SNAG Mentors

27/06/2016

Update :

*IT*:W.e.f. 1st of June 2016, the e-tds/TCS fees have been revised:

Up to 100 deductee Rs.44
101 to 1000 deductee Rs.205
More than 1000 Rs.665.

*IT*:CBDT clarified that TCS @ 1% will apply only on cash portion and not on entire amount (cash + cheque). CBDT Circular No. 23/2016 dt. 24 June 2016

*IT* :The CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholders reg. scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Income Tax Act, as under:
CBDT Circular No. 23/2016 dt. 24 June 2016

In order to curb the cash economy, Finance Act 2016 has amended section 206C of the Income-tax Act to provide that the seller shall collect tax at the rate of one per cent from the purchaser on sale in cash of certain goods or provision of services exceeding two lakh rupees. Subsequent to the amendment, a number of representations were received from various stakeholders with regard to the scope of the provisions and the procedure to be followed in case of the amended provisions of Section 206C of the Act. The Board, after examining the representations of the stakeholders, issued FAQs vide circular No.22/2016 dated 8th June, 2016.

25/06/2016

Update :

1. No TCS If consideration is partly in cash and partly in cheque and cash consideration does not exceed 2L.

2. TCS on cash consideration only if cash consideration is above 2L.

25/06/2016

Update :

The Central Government vide Notification No. 35/2016 - ST dated June 23, 2016 has exempted taxable services for which the invoice for the service has been issued on or before the 31st May, 2016, from the whole of Krishi Kalyan Cess provided that provision of service has been completed on or before the 31st May, 2016.

11/01/2016

Updates:

1) IT: Where assessee had fulfilled all conditions of investment of equivalent amount of capital gain in purchase of residential house qualifying for relief under section 54F,she would be entitled to exemption under section 54F for total investment irrespective of fact that part of such investment came from borrowed money.
[2015] (Hyderabad - Trib.)

2) IT: Printers, scanners, modems and routers are integral parts of computer system; depreciable at rate of 60% August 26, 2015
[2015] (Hyderabad - Trib.)

3) IT: If payer obtains declarations in Form 15G/ 15H, tax is not deductible at source. Failure to furnish such declarations to CIT may attract penalty u/s 272A(2)(f). However, disallowance u/s 40(a)(ia) cannot be made.
Malineni Babulu (HUF) vs. ITO (ITAT Hyderabad).

4) IT: Writing off of bad debts : SLP granted against High Court's ruling that where accounts of assessee were open and subject to correction by auditors, bad debts could be written off even after closure of accounting period and same was to be allowed under section 36(1)(vii)-[2015] (SC)

5)ST: Service tax is payable on gross consideration without setting off receivables/payables in respect of other transactions - (2016) (Mumbai - CESTAT)

06/10/2015

Admit Cards released for November 2015

www.icai.nic.in

03/10/2015

Remember following points while filing to ROC :

1. MGT-14 for Approval of Accounts & draft board report
a. Pvt Co. - Not Required
b. Public Co. - Required

2. New forms AOC-4 (earlier 23AC/23ACA) and MGT-7 (earlier 20B) are introduced for annual filings.

3. Board Report shall include various disclosures as per sec 134 & other section etc. and summary of annual report in MGT 9.

4. Auditor shall be appointed for a period of 5 years subject to ratification every year in AGM. However, ADT-1 shall be filed for appointment only (i.e. ADT-1, not to be filled for ratification). If GNL 2 had been validly filled for 5 years, no need to file ADT1 is to be filled for ratification.

5. Auditor or his A/R (qualified to be auditor shall be present in AGM, unless otherwise exempted by company (also mention in Minutes of the company) [Sec. 146]

6. All the attachments of E-form should be duly signed, Don't file SD copy.

7. MGT 7 i.e. Annual Return is now in e-form. No physical annual return like previous year in 20B is required. E-form shall be signed by Company Secretary of the company or if there is no Company Secretary then form shall be certified by Practicing Company Secretary or small companies by director

8. Companies have paid up capital of 10 cr or more or Turnover of 50 cr or more are required to get certificate in MGT-8 by any PCS.

9. Special Resolution passed in general meeting shall also be required to file in MGT-14 , irrespective of the company staus Private or Public.

10. Notice of AGM should include route map of venue of AGM(SS 1)

11. Minutes of Board Meeting and General Meeting shall be serially numbered after 1st July 2015(SS 1 and SS 2)

12. Don't forget to regularise/appoint additional director, as director.

13. Company can also pass special resolution u/s 42/62(1)c or any other SR also, if required.

14. Report of AGM to be filled in MGT 15 within 30 days of conclusion of AGM(for listed co only).

15. If company have only associates & joint ventures(i.e. no subsidiary),no CFS is to be prepared.

16. Schedule III is to be followed for preparation of financial statement, otherwise penalty.

17. A statement in AOC1 is to be attached to FS for subsidiary, JV & associates.
AOC1 is to be attached , even if no CFS is prepared.

18. Problem of MGT 7 & SOLUTION: While filling point no IXB, sometimes, % is automatically filled as zero, which can not be changed. Download new reform & fill again.

02/10/2015

www.examsleague.com/icai-manipulate-ca-results-scored-45-got-32/

ICAI Manipulate CA Results : Student Rahul Gaur Scored 45 Marks in his ISCA Examination May 2015 And ICAI Cut it Down Directly to 32, He Shared on Facebook.

01/10/2015

Power of Use of Social Media: First Time in history, Govt used social media for extension news & expressed apology to CA Fraternity

1) On 30th Night, a petition for discriminatory order of CBDT on basis of states has been filed & within 14 hours , it has been signed by more than 1100 CAs across India. News of discrimination criticized in social media all over India.

2) First Time in history, Govt used social media for extension news & apology to CA Fraternity

3) In press release, Govt stated, “In order to avoid discrimination ……………….. the Government has decided …….extension.

19/09/2015

Updates:

1) ICAI Amended Website Guidelines: Logo can not be displayed etc

2) IT: CBDT has constituted a new committee to examine the feasibility of implementing a new tax Asstt system of 'industry-based jurisdiction' instead of the current system of territorial revenue collection in the country.

3) IT: 234E: Fees levied under section 234E is constitutional – Rajasthan High Court
in the matter of Rashmikant Kundalia and ors. V/s UOI.

4) CL: MCA has extended the last date of receipt of applications for the post of Technical Member (2) in NCLAT, Judicial Member (18) and Technical Member (10) in NCLT from 01-09-2015 to 28-09-2015.

5) ICAI: ICAI has issued detailed guidelines on audit of internal financial controls over financial reporting as required under the new companies law.

6) FEES: Please pay membership and COP fee before 30th September, 2015 in order to avoid removal. Please ignore if already paid.

16/09/2015

Updates:

1) IT:Ponds specially designed for breeding of prawns to be treated as plant for depreciation purposes. ACIT V. VICTORY AQUA FARM LTD. (Supreme Court)

2) DT: Depreciation on enhanced cost of asset is allowed from the date when the obligation to pay customs duty arose.
CIT vs Noida Medicare Centre Ltd, Delhi High Court.

3) CL: Now a private company can accept unsecured loans even from a relative of a director of the company.
http://www.mca.gov.in/Ministry/pdf/Amendement_Rules_15092015.pdf

4) IDT: Finance minister Mr Arun Jaitley on Monday announced the government's decision to impose a 20% safeguard duty on steel imports with immediate effect.

5) RBI: RBI has decided that the resident importer can raise trade credit in Rupees (INR) within the prescribed framework.

6) IEC: Modifications in Electronic IECs as well as physical IECs will now be carried out online by paying a fee of Rs.200/- wef 21.9.2015.

7) IDT: Consignment wise duty payment can be made through CENVAT credit balance: Jayaswal Neco Ltd. V/s CCE: Supreme Court.

8) IDT: Service tax cannot be levied on indivisible works contracts prior to 1st June, 2007: CCE, Kerala Vs Larsen & Toubro Ltd., Supreme Court.

12/09/2015

Update:

👉Provisions of sec.234E has been made applicable w.e.f. 1st July, 2012. It states that “Amount of late fee @ Rs.200/- per day shall be paid before delivering a TDS statement”.

👉But prior to 01.06.2015, there was no enabling provision in Section 200A of the Act for making adjustment in respect of the statement filed by the assessee with regard to tax deducted at source by levying fee under Section 234E of the Act.

👉So there were discussions on operational efficiency of the section 234E, and some people believe that, any fees u/s 234E is payable only after a period of 1-Jun-2015.

📠Honourable Bombay High Court, in the case of Rashmikant Kundalia and another [1] dated February 2015, has upheld the constitutional validity of the said section.
📹Recently, two ITAT(Chennai ITAT & Amritsar ITAT) judgements have been pronounced on the operational part of section 234E

🔮Both the ITAT has come to a conclusion that, recovery u/s 200A before 1-Jun-2015 of fee u/s 234E is not possible. This answer is to question u/s 200A.

📝After Amendment in section 200A by Finance Bill 2015 w.e.f. 01-06-2015, following position emerge

👉Till 31-5-2015 Income tax department has no power to process TDS return U/s 200A to levy TDS late fee U/s 234E
👉but w.e.f. 1-6-2015 as per Sec. 200A income tax department can levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS return.

👉so if any late fee is levied before 1-6-2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. However, it is advisable to file appeal & not to file S. 154 petition as in d later case debatable issues or lengthy issues cannot succeed.

👉Now if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee.