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www.caonline.in News... 1.Penny Shares cannot be treated as bogus if documents are in order via {Ms. Farrah Marker vs. ITO (ITAT Mumbai)} 2.Non Furnishing of reopening reasons render reassessment invalid via {Shri Inderjeet Singh Sachdeva vs. DCIT (ITAT Delhi)} 3.Delhi HC Judgment on construction of complex service- A review via {Suresh Kumar Bansal Vs Union of India &Ors} 4.Net realizable of stock to be taken as value it would fetch on actual sale in future via {ITO vs. M/s. Mahendra Traders (ITAT Kolkata)} 5. TDS not deductible on web hosting & marketing services procured from US based entity via {DCIT vs. M/s Matrimony.Com Pvt. Ltd. (ITAT Chennai) }

Experts feel burden of compliance and administration will fall on online marketplaces The long-awaited Goods & Services Tax (GST) Law, which was expected to resolve the tax issues faced by online marketplaces, could end up increasing compliance costs for them and also create working capital issues for sellers on their platform. The proposed “Model GST Law,“ which awaits legislative clearance, says that online marketplaces will have to deduct taxes directly on the total sales made by merchants on their platforms and pay it to the government. Till now, online marketplaces passed on the payments made by customers to sellers after deducting their commissions and fees (such as for logistics or advertisement.) Tax experts and online marketplaces feel that this will put the burden of compliance and administration on the ecommerce companies, which may hurt both their and sellers' margins. While Flipkart, India's largest online marketplace, welcomed the new law, it also said...

In a rare kind of prime ministerial interaction, Narendra Modi will be addressing India's seniormost taxmen on Thursday . His audience at Rajaswa Gyan Sangam -roughly translated as Knowledge Conference on Revenue -will know what most observers of Modi Sarkar may have failed to spot: there's now, after two-plus years in government, a Modi Tax Doctrine (MTD). Unlike most definitive policy guidelines, MTD wasn't born out of white pa pers and special committees. The doctrine took shape out of changes in various tax practices. But it's a definitive break from the past. A big, positive change. But of course, as in any complex system, challenges remain. ET spoke to many key officials in the finance ministry for this report.Some spoke off the record. MTD can be summed up precisely: make paying taxes easy , that is, simplify procedures, avoid litigation; two, make taxmen friendlier, that is, no coercion, no cooking of revenue books; third, go hell for leather after black...

The popular `buy one get one free' deals stand to lose some of their charm as the proposed goods and services tax (GST) may apply to free articles given away with those purchased. As per Section 3 of the model GST law that the government has unveiled for stakeholder comments, supplies specified in Schedule I, made without a consideration, are also liable to GST. This means that the buyer will have to pay GST on the article that comes free, said tax experts, confirming that the provision will impact the popular sales. They called for clarity on the issue as the wider implication is that even free samples given by way of business promotion could attract GST. “Any form of direct or indirect GST on free supplies could have a significant impact on the sales & marketing spend of companies, specifically those dealing in consumer products,“ said Pratik Jain, national indirect tax leader at PwC. Prashant Raizada, partner indirect tax at BDO India, said, “The model GST Law does...

The Securities and Exchange Board of India ( Sebi) has issued a consultation paper on financial disclosures to be made by the newly- introduced Infrastructure Investment Trusts ( InvITs). Comments have been invited by June 28. It has proposed that annual disclosure to stock exchanges be on a quarterly basis, not halfyearly as suggested earlier. Other disclosures to an exchange would be made within 45 days of the end of each quarter or half- year as applicable. Audited standalone results for the financial year to be sent within 60 days from the end of the year, along with the audit report. It has proposed detailed financial statements, on both a standalone and consolidated basis, “ to be prepared in accordance with the Indian Accounting Standards, converged with the International Financial Reporting Standards notified under the Companies (Indian Accounting Standards) Rules, 2015”, Sebi has said. The earnings statement to a stock exchange should be signed by two designated person...

The Securities and Exchange Board of India ( Sebi) has asked stock exchanges to change their byelaws to ensure investors are compensated from their investor protection fund ( IPF) if a trading member or broker is expelled. The current laws only entertain claims in case of broker defaults. The issue arose after the BSE exchange refused to pay money from its IPF to aggrieved investors after the expulsion of Delhi- based broker Kassa Finvest last year. Its byelaws, it told them, allowed IPF money to be utilised only if abroker had defaulted. However, the National Stock Exchange ( NSE) began paying claims due to investors from its IPF last year, said a source. BSE owed only a few crores to investors, as 70- 80 per cent of transactions done by the broker were through NSE, added the person. As of April last year, investor claims against Kassa Finvest reportedly amounted to about Rs.150 crore. BSE says it had disbursed Rs. 29.7 lakh from the assets of Kassa available with the exchange...

The Insurance Regulatory and Development Authority of India ( Irdai) in its draft guidelines (feedback is invited till June 22) for listed insurance companies has proposed that the minimum shareholding by promoters or promoter group be maintained at 50 per cent of the paid- up equity capital of the insurer at all times. Where the present holding is below 50 per cent, that shall be the minimum. These are proposed to apply for all insurers which have listed their equity shares or are in the process of doing so. These guidelines, said Irdai, would be in addition to and not in derogation of any other law in force. The regulator proposes that ownership limits for all shareholders, other than promoters or promoter group, be based on categorisation under two broad categories, natural persons ( individuals) and legal persons ( entities/ institutions). A subsidiary company may invest in a listed insurance company if it complies with all the provisions applicable for such an investment u...

The impact of non- performing assets ( NPA) recognition has hit tax payments by the state- run lenders, but the steel and pharma sector companies have posted handsome increase for the June quarter advance tax outgo. “Public sector banks (PSBs) have not done well this time. But other sectors like steel and pharma have done comparatively better in the quarter ending June 15,” Principal Chief Commissioner of Income Tax and head of the Mumbai zone of the Income- Tax department DS Saksena said. “However, we do hope that the collections would be better in the forthcoming quarters,” he added. Specific figures for bank- wise payments were not immediately available. A company pays 15 per cent of its yearly liabilities in the June quarter. It is seen as abarometer for performance. PSBs of late have registered hefty reverses as a result of the ( Reserve Bank of India) RBI- mandated asset quality review. “Late last year, RBI did an asset quality review for the banks, asking them to dec...