August 2015 Serving Since 1968 Lunawat Bulletin

Market Watch Sensex 31.07.2015 : 28114.56 Terror has no Profession 30.06.2015 : 27780.83

CA. Pramod Jain NiftyNiftyNifty On 30th July 2015 Yakub Memon was hanged to Whenever a person commits any crime he does 31.07.2015 : 8532.85 death. It was rumoured in social media that he is a Chartered Accountant. He cleared the Chartered not belong to any profession or religion. Any per- 30.06.2015 : 8368.50 Accountancy course but did not practice the pro- son who acts against our country is not to be fession. I hereby categorically state after confirm- linked to any Profession or Religion. ing from the institute (ICAI) that he is not a CA In the same breath I want to profess that Char- since 1993. tered Accountancy is one of the noblest profes- Every now and then when a CA does any unwor- sions and has been held in very high esteem ever thy act which is not in the course of his profes- since. It is profession that is a partner in the na- Inside ….. sion, the media cries foul that a CA did it. Does tion building. That is why media takes immediate that person did the crime while performing his note of any act unbecoming of a chartered ac- 2 Compliance Due duties as a professional? The answer obvious is countant. Dates no. As a responsible professional the Chartered Ac- Income Tax 3-4 Why does the media target the CA profession countants adhere to the basic precincts on which Service Tax 4 specifically where the act committed by him is the profession has been known for and has thrived not in his professional capacity? I strongly object over the years, Ethics and Integrity not only in Corporate Law 5 to such statements and news. The act should be discharging the professional duties but also as condemned, discussed or criticised not the pro- responsible individual citizens. Service Tax & 5 fession. GST

D-VAT 6

Others 7 India's true potential of GDP growth rate lies

Lunawat Up- 8 somewhere near 10%: Moody's dates "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. Lunawat & Co. And given the political seesaw, these are unlikely to be delivered until later this year or even 2016. Chartered Accountants www.lunawat.com

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Compliance Due Dates

Due Date Related to Particulars

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

06.08.2015 SERVICE TAX Deposit Service Tax for the month of July 2015 for Company Assessee & for the quarter (Thursday) ended on 30.07.2015 for Other Assessees .

07.08.2015 DVAT Issue of TDS certificates for the tax deducted at source under Rule 59(2). (Friday)

07.08.2015 TDS/TCS • Deposit TDS/TCS for deductions/collections made during the month of July 2015. (Friday) (Income Tax) • Deliver copy of Form 15G/15H to CCIT/CIT for forms received in month of July2015.

15.08.2015 EPF Deposit PF under Employees Provident Fund & Misc. Provision Act, 1952 deducted for the (Saturday) month of July 2015.

15.08.2015 DVAT Deposit tax deducted at source under DVAT Act for the month of July 2015 (Saturday)

15.08.2015 TDS/TCS Quarterly TDS certificate for the quarter ending June 30, 2015 (in respect of tax deducted (Saturday) (Income Tax) for payments other than salary) by a person being an office of the Government.

21.08.2015 ESI Deposit ESI under Employees State Insurance Act, 1948 deducted for the month of July (Friday) 2015.

21.08.2015 DVAT Deposit DVAT and CST for the month ended July 2015. (Friday)

22.08.2015 TDS/TCS Issue of TDS Certificate for tax deducted under Section 194-IA in the month of July, 2015 (Saturday) (Income Tax)

31.08.2015 DVAT Due Date of Online Filling of DP-1 for all registered dealers. (Monday)

31.08.2015 INCOME TAX • File Annual information return under section 285BA for the financial year 2014-15 (Monday) • 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.

LIST OF HOLIDAYS

DATE DAY HOLIDAY

15.08.2015 Saturday Independence Day 29.08.2015 Saturday Raksha Bandhan

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August 2015

Income Tax Explanatory Notes on Provisions relat- Authorization to issue Tax-Free Bonds

ing to the Black Money Act Central Government has authorized the following entities to issue tax-free, secured, redeemable, non-convertible bonds dur- The Black Money (Undisclosed Foreign Income and Assets) & ing the financial year 2015-16, aggregating to amounts men- Imposition of Tax Act, 2015 Act as passed by the Parliament tioned therein: and received the assent of the President on 26 th May 2015. The Act contains provisions to deal with the menace of black money Sl. No. Entities Allocated stashed away abroad. It, inter alia, levies tax on undisclosed Amount of assets held abroad by a person who is a resident in India at the bonds rate of 30% of the value of such assets, provides for a penalty (in crores) equal to 90% of the value of such asset, and also provides for 1 National Highways Authority of 24000.00 rigorous imprisonment of three to ten years for wilful attempt to India (NHAI) evade tax in relation to a undisclosed foreign income or asset. In 2 Indian Railways Finance Corpora- 6000.00 the explanatory notes, the following provisions of the act have tion (IRFC) been explained: 3 Housing and Urban Development 5000.00 Corporation (HUDCO) 1. Scope of compliance window 4 Indian Renewable Energy Develop- 2000.00 2. Time limits for declaration and making payment ment Agency (IREDA) 3. Form for declaration 5 Power Finance Corporation Limited 1000.00 4. Declaration not eligible in certain cases (PFC) 5. Circumstances where declaration shall be invalid 6 Rural Electrification Corporation 1000.00 6. Effect of valid declaration Limited (REC) 7 NTPC Limited 1000.00

USA and India sign agreement to Share Tax Information

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.

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

CBDT has extended the time limit for submission of ITR V forms relating to Income Tax Returns filed electronically Date for Compliance Window under (without digital signature certificate) for AY 2013-14 (filed on The Black Money Act or after 1 st April 2014 till 31 st March 2015) and for AY 2014-15 st th (filed on or after 1 April 2014 till 30 June 2015). These ITR CG has notified 30 th September 2015, as the date on or before st Forms can now be submitted up to 31 October 2015 or within a which a person may make a declaration in respect of an undis- period of 120 days from the date of uploading of e-return, closed asset located outside India under the compliance provi- whichever is later. 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 31 st December, 2015. Page 3

Lunawat Bulletin

CBDT targets 1 crore New Taxpayers Wealth Tax Return Filing Date Clarified & Extended CBDT has set to achieve the target of getting 1 crore new tax- payers throughout the country to Principal CCITs. The state- CBDT has clarified that with the extension of Due Date of filling wise target list has been issued to the authorities wherein from of Income Tax returns from 31 st July 2015 to 31 st August 2015 Pune more than 10 lacs of new taxpayers are being targeted for Assessees who are not liable to get their accounts audited; which are highest of all given states/regions. the Due Date of filing of Wealth Tax Return also stands extend- ed to 31 st August 2015 for such assessees. EVC for electronically filed Income Tax ITR 3, 4, 5, 6 & 7 Notified for A.Y. 2015- Returns 16 CBDT has provided a new way of e-filing of Income Tax Re- turns through Electronic Verification Code which means a code CDBT has notified ITR Forms ITR-3, ITR-4, ITR-5, ITR-6 & generated for the purpose of electronic verification of the person ITR-7 for the Assessment Year 2015-16. The highlights are: furnishing the return of income. Principal DGIT or DGIT have ITR-4 been authorized to specify the procedures, formats and standards 1. Details of Asset and Liability at the end of the year other for the implementation of such process. than those included in Part A – BS to be given for cases where total income exceeds Rs. 25 lakh. Cost Inflation Index notified for FY 2. Details of Foreign Assets and Income from any source out- 2015-16 side India are required to be given 3. Details of Income from outside India and tax relief claimed Central Government has notified the following Cost Inflation 4. Information regarding partnership firms in which partner Index for Financial Year 2015-16: 5. Declaration - critical assumptions specified in the advance Financial Year Cost Inflation Index pricing agreement have been satisfied and all the terms and 2015-16 1081 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). FAQs on Tax Compliance for Undis- 7. No provision for transgender. closed Foreign Income and Assets ITR-6 1. Corporate Identity Number (CIN) to be given. CBDT has recently notified “The Black Money (Undisclosed 2. Details of all Bank Accounts held in India at any time dur- Foreign Income and Assets) and Imposition of Tax Act, 2015” ing the previous year (excluding dormant accounts). & related Rules. In regard to the scheme, many queries have been received from the public about the scope of the scheme and 3. Declaration - critical assumptions specified in the advance the procedure to be followed. 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). 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”.

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August 2015

Corporate Laws Goods & Services Tax (GST)

Introduction of Form MGT-7 Government Clears GST Amendments

As per General Circular No. 10 / 2015, MCA had been noti- • The Cabinet approved National Investment & Infrastructure fied Form MGT-7 and Form AOC-4,AOC-4 XBRL and AOC- Fund (NIIF), a new consumer protection law, and allowed 4 CFS will be notified shortly. foreigners to invest in Alternate Investment Funds registered with market regulator Sebi. Relaxation of Additional Fees • The key changes approved by the cabinet in the GST law is full five-year compensation to the states for possible loss of • MCA has been decided to relax the additional fee payable on revenues, which is crucial to the government gaining support Forms AOC-4,AOC-4XBRL and Form MGT-7 upto 31st of states such as West Bengal and Odisha in the Rajya Sabha October,2015. where the government lacks majority . • • A company which is required to file its CFS, would be able to The details of the 1% tax to be levied over and above the do so in the separate form for CFS without any additional GST rates to compensate the manufacturing states for a possi- fees upto 30th November,2015. 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 Clarification with regard to circulation and cascading of taxes • GST proposes to replace most central and state levies with filling of Financial Statement one single tax and is projected to add as much as 2% to the country's GDP. • 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 Service Tax 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 Conditions For Using electronic Form And applicable. Digital Signatures • Accounts of Foreign subsidiaries would need to be translated in English (if required). • Format of accounts of Foreign Subsidiaries should be in ac- Central Board of Excise and Customs Specifies conditions, safe- cordance with requirement under Companies Act, 2013.In guards and procedures for issue of invoices, preserving records case it is not possible, a statement indicating the reasons for in electronic form and authentication of records and invoices by deviation may be placed along with such accounts. 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.

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Lunawat Bulletin

DVAT

Delhi Value Added Tax Act, 2015 - Noti- • Section 86 sub-section (20), explanation shall be omitted fied on 14th July, 2015 whereby an objection to the decision of penalty could be raised under section 74 which shall be not allowed now. • The following amendments have been made to the Delhi VAT Act Tax Adjustment shall be allowed in case where a previously 2015 :- agreed consideration for sale has been altered by agreement • with the recipient for any reason except where a discount or Goods specified in Fourth Schedule shall now be taxable at incentive is offered through a credit note after issuance of maximum rate of 30%. tax invoice in respect of a sale to a registered dealer. Earli- • where any purchaser has been issued with a credit note or er, tax adjustments was allowed in case of discount also. 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. Extension for submission of D-VAT • If a registered dealer fails to file the return/revised return by Return for 1st Quarter FY 2015-16 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. The date for filing of DVAT return for quarter ending 30.06.2015 has been extended up to 04.08.2015.

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Lunawat Bulletin

OTHERS Department of Telecommunication RBI to Issue Rs 10 Coins to Mark In- (DOT) to take up Audit of Telecom com- ternational Yoga Day panies on call drops

• • "The TERM cells (field unit of DOT) have been asked to The Reserve Bank of India will shortly put into circulation take up the special audit to assess the coverage/quality of Rs 10 coins to commemorate the International Day of Yoga service in metro/capital cities of all mobile operators network which the Government of India has minted," RBI said in order to assess the gravity of problem of call drops," Tele- • The obverse side of the coins will bear Lion Capital of com Minister Ravi Shankar Prasad Ashoka Pillar in the centre with legend Satyamev Jayate • The main reasons behind call drops are poor radio coverage, inscribed below, flanked on the left periphery with the word radio interference due to unauthorized use of repeaters or wi- Bharat in Devnagri script. max frequencies at international borders, loading of available • While, on the right periphery it will be flanked with the spectrum, inadequate investment in network and change in word 'INDIA' in English. pattern of traffic • "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.

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

• "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

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August 2015 Lunawat Update

Presentations • “Presentation on Auditor under Income Tax Act as During July 2015, our partner CA. Pramod Jain gave following amended by Finance Act 2015 ” at Punjabi Bagh orga- presentations: nized by West Delhi Study Circle of NIRC of ICAI • “Specific Issues and Finalization of Audits under Companies Act 2013” at Rohini CPE Study Circle of NIRC of ICAI During July 2015, our partner CA. Rajesh Saluja gave fol- • “Finalization of Audits under Companies Act 2013” at lowing presentations: Chandigarh organized by Chandigarh Branch of NIRC of • “Presentation on Commercial Thinking ” at Bharti In- ICAI. fratel Ltd, Bhubaneswar • “Latest for Auditors under Companies Act 2013” at Karnal • “Raising Financial and Commercial Quotient ” organized by Karnal Branch of NIRC of ICAI. atProgility India Pvt Ltd., Mumbai • “Presentation on Recent Amendments in Companies Act • “Financial Statements Analysis” at Yes Bank Ltd., 2013” at Bahadurgarh, Haryana organized by Rohtak Mumbai Branch of NIRC of ICAI. • “Presentation on Commercial Thinking ” at Bharti In- • “Presentation on Recent Amendments in Companies Act fratel Ltd, Patna 2013” at Times Internet Ltd., Gurgaon

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Editorial Team: CA. Vikas Yadav, CA. Samta Jain, Raman Goyal Page 8