akgvg weekly insight · income tax department carries-out swift investigations in more than 400...
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AKGVG Weekly Insight 20th December, 2016
Coverage:
Income Tax Updates VAT Updates Customs Updates MCA Updates Accounting Updates RBI Updates
Regulatory Updates
Assembled & Edited by:
Team - AKGVG
AKGVG Weekly Insight | 20thDecember’ 16 | Page No. 1
AO’s advised not to reopen past assessments if current year’s turnover increased due to use of digital means
CBDT via circular no. 40/2016 dtd 09.12.2016, has advised its Assessing Officers, not to reopen past assessments merely on the ground that the current year’s turnover has increased. Mere increase in turnover, due to use of digital means, as a result of demonetization in a particular year cannot be a sole reason to believe that income has escaped assessment in earlier years.
(Click here to read more)
CBDT issues clarification filing of revised income tax returns bythe tax payers post demonetisation of currency
Ministry of Finance clarified that filing of revised return cannot be used as the tool for manipulating the figures of income, cash-in-hand, profits etc. with an intention to show the current year’s undisclosed income (including the unaccounted income held in the form of demonetized currency in the current year) in the earlier return. (Click here to read more)
Direct tax collections increased by 15.12% for November month
The figures for Direct Tax collections up to November, 2016 show that net collections are at Rs. 4.12 lakh crore which is 15.12% more than the net collections for the corresponding period last year. This collection is 48.67% of the total Budget Estimates of Direct Taxes for F.Y. 2016-17.However, after adjusting for refunds, the net growth in Corporate Income Tax (CIT) is collections is 8.75% while that in PIT collections is 23.89%. Refunds amounting to Rs.1,05,561 crore have been issued during April to November, 2016. (Click here to read more)
Seizure of Rs. 106.52 crore Cash and 127 kg Gold in the case of Sand mining Contractors at Chennai by the IT Department
The Investigation Directorate of Income Tax Department at Chennai conducted searches on 08.12.2016 in the case of a group engaged in sand mining. The group has sand mining license for the entire state of Tamil Nadu. Eight premises (six
residential & two offices) were covered in the search. During the search, Rs. 96.89 crore cash in Old High Denomination Notes and Rs. 9.63 crore in new Rs. 2000 currency notes along with gold weighing 127 kgs worth approximately Rs.36.29 crore were found and seized, as unaccounted assets. The search is still in progress at 4 out of total 8 premises.
(Click here to read more)
Income tax authorities declared two high value declarants under IDS to be fake:
Among the declarations received, two sets of declarations of high value were found to be suspicious in nature as they were being filed by persons of small means. The family of Mr. Abdul Razzaque Mohammed Sayed (self, son, wife & sister), who were shown as residents of Mumbai, filed a total declaration of Rs. Two lakh crore. Three out of the four PAN numbers were originally in Ajmer which were migrated to Mumbai in September 2016, where the declarations were filed. The other declaration was filed by one Mr. Mahesh kumar Champaklal Shah resident Ahmedabad for an amount of Rs. 13,860 cr
After due enquiry it was found that these declarants were persons declarations of suspicious nature and very small means and the declarations could have been misused. After due consideration the said were rejected by the dept. and has commenced enquiries against these declarants to determine the intention behind these false declarations.
(Click here to read more)
Income Tax Department carries-out swift investigations in more than 400 cases since on 08-11-2016
The Income Tax Department has carried out swift investigations in more than 400 cases since the demonetisation of Old High Denomination (OHD) currency announced by the Government on 8th November, 2016. More than Rs. 130 Crore in cash and jewelry has been seized and approximately Rs.2000 Crore of undisclosed income has been admitted by the taxpayers. Detecting serious irregularities beyond the Income-tax Act, the CBDT decided to refer such cases to the ED and the CBI, enabling them to examine the criminal conduct for immediate necessary action. More than 30 such references have already been made to the ED, and are being sent to the CBI. (Click here to read more)
AKGVG Weekly Insight |20th December’ 16 | Page No. 2
Provisional Identification Number/ User ID and Password
communicated by DVAT dept. to Registered Dealers, for GST
enrollment
As per the Provisions of Proposed Model GST Act, Provisional
ID and Password have been provided by the DVAT Dept. to
the registered dealers, which can be accessed by the Dealers
at DVAT website after login. This provisional ID and password
is to be used in updating dealer’s current information on the
GST Portal on the link at https://www.gst.gov.in for
enrollment which is scheduled for Delhi from 16 Dec. 2016 to
31 Dec. 2016. A DVAT Dealer/ Taxpayer should complete the
below mentioned steps for pre-registration/ enrollment with
the GST Portal:
Taxpayer has to enter the username and password as provided in the Table by the State VAT Authority/ DVAT Dept.
Enter Mobile Number and Email ID of the Authorized Signatory of the business entity. All future correspondence from the GST Portal will be sent on this registered Mobile Number and Email ID
Different One Time Passwords (OTPs) will be sent on Mobile and Email details entered. Enter the OTPs so sent on Mobile and Email as required.
Enter information and upload scanned images as required/ mentioned in pre-Registration Form.
For more information refer circular no. CTT/Policy/2016/751-
769 at http://dvat.gov.in/website/home.html
Jharkhand waives VAT on mobiles below Rs. 5000/- In an attempt to encourage mobile banking in rural pockets of the state, the Jharkhand government has decided to waive value added tax (VAT) on mobile phones worth below Rs. 5,000/-. (Click here to read more)
CBEC revises tariff value of edible oils, brass scrap, poppy
seeds, areca nut, gold and silver
CBEC via notification no.148/2016-Cus (NT), dt. 15-12-2016,
has fixed the tariff value of edible oils, brass scrap, poppy
seeds, areca nut, gold and silver at the rates prescribed in the
said notification. (Click here to read more)
MCA released mandate on initiatives and salient
achievements in the last six months
The mandate of the Ministry of Corporate Affairs primarily
concerns administration of the legal framework within which
companies registered in India are to operate along with some
other connected matters. Within this mandate rapid strides
have been made in the last six months to improve the legal
framework, simplify procedures and speed up decision-
making for ease of doing business to usher in a healthy
environment for investment and corporate growth.(Click here
to read more)
MCA Notifies ‘Companies (Transfer of Pending Proceedings)
Rules, 2016’ MCA has notified the Companies (Transfer of
Pending Proceedings) Rules, 2016 which shall come into force
w.e.f 15th December, 2016 except rule which shall come into
force from 1st April, 2017. (Click here to read more)
MCA notifies companies (Compromises, Arrangements and
Amalgamations) Rules, 2016
MCA vide its notification dated 14th December, 2016 has
notified the Companies (Compromises, Arrangements and
Amalgamations) Rules, 2016 under section 230 to 233 and
Section 235 to 240 of the Companies Act, 2013.These rules
are effective from 15th December, 2016.(Click here to read
more)
Customs Act
AKGVG Weekly Insight | 20th December’ 16 | Page No. 3
ICAI makes KYC norms from 01.01.2017
All the members of Institute of Chartered Accountants of India
(ICAI), who are in practice, are to mandatorily comply with the
KYC (Know your client) norms applicable w.e.f 01.01.2017.
(Click here to read more)
Guidance note on Reports in Company prospectuses (revised
2016), issued by Auditing and Assurance Standards Board
ICAI has issued a guidance note on 01.12.2016 for providing
guidance to the practitioners in reporting requirements that are
required in relation to financial information to be included in
the prospectus in case of initial public offering (IPO). The
guidance note, apart from the IPO, is also applicable to other
type of filings for the issue of securities (equity shares,
debentures and notes etc.) such as letter of offer (in case of
right issue), placement document (in case of Qualified
Institutional Buyers ‘QIBs’) etc. and filings for the issue of units
under Securities and Exchange Board of India (Infrastructure
Investment Trusts) Regulations, 2014, as amended and
Securities and Exchange Board of India (Real Estate Investment
Trusts) Regulations, 2014, as amended to the extent applicable.
The guidance note is drafted considering the offer or sale of the
securities in India.(Click here to read more)
Guidance Note on Accounting for Oil and Gas Producing
Activities (Ind AS)
Considering the peculiar nature of Exploration and Production
(E&P) industry, a guidance note is issued BY ICAI on 13.12.2016
to provide guidance on accounting for costs incurred on
activities relating to acquisition of interests in properties,
exploration, development and production of oil & gas. The
guidance note applies to costs incurred on acquisition of
mineral interests in properties, exploration, development and
production of oil and gas activities, i.e., upstream operations.
This guidance note also deals with other accounting aspects
such as accounting for abandonment costs and impairment of
assets that are peculiar 5 to the entities carrying on oil and gas
producing activities. It does not address accounting and
reporting issues relating to the transporting, refining and
marketing of oil and gas.(Click here to read more)
RBI orders banks to retain CCTV footage:
The Reserve Bank of India (RBI) asked banks to ensure that all
transactions at their branches and currency chests are done
under CCTV surveillance to prevent discrepancies and promote
transparency. And also top reserve recordings of their
operations from November 8 to December 30.
(Click here to read more)
RBI denies rumors on Axis Bank
The Reserve Bank of India has clarified that it has not initiated
any action to cancel the banking license of Axis Bank in the
wake of certain allegations about some serious irregularities in
transactions. (Click here to read more)
RBI releases Report on “Measuring Productivity at the Industry
Level – The India KLEMS Database
The Reserve Bank of India has placed on its website the Report
on “Measuring Productivity at the Industry Level – The India
KLEMS Database” (Data Manual) along with time series data on
productivity for 27 industries.(Click here to read more)
RBI’s fixed Rate Reverse Repo Operation on 10.12.2016
Taking into account the withdrawal of the incremental CRR
effective from the fortnight beginning December 10, 2016 and
with a view to provide flexibility to the banking system for its
liquidity management, the Reserve Bank of India has decided to
conduct Fixed Rate Reverse Repo operation on December 10,
2016 (Saturday) between 11.00 am and 12.00 noon.
(Click here to read more)
AKGVG Weekly Insight | 20thDecember’ 16 | Page No. 4
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intended to address the circumstances of any particular individual or entity. Although
we endeavor to provide accurate and timely information, there can be no guarantee
that such information is accurate as of the date it is received or that it will continue to
be accurate in the future. No one should act on such information without appropriate
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