Daily Updates and News

CBDT

CENTRAL BOARD OF DIRECT TAXES (CBDT) has made further amendment the Income Tax Rules, 1962 by issuing the Income Tax (14th Amendment) Rules, 2016. The Rules focuses on the expenditures which does not form part of the total income of an assessee. Such expenditure includes aggregate of amount of expenditure directly relating to income which does not form part of total income and further an amount equal to one per cent of the annual average of the monthly averages of the opening and closing balances of the value of non relevant investment whose income does not form part of total income.

CBEC - Service Tax

Ministry of Finance has amended the Service Tax Rules, 1994 by issuing The Service Tax (Fourth Amendment) Rules, 2016. The amended rule provides an exemption for the legal services provided by “senior advocates” to a business entity with a turnover up to rupees 10,00,000 (Ten Lakh) in the preceding Financial Year. Further a firm of advocates or an advocate which is not a senior advocate has been covered under the ambit of Service Tax who provide representational services before any court, tribunal or authority, directly or indirectly, to any business entity located in the taxable territory.

MCA:

The Ministry of Corporate Affairs has modified the LLP e-Forms Form 2A, Form 4, Form 4A, Form 5, Form 23, Form 31 and Form 32. The new version of LLP e-Form 2A (Details in respect of designated partners and partners of Limited Liability Partnership), Form 4 (Notice of appointment, cessation, change in name/ address/ designation of a designated partner or partner. and consent to become a partner/ designated partner), Form 4A (Notice of appointment, cessation, change in particulars of a partners), Form 5 (Notice for change of name), Form 23 (Application for direction to Limited Liability Partnership (LLP) to change its name to the Registrar), Form 31(Application for compounding of an offence under the Act) and Form 32(Form for filing addendum for rectification of defects or incompleteness) available w.e.f. 9^th June, 2016. Only new version of e-form will be acceptable and stakeholders are requested to plan accordingly.

SEBI:

The Securities and Exchange Board of India has issued circular in respect of “Investor Protection Fund (IPF) of Depositories”. SEBI (Depositories and Participants) (Amendment) Regulations, 2012 require every depository to establish and maintain an Investor Protection Fund (IPF). Pursuant to the aforesaid committee recommendations, the SEBI (Depositories and Participants) Regulations were amended mandating the depositories to credit five per cent or such percentage as may be specified by the Board, of its profits from depository operations every year to the IPF. The guidelines or circular provides utilization of the IPF, Constitution and Management of the IPF, Contribution to the IPF and Investments of Fund.

Thanks & Regards,

Meetesh Shiroya