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www.caonline.in News... 1.Service Tax Department Cannot Conduct Audits of Assessees: High Court via ( (Mega Cabs Pvt. Ltd. Vs. Union of India & Ors. (Delhi High Court)) 2.Mere AIR Information not sufficient to believe Income escapement via (Sh. Amrik Singh, vs. Income Tax Officer [ITAT Amritsar (SMC)]) 3.Coaching Class Income of ICAI is exempt via (Dy. Director of Income Tax (E) vs. ICAI (ITAT Delhi)) 4.  MCA has notified 29 sections pertaining to NCLT which is applicable with effect from 1/6/2016. Via Notification  SO1934 (E). 5. Statement of TDS for sale of property u/s 194-IA to be filed within 30 days with effect from 1/6/16, due date aligned with due date of deposit of TDS. CBDT Notification No. 39/2016.

A May tax department circular giving tax officers freedom to determine whether buyout transactions are liable for higher tax is giving sleepless nights to the country's bulge bracket buyout funds. A Central Board of Direct Taxes (CBDT) circular on May 2, which deals with sale of shares of unlisted companies, provides three exceptions to the general exemption of having your profits classified as business income under the provisions of the revised treaty with Mauritius. While generally, sale of unlisted shares is to be treated as capital gains, the circular says that local tax officials could have freedom to determine whether it can be treated as business income in three categories. One such category is when a private equity holding a majority or controlling stake in a company sells its entire stake to a third party along with control of the underlying business. Tax experts and private equity funds worry that income-tax officers could categorise the profits or gains from exit

The Income Tax Department’s ( ITD’s) new tax statistics may be classified into two categories, macro economy and micro taxpayer levels. Accordingly I will analyse them in two parts, today’s being macro, for 2000- 01 to 2014- 15. Reported 2015- 16 numbers are provisional or incomplete. The GDP series used by ITD coincides with the Reserve Bank of India ( RBI) series except for the initial four years. Conclusions from the statistics are a mix of bad and good: ( 1) growth in tax buoyancy ( percentage response in tax revenue to one per cent increase in GDP) is not too impressive; ( 2) initial gain in direct tax collection has been challenged by indirect tax and the difference is closing; ( 3) pendency in completing assessment of taxpayers by the tax administration has relatively improved; ( 4) ITD has suffered severe relative decline in its own budget; and ( 5) the number of assesses has grown. First, Figure 1 plots annual buoyancy of the tax system and shows its changes ( arrows). B

Despite the shadow of uncertainty lurking over the rollout of the goods and services tax (GST), state governments have already embarked upon wide-ranging reforms to ensure a seamless rollout of the new indirect tax regime. Several states have brought out amnesty schemes to shore up their tax revenues. The additional revenue garnered through such schemes would come in handy for bargaining with the centre for a higher compensation after GST implementation. Significant progress is also being made on creating the information technology infrastructure to ensure minimum disruptions during the transition. Amnesty Schemes In their 2016-17 Budgets, Bharatiya Janata Party (BJP)-ruled states such as Gujarat, Maharashtra and Rajasthan as well as non-BJP ruled states like Bihar and Himachal Pradesh came out with amnesty schemes for cases related to value added tax (VAT), central sales tax and sales tax. Most of these amnesty schemes revolve around waiver of interest and penalty on payment o

Government needs to speed up implementation of GST, address the issue of cheap imports and improve investment climate as majority of sectors are witnessing moderate growth, says a CII survey. The survey, which tracks the growth of economic sectors on a quarterly basis, also stressed on the quick implementation of the announcements in the budget especially in the infrastructure space, boosting export competitiveness and addressing the issue of delayed payments. Overall, the current trends reveal that majority of the sectors are continuing to witness moderate growth trends with excellent and high growth limited to some sectors, it said. However, a decline in the share of sectors registering low growth is clearly an indication towards the bottoming out of growth trends in the majority of sectors. "Going forward, on the back of the various measures and structural reforms taken by the government, it is expected that the current momentum would be supportive of the revival becomi

The government is mulling Indradhanush- II, expanding the scope of banking reforms, to get rid of bad loans, manage risks better, bring millions of un- banked and under- banked people into the fold as well as create a holding company for the public sector banks ( PSBs). Indradhanush — a sevenpronged strategy to revamp functioning of PSBs through professional appointments, creation of Banks Board Bureau ( BBB), re- capitalisation, destressing, empowerment, accountability, and governance reforms — was launched by Prime Minister Narendra Modi- led government in August last year. Amid rising stress levels among the PSBs, some of the ideas for Indradhanush- II were discussed during the second edition of Gyan Sangam, a bankers’ retreat held in March. “There is a thinking within the government that we should have an Indradhanush- II. In all fairness, we have done appointments, formed a Banks Board Bureau, gone ahead with recapitalisation and initiated consolidation process with the St

www.caonline.in News... 1.IASB, ICAI organising certificate course on concurrent audit at sirsa from July 16, registration: 9050902425, sirsa@icai.in 2.IASB, ICAI org Concurrent Audit Certificate Course at Delhi from July 16 http://resource.cdn.icai.org/42246iasb-nirc-250.pdf 3.National Company Law Tribunal & National Company Law Appellate Tribunal constituted by Central Govt. with effect from 01.06.2016.MCA Notification dated 01.06.16. 4.Claim for Bad debts admissible if written off as irrevocable in the accounts of assessee. CBDT circular no. 12/2016. 5.Delhi High Court delivered a landmark judgment [Mega Cab v UOI and Anr. in WP(C) 5192/2015] - no more audit of assesse recordsby the Central Excise and Service Tax Department as well as CAG and strike down new rule 5A(2) of Service Tax Rules as ultra virus to the Finance Act, 1994. 6.CBDT extends time limit to deposit tax deducted against purchase of property from 7 days to 30 days from the end of month in whichsuch deduct