EZYBIZ INDIA CONSULTING LLP

Monthly Newsletter June, 2016

Redefining Consultancy

DISCLAIMER: This newsletter provides information of general nature and is not meant to be a substitute for professional advice. No one should act on

such information without appropriate professional advice. EzyBiz India. accepts no liability with regard to the information herein or any action

that may be taken by readers of this newsletter without any professional advice.

Content

1 Due Dates for month of July, 2016

2 Taxation News- Direct Tax

3Taxation News- Indirect Tax

4 Regulatory News

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Important Due Dates

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21st June, 2016 VAT Payment for the month ended 31st May, 2016

21st June, 2016 ESI Payment and Return for the month ended 31st May, 2016

25th June, 2016 Provided Fund Return for the month ended 31st May, 2016

25th June, 2016 ESIC Consolidated Statement of dues and remittance for the monthended 31st May, 2016

30th June 2016 Return in respect of securities transaction tax for the financial year2015-16

6th July, 2016 Excise Payment for the month ended 30th June, 2016.

6th July, 2016 Service Tax Payment for the month/quarter ended 30th June, 2016.

7th July, 2016 TDS/TCS Payment for the month ended 30th June, 2016.

10th July, 2016 Excise Return for the month/quarter ended 30th June, 2016.

10th July, 2016 ROC e-forms due for filing between 25th march 2016 upto 30th June2016.

15th July, 2016 Provident Fund Payment for the month ended 30th June, 2016.

Important Due Dates

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15th July, 2016 TCS Return for the quarter ending 30th June,2016.

21st July, 2016 VAT Payment for the month ended 30th June,2016.

21st July, 2016 ESI Payment and Return for the month ended 30th June,2016.

25th July 2016 Provided Fund Return for the month ended 30th June,2016.

31st July,2016 Income Tax Return Filling for AY 2016-17 (non-audit cases).

31st July,2016 TDS Return for the quarter ending 30th June,2016.

Changes in schedule for payment of Advance Tax

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Installment Due Date Amount payable

I 15th June 15%

II 15th September 45%

III 15th December 75%

IV 15th March 100%

The schedule for payment of Advance Tax by an Individual and other non-corporate assessee

has been amended w.e.f. 1st June

Now assessee covered u/s 44AD of Income Tax Act also required to pay advance tax from

FY 2016-17 onwards.

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Direct Taxation NewsA New Levy:- Equalization levy (Chapter VIII of Finance Act,

2016)Equalization levy @ 6% has been made applicable from June 1, 2016

Equalization levy is to be deducted by the payer from the amount paid/ payable (Rs. 1,00,000

or more.) to the non-resident service provider with respect to specified services provided.

specified services:-

a) Online Advertisement

b) Any provision of digital advertising space or any service for the purpose of online

advertisement.

To whom it is applicable:-

a) a person resident in India and carrying on business or profession.

b) a non resident having permanent establishment in India.

The Consideration paid for specified services will be disallowed in following cases as per

40(a)(ib) of Income Tax Act :-

a) Equalization levy is deductible but such levy has not been deducted.

b) Equalization levy is deductible (and it is so deducted) but it is not deposited [on

or before the due date of submission of return of income under section 139(1).

If, however, equalization levy is deducted / deposited in a subsequent year, the

aforesaid consideration shall be allowed as a deduction in computing the income of

the previous year in which such levy has been paid.

Income Tax

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Relief to a nonresident for furnishing PAN [Section 206AA]

Section 206AA, inter alia, provides that any person (who is entitled to receive any sum on which tax is deductible at source) shall furnish his PAN to the deductor, failing which tax shall be deducted at the rate mentioned in the relevant provision or at the rate of 20 per cent, whichever is higher.

Amendment Which effect from June 1, 2016, subsection (7) of the said section has been substituted to provide that above provisions shall not apply to a nonresident / foreign company (who does not have PAN) subject to such condition as may be prescribed.

The above rule applicable to non-resident, not being a company, or a foreign company if they furnish the following details and documents to the deductor:-

Name, e-mail id, contact number;Address in the country of which the deductee (non-resident) is a resident;Tax Residency Certificate (TRC) from the Government of that country if the law of that country provides for issuance of such certificate;Tax Identification Number (TIN) or any other Unique Identification Number of the non-resident of his residence country.

Income Tax

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General News

No TDS for provident fund withdrawals of up to Rs 50,000 from June 1, 2016.

I-T dept. launches ATM-based validation system for filing e-ITRs. Now EVC can be generated by

pre-validating the Automated Teller Machine (ATM).

Pay 45% Tax and declare undisclosed Income From 01.06.2016 to 30.09.2016.

Provisions of General Anti-Avoidance Rule (GAAR) shall be applicable with effect from 1.4.2017 -

Income-tax (16th Amendment) Rules, 2016.

Revised procedure for online submission of TDS/TCS statement.[ Notification No. 11/2016-Income

Tax (DIT Systems)].

Relaxation from TDS@20% where PAN is not available and from payment made to non-resident, not

being a company, or a foreign company, subject to conditions and providing specific details and

documents - Income-tax (17th Amendment) Rules, 2016. Notification No. 53/2016-IT.

CBDT Circulars

Statement of TDS for sale of property u/s 194-IA to be filed within 30 days with effect from 1/6/16,

due date aligned with due date of deposit of TDS. CBDT Notification No. 39/2016.

Income Tax

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Section 14A disallowance cannot exceed total expense: CBDT Via (Notification No. 43/2016

dated 02/06/2016)

CBDT clarifies that the higher turnover threshold of Rs. 2 crore for non-audit of accounts is

granted only to assesses, opting for presumptive taxation scheme u/s 44AD.

CBDT notifies rules for Foreign Tax Credit. Notification No. 54/2016-IT dated 27/06/2016.

The CBDT vide Notification No: 42/2016 dated. 2 June 2016 has notified the Cost Inflation Index

(CII) at 1125 for Financial Year 2016-17.

Case Laws

Coaching Class Income of ICAI is exempt via (Dy. Director of Income Tax (E) vs. ICAI (ITAT

Delhi)

Section 80IC: 100% deduction allowed on every substantial expansion via {M/s Tirupati LPG

Industries Ltd. vs. JCIT (ITAT Delhi)}

Non Furnishing of reopening reasons render reassessment invalid. [Shri Inderjeet Singh

Sachdeva vs. DCIT (ITAT Delhi)].

International Taxation- Case Study

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HC: Reverses AAR, rejects Revenue attempt to re-characterize composite contract as

equipment 'hire‘

Facts of the case :- A Singapore company (“Technip”) installed a marine crude oil receiving facility

for an Indian company (“IOCL”) at a contract price of U.S.$18.6 million. Although the facility

belonged to IOCL, its installation required Technip to use its own barges containing specialized

equipment, with 68% of the contract price allocated to this use. AAR held that the income of the

petitioner was taxable in India as fees for technical services (FTS) under both the IT Act and DTAA.

Delhi High Court observation

There is a difference between the use of the equipment by [Technip] ‘for’ IOCL and the use of the

equipment ‘by’ IOCL. Since the equipment was used for rendering services to IOCL, it could not be

converted to a contract of hiring of equipment by IOCL. Technip’s profit instead was exempt under

Art. 7.

The Court stated Under Article 5(3) Technip can be said to have a PE in India only if the installation

or construction activity is carried on in India for a period exceeding 183 days in any fiscal year.

Technip was present in India for 41 days during 2008-09 for rendering service to IOCL.

Final Decision:- The resultant position is that no part of the income earned by the Petitioner from the

contract with IOCL can be taxed in India.

Indirect Tax Notification

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D-VAT

Under DVAT Commodity code to become mandatory from Q1 2016-17

Service Tax

Ministry of Finance has amended the Service Tax Rules, 1994 by issuing The Service Tax (Fourth

Amendment) Rules, 2016.

Ministry of Finance has issued Indirect Tax Dispute Resolution Scheme Rules, 2016.

Krishi Kalyan Cess not applicable on outstanding debtors as on 31st May 2016.

Speedy disbursal of pending refund claims of exporters of services under rule 5 of CENVAT Credit

Rule, 2004 [Circular No. 195/05/2016- Service Tax].

Excise Duty/Custom Duty

Record Maintenance of warehoused goods in electronic form. [Circular No 25/2016-Customs].

Procedure for Gold/silver/platinum import by nominated agencies via {Circular No. 27/2016-

Customs }

Indirect Tax Notification

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CBEC has issued a form of application for a licence under Public Warehousing Licensing

Regulations, 2016 / Private Warehousing Regulations, 2016 / Special Warehousing Regulations,

2016 vide Circular No. 26/2016 dated 09/06/2016.

Case Laws

Delhi High Court delivered a landmark judgment [Mega Cab v UOI and Anr. in WP(C)

5192/2015] -no more audit of assesse recordsby the Central Excise and Service Tax Department

as well as CAG and strike down new rule 5A(2) of Service Tax Rules as ultra virus to the No

Finance Act, 1994.

Service tax on under construction flats if price includes land value via {Suresh Kumar Bansal

vs UOI (Delhi High Court)}.

. Review petition is to be allowed if appeal was disposed of on basis of incorrect facts: Apex Court

deputy Commissioner of Central Excise & Service Tax v. Barnala Builders & Property

Consultants.

Regulatory News

MCA

MCA has notified 29 sections pertaining to NCLT which is applicable with effect from 1/6/2016.

Via Notification SO1934 (E).

National Company Law Tribunal & National Company Law Appellate Tribunal constituted by

Central Govt. with effect from 01.06.2016.MCA Notification dated 01.06.16.

MCA issues the Limited Liability Partnership (second amendment) Rules 2016. MCA notification

dated 10.06.2016.

HUF cannot become a partner or designated partner in LLP. Only an individual or body corporate

can be a partner in LLP. MCA clarifies vide Circular no. 2/2016.

RBI

RBI has issued Master Direction on Financial Services provided by Banks Directions, 2016. As

per the direction, a Bank is not allowed to contribute more than 10% of its paid up capital and

reserves as per last audited balance sheet in factoring subsidiaries and factoring companies.

RBI Keeps repo- rate unchanged at 6.5%, CRR also remains at 4%, Reverse Repo rate stays at

6%.

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Regulatory News

SEBI

SEBI introduces new guidelines for winding-up of depositories.

SEBI has notified disclosure of the impact of Audit qualifications by the Listed entities.

SEBI cautions investors not to invest in Schemes offered by entities barred by SEBI from

raising money or entities not registered with SEBI.

Mandatory Filing Of Compliances / Information In Electronic Mode :-

As per Regulation 10 of the Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015-

(1) The listed entity shall file the reports, statements, documents, filings and any other

information with the recognized stock exchange(s) on the electronic platform as by

specified the Board or the recognized stock exchange(s).

(2) The listed entity shall put in place infrastructure as required for compliance with

sub-regulation (1).

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Regulatory News

Others

Startups- Guidelines for Patent, Designs & Trade Marks application via {Public Notice No.

CG/F/Start-up/Guidelines/2016/79 - (08/06/2016)}

Interest rate on PPF retains at 8.1% for quarter ending September, 2016, same as stayed in 1st

Quarter of 2016-17.

Finance Ministry announces new rules allowing for premature withdrawal of the public provident

fund (PPF) account deposit.

Finance Ministry has issued a notification dated 18.06.2016 vide which premature closure of PPF

account is allowed in given conditions with a interest penalty of 1 % .However this facility is

available only if PPF account is five years old.

Clarification issued by ICAI for preparation of consolidated financial statements. Holding company

will have to consolidate partnership firm / LLP if that partnership firm / LLP is subsidiary or

associate or JV.

Non Resident Indians (NRIs) can now join and subscribe to NPS online through eNPS [Press

Information Bureau Government of India Ministry of Finance 17-June-2016].

Govt. allows 100% FDI in e-commerce, aviation and defense.

EzyBiz India

Who We Are EZYBIZ India is a multi-

disciplinary consulting and business outsourcing firm,

fully managed by specialized professionals who are expert

in their respective fields.

Our TeamWe have dedicated team

comprises of professionals from multi-disciplinary

fields like Ex-Bankers, Tax consultants, corporate

Lawyers, Financial advisors, Chartered Accountants,

Company secretaries etc.

Our VisionA vision to provide one

window solutions to business, tax, regulatory, legal and allied consulting needs of domestic clients as well as multinational companies

operating/wants to operate in India.

About Us

EzyBiz India

Business Start Up Services

• PVT Ltd Co.

• LLP Regn.

• Firm Regn.

• LO/BO/PO/WOS

• VAT/CST Regn.

• Service Tax/ Excise Regn.

• IEC license

• NGO/ Cooperative Society Regn.

• FRRO Regn.

Tax Return Filing Services

•Income Tax Return

• DVAT/CST ReturnReturn

•Service Tax/Excise Return

•NRI Tax return

•Expatriate tax Return

• ROC return

• Annual Activity Statement in case of LO

•Form FLA in case of BO/LO/Foreign Company

•NGO/Cooperative Society Return

Advisory & Compliance

Services• Direct Tax Advisory

& Compliance

• Indirect tax Advisory & Compliance

• International Tax Advisory & Compliance

• Transfer pricing Advisory and Documentation

• Direct Tax Assessment and Litigation

• Indirect Tax Assessment and Litigation

•

Advisory & Compliance

Services• ROC advisory &

Compliance

• FEMA/RBI Advisory & Compliance

• Secretarial Compliance

OTHER SERVICES

• Funding From Banks

• Private Equity Funding

• Financial Planning

OUR SERVICES

Contact Us

EZYBIZ India CONSULTING LLP (Redefining Consultancy)

Office No. 306, 3rd Floor, Vishwa SadanBuilding, District Centre, Janakpuri,New Delhi-110058

Mob: +91-9899217778 Off: +91-11 64992101

E: ezybizconsulting@gmail.comanil@ezybizindia.in,

W: www.ezybizindia.in

Our Affiliate Firm:

ANIL AGRAWAL & COMPANY

(Chartered Accountants)

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