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Showing posts from August, 2016

CBEC ON HIRING

CBEC Clarifies the issue of Service Tax Liability on Hiring of Goods without Transfer of 'Right to Use'of Goods
CBEC issues clarification on service tax liability in case of hiring, leasing, licensing of goods without the transfer of right to use them, as provided u/s 66E(f) of Finance Act; States that in such cases, it is essential to determine whether in terms of the contract, there is transfer of right to use goods and the criteria laid down by SC in BSNL should invariably be followed and applied; SC had inter alia laid down that (i) there must be goods available for delivery, (ii) there must be consensus ad idem as to their identity, (iii) transferee should have legal right to use the goods, (iv) such right should be to the exclusion of the transferor i.e. it should not be merely license to use the goods, and (v) during the period of transfer, owner cannot again transfer the same right to others; Further states that cases decided under Sales Tax / VAT legislati…

CBEC ON HIRING

CBEC Clarifies the issue of Service Tax Liability on Hiring of Goods without Transfer of 'Right to Use'of Goods
CBEC issues clarification on service tax liability in case of hiring, leasing, licensing of goods without the transfer of right to use them, as provided u/s 66E(f) of Finance Act; States that in such cases, it is essential to determine whether in terms of the contract, there is transfer of right to use goods and the criteria laid down by SC in BSNL should invariably be followed and applied; SC had inter alia laid down that (i) there must be goods available for delivery, (ii) there must be consensus ad idem as to their identity, (iii) transferee should have legal right to use the goods, (iv) such right should be to the exclusion of the transferor i.e. it should not be merely license to use the goods, and (v) during the period of transfer, owner cannot again transfer the same right to others; Further states that cases decided under Sales Tax / VAT legislati…

DSC on MCA portal because your name in the PAN card is not as per the ICAI

Dear Member,Greetings from ICAIIn case you are unable to register your DSC on MCA portal because your name in the PAN card is not as per the ICAI records, you may send fill up the form in the given link :-  
http://online.icai.org/app_forms/panupdate/index.htmlAnd kindly attach a scanned copy of your PAN card along with copy of any of the documents in which your name is as in your PAN cardPassport
Aadhar Card
Driving License
Bank passbook with a photo affixed and duly signed by the bank
Voters' Identity cardThis will enable us to carry out the necessary alignment to ICAI records to share the same to MCA for their further actions.Secretary
ICAI

IDS-Indexed Stamp Duty Value

CBDT Notification Reg Adoption Of Indexed Stamp Duty Value For Income Declaration SchemeThe CBDT has issued a Notification dated 17th August 2016 by which Rule 3(1)(d) of the Income Declaration Scheme Rules 2016 have been amended to provide that where the acquisition of immovable property by the declarant is evidenced by a deed registered with any authority of a State Government, the fair market value of such property shall, at the option of the declarant, may be taken on the stamp duty value as increased by the same proportion as Cost Inflation Index for the year 2016-17 bears to the Cost Inflation Index for the year in which the property was registered.

IDS Amendment

CBDT Notification on 'Income Declaration Scheme (Second Amendment) Rules, 2016' with Revised 'IDS Form 3'CBDT has notified Income Declaration Scheme, (Second Amendment) Rules, 2016 primarily to revise Form 3 to specify details of payments made under the IDS 2016, as under:S.O. 2705(E).— In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 199 of the Finance Act, 2016 (28 of 2016), the Central Board of Direct Taxes, makes the following rules further to amend the Income Declaration Scheme Rules, 2016 (hereinafter referred to as the principal rules) namely:-1. (1) These rules may be called the Income Declaration Scheme, (Second Amendment) Rules, 2016. (2) These rules shall come into force from the date of their publication in the Official Gazette.2. In the principal rules, in rule 4, in sub-rule (5), after the words "submission of proof of", insert the words "full and
final".3. In the principal rules, in F…

CBEC Clarification on Freight Forwarders

Service tax on freight forwarders for transportation of goods from India: CBEC ClarificationCBEC has clarified that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India, as under:CBEC Circular No. 197/7/2016 -Service Tax dt. 12 Aug. 20161. The Board has received representations regarding service tax on freight forwarders on transportation of goods from India.2. It may be noted that in terms of rule 10 of the Place of Provision of Services Rules 2012, (herein after referred to as 'POPS Rules 2012', for brevity) the place of provision of the service of transportation of goods by air/sea, other than by mail or courier, is the destination of the goods. It follows that the place of provision of the service of transportation of goods by air/sea from a place in India to a place outside India, will be a place outside the taxable territory and hence not l…

ICAI Cannot restrict number of audits

Case Name : Shaji Poulose,Chartered Accountant Vs. ICAI (Kerala High Court)Appeal Number : WP(C).No.25662/2016(G)Date of Judgement/Order : 03/08/2016Hon’ble High Court of Kerala has stayed the disciplinary proceedings initiated by ICAI against CA Shaji Poulose for exceeding the limit on number of tax audits.ICAI Cannot restrict number of audits as it has no power to issue such direction. Only statute can impose restrictions.

Legal Maxim's & Meanings

AA mensa et thoro - From bed and board.
A vinculo matrimonii - From the bond of matrimony.
Ab extra - From outside.
Ab initio - From the beginning.
Absoluta sententia expositore non indiget - An absolute judgment needs no expositor.
Abundans cautela non nocet - Abundant caution does no harm.
Accessorium non ducit sed sequitur suum principale - An accessory does not draw, but follows its principal.
Accessorius sequitur - One who is an accessory to the crime cannot be guilty of a more serious crime than the principal offender.
Acta exteriora iudicant interiora secreta - Outward acts indicate the inward intent.
Actio non accrevit infra sex annos - The action has not accrued within six years.
Actio non datur non damnificato - An action is not given to one who is not injured.
Actio personalis moritur cum persona - A personal action dies with the person.
Actiones legis - Law suits.
Actori incumbit onus probandi - The burden of proof lies on the plaintiff.
Actus nemini facit injuriam - The a…

TG on Cenvat Credit 2016

ICAI's "Technical Guide to CENVAT Credit 2016" with inclusion of changes made by Finance Act, 2016Union Budget 2016-17 has brought n plethora of changes in CENVAT Credit Rules, 2004. These cover expansion of definition of Exempted Services, Doing away with FIFO method for utilization of credit under Rule 14(2), allowing ISDs to distribute credit to outsourced manufacturing units, etc.A major change has taken place in process of reversal of credit wherein entire Rule 6 has been redrafted to make it unambiguous and practical. With these changes it can be gathered that the budget is much in line with the aim and vision of the Government to capitalize on the future with minimal changes in the legislation and maximum emphasis on the implementation.Accordingly, the Indirect Taxes Committee of ICAI has thoroughly revised "Technical Guide to CENVAT Credit 2016" with inclusion of changes made by Finance Act, 2016. This revised Guide is immensel…

Old e-filling pending ITR V

If you have e-filed your Income-tax return for earlier years (2009-2015) but NOT submitted your ITR-V (acknowledgment) then your tax-return will not be valid and the Income-tax Department (ITD) may send you a notice (including penalty) for not-filing your Income-tax return.  If you have e-filed your return in the past years and your ITR-V has not been successfully received by the Central Processing Centre (CPC) of the Income-tax Department, your return filing process for that year is not complete. The ITD has recently allowed tax filers an extension (till 31st August 2016) to verify their ITR-V of earlier years using one of the options below.Option 1: e-Verify.
Option 2: Sign and post it to CPC, Bangalore.

MCA-Relaxation of Additional Fees

Relaxation of Additional Fees/ Extension of Last Date by MCAA. MCA Announces Relaxation of additional Fees/ Extension of Due Date for Filing of Form AOC-4, AOC-4 (XBRL), AOC-4 (CFS) and MGT-7 [30 July 2016]MCA vide General Circular 08/2016 dt. 29 July, 2016 has announced relaxation of additional fee and extension of due date for filing of AOC-4 and MGT-7, i.e. it has decided to allow filing of financial statements/ annual returns by 29.10.2016 where due date for holding AGM is on or after 01.04.2016 without payment of additional filing fee, as under:MCA General Circular 08/2016 dt. 29 July, 20161. The Ministry have revised form AOC-4 which would be deployed shortly. Further, Form AOC-4 (XBRL) and Form AOC-4 (CFS) are also under revision and this may be available for deployment by end of August, 2016.2. As per the relevant provisions of the Companies Act, 2013, the financial statements and Annual Returns will have to be filed by the Companies within 30 days and 60 days o…