August Terror has no Profession

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Nicholas McCormick
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1 August 2015 Serving Since 1968 Lunawat Bulletin Market Watch Sensex : : Terror has no Profession Nifty : : Inside.. Compliance Due Dates 2 Income Tax 3-4 Service Tax 4 Corporate Law 5 Service Tax & GST 5 On 30th July 2015 Yakub Memon was hanged to death. It was rumoured in social media that he is a Chartered Accountant. He cleared the Chartered Accountancy course but did not practice the profession. I hereby categorically state after confirming from the institute (ICAI) that he is not a CA since Every now and then when a CA does any unworthy act which is not in the course of his profession, the media cries foul that a CA did it. Does that person did the crime while performing his duties as a professional? The answer obvious is no. Why does the media target the CA profession specifically where the act committed by him is not in his professional capacity? I strongly object to such statements and news. The act should be condemned, discussed or criticised not the profession. CA. Pramod Jain Whenever a person commits any crime he does not belong to any profession or religion. Any person who acts against our country is not to be linked to any Profession or Religion. In the same breath I want to profess that Chartered Accountancy is one of the noblest professions and has been held in very high esteem ever since. It is profession that is a partner in the nation building. That is why media takes immediate note of any act unbecoming of a chartered accountant. As a responsible professional the Chartered Accountants adhere to the basic precincts on which the profession has been known for and has thrived over the years, Ethics and Integrity not only in discharging the professional duties but also as responsible individual citizens. D-VAT 6 Others 7 Lunawat Updates Lunawat & Co. Chartered Accountants 8 India's true potential of GDP growth rate lies somewhere near 10%: Moody's "India's negative output gap is showing little signs of closing in Though the economy has been in a cyclical upswing since late 2014, it has failed to gain broader momentum, global rating firm," Moody's said in a report."green shoots are slowly emerging, but the government's failure to deliver promised reforms is the major impediment. India's political infighting is denting business confidence," says the Moody's report authored by Faraz Syed. He further added that key reforms such as the land acquisition bill, flexible labour laws, and the goods and services tax have failed to pass parliament. And given the political seesaw, these are unlikely to be delivered until later this year or even For Private Circulation Only

2 Lunawat Bulletin Compliance Due Dates Due Date Related to Particulars (Tuesday) (Thursday) (Friday) DVAT File DVAT & CST quarterly return in electronic form for the quarter ended June Date extended from to SERVICE TAX Deposit Service Tax for the month of July 2015 for Company Assessee & for the quarter ended on for Other Assessees. DVAT Issue of TDS certificates for the tax deducted at source under Rule 59(2) (Friday) (Saturday) TDS/TCS (Income Tax) EPF Deposit TDS/TCS for deductions/collections made during the month of July Deliver copy of Form 15G/15H to CCIT/CIT for forms received in month of July2015. Deposit PF under Employees Provident Fund & Misc. Provision Act, 1952 deducted for the month of July (Saturday) DVAT Deposit tax deducted at source under DVAT Act for the month of July (Saturday) (Friday) TDS/TCS (Income Tax) ESI Quarterly TDS certificate for the quarter ending June 30, 2015 (in respect of tax deducted for payments other than salary) by a person being an office of the Government. Deposit ESI under Employees State Insurance Act, 1948 deducted for the month of July (Friday) DVAT Deposit DVAT and CST for the month ended July (Saturday) TDS/TCS (Income Tax) Issue of TDS Certificate for tax deducted under Section 194-IA in the month of July, (Monday) DVAT Due Date of Online Filling of DP-1 for all registered dealers (Monday) INCOME TAX File Annual information return under section 285BA for the financial year Due date for filing returns of income-tax and wealth tax for the assessment year other than a company; whose books of account are not required to be audited. LIST OF HOLIDAYS DATE DAY HOLIDAY Saturday Independence Day Saturday Raksha Bandhan Page 2

August 2015 Income Tax Explanatory Notes on Provisions relating to the Black Money Act The Black Money (Undisclosed Foreign Income and Assets) & Imposition of Tax Act, 2015 Act as passed by the

3 August 2015 Income Tax Explanatory Notes on Provisions relating to the Black Money Act The Black Money (Undisclosed Foreign Income and Assets) & Imposition of Tax Act, 2015 Act as passed by the Parliament and received the assent of the President on 26 th May The Act contains provisions to deal with the menace of black money stashed away abroad. It, inter alia, levies tax on undisclosed assets held abroad by a person who is a resident in India at the rate of 30% of the value of such assets, provides for a penalty equal to 90% of the value of such asset, and also provides for rigorous imprisonment of three to ten years for wilful attempt to evade tax in relation to a undisclosed foreign income or asset. In the explanatory notes, the following provisions of the act have been explained: 1. Scope of compliance window 2. Time limits for declaration and making payment 3. Form for declaration 4. Declaration not eligible in certain cases 5. Circumstances where declaration shall be invalid 6. Effect of valid declaration Authorization to issue Tax-Free Bonds Central Government has authorized the following entities to issue tax-free, secured, redeemable, non-convertible bonds during the financial year , aggregating to amounts mentioned therein: Sl. No. Entities Allocated Amount of bonds (in crores) 1 National Highways Authority of India (NHAI) 2 Indian Railways Finance Corporation (IRFC) 3 Housing and Urban Development Corporation (HUDCO) 4 Indian Renewable Energy Development Agency (IREDA) 5 Power Finance Corporation Limited (PFC) 6 Rural Electrification Corporation Limited (REC) 7 NTPC Limited USA and India sign agreement to Share Tax Information USA & India have signed an Inter-Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations in tax matters. FATCA is rapidly becoming the global standard in the effort to curtail offshore tax evasion. To date, the United States has IGAs with more than 110 jurisdictions and is engaged in related discussions with many other jurisdictions. Extension for submission of ITR-V for AY & AY CBDT has extended the time limit for submission of ITR V forms relating to Income Tax Returns filed electronically (without digital signature certificate) for AY (filed on or after 1 st April 2014 till 31 st March 2015) and for AY (filed on or after 1 st April 2014 till 30 th June 2015). These ITR Forms can now be submitted up to 31 st October 2015 or within a period of 120 days from the date of uploading of e-return, whichever is later. Page 3 Date for Compliance Window under The Black Money Act CG has notified 30 th September 2015, as the date on or before which a person may make a declaration in respect of an undisclosed asset located outside India under the compliance provisions of the Black Money Act. The last date by which a person must pay the tax and penalty in respect of the undisclosed foreign assets so declared shall be the 31 st December, 2015.

Lunawat Bulletin CBDT targets 1 crore New Taxpayers CBDT has set to achieve the target of getting 1 crore new taxpayers throughout the country to Principal CCITs.

4 Lunawat Bulletin CBDT targets 1 crore New Taxpayers CBDT has set to achieve the target of getting 1 crore new taxpayers throughout the country to Principal CCITs. The statewise target list has been issued to the authorities wherein from Pune more than 10 lacs of new taxpayers are being targeted which are highest of all given states/regions. EVC for electronically filed Income Tax Returns CBDT has provided a new way of e-filing of Income Tax Returns through Electronic Verification Code which means a code generated for the purpose of electronic verification of the person furnishing the return of income. Principal DGIT or DGIT have been authorized to specify the procedures, formats and standards for the implementation of such process. Cost Inflation Index notified for FY Central Government has notified the following Cost Inflation Index for Financial Year : Financial Year Cost Inflation Index FAQs on Tax Compliance for Undisclosed Foreign Income and Assets CBDT has recently notified The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 & related Rules. In regard to the scheme, many queries have been received from the public about the scope of the scheme and the procedure to be followed. Wealth Tax Return Filing Date Clarified & Extended CBDT has clarified that with the extension of Due Date of filling of Income Tax returns from 31 st July 2015 to 31 st August 2015 for Assessees who are not liable to get their accounts audited; the Due Date of filing of Wealth Tax Return also stands extended to 31 st August 2015 for such assessees. ITR 3, 4, 5, 6 & 7 Notified for A.Y CDBT has notified ITR Forms ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7 for the Assessment Year The highlights are: ITR-4 1. Details of Asset and Liability at the end of the year other than those included in Part A BS to be given for cases where total income exceeds Rs. 25 lakh. 2. Details of Foreign Assets and Income from any source outside India are required to be given 3. Details of Income from outside India and tax relief claimed 4. Information regarding partnership firms in which partner 5. Declaration - critical assumptions specified in the advance pricing agreement have been satisfied and all the terms and conditions of the agreement have been complied with. 6. Details of all Bank Accounts held in India at any time during the previous year (excluding dormant accounts). 7. No provision for transgender. ITR-6 1. Corporate Identity Number (CIN) to be given. 2. Details of all Bank Accounts held in India at any time during the previous year (excluding dormant accounts). 3. Declaration - critical assumptions specified in the advance pricing agreement have been satisfied and all the terms and conditions of the agreement have been complied with. 4. Details of Foreign Assets and Income from any source outside India 5. Expenditure incurred on corporate social responsibility (CSR). The Black Money (Undisclosed Foreign Income and Assets) & Imposition of Tax Act & Rules 2015 notified CBDT has notified The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, Page 4

5 August 2015 Corporate Laws Introduction of Form MGT-7 As per General Circular No. 10 / 2015, MCA had been notified Form MGT-7 and Form AOC-4,AOC-4 XBRL and AOC- 4 CFS will be notified shortly. Relaxation of Additional Fees MCA has been decided to relax the additional fee payable on Forms AOC-4,AOC-4XBRL and Form MGT-7 upto 31st October,2015. A company which is required to file its CFS, would be able to do so in the separate form for CFS without any additional fees upto 30th November,2015. Clarification with regard to circulation and filling of Financial Statement Company which holding a general meeting after giving a shorter notice as provided u/s 101(1) of the Act may also circulate Financial statements at such shorter notice. In case of a foreign subsidiary, which does not get its accounts audited as per legal requirements prevalent in the country of its incorporation, the parent Indian may place such unaudited accounts to comply with Section 136(1) and 137(1) as applicable. Accounts of Foreign subsidiaries would need to be translated in English (if required). Format of accounts of Foreign Subsidiaries should be in accordance with requirement under Companies Act, 2013.In case it is not possible, a statement indicating the reasons for deviation may be placed along with such accounts. Goods & Services Tax (GST) Government Clears GST Amendments The Cabinet approved National Investment & Infrastructure Fund (NIIF), a new consumer protection law, and allowed foreigners to invest in Alternate Investment Funds registered with market regulator Sebi. The key changes approved by the cabinet in the GST law is full five-year compensation to the states for possible loss of revenues, which is crucial to the government gaining support of states such as West Bengal and Odisha in the Rajya Sabha where the government lacks majority. The details of the 1% tax to be levied over and above the GST rates to compensate the manufacturing states for a possible loss of revenue will be finalised while framing the rules, people familiar with the deliberations said. This 1% tax, which is seen as distorting the GST and causing cascading of taxes GST proposes to replace most central and state levies with one single tax and is projected to add as much as 2% to the country's GDP. Service Tax Conditions For Using electronic Form And Digital Signatures Central Board of Excise and Customs Specifies conditions, safeguards and procedures for issue of invoices, preserving records in electronic form and authentication of records and invoices by digital signatures namely: Use only class 2 or class 3 Digital certificates Assessee proposing to use or already using shall provide details required to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise at least fifteen days in advance. Shall maintain separate records for separate Service tax registration. Maintain records in electronic form for 5 years Note :- The same applies equally to Service Tax as well as Excise. Page 5

Lunawat Bulletin Delhi Value Added Tax Act, 2015 - Notified on 14th July, 2015 The following amendments have been made to the Delhi VAT Act 2015:- Goods specified in Fourth Schedule shall now be

6 Lunawat Bulletin Delhi Value Added Tax Act, Notified on 14th July, 2015 The following amendments have been made to the Delhi VAT Act 2015:- Goods specified in Fourth Schedule shall now be taxable at maximum rate of 30%. where any purchaser has been issued with a credit note or debit note in terms of returns or rejection of goods purchased, & for the same tax credit claimed by him in any tax period in respect of which the purchase of goods relates, becomes short or excess, he shall compensate such short or excess by adjusting the amount of the tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned. Now the Commissioner may, as a condition of the payment of a refund, demand security from the person within forty five days instead of earlier limit of fifteen days from the date on which the return was furnished or claim for the refund was made. If a registered dealer fails to apply for cancellation of his registration to the Commissioner, he shall be liable to pay, by way of penalty, a sum of Rs. 200/- per day of default subject to a maximum of Rs /-. If a registered dealer fails to surrender certificate of his registration, he shall be liable to pay, by way of penalty, a sum of Rs. 200/- per day of default. If a registered dealer fails to file the return/revised return by the due date or fails to submit any document to be submitted along with the return, he shall be liable to pay, by way of penalty, a sum of Rs. 200/- per day of default. DVAT Section 86 sub-section (20), explanation shall be omitted whereby an objection to the decision of penalty could be raised under section 74 which shall be not allowed now. Tax Adjustment shall be allowed in case where a previously agreed consideration for sale has been altered by agreement with the recipient for any reason except where a discount or incentive is offered through a credit note after issuance of tax invoice in respect of a sale to a registered dealer. Earlier, tax adjustments was allowed in case of discount also. Extension for submission of D-VAT Return for 1st Quarter FY The date for filing of DVAT return for quarter ending has been extended up to Page 6

Lunawat Bulletin Department of Telecommunication (DOT) to take up Audit of Telecom companies on call drops OTHERS RBI to Issue Rs 10 Coins to Mark International Yoga Day "The TERM cells (field unit

call drops," Telecom Minister Ravi Shankar Prasad The main reasons behind call drops are poor radio coverage, radio interference due to unauthorized use of repeaters or wimax frequencies at

7 Lunawat Bulletin Department of Telecommunication (DOT) to take up Audit of Telecom companies on call drops OTHERS RBI to Issue Rs 10 Coins to Mark International Yoga Day "The TERM cells (field unit of DOT) have been asked to take up the special audit to assess the coverage/quality of service in metro/capital cities of all mobile operators network in order to assess the gravity of problem of call drops," Telecom Minister Ravi Shankar Prasad The main reasons behind call drops are poor radio coverage, radio interference due to unauthorized use of repeaters or wimax frequencies at international borders, loading of available spectrum, inadequate investment in network and change in pattern of traffic The Reserve Bank of India will shortly put into circulation Rs 10 coins to commemorate the International Day of Yoga which the Government of India has minted," RBI said The obverse side of the coins will bear Lion Capital of Ashoka Pillar in the centre with legend Satyamev Jayate inscribed below, flanked on the left periphery with the word Bharat in Devnagri script. While, on the right periphery it will be flanked with the word 'INDIA' in English. "It also bears the Rupee symbol and denominational value '10' in the international numerals below the Lion Capitol," RBI said. On the reverse, the coin will bear the logo of 'International Day of Yoga', with inscription 'Samanjasya avam Shanti ke Liye Yog' in Devnagri script and 'YOGA FOR HARMONY AND PEACE' around the logo and design. The date '21 JUNE' will at the bottom of the logo. The inscription 'Antarrashtriya Yog Divas' in Devnagri script on left periphery and 'INTERNATIONAL DAY OF YOGA' in English on the right periphery would be written on this side of the coin, RBI said. "These coins are legal tender as provided in The Coinage Act The existing coins in this denomination will also continue to be legal tender," RBI said. Working till his last breath, Dr Kalam was an inspiration to millions "Kalam never identified himself on the basis of region, religion or language. He saw himself as a human being first and viewed everyone in the same way," The funeral of former President APJ Abdul Kalam was held in Rameswaram on Thursday with full military honours. Prime Minister Narendra Modi and Defence Minister Manohar Parrikar were among those attending the last rites. The former president passed away after suffering a massive cardiac arrest while he was addressing students at IIM, Shillong on Monday evening. He was rushed to a hospital but failed to recover. In Russia, Abdul Kalam will be remembered as a steadfast advocate for strengthening friendly relations between our nations who did a great deal to augment mutually beneficial Russian-Indian cooperation. said Russian President Page 7

8 August 2015 Lunawat Update Presentations During July 2015, our partner CA. Pramod Jain gave following presentations: Specific Issues and Finalization of Audits under Companies Act 2013 at Rohini CPE Study Circle of NIRC of ICAI Finalization of Audits under Companies Act 2013 at Chandigarh organized by Chandigarh Branch of NIRC of ICAI. Latest for Auditors under Companies Act 2013 at Karnal organized by Karnal Branch of NIRC of ICAI. Presentation on Recent Amendments in Companies Act 2013 at Bahadurgarh, Haryana organized by Rohtak Branch of NIRC of ICAI. Presentation on Recent Amendments in Companies Act 2013 at Times Internet Ltd., Gurgaon Presentation on Auditor under Income Tax Act as amended by Finance Act 2015 at Punjabi Bagh organized by West Delhi Study Circle of NIRC of ICAI During July 2015, our partner CA. Rajesh Saluja gave following presentations: Presentation on Commercial Thinking at Bharti Infratel Ltd, Bhubaneswar Raising Financial and Commercial Quotient atprogility India Pvt Ltd., Mumbai Financial Statements Analysis at Yes Bank Ltd., Mumbai Presentation on Commercial Thinking at Bharti Infratel Ltd, Patna We may be contacted at: Daryaganj, New Delhi 54, Daryaganj, New Delhi Tel: dgoffice@lunawat.com Paschim Vihar, New Delhi A-2/132, Prateek Apartments, Paschim Vihar, New Delhi Tel: pvoffice@lunawat.com Karampura, New Delhi 109, Magnum House-1, Karampura Complex, New Delhi Tel: karampura@lunawat.com Mumbai Office No. 9, First Floor. Star Trade Centre, Chamunda Circle, Near Station, Borivali (W), Mumbai Tel: mumbai@lunawat.com Keshopur, New Delhi WZ-339, 2nd Floor, Street No. 19, Santgarh, Keshopur, Outer Ring Road, New Delhi Tel: Fax: We also have ASSOCIATES at : Chennai, Kolkatta, Jalandhar, Pune, Chandigarh, Udaipur, Vadodara, Bangalore, Cochin, Indore, Jodhpur, Jaipur, Bharatpur, Hyderabad, Jharsuguda, Panipat, Ranchi & Ghaziabad. Our Services Audit and Assurance International Taxation Indian Direct Tax Laws VAT/Sales Tax Service Tax Corporate Laws Limited Liability Partnership (LLP) NGOs/Societies and Trusts Compliance Audits Investigations Outsourcing Services Setting up Business in India Consulting Services Trainings Valuations XBRL Trade Marks Disclaimer 2015 Lunawat & Co. All Rights Reserved Information in this document is intended to provide only a general outline of the subjects covered. We recommend that you seek professional advice prior to initiating action on specific issues. Lunawat & Co. does not take any responsibility for any loss arising from any action taken or not taken by anyone using this material. Editorial Team: CA. Vikas Yadav, CA. Samta Jain, Raman Goyal Page 8

March Government has taken 'one step forward' on Retro Tax issue

March Government has taken 'one step forward' on Retro Tax issue Serving Since 1968 Lunawat Bulletin Market Watch Sensex 29.02.2016 : 23002.00 31.01.2016 : 24870.69 Nifty 29.02.2016 : 6987.05 31.01.2016 : 7563.55 Inside.. Compliance Due Dates 2 Income Tax 3 Corporate