TIOL-DDT 2699 · the untouched capture
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<font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3"><s><strong><font size="2"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font></strong></font></strong></font></strong></font></strong></font></strong></s></font></strong></font><font color="#663399" size="3">TIOL-DDT 2699</font><br>
07 10 2015<br>
Wednesday</strong></font>
<p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><strong><em>Cancellation/Surrender of registration under GST</em></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>the following cases, the registration can be either surrendered by the registrant or cancelled by the tax authorities: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) Closure of business of tax payer; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) Gross Annual Turnover including exports and exempted supplies (to be calculated on all-India basis) falling below threshold for registration; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) Transfer of business for any reason including due to death of the proprietor of a proprietorship firm;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) Amalgamation of taxable person with other legal entities or de-merger;</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(5) Non commencement of business by the tax payer within the stipulated time period prescribed under the laws. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In case of surrender, the system will send an acknowledgment by SMS and e-Mail to the applicant regarding his surrender of registration and he will be deemed to be unregistered from the date of such acknowledgement. There will be a provision in the system to prompt such surrendered registrants to update their address and mobile number at a prescribed periodicity till all dues are cleared/refunds made. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The cancellation of registration may be done by tax authorities in the following situations: </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) In case signed copy of the summary extract of submitted application form is not received even after a reminder; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) In case a tax payer contravenes specified provision of the law; </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(3) In case a taxpayer has not filed any return at all during a predetermined period (say six months). In case a taxpayer has filed a nil return continuously for this period, then the provisions of cancellation will not be applicable. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(4) The cancellation of registration may be preceded by system generated notice giving 7 days time for furnishing reply by the taxpayer. Principle of natural justice to be followed before cancellation, i.e., giving an opportunity to taxpayer to be heard and passing of order. </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">If the taxpayer approaches the tax authority for revocation of surrendered or cancelled registration, the surrendered / cancelled registration can be revoked. The action for revocation would be initiated by that Authority which has cancelled the registration or had earlier accepted the surrender of registration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Law would contain appropriate provisions relating to revocation / surrender / cancellation of registration. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The action for revocation / cancellation of registration would have to be initiated by both Centre and State tax authorities. Once the registration is cancelled by one authority it would be deemed to be cancelled by other authority also. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The cancellation or surrender of registration would always have prospective effect. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>These are the proposals in the Reports of the Joint Committee On Business Processes For GST. The Government has released the reports pertaining to payment process, Refund and Registration. </em></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>The legacy of the existing Central Excise Laws and procedure are proposed to be planted in GST. Concepts like pre-audit of refund claims, interest of only 6% interest for delayed refunds will all find a place in the new GST regime when (if) it comes. </em></font></p>
<p align="center"><font face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600" size="3"><em>Income Tax - Validation of tax-returns through Electronic Verification Code </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Central Board of Direct Taxes ('CBDT') vide Notification No. 41/2015 dated 15.04.2015 had introduced Electronic Verification Code ('EVC') as one of the modes for validation of return of income pertaining to Assessment Year 2015-2016 which are filed electronically on or after 01.04.2015. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT had further permitted validation of such returns of income through EVC in case of returns of income pertaining to Assessment Years 2013-2014 and 2014-2015 filed electronically (without digital signature certificate) between 01.04.2014 to 31.03.2015, vide its subsequent order dated 20.07.2015. This order was applicable to those cases wherein time-limit for submission of ITR-V to the CPC Bengaluru was extended till 31.10.2015. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has now directed that returns of income which are filed on or after 01.04.2015 electronically (without digital signature certificate) pertaining to the Assessment Year 2014-2015 or returns filed in response to various statutory notices as prescribed under the Act or returns filed as a consequence of condonation of delay u/s 119 of the Act can also be validated through EVC. </font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2MDc=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Order under Section 119 in F.No.225/141/2015-ITA.II, Dated: October 06, 2015 </strong></font></a></p>
<p align="center"><font color="#006600" size="3"><strong><font face="Georgia, Times New Roman, Times, serif"><em>Income Tax - Abandoned Feature Films -Non-applicability of Rule 9A </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DEDUCTION </strong>in respect of the cost of production of a feature film certified for release by the Board of Film Censors in a previous year is provided in Rule 9A of Income Tax Rules, 1962. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the case of abandoned films, however, since certificate of Board of Film Censors is not received, in some cases no deduction was allowed by applying Rule 9A of the Rules or by treating the expenditure as capital expenditure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In the case of <em> Venus Records and Tapes Pvt. Ltd </em>. - <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA3MjQ5" target="_blank"><strong>2015-TIOL-2316-HC-MUM-IT </strong></a>, the Bombay High Court upheld the order of the ITAT that the Tribunal was justified in holding that the cost of the abandoned film written off was a revenue expenditure. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Revenue accepted this judgement and it has not been further contested. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now, CBDT clarifies that Rule 9A does not apply to abandoned feature films and that the expenditure incurred on such abandoned feature films is not to be treated as a capital expenditure. The cost of production of an abandoned feature film, is to be treated as revenue expenditure and allowed as per the provisions of Section 37 of the Income-tax Act. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT further graciously directs that </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif" style="background-color:#FFDDBB" span="span"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">being a settled issue, no appeals may henceforth be filed on this ground by the officers of the Department and appeals already filed, if any, on this issue before various Courts/Tribunals may be withdrawn/not pressed upon. </font></font> </p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg2MDU=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT Circular No.16/2015., Dated: October 06, 2015 </strong></font></a></p>
<p align="center"><font size="3" face="Courier New, Courier, mono"><strong><font color="#006600" face="Georgia, Times New Roman, Times, serif"><em>Treat taxpayer as a customer of Department - Assocham </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IN </strong>a pre-Budget submission to the Finance Ministry, the ASSOCHAM sought a taxation friendly environment for the start-ups which should be freed from several restrictions on shareholding pattern, as the budding entrepreneurs stay in the fund infusion phase for the initial years of their business. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>“Restriction prescribed under Section 79 of Income Tax Act (IT Act) should not apply to start up ecosystem where change in shareholding pattern is due to infusion of funding by Investors without change in the management of the company run by original founders”</em>, the chamber said in its presentation submitted to the Revenue Secretary yesterday. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Chamber further suggested: </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> Rigours of section 79 of the IT Act should be restricted only in cases where the change in shareholding is effected with a view to avoid or reduce tax liability by way of a restructuring exercise. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A timely clarification to resolve this anomaly for the benefit of entire new areas, creating business and start-up culture which will lead in employment generation for millennial generation and making Digital India dream come true. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Tax authorities should treat each taxpayer as a customer of the Tax Department and make adversarial approach between taxpayer and department a thing of the past. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Customer focus should be strengthened and taxpayers should be provided with facilitating services to encourage him to comply with the taxation rules which should be easy. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> The chamber also suggested merger of Central Board of Direct Taxes (CBDT) with the Central Board of Excise and Customs (CBEC) into a single Central Board of Revenue. Administration functions should be separated from the law-making jobs. Other suggestions included carrying out impact assessment studies of various tax policy measures and trade flows trends. </font></p>
<p align="center"><font color="#006600" face="Georgia, Times New Roman, Times, serif"><strong><font size="3"><em>Aggressive Taxation does not bring taxes but bad name </em></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <STRONG>ADDRESSING</STRONG> the Columbia University yesterday, the Finance Minister Arun Jaitley said, </font></p>
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<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/FM_Columbia.jpg" alt="Legal Corner Icon" width="489" height="303" hspace="5" border="0" align="center"></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Aggressive taxation did the country no good and does not bring taxes but it brought us a bad name. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ one of the main problems of credibility related to taxation issues. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ As far as the taxation issues are concerned, a lot needed to be done at our end and in terms of direct taxes, we'd lost credibility with the world. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ For anyone in the government, it would be a very serious challenge where assessment orders have been passed, can only be set aside by a judicial process and not by an executive decision. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ one by one each of those issues related to direct taxes is now being put to rest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ government is <em>“keeping all options open”</em> to resolve the taxation issues either by judicial or executive process. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ the fears of retroactive taxation... by and large have been put to rest. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++ Over the next four years this entire rate would come down to 25 per cent. And I will be removing each one of those exemptions one by one. I am shortly going to notify all the exemptions which are going to be rationalised this very year itself. </font></p>
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<p align="center"><font color="#006600" size="3" face="Georgia, Times New Roman, Times, serif"><em><strong>NDPS - When minimum punishment is prescribed, no court can impose lesser punishment: SC</strong></em></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">THE </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Supreme Court was dealing with a Narcotics offence case wherein the High Court had reduced the sentence. The Supreme Court observed, Section 20 (b) (ii) (C) stipulates that the minimum sentence will be ten years which may extend to twenty years and the minimum fine imposable is one lakhs rupees which may extend to two lakhs rupees. The provision also provides about the default clause which stipulates imposition of fine exceeding two lakh rupees, for the reasons to be recorded by the Court. When a minimum punishment is prescribed, no court can impose lesser punishment. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <em>Narendra Champaklal Trivedi v. State of Gujarat, </em>while a submission was advanced that in exercise of power under Article 142 of the Constitution, that the Supreme Court can impose a lesser punishment than the prescribed one, the Court ruled that:- </font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><em>"...where the minimum sentence is provided, we think it would not be at all appropriate to exercise jurisdiction under Article 142 of the Constitution of India to reduce the sentence on the ground of the so-called mitigating factors as that would tantamount to supplanting statutory mandate and further it would amount to ignoring the substantive statutory provision that prescribes minimum sentence for a criminal act..."</em></font></p>
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<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In this judgement delivered yesterday, the Supreme Court quashed the High Court judgement. We bring you the judgement today. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Please see</strong> <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=24865" target="_blank">Breaking News</a></strong>.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT</strong></font></p>
<p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong><a href="mailto:vijaywrite@tiol.in" target="_blank">vijaywrite@tiol.in</a></strong></font></p>
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