EZYBIZ INDIA CONSULTING LLP

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.

Monthly Newsletter September, 2016

Redefining Consultancy

Content

EzyBiz India

1 Due Dates for month of October, 2016

2 Taxation News- Direct Tax

3Taxation News- Indirect Tax

4 Regulatory News

Important Due Dates

EzyBiz India

6th October, 2016 Excise Payment for the month ended 30th September, 2016.

6th October, 2016 Service Tax Payment for the month/quarter ended 30th September,2016.

7th October, 2016 TDS/TCS Payment for the month ended 30th September, 2016.

10th October, 2016 Excise Return for the month/quarter ended 30th September, 2016.

15th October, 2016 Provident Fund Payment for the month ended 30th September,2016.

15th October, 2016 TCS Return for the quarter ending 30th September,2016.

17th October, 2016 Income Tax Return Filling for AY 2016-17 (audit cases).

Important Due Dates

EzyBiz India

21st October, 2016 VAT Payment for the month ended 30th September,2016.

21st October, 2016 ESI Payment and Return for the month ended 30th September,2016.

25th October,2016 Provided Fund Return for the month ended 30th September,2016.

25th October,2016 Service Tax Return for the half year ending 30th September,2016.

31st October,2016 TDS Return for the quarter ending 30th September,2016.

Direct Taxation News

EzyBiz India

General News

CBDT launches online ‘Nivaran’ to resolve Income Tax grievances.

Government of India entered Double Taxation Avoidance Agreement with Republic of Seychelles.

CBDT clarifies that no enquiry or investigation in respect of assets /income declared which were found during the course of

Search u/s 132 or Survey action u/s 133A of the Income-tax Act,1961. Circular No. 32 of 2016.

CBDT entered 20 unilateral advance pricing agreements (APAs) with taxpayers on August 29, 2016 and August 30, 2016 with

Indian taxpayers in order to reduce litigation by providing certainty in transfer pricing.

Extension to 17-10-2016 of due date for filing ITRs in cases where due date of ITR is 30.9.2016 due to clash with Income

Declaration Scheme 2016. CBDT Order of 9-9-2016.

CBDT will make change in ITR form from next year which will contains CA's details to be part of Tax form to ensure clients

are not duped. However the onus of the ITR details will remain with tax payer.

Case Laws

University not wholly or substantially financed by government is not eligible for exemption u/s 10(23)(iiiab).

[Visvesvaraya Technological University vs. ACIT (Supreme Court of India)].

Amount received by the assesse company from its shareholders on account of share capital and maintenance deposit will not

be taxed as business income under the Income Tax Act, 1961.

[G. S. Homes and Hotels P. Ltd. Vs. DCIT, (Supreme Court of India)].

Direct Taxation News

EzyBiz India

CBDT Circulars and Notifications

CBDT vide notification no. 10/2016 notified Extension of due dates of Form 15G/H received during 1.10.2015- 31.3.2016 &

for Q1 of 2016-17, to31.10.2016; & for Q2 of 2016-17, to 31.12.2016.

Income Tax Authorities must mention official e-mail Ids & phone/fax no in all notices/letters issued to taxpayers. F No

225/214/2016/ITA.II of 30-8-2016.

Extension of due dates of Form 15G/H received during 1.10.2015- 31.3.2016 & for Q1 of 2016-17, to31.10.2016; & for Q2 of

2016-17, to 31.12.2016. CBDT notification no 10/2016.

CBDT clarifies on levy of penalty in cases where assessment notice 142(1)/143(3)/147 was served before May 31, 2016, and

hence such cases were not eligible under Income Declaration Scheme (‘Scheme’);

Where a declaration has been made in respect of an issue under IDS and an identical issue is also pending for years not

covered by IDS, CBDT directs 'lenient view' be taken while levying penalty in case of income addition involving identical

issue in non-IDS years; CBDT adds a condition that the person should pay tax and interest on such issue for non-IDS years

and clarifies that such person shall be treated as having "co-operated” within the meaning of Sec. 273A;

CBDT takes note of Sec. 273A (dealing with the power to reduce/ waive penalty in certain cases) and Sec. 279(1A) (which

provides that no prosecution will be initiated for an offence for which penalty is reduced/waived u/s 273A); Directs Pr.

CIT/CIT to adopt a lenient view on receipt of a valid application u/s 273A for issues that are identical to the issue on which

a valid declaration is made under the Scheme for non-IDS years subject to payment of entire amount payable under the

Scheme.

International Taxation

EzyBiz India

Case law on international taxation

ITAT: TDS u/s 195 inapplicable on legal-fees payment to UK-firm for establishing foreign branch

Mumbai ITAT rules that payment of legal fees by Kotak Mahindra Bank (‘assesse’) to UK based firm not

royalty/FTS either under India-UK DTAA or under the domestic law, TDS u/s 195 not applicable;

Referring to the letter of engagement, ITAT observes that assesse made payments for educating its officials

who visited US) regarding various legal / regulatory requirement of USA for setting up of a bank branch or

acquisition of banking company etc.; As legal fees payment was made with a view to carry on business outside

India and create a new source of income outside India,

ITAT holds that payment falls within the exceptions under Sec 9(1)(vi) / (vii) and hence, not taxable as

royalty/FTS under the Act; With respect to applicability of DTAA, ITAT accepts assessee’s stand that since it

has obtained legal services, Article 15 (‘Independent Professional Services’) being more specific in nature shall

apply over Article 13 (dealing with royalty / FTS);

As services were rendered outside India and no employee of UK firm were present in India for more than 90 days,

ITAT concludes that payment not taxable in India as per DTAA, relies on SC ruling in Rajendra Prasad Moody, SB

ruling in Clifford Chance and co-ordinate bench ruling in Bajaj Hindustan Ltd., Maharashtra State Electricity

Board:ITAT.

Indirect Tax Notification

EzyBiz India

GST

Payment of GST

Pay GST by single challan, but breakup of IGST, SGST of relevant state & CGST to be given.

E-payment except for payments up to Rs. 10,000.

No Period & Purpose fields in Challan.

To be used for Self Assessment Tax of earlier returns & then current return. Balance for demands etc.

Fee For Late Return

Under GST late returns would attract fee @ 100 per day subject to maximum of Rs 5,000/- maximum fee in case of annual

return is 0.25% of aggregate turnover.

Other

No benefit of composition scheme to small service providers under GST.

Under GST By Oct end, GSTIN & Passwords to be issued to existing Assessees who will have to update Address, Names of

Owners / Directors etc & Bank details.

Under GST, registration required in each state from where supplies to be made. File 3 Returns p.m. for each Registration & 1

Annual Return.

Under GST apply for registration in 30 days from becoming liable, to claim ITC of inputs in stock on date preceding date of

liability.

Indirect Tax Notification

EzyBiz India

Service Tax

Dept of Revenue has specified that the religious places shall be exempted from payment of Service Tax. All religious places

shall be considered to fall within the purview of clause (a) of entry 5 of Notification No. 25/2012- Service Tax, to be

exempted from payment of service tax.

Service Tax exemption on advancement of Yoga [Notification No. 42/2016-Service Tax]

Audit under service tax can only be conducted by CA/CMA. Departmental personnel’s are not authorized to conduct service

tax audit.

CBEC has exempted the requirement of enclosing photocopies of Railway Receipts (RR) with the 'Service Tax for

transportation of goods by rail' (STTG) Certificate for availing CENVAT Credit.

Excise/Custom

DGFT has amended the Clause 3(1)(i)(h) of Foreign Trade to allow individuals to import CIF value of consumer electronic

items at any one time for personal use upto Rs. 50,000/-.

CBEC has issued a clarification regarding supply of goods manufactured by EOUs without payment of central excise duty

against advance licence/authorisation vide circular No. 1046/34/2016-CX dated on 16/09/2016.

Case laws

Refundable security deposit should not be subjected to Service Tax as per provisions of the Finance Act, 1994

[M/s Avadh Infratech Ltd. Vs Commissioner of Central Excise Surat-II, Surat – 2016 (9) TMI 145.]

Regulatory News

EzyBiz India

MCA/Companies Act

MCA has amended the Schedule V of companies act 2013 dated 12th Sept. 2016 [F.No. 1/5/2013 CL-V].

MCA has enforced certain provisions of Companies Act, 2013 w.e.f 9th Sept, 2016. Section 227, 242, 246,241

or 245 and Sec 337 to 341 (to the extent of their applicability for Section 246).

Provisions of Companies Act, 2013 relating to IEPF (Investors Education and Protection Fund) effective from

07.09.2016.

CLB if inclined to injunct appellants from using information derived from statutory records, would have to first

deal with the submission that it would have no jurisdiction to prevent them from using information [Jasmohan

Singh vs. Freeze King Ind (P.) Ltd. High Court Of Delhi].

RBI

RBI has set up a working group to review the guidelines for hedging of commodity price risk by residents in the

overseas market amid rising volumes of cross-border trade.

SEBI

SEBI allowed commodity exchanges to modify futures contract specifications pertaining to quality parameters.

SEBI made Unique Client Code (UCC) and Permanent Account Number (PAN) mandatory for all the persons

transacting on commodity exchanges.

SEBI deems share transfer by promoters by way of gift as sale .

Regulatory News

EzyBiz India

SEBI has issued a clarification that ‘Income from Operations’ may be disclosed inclusive of excise duty, instead of

net of excise duty, as specified in the Companies Act, 2013.

SEBI has directed Commodity Exchanges to offer price dissemination facility to subscribers through SMS or any

other electronic comm. facility for all commodities on a daily basis.

Others

DIPP has clarified that Internet broadcasting companies shall also come under the purview of statutory licensing

under section 31D of the Copyright Act.

ESIC hikes wage ceiling from Rs.15000 to Rs.21000 w.e.f 1st Oct 2016.

ICAI create support desk for implementation of Indian AS.

The Union Cabinet has approved the proposal of the merging of Union Finance Budget and Railway Budget. Now

a Consolidated Budget shall be presented on February 1 every year instead of the last day of the month of

February.

Cabinet approves Agreement between India and Samoa for exchange of information with respect to Taxes.

Who We Are EZYBIZ India is a multi-

disciplinary consulting and business outsourcing firm,

founded by Mr. Anil Agrawal, FCA who is alumni

of Ernst & Young having more than 12 years of experience in field of

Taxation, Regulatory and Transaction advisory

services.

Our TeamWe have dedicated team

comprises of professionals from multi-disciplinary

fields like Chartered Accountants, Company Secretaries, Corporate Lawyers, Ex-Bankers, Financial advisors, 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

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)