Circulars

 

  • Income Tax
  • Service Tax
  • VAT (Maharashtra)
  • International Law
  • Company Law                                    

Income Tax

 

Linking of Aadhaar Card after Supreme Court’s decision:

The CBDT has issued a press release dated 10th June 2017 in which it has explained the implications of the Supreme Court’s verdict in Binoy Visam vs. UOI dealing with the constitutional validity of section 139AA of the Income-tax Act which makes the linkage of Aadhaar Card with the PAN.

 

The CBDT has inter alia taken the view that from July 1, 2017 onwards, every person eligible to obtain Aadhaar, must quote their Aadhaar number or their Aadhaar Enrolment ID number for filing of Income Tax Returns as well as for applications for PAN.

 

CBDT online facility to link Aadhaar with PAN

The Income-Tax Department has launched an online facility to link Permanent Account Numbers with Aadhaar. Under the facility, the taxpayer will have to provide the PAN and Aadhaar number, which then will be verified from the Unique Identification Authority of India, and then the two will be linked. In case of any minor mismatch in Aadhaar name provided, Aadhaar one time password (OTP) will be required, said the Central Board of Direct Taxes (CBDT), adding that taxpayers must ensure that the date of birth and gender in PAN and Aadhaar are exactly same for the facility to work. In case the Aadhaar name is different from the name in PAN, then the linking will fail. The taxpayer will then be prompted to change the name in either the Aadhaar or in the PAN database.

(Source: http://www.thehindubusinessline.com/economy/policy/cbdt-online- facility-to- link-aadhaar-withpan/article9693656.ece)

 

CBDT issues draft ICDS on real estate

The Central Board of Direct Taxes (CBDT) released the draft Income Computation and Disclosure Standard (ICDS) on real estate transactions for public consultation. The proposed ICDS will be applicable for determination of income from all forms of transactions in real estate, including land and buildings. The draft ICDS doesn’t mandate obtaining all critical approvals for revenue recognition after the Real Estate (Regulation and Development) Act,

2016, (RERA), came into effect. It also proposes recognition of transferable development rights (TDR) at the fair value against fair market value or net book value as per the guidance note prepared by the Institute of Chartered Accountants of India (ICAI).

(Source : http://www.financialexpress.com/economy/cbdt-issues- draft-icds- on-real-estate/664814/)

 

How 15,080 profitable Indian companies paid no tax in 2015-16

Tax incentives allowed 15,080 profit-making Indian companies to have effective tax rates of zero, and in some cases less than zero, in 2015-16, according to an India Spend analysis of the latest available national tax data or more specifically a government analysis called the Revenue Impact of Tax Incentives under the Central Tax System.

 

The central government introduced a minimum alternate tax (MAT) in the late 1980s to tackle this anomaly, but even MAT has exemptions that appear to have negated its original intent partially.

(http://www.business-standard.com/article/economy-policy/15-080-profitable-indian-companies-paid-notax-in-2015-16 117061200101ti1.html)

 

Income Tax Act treats all assessees alike, not discriminatory: Supreme Court

The Supreme Court has termed as “fallacious” an argument that the new provision of the Income Tax Act making. Aadhaar mandatory for filing income tax returns, is discriminatory and creates two classes. The apex court did not find anything wrong with section 139AA of the Act and said all income tax assessees “constitute one class” and are “treated alike” by this provision which was challenged. The newly incorporated section 139AA provides for mandatory quoting of Aadhaar or enrolment ID of Aadhaar application form for filing of income tax returns

and making application for allotment of PAN with effect from July 1 this year.

(http://economictimes.indiatimes.com/news/politics-and- nation/income-tax- act-treats- all-assesses-alikenot-discriminatory-supreme- court/articleshow/59106682.cms)

 

One nation, one tax department: I-T takes cue from GST

The one-nation, one-tax principle that underlines the goods and services tax (GST), set to be rolled out on July 1, could be adopted in a much more broader sense by the income tax department through a path-breaking initiative on jurisdiction-free assessment. This would mean that a taxpayer in Mumbai could be assessed by an income tax officer located in Patna, a significant leap toward eradicating corruption by reducing the need for face-to- face contact between citizens and tax officials to the absolute minimum besides speeding up processing.

(Source : http://economictimes.indiatimes.com/news/economy/policy/one-nation- one-tax- department-i-ttakes-cue- from-gst/articleshow/59026099.cms)

 

Income Tax Department launches Operation Clean Money

The Union Minister of Finance, Shri Arun Jaitley officially launched the Portal of Operation Clean Money (https://www.cleanmoney.gov.in) at New Delhi on 16 th May 2017, in the presence of senior officers of the Ministry of Finance, Department of Revenue and the Central Board of Direct Taxes. The Operation Clean Money was initiated by the Income Tax Department (ITD) on the 31st January, 2017 with the launch of e-verification of large cash deposits made during 9th November to 30th December 2016.

 

In the first batch, around 18 lakh persons were identified in whose case, cash transactions did not appear in line with the tax payer’s profile. There has been an encouraging response to the online verification process and more than 9.72 lakh taxpayers submitted their response without visiting Income tax office up to 12th May, 2017. These taxpayers have provided response for 13.33 lakh accounts involving cash deposits of around Rs. 2.89 lakh crore.  The online responses have been assessed and no further action will be taken in cases of satisfactory explanation.

 

The salient features of the portal launched today are:

 

Providing comprehensive information at one place consisting of Step by Step Guides, Frequently asked Questions, User Guides, Quick Reference Guides and Training Toolkits related to verification process and other issues.

 

Enabling Citizen Engagement for creating a tax compliant society where every Indian takes pride in paying taxes. Citizens would be able to support the operation clean money by taking pledge, contribute by engaging and educating fellow citizens, and share their experiences and provide feedback.

 

Enabling Transparent Tax Administration by sharing status reports (including sanitized cases and explanation of verification issues) and thematic analysis reports (e.g. taxpayer segment analysis of cash deposit data).

 

In Phase II of Operation Clean Money, the high risk cases will be handled by selecting appropriate enforcement action (verification, search, survey, scrutiny). A targeted campaign will be initiated in cases with identified risk issues.

 

The key components of the targeted campaign are:

  • Communication of specific issue through digital channels (Email, SMS etc.)
  • Providing detailed explanation to create environment of transparency
  • Sharing investigation findings for specific segments (e.g. Jewellers, petrol pump, traders, property purchasers etc.)
  • Centralised monitoring and gradual escalation of inadequate response cases for enforcement action.

(http://www.incometaxindia.gov.in)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Tax

 

CENVAT Credit • CENVAT Credit availed on keyman insurance policy taken for the Managing Director of the company is admissible since:

 

(I) The objective of taking such insurance policy is to protect the company from the loss that may occur to it in the event of the death of the keyman.

(ii) On happening of the contingency, the sum assured is paid to assessee and not to the family of keyman In such circumstances, insurance services and auxiliary services availed for taking such keyman insurance policy cannot be said to fall within the exclusion part of definition of input service viz. service provided in relation to life insurance used primarily for personal use or consumption of employee.

[Anjani Portland Cements Ltd vs. CST (2017) 47 STR 326 (Tri. – Hyderabad)]

 

  • In the present case, the Tribunal held that denial of benefit of CENVAT Credit to service recipient on the grounds that provider of service has not deposited tax with department is incorrect.

[Parker Markwell Indus Ltd. vs. CST (2017) 48 STR 59 (Tri. – Hyd.)]

 

Penalty • Where the assessee had disclosed its entire service tax liability in its ST-3 return but had discharged the same belatedly along with interest, the Tribunal held that the assessee had no intent to evade payment of tax. Further it also observed that in such cases, no penalty u/s 76 was imposable on account of delay in payment of tax after observing that penalty u/s.76 cannot be interpreted to mean that in each and every case of delayed payment penalty is required to be imposed when entire tax liability to be paid has fully been disclosed in ST-3 returns.

[Balmukund Sponge and Iron Ltd vs. CST (2017) 48 STR 55 (Tri. – Kolkata)]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VAT   (Maharashtra)

 

The Computerized Desk Audit (CDA) for the period 2014-15.

  • The department has now generated Computerized Desk Audit (CDA) reports for the period 2014-2015 after analyzing electronic data pertaining to e-Returns, audit reports in form e-704 and annexures thereof uploaded by all the dealers.

 

  • The CDA for this period has resulted into findings of likely tax liability in respect of some of the dealers. The CDA findings for this period are available through dealers’ access on the web site www.mahavat.gov.in and also dealers can submit compliance electronically.

 

  • The dealer will not be required to visit the sales tax office for audit period if he agrees with the findings of the CDA and pays tax as per CDA along with applicable interests.

 

  • The department has selected the cases for comprehensive assessment and issue base audit for the year 2014- 15, the facility of CDA will not be available to these Assessees.

 

  • Assessees, in these cases, will be required to attend before the assessing authority for the complete verification of their books of accounts. The list of assesses selected for assessment and IBA is displayed on the web site www.mahavat.gov.in.

For further details, visit www.mahavat.gov.in

 

Distribution of GST Provisional ld and Access Token of Phase 5 dealers.

The activity of GST data migration and distribution of Provisional Ids and Access Token is in progress since 14th November 2016. This activity has been carried out by Maharashtra Sales Tax Department (MSTD) in stage-wise manner in 4 phases.

 

  • Provisional Ids and Access Token of Phase 5 dealers are now made available by GSTN. Dealer can obtain their Provisional Ids from department’s portal www.mahavat.gov.in using their login credentials. The list of all such dealers is published under “What’s New” Section on MSTD’s portal. For Phase 5, dealers registered upto 12-05-2017 are considered.

 

  • The dealers wherein PAN amendments are carried out on or before 12-05- 2017, are not included in Phase 5 list. The same will be included shortly and updated list of Phase 5 will be published in “What’s New” Section on MSTD’s portal.

 

  • The dealers, who are not covered in the Phase 5 and have registration either under Service Tax or Central Excise, are requested to check with respective department for their Provisional ld and complete the GST Enrollment.

Reference: Trade Circular 17T of 2017 dated 30 th May, 2017 on www.mahavat.gov.in

 

 

 

 

 

International Tax

 

Deemed brand development is not a separate international transaction

Based on the facts and in the circumstances of the case, recently, the Chennai Bench of the income-tax Appellate Tribunal in the case of Hyundai Motor India Limited (the taxpayer or HMIL), deleted the INR 350 crore transfer pricing adjustment [Assessment Year 2009-10 to AY 2011-12] stating that deemed brand development is not a separate international transaction and highlighted that the taxpayer’s case is different from the special bench ruling in the case of LG Electronics.

 

The Tribunal has done a threadbare analysis of the definition of international transaction as per Section 92B of the Act and categorically held that the brand value accretion does not fall under the said definition.

(Hyundai Motor India Limited v. DCIT (ITA No. 853/Chny/2014 and 563/Chny/2015)

 

 

Reimbursement of cost from AE (without mark-up) excluded from operating costs while computing arm’s length price. In the absence of a specific plea and supporting documents,

Revenue’s general plea dismissed

Based on the facts and in the circumstances of the case, recently the Delhi High Court (High Court) in the case of CPA Global Services Private Limited (the taxpayer) dismissing tax department’s appeal upheld the decision of the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) regarding exclusion of reimbursement of costs (without mark-up) from Associated Enterprise in respect of cost incurred by the taxpayer towards maintenance of spare capacity while computing taxpayer’s operating costs. The High Court also held that unless there is a specific plea to the effect that the factual finding by Tribunal is perverse, the Court cannot entertain such a ground of appeal.

(CIT v. CPA Global Services Private Limited (ITA 266/2017)– Delhi High Court)

Reimbursement of expenditure pursuant to training and technical agreement

is not taxable as FTS as no profit element is embedded in such reimbursement

Based on the facts and in the circumstances of the case, recently, the Mumbai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Gemological Institute International Inc (the taxpayer) held that the amount received by the taxpayer for reimbursement of travel expenditure, group health insurance and other incidental expenditure pursuant to training and technical service agreement is not taxable as Fees for Technical Services. The Tribunal observed that no profit element has been included in such reimbursement.

(Gemological Institute International Inc v. DCIT (ITA No. 4659/Mum/2014) and (ITA No.385/Mum/2016) –Taxsutra.com)

 

 

 

 

 

 

 

 

 

 

Company Law

 

Clarification regarding applicability of Section 16 (1)(a) of the Companies Act, 2013 with reference to cases under corresponding provisions of Companies Act, 1956

A representation was received from Regional Director, Mumbai seeking clarification as to whether Regional Director can entertain, fresh applications u/s. 16 off the Companies Act 2013 in respect of applications which were earlier rejected by them under Companies Act 1956 on the grounds of being time-barred as the prescribed period of twelve months has been completed (under Section 22(1)(ii) (b) of the Companies Act 1956). It was expressed that Section 16 of the Companies Act, 2013 does not specify any time limitation.

 

The matter has been examined in consultation with D/O Legal Affairs and it is clarified that applications that were rejected by Regional Directors under Section 22(1)(ii)(b) of the Companies Act 1956, on the ground that such applications were made after the requisite period of twelve months specified therein, cannon apply afresh under Section 16 (1) (a) of the Companies Act, 2013, as the extinguished limitation cannon be considered to be revived even if no limitation period has been prescribed / laid down in the said section.

http://www.mca.gov.in/Ministry/pdf/Circular04ti2017ti17052017.pdf

 

Withdrawal of General Circular

Refer General Circular No. 03/2017 dated 27.04.2017 regarding “Transfer of Shares to IEPF Authority”. The subject matter of the said circular is being reviewed by the Ministry and hence the said circular stands withdrawn with immediate effect. Fresh instructions on this matter will be issued in due course of time.

http://www.mca.gov.in/Ministry/pdf/Circularti16052017.pdf

Clarification regarding due date of transfer of shares to IEPF Authority

Pursuant to second proviso to Rule 6 of IEPF (Accounting, Audit, transfer and refund) Amendment Rules, 2017 notified on February 28, 2017, where the seven years period provided under sub-section (5) of section 124 is completed during September 07, 2016 to May 31, 2017, the due date for transfer of such shares by Companies is May 31, 2017.

http://www.mca.gov.in/Ministry/pdf/GeneralCircular6ti29052017.pdf

Clarification regarding transmission of Securities by Operation of Law

Clarity has been sought by stakeholders w.r.t. issue of duplicate shares under Rule 6 (3)(d) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. It has been stated that since transfer of shares to IEPF under section124 (6) of the Companies Act, 2013 read with rules referred to above takes place on account of operation of law hence the procedure followed during transmission of shares may be followed in such cases and duplicate shares need not be issued in such cases. The suggestion made by the stakeholders has been examined in the Ministry and it is clarified that the procedure similar to what is followed in case of transmission of shares may be followed by companies while transferring shares to IEPF Authority pursuant to section 124 (6) read with applicable rules.

http://www.mca.gov.in/Ministry/pdf/IEPFGcircular07ti05062017.pdf

GST Council finalizes tax rates for remaining items, States agree to July 1 rollout

The all-powerful GST Council headed by the Hon’ble Finance Minister, Mr. Arun Jaitley met for the fifteenth time with an agenda to fix the rates for almost all the remaining items, such as precious metals (gold and silver), diamonds, biscuits, textiles, and footwear. Ahead of this meeting, sprint begins for GST rollout fromJuly 1, 2017 as envisaged.

 

With the conclusion of the 15th GST Council meet on June 3, 2017, the gist of the key takeaways from the meeting of the GST Council are as under:

 

  • All other States have agreed to the July 1 timeline, despite reservations voiced by West Bengal:

In this regard, the Hon’ble Finance Minister, Mr. Arun Jaitley has said that “he was hopeful about the July 1 roll-out. He said the GST Network (GSTN), the information technology backbone of the new tax regime, had responded satisfactorily to various questions from state finance ministers.”

 

  • Finalized tax rates for most of remaining categories of goods:

 

The GST Council has broadly approved the GST rates for most of remaining categories of goods.

Gist of the Schedule of GST Rates for Certain Goods:

 

Sl. No. Category of Good GST Rate
1. Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin 3%
2. Rough Diamond 0.25%
3. Cotton Fabric, Cotton Yarn other than Khadi yarn (fall under tax slab of 0%) etc. 5%
4. Readymade Garment:
– All goods of sale value not exceeding Rs. 1000 per piece 5%
– All goods of sale value exceeding Rs. 1000 per piece 12%
5. Fabrics of manmade textile materials, Fabrics of manmade staple fibres 5% [With no refund of ITC accumulation]
6. Raw Silk, Silk Waste 0%
7. Jute fibres, raw or processed but not spun 0%
8. Footwear gaiters and the like; parts of such articles
– Footwear having a retail sale price not exceeding Rs. 500 per pair, provided that such retail sale price is indelibly marked or embossed on the footwear itself 5%
– In any Other case 18%
9. Biscuits 18%
10. Biris 28% (Without Cess)
11. Bidi Wrapper Leaves 18% (Under reverse charge)
11. Agricultural Machinery other than farm type machinery and parts thereof 5%

 

In respect of Supplies to Canteen Stores Department(CSD), it has been provided that-

– 50% concession from applicable GST rate on supplies to CSD [WITH NO CONCESSION FROM COMPENSATION CESS], which will be refunded to the CSD [under Section 55 of the CGST/SGST Act].

– Exemption from GST on supplies [SALES] made by CSD to Unit Run Canteens and on supplies [SALES] made by CSD or Unit Run Canteens to final consumer.

 

GST Rate Schedule for Certain Goods as per discussions in the GST Council meeting held on June 3, 2017, can be accessed at below link:

 

http://www.cbec.gov.in/resources//htdocs-cbec/gst/chapter-wise-rate-wise-gst-schedule-03.06.2017.pdf

 

  • Final approval to Draft Rules for Return along with Return Formats and Transitional Rules:

The GST Council has approved the following Draft Rules:

  1. Final Return – Rules and GSTP Formats, Mismatch Formats, Return Formats
  2. Final Transitional Rules

However, as of now, ‘Final Return – Rules and GSTP Formats, Mismatch Formats, Return Formats’ have been uploaded immediately after the GST Council’s decision, which can be accessed at below link:

  1. Final Return Rules:http://www.cbec.gov.in/resources//htdocs-cbec/gst/03062017-return-rules.pdf
  2. Final GST Practitioner Formats:http://www.cbec.gov.in/resources//htdocs-cbec/gst/03062017-gstp-formats.pdf
  3. Final Mismatch Formats:http://www.cbec.gov.in/resources//htdocs-cbec/gst/03062017-mismatch-formats.pdf
  4. Final Return Formats:http://www.cbec.gov.in/resources//htdocs-cbec/gst/03062017-return-formats.pdf

 

Gist of the key changes made in the Final Transitional Rules (yet to be made available on public domain):

– Where the tax rate exceeds 18%, traders and retailers can make claim of 60% against the CGST or SGST payable. For tax rate below 18%, it will be retained at 40%.

– Revenue Secretary, Dr. Hasmukh Adhia said, for transition stock, the Government will refund 100% Excise duty for goods costing above Rs. 25,000, which bears a brand name of the manufacturer and are serially numbered like TV, fridge or car chasis. It is being further stated that on all those items, even if it is coming through the dealer, the manufacturer will give the credit transfer document to the distributor and the distributor will be able to take 100% credit for the big ticket items.

 

  • Submission of Draft Rules for anti-profiteering for consideration:

The Centre has submitted Draft Rules for anti-profiteering for consideration of the GST Council members in the 15th meeting.

 

Mr. Jaitley said that “the Council has agreed to set up a Committee comprising officials from Centre and states to look into the complaints with regard to the anti-profiteering provision in CGST Act. The setting up of the Committee is part of the draft anti-profiteering rules that have been submitted to the Council for its approval. Following the approval of the rules by the Council, the draft rules shall be put in public domain and after the feedback, shall be again brought back to the Council for the final approval.

 

  • IGST Exemptions/Concessions under GST:

The list of IGST Exemptions/Concessions under GST has been uploaded after the 15th GST Council meet, which are as under:

  1. Multilateral/Bilateral Commitments – Imports by Privileges Persons, Organizations, Authorities and Foreigners
  2. Exemption for goods in transit to and from Nepal Bhutan [LAND LOCKED COUNTRIES] Notification No. 38/96 –Customs dated July 23, 1996.
  3. Miscellaneous exemptions – Notification No. 12/2012-Customs dated March 17, 2012.
  4. Exemption from IGST on imports by a SEZ unit or SEZ developer for authorized operations
  5. Exemption from IGST from bonafide passenger baggage and transfer of residence

 

List of IGST Exemptions/Concessions under GST can be accessed at below link:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/igst-exemption-concession-list-03.06.2017.pdf

 

  • Amendment to previous rates fixed for certain goods for removing ambiguity:

The GST Council has made amendments/additions in the GST Rate Schedule for certain Goods for providing more clarification. For e.g. as per the earlier GST Rate Schedule for Goods, Solar Panel was falling under the tax slab of 18% as well as 5%, now it has been clarified vide amendment that Solar Panel will be taxable at 5%.

 

Addendum to the GST Rate Schedule for Goods can be access at below link:

http://www.cbec.gov.in/resources//htdocs-cbec/gst/addendum-gst-rate-schedule-03.06.2017.pdf

 

 

 

Experts Comments:

GST Council has made all decent efforts to ensure proper fitments of remaining categories of goods. New slab rate of 3% introduced for gold, silver and diamonds, marks an evidence that Government is keenly looking towards various concerns of the Industry. Similarly, concerns of textile industry have also been taken care of as most of the textile and yarn is taxable at 5%, except ready-made garments which will be taxed at 12%.

 

A Big sign of relief is granted in the form of increase in proportion of deemed transitional credits where duty paying documents are missing. Complete Industry Inc was pushing hard for increase in quantum of transitional credit, though increase in proportion is limited only to specified rate products.

 

In the next meeting of the GST Council, which is scheduled to be held on June 11, 2017, the GST Council will review the rates on the basis of feedback to be received from Industry and also review the preparedness before the July 1 rollout. Pending Draft Rules like Accounts and Records, E-way Bill etc., may also be taken up in the next meeting.

 

All these series of events and upcoming events are going to end the marathon and enlighten the pave for rolling out of the biggest indirect tax reform from July 1, 2017. Nonetheless, it is time now for the Industry to gear up and join the marathon to ensure their hassle-free transition to GST.

 

 

To,

All Constituents,

 

GST is going to take place on 1st July, 2017, as per announcement made by Prime Minister of India and Finance Minister Under sub section 3 of section 140, stock in hand on the date of enforcement of the GST, input credit shall be available to the trader/manufacturer of VAT or Central Sales Tax and other taxes which are now covered in GST provided the stock is not 1 year old and dealer has all evidences of the payment of taxes. Relevant section is also reproduced for your ready reference.

 

“140(3) – A registered person, who was not liable to be registered under the existing law, or who was engaged in the manufacture of exempted goods or provision of exempted services, or who was providing works contract service and was availing of the benefit of notification No. 26/2012-Service Tax, dated the 20th June, 2012 or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day subject to the following conditions, namely:-

 

(i) such input or goods are used or intended to be used for making taxable supplies under this Act;

 

(ii) the said registered person is eligible for input tax credit on such inputs under this Act;

 

(iii) the said registered person is in possession of invoice or other prescribed documents evidencing payment of duty under the existing law in respect of such inputs;

 

(iv) such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day; and

 

(v) the supplier of services is not eligible for any abatement under this Act;

 

            Provided that where a registered person, other than a manufacturer or a supplier of services, is not in possession of an invoice or any other documents evidencing payment of duty in respect of inputs, then, such registered person shall, subject to such conditions, limitations and safeguards as may be prescribed, including that the said taxable person shall pass on the benefit of such credit by way of reduced prices to the recipient, be allowed to take credit at such rate and in such manner as may be prescribed.”

 

            In view of above, you are requested to look into and prepare proper register to claim input of taxes paid.

 

It is just for your information.

 

GSTGST
READY REFERENCER
C A R O H I T S U R A N A+ 9 1  9 8 3 6 6 6 3 7 8 1C A H A R S H G A D O D I A+ 9 1  9 8 3 0 7 5 2 4 8 9C A S O N A M A G R A W A L+ 9 1  9 8 3 6 2 6 5 1 8 7 Criteria for GSTFor All India [Except Special Category States]
Aggregate 20 Turnover Lakhs When Aggregate Turnover Exceeds INR 20 Lakhs, GST is applicable.
For Special Category States
[Includes States of Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.]
Aggregate 10 Turnover Lakhs
When Aggregate Turnover Exceeds INR 10 Lakhs, GST is applicable. One Nation – One Tax
Goods and Service Tax [GST] is an indirect taxation in India merging most of the existing taxes into a single system of taxation
GST is a comprehensive indirect tax on manufacture, sale and consumption of goods and services throughout India, [Except state of Jammu and Kashmir], to replace taxes levied by the central and state governments. Know your GST Registration Number
Features :
• 15 digit
• Alphanumeric
• 5 elements
19 AAAAA0000A 1 Z 8
State Code Permanent Account Number Entity An Check [PAN] Number of Alphabet Sum digit the same PAN by Holder in that default State Sl. Name of State or Vehicle Series No. Union Territories Type First two characters State Code State Capital 1 Jammu and Kashmir STATE JK 1 Shrinagar/Jammu 2 Himachal Pradesh STATE HP 2 Shimla 3 Punjab STATE PB 3 Chandigarh 4 Chandigarh UT CH 4 Chandigarh 5 Uttarakhand STATE UK 5 Dehradun 6 Haryana STATE HR 6 Chandigarh 7 Delhi UT DL 7 Delhi 8 Rajasthan STATE RJ 8 Jaipur 9 Uttar Pradesh STATE UP 9 Luknow 10 Bihar STATE BR 10 Patna 11 Sikkim STATE SK 11 Gantok 12 Arunachal Pradesh STATE AR 12 Itanagar 13 Nagaland STATE NL 13 Kohima 14 Manipur STATE MN 14 Imphal 15 Mizoram STATE MZ 15 Aizawl 16 Tripura STATE TR 16 Agartala 17 Meghalaya STATE ML 17 Shillong 18 Assam STATE AS 18 Dispur 19 West Bengal STATE WB 19 Kolkata 20 Jharkhand STATE JH 20 Ranchi 21 Orissa STATE OR 21 Bhubaneswar 22 Chhattisgarh STATE CG 22 Raipur 23 Madhya Pradesh STATE MP 23 Bhopal 24 Gujarat STATE GJ 24 Gandhinagar 25 Daman and Diu UT DD 25 Daman 26 Dadra and Nagar Haveli UT DN 26 Silvassa 27 Maharashtra STATE MH 27 Mumbai 28 Andhra Pradesh STATE AP 28 Hyderabad 29 Karnataka STATE KA 29 Bangalore 30 Goa STATE GA 30 Panaji 31 Lakshadweep UT LD 31 Kavarati 32 Kerala STATE KL 32 Thiruvanathapuram 33 Tamil Nadu STATE TN 33 Chennai 34 Pondicherry UT PY 34 Puducherry 35 Andaman and Nicobar Islands UT AN 35 Port Blair  VAT and GST VAT GSTFrequency of Once a quarter or Minimum of 3compliance month times every monthrequirement Revision of Available No scope forReturns revisionBill/Invoice Not required as Invoices of supplierMatching such and recipient MUST MATCHInput Credit Available on the Available only basis of returns when Invoices are matched and the seller has discharged his liabilityInput Credit Not available on Available for all theon Expenses all the business INWARDS which expenses are used in furtherance of business. APPLICABILITYParticulars Current Scenario GST ScenarioTax on Inter Exempt using TAXABLE howeverState transfer Form – F Full Credit of thisof Goods to amount is availableBranch or as Input Tax CreditAgents Tax on transfer Generally exempt; Might be taxable,of Goods to Depends upon Unless TIN ofBranch or State Procedures Transferor andAgents within Transferee arethe same sameState Cascading VAT was levied Credit Allowed onEffect of taxes even on Excise Full Amount and no Duty amount cascading effect of taxesCross set-off Set-off between No Cross-sectionalof Levy Service Tax and set-off between Central Excise CGST and SGST Duty is allowed  Destination based taxation concept – GST v/s CSTBefore GST
Manufacturer Consumption
STATE-1 STATE-2-Received the benefit of Tax
After GSTManufacturer ConsumptionSTATE-1 STATE-2-Received the benefit of TaxGST TAXESCGST SGST IGST
For Intra-State Supplies
CGST
1 Single Central Tax
EXCISE DUTY
SERVICE TAX
ADE
SURCHARGE
CESS
SGST
1 Single State TaxPURCHASE TAX
SURCHARGE &
TAX
VAT
ENTRY TAX
LUXURY TAX
For Inter-State Supplies
IGST
1 Single Integrated Tax
Taxes Collected will be shared between Centre & States CST CVD SAD What will be impact on Inventory ?Service Excise VAT Tax Duty VAT Registered Registered Registered & purchases purchasing purchases from Excise Dealer
CGST IGST SGST
Invoice issued within 12 monthsRegistered regular dealerIntended to use in a taxable supplyDocument evidencing payment of dutyCredit admissible in GST
100 % in case of possession of Invoice showing tax details 40% in case of absence of Invoice Input Tax Credits – Set-off ScenarioINPUT TAX ORDER OF UTILIZATION CREDIT  CGSTSGSTIGST • 1.    CGST
• 2.    IGST • 1.    SGST
• 2.    IGST
• 1.    IGST
• 2.    CGST
• 3.    SGST
Note : IGST will be transferred by the Centre to the State where the goods were supplied . The supplier state will transfer the credit to the Centre, of the SGST amount utilized in making the payment of IGST. GST Benefit : Tax on Value Addition OnlyCurrent Regime      GST Regime
Manufacturing Cost 1,00,000/-Excise Duty @ 12.5 % 12,500/-VAT @ 5% 5,625/-Dealer Invoice Value 1,18,125/-Cost to Dealer 1,12,500/-Margin 7,500/-Sale Price for Dealer 1,20,000/-VAT @ 5% 6,000/-
Price @ which the
product is sold to the 1,26,000/-customer
CGST @ 6%
SGST @ 6%
CGST @ 6%
SGST @ 6%
1,00,000/-
6,000/-6,000/-
1,12,000/-1,00,000/-7,500/-1,07,500/-
6,450/-6,450/-
1,20,400/-
Savings to the Customer 5,600/- Return Filing under GSTSupplier Purchaser 10th of every month15th of every month20th of every month GSTR-1
Outward Supplies
Supplier can confirm modified GSTR-1 by 17th
GSTR-1A
Draft Outward (Will be received by supplier)
GSTR-2
Inward SuppliesGSTR-3
Monthly Return Pay due tax after set-off and file GSTR-1
Outward SuppliesGSTR-2A
Draft Inward (Will be received by
Recipient)*
*Recipient can modifyGSTR-2
Inward SuppliesGSTR-3
Monthly Return Pay due tax after set-off and file
1
Seller 2 3 A Buyer Government System Generated
GSTR-4: Quarterly Return for Compounding Taxable Person GSTR-5: Return for Non-Resident Foreign Taxable Person GSTR-6: Return for Input Service DistributorGSTR-7: Return for authorities deducting tax at source [TDS]GSTR-8: Return for e-Commerce Operators & Tax Collected at Source [TCS] GSTR-9: Annual Return {For each Registration}
Reconciliation of GST Annual Return with Audited Accounts GSTR-10: Final Return {On closure of business} Consequences of Non-Compliance in GST
Late Fee & Interest
Failure to furnish return
Quarterly for Composite Scheme/ Monthly under Regular Scheme
INR 100 per day for every day subject to a maximum of INR 5000
Annual Return: INR 100 per day for every day subject to a maximum of 0.25% of Aggregate Turnover
Interest on Total Tax due – Rate yet to be notifiedCancellation of Registration
Regular Scheme : If returns are not furnished for 6 consecutive tax periods
Composite Scheme : If returns are not furnished for 3 consecutive tax periodsFines
Tax Evasion
INR 10,000 or an equal amount of tax evaded
Fine with imprisonment up to 5 years depending on amount of tax evasion with slab ranging from INR 25 Lakhs to INR 500 Lakhs Make yourself GST ReadyEDUCATION &TRAININGADVISORY & GST PREPARATION & CONSULTATION IMPLEMENTATION
SOFTWARESUPPORT GST
READY REFERENCERSBAC & ASSOCIATES
U n i q u e H o u s e P l o t N o . 3 5
1 1 / 1 A / 1 E a s t T o p s i a R o a d K o l k a t a – 7 0 0 0 4 6

Income Tax

 

CBDT Chief Laments Non-Disposal of Public Grievances and Warns AOs of Adverse Action

Sushil Chandra, the Chairman of the CBDT, has addressed a letter dated 24.04.2017 to the top brass of the Income-tax department in which he has lamented that the CBDT is one of the Government Departments which receives the maximum number of public grievances.

 

He has also lamented the fact that the grievances are not attended to by the AOs and remain pending for inordinately long periods. Presently, there are 3431 pending grievances which include a large number of overdue grievances.

 

The CBDT Chief has directed the top brass of the department to personally monitor the disposal of the grievances and warned that it will be given due importance while evaluating the annual performance of the officers.

(http://www.itatonline.org)

 

HSBC foreign accounts case: Govt. raises Rs 5,419 crore tax demand

The government has raised tax demand of Rs 5,419 crore on individuals who had undisclosed offshore accounts with HSBC of which around Rs 337 crore has been recovered. Providing an update on the action taken in the HSBC list matter, the revenue department has informed the Public Accounts Committee (PAC) of Parliament that 190 prosecution complaints have been filed against various entities. The revenue department recently submitted a status report on HSBC foreign accounts to the PAC following queries by its member and BJP MP Nishikant Dubey, who has been vocal in flagging concern about illicit fund flows.

(http://www.financialexpress.com/economy/hsbc-foreign-accounts-case-govtraises- rs-5419-crore-taxdemand/653040/)

 

Operation Clean Money 2.0: Income Tax to probe deposits of Rs 5-10 lakh now

Following a poor response to the Pradhan Mantri Garib Kalyan Yojana (PMGKY), an income declaration scheme, the Income Tax department is set to launch another drive to catch hold of tax evaders who could have deposited large sums during the demonetization drive. While the first phase of the so-called Operation Clean Money scrutinized cash deposits of over Rs.10 lakh, the second phase will examine deposits between Rs. 5 lakh and Rs. 10 lakh. A data analytics firm has already started the analysis of such cash deposits made during demonetization drive. The information will soon be sent to the Central Board of Direct Taxes (CBDT), which will decide further course of action.

(http://www.business-standard.com/arTIcle/economy-policy/operation-clean-money-2-0-i-t-to-probedeposits-of-rs-5-10-lakhnows- 117041301293_1.html)

 

Aadhaar and PAN linking option activated on IT portal.

The Income Tax Department has made it easy for taxpayers to link their PAN with Aadhaar. Just click on the link on the left pane-> Link Aadhaar. Provide PAN, Aadhaar no. and ENTER NAME EXACTLY AS GIVEN IN AADHAAR CARD (avoid spelling mistakes) and submit. After verification from UIDAI, the linking will be confirmed. In case of any minor mismatch in Aadhaar name provided, Aadhaar OTP will be required. Please ensure that the date of birth and gender in PAN and Aadhaar are exactly same. There is no need to login or be registered on E-filing website. This facility can be used by anyone to link their Aadhaar with PAN.

(https://incometaxindiaefiling.gov.in/e-Filing/Services/LinkAadhaarHome.html)

 

Service Tax

 

Clarifications on Issues related to levy of service tax on the services provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station in India

Several representations had been made seeking clarification on levy of service tax on the services provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India to the customs station in India. In this context Government has issued various notifications to provide clarifications on these issues. The clarifications in brief are as under:

 

  • Vide notification Nos. 15/2017-ST and 16/2017-ST both dated 13th April, 2017, the importer of goods as defined in the Customs Act, 1962 has been made liable for paying service tax in cases of services of transportation of goods by sea provided by a foreign shipping line to a foreign charterer with respect to goods destined for India. This change shall come into effect from 23 rd April, 2017.

 

  • Vide notification No. 16/2017-ST dated 13th April, 2017, the person liable to pay service tax has been provided an alternate mechanism for calculating and paying service tax. Swachh Bharat Cess and Krishi kalyan Cess will be paid accordingly. This option has been made available with effect from 22nd January, 2017.

 

  • Vide notification No. 14/2017-ST dated 13th April, 2017, the point of taxation of services provided by a foreign shipping line to foreign charterer with respect to goods destined for India, has been specified as the date of bill of lading of goods in the vessel at the port of export. This option will be available with effect from 22nd January, 2017. Thus, no service tax is leviable if the bill of lading is of date prior to 22nd January, 2017.

 

  • Vide notification No. 10/2017-C.E (N.T) dated 13th April, 2017, the importer of the goods has been allowed to avail CENVAT credit on the basis of the challan of payment of service tax by the said importer on the services provided by a foreign shipping line to a foreign charterer with respect to goods destined for India. This change shall come into effect from 23rd April, 2017.

(Circular No.206/4/2017-Service Tax and Notification Nos 10, 14, 15, 16 all dated 13th April, 2017)

 

Important Judgments:

Business Auxiliary Services

Where the assessee was engaged in processing disposable waste water received from factory and releasing the same through common drainage into common effluent treatment plant the same will not amount to processing of goods on behalf of client and hence demand of service tax thereon under the category of business auxiliary services is not admissible

[Odyssey Organics P. Ltd. vs. CCE (2017) 47 STR289 (Tri.-Mumbai)].

 

 

 

 

VAT   (Maharashtra)

 

Important Judgment under MVAT Act, 2002

Hiring of Trucks for transportation of goods does not amount to transfer of right to use goods

The dealer was engaged in hiring of trucks to mukadam of sugar factories for transportation of sugar from farms to the sugar factory. The contention of the department that such hiring of trucks would amount to transfer of right to use goods under Explanation (b) (iv) to Section 2(24) of the MVAT Act, 2002, was upheld by the first appellate authority. In Tribunal, the Sales tax department relied on the judgment of Tribunal in the case of M/s Aurobindo Highway Services vs. State of Maharashtra to contend that trucks are given exclusively for the use and disposal of mukadam.

 

Honorable tribunal rejected the contention of the Revenue and held that in present case there is no agreement between the dealer and the sugar factory. The revenue did not bring anything on record to establish that nobody else was authorized to use the trucks for any other purpose except for carrying sugarcane. Thus, Tribunal held that unless it is positively proved by the department that the trucks are exclusively given on hire to sugar factory, the said transaction cannot be considered as transfer of right to use goods.

Shree Enterprises vs. State of Maharashtra in Vat second appeal No. 205 of 2014 via order dated 31 st March 2017.

 

The Guidelines regarding Cross Checking of Input Tax Credit (ITC)

If there are mismatches /un-matches in the ITC claim or the claimant dealer, then following procedure shall he followed for allowance/disallowance of ITC for FY 2013-14, 2014-15 and 2015-16:

 

  • Unmatched ITC means ITC not matched due to one of the TIN not being uploaded in either Annexure J1 or Annexure J2. Whereas, mismatched ITC is due to the difference in amounts of transaction disclosed by the respective buyer and supplier in their Annexure J2 and Annexure J1, respectively.

 

  • Out of the total purchase on which ITC is claimed, ITC claimed on purchases from non-genuine dealers RC cancelled dealers and Return Non-filers shall be disallowed after due verification. For this purpose, J2 J1 utility available on Mahavikas and CDA utility provided by EIU shall be used. If CDA utility is not made available by the EIU for 2014-15 or 2015-16, then ITC verification utility shall be used for such period. From the remaining suppliers, top 10 suppliers or the suppliers covering at least 50% of the ITC claim (whichever is more) shall be considered by the assessing officer.

 

  • If there is un-matched ITC in top 10 suppliers or the suppliers covering at least 50% of the ITC (whichever is more) then such unmatched ITC can be allowed only after filing of Supplementary Annexure J-1 or J-2.

 

  • If there is mismatch in ITC from top 10 suppliers or the suppliers covering at least 50% of the ITC (whichever is more) then such ITC can be verified through the confirmation of ledgers of the suppliers, provided that such supplier encloses copy of return acknowledgements for the month of March of that F.Y or acknowledgement of Form 704 of this F.Y., duly signed & stamped by the dealer or his authorized signatory along with such ledger confirmations.
  • If ITC claimed per dealer per year is Rs 5 lakhs or more under unmatch/ mismatch category or in top 10 suppliers or 50% ITC (whichever is more) then it shall be verified through SAS report.

 

  • Notwithstanding anything contained in this circular, ledger confirmation shall not be asked if claim of ITC is Rs 5000/- or below per supplier per year.

 

  • If all of the above conditions are satisfied then officer may assume that the balance ITC has also matched, if any of the condition is not satisfied, then only matched ITC credit shall be granted.

Reference: Trade Circular 11A of 2017 dated 3 rd May, 2017 on www.mahavat.gov.in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Tax

 

Transfer Pricing Adjustment in relation to intra group services deleted in the absence of justification of Nil ALP under CUP method

Based on the facts and in the circumstances of the case, recently, the Ahmedabad Bench of Income-tax Appellate Tribunal in the case of SABIC Innovative Plastics India Pvt. Ltd. (the taxpayer) deleted a transfer pricing adjustment made by the Transfer Pricing Officer (as subsequently upheld by the Dispute Resolution Panel) concerning a payment for intra-group services made to a related party of the taxpayer. The tribunal rejected the Transfer Pricing Officer’s “nil” (zero) arm’s length price on management services under the comparable uncontrolled price method.

 

The taxpayer, engaged in manufacturing and trading advanced engineering thermoplastics and polycarbonate sheets, made a payment to a related party for intra-group management services for assessment years 2009-2010 and 2011-2012, justifying the arm’s length price on the basis of the transactional net margin method. However, the Transfer Pricing Officer rejected the taxpayer’s claimed tax treatment, and proposed to benchmark the transaction separately by applying the comparable uncontrolled price method.

 

The taxpayer had paid a mark-up of 10% on the receipt of information technology services. However, because the services were general in nature and there was no quantification of the services, the Transfer Pricing Officer added a mark-up of 3% that was contended to be the arm’s length price.

 

The tribunal deleted the transfer pricing adjustment for receipt of management services for both assessment years and upheld the 10% mark-up claimed by the taxpayer on information services, finding that the Transfer Pricing Officer did not provide any specific comparables for justification.

(SABIC Innovative Plastics India Pvt. Ltd. vs ACIT (ITA No. 1125/Ahd/2014 and IT (TP) No. 427/Ahd/16))

 

Under India-Italy tax treaty, tax is to be deducted on actual payment of royalty

Based on the facts and in the circumstances of the case, recently, the Ahmedabad Bench of the Income- tax Appellate Tribunal in the case of Saira Asia Interiors (P.) Ltd. held that under Article 13 of the India- Italy tax treaty (tax treaty), taxability of royalty is dependent on the payment by the resident of a state and receipt of the same by the resident of the other state. Therefore, unless the actual payment takes place, the taxability under Article 13 of the tax treaty does not arise. Mere fact that an Indian resident credits the amount of royalty payable to an Italian resident does not trigger taxability under Article 13.

(Saira Asia Interiors (P.) Ltd. v. ITO (2017) 79 taxmann.com 460 (Ahd))

 

Tax credit can be claimed in respect of taxes deducted in the U.S.; restricted to rates prescribed in the India-USA tax treaty

Based on the facts and in the circumstances of the case, recently, the Ahmedabad Bench of the Income- tax Appellate Tribunal in the case of Bhavin A Shah (the taxpayer) held that the taxpayer can claim Foreign Tax Credit (FTC) in respect of taxes deducted in the U.S. against dividend income on the satisfaction of the conditions specified in the FTC Article of the India-USA tax treaty (tax treaty). Furthermore, where a tax deduction is at a rate higher than the rate prescribed in the tax treaty, the taxpayer will be eligible to claim FTC restricted to the amount computed based on the rates prescribed in the tax treaty.

The CBDT has notified FTC rules which have come into effect from 1st April 2017. The tribunal’s decision is in line with these FTC rules, which provide that where foreign tax paid exceeds the tax payable as per tax treaty, such excess shall be ignored for the purpose of computing the FTC. (Bhavin A. Shah v. ACIT (ITA No. 933/Ahd/2013) – Taxsutra.com)

 

Income of a foreign shipping company is not taxable in India as place of effective management is outside India

Based on the facts and in the circumstances of the case, recently, the Rajkot Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Pearl Logistics and EX-IM Corporation held that as per Article 9 of the India Denmark tax treaty income earned by a foreign company from operations of ships in international traffic is not taxable in India as Place of Effective Management (POEM) of such foreign company is outside India. The Tribunal observed that registration certificate, residence of shareholder and passport of owner show that the foreign company is a resident of Denmark. Director of the foreign company resides in Denmark and have been operating business wholly from Denmark. Further, all the important decisions are taken from Denmark in the form of meeting and therefore, the POEM and control is in Denmark.

(Pearl Logistics and EX-IM Corporation v. ITO (2017-TII- 57-ITAT- RAJKOT-INTL) –TaxindiainternaTIonal.com)

 

International circuit for Formula One championship constitutes a fixed place PE under the India-U.K. tax treaty

Based on the facts and in the circumstances of the case, recently, the Supreme Court of India in the case of Formula One World Championship Ltd (the taxpayer) held that the international circuit constitutes fixed place of business under the India-U.K. tax treaty since the international circuit was under the control and at the disposal of the taxpayer. Motor car race was physically conducted in India and from this race income was generated in India. Therefore, the taxpayer had made their earning in India through the said circuit over which they had complete control during the period of race. Based on the service agreements, it has been observed that the entire event is taken over and controlled by the taxpayer and its affiliates.

 

The Supreme Court held that the payment received by the taxpayer was business income earned through Permanent Establishment (PE) and hence it is chargeable to tax in India. Therefore, tax needs to be deducted under Section 195 of the Income-tax Act, 1961. The Supreme Court also observed that only the portion of income which is attributable to the PE would be treated as business income and tax needs to be deducted only on such portion of income.

(Formula One World Championship Ltd v. CIT (Civil Appeal No. 3849 of 2017) – Taxsutra.com)

 

 

 

 

 

 

 

 

 

Company Law

 

Clarification regarding online generation of Challans for Offline payment cases.

In terms of Investors Education and Protection Fund (Accounting, Audit. Transfer and Refund) Rules, 2016 as notified on 05.09.2016, and as per the prerequisites of e-form IEPF- 1, the companies are required to transfer the amounts to Investor Education and Protection Fund (IEPF) through Challans generated on MCA 21 portal. Attention is also drawn to circular No. 13/ 2016 dated 05.12.2016 issued by this office, communicating that Challans which are not generated on MCA 21 portal will not be accepted after 15.12.2016.

 

However it has been noticed that there are companies, which have transferred the amount to IEPF prior to 15.12.2016, through Challans not generated on MCA-21 portal and these companies were/are unable to file IEPF-1.

 

To facilitate filing of e-form IEPF-1 by such companies, following two step processes is suggested:-

 

Step-I

Company concerned is required to submit details of the challans in prescribed format (enclosed) to IEPF Authority on email id challan.iepfa@mca.gov.in. The copy of challans and certificate for authentication of the details submitted are required to be obtained from practicing professionals’ viz. Chartered Accountants, Company Secretaries and Cost Accountants. This information will be accepted by IEPF Authority up to 20th May, 2017 only and no further relaxation shall be granted.

 

Step II

The submitted data shall be processed by the IEPF Authority and a Front Office service will be made available on IEPF website-www.iepf.gov.in from 5th June, 2017 for a period of 30 days i.e. up to 5th July, 2017 to enable the companies to submit the required data online. An automated generated number will be provided by the MCA21 system on validation of entries and using this automated generated number as SRN, companies may file e-form IEPF-1 online & upload investor details without requirement of filing additional fees.

General Circular No. 02/2017 dtd 20.04.2017

 

Amendment to Compromise, arrangements and amalgamations rules

In exercise of powers conferred by section 234 read with section 469 of the Companies Act, 2013, the Central Government, in consultation with the Reserve Bank of India, has made rules to amend the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2017.

 

These rules shall come into force from date of publication in official gazette.

 

The amended rules can be referred to in the following Link:

http://www.mca.gov.in/Ministry/pdf/CompaniesCompromises_14042017.pdf

 

Amendment to Removal of Names of Companies from the Register of Companies Rules

In exercise of the powers conferred by sub-sections (1), (2) and (4) of section 248 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government has introduced form “STK-5A” for publication of notice under clause (iii) of sub-rule (1) of Rule7.

 

These rules shall come into force on the date of their publication in the Official Gazette.

Notification No. G.S.R. 355(E) Dtd 12.04.2017

 

Appointment date for Section 234 (Merger or Amalgamation of Company with Foreign Company)

In exercise of the powers conferred by sub-section (3) of section 1 of the Companies Act, 2013 (18 of 2013), the Central Government hereby appoints the 13th day of April, 2017 as the date on which the provisions of section 234 of the said Act shall come into force.

Notification dated 13.04.2017

 

Amendment to Acceptance of Deposits Rules,

In exercise of powers as conferred by section 73 and 76 read with sub-section (1) and sub section (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government has made rules to amend the Companies (Acceptance of Deposits) Rules, 2014.

 

These rules shall come into force from their publication in official gazette. The rules may be referred in the following link:

http://www.mca.gov.in/Ministry/pdf/CompaniesAcceptanceofDeposits_12052017.pdf

SCHEDULE OF GST RATES FOR SERVICES AS APPROVED BY GST COUNCIL

 

The fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28% as listed below. The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are being communicated for general information and will be given effect to through gazette notifications which shall have force of law.

 

Sl. DESCRIPTION OF SERVICES GST RATE
No.
1. Transport of goods by rail 5%
with ITC of input
services
2. Transport of passengers by rail (other than sleeper class) 5%
with ITC of input
services
3. Services of goods transport agency (GTA) in relation to transportation of goods 5%
[other than used household goods for personal use] No ITC
4. Services of goods transport agency in relation to transportation of used household 5%
goods for personal use. No ITC
5. Transport of goods in a vessel including services provided or agreed to be provided 5%
by a person located in non-taxable territory to a person located in non-taxable with ITC of input
territory by way of transportation of goods by a vessel from a place outside India services
up to the customs station of clearance in India
6. Renting of motorcab 5%
(If fuel cost is borne by the service recipient, then 18% GST will apply) No ITC
7. Transport of passengers, by- 5%
(i) Air conditioned contract/stage carriage other than motorcab; No ITC
(ii) a radio taxi.
8. Transport of passengers by air in economy class 5%
with ITC of input
services
9. Transport  of  passengers,  with  or  without  accompanied  belongings,  by  air, 5%
embarking from or terminating in a Regional Connectivity Scheme Airport. with ITC of input
1

 

SCHEDULE OF GST RATES FOR SERVICES AS APPROVED BY GST COUNCIL

 

services
10. Supply of tour operators’ services 5%
No ITC
11. Leasing of aircrafts under Schedule II [5 (f)] by a scheduled airlines for scheduled 5%
operations with ITC of input
services
12. Selling of space for advertisement in print media 5%
With Full ITC
13. Services by way of job work in relation to printing of newspapers; 5%
With Full ITC
14. Transport of goods in containers by rail by any person other than Indian Railways 12%
With Full ITC
15. Transport of passengers by air in other than economy class 12%
With Full ITC
16. Supply of Food/drinks in restaurant  not having facility of air-conditioning or 12%
central heating at any time during the year and not having licence to serve liquor. With Full ITC
17. Renting of hotels, inns, guest houses, clubs, campsites or other commercial places 12%
meant for residential or lodging purposes having room tariff Rs.1000 and above With Full ITC
but less than Rs.2500 per room per day
18. Services provided by foreman of chit fund in relation to chit 12%
with ITC of input
services
19. Construction of a complex, building, civil structure or a part thereof, intended for 12%
sale to a buyer, wholly or partly. With Full ITC
[The value of land is included in the amount charged from the service recipient] but no refund of
overflow of ITC
20. Temporary transfer or permitting the use or enjoyment of any Intellectual Property 12%
(IP) to attract the same rate as in respect of permanent transfer of IP; with full ITC
21. Supply of Food/drinks in restaurant having licence to serve liquor 18%
With Full ITC
22. Supply of Food/drinks in restaurant  having facility of air-conditioning or central 18%
heating at any time during the year With Full ITC
2

 

SCHEDULE OF GST RATES FOR SERVICES AS APPROVED BY GST COUNCIL

 

23. Supply of Food/drinks in outdoor catering 18%
With Full ITC
24. Renting of hotels, inns, guest houses, clubs, campsites or other commercial places 18%
meant for residential or lodging purposes where room tariff of Rs 2500/ and above With Full ITC
but less than Rs 5000/- per room per day
25. Bundled  service  by  way  of  supply  of  food  or  any  other  article  of  human 18%
consumption or any drink, in a premises (including hotel, convention center, club, With Full ITC
pandal, shamiana  or  any  other  place,  specially  arranged  for  organizing  a
function) together with renting of such premises
26. Services by way of admission or access to circus, Indian classical dance including 18%
folk dance, theatrical performance, drama With Full ITC
27. Composite supply of Works contract as defined in clause 119 of section 2 of CGST 18%
Act With Full ITC
28. Services by way of admission to entertainment events or access to amusement 28%
facilities including exhibition of cinematograph films, theme parks, water parks, With Full ITC
joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting
event such as IPL and the like;
29. Services provided by a race club by way of totalisator or a licensed bookmaker in 28%
such club; With Full ITC
30. Gambling; 28%
With Full ITC
31. Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel 28%
With Full ITC
32. Accommodation in hotels including 5 star and above rated hotels, inns, guest 28%
houses, clubs, campsites or other commercial places meant for residential or With Full ITC
lodging purposes, where room rent is Rs 5000/- and above per night per room
33. Transfer of the right to use any goods for any purpose (whether or not for a Same rate of GST
specified period)  for  cash,  deferred  payment or  other valuable  consideration and
(supply of  service)  to  attract  the  same  GST rate  and compensation  cess  as compensation
cess as on supply
3

 

SCHEDULE OF GST RATES FOR SERVICES AS APPROVED BY GST COUNCIL

 

applicable on supply of similar goods which involves any transfer of title in goods of similar goods
(supply of goods)
34. Any transfer of right in goods or of undivided share in goods without the transfer Same rate of GST
of title thereof (supply of services) to attract the same GST rate and compensation and
cess as applicable on supply of similar goods which involves any transfer of title in compensation
goods (supply of goods). cess as on supply
of similar goods
35. Supply  consisting  of  transfer  of  title  in  goods  under  an  agreement  which GST and
stipulates that property in goods shall pass at a future date upon payment of full compensation
consideration  as  agreed  (supply  of  goods):  value  of  leasing  services  shall  be cess as on supply
included in the value of goods supplied. of similar goods
36. All other services not specified elsewhere 18%
With Full ITC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

Sl. Services
No.

 

  1. Services by Government or a local authority excluding the following services

 

  • services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than Government;

 

  • services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport;

 

  • transport of goods or passengers; or

 

  • any service, other than services covered under clauses (i) to (iii) above, provided to business entities.

 

  1. Services by the Reserve Bank of India

 

  1. Services by a foreign diplomatic mission located in India

 

  1. Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of—

 

  • agricultural operations  directly  related  to  production  of  any  agricultural  produce  including

cultivation, harvesting, threshing, plant     protection or testing or

 

  • supply of farm labour;

 

  • processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market;
  • renting or leasing of agro machinery or vacant land with or without a structure incidental to its use;

 

  • loading, unloading, packing, storage or warehousing of agricultural produce;

 

  • agricultural extension services;

 

  • services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce.

 

  1. Service by way of access to a road or a bridge on payment of toll charges

 

  1. Transmission or distribution of electricity by an electricity transmission or distribution utility

 

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7. Services by way of renting of residential dwelling for use as residence
8. Services by way of—
(i)  extending deposits, loans or advances in so far as the consideration is represented by way of interest
or discount (other than interest involved in credit card services);
(ii)  inter  se sale  or  purchase  of  foreign  currency  amongst  banks  or  authorised  dealers  of  foreign
exchange or amongst banks and such dealers;
9. Services by way of transportation of goods
(i)  by road except the services of—
(A) a goods transportation agency; or
(B) a courier agency;
(ii) by inland waterways;
10. Services provided to the United Nations or a specified international organization.
Exemption may be notified by way of issuing notification under section 55 of CGST/SGST Act.
11. Services  provided  by  operators  of  the  Common  Bio-medical  Waste  Treatment  Facility  to  a  clinical
establishment by way of treatment or disposal of bio-medical waste or the processes incidental thereto;
12. Services by a veterinary clinic in relation to health care of animals or birds;
13. Services by an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) by way of
charitable activities;[Charitable activities may be defined as presently in notification No 25/2012-ST.
14. Services by a specified organisation in respect of a religious pilgrimage facilitated by the Ministry of
External Affairs of the Government of India, under bilateral arrangement;
15. Services provided by
(a) an arbitral tribunal to –
(i) any person other than a business entity; or
(ii) a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state)
in the preceding financial year;
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Service Tax Exemptions to be continued in GST as decided by GST Council

 

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(b) a partnership firm of advocates or an individual as an advocate other than a senior advocate, by way of
legal services to-
(i) an advocate or partnership firm of advocates providing legal services;
(ii) any person other than a business entity; or
(iii) a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state) in
the preceding financial year; or

 

  • a senior advocate by way of legal services to-

 

  • any person other than a business entity; or

 

  • a business entity up to rupees twenty lakh (ten lakh rupees in a special category state) in the preceding

 

financial year;

  1. Services provided,-

 

  • by an educational institution to its students, faculty and staff;

 

  • to an educational institution, by way of,-

 

  • transportation of students, faculty and staff;

 

  • catering, including any mid-day meals scheme sponsored by the Government;

 

  • security or cleaning or house-keeping services performed in such educational institution;

 

(iv)services relating to admission to, or conduct of examination by, such institution; upto higher secondary.

 

Provided that nothing contained in clause (b) of this entry shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent

  1. Services provided  by  the  Indian  Institutes  of  Management,  as  per  the  guidelines  of  the  Central

 

Government,  to  their  students,  by  way  of  the  following  educational  programmes,  except  Executive

 

Development Programme, –

 

  • two year full time residential Post Graduate Programmes in Management for the Post Graduate

 

7

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

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Diploma in Management, to which admissions are made on the basis of Common Admission Test
(CAT), conducted by Indian Institute of Management;

 

  • fellow programme in Management;

 

  • five year integrated programme in Management.

 

  1. Services provided to a recognized sports body by-

 

  • an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organized by a recognized sports body;

 

  • another recognised sports body;

 

  1. Services by an artist by way of a performance in folk or classical art forms of (i) music, or (ii)dance, or

 

(iii)theatre, if the consideration charged for such performance is not more than one lakh and fifty thousand rupees:

 

Provided that the exemption shall not apply to service provided by such artist as a brand ambassador;

 

  1. Services by way of collecting or providing news by an independent journalist, Press Trust of India or United News of India;

 

  1. Services by way of giving on hire –

 

  • to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or

 

  • to a goods transport agency, a means of transportation of goods;

 

  1. Transport of passengers, with or without accompanied belongings, by –

 

  • air, embarking from or terminating in an airport located in the state of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, or Tripura or at Bagdogra located in West Bengal;

 

  • non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire; or

 

  • stage carriage other than air-conditioned stage carriage

 

  1. Services of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory And Development Authority Act, 2013 (23 of 2013)

 

8

 

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  1. Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force

 

Group Insurance Funds to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government

 

  1. Services provided by an incubatee up to a total turnover of fifty lakh rupees in a financial year subject to the following conditions, namely:-

 

(a)  the total turnover had not exceeded fifty lakh rupees during the preceding financial year; and

 

(b)  a  period  of  three  years  has  not  been  elapsed  from  the  date  of  entering  into  an  agreement  as

 

an incubatee;

  1. Service by an unincorporated body or a non- profit entity registered under any law for the time being in force, to its own members by way of reimbursement of charges or share of contribution –

 

  • as a trade union;

 

  • for the provision of carrying out any activity which is exempt from the levy of GST; or

 

  • up to an amount of five thousand rupees per month per member for sourcing of goods or services

 

from a third person for the common use of its members in a housing society or a residential complex;

  1. Services by an organiser to any person in respect of a business exhibition held outside India;

 

  1. Services by way of slaughtering of animals;

 

  1. Services received from a provider of service  located in a non- taxable territory by –

 

  • Government, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;

 

  • an entity registered under section 12AA of the Income tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or

 

  • a person located in a non-taxable territory;

Provided that the exemption shall not apply to –

 

  • online information and database access or retrieval services received by persons specified in clause (a)or clause (b); or

 

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Service Tax Exemptions to be continued in GST as decided by GST Council

 

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  • services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India received by persons specified in clause (c);

 

  1. Services of public libraries by way of lending of books, publications or any other knowledge-enhancing content or material;

 

  1. Services by  Employees’  State  Insurance  Corporation  to  persons  governed   under  the  Employees’

 

Insurance Act, 1948 (34 of 1948);

 

  1. Services by way of transfer of a going concern, as a whole or an independent part thereof;

 

  1. Services by way of public conveniences such as provision of facilities of bathroom, washrooms, lavatories, urinal or toilets;

 

  1. Services by government, local authority or governmental authority by way of any activity in relation to any function entrusted to a municipality under Article 243 W of the Constitution.

 

  1. Services received by the Reserve Bank of India, from outside India in relation to management of foreign exchange reserves;

 

  1. Services provided by a tour operator to a foreign tourist in relation to a tour conducted wholly outside

 

India.

 

  1. Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables;

 

  1. Services by way of admission to a museum, national park, wildlife sanctuary, tiger reserve or zoo;

 

  1. Services provided by Government or a local authority to a business entity with a turnover up to rupees twenty lakh (ten lakh rupees in a special category state) in the preceding financial year.

 

Explanation.- For the purposes of this entry, it is hereby clarified that the provisions of this entry shall not be applicable to (a) services at S. No. 1 (i), (ii)and (iii); and

 

  • services by way of renting of immovable property;

 

  1. Services provided by Employees Provident Fund Organisation (EPFO) to persons governed under the

 

10

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

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Employees Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952);

 

  1. Services provided by Insurance Regulatory and Development Authority of India (IRDA) to insurers under the Insurance Regulatory and Development Authority of India Act, 1999 (41 of 1999);

 

  1. Services provided by Securities and Exchange Board of India (SEBI) set up under the Securities and

 

Exchange Board of India Act, 1992 (15 of 1992) by way of protecting the interests of investors in securities and to promote the development of, and to regulate, the securities market;

 

  1. Services provided  by  National  Centre  for  Cold  Chain  Development  under  Ministry  of  Agriculture,

 

Cooperation and Farmer’s Welfare by way of cold chain knowledge dissemination;

 

  1. Services by way of transportation of goods by an aircraft from a place outside India upto the customs station of clearance in India.

 

  1. Services provided by Government or a local authority to another Government or local authority:

 

Provided that nothing contained in this entry shall apply to  services at S. No. 1 (i), (ii)and (iii) above

 

  1. Services provided by Government or a local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate.

 

  1. Services provided by Government or a local authority by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract;

 

  1. Services provided by Government or a local authority by way of- (a) registration required under any law for the time being in force; (b) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, including fire license, required under any law for the time being in force;

 

  1. Services provided by Government or a local authority by way of assignment of right to use natural resources to an individual farmer for cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products;

 

  1. Services by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution:

11

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

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this shall be continued by way of notification undersection 7(2)(b) of CGST/SGST Acts.

 

  1. Services provided by Government or a local authority by way of assignment of right to use any natural resource where such right to use was assigned by the Government or the local authority before the

1st April, 2016:

Provided that the exemption shall apply only to service tax payable on one time charge payable, in full upfront or in installments, for assignment of right to use such natural resource;

 

  1. Services provided by Government or a local authority by way of allowing a business entity to operate as a telecom service provider or use radiofrequency spectrum during the period prior to 1st April, 2016, on payment of licence fee or spectrum user charges, as the case may be;

 

  1. Services provided by Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of

 

Merchant Overtime charges (MOT).

 

  1. Services by an acquiring bank, to any person in relation to settlement of an amount upto two thousand rupees in a single transaction transacted through credit card, debit card, charge card or other payment card service.

 

Explanation. — For the purposes of this entry, “acquiring bank” means any banking company, financial institution including non-banking financial company or any other person, who makes the payment to any person who accepts such card

 

  1. Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by Indian Railways Finance Corporation to Indian Railways

 

  1. Services provided by any person for official use of a foreign diplomatic mission or consular post in India or for personal use or for the use of the family members of diplomatic agents or career consular officers posed therein. This exemption is available on reciprocal basis based on a certificate issued by MEA (Protocol Division):

 

this shall be continued by way of notification under section 55 of CGST/SGST Acts.

 

 

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  1. Taxable services, provided or to be provided, by a Technology Business Incubator (TBI) or a Science and

 

Technology Entrepreneurship Park (STEP) recognized by the National Science and Technology Entrepreneurship Development Board (NSTEDB) of the Department of Science and Technology,

 

Government of India or bio-incubators recognized by the Biotechnology Industry Research Assistance

 

Council, under Department of Biotechnology, Government of India;

 

  1. Taxable service provided by State Government Industrial Development Corporations/ Undertakings to industrial units by way of granting long term (thirty years, or more) lease of industrial plots from so much of tax leviable thereon, as is leviable on the one time upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for such lease.

 

  1. Services provided to the government by way of transport of passengers with or without accompanied belongings, by air, embarking from or terminating at a regional connectivity scheme airport, against consideration in the form of viability gap funding (VGF).

 

Provided that nothing contained in this entry shall apply on or after the expiry of a period of 1 year from the date of commencement of operations of the regional connectivity scheme airport as notified by the

Ministry of Civil Aviation

 

  1. Services provided by cord blood banks by way of preservation of stem cells or any other service in relation to such preservation;

 

  1. Services by way of training or coaching in recreational activities relating to,-

 

  • arts or culture. or

 

  • sports by charitable entities registered under section 12AA of Income tax Act, 1961;

 

  1. Any services provided by, _

 

  • the National Skill Development Corporation set up by the Government of India;

 

  • a Sector Skill Council approved by the National Skill Development Corporation;

 

  • an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation;

(iv)         a training partner approved by the National Skill Development Corporation or the Sector Skill

 

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Service Tax Exemptions to be continued in GST as decided by GST Council

 

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Council

 

in relation to

 

  • the National Skill Development Programme implemented by the National Skill Development Corporation; or

 

  • a vocational skill development course under the National Skill Certification and Monetary Reward

 

Scheme; or

 

  • any other Scheme implemented by the National Skill Development Corporation.

 

  1. Services of assessing bodies empanelled centrally by Directorate General of Training, Ministry of Skill

 

Development  and  Entrepreneurship  by  way  of  assessments  under  Skill  Development  Initiative  (SDI)

 

Scheme

 

  1. Services provided by training providers (Project implementation agencies) under Deen Dayal Upadhyaya Grameen Kaushalya Yojana under the Ministry of Rural Development by way of offering skill or vocational training courses certified by National Council For Vocational Training.

 

  1. Services by way of sponsorship of sporting events organised,-

 

  • by a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, State, zone or Country;

 

  • by Association of Indian Universities, Inter-University Sports Board, School Games Federation of India,

 

All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat;

 

  • by Central Civil Services Cultural and Sports Board;

 

  • as part of national games, by Indian Olympic Association; or

 

  • under Panchayat Yuva Kreeda Aur Khel Abhiyaan (PYKKA) Scheme;

 

  1. Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary-led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY);

 

  1. Services by way of pure labour contracts of construction, erection, commissioning, or installation of

14

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

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original works pertaining to a single residential unit otherwise than as a part of a residential complex;
  1. Services of general insurance business provided under following schemes –

 

  • Hut Insurance Scheme;

 

  • Cattle Insurance  under Swarnajaynti Gram Swarozgar Yojna (earlier  known  as  Integrated  Rural

 

Development  Programme);

 

  • Scheme for Insurance of Tribals;

 

  • Janata Personal Accident Policy and Gramin Accident Policy;

 

  • Group Personal Accident Policy for Self-Employed Women;

 

  • Agricultural Pumpset and Failed Well Insurance;

 

  • Premia collected on export credit insurance;

 

  • Weather Based Crop Insurance Scheme or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture;

 

  • Jan Arogya Bima Policy;

 

  • National Agricultural Insurance Scheme (Rashtriya Krishi Bima Yojana);

 

  • Pilot Scheme on Seed Crop Insurance;

 

  • Central Sector Scheme on Cattle Insurance;

 

  • Universal Health Insurance Scheme;

 

  • Rashtriya Swasthya Bima Yojana; or

 

  • Coconut Palm Insurance Scheme;

 

  • Pradhan Mantri Suraksha BimaYojna;

 

  • Niramaya Health Insurance Scheme implemented by Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or

 

  • Any other insurance scheme of the State Government as may be notified by Government of India on the recommendation of GSTC.

 

  1. Services of life insurance business provided under following schemes –

 

15

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

Sl. Services
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  • Janashree Bima Yojana (JBY); or

 

  • Aam Aadmi Bima Yojana (AABY);

 

  • Life micro-insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of fifty thousand rupees;

 

  • Varishtha Pension BimaYojana;

 

  • Pradhan Mantri Jeevan JyotiBimaYojana;

 

  • Pradhan Mantri Jan DhanYogana;

 

  • Pradhan Mantri Vaya Vandan Yojana; and

 

  • Any other insurance scheme of the State Government as may be notified by Government of India on the recommendation of GSTC.

 

  1. Services by way of collection of contribution under Atal Pension Yojana (APY).

 

  1. Services by way of collection of contribution under any pension scheme of the State Governments.

 

  1. Service of transportation of passengers, with or without accompanied belongings, by—

 

  • railways in a class other than—

 

  • first class; or

 

  • an air-conditioned coach;

 

  • metro, monorail or tramway;

 

  • inland waterways;

 

  • public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and

 

  • metered cabs or auto rickshaws (including E-rickshaws);

 

  1. Services by a person by way of-

 

  • conduct of any religious ceremony;

 

  • renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA of the Income-tax Act, 1961

 

(hereinafter referred to as the Income-tax Act), or a trust or an institution registered under sub clause (v) of clause (23C) of section 10 of the Income-tax Act or a body or an authority covered

16

 

Service Tax Exemptions to be continued in GST as decided by GST Council

 

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under clause (23BBA) of section 10 of the Income-tax Act:
Provided that nothing contained in (b) of this exemption shall apply to,-

 

  • renting of rooms where charges are Rs 1000/- or more per day;

 

  • renting of premises, community halls, kalyanmandapam or open area, etc where charges are Rs

 

10,000/- or more per day;

 

  • renting of shops or other spaces for business or commerce where charges are Rs 10,000/-or more per month.

 

  1. Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation less than one thousand rupees per day or equivalent;

 

  1. Services by way of transportation by rail or a vessel from one place in India to another of the following goods –

 

  • relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

 

  • defence or military equipments;

 

  • newspaper or magazines registered with the Registrar of Newspapers;

 

  • railway equipments or materials;

 

  • agricultural produce;

 

  • milk, salt and food grain including flours, pulses and rice; and

 

  • organic manure

 

  1. Services provided by a goods transport agency, by way of transport in a goods carriage of,-

 

  • agricultural produce;

 

  • goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees;

 

  • goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty;

 

  • milk, salt and food grain including flour, pulses and rice;

 

17

 

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  • organic manure;

 

  • newspaper or magazines registered with the Registrar of Newspapers;

 

  • relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or

 

  • defence or military equipment’s;

 

  1. Services by the following persons in respective capacities –

 

  • business facilitator or a business correspondent to a banking company with respect to accounts in its rural area branch;

 

  • any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g); or

 

  • business facilitator or a business correspondent to an insurance company in a rural area;

 

  1. Carrying out an intermediate production process as job work in relation to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce;

 

  1. Services by way of loading, unloading, packing, storage or warehousing of rice;

 

  1. Services by way of right to admission to, –

 

  • circus, dance, or theatrical performance including drama or ballet;
  • award function, concert, pageant, musical performance or any sporting event other than a recognized sporting event;

 

  • recognised sporting event;

 

where the consideration for admission is not more than Rs 250 per person in (i), (ii) and (iii) above.

  1. Services provided by Government or a local authority where the gross amount charged for such services does not exceed Rs.5000/.

 

Provided that nothing contained in this entry shall apply to services S. No. 1 (i), (ii)and (iii) above: Provided further that in case where continuous supply of service, as defined in sub-section (33) of section2 of the CGST Act, 2017, is provided by the Government or a local authority, the exemption shall apply only where the gross amount charged for such service does not exceed Rs. 5000/- in a financial

 

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year; [This may be continued by way of an omnibus threshold exemption from payment of GST under
section 9 (4) of CGST/SGST Act in respect of supplies upto Rs 10,000/-].

 

  1. (i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics;

 

  • Services provided by way of transportation of a patient in an ambulance, other than those specified in

 

  • above;

 

  1. New Exemption:

Services provided by the Goods and Services Tax Network (GSTN) to the Central Government or State

Governments/Union Territories for implementation of Goods and Services Tax (GST)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

GST Compensation Cess Rates for different supplies

 

[As per discussions in the GST Council Meeting held on 18th May, 2017]

 

 

The fitment of rates of goods were discussed today during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the rates of GST Compensation Cess to be levied on certain goods. The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes.

 

 

 

S. Description of supply Tariff item, Rate for GST
No. heading, sub- Compensation
heading,   Chapter, Cess
of goods or service,
as the case may be
(1) (2) (3) (4)
1. Pan Masala 2106 90 20 60%
Aerated waters, containing added sugar or other 2202 10
sweetening matter or flavoured
2. Aerated waters 2202 10 10 12%
3. Lemonade 2202 10 20 12%
4. Others 2202 10 90 12%
Tobacco and Tobacco Products 24
5. Unmanufactured tobacco (without lime tube) – 2401 71%
bearing a brand name
6. Unmanufactured  tobacco  (with  lime  tube)  – 2401 65%
bearing a brand name
7. Tobacco refuse, bearing a brand name 2401 30 00 61%
8. Chewing tobacco (without lime tube) 2403 99 10 160%
9. Chewing tobacco (with lime tube) 2403 99 10 142%
10. Filter khaini 2403 99 10 160%
11. Jarda scented tobacco 2403 99 30 160%
12. Pan masala containing tobacco ‘Gutkha’ 2403 99 90 204%
Cigarettes
13. Non- filter
14. Not exceeding 65 mm 2402 20 10 5% + Rs.1591 per
thousand
15. Exceeding 65 mm but not 70 mm 2402 20 20 5% + Rs.2876 per
thousand
16. Filter
17. Not exceeding 65 mm 2402 20 30 5% + Rs.1591 per
thousand
18. Exceeding 65 mm but not 70 mm 2402 20 40 5% + Rs.2126 per
thousand
1

 

GST Compensation Cess Rates for different supplies

 

[As per discussions in the GST Council Meeting held on 18th May, 2017]

 

 

S. Description of supply Tariff item, Rate for GST
No. heading, sub- Compensation
heading, Chapter, Cess
of goods or  service,
as the case may be
(1) (2) (3) (4)
19. Exceeding 70 mm but not 75 mm 2402 20 50 5% + Rs.2876 per
thousand
20. Others 2402 20 90 5% + Rs.4170 per
thousand
Other tobacco products
21. Cigar and cheroots 2402 10 10 21% or Rs. 4170
per thousand,
whichever is higher
22. Cigarillos 2402 10 20 21% or Rs. 4170
per thousand,
whichever is higher
23. Cigarettes of tobacco substitutes 2402 90 10 Rs.4006 per
thousand
24. Cigarillos of tobacco substitutes 2402 90 20 12.5% or Rs. 4,006
per thousand
whichever is higher
25. Other 2402 90 90 12.5% or Rs. 4,006
per thousand
whichever is higher
26. ‘Hookah’  or ‘gudaku’ tobacco tobacco bearing a 2403 11 00 72%
brand name
27. Tobacco used for smoking ‘hookah’or ‘chilam’ 2403 11 00 17%
commonly known as ‘hookah’ tobacco or ‘gudaku’
28. Other smoking tobacco not bearing a brand name. 2403 11 90 11%
29. Smoking mixtures for pipes and cigarettes 2403 19 10 290%
30. Other smoking tobacco bearing a brand name 2403 19 90 49%
31. Other smoking tobacco not bearing a brand name 2403 19 90 57%
32. “Homogenised”   or   “reconstituted” tobacco, 2403 91 00 72%
bearing a brand name
33. Preparations containing chewing tobacco 2403 99 20 72%
34. Snuff 2403 99 40 72%
35. Preparations containing snuff 2403 99 50 72%
36. Tobacco extracts and essence bearing a brand 2403 99 60 72%
name
2

 

GST Compensation Cess Rates for different supplies

 

[As per discussions in the GST Council Meeting held on 18th May, 2017]

 

 

S. Description of supply Tariff item, Rate for GST
No. heading, sub- Compensation
heading,   Chapter, Cess
of goods or service,
as the case may be
(1) (2) (3) (4)
37. Tobacco extracts and essence not bearing a brand 2403 99 60 65%
name
38. Cut tobacco 2403 99 70 20%
39. All  goods,  other  than  pan  masala  containing 2403 99 90 96%
tobacco ‘gutkha’, bearing a brand name
40. All  goods,  other  than  pan  masala  containing 2403 99 90 89%
tobacco ‘gutkha’, not bearing a brand name
Others
41. Coal; briquettes, ovoids and similar solid fuels 2701 Rs.400 per tonne
manufactured from coal.
42. Lignite, whether or not agglomerated, excluding 2702 Rs.400 per tonne
jet
43. Peat  (including  peat  litter),  whether  or  not 2703 Rs.400 per tonne
agglomerated
Motor Vehicles
44. Motor vehicles (10<persons <13) 8702 15%
45. Small Cars (length < 4 m ; Petrol<1200 cc ) 8703 1%
46. Small Cars (length < 4 m ; Diesel < 1500 cc) 8703 3%
47. Mid Segment Cars (engine < 1500 cc) 8703 15%
48. Large Cars (engine > 1500 cc) 8703 15%
49. Sports Utility Vehicles (length > 4m ; engine > 8703 15%
1500 cc; ground clearance > 170 mm)
50. Mid Segment Hybrid Cars (engine < 1500 cc) 8703 15%
51. Hybrid motor vehicles > 1500 cc 8703 15%
52. Hydrogen vehicles based on fuel cell tech > 4m 8703 15%
53. Motorcycles (engine > 350 cc) 8711 3%
54. Aircrafts for personal use. 8802 3%
55. Yacht and other vessels for pleasure or sports 8903 3%

 

 

 

*****

 

 

 

 

 

3

CBEC unveils 8 GST Rules and revised FAQs on GST

 

In order to engage with the stakeholders and invite comments from the public at large, the Centre has issued 8 Goods and Services Tax (“GST”) Rules viz. Composition Rules, Valuation Rules, Transition Rules, Input Tax Credit (“ITC”) Rules, Revised Invoice Rules, Revised Payment Rules, Revised Refund Rules and Revised Registration Rules, on April 1, 2017.

 

Further, the CBEC has also released the second edition of FAQs on GST on the basis of CGST, SGST, IGST, UTGST and Compensation Cess Bills. Earlier the FAQs prepared by the NACEN were a compilation based on Model GST Law which was put in public domain on June 14, 2016 and covered 24 topics with over 500 questions. The Revised FAQs on GST dated March 31, 2017 comprises of 223 pages. Indeed, these FAQs will be an effective tool in disseminating knowledge on GST to Tax officials, Trade and Public.

 

The GST Rules and Revised FAQs are attached:

 

 

The CBEC has invited comments on the GST Rules by April 10, 2017. The Government aims to implement the GST from July 1, 2017, and to that effect the final nod to the new 4 sets of Draft Rules as well as fixation of GST rates for goods and services will be done in the next meeting of the GST Council scheduled on 18-19 May, 2017. It is indeed the best time for the Trade and Industry to gear up and present their likely issues so that necessary changes are incorporated by the Government.

 

Members are requested to write back to us for any inputs/ suggestions on Draft Rules for our compilation and submission to Government.

Contents

 

                                                                  

  • Income Tax

 

 

  • Service Tax

 

 

  • VAT (Maharashtra)

 

 

  • FEMA

 

  • International Law

                                                                  

 

6   Company Law

 

 

 

 

Income Tax

 

Mandatory quoting of Aadhaar for PAN applications & filing Return of Income

Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form, for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017.

 

It is clarified that such mandatory quoting of Aadhaar or Enrolment ID shall apply only to a person who is eligible to obtain Aadhaar number.

 

As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident individual is entitled to obtain Aadhaar. Resident as per the said Act means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016.

(https://incometaxindiaefiling.gov.in/eFiling/Portal/StaTIcPDF_News/Press-Release- Aadhaar-5-04-2017.pdf)

 

CBDT accomplishes the Direct Taxes Collection Target for F.Y. 2016-17

In a recent Press Release dated 4th April, CBDT states that the provisional figures for revenue collections up to March, 2017 show a gross Direct Tax collection of Rs. 10.09 lakh crore. The net collection after issue of refunds stands at Rs. 8.47 lakh crore which is 14.2% higher than the net collection for the corresponding period last year.

 

With this the CBDT has accomplished 100% of the direct tax target for Financial Year 2016-17. Refunds amounting to Rs. 1.62 lakh crore have been issued during April 2016-March 2017, which is 32.6% higher than the refunds issued during the same period for F.Y. 2015-16. This has substantially reduced the grievances of tax payers.

 

While the gross collection under Corporate Income Tax (CIT) grew at 13.1% during the year, the growth under Personal Income Tax (PIT) including Securities Transaction Tax (STT) is 18.4%. However, after adjusting for refunds, the net growth in CIT is 6.7% while that in PIT is 21.0%.

(https://incometaxindiaefiling.gov.in/eFiling/Portal/StaTIcPDF_News/Press-release- DT-collecTIons-16- 17- 04042017.pdf)

 

Gift from brother who is non-resident liable to be taxed, if the source of income of the donor is not proved

Kerala High Court in the case of Sunil Thomas v/s. Income Tax Officer & Assistant Commissioner of Appeals has held that Income Tax Department is right in law to enquire and insist the assessee to prove the source of the donor, when the assessee discharges his primary burden that the subject amount has received by way of gift from his brother (relative) through banking channel. It has held that it is not the onus and burden of proof on the department to probe into and establish by itself the source of the donor placed abroad when the assessee establishes the fact that he received the amount by way of gift from his brother (exempted under Section 56(2) through banking channel. The amount of gift be assessed as income of assesse, as he failed to prove the genuineness of the transaction & the capacity of the donor, his brother.

(Sunil Thomas v/s. Income Tax Officer & Assistant Commissioner of Appeals)

 

No credit could be given for HUF, for the simple reason that an HUF cannot wear any jewellery by itself.

In the case of Shri M. Sunil Kumar, C/o. M/s. Mangalchand Phoolchand and Co. Versus Deputy Commissioner of Income Tax, Bengaluru ITAT has held that:

 

With regard to the benefit claimed on the basis of Circular No. 1916 dated 11.05.1994 providing for non-seizure of certain minimum amount of gold jewellery, etc. as per the circular what could be given credit for a male member is only 100 gms. No credit could be given for HUF, for the simple reason that an HUF cannot wear any jewellery by itself. Circular does not mention anything about holding of silver or diamonds.

 

Therefore, we are of the opinion that the maximum relief that could be given to the assessee is only on the value of gold jewellery. However, the circular allows only 100 gms per male member, 250 gms for unmarried lady and 500 gms for married lady in the family. In our opinion, the maximum relief that could be given to the assessee in addition to what was given by the AO was 950 gms, viz., 100 gms for assessee, 100 gms for assessee’s son, 250 gms for assessee’s daughter and 500 gms for assessee’s daughter in law.

 

Income Tax Department’s searches resulted in admission of undisclosed income of Rs 45,622 crore.

Searches conducted on various persons & groups totaling to 2534, during the period starting from FY 2013-14 Till January 2017, has resulted into admission of undisclosed income of about Rs. 45,622 crore and seizure of undisclosed assets worth about Rs. 3,625 crore.

 

The Government has taken various effective measures to tackle breach of law and tax evasion. These steps include focused enforcement actions and putting in place appropriate legislative & administrative frame works & processes.

 

Further, disclosure of information in respect of specific assessee is prohibited except as provided under section 138 of the Act. The information was provided by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.

 

Filing tax returns to be less painful as government simplifies ITR forms

A crisp income tax form for salaried individuals will be introduced from April 1, doing away with some columns to simplify the filing of returns. Individuals with salary and interest income will have to fill fewer columns as some of these for claiming income deductions have been clubbed in ITR1 form called ‘Sahaj’. In the form for Assessment Year 2017-18, deductions claimed under different sections of Chapter VIA have been removed and only mostly used ones have been included.

(http://economicTImes.indiaTImes.com/wealth/tax/filing-tax- returns-to- be-less- painful-as-governmentsimplifies- itr-forms/article show/57893454.cms)

 

Major steps taken in Budget 2017 to discourage Cash transactions & curb Black Money

Various legislative steps have been taken by the Finance Act, 2017 to curb black money by discouraging cash transaction and by promoting digital economy.

 

These prominently include placing restriction on cash transaction by introduction of new sections 269ST & 271DA to the Income-tax Act. It has been provided that no person (other than those specified therein) shall receive an amount of two lakh rupees or more,

 

(a) in aggregate from a person in a day;

(b) in respect of a single transaction; or

(c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.

 

Any contravention to the said provision shall attract penalty of a sum equal to the amount of such receipt. However, the said restriction is not applicable to any receipt by Government, banking company, post office savings bank or co-operative bank.

 

It has also been decided that the restriction on cash transaction shall not apply to withdrawal of cash from a bank, cooperative bank or a post office savings bank. Necessary notification in this regard is being issued.

 

It has also been provided that any capital expenditure in cash exceeding Rs. 10,000/- shall not be eligible for claiming depreciation allowance or investment-linked deduction.

 

Similarly, the limit on revenue expenditure in cash has been reduced from Rs.20,000 to Rs.10,000. In order to promote digital payments in case of small unorganized businesses, the rate of presumptive taxation has been reduced from 8% to 6% for the amount of turnover realized through cheque/digital mode.

 

Restriction on receipt of cash donation up to Rs. 2000 has been provided on political parties for availing exemption from Income-tax. Further, it has also mandated that any donation in cash exceeding Rs.2000 to a charitable institution shall not be allowed as a deduction under the Income-tax Act.

(CBDT Press Release dated 05th April, 2017)

 

 

 

Service Tax

 

Applicability of service tax on the services by way of transportation of goods by a vessel from a place outside India to the customs station in India w.r.t. goods intended for transshipment to any country outside

India In terms of the applicable Rule 10 of the Place of Provision of Services Rules, 2012, the place of provision of services of transportation of goods by air/sea, other than by mail or courier, is the destination of the goods.

 

Thus, with respect to goods imported into a customs station in India intended for transshipment to any country outside India, the destination of goods is not a place in taxable territory in India but a country other than India if the same is mentioned in the import manifest or the import report as the case may be and the goods are transshipped in accordance with the provisions of the Customs Act, 1962 and rules made there under. Hence, with respect to such goods, services by way of transportation of goods by a vessel from a place outside India to the customs station in India are not taxable in India as the destination of such goods is a country other than India.

(Circular No.204/2/2017-Service Tax dated February 16, 2017)

 

Important Judgments:

 

Business Auxiliary Services

  • Cash discounts received by Del credere Agent on account of making early payments to principal even before receipt of payment from purchaser would not be considered as part of the commission received by such agents so as to be liable for Service tax under Business Auxiliary Services.

(Khanna Plomers vs. CCE (2017) 47 STR 82 Tri.-All.))

 

  • Where the assessee was engaged in processing disposable waste water received from factory and releasing the same through common drainage into common effluent treatment plant the same will not amount to processing of goods on behalf of client and hence demand of service tax thereon under the category of business auxiliary services is not admissible.

(Odyssey Organics P. Ltd. vs. CCE (2017) 47 STR 289 (Tri.-Mumbai))

 

Valuation

On an issue whether the value of materials e.g., nuts and bolts etc. sold by the Service provider to Service Receiver during the course of providing repairs and maintenance services would be includible in the value of taxable services where the assessee was issuing separate invoices to service receiver one indicating value of goods sold on which VAT was paid and other indicating value of services, the Tribunal held that since there was a documentary proof as required under Notification No. 12/2003 the benefit of said notification was available to the assessee and hence value of materials cannot be included in the value of services.

(CST vs. Raj Engineering (2017) 47 STR 286 (Tri.- Del.))

 

VAT   (Maharashtra)

 

Facility to view draft return before submitting the returns under the MVAT Act and the CST Act

  • SAP based filing of VAT and CST returns:

The Trade Circular No 7 T of 2016 Dated 25th February 2016 provided for the methodology of filing of returns for the periods starting from Apri1 2016.

 

  • It had been explained that :
  1. a) Most part of the return shall be automatically prepared from the annexures of sales and purchases
  2. b) The dealers would be able to see their draft return before uploading the same.
  3. c) The ITC claimed by the dealers would be verified by the system and the non-eligible amount of lTC would be recovered from the dealer in the subsequent return to be filed and

 

  1. d) The dealer would be lead to the payment gateway once he files his return.

 

  • The new system of filing of returns for the periods from April 2016 began from 29 August 2016 with the implementation of part ‘a’ mentioned above. Now, the facility of viewing the draft return as mentioned in ‘b’ above is being made available for the returns to be filed for the periods from April 2016.The part ‘c’ and part ‘d’ shall be implemented with the prior intimation to the Trade.

 

  • For further details on the system of Draft returns, visit www.mahavat.gov.in

Reference: Trade Circular 8T of 2017 dated March 16, 2017 on www.mahavat.gov.in

 

Exemption from payment of late fee u/s 20 (6) of the MVAT Act, 2002.

  • The Trade Associations and the tax consultants have represented that due to technical difficulties many dealers:

 

  1. a) Could not upload monthly returns for the periods April 2016 to February 2017, on or before 31 March, 2017

 

  1. b) Could not upload the quarterly return for the Quarters April 2016 to June 2016 and July 2016 to September 2016, on or before 31 March, 2017.

 

  • In view of the same, it is administratively decided to allow the dealers to upload the returns as under:

 

  1. a) Monthly returns for the periods April 2016 to February 2017 may be filed up to l0th April 2017.

 

  1. b) Returns for the Quarters April 2016 to June 2016 and for July 2016 to September 2016 may be filed up to l0th April 2017. Return for the month of March 2017 and the returns for the Quarters of 1st October 2016 to 31st December 2016 and 1st January, 2017 to 31” March, 2017 may be filed by the dates mentioned below:

 

Period Start Date Last Date
Month-March 2017 01/04/2017 30/04/2017
Quarter- Oct 2016 to Dec 2016 01/04/2017 21/04/2017
Quarter- Jan 2017 to March 2017 11/04/2017 10/05/2017

 

The whole of the late fee payable by any dealer, who files return for the period of any month or quarter for 2016- 17 shall stand exempted, if such returns are filed on or before the revised dates mentioned above.

Reference: Trade Circular 9T of 2017 dated April 01, 2017 on www.mahavat.gov.in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FEMA

 

Risk Management and Inter-bank Dealings: Operational flexibility for Indian subsidiaries of Nonresident Companies

With a view to providing operational flexibility to multinational entities and their Indian subsidiaries exposed to currency risk arising out of current account transactions emanating in India, the existing hedging guidelines as provided under Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 have been amended with the following terms and conditions:

 

The transactions under this facility will be covered under a tri-partite agreement involving the Indian subsidiary, its non-resident parent / treasury and the AD bank. This agreement will include the exact relationship of the Indian subsidiary or entity with its overseas related entity, relative roles and responsibilities of the parties and the procedure for the transactions, including settlement. The ISDA agreement between the AD bank and the nonresident entity will be distinct from this agreement.

 

The non-resident entity should be incorporated in a country that is member of the Financial Action Task Force (FATF) or member of a FATF-Style Regional body.

 

The AD Bank may obtain KYC/ AML certification on the lines of the format in Annex XVIII of the Master Direction on Risk Management and Inter Bank Dealings, as amended from Time to Time.

 

The non-resident entity may approach an AD Cat-I bank directly which handles the foreign exchange transactions of its subsidiary for booking derivative contracts to hedge the currency risk of and on the latter’s behalf.

 

The non-resident entity may contract any product either under the contracted route or on past performance basis, which the Indian subsidiary is eligible to use.

 

The Indian subsidiary shall be responsible for compliance with the rules, regulations and directions issued under FEMA 1999 and any other laws/rules/regulations applicable to these transactions in India.

 

The profit/ loss of the hedge transactions shall be settled in the bank account and books of accounts of the Indian subsidiary. The AD bank shall obtain from the Indian subsidiary an annual certificate by its Statutory Auditors to this effect.

 

The concerned AD Bank shall be responsible for monitoring all hedge transactions (OTC as well as exchange traded) booked by the non-resident entity and ensuring that the Indian subsidiary has the necessary underlying exposure for the hedge transactions.

 

AD banks shall report hedge contracts booked under this facility by the non-resident related entity to CCIL’s trade repository with a special identification tag.

(RBI/2016-17/254 A.P. (DIR Series) Circular No. 41 dated March 21, 2017)

 

International Tax

 

Liaison office of overseas group entity constitutes fixed place PE and Indian subsidiary constitutes agency PE under the India-USA tax treaty

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of GE Energy Parts Inc. (the taxpayer) held that the Liaison Office (LO) of overseas group entity of the taxpayer constitutes fixed place Permanent Establishment (PE) in India under the India-USA tax treaty since activities carried on by GE India from LO premises were substantial and core, and not merely of preparatory or auxiliary character. Though, LO’s premises was taken on lease the same was constantly used by expatriates who were working in India for taxpayer’s overseas group entity. The said premise was also occupied by the employees of the other group company of the taxpayer who were working under the direct control and supervision of expatriates.

 

The Tribunal observed that the expatriates of overseas group entity and employees of Group Company were appointed to act as agent of multiple GE overseas enterprises. Expatriates and employees of group were acted as agents of dependent status. GE India had authority to conclude contracts on behalf of GE overseas, which leads to the conclusion that it has agency PE in India.

 

In view of this decision, the foreign entities carrying on business in India may regularly assess their possible PE exposure/risk.

(GE Energy Parts Inc. v. ADIT (ITA No. 671/Del/2011) – Taxsutra.com)

 

Sales to two customers which constitutes more than 20 per cent of total sales of the taxpayer shall constitute ’dominant influence’; AE relationship upheld

Based on the facts and in the circumstances of the case, recently, the Chennai Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Hospira Healthcare India Private Limited (the taxpayer) held that as per Section 92A(2)(I) of the Income-tax Act, 1961 (the Act) influence implies dominant influence where “a person who purchased more than 1/5th of the total sales of the taxpayer would have a distinctly dominant influence on the pricing and can exercise a de facto control”.

 

This ruling pronounced by the Tribunal on interpretation of Section 92A(2)(I) clarifies that the relevant section creates a de facto control, which implies that conditions of Section 92A(2)(I) are satisfied though there is no explicit influence by one enterprise on the control, management and capital of the other enterprise.

(Hospira Healthcare India Private Limited V. DCIT (ITA No. 821/Mad/2016 – AY 2011-12)

 

Payment for advertising and publicity, with or without the use of marks, identification or logo of non-resident entity is not taxable as royalty or FTS under the Income-tax Act

Based on the facts and in the circumstances of the case, recently, the Delhi Bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Reebok India Company (the taxpayer) held that the payment for advertising and publicity during ICC events, with or without the use of marks, identification or logo of ICC, are not taxable as royalty under Section 9(1)(vi) of the Income-tax Act, 1961 (the Act) since ICC has not imparted any information concerning technical, industrial, commercial or scientific knowledge, etc. to the taxpayer. The consideration paid will be considered as royalty only if it is paid for the use of any patent, invention, model, design, etc., or any services in connection with these.

 

The Tribunal held that the payment for ‘right fee’ cannot be treated as Fees for Technical Services under Section 9(1)(vi) of the Act since the non-resident entity is not rendering any managerial, technical or consultancy services, but charging ‘rights fee’ for assigning certain rights as per the agreement.

(Reebok India Company v. DCIT (ITA No. 954/Del/2016) – Taxsutra.com)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company Law

 

Appointment of Special Courts:

In exercise of the powers conferred by sub-section (1) of section 435 of the Companies Act, 2013 (18 of 2013), the Central Government, with the concurrence of the Chief Justice of the High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh hereby designates Courts mentioned in the notification as Special Courts for the purposes of providing speedy trial of offences punishable with Imprisonment of two years or more under the said Act.

http://www.mca.gov.in/Ministry/pdf/Specialcourt_25032017.pdf

 

Additional to requirement in Auditor’s report:

In exercise of powers conferred by section 143 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Audit and Auditors) Rules, 2014,

 

These rules may be called the Companies (Audit and Auditors) Amendment Rules, 2017.

 

They shall come into force on the date of their publication in the Official Gazette.

In the Companies (Audit and Auditors) Rules, 2014, in rule 11, after clause ©, the following clause shall be inserted, namely:—

 

“(d) whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.

http://www.mca.gov.in/Ministry/pdf/AmendmenTInScheduleIII_Notification31032017.pdf

 

Introduction of Updated form for Registration of Charge:

In exercise of powers conferred by sub-section (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Registration of Charges) Rules, 2014, namely:-

 

These rules may be called the Companies (Registration of Charges) Amendment Rules, 2017

 

They shall come into force from the date of their publication in the Official Gazette.

http://www.mca.gov.in/Ministry/pdf/companiesRegistrationofChargesAmendmentRules_08042017.pdf

 

Change in limit for transactions with related party:

In exercise of the powers conferred under sections 173, 175, 177, 178, 179, 184, 185, 186, 187, 188, 189 and section 191 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Meetings of Board and its Powers) Rules, 2014, namely:—

These rules may be called the Companies (Meetings of Board and its Powers) Amendment Rules, 2017.

 

They shall come into force on the date of their publication in the Official Gazette.

 

In the Companies (Meetings of Board and its Powers) Rules, 2014, in rule 15, in sub-rule (3), in clause (a)—

 

(a) in item (I), item (ii), item (iii) and item (iv), for the words “exceeding ten per cent.” wherever they occur, the words “amounting to ten per cent. or more” shall be substituted; and

 

(b) in item (iii), for the words “ten per cent. of turnover” the words “ten per cent. or more of turnover” shall be substituted.

http://www.mca.gov.in/Ministry/pdf/CompaniesMeeTIngsofBoard_31032017.pdf

 

Amendment to IndAS (Ind AS 102, Share based Payment and Ind AS 7 Statement of Cash Flows)

In exercise of the powers conferred by section 133 read with section 469 of the Companies Act, 2013 (18 of 2013) and sub-section (1) of section 210A of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with the National Advisory Committee on Accounting Standards, hereby makes rules further to amend the Companies (Indian Accounting Standards) Rules, 2015.

These rules may be called the Companies (Indian Accounting Standards) (Amendment) Rules, 2017.

 

They shall come into force on the 1st day of April, 2017. The amendments may be referred in following link

http://www.mca.gov.in/Ministry/pdf/CompaniesIndianAccounTIngStandards_21032017.pdf

 

Disclosure relating to Specified Bank Notes held and transacted:

In exercise of the powers conferred by sub-section (1) of section 467 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes further amendments to Schedule III of the said Act with effect from the date of publication of this notification in the Official Gazette.

The requirement can be referred in following link.

http://www.mca.gov.in/Ministry/pdf/ScannedCompaniesAuditandAuditorsRules_31032017.pdf

Dear Friends,

The Madras Paper Merchants’ Association is grateful to The President,
office bearers and members of F,ederationof PaperTraders’ Associations
of India for giving us the opportunity to host the 56th AGM and Conclave
of FPTAat Chennai.

Itinerary:

Dates: Saturday 12th August 2017, Sunday 13th August 2017
and Monday 14th August 2017
Venue: Hotel ITCGrand Chola,Anna Salai,Guindy, Chennai 600032

Checkin timing:

For Members of the Advisory Board: Friday, 11th August 2017 from 12
noon onwards

For FPTAManaging Committee members: Saturday,12th August
2017 from 7.00 a.m. onwards

For other Delegates, Observers, Life and Patron Members: Saturday, 12th
August 2017 from 11.00 a.m. onwards.

Registration fee for various categories:

Delegates: Rs. 4,600.00

Observers: Rs.13,800.00

Life and Patron Members: Rs. 9,200.00

Note: The above mentioned Registration fees are inclusive of Service
taxes Prevailing as on date.
The Ratesmay vary due to Implementation of GST.Hence,Any such
difference will be communicated and collected at the time of delegate
registration.

Last Date for receipt of delegate list: Friday, 30th June 2017

 

Respected Members,
With reference to the 3rd Managing Committee Meeting to be hosted by Kanpur Paper Merchants Association at Kanpur on 30th April 2017.
As informed by the host Association, that due to unavoidable circumstances the venue has been changed as mentioned below.
The Landmark Towers
10, The Mall
Kanpur
Tel – (0512) 2305305, 2303945
Inconvenience cause is highly regretted.
Regards
For Federation of Paper Traders’ Associations of India
Hiren Karia
Hon. Secretary​

CBEC unveils 8 GST Rules and revised FAQs on GST

 

In order to engage with the stakeholders and invite comments from the public at large, the Centre has issued 8 Goods and Services Tax (“GST”) Rules viz. Composition Rules, Valuation Rules, Transition Rules, Input Tax Credit (“ITC”) Rules, Revised Invoice Rules, Revised Payment Rules, Revised Refund Rules and Revised Registration Rules, on April 1, 2017.

 

Further, the CBEC has also released the second edition of FAQs on GST on the basis of CGST, SGST, IGST, UTGST and Compensation Cess Bills. Earlier the FAQs prepared by the NACEN were a compilation based on Model GST Law which was put in public domain on June 14, 2016 and covered 24 topics with over 500 questions. The Revised FAQs on GST dated March 31, 2017 comprises of 223 pages. Indeed, these FAQs will be an effective tool in disseminating knowledge on GST to Tax officials, Trade and Public.

 

The GST Rules and Revised FAQs are attached:

 

  • Composition Rules
  • Valuation Rules
  • Transition Rules
  • ITC Rules
  • Revised Invoice Rules
  • Revised Payment Rules
  • Revised Refund Rules
  • Revised Registration Rules
  • FAQs on GST – 2ndEdition dated March 31, 2017

 

The CBEC has invited comments on the GST Rules by April 10, 2017. The Government aims to implement the GST from July 1, 2017, and to that effect the final nod to the new 4 sets of Draft Rules as well as fixation of GST rates for goods and services will be done in the next meeting of the GST Council scheduled on 18-19 May, 2017. It is indeed the best time for the Trade and Industry to gear up and present their likely issues so that necessary changes are incorporated by the Government.

 

Members are requested to write back to us for any inputs/ suggestions on Draft Rules for our compilation and submission to Government.

FAQ on Cash Receipt of Rs.2 Lakh or More w.e.f 01.04.2017 (Section 269ST)

Sr. no. Questions Answers
1) From which date this section is applicable? This section applies from 01/04/2017 (F.Y.2017- 18 onwards)

 

2) What are the provisions of Section 269ST? Finance Bill 2017 proposed to insert section 269ST in the Income Tax Act to provide that no person shall receive an amount of Two lakh rupees or more,—

(a) in aggregate from a person in a day;

(b) in respect of a single transaction; or

(c) in respect of transactions relating to one event or occasion from a person, other-wise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account.

3) EXAMPLES OF TRANSACTIONS COVERED IN (a), (b) & (c ) above

 

(a) in aggregate from a person in a day E.g. if a person receives Rs.2.25 lakhs in cash for 2 different bills of Rs.1 lakh and 1.25 lakh, then also penalty is levied

 

(b) in respect of single transaction E.g. if there is single bill of Rs.3.10 Lakh and cash is received on different days of Rs.1.6 lakh and Rs.1.5 lakh, then also penalty is levied.

 

(c) in respect of transactions relating to one event or occasion from a person E.g. if marriage is one occasion and a person receives amount of Rs.3,00,000/-. Thus penalty is levied of 100% of amount received.

 

(d) withdrawal of amount from own bank account E.g. if a person withdraws in a day amount of Rs.2 lakhs or above, then penalty is levied.

 

4) To whom does Section 269 ST applies? To any person receiving cash above Rs.2 lakh.

 

5) For which transactions is Section 269ST not applicable? Restriction on cash receipt of Rs.2 Lakh or more w.e.f 01.04.2017 shall not apply to

·     Government, any banking company, post office savings bank or co-operative bank.

·     Transactions of the nature referred to in section 269SS;

·     Such other persons or class of persons or receipts, as may be specified by the Central Government by notification in the Official Gazette.

6) Whether penalty is applicable for regular receipts only? Any type of amount of Rs.2 Lakh or above received in cash whether capital or revenue in nature.

 

7) Whether exempt income is covered under Section 269ST? Both taxable and exempt incomes are covered in Section 269ST.

 

8) If the amount is received for personal purpose, whether 269ST is applicable? Irrespective of purpose of accepting amount i.e., whether business purpose or personal purpose or as a trustee, custodian etc. section 269ST is applicable.

 

9) What is the Penalty for Contravention of Section 269ST? 100% penalty on receiver of amount

 

 

 

Changes in Income Tax law from 1st April 2017

  1. Limit for payment of expenses by cash (Both capital and revenue expenditure) reduced from Rs. 20,000 to Rs. 10,000 per day in aggregate per person.
  2. No Person shall receive an amount of two lakh rupees or more, by cash (Sec 269ST).
  3. For below Rs. 2 crores turnover cases – For Non cash sales (through Digital, Online, cheque, Bank etc.) : Net Profit will be taken as 6% of Turnover/ Gross Receipt. It is 8% For Cash Sales.
  4. Tax Exemption limit is Rs.2,50,000/- (same as earlier) After that, up to 5 Lakh, Tax rate is 5% (earlier it was 10%).
  5. Tax rebate is reduced to Rs.2500 from Rs.5000 per year for taxpayers with income up to Rs.3,50,000 (earlier Rs.5,00,000).
  6. Surcharge at 10 percent of tax levied on rich taxpayers with income between Rs.50 Lakh and Rs.1 Crore. The rate for surcharge for the super-rich, with income above Rs.1 Crore will remain 15%.
  7. Payment of Rent – Rs.50,000 per month by any Individual or HUF (not subject to Tax Audit requirement) – Deduct TDS @5%.
  8. Capital gain in respect of Land and Building period reduced from 3 Years to 2 Years and Base year shifted from 01/04/1981 to 01/04/2001.
  9. Corporate tax rate for the account year 2017-18 for companies with annual turnover up to Rs.50 crores (in account year 2015-16) is reduced to 25%. No change in firm tax rate of 30%.
  10. Donation made exceeding Rs.2000 will be not be eligible for deduction under section 80G.
  11. Shares of unquoted shares to be taxed at (deemed) fair value.
  12. Tax exemption will be available on reinvestment of capital gains in notified redeemable bonds (In addition to investment in NHAI and REC bonds).
  13. Deduction for first time investors in listed equity shares or listed units of equity oriented funds under the Rajiv Gandhi Equity Savings Scheme under section 80CCG of IT act 1961 is withdrawn from FY 2017-18. If an individual has already claimed deduction under this scheme before April 1, 2017, They shall be allowed to avail a deduction for the next two years.
  14. No tax is applicable for partial withdrawals from National Pension System. NPS subscribers will be able to withdraw 25% of their contribution to the corpus for emergencies before retirement. Withdrawal of 40% of the corpus is tax free before retirement.
  15. In absence of PAN of the buyer of specified goods, the rate of TCS will be twice of the extent rate or 5%, whichever is higher.
  16. From Financial Year 2017-18, if Return is not filed within due date, late fee of Rs.5,000 for delay up to 31st December, and Rs.10,000 thereafter. Such fee will be restricted to Rs.1,000 for small taxpayers with income up to Rs.5 lakh.
  17. A simple one page tax return form is to be introduced for Individual with taxable income up to Rs. 5 lakh (excluding Business Income). Those filing returns for the first time in this category will generally not be subject to scrutiny.
  18. Time period for revision of tax return cut to one year (from 2 years) from the end of relevant financial year or before completion of assessment, whichever is earlier.
  19. Where Section 12AA registered trusts modify their object clause, they need to apply within 30 Days to CIT for approval.
  20. It is mandatory to disclose the Aadhar number while filing IT Return. Earlier it was optional to disclose Aadhar number. Generally the last date of filing IT return is 31 July. Therefore, it is advisable for taxpayer to get their Aadhar number at the earliest.

 

 

 

 

THE PAPER TRADERS’ ASSOCAITION, Mumbai

February 2017

Activities-Achievements-Updates during this Period by the Association

No. Date Name of the Activity Description
1 10/02/17 Monthly Circular 1) Monthly Circular was circulated on 10/02/2017 wherein important Circular on Income Tax was given along with regular Important information.
2 03/02&17/02/17 Friday Meet During the two Meetings official issues were reviewed &Impact of Budget on Paper Industry was discussed.
3 01/02/17 3rdManaging Committee Meeting During the 3rdMC Mtg. Highlights of the Budget were discussed, Report of Grievances Committee was discussed and 3 parties recommended by the committee, to declare as Defaulter – were approved, One New Member was admitted, Discussion on launching of “Paper is Degradable, Recyclable and sustainable” Campaign

 

HELP AND SUPPORT EXPECTED FROM FPTA:

No. Date Title Description
1) Non Supplies to Defaulter FPTA should honour and instruct all the Associations and to its members that if any Association declares defaulter then no other Association or its member should supply to defaulter
2) Non Supplies to Defaulter by the Mills FPTA should instruct and take the help of IAPMA that if any Association declares the defaulter then the defaulter should not be supplied by any Paper Mill directly or indirectly
3) Promotion of Paper as Green and Environment Friendly FPTA should with the help of IAPMA jointly should promote the Paper as Green Product.
4) MRP & Weight Measurement Issue Paper Being Raw Material for Ptg. & publishing Industry should be exempted from MRP Labels and Act
5) GST Earliest implementation of GST required
6) Indirect Taxes Simplification of Various Indirect taxes
7) LBT Taxes Required Support for Abolition of LBT and Octroi from Maharashtra

 

 

 

Madras Paper Merchants’ Welfare Association, Chennai – Dec 2016 – Feb 2017

M.P.M.A. REPORT FOR THE MONTH OF DECEMBER 2016:

 

  1. 4th Managing Committee Meeting was held on Wednesday 21-12-2016

at our Association premises, following subject were discussed.

  1. TNPL Board Mill Visit tour on February 2017
  2. Arbitration
  3. Appointment of Sales Tax consultant.
  4. FPTA 2ndC. Meeting held at Ahmedabad.

 

  • We conducted “CHRISTMAS” celebration on Wednesday 21st December 2016 at our Association premises. Chief Guest REV FR. PAPPURAJ, S.D.B. M.A.B.L. PARISH PRIEST, ST. MARY’S CO-CATHEDRAL, Chennai delivered speech about Christmas. Members wished each other for merry Christmas, Cakes & Snacks were distributed to our members.

 

M.P.M.A. REPORT FOR THE MONTH OF JANUARY 2017:

 

  1. A. Nattesan, Mr. Sekar Chandak FPTA Past President, Mr. A. Annamalai (Venkat), FPTA Vice President & Mr. P. Rajesh Jain FPTA M.C. Member   attended the FPTA 2nd M.C. Meeting at Ahmedabad held on 7th & 8th Jan’17

 

  1. We have organized for a meeting on GST Enrollment clarification held on 11th January 2017 at our Association premises. Mr. Nagaraju to conducted meeting regarding clarification on GST Enrollment. Lot of members participated and the members got clarification on above topic.

 

  1. GST memorandum given to Hon’ble Chief Minister, Government of Tamil Nadu.

 

  1. FPTA along with MPMA has organized 9th Short term course on pulp and paper manufacturing. The course was conducted at the SESHASAYEE PAPER AND BOARDS LTD., factory in Pallipalayam, Erode, between 19th Jan’17 to 21st Jan’17. 20 members participated from all over India.

 

  1. We have celebrated Republic Day at our Association premises on 26th January 2017. Morning 9 o clock our past president Mr. A. Natesan hoisted the National flag . Around 30 members participated. Sweet distributed to all members.

 

M.P.M.A. REPORT FOR THE MONTH OF FEBRUARY 2017:

 

We have arranged Mill Visit cum pleasure trip to TNPL, (Board Unit)

Manaparai and Kodaikanal on 17th ,18th & 19th February 2017. Around 35 members participated, members gained immense knowledge in Board production, Quality testing, Quality control & Finishing. Kodaikanal tour was enjoyed a lot by all members.

5th Managing Committee Meeting was held on Wednesday 22-02-2017

at our Association premises, following subject were discussed.

  1. Review of TNPL Mill visit & Kodaikanal tour.
  2. FPTA 56th AGM/Conference to be hosted by our Association.

TELANGANA PAPER MERCHANTS’ ASSOCIATION

Activities-Achievements-Updates during this Period by the Association

No. Date Name of the Activity Description
1.

 

01.02.17

 

 

VISIT TO VIDYA SARASWATHI SHANI TEMPLE

 

FPTA VP Sri.Vishnu Kant Rathi TPMA Hon.Secretary Sri.Telukunta Srinath and member Sri.Gyaneshwar Singh Visited the temple on the occasion of 25th Temple Anniversary where the Association is giving donation to the Veda Patashala.

Members have been felicitated and letter of go green has been given to them.

Letter of Go Green has been given to them to print it on there books.
2. All the Circulars sent by you have been circulated

 

 

 

 

 

 

The Paper Merchants’ Welfare Association, Vijayawada

Activities-Achievements-Updates during this Period by the Association

No. Date Name of the Activity Description
1. 17-2-2017 2nd MC Meeting 1) PMWA resolved and selected the following four members to participate in the international tour of SOUTH KOREA from 1st to 8th March 2017 to have awareness mode of business

trend and mill visit related to paper business organised by FPTA.

1. President : Lalit Kumar Tarachand

M/s. Sha Amichand Tarachand & Sons, Vja-1

2. Secretary : Mr. V.V.D. Ramesh

M/s. Sri Ravi & Co., Vja -1.

3.Vice-President : Mr. Paharsingh Purohit

M/s. Suresh Paper Agencies, Vja -2.

4. PMWA Past President & FPTA MC Member :

Mr. Madhusudan Bang

M/s. Ramchandar Shivanarayan & Sons, Vja -2.

 

2) M/s. Sri Balaji Agencies, Islampet, Vijayawada-1. was considered and granted life membership who deals with Paper & Boards.

 

3) Social Activities :-

Committee had decided to supply cool drinking water to the floating public in density points in hot summer to quinch their thirst. Going to setup four water cooling machines from the

Hind New year’s Day i.e., from 29th March 2017 at the premises of

1) M/s. Sri Swastic Agency, Kandulavari Street, Vijayawada -1.

2) M/s. Kamalsri Papers, Arundalpet, Vijayawada- 2.

3) M/s. Surya Paper Mart, Gandhi Nagar, Vijayawada -3.

4) M/s. Yash Paper Products, Choutra, Guntur-1.

 

4) Committee had resolved to delete the member firms who shutdown their business.

 

5) Committee had proposed and decided to open complaint register newly to record the genuine complaints received pertain to business by members either in written or in person in Association office. The complaint will be disposed in the presence of complainant and accused with immediate effect.

2. 18-2-2017 FPTA 3rd MC Meeting Sent letter to Kanpur Paper Merchants Welfare Association, Kanpur informing that our MC members will participate in 3rd FPTA MC meeting to be held on 30th April 2017 at Kanpur hosted by said Association.

 

The Karnataka Paper Merchants’ & Stationers’ Association, Bangalore – Nov 2016 – Feb 2017

Activities-Achievements-Updates during this Period by the Association

  1. P.M.S.A. REPORT FOR THE MONTH OF NOVEMBER 2016:

 

No. Date Name of the Activity Description
1. 01-11-2016 Karnataka

Rajyotsava &

Blood Donation

Camp

All Members of KPMSA assembled and celebrated Karnataka Rajyotsava (Formation Day) at Association Office, Followed by Breakfast. We had organsied Blood Donation Camp on this Occasion an 100 + Willing donors approached, after Medical Screening 73 Units of Blood Was Collected by Rotary Bangalore TTK Blood Bank
2. 09-11-2016 MC Meeting The Second MC Meeting was held.We had a presentation from YES Bank Ltd on Special Unsecured Working Capital Loan to the Members of Association, there was a healthy discussion. The Matter of Demonitization as announced by Honorable Prime Minister on 08-11-2016 was also discussed in detail.
3. Office Bearers

Meet

The Office Bearers Met and visited the Bank to complete formalities

 

  1. P.M.S.A. REPORT FOR THE MONTH OF DECEMBER 2016:

 

No. Date Name of the Activity Description
1 09-12-2016 GST Seminar Secretary, President and MC Member attended Seminar on GST Migration held by Karnataka Small Scale Industries Association, Speakers Included Shri Rajiv Agarwal Senior Vice President GSTN, Shri Rithvik Pandet, Commissioner Commercial Tax Government of Karnataka, and Various High Level Officials and Members from Trading & Manufacturing Community.
2 14-12-2016 MC Meeting The Third MC Meeting was held.We had a presentation from YES Bank Ltd on Special Unsecured Working Capital Loan to the Members of Association, there was a healthy discussion. The Matter of Demonitization as announced by Honorable Prime Minister on 08-11-2016 was also discussed in detail.
3 16-12-2016 Office Bearers Meet The Office Bearers Met discussed about the Various Social or Cultural activities to be conducted on 26th January 2017, also Various matters of Association and Trade we discussed.
4 23-12-2016 Office Bearers Meet The Office Bearers Met and Circulars were issued for

A) Procedure for generation of GSTIN scheduled to start from 01-01-2017 to 15-01-2017 detailed.

B) To All Annual Members for converting there Annual Membership to Life Membership.

5 30-12-2016 Office Bearers Meet The Office Bearers Met and reviewed the Year gone by and also plans were made for coming year.

 

  1. P.M.S.A. REPORT FOR THE MONTH OF JANUARY 2017:

 

No. Date Name of the Activity Description
1 13.01.2017 MC Meeting 4th MC meeting was held on 13th January, 2017, discussion about GST memorandum to sate FM held, it was decided to meet FM and submit our memorandum. Members also discussed to celebrate the Republic day function on 26.01.2017.
2 14.01.2017 Office Bearers Meet Secretary, Chairman Taxation Committee and Sri Vimal Salecha met and prepared the memorandum regarding GST to be submitted to FM
20.01.2017 Office Bearers Meet Office bearers met at President office and discussed the possibilities of holding GST seminar as well as educate members to enroll themselves for GSTN.
3 26.01.2017 Republic day celebration Members met at the Association office and Flag hoisting done by President Madhusudanji Baldwa and members meeting followed by Breakfast. Around 150 members attended the Function.

 

  1. P.M.S.A. REPORT FOR THE MONTH OF FEBRUARY 2017:

 

No. Date Name of the Activity Description
1 10.02.2017 MC Meeting 5th MC meeting held on 10.02.2017 to discuss various issues related to paper trade. One new member added.
2 23.02.2017 Office Bearers Meet Office bearers met for Bank locker and to discuss about the donation to be made to Kidwai Hospital on 26.02.2017.
3 26/02/2017 Social Visit Office Bearers, Chairman Social Welfare Committee and Various MC Members Visited Kidwai Cancer Hospital and Handed Over One Mini Flour Mill Worth Rs 22800 to Surya Kiran Foundation Working for Poor Cancer Patient.

 

 

 

 

 

 

 

 

 

 

 

 

Paper and Allied Merchants Association, Coimbatore. – JAN- MAR 2017

REPORT FOR THE MONTH OF JANUARY 2017:

 

1-01-2017       PAMA Breakfast Meeting of all our members at Cream Centre, Race Course, Coimbatore – 18. More than 40 members participated.

06-01-2017     Awareness Programme on “GST Signing up Process” organized jointly by commercial Taxes Depatment and FTAC. Many of our members participated.

07-01-2017    FPTA IInd MC Meeting at Ahmedabad. Attended by Mr. C. Balasubramanian and Mr. KM 08-01-2017 Narayanasamy.

18-01-2017     GST Programme jointly organized by chamber of commerce and association of hotel zone, Avinashi Road Coimbatore. Mr. C. Balasubramanian was one of the speakers.

25-01-2017     FTAC EC Meeting at 4.00 PM. Attended by Mr. C. Balasubramanian.

26-01-2017     Flag Hoisting Ceremony at chamber of commerce. Attended by Mr. R. Ravi and Mr. C. Balasubramanian.

27-01-2017     GST Program at Chamber of Commerce 3.00 PM to 6.00 PM. Attended by many of our members.

30-01-2017     PAMA EC Meeting at our Association office at 7.30 PM.

 

Subject discussed:

  1. December 2016- monthly Report sent to FPTA
  2. 3rd MC Meeting of FPTA at Kanpur
  3. GST Migration from VAT
  4. Market scenario.

 

REPORT FOR THE MONTH OF FEBRUARY 2017:

 

4-02-2017       Chamber of commerce – GST Programme – part 4, 3 to 6 pm. Many of our members participated.

13-02-2017     Chamber of Commerce – Governing Council Meeting 6.30 pm attended by C. Balasubramanian.

27-02-2017     PAMA EC Meeting at our association office at 7.30 pm.

 

Subject discussed:

  1. FPTA MC Meeting at Kanpur on 30th April and 1st may 2017.
  2. GST Programme at Chamber of Commerce.
  3. Family get together of our PAMA Members.

 

REPORT FOR THE MONTH OF MARCH 2017:

 

7-03-2017                   Chamber of Commerce – 4pm – presentation on “Tally for GST” by Shri T. Pughal Association

Vice President m/s Tally solutions Bangalore. Many of our members Participated.

13-03-2017     Chamber of Commerce Governing council Meeting 6.30 pm Attended by

Mr. R. Ravi and Mr.      C. Balasubramanian.

23-03-2017     Pama EC Meeting at our association office at 7.30 pm.

 

Subject discussed:

  1. FPTA MC Meeting Kanpur on 30th April and 1st May 2017
  2. FPTA 56th AGM at Chennai Hosted by Madras Paper Merchants Association on 12th

14th   August 2017.

  1. Market Scenario.
DRAFT MINUTES OF THE SECOND MEETING OF THE FPTA’s MANAGING COMMITTEE (2016-2017) HELD AT HOTEL ST LAURN, AHMEDABAD ON

SATURDAY 07TH AND SUNDAY 08TH JANUARY 2017.

 

The second meeting of the Federation of Paper Traders’ Associations of India for the year 2016-17 was held at Hotel St. Laurn, Ahmedabad on 07th & 08th January 2017 hosted by the Paper Merchants’ Association, Ahmedabad.

 

Opening Ceremony:

The inaugural ceremony began at 6.00 p.m. Shri. Nitin Thakkar, Chairman Reception Committee, PMA Ahmedabad invited and welcomed President of FPTA, Shri Shamji Karia, Chief Guest, Swami Adhyatmanandji, Sivananda Ashram, Ahmedabad, Guests of Honour Shri Niraj Goel, Managing Director, M/s. Bindal Paper Mills Ltd., and Shri Raju H. Gala, Joint Managing Director, M/s. Navneet Education Ltd. Shri Bhupendra Gandhi President of the Paper Merchant’s Association, Ahmedabad and other dignitaries to the dais.

 

The ceremonial Lamp was lit by the Chief Guest Swami Adhyatmanandji, with other dignitaries on the dais. The dignitaries and PMA, Ahmedabad members who were present in the meeting were presented bouquets and mementos.

 

Shri Nitin Takkar, Chairman, Reception Committee welcomed the managing committee members and dignitaries. He thanked FPTA for giving them an opportunity for hosting the meeting at Ahmedabad.

 

Shri Ajay Goenka, MD M/s. Rainbow Paper Ltd. Due to unavoidable circumstances he could not attend the ceremony, but conveyed his best wishes.

 

Chief Guest, Swami Adhyatmanandji, Sivananda Ashram addressed the audience by chanting a few shlokas, He thanked President Shri Shamji Karia. He also thanked members of PMA Ahmedabad for the honour accorded to him. He said he is connected with Ballarpur, J. K. Paper, West Coast Industries and had visited ITC Bhadrachalam where he had planted trees. He revealed that paper industry in India was set up very late. He also explained historical significance of paper. He explained how to do trade, by giving few examples of prominent personalities. He said person should have understanding, dedication, focus, truth, and transparency towards his work; only then is one remembered for a long time. He further said you should give time to yourself.

 

Shri Neeraj Goel, MD. M/s. Bindals Paper Mills Ltd., thanked members for inviting him for sharing his experiences with the august audience; he said we are gathered here to see how we can earn money from our business. Time is precious and we have to convert each and every moment into gain. We together should coordinate for getting better trade margins. Mills raise paper price due to demand and supply. He gave current statistic report on paper production. He insisted paper trading fraternity to bring next generation to the trade. We are bound to give quality and quantity as per trade’s requirement.

 

FPTA President, Shri Shamji Karia, Mumbai welcomed the Chief Guest, Guests of Honour, other dignitaries and the members present. He also thanked PMA Ahmedabad for inviting and hosting the 2nd Managing Committee Meeting. He said he has special bonding, with Gujarat state as he had been born and brought up here. He said that in the 3 months as President he experienced different situations, due to demonetization the traders were panicked to know that whether trade will continue smoothly or not. But trade has overcome from this condition and now it is more or less stable. He further stated that Paper trade is well organized sector and has accountability. He advised members to be vigilant while trading; he believes trade has to be prepared for CASHLESS trade. The year 2016 had noticed significant increase in paper prices, due to shortage of supply from major paper producers like BILT. Imports raised by local paper industry could not supply the material on demand. He requested members of the trading fraternity to raise trade margin to survive in this competitive market and secure debts. GST is a welcome step and we have to be ready for it, it is our responsibility to educate our members. He said people should be made aware of misconception; propaganda spread that paper is made by cutting trees. We will coordinate with producers, consumers to celebrate PAPER DAY. Our Committees are working exceptionally very well.

 

Shri. Bhupendra Gandhi, PMA Ahmedabad, President delivered the vote of thanks.

 

Technical Session was conducted by Shri Monish Desai, N. Desai Papers Pvt. Ltd. He revised the earlier subject on SWOT (Strength, Weak, Opportunity and Threat) and later on enlightened the subject “Are We Earning”.

 

Business Session

 

Business Session of the meeting was presided by Shri Shamji Karia, President, FPTA. It commenced at 11.30 A.M. A list of members who attended the meeting is given in Annexure.

 

Shri. Gopal Saha, Kolkata, Shri. A. Annamalai (Venkat), Chennai, Shri. Ramesh Chand Jain, Delhi, Shri. B. Uttamchand Jain, Bangalore, Shri Hari Prasad Goenka, Howrah, Shri. Vishnukant Rathi, Secunderabad, Shri. Dipesh Ladda, Vadodara. along with Shri Hiren Karia, Hon. Secretary and Shri Parish Parekh, Hon. Treasurer were on the dais.

 

Shri Hiren Karia, Hon. Secretary was requested by President to proceed with the Agenda of the Meeting.

 

  1. To confirm the draft minutes of the fourth meeting of the Managing Committee (2015-16) held on 23rd September 2016 at Mumbai.

Minutes were passed unanimously

Proposed by: Shri Dhiraj Karia, Mumbai

Seconded by: Shri Subrata Sen, Kolkata

 

1a. To confirm the draft minutes of the first meeting of the present Managing Committee (2016-17) held on 25th September 2016 at Mumbai.

Minutes were passed unanimously.

Proposed by: Shri Shanti Kumar Jain, Delhi

Seconded by: Shri Ravi Rathi, Secunderabad

 

  1. To consider applica