Monthly Updates | May, 2016 · 30th June 31st July 30th September 31st October 31st December 31st...

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Monthly Updates | May, 2016

Transcript of Monthly Updates | May, 2016 · 30th June 31st July 30th September 31st October 31st December 31st...

Page 1: Monthly Updates | May, 2016 · 30th June 31st July 30th September 31st October 31st December 31st January 31st March 31st May of next year -----Circular No. 11/2016Reg Payment of

Monthly Updates | May, 2016

Page 2: Monthly Updates | May, 2016 · 30th June 31st July 30th September 31st October 31st December 31st January 31st March 31st May of next year -----Circular No. 11/2016Reg Payment of

01- DIRECT TAXES Income Tax Pg.3 International Tax Pg.11

02- INDIRECT TAXES Customs Pg.15 Excise Pg.20 Service Tax Pg.23 MVAT Pg.24

03- ROC UPDATE Pg. 29

04- UPCOMING DUE DATES Pg. 32

05- CONTACT Pg. 34

C

ON

TEN

T

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For Private Circulations Only 3 The Update –May, 2016, SGCO & Co.

INCOME TAX

CBDT Notification no. 30/2016 dated 29-

04-2016 reg amendment in TDS procedures

• Furnishing of Evidences of claim for

deductions/ exemptions by employees

The employees are required to furnish

details of exemptions/ deductions to the

employer for the purpose of tax deduction.

From F.Y. 2016 - 17, the employee is

required to furnish evidence or the

particulars of such claims of deductions and

exemptions in Form No 12BB. Following

evidences are to be provided for claim of

exemption/ deduction:

House Rent

Allowance

Name, Address & PAN of

landlord where rent paid

during P.Y. exceeds Rs. 1

lakh

Leave Travel

Concession

Evidence of Expenditure

Interest on

Housing Loan

Name, Address & PAN of

Lender

Deduction

u/c. VIA

Evidence of Investment or

Expenditure

The name and PAN of the Landlord/ lender

are also to be mentioned in Form no. 24Q

(TDS return) by the employer.

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

• Due date for Payment of TDS u/s. 194-

IA

Section 194IA requires buyer of property to

deduct 1% TDS while making payment to

seller if consideration of the property

exceeds Rs. 50 lakh. Such TDS was required

to be paid within 7 days from the end of the

month in which payment had been made.

CBDT has extended such 7 day period to 30

days for all payments to be made on or

after 01st June 2016.

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

• Electronic Furnishing of TDS

Statements

TDS returns are now mandatorily required

to be filed online with or without DSC. The

TDS returns are to be uploaded on the e-

filing portal of Income tax w.e.f. 01.05.2016.

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A detailed user guide for the procedure in

this regard is available on the following link:

http://incometaxindiaefiling.gov.in/eFiling/

Portal/StaticPDF/TDS_TCSStatement_Uploa

d_User_Manual.pdf

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

• Due dates for Furnishing TDS Returns

The due dates for furnishing of TDS returns

are modified and the revised due dates

from F.Y. 2016 - 17 are as under:

Quarter ending Due Date

30th June 31st July

30th September 31st October

31st December 31st January

31st March 31st May of next year

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

Circular No. 11/2016 Reg Payment of

Interest on Refund U/s 244A on Excess TDS

Deposited U/s 195 Of The Income-tax Act,

1961

The CBDT has issued Circular No. 11/2016 dated

26.04.2016 stating that in accordance with the

judgement of the Supreme Court in UOI vs. Tata

Chemical Limited1 it is settled that if resident

deductor is entitled for the refund of tax

deposited u/s. 195 of the Act, then it has to be

1 363 ITR 658

refunded with interest u/s. 244A of the Act, from

the date of payment of such tax. The CBDT has

also directed that no appeals may henceforth be

filed on this ground by the officers of the

department and appeals already filed on this issue

may not be pressed.

-----------------------------------------------------CBDT Directive: F.No. 225/12/2016/ITA.II Reg Consistency In Taxability Of Income/Loss Arising From Transfer Of Unlisted Shares The CBDT has issued a directive dated 2nd May 2016 in which it has been directed that the income arising from transfer of unlisted shares would be considered under the head ‘Capital Gain’, irrespective of period of holding, with a view to avoid disputes/litigation and to maintain uniform approach. This circular would however not apply in situations where: i. the genuineness of transactions in unlisted

shares itself is questionable; or

ii. the transfer of unlisted shares is related to an

issue pertaining to lifting of corporate veil; or

iii. the transfer of unlisted shares is made along

with the control and management of

underlying business

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

JUDICIAL RULINGS

S. 15, 17, 192: Concept of "salary"

explained. Held that as "tips" are paid to

employees of the assessee from an

outsider on a voluntary basis and the

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employees have no vested right to receive

the same, the same is not "salary" and the

assessee has no obligation to deduct TDS

Facts:

• The tax deductor (the employer) was

engaged in the hotel business. It collected

tips from customers' and then passed the

same over to the employees without

withholding any tax thereon.

• The A.O. treated such receipt of tips as

“income from salary” in the hands of the

employees and held that the taxpayers

were liable to withhold tax on such

payments u/s. 192 of the Act. For failure to

withhold such tax, A.O. treated the

taxpayer as a “taxpayer-in-default” u/s.

201(1) of the Act and asked for the tax and

interest prescribed under the Act for such

failure.

• The CIT(A) allowed the appeal in favour of

the assessee. The Hon’ble ITAT confirmed

the order of CIT(A). The Hon’ble Delhi HC

reversed the order of ITAT and decided the

matter against the assessee. The question

before the Hon’ble Apex Court was whether

the assessee was liable to deduct tax on tips

collected and paid by them to their

employees.

Held:

The Hon’ble Apex Court decided the matter in

favour of the assessee as follows:

• U/s. 192 of the Act, the person responsible

for paying salaries alone was responsible for

withholding tax, and such person was only

the employer; however, on the given facts,

the person responsible for paying the

employees was not the employer at all, but

a third person, namely the customer.

• The income from tips would be chargeable

in the hands of the employees as income

from other sources, and not as income from

salary; if an employee received payment

other than salary income, section 192 did

not apply.

• For salary taxation provisions of the Act to

apply, an employee should have a vested

right to claim any salary from an employer.

Since, in the given facts, the employee has

no vested right to claim any amount of tip

from his employer, tips being a purely

voluntary amount received from customers,

they would not fall within salary income

under the Act.

• Salary taxation provisions of the Act

necessarily referred to the contract of

employment between employer and

employee, and salary paid or allowed must

therefore have reference to such contract

of employment.

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• Tips would not be payments made ‘by or on

behalf of’ an employer as these were never

the property of the employer. In these

circumstances, payments would be outside

the purview of the salary taxation

provisions of the Act.

ITC Limited vs. CIT (Supreme Court)2

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

In view of CBDT Circular No. 6/2016 dated

29.02.2016, if assessee has consistently

shown shares as an “investment” and

offered gains as capital gains, AO is not

entitle to urge that the same constitutes

“stock-in-trade” and assess gains as

business profits on grounds that there

were substantial and frequent transactions

and motive was to earn profit and holding

period of such shares was very short

Facts:

The assessee had shown short term capital gain

from share transaction of Rs 73,70,214/-. The

A.O. contended that the examination of Demat

accounts and transactions in brokers’ account

furnished by the assessee makes it clear that

purchase and sale of shares/units is not

investment activity but it is the business of the

2 2016-TIOL-48-SC-IT

assessee. Relying on various precedents the A.O.

treated the income as business income.

Held:

The moot question which was required to be

decided was whether the income earned by the

assessee on account of share was required to be

treated as business income or required to be

treated as short term capital gain. After the

matter was heard on 11.02.2016, the CBDT came

out with the Circular No. 6/2016 dated

29.02.2016 wherein it was clarified that the

stand of the assessee as regard to classification

of income from sale of shares shall be treated as

business income or capital gains based on the

option exercised by the assessee provided that

the stand is consistently followed by the

assessee. Since the assessee had treated the

securities as investment and not as stock in trade

in all the years, therefore, in view of the CBDT

Circular, the revenue was not permitted to take

a contrary view in the present year and the

profit/gain caused to the assessee was to be

treated as business income.

DCIT vs. Mahender Kumar Bader (ITAT Jaipur)3

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

3 ITA No. 605/JP/2013

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S. 50C does not apply to transfer of

leasehold rights in land

Facts:

For the year under consideration the assessee

had assigned leasehold right in a property for a

total consideration of Rs. 90,00,000/-, whereas

the market value of the said property was

determined by the Stamp Valuation Authority at

Rs. 3,41,59,500/-.The A.O. invoked the

provisions of section 50C of the Act & computed

the Long Term Capital Gain of the aforesaid

property at Rs. 3,03,82,674/-.

Held:

• Section 50C of the Act provides that if the

consideration received or accruing is less

than the value adopted or assessed or

assessable by the stamp valuation authority

of the State Government for such transfer

then the value so adopted or assessed or

assessable shall be deemed to be the full

value of consideration and the capital gains

will be computed accordingly.

• The phraseology of section 50C of the Act

clearly provides that it would apply only to

“a capital asset, being land or building or

both”. The moot question was as to

whether such expression would cover the

transfer of a capital asset being leasehold

rights in land or building.

• Leasehold right in land is a capital asset.

However, every kind of a ‘capital asset’ is

not covered within the scope of section 50C

of the Act for the purposes of ascertaining

the full value of consideration.

• The A.O. was accordingly directed to

compute the capital gains on transfer of

leasehold right by adopting the value as

offered by the assessee and without

invoking the provisions of Section 50C

Farid Gulmohamed vs. ITO (ITAT Mumbai)4

----------------------------------------------------- S. 68: Share application money received

from an associate concern cannot be

assessed as cash credits if assessee has

discharged its initial onus to prove the

identity, creditworthiness and genuineness

of the transaction Facts:

The A.O. made an addition u/s. 68 of the Act on

the suspicion that the share applicants were

name lenders and had no creditworthiness as

their bank balance and the returned income was

extremely low as compared to the share

application money.

Held

• The department had not received any

information with regard to the fact that the

4 ITA No. 5136/Mum/2014

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share application were bogus entry or it is

in the shape of accommodation entry. The

share application was by the associate

concern of the assessee which is also

assessed with IT Department.

• The Tribunal relying on the decision of

Sinhal Products (P) Ltd.5 held that the

asseseee had discharged its initial onus of

proving the identity & capacity of the

applicant and the genuineness of the

transaction.

• The share application money received thus

stood duly established and addition u/s. 68

was accordingly deleted.

DCIT vs. Overseas Infrastructures (ITAT

Mumbai)6

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

Waiver of Loan taken for acquiring a

capital asset is a revenue receipt taxable

u/s. 28(iv) of the Act.

Facts:

• The taxpayer had taken a loan from a bank

for acquiring a capital asset. The loan

outstanding was waived by the bank as a

part of a one-time settlement. The taxpayer

treated the waiver of both, principal and

5 ITA No 3852 to 3854/Del/2009 6 ITA No 1470/Mum/2011

interest, as capital receipt and excluded the

same while computing its taxable income.

• The A.O. treated the interest waived by the

bank as income u/s. 41(1) of the Act and the

principal amount as income u/s. 28(iv) of

the Act.

• The CIT(A) held that principal waived was

not taxable u/s. 28(iv) of the Act placing

reliance on the decision of Iskraemeco

Regent Limited7. The Hon’ble ITAT

confirmed the order of the CIT(A).

• The moot question before the Hon’ble High

Court was as to whether waiver of principal

amount of loan would amount to income

u/s. 28(iv) of the Act.

Held

• The Hon’ble HC rejected the Tribunal’s and

CIT(A)’s reliance on the co-ordinate bench

ruling in Iskraemeco Regent Limited

(Madras HC). The HC differed from the

reasoning given in the said ruling that

section 28(iv) dealt only with a benefit or

perquisite received in kind, and not to any

transaction involving money

• The Hon’ble HC also observed that there

was no distinction between waiver of loan

7 (2011) 196 taxman 103

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taken for acquiring a capital asset and

waiver of loan taken for trading activities in

accounting practice, and that such waiver

would either be credited to profit and loss

account or to the capital reserve.

CIT v.Ramaniyam Homes (P.) Ltd. (Mad HC)8

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Deferred Consideration on Transfer of

shares is not taxable in the absence of

accrual.

Facts:

• The taxpayer, along with her family

members (sellers), were shareholders of a

closely-held company. The sellers entered

into an agreement, dated 25 January 2006,

with the purchaser for transfer of all the

shares in their company. Part of the

consideration was receivable as initial

consideration upon execution of the

agreement. The sellers were also entitled to

deferred (additional) consideration for four

subsequent years (up to 31 March 2010),

based on the performance of the underlying

company whose shares were transferred.

The deferred consideration was based on a

certain formula which took into

consideration average profits of two years,

8 Appeal No. 278 of 2014

together with adjustment for cash and debt

as at balance sheet date.

• For A.Y. 2005-06, the taxpayer offered

capital gains on transfer of her shares in the

year of execution of the agreement. Capital

gains were computed, on the basis of initial

consideration received. The A.O., however,

assessed the taxpayer with reference to her

share in the total consideration of Rs 200

million viz., the initial consideration and the

deferred consideration.

• The CIT (A) held in the favour of the

assessee which was confirmed by the

Hon’ble ITAT

• The Department raised a question of law

before the HC that the Tribunal’s order,

accepting the taxpayer’s mode of offering

capital gains on deferred consideration on

receipt basis in various years, was contrary

to provision of law which requires taxation

in the year of transfer.

Held

• The Hon’ble HC referred to various SC

rulings and noted the well- settled

principles of accrual of income. It reiterated

that income can be said to have accrued

only when a taxpayer gets the right to

receive it. Such right must be represented

by the debt owed by somebody in favor of

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the taxpayer. There can be no taxation of

hypothetical income which does not accrue

to the taxpayer.

• In A.Y. 2005-06, the taxpayer had no right

to claim any part of the deferred

consideration; no such right vested in the

taxpayer.

• The HC noted that the sellers had offered

the deferred compensation as capital gains

income in the respective year of accrual of

income, in terms of the agreement.

• On the above grounds, the HC rejected the

department’s contention that the

taxpayer’s mode of offering capital gains on

the deferred consideration on receipt basis

in various tax years was contrary to the

provisions of the ITL, which require the

taxation in the year of transfer.

CIT v. Hemal Raju Shete (Bom HC)9

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

9 Appeal No. 2348 of 2013

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INTERNATIONAL TAXATION Amendment of India –Mauritius Treaty 1) Source-based taxation of capital gains on

alienation of shares of “a company resident in India”.

Investments in shares of Indian Resident Company

Taxability in India

Shares acquired before April 1,2017 and sold at any point of time

• Capital Gains not taxable in India

Shares acquired on or after April 1,2017 (FY 2017-18) and sold on or before March 31,2019 (FY 2018-19) (Transition Period)

• Capital Gains taxable in India at 50% of the domestic tax rates of India

• Fulfillment of Limitation Of Benefit (LOB) clause required - Resident of Mauritius (including a shell / conduit company*) will not be entitled to benefits of 50% reduction in tax rate, if it fails the main purpose test and bonafide business test

Shares acquired on • Capital Gains

or after April 1,2017 (FY 2017-18) and sold on or after April 1, 2019 (FY 2019-20)

taxable in India at 100% of the domestic tax rates of India

*Total expenditure on Mauritian operations is less than INR 2,700,000 in the immediately preceding 12 months

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

2) Source- based taxation of interest income of Mauritius resident banks:- The Protocol provides for withholding at the rate of 7.5% on interest arising in India to Mauritius resident banks in respect of debt claims or loans made after March 31, 2017. However, Interest Income of Mauritian resident banks in respect of debt-claims existing on or before March 31, 2017 shall be exempt from tax in India.

---------------------------------------------------------- Foreign Tax Credit-Draft Rules Draft Rules For granting relief or deduction u/s 90/90A,91 of the Income Tax Act,1961

The Central Board of Direct Taxes (CBDT) has issued the draft rules specifying the procedure for the granting of relief or deduction, as the case may be, of any income tax paid in any country or specified territory outside India. The draft rules are proposed as under:-

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• A resident assessee shall be allowed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India.

• Foreign Tax shall mean either the tax payable as per the Double Tax Avoidance Agreement (DTAA) or the tax payable under the law in force in foreign country.

• The credit for foreign tax shall be available against the amount of tax, surcharge and cess payable under the Act but not in respect of any sum payable by way of interest, fee or penalty.

• No credit shall be available in respect of any amount of foreign tax which is disputed in any manner by the assesse.

• The credit of foreign tax shall be the aggregate of the amounts of credit computed separately for each source of income arising from a particular country or specified territory and given effect to in the following manner:

(i) the credit shall be the lower of the tax payable under the Act on such income and the foreign tax paid on such income;

(ii) the credit shall be determined by conversion of the currency of payment of foreign tax at the telegraphic transfer buying rate on the date on which such tax has been paid or deducted.

• In a case where any tax is payable under

the provisions of section 115JB or

115JC of the Act, the credit of foreign tax shall be allowed against such tax in

the same manner as is allowable against any tax payable under the normal provisions of the Act.

• No tax credit shall be allowed unless the assesse submits the following documents:-

i. Certificate from tax authority specifying the nature of Income and the tax deducted thereon. However, if the foreign tax is deducted at source, a certificate showing the deduction of tax at source from the person responsible for deducting such tax.

ii. Acknowledgement of online tax payment or bank counterfoil or slip payment where the payment of foreign tax has been made by the assessee

iii. A declaration that the amount of foreign tax credit is not under any dispute.

(F.NO.142/24/2015-TPL, Dated 18-04-2016)

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

JUDICIAL RULINGS Kailash Jewels(P) Ltd. vs Income Tax Officer ,Ward 14(1),New Delhi

Facts of the Case : The assesse company was engaged in the

business of manufacturing and trading of gold

and silver jewellery/bars/coins and utensils etc.

Such gold apparently shown to have been

purchased by the assessee from its Associated

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Enterprise (AE) was converted into jewellery and

sold back to its AE.

The assessee benchmarked those international

transactions by using the Cost Plus method as

the most appropriate method for determining

their Arm's Length Price (ALP)

During the course of proceedings before

Transfer Pricing Officer (TPO), the assessee came

out with the application of Comparable

Uncontrolled Price (CUP) method as the most

appropriate method by giving comparable

instances & hence contended that the labour

charges paid to it by its AE at $0.65 per gram

were higher than the comparables & hence

considered as ALP.

The TPO refused to accept the CUP as most

appropriate method and opted for the TNMM as

the most appropriate method.

TPO included value of gold imported and value

of jewellery sold to its AE in the calculation of

the assessee's PLI. Thereafter, he selected

certain companies as comparable, earning

average profit margin of 7.14 per cent. The TPO,

thus, made certain addition to assessee's ALP.

Held:

• In the instant case, the assessee is not

engaged in manufacturing and export of gold

jewellery. It is simply receiving gold bars from its

AE, doing job work on them and then returning

jewellery in the manner ordered by the AE, after

charging for job work at US$ 0.65 per net gram

of jewellery.

• The assessee is simply receiving gold

bars for converting them into jewellery and then

sending it back to its AE after doing the specified

job work.

• In such earlier year also, no

consideration was paid or received by the

assessee for the value of gold and only labour

charges were received, as is the position during

the instant year as well. The Tribunal came to a

final conclusion that the value of gold imported

and exported is only a pass through cost and

cannot be considered as a part of the assessee's

operating cost.

• The ITAT also held that from the facts,

CUP is the most appropriate method to

determine ALP

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Delta Power Solution India (P) Ltd. vs Deputy Commissioner of Income Tax, Uttarakhand

Facts of the Case : The assesse company was a wholly owned

subsidiary of DET International Holding Ltd.It

was engaged in manufacturing/trading

/assembling of Telecom Power Equipment, visual

display products, industrial automation etc

The assessee entered into international

transaction with its AE to the extent of Rs. 23.73

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crores. The assessee used TNMM as the Most

appropriate Method (MAM) for the transactions

relating to purchase of raw materials and export

of finished goods and used the operating profit

as PLI. In respect of Import of automation

products and sales commission segment, the

assessee used Resale Price Method (RPM) as the

MAM and gross profit as PLI sales.

The TPO rejected the RPM used by the assessee

and applied TNMM method for benchmarking

the transaction and proposed an adjustment of

Rs. 4.30 crores for import of industrial

automation products. On appeal to the

CIT(A),the verdict was also in favour of the

assesse.On appeal by the revenue to the

tribunal, it was held as under:

Held:

• In lieu of the fact that there is no value

addition in respect of goods sold by the assesse,

it was concluded that RPM was the most suitable

method to determine ALP.

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CUSTOMS

Notifications Tariff Notification No. 12/2012-Customs, dated the 17

March, 2012 is amended so as to prescribe

simplified procedure for the units approved by

Director General of Civil Aviation (DGCA)

engaged in Maintenance, Repair and overhaul of

aircrafts. Procedure for same can be viewed at

http://cbec.gov.in/resources//htdocs-

cbec/customs/cs-act/notifications/notfns-

2016/cs-tarr2016/cs29-2016.pdf

Customs Notification No. 29/2016-Cus dated

26/04/16

----------------------------------------------------------------- Non-Tariff CBEC notifies Foreign Exchange Rates with effect

from 22nd March 2016 as follows:

SCHEDULE-I

Sl. No.

Foreign Currency Rate of exchange of one unit of

foreign currency equivalent to Indian rupees

(1) (2) (3)

(a) (b)

(For Imported

Goods)

(For Export

Goods)

1. Australian Dollar 52.50 51.20

2. Bahrain Dinar 181.45 170.95

3. Canadian Dollar 53. 10 51.95

4. Danish Kroner 10.20 9.95

5. EURO 75.95 74.10

6. Hong Kong Dollar 8.65 8.50

7. Kuwait Dinar 226.40 213.90

8. New Zealand Dollar 47.00 45.60

9. Norwegian Kroner 8.30 8.05

10. Pound Sterling 96.35 94.20

11. Singapore Dollar 49.95 48.80

12. South African Rand 4.8 4.55

13. Saudi Arabian Riyal 18.20 17.20

14. Swedish Kroner 8.25 8.05

15. Swiss Franc 69.15 67.55

16. UAE Dirham 18.60 17.60

17. US Dollar 66.90 65.85

18. Chinese Yuan 10.35 10.15

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SCHEDULE-II

Sl.No. Foreign Currency

Rate of exchange of 100 units of foreign currency equivalent

to Indian rupees

(1) (2) (3)

(a) (b)

(For Imported

Goods)

(For Export Goods)

1. Japanese Yen 61.15 59.75

2. Kenya Shilling

67.50 63.75

Customs Notification No. 55/2016 – Customs (N.T.) dated 21/04/16 ----------------------------------------------------------------- Amendment has been made in Bill of Entry

Regulations, 2011, wherein, word “electronic

declaration” has been substituted by “Electronic

Integrated Declaration” and word “Custom

House Agent Licensing Regulation,2004” has

been substituted by “Custom Brokers Licensing

Regulation,2013”

Customs Notification No. 45/2016 – Customs

(N.T.) dated 01/04/16

----------------------------------------------------------------- Section 41 of the Customs Act Deals with the:- Delivery of export manifests or export report.

The provisions of sections 30 and 41 of the

Customs Act shall apply to vessels carrying

exclusively coastal goods operating from berths

used by vessels carrying imported goods or

export goods, as the case may be and the

person-in-charge of such vessel or his agent shall

deliver to the proper officer, a coastal manifest,

prior to the arrival of the vessel or departure as

the case may be, in the Form as given below:-

http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-nt2016/csnt57-2016.pdf Customs Notification No. 57/2016 – Customs (N.T.) dated 27/04/16 -----------------------------------------------------------------

The Central Government, being satisfied that it is

necessary in the public interest so to do, hereby

exempts vessels carrying exclusively coastal

goods from the provisions of section 92, section

93, section 94, section 95, section 97 and sub-

section (1) of the section 98 of the Customs Act.

Customs Notification No. 56/2016 – Customs

(N.T.) dated 27/04/16

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

Government provide relaxation of maintaining

advice book and inspection of same by the

custom officer to the vessels carrying exclusively

coastal goods from one Indian port to another

port.

Customs Circular No. 14/2016-Customs dated 27/04/16 -----------------------------------------------------------------

Government has hiked the tariff Value of edible

oil, Brass scrap, Poppy Seeds, Areca Nut, Gold

and Silver. The specified value are notified at

http://cbec.gov.in/resources//htdocs-

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For Private Circulations Only 17 The Update –May, 2016, SGCO & Co.

cbec/customs/cs-act/notifications/notfns-

2016/cs-nt2016/csnt60-2016.pdf

Customs Notification No. 60/2016 – Customs

(N.T.) dated 29/04/16

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

Anti-Dumping Duty

CBEC levies definitive anti-dumping duty on

“Normal Butanol or N-Butyl Alcohol”, originating

in, or exported from the European Union,

Malaysia, Singapore, South Africa and USA and

imported into India. The anti-dumping duty

imposed under this notification shall be effective

for a period of five years (unless revoked,

superseded or amended earlier). The Anti-

Dumping duty rates are notified at

http://cbec.gov.in/htdocs-cbec/customs/cs-

act/notifications/notfns-2016/cs-

add2016/csadd13-2016

Customs Notification No. 13/2016- Customs

(ADD) dated 13/04/16

----------------------------------------------------------------- CBEC had extended the anti-dumping duty on

“Barium Carbonate”, originating in or exported

from China PR (People Republic) for a period of

five years. The Anti-Dumping Duty rates are

Notified at:-

http://cbec.gov.in/resources//htdocs-

cbec/customs/cs-act/notifications/notfns-

2016/cs-add2016/csadd14-2016.

Customs Notification No. 14/2016- Customs

(ADD) dated 21/04/16

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

CBEC had extended anti-dumping duty on

imports of “Synchronous Digital Hierarchy

Transmission Equipment” originating in, or

exported from China PR and Israel for a period of

five years with effect from 26 April 2016. The

Anti-Dumping duty rates are notified at

http://cbec.gov.in/resources//htdocs-

cbec/customs/cs-act/notifications/notfns-

2016/cs-add2016/csadd15-2016

Customs Notification No. 15/2016- Customs

(ADD) dated 26/04/16

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

Circulars

Board provide relaxation regarding KYC (Know

your Customer) by this Circular. Board decided

that proof of identity collected at the time of

delivery along with address recorded for delivery

purpose by the courier companies would suffice

for KYC verification in respect of individuals for

import of documents, gifts/samples/low value

dutiable consignment upto the maximum CIF

value limit of Rs.5000/- However, courier

companies must show due diligence in

maintaining the records of proof of address.

Customs Circular No. 13/2016-Customs dated

26/04/16

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

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Instruction:-

The Board has implemented Single window

“Integrated Declaration” from 1st April,2016,

which covers all information required for import

clearance by the other Government agencies.

The importer should submit “Integrated

Declaration” electronically. All related

instruction and guidelines are given at ICEGATE

website.

Instruction No. F.No. 450/147/2015-Cus-IV-

dated 31/03/16

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

Board instructed that now the Courier agencies

who are refusing to book Bonafide gift

consignment for export to India Citing Non

clearance and embargo imposed on such gift

parcels by Indian Customs should be brought

under notice of secretary.

Instruction No. F.No. 450/179/2015- Cus.IV-

dated 11/04/16

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

It has been brought to notice that Customs

Officers are insisting on registration documents

from importers on products which do not fall

under the purview of Legal Metrology Act, 2009

and rules made thereunder.

As per the Instruction issued by CBEC, Now the

officer shall not insist on Registration of

Documents unless it is mandatory.

Instruction No. F.No. 401/69/2016- Cus.III-

dated 22/04/16

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

Board provides that while moving bonded truck

from one Air cargo complex to another complex

,the bond value should be debited form online

running bond. At the same time, there

should not be any delay on the part of officers in

re-crediting the amount at the destination air

cargo complex.

Instruction No. F.No. 401/69/2016- Cus.III-

dated 22/04/16

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

DGFT

Public Notice

Amendment in General Note No.15 for Textiles

(Product Code J):-

In case of Fabric, Flexibility up to +/-10% in GSM

and in case of Blended Fabric, Flexibility up to +/-

3% in count in Import/ Export shall be allowed.

And in case of blended fabric +/-3% variation in

count shall be allowed to the extent amendment

in norms against Advance Authorization/Duty

Free Import Authorization will not be required.

DGFT Public Notice No. 01/2015-2020 dated

06/04/16

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

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For Private Circulations Only 19 The Update –May, 2016, SGCO & Co.

New PSIAs recognized in terms of FTP 2015-20:-

DGFT has notified the Nine Pre –Shipment

Inspection Agencies under the heading “New

PSIAs recognized in terms of FTP 2015-20. The

list of notified PSIAs is notified at

http://dgft.gov.in/Exim/2000/PN/PN16/pn0216.

pdf.

DGFT Public Notice No. 02/2015-2020 dated

08/04/16

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

For Export of Pharmaceuticals and Drug

Consignments, if the Government of the

importing country has mandated specific

requirement, then the exporter has the option of

adhering the same and in such a case, it would

not be necessary to comply with Bar Coding

prescribed by the Government of India.

DGFT Public Notice No. 03/2015-2020 dated

21/04/16

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

Trade Notices:- Non Eligibility of Liquid Glucose under FMS of

FTP 2009-14

Liquid Glucose falling under “Sugar and Sugar

Confectionery” will not be eligible for Focus

Market Scheme benefit. (HS Code 1702)

DGFT Trade Notice No. 01/2016 dated 07/04/16

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

It has been clarified by the department that for

“Tamarind Kernel Powder“ the correct ITC (HS)

Code is 13023290 and on which MIES benefit is

not available.

DGFT Trade Notice No. 02/2016 dated 19/04/16

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

DGFT has imposed Minimum Import Price on

173 Tariff Lines (Vide Not No.38 Dated 05th

February 2016).

Imports /Shipments which are negotiated and

finalized under Irrevocable Letter of Credit (ILCs)

before the said date , these ILCs are required to

be registered with Jurisdictional RAs within a

period of 15 Days . Now the notification has

granted the opportunity to register their ILCs by

30th April 2016.The Importer shall submit their

request along with ANF-2D with prescribed fees

of Rs.2000/-as prescribed for policy relaxation.

DGFT Trade Notice No. 03/2016 dated 21/04/16

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

Notifications

Requirement of Certification regarding Export

of Betel Leaves:-

Export of Betel Leaves to European Union is

Subject to registration with Agricultural and

Processed Food Products Export Development

Authority (APEDA)

(Tariff Item HS Code-4049040)

DGFT Notification No. 01/2016 dated 08/04/16-

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

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For the First time, the Definition of E- Commerce

has been Introduced:-

E-Commerce means Buying and Selling of Goods

and Services, including Digital Products,

conducted over Digital and electronic Network.

For the purposes of Merchandise Exports from

India scheme (MEIS) e-Commerce shall means

the export of goods hosted on a website

accessible through the internet to a purchaser.

While the dispatch of goods made Through

Courier or Postal Mode, as specified under the

MEIS, the payment for Goods purchased on E-

Commerce Platform shall be done through

International debit/Credit cards as per the RBI

Circular No.16 dated September 24, 2015

DGFT Notification No. 02/2016 dated 11/04/16

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

Import of Dogs is allowed only for the following

Specific purposes:-

a) For the Internal Security by the

Defense and Police Force.

b) Dogs imported by the R&D

Organizations for conducting

research with the recommendation of

CPCSEA .

c) Pet Dog with valid Pet Book and relevant

records/documents in the name of the

importer.

Effect of this notification is that Import of

Commercial dog for breeding or any other

commercial activity is not permitted.

DGFT Notification No. 03/2016 dated 25/04/16

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

The exporter shall be categorized as status

Holder on achieving the export performance

during the current and previous three financial

years.

For Gems & Jewellery Sector the existing export

Performance shall continue.(i.e. Current financial

and previous two financial years).

DGFT Notification No. 04/2016 dated 29/04/16

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

Updation has been made in the SCOMET List:-

Special Chemicals, Organisms, materials,

Equipment and Technologies (SCOMET List)

http://dgft.gov.in/Exim/2000/NOT/NOT16/noti0

516.pdf

DGFT Notification No. 05/2016 dated 29/04/16

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

CENTRAL EXCISE

Notifications

Tariff

Condition for availing exemption against serial

No 305, the entry in column (5) shall be omitted.

Notification No.12/2012 dated 17th March 2012

has been amended that Parts and Testing

Equipment, for Maintenance repair, and

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overhauling (MRO) of Aircraft that the Condition

requirement it should be approved to the

satisfaction of an officer not below the rank of

Deputy Commissioner of Central Excise or the

Assistant Commissioner of Central Excise has

been Omitted.

Central Excise Notification No. 19/2016 – NT

dated 26/04/16

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

Non-Tariff

Amendment to Rule 6(3) of CENVAT Credit

Rules, 2004

All the manufacturers, manufacturing taxable as

well as exempted goods or service providers

providing taxable as well as exempted services

have been provided an option to avail full

CENVAT Credit in respect of common

inputs/services provided an amount equal to 6%

of value of exempted goods or 7% of exempted

services has been paid.

Due to this amendment, more amount will have

to be paid under this option as compared to the

past.

Central Excise Notification No. 23/2016 – NT

dated 01/04/16

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

Amendment to Rule 7B of CENVAT Credit Rules,

2004

Rule 7B of CENVAT Credit Rules, 2004 provides

for distribution of credit on inputs by warehouse

of manufacturer. The factory premises of

manufacturer are allowed to take credit on

inputs received coupled with invoice from its

warehouse.

Now, the warehouse of manufacturer is allowed

to take credit on inputs bought, on the basis of

documents specified under Rule 9.

Central Excise Notification No. 23/2016 – NT

dated 01/04/16

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

Amendment to Rule 4 of CENVAT Credit Rules,

2004

As per Rule 4 of CENVAT Credit Rules, 2004

CENVAT Credit on inputs and input Services are

restricted to be availed within 12 months from

the date of invoice. Now, the time limit for

availment of CENVAT Credit is not applicable for

services provided by Government, Local

Authority or any other person by way of

assignment of right to use natural resources.

CENVAT Credit of Service tax paid in a financial

year on charges (one–time upfront or in

instalments) payable for the assignment of right

to use natural resources by the Government ,

Local Authority or any other person, shall be

spread evenly over a period of three years.

In case aforesaid rights are reassigned to

another person for a consideration then balance

CENVAT Credit on rights procured is available in

the financial year of reassignment, subject to

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For Private Circulations Only 22 The Update –May, 2016, SGCO & Co.

maximum limit for balance of CENVAT Credit

available shall be equivalent to service tax

payable on the consideration charged for

further assignment.

Central Excise Notification No. 24/2016 – NT

dated 13/04/16

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

Circulars

There has been plethora of classification

disputes prevailed on classification of products

among micronutrients, multimicronutrients,

plant growth regulators and fertilizers. In order

to put rest to the controversy, an opinion of

Indian Agricultural Research Institute (IRAI) has

been obtained by CBEC on various Issues.

The circular explains nature, usage and

classification of aforesaid products, taking into

consideration opinion received from IRAI,

Central Excise Tariff and explanatory notes of

HSN etc.

http://www.cbec.gov.in/resources//htdocs-

cbec/excise/cx-circulars/cx-circulars-

2016/circ1022-2016cx.pdf

CBEC Circular No. 1022/10/2016-CX dated

06/04/16

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

The Circular provides clarification in respect of

the excisibilty of re-refined waste oil or used

lubricating oil. The Board has examined the

process, classification and characteristic of

manufacture for the product.

The emphasis was made to chapter note 4 of

chapter 27 which provides for deeming fiction on

manufacture of lubricating oils and lubricating

preparations falling under tariff ID 2710 and

observed that other goods falling under tariff ID

2710 are not covered by the Chapter note.

The carrying out one of the processes listed in

the above chapter note would amount to

manufacture and central Excise Duty would be

applicable.

CBEC Circular No. 1024/12/2016-CX dated

11/04/16

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

The time limit for taking central excise

registration of an establishment by a jeweler is

being extended up to 01.07.2016. Though, the

liability for payment of central excise duty will be

with effect from 1st March, 2016, the assesse

jewelers may make the payment of excise duty

for the months of March, 2016; April, 2016 and

May, 2016 along with the payment of excise

duty for the month of June, 2016.

CBEC Circular No. 1026/14/2016-CX dated

23/04/16

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

Circular on Excisibilty of Bagasse, aluminum /Zinc

dross has been Withdrawal.

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For Private Circulations Only 23 The Update –May, 2016, SGCO & Co.

Now, Bagasse, Dross and Skimmings’ of non-

ferrous metals or any such byproduct or waste,

which are non-excisable goods and are cleared

for a consideration from the factory need to be

treated like exempted goods for the purpose of

reversal of credit of input and input services, in

terms of rule 6 of the CENVAT Credit Rules,

2004.

CBEC Circular No. 1027/15/2016-CX dated

25/04/16

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

SERVICE TAX

Notifications

In Rule 7 of the Point of Taxation Rules, 2011 3rd

Proviso has been inserted which provides that in

case of payment of service tax under reverse

charge mechanism where there is change in

liability or extent of liability of service recipient,

Point of Taxation shall be the date of issuance of

invoice in cases where the service has been

provided and the invoice has been issued before

date of such change but payment of such invoice

has not been made on such date.

Service Tax Notification No. 21/2016 dated

30/03/16

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

Amendment in MEGA Exemption:-

CBEC has exempt following Services to be

provided or provided by Government/ Local

Authority to or in relation to:-

1. Service to another Government or Local

Authority.

2. Service of Issuance of Passport, Driving

License, Birth Certificate, and Death Certificate

to an individual who may be carrying on a

business/profession etc.

3. Service whose gross amount charged does not

exceed Rs.5000/-

4. Testing, calibration, safety check or

certification relating to protection or safety of

workers, consumers or public at large, required

under any law for the time being in force.

5. Service of assignment of right to use natural

resource by an individual farmer for the purpose

of Agriculture.

6. Service of allowing business entity to operate

in telecom business or radio frequency spectrum

etc during the financial year 2015-16.

7. Any Function entrusted to Panchayat under

Article 243G of Constitution.

8. Fines, penalties or Liquidated damages in

relation to tolerating nonperformance of

Contract payable to Government or Local

Authority.

9. Registration required under any law for the

time being in force.

10. Assignment of right to use any natural

resource where such right to use was assigned

by Government or local authority prior to 1 April,

2016.

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For Private Circulations Only 24 The Update –May, 2016, SGCO & Co.

11. Officers after office hours or on holidays for

inspection or container stuffing or such other

duties in relation to import / export of cargo on

payment of Merchant Overtime charges (MOT).

Service Tax Notification No. 22/2016 dated

13/04/16

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

Rule 6(2)(iv) of the Service Tax (Determination of

value Rules, 2006) provides that the value of any

taxable service, as the case may be, does not

include interest on delayed payment of any

consideration for the provision of services or sale

of property, whether moveable or immoveable.

The Proviso to rule 6(2)(iv) has been inserted

which provides that this clause shall not apply to

any service provided by Government or a Local

Authority to a business Entity where payment

for such service is allowed to be deferred on

payment of interest or any other consideration.

Service Tax Notification No. 23/2016 dated

13/04/16

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

In Rule 7 of the Point of Taxation Rules 4th

Proviso has been inserted which provides that in

case of

services provided by the Government or local

authority to any Business Entity, the Point of

Taxation shall be earlier of the following:-

a)Payment for such services is made.

b) Any payment, part or full, in respect of such

services becomes due, as specified in the

invoice, bill, challan or any other document

issued by the Government or local Authority

demanding such payment.

Service Tax Notification No. 24/2016 dated

13/04/16.

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

MVAT

Notifications

New electronic Forms 101,103 and 105 is issued

with effect from 1 April 2016 for Registration

and Cancellation of Registration. List of

documents that are required to be uploaded for

Registration are given in Annexure A. Both form

and annexure can be viewed at

http://mahavat.gov.in/Mahavat/MyFold/DOWN

LOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/K

NOW_NOTIFI_MVAT_05_04_16_3_8_26PM.pdf .

VAT/ADM 2016/1B/ADM-8 dt 28th April 2016

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

The Government of Maharashtra hereby

exempts fully from payment of tax with effect

from the 1st April 2016, the transfer of property

in goods, involved in the sizing and warping of

yarn, subject to the following conditions and

restrictions which can be viewed at :-

http://mahavat.gov.in/Mahavat/MyFold/DOWN

LOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/K

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NOW_NOTIFI_MVAT_05_03_16_9_34_59AM.pd

f.

VAT 1516/CR 62/Taxation-1 Dated 29 Apr. 2016

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

New Entry has been inserted which descripts

that Tax on slabs of Marble and Granite is

taxable at the rate of 12.5%

MVAT Notification No. VAT/1516/CR.56 dated

01/04/2016

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

Dealer purchasing mobile phone, cellular

headset for cellular network, wireless network or

Goods covered under the entries 13 and 14 of

the “Schedule D “ can claim set off in respect of

said goods to the extent of liability. Also Dealer

engaged in the business of transferring right to

use passenger motor vehicle can claim set off of

tax paid on purchase of such motor Vehicle to

the extent of tax liability.

MVAT Notification No. VAT/1516/CR.53 dated

01/04/2016

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

Employer being an Educational Institution which

receives grant in aid from State Government is

exempted from late fee of PT Return for any

period up to March 2016 after fulfilling

prescribed conditions as mentioned in the

notifications.

No. PFT 1216/ C.R. 26/ Taxation-03 dt.

02/04/2016

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

Government has substituted the Entry No 51 of

Schedule “A”, sub Entry (vii), with Towel, Which

means that Towels are taxable at NIL Rate of

Duty.

MVAT Notification No. VAT/1516/CR 61 dated

20/04/2016

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

Government has amended Form III (E) of CST Act

.The new form is applicable from 1st April, 2016

and can be viewed at: -

http://mahavat.gov.in/Mahavat/MyFold/DOWN

LOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/K

NOW_NOTIFI_MVAT_05_03_16_2_32_41PM.pdf

CST-1516/C.R.-45/ Taxation-1dt. 22ndApril 2016

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

The principal contractor desiring to transfer the

credit to the sub-contractor shall file a return in

Form 424A electronically on the website.

After filing of such return, the principal

contractor shall issue a certificate in Form 402A

to the sub-contractor for transferring such

credit. Such principal contractor shall maintain a

separate account in Form 404 A, for each year,

Containing details of credit, so transferred.

The application for Advance Ruling purposes of

sub-section (1) of section 55 shall be made in

Form 703 along with prescribed fees, by a

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person, to the Commissioner on the following

questions, whether, for the purposes of this Act.

For details view the below mentioned link:-

http://www.mahavat.gov.in/Mahavat/MyFold/D

OWNLOADS/NOTIFICATIONS/KNOW_NOTIFI_MV

AT/KNOW_NOTIFI_MVAT_05_04_16_2_55_18P

M.pdf

VAT 1516/CR 64/Taxation-1dt 29th April 2016

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

MAHARASHTRA TRADE CIRCULAR

HIGHLIGHTS (Dated 22/04/16)

Amendments to the Composition Scheme

Notification u/s 42:-

Application for Composition Scheme:-

• It has been clarified by the Trade

Circular that application for the

composition Scheme shall be made by

a dealer in Mumbai and Pune to the

joint Commissioner of the concerned

Nodal Division.

• Rest of the Dealers in Maharashtra

shall make an application to the Joint

Commissioner as earlier.

• For retailers who desires to opt in or

opt out of the retailer composition

scheme is required to upload

application in Form 4A or Form 4B,

respectively on the Departments

Website.

• Certain amendments have been made,

w.e.f. 1st April 2016 by Notification

dated 30th March 2016 and the said

amendments have been explained by

Circular for various Dealers.

• The Revision in the tax rates and

amendments to MVAT schedule

entries are explained in part I of the

circular Which can be viewed at:-

http://www.mahavat.gov.in/Mahavat/MyFold/KNOWLEDGE%20CENTER/TRADE%20CIRCULARS/DateWise/KNOW_TRADEC_DW_MVAT/KNOW_TRADEC_DW_MVAT_04_22_16_0_58_3PM.pdf

Circular No. VAT.09 T of 2016 dated 22/04/16

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

General changes :-

• From F.Y. 2016-17 onwards, all the

registered dealers are required to file

Invoice Wise details of sales and

purchase in the Return annexures J1 &

J2 .

• Now the Dealer is allowed to file

Multiple revised returns. The time limit

for filling of Revised Returns will be the

Due date of Filling Vat Audit report.

• Amendments made in the Budget now,

the Contactor Dealer will be allowed to

transfer the credit of WCT TDS to sub-

Contractor.

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• Amnesty Schemes for Dues under Acts

Administered by the Sales Tax

Department:-

• Amnesty Schemes for Dues under Acts

Administered by the Sales Tax

Department:-

• The Dealer Who has filed an Appeal

against recovery of Disputed dues is

stayed by the appellate authority , can

avail a benefit of Amnesty Scheme

Period Before

01/04/2005

From 01/04/2005 to

31/03/2012

If the dealer pays

the disputed tax

amount in full,

then no interest &

penalty is

required to be

paid.

If dealer pays

disputed tax amount

and 25% of Disputed

interest, the

corresponding

balance interest

and Penalty shall be

waived.

• The Benefit of Amnesty scheme Shall

be available from 01st April 2016 to

30th September 2016.

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

Judicial Rulings:-

1) Mere Mentioning of incorrect Assessee code

does not amount to Non –

Payment of duty.

FACTS

The Appellant by oversight deposited excise duty

in an incorrect assesse code. The fact was

informed to the department with a request to

rectify the same. However, the department

rejected the request and issued Show Cause

Notice for recovery of duty with penalty and

interest . The said notice was challenged by the

appellant by the filing writ petition.

HELD

The High Court held that merely mentioning of

an incorrect code does not amount to non –

payment of duty as government had received

payment in that incorrect code and this fact was

not denied.Further, it was noted that there was

no separate duty liability under that code.

Accordingly, the court directed the department

accounting division to give due credit.

Devang Paper Mills Pvt Ltd Vs UOI (Gujarat High

Court)

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

2) CENVAT credit of service tax paid on renting of

branch offices, health insurance of employees

upto 31/03/11, construction services upto

31/03/2011, travel agent services and interior

decorator and architect service is allowable.

FACTS

The Appellant paid rent for their branch offices

which assisted in procurement of orders and

delivery of goods and was used for provision of

erection, commissioning and repairs services.

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Insurance services were availed in relation to

employees who travel for business meetings,

sales, training etc. and for loss or damage to the

goods .Further, credit was availed on

construction services for dismantling of building

and construction of a storage shed and on travel

for the purpose of business meetings, sales etc.

credit was also availed on interior decorator and

architects services in relation to branch offices

and showrooms. The department contended

that the service of renting was utilized beyond

the place of removal and the other services had

no nexus with the manufacturing activity and

thus credit was denied.

HELD

The Tribunal relying on the decision of Oracle

granite Ltd. wherein CENVAT credit on renting of

immovable property for marketing offices was

allowed, it was held that such service is eligible

for CENVAT credit and also considering that the

premises were used for provisions of services

credit was allowed.

Further relying on the decision of Stanzen

Toyotetsu India P. Ltd. credit on the health

insurance of employees was allowed upto

01/03/2011. Insurance for loss or damage of

goods was allowed to the extent they covered

journey of goods upto the place of removal. In

relation to construction services it was noted

that as per Rule 2(l) of the CENVAT Credit Rules,

2004 input services includes services in relation

to setting up

modernization, renovation or repairs of a factory

and relying on the decision of Commissioner of

C.Ex.Delhi III vs Bellsonica Auto Companies India

Pvt Ltd. credit was allowed. Further relying on

the decision of goodluck Steel Tubes Ltd. credit

was allowed on travel agents services. Credit on

interior decorator and architects services was

allowed being in the nature of modernization/

renovation or repair of factory or an office to

such factory or premises.

M/s. Carrier Air-Conditioning and Refrigeration Ltd. vs Commissioner of Central Excise, Delhi-IV -----------------------------------------------------------------

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MCA UPDATES

Companies Filing of Documents &Forms in XBRL Language Amendment Rules, 2016

The Central Government has made amendments

in Companies (Filing of Documents and Forms in

Extensible Business Reporting Language) Rules,

2015 providing exemption to banking,

insurance, power sector, non-banking financial

companies and housing finance companies to file

financial statements under XBRL.”.

Dated 04th April, 2016

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

Relaxation of additional fees and extension

of last date of filing of various e-Forms

under the Companies Act

Reference No- General Circular No 03/2016

Due to the launch of the new MCA system, a

number of stakeholders have faced issues and

representations have been received from

stakeholders to resolve the issues including, for

allowing waiver of additional fee till the new

system stabilizes.

In view of the above, Ministry of Corporate

Affairs has decided to relax the additional fee

payable on e-forms which are due for filing by

companies between 25th March 2016 to 30th

April, 2016 as one time waiver of additional fee

and it is also clarified to stakeholders that if such

due e-forms are filed after 10.05.2016, no such

relaxation shall be allowed.

Dated 12th April, 2016

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

Clarification with regard to companies

(Accounting Standards) Amendment Rules,

2016

The Ministry of Corporate Affairs vide

notification dated 30/03/2016 amended the

Companies (Accounting Standards) Rules, 2016 .

In this regard stakeholders have sought

clarifications with regard to the accounting

period for which the accounts would need to be

prepared in accordance with these amended

Accounting Standards Rules.

The matter has been examined in the Ministry

and it is hereby clarified that the amended

Accounting Standards should be used for

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Preparation of accounts for accounting periods

commencing on or after the date of notification.

Dated 27th April, 2016 -----------------------------------------------------------------

New instructions for preparation of B/S &

P/L of a Company

In excercise of the powers conferred by the

Companies Act, 2013 the Central Government

has made amendments to Schedule III of the said

Act relating to General instructions for

preparation of Balance Sheet and Statements of

Profit and Loss of a Company.

Kindly refer the below-mentioned link for the

complete study of the new instructions for

preparation of B/S & P/L of a Company:-

http://mca.gov.in/Ministry/pdf/Notification_04072016.pdf Dated 06th April, 2016. -----------------------------------------------------------------

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UPCOMING DUE DATES May 2016

June 2016

INCOME TAX INCOME TAX 7th - TDS/TCS payment for April 2016. 7th - TDS/TCS payment for May 2016

7th - Filing of 15G/15H received in the mont of April 2016. 7th - Filing of 15G/15H received in the month

of May 2016.

15th -

TDS/ TCS Statements in form 24Q, 26Q, 27EQ, 27Q for quarter of March 2016 15th -

First installment of Advance Income Tax for all assessee’s (Company & Non Company) for AY 2017-18

22nd - Issue of TDS Certificate u/s 194-IA

30th - Issue of TDS Certificate (non-salary) / TCS Certificates

31st - Issue of Salary Certificate in Form 16 for FY 2015-16

MVAT/CST/PT MVAT/CST/PT

10th -

MVAT/CST Half Yearly return filing for Oct’15 to Mar’16 incase where the entire liability is paid on or before the due date for the dealers who are eligible for filing Audit Report in Form 704

21st - MVAT/CST payment for the month ending May’16

21st - MVAT/CST payment for the month ending Apr’16 21st - Works Contract TDS payment for

month of May’16 If deducted.

21st - Works Contract TDS payment for month of Apr’16 If deducted. 30th - PT payment if salary of May’16 paid in

June’16

31st - PT payment if salary of Apr’16 paid in May’16 30th - PT return for the month of May’16, if

salary of May’16 paid in June’16

30th -

MVAT/CST monthly/quarterly return for Mar’16 in case where the entire liability is paid on or before the due date for the dealers who are eligible for filing Audit Report in Form 704

30th -

MVAT/CST quarterly return for the period Jan’16 to Mar’16 for the dealer who are not liable to file Form -704 if the entire liability is paid on or before due date

31st - PT return for the month of Apr’16, if salary of Apr’16 paid in May’16 30th - Due date for filing E-ANNEXURE with

the last MVAT return of financial Year

30th -

MVAT/CST Half Yearly return filing for Oct’15 to Mar’16 in case where the entire liability is paid on or before the due date for the dealers who are not liable for filing Audit Report in Form 704

30th - MVAT/CST monthly return for May’16 in case where the entire liability is paid on or before the due date

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SERVICE TAX

SERVICE TAX

5/6th -

Service Tax monthly payment (other than sole proprietor & Partnership Firms) for Apr’16*

5/6th - Service Tax monthly payment (other than sole proprietor & Partnership Firms) for May’16*

30th -

Due date for making payment of difference of amount determined of Cenvat Credit as per rule 6(3) of CCR ,2004

EXCISE

EXCISE

5/6th - Excise Payment for Apr’16* 5/6th - Excise Payment for May’16* 10th - Excise Return for (ER-1) Apr’16

10th - Excise Return for (ER-1) May’16

10th - Excise return (ER-2) for Apr’16 (Applicable for EOU’s) 10th - Excise return (ER-2) for May’16

(Applicable for EOU’s) 10th - Excise Return (ER-6) for Apr’16** 10th - Excise Return (ER-6) for May’16** COMPANY LAW, RBI, & SEBI

COMPANY LAW, RBI, & SEBI

7th -

File return of exposure to capital markets in Form NBS-6(Para 22 of Prudential Norms,2007 RBI)

7th -

File return of exposure to capital markets in Form NBS-6 (Para 22 of Prudential Norms,2007 RBI)

7th -

File a monthly return in prescribed format (NBFC-ND)(Circular No.57 of NBFC Supervision Div. RBI)

7th - File a monthly return in prescribed format(NBFC-ND)(Circular No.57 of NBFC Supervision Div. RBI)

30th -

The listed entity shall submit quarterly and year-to-date standalone financial results to the stock exchange within forty-five days of end of each quarter, (other than last quarter) along with Limited Review Report or Audit Report as applicable

15th -

File Prudential Norms return form NBS – 2 2007 (Para – 21, NBFC – D, Prudential Norms Director)

(Regulation 33 - Financial Results :-SEBI (Listing obligations and disclosure Requirements ) Regulations 2015)

Assessee who has paid service tax or excise of more than Rs 1 Lacs in the P Y by way of cenvat credit or cash is liable to pay service tax electronically by 6th of the following month. --Applicable for assessee who has paid excise duty of Rs 1 crore or more in preceding F.Y

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M u m b a i • V a d o d a r a

Disclaimer

This newsletter is prepared strictly for private circulation and personal use only. The newsletter is for general guidance on matters of interest only and does not constitute any professional advice from us. One should not act upon the information contained in this newsletter without obtaining specific professional advice. Further, no representation or warranty (expressed or implied) is given as to the accuracy or completeness of the information contained in this newsletter. This newsletter (and any extract from it) may not be copied, paraphrased, reproduced, or distributed in any manner or form, whether by photocopying, electronically, internet, within another document or otherwise, without the prior written consent of S G C O & Co

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Tel.: +91 22 6625 6363 Fax: +91 22 6625 6364 E-Mail: [email protected] Web: www.sgco.co.in