Updates-Income Tax, GST & Company Law (01 June 2017)



Updates-Income Tax, GST & Company Law (01 June  2017)

Spirituality
Durena hy avaram karma
Buddhi-yogad dhananjaya
Buddau saranam anviccha
Krpanah phala-hetavah  (Text 49, Ch2, Contents of Gita Summarized)
                                  
Meaning:  O Dhananjaya, keep all abominable activities far distant by devotional service and in that consciousness surrender unto the Lord. Those who want to enjoy the fruits of their work are misers.


Durena: discard it at a long distance; hi: certainly,   avaram: abominable,  karma: activity, Buddhi-yogat: on the strength of Krsna consciousness(Supreme consciousness)  dhananjaya: O conqueror of wealth, Buddhau: in such consciousness;  saranam: full surrender,  anviccha: try for,Krpanah: misers,  phala-hetavah: those desiring furtive results

Refer Link http://inspireourself.blogspot.in

Income Tax

1. Form 15G/15H to be filed once in a year and not every time when payment is due; CBDT clarifies (Refer Notification no. 06/2017 dated 30 May 2017)

2. Due date of furnishing Statement of Financial Transaction extended to June 30, 2017(Refer CBDT order dated 31 May 2017,  https://incometaxindia1.blogspot.in/2017/05/cbdt-issues-clarification-on-furnishing.html)
3. Enhancing value of stock-in-trade by crediting revaluation reserve isn’t sham transaction to avoid tax(Where assessee transferred a plot from current asset to fixed asset account and valued same at market rate, there would be no receipt or accrual of income to assessee) [2017] 81 taxmann.com 320 (Allahabad)

4. Bank guarantee commission couldn't be treated as interest for sec. 14A disallowance: ITAT (1.Bank guarantee commission is not in nature of interest expenditure; hence, does not warrant disallowance under section 14A//   2. Income from investments in foreign Joint Venture being not exempt from tax, said investment was not needed to be considered for disallowance under section 14A, read with rule 8D // 3. Where no disallowance was made towards leave encashment following decision of jurisdictional High Court, same could not be held erroneous// 4. Where details of loss in trading of shares on self account, scrip wise profit and loss, etc. showed same to be normal business loss, same could not be held to be arising from speculative business)  [2017] 81 taxmann.com 334 (Cochin - Trib.)

5. CBDT allows filing of Statement of Financial Transaction at TIN facilitating center (Refer 07/2017 dated 30 May 2017)

6. Advance for clearing home loan of director wasn't deemed dividend if his house used as collateral for OD facility (Where company had advanced loan to assessee-director to clear housing loan availed on his properties so that said properties could be pledged to acquire higher overdraft facility by company, advance being made for business advantage of company would not attract deeming provision of section 2(22)) [2017] 81 taxmann.com 323 (Visakhapatnam - Trib.)

7. Genuineness of foreign purchase couldn't be doubted merely because creditors remained unpaid (Where in scrutiny, assessee produced all materials proving genuineness of foreign purchase, merely because purchase amount remained outstanding for long, purchase could not be doubted to initiate reassessment)  [2017] 81 taxmann.com 336 (Gujarat)

8. Payment made to labour working under direct supervision of assessee won't attract sec. 194C TDS (Payments made to individual labourers, under direct supervision of assessee, were not liable for TDS under section 194C as there existed employer-employee relationship) [2017] 81 taxmann.com 332 (Kolkata - Trib.)



Goods and Service Tax (GST)

1. 28% GST detrimental to the existence of amusement park industry (Source - www.indiainfoline.com [30-05-2017])

2. GST: FAQs Series 20 : GST Payment of Taxes (Supported with Statutory provisions & Rules) (Refer http://gstindia1.blogspot.in/2017/05/gst-faqs-series-20-gst-payment-of-taxes.html)

3. Not ruling out rationalisation of GST rates, says Hasmukh Adhia (Source - http://www.business-standard.com [30-05-2017])
4. GST: State revenues to rise by Rs 40,000 cr, says Standard Chartered (Source - http://www.business-standard.com [31-05-2017)
5.  3.5 billion invoices every month! All about the technology that GST will bank on from July(Source - http://economictimes.indiatimes.com [30-05-2017]).
6. Electrical accessory firms seek 12% GST levy, not 28%  (Source- http://www.business-standard.com/ [31-05-2017]).
7. Ethanol buy to knock back OMCs by Rs 95 cr in GST regime (Source- http://www.business-standard.com/ [31-05-2017]).
8. GST: 5% for gold, 12-18% for biscuits; no exemption for handicrafts likely(Source- http://www.business-standard.com/ [31-05-2017]).

Refer Link for regulatory updates on Income tax, GST, Company Law, FEMA: 

1. https://incometaxindia1.blogspot.in 
2.  http://gstindia1.blogspot.in
3. http://secretarialandcorporatelaws.blogspot.in
4. https://femanfcra.blogspot.in



Bipul Kumar
Business Consultant
Email : businesssosimple@gmail.com
Mob.: 9560084833
H-9, Hauz Khas,
New Delhi-110016

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