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 APRIL 2016 Sincerity Professionalism & Commitment is our Motto EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17 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. Pradeep 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

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER EDITORIAL - CA. SUHAS P. BORA Dear all, It is matter of immense pleasure to communicate with you all and to greet everyone in SPCM family in the first edition of the new financial year. The Budget and the proposals by way of amendments in direct and indirect taxes is an exciting topic for discussion particularly in the month of March for every professional, economist and businessman. Tax payers had a view about how their expectations were not considered in the Budget Proposals. The classic example is of course the jwellery industry. They have been expecting from the Govt. that levy of excise duty on them is unjustified and have demanded a roll back. The entire industry has gone for a strike in the entire duration of the month post the budget and there are no signs of a thaw. The Finance Minister had given more food for thought to professionals than they expected. Surprisingly, in his budget speech there was absolutely no mention of the GST by the Finance Minister. Has the GST been given a cold shoulder now as it was done with the Direct Tax Code? When people want system to deliver the goods, the political class keeps discussing abstract issues which had settled long ago- though not necessarily by a political process. Given the demographic T profile the political class should work on real issues rather than filibuster. However there is reluctance in governance to come to grips with the real issues in the economy i. e the slow pace of development, bottlenecks, bureaucratic wrangling and indecisiveness. The parliament should debate as to how these can be tackled rather than making an attempt to define nationalism. Let us now hope that the debates revolve around the real issues of economy and society. The new concept of “under reporting " and " misreporting " in Income Tax Act, 1961 may start a new league of litigation. It will be wise and in the interest of all if these provisions are deferred for a year and in the meanwhile concerned committee is asked to interact with the stake holders and arrive at appropriate recommendations. The State Budget too has followed the Union Budget in making things complicated to such an extent that ever the professional class is struggling to understand the nuisances. The concept of introduction of Fair Market Price in the Sale Price is an irrational proposal and will lead to endless litigation and harassment. I am happy to state that we have discussed in this issue all these points threadbare as they appear in the Finance Bill of the Centre and the State. I am sure that the readers will immensely benefit from this discussion. There is so much to say and yet there is so little out there… let us make the best of the situation and work diligently towards resolution of issues. With regards. CA. Suhas P. Bora EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

SPCM & ASSOCIATES MONTHLY NEWSLETTER APRIL 2016 DUE DATE CHART MONTHLY DUE DATES REGISTER FOR APRIL 2016 ACT SERVICE TAX Particulars Filing of Service Tax half Yearly Returns Due dates 25 th April 2016 INCOME TAX TDS/TCS payment Credit for the month of March 2016 30 th April 2016 PROVIDENT FUND Provident Fund Payment for the month of March 2016 15 th April 2016 LOCAL BODY TAX Payment of Local body tax for March 2016 20 th April 2016 EMPLOYEE STATE INSURANCE CORPORATION Employee State Insurance Corporation Payment for the month of March 2016 21 st April 2016 MVAT/CST E-Payment of Monthly Tax & WCT TDS for March 2016 21 st April 2016 MVAT/CST E-filling of Monthly Returns for March 2016 30 th April 2016 LUXURY TAX E-Payment of Monthly Tax for March 2016 30 th April 2016 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 UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER INCOME TAX UPDATES - DEEPALI R. SHAH INCOME TAX UPDATES A. Notification and Circulars 1. PRESS RELEASE, DATED 23 -3 -2016, CBDT Section 197 a Of The Income-Tax Act, 1961 - Deduction Of Tax At Source - No Deduction In Certain Cases - Inclusion Of Interest Income In Return Of Income Filed By Persons Liable To Pay Tax Information regarding interest earned by individuals and business entities on term deposit is filed with the Income Tax Department by banks including co-operative banks and other financial institutions and state treasuries, etc. Form 26 AS reflects only those payments on which tax has been deducted. The information about interest payments without deduction of tax is also filed by the payer with the Department. Central Board of Direct Taxes would like to inform the persons earning interest income that interest credited/received on deposits is taxable unless exempt under section 10 of the Income-tax Act. Such interest income should be shown in the return of income even in cases where Form 15 G/15 H has been filed if earning is not exempt under section 10 of the Income-tax Act and the total income of the person exceeds the maximum amount not chargeable to tax. B. Recent Reported Decisions - High Court and ITAT 1. Sesa Resources Ltd vs. DCIT (Bombay High Court) S. 195/ 40(a)(ia): Controversy whether in view of retrospective amendment to s. 195 to provide that s. 195 applies whether or not the non-resident person has a residence or place of business or business connection in India, even commission to non-resident agents for services rendered outside India is liable for TDS u/s 195 and has to suffer disallowance u/s 40(a)(ia) to be reconsidered by ITAT In Gujarat Reclaim & Rubber Products Ltd it has been, held that before effecting deduction at source one of the aspects to be examined is whether such income is taxable in terms of the Income Tax Act. This aspect has not been considered by the Tribunal while concluding that the Appellant has committed a default in not deducting the tax at source. As the said learned Division Bench Judgment was not available while passing the impugned order by the learned Tribunal, we find it appropriate, in the interest of justice, to quash and set aside the impugned order of the learned Tribunal to the extent it holds that the Appellant has defaulted in not deducting tax at source and remand the matter to the Tribunal to examine the said aspect afresh in the light of the judgment of this Court after hearing the parties in accordance with law. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER INCOME TAX UPDATES - DEEPALI R. SHAH 2. DCIT vs. Binani Industries Ltd (ITAT Kolkata) S. 14 A/ 115 JB: (i) Investments in subsidiary companies are strategic investments to whom s. 14 A disallowance does not apply (ii) Receipt on forfeiture of share warrants is a capital receipt and has to be excluded from "Book Profits" even if credited to the P&L A/c The assessee has duly disclosed the fact of forfeiture of share warrants in its notes on accounts of Financial Statements Hence following the decision of the Mumbai Tribunal in Shivalik Venture (P) Ltd vs. DCIT (2015) 173 TTJ (Mumbai) 238, the profit and loss account prepared in accordance with Part II and III of Schedule VI of Companies Act 1956, includes notes on accounts thereon and accordingly the real profit of the assessee is determined. 3. CIT vs. Binani Cement Ltd (Calcutta High Court) S. 115 JB: As the loss suffered on transfer of business was rightly debited to the P&L A/c as per AS 13, it cannot be added back to the Book Profits The accounting standards laid down by the institute however provide for recognition of the profit or loss arising out of investment in the profit and loss account. The disclosure was made in the financial statements is in pursuance of the requirement of of Schedule VI to the Companies Act, 1956 which is not to be construed as any qualification indicating any inaccuracy in the accounts. There was, thus no mistake on the part of the assessee in debiting the loss to the profit and loss account. Once it is realized that the assessee had correctly debited the profit and loss account for the loss arising out of the transfer of investment division, there remains no difficulty in realizing that the CIT proceeded on a wrong premise which was responsible for exercise of jurisdiction under Section 263 which he would not have done if he had realized the correct position 4. Khandelwal Laboratories Pvt. Ltd vs. DCIT (Bombay High Court) S. 220(6): Dept directed to redeposit moneys collected illegally by attachment of assessee’s bank account during pendency of stay application. A order passed on a stay application must give reasons for the refusal to stay the demand Any action to recover taxes adopting coercive means is not permissible till the petitioner’s application for stay under Section 220(6) of the Act is disposed of. Therefore, the action of the Assessing Officer in attaching the petitioners’ bank accounts under Section 226(3) of the Act as well as subsequent withdrawal of the attached amounts from the bank accounts is without jurisdiction and bad in law. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER INCOME TAX UPDATES - DEEPALI R. SHAH 5. ACIT vs. Dhanlaxmi Equipment Pvt. Ltd (ITAT Jaipur) S. 68: Law on when share application moneys and share premium from private companies can be treated as bogus and assessed as cash credits explained The Assessing Officer had not considered the evidence filed by the assessee during the course of assessment proceedings i. e. affidavits confirming the transaction, PAN number, complete addresses of creditors, copy of balance sheet, ITR, bank statement. The assessee had discharged its onus by providing the requisite evidences to prove the identity, genuineness and creditworthiness of the cash creditors. The loan/share capitals were received from the private limited companies. They also are filing return under the company’s law and all information is available on MCA website. The ADIT report was not conclusive to held that the cash creditors were not genuine. It is not required under the law to prove the source of source U/s 68 of the Act. Primary burden lies on the assessee has been discharged by filing the requisite evidences before the Assessing Officer and shifted on the Assessing Officer to disprove the cash creditors’ transactions are not genuine or bogus. The share application money was received by the appellant and subsequently returned though banking channel. There is no evidence directly or indirectly with the Assessing Officer that the assessee had routed undisclosed money in the guise of share application money or loan C. Unreported Decisions 1. Sylvex Cable Co. Pvt. Ltd. v. DCIT, ITA No. 8581/M/2011 dt. 24/2/2016, AY 2008 -09 (ITAT Mumbai) Sec. 14 A – Disallowance cannot exceed exempt income – Only exempt income-yielding investments to be considered for computing disallowance u/R 8 D. The Tribunal held that only those investments which would yield exempt income should be considered for computing disallowance u/s 14 A r. w. Rule 8 D(2)(iii) and that disallowance u/s 14 A could not exceed the dividend income earned by the Assessee. 2. DCIT v. Jayant Agro Organics Ltd. , ITA No. 5056/M/2014 dt. 24/2/2016, AY 2010 -11 (ITAT Mumbai) Sec. 80 IA – Windmill project – Initial assessment year – Notional brought forward of losses earlier actually set off for computing deduction. The Tribunal Held that, losses and depreciation of the years earlier to the initial assessment year which have already been absorbed against profits of other businesses cannot be notionally brought forward and set off against the profits of the eligible business for computing the deduction u/s. 80 IA. Therefore, the Assessee was held entitled to deduction. 3. ITO v. Sagar Shopping, ITA No. 5286/M/2011 dated 29/1/2016, AY 2003 -04 (ITAT Mumbai) Sec. 80 -IB(10) – Housing projects – Commencement of project – Erstwhile approval issued in name of different builder – New approval in name of assessee obtained subsequently. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER INCOME TAX UPDATES - DEEPALI R. SHAH The Assessee-firm was engaged in the business of building and construction. The assessment was reopened on the ground that deduction u/s 80 -IB(10) was wrongly claimed in as much as the project got approved 13. 11. 1996 i. e. prior to 1. 10. 1998. Held, allowing the claim of the Assessee on merits, it was held that on 13. 11. 1996, the project was approved in the name of another builder. However, the said approval expired on 12. 11. 1997 after that builder failed to do the development work. Thereafter, the Assessee applied for commencement certificate of the residential project on 13. 5. 1999 and the commencement certificate was issued in the name of the Assessee only on 5. 8. 1999. Therefore, the project could be said to have commenced on or after 1. 10. 1998 and the Assessee was entitled to deduction. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER MVAT UPDATES - CA GOURAV OSWAL, CA NIKITA BAJAJ MVAT UPDATES A. RECENT NOTIFICATIONS 1. Notification No. VAT/ADM-2016/1 B/ADM-8 Extra. ord 17 dt 24/02/2016 Maharashtra State Government has issued Notification No. VAT/ADM-2016/1 B/ADM-8 Extra. ord 17 dt 24/02/2016 for introduction of new form 423. The previous Return Form 423 is now substituted with new Return Form 423 w. e. f 01. 04. 2016 which shall be uploaded electronically by the person collecting tax at source under section 31 A of the MVAT Act 2002 2. Notification No. VAT/ADM-2016/1 B/ADM-8 Extra. ord 18 dt 24/02/2016 Maharashtra State Government has issued Notification No. VAT/ADM-2016/1 B/ADM-8 Extra. ord 18 dt 24/02/2016 for introduction of new form 424. The previous Return Form 424 is now substituted with new Return Form 424 w. e. f 01. 04. 2016 which shall be uploaded electronically by the person deducting tax at source under section 31 of the MVAT Act 2002. 3. Notification No. VAT/ADM-2016/1 B/ADM-8 Extra. ord 19 dt 24/02/2016 Maharashtra State Government has issued Notification No. VAT/ADM-2016/1 B/ADM-8 Extra. ord 19 dt 24/02/2016 for introduction of new forms - Form 231, 232, 233, 234 and 235. The previous Return Forms shall now be substituted with new Return Forms in respect of the periods staring from 01. 04. 2016. 4. Notification No. VAT 1516/C. R. 31/Taxation-1, Dated: 30 -03 -2016 Maharashtra State Government has issued Notification No. VAT 1516/C. R. 31/Taxation-1, Dated: 30 -03 -2016 for amendment of Schedule A and Schedule C appended to the MVAT Act 2002. For giving effect to the proposed changes in the rates of various commodities as per the State Budget presented recently, the government has amended Schedule A and Schedule C accordingly which is to be effective from 01. 04. 2016. 5. Notification No. VAT 1516 / C. R. 51/Taxation-1, Dated: 30 -03 -2016 Maharashtra State Government has issued Notification No. VAT 1516/C. R. 1/Taxation-1, Dated: 30 -03 -2016 for bringing about amendment in the Notification No. VAT. 1505/CR-105/Taxation-1 dated 01. 06. 2005 relating to the composition scheme for dealers. Following changes have taken place in the composition scheme for the dealers effective from 01. 04. 2016: EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER MVAT UPDATES - CA GOURAV OSWAL, CA NIKITA BAJAJ Hotels, Restaurant, Eating House, Refreshment room, Boarding establishments, Factory Canteen, Club and Caterers: a)If the total turnover of food and non alcoholic drinks is below 3 crores in the previous year to which the composition scheme is desired, the dealer will be liable to pay tax @ 5%. b) If the total turnover of food and non alcoholic drinks exceeds Rs. 3 Crore in the previous year to which the composition scheme is desired, he will be liable to pay tax @ 8% c) In case of unregistered dealer he will be liable to pay tax @ 10% on the turnover of sales. Two new conditions have been inserted namely: Dealer, who opts out/ceases to be eligible of the composition scheme, can claim set off of the closing stock held on the date of opting out of the composition scheme and on which he had not claimed set-off earlier in the first return to be uploaded as a noncomposition dealer Dealer, who opts for composition scheme shall be required to reverse the set off of the closing stock held as on on the date of opting the composition scheme in the first return to be uploaded as a composition dealer Bakers : Composition amount for bakers shall be now calculated excluding bread - in loaf, rolls or in slices, toasted or otherwise. Retailers: Retailers were eligible to pay tax by way of composition if their total turnover of sales is below Rs. 50 Lakhs in the previous financial year. Now the limit of total turnover is increased from Rs. 50 Lakhs to 1 Crore. Condition (vi) relating to the six monthly period has been deleted. 6. Notification No. VAT 1516 / C. R. 53/Taxation-1, Dated: 01. 04. 2016 Maharashtra State Government has issued Notification No. VAT 1516/C. R. 3/Taxation-1, Dated: 01. 04. 2016 for amendment in the Maharashtra Value Added Tax Rules, 2005, effective from 01. 04. 2016. Following amendments have taken place: a) Amendment to Rule 52 B: As per the amendment in sub-rule (1), if the claimant dealer has purchased — (i) goods covered under the entries 13 and 14 of the Schedule ‘ D ’ appended to the Act, or (ii) mobile phone or cellular handset i. e. telephones for cellular network or for other wireless network, then the said dealer shall be entitled to claim set-off in respect of the said goods only to the extent of CST paid or payable on the inter-state resale of corresponding goods and taxes paid on purchase of said goods if resold locally. b) Amendment to Rule 53: 1. New sub-rule 11(a) has been added to allow set-off on passenger motor vehicles if the claimant dealer is engaged in the business of transferring the right to use (whether or not for a specified period) for any purpose only to the extent of tax payable on such transfer of right to use. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

SPCM & ASSOCIATES MONTHLY NEWSLETTER APRIL 2016 MVAT UPDATES - CA GOURAV OSWAL, CA NIKITA BAJAJ 2. New sub-rule 11(b) has also been added to clarify that the set off as determined under sub-rule 11 (a) in respect of the passenger motor vehicles shall be claimed in the period in which such right to use has been transferred by the claimant dealer. c) Amendment to Rule 54: In clause (a) of Rule 54 after the words “and accessories thereof ’’ the words and bracket “unless the claimant dealer is engaged in the business of transferring the right to use (whether or not for a specified period) for any purpose in respect of the said vehicles” shall be inserted to allow set-off of passenger motor vehicles purchased by the dealers engaged in transferring the right to use such vehicles. In clause (b) of Rule 54, for the word “ purchases ”, the words and figures “entry, as defined under the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 or, as the case may be, purchases ” shall be substituted. 7. Notification No. ENG. 1516/C. R. 56/Taxation, Dated: 01. 04. 2016 Maharashtra State Government has issued Notification No. 1516/C. R. 56/Taxation, Dated: 01. 04. 2016 for bringing about the amendment of schedule appended to the Maharashtra Tax on Entry of Goods into Local Areas Act, 2002. In the schedule appended to the Maharashtra Tax on Entry of Goods into Local Areas Act, 2002 sub-entry 15 (2) has been added to include entry tax on Slabs of Marble and Granite @ 12. 5% 8. Notification No. PFT 1216/ C. R. 26/ Taxation-03. Dated 02. 04. 2016 Maharashtra State Government has issued Notification No. PFT 1216/ C. R. 26/ Taxation-03. Dated 02. 04. 2016 for bringing about the amendment of schedule appended to the Notification No. PFT. 2014/C. R. 38/Taxation-3, dated 21 st August 2014. In the schedule appended to the Notification No. PFT. 2014/C. R. 38/Taxation-3, dated 21 st August 2014, a new entry has been added to exempt whole of the late fee payable by the Educational institution which receives grant-in-aid for the State Government for the returns upto 31 st March 2016 subject to fulfillment of certain conditions as mentioned in the notification. B. GIST OF IMPORTANT DDQ’S 1. Kapsons Industries Limited-DDQ-11/2012/Adm-6/31/B-1 dt. 9. 3. 16 Rotor Stamping in loose condition, Stator stampings in loose condition/loose bunch is covered by the residual entry E-1 and hence liable to tax @ 12. 5% EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER UPDATES ON SECTION 14 A - CA SUHAS P. BORA UPDATES ON DECISIONS ON SECTION 14 A OF INCOME TAX ACT The following are the latest decisions on disallowance under section 14 A of the Income-tax Act, 1961: 1. Provisions of section 14 A are applicable even to income claimed as deduction under section 80 P [Punjab State Cooperative Milk Producers Federation Ltd. v. CIT, (2016) 67 taxmann. com 27 (P&H) (Assessment Year 2011 -12)] 2. If own funds and other non-interest bearing funds exceed the investments yielding exempt income, prima facie the presumption is that investment is made out of such funds and hence, there is no disallowance under section 14 A [HDFC Bank Ltd. v. DCIT, TS-106 HC-2016 (Bom); Sun TV Network Limited v. ACIT, TS-108 -ITAT-2016 (Chny)] 3. There is no need for the assessee to establish with evidence that the amounts which have been invested in the tax free securities have come out of interest free funds available with it. This is because once the assessee is possessed of interest free funds sufficient to make the investment in tax free securities, it is presumed that it has been paid out of the interest free funds [HDFC Bank Ltd. v. DCIT, TS-106 -HC-2016 (Bom)] 4. The matter regarding disallowance of interest is factual and the onus is on the AO to show that the assessee has made investment out of interest bearing funds and if he does not establish any nexus between interest bearing funds and exempt investment then disallowance could not be made under section 14 A [Sun TV Network Limited v. ACIT, TS-108 -ITAT-2016 (Chny)] 5. Expenditure disallowable under section 14 A cannot be more than exempt income [The Principal CIT v. Empire Package Pvt. Ltd. , ITA No. 415 of 2015(O&M) dt. 12. 01. 2016] 6. Section 14 A is not applicable to expenditure in relation to in shares, securities etc. held as stock-in-trade [HDFC Bank Ltd. v. DCIT, TS-106 -HC-2016 (Bom)] 7. Expenses for investments in subsidiary due to commercial expediency or for acquiring controlling interest or for making strategic investment are not liable to disallowance under Section 14 A [Sun TV Network Limited v. ACIT, TS-108 -ITAT-2016 (Chny)]. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER UPDATES ON SECTION 14 A - CA SUHAS P. BORA 8. The term “interest” in Rule 8 D(2)(ii) excludes bank charges and other financial charges [Godrej Sara Lee Ltd. v. ACIT, (2016) 67 taxmann. com 26 (Mum Trib)] 9. If own funds and other non interest bearing funds exceed the investments yielding exempt income, prima facie the presumption is that investment is made out of such funds and hence, there is no disallowance under section 14 A[DCIT v. Binani Industries Ltd. , ITA No. 144/Kol/2013 dt. 02. 03. 2016, para 2. 3 (assessment year 2009 -10)] 10. Expenses for investments in subsidiary due to commercial expediency or for acquiring controlling interest or for making strategic investment are not liable to disallowance under section 14 A [DCIT v. Binani Industries Ltd. , ITA No. 144/Kol/2013 dt. 02. 03. 2016, para 2. 3 (assessment year 2009 -10)] EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

JANUARY 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER MINUTES OF MEETINGS OF COMPANIES - CA MANOJ R. JAIN, CS ADITI DEO MINUTES OF MEETINGS OF COMPANIES Minutes are the records of meetings. It is very important record which every company should maintain. In the Companies Act, 2013 there are Rules and Regulation for maintaining the Minutes Book. In this Article, we will have some information regarding the minutes writing of mainly Private Limited Company's Board Meetings which will help the company to be more compliant. What Minutes should contain? Minutes should contain general as well as specific contentions of the meeting as under: a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) The serial number Type of the Meeting Name of the company Day, date, venue and time of commencement of Meeting Conclusion of the Meeting Person Present In case there is Chairman of the Board, then that person will be Chairman of the Board Meeting. If there is no Chairman of the Board, and If there is Chairman but he is absent then directors will appoint any person from themselves as Chairman of the Meeting Leave of Absence Chairman will record the presence of director along with mode of presence i. e. Physical or through electronic mode. Chairman will check the quorum and record the quorum In the Board Meeting company will take note the Minutes of last board Meeting by circulation of signed copy of minutes to all the present directors. If any committee is incorporated by the Company, then in the board meeting of Director Company will take note the minutes of Committee Meeting. Apart from the Resolution or the decision, Minutes shall mention the brief background of all proposals and summaries the deliberations thereof In case of major decisions, the rationale thereof shall also be mentioned. The decisions shall be recorded in the form of Resolutions where it is statutorily or otherwise required EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

SPCM & ASSOCIATES MONTHLY NEWSLETTER JANUARY 2016 MINUTES OF MEETINGS OF COMPANIES - CA MANOJ R. JAIN, CS ADITI DEO What is the Procedure to Maintain the Minute Book? a) Minutes shall be recorded in books maintained for that purpose. A distinct Minutes Book shall be maintained for Meetings of the Board and each of its Committees. A company maintain its Minutes in physical or in electronic form with Timestamp. Every company shall however follow a uniform and consistent form of maintaining the Minutes. Any deviation in such form of maintenance shall be authorized by the Board. b) Minutes shall not be pasted or attached to the Minutes Book, or tampered with in any manner. Pages of Minutes Book: a) The pages of the Minutes Books shall be consecutively numbered. b) This shall be equally applicable for maintenance of Minutes Book in electronic form with Timestamp. c) In the event any page or part thereof in the Minutes Book is left blank, it shall be scored out and initialed by the Chairman who signs the Minutes. d) Binding of Minutes: If maintained in loose-leaf form, shall be bound periodically depending on the size and volume and coinciding with one or more financial years of the company. Place of keeping of Minutes: a) Minutes of the Board Meeting shall be kept at the Registered Office of the company or b) At such other place as may be approved by the Board. Can anything be excluded from the Minutes? The Chairman has absolute discretion to exclude from the Minutes, matters which in his opinion are or could reasonably be regarded as defamatory of any person, irrelevant or immaterial to the proceedings or which are detrimental to the interests of the company. This applicable in case of board and committee meetings. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

JANUARY 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER MINUTES OF MEETINGS OF COMPANIES - CA MANOJ R. JAIN, CS ADITI DEO What is the procedure to be followed after finalization of Minutes? a) Within 15 (fifteen) days from the date of the conclusion of the Meeting of the Board or the Committee, The draft Minutes thereof shall be circulated to all the directors of the Board or the committee for their comments. By hand or by speed post or by registered post or by courier or by e-mail or by any other recognized electronic means. b) The Directors, whether present at the Meeting or not, shall communicate their comments, if any, in writing on the draft Minutes within seven days from the date of circulation thereof, so that the Minutes are finalized and entered in the Minutes Book within the specified time limit of thirty days. c) If any Director communicates his comments after the expiry of the said period of seven days, the Chairman shall have the discretion to consider such comments. d) In the event a Director does not comment on the draft Minutes, the draft Minutes shall be deemed to have been approved by such Director. e) Minutes shall be entered in the Minutes Book within thirty days from the date of conclusion of the Meeting f) The Minutes in respect of the original Meeting as well as the adjourned Meeting shall be entered in the Minutes Book within thirty days from the date of the respective Meetings. g) The date of entry of the Minutes in the Minutes Book shall be recorded by the Company Secretary. Where there is no Company Secretary, it shall be entered by any other person duly authorized by the Board or by the Chairman. h) Minutes, once entered in the Minutes Book, shall not be altered. Any alteration in the Minutes as entered shall be made only by way of express approval of the Board at its subsequent Meeting in which such Minutes are sought to be altered. i) Minutes of the Meeting of the Board shall be signed and dated by the Chairman of the Meeting or by the Chairman of the next Meeting. Minutes of the previous Meeting may be signed either by the Chairman of such Meeting at any time before the next Meeting is held or by the Chairman of the next Meeting at the next Meeting. j) Minutes, once signed by the Chairman, shall not be altered, save as mentioned in this Standard. k) A copy of the signed Minutes certified by the Company Secretary or where there is no Company Secretary, by any Director authorized by the Board shall be circulated to all Directors within 15 (fifteen) days after these are signed MINUTES OF KEY FEATURES OF HIGH LIGHTS ON DUE DATE INCOME TAX MVAT UPTADES MEETINGS OF REAL ESTATE BILL, MAHARASHTRA EDITORIAL CHART UPDATES ON SEC. 14 A COMPANIES 2015 BUDGET 2016 -17

JANUARY 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER MINUTES OF MEETINGS OF COMPANIES - CA MANOJ R. JAIN, CS ADITI DEO Who can inspect the minutes? a) b) c) d) e) f) Directors Company Secretary in Practice appointed by the company Secretarial Auditor, the Statutory Auditor the Cost Auditor the Internal Auditor of the company What is the Penalty for Non Compliance? If the company has not followed the procedure for compliance of minutes and secretarial standards for maintaining minutes then the penalty is RS. 25000/- for the company and Rs. 5000/- for officer in default Minutes are the mirror of the business decisions and overall business of the company keep it clear so that it will reflect the true and fair view of your Business. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER KEY FEATURES OF REAL ESTATE BILL 2015 - CA SUHAS P. BORA KEY FEATURES OF REAL ESTATE (REGULATION AND DEVELOPMENT) BILL, 2015 As a relief to home buyers, the much-awaited Real Estate (Regulation & Development) Bill 2015 has been passed in the Rajya Sabha on 10. 03. 2016 which is to be applicable retrospectively. This bill is expected to protect the interest of consumers and builders alike, promote fair play in real estate transactions and to ensure timely execution of projects. Here are some key features of the Real Estate Bill 2015: 1. Municipal bodies and government projects will not be covered by the bill. 2. The bill defines carpet area as net usable area of an apartment which means now you will be charged only for your carpet area. 3. Construction will start only after getting statutory clearances. 4. Misleading advertisements to be made punishable offence where first-time offenders will be fined 10% of project cost and repeat offenders could face jail term. 5. The Bill provides for imprisonment of up to three years in case of promoters and up to one year in case of real estate agents and buyers for any violation of orders of Appellate Tribunals or monetary penalties or both. 6. All changes in ongoing projects to be vetted by 2/3 rds of the home buyers. 7. The bill would prohibit unaccounted money from being pumped into the sector and as now 70% of the money has to be deposited in bank accounts through cheques. 8. The Real Estate Bill is now applicable for both commercial and residential real estate projects. It also calls for the establishment of a 'Real Estate Regulatory Authority' in States or Union Territories (UTs) to regulate real estate transactions. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER KEY FEATURES OF REAL ESTATE BILL 2015 - CA SUHAS P. BORA 9. A minimum of 70% collections from buyers should be deposited in separate escrow account to cover cost of construction and land. 10. Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier provision of 90 days. 11. The Bill provides for registration of all real estate projects with Regulatory Authorities to be set up, requiring developers to disclose project information including details of the promoter, project, lay-out plan, land status, status of approvals, agreements along with details of real estate agents, contractors, architects, structural. Every project measuring more than 500 sq. mts or more than 8 apartments will have to be registered under RERA. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

SPCM & ASSOCIATES MONTHLY NEWSLETTER APRIL 2016 HIGH LIGHTS OF MAHARASHTRA STATE BUDGET 2016 -17 – ADV. ABHAY BORA HIGH LIGHTS OF MAHARASHTRA STATE BUDGET 2016 -17 (I) FAIR SALES PRICE It is proposed to have power to assess at fair market price of goods sold below market price. (II) REGISTRATION Rejection of registration application can be done without notice. But time will be given to comply requirements by way of fresh application and if compliance is made within specified time, then RC will be given w. e. f. date of first application. Provision is also proposed for cancellation of RC if false documents submitted. (III) REVISED RETURNS Returns are proposed to be revised multiple times till the due date for filing VAT Audit Report. (IV) DEEMED ACCEPTANCE OF RETURNS. It is proposed that, in case of dealers who have filed returns in time, the returns acceptance order will be issued subject to certain conditions. Also after expiry of four years returns shall be deemed to be accepted. (V) ACCEPTANCE OF PROPOSED TAX & CLOSURE OF ASSESSMENT During pendency of assessment proceeding officer can give intimation of proposed tax and interest. If dealer accepts and files revised return then revised return acceptance order will be passed and assessment proceeding will be closed. (VI) TRANSFER OF WCT TDS FROM PRINCIPAL TO SUB-CONTRACTOR Provision is proposed to be made for transfer of WCT TDS form principal contractor to sub-contractor, if sub-contractor discharges tax liability. Also provision is proposed for registration TDS paying employers and returns of WCT TDS by them. Also penalty is proposed for violation thereof. (VII) ADVANCE RULING IN PLACE OF DDQ Section 56 is proposed to be deleted & advance ruling is proposed to be brought in. Pending cases of DDQ can be transferred to Advance Ruling Authority. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

SPCM & ASSOCIATES MONTHLY NEWSLETTER APRIL 2016 HIGH LIGHTS OF MAHARASHTRA STATE BUDGET 2016 -17 – ADV. ABHAY BORA (VIII) SALES & PURCHASE BY E-COMMERCE COMPANIES Provision is proposed for obtaining information of sales & purchases made on portal of e-commerce companies. Penalty can be imposed if information is not furnished. (IX) DECLARATIONS ON INVOICES If goods are manufactured by a Mega Project or Ultra Mega Project or PSI then sales invoice should contain declaration in that respect. (X) ENTRY TAX Entry tax will be made applicable on marble and granite slabs. (XI) PROFESSION TAX 1) AMNESTY TO PTE If person who is liable to PTEC for up to last 8 years, gets enrolled between 01/04/16 to 30/09/16, then he will be required to pay PT only for last 3 years. Also pending PTEC applicants will be eligible for the said benefit under amnesty. 2) EXEMPTION Exemption of PT is extended to armed personals of CRPF & BSF. 3) LATE FEE Late fee exempted to aided schools (XII) SUGARCANE PURCHASE TAX Exemption to sugarcane factories proposed for the Year 2015 -16 subject to condition that those sugar factories should meet the export obligations as per Govt Policy. (XIII) MOTOR VEHICLE TAX For two wheeler vehicles rate of tax proposed to be increased depending on engine capacity if vehicle is for personal use. Tax on vehicles in the name of companies doubled. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17 – ADV. ABHAY BORA (XIV) LOTTERY TAX Lottery tax proposed to be increased. (XV) AMENDMENT IN RATE OF TAX UNDER MVAT ACT 1) RATE INCREASED TO 5. 5 % Lower General rate of tax of Schedule 'C' goods, except declared goods, proposed to be enhanced from 5% to 5. 50%. 2) COCONUT OIL & HAIR OIL If coconut oil is sold in packaging up to 500 mililtar, tax is proposed to be levied at 12. 5%. Also hair oil is proposed to be removed from entry of drugs resulting taxable at 12. 5%. 3) TOWELS Towels are exempt but tax on terry towels is proposed to be levied at 5. 5%. 4) WARPING & SIZING UNITS Exemption is proposed to this industries. 5) SWEET CORN Rate of tax on sweet corn is proposed at 5. 5%. 6) BARBED WIRE, WIRE MESH & CHAIN It is proposed to reduce tax from 12. 5% to 5% on these items 7) COTTON SEEDS It is proposed to reduce tax from 5% to 2% on cotton seeds. 8) BUSES It is proposed to exempt buses operated on battery or hybrid fuel, used for public transport and which are purchased by public transport undertaking. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

APRIL 2016 SPCM & ASSOCIATES MONTHLY NEWSLETTER HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17 – ADV. ABHAY BORA 9) PYROSIS OIL It is proposed to reduce tax from 12. 5% to 5. 5%. 10) LED TUBES It is proposed to reduce tax to 5. 5% 11) STATIONERY Rate of tax on pencil box, all types of gums, glues and sticks, stapler pin, tape dispensers, dusters and any type of file is proposed to be reduced from 12. 5% to 5%. 12) RETROFIT KIT FOR VEHICLES Rate of tax on retrofit kit for vehicles which make the vehicle operational for the differently abled persons is proposed to be exempt. 13) USED VEHICLES SOLD BY FINANCIAL INSTITUTIONS It is proposed to reduce rate of tax from 12. 5% to 5% on used vehicles sold by banks and financial institutions. 14) STERILE WATER AND MAMMOGRAPHY MACHINE It is proposed to reduce rate of tax from 12. 5% to 5. 5% on sterile water and exempt mammography machines. 15) HANDICRAFT PRODUCTS OF BAMBOO. Bamboo handicraft products, except bamboo furniture are proposed to be exempt. (XVI) COMPOSITION SCHEME 1) TURNOVER OF RETAILERS INCREASED Turnover limit for composition increased from Rs. 50 Lacs to Rs. 1 Crore. 2) COMPOSITION FOR BAKERIES It is proposed to exclude tax free goods for computing the tax liability under composition scheme for bakeries. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

SPCM & ASSOCIATES MONTHLY NEWSLETTER APRIL 2016 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17 – ADV. ABHAY BORA 3) COMPOSITION FOR RESTAURANTS It is proposed to enhance rate of composition to 8% if T/O of foods & non-alcoholic drinks in previous year has exceeded Rs. 3 Crores. (XVII) SET-OFF 1) NO SET-OFF OF ENTRY TAX PAID OF PETROL & DIESEL It is proposed to deny set-off of entry tax paid on Petrol & Diesel. 2) RESTRICTION ON SET-OFF FOR MOBILE HANDSETS SOLD OMS. Mobile handsets if purchased locally and sold in the course of interstate trade, then set-off is proposed to be restricted to the extent of the liability under CST Act. 3) AVAILABILITY OF SET-OFF IF PASSENGER MOTOR VEHICLE IS LEASED. Set-off on passenger motor vehicle is proposed to be allowed if the same is leased and the same would be allowed only to the extent of out put tax. (XVIII) DIGITAL BILING It is proposed to introduce digital billing for the registered dealers selling at last stage i. e. Retailers. (XIX) LOGISTIC HUB IN NAGPUR It is proposed to set-up logistic hub in Nagpur where goods purchase from other states will be packed or re-packed for resell. CST will be exempted by way proposed notification under CST Act. (XX) AMNESTY 1) AMNESTY FOR PENDING APPEALS For pending appeals amnesty is proposed, if procedure is complied & appeals are withdrawn between period 01/04/16 to 30/09/16. (A) For Periods up to 31/03/05 - if disputed amount of tax is paid, amount of interest and penalty is proposed to be waived. (B) For Periods from 01/04/05 to 31/03/12 - if disputed amount of tax plus 25% interest is paid, balance amount interest and penalty is proposed to be waived. 2) AMNESTY FOR UN-REVIVABLE UNITS The amnesty is proposed for taking over of un-revivable units on payment of principal tax dues. The interest & penalty is proposed to be waived on payment of amount of tax. EDITORIAL DUE DATE CHART INCOME TAX UPDATES MVAT UPDATES UPTADES ON SEC. 14 A MINUTES OF MEETINGS OF COMPANIES KEY FEATURES OF REAL ESTATE BILL, 2015 HIGH LIGHTS ON MAHARASHTRA BUDGET 2016 -17

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