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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

Updates Of the Day 1.ICAI clarification on use of CA Logo and ICAI Emblem inside a rounded triangle with white background is permissible to be used by the members. 2.RBI issued a direction to all Scheduled Commercial Banks (excluding Regional Rural Banks) on implementation of the Gold Monetization Scheme, 2015. 3.Service tax department clarification dated 23rd October, 2015: Mere transfer of title in immovable property is exempted from service tax after issue of occupancy certificate but before issue of completion certificate. 4.Shipping Company in UAE owned by the shareholders in Switzerland could not be said to have been created for the purpose of availing India - UAE tax treaty benefits. [ITO vs MUR Shipping DMC Co., UAE [Rajkot ITAT] 5.Section 147 can be invoked only if AO has reason to believe that taxable income has escaped assessment. [Oriental Insurance Company vs. CIT (Delhi High Court)] 6.E-file TDS statement for the quarter ended on 30th Sept., 2015 by 31st Oct., 2015

Metallic scrap recyclers in India are in a fix over the sudden change in the nomenclature of some types of metallic scrap by the global industry body Institute of Scrap Recycling Industries ( ISRI). This, at a time when finished products are available at cheap rates due to dumping, resulting in a fall in scrap demand for recycling. Washington- based ISRI, which represents 1,600 scrap recycling companies worldwide, amended its specifications and incorporated radio- mixed hard/ soft scrap lead, which consists of clean lead solid and lead shots free of other materials. Also, relay — lead covered copper cable — has been added to the existing categories of metallic scrap for trading on bilateral basis — negotiations between buyers and sellers. Earlier, these scrap varieties of nonferrous metal scrap were allowed to trade freely. The change in scrap trading specifications has come at a time when the scrap recycling industry in India is facing reduced demand from consumer industries