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INDEX Direct Taxation Indirect Taxation Corporate & Other Laws Accounting & Audit Statutory Due Dates July 2016 Newsletter – July 2016
DIRECT TAXATION IndexIndex IT department to block PAN and LPG subsidy of tax defaulters In order to cripple and check the activities of wilful tax defaulters, the Income Tax department has decided to "block" Permanent Account Number (PAN) of such entities, get their LPG subsidy cancelled and take measures to ensure that they are not sanctioned loans. A number of such measures have been mooted by the tax department, to be undertaken this financial year, in order to curb the menace of large-scale tax avoidance and evasion. Presumptive Taxation: No audit for turnover up to 2 Crs Section 44AB of the Income-tax Act makes it obligatory for every person carrying on business to get his accounts of any previous year audited if his total sales, turnover or gross receipts exceed Rs 1 Crs. The higher threshold (up to Rs 2 crore) for non-audit of accounts has been given only to assessees opting for presumptive taxation scheme under section 44AD. If the taxpayer opts for the presumptive taxation scheme, he has to remain in that scheme for 5 years. Newsletter – July 2016
INDIRECT TAXATION IndexIndex Krishi Cess not applicable if invoice is generated before May 31 In a bid to end confusion over retrospective applicability of new Krishi Kalyan Cess, the government has stated that the 0.5 per cent tax will not apply on services whose invoice had been issued on or before May 31. Finance Minister Arun Jaitley had in his Budget for fiscal introduced the 0.5 per cent Krishi Kalyan Cess on all taxable services. Proceeds of the cess are to be used for improvement of agriculture sector and farmer welfare. While the new cess was to come into effect from June 1, 2016, questions had been raised about its applicability on services like telephony services that are rendered in May but billed in June.The Central Board of Excise and Customs (CBEC) in a notification said services for which invoice has been raised on or before May 31, 2016 will not attract the new cess. Newsletter – July 2016
CORPORATE AND OTHER LAWSIndexIndex Government allows 100% FDI in trading of food products The government on 21st June allowed 100 per cent FDI in trading of food products, including through e- commerce, to boost food processing sector in the country. The decision was taken at a meeting chaired by Prime Minister Narendra Modi. The government had in Budget this year announced that 100 per cent FDI would be allowed through FIPB route in marketing of food products produced and manufactured in India. Broadcast carriage industry to see 100% FDI via automatic route The government also allowed 100% foreign direct investment (FDI) through the automatic route in the broadcast carriage industry. The sector comprises teleports, cable industry, direct-to-home (DTH) players, headend-in-the sky (HITS) and mobile TV operators. The move brings relief to the cable industry which has been struggling with the process of digitisation of cable TV. Newsletter – July 2016
ACCOUNTING & AUDITIndexIndex Audit giants see dominance waning As a three-year transition for mandatory rotation of auditors ends in April 2017, smaller competitors are gearing up with aggressive pricing and hiring strategies. India’s audit landscape is undergoing a quiet change as the new rules for time-based rotation of auditors gather pace. Early audit changes this year indicate the larger entities, such as Deloitte’s network, could face some pressure on their dominance. And, those lower down the order could gain ground. Leading firms are looking at increasing the focus on quality and are exploring new opportunities, such as private equity-backed ones in the unlisted space. Smaller entities such as Walker Chandiok, part of the Grant Thornton network, have ramped up their staff strength to handle new clients. Close to 400 companies listed on the National Stock Exchange (NSE) have already changed auditors over the past three years, with clients changing hands among top audit firms. There is also pressure on pricing as the war for market share begins to intensify among top audit firms. This has resulted in a spike in demand for experienced auditors, with joining remuneration seeing per cent jumps. Newsletter – July 2016
STATUTORY DUE DATES FOR JULY 2016 Index Index Statutory Due Dates Calendar for July 2016 Newsletter – July 2016 Due DateStatutory Compliance 5 th July 2016Payment of Service Tax/ Excise duty 7 th July 2016Payment of TDS 10 th July 2016Excise Return (if monthly) 21st July 2016Payment of VAT & ESIC 31 st July 2016Filing Quarterly TDS return (April to June Quarter) 31st July 2016Filing of Income tax return for individuals, firms and companies to whom tax audit is not applicable
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Newsletter – July 2016 THANK YOU !