AKGVG Weekly Insight · Income Tax Department carries-out swift investigations in more than 400 cases since on 08-11-2016 The Income Tax Department has carried out swift investigations

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AKGVG Weekly Insight 20th December, 2016

Coverage:

Income Tax Updates VAT Updates Customs Updates MCA Updates Accounting Updates RBI Updates

Regulatory Updates

Assembled & Edited by:

Team - AKGVG

AKGVG Weekly Insight | 20thDecember’ 16 | Page No. 1

AO’s advised not to reopen past assessments if current year’s turnover increased due to use of digital means

CBDT via circular no. 40/2016 dtd 09.12.2016, has advised its Assessing Officers, not to reopen past assessments merely on the ground that the current year’s turnover has increased. Mere increase in turnover, due to use of digital means, as a result of demonetization in a particular year cannot be a sole reason to believe that income has escaped assessment in earlier years.

(Click here to read more)

CBDT issues clarification filing of revised income tax returns bythe tax payers post demonetisation of currency

Ministry of Finance clarified that filing of revised return cannot be used as the tool for manipulating the figures of income, cash-in-hand, profits etc. with an intention to show the current year’s undisclosed income (including the unaccounted income held in the form of demonetized currency in the current year) in the earlier return. (Click here to read more)

Direct tax collections increased by 15.12% for November month

The figures for Direct Tax collections up to November, 2016 show that net collections are at Rs. 4.12 lakh crore which is 15.12% more than the net collections for the corresponding period last year. This collection is 48.67% of the total Budget Estimates of Direct Taxes for F.Y. 2016-17.However, after adjusting for refunds, the net growth in Corporate Income Tax (CIT) is collections is 8.75% while that in PIT collections is 23.89%. Refunds amounting to Rs.1,05,561 crore have been issued during April to November, 2016. (Click here to read more)

Seizure of Rs. 106.52 crore Cash and 127 kg Gold in the case of Sand mining Contractors at Chennai by the IT Department

The Investigation Directorate of Income Tax Department at Chennai conducted searches on 08.12.2016 in the case of a group engaged in sand mining. The group has sand mining license for the entire state of Tamil Nadu. Eight premises (six

residential & two offices) were covered in the search. During the search, Rs. 96.89 crore cash in Old High Denomination Notes and Rs. 9.63 crore in new Rs. 2000 currency notes along with gold weighing 127 kgs worth approximately Rs.36.29 crore were found and seized, as unaccounted assets. The search is still in progress at 4 out of total 8 premises.

(Click here to read more)

Income tax authorities declared two high value declarants under IDS to be fake:

Among the declarations received, two sets of declarations of high value were found to be suspicious in nature as they were being filed by persons of small means. The family of Mr. Abdul Razzaque Mohammed Sayed (self, son, wife & sister), who were shown as residents of Mumbai, filed a total declaration of Rs. Two lakh crore. Three out of the four PAN numbers were originally in Ajmer which were migrated to Mumbai in September 2016, where the declarations were filed. The other declaration was filed by one Mr. Mahesh kumar Champaklal Shah resident Ahmedabad for an amount of Rs. 13,860 cr

After due enquiry it was found that these declarants were persons declarations of suspicious nature and very small means and the declarations could have been misused. After due consideration the said were rejected by the dept. and has commenced enquiries against these declarants to determine the intention behind these false declarations.

(Click here to read more)

Income Tax Department carries-out swift investigations in more than 400 cases since on 08-11-2016

The Income Tax Department has carried out swift investigations in more than 400 cases since the demonetisation of Old High Denomination (OHD) currency announced by the Government on 8th November, 2016. More than Rs. 130 Crore in cash and jewelry has been seized and approximately Rs.2000 Crore of undisclosed income has been admitted by the taxpayers. Detecting serious irregularities beyond the Income-tax Act, the CBDT decided to refer such cases to the ED and the CBI, enabling them to examine the criminal conduct for immediate necessary action. More than 30 such references have already been made to the ED, and are being sent to the CBI. (Click here to read more)

AKGVG Weekly Insight |20th December’ 16 | Page No. 2

Provisional Identification Number/ User ID and Password

communicated by DVAT dept. to Registered Dealers, for GST

enrollment

As per the Provisions of Proposed Model GST Act, Provisional

ID and Password have been provided by the DVAT Dept. to

the registered dealers, which can be accessed by the Dealers

at DVAT website after login. This provisional ID and password

is to be used in updating dealer’s current information on the

GST Portal on the link at https://www.gst.gov.in for

enrollment which is scheduled for Delhi from 16 Dec. 2016 to

31 Dec. 2016. A DVAT Dealer/ Taxpayer should complete the

below mentioned steps for pre-registration/ enrollment with

the GST Portal:

Taxpayer has to enter the username and password as provided in the Table by the State VAT Authority/ DVAT Dept.

Enter Mobile Number and Email ID of the Authorized Signatory of the business entity. All future correspondence from the GST Portal will be sent on this registered Mobile Number and Email ID

Different One Time Passwords (OTPs) will be sent on Mobile and Email details entered. Enter the OTPs so sent on Mobile and Email as required.

Enter information and upload scanned images as required/ mentioned in pre-Registration Form.

For more information refer circular no. CTT/Policy/2016/751-

769 at http://dvat.gov.in/website/home.html

Jharkhand waives VAT on mobiles below Rs. 5000/- In an attempt to encourage mobile banking in rural pockets of the state, the Jharkhand government has decided to waive value added tax (VAT) on mobile phones worth below Rs. 5,000/-. (Click here to read more)

CBEC revises tariff value of edible oils, brass scrap, poppy

seeds, areca nut, gold and silver

CBEC via notification no.148/2016-Cus (NT), dt. 15-12-2016,

has fixed the tariff value of edible oils, brass scrap, poppy

seeds, areca nut, gold and silver at the rates prescribed in the

said notification. (Click here to read more)

MCA released mandate on initiatives and salient

achievements in the last six months

The mandate of the Ministry of Corporate Affairs primarily

concerns administration of the legal framework within which

companies registered in India are to operate along with some

other connected matters. Within this mandate rapid strides

have been made in the last six months to improve the legal

framework, simplify procedures and speed up decision-

making for ease of doing business to usher in a healthy

environment for investment and corporate growth.(Click here

to read more)

MCA Notifies ‘Companies (Transfer of Pending Proceedings)

Rules, 2016’ MCA has notified the Companies (Transfer of

Pending Proceedings) Rules, 2016 which shall come into force

w.e.f 15th December, 2016 except rule which shall come into

force from 1st April, 2017. (Click here to read more)

MCA notifies companies (Compromises, Arrangements and

Amalgamations) Rules, 2016

MCA vide its notification dated 14th December, 2016 has

notified the Companies (Compromises, Arrangements and

Amalgamations) Rules, 2016 under section 230 to 233 and

Section 235 to 240 of the Companies Act, 2013.These rules

are effective from 15th December, 2016.(Click here to read

more)

Customs Act

AKGVG Weekly Insight | 20th December’ 16 | Page No. 3

ICAI makes KYC norms from 01.01.2017

All the members of Institute of Chartered Accountants of India

(ICAI), who are in practice, are to mandatorily comply with the

KYC (Know your client) norms applicable w.e.f 01.01.2017.

(Click here to read more)

Guidance note on Reports in Company prospectuses (revised

2016), issued by Auditing and Assurance Standards Board

ICAI has issued a guidance note on 01.12.2016 for providing

guidance to the practitioners in reporting requirements that are

required in relation to financial information to be included in

the prospectus in case of initial public offering (IPO). The

guidance note, apart from the IPO, is also applicable to other

type of filings for the issue of securities (equity shares,

debentures and notes etc.) such as letter of offer (in case of

right issue), placement document (in case of Qualified

Institutional Buyers ‘QIBs’) etc. and filings for the issue of units

under Securities and Exchange Board of India (Infrastructure

Investment Trusts) Regulations, 2014, as amended and

Securities and Exchange Board of India (Real Estate Investment

Trusts) Regulations, 2014, as amended to the extent applicable.

The guidance note is drafted considering the offer or sale of the

securities in India.(Click here to read more)

Guidance Note on Accounting for Oil and Gas Producing

Activities (Ind AS)

Considering the peculiar nature of Exploration and Production

(E&P) industry, a guidance note is issued BY ICAI on 13.12.2016

to provide guidance on accounting for costs incurred on

activities relating to acquisition of interests in properties,

exploration, development and production of oil & gas. The

guidance note applies to costs incurred on acquisition of

mineral interests in properties, exploration, development and

production of oil and gas activities, i.e., upstream operations.

This guidance note also deals with other accounting aspects

such as accounting for abandonment costs and impairment of

assets that are peculiar 5 to the entities carrying on oil and gas

producing activities. It does not address accounting and

reporting issues relating to the transporting, refining and

marketing of oil and gas.(Click here to read more)

RBI orders banks to retain CCTV footage:

The Reserve Bank of India (RBI) asked banks to ensure that all

transactions at their branches and currency chests are done

under CCTV surveillance to prevent discrepancies and promote

transparency. And also top reserve recordings of their

operations from November 8 to December 30.

(Click here to read more)

RBI denies rumors on Axis Bank

The Reserve Bank of India has clarified that it has not initiated

any action to cancel the banking license of Axis Bank in the

wake of certain allegations about some serious irregularities in

transactions. (Click here to read more)

RBI releases Report on “Measuring Productivity at the Industry

Level – The India KLEMS Database

The Reserve Bank of India has placed on its website the Report

on “Measuring Productivity at the Industry Level – The India

KLEMS Database” (Data Manual) along with time series data on

productivity for 27 industries.(Click here to read more)

RBI’s fixed Rate Reverse Repo Operation on 10.12.2016

Taking into account the withdrawal of the incremental CRR

effective from the fortnight beginning December 10, 2016 and

with a view to provide flexibility to the banking system for its

liquidity management, the Reserve Bank of India has decided to

conduct Fixed Rate Reverse Repo operation on December 10,

2016 (Saturday) between 11.00 am and 12.00 noon.

(Click here to read more)

AKGVG Weekly Insight | 20thDecember’ 16 | Page No. 4

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be accurate in the future. No one should act on such information without appropriate

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