Highlights of Taxation

  • CBDT has issued Clarification for implementation of FATCA and CRS. An Inter-Governmental Agreement between India and USA was signed for implementation of Foreign Account Tax Compliance Act (FATCA). The Government of India has also joined the Multilateral Competent Authority Agreement (MCAA) for Automatic Exchange of Information as per Common Reporting Standard (CRS). Based on comments and feedback received from the financial institutions, a clarification has been issued on the issues relating to currency in which the reposting will be done, Procedure for furnishing the report, New Fixed Deposit account as Preexisting Account, Global Custodian and Local Custodian etc
  • CBEC has amended the negative list as provided under the provisions of the Services Tax by inserting a new entry after existing entry no. 47. Through this amendment, services provided by Government or a local authority to a business entity with a turnover up to rupees ten lakh in the preceding financial year shall be exempted from Service Tax leviable thereon under Section 66B of the said Act. The amendment shall come into effect on 1st April, 2016.
  • The unending saga of erroneous applicability of Dividend Distribution tax finally ends:

    During the past quarters, the provisions of law regarding buy-back of shares since introduction of dividend distribution tax (‘DDT’) under section 115Q of the Act w.e.f. 01.04.2003 till 31.05.2013 are being interpreted in a conflicting manner by the tax authorities and taxpayers, thereby giving rise to disputes on this issue. It has been contended that subsequent to introduction of section 115QA in the Act , the income-tax authorities, in some cases have sought to re-characterize the purchase consideration received on account of buy-back of shares, undertaken prior to 01.06.2013, as dividend and accordingly, subjecting the amounts so distributed by the companies to DDT. This has lead to un-ended litigation and undue harassment to the tax payers.

    In a welcome move, the CBDT has come up with a clarification so far as income arising to the shareholder on but back of shares between the period 01.04.2000 till 31.05.2013 would be taxed as capital gains in the hands of the recipient in accordance with section 46A of the Act and no such amount shall be treated as dividend in view of provisions of section 2(22)(iv).

  • VAT: Creation of E-commerce Zone and Ward No-300 for E-Commerce companies by VAT Depptt.
  • Section 12AA Deemed registration effective after 6 month from application. [CIT vs. Society for the Promn. Of Edn (Supreme Court)  Civil Appeal No. 1478 of 2016]
  • CBDT Mechanism to Identify of Duplicate PANs. ITBA-PAN Instruction No. 3 – (24/02/2016)
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About eMinds Legal

eMinds Legal

eMinds Legal is a Corporate Law Firm based in Gurgaon, India specializing in Corporate Legal, Corporate Secretarial and Compliance. The Firm comprises of a team of Corporate Lawyers and Company Secretaries with in-depth subject matter knowledge and participative industry experience of over 15 years.

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