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Monthly Updates | May, 2016
01- DIRECT TAXES Income Tax Pg.3 International Tax Pg.11
02- INDIRECT TAXES Customs Pg.15 Excise Pg.20 Service Tax Pg.23 MVAT Pg.24
03- ROC UPDATE Pg. 29
04- UPCOMING DUE DATES Pg. 32
05- CONTACT Pg. 34
C
ON
TEN
T
For Private Circulations Only 3 The Update –May, 2016, SGCO & Co.
INCOME TAX
CBDT Notification no. 30/2016 dated 29-
04-2016 reg amendment in TDS procedures
• Furnishing of Evidences of claim for
deductions/ exemptions by employees
The employees are required to furnish
details of exemptions/ deductions to the
employer for the purpose of tax deduction.
From F.Y. 2016 - 17, the employee is
required to furnish evidence or the
particulars of such claims of deductions and
exemptions in Form No 12BB. Following
evidences are to be provided for claim of
exemption/ deduction:
House Rent
Allowance
Name, Address & PAN of
landlord where rent paid
during P.Y. exceeds Rs. 1
lakh
Leave Travel
Concession
Evidence of Expenditure
Interest on
Housing Loan
Name, Address & PAN of
Lender
Deduction
u/c. VIA
Evidence of Investment or
Expenditure
The name and PAN of the Landlord/ lender
are also to be mentioned in Form no. 24Q
(TDS return) by the employer.
----------------------------------------------------------
• Due date for Payment of TDS u/s. 194-
IA
Section 194IA requires buyer of property to
deduct 1% TDS while making payment to
seller if consideration of the property
exceeds Rs. 50 lakh. Such TDS was required
to be paid within 7 days from the end of the
month in which payment had been made.
CBDT has extended such 7 day period to 30
days for all payments to be made on or
after 01st June 2016.
----------------------------------------------------------
• Electronic Furnishing of TDS
Statements
TDS returns are now mandatorily required
to be filed online with or without DSC. The
TDS returns are to be uploaded on the e-
filing portal of Income tax w.e.f. 01.05.2016.
For Private Circulations Only 4 The Update –May, 2016, SGCO & Co.
A detailed user guide for the procedure in
this regard is available on the following link:
http://incometaxindiaefiling.gov.in/eFiling/
Portal/StaticPDF/TDS_TCSStatement_Uploa
d_User_Manual.pdf
---------------------------------------------------------
• Due dates for Furnishing TDS Returns
The due dates for furnishing of TDS returns
are modified and the revised due dates
from F.Y. 2016 - 17 are as under:
Quarter ending Due Date
30th June 31st July
30th September 31st October
31st December 31st January
31st March 31st May of next year
------------------------------------------------------------------
Circular No. 11/2016 Reg Payment of
Interest on Refund U/s 244A on Excess TDS
Deposited U/s 195 Of The Income-tax Act,
1961
The CBDT has issued Circular No. 11/2016 dated
26.04.2016 stating that in accordance with the
judgement of the Supreme Court in UOI vs. Tata
Chemical Limited1 it is settled that if resident
deductor is entitled for the refund of tax
deposited u/s. 195 of the Act, then it has to be
1 363 ITR 658
refunded with interest u/s. 244A of the Act, from
the date of payment of such tax. The CBDT has
also directed that no appeals may henceforth be
filed on this ground by the officers of the
department and appeals already filed on this issue
may not be pressed.
-----------------------------------------------------CBDT Directive: F.No. 225/12/2016/ITA.II Reg Consistency In Taxability Of Income/Loss Arising From Transfer Of Unlisted Shares The CBDT has issued a directive dated 2nd May 2016 in which it has been directed that the income arising from transfer of unlisted shares would be considered under the head ‘Capital Gain’, irrespective of period of holding, with a view to avoid disputes/litigation and to maintain uniform approach. This circular would however not apply in situations where: i. the genuineness of transactions in unlisted
shares itself is questionable; or
ii. the transfer of unlisted shares is related to an
issue pertaining to lifting of corporate veil; or
iii. the transfer of unlisted shares is made along
with the control and management of
underlying business
-----------------------------------------------------------------
JUDICIAL RULINGS
S. 15, 17, 192: Concept of "salary"
explained. Held that as "tips" are paid to
employees of the assessee from an
outsider on a voluntary basis and the
For Private Circulations Only 5 The Update –May, 2016, SGCO & Co.
employees have no vested right to receive
the same, the same is not "salary" and the
assessee has no obligation to deduct TDS
Facts:
• The tax deductor (the employer) was
engaged in the hotel business. It collected
tips from customers' and then passed the
same over to the employees without
withholding any tax thereon.
• The A.O. treated such receipt of tips as
“income from salary” in the hands of the
employees and held that the taxpayers
were liable to withhold tax on such
payments u/s. 192 of the Act. For failure to
withhold such tax, A.O. treated the
taxpayer as a “taxpayer-in-default” u/s.
201(1) of the Act and asked for the tax and
interest prescribed under the Act for such
failure.
• The CIT(A) allowed the appeal in favour of
the assessee. The Hon’ble ITAT confirmed
the order of CIT(A). The Hon’ble Delhi HC
reversed the order of ITAT and decided the
matter against the assessee. The question
before the Hon’ble Apex Court was whether
the assessee was liable to deduct tax on tips
collected and paid by them to their
employees.
Held:
The Hon’ble Apex Court decided the matter in
favour of the assessee as follows:
• U/s. 192 of the Act, the person responsible
for paying salaries alone was responsible for
withholding tax, and such person was only
the employer; however, on the given facts,
the person responsible for paying the
employees was not the employer at all, but
a third person, namely the customer.
• The income from tips would be chargeable
in the hands of the employees as income
from other sources, and not as income from
salary; if an employee received payment
other than salary income, section 192 did
not apply.
• For salary taxation provisions of the Act to
apply, an employee should have a vested
right to claim any salary from an employer.
Since, in the given facts, the employee has
no vested right to claim any amount of tip
from his employer, tips being a purely
voluntary amount received from customers,
they would not fall within salary income
under the Act.
• Salary taxation provisions of the Act
necessarily referred to the contract of
employment between employer and
employee, and salary paid or allowed must
therefore have reference to such contract
of employment.
For Private Circulations Only 6 The Update –May, 2016, SGCO & Co.
• Tips would not be payments made ‘by or on
behalf of’ an employer as these were never
the property of the employer. In these
circumstances, payments would be outside
the purview of the salary taxation
provisions of the Act.
ITC Limited vs. CIT (Supreme Court)2
-----------------------------------------------------
In view of CBDT Circular No. 6/2016 dated
29.02.2016, if assessee has consistently
shown shares as an “investment” and
offered gains as capital gains, AO is not
entitle to urge that the same constitutes
“stock-in-trade” and assess gains as
business profits on grounds that there
were substantial and frequent transactions
and motive was to earn profit and holding
period of such shares was very short
Facts:
The assessee had shown short term capital gain
from share transaction of Rs 73,70,214/-. The
A.O. contended that the examination of Demat
accounts and transactions in brokers’ account
furnished by the assessee makes it clear that
purchase and sale of shares/units is not
investment activity but it is the business of the
2 2016-TIOL-48-SC-IT
assessee. Relying on various precedents the A.O.
treated the income as business income.
Held:
The moot question which was required to be
decided was whether the income earned by the
assessee on account of share was required to be
treated as business income or required to be
treated as short term capital gain. After the
matter was heard on 11.02.2016, the CBDT came
out with the Circular No. 6/2016 dated
29.02.2016 wherein it was clarified that the
stand of the assessee as regard to classification
of income from sale of shares shall be treated as
business income or capital gains based on the
option exercised by the assessee provided that
the stand is consistently followed by the
assessee. Since the assessee had treated the
securities as investment and not as stock in trade
in all the years, therefore, in view of the CBDT
Circular, the revenue was not permitted to take
a contrary view in the present year and the
profit/gain caused to the assessee was to be
treated as business income.
DCIT vs. Mahender Kumar Bader (ITAT Jaipur)3
-----------------------------------------------------
3 ITA No. 605/JP/2013
For Private Circulations Only 7 The Update –May, 2016, SGCO & Co.
S. 50C does not apply to transfer of
leasehold rights in land
Facts:
For the year under consideration the assessee
had assigned leasehold right in a property for a
total consideration of Rs. 90,00,000/-, whereas
the market value of the said property was
determined by the Stamp Valuation Authority at
Rs. 3,41,59,500/-.The A.O. invoked the
provisions of section 50C of the Act & computed
the Long Term Capital Gain of the aforesaid
property at Rs. 3,03,82,674/-.
Held:
• Section 50C of the Act provides that if the
consideration received or accruing is less
than the value adopted or assessed or
assessable by the stamp valuation authority
of the State Government for such transfer
then the value so adopted or assessed or
assessable shall be deemed to be the full
value of consideration and the capital gains
will be computed accordingly.
• The phraseology of section 50C of the Act
clearly provides that it would apply only to
“a capital asset, being land or building or
both”. The moot question was as to
whether such expression would cover the
transfer of a capital asset being leasehold
rights in land or building.
• Leasehold right in land is a capital asset.
However, every kind of a ‘capital asset’ is
not covered within the scope of section 50C
of the Act for the purposes of ascertaining
the full value of consideration.
• The A.O. was accordingly directed to
compute the capital gains on transfer of
leasehold right by adopting the value as
offered by the assessee and without
invoking the provisions of Section 50C
Farid Gulmohamed vs. ITO (ITAT Mumbai)4
----------------------------------------------------- S. 68: Share application money received
from an associate concern cannot be
assessed as cash credits if assessee has
discharged its initial onus to prove the
identity, creditworthiness and genuineness
of the transaction Facts:
The A.O. made an addition u/s. 68 of the Act on
the suspicion that the share applicants were
name lenders and had no creditworthiness as
their bank balance and the returned income was
extremely low as compared to the share
application money.
Held
• The department had not received any
information with regard to the fact that the
4 ITA No. 5136/Mum/2014
For Private Circulations Only 8 The Update –May, 2016, SGCO & Co.
share application were bogus entry or it is
in the shape of accommodation entry. The
share application was by the associate
concern of the assessee which is also
assessed with IT Department.
• The Tribunal relying on the decision of
Sinhal Products (P) Ltd.5 held that the
asseseee had discharged its initial onus of
proving the identity & capacity of the
applicant and the genuineness of the
transaction.
• The share application money received thus
stood duly established and addition u/s. 68
was accordingly deleted.
DCIT vs. Overseas Infrastructures (ITAT
Mumbai)6
-----------------------------------------------------------------
Waiver of Loan taken for acquiring a
capital asset is a revenue receipt taxable
u/s. 28(iv) of the Act.
Facts:
• The taxpayer had taken a loan from a bank
for acquiring a capital asset. The loan
outstanding was waived by the bank as a
part of a one-time settlement. The taxpayer
treated the waiver of both, principal and
5 ITA No 3852 to 3854/Del/2009 6 ITA No 1470/Mum/2011
interest, as capital receipt and excluded the
same while computing its taxable income.
• The A.O. treated the interest waived by the
bank as income u/s. 41(1) of the Act and the
principal amount as income u/s. 28(iv) of
the Act.
• The CIT(A) held that principal waived was
not taxable u/s. 28(iv) of the Act placing
reliance on the decision of Iskraemeco
Regent Limited7. The Hon’ble ITAT
confirmed the order of the CIT(A).
• The moot question before the Hon’ble High
Court was as to whether waiver of principal
amount of loan would amount to income
u/s. 28(iv) of the Act.
Held
• The Hon’ble HC rejected the Tribunal’s and
CIT(A)’s reliance on the co-ordinate bench
ruling in Iskraemeco Regent Limited
(Madras HC). The HC differed from the
reasoning given in the said ruling that
section 28(iv) dealt only with a benefit or
perquisite received in kind, and not to any
transaction involving money
• The Hon’ble HC also observed that there
was no distinction between waiver of loan
7 (2011) 196 taxman 103
For Private Circulations Only 9 The Update –May, 2016, SGCO & Co.
taken for acquiring a capital asset and
waiver of loan taken for trading activities in
accounting practice, and that such waiver
would either be credited to profit and loss
account or to the capital reserve.
CIT v.Ramaniyam Homes (P.) Ltd. (Mad HC)8
-----------------------------------------------------------------
Deferred Consideration on Transfer of
shares is not taxable in the absence of
accrual.
Facts:
• The taxpayer, along with her family
members (sellers), were shareholders of a
closely-held company. The sellers entered
into an agreement, dated 25 January 2006,
with the purchaser for transfer of all the
shares in their company. Part of the
consideration was receivable as initial
consideration upon execution of the
agreement. The sellers were also entitled to
deferred (additional) consideration for four
subsequent years (up to 31 March 2010),
based on the performance of the underlying
company whose shares were transferred.
The deferred consideration was based on a
certain formula which took into
consideration average profits of two years,
8 Appeal No. 278 of 2014
together with adjustment for cash and debt
as at balance sheet date.
• For A.Y. 2005-06, the taxpayer offered
capital gains on transfer of her shares in the
year of execution of the agreement. Capital
gains were computed, on the basis of initial
consideration received. The A.O., however,
assessed the taxpayer with reference to her
share in the total consideration of Rs 200
million viz., the initial consideration and the
deferred consideration.
• The CIT (A) held in the favour of the
assessee which was confirmed by the
Hon’ble ITAT
• The Department raised a question of law
before the HC that the Tribunal’s order,
accepting the taxpayer’s mode of offering
capital gains on deferred consideration on
receipt basis in various years, was contrary
to provision of law which requires taxation
in the year of transfer.
Held
• The Hon’ble HC referred to various SC
rulings and noted the well- settled
principles of accrual of income. It reiterated
that income can be said to have accrued
only when a taxpayer gets the right to
receive it. Such right must be represented
by the debt owed by somebody in favor of
For Private Circulations Only 10 The Update –May, 2016, SGCO & Co.
the taxpayer. There can be no taxation of
hypothetical income which does not accrue
to the taxpayer.
• In A.Y. 2005-06, the taxpayer had no right
to claim any part of the deferred
consideration; no such right vested in the
taxpayer.
• The HC noted that the sellers had offered
the deferred compensation as capital gains
income in the respective year of accrual of
income, in terms of the agreement.
• On the above grounds, the HC rejected the
department’s contention that the
taxpayer’s mode of offering capital gains on
the deferred consideration on receipt basis
in various tax years was contrary to the
provisions of the ITL, which require the
taxation in the year of transfer.
CIT v. Hemal Raju Shete (Bom HC)9
-----------------------------------------------------
9 Appeal No. 2348 of 2013
For Private Circulations Only 11 The Update –May, 2016, SGCO & Co.
INTERNATIONAL TAXATION Amendment of India –Mauritius Treaty 1) Source-based taxation of capital gains on
alienation of shares of “a company resident in India”.
Investments in shares of Indian Resident Company
Taxability in India
Shares acquired before April 1,2017 and sold at any point of time
• Capital Gains not taxable in India
Shares acquired on or after April 1,2017 (FY 2017-18) and sold on or before March 31,2019 (FY 2018-19) (Transition Period)
• Capital Gains taxable in India at 50% of the domestic tax rates of India
• Fulfillment of Limitation Of Benefit (LOB) clause required - Resident of Mauritius (including a shell / conduit company*) will not be entitled to benefits of 50% reduction in tax rate, if it fails the main purpose test and bonafide business test
Shares acquired on • Capital Gains
or after April 1,2017 (FY 2017-18) and sold on or after April 1, 2019 (FY 2019-20)
taxable in India at 100% of the domestic tax rates of India
*Total expenditure on Mauritian operations is less than INR 2,700,000 in the immediately preceding 12 months
-----------------------------------------------------------------
2) Source- based taxation of interest income of Mauritius resident banks:- The Protocol provides for withholding at the rate of 7.5% on interest arising in India to Mauritius resident banks in respect of debt claims or loans made after March 31, 2017. However, Interest Income of Mauritian resident banks in respect of debt-claims existing on or before March 31, 2017 shall be exempt from tax in India.
---------------------------------------------------------- Foreign Tax Credit-Draft Rules Draft Rules For granting relief or deduction u/s 90/90A,91 of the Income Tax Act,1961
The Central Board of Direct Taxes (CBDT) has issued the draft rules specifying the procedure for the granting of relief or deduction, as the case may be, of any income tax paid in any country or specified territory outside India. The draft rules are proposed as under:-
For Private Circulations Only 12 The Update –May, 2016, SGCO & Co.
• A resident assessee shall be allowed a credit for the amount of any foreign tax paid by him in a country or specified territory outside India, by way of deduction or otherwise, in the year in which the income corresponding to such tax has been offered to tax or assessed to tax in India.
• Foreign Tax shall mean either the tax payable as per the Double Tax Avoidance Agreement (DTAA) or the tax payable under the law in force in foreign country.
• The credit for foreign tax shall be available against the amount of tax, surcharge and cess payable under the Act but not in respect of any sum payable by way of interest, fee or penalty.
• No credit shall be available in respect of any amount of foreign tax which is disputed in any manner by the assesse.
• The credit of foreign tax shall be the aggregate of the amounts of credit computed separately for each source of income arising from a particular country or specified territory and given effect to in the following manner:
(i) the credit shall be the lower of the tax payable under the Act on such income and the foreign tax paid on such income;
(ii) the credit shall be determined by conversion of the currency of payment of foreign tax at the telegraphic transfer buying rate on the date on which such tax has been paid or deducted.
• In a case where any tax is payable under
the provisions of section 115JB or
115JC of the Act, the credit of foreign tax shall be allowed against such tax in
the same manner as is allowable against any tax payable under the normal provisions of the Act.
• No tax credit shall be allowed unless the assesse submits the following documents:-
i. Certificate from tax authority specifying the nature of Income and the tax deducted thereon. However, if the foreign tax is deducted at source, a certificate showing the deduction of tax at source from the person responsible for deducting such tax.
ii. Acknowledgement of online tax payment or bank counterfoil or slip payment where the payment of foreign tax has been made by the assessee
iii. A declaration that the amount of foreign tax credit is not under any dispute.
(F.NO.142/24/2015-TPL, Dated 18-04-2016)
---------------------------------------------------------------
JUDICIAL RULINGS Kailash Jewels(P) Ltd. vs Income Tax Officer ,Ward 14(1),New Delhi
Facts of the Case : The assesse company was engaged in the
business of manufacturing and trading of gold
and silver jewellery/bars/coins and utensils etc.
Such gold apparently shown to have been
purchased by the assessee from its Associated
For Private Circulations Only 13 The Update –May, 2016, SGCO & Co.
Enterprise (AE) was converted into jewellery and
sold back to its AE.
The assessee benchmarked those international
transactions by using the Cost Plus method as
the most appropriate method for determining
their Arm's Length Price (ALP)
During the course of proceedings before
Transfer Pricing Officer (TPO), the assessee came
out with the application of Comparable
Uncontrolled Price (CUP) method as the most
appropriate method by giving comparable
instances & hence contended that the labour
charges paid to it by its AE at $0.65 per gram
were higher than the comparables & hence
considered as ALP.
The TPO refused to accept the CUP as most
appropriate method and opted for the TNMM as
the most appropriate method.
TPO included value of gold imported and value
of jewellery sold to its AE in the calculation of
the assessee's PLI. Thereafter, he selected
certain companies as comparable, earning
average profit margin of 7.14 per cent. The TPO,
thus, made certain addition to assessee's ALP.
Held:
• In the instant case, the assessee is not
engaged in manufacturing and export of gold
jewellery. It is simply receiving gold bars from its
AE, doing job work on them and then returning
jewellery in the manner ordered by the AE, after
charging for job work at US$ 0.65 per net gram
of jewellery.
• The assessee is simply receiving gold
bars for converting them into jewellery and then
sending it back to its AE after doing the specified
job work.
• In such earlier year also, no
consideration was paid or received by the
assessee for the value of gold and only labour
charges were received, as is the position during
the instant year as well. The Tribunal came to a
final conclusion that the value of gold imported
and exported is only a pass through cost and
cannot be considered as a part of the assessee's
operating cost.
• The ITAT also held that from the facts,
CUP is the most appropriate method to
determine ALP
-----------------------------------------------------------------
Delta Power Solution India (P) Ltd. vs Deputy Commissioner of Income Tax, Uttarakhand
Facts of the Case : The assesse company was a wholly owned
subsidiary of DET International Holding Ltd.It
was engaged in manufacturing/trading
/assembling of Telecom Power Equipment, visual
display products, industrial automation etc
The assessee entered into international
transaction with its AE to the extent of Rs. 23.73
For Private Circulations Only 14 The Update –May, 2016, SGCO & Co.
crores. The assessee used TNMM as the Most
appropriate Method (MAM) for the transactions
relating to purchase of raw materials and export
of finished goods and used the operating profit
as PLI. In respect of Import of automation
products and sales commission segment, the
assessee used Resale Price Method (RPM) as the
MAM and gross profit as PLI sales.
The TPO rejected the RPM used by the assessee
and applied TNMM method for benchmarking
the transaction and proposed an adjustment of
Rs. 4.30 crores for import of industrial
automation products. On appeal to the
CIT(A),the verdict was also in favour of the
assesse.On appeal by the revenue to the
tribunal, it was held as under:
Held:
• In lieu of the fact that there is no value
addition in respect of goods sold by the assesse,
it was concluded that RPM was the most suitable
method to determine ALP.
-----------------------------------------------------------------
For Private Circulations Only 15 The Update –May, 2016, SGCO & Co.
CUSTOMS
Notifications Tariff Notification No. 12/2012-Customs, dated the 17
March, 2012 is amended so as to prescribe
simplified procedure for the units approved by
Director General of Civil Aviation (DGCA)
engaged in Maintenance, Repair and overhaul of
aircrafts. Procedure for same can be viewed at
http://cbec.gov.in/resources//htdocs-
cbec/customs/cs-act/notifications/notfns-
2016/cs-tarr2016/cs29-2016.pdf
Customs Notification No. 29/2016-Cus dated
26/04/16
----------------------------------------------------------------- Non-Tariff CBEC notifies Foreign Exchange Rates with effect
from 22nd March 2016 as follows:
SCHEDULE-I
Sl. No.
Foreign Currency Rate of exchange of one unit of
foreign currency equivalent to Indian rupees
(1) (2) (3)
(a) (b)
(For Imported
Goods)
(For Export
Goods)
1. Australian Dollar 52.50 51.20
2. Bahrain Dinar 181.45 170.95
3. Canadian Dollar 53. 10 51.95
4. Danish Kroner 10.20 9.95
5. EURO 75.95 74.10
6. Hong Kong Dollar 8.65 8.50
7. Kuwait Dinar 226.40 213.90
8. New Zealand Dollar 47.00 45.60
9. Norwegian Kroner 8.30 8.05
10. Pound Sterling 96.35 94.20
11. Singapore Dollar 49.95 48.80
12. South African Rand 4.8 4.55
13. Saudi Arabian Riyal 18.20 17.20
14. Swedish Kroner 8.25 8.05
15. Swiss Franc 69.15 67.55
16. UAE Dirham 18.60 17.60
17. US Dollar 66.90 65.85
18. Chinese Yuan 10.35 10.15
For Private Circulations Only 16 The Update –May, 2016, SGCO & Co.
SCHEDULE-II
Sl.No. Foreign Currency
Rate of exchange of 100 units of foreign currency equivalent
to Indian rupees
(1) (2) (3)
(a) (b)
(For Imported
Goods)
(For Export Goods)
1. Japanese Yen 61.15 59.75
2. Kenya Shilling
67.50 63.75
Customs Notification No. 55/2016 – Customs (N.T.) dated 21/04/16 ----------------------------------------------------------------- Amendment has been made in Bill of Entry
Regulations, 2011, wherein, word “electronic
declaration” has been substituted by “Electronic
Integrated Declaration” and word “Custom
House Agent Licensing Regulation,2004” has
been substituted by “Custom Brokers Licensing
Regulation,2013”
Customs Notification No. 45/2016 – Customs
(N.T.) dated 01/04/16
----------------------------------------------------------------- Section 41 of the Customs Act Deals with the:- Delivery of export manifests or export report.
The provisions of sections 30 and 41 of the
Customs Act shall apply to vessels carrying
exclusively coastal goods operating from berths
used by vessels carrying imported goods or
export goods, as the case may be and the
person-in-charge of such vessel or his agent shall
deliver to the proper officer, a coastal manifest,
prior to the arrival of the vessel or departure as
the case may be, in the Form as given below:-
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-nt2016/csnt57-2016.pdf Customs Notification No. 57/2016 – Customs (N.T.) dated 27/04/16 -----------------------------------------------------------------
The Central Government, being satisfied that it is
necessary in the public interest so to do, hereby
exempts vessels carrying exclusively coastal
goods from the provisions of section 92, section
93, section 94, section 95, section 97 and sub-
section (1) of the section 98 of the Customs Act.
Customs Notification No. 56/2016 – Customs
(N.T.) dated 27/04/16
-----------------------------------------------------------------
Government provide relaxation of maintaining
advice book and inspection of same by the
custom officer to the vessels carrying exclusively
coastal goods from one Indian port to another
port.
Customs Circular No. 14/2016-Customs dated 27/04/16 -----------------------------------------------------------------
Government has hiked the tariff Value of edible
oil, Brass scrap, Poppy Seeds, Areca Nut, Gold
and Silver. The specified value are notified at
http://cbec.gov.in/resources//htdocs-
For Private Circulations Only 17 The Update –May, 2016, SGCO & Co.
cbec/customs/cs-act/notifications/notfns-
2016/cs-nt2016/csnt60-2016.pdf
Customs Notification No. 60/2016 – Customs
(N.T.) dated 29/04/16
-----------------------------------------------------------------
Anti-Dumping Duty
CBEC levies definitive anti-dumping duty on
“Normal Butanol or N-Butyl Alcohol”, originating
in, or exported from the European Union,
Malaysia, Singapore, South Africa and USA and
imported into India. The anti-dumping duty
imposed under this notification shall be effective
for a period of five years (unless revoked,
superseded or amended earlier). The Anti-
Dumping duty rates are notified at
http://cbec.gov.in/htdocs-cbec/customs/cs-
act/notifications/notfns-2016/cs-
add2016/csadd13-2016
Customs Notification No. 13/2016- Customs
(ADD) dated 13/04/16
----------------------------------------------------------------- CBEC had extended the anti-dumping duty on
“Barium Carbonate”, originating in or exported
from China PR (People Republic) for a period of
five years. The Anti-Dumping Duty rates are
Notified at:-
http://cbec.gov.in/resources//htdocs-
cbec/customs/cs-act/notifications/notfns-
2016/cs-add2016/csadd14-2016.
Customs Notification No. 14/2016- Customs
(ADD) dated 21/04/16
-----------------------------------------------------------------
CBEC had extended anti-dumping duty on
imports of “Synchronous Digital Hierarchy
Transmission Equipment” originating in, or
exported from China PR and Israel for a period of
five years with effect from 26 April 2016. The
Anti-Dumping duty rates are notified at
http://cbec.gov.in/resources//htdocs-
cbec/customs/cs-act/notifications/notfns-
2016/cs-add2016/csadd15-2016
Customs Notification No. 15/2016- Customs
(ADD) dated 26/04/16
-----------------------------------------------------------------
Circulars
Board provide relaxation regarding KYC (Know
your Customer) by this Circular. Board decided
that proof of identity collected at the time of
delivery along with address recorded for delivery
purpose by the courier companies would suffice
for KYC verification in respect of individuals for
import of documents, gifts/samples/low value
dutiable consignment upto the maximum CIF
value limit of Rs.5000/- However, courier
companies must show due diligence in
maintaining the records of proof of address.
Customs Circular No. 13/2016-Customs dated
26/04/16
-----------------------------------------------------------------
For Private Circulations Only 18 The Update –May, 2016, SGCO & Co.
Instruction:-
The Board has implemented Single window
“Integrated Declaration” from 1st April,2016,
which covers all information required for import
clearance by the other Government agencies.
The importer should submit “Integrated
Declaration” electronically. All related
instruction and guidelines are given at ICEGATE
website.
Instruction No. F.No. 450/147/2015-Cus-IV-
dated 31/03/16
-----------------------------------------------------------------
Board instructed that now the Courier agencies
who are refusing to book Bonafide gift
consignment for export to India Citing Non
clearance and embargo imposed on such gift
parcels by Indian Customs should be brought
under notice of secretary.
Instruction No. F.No. 450/179/2015- Cus.IV-
dated 11/04/16
-----------------------------------------------------------------
It has been brought to notice that Customs
Officers are insisting on registration documents
from importers on products which do not fall
under the purview of Legal Metrology Act, 2009
and rules made thereunder.
As per the Instruction issued by CBEC, Now the
officer shall not insist on Registration of
Documents unless it is mandatory.
Instruction No. F.No. 401/69/2016- Cus.III-
dated 22/04/16
----------------------------------------------------------------
Board provides that while moving bonded truck
from one Air cargo complex to another complex
,the bond value should be debited form online
running bond. At the same time, there
should not be any delay on the part of officers in
re-crediting the amount at the destination air
cargo complex.
Instruction No. F.No. 401/69/2016- Cus.III-
dated 22/04/16
--------------------------------------------------------------
DGFT
Public Notice
Amendment in General Note No.15 for Textiles
(Product Code J):-
In case of Fabric, Flexibility up to +/-10% in GSM
and in case of Blended Fabric, Flexibility up to +/-
3% in count in Import/ Export shall be allowed.
And in case of blended fabric +/-3% variation in
count shall be allowed to the extent amendment
in norms against Advance Authorization/Duty
Free Import Authorization will not be required.
DGFT Public Notice No. 01/2015-2020 dated
06/04/16
-----------------------------------------------------------------
For Private Circulations Only 19 The Update –May, 2016, SGCO & Co.
New PSIAs recognized in terms of FTP 2015-20:-
DGFT has notified the Nine Pre –Shipment
Inspection Agencies under the heading “New
PSIAs recognized in terms of FTP 2015-20. The
list of notified PSIAs is notified at
http://dgft.gov.in/Exim/2000/PN/PN16/pn0216.
pdf.
DGFT Public Notice No. 02/2015-2020 dated
08/04/16
-----------------------------------------------------------------
For Export of Pharmaceuticals and Drug
Consignments, if the Government of the
importing country has mandated specific
requirement, then the exporter has the option of
adhering the same and in such a case, it would
not be necessary to comply with Bar Coding
prescribed by the Government of India.
DGFT Public Notice No. 03/2015-2020 dated
21/04/16
-----------------------------------------------------------------
Trade Notices:- Non Eligibility of Liquid Glucose under FMS of
FTP 2009-14
Liquid Glucose falling under “Sugar and Sugar
Confectionery” will not be eligible for Focus
Market Scheme benefit. (HS Code 1702)
DGFT Trade Notice No. 01/2016 dated 07/04/16
----------------------------------------------------------------
It has been clarified by the department that for
“Tamarind Kernel Powder“ the correct ITC (HS)
Code is 13023290 and on which MIES benefit is
not available.
DGFT Trade Notice No. 02/2016 dated 19/04/16
-----------------------------------------------------------------
DGFT has imposed Minimum Import Price on
173 Tariff Lines (Vide Not No.38 Dated 05th
February 2016).
Imports /Shipments which are negotiated and
finalized under Irrevocable Letter of Credit (ILCs)
before the said date , these ILCs are required to
be registered with Jurisdictional RAs within a
period of 15 Days . Now the notification has
granted the opportunity to register their ILCs by
30th April 2016.The Importer shall submit their
request along with ANF-2D with prescribed fees
of Rs.2000/-as prescribed for policy relaxation.
DGFT Trade Notice No. 03/2016 dated 21/04/16
----------------------------------------------------------------
Notifications
Requirement of Certification regarding Export
of Betel Leaves:-
Export of Betel Leaves to European Union is
Subject to registration with Agricultural and
Processed Food Products Export Development
Authority (APEDA)
(Tariff Item HS Code-4049040)
DGFT Notification No. 01/2016 dated 08/04/16-
-----------------------------------------------------------------
For Private Circulations Only 20 The Update –May, 2016, SGCO & Co.
For the First time, the Definition of E- Commerce
has been Introduced:-
E-Commerce means Buying and Selling of Goods
and Services, including Digital Products,
conducted over Digital and electronic Network.
For the purposes of Merchandise Exports from
India scheme (MEIS) e-Commerce shall means
the export of goods hosted on a website
accessible through the internet to a purchaser.
While the dispatch of goods made Through
Courier or Postal Mode, as specified under the
MEIS, the payment for Goods purchased on E-
Commerce Platform shall be done through
International debit/Credit cards as per the RBI
Circular No.16 dated September 24, 2015
DGFT Notification No. 02/2016 dated 11/04/16
-----------------------------------------------------------------
Import of Dogs is allowed only for the following
Specific purposes:-
a) For the Internal Security by the
Defense and Police Force.
b) Dogs imported by the R&D
Organizations for conducting
research with the recommendation of
CPCSEA .
c) Pet Dog with valid Pet Book and relevant
records/documents in the name of the
importer.
Effect of this notification is that Import of
Commercial dog for breeding or any other
commercial activity is not permitted.
DGFT Notification No. 03/2016 dated 25/04/16
-----------------------------------------------------------------
The exporter shall be categorized as status
Holder on achieving the export performance
during the current and previous three financial
years.
For Gems & Jewellery Sector the existing export
Performance shall continue.(i.e. Current financial
and previous two financial years).
DGFT Notification No. 04/2016 dated 29/04/16
-----------------------------------------------------------------
Updation has been made in the SCOMET List:-
Special Chemicals, Organisms, materials,
Equipment and Technologies (SCOMET List)
http://dgft.gov.in/Exim/2000/NOT/NOT16/noti0
516.pdf
DGFT Notification No. 05/2016 dated 29/04/16
-----------------------------------------------------------------
CENTRAL EXCISE
Notifications
Tariff
Condition for availing exemption against serial
No 305, the entry in column (5) shall be omitted.
Notification No.12/2012 dated 17th March 2012
has been amended that Parts and Testing
Equipment, for Maintenance repair, and
For Private Circulations Only 21 The Update –May, 2016, SGCO & Co.
overhauling (MRO) of Aircraft that the Condition
requirement it should be approved to the
satisfaction of an officer not below the rank of
Deputy Commissioner of Central Excise or the
Assistant Commissioner of Central Excise has
been Omitted.
Central Excise Notification No. 19/2016 – NT
dated 26/04/16
-----------------------------------------------------------------
Non-Tariff
Amendment to Rule 6(3) of CENVAT Credit
Rules, 2004
All the manufacturers, manufacturing taxable as
well as exempted goods or service providers
providing taxable as well as exempted services
have been provided an option to avail full
CENVAT Credit in respect of common
inputs/services provided an amount equal to 6%
of value of exempted goods or 7% of exempted
services has been paid.
Due to this amendment, more amount will have
to be paid under this option as compared to the
past.
Central Excise Notification No. 23/2016 – NT
dated 01/04/16
-----------------------------------------------------------------
Amendment to Rule 7B of CENVAT Credit Rules,
2004
Rule 7B of CENVAT Credit Rules, 2004 provides
for distribution of credit on inputs by warehouse
of manufacturer. The factory premises of
manufacturer are allowed to take credit on
inputs received coupled with invoice from its
warehouse.
Now, the warehouse of manufacturer is allowed
to take credit on inputs bought, on the basis of
documents specified under Rule 9.
Central Excise Notification No. 23/2016 – NT
dated 01/04/16
-----------------------------------------------------------------
Amendment to Rule 4 of CENVAT Credit Rules,
2004
As per Rule 4 of CENVAT Credit Rules, 2004
CENVAT Credit on inputs and input Services are
restricted to be availed within 12 months from
the date of invoice. Now, the time limit for
availment of CENVAT Credit is not applicable for
services provided by Government, Local
Authority or any other person by way of
assignment of right to use natural resources.
CENVAT Credit of Service tax paid in a financial
year on charges (one–time upfront or in
instalments) payable for the assignment of right
to use natural resources by the Government ,
Local Authority or any other person, shall be
spread evenly over a period of three years.
In case aforesaid rights are reassigned to
another person for a consideration then balance
CENVAT Credit on rights procured is available in
the financial year of reassignment, subject to
For Private Circulations Only 22 The Update –May, 2016, SGCO & Co.
maximum limit for balance of CENVAT Credit
available shall be equivalent to service tax
payable on the consideration charged for
further assignment.
Central Excise Notification No. 24/2016 – NT
dated 13/04/16
-----------------------------------------------------------------
Circulars
There has been plethora of classification
disputes prevailed on classification of products
among micronutrients, multimicronutrients,
plant growth regulators and fertilizers. In order
to put rest to the controversy, an opinion of
Indian Agricultural Research Institute (IRAI) has
been obtained by CBEC on various Issues.
The circular explains nature, usage and
classification of aforesaid products, taking into
consideration opinion received from IRAI,
Central Excise Tariff and explanatory notes of
HSN etc.
http://www.cbec.gov.in/resources//htdocs-
cbec/excise/cx-circulars/cx-circulars-
2016/circ1022-2016cx.pdf
CBEC Circular No. 1022/10/2016-CX dated
06/04/16
-----------------------------------------------------------------
The Circular provides clarification in respect of
the excisibilty of re-refined waste oil or used
lubricating oil. The Board has examined the
process, classification and characteristic of
manufacture for the product.
The emphasis was made to chapter note 4 of
chapter 27 which provides for deeming fiction on
manufacture of lubricating oils and lubricating
preparations falling under tariff ID 2710 and
observed that other goods falling under tariff ID
2710 are not covered by the Chapter note.
The carrying out one of the processes listed in
the above chapter note would amount to
manufacture and central Excise Duty would be
applicable.
CBEC Circular No. 1024/12/2016-CX dated
11/04/16
-----------------------------------------------------------------
The time limit for taking central excise
registration of an establishment by a jeweler is
being extended up to 01.07.2016. Though, the
liability for payment of central excise duty will be
with effect from 1st March, 2016, the assesse
jewelers may make the payment of excise duty
for the months of March, 2016; April, 2016 and
May, 2016 along with the payment of excise
duty for the month of June, 2016.
CBEC Circular No. 1026/14/2016-CX dated
23/04/16
-----------------------------------------------------------------
Circular on Excisibilty of Bagasse, aluminum /Zinc
dross has been Withdrawal.
For Private Circulations Only 23 The Update –May, 2016, SGCO & Co.
Now, Bagasse, Dross and Skimmings’ of non-
ferrous metals or any such byproduct or waste,
which are non-excisable goods and are cleared
for a consideration from the factory need to be
treated like exempted goods for the purpose of
reversal of credit of input and input services, in
terms of rule 6 of the CENVAT Credit Rules,
2004.
CBEC Circular No. 1027/15/2016-CX dated
25/04/16
-----------------------------------------------------------------
SERVICE TAX
Notifications
In Rule 7 of the Point of Taxation Rules, 2011 3rd
Proviso has been inserted which provides that in
case of payment of service tax under reverse
charge mechanism where there is change in
liability or extent of liability of service recipient,
Point of Taxation shall be the date of issuance of
invoice in cases where the service has been
provided and the invoice has been issued before
date of such change but payment of such invoice
has not been made on such date.
Service Tax Notification No. 21/2016 dated
30/03/16
-----------------------------------------------------------------
Amendment in MEGA Exemption:-
CBEC has exempt following Services to be
provided or provided by Government/ Local
Authority to or in relation to:-
1. Service to another Government or Local
Authority.
2. Service of Issuance of Passport, Driving
License, Birth Certificate, and Death Certificate
to an individual who may be carrying on a
business/profession etc.
3. Service whose gross amount charged does not
exceed Rs.5000/-
4. Testing, calibration, safety check or
certification relating to protection or safety of
workers, consumers or public at large, required
under any law for the time being in force.
5. Service of assignment of right to use natural
resource by an individual farmer for the purpose
of Agriculture.
6. Service of allowing business entity to operate
in telecom business or radio frequency spectrum
etc during the financial year 2015-16.
7. Any Function entrusted to Panchayat under
Article 243G of Constitution.
8. Fines, penalties or Liquidated damages in
relation to tolerating nonperformance of
Contract payable to Government or Local
Authority.
9. Registration required under any law for the
time being in force.
10. Assignment of right to use any natural
resource where such right to use was assigned
by Government or local authority prior to 1 April,
2016.
For Private Circulations Only 24 The Update –May, 2016, SGCO & Co.
11. Officers after office hours or on holidays for
inspection or container stuffing or such other
duties in relation to import / export of cargo on
payment of Merchant Overtime charges (MOT).
Service Tax Notification No. 22/2016 dated
13/04/16
-----------------------------------------------------------------
Rule 6(2)(iv) of the Service Tax (Determination of
value Rules, 2006) provides that the value of any
taxable service, as the case may be, does not
include interest on delayed payment of any
consideration for the provision of services or sale
of property, whether moveable or immoveable.
The Proviso to rule 6(2)(iv) has been inserted
which provides that this clause shall not apply to
any service provided by Government or a Local
Authority to a business Entity where payment
for such service is allowed to be deferred on
payment of interest or any other consideration.
Service Tax Notification No. 23/2016 dated
13/04/16
-----------------------------------------------------------------
In Rule 7 of the Point of Taxation Rules 4th
Proviso has been inserted which provides that in
case of
services provided by the Government or local
authority to any Business Entity, the Point of
Taxation shall be earlier of the following:-
a)Payment for such services is made.
b) Any payment, part or full, in respect of such
services becomes due, as specified in the
invoice, bill, challan or any other document
issued by the Government or local Authority
demanding such payment.
Service Tax Notification No. 24/2016 dated
13/04/16.
-----------------------------------------------------------------
MVAT
Notifications
New electronic Forms 101,103 and 105 is issued
with effect from 1 April 2016 for Registration
and Cancellation of Registration. List of
documents that are required to be uploaded for
Registration are given in Annexure A. Both form
and annexure can be viewed at
http://mahavat.gov.in/Mahavat/MyFold/DOWN
LOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/K
NOW_NOTIFI_MVAT_05_04_16_3_8_26PM.pdf .
VAT/ADM 2016/1B/ADM-8 dt 28th April 2016
-----------------------------------------------------------------
The Government of Maharashtra hereby
exempts fully from payment of tax with effect
from the 1st April 2016, the transfer of property
in goods, involved in the sizing and warping of
yarn, subject to the following conditions and
restrictions which can be viewed at :-
http://mahavat.gov.in/Mahavat/MyFold/DOWN
LOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/K
For Private Circulations Only 25 The Update –May, 2016, SGCO & Co.
NOW_NOTIFI_MVAT_05_03_16_9_34_59AM.pd
f.
VAT 1516/CR 62/Taxation-1 Dated 29 Apr. 2016
-----------------------------------------------------------------
New Entry has been inserted which descripts
that Tax on slabs of Marble and Granite is
taxable at the rate of 12.5%
MVAT Notification No. VAT/1516/CR.56 dated
01/04/2016
----------------------------------------------------------------
Dealer purchasing mobile phone, cellular
headset for cellular network, wireless network or
Goods covered under the entries 13 and 14 of
the “Schedule D “ can claim set off in respect of
said goods to the extent of liability. Also Dealer
engaged in the business of transferring right to
use passenger motor vehicle can claim set off of
tax paid on purchase of such motor Vehicle to
the extent of tax liability.
MVAT Notification No. VAT/1516/CR.53 dated
01/04/2016
-----------------------------------------------------------------
Employer being an Educational Institution which
receives grant in aid from State Government is
exempted from late fee of PT Return for any
period up to March 2016 after fulfilling
prescribed conditions as mentioned in the
notifications.
No. PFT 1216/ C.R. 26/ Taxation-03 dt.
02/04/2016
-----------------------------------------------------------------
Government has substituted the Entry No 51 of
Schedule “A”, sub Entry (vii), with Towel, Which
means that Towels are taxable at NIL Rate of
Duty.
MVAT Notification No. VAT/1516/CR 61 dated
20/04/2016
-----------------------------------------------------------------
Government has amended Form III (E) of CST Act
.The new form is applicable from 1st April, 2016
and can be viewed at: -
http://mahavat.gov.in/Mahavat/MyFold/DOWN
LOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/K
NOW_NOTIFI_MVAT_05_03_16_2_32_41PM.pdf
CST-1516/C.R.-45/ Taxation-1dt. 22ndApril 2016
-----------------------------------------------------------------
The principal contractor desiring to transfer the
credit to the sub-contractor shall file a return in
Form 424A electronically on the website.
After filing of such return, the principal
contractor shall issue a certificate in Form 402A
to the sub-contractor for transferring such
credit. Such principal contractor shall maintain a
separate account in Form 404 A, for each year,
Containing details of credit, so transferred.
The application for Advance Ruling purposes of
sub-section (1) of section 55 shall be made in
Form 703 along with prescribed fees, by a
For Private Circulations Only 26 The Update –May, 2016, SGCO & Co.
person, to the Commissioner on the following
questions, whether, for the purposes of this Act.
For details view the below mentioned link:-
http://www.mahavat.gov.in/Mahavat/MyFold/D
OWNLOADS/NOTIFICATIONS/KNOW_NOTIFI_MV
AT/KNOW_NOTIFI_MVAT_05_04_16_2_55_18P
M.pdf
VAT 1516/CR 64/Taxation-1dt 29th April 2016
-----------------------------------------------------------------
MAHARASHTRA TRADE CIRCULAR
HIGHLIGHTS (Dated 22/04/16)
Amendments to the Composition Scheme
Notification u/s 42:-
Application for Composition Scheme:-
• It has been clarified by the Trade
Circular that application for the
composition Scheme shall be made by
a dealer in Mumbai and Pune to the
joint Commissioner of the concerned
Nodal Division.
• Rest of the Dealers in Maharashtra
shall make an application to the Joint
Commissioner as earlier.
• For retailers who desires to opt in or
opt out of the retailer composition
scheme is required to upload
application in Form 4A or Form 4B,
respectively on the Departments
Website.
• Certain amendments have been made,
w.e.f. 1st April 2016 by Notification
dated 30th March 2016 and the said
amendments have been explained by
Circular for various Dealers.
• The Revision in the tax rates and
amendments to MVAT schedule
entries are explained in part I of the
circular Which can be viewed at:-
http://www.mahavat.gov.in/Mahavat/MyFold/KNOWLEDGE%20CENTER/TRADE%20CIRCULARS/DateWise/KNOW_TRADEC_DW_MVAT/KNOW_TRADEC_DW_MVAT_04_22_16_0_58_3PM.pdf
Circular No. VAT.09 T of 2016 dated 22/04/16
---------------------------------------------------------------
General changes :-
• From F.Y. 2016-17 onwards, all the
registered dealers are required to file
Invoice Wise details of sales and
purchase in the Return annexures J1 &
J2 .
• Now the Dealer is allowed to file
Multiple revised returns. The time limit
for filling of Revised Returns will be the
Due date of Filling Vat Audit report.
• Amendments made in the Budget now,
the Contactor Dealer will be allowed to
transfer the credit of WCT TDS to sub-
Contractor.
For Private Circulations Only 27 The Update –May, 2016, SGCO & Co.
• Amnesty Schemes for Dues under Acts
Administered by the Sales Tax
Department:-
• Amnesty Schemes for Dues under Acts
Administered by the Sales Tax
Department:-
• The Dealer Who has filed an Appeal
against recovery of Disputed dues is
stayed by the appellate authority , can
avail a benefit of Amnesty Scheme
Period Before
01/04/2005
From 01/04/2005 to
31/03/2012
If the dealer pays
the disputed tax
amount in full,
then no interest &
penalty is
required to be
paid.
If dealer pays
disputed tax amount
and 25% of Disputed
interest, the
corresponding
balance interest
and Penalty shall be
waived.
• The Benefit of Amnesty scheme Shall
be available from 01st April 2016 to
30th September 2016.
-----------------------------------------------------------------
Judicial Rulings:-
1) Mere Mentioning of incorrect Assessee code
does not amount to Non –
Payment of duty.
FACTS
The Appellant by oversight deposited excise duty
in an incorrect assesse code. The fact was
informed to the department with a request to
rectify the same. However, the department
rejected the request and issued Show Cause
Notice for recovery of duty with penalty and
interest . The said notice was challenged by the
appellant by the filing writ petition.
HELD
The High Court held that merely mentioning of
an incorrect code does not amount to non –
payment of duty as government had received
payment in that incorrect code and this fact was
not denied.Further, it was noted that there was
no separate duty liability under that code.
Accordingly, the court directed the department
accounting division to give due credit.
Devang Paper Mills Pvt Ltd Vs UOI (Gujarat High
Court)
-----------------------------------------------------------------
2) CENVAT credit of service tax paid on renting of
branch offices, health insurance of employees
upto 31/03/11, construction services upto
31/03/2011, travel agent services and interior
decorator and architect service is allowable.
FACTS
The Appellant paid rent for their branch offices
which assisted in procurement of orders and
delivery of goods and was used for provision of
erection, commissioning and repairs services.
For Private Circulations Only 28 The Update –May, 2016, SGCO & Co.
Insurance services were availed in relation to
employees who travel for business meetings,
sales, training etc. and for loss or damage to the
goods .Further, credit was availed on
construction services for dismantling of building
and construction of a storage shed and on travel
for the purpose of business meetings, sales etc.
credit was also availed on interior decorator and
architects services in relation to branch offices
and showrooms. The department contended
that the service of renting was utilized beyond
the place of removal and the other services had
no nexus with the manufacturing activity and
thus credit was denied.
HELD
The Tribunal relying on the decision of Oracle
granite Ltd. wherein CENVAT credit on renting of
immovable property for marketing offices was
allowed, it was held that such service is eligible
for CENVAT credit and also considering that the
premises were used for provisions of services
credit was allowed.
Further relying on the decision of Stanzen
Toyotetsu India P. Ltd. credit on the health
insurance of employees was allowed upto
01/03/2011. Insurance for loss or damage of
goods was allowed to the extent they covered
journey of goods upto the place of removal. In
relation to construction services it was noted
that as per Rule 2(l) of the CENVAT Credit Rules,
2004 input services includes services in relation
to setting up
modernization, renovation or repairs of a factory
and relying on the decision of Commissioner of
C.Ex.Delhi III vs Bellsonica Auto Companies India
Pvt Ltd. credit was allowed. Further relying on
the decision of goodluck Steel Tubes Ltd. credit
was allowed on travel agents services. Credit on
interior decorator and architects services was
allowed being in the nature of modernization/
renovation or repair of factory or an office to
such factory or premises.
M/s. Carrier Air-Conditioning and Refrigeration Ltd. vs Commissioner of Central Excise, Delhi-IV -----------------------------------------------------------------
For Private Circulations Only 29 The Update –May, 2016, SGCO & Co.
MCA UPDATES
Companies Filing of Documents &Forms in XBRL Language Amendment Rules, 2016
The Central Government has made amendments
in Companies (Filing of Documents and Forms in
Extensible Business Reporting Language) Rules,
2015 providing exemption to banking,
insurance, power sector, non-banking financial
companies and housing finance companies to file
financial statements under XBRL.”.
Dated 04th April, 2016
-----------------------------------------------------------------
Relaxation of additional fees and extension
of last date of filing of various e-Forms
under the Companies Act
Reference No- General Circular No 03/2016
Due to the launch of the new MCA system, a
number of stakeholders have faced issues and
representations have been received from
stakeholders to resolve the issues including, for
allowing waiver of additional fee till the new
system stabilizes.
In view of the above, Ministry of Corporate
Affairs has decided to relax the additional fee
payable on e-forms which are due for filing by
companies between 25th March 2016 to 30th
April, 2016 as one time waiver of additional fee
and it is also clarified to stakeholders that if such
due e-forms are filed after 10.05.2016, no such
relaxation shall be allowed.
Dated 12th April, 2016
-----------------------------------------------------------------
Clarification with regard to companies
(Accounting Standards) Amendment Rules,
2016
The Ministry of Corporate Affairs vide
notification dated 30/03/2016 amended the
Companies (Accounting Standards) Rules, 2016 .
In this regard stakeholders have sought
clarifications with regard to the accounting
period for which the accounts would need to be
prepared in accordance with these amended
Accounting Standards Rules.
The matter has been examined in the Ministry
and it is hereby clarified that the amended
Accounting Standards should be used for
For Private Circulations Only 30 The Update –May, 2016, SGCO & Co.
Preparation of accounts for accounting periods
commencing on or after the date of notification.
Dated 27th April, 2016 -----------------------------------------------------------------
New instructions for preparation of B/S &
P/L of a Company
In excercise of the powers conferred by the
Companies Act, 2013 the Central Government
has made amendments to Schedule III of the said
Act relating to General instructions for
preparation of Balance Sheet and Statements of
Profit and Loss of a Company.
Kindly refer the below-mentioned link for the
complete study of the new instructions for
preparation of B/S & P/L of a Company:-
http://mca.gov.in/Ministry/pdf/Notification_04072016.pdf Dated 06th April, 2016. -----------------------------------------------------------------
For Private Circulations Only 31 The Update –May, 2016, SGCO & Co.
For Private Circulations Only 32 The Update –May, 2016, SGCO & Co.
UPCOMING DUE DATES May 2016
June 2016
INCOME TAX INCOME TAX 7th - TDS/TCS payment for April 2016. 7th - TDS/TCS payment for May 2016
7th - Filing of 15G/15H received in the mont of April 2016. 7th - Filing of 15G/15H received in the month
of May 2016.
15th -
TDS/ TCS Statements in form 24Q, 26Q, 27EQ, 27Q for quarter of March 2016 15th -
First installment of Advance Income Tax for all assessee’s (Company & Non Company) for AY 2017-18
22nd - Issue of TDS Certificate u/s 194-IA
30th - Issue of TDS Certificate (non-salary) / TCS Certificates
31st - Issue of Salary Certificate in Form 16 for FY 2015-16
MVAT/CST/PT MVAT/CST/PT
10th -
MVAT/CST Half Yearly return filing for Oct’15 to Mar’16 incase where the entire liability is paid on or before the due date for the dealers who are eligible for filing Audit Report in Form 704
21st - MVAT/CST payment for the month ending May’16
21st - MVAT/CST payment for the month ending Apr’16 21st - Works Contract TDS payment for
month of May’16 If deducted.
21st - Works Contract TDS payment for month of Apr’16 If deducted. 30th - PT payment if salary of May’16 paid in
June’16
31st - PT payment if salary of Apr’16 paid in May’16 30th - PT return for the month of May’16, if
salary of May’16 paid in June’16
30th -
MVAT/CST monthly/quarterly return for Mar’16 in case where the entire liability is paid on or before the due date for the dealers who are eligible for filing Audit Report in Form 704
30th -
MVAT/CST quarterly return for the period Jan’16 to Mar’16 for the dealer who are not liable to file Form -704 if the entire liability is paid on or before due date
31st - PT return for the month of Apr’16, if salary of Apr’16 paid in May’16 30th - Due date for filing E-ANNEXURE with
the last MVAT return of financial Year
30th -
MVAT/CST Half Yearly return filing for Oct’15 to Mar’16 in case where the entire liability is paid on or before the due date for the dealers who are not liable for filing Audit Report in Form 704
30th - MVAT/CST monthly return for May’16 in case where the entire liability is paid on or before the due date
For Private Circulations Only 33 The Update –May, 2016, SGCO & Co.
SERVICE TAX
SERVICE TAX
5/6th -
Service Tax monthly payment (other than sole proprietor & Partnership Firms) for Apr’16*
5/6th - Service Tax monthly payment (other than sole proprietor & Partnership Firms) for May’16*
30th -
Due date for making payment of difference of amount determined of Cenvat Credit as per rule 6(3) of CCR ,2004
EXCISE
EXCISE
5/6th - Excise Payment for Apr’16* 5/6th - Excise Payment for May’16* 10th - Excise Return for (ER-1) Apr’16
10th - Excise Return for (ER-1) May’16
10th - Excise return (ER-2) for Apr’16 (Applicable for EOU’s) 10th - Excise return (ER-2) for May’16
(Applicable for EOU’s) 10th - Excise Return (ER-6) for Apr’16** 10th - Excise Return (ER-6) for May’16** COMPANY LAW, RBI, & SEBI
COMPANY LAW, RBI, & SEBI
7th -
File return of exposure to capital markets in Form NBS-6(Para 22 of Prudential Norms,2007 RBI)
7th -
File return of exposure to capital markets in Form NBS-6 (Para 22 of Prudential Norms,2007 RBI)
7th -
File a monthly return in prescribed format (NBFC-ND)(Circular No.57 of NBFC Supervision Div. RBI)
7th - File a monthly return in prescribed format(NBFC-ND)(Circular No.57 of NBFC Supervision Div. RBI)
30th -
The listed entity shall submit quarterly and year-to-date standalone financial results to the stock exchange within forty-five days of end of each quarter, (other than last quarter) along with Limited Review Report or Audit Report as applicable
15th -
File Prudential Norms return form NBS – 2 2007 (Para – 21, NBFC – D, Prudential Norms Director)
(Regulation 33 - Financial Results :-SEBI (Listing obligations and disclosure Requirements ) Regulations 2015)
Assessee who has paid service tax or excise of more than Rs 1 Lacs in the P Y by way of cenvat credit or cash is liable to pay service tax electronically by 6th of the following month. --Applicable for assessee who has paid excise duty of Rs 1 crore or more in preceding F.Y
For Private Circulations Only 34 The Update –May, 2016, SGCO & Co.
M u m b a i • V a d o d a r a
Disclaimer
This newsletter is prepared strictly for private circulation and personal use only. The newsletter is for general guidance on matters of interest only and does not constitute any professional advice from us. One should not act upon the information contained in this newsletter without obtaining specific professional advice. Further, no representation or warranty (expressed or implied) is given as to the accuracy or completeness of the information contained in this newsletter. This newsletter (and any extract from it) may not be copied, paraphrased, reproduced, or distributed in any manner or form, whether by photocopying, electronically, internet, within another document or otherwise, without the prior written consent of S G C O & Co
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