CA Online

www.caonline.in News... 1. Ministry of Finance has issued Indirect Tax Dispute Resolution Scheme Rules, 2016. 2.Simplification of procedure for Form No. 15G & 15H. Notification No 1/2016 Dated: 09th June, 2016. 3.Ministry of Finance has amended the Service Tax Rules, 1994 by issuing The Service Tax (Fourth Amendment) Rules, 2016. 4.Service Tax on Flats can not be Levied on Composite Contracts. [Suresh Kumar Bansal and Anuj Goyal v. Union of India, (Delhi HC)]. 5.Today (10.06.16) is Last Date to file ER-1, 2 & 6 for Excise returns by Non SSI assesses, EOUs and by units paying duty above 1 crore respectively for May 2016.

Tells DIPP policy could be tweaked to give high-tech cos time frame to implement condition The Foreign Investment Promotion Board (FIPB) has written to the Department of Industrial Policy and Promotion (DIPP), asking it to incorporate relaxation in local sourcing rules for foreign-funded single-brand retailers selling products with cutting-edge technology. In its letter to DIPP, which has been lobbying for clearance for Apple Inc to set up its stores here, the board that vets foreign investment proposals said the single-brand retail policy could be tweaked to give high-tech companies a time frame within which they need to meet the sourcing condition. “Any relaxation in the time frame for sourcing has to be part of the FDI policy framework and cannot be on a case-to-case basis,“ said a government official. “The FIPB will be able to grant any relaxation only then.“ Also, a decision on the sourcing rule cannot be made with respect to one company and an enabling policy framework mu...

REGULATOR NOT COMFORTABLE as DRs are transferable and identity of overseas holders is not certain After curbs on participatory notes, India's capital market regulator is proposing a clamp down on unsponsored depositary receipts (DRs). An unsponsored DR is one which is not backed by the issuer company , but run by global custodians of shares (unlike a sponsored DR, which is backed by the company). A custodian buys shares from investors (and not the company) in the local market, creates a pool and facilitates trading of these shares abroad. The Securities and Exchange Board of India (Sebi) is learnt to have told the government that it is not comfortable with allowing this instrument as DRs are transferable and the identity of the overseas holder will not be known. “If you are uncomfortable with PNs (participatory notes) then this (un-sponsored DRs) is PN to the power of N,“ said a regulatory official familiar with the development. In 2014, following the recommendations of t...

The government is looking to tweak the investment norms for National Investment and Infrastructure Fund ( NIIF) to allow investors to co- invest in this sovereign wealth fund as also in the individual projects. The norms would be tweaked within the broad framework of the investment to take into account suggestions from the domestic and foreign investors, Economic Affairs Secretary Shaktikanta Das said on Thursday. Das also expressed hope the retail inflation would remain at five per cent this financial year, in line with the Reserve Bank of India’s projection, and help India develop into a low- cost economy in terms of lower interest rates, transaction costs and logistics costs. Das further said Indias economy is likely to grow at eight per cent this year. “With a good monsoon which we expect this year, with the passage of GST, which also the government is very confident that it will happen in the monsoon session of the Parliament and the cumulative result of all reform measu...

Host of companies from the logistics, cement, automobile, consumer and media sectors stand to benefit once the Bill goes through and gets implemented Passage of the goods and services tax ( GST) Bill has been pending for a long time but the expectations have now increased on its passage in the next session of Parliament. If so, many sectors and companies will gain, especially those dominated by unorganised entities. For, the Bill will shrink differential tax rates and increase tax compliance. Given the recent buzz, certain companies in the logistics and realty segments have already seen some run- up in their share price. Once passed, it will lead to more clarity on date of implementation and rates applicable. However, based on the proposal, sectors that can benefit include automobiles, ancillaries, consumer goods, retailing and logistics, beside infrastructure and building material. Logistics is being looked on as a major beneficiary among sectors. Sandeep Upadhyay, managing di...

Those buying under- construction property have got a surprise benefit from the Delhi High Court ( HC) recently. The court has ruled that that since there is no provision to calculate the value of service in a deal between builder and buyer, there should be no service tax on it. While the judgment will definitely apply to buyers within Delhi’s jurisdiction, it could also have an impact on property deals in other states. The judgment also says service tax should be refunded in case of buyers, who have purchased property after 2012. However, there is a catch: experts believe the tax department is likely to appeal against the order, as otherwise it would mean a huge tax outflow for the government for refunds. But until that happens this order holds and flat buyers can technically refuse to pay service tax on under- construction property or existing buyers can even seek refunds. In other cities, buyers could also cite this order. Today, the service tax on under- construction property ...

www.caonline.in News... 1. No Service tax on sale of under construction flats if contract price includes land value. [ Suresh Kumar Bansal vs UOI (Delhi High Court)]. 2.SEBI cautions investors not to invest in Schemes offered by entities barred by SEBI from raising money or entities not registered with SEBI. 3.Trading in cash and derivative segment cannot be splitted as speculative and non-speculative. [ J.G.A Shah Share Brokers P. Ltd. vs. DCIT (ITAT Mumbai)]. 4.Record Maintenance of warehoused goods in electronic form. [Circular No 25/2016-Customs]. 5.Under DVAT Commodity code to become mandatory from Q1 2016-17.

Tax will be imposed if payment exceeds Rs.10L or there is a cash payment of over Rs.2L Buyers of cars and premium two-wheelers who pay more than Rs.2 lakh of purchase price in cash will be levied 1% tax as part of the government's drive to  stifle the black economy. Finance minister Arun Jaitley had announced 1% tax collected at source (TCS) on cars costing more than Rs.10 lakh in his budget speech. Now, Central Board of Direct Taxes (CBDT) has clarified that car dealers have to collect this tax on every motor vehicle sale to individuals where payment exceeds Rs.10 lakh or there is a cash payment of over Rs.2 lakh. The apex direct taxes body has issued detailed clarification in form of frequently asked questions on the applicability and scope of TCS on sale of motor vehicles following an amendment in this regard in the Finance Act, 2016. The Finance Act has expanded the scope of Section 206 C of the Income Tax Act to include in its ambit sale of goo...

HC says buyers can't be charged service tax on payments for such flats if its total value includes land as well The Delhi High Court has said that home buyers cannot be charged service tax on payments made towards purchase of under construction apartments from builders if the total value of the apartment includes the land value. However, service tax can still be levied on preferential location charges (PLC) that builders charge from buyers. The court also said that if the developer has already collected service tax, buyers would be refunded the amount with 6% rate of interest by the revenue department of the government of India. Since the amendment introduced by the Finance Act of 2010, the government charges service tax on buyers of apartments in under construction projects.Service tax is levied only on 25% of the total value of the apartment due to a 75% abatement that is allowed. So at 15% service tax applicable from June 1 this year, the buyer p...

To help expedite cases related to securities markets, the government is planning to amend the Securities and Exchange Board of India ( Sebi) Act with an aim  to increase members and Benches in the Securities Appellate Tribunal ( SAT). A proposal to amend the Act will soon be placed before the Cabinet for its approval, sources said. This will pave the way for more benches and members for SAT. Currently, SAT has only one bench, which sits in Mumbai with one presiding officer and two members. All the orders passed by Sebi can be appealed in SAT. The move to have benches in more cities will help in expeditious. Business Standard, New Delhi, 09 June 2016  

Seeking to make foreign direct investment (FDI) policy simpler, the government on Wednesday released an updated compendium by incorporating all policy changes and eliminating unnecessary explanations, but retains the United Progressive Alliance ( UPA) regime’s policy on opening of multibrand retail for foreign investment. Besides other things, the compendium includes provisions for issue of “sweat equity” to non- resident employees and directors and defined the terms private security agencies, private security and armoured car service. “The FDI policy has been made simpler and investor friendly; facilitating ‘Make In India’ and ease of doing business. The circular will serve as a ready reference for foreign investors on various provisions of the FDI policy," the Department of Industrial Policy and Promotion ( DIPP) said. It said the 109 page policy has also clarified on private security agencies by borrowing definition of few terms from the Private...