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

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Monthly Newsletter January, 2017

Redefining Consultancy

Content

EzyBiz India

1 Due Dates for month of February, 2017

2 Taxation News- Direct Tax

3Taxation News- Indirect Tax

4 Regulatory News

Important Due Dates

EzyBiz India

6th February, 2017 Excise Payment for the month ended 31st January, 2017

.

6th February, 2017 Service Tax Payment for the month/quarter ended 31st January, 2017.

7th February, 2017 TDS/TCS Payment for the month ended 31st January, 2017.

10th February, 2017 Excise Return for the month ended 31st January, 2017.

15th February, 2017 Provident Fund Payment for the month ended 31st January, 2017.

21st February, 2017 VAT Payment for the month ended 31st January, 2017.

21st February, 2017 ESI Payment and Return for the month ended 31st January, 2017.

25th February, 2017 Provided Fund Return for the month ended 31st January, 2017.

Direct Taxation News

EzyBiz India

General News

On e- filing portal of income tax, the functionality "My Account" has been changed w.e.f. 6.1.2017.

No credit of TDS, advance tax under PMGKY; Govt. releases 12 Q&As on PMGKY.

Income tax authorities have begun a multi-city crackdown against black money under the new stringent

Benami law, having attached 42 properties worth crores of rupees and issued 87 notices.

Deduction u/s 54EC eligible on Investment in specified bonds from the amounts received as an advance .

Clarification on Indirect Transfer provision under the Income Tax Act, 1961 Circular No. 41/2016.

New design of PAN card with QR code: Income Tax Department prescribes new design of PAN card with QR

code w.e.f. 01.01.2017. (Cir No.: NSDL/TIN/12017/001)

Crackdown on “suspicious” bank lockers: The IT department has started a crackdown on “suspicious” bank

lockers after searches and raids revealed that these were being used to stash illegal cash and jewellery.

Case Laws

Supreme Court admits SLP on levy of late TDS / TCS return filing fees u/s. 234E of the Income Tax Act.

Case Rashmikant Kundalia and another Vs Union of India.

Notice issued u/s 147 in respect of an entity which ceases to exist by virtue of amalgamation order under section

394 of the Companies Act - would be illegal and unsustainable.

Delhi High Court in case of [BDR Builders Pvt. Ltd. Vs. The ACIT].

EzyBiz India

Direct Taxation News

CBDT Circulars/Notifications

Rates of TDS deduction on salary: The CBDT has issued a Circular which contains the rates of deduction of

Income Tax from the payment of income chargeable under the head "Salaries" during the financial year 2016-

17 and explains certain related provisions of the Act.

CBDT has put in abeyance a recent circular clarifying the indirect transfer provisions, which had led to

retrospective tax cases like that of Vodafone. CBDT said the matter is now under consideration.

Principle for determination of Place of Effective Management (POEM): CBDT, on 24th January, 2017, has

issued a Circular of Guiding Principle for determination of Place of Effective Management (POEM) of a

company. it will be effective from 01.04.2017 and apply from AY 2017-18 onwards.

Implementation of GAAR from assessment year 2018-19 onwards: CBDT issued Clarifications on

implementation of GAAR provisions under the Income Tax Act, 1961 that it shall be effective from assessment

year 2018-19 onwards. The necessary procedures for application of GAAR and conditions have been enumerated

in Rules 10U to 10UC of the Income-tax Rules, 1962.

CBDT issues 12 FAQs on PMGKY; IDS-2 not applicable for jewellery or immovable property: CBDT

issues a set of 12 FAQs for Pradhan Mantri Garib Kalyan Yojana, 2016 (‘PMGKY’).

• CBDT clarifies that undisclosed income deposited in an account maintained with bank/ post office (like

savings, RD, FD, PPF account) is eligible for the Scheme;

• Further clarifies that no declaration under the Scheme can be made in respect of income which is

represented in the form of investment in any asset like jewellery, stock or immovable property

International Taxation

EzyBiz India

Ministry of Finance had issued a press release on signing of a Protocol to amend the Double Taxation Avoidance

Convention (DTAC) between India and Kazakhstan.

In a major relief to foreign investors, the government clarified that income arising from transfer of unlisted

shares by certain categories of alternative investment funds will not be liable for taxation.

CBDT has signed two more unilateral advance pricing agreements (APAs) with Indian taxpayers as it looks to

reduce litigation by providing certainty in transfer pricing. It pertains to the information technology and

automobile sectors.

Chinese telecom co's receipts for supply of ‘embedded-software’, not royalty

• Delhi HC upholds ITAT order, consideration received by assessee (a Chinese telecom company) for supply of

software to Indian companies, not royalty for AYs 2004-05 to 2009-10.

• HC Rejects Revenue’s stand that software was a 'copyright' in terms of Explanation 2(v) to Sec 9(1)(vi) of the

Act and also under Article 12(3) of India-China DTAA and since assessee (Chinese company) had assigned the

customers ‘the right to use the software’, the payment constituted ‘royalty’

• HC Notes that software was an integral part of the telecom equipment supplied by assessee, further “The

supplies made (of the software) enabled the use of the hardware sold…. without the software, hardware use was

not possible

• Accordingly, HC holds that software supply was in the nature of sale of goods i.e. transfer of ‘copyrighted

article’ and not transfer of ‘copyright’ itself

• HC clarifies that separate invoicing did not imply that it was royalty payment, also the nomenclature

is irrelevant

Indirect Tax Notification

EzyBiz India

GST

GST council update: Taxpayer turnover less than 1.5 crores, 90% assessment to states and 10% with centre.

Taxpayer turnover more than 1.5 crore, 50:50 powers with centre and states.

Temporary use of business assets/services for private or non-business use is not Deemed Supply in Revised

GST Model Law.

In Revised GST Model law, limit for cognizable & Non- bailable offences has been reduced from 2.50 cr to 1 cr.

In GST era, tax evasion up to Rs. 2 cr a bailable offence. To make goods and services tax regime less

onerous, the Centre and states have decided to water down the penal provisions.

In case of default in filing of GST Returns, notice will be issued to defaulter to file returns in 15 days.

Under GST Supplies to or by SEZ Developer/Unit to be deemed as Inter state Supplies. Supplies to SEZ

to be Zero Rated with facility of Refund for tax paid.

GST Enrollment Start Date is 01-02-2017 for New registration under VAT/Service Tax/Central Excise after

August 2016.

Service Tax

The Central Board of Excise & Customs, INDIA has issued Notification No. 46/2016-ST, 47/2016ST, 48/2016-

ST and 49/2016-ST on November 9, 2016 making service of online information and database access or

retrieval ('OIDAR Services') provided by a person located outside India to a person located in India liable

to service tax with effect from December 1, 2016.

Indirect Tax Notification

EzyBiz India

CBEC rationalizes abatement for tour operator services Notification No. 4/2017-Service Tax.

The CBEC has notified the Service Tax (Fifth Amendment) Rules, 2016 which shall come into force on the

date of their publication in the Official Gazette.

DVAT

No luxury tax on sale of luxury items subject to DVAT: Delhi High Court-Rule 3(2)(b)(ii) of the Delhi Tax

on Luxury Rules, 1996 Mandating Banquet Hall Owners to include entire value of turnover to determine

Luxury Tax regardless of whether substantial part or whole of it is subjected to VAT levy is ultra vires.

Extension to 13.02.2017 of last date to file DVAT-16, DVAT-17 & DVAT- 48 for Q3 of 2016-17.

CIRCULAR NO.21 dated 27.01.17.

Case Laws

Supreme Court has held that power of the Sales Tax Commissioner to extend the time to pass an order on

assessment is to be exercised before the normal period of assessment expires.

[State of Punjab vs. M/s. Shreyans Indus Ltd.]

Trade discount is deductible under VAT even if it is given subsequent to sale via credit note:

[Supreme Court of India]

Regulatory News

EzyBiz India

MCA/Companies Act

MCA notified Fast Track Mergers [w.e.f. 15/12/2016]: Simplified procedure for amalgamation or merger of

companies set out in sec-233 under Companies Act-2013.

Applying for PAN / TAN will be compulsory for all fresh incorporation applications filed in the new version

of the SPICe form on or after 23 January 2017.

NCLT doesn’t have powers to grant exemption from holding meeting wherein M&A Scheme to be

considered. [2017] 77 taxmann.com210 (NCLT - New Delhi).

The National Company Law Tribunal (NCLT) admitted first application on Wednesday an insolvency petition

filed by UB Engineering Ltd (UBEL), part of the Vijay Mallya-owned UB Group.

MCA vide its notification dated 26th December, 2016 has notified the Companies (Removal of Names of

Companies from the Register of Companies) Rules, 2016

RBI

RBI has removed the limit on Cash Withdrawal for Current Account, CC A/c & OD A/c. However, limit for

saving account of Rs. 24000/week will continue. But, can withdraw from ATM at a time.

RBI has notified amendment to Schedule 5 to the FEMA in respect to Purchase and sale of securities other than

shares or convertible debentures of an Indian company by a person resident outside India.

RBI vide its press release has announced Issuance of 28 days and 56 days Cash Management Bills under Market

Stabilization Scheme (MSS).

Regulatory News

EzyBiz India

SEBI

SEBI relaxes rules for angel funds to boost start-up funding .To give a fillip to start-up funding; markets

regulator SEBI has relaxed its rules for investment by angel funds.

SEBI on 5th January, 2017 has issued a circular on "Guidance note on Board Evaluation" in order to give more

clarity on the process of Board Evaluation and guidance.

SEBI has decided to reduce the fees payable by broker by 25% i.e. from Rs.20/- per crore of turnover to Rs.15/-

per crore of turnover.

Capital market regulator Securities and Exchange Board of India (SEBI) is set to allow purchase of Mutual

Fund (MF) units through e-wallets.

Others

Govt notified that the deposits made under the Special Deposit Scheme for Non-Government Provident,

Superannuation and Gratuity Funds shall with effect from 1 January, 2017 to 31 March, 2017, bear interest at

8.0% (eight per cent).

Govt has barred cooperative banks from accepting deposits under the Pradhan MantriGaribKalyan Deposit

Scheme (PMGKDS). There have been irregularities discovered in cooperative banks during the demonetization

process that the income tax department is investigating.

Who We Are EZYBIZ India is a Tax 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 Chartered Accountants, Company secretaries, Ex-Bankers, corporate Lawyers, 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

• Public/Pvt Ltd Co. Regn.

• LLP Regn.

• Firm Regn.

• LO/BO/PO/WOS

• VAT/CST Regn.

• Service Tax/ Excise Regn.

• IEC license

• NGO/ Cooperative Society Regn.

• FRRO Regn.

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 including International Tax

• Indirect tax Advisory & Compliance

• Transfer pricing Advisory, Study, assessment and Documentation

• Direct/Indirect Tax Assessment and Litigation.

• FEMA/RBI/ ROC advisory and Compliance

Assurance/ Certification

Services• Statutory/Internal

/Tax/Transfer pricing Audit

• Tax and Regulatory Certification

• Secretarial Compliance

OTHER SERVICES

• Funding From Banks

• Accounts outsourcing

• Payroll processing

• Financial Planning

OUR SERVICES

Contact Us

EzyBiz India

EZYBIZ India CONSULTING LLP (Redefining Consultancy)

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

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