CA Online

www.caonline.in News... 1. Relaxation from deduction of tax at higher rate u/s. 206AA. [Notification No. 53/2016-IT]. 2. Revised procedure for online submission of TDS/TCS statement.[ Notification No. 11/2016-Income Tax (DIT Systems)]. 3. CIT cannot revise assessment for issues already examined by AO. [M/s. Rachana Finance & Investments Pvt. Ltd. vs. CIT (ITAT Mumbai) I.T.A. No. 2795/Mum/2014]. 4. Forms AOC-4, AOC-4 XBRL, GNL-1, INC-6, INC-2 and CRA-2 recently revised on MCA 21 portal. Download latest versions for filing. 5. 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.

After Mauritius, a visiting delegation of Mediterranean island nation Cyprus will negotiate changes in the bilateral tax treaty today to allow New Delhi to tax capital gains. Ahead of India rolling out the General Anti- Avoidance Rules, the Cyprus delegation, led by its high commissioner, will hold daylong talks on amending the double taxation avoidance agreement with the Central Board of Direct Taxes chairman Atulesh Jindal. India will also be re- signing the tax pact with Singapore. Cyprus, the seventh largest foreign direct investment source for India, will press on being taken off the blacklist, the so- called “ notified jurisdiction” for not sharing tax information. Business Standard New Delhi,   28th June 2016

IAMAI says a `forward looking' Bill that is supposed to modernise Indian governance fails to recognise the Internet and digital economy in India The new Goods and Services Tax (GST) Bill, likely to be tabled in the coming monsoon session of Parliament, seems to have “pushed the internet economy under the bus“, said industry body Internet and Mobile Association of India. The new GST Bill is a missed opportunity to set up a futuristic regulatory regime with focus on the key sectors that are expected to drive growth in the country , IAMAI said on Monday . At the heart of the issue is that the Bill's extant Service Tax Profile recognises services like advertising and online information services, online information and database access, internet telecommunication services and telecommunication services as separate service categories. This means that services provided by companies such as Airtel Vodafone, Google, Facebook, WhatsApp or a Flipkart are identified as the same in t...

Finance Minister Arun Jaitley will meet industry associations today to clear doubts about the four- month window provided to holders of undeclared wealth to come clean. This will be the first such meeting Jaitley will hold to explain provisions as well as clear misgivings about the one- time compliance window. The income tax department has already adopted a four- pronged strategy to ensure success of the scheme. Prime Minister Narendra Modi on Sunday had warned black money holders to take advantage of the scheme or face action. “ The minister will meet industry chambers, CAs and other professionals in relation to IDS,” a finance ministry official said. To let the domestic black money holders come clean, Jaitley had, in the Budget, announced a four- month window under the Income Declaration Scheme ( IDS), 2016 Business Standard New Delhi, 28th June 2016

The government has initiated the process of constituting a monetary policy committee ( MPC), bringing into force the relevant amendments in the Reserve Bank of India ( RBI) Act from Monday, the finance ministry stated. Rules governing the procedure for selection of members of and terms and conditions of their appointment and factors constituting failure to meet the inflation target under the MPC framework were notified, it said. However, at the time of going to print, the changes had not been notified on the Gazette of India website. Nor had the RBI Act on the central bank’s website been changed. The MPC will decide the benchmark interest rates, which have so far been decided by the RBI governor. After long disagreements on the MPC composition between the ministry and RBI, it had finally been agreed that it would have six members. The governor will head the panel. Three members, including the governor, will be from the RBI. They will be a deputy governor and an executive direct...

The Prime Minister’s Office ( PMO) is monitoring the response to the four- month domestic black money disclosure scheme, reviewing weekly reports sent by the finance ministry. “Prime Minister Narendra Modi is personally monitoring the ( response to) the domestic black money scheme, with weekly reports being sent to the PMO,” said a finance ministry official. The department of revenue is sending progress reports on declarations received and outreach measures to popularise the Income Declaration Scheme- 2016. According to a finance ministry official, the declarations have indicated the scheme has seen a better response than the one for black money stashed abroad announced last year. The department, however, refused to divulge the number of declarations made so far. “This is the first month and many declarations have already come in, unlike in the case of foreign black money last year when most declarations came in during the last month. But that was also because the number was sm...

Moody's Investors Service has said the relaxation in foreign investment rules is credit positive for India and illustrates that the government's reform agenda remains on track. The US-based rating agency has a positive outlook on India's investment grade Baa3 rating. The government announced FDI reforms earlier this month, bringing more ndustries under automatic approval, raised sector caps for some sectors such as airlines and relaxed local sourcing requirements for single-brand retail. “The announcement ..demonstrates a continuation of reform momentum and paves the way for private nvestment and a boost in productivity,“ the agency said on Monday. It said higher FDI nflows will help support India's external financing needs at a time when portfolio flows have moderated. “Net FDI inflows have increased over the past two years, reaching record highs in the fiscal year that ended 31 March 2016 of $36.0 billion from $24.2 billion on average during the preceding three fisc...

Officials say few willing to declare wealth, Modi's warning may work Tax evaders and avoiders may not bite the bait of Prime Minister Narendra Modi's latest amnesty scheme and officials and consultants estimate the mopup to be only about Rs.1,000 crore, against Rs.33,339 crore declared re, against ` way back in 1997. While there is no official figure released by the government, some tax officers in the know estimated only about Rs. 1,000 crore are likely to be declared. The current scheme caters only to domestic black money and is set to attract a tax rate of 45%. Tax amnesty schemes tend to be fallow ground except when announced at long intervals. India has had 12 amnesty schemes since 1951, four of them since the economy was opened up in 1991. The 2015 scheme by the government had about 638 declarants and revenue of around Rs. 3,770 crore. While the 1997 one was had a revenue of about ` . 9,584 crore from about 4,76,133 declarants. ET spoke to income-tax officers ...