Friday, May 22, 2015

Ministry has notified the Secretarial Standards for Board Meeting and General Meetings

Please note that the Ministry has notified the Secretarial Standards for Board Meeting and General Meetings which will be in force from 1st June, 2015. After the enforcement of the Standards every Company needs to mention the no. of meeting in its minutes which shall also be mentioned in each board resolution or general meeting resolution to be filed with the Ministry which also makes it mandatory for every Company to maintain the statutory records i.e., Minutes and Registers. The language of the Secretarial Standard for Board Meeting is being provided below for your ready reference:

-Regards
CA. C. V. PAWAR

Service tax rate change - how to implement

Professional updates:
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How change in Service Tax rate should be tackled.--

Please keep in mind the following and prepare yourself accordingly:

1. Service Provision is complete till 31.05.2015 and Invoice raised till 31.05.2015 but Payment received on or after 01.06.2015- 12.36% applicable.

2. Service complete till 31.05.2015, Invoice raised on or after 01.06.2015 but Payment is received till 31.05.2015 - 12.36%

3. Service Provision complete till 31.05.2015 and Invoice raised on or after 01.06.2015 and Payment also received after 01.06.2015- 14%

4. Invoice raised till 31.05.2015 in advance and some part of total consideration has been paid till 31.05.2015 but Service Provision is being done on or after 01.06.2015 -12.36% for such part payment, 14% for balance to be recd.

5. Entire consideration received till 31.05.2015 but no invoice raised till 31.05.2015 and no service provided -14%

6. Even if entire service has been provided on or after 01.06.2015 but both payment as well as invoicing has been done till 31.05.2015 then -12.36

The simple method- there are three parameters-1. Service provided 2. Payment received 3. Invoice raised. If two parameters before 1.6.2015 then old rate. If two after 1.6.2015 then new rate.

-Regards
-a forward

Saturday, May 16, 2015

Supreme Court Explains When Rental Income Can Be Taxed As Biz Profits Vs. House Property Income



 

Dear Subscriber,

 

The following important judgement is available for download at itatonline.org.


Chennai Properties & Investments Ltd vs. CIT (Supreme Court)

S.22/28: Law on whether income from letting of properties is assessable as "business profits" or as "Income from house property" explained

Where there is a letting out of premises and collection of rents the assessment on property basis may be correct but not so, where the letting or sub-letting is part of a trading operation. The diving line is difficult to find; but in the case of a company with its professed objects and the manner of its activities and the nature of its dealings with its property, it is possible to say on which side the operations fall and to what head the income is to be assigned


Regards,

 

Editor,

 

itatonline.org

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Latest:

CIT vs. India Advantage Securities Ltd (Bombay High Court)

No s. 14A and Rule 8D disallowance can be made for shares held as stock-in-trade

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Scope Of Section 153A Search Assessment: Important High Court Verdict + CBDT Order On Transfers And Postings Of Pr. CCIT, CCIT And DGIT

Dear Subscriber,

CIT vs. Continental Warehousing Corporation (Bombay High Court)

S. 153A: No addition can be made in respect of an unabated assessment which has become final if no incriminating material is found during the search. An ICD is an "infrastructural facility" for s. 80-IA(4)

Once it is held that the assessment has attained finality, then the AO while passing the independent assessment order under Section 153A read with Section 143 (3) of the I.T. Act could not have disturbed the assessment / reassessment order which has attained finality, unless the materials gathered in the course of the proceedings under Section 153A of the Income-tax Act establish that the reliefs granted under the finalised assessment/ reassessment were contrary to the facts unearthed during the course of 153A proceedings


CBDT Order On Transfers & Postings Of Pr. CCIT, CCIT And DGIT

Vide Order No. 60 of 2015 dated 08.05.2015 the CBDT has ordered the transfers and postings of several officers in the grade of Principal Chief Commissioner of Income-tax, Chief Commissioner of Income-tax and Director General of Income-tax with immediate effect and until further orders


Regards,

 

Editor,

 

itatonline.org

---------------------

Latest:

Chennai Properties & Investments Ltd vs. CIT (Supreme Court)

S.22/28: Law on whether income from letting of properties is assessable as "business profits" or as "Income from house property" explained



Three Imp Bombay High Court Verdicts On S. 194-I/ 194-J TDS + International Tax Issues

 

Dear Subscriber,

 

The following important judgements are available for download at itatonline.org.


CIT (TDS) vs. Maharashtra State Electricity Distribution Co Ltd (Bombay High Court)

S. 194-I/ 194-J: Meaning of expression "rent" and "fees for technical services" explained in the context of transmission & wheeling charges paid by electricity company

The expression rent would also entail an element of possession. In each of the instances contemplated by the explanation to Section 194-I, we see in them an element of possession, be it land, building (including factory building), land appertaining to a building, plant, equipment, furniture or fittings. The person using it has some degree of possessory control, at least momentarily, although it cannot entrust the user title to the subject matter of the charge. Even the mere right to "use" is vested with an element of possessory control over the subject matter


DIT vs. B4U International Holdings Limited (Bombay High Court)

Indian agent of foreign company cannot be regarded as "Dependent Agent Permanent Establishment" if agent has no power to conclude contracts. If the agent is remunerated at arms' length basis, no further profit can be attributed to the foreign company. It is doubtful whether retrospective amendment to s. 9(i)(vi) can apply the DTAA. However, question is left open

The Indo-Mauritius DTAA requires that the first enterprise in the first mentioned State has and habitually exercised in that State an authority to conclude contracts in the name of the enterprise unless his activities are limited to the purchase of goods or merchandise for the enterprise is a condition which is not satisfied. Therefore, this is not a case of B4U India being an agent with an independent status. The findings of the Supreme Court judgment in Morgan Stanley & Co. that there is no need for attribution of further profits to the permanent establishment of the foreign company where the transaction between the two is at arm's length but this was only provided that the associate enterprise was remunerated at arm's length basis taking into account all the risk taking functions of the multinational enterprise. Thus, assuming B4U India is a dependent agent of the assessee in India it has been remunerated at arm's length price and, therefore, no profits can be attributed to the assessee


DIT vs. A. P. Moller Maersk A/S (Bombay High Court)

S. 9(1)(vii)/ Article 13(4): Amount paid by Indian entities as "share of cost" of utilizing automated telecommunications system is not assessable as "fees for technical services" if there is not profit element in it

utilization of the Maersk Net Communication system was an automated software based communication system which did not require the assessee to render any technical services. It was merely a cost sharing arrangement between the assessee and its agents to efficiently conduct its shipping business. The Maersk Net used by the agents of the assessee entailed certain costs reimbursement to the assessee. It was part of the shipping business and could not be captured under any other provisions of the Income Tax Act except under DTAA


Regards,

 

Editor,

 

itatonline.org

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Latest:

Four Members Of Bombay Tax Bar Selected For Post Of Hon'ble ITAT Member


Tuesday, May 5, 2015

IMP-New Facility to check VAT input credit given by Supplier

Dear Sir,

The new facility of cross checking of Input VAT credit claimed by us and as per details uploaded by the supplier is available on VAT website. By using this feature we can verify whether, the correct input credit uploaded by our supplier.

If the status is "No Sale" or "Not matching" we shall take followup with the supplier to correct his Annexure (i.e. J1)

You are requested to use this feature and verify the data for FY 2014-15. This may avoid the dis-allowance at latter stage.


Make long to VAT website with your user id and password. Then do as follows:
2. Select your VAT tin (i.e. radio button of with TIN ending with "V") and Click on "Get Details"
3. Click on ITC Report 
4. Mention the TO and FROM period (e.g. 01/04/2014 to 30/09/2014) and click on "ITC Report " 
5. The "Net Amount", VAT Amount, Total Amount on left hand side represents to Input credit claimed by you while filling your VAT return and "Net Amount", VAT Amount, Total Amount on right hand side represents to Sales/ Output credit data uploaded by supplier while filling his VAT return. If remark column shows remark as "Not matched" means there is difference between what you claimed and as per supplier. If remark is "No Sales" then Supplier has not shown Sales to your TIN. In both cases you need to take corrective action. 

Please feel free to ask any support required.

Regards,
-------
CA.C.V.PAWAR
PATIL DAWARE GIRASE PAWAR & ASSOCIATES
CHARTERED ACCOUNTANTS
0253-2319641. M-9423961209

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Friday, April 17, 2015

New ITR introduced for Fy 2014-15

Details of Changes in New ITR as launched on 15/04/2015

ITR-1

1)      Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system.

Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.

2)      Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

ITR-2

1)      Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2)      Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure

3)      Details of utilization of amount deposited in capital gain account scheme for years preceding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.

4)      In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?,

5)      For Non-resident, Income from other sources, If any income chargeable to tax at special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.

6)      Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

7)      In schedule FA- Foreign assets disclosure, Following details added.

a) Foreign Bank accounts details: It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.

b) In similar manner, details of income from Financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.

c) Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

ITR-4S

1)      Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.

2)      Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

-Regards
CA. C. V. PAWAR