightly cancelled.

➡ SERVICE TAX AND EXCISE LAWS.
1. 60 taxmann.com 122 (SC): Wharfage charges and lease rent recovered by port authorities cannot be regarded as 'service' in relation to 'a vessel or goods' and cannot be said to be a service provided by 'port or person authorised by it'; hence, same is not liable to service tax under port services.

2. Excise :No personal penalty on directors where issue relates to interpretation of law and situation is revenue neutral.

- CA Kasliwal Ambar

Daily CA Updates - Wednesday - August 19

IMPORTANTS NEWS 

1. Last date for filing Dvat return for Q1 again extended to August 25,2015

➡INCOME TAX

1. CBDT notifies rules to determine period of stay of crew members of foreign bound ships in India. notification no 70/2015 dt Aug 17
2. 60 taxmann.com 246 (Uttarakhand).The amount of interest received on the refund of Income Tax is not includible in the amount on which the assessee is liable taxed under Section 44BB of the Act. B J SERVICES COMPANY vs ACIT
3. 60 taxmann.com 55 (Bombay) Where motive of assessee is not generation of profit but to provide training to needy women in order to equip or train them and make them self-confident and self-reliant and occasional sales or trust's own fund generation was for furthering objects of trust, proviso to section 2(15) would not apply.

Dit vs women's India trust

➡ BANKING AND CORPORATES LAWS

1. Investment by Category I and II AIFs in shares of start-ups shall be deemed to be investment in unlisted shares.
2. Takeover code not applicable to startups that are listed without making a public issue.
3. Delisting norms not applicable to securities listed by start-ups without making a public issue

➡CST AND VAT LAWS

1. Govt. tweaks Rules relating to reduction of tax credit under Delhi VAT in case sale at discount or incentive through credit note is recd . Notification dt Aug 12 no 650.
2. Officer-in-charge has no power to seize goods-in-transit with valid documents.Reckitt Benckiser india ltd vs state of tripura.

➡ SERVICE TAX AND EXCISE LAWS.

1. Delhi High Court asks dept. to respond to challenge made against amended provisions of Service Tax Audit in section 94(2)(k)and rule 5A(2). Mega cabs p ltd vs union of india.
2. Cement/steel used in construction of storage facility is eligible for Cenvat credit. Grasim Industries Ltd Vs Comm Excise Jaipur

- CA Kasliwal Ambar