Tax Connect (52nd Issue) January 2016

TAX CONNECT – 52 nd Issue JAV & ASSOCIATES (24 Jan. 2016 – 30 Jan. 2016) Page 1 Chartered Accountants TAX CONNECT 52nd Issue 24 Jan 2016 – 30 Jan 2016 INCOME TAX CENTRAL EXCISE SERVICE TAX GST CUSTOMS STATE TAXES JAV & ASSOCIATES Chartered Accountants Kolkata: 1, Old Court House Corner ^To
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o House_ 1 st Floor Room No.-13 (North) Kolkata-70001 West Bengal Vadodara: Quarter no. 3/174 Gujarat Refinery Township Jawaharnagar Vadodara-391320 Gujarat Contact: +919331042424; +91931594980; +918697575185; +913322625203 Email: tb.chatterjee@dic.co.in; tb.chatterjee@yahoo.co.in; cavivekjalan@gmail.com; vivek.jalan@icai.org TAX CONNECT – 52 nd Issue JAV & ASSOCIATES (24 Jan. 2016 – 30 Jan. 2016) Page 2 Chartered Accountants Friends, Works Contract is one of the most disputed areas in Indirect Taxes. Courts across the Country have adjudicated on the subject but still the saga continues. We in The Bengal Chamber have received various requests from members over a period of time to dwell in detail on the subject. Hence we have decided to hold a Fulll day Work shop on VAT & Service Tax Issues in Works Contract in Park Hotel on 19 th February. The Seminar will focus on the following major topics – 1. The various entries of works contract in The Service Tax Law. 2. Open Issues in Works Contract in Service Tax. 3. Real Estate/ Construction Industry & Works Contract. 4. Works Contract in VAT in WB 5. Works Contract in VAT in other major states 6. Works Contract in GST regime. 7. Departmental Perspective on Works Contract. The Speakers would be – 1. T B Chatterjee – Chairperson Indirect Taxes Committee, BCCI 2. Pulak Saha – Partner, PWC 3. Vivek Jalan – Partner, JAV & Associates 4. K S Mani – Senior Director, Delloitte 5. A Jaiswal – Sr Manager, EY 6. Sri Khalid Anwar – Jt Commissioner, Commercial Taxes On the political front, the budget gossips are gaining ground now. Amidst circles it is also expected that there would be some major changes in Service Tax in this budget. Also Income Tax norms may certainly see some easing. In addition to this, one major change in PM Modi’s Ca
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￿ replace Mr Arun Jaitley as the Finance Minister. However, the PMO is the last word on the same and our PM keeps his cards close to his chest till the last minute. In Service Tax, CBEC has clarified that construction service provided by a builder to a landowner (who transfers his land/development rights to builder for getting, in return, constructed flats), should be valued in accordance with the Board Circular No. 151/2/2012-ST dated 10.2.2012 and not by Para 6.2.1 of the Education Guide 2012. Accordingly, the value of land with constructed flats shall be value of similar flats charged by the builder/developer from the other buyers at the time when the possession or right in the property of the said flats are transferred to the land owner through a conveyance deed or similar instrument. Just to reiterate that we remain available over a telecom or e-mail. Truly Yours Timir Baran Chatterjee M.Com, FCS, MBA (International Business)-IIFT, ACMA Vivek Jalan FCA, CIDT (ICAI), B. Com EDITORIAL TAX CONNECT – 52 nd Issue JAV & ASSOCIATES (24 Jan. 2016 – 30 Jan. 2016) Page 3 Chartered Accountants S. NO. TOPICS PAGE NO. 1] WORKSHOP ON VAT & SERVICES TAX IN WORKS CONTRACT ON 19TH FEBRUARY, 2016 4 2] COMPLIANCE CALENDAR 5 3] GOODS & SERVICE TAX (GST) - REPORT OF SUB COMMITTEE - II ON MODEL GST ACT, 2016 – LEVY & COLLECTION OF TAX : RECOVERY OF TAX NOT PAID/SHORT PAID/ERRONEOUSLY REFUNDED 6 4] CENTRAL TAXES a) SERVICE TAX 7 Case Law Valuation of the construction servi ce provided by a builder to a landowner, who transfers his land/development rights to builder Case Law No penalty is attracted on delayed payment of service tax for the reason bank ref used to take deposit in absence of PAN based registration number. b) CENTRAL EXCISE 8 Notification/Circular Increase in the Basic Excise Duty rates on Petrol and Diesel to Rs. 9.66/lit and Rs. 1 2.19/lit respectively Case Law Duty liability arises and commences from the date of the order of determination and not from the date of the actual liability especially when an order of determination always dates back to the actual date of liability c) CUSTOMS 9 Notification/Circular Increase in the rate of basic customs duty on certain specified medical device from 5% to 7.5% . Also, these medical will now attract 4% SAD. Notification/Circular Fixation of T V of Edible oil, Brass, Poppy seed, Areca nut, gold and Sliver Notification/Circular Krishnapatnam Sea port in Nellore, Andhra Pradesh to be the 19th sea port with facili ty of 24x7 Customs clearance for specified imports Notification/Circular Levy of definitive countervailing duty on import of Castings for wind-operated electricity generators exported from China d) INCOME TAX 10 Notification/Circular Amending Protocol in the Agreement between the Republic of India and t he Government of the Republic of Belarus effective from 19.11.2015 Notification/Circular Amendment in Rule 17 relating to exercise of options u/s 11 of Income-tax Act, 1961; two new forms inserted : Form 9A and Form 10 Case Law Interest paid on delayed payment of purchases is not interest within the definition of section 2(28A) of the Act, thus no TDS is required to be made. 5] STATE TAXES 11 Notification/Circular Andhra Pradesh: e-CST Way bills to be generated electronically for commodities figured in the CST RC – e-Waybills (VAT) to be generated for sensitive commodities figured in VAT RC Delhi: Extension in date for filing of reconciliation return for the year 2014- 15 to 29.02.2016 Nagaland : Introduction of e-Road permit mandatory for non-registered dealers fo r other purposes than sale West Bengal: West Bengal Sales Tax Act, 1994 - Appointment of Tax Recovery Officer , West Bengal Value Added Tax Act, 2003 - Appointment of Tax Recovery Officer INDEX TAX CONNECT – 52 nd Issue JAV & ASSOCIATES (24 Jan. 2016 – 30 Jan. 2016) Page 4 Chartered Accountants Workshop on VAT & Services Tax in Works Contract 10.00 a.m. onwards, 19th February, 2016 The Park Kolkata 17, Park Street, Kolkata 700 016 The Indirect Taxes Committee of The Bengal Chamber of Commerce and Industry is org anizing a Workshop on VAT & Services Tax in Works Contract from 10.00 a.m. onwards, on 19th February, 2016 at The Park Kolkata. The workshop will broadly deliberate on the following: • Works Contract under Service Tax • Real Estate / Construction Industry under Service Tax • Works Contract under WB VAT Act • Comparative Study of Works Contract under various States • GST on Real Estate / Construction • Issues including various Judgments of Courts on Works Contract under VAT & CST Eminent tax experts who shall be addressing and interacting with the participants on the above include: Mr. T B Chatterjee, Chairperson, Indirect Taxes Committee, The Bengal Chamber of Commerce and Ind ustry & Chief Corporate Officer, Legal and Corporate Affairs, DIC India Ltd Mr. Pulak Saha, Co-Chairperson, Indirect Taxes Committee, The Bengal Chamber of Commerce and In dustry & Partner - Tax & Regulatory Services, Price Waterhouse & Co. LLP Mr. Vivek Jalan, FCA, JAV & Associates, Chartered Accountants Mr. Avisekh Jaiswal , Sr. Manager – Indirect Tax, Ernst & Young LLP Mr. M S Mani , Senior Director, Deloitte Touche Tohmatsu India Private Limited Mr Khalid Anwar , Jt Commissioner, Commercial Taxes, Government of West Bengal We do hope that the programme will be relevant to you. You may please also nomin ate suitable representatives to attend the programme. For the purposes of registration, please email the enclosed Ready Reply Fo rm, suitably filled in, to sarbani@bengalchamber.com. The participation fee (inclusive of taxes) is Rs 4500/-. A discount of 10% is applicable for a group registration on 4 or more participants registering from the same organization. An early bird discount of 10% is also available for registrations before 5th February, 2016. Looking forward to receiving your kind confirmation. Yours faithfully, Subhodip Ghosh Director General Designate TAX CONNECT – 52 nd Issue JAV & ASSOCIATES (24 Jan. 2016 – 30 Jan. 2016) Page 5 Chartered Accountants Due date COMPLIANCES FROM 24th January, 2016 to 30th January, 2016 STATUTE 25 th January, 2016 Filing of monthly/quarterly VAT return Delhi (Quarterly, if filed online) Jharkhand (Monthly) Issuance of WCT certificate West Bengal VAT Act (Monthly) Mizoram VAT Act (Monthly Deposit of Entry tax of previous month Maharashtra VAT Act (if registered dealer) 28th January, 2016 Deposit of VAT of previous month Arunachal Pradesh VAT Act Filing of monthly/quarterly/annual VAT return Arunachal Pradesh (Monthly, if annual turnover>Rs. 1 crore) Arunachal Pradesh (Quarterly,if annual turnoverRs 5 crores) Himachal Pradesh VAT Act (Quarterly, if Turnover in PY is