of central india regional council of the institute of ...icai-bhilai.org/wif/newsletters/52.pdfthe...

Of Central India Regional Council of The Institute of Chartered Accountants of India

BHILAI BRANCHBHILAI BRANCH

Dear Esteemed Colleagues,It is a great privilege to pen down my first

thcommunication as the 15 CHAIRMAN of

Bhilai Branch of CIRC of ICAI. I have taken st

over the charge on 21 February 2016 and I

am highly honored to chair this position. I

heartily thank the members of the

managing committee for reposing the

confidence in me. I also take this

opportunity to thank all the Past Chairmen

and members in profession for giving me this opportunity to serve the

Branch and the profession at large.

I along with the managing committee members dedicate

ourselves to the best of our ability, so as to take the branch to reach

further heights. I also seek support & co-operation from all senior

members and my professional colleagues to attain greater heights in

the coming year through your active participation in the activities of

branch.

At the outset, I would like to congratulate the immediate Past

chairman CA. Paras Chhajed, CICASA Chairman CA. R.K.Kothari and all

the members of the managing committee for bagging the CIRC Star

Branch Award and CICASA Star Branch Award in the Central India

Region.

Congratulations to the Winners of Council Elections

March is the month of change and budget lays down the very

foundation for the change in tax laws. ICAI has changed guards and

elected CA M. Devaraja Reddy as president & CA Nilesh S. Vikamsey as

vice president of ICAI. We heartily congratulate the new torch bearers

of our esteemed profession . We also heartily congratulate our newly

elected team of CIRC headed by CA Abhay Kumar Chhajed as

Chairman & CA Nitesh Gupta as Secretary for the year 2016 17.

E-NEW

S LET

TER

E-NEW

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Chief Editor

Joint Editor

CA. Sangeet Bakliwal

CA. Navin Kothari

CA. B. VishwanathCA. Shailesh Jain

CA. Paras ChhajjedCA. Kshitij Jain

CA. Ramandeep BhatiaCA. Mohit Kabra

Editorial Board

Contd... 2

ICAI BHAWAN, NEAR ANDHRA BANK, CIVIC CENTRE, BHILAI (C.G.) - 490006CONTACT - PH. NO. 0788-2228613, 4015125



The following members are selected as managing committee members for the

year 2016-17:

CA Churchill Jain - Ex-officio Member

CA Piyush Jain - Vice Chairman

CA Ajay Somani - Secretary

CA NitinLunia - Treasurer

CA Minesh Jain - CICASA Chairman

CA Rajesh Bafna - Executive Member

I would also like to congratulate the other newly elected office bearers of our

Bhilai branch & also to place record appreciation for the unstinted trust and support

of our colleagues.

Vision & Mission :

Ø To serve as the primary voice of the members & students.

Ø Ensure transparency in matters related to working of committee.

Ø To work for improving public perception & image of profession.

Ø To foster Networking amongst members & students.

Ø To upgrade quality & response time of services to members & students

With this mission & vision I would like to add some more words:

“Don't be afraid of Change, you may lose something good but you may gain

something better”

We have to adapt ourselves to face these new challenges in our profession. As

being dynamic to accept changes is the first and foremost requirement in our

profession.

A brief about the month of March programmes:

With able and great time by my side, we have started with a bang. We th

celebrated budget week right from the budget day by organizing a study circle on 29 th

Feb' 2016 and a Seminar on Budget on 6 Mar' 2016, covering both direct & indirect

tax aspects with Class of speakers. We have hosted this programme in association

with JCI in the presence of Hon'ble Chief Commissioner of Income Tax Shri K. C.

Ghumaria as chief guest. The programme was also witnessed by various

Contd... 3



Industrialists, bankers and other trade organizations for the benefit of businessmen

of our twin city & society at large.

This month is also vital for Bank Branch Audit, hence we have already th

announced a full day seminar on “BANK AUDIT” to be held on 19 March. CA

Amarjeet Chopra, the past president of ICAI, CA Yash Verma & CA Anil Kumar Saxena

have consented to address our members on the topic of Bank Audit.

I and on behalf of Managing Committee members take this opportunity to

wish all the members a VERY HAPPY & COLORFUL HOLI. We have also planned “Holi thMilan” for our members with their family on 20 March' 2016.

The success of every event lies with the active involved participation & co-operation

of every member. Hence we seek whole hearted support & participation in all the

events which will strengthen the brand image of Bhilai Branch & keep our Institute

Flag flying high.

I seek blessings from God the Almighty, and guidance & support from all of

you to discharge my duties diligently enabling me to serve members and aspiring CA

students as per their expectations and to sustain the high standards set by my

predecessors and reach your expectations for the progress of our beloved branch.

Before I sign off, Once again let me thank all our members for having given me

an opportunity to project my potential in right perspective to serve our Bhilai

Branch.

With warm regards,

For, Bhilai Branch of CIRC of ICAI

CA Mahavir Jain - Chairman



OVERVIEW OF THE UNION BUDGET 2016IntroductionThe much awaited Union Budget 2016 has finally been unveiled by the Hon'ble finance minister on

th29 February, 2016. The proposals are clearly oriented to support the “Make In India” initiative and foster entrepreneurship, attain development, especially of the poor, and those below the poverty line, galvanise infrastructure and continue tax reforms for the ease of doing business. There is reaffirmation as to the commitment to introduce the GST, and some subtle steps in that direction but, the proposals focus on tax administration reforms and increase in compliance. The introduction of the Krishi Kalyan Cess @ 0.5% of taxable services, though creditable, will increase (services) cost. Similarly, introduction of the levy of Central Excise Duty on the jewelry and clothing sector will increase costs. As has been a requirement of industry and trade, the CENVAT Credit law is the subject matter of some relaxation, especially to enable credit flows. The proposals overall have cast an intense spotlight on tax litigation with several proposals in the FM's speech in this respect: adding benches to the CESTAT and the SAT, pre-deposit norms fixed at 15% for income tax disputes pending at first appellate level, option for assessees to pay taxes and penalties in some cases (involving disputes pending before specific authority) to wind down litigation in order to achieve “settlement”, computerisation within DRT for litigation management. The adoption of the Justice Easwar Committee Report on simplifications in respect of certain Income Tax provisions is a welcome step.

Some of the key proposals/schemes are highlighted below for better understanding of my fellow Chartered Accountants:

DIRECT TAXES· Rates of income-tax – No Change in basic Exemption Limit. However, Surcharge @12% if

Income exceeds 1 Crore has been imposed with marginal relief.· Tax on Dividend Income: Taxability of dividend income @ 10% above threshold limit.

· STT- It is proposed to increase the STT rate from 0.017 percent to 0.05 per cent where option is not

exercised.

· Section 206C - Tax Collection at Source (TCS) on sale of vehicles, goods or services It is proposed that

the seller shall collect the tax at the rate of one percent from the purchaser on sale of motor vehicle of

the value exceeding ten lakh rupees (Rs.10 Lakh) and sale in cash of any goods (other than bullion and

jewellery), or providing of any services (other than payments on which tax is deducted at source

under Chapter XVII-B) exceeding two lakh rupees.(Rs.2 Lakh).

· Sunset Clause: Phasing out of deductions and exemptions in Section 10AA, 35AC, 35CCD, 80IA,80IAB

and 80IB,32 & 35 of the IT Act.

· Sec 80JJAA amended-Tax incentive for employment generation

· Section 47 of the Income-tax Act amended so as to provide that any redemption of Sovereign Gold

Bond under the Scheme, by an individual shall not be treated as transfer and therefore shall be

exempt from tax on capital gains with indexation benefit.

· Section 48 of the Act amended so as to provide that the capital gains, arising in case of appreciation of

rupee between the date of issue and the date of redemption against the foreign currency in which

the investment is made shall be exempt from tax on capital gains.



· 80GG amended so as to increase the maximum limit of deduction from existing Rs. 2000 per month to

Rs. 5000 per month.

· Section 56 - any shares received by an individual or HUF as a consequence of demerger or

amalgamation of a company shall not attract the provisions of clause (vii) of sub-section (2) of section

56.

· Section 87A - Rebate increased from Rs.2000 to Rs.5000 for specific income limit.

· Modification in conditions of special taxation regime for off shore funds Section 9A.

· Sec 44ADA –Presumtive taxation for Profession 50% if total gross receipts does not exceed Rs.50

Lakhs.

· Sec 44AD- Limit increased from Rs.1 Crore to Rs.2 Crore.

· Sec 36- Provsioning for Bad Debts for NBFC Companies.

· The Income Declaration Scheme, 2016 - Introduction of a new amnesty scheme for a short duration.

· The Direct Tax Dispute Resolution Scheme, 2016 – A welcome step initiative to mitigate dispute.

· Rationalization of tax deduction at source provisions relating to Section 192A, 194BB, 194C, 194LA,

194D, 194G, 194H, 194DA, 194EE,194K & 194L.

· Sec 43B included payments made to Railways.

· Time limit for carry forward and set off of such loss under section 73A of the Income-tax Act.

· Sec 50C in case of Registration of Immovable Properties.- where the date of the agreement fixing the

amount of consideration for the transfer of immovable property and the date of registration are not

the same, the stamp duty value on the date of the agreement may be taken for the purposes of

computing the full value of consideration.

· Filing of return of Income, Processing under section 143(1) be mandated before assessment,

Rationalisation of time limit for assessment, reassessment and re-computation.

· Rationalisation of time limit for assessment in search cases.

· Rationalisation of advance tax payment schedule under section 211 and charging of interest under

section 234C.

· Rationalisation of penalty provisions



Few amendments have been described in detail:

S.No Particulars Proposed Amendments

1

Rates of Income Tax

No change in the rate

of tax for Individuals, HUFs, AOPs, BOIs, Artificial Juridical Person, Firms,

Cooperative Societies and Local Authorities in the FY 2016 -

17.

In case of domestic company,

a)

if the total turnover or gross receipts of the company in the previous year 2014 15 does not exceed Rs. 5 Crore – Tax @

29%

b) Other Cases – tax @ 30% It is further proposed to levy a surcharge @15% on Individuals,

HUFs, AOPs, BOIs, Artificial Juridical Person and @12% on Firm, Cooperative Societies & Local Authorities having income exceeding Rs. 1 Crore.

Education Cess & Secondary & Higher Education Cess is proposed to be continued @2% and 1% respectively.

Insertion of a new Section 115BA: New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% plus surcharge and cess provided they do not claim profit

linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.

Under Section 87A Rebate increased from Rs.2000 to Rs.5000.

2

Taxation o f Income by way Of Dividend

It is proposed to tax dividend income in excess of Rs. 10 Lacs @10% in the case of an individual, Hindu undivided family (HUF) or a firm who is resident in India.

3

TCS on sale of vehicles;

goods or

services

Section 206C amended with effect from June 01, 2016 - Tax at the rate of 1% to be collected at source by the seller on:

1.

Sale of motor vehicle of value exceeding INR 10 lakhs2.

Sale in cash of any goods (except bullion and jewellery) 3.

Provision of services of value exceeding INR 2 lakh (excluding services on which payment is subject to TDS under Chapter XVII-B)

Not applicable to certain class of buyers subject to fulfillment of prescribed conditions

4

Benefit of additional depreciation

In order to rationalise the incentive of power sector , it is proposed to amend this section so as to provide that an assessee engaged in thebusiness of transmission of power shall also be allowed additional depreciation at the rate of 20% of actual cost of new machinery or plant acquired and installed in a previous year.

5

Tax incentive for Employment generation

It is proposed to extend the benefit to all assessees who are required to get their accounts audited u/s 44AB. Deduction under the proposed provisions will be available in respect of cost incurred on those employees whose total emoluments are less than or equal to Rs. 25,000/p.m.

It is also proposed to provide that in the first year of a new business, 30% of all emoluments paid or payable to the employees employed during the previous year shall be allowed as deduction.

It is further proposed to reduce minimum number of days of employment in a F.Y. from 300 days to 240 days and also the condition of 10% increase in number of employees every year is proposed to be done away.

However, no deduction shall be allowed in respect of cost incurred on those employees for whom the entire contribution is paid by the Government under the Employees' Pension Scheme notified in accordance with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.



6 Deduction U/S 80GG for Rent paid

It is proposed to amend section 80GG so as to increase the maximum limit of deduction from existing Rs. 2000 per month to Rs. 5000 permonth.

7 Taxability of shares under demerger/amalgamation

It is proposed to provide that any shares received by an individual or HUF as a consequence of demerger or amalgamation of a company

shall not attract the provisions of clause (vii) of subsection

(2) of section

56 of the Income –tax Act.

8 Interest deduction from House Property Income

It is proposed that second proviso of clause (b) of section 24 be amended to provide that the deduction under the said proviso on account of interest paid on capital borrowed for acquisition or construction of a self occupied house property shall be available if the acquisition or construction is completed within 5 years from the end of the financial year in which capital was borrowed earlier it was 3 Years.

9 Taxation of unrealised rent & arrears of rent

New section 25A Provide that the amount of rent received in arrears or the amount of unrealised rent realised subsequently by an assessee shall be charged to income tax in the financial year in which such rent is received or realised, whether the assessee is the owner of the property or not in that financial year.

30% of the arrears of rent or the unrealised rent realised subsequently by the assessee shall be allowed as deduction.

10 Presumptive taxation scheme for Professionals

It is proposed to insert a new Section 44ADA to provide for estimating the income of an assessee who is engaged in any profession referred to in subsection (1) of section 44AA such as legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession whose total gross receipts does not exceed Rs. 50 Lacs in a previous year, at a sum equal to 50% of the total gross receipts earned.

The scheme will apply to a resident assessee who is an individual, Hindu undivided family or partnership firm but not to Limited Liability partnership firm.

The

assessee will be deemed to have been allowed the deductions under section 30 to 38.

It is also proposed that the assessee will not be required to maintain books of account under sub-section (1) of section 44AA and get the accounts audited under section 44AB in respect of such income unless the assessee claims that the profits and gains from the aforesaid profession are lower than the profits and gains deemed to be his income under sub-section (1) of section 44ADA and his income exceeds the maximum amount which is not chargeable to income-tax.

11 Tax Audit U/S 44AB For Professionals

It is proposed to increase the threshold limit of total gross receipts, specified under section 44AB for getting accounts audited, from Rs. 25 Lacs to Rs. 50 Lacs in the case of persons carrying on profession.

12

Presumptive Taxation For Business Persons

To increase the threshold limit of Rs. 1 Crore specified in the definition of “eligible business” to Rs. 2 Crore.

That the expenditure in the nature of salary, remuneration, interest etc. paid to the partner as per clause (b) of section 40 shall not be deductible.

While

computing the income under section 44AD as the said section 40 does not mandate for allowance of any expenditure but puts restriction on deduction of amounts , otherwise allowable under section 30 to 38.

That where an eligible assessee declares profit for any previous year in accordance

with the provisions of this section and he declares profit for any of the five consecutive assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1), he shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which the profit has not been declared in accordance with the provisions of sub-section (1).

To provide that el igible assessee shall be required to pay advance tax.



13 Tax Incentive U/S 32AC

This provision is proposed to be amended to provide that the acquisition of the plant & machinery of the specified value has to be made in the previous year but installation may be made by March 31, 2017 in order to avail the benefit of investment allowance of 15%.

It is further proposed to provide that where the installation of the new asset is in a year other than the year of acquisition, the deduction under this sub-section shall be allowed in the year in which the new asset is installed.

14 Exemption from Section 206AA To some NR

It is proposed to amend the said section 206AA so as to provide that the provisions of this section shall also not apply to a non-resident, not being a company, or to a foreign company, in respect of any other payment, other than interest on bonds, subject to such conditions as may be prescribed.

This amendment will take effect from June 01, 2016.

15 Applicability of MAT on Foreign companies

It is proposed to amend the IT Act

to provide that with effect from April 01, 2001, the provisions of section 115JB shall not be applicable to a foreign If

-

1.

the assessee is a resident of a country or a specified territory with which India has an agreement referred to in sub-section (1) of section 90 or the Central Government has adopted any agreement under sub-section (1) of section 90A and the assessee does not have a permanent establishment in India in accordance with the provisions of such Agreement; or

2. the assessee is a resident of a country with which India does not have an agreement of the nature referred to in clause (i) above and the assessee is not required to seek registration under any law for the time being in force relating to companies.

This amendment is proposed to be made effective retrospectively from April 01, 2001 and shall accordingly applyin relation to assessment year 2001-02 and subsequent years.

16 Set Off

Losses

It is proposed to amend the provisions of the sub-section (2) of section115BBE to expressly provide that no set off of any loss shall be allowable in respect of income under the sections 68 or section 69 or section 69A or section 69B or section 69C or section 69D.

17 Form 15G/15H for rental payments

It is proposed to amend the provisions of section 197A for making the recipients of payments referred to in section 194-I also eligible for filing self-declaration in Form no 15G/15H for non-deduction of tax at source in accordance with the provisions of section 197A as there may be cases where the tax payable on recipient’s total income, including rental payments, will be nil.

18 Processing Of Return U/S 143(1)

It is proposed to amend sub-section (1D) of the aforesaid section to provide that before making an assessment under sub-section (3) of section 143, a return shall be processed under sub-section (1) of section 143.

19 Interest On Refund

It is proposed to amend section 244A to provide that in cases where the return is filed after the due date, the period for grant of interest on refund may begin from the date of filing of return

It is further proposed to provide that an assessee shall be eligible to interest on refund of self-assessment tax for the period beginning from the date of payment of tax or filing of return, whichever is later, to the date on which the refund is

granted.

For the purpose of determining the order of adjustment of payments received against the taxes due, the prepaid taxes i.e. the TDS, TCS and advance tax shall be adjusted first.



20 Section 43BIncluded payment to Railway

Section 43B is proposed to be amended to provide that any

sums payable to Railways for the use of railway assets shall be allowed to be deducted as business income in a PY only if the same has been paid on or before the due date of filing of return for the relevant PY. Other -wise, the deduction will be available in the PY in which such sum is actually paid.

Proposed amendment will be effective from April 01, 2017 and will apply in relation to AY 2017-18 and subsequent AYs.

21

Taxation

of Income from 'Patents' [Section 115BBF of the IT Act]

It is proposed that where the total income of the eligible assessee includes any income by way of royalty in respect of a patent developed and registered in India, such royalty shall be taxable at th e rate of 10% (plus applicable surcharge and cess) on the gross amount of royalty. No expenditure or allowance in respect of such royalty income shall be allowed under the IT Act.

22

Tax Incentives for Start-ups [Section 54EE and 54GB of the IT Act]

It is proposed to provide a deduction of 100% of the profits and gains derived by an eligible start -up from a business involving innovation development, deployment or commercialization of new products, processes or services driven by technology or intellectual property for a period of 3 consecutive years. This benefit would be available to a start -up which is setup before April 01, 2019.

“Eligible start up” means a company engaged in eligible business which fulfils the following conditions:

1.

It is incorporated on or after the April 01, 2016 but before April 01, 2019;

2.

The total turnover of its business does not exceed INR 25 crores in any previous years beginning on or after April 01, 2016 and ending on March 31, 2021;

3.

It holds a certificate of eligible business

from the inter -ministerial board of certificate as may be notified

Accordingly, a new Section 54EE has been inserted to provideexemption from capital gains tax, if the long term capital

gains proceeds are invested by an assessee in units of funds

notified by the Central Government, provided that the

amount remains invested for three years. The investment inthe units of the specified fund would be allowed up to INR 50lakhs.

Further, if an individual/HUF intends to invest (through

purchase of shares) in a

start-up by selling a residential

property, such sale shall be exempt from long term capital

gains. Such benefit is available only when such individual/HUFinter-alia holds more than 50% shares in the invested start

up.

23

Advance Tax & Interest U/S 234c

Section 211 is proposed to be amended to provide that all asseesses (other than an eligible assessee in respect of an eligible business referred to in Section 44AD of the IT Act) shall be liable to pay advance tax in 4 installments.

Eligible assessee opting for computation of profits or gains ofbusiness on presumptive basis under Section 44AD shall be

required to pay advance tax in one installment on or before15th day of the month of March of each FY.

Consequential amendments have also been proposed under Section 234C providing for payment of interest in case of short-fall in payment of advance tax. This amendment will be effective from June 01, 2016 and will apply from AY 2017-18.



24 Incentivising first time home buyers

Deduction of up to Rs. 50,000 for interest on loans up to a maximum of Rs 35 lakhs where the value of the house property purchased does not exceed Rs 50 lakhs

Applicable to loans sanctioned from 1st April 2016 to 31 March 2017

Section Income Head Existing Threshold Limit

Proposed Threshold Limit

Effective From 01st June 2016

192A Payment of accumulated balance due to an employee

30,000 50,000

194BB Winnings from Horse Race 5,000 10,000 194C Payments to Contractors Aggregate

annual limit of 75,000

Aggregate annual limit of 100000

194LA Payment of Compensation on acquisition of certain Immovable Property

2,00,000 2,50,000

194D

Insurance commission

20,000

15,000

194G

Commission on sale of lottery tickets

1,000

15,000

194H

Commission or brokerage

5,000

15,000

Rationalization of TDS provisions [Sections 192A to 194L of the IT Act]The existing threshold limits for TDS in certain specified cases are proposed to be revised as

follows:

The existing rates for TDS in certain specified cases are proposed to be revised as follows:

Section Income Head Existing Rate of TDS

Proposed rate of TDS

Effective From 01st June 2016

194DA Payment in respect of Life Insurance Policy

2% 1%

194EE Payments in respect of NSS Deposits

20% 10%

194D Insurance commission 10% 5%

194G Commission on sale of lottery tickets

10% 5%

194H Commission or brokerage 10% 5%

The following provisions which are not in operation are proposed to be omitted:

Section Income Head Proposal

194K Income in respect of Units Proposed to be omitted w.e.f. June 01,

2016 194L Payment of Compensation on acquisition of Capital Asset



S.No Description of Services Amendments Effective From

1 Exemption with respect to construction, erection, commissioning or installation of original works pertaining to monorail or metro in respect of contracts entered into on/after 01.03.2016, has been withdrawn.

01.03.2016

2 Following services have been exempted:

Services by way of construction, erection, commissioning, etc. in respect of

a)

housing projects under Housing For All (HFA) (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY)

b)

low cost houses up to a carpet area of 60 meter square in a housing project under “Affordable housing in Partnership “component of PMAY.

c)

low cost houses up to a carpet area of 60 meter square in a housing project under any housing scheme of the State Government.

Services provided by the Indian Institutes of Management (IIM) to their students, by way of the specified educational programmes.

01.03.2016

3 With a view to broaden the tax base, following exemptions are to be withdrawn:

services provided

by-

a)

a senior advocate to an advocate or partnership firm of advocates providing legal service; and

b) person represented on an arbitral tribunal to an arbitral tribunal

c)

transport of passengers by ropeway, cable car or aerial tramway

01.04.2016

4 Hitherto, service tax payable on a performance in folk or classical art forms of

music/ dance/ theatre is exempt provided the consideration therefor exceeds

Rs. 1,00,000. This limit has been increased to Rs. 1,50,000.

01.04.2016

5 Krishi Kalyan Cess @ 0.5%

on the value of taxable

service to be levied on all taxable services with effect

from 1st June, 2016

01.06.2016

6 Refund of service tax on services used beyond the

factory or any other place or premises of production

or manufacture of the said goods, for export of the

said goods allowed retrospectively, for the period July 01, 2012 to February 01, 2016.

01.07.2012

7 Service tax exemption withdrawn for import of goods by vessel from outside India to customs station in India

01.06.2016

8 Levy of service tax on air-conditioned stage carriage for transportation of passengers

01.06.2016

9 Annual Return for specified assessees to be filed by 30 November

01.04.2016

INDIRECT TAXESService tax



10 Interest rates for delayed payment of service tax reduced from existing slabs of 18/24/30% to flat rate of 15%

Interest rates where service provider collected but not deposited service tax proposed at 24%

Interest subvention of 3% to small service providers with revenue

upto Rs 60 Lacs

Normal period for issuance of Show Cause Notice increased from 18 to 30 months

Indirect tax Dispute Resolution Scheme 2016 introduced to reduce litigations

Monetary limit for prosecution offences to be enhanced from Rs 50 lakh to Rs 2 crores

Penalty proceedings against Director/ Manager/ Officer of Company for evasion or failure to pay service tax shall be deemed to be concluded if main demand/ proceeding is closed

Date of enactment of Finance Bill, 2016

11

Following services removed from list of domestic reverse charge:

a)

Legal services

provided by senior advocates.

b)

Mutual fund agents/ brokers

providing services to Fund/ AMC.

01.04.2016

12 Number of service tax returns increased from 2 to 3,

i.e. 2 half-yearly and 1 yearly01.04.2016

ExciseKey changes in Excise1. Section 11A is being amended so as to increase the period of limitation from one year to

two years in cases not involving fraud, suppression of facts, willful misstatement, etc.2. Clean Energy Cess has been renamed as Clean Environment Cess, increased from Rs. 200/tonne to

Rs.400/tone.

3. Infrastructure cess levied on motor vehicles ranging from 1% to 4%.

4. Number of excise related returns reduced from an effective 27 to 13, i.e. 12 monthly and 1 yearly.

5. Provision of revising excise related returns introduced.

6. Where invoices are digitally signed, the manual attestation of copy of invoice, meant for

transporter, is not required.

7. Reduction in rates of interest to 15% from 18%

8. In case of finalization of provisional assessment, the interest will be chargeable from the original

date, of payment of duty

9. Tariff value in respect of specified articles of apparels, clothing accessories and other specified

made up textile articles increased from 30% to 60%.

10. Existing abatement of 70% on value of specified articles of jewellery done away with; option to pay

1% duty without CENVAT credit or 12.5% duty with CENVAT credit.



11. Retail Sales Price (RSP) based abatement on all footwear increased from 25% to 30%.

12. Some Items that will become cheaper:

a. Refrigerated containers for food processing

b. Fertilisers

c. Footwear

d. Centrifugal pump

e. Hybrid electric vehicles

f. Dialysis equipments

g. Ready mix concrete

13. Some Items that will become costlier:

a. Mineral water

b. Cold drinks

c. Tobacco and Tobacco products

d. Readymade garments

e. Precious metals and jewellery

f. Air fares (subsequent to increase in ATF)

g. Mobile phones



CHATTISGARH STATE BUDGET HIGHLIGHTS 2016-17

· Rate of VAT on 14% goods enhanced to 14.50%.

· Cycle / Cycle parts exempt from VAT.

· Ghee, Paneer and Khowa manufactured within CG exempt from VAT.

· Batter of Idli and Dosa exempt from VAT.

· Cleaning devices such as Broom (Jhadu), Moup (Pochha), Brush and Wipers exempt from VAT.

· On Wire Nails VAT reduced from 14% to 5%.

· On Mobile handset VAT reduced from 14% to 5%.

· Iron Ore, Pig Iron, Iron Ore Pellet, Sponge Iron, Ingot, billet and Ferro Alloys VAT reduced to 2%. (These goods can be sold interstate without C-form @ 2%)

· Electro forged Gratings rate of CST reduced to 1% with C-form.

· Components of boiler if not suffered VAT, then Entry Tax would be 5%.

· Rate of Entry Tax on limestone revised to Rs.45/- PMT.

· Coconut oil withdrawn from the list of Edible Oil and would be taxed @14.50%.

· VAT rate on Diesel and Petrol would continue as it is.

Procedural amendments:

· Provisions of Revision withdrawn: As per this amendment, the provision for revision by dealer is withdrawn. The Dealer has to file only Appeal within 30 days from the date of receipt of the order with required part payment as provided in Sec.48. However, provisions for suo-moto Revision by the Commissioner would continue as it is.

· Pre-deposit Amount enhanced: In case of first Appeal minimum amount of pre-deposit amount enhanced from 10% to 15%.

· Penal rate of interest withdrawn: Now the rate of Interest would be flat 1.50%.

· Non availability of ITR: No ITR available where the finished goods are exempt even by way of Notification.

· Non availability of ITR: No ITR would be allowed in case if the goods are stock transferred to other State.

· Revision of Annual Statement: One time facility to revise Annual Statement has been brought it. This is a good move by the State Government. Now any error made in Annual Statement could be rectified by filing revised return. However, it can be rectified only once.

· Quantum of Tax deposit fixed: Minimum 90% of the quarterly tax payable needs to be deposited thwithin 15 days from the end of the quarter. The provisions of monthly tax payable by 10 of

rdsubsequent month would continue. Tax for the 3 month which was payable up to 30 days of subsequent month would now be payable within 15 days of subsequent month (90% of the said tax) and remaining 10% within remaining 15 days of subsequent month.

· Amendment in Penal Provision: In the case of tax evasion of under assessment now, along with penalty interest would also be levied. Earlier only penalty was levied. The provisions of penalty in the range of 1 time to 5 times has now been reduced to 1.5 times to 2 times

AS ANNOUNCED BY HON'BLE C.M ON 09.03.2016 TO BE

Amendment in Rate of Tax:

EFFECTIVE FROM 01.04.2016



Managing Committee 2016-17



Sub-Committee 2016-17

CA. J. L Jain Direct TaxCA. N. K. Taunk Direct Tax (Corporate)CA. Sanjeev Agrawal Commercial and Allied LawsCA. S. C. Lekhwani Project FinanceCA. Suresh Kothari Company Law MattersCA. L. N. Agrawal Banking and Networking of FirmsCA. R. K. Kothari Direct Tax (HUF)CA. Arvind Chand Surana Direct Tax (TDS Matters)CA. Paras Chhajjed Direct Tax (Tax Audit)CA. Sanjay Khandve Indirect TaxesCA. Ramesh Sonchhatra Direct Tax (ITAT & Sett. Comm.)

CA. Rakesh Dhodhy ChairmanCA. Padam Chand Baradia Co-ChairmanCA. Shripal Kothari Co-ChairmanCA. B. M. Surana MemberCA. Suresh Kothari MemberCA. Arvind Chand Surana MemberCA. Harsh Jain Member

CA. Amit Rai ChairmanCA. Anand Jimnani Co-ChairmanCA. Navneet Jain Co-ChairmanCA. Rupesh Jain MemberCA. Sumeet Bahadur MemberCA. Ajay Jain MemberCA. Varsha Jain MemberCA. Anal Maroti MemberCA. Vikrant Sharma Member

Knowledge Empower Committee

Branch Infrastructure Committee

CPE Committee




CA. Nitin Rungta ChairmanCA. Naveen Jain Co-ChairmanCA. Deepak Jain Co-ChairmanCA. Prateek Agrawal MemberCA. Sourabh Goel MemberCA. Sanket Bakliwal MemberCA. Sunny Singhhal MemberCA. Naveen Khandelwal MemberCA. Vikas Golchha MemberCA. Shreyansh Kothari Member

CA. Pradeep Pal ChairmanCA. Priyesh Lekhwani Co-ChairmanCA. Suraj Soni MemberCA. Poonam Jain MemberCA. Deepti Dutta MemberCA. Akash Somani MemberCA. Priyanka Mittal Member

CA. Aditya Agrawal ChairmanCA. Sandesh Golchha Co-ChairmanCA. Ruchi Khatri Co-ChairmanCA. Jasmeet Birdi MemberCA. Sagar Talreja MemberCA. Ankit Gupta MemberCA. Shivam Chaudhary Member

Study Circle Committee

Young Member Committee

Recreation & Cultural Committee




CA. Harsha Jain ChairmanCA. Mohan Sethia Co-ChairmanCA. Prateek Deshlahara Co-ChairmanCA. Manoj Ahuja MemberCA. Sudhanshu Kumar MemberCA. Manish Agrawal MemberCA. Alankar Samaddar MemberCA. Gunjan Poddar Member

CA. Sangeet Bakliwal Chief EditorCA. Navin Kothari Joint EditorCA. B. Vishwanath Editorial BoardCA. Shailesh Jain Editorial BoardCA. Paras Chhajjed Editorial BoardCA. Kshitij Jain Editorial BoardCA. Ramandeep Singh Bhatia Editorial BoardCA. Mohit Kabra Editorial Board

CA. Chandana Jain ChairmanCA. Asha Sancheti Co-ChairmanCA. Smita Thakur MemberCA. Barkha Rathi MemberCA. Kripi Chawla MemberCA. Manjesh Agrawal Member

Industrial Relation Committee

E-Newsletter Committee

Women Member Committee




CA. Rohit Waghela ChairmanCA. Vineet Jain Co-ChairmanCA. Payal Jain Co-ChairmanCA. Chinay Solanki MemberCA. Anshul Shukla MemberCA. Vivek Agrawal MemberCA. Bhupesh Chaubey MemberCA. Ankit Sethia MemberCA. Siddharth Parakh MemberCA. Manish Pathak Member

CA. Nitin Agrwal ChairmanCA. Akshit Agrawal Co-ChairmanCA. Mitesh Jain MemberCA. Sourabh Sethia MemberCA. Vivek Gupta MemberCA. Mandeep Singh Arora Member

CA. Anand Dixit ChairmanCA. Anil Jhawar Co-ChairmanCA. Amit Jain MemberCA. Deepankar Samaddar MemberCA. Harish Sahu MemberCA. Alkaf Ganiwala Member

CA. Suresh Kothari ChairmanCA. Dilip Kumar Jain Co-Chairman

CA. Anil Jain Chairman

CA. Payal Agrawal Greeter

GMCS, Orientation & ITT Committee

IT Committee

Sports Committee

RRC Committee

Public Relation Officer



Photo Gallery

Seminar on Budget

Budget Discussion at Kalyan College

Handing Over & Taking Over

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