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Showing posts from June 29, 2016 News... News...
1. No TDS on commission paid outside India for services received outside India by Non-Residents.[DCIT vs. M/s Sess Resources Ltd. (ITAT Panaji)].
2. 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.
3. No TDS u/s 206AA on some payments to non-residents without PAN if TIN & other specified details & documents furnished. Notification 53 of  Dated :24.6.16.
4. 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].
5. Auditor’s opinion on Section 80P interpretation, cannot be a information for reopening u/s 147. [Jaipur Sahakari Kraya Vikraya Samiti Ltd. vs. ITO (ITAT Jaipur)].

I- T dept to establish over 60 taxpayer centres

The income- tax department will establish over 60 facilitation centres — Aaykar Seva Kendras ( ASKs) — in FY17, from Goalpara in Assam to Neemuch in Madhya Pradesh, as part of its efforts to widen taxpayer base. The ASKs help a person in conducting personal and business operation with the department, ranging from obtaining a new permanent account number to filing income tax returns. The Central Board of Direct Taxes. Business Standard New Delhi, 29th June 2016

Assess resilience of reinsurers for risk concentration: RBI

There is a need to assess the resilience of reinsurance companies, with increasing concentration of contingent liabilities in some, says the Financial Stability Report. If major ‘ risk events’ happen simultaneously, these companies might come under heavy stress. Which could create big problems, including a risk of insolvency, for primary insurance companies, it said. Reinsurance is where primary insurance companies themselves buy insurance for the risks they cannot retain entirely with themselves, from one or more insurance companies ( reinsurers). There is only one reinsurer in the country, the General Insurance Corporation of India ( GIC Re), owned by the government. GIC Re reported a solvency ratio of 3.04 at end- March 2015 ( 2.73 a year before this). However, foreign reinsurance entities also do business here, though they have no branch presence. The report’s reference is to these, too. Many foreign reinsurers have applied to the sector regulator for a branch presence in the country.…

CBDT relaxes rules for TDS claims by non- resident firms

Non- resident companies can now claim benefits of tax treaty by just providing personal details, including name, address and tax residency certificate, even without providing a permanent account number (PAN). The Central Board of Direct Taxes has come out with Rule 37BC, which gives relaxation to non- residents from furnishing PAN in India, while claiming tax deducted at source. It said in the absence of PAN, a nonresident can now provide the prescribed information and will not be subject to higher rate of withholding tax on payments made by Indian companies for interest, royalty,fees for technical services. Business Standard New Delhi, 29th April 2016

Tepid growth in first quarter corporation tax collection

Corporation tax collection grew a mere 2per cent between April 1 and June 18 year- on- year, indicating sluggish economic recovery. Corporation tax yielded Rs.55,000 crore in this period, a finance ministry official told Business Standard. Experts said poor corporation tax collection growth reflects persistently weak profitability and output, besides sluggish demand in the economy. While direct tax collections posted a 22 per cent growth at Rs. 1.2 lakh crore, it could be attributed to buoyant growth in personal income tax because of changes in the advance tax collection rules. Of the total direct tax collection, Rs.64,000 crore came from personal income tax, representing a growth of 48 per cent. The official said while 22 per cent growth in direct taxes was unusually high for Q1, corporation tax growth of 2 per cent was unusually low. “ Corporation tax growth in the first quarter has been unusually low. This indicates that all is still not well with the corporate side of economy,” said …

Stressed firms coming back on track: RBI

Stressed companies are deleveraging fast and the number of ‘ weak’ companies in the economy is declining, according to the bi- annual report of the Financial Stability and Development Council ( FSDC), released by the Reserve Bank of India ( RBI). ‘Weak’ companies are those that have interest coverage ratio of less than one. Interest coverage ratio is profit before interest and tax divided by interest expense. Despite this, the risks to the banking system have “ worsened significantly,” the report noted, as companies may not be paying back loans fast enough. “ Risks to the banking sector have sharply increased since the publication of the previous stability report in December.” The report added that this was due to deteriorating asset quality and lower profitability. RBI conducted its asset quality review ( AQR) last year to make banks disclose bad loans and make provisions for them. This increased the quantum of non- performing loans and provisioning significantly in the December 2015 an…