MCA Knowledge Centre
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.
I would like to begin by wishing all the readers a very Happy New Year and a productive 2016.The year 2015 has been a good year for the industry from the direct taxes perspective with the government actively working to simplify the provisions of the Act and clarifying matters of litigation such as applicability of MAT on Foreign Institutional Investors.
Rampgreen Solutions Pvt Ltd. v CIT, Delhi HC,2015
This case law discusses the scope of functional differences filter while carrying out a comparability study for comparables within the same industry sector. The case law has elaborated how companies engaged in Knowledge Process Outsourcing (KPO) services cannot be used as comparables for conducting a Transfer Pricing study of a company engaged in Business Process Outsourcing (BPO) services, even though both KPO and BPO services fall within the broader definition of Information Technology Enabled ServicesSector.
Novo Nordisk India Pvt Ltd. v DCIT
The assessee is an Indian company (Subsidiary of a Foreign Co.) engaged in the business of pharmaceutical products, dealing mainly in the area of diabetes treatment drugs. The assessee was purchasing finished pharmaceutical products from its AE in Denmark and distributing the same in India (Business Category – 1). The assessee was also purchasing finished goods from an unrelated Indian private limited company and distributing these products in India (Business Category – 2).