EZYBIZ INDIA CONSULTING LLP

Transcription

1 EZYBIZ INDIA CONSULTING LLP Redefining Consultancy Monthly Newsletter June, 2016 DISCLAIMER: This newsletter provides information of general nature and is not meant to be a substitute for professional advice. No one should act on such information without appropriate professional advice.. accepts no liability with regard to the information herein or any action that may be taken by readers of this newsletter without any professional advice.

2 Content 1 Due Dates for month of July, Taxation News- Direct Tax 3 Taxation News- Indirect Tax 4 Regulatory News

3 Important Due Dates 6th July, 2016 Excise Payment for the month ended 30 th June, st June, 2016 VAT Payment for the month ended 31 st May, th July, 2016 Service Tax Payment for the month/quarter ended 30 th June, st June, 2016 ESI Payment and Return for the month ended 31 st May, th th July, June, Provided TDS/TCSFund Payment Return for for the the month month ended ended 30 th 31June, st May, th June, July, 2016 ESIC ExciseConsolidated Return for the Statement month/quarter of dues ended and30 remittance th June, for the month ended 31 st May, th th June July, 2016 Return ROC e-forms in respect due of forsecurities filing between transaction 25 th march tax for 2016 theupto financial 30 th June year th July, 2016 Provident Fund Payment for the month ended 30 th June, 2016.

4 Important Due Dates 15th July, 2016 TCS Return for the quarter ending 30 th June, st July, 2016 VAT Payment for the month ended 30 th June, st July, 2016 ESI Payment and Return for the month ended 30 th June, th July 2016 Provided Fund Return for the month ended 30 th June, st July,2016 Income Tax Return Filling for AY (non-audit cases). 31 st July,2016 TDS Return for the quarter ending 30 th June,2016.

5 Changes in schedule for payment of Advance Tax The schedule for payment of Advance Tax by an Individual and other non-corporate assessee has been amended w.e.f. 1st June Installment Due Date Amount payable I 15th June 15% II 15th September 45% III 15th December 75% IV 15th March 100% Now assessee covered u/s 44AD of Income Tax Act also required to pay advance tax from FY onwards.

6 Direct Taxation News A New Levy:- Equalization levy (Chapter VIII of Finance Act, 2016) Equalization 6% has been made applicable from June 1, 2016 Equalization levy is to be deducted by the payer from the amount paid/ payable (Rs. 1,00,000 or more.) to the non-resident service provider with respect to specified services provided. specified services:- a) Online Advertisement b) Any provision of digital advertising space or any service for the purpose of online advertisement. To whom it is applicable:- a) a person resident in India and carrying on business or profession. b) a non resident having permanent establishment in India. The Consideration paid for specified services will be disallowed in following cases as per 40(a)(ib) of Income Tax Act :- a) Equalization levy is deductible but such levy has not been deducted. b) Equalization levy is deductible (and it is so deducted) but it is not deposited [on or before the due date of submission of return of income under section 139(1). If, however, equalization levy is deducted / deposited in a subsequent year, the aforesaid consideration shall be allowed as a deduction in computing the income of the previous year in which such levy has been paid.

7 Income Tax Relief to a nonresident for furnishing PAN [Section 206AA] Section 206AA, inter alia, provides that any person (who is entitled to receive any sum on which tax is deductible at source) shall furnish his PAN to the deductor, failing which tax shall be deducted at the rate mentioned in the relevant provision or at the rate of 20 per cent, whichever is higher. Amendment Which effect from June 1, 2016, subsection (7) of the said section has been substituted to provide that above provisions shall not apply to a nonresident / foreign company (who does not have PAN) subject to such condition as may be prescribed. The above rule applicable to non-resident, not being a company, or a foreign company if they furnish the following details and documents to the deductor:- Name, id, contact number; Address in the country of which the deductee (non-resident) is a resident; Tax Residency Certificate (TRC) from the Government of that country if the law of that country provides for issuance of such certificate; Tax Identification Number (TIN) or any other Unique Identification Number of the nonresident of his residence country.

8 Income Tax General News No TDS for provident fund withdrawals of up to Rs 50,000 from June 1, I-T dept. launches ATM-based validation system for filing e-itrs. Now EVC can be generated by pre-validating the Automated Teller Machine (ATM). Pay 45% Tax and declare undisclosed Income From to Provisions of General Anti-Avoidance Rule (GAAR) shall be applicable with effect from Income-tax (16th Amendment) Rules, Revised procedure for online submission of TDS/TCS statement.[ Notification No. 11/2016-Income Tax (DIT Systems)]. Relaxation from TDS@20% where PAN is not available and from payment made to non-resident, not being a company, or a foreign company, subject to conditions and providing specific details and documents - Income-tax (17th Amendment) Rules, Notification No. 53/2016-IT. CBDT Circulars Statement of TDS for sale of property u/s 194-IA to be filed within 30 days with effect from 1/6/16, due date aligned with due date of deposit of TDS. CBDT Notification No. 39/2016.

9 Income Tax Section 14A disallowance cannot exceed total expense: CBDT Via (Notification No. 43/2016 dated 02/06/2016) CBDT clarifies that the higher turnover threshold of Rs. 2 crore for non-audit of accounts is granted only to assesses, opting for presumptive taxation scheme u/s 44AD. CBDT notifies rules for Foreign Tax Credit. Notification No. 54/2016-IT dated 27/06/2016. The CBDT vide Notification No: 42/2016 dated. 2 June 2016 has notified the Cost Inflation Index (CII) at 1125 for Financial Year Case Laws Coaching Class Income of ICAI is exempt via (Dy. Director of Income Tax (E) vs. ICAI (ITAT Delhi) Section 80IC: 100% deduction allowed on every substantial expansion via {M/s Tirupati LPG Industries Ltd. vs. JCIT (ITAT Delhi)} Non Furnishing of reopening reasons render reassessment invalid. [Shri Inderjeet Singh Sachdeva vs. DCIT (ITAT Delhi)].

10 International Taxation- Case Study HC: Reverses AAR, rejects Revenue attempt to re-characterize composite contract as equipment 'hire Facts of the case :- A Singapore company ( Technip ) installed a marine crude oil receiving facility for an Indian company ( IOCL ) at a contract price of U.S.$18.6 million. Although the facility belonged to IOCL, its installation required Technip to use its own barges containing specialized equipment, with 68% of the contract price allocated to this use. AAR held that the income of the petitioner was taxable in India as fees for technical services (FTS) under both the IT Act and DTAA. Delhi High Court observation There is a difference between the use of the equipment by [Technip] for IOCL and the use of the equipment by IOCL. Since the equipment was used for rendering services to IOCL, it could not be converted to a contract of hiring of equipment by IOCL. Technip s profit instead was exempt under Art. 7. The Court stated Under Article 5(3) Technip can be said to have a PE in India only if the installation or construction activity is carried on in India for a period exceeding 183 days in any fiscal year. Technip was present in India for 41 days during for rendering service to IOCL. Final Decision:- The resultant position is that no part of the income earned by the Petitioner from the contract with IOCL can be taxed in India.

11 Indirect Tax Notification D-VAT Under DVAT Commodity code to become mandatory from Q Service Tax Ministry of Finance has amended the Service Tax Rules, 1994 by issuing The Service Tax (Fourth Amendment) Rules, Ministry of Finance has issued Indirect Tax Dispute Resolution Scheme Rules, Krishi Kalyan Cess not applicable on outstanding debtors as on 31st May Speedy disbursal of pending refund claims of exporters of services under rule 5 of CENVAT Credit Rule, 2004 [Circular No. 195/05/2016- Service Tax]. Excise Duty/Custom Duty Record Maintenance of warehoused goods in electronic form. [Circular No 25/2016-Customs]. Procedure for Gold/silver/platinum import by nominated agencies via {Circular No. 27/2016- Customs }

12 Indirect Tax Notification CBEC has issued a form of application for a licence under Public Warehousing Licensing Regulations, 2016 / Private Warehousing Regulations, 2016 / Special Warehousing Regulations, 2016 vide Circular No. 26/2016 dated 09/06/2016. Case Laws Delhi High Court delivered a landmark judgment [Mega Cab v UOI and Anr. in WP(C) 5192/2015] -no more audit of assesse recordsby the Central Excise and Service Tax Department as well as CAG and strike down new rule 5A(2) of Service Tax Rules as ultra virus to the No Finance Act, Service tax on under construction flats if price includes land value via {Suresh Kumar Bansal vs UOI (Delhi High Court)}.. Review petition is to be allowed if appeal was disposed of on basis of incorrect facts: Apex Court deputy Commissioner of Central Excise & Service Tax v. Barnala Builders & Property Consultants.

13 Regulatory News MCA MCA has notified 29 sections pertaining to NCLT which is applicable with effect from 1/6/2016. Via Notification SO1934 (E). National Company Law Tribunal & National Company Law Appellate Tribunal constituted by Central Govt. with effect from MCA Notification dated MCA issues the Limited Liability Partnership (second amendment) Rules MCA notification dated HUF cannot become a partner or designated partner in LLP. Only an individual or body corporate can be a partner in LLP. MCA clarifies vide Circular no. 2/2016. RBI RBI has issued Master Direction on Financial Services provided by Banks Directions, As per the direction, a Bank is not allowed to contribute more than 10% of its paid up capital and reserves as per last audited balance sheet in factoring subsidiaries and factoring companies. RBI Keeps repo- rate unchanged at 6.5%, CRR also remains at 4%, Reverse Repo rate stays at 6%.

14 Regulatory News SEBI SEBI introduces new guidelines for winding-up of depositories. SEBI has notified disclosure of the impact of Audit qualifications by the Listed entities. SEBI cautions investors not to invest in Schemes offered by entities barred by SEBI from raising money or entities not registered with SEBI. Mandatory Filing Of Compliances / Information In Electronic Mode :- As per Regulation 10 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, (1) The listed entity shall file the reports, statements, documents, filings and any other information with the recognized stock exchange(s) on the electronic platform as by specified the Board or the recognized stock exchange(s). (2) The listed entity shall put in place infrastructure as required for compliance with sub-regulation (1).

15 Regulatory News Others Startups- Guidelines for Patent, Designs & Trade Marks application via {Public Notice No. CG/F/Start-up/Guidelines/2016/79 - (08/06/2016)} Interest rate on PPF retains at 8.1% for quarter ending September, 2016, same as stayed in 1st Quarter of Finance Ministry announces new rules allowing for premature withdrawal of the public provident fund (PPF) account deposit. Finance Ministry has issued a notification dated vide which premature closure of PPF account is allowed in given conditions with a interest penalty of 1 %.However this facility is available only if PPF account is five years old. Clarification issued by ICAI for preparation of consolidated financial statements. Holding company will have to consolidate partnership firm / LLP if that partnership firm / LLP is subsidiary or associate or JV. Non Resident Indians (NRIs) can now join and subscribe to NPS online through enps [Press Information Bureau Government of India Ministry of Finance 17-June-2016]. Govt. allows 100% FDI in e-commerce, aviation and defense.

16 About Us Who We Are EZYBIZ India is a multidisciplinary consulting and business outsourcing firm, fully managed by specialized professionals who are expert in their respective fields. Our Team We have dedicated team comprises of professionals from multi-disciplinary fields like Ex-Bankers, Tax consultants, corporate Lawyers, Financial advisors, Chartered Accountants, Company secretaries etc. Our Vision A vision to provide one window solutions to business, tax, regulatory, legal and allied consulting needs of domestic clients as well as multinational companies operating/wants to operate in India.

17 OUR SERVICES Business Start Up Services PVT Ltd Co. LLP Regn. Firm Regn. LO/BO/PO/WOS VAT/CST Regn. Service Tax/ Excise Regn. IEC license NGO/ Cooperative Society Regn. FRRO Regn. Tax Return Filing Services Income Tax Return DVAT/CST Return Return Service Tax/Excise Return NRI Tax return Expatriate tax Return ROC return Annual Activity Statement in case of LO Form FLA in case of BO/LO/Foreign Company NGO/Cooperative Society Return Advisory & Compliance Services Direct Tax Advisory & Compliance Indirect tax Advisory & Compliance International Tax Advisory & Compliance Transfer pricing Advisory and Documentation Direct Tax Assessment and Litigation Indirect Tax Assessment and Litigation Advisory & Compliance Services ROC advisory & Compliance FEMA/RBI Advisory & Compliance Secretarial Compliance OTHER SERVICES Funding From Banks Private Equity Funding Financial Planning

18 Contact Us EZYBIZ India CONSULTING LLP (Redefining Consultancy) Office No. 306, 3rd Floor, Vishwa Sadan Building, District Centre, Janakpuri, New Delhi Mob: Off: E: W: Our Affiliate Firm: ANIL AGRAWAL & COMPANY (Chartered Accountants)