GST - INDIA ON THE MOVE

EDITORIAL

* Mr. Vinod Jain, FCA, FCS, FICWA, LL.B., DISA (ICA), Chairman, INMACS and Vinod Kumar & Associates. [email protected], [email protected], +91 9811040004

1AUGUST 2016

CA Vinod Jain*

Convener National EconomicForum, Former Chairman BoSand Member Central Council

Institute of CharteredAccountants of India

Volume XXVI | No. 08 | August 2016

GST - INDIA ON THE MOVEThe government of India has beenable to make substantial progressin one of the historical reforms,while passing constitutionalAmendment Bill by Parliament,practically unanimously to bring ina common indirect tax " Goods andServices Tax".

The federal Union of India gotfurther strengthened by "One Indiaone market" gaining significantstrength. The following benefits areenvisaged:

1. Sub merger of most of the indirect taxes at State leveland at Centre into one single Tax - GST.

2. Transparency in business processes.

3. No cascading effect of taxes, as credit for tax paid bythe vendor supplying the goods will be fully adjustablein tax payable on sales invoices by the seller, at thetime of sales- Seamless credit in successivetransactions.

4. Destination or consumption based taxation i.e. the taxwill be borne by ultimate consumer in the state ofconsuming goods and service.

5. Exports to be more competitive.

6. Movement of goods within India to ease significantly.

7. India to emerge as one single market, expanding growthpotential.

The benefits could be many and all of them cannot beenlisted. The Modi Government biggest success is to achieveunanimity in Rajya Sabha, which will pave way for smootherparliament democracy and better political atmosphere, beingmost important for peace and progress.

BJP, PM Narendra Modi, Shri Arun Jaitely, Shri Amit Shahall are to be congratulated. At the same time congress, andentire UPA as well as communist party all are to be givenadequate credit for their support.

Task ahead

The constitution amendment bill is now required to be passedby majority of the Sates in their State legislature. Thereafteronly the constitutional amendment will become valid onreceiving President assent.

The real challenge will be to pass the detailed law for:

i. Central GST

ii. State GST

iii. Interstate (Integrated) GST

The actual drafts of these laws are to be fine- tuned beforepresenting the same before the parliament and all statelegislatures. The bills will be required to be debated threadbare to examine all practical issues and to find workablesolutions acceptable to all stakeholders. This looks simplebut complexities will come as various stakeholders examineactual impact on them.

In all likelihood bills will be referred to select committeeof parliament as well as of State level select committeesof the state legislature, where all stakeholders will beheard.

It is important to not to pass the bill into final law in ahurry. Even the working Rules and Returns to form partof the law will be a still larger challenge. It will also becrucial to provide at least 6 months to 12 months for detailedexamination and preparation to the users of law after theAct and Rules are in place, before they are notified. Anycompromise on this aspect will severely impact businessesadversely. The law need to be disseminated, understoodand all processes will need finalization by each stakeholder.Even the accounting and ERP software will have to besubstantially upgraded and modified to change entirely inaccordance with law. A reasonable target of final notifieddate could be 1st April 2019.

The following major decisions will also be important at theend of the Government:

Information technology backbone, system andprocesses.

Contd............3

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THE CHARTERED ACCOUNTANT WORLD

AUGUST 2016

LATEST IN FINANCE

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LATEST IN FINANCE1.0 New FDI norms will make India a defence

export hub

The recent relaxation of foreign investment normsin the defence sector will transform the countryinto an "export hub" for weapons and armamentsin the future, said Defence Minister.

2.0 Net neutrality rules should be same for all:Telcos

The Cellular Operators Association of India andthe Association of Unified Telecom ServiceProviders of India have submitted a joint responseto the Telecom Regulatory Authority of India(TRAI). The telecom sector should not be at thereceiving end of net neutrality rules. The internetis an ecosystem and, therefore, same rules shouldapply to all stakeholders including contentproviders, telecom service providers, devicemanufacturers and services subscription entities.

3.0 Mines Act - mandate clearance of MiningLicense by January 2017

The new Mines and Minerals (Development andRegulation) Amendment Act, 2015, has stipulatedthat all licences henceforth would be grantedthrough only auctions by the respective stategovernments. However, if any company wasissued a letter of intent by the state under the oldlaw, the licence for that block should be grantedby January 2017. If any mining proposal has beenapproved by a state government under the earlierlaw but got stuck with the Centre, the licencemust be issued by January 2017.

4.0 Offshore mineral exploration to becommenced soon: Mines secretary

India would soon start offshore exploration ofrare minerals and relevant rules would be in placein three months. About 50-60 blocks would beput on auction or would be allotted through acompetitive bidding process. The blocks that havebeen identified are seven nautical miles from thecoast.

5.0 LS clears the Enforcement of SecurityInterest and Recovery of Debt laws andMiscellaneous Provisions Bill, 2016

RBI oversight of the asset reconstructioncompanies.

Central registry to record details of allsecured assets.

Priority of debts due to secured creditorsover all other debts and claims.

Time for filing appeal to the AppellateTribunal cut from 45 days to 30 days.

50% of debt to be deposited for filing anappeal; can be cut to 25%in some cases.

Right to take over secured property;appointing receiver for such property and tosell the same.

Time can be given to borrower if 25% debtdeposited with promise to pay full.

Depositories empowered to transfer asset toARC.

A fit and proper person can sponsor an ARC.

Protection for secured creditor, RBI, centralregistry or any of their officers for actiontaken in good faith.

6.0 Loan recovery through agents unlawful: court

The Kerala High Court has taken strong exceptionto the practice of banks and financial institutionsengaging agents to recover loans through strongarm tactics.This is not only unlawful but alsounethical.

'Not enforceable'

The practice is also opposed to public policy andagainst protection of public interest. Recoveryof loans is enforced on the pretext that deliveryof justice through court of law is a slow process.

"I have no hesitation to hold that agency createdby the bank for realisation of loan dues….is anagreement opposed to the public policy and hencenot enforceable," the judge ruled.

7.0 New Lending Rate system a boon for mid-sized banks

The Marginal Cost of Funds based Lending Rate(MCLR) system could become a tool forexpanding business as it gives an opportunity tooffer lower rates in short-term maturities, openingup a new market which was so far not withinthe reach of lenders.

The key difference between MCLR and theprevious base rate regime is that the new ratesare divided into different baskets corresponding

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ALL INDIA CHARTERED ACCOUNTANTS’ SOCIETY

AUGUST 2016

LATEST IN FINANCE / EDITORIALALL INDIA CHARTERED ACCOUNTANTS’ SOCIETY

GST - India on the Move

to bank deposits. So banks will have an overnightMCLR, a one-month rate, a three-month, sixmonth and one year rate at which it can price itsloans.

The only difference is that the loans have to bere-priced based on the deposit basket which theyare linked to, unlike rates in the base rate whichused to move when the bank used to change itsrates.

8.0 Regulator can review power tariff in PPA

The tariff fixed in a Power Purchase Agreement(PPA) is not sacrosanct and it could be reviewedby the State Electricity Regulatory Commission,which is the statutory authority for fixing tariffunder the Electricity Act, the Supreme Court ruledin its judgment, Gujarat Urja Vikas Nigam Ltdvs Tarini Infrastructure Ltd.

9.0 Sebi eases: Institutional Trading platform

IT companies to qualify on this platform needQualified Institutional Buyer (QIB)shareholding of at least 25 per cent; othercompanies need 50 per cent.

Sebi has proposed to expand the definitionof QIBs to investors such as NBFC, familytrusts and individual foreign investors. Also,to do away with the 25 per cent cap on single

investors listed on the platform. NBFC andTrust to have net worth of atleast Rs. 500crores.

Further, it proposes to reduce the minimuminstitutional investor participation, from 75per cent to 50 per cent. Also, to increase theceiling on allotment to individual institutionalinvestors from 10 per cent to 25 per cent toa single entity. Sebi has also proposed tomake market making compulsory for aminimum of three years for an issue size ofless than Rs 100 crore.

10.0 Demat a/c holders of NSDL, CDSL can tradein G-Secs on NDS-OM platform

The Reserve Bank of India (RBI) allowed demataccount holders of NSDL and CDSL to putthrough trades in government securities (G-Secs)on the Negotiated Dealing System - OrderMatching (NDS-OM) platform. The central bankadded that the scheme seeks to facilitate efficientaccess to the retail individual investor to the sameG-Sec market being used by the large institutionalinvestor in a seamless manner.

11.0 Sustainable Structuring of Stressed Assets(S4A) Scheme

According to the scheme, banks can convert halfthe company's loans into equity/redeemable

Department and officials to administermanufacturers, traders, service providers- divisionbetween states and central Government. Eventhe Government machinery will need training andunderstanding of law clearly.

Decision on

Tax free products and services,

"NIL" Tax products and services,

Low rate tax products and services,

Maximum ceiling tax rate - Goods or Services

Process to ensure that no large refunds orunadjusted credit remains with dealers e.g. withexporters, adversely impacting trade orcommerce.

Collection methodology from importers.

Special tax zone like Jammu & Kashmir,

Uttaranchal, Assam and Eastern states, Himachal -existing continuing exemptions on "NIL" taxregime & other migration issue.

Incentive mechanism for segments to be promoted.

Tax on food items, housing, jewellery, education,health, legal services, regulatory and governmentservices needs careful handling.

Off books transactions and parallel economy willbe a larger challenge.

Tax rate on services has to be much lower thanGoods to ensure growth of service sector, existingcredits, procedures, processes, returns, registration,exemption threshold and so on.

We, Chartered Accountants will have a major role inGST's successful implementation and its effectiveness,efficiency and smooth functioning. We are ready to takeon the major task ahead and support the Governmentas well as businesses in implementation, with minimumpain and teething troubles in initial 2 years & thereafter.

EDITORIALfrom pg....... 1

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AUGUST 2016

LATEST IN FINANCE / DIRECT TAXATIONoptionally convertible preference shares oroptionally convertible debentures in the next 90days. The rest will be serviced according topresent terms and conditions.

12.0 India's largest spectrum auction to start from29 September, 2016

The government will put a total of 2,354.55megahertz of mobile airwaves frequencies forauction all band -- 700 Mhz, 800 Mhz, 900 Mhz,1800 Mhz, 2100 Mhz and 2300 Mhz. All theairwaves being put for auction can be used forhigh-speed 4G services. Bidding rounds for thecountry's biggest-ever spectrum auction willbegin from September 29, in which mobileairwaves worth Rs. 5.63 lakh crore at the baseprice value will be put up for sale.

13.0 Sebi proposes valuation norms for InvITs

The Securities and Exchange Board of India(SEBI) has issued a consultation paper onfinancial disclosures and valuation of the units ofthe newly introduced Infrastructure InvestmentTrusts (InvITs).

14.0 LIC body to guarantee bonds of infrastructurecompanies

The government plans state-owned LifeInsurance Corporation to join other state-runfinancial institutions to set up a new entity toprovide credit enhancement to bonds issued byinfrastructure companies, a move that can helpthem raise funds easily. The proposed newinstitution will help improve credit worthiness ofbonds issued by infrastructure companies,making them more attractive to investors. Underthe proposed structure, LIC will hold a majoritystake in the firm while the rest will be held bytwo or three large state-run banks and financialinstitutions. Multilateral financial institutions mayalso be roped in at a later stage.

15.0 Centre approves Draft Real Estate AgreementRules for UTs

The Ministry of Housing & Urban PovertyAlleviation has firmed up the Draft Agreement forSale Rules, 2016 applicable for the five UnionTerritories of Chandigarh, Andaman & NicobarIslands, Daman & Diu, Dadra and Nagar Haveliand Lakshadweep, an official statement said onMonday.

Under these Draft Rules, promoter is required to

clearly indicate the date of delivery of possessionto the allottee in the Agreement itself. "However,there is a provision for extension of this date dueto force majeure.

There shall be a clear mention in the Agreementof date of grant of commencement certificate,clear land title giving the area of project andKhasra numbers, number of stories and plots inthe project, carpet area and common area, shareof allottee in common area, total price etc.

DIRECT TAXATION1.0 No TDS by Overseas Banking Units

Tax is not required to be deducted on interestpaid by IBUs, on deposit made on or after1.4.2005 by a non resident or a person who isnot ordinarily resident in India, or on borrowingsmade on or after 1.4.2005 from such persons.

Circular No. 26/2016

2.0 Taxpayers get relief from recovery duringpendency of stay

In a relief to tax payers, the government has askedtaxmen not to proceed with recovery of a'confirmed' demand in relation to indirect taxesduring pendency of stay applications.

The CBEC issued a circular on 'Recovery ofConfirmed Demand of Tax During thePendency of Stay Application' in relation toindirect taxes.

Confirmed demand of tax arises, when afterexamining the submissions of a tax payer, an orderis issued confirming demand of tax from a taxpayer.

3.0 Ban cash transactions above 3 lakh: SIT

The Supreme Court-appointed SpecialInvestigation Team (SIT) on black money hascalled for a complete ban on cash transactionsabove Rs. 3 lakh as well as setting a Rs. 15-lakhcap on cash holdings by individuals.

It further said the government should frame anew law to make transactions above this thresholdillegal if the amount is not paid by cheque, bankdraft, or electronic clearing system through abank account.

4.0 E-filing: ATM-based validation facilityactivated

The Income Tax department has launched anATM-based validation system for filing e-ITRs

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AUGUST 2016

DIRECT TAXATION

Income Declaration Scheme rule on old casesclashes with I-T Act

A provision in the scheme allows the I-Tdepartment to go after evaders for undisclosedassets acquired well before six years. Today, taxofficers, as per law, refrain from reopeningassessment which are more than six years old.

"The IDS changes this as it empowers assessingofficers to revisit old matters. It is against theIncome-tax Act and settled nature of taxassessment," said a tax official in Mumbai. TheIDS provisions even legally do not over powerexisting 6 years limitation and FAQ issued in thisregard is not maintenable as per jurisprudence.

I-T dept identifies 90L non-PAN high-valuedeals sans PAN

The Income Tax department has identified 90 lakhhigh-value transactions carried out without quotingPAN, the Finance ministry said asking tax evadersto own up and come clean on such transactions.

Tax and surcharge payable under section 184, andthe penalty payable under section 185 in respectof undisclosed income can be paid:

25% by 30th November, 2016 25% by 31st March, 2017 50% by 30th September, 2017

Notification No. 59/2016

Declaration made under the Scheme can berevised upwards before the date of closure of theScheme i.e. 30 September, 2016.

The cases of the declarant shall not be selectedfor scrutiny under the CASS on the ground thatthere is increase in capital in the balance sheet asa result of the declaration made under the Scheme.

Immunity to the directors or the partners, as thecase may be, shall be available in respect of theundisclosed income declared under the Schemeby the company or partnership firm.

A person having undisclosed income in the formof an investment in immovable property in thename of his spouse can declare the fair marketvalue of the property in his own name if the fundsfor acquisition of the said property were providedby such person.

Circular No. 27/2016

INCOME DECLARATIONSCHEME

by taxpayers as part of its measure to enhancethe paperless regime of filing the annual IT returns.

"Now, Electronic Verification Code (EVC) canbe generated by pre-validating your AutomatedTeller Machine (ATM) provided by the bankwhere a taxpayer has an account.

5.0 Companies to get PAN, TAN within a day;paperless application starts

Companies can now obtain PAN or TANregistration within a day if they submit digitalsignature certificate based application, therebyensuring ease of doing business, Income Taxdepartment said today.

Besides, individuals can now get a new PermanentAccount Number (PAN) through Aadhaar-basede-signature facility which will reduce the effectivetime in allotment.

6.0 I-T scrutiny notices - 3 Categories

In a bid to end taxpayers' harassment, the FinanceMinistry has "modified" the Income Taxdepartment notice issued for the tedious scrutinyprocedure by bringing in "three new formats" thatwill clearly stipulate if the inquiry against them is"limited, complete or manual".

7.0 Land intended to be used for commercialpurpose at time of sale can't be deemed asagricultural land

ITAT Bangalore bench held that capital gainsaddition in respect of sale of various lands heldby assessee an individual engaged in buying/sellingof immovable properties was to be upheld as landwas converted from agricultural to non-agricultural prior to sale with sole purpose andintent to sell land for industrial purpose and periodof holding was also very short; land in questiondid not fall under exclusion clause (iii) to section2(14).

Deputy Commissioner of Income-tax, Circle 5 (1),Bangalore v. B. Sudhakar Pai. [2016] 71 taxmann.com318

8.0 Hedging loss suffered by assessee to beallowed as business loss.

ITAT Mumbai bench held that where assesseeengaged in manufacture and export of processedfood products, in order to safeguard itself againstfluctuations in exchange rates of foreigncurrency, entered into foreign exchange forwardcontracts with banks against confirmed export

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AUGUST 2016

DIRECT TAXATION / CORPORATE LAWSorder, hedging loss suffered by assessee in respectof said forward contracts was to be allowed asbusiness loss.

[2016] 71 taxmann.com 299

9.0 Sum paid to facilitate Call Centers tocommunicate with USA customers held as'royalty'

ITAT Delhi bench held that where assessee UScompany provided Indian company a gatewaythat would facilitate communication from Indiato people of USA and vice versa and same wasdone through embedded secret software ownedby assessee, payments received from Indiancompany was royalty.


10.0 Sec. 14A disallowance to be computed byconsidering only those shares which yieldeddividend income during the year

ITAT Kolkata bench held that disallowance underrule 8D with respect to income not includible intotal income has to be computed by taking intoconsideration only those shares, which has yieldeddividend income in year under consideration.


11.0 Prepayment charges on home loans aredeductible as 'interest' under Sec. 24(b)

ITAT Mumbai bench held that prepaymentcharges and processing fee made for purpose ofavailing loan at lower interest cost are allowableunder section 24(b).

Peepul Tree Properties (P.) Ltd. v. Assistant Commissioner

of Income tax. [2016] 71 taxmann.com 332

12.0 Lease equalization charge couldn't be addedback in book profits for computing MATliability

The High Court of Gujarat held that leaseequalization charge is neither a reserve nor adeduction; said amount would not be part of netprofit in computing book profit under section115JA.


13.0 Excise and Customs duty on closing stock isdeductible on payment basis as per sec. 43B

The High Court of Karnataka held that, in viewof specific language of section 43B, amount ofcustoms and excise duty on value of closing stock

should be allowed as deduction in assessmentyear relating to previous year in which it wasactually paid even though assessment of closingstock of that year would be in subsequentassessment year.


14.0 Both employees and employer's contributioncovered under Sec. 43B

The High Court of Patna held that there appearsto be sufficient justification for taking the viewthat the employees' and the employer'scontribution ought to be treated in the samemanner.

Bihar State Warehousing Corporation Ltd. v.

Commissioner of Income-tax 1, Patna. [2016] 71

taxmann.com 247

CORPORATE LAWS

1.0 Partnership Act does not bar arbitration

Though arbitral proceedings have certain shadesof civil suits, they are different in substance.Therefore, the bar on suits imposed in thePartnership Act in certain circumstances will notcome in the way of taking disputes to arbitration,the Supreme Court has held in its judgment,Umesh Goel vs Himachal Coop Housing Society.

2.0 EPFO eases UAN norms for PF claims,withdrawal

Employees who left EPFO membership beforeJanuary 1, 2014, now do not need to furnish theirUAN for settlement of PF claims orwithdrawal."Claim forms may be acceptedwithout UAN if the date of leaving/exit of themember is before 01.01.2014," says a circulardated July 13, by the Employees Provident FundOrganisation (EPFO) sent to all zonal and regionaloffices.

3.0 SIT seeks action on duty drawback claimswithout exports

SIT appointed by Supreme Court has directedED to take action under FEMA with respect to216 companies with respect to the period beforeMarch 1, 2016 and 572 companies for the periodafter March 1, 2016, for which each suchcompany had export proceeds pending forrealisation for more than Rs 100 crore and alsotake action on such companies' with smaller dues.

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AUGUST 2016

CORPORATE LAWS/CAPITAL MARKET / INDIRECT TAXATION

FINANCIAL INDICATORS

Current Rate* Previous Month 3 Month ago 6 Month ago

3 Month LIBOR (%) 0.78 0.66 0.63 0.62

SENSEX 27795.52 27707.42 25720.56 23766.80

NIFTY 8570.60 8491.65 7881.90 7221.40

CRR (%) 4 4 4 4

REPO (%) 6.50 6.50 6.50 6.75

REVERSE REPO (%) 6.00 6.00 6.00 5.75

Gold (per 10 gm) 31,359 31,564 29972 28199

Silver (per kg) 47,050 48,075 41273 36700

Crude (USD/bbl) 43.88 44.81 44.22 31.64

`̀̀̀̀ vs USD 66.74 67.14 66.72 67.88

`̀̀̀̀ vs Euro 74.38 74.11 75.96 76.65

`̀̀̀̀ vs 100 Yen 65.84 65.89 61.35 59.21

`̀̀̀̀ vs RMB 10.08 10.04 10.25 10.43

`̀̀̀̀ vs Pound 87.04 86.91 96.11 98.29

MCX Aluminium (per kg) 109.55 110.45 105.55 101.70

MCX Copper (per kg) 321.45 322.05 315.05 306.50

*As on August 11, 2016 (Sources: MoneyControl, NSE, BSE, RBI, MCX)

4.0 Centre to change law to regulate Uber andOla

The Centre is planning to change the MotorVehicles Act to empower state governments toregulate taxi aggregators like Uber and Ola. Thiswill also allow states to cap fares and end surgepricing.

5.0 Apex court directs Centre to provide 3%reservation in jobs to disabled persons

The Supreme Court has directed the governmentto give three per cent reservation to Persons WithDisability (PWD) in all services, irrespective ofthe mode of filling such posts.

6.0 Employment of children below 14 - Banned

The Child Labour (Prohibition and Regulation)Amendment Act, 2016 makes employment ofchildren below 14 years as cognizable offencefor employers and provides for penalty forparents.

7.0 Firms taking public deposit must carrydisclaimers

Companies seeking deposits from the public willnow have to carry a disclaimer in theiradvertisements that the government does nottake responsibility for the financial soundness ofthe schemes being floated. This has beenintroduced through amendments to theCompanies Act.

8.0 Plot owner in MoU can move to consumerforum

The owner of a plot who signs a Memorandumof Understanding (MoU) with a builder forraising multi-storeyed apartments is a 'consumer'and, therefore, can sue the builder fordeficiency in service, the Supreme Court ruledin case of, overruling the National ConsumerCommission and the Andhra Pradesh consumercommission.

CAPITAL MARKET

1.0 Ind AS: SEBI gives listed cos more time tofile results

For the June 2016 quarter, Securities andExchange Board of India (SEBI) has extendedthe deadline by one month, allowing companiesto report results by September 14.

2.0 Stricter transfer norms notified for P-Notes

To allay concerns over misuse of controversy-ridden P-Notes, regulator SEBI has notified newnorms restricting transfer of these offshoreinstruments only to entities authorised for theiruse and that too after prior consent from theissuer foreign investor.

3.0 Dividend distribution policy must for top 500firms

Amid shareholder complaints about manycompanies refusing to pay dividend despite havingextra cash, markets regulator Sebi has made itmandatory for the top 500 listed firms to have a'dividend distribution policy'.

INDIRECT TAXATION

1.0 No denial of input credit just because date ofinvoice and date of credit fall in differentperiods

CESTAT, Mumbai Bench held that expression "netcenvat credit" in rule 5 of CENVAT Credit Rules,2004 means credit "availed" during relevantquarter; hence, irrespective of date of invoice ordate of receipt of inputs/services, refund of creditis allowed during period in which "date of takingcredit" falls.Decos Software Development (P.) Ltd. v. CCE [2016] 71taxmann.com 293

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AUGUST 2016

Contact details : Dharampal (9013363257) All India Chartered Accountants’ Society - CFO World 909, Chiranjiv Tower, 43, Nehru Place, New Delhi-110019.Ph: 26223712, 26228410, 26226933 E-mail:[email protected] / [email protected] EDITOR: Pankaj Gupta, LLB, FCS E-mail: [email protected] PUBLISHED & PRINTED: At New Delhi by Satish Chandra, Administrative Officer, on behalf of All India Chartered Accountants’ Society, 4696, Brij Bhawan, 21A,Ansari Road, Darya Ganj, New Delhi-110 002 Phone 23265320, 23288101 E-mail : [email protected] Printed at: EIH Ltd., Unit : Printing Press, No. 7, ShamNath Marg, Delhi-110054. Views expressed by contributors are their own and the Society does not accept any responsibility.

If undelivered, please return to :All India Chartered Accountants’ Society4696, Brij Bhawan 21A, Ansari Road,Darya Ganj, New Delhi-110 002

Date of Printing : 13th August, 2016R.N.I. No. 50796/90Posting Date: 16/17 August, 2016

Registration No. DL(c)-01/1268/2015-17Licenced to post without prepayment No. U-(C)-82/2015-17

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2.0 Uploading of notice on DVAT website in account ofassessee is valid service of notice: HC

The High Court of Delhi held that where AssessingAuthority uploaded a notice being issued under section59(2) on website of department in account ofassessee directing it to furnish certain informations, inview of order dated 17-1-2014 being passed byCommissioner, in exercise of his powers under rule62(1)(vi), which, inter alia, states that all notices orsummons or orders shall be served upon dealer(s) byelectronic means, there was proper service of abovenotice upon assessee.

Bajrang Fabrics (P.) Ltd. V. Commissioner ofValue Added Tax. [2016] 70 taxmann.com 348(Delhi).

INTERNATIONAL TAXATION

1.0 MFN clause is an integral part of DTAA andself-operational; Delhi HC sets aside decisionof AAR

The High Court of Delhi held that MFN clause ofthe Protocol, which forms part of the India-France DTAA, automatically becomesapplicable.There is no requirement to have aseparate notification incorporating the beneficialprovisions of the DTAA between India and UKas forming part of the India- France DTAA. Steria(India) Ltd. v. Commissioner of Income-tax-VI.[2016] 72 taxmann.com 1 (Delhi).

Documents

GST - INDIA ON THE MOVE