E - NEWSLETTER TIRUPUR BRANCH OF SIRC OF ICAI

Transcription

1 E - NEWSLETTER TIRUPUR BRANCH OF SIRC OF ICAI APRIL 2017

2 At the Helm of Affairs CA. Nilesh Shivji Vikamsey CA. Naveen N. D. Gupta CA. Cotha S. Srinivas President ICAI Vice-President ICAI Chairman, SIRC Branch Office Bearers for the year Page 1 of 10

3 Index Page Chairman s Communication 3 Technical - Highlights from Budget 2017 ( Finance Act 2017 ) 5 Technical - Recent Income Tax Judgements 7 Activity Calendar 8 Photo Gallery 9 Circulated By Tirupur Branch of SIRC of ICAI Views expressed herein are the opinion of the respective authors and not that of the branch or the Managing /Newsletter committee. Your views / suggestions / comments are welcome. Kindly send your queries to tirunewsletter@gmail.com Newsletter Committee Chairman CA. S.Subramanian Ph: Newsletter Committee Advisor CA. S.Venkataramani Ph: Newsletter Committee Members CA. S.Bhoopathiraj Ph: CA. S.Harishankar Ph: Page 2 of 10

4 Chairman s Communication Respected members, Warm Greetings to you all. I hope all the members involved in the branch audit of banks would have completed the assignment without much difficulty and within the stipulated time. During the month of March, 2017, our branch conducted career counseling meeting for the students of LRG College for women, Tirupur wherein nearly 120 students participated. To meet out the commitment to serve the public at large, our branch conducted Blood Donation Camp with the help of Revathi Medical center, Tirupur, in which 24 units of Blood were donated by our Members and Students. My heartfelt thanks to members and Students for their support and hospital authorities for the help rendered by them. I am very glad to inform you, that the Board of Studies have approved and allotted 08 th and 09 th December, 2017 to our Branch for conducting CA Students Conference for Chartered Accountants Students. Further Details will be intimated in due course of time. Page 3 of 10

5 A series of meetings on GST are proposed and planned by the CPE committee of your Branch during the month of May, Kindly attend the meetings and enrich your knowledge on the subject. The managing Committee of your Branch has decided to conduct 1 st ANNUAL CONFERENCE on 03 rd June 2017, the date on which the establishment of your branch has been approved by the ICAI council. I seek the support of all members of our branch for the success of the conference. The Managing Committee of your branch is seeking the support and participation of all members in the branch activities. Jai Hind, Yours Sincerely, CA.S.VENKATESAN CHAIRMAN TIRUPUR BRANCH OF SIRC OF ICAI Page 4 of 10

6 HIGHLIGHTS FROM THE UNION BUDGET 2017 AS PASSED IN LOK SABHA RELEVANT TO SME ENTERPRISES Amendment Cash payments exceeding Rs will not be allowable as expenditure Cash payments exceeding Rs for purchase / construction of fixed assets Liability to deduct TDS on rent is being extended to non tax audit assessees. Liability to TDS is applicable for joint venture agreements for housing projects Building held as stock in trade No deemed rent for one year Illustrative scenarios Payment for salary, wages, expenses etc. cannot be made exceeding Rs per day If expenses for building construction, asset purchase etc are made by cash exceeding Rs per day, Depreciation will not be allowed. Applicable for assessees in real estate, housing construction business Applicable for assessees in real estate, housing construction business Long Term Capital gain for land, building or both reduced to 24 months Trust return to be filed before due date to claim exemption u/s 12A Corpus donation given by a trust will not be treated as application of income Tax on Gifts except from relatives, marriage etc extended to all assessees. Deemed income for purchase of movable or immovable property less than guideline value / fair value extended to all assessees. Earlier if an individual or HUF purchases immovable property less than guideline value, it was treated as income. Now this tax is extended to all assessees. Late Fees for filing of income tax returns beyond July / September (Due date ) up to Rs will be levied. TDS disallowance applicable for income from other sources also. House property loss is capped at a maximum of Rs /- The excess of interest over rent cannot be set off against salary /other income beyond Rs. 2,00,000/-. This will affect assesses paying large interest amounts for housing / building loans. Page 5 of 10

7 Amendment Receiving Rs. 2,00,000 or above in cash from any person (1) in one day or (2) On different dates for a single transaction / occasion will be subject to 100% penalty. Earlier limit of Rs. 20,000 for loans will continue. Illustrative scenarios Gift Cash sales Capital introduction etc In cash exceeding Rs. 2 lacs will be subject to 100% penalty. Withdrawals from bank does not attract penalty as clarified by Department. TCS for cash sales above Rs. 2 lakhs and other transactions will be 5% or double the normal rates if the PAN of the party is not available. TCS with PAN will be 1% Mandatory to quote PAN for the following transactions, (1) Sale / purchase of goods exceeding Rs. 2 lakhs per transaction (2) Sale / purchase of immovable property exceeding Rs. 10 lakhs per transaction. Receipt of cash payment exceeding Rs. 2 lacs from a person for sales / service shall be made in Statement of financial transactions ( AIR ) before 31 st May of the subsequent financial year. Fair market value of shares will be considered as consideration for capital gain if transaction happens at a lesser value. Tax rates reduced to 25% for company assessee having turnover less than Rs. 50 crores in financial year This is applicable for financial year Page 6 of 10

8 Recent Income Tax Judgments 78 Taxmann 287 Where assessee, a foreign shipping company, set up a telecommunication system in order to enable its agents across globe including India to perform their role more effectively, payment received for providing said facility was not taxable as fee for technical services 80 Taxmann 2 HRA exemption claim could not be allowed under section 10(13A) based on sham rent payments supported only by rent receipts from mother where assessee produced no evidence arising in normal course of happening of transaction of hiring premises 79 Taxmann Taxmann 198 There is no bar for an assessee or declarant to claim credit of advance tax and TDS paid previously relating to assessment years for which it seeks benefit under Income Declaration Scheme, 2016 Where assessee's family members claimed that cash seized from bank lockers of assessee in course of search infact belonged to them, in view of their failure to prove capacity to earn said amount, impugned addition made in hands of assessee was to be confirmed 80 Taxmann 51 Where assessee converted the stock-in-trade of shares into investments and sell the same at a later stage, profit arising from sale of shares shall be deemed to be capital gains and not business income. Since shares were held as long-term capital asset, profit arising from sale of share shall be exempt from tax under section 10(38) 80 Taxmann 79 When the assessee-bank was aware of the fact that its employees had visited foreign countries by availing LTC/LFC concession and so he was not entitled for exemption of reimbursement of LTC under section 10(5), the assessee-bank was under obligation to deduct tax at source treating such an amount as not exempt. Since the assessee-bank had failed to enforce its duty to deduct tax at source as envisaged in section section 192, the assessee-bank was an 'assessee in default' under section 201(1) 80 Taxmann 221 Where no exempt income i.e., dividend, was earned in relevant assessment year by assessee, section 14A could not be invoked Supreme Court ITAT Mumbai Delhi High Court Allahabad High court Calcutta High Court ITAT Bangalore Madras High Court Page 7 of 10

9 ACTIVITY CALENDAR FOR MAY 2017 PROGRAMME DATE 1 02 ND May 2017 Tuesday PROGRAMME NAME CPE Live Webcast on IGST + Procedures (Payment, Return, Refund) RESOURCE PERSONS a) Sh. G.D Lohani, Commissioner, Service Tax Commissionerate, Delhi Zone TIMINGS 4.00PM VENUE ICAI Bhawan, Tirupur b) Sh. Ravneet Khurana c) CA. Gaurav Gupta 2 05 TH May 2017 Friday CPE Seminar on Transitional Provision on GST CA. Manavalan, Chennai 6.00PM ICAI Bhawan, Tirupur Page 8 of 10

10 PHOTO GALLERY CA Career Counselling Programme held on at LRG Arts College for Women, Tirupur -CA S.Venkatesan, Tirupur, CA K.Murugesan, Tirupur, CA A.Selvaraj, Tirupur & CA K.C.Senthil Kumar, Tirupur. Chairman CA.S.Venkatesan handing over Cheque of Rs to CA.M.P.Vijay kumar,ccm for CA Benevolent Fund on behalf of Tirupur Branch.. Page 9 of 10

11 Blood Donation Camp for Members & Students Held on Page 10 of 10

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