On 8th November, the Prime Minister addressed the nation. Most Indians expected the PM to talk about the security threat to India arising out of the consistent Pakistan sponsored attacks on our border. However, nobody would have been ready for what we all were in for. That speech has shaken the whole of the country. Fans of the PM are ecstatic and over the moon. The opposition leaders are confused and demoralised as they cannot officially pat the government on its back and they are damned if they criticize the drive against black money. The demonetisation of Rs. 500 and Rs. 1,000 currency notes so suddenly and virtually overnight has been the talk of the town for the past few days.
MCA Knowledge Centre
CBDT Notifies Cost Inflation Index for FY 2015-16
Cost Inflation Index notified for Financial Year 2015-16
Recently the Central Board of Direct Taxes ( CBDT ) has notified the Cost Inflation Index (CII) for the current financial year (2015-16) at 1081. This index figure is essential for computing long term capital gains on transfer of any long term capital asset.
Sword Global India Private Limited vs ACIT
The Assessee filed its return for AY 2007-08 after claiming deduction u/s 10B.The AO after verification of income filed by the Assessee completed assessment u/s 143(3) and accepted return furnished by the assesssee.The DCIT initiated reassessment u/s 147 by issuing notice u/s 148. The said notice did not state whether necessary sanction was obtained and the reason for reassessment proceedings. On assessee's request reasons for the same was furnished.The Assessee subsequently filed writ petition before Madras HC.
PAN made mandatory in many cases
The Ministry of Finance has, via a Press Release issued on 15th December, amended Rule 114B of the Income Tax Rules, 1962. This amendment will come into effect from 1st January, 2016.The Rule is in relation to quoting of PAN for various specified transactions. This tax alert highlights the amendments.
Payments to non residents - amendments in requirements for furnishing information
The Ministry of Finance has, vide Notification dated 16th December, 2015 amended Rule 37BB of the Income Tax Rules, 1962. This amendment will come into effect from 1st April, 2016. The amendment is in relation to payments made to non-residents. Some of the changes made bring significant relief to business houses as they do away with the requirement of onerous documentation at the time of making payments for various transactions.
New Method for computing the disallowance u/s 14A
The Central Board of Direct Taxes on 2nd June 2016 vide notification number [Notification No. 43/2016] [F.No. 370142/7/2016-TPL] has amended Rule 8D of the Income tax Rules, 1962 which lays down the method of computation of disallowance u/s 14A of the Income tax Act, 1961.
Service Tax on Construction and selling of residential flats
Recently, the Delhi High Court in a landmark judgement in the case of Suresh Kumar Bansal Vs UOT  70 taxmann.com 55 (Delhi) has held that service tax cannot be levied on construction of residential complex service. In an interesting decision, the Court has upheld the levy of the tax but has but quashed the tax as there was no statutory measure to ascertain the value of services involved in this composite contract which involved sale of undivided share of land.
Aug 10 2015
The year 2015 has ushered in a new era for compliance service providers with the introduction of two sets of new standards issued by the Ministry of Corporate Affairs (MCA) & the Central Board of Direct Taxes (CBDT) respectively. The MCA notified the Companies (Indian Accounting Standards) Rules, 2015 in February 2015 laying down the roadmap for application of IFRS converged Indian Accounting standards (Ind - AS) along with the Ind - AS standards for application by companies other than Banking Companies, Insurance Companies and Non - Banking Finance Companies (NBFCs). The CBDT vide Notification no. 32/2015 dated 31 - 03 - 2015 has notified 10 Income Computation and Disclosure Standards (ICDS) effective from 01 - 04 - 2015, applicable from Assessment Year 2016 - 17 onwards to be followed by all the assessees, following the mercantile system of accounting. The Ind - AS roadmap provides for a phase wise implementation with Ind - AS up for voluntary adoption for FY 2015 - 16 and becoming mandatory for certain class of companies from FY 2016 - 17 onwards.