Updates: Income tax, GST & Company Law (23 June 2017)

Updates: Income tax, GST & Company Law (23 June 2017)

INCOME TAX

1. Transfer of shares by company in pursuance of family settlement isn’t exempt from capital gains(Where assessee company was under control of members of a family, who were a part of a family settlement, but was a separate legal entity being incorporated as a limited company, transaction of transfer of shares by assessee-company amounted to transfer and would be covered within meaning of section 2(47) so as to be assessable to capital gains tax) [2017] 82 taxmann.com 397 (Bombay)

2.Leasing income from ready to move office in Gurgaon to Agilent held as business income (Rental income earned from letting of building along with fittings and fixtures (being complex one) would be considered as income from business) [2017] 82 taxmann.com 184 (Delhi - Trib.)

3. Engineers can be considered as workmen for getting sec. 80JJAA relief ([2017] 82 taxmann.com 264 (Bangalore - Trib.)

4.Depreciation under section 32(1)(iii) is available only to power generating units (Since depreciation allowance under section 32(1)(iii) applies only to undertaking engaged in generation and distribution of power,pharmaceuticals company was not entitled to write off value of assets under said section, it would only be entitled to depreciation under section 32(1)(i))) [2017] 82 taxmann.com 262 (Delhi)/[2017] 394 ITR 478 (Delhi).

Goods and Service Tax 

1.Companies reduce supplies ahead of transition to GST

(Source - http://timesofindia.indiatimes.com [22-06-2017])

2.No festive cheer: Car, appliances sales likely to face the heat post GST 

(Source - http://www.business-standard.com [22-06-2017]

3.Govt launches webpage to facilitate IT, electronic goods taxpayers 

In order to ensure preparedness for the Goods and Services Tax (GST) roll-out from July 1, the Ministry of Electronics & Information Technology has launched a dedicated web page for facilitating tax payers with regard to addressing issues related to IT services and electronic goods. "The web page can be accessed through ministry's web portal http://meity.gov.in/. Individuals, companies and entrepreneurs in IT and electronics sector can visit the web page for sector-specific information," an official statement said here on Wednesday. The web page also enables filing of grievances in relation to the implementation of GST, it added. Source -http://www.business-standard.com [21-06-2017]

4.Retailers will file single GST return every month: Hasmukh Adhia 

Days before the rollout of the landmark GST, the government on Wednesday sought to dispel the notion that the new tax regime will be cumbersome and compliance-heavy, saying taxpayers need to file only one return every month, similar to what they presently do.In an interview to PTI, Revenue Secretary Hasmukh Adhia said the notion that assessees will have to file three returns every month is unfounded and retailers or B2C dealers need not give invoice wise details every month. Adhia said retailer and B2C suppliers need not worry about the return filing procedure as they have to file only turnover wise detail in GSTR-1.While only B2B dealers have to file both GSTR-1 and GSTR- 2, retailers do not need to file the GSTR-2 as they have to only match with what the dealer has uploaded on the GST Network.As regards traders, manufacturers or eateries opting having turnover up to Rs 75 lakh and have opted for composition scheme, they will just have to give their total turnover in GSTR-1 and no invoice wise detail is required. These businesses will have to file just one return every three months, Adhia said.Such returns are to be filed by 18th of the month in the succeeding quarter. Source - http://www.business-standard.com [21-06-2017]

5.Move to defer GST rate revision talks by 3 months to hit 80% garment units (Source - http://www.business-standard.com [21-06-2017])

COMPANY LAW

1. MCA provides relaxation on auditor’s term for private cos. having paid up share capital of 50 crore (In the Companies (Audit and Auditors) Rules, 2014, in rule 5, in clause (b), for the word “twenty”, the word “fifty” shall be substituted MCA notification dated 22 June 2017)