Serving Since 1968Serving Since 1968Serving Since 1968Serving Since 1968 August 2015August 2015August 2015August 2015

Lunawat Bulletin

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Lunawat & Co. Chartered Accountants www.lunawat.com

Inside …..

Compliance Due Dates

2

Income Tax 3-4

Service Tax 4

Corporate Law 5

Lunawat Up-dates

8

D-VAT 6

Service Tax & GST

5

Others 7

Terror has no Profession

On 30th July 2015 Yakub Memon was hanged to death. It was rumoured in social media that he is

a Chartered Accountant. He cleared the Chartered Accountancy course but did not practice the pro-

fession. I hereby categorically state after confirm-ing from the institute (ICAI) that he is not a CA

since 1993.

Every now and then when a CA does any unwor-thy act which is not in the course of his profes-

sion, the media cries foul that a CA did it. Does that person did the crime while performing his duties as a professional? The answer obvious is

no.

Why does the media target the CA profession specifically where the act committed by him is

not in his professional capacity? I strongly object to such statements and news. The act should be

condemned, discussed or criticised not the pro-

fession.

Whenever a person commits any crime he does not belong to any profession or religion. Any per-

son who acts against our country is not to be linked to any Profession or Religion.

In the same breath I want to profess that Char-

tered Accountancy is one of the noblest profes-sions and has been held in very high esteem ever

since. It is profession that is a partner in the na-tion building. That is why media takes immediate

note of any act unbecoming of a chartered ac-countant.

As a responsible professional the Chartered Ac-

countants adhere to the basic precincts on which the profession has been known for and has thrived over the years, Ethics and Integrity not only in

discharging the professional duties but also as responsible individual citizens.

India's true potential of GDP growth rate lies somewhere near 10%: Moody's

"India's negative output gap is showing little signs of closing in 2015. Though the economy has been in a cyclical upswing since late 2014, it has failed to gain broader momentum, global rating firm," Moody's said in a report."Green shoots are slowly emerging, but the government's failure to deliver promised reforms is the major impediment. India's political infighting is denting business confidence," says the Moody's report authored by Faraz Syed. He further added that key reforms such as the land acquisition bill, flexible labour laws, and the goods and services tax have failed to pass parliament. And given the political seesaw, these are unlikely to be delivered until later this year or even 2016.

CA. Pramod Jain

Page 2

Lunawat Bulletin

Compliance Due Dates

Due Date Related to Particulars

04.08.2015 (Tuesday)

DVAT File DVAT & CST quarterly return in electronic form for the quarter ended June 2015. Date extended from 25.07.2015 to 04.08.2015.

06.08.2015 (Thursday)

SERVICE TAX Deposit Service Tax for the month of July 2015 for Company Assessee & for the quarter ended on 30.07.2015 for Other Assessees.

07.08.2015 (Friday)

DVAT

Issue of TDS certificates for the tax deducted at source under Rule 59(2).

07.08.2015 (Friday)

TDS/TCS (Income Tax)

• Deposit TDS/TCS for deductions/collections made during the month of July 2015.

• Deliver copy of Form 15G/15H to CCIT/CIT for forms received in month of July2015.

15.08.2015 (Saturday)

EPF Deposit PF under Employees Provident Fund & Misc. Provision Act, 1952 deducted for the month of July 2015.

15.08.2015 (Saturday)

DVAT Deposit tax deducted at source under DVAT Act for the month of July 2015

15.08.2015 (Saturday)

TDS/TCS (Income Tax)

Quarterly TDS certificate for the quarter ending June 30, 2015 (in respect of tax deducted for payments other than salary) by a person being an office of the Government.

21.08.2015 (Friday)

ESI Deposit ESI under Employees State Insurance Act, 1948 deducted for the month of July 2015.

21.08.2015 (Friday)

DVAT Deposit DVAT and CST for the month ended July 2015.

22.08.2015 (Saturday)

TDS/TCS (Income Tax)

Issue of TDS Certificate for tax deducted under Section 194-IA in the month of July, 2015

31.08.2015 (Monday)

INCOME TAX • File Annual information return under section 285BA for the financial year 2014-15

• Due date for filing returns of income-tax and wealth tax for the assessment year 2015-16 other than a company; whose books of account are not required to be audited.

31.08.2015 (Monday)

DVAT Due Date of Online Filling of DP-1 for all registered dealers.

LIST OF HOLIDAYS

DATE DAY HOLIDAY

29.08.2015 Saturday Raksha Bandhan

15.08.2015 Saturday Independence Day

Page 3

August 2015

Income Tax

Date for Compliance Window under

The Black Money Act

CG has notified 30th September 2015, as the date on or before

which a person may make a declaration in respect of an undis-

closed asset located outside India under the compliance provi-

sions of the ‘Black Money Act’. The last date by which a person

must pay the tax and penalty in respect of the undisclosed for-

eign assets so declared shall be the 31st December, 2015.

The Black Money (Undisclosed Foreign Income and Assets) & Imposition of Tax Act, 2015 Act as passed by the Parliament and received the assent of the President on 26th May 2015. The Act contains provisions to deal with the menace of black money stashed away abroad. It, inter alia, levies tax on undisclosed assets held abroad by a person who is a resident in India at the rate of 30% of the value of such assets, provides for a penalty equal to 90% of the value of such asset, and also provides for rigorous imprisonment of three to ten years for wilful attempt to evade tax in relation to a undisclosed foreign income or asset. In the explanatory notes, the following provisions of the act have been explained:

1. Scope of compliance window 2. Time limits for declaration and making payment 3. Form for declaration 4. Declaration not eligible in certain cases 5. Circumstances where declaration shall be invalid 6. Effect of valid declaration

Explanatory Notes on Provisions relat-

ing to the Black Money Act

Authorization to issue Tax-Free Bonds

Central Government has authorized the following entities to

issue tax-free, secured, redeemable, non-convertible bonds dur-

ing the financial year 2015-16, aggregating to amounts men-

tioned therein:

Sl. No. Entities Allocated Amount of

bonds

(in crores)

1 National Highways Authority of India (NHAI)

24000.00

2 Indian Railways Finance Corpora-tion (IRFC)

6000.00

3 Housing and Urban Development Corporation (HUDCO)

5000.00

4 Indian Renewable Energy Develop-ment Agency (IREDA)

2000.00

5 Power Finance Corporation Limited (PFC)

1000.00

6 Rural Electrification Corporation Limited (REC)

1000.00

7 NTPC Limited 1000.00

CBDT has extended the time limit for submission of ITR V

forms relating to Income Tax Returns filed electronically

(without digital signature certificate) for AY 2013-14 (filed on

or after 1st April 2014 till 31st March 2015) and for AY 2014-15

(filed on or after 1st April 2014 till 30th June 2015). These ITR

Forms can now be submitted up to 31st October 2015 or within a

period of 120 days from the date of uploading of e-return,

whichever is later.

Extension for submission of ITR-V for AY 2013-14 & AY 2014-15

USA & India have signed an Inter-Governmental Agreement

(IGA) to implement the Foreign Account Tax Compliance Act

(FATCA) to promote transparency between the two nations in

tax matters. FATCA is rapidly becoming the global standard in

the effort to curtail offshore tax evasion. To date, the United

States has IGAs with more than 110 jurisdictions and is engaged

in related discussions with many other jurisdictions.

USA and India sign agreement to Share

Tax Information

Page 4

Lunawat Bulletin

Wealth Tax Return Filing Date Clarified & Extended

CBDT has clarified that with the extension of Due Date of filling

of Income Tax returns from 31st July 2015 to 31st August 2015

for Assessees who are not liable to get their accounts audited;

the Due Date of filing of Wealth Tax Return also stands extend-

ed to 31st August 2015 for such assessees.

EVC for electronically filed Income Tax

Returns

CBDT has provided a new way of e-filing of Income Tax Re-

turns through Electronic Verification Code which means a code

generated for the purpose of electronic verification of the person

furnishing the return of income. Principal DGIT or DGIT have

been authorized to specify the procedures, formats and standards

for the implementation of such process.

Cost Inflation Index notified for FY

2015-16

Central Government has notified the following Cost Inflation

Index for Financial Year 2015-16:

Financial Year Cost Inflation Index

2015-16 1081

The Black Money (Undisclosed Foreign

Income and Assets) & Imposition of Tax

Act & Rules 2015 notified

CBDT has notified “The Black Money (Undisclosed Foreign

Income and Assets) and Imposition of Tax Rules, 2015”.

FAQs on Tax Compliance for Undis-

closed Foreign Income and Assets

CBDT has recently notified “The Black Money (Undisclosed

Foreign Income and Assets) and Imposition of Tax Act, 2015”

& related Rules. In regard to the scheme, many queries have

been received from the public about the scope of the scheme and

the procedure to be followed.

CBDT targets 1 crore New Taxpayers

CBDT has set to achieve the target of getting 1 crore new tax-

payers throughout the country to Principal CCITs. The state-

wise target list has been issued to the authorities wherein from

Pune more than 10 lacs of new taxpayers are being targeted

which are highest of all given states/regions.

ITR 3, 4, 5, 6 & 7 Notified for A.Y. 2015-16

CDBT has notified ITR Forms ITR-3, ITR-4, ITR-5, ITR-6 &

ITR-7 for the Assessment Year 2015-16. The highlights are:

ITR-4

1. Details of Asset and Liability at the end of the year other

than those included in Part A – BS to be given for cases

where total income exceeds Rs. 25 lakh.

2. Details of Foreign Assets and Income from any source out-

side India are required to be given

3. Details of Income from outside India and tax relief claimed

4. Information regarding partnership firms in which partner

5. Declaration - critical assumptions specified in the advance

pricing agreement have been satisfied and all the terms and

conditions of the agreement have been complied with.

6. Details of all Bank Accounts held in India at any time dur-

ing the previous year (excluding dormant accounts).

7. No provision for transgender.

ITR-6

1. Corporate Identity Number (CIN) to be given.

2. Details of all Bank Accounts held in India at any time dur-

ing the previous year (excluding dormant accounts).

3. Declaration - critical assumptions specified in the advance

pricing agreement have been satisfied and all the terms and

conditions of the agreement have been complied with.

4. Details of Foreign Assets and Income from any source out-

side India

5. Expenditure incurred on corporate social responsibility

(CSR).

Page 5

August 2015

Corporate Laws

Introduction of Form MGT-7

As per General Circular No. 10 / 2015, MCA had been noti-fied Form MGT-7 and Form AOC-4,AOC-4 XBRL and AOC-4 CFS will be notified shortly.

• Company which holding a general meeting after giving a shorter notice as provided u/s 101(1) of the Act may also cir-culate Financial statements at such shorter notice.

• In case of a foreign subsidiary, which does not get its accounts audited as per legal requirements prevalent in the country of its incorporation, the parent Indian may place such unaudited accounts to comply with Section 136(1) and 137(1) as applicable.

• Accounts of Foreign subsidiaries would need to be translated in English (if required).

• Format of accounts of Foreign Subsidiaries should be in ac-cordance with requirement under Companies Act, 2013.In case it is not possible, a statement indicating the reasons for deviation may be placed along with such accounts.

Relaxation of Additional Fees

Clarification with regard to circulation and filling of Financial Statement

• MCA has been decided to relax the additional fee payable on Forms AOC-4,AOC-4XBRL and Form MGT-7 upto 31st October,2015.

• A company which is required to file its CFS, would be able to do so in the separate form for CFS without any additional fees upto 30th November,2015.

Goods & Services Tax (GST)

• The Cabinet approved National Investment & Infrastructure Fund (NIIF), a new consumer protection law, and allowed foreigners to invest in Alternate Investment Funds registered with market regulator Sebi.

• The key changes approved by the cabinet in the GST law is full five-year compensation to the states for possible loss of revenues, which is crucial to the government gaining support of states such as West Bengal and Odisha in the Rajya Sabha where the government lacks majority .

• The details of the 1% tax to be levied over and above the GST rates to compensate the manufacturing states for a possi-ble loss of revenue will be finalised while framing the rules, people familiar with the deliberations said.

• This 1% tax, which is seen as distorting the GST and causing cascading of taxes

• GST proposes to replace most central and state levies with one single tax and is projected to add as much as 2% to the country's GDP.

Government Clears GST Amendments

Central Board of Excise and Customs Specifies conditions, safe-

guards and procedures for issue of invoices, preserving records

in electronic form and authentication of records and invoices by

digital signatures namely:

• Use only class 2 or class 3 Digital certificates

• Assessee proposing to use or already using shall provide de-tails required to the jurisdictional Deputy Commissioner or Assistant Commissioner of Central Excise at least fifteen days in advance.

• Shall maintain separate records for separate Service tax regis-tration.

• Maintain records in electronic form for 5 years Note :- The same applies equally to Service Tax as well as Excise.

Conditions For Using electronic Form And

Digital Signatures

Service Tax

Page 6

Lunawat Bulletin

DVAT

The date for filing of DVAT return for quarter ending 30.06.2015 has been extended up to 04.08.2015.

Extension for submission of D-VAT Return for 1st Quarter FY 2015-16

Delhi Value Added Tax Act, 2015 - Noti-fied on 14th July, 2015

The following amendments have been made to the Delhi VAT Act 2015:-

• Goods specified in Fourth Schedule shall now be taxable at maximum rate of 30%.

• where any purchaser has been issued with a credit note or debit note in terms of returns or rejection of goods pur-chased, & for the same tax credit claimed by him in any tax period in respect of which the purchase of goods relates, be-comes short or excess, he shall compensate such short or excess by adjusting the amount of the tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned.

• Now the Commissioner may, as a condition of the payment of a refund, demand security from the person within “forty five days” instead of earlier limit of “fifteen days” from the date on which the return was furnished or claim for the re-

fund was made .

• If a registered dealer fails to apply for cancellation of his registration to the Commissioner, he shall be liable to pay, by way of penalty, a sum of Rs. 200/- per day of default subject to a maximum of Rs. 20000/-.

• If a registered dealer fails to surrender certificate of his regis-tration, he shall be liable to pay, by way of penalty, a sum of Rs. 200/- per day of default.

• If a registered dealer fails to file the return/revised return by the due date or fails to submit any document to be submitted along with the return, he shall be liable to pay, by way of penalty, a sum of Rs. 200/- per day of default.

• Section 86 sub-section (20), explanation shall be omitted whereby an objection to the decision of penalty could be raised under section 74 which shall be not allowed now.

• Tax Adjustment shall be allowed in case where a previously agreed consideration for sale has been altered by agreement with the recipient for any reason except where a discount or incentive is offered through a credit note after issuance of tax invoice in respect of a sale to a registered dealer. Earli-er, tax adjustments was allowed in case of discount also.

Lunawat Bulletin

OTHERS

• "Kalam never identified himself on the basis of region, religion or language. He saw himself as a human being first and viewed everyone in the same way,"

• The funeral of former President APJ Abdul Kalam was held in Rameswaram on Thursday with full military honours. Prime Minister Narendra Modi and Defence Minister Manohar Parri-kar were among those attending the last rites. The former presi-dent passed away after suffering a massive cardiac arrest while he was addressing students at IIM, Shillong on Monday even-ing. He was rushed to a hospital but failed to recover.

• “In Russia, Abdul Kalam will be remembered as a steadfast

advocate for strengthening friendly relations between our na-

tions who did a great deal to augment mutually beneficial Rus-

sian-Indian cooperation.” said Russian President

Working till his last breath, Dr Kalam was an inspiration to millions

Department of Telecommunication (DOT) to take up Audit of Telecom com-

panies on call drops

• "The TERM cells (field unit of DOT) have been asked to take up the special audit to assess the coverage/quality of service in metro/capital cities of all mobile operators network in order to assess the gravity of problem of call drops," Tele-com Minister Ravi Shankar Prasad

• The main reasons behind call drops are poor radio coverage, radio interference due to unauthorized use of repeaters or wi-max frequencies at international borders, loading of available spectrum, inadequate investment in network and change in pattern of traffic

RBI to Issue Rs 10 Coins to Mark In-ternational Yoga Day

• The Reserve Bank of India will shortly put into circulation Rs 10 coins to commemorate the International Day of Yoga which the Government of India has minted," RBI said

• The obverse side of the coins will bear Lion Capital of Ashoka Pillar in the centre with legend Satyamev Jayate inscribed below, flanked on the left periphery with the word Bharat in Devnagri script.

• While, on the right periphery it will be flanked with the word 'INDIA' in English.

• "It also bears the Rupee symbol and denominational value '10' in the international numerals below the Lion Capitol," RBI said.

• On the reverse, the coin will bear the logo of 'International Day of Yoga', with inscription 'Samanjasya avam Shanti ke Liye Yog' in Devnagri script and 'YOGA FOR HARMONY AND PEACE' around the logo and design.

• The date '21 JUNE' will at the bottom of the logo.

• The inscription 'Antarrashtriya Yog Divas' in Devnagri script on left periphery and 'INTERNATIONAL DAY OF YOGA' in English on the right periphery would be written on this side of the coin, RBI said.

• "These coins are legal tender as provided in The Coinage Act 2011. The existing coins in this denomination will also continue to be legal tender," RBI said.

Page 7

© 2015 Lunawat & Co. All Rights Reserved Information in this document is intended to provide only a general outline of the subjects covered. We recommend that you seek professional advice prior to initiat-ing action on specific issues. Lunawat & Co. does not take any responsibility for any loss arising from any action taken or not taken by anyone using this material.

Disclaimer

Lunawat Update

Page 8

August 2015

Our Services

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(LLP)

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Presentations

During July 2015, our partner CA. Pramod Jain gave following

presentations:

• “Specific Issues and Finalization of Audits under Companies

Act 2013” at Rohini CPE Study Circle of NIRC of ICAI

• “Finalization of Audits under Companies Act 2013” at

Chandigarh organized by Chandigarh Branch of NIRC of

ICAI.

• “Latest for Auditors under Companies Act 2013” at Karnal

organized by Karnal Branch of NIRC of ICAI.

• “Presentation on Recent Amendments in Companies Act

2013” at Bahadurgarh, Haryana organized by Rohtak

Branch of NIRC of ICAI.

• “Presentation on Recent Amendments in Companies Act

2013” at Times Internet Ltd., Gurgaon

Editorial Team: CA. Vikas Yadav, CA. Samta Jain, Raman Goyal

We may be contacted at:

We also have ASSOCIATES at :

Chennai, Kolkatta, Jalandhar, Pune,

Chandigarh, Udaipur, Vadodara,

Bangalore, Cochin, Indore, Jodhpur,

Jaipur, Bharatpur, Hyderabad,

Jharsuguda, Panipat, Ranchi & Gha-

ziabad.

• “Presentation on Auditor under Income Tax Act as

amended by Finance Act 2015” at Punjabi Bagh orga-

nized by West Delhi Study Circle of NIRC of ICAI

During July 2015, our partner CA. Rajesh Saluja gave fol-

lowing presentations:

• “Presentation on Commercial Thinking” at Bharti In-

fratel Ltd, Bhubaneswar

• “Raising Financial and Commercial Quotient”

atProgility India Pvt Ltd., Mumbai

• “Financial Statements Analysis” at Yes Bank Ltd.,

Mumbai

• “Presentation on Commercial Thinking” at Bharti In-

fratel Ltd, Patna