o o o Audit Direct Taxes Indirect Taxes

o o o Audit Direct Taxes Indirect Taxes Company Law Management Consultancy S P C M & ASSOCIATES Chartered Accountants MONTHLY NEWSLETTER MARCH 2016 Sincerity Professionalism & Commitment is our Motto EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX UPDATES ARTICLE - COPYRIGHT ONLINE CST DECLARATION HIGHLIGHTS OF UNION BUDGET - 2016 C. A. Suhas P. Bora 1211 B, Shukrawar Peth, Subhash Nagar Lane No. 4, Pune 411 002, Ph. : (020) 24479119 T elefax (020) 24486663 C. A. Pradip M. Katariya 207, Nav Maharashtra House, 43, Shaniwar Peth, Pune 400 030 Telefax : (020) 24478059/69 Email : abhay@spcm. in DISCLAIMER : Every effort has been made to ensure accuracy in the information. The publishers do not hold themselves responsible for errors that may have arisen. Please take professional advice for further implementation. All rights reserved. STRICTLY FOR PRIVATE CIRCULATION BY INVITATION

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER Editorial - CA. Suhas P. Bora Dear All, We in the financial world await the month of Feb with anticipation and trepidation in equal measures. Especially us, the chartered accountants, as we get busy in airing our views on the union budget and then the wait begins. Well, now the wait has ended and how! The shape of things to come was spelt out in the speech of the President of the Republic. Shri Pranab Mukherjee outlined the growth agenda in no uncertain terms and this was followed by the Railway Budget. The minister railways Mr. Suresh Prabhu stated that there was a need to ‘reimagine the conventional ways of solving things. We plan to do this by drawing upon our inherent strengths. ’ He spelt out the key themes viz. Reorganize, Restructure Rejuvenate as the mantras to Indian Railways. It is against this background that the finance minister presented his 3 rd Budget on 29. 02. 2016. The finance minister while emphasizing simple tax structure in fact complicated the tax code. . . there are 100+ amendments to the Income tax Act in finance bill, 2016 (highest number of amendments in the past decade). Significant tax proposals include disclosure of assets, mini kar vivad, dealing with retrospective taxation, Easwar Committee recommendations acceptance, dual taxation of dividends, change in holding period for LTCG, whoa. . , . . We have our hands full!! This means a lot of head scratching/ sleepless nights for tax payers & tax professionals alike! Interesting times ahead. A three year tax holiday has been introduced for startups by keeping minimum alternate tax leviable. Introducing 10 percent tax on patent companies is a big boost to the IPR related companies and it looks like it is in line with international practise. Overall prognosis of the budge should wait as the jury is still out, but the impression is that this is a budget which does not go anywhere. CA. Suhas P. Bora EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

SPCM & ASSOCIATES MONTHLY NEWSLETTER MARCH 2016 DUE DATE CHART MONTHLY DUE DATES REGISTER FOR MARCH 2016 Due dates March 2016 ACT SERVICE TAX Particulars E- Payment of Service tax by Companies for Feb 2016 7 th March 2016 INCOME TAX TDS/TCS Payment for the month of Feb 2016 15 th March 2016 PROVIDENT FUND Provident Fund Payment for the month of Feb 2016 15 th March 2016 INCOME TAX 21 st March 2016 EMPLOYEE STATE INSURANCE CORPORATION Payment of Last Installment of Advance Tax for AY 201617 Employee State Insurance Corporation Payment for the month of Feb 2016 21 st March 2016 MVAT/CST E-Payment of Monthly Tax & WCT TDS for Feb 2016 31 st March 2016 MVAT/CST PROFESSION TAX E-filling of Monthly Returns for Feb 2016 E-Payment of Monthly Tax for Feb 2016 31 st March 2016 LUXURY TAX E-Payment of Monthly Tax for Feb 2016 31 st March 2016 SERVICE TAX E- Payment of Service tax by Individual, Firm, LLP, Proprietor for Jan 2016 to March 2016 31 st March 2016 SERVICE TAX E- Payment of Service tax by Companies for March 2016 31 st March 2016 PROFESSION TAX E-Filing of Yearly Returns for March 2015 to Feb 2016 6 th NOTE: - If Due date is on Sunday or Public Holidays, the next working day is to be considered as due date. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER A. Notification and Circulars Income Tax Updates - Deepali R. Shah INCOME TAX UPDATES 1. CBDT Issues Revised Guidelines For Stay Of Demand By AO Till CIT(A)’s Order The CBDT has issued Office memorandum dated 29. 02. 2016 by which it has revised Instruction No. 1914 dated 21. 03. 1996 and issued fresh guidelines for stay of demand at the first appeal stage In a case where the outstanding demand is disputed before CIT (A), the assessing officer shall grant stay of demand till the disposal of first appeal on payment of 15% of the disputed demand. Lower or higher amount of payment allowed with prior permission of Pr. CIT / CIT. 2. Section 80 CCD of the Income-tax Act, 1961 – Central Government hereby notifies the 'Atal Pension Yojana (APY)' as Notified Pension Scheme In exercise of the powers conferred by sub-section (1) of section 80 CCD of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the 'Atal Pension Yojana (APY)' as published in the Gazette of India, Extraordinary, Part I, section 1, vide number F. No. 16/1/2015 -PR dated the 16 th October, 2015 as a pension scheme for the purposes of the said section. Notification no. SO 529(E) [NO. 7/2016 (F. NO. 173/394/2015 -ITA-I)] 3. CBDT Directs AOs To Strictly Follow S. 154 Rectification Time Limits The CBDT has issued Instruction No. 01/2016 dated 15. 02. 2016 in which it has directed Assessing Officers to strictly follow the time limit of six months prescribed under section 154(8) of the Income-tax Act, 1961 to pass rectification orders. The CBDT has also directed the supervisory officers to monitor the adherence to the prescribed time limit and initiate suitable administrative action where failure to adhere to the prescribed time limit is noticed 4. CBDT Directs AOs To Pass S. 154 Rectification Orders In Writing The CBDT has issued Instruction No. 02/2016 dated 15. 02. 2016 in which it has directed Assessing Officers to pass rectification orders in writing and serve a copy on the assesseee and not just make an entry on the AST system. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER Income Tax Updates - Deepali R. Shah B. Recent Reported Decisions - High Court and ITAT 1. CIT vs. Hiralal Doshi (Bombay High Court) S. 271(1)(c): Penalty is not leviable on income declared during survey and offered in return. Law laid down in Mak Data 358 ITR 593 (SC) is distinguishable on facts and not universally applicable. A mere change of head of income does not attract penalty. In the instant case, a sum of Rs. 40. 74 lakhs had never been disclosed to the Revenue. During the course of survey, the assessee therein had surrendered that amount with a covering letter that this surrender has been made to avoid litigation and buy peace with the Revenue. In the aforesaid circumstances, the Apex Court held that the words like “to avoid litigation and buy peace” is not sufficient explanation of an assessee’s conduct. It held that the assessee had to offer an explanation for the concealment of income and/or furnishing of inaccurate particulars of income by leading cogent and reliable evidence. The Apex Court further records that in the facts of the case before it the surrender of income was not voluntary but was made only on the account of detection by the Assessing Officer during the course of survey. Further, the Apex Court also records the fact that the survey was conducted more than 10 months before the assessee filed its return of income 2. Parle Pet Pvt. Ltd. vs. DCIT [(2016) Tax. Corp(LJ) 9968 (ITAT-MUMBAI)] Sec. 112 being beneficial in nature, LTCG should be worked out scrip-wise and tax should be charged without indexation or with indexation whichever is beneficial to assessee Sec 112 is not only a beneficial provision but is also mandatory and if several transaction have taken place by way of sale of share, assessee could avail the benefit of indexation, in a few transaction and avail 10% tax rate in the remaining transaction. In DCIT vs. Savla Motor Agencies the coordinate bench had held that LTCG should be worked out as transaction-wise and tax should be charged at 10 % or 20% (i. e. without indexation/with indexation) whichever was more beneficial to the assessee. LTCG should be worked out transaction wise and tax should be charged at 10% or 20% (without indexation or with indexation) respectively whichever was more beneficial to the assessee. 3. Khubchandani Healthparks Pvt. Ltd vs. ITO (Bombay High Court) S. 147: Law laid down in DCIT vs. Zuari Estate Development and Investment Co 373 ITR 661 does not mean that in cases where no assessment order is passed and assessment is completed by Intimation u/s 143(1), the sine qua non to show that there is "reason to believe that income chargeable to tax has escaped assessment" is not required. It is open to the assessee to challenge a notice issued u/s 148 as being without jurisdiction for absence of reason to believe even in case where the assessment has been completed earlier by Intimation u/s 143(1) of the Act Where no assessment order is passed and assessment is completed by Intimation under Section 143(1) of the Act, the essential condition (sine qua non) to issue a reopening notice is reason to believe that income chargeable to tax has escaped assessment. In the above view, it is open for the petitioner to challenge a notice issued under Section 148 of the Act as being without jurisdiction for absence of reason to believe even in case where the Assessment has been completed earlier by Intimation under Section 143(1) of the Act EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

SPCM & ASSOCIATES MONTHLY NEWSLETTER MARCH 2016 Income Tax Updates - Deepali R. Shah 4. S. 12 AA: Non disposal of an application for registration before the expiry of six months as provided u/s 12 AA (2) results in deemed grant of registration The issue is with regard to the deemed registration of an application under Section 12 AA of the Income Tax Act. The High Court has taken the view that once an application is made under the said provision and in case the same is not responded to within six months, it would be taken that the application is registered under the provision. C. Unreported Decisions 1. DCIT v. Jagjit Singh Sayal (through legal heir), ITA No. 2274/M/2014 dt. 18/12/2015, AY 2010 -11 (ITAT Mumbai) Section 40(a)(ia) – Second proviso – Retrospective or prospective. Second proviso to section 40(a)(ia) was retrospective from 1 st April, 2005. If the payees had included the interest in their returns and paid taxes thereon, and if this was found to be factually correct, disallowance of the interest paid by the assessee to various parties on the ground that the assessee failed to deduct tax at sources on the said interest payments was to be deleted. 2. GSB Capital Markets Ltd. v. DCIT, ITA Nos. 307/Mum/2014 dt. 16/12/2015, AY 2010 -11 (ITAT Mumbai) Section 74/ 70 – Set off of loss – Different tax rates – Whether set off permissible. The Tribunal relying on the Explanatory Notes to Finance Act, 2002 which rectified the anomaly in section 70 and section 74 amended the said sections to provide that losses from transfer of short-term capital assets can be set off against any capital gains, whether short-term or long-term. Thus it was held that the assessee-company had rightly claimed the set off of brought forward loss arisen from the transfer of short-term capital asset of earlier year to be set off against the gains arising from transfer of longterm capital asset of current year. 3. Lands End Co-operative Housing Society Ltd. v. ITO, ITA No. 3566/M/2014 dated 15/1/2016, AY 2009 -10 (ITAT Mumbai) Principles of mutuality – Co-operative housing society – Transfer fees/ contribution to amenities. Relying on the decision of the jurisdictional HC in Darbhanga Mansion CHS Ltd wherein it was held that contribution towards common amenities fund was not taxable on the principle of mutuality. Thus the contribution towards the purpose of utilization for the common amenities of the society would also be exempt on the grounds of mutuality. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

SPCM & ASSOCIATES MONTHLY NEWSLETTER MARCH 2016 MVAT Updates - CA GOURAV OSWAL, CA NIKITA BAJAJ VAT UPDATES RECENT AMENDMENTS Trade Circular No 4 T of 2016 Dt. 05. 02. 2016 The Commissioner of Sales Tax, Maharashtra State, Mumbai has issued Trade Circular no 4 T of 2016 Dt. 05. 02. 2016 for modifications in Annexure A of Trade circular no 7 T of 2015 regarding submission of documents for registration. Following modifications are made in Annexure A of Trade circular 7 T of 2015 : If copy of PAN card is not available with the applicant, then the details of PAN obtained from website of the Income Tax Department may be accepted as proof of PAN of the person. Copy of Form no DIR 12 or list of present directors obtained from the website of the Ministry of Corporate Affairs and Copy of Certificate of Incorporation issued by the Registrar of Companies will suffice the requirement instead of Memorandum of Association or Articles of Association. Latest copy of MTNL/BSNL Landline Bill, First page of the passbook of Saving Bank Account or Certificate showing the address of the applicant issued by the manager of any Nationalized bank and latest copy of bill of domestic gas connection shall be allowed as proof of permanent residential address in addition to the documents mentioned earlier. Trade Circular No 5 T of 2016 Dt. 06. 02. 2016 The Commissioner of Sales Tax, Maharashtra State, Mumbai has issued Trade Circular no 5 T of 2016 Dt. 06. 02. 2016 for issuing guidelines for grant of refund claimed in Form e-501 and assessment thereof since there has been representations regarding the delay in receiving refunds. Commissioner has directed that refund claims of the dealer shall be processed and eligible refunds shall be granted as below: Where dealer is eligible to file Audit Report and refund application is filed before the due date of filing Audit Report – Within 45 days from the due date for filing of Audit Report. Where dealer is eligible to file Audit Report and refund application is filed after the due date of filing Audit Report – Within 45 days from the due date for filing of Refund Application in Form e-501. Where dealer is not eligible to file Audit Report – Within 45 days from the due date for filing of Audit Report. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER MVAT Updates - CA GOURAV OSWAL, CA NIKITA BAJAJ These instructions of grant of refund shall be applicable to the dealers eligible to file Audit Report in Form 704, dealers not eligible to file Audit report and PSI cases who have applied for refund in Form e-501. Assessment of dealers whose claim of refund is Rs 1 crore or below and who have filed application for refund in Form e-501 within shall be completed on or before 31 st December of the next financial year. Trade Circular No 6 T of 2016 Dt. 23. 02. 2016 The Commissioner of Sales Tax, Maharashtra State, Mumbai has issued Trade Circular no 6 T of 2016 Dt. 23. 02. 2016 regarding correction of mistakes made by the dealers during e-payment of taxes or miscellaneous refunds of excess payment of taxes. The procedure for correction of mistakes is laid down in sub-para (C) para 1 of Trade circular 7 T of 2013 which provided that the application for refund of excess amount of taxes shall be made at the end of the year containing the period for which the payment was made twice. The procedure is now amended to provide that the application for refund of double payment of taxes alongwith the Annexure A appended to the circular herewith can be made to the respective Jt. Comm. of Sales Tax (Nodal division) in Mumbai and Pune or concerned Jt Comm. Of Sales Tax (VAT-ADM)in mofussil areas after the due date of filing of return containing the period for which the payment is made twice and not after the end of the year. Trade Circular No 7 T of 2016 Dt. 25. 02. 2016 The Commissioner of Sales Tax, Maharashtra State, Mumbai has issued Trade Circular no 7 T of 2016 Dt. 25. 02. 2016 for bringing about changes in the automation processes and other procedural changes. The Maharashtra Sales Tax Department is developing a new automation system slated to go Live in a phased manner from 01 st May 2016. This includes changes in the processes of registration, filing of returns, applications for refund, requisitions for CST declarations as also changes in the processes of audit/assessments and appeals etc. The detailed proposed changes for each of the subject matter is explained in detail in the circular. B. RECENT NOTIFICATIONS 1. Notification No. VAT 1514 / CR-22 / Taxation-1 dtd 12. 02. 2016 Maharashtra State Government has issued Notification No. VAT 1514 / CR-22 / Taxation-1 dtd 12. 02. 2016 in relation to the private sector banks for the purpose of Rule 61 of the MVAT Rules 2005. The notification has specified 17 Private Sector Banks from whom bank guarantee shall be obtained for the purpose of Rule 61 of the MVAT Rules 2005. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

SPCM & ASSOCIATES MONTHLY NEWSLETTER MARCH 2016 MVAT Updates - CA GOURAV OSWAL, CA NIKITA BAJAJ C. GIST OF IMPORTANT DDQ’S 1. The Indian Performing Rights Society Limited No DDQ 11/2006/Adm 5/82 /B 1 dt. 04. 02. 2016 The transaction of granting license is a transfer of right to use/enjoy/exploit the rights contained in the copyrights. It is a “deemed sale” for the purpose of MVAT Act 2002. The rate of transaction is 5% from 01. 04. 2010 onwards. The request for prospective effect is rejected. 2. K. K. Nag Ltd No. DDQ/11 -2012/Adm. 6/17/B-2 dt. 04. 02. 2016 Full Input Tax Credit would not be available on the purchases of coal, baggasse, briquettes and agro waste used for generation of steam used in the moulding process. These purchases are used as fuel and therefore the provisions of sub-rule (1) of Rule 53 would apply. Accordingly there would be retention @ 3% of the corresponding purchase price and such amount would be reduced from the amount of set-off otherwise available in respect of the said purchases. 3. Eco Foam Products and Services-No. DDQ 11/2009/Adm 3/24/B-3 dt. 17. 2. 2016 The product “Rubberised Coir Pad” is covered by the schedule entry C-24 of the MVAT Act 2002 and therefore chargeable to tax @ 5% after 01. 04. 2010. Despite the product being covered by the schedule entry C-24 of the MVAT Act 2002, in view of the tax collection and payment @ 12. 5% , the tax rate on impugned product would be 12. 5% for the period in which the applicant has collected and paid tax @ 12. 5%. 4. 3 A Composites India Pvt Ltd. No. DDQ/11 -2015/Adm 6/5/B 4 dt 17. 02. 2016 The product “Aluminium Composite Sheets” sold under the description “ALUCOBOND 101 WHITE 16” are the aluminium composite panels and accordingly advertised by the applicant. The rate of tax on Aluminium Composite Panels has been dealt in the determination order No DDQ-11/2012/Adm-6/49 -51/B-5 dt 05. 01. 2015 in the case of M/s Kevin Impex Pvt Ltd, M/s Prime Bond Industries and M/s Eurobond Industries Pvt Ltd. As a result, the present application becomes non-maintainable. The request for prospective effect is therefore rejected. D. IMPORTANT JUDGEMENTS 1. Whether service tax collected forms part of sale price? The appellant is in the business of running a restaurant and bar where food and liquor is served. It also has a lodging facility. Service tax collected separately by the appellant cannot form part of the sale price u/s 2(25) of the MVAT Act 2002 and hence VAT cannot be levied on the service tax portion collected by the appellant. (VAT Second Appeal No. 87 of 2014 dated 03 rd February, 2016 M/s Hotel Leela Venture Ltd vs. The State of Maharashtra EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

SPCM & ASSOCIATES MONTHLY NEWSLETTER MARCH 2016 SERVICE TAX CORNER - CA. CHETAN PARAKH CA. PRERNA DHUMAVAT CHANGES UNDER SERVICE TAX PROPOSED IN FINANCE BILL 2016 1) Service tax another surcharge from 01 st June 2016 - “Krishi Kalyan Cess” – 0. 5 %. Thus Service tax now effectively will be 14%+0. 5% = 15 % 2) Legal Service now removed from Reverse Charge Mechanism and brought to direct Service Tax at above effective rate from 01 st April 2016. 3) The services provided by mutual fund agent/distributor to a mutual fund or asset management company, are being made taxable under forward charge (removed from Reverse Charge Mechanism) with effect from 1 st April, 2016, so as to enable the small sub-agents down the distribution chain to avail small scale exemption having threshold turnover of Rs 10 lakh per year. This will reduce burden of Mutual fund and other similar organisation. 4) From 1 st March 2016 Contract pertaining to monorail or metro construction, erection, commissioning or installation of original works will now be liable at 5. 6% effective rate plus two surcharge. 5) Service provided by ropeway, cable car or aerial tramway for transport of passenger will now be liable to service tax @ above rate from 01 st April 2016. 6) Service tax on transportation of passengers by Air-conditioned Stage carrier will be liable to tax from 01 st June 2016 @ 5. 6% effective rate plus two surcharge. 7) Impose Service Tax on services provided by them by way of transportation of goods by a vessel from outside India up to the customs station in India with effect from 1 st June, 2016 so as to complete the credit chain and enable Indian Shipping Lines to avail and utilize input tax credits. 8) With effects from 01 st April 2016, the following service are now exempted ---Service provided by: -a) Pension Fund Regulatory and Development Authority (PFRDA) b) Employees’ Provident Fund Organisation (EPFO) c) Insurance Regulatory and Development Authority (IRDA) d) Securities and Exchange Board of India (SEBI) e) services of general insurance business provided under ‘Niramaya’ Health Insurance scheme f) National Centre for Cold Chain Development under Department of Agriculture, Cooperation and Farmer’s Welfare, g) Biotechnology Industry Research Assistance Council (BIRAC) h) way of skill/vocational training by training partners under Deen Dayal EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER SERVICE TAX CORNER - CA. CHETAN PARAKH CA. PRERNA DHUMAVAT Upadhyay Grameen Kaushalya Yojana i) Directorate General of Training, Ministry of Skill Development & Entrepreneurship j) a performing artist in folk or classical art forms of music, dance or theatre is being enhanced from Rs 1 lakh to Rs 1. 5 lakh. 9) From 1 st March 2016 the construction service in respect of housing project (Urban) Mission/Pradhan Mantri Awas Yojana; low cost houses up to carpet area 60 sq. metres=(645 Square feet) under “Affordable housing in Partnership” ; low cost houses up to a carpet area of 60 square metres in a housing project under any housing scheme of the State Government is exempted from service tax. 10) From 01 st April 2016 Service Tax on single premium annuity (insurance) policies is being reduced from 3. 5% to 1. 4% of the premium. 11) From 01 st March 2016 services provided by Indian Shipping lines by way of transportation of goods by a vessel to outside India, will be entitle for Cenvat credit on inputs; input services and capital goods credit. 12) Benefit from retrospective effect i. e. 01 st April 2015 (earlier withdrawn from that date) - Exemptions on services of: a) construction provided to the Government, a local authority or a governmental authority, in respect of construction of govt. schools, hospitals etc. b) construction of ports, airports. Thus reduce service tax from 5. 6 % to “zero”. 13) Services provided by way of construction, maintenance etc. of canal, dam or other irrigation works provided to bodies set up by Government but not necessarily by an Act of Parliament or a State Legislature, during the period from the 1 st July, 2012 to 29 th January, 2014, are being exempted from Service Tax with consequential refunds, subject to the principle of unjust enrichment. Thus reduce service tax from 5. 6 % to “zero”. 14) Services provided by the Indian Institutes of Management (IIM) by way of 2 year full time Post Graduate Programme in Management (PGPM) (other than executive development programme), Integrated Programme in Management and Fellowship Programme in Management (FPM) are being exempted from Service Tax with effect from 1 st March, 2016. Now exempted. 15) “One Person Company” and HUF can from 01 st April 2016 pay quarterly Service tax. 16) Interest rates on delayed payment of duty/tax across all indirect taxes are being rationalized and made uniform at 15%, except in case of Service Tax collected but not deposited to the exchequer, in which case the rate of interest will be 24% from the date on which the Service Tax payment became due. ---( In case of assessees, whose value of taxable services in the preceding year/years covered by the notice is less than Rs. 60 Lakh, the rate of interest on delayed payment of Service Tax will be 12%. ) – with effect from Finance Bill receives the assent of the President. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER SERVICE TAX CORNER - CA. CHETAN PARAKH CA. PRERNA DHUMAVAT 17) Cenvat credit on input service will now be available on following abatements ( From 01 st April 2016) a) Credit of input services is being allowed on transport of passengers by rail b) Credit of input services is being allowed on transport of goods, other than in containers c) Credit of input services is being allowed on transport of goods in containers by rail at a reduced abatement rate of 60%. (In effect tax will first increase by 1. 4 % and then cenvat credit available) d) Credit of input services is being allowed on transport of goods by vessel 18) The abatement rate in respect of services by way of construction of residential complex, building, civil structure, or a part thereof, is being rationalized at 70% by merging the two existing rates. Thus effective rate 4. 2 % plus above two surcharges. From 1 st April 2016 19) The abatement on shifting of used household goods by a Goods Transport Agency (GTA) is being rationalized at the rate of 60%, without CENVAT credit on inputs, input services and capital goods. Thus the effective tax rate is 5. 6 %. From 1 st April 2016. 20) The abatement rate on services of a foreman to a chit fund is being rationalised at the rate of 30%, without CENVAT credit on inputs, input services and capital goods. Thus the effective tax rate is 9. 8 %. From 1 st April 2016. 21) A condition mandating inclusion of cost of fuel in the consideration for availing abatement on the services by way of renting of motor-cab is being prescribed with effect from 1 st April, 2016. 22) Indirect tax Dispute Resolution Scheme, 2016, wherein a scheme in respect of cases pending before Commissioner (Appeals), the assessee, after paying the duty, interest and penalty equivalent to 25% of duty, can file a declaration, is being introduced. In such cases the proceedings against the assessee will be closed and he will also get immunity from prosecution. 23) The annual return will also have to be filed by Service Tax assessees, above a certain threshold, taking total number of returns to three in a year for them. This change shall come into effect from 1 st April, 2016. 24) Section 73 of the Finance Act, 1994 is being amended so as to increase the limitation period from 18 months to 30 months for short levy/non levy/short payment/non-payment/erroneous refund of Service Tax. 25) The power to arrest in Service Tax is being restricted only to situations where the tax payer has collected the tax but not deposited it to the exchequer, and that too above a threshold of Rs 2 crore. The monetary limit for launching prosecution is being increased from Rs. 1 crore to Rs. 2 crore of Service Tax evasion. DUE DATE INCOME TAX MVAT SERVICE ARTICLE ONLINE CST HIGHLIGHT OF UNION EDITORIAL CHART UPDATES TAX COPYRIGH DECLARATION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER COPYRIGHT – CA MANOJ JAIN & CS ADITI DEO THE RIGHT OF COPY In all over India these days a much discussed topic are "Make In India" & " Start Up". Everyone is searching for new ideas and inventions to start the business and making profit for his own and ultimately for our Nation - incredible India! In this article we are discussing a thing which gives a creator or a author a bundle of rights including rights of reproduction, communication to the public, adaptation and translation of the work. It means the sole right to produce or reproduce the work or any substantial part thereof in any material form. Which will give the security to the author and he can enjoy the credit of the work fully. No can copy the work which is done with so much of hard work and efforts and of course with intelligence and money. By reading this article you can stop other for being copy cat. Here is the information about your right i. e. copyright. MEANING: Copyright is a right given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings. In fact, it is a bundle of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work. It means the sole right to produce or reproduce the work or any substantial part thereof in any material form whatsoever. Copyright ensures certain minimum safeguards of the rights of authors over their creations, thereby protecting and rewarding creativity. Creativity being the keystone of progress, hence every person encourages the same. Economic and social development of a society is dependent on creativity. The protection is provided by copyright to the efforts of writers, artists, designers, dramatists, musicians, architects and producers of sound recordings, cinematograph films and computer software and it creates an atmosphere conducive to creativity, which induces them to create more and motivates others to create. The copyright act aims at protecting the owners of the copyright from unethical use by the others. It is a negative right which disallows the others to use the copyright work without the permission of the owner of the copyright. It also aims at rewarding the copyright owner. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

SPCM & ASSOCIATES MONTHLY NEWSLETTER MARCH 2016 COPYRIGHT – CA MANOJ JAIN & CS ADITI DEO Copyright subsists throughout India in the following classes of works: • Original literary, dramatic, musical and artistic works; • Cinematograph films; and • Sound recordings. • Computer software. Term of Copyright: The copyright protection is granted to the Literary, dramatic, musical or artistic works for a term of life time of the author plus 60 years beyond his life i. e. after the death of the author. If there is a joint authorship, the term of 60 years commences after the death of the author who dies last. In case of posthumous, anonymous and pseudonymous works, photographs, cinematograph films, sound recordings, works of Government, public undertaking and international organizations, the term of protection is 60 years from the beginning of the calendar year next following the year in which the work has been first published. The broadcasting reproduction right given to the broadcasting organization is for a term of 25 years from the beginning of the calendar year next following the year in which the broadcast is made. If any performer appears or engages in any performance, he has a special right in relation to such performance called performers right to be enjoyed for a period of fifty years. Registration of Copyright: The copyright registration can be done manually as well as online for the manual submission the office is situated at 4 th Floor Jeevan Deep Building , New Delhi- 110 001. The applications for registration of works can be filled at the counter provided at the Copyright Office from 2. 30 P. M. to 4. 30 P. M. from Monday to Friday. The applications are also accepted by post Any individual who is an author or rights owner or assignee or legal heir can file application for copyright of a work either at the copyright office or by post or by e-filing facility from the copyright Office web-site www. copyright. gov. in EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER COPYRIGHT – CA MANOJ JAIN & CS ADITI DEO Registration can be done in following six catagories : 1. Part I Literary works other than computer programmes, tables and compilations including computer data bases and dramatic works; 2. Part II Musical works; 3. Part III Artistic works; 4. Part IV Cinematograph films; 5. Part V Sound Recording; and 6. Part VI Computer programmes, tables and compilations including computer data bases. The procedure for registration is as follows: • Application for registration is to be made on Form IV (Including Statement of Particulars and Statement of Further Particulars) as prescribed in the first schedule to the Rules; • Separate applications should be made for registration of each work; • Each application should be accompanied by the requisite fee prescribed in the second schedule to the Rules; and • The applications should be signed by the applicant or the advocate in whose favour a Vakalatnama or Power of Attorney has been executed. The Power of Attorney signed by the party and accepted by the advocate should also be enclosed. Each and every column of the Statement of Particulars and Statement of Further Particulars should be replied specifically. Both published and unpublished works can be registered. Copyright in works published before 21 st January, 1958, i. e. , before the Copyright Act, 1957 came in force, can also be registered, provided the works still enjoy copyright. How long I have to wait to get my work to get registered by the Copyright office? After you file your application and receive diary number you have to wait for a mandatory period of 30 days so that no objection is filed in the Copyright office against your claim that particular work is created by you. If such objection is filed it may take another one month time to decide as to whether the work could be registered by the Registrar of Copyrights after giving an opportunity of hearing the matter from both the parties. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER COPYRIGHT – CA MANOJ JAIN & CS ADITI DEO If no objection is filed the application goes for scrutiny from the examiners. If any discrepancy is found the applicant is given 30 days time to remove the same. Therefore, it may take 2 to 3 month’s time for registration of any work in the normal course. The cooperation of the applicant in providing necessary information is the key for speedy disposal the matter. Three copies of published work may be sent along with the application. If the work to be registered is unpublished, a copy of the manuscript has to be sent along with the application for affixing the stamp of the Copyright Office in proof of the work having been registered. In case two copies of the manuscript are sent, one copy of the same duly stamped will be returned, while the other will be retained, as far as possible, in the Copyright Office for record and will be kept confidential. It would also be open to the applicant to send only extracts from the unpublished work instead of the whole manuscript and ask for the return of the extracts after being stamped with the seal of the Copyright Office. When a work has been registered as unpublished and subsequently it is published, the applicant may apply for changes in particulars entered in the Register of Copyright in Form V with prescribed fee. To facilitate reference, relevant extracts from the Copyright Act, 1957 and the Copyright Rules, 1958 as amended, along with a specimen copy of the Form IV are sent herewith. Applications may be made on plain paper in accordance with Form IV, as the office does not supply blank application forms. Is an opportunity for hearing given in all the cases pertain to rejection of registration? No application is rejected without giving an opportunity to be heard. The applicant himself or his/her pleader may appear in the hearing. "Be inspired but don't copy" EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER Application of CST e-declarations – Adv. Abhay Bora Procedure for online issue and Application of CST e-declarations/certificate 1. The requisite utility for Online Application of CST e-declarations/certificate has been made available on the sales tax Department’s website www. mahavat. gov. in 2. For obtaining declaration or certificates, the dealer has to submit/upload application called SOR (Statement of Requirement) electronically. 3. The SOR contains the invoice vise purchase annexure. Three separate Annexure(s) have been prescribed for each of the forms / Declarations viz i. Declarations/certificates in both Form C and F. ii. Certificates in Form H. iii. Declarations/certificates in Form E-I and E-II. 4. The applicant shall first down load the requisite template of the SOR from the appropriate link on the web site, fill in the requisite details and validate the template of the SOR. If such validations throw any errors then the same shall be corrected by the applicant. In case of error free template a rem. txt file of the SOR shall get generated. 5. The SOR shall mandatorily contain email address and contact mobile telephone number (10 digit) of the applicant for the SDM (Service delivery purpose). The action taken by the department in respect of said SOR will be communicated on aforesaid e-mail address and the mobile telephone number. 6. The applicant shall upload the rem. txt file of the SOR on the appropriate link on the wwww. mahavat. gov. in. After the successful uploading an acknowledgement will be generated and shall be available to the applicant through his access on the web site. 7. Internal verifications by the system after the SOR is uploaded: After the SOR is uploaded the system will verify the following four things and the results thereof will be available to the concerned CR officer in the verification report. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER Application of CST e-declarations – Adv. Abhay Bora a. Whether the applicant dealer has filed all the returns for earlier periods. b. Whether the turn-over of within state and inter-State sales/ purchases or, as the case may be, branch transfer/consignment transfer has been disclosed appropriately in the return for the period vis-a-vis the said turn-over mentioned in the SOR. c. Whether the applicant dealer has any outstanding dues under MVAT Act 2002, CST Act 1956 or any other allied Act administered by the Sales Tax Department or/and has any return related dues. d. Whether the applicant dealer (if he is liable to file Audit Report in Form No. 704 as provided under section 61 of the MVAT Act 2002) has filed Audit Report in Form 704 for all the periods starting from 1. 4. 2008 till the period for which due date for submission of Audit Report is over. 8. Verifications to be done by the Central Repository Officer: The SOR filed by the dealers get allocated to CR officers on random basis. The CR officer with the help of MAHAVIKAS shall verify the following aspects: a. In case of requisitions of Form F – Whether the address and TIN/CST Registration No. of Branch /Branches outside the Maharashtra State are incorporated in the registration record of the applicant. b. In case of requisitions of all the CST declarations- Whether the applicant dealer fulfils all the conditions /restrictions in respect of the commodity stated in the SOR and commodity details available in MAHAVIKAS. 9. Electronic issuance of statutory declarations/forms under the CST Act 1956: In case of applications (SORs) successfully uploaded and verified for no defects by the CR officer and in other cases after the defects have been rectified, statutory declarations/forms under the Central Sales Tax Act, 1956 in PDF format are issued electronically to the email address of the applicant. The applicant is therefore needed to furnish the correct and authentic email address in the SOR. 10. Approval of E-CST Forms: - The CR officer will communicate the dealer through email id given in the application the approval of Application. 11. Validation of E-CST Forms: - CST Forms are available for downloading on http: //www. mahavat. gov. in; using dealer credentials. The following procedure is to be followed for validation of digital signature on e-CST forms: EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER Application of CST e-declarations – Adv. Abhay Bora a) The forms can be downloaded by saving the PDF document. b) Open the saved PDF document of e-CST-form in Acrobat Reader. (Adobe Acrobat Reader-Version XI or above is required to view the digital Form and also to validate the Digital Signature) c) This will show the validity unknown in Digital Signature. Right click on digital signature, then validate signature, then select the option - signature properties , select the option - Show Signer’s certificate , then go to - Trust tab, select the option - add to trusted certificates , then click OK and validate signature. 12. Defect Memo Applications are kept on hold and Defect Notice is issued in following circumstances: a. If the verification by the system and the CR officer results into finding of defects, the concerned Central Repository Officer shall inform the same to the applicant through an email. The applicant dealer shall be required to correct these defects within 15 days from the date of receipt of said e-mail. During the intervening period the application shall be kept on ‘hold’. b. The concerned officer may also hold the application if he is of the opinion that further verification is necessary before issuance of declaration. c. If the applicant does not comply with requirements of the Defect notice within 15 days then the relevant application (SOR) shall be automatically rejected. d. In case said compliance is either not accepted by the Officer concerned or is rejected by the MAHAVIKAS System then, the Officer concerned will communicate such rejection to the applicant dealer. e. If dealer submits the compliance in pursuance to the defect memo so issued and proves to the satisfaction of the CR officer that the defects have been complied with then the CR officer shall approve the application. f. In case the applicant is pointed out to be a short filer of return but the applicant is in a position to prove it otherwise then the applicant shall first approach the concerned returns branch for correction in the Mahavikas. After such correction the Mahavikas data shall get corrected automatically and the defect shall also get closed automatically. However, this needs to happen within 15 days allowed for the compliance of the defect notice issued to the applicant. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER Application of CST e-declarations – Adv. Abhay Bora 13. Before making an application for the CST declarations the applicant shall ensure that the turnover of interstate transactions for which the application is being made is within the limits of the turnover of interstate transactions shown by him in the return covering the period of transactions. If the turnover of interstate transactions shown in the return is less than the turnover of interstate transactions mentioned in the SORs filed by the dealer then the applicant shall file the revised return, admit the additional turnover and then apply for the CST declarations. 14. The applicants with six monthly periodicity are presently unable to make quarterly applications for the CST declarations. Such applicants, at the beginning of the year, have an option of changing their periodicity to the quarterly and apply for the CST declarations on quarterly basis. 15. The dealer whose registration is cancelled may apply online for the CST declarations pertaining to the period of validity of their registration under the CST Act, 1956 16. Help Desks and assistance from the department: The procedure of obtaining CST declaration is self-explanatory. The same is made available on the Web site of the Department. Help desks are being created at every Central Repository locations. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGHTLIGHTS OF UNION BUDGET 2016 – Adv. Abhay Bora Highlights of Union Budget 2016 RELIEF TO SMALL TAX PAYERS • Raise the ceiling of tax rebate under section 87 A from 2000 to 5000 to lessen tax burden on individuals with income upto 5 laks. • Increase the limit of deduction of rent paid under section 80 GG from Rs 24000 per annum to Rs 60000, to provide relief to those who live in rented houses. BOOST EMPLOYMENT AND GROWTH • Increase the turnover limit under Presumptive taxation scheme under section 44 AD of the Income Tax Act to Rs 2 crores to bring big relief to a large number of assessees in the MSME category. • Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to Rs 50 lakh. • Phasing out deduction under Income Tax: · Accelerated depreciation wherever provided in IT Act will be limited to maximum 40% from 1. 4. 2017· Benefit of deductions for Research would be limited to 150% from 1. 4. 2017 and 100% from 1. 4. 2020· Benefit of section 10 AA to new SEZ units will be available to those units which commence activity before 31. 3. 2020. · The weighted deduction under section 35 CCD for skill development will continue up to 1. 4. 2020 CORPORATE TAX RATE PROPOSALS • New manufacturing companies incorporated on or after 1. 3. 2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation. · Lower the corporate tax rate for the next financial year for relatively small enterprises i. e companies with turnover not exceeding 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess. • 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGHTLIGHTS OF UNION BUDGET 2016 – Adv. Abhay Bora • 10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident. • Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts required to deduct tax at source. • Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years. • Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts. • Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year. • Commitment to implement General Anti Avoidance Rules (GAAR) from 1. 4. 2017. • Basic custom and excise duty on refrigerated containers reduced to 5% and 6%. MAKE IN INDIA • Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair. MOVING TOWARDS A PENSIONED SOCIETY • Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable. • In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1. 4. 2016. • Limit for contribution of employer in recognized Provident and Superannuation Fund of Rs 1. 5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS and Services provided by EPFO to employees. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGHTLIGHTS OF UNION BUDGET 2016 – Adv. Abhay Bora • Reduce service tax on Single premium Annuity (Insurance) Policies from 3. 5% to 1. 4% of the premium paid in certain cases. PROMOTING AFFORDABLE HOUSING • 100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years. MAT to apply. • Deduction for additional interest of 50, 000 per annum for loans up to 35 lakh sanctioned in 2016 -17 for first time home buyers, where house cost does not exceed 50 lakh. • Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax, in respect of dividend distributed after the specified date. • Exemption from service tax on construction of affordable houses up to 60 square metres under any scheme of the Central or State Government including PPP Schemes. • Extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work to Ready Mix Concrete. RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN ENVIRONMENT • Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of 10 lakh per annum. • Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above 1 crore. • Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of ten lakh and purchase of goods and services in cash exceeding two lakh. • Securities Transaction tax in case of Options is proposed to be increased from 0. 017% to 0. 05%. • Equalization levy of 6% of gross amount for payment made to nonresidents exceeding 1 lakh a year in case of B 2 B transactions. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGHTLIGHTS OF UNION BUDGET 2016 – Adv. Abhay Bora • Krishi Kalyan Cess, @ 0. 5% on all taxable services, w. e. f. 1 June 2016. Proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers. Input tax credit of this cess will be available for payment of this cess. • Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2. 5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs. No credit of this cess will be available nor credit of any othertax or duty be utilized for paying this cess. • Excise duty of 1% without input tax credit or 12. 5% with input tax credit on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits of Rs 6 crores and Rs 12 crores respectively. • Excise on readymade garments with retail price of Rs 1000 or more raised to 2% without input tax credit or 12. 5% with input tax credit. • Clean Energy Cess levied on coal, lignite and peat renamed to Clean Environment Cess and rate increased from Rs 200 per tonne to Rs 400 per tonne. • Excise duties on various tobacco products other than beedi raised by about 10 to 15%. • Assignment of right to use the spectrum and its transfers has been deducted as a service leviable to service tax and not sale of intangible goods. PROVIDING CERTAINTY IN TAXATION • Committed to providing a stable and predictable taxation regime and reduce black money. • Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge at 7. 5% and penalty at 7. 5%, which is a total of 45% of the undisclosed income. Declarants will have immunity from prosecution. • Surcharge levied at 7. 5% of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

MARCH 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGHTLIGHTS OF UNION BUDGET 2016 – Adv. Abhay Bora • New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to 10 lakh. Cases with disputed tax exceeding Rs 10 lakh to be subjected to 25% of the minimum of the imposable penalty. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition. • High Level Committee chaired by Revenue Secretary to oversee fresh cases where assessing officer applies the retrospective amendment. • One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment. • Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts. • Disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed under rule 8 D of Section 14 A of Income Tax Act. • Time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty. • Mandatory for the assessing officer to grant stay of demand once the assessee pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals). • Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from Rs 15 lakhs to Rs 50 lakhs. • 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT). EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES SERVICE TAX ARTICLE COPYRIGH ONLINE CST DECLARATION HIGHLIGHT OF UNION BUDGET 2016

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