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Member Announcement

Powers of board of directors:
In case of private limited companies,earlier board was required to get special resolution of members before exercising certain powers like selling or disposing whole of business,or extending time for repayment of debt due by directors,etc. Under section 180.Now they can excercise these powers without obtaining special resolution
Cenvat credit
Assesse can claim credit of service tax paid on telephone and mobile services used by its employees since they are used in connection with manufacturing activity- Bombay high court
Interest on notional advances by directors
Assesse cannot claim deduction of notional interest on advances given by directors since interest is not actually paid- Punjab high court.
Interest on refund
Assessed is not entitled to interest on delayed paymenet of interest on refund under section 244
Interest on refund
Assessed is not entitled to interest on delayed paymenet of interest on refund under section 244
Incorporation of company
Mca introduces a single integrated form INC 29 for reservation of name,allotment of DIN,incorporation of company and appointment of directors.
Income from letting out of properties
Where according to memorandum of company, the main object was to acquire properties and earn income by letting out the same, the said income would be assessed as income from business and not income from house property-supreme court
Income tax returns
In filing itr for the assessment years 2015-16 assessees will be required to disclose expenses incurred for foreign travel and source for such expenses
Transport allowance:
Cbdt has notified the increase in transport allowance from 800 to 1600 per month and from 1600 to 3200 per month for handicapped assessees
Income computation and disclosure standards
From the assessment year 2016-17 income computation and disclosure standards notified by government shall be followed in computing income from the head profit and gains of business or profession and income from other sources
Allowance of Bad Debts:
It was held that assesse cannot claim bad debts because it issued credit notes to purchasers as it had charged wrongly higher amount In invoice in the first instance-madras high court
TDS On Contract:
Where assessed contracted with transporters for providing bus for pick up and drop of employees he is liable to deduct TDS under 194C(contract) and not 194I(rent) as transporters had possession and driver was also provided by them and hence contract is not in the nature of rent.
Service Tax On Sale Of Prospectus
Consideration received on sale of prospectus or admission forms cannot be subject to service tax just because they are issued for the purpose of commercial training or coaching services
Wrong Credit of Cenvat:
Where the assesse takes cenvat credit wrongly due to bonafide interpretation of high court rulings, penalty under rule 15(2) of cenvat credit rules cannot be levied(penalty for wrong cenvat credit due to fraud,wilful mistatement,etc)
TDS On Interest:
Tds will be deducted on interest from recurring deposits as per new budget.However this will not affect tax impact as interest on RD is anyways taxable.
Export Service:
Where testing and analysis is done in India and report is sent outside India,it amounts to export of service as service is complete only when report is sent and received by the service receiver.
Capital Gains Exemption:
Section 54 exemption(investment in residential property) shall not be ignored just because the building is short term capital asset if the land on which it is developed is long term capital asset.
Negative List:
Computer training provided in schools will be covered In negative list only If it is as prescribed by government syllabus
Taxability Of Membership Fees:
Non refundable membership fees received by club shall be taxed by spreading it over membership period- bombay high court.
Valuation Of Consideration For Capital Gains:
Section 50c wont apply in case of transfer of leasehold rights in land or building(adoption of value of stamp valuation authority)
Cenvat Credit On Capital Goods:
Cenvat Credit on capital goods shall be allowed even if goods are not installed.It is a not a pre condition for availing cenvat credit on capital goods.
Cenvat Credit On Rented Services:
Where assesse was undertaking Job work in rents premises and cleared final products on payment of duty, assesse was entitled to credit of service tax paid on rented services.
Interest On Income Tax Refund:
Assessed not entitled to interest on refund of excess self assessment tax paid by him-Delhi high court
Cenvat credit:
Provision not in force during the relevant period cannot be used to deny credit- rajastan high court.
Interest For Delay in furnishing return of income:
It is clarified by circular that no interest shall be charged u/s 234a on tax deposited before filing return of income, including the self assessment tax paid. Earlier intereset was charged on tax payable after deducting TDS,advance tax,etc.Now even SAT shall be deducted for charging interest for default in filing return.
Interest On Borrowed Capital
Assessing office cannot disallow interest if he fails to prove that amount borrowed was passed to sister concern without any interest(AP high court).
Mca Filing
Mca notifies form gnl 4 for filing information to rectify defects or incompleteness in e forms filed with it
Depcreciation Allowance:
Mere non registration of asset in name of assesse does not lead to denial of depreciation claim- rajastan high court.
Delay in Completion of Contract Work
Amount paid by subcontractor to main contractor on account of costs that he had to incur due to delay in completion of work is not liable to TDS under both 194C and 194A(interest)-Gujarat high court
Service Tax Appeals
Pre deposit shall be waived off where the appellant has a good or prima facie case in his favour.for this the appellant need not satisfy that his case is foolproof(Allahabad high court)
Presumptive Income:
Interest paid on sum borrowed is not deductible when income is determined by applying estimated rate of net profit where as depreciation is allowed in that case(lali construction vs ac of income tax)
Cenvat credit :
Interest is not payable for delay in payment of service tax by debit to cenvat account if sufficient balance is available in cenvat account-commisioner vs ongc
Input Tax Credit
Held in karnataka high court that for claiming input tax credit, issuance of invoice,debit note, credit note and filing of returns within prescribed time is mandatory
VAT Credit
Where depreciation wrongly taken by assesse is reversed in subsequent year,credit taken on capital goods cannot be denied(taxmann)
Point of Taxation(POT)
In case of service chargeable under reverse charge mechanism,POT shall be date of payment.But if the payment is not made within 3 months from date of invoice, point of taxation shall be date following three months.This rule is applicable for invoices issued after 1st Oct 14.
Negative list
Selling of space for advertisements in print media is covered in negative list and not liable to service tax.Print media includes only book and newspaper. Earlier selling of space in radio and TV was only taxable.Now all selling other than in book and newspaper is taxable.
Update on GST
Yesterday, there was a break through in the talks on GST and all the state governments seem to have been convinced on the GST. So, in the coming parliamentary session, the Constitution Amendment Bill (115th), 2011 is most likely to be passed with 2/3rd of majority.

After this, the actual law would be introduced and goes through the parliamentary process. This is expected to be implemented by April 2016.

Due Date For FILING Service Tax Return
As Per Order No 02/2014-SERVICE TAX, DATED  October 24,  2014 The Due Date For FILING Service Tax Return for the half year ended September 30, 2014 is extended to November 14, 2014.
MCA defers internal control reporting by one year
MCA defers internal control reporting by one year and provides relief to intermediate holding companies -auditors reporting requirements on a company's internal financial controls system by a year, making it mandatory only for financial years beginning on or after April 1, 2015 and voluntary for the period(s) prior to that.
Prime Minister Narendra Modi launches a trio of key initiatives
Efforts to roll out labour reforms and make it easier for companies to do business in India are set to reach a milestone when Prime Minister Narendra Modi launches a trio of key initiatives a single window system for labour law compliance, provident fund (PF) number portability and a revamped inspection system for compliance.
CLSS Scheme extended upto 15.11.2014 (MCA)
CLSS Scheme extended upto 15.11.2014 (MCA
Limitation act - acknowledgement thru email
Acknowledgment of debt via email before expiry of 3 yrs would initiate a fresh limitation period from date of email. (Mad HC)
Removal of Director not in compliance with Sec.284
Where petitioner-director was removed from directorship without complying with Sec. 284 of COA 1956 Act and conduct of respondents towards petitioner had been consistently unfair, harsh and lacked probity, same amounted to illegality and acts of oppression. CLB (Bom)
Extension of Due Date for Filing IT Return
CBDT extends the due date for filing IT Return from 30.9.14 to 30.11.14 for A.yr 2014-15 in respect of assessees who are required to get their accounts audited u/s 44AB and in case of working partner of a firm s.t tax audit. Interest u/s 234A shall apply.
Method of Valuation of Shares
To disregard a method of valuation of shares in scheme of reduction, it must be shown that chosen method of valuation is well below what a fair-minded person may consider reasonable. [Bom HC]
Guidance Note on Tax Audit u/s 44AB release by ICAI
Guidance note on Tax Audit u/s 44AB of the Income Tax Act, 1961 released by ICAI. Click here to download.
Handbook on Direct Taxes
Handbook on Direct Taxes for (Latest Edition) authored by Shri. G Sekar, FCA is available for Sale. FY 14- 15 | AY - 15 - 16. Contact 9940012303 for a copy.
Tobacco boards are liable for ST
Tobacco Boards are, prima facie, liable to service tax on their activities and they cannot be regarded as 'public authority' performing 'public functions' within meaning of Circular No. 89/7/2006-S.T., dated 18-12-2006.
TDS and TCS Book
Practical Guide on TDS and TCS for Financial Year 2014-15 authored by Shri. G Sekar, FCA - available in the market. Contact 9940012303 for a copy.
In view of expression 'duty demanded or penalty levied' in section 35F (i.e., use of word 'or'), Tribunal cannot ask to make pre-deposit of both; pre-deposit of penalty is required when order of penalty alone is under challenge.
TDS Payment for September Extended
CBDT has extended the due date for deposit of TDS for the month of September 2014 to 10.10.2014 in view of continuing holidays.
NTT Unconstitutional
National Tax Tribunal Act was held unconstitutional by Supreme Court. Madras Bar Association V. Union of India (SC)