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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.
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Content
1 Due Dates for month of July, 2016
2 Taxation News- Direct Tax
3Taxation News- Indirect Tax
4 Regulatory News
EzyBiz India
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Important Due Dates
EzyBiz India
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.
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Important Due Dates
EzyBiz India
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.
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Changes in schedule for payment of Advance Tax
EzyBiz India
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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EzyBiz India
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.
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Income Tax
EzyBiz India
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.
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Income Tax
EzyBiz India
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.
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Income Tax
EzyBiz India
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)].
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International Taxation- Case Study
EzyBiz India
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.
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Indirect Tax Notification
EzyBiz India
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 }
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Indirect Tax Notification
EzyBiz India
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.
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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%.
EzyBiz India
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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).
EzyBiz India
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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
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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
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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
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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: [email protected]@ezybizindia.in,
W: www.ezybizindia.in
Our Affiliate Firm:
ANIL AGRAWAL & COMPANY
(Chartered Accountants)
EzyBiz India
http://www.ezybizindia.in/
