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Updates Of the Day 1.MCA has granted relaxation of additional fees and extension of last data of filing of E-Forms AOC-4, AOC-4 XBRL and MGT-7 under the Companies Act, 2013 upto 30th November, 2015. 2.Extension to 16th November 2015 of last date to file DVAT-16, DVAT-17 and DVAT- 48 for Quarter-2 of 2015-16, circular number 27 of 2015-16. 3.The packaged, ready-made, off the shelf software are pure goods liable only to VAT. [High Court of Karnataka, Fin department of Karnataka vs IBM India Private Limited.] 4.Allegation against counsel of revenue prima facie constitutes criminal contempt of court. [Delhi High Court: CIT vs. M/s Escorts Ltd.] 5.Revenue not authorized to rewrite terms of agreement and adjudge commercial expediency. [Supreme Court: Mangalore Ganesh Beedi Works vs. CIT.] 6.A liaison office of a foreign company identifying suppliers and material is not a permanent establishment under Article 5 of India-USA DTAA. [Columbia Sportswear Company vs. DIT] (Karnataka High Co...

Offshore rupee- denominated bonds will attract a withholding tax of five per cent, and gains arising in case of appreciation of rupee against the foreign currency in which the investment is made would be exempted from capital gains tax, the finance ministry clarified on Thursday. The clarification comes in the wake of companies such as NTPC, IIFCL, and IRFC planning to issue rupeedenominated bonds in markets abroad, and after foreign portfolio investors had sought clarification on the tax treatment of the instruments, dubbed masala bonds, in a meeting with finance ministry officials last week. In the statement, the Central Board of Direct Taxes (CBDT) said the matter of taxation of income from such bonds under Income Tax Act, 1961 had been considered by the government. “As far as taxation of interest income from off- shore bonds in the case of non- resident investors is concerned, it is clarified that withholding tax at the rate of five per cent, which is in the nature of final...

Technology vendors met with market regulator Securities and Exchange Board of India (Sebi) recently to highlight the chinks in the regulator’s surveillance system. “Vendors have suggested that surveillance at Sebi be made more real time instead of the T+ 1 mechanism that exists today. At present, the regulator checks on the trades that have happened and not the order book, which could give a better clue on any possible manipulation,” said a person familiar with the matter, on condition of anonymity. At present, there is no way to detect if an entity is manipulating the share prices without actually carrying out any trades, added the person. “ It’s like an auction where an entity can drive up prices, forcing others to bid at higher prices,” he said. This is a problem worldwide including developed markets such as the US and the UK, which also track data on T+ 1 basis, say experts. The US SEC has recently invested in a new technology called MIDAS to better track real- time data. ...

The stock markets regulator has said companies need to file a five- sheet prospectus for Initial Public Offerings. IPO is the act of selling shares in a company for the first time. A prospectus is a document that gives information about a companys shares before they are offered for sale. The new norms will come into effect from December 1. Currently, the prospectuses that companies file for public offerings, including IPOs, run into 400 to 500 pages. Investors find them difficult. Sebi said " information as is material and appropriate to enable the investors to make an informed decision shall be disclosed in the abridged prospectus". Business Standard, New Delhi, 30th Oct. 2015

To enable Indians living abroad to access old age income security, the Reserve Bank of India on Thursday allowed non- resident Indians ( NRIs) to subscribe to the National Pension System ( NPS). “It has now been decided, in consultation with the government, to enable National Pension System ( NPS) as an investment option for NRIs under FEMA, 1999,” RBI said in a notification here on Thursday. NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and Development Authority ( PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest according to the provisions of the PFRDA Act, it said. The subscription amounts shall be paid by the NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/ FCNR/ NRO account. RBI, however, said there would be no restriction on repatriation of the annuity/ accumulated savings. NPS was launched on January, 1 2004, with...

The largest employers’ organisation in the country urged the government on Thursday to consider applying amendments to the Payment of Bonus Act, 1965, from financial year 2016- 17 and not retrospectively from April 1, 2015, as passed by the Cabinet earlier. The All India Organisation of Employers ( AIOE), an allied body to the Federation of Indian Chambers of Commerce and Industry ( Ficci), argued that applying the amended Act from the start of the current financial year would prove a serious operational challenge to businesses. The main reason for this is that the enhanced amount has not been provided for in the balancesheet of companies in financial year 2014- 15, it said. The Payment of Bonus Act, 1965, is applicable to all industrial units and other establishments, where 20 or more persons are employed on any given day during an accounting year. The labour ministry had last month proposed an amendment to the Act, whereby all employees earning up to Rs.21,000 a month be elig...

Updates Of the Day 1.ICAI solicits suggestions / views on ITR forms as Ministry of Finance, has constituted a committee on ITR forms to review the existing ITR forms and suggest modifications. 2.No VAT is leviable on website selling goods via electronic mode. in the case of [Flipkart] (Kerela High Court) quashed the demand on Flipkart on sales to customers within state. 3.Date for filing DVAT return for 2nd QTR 2015-16 extended to 16/11/2015. 4.Benefit of exemption notification only for goods covered in notification and cannot be extended to similar goods (Supreme Court) [Larsen and Toubro Limited vs CCE] 5.MCA has revised the versions of annual filing forms, e forms AOC - 4, MGT - 7 w.e.f 29th October 2015 and form 8 LLP is likely to be modified w.e.f 28th October 2015. 6.Extension of last date of form AOC-4 XBRL, AOC-4 and MGT-7 to 30th November 2015 without any additional fees. Circular No.14/2015 dated 28/10/2015. 7.AO cannot make adjustment to book profits certified by aud...

In a directive aimed at enhancing taxpayer services, the Income Tax department has asked its customer care centres to effectively monitor email- based complaints of assesses and diligently send them to tax officers. Under the new instructions, Aaykar Sampark Kendras have been asked to forward emails from taxpayers to range in- charges who will then send it to jurisdictional Assessing Officers. Business Standard, New Delhi,29th Oct. 2015

Credit in the banking system continues to grow in single digit. According to the Reserve Bank of India data, Scheduled commercial banks’ credit grew 9.5 per cent to Rs.67,83,127 crore in the fortnight ended on October 16, against Rs.61,92,158 crore a year ago. Deposits increased slightly faster at 11 per cent to Rs.90,73,325 crore. Advances grew by 9.45 per cent at Rs.68,30,245 crore in the previous fortnight, from Rs.62,40,256 crore in the corresponding period last year. “We are not seeing any fresh investments. Demand from corporates is not there. We can see some pick- up in the fourth quarter,” Dena Bank Executive Director R K Takkar said. In the reporting period, deposits rose 11.2 per cent to Rs.90,73,325 crore, against Rs.81,61,169 crore in the corresponding period last year. Demand deposits stood at Rs.8,02,320 crore, up 9.3 per cent from Rs.7,34,127 crore. Time deposits grew 11.36 per cent to Rs.82,71,007 crore from Rs. 74,27,042 crore in the same period last year, th...

Give 0.5% higher returns than domestic term deposits of banks With falling interest rates, locking your savings in deposittaking non- banking financial companies ( NBFCs) might be agood option. NBFCs give at least 50 basis points ( bps) higher rate of return than domestic term deposits of banks. The deposit schemes offered by the top NBFCs are ‘AAA’ rated, which signifies the highest safety for investors. India’s top commercial banks offer 7.25- 7.75 per cent interest rates for fixed deposits of one year, while the rates of NBFCs are higher than eight per cent. In fact, in certain cases, senior citizens get additional interest rate of 0.25 per cent for these deposits. However, that is the case even with banks where senior citizens are offered higher interest rates. “This year, we have already cut rates by 55- 60 bps. Despite the cut in retail deposit rates, the demand for these deposit have not come down because we offer higher rates than banks and these deposits are AAA- rated...

The proposed Goods and Services Tax ( GST) law is the most important reform towards creating a single market in India and if implemented by April 2016 its impact will be visible by 2018, the World Bank said on Wednesday. “... GST will make it easier to pay tax. For example, if it gets introduced by April 2016... you would only see its impact by 2018 as per a survey- based methodology,” World Bank country director in India Onno Ruhl said. Business Standrad, New Delhi, 29th Oct. 2015