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Your Income Tax Advisor - AKGVG and Associates

Team of AKGVG and Associates comprises of income tax consultants and chartered accountants in Delhi who are capable in handling your accounts perfectly.<br>

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Your Income Tax Advisor - AKGVG and Associates

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  1. A K G V G &Associates CharteredAccountants Delivering Excellence AKGVG Weekly Insight-Vol II 09th January, 2017 Coverage: Income Tax Updates Customs Updates RBI Updates Accounting Updates MCA news Regulatory Updates Assembled & Edited by: Team - AKGVG AKGVG & Associates Chartered Accountants (Delhi | Gurgaon | Mumbai | Ahmedabad | Bangalore | Chennai) Head Office: 307, Pearls Corporate, Mangalam Palace, Sector -3, Rohini, New Delhi - 110085 Visit us on www.akgvg.com For more info: E-mail us at info@akgvg.com Ph: +91 9811118031, +91 9818330516, +91 9818314719

  2. Third Protocol also enables application of domestic law and measures concerning prevention of tax avoidance or tax evasion. (Click here to read more) CBDT amended Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules 2015 CBDT via Notification No. 123/2016, dtd 28.12.2016. has amended Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules 2015 with Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax (Amendment) Rules, 2016 which shall come into force on the date of its publication in the Official Gazette. The amended rules include manner of payment of sum under sub-sections (2) or (5) of section 32, service of notice, summons, requisition, order or any other communication, provisions relating to the approved valuer. Also Form no 8 for application for registration as an approved valuer has been inserted. CBDT signs three more advance pricing agreement The Central Board of Direct Taxes (CBDT) has started the year 2017 by entering into three unilateral Advance Pricing Agreements (APAs). The three APAs signed pertain to the Engineering Goods and Shipping sectors of the economy. The international transactions covered in these agreements include Intragroup Services and Support Services. With this, the total number of APAs entered into by the CBDT has reached 120 which includes 7 bilateral APAs and 113 Unilateral APAs. A total of 56 APAs (4 bilateral APAs and 52 unilateral APAs) have been entered into in the current financial year till date. Income tax officials raid premises of Buhari, ETA groups Income tax investigation wing officials had launched searches on the premises of Buhari Group and Gulf-based ETA Group of Companies in Chennai and other places following information on concealment of income by them. In Tamil Nadu, the searches were being carried out in Chennai, Tuticorin, Keelakarai (Ramanathapuram district) and a few other places. (Click here to read more) India and Singapore Sign a Third Protocol for amending the DTAA The India-Singapore DTAA at present provides for residence based taxation of capital gains of shares in a company. The Third Protocol amends the DTAA with effect from 1st April, 2017 to provide for source based taxation of capital gains arising on transfer of shares in a company. This will curb revenue loss, prevent double non-taxation and streamline the flow of investments. In order to provide certainty to investors, investments in shares made before 1st April, 2017 have been grandfathered subject to fulfillment of conditions in Limitation of Benefits clause as per 2005 Protocol. Further, a two year transition period from 1st April, 2017 to 31st March, 2019 has been provided during which capital gains on shares will be taxed in source country at half of normal tax rate, subject to fulfillment of conditions in Limitation of Benefits clause. Buhari Group has interests in construction, power, trading, engineering, real estate and shipping. The group also owns a famous engineering college on the outskirts of Chennai. ETA Group too has interests in various sectors. Its operations are spread across the country and abroad. (Click here to read more) The Third Protocol also inserts provisions to facilitate relieving of economic double taxation in transfer pricing cases. This is a ta?pa?er frie?dl? ?easure a?d is i? li?e with I?dia’s commitments under Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases. The AKGVG Weekly Insight | 09 thJanuary’ 17 | Page No. 1

  3. for exports, subject to the specified conditions referred in S. No. 284A of Notification No. 12/2012-Customs dated 01.03.2012. Customs Act CBEC notified deeper tariff concessions for specified goods imported from ASEAN Declaration form to be filled by resident Indians & NRIs for depositing Specified Bank Notes (SBNs) on arrival CBEC via Notification no 63/2016-Cus,dt. 31-12-2016, has amended notification No. 46/2011-Customs dated 01.06.2011 so as to provide deeper tariff concessions in respect of specified goods when imported from ASEAN under the India- ASEAN Free Trade Agreement w.e.f. 01.01.2017 and to carry out editorial changes as a result of HS 2017 changes. Central Government has specified, the grace period for tendering the SBNs as— for (a) who is a resident in India, the period ending on the 31st day of March, 2017; and (b) who is not resident in India, the period ending on the 30th day of June, 2017. For the period from up to 31.3.17 or 30.6.17, as applicable, a declaration form will be needed to be filled by resident Indians and Non-resident Indians coming to India and carrying SBNs for depositing these SBNs in the specified offices of RBI in India. At the airport/land customs stations etc on entry, customs stamp on the said forms shall be affixed and the same shall be submitted along with other documents to RBI offices. Circular no 60/2016-Cus,dt. 31-12-2016 CBEC has extended the Single Window Interface for Facilitation of Trade (SWIFT) to Exports Deeper concessional rate of BCD for specified goods imported under IJCEPA CBEC via Notification no 64/2016-Cus, dt. 31-12-2016, has further amended Notification No. 69/2011-Customs, dated 29th July, 2011 so as to provide a deeper concessional rate of basic customs duty in respect of tariff item 8408 20 20 [engines of a kind used for the propulsion of specified motor vehicles – of cylinder capacity exceeding 250 cc] and 8708 40 00 [gear box and parts thereof, of specified motor vehicles], w.e.f. 1st of January, 2017, when imported under the India- Japan Comprehensive Economic Partnership Agreement (IJCEPA) and to carry out editorial changes as a result of HS 2017 changes. CBEC notified deeper tariff concessions for specified goods imported from Malaysia under IMCECA CBEC via Notification no 65/2016-Cus, dt. 31-12-2016, has amended notification No. 53/2011-Customs dated 01st July, 2011 so as to provide deeper tariff concessions in respect of specified goods imported from Malaysia under the India- Malaysia Comprehensive Economic Cooperation Agreement (IMCECA) w.e.f. 01.01.2016 and to carry out editorial changes as a result of HS 2017 changes. CBEC notifies deeper tariff concessions for specified goods imported from Korea under CEPA CBEC via Notification no 66/2016-Cus, dt. 31-12-2016, has amended notification No. 31.12.2009 so as to provide deeper tariff concessions in respect of specified goods imported from Korea RP under the India-Korea Comprehensive Economic Partnership Agreement (CEPA) w.e.f. 01.01.2017 and to carry out editorial changes as a result of HS 2017 changes. The SWIFT project envisages that the importers and exporters would electronically lodge their customs clearance documents at a single point only with the customs. With the successful implementation of SWIFT for import, CBEC via Circular no 01/2017-Cus, dt. 04-01-2017, has proposed to implement online-release from Partner Government Agencies (PGAs) for exports from 05/1/2017 onwards as a pilot at Chennai, Delhi and Mumbai Air cargo complexes for CITES/ wildlife items. Under the pilot, shipping bills filed online on ICEGATE or through the service center will be referred to the concerned agency, namely WCCB, online for a "No Objection Certificate' (NOC), if any required. The selection of items to be referred to any agency will be based on criteria specified by the agencies. As in the case of imports, the list of Customs Tariff Heads (CTHs) for which goods require NOC from the Wildlife Crime Control Bureau, shall be published on ICEGATE 152/2009-Customs dated BCD exemption available to specific fabrics withdrawn CBEC via Notification no 62/2016-Cus,dt. 31-12-2016, has withdrawn BCD exemption, available to specified fabrics, of value equivalent to 1% of the FOB value of exports in the preceding financial year, for manufacture of textile garments AKGVG Weekly Insight |09thJanuary’ 17 | Page No. 2

  4. ICAI on 04.01.2017 issued exposure draft of Revised SA 720 ?The Audito?’s Respo?si?ilities Relati?g to Othe? I?fo??atio?? which is open for comments till 20.02.2017. This Standard on Auditi?g ?“A? deals with the audito?’s ?espo?si?ilities ?elati?g to other information, whether i?fo??atio? ?othe? tha? fi?a??ial state?e?ts a?d the audito?’s ?epo?t the?eo??, i??luded i? a? e?tit?’s a??ual ?epo?t. financial or non-financial Foreign citizens can exchange banned notes till January 31 The Reserve Bank has said foreign citizens can exchange foreign currency notes for Indian currency up to the limit of Rs.5,000 a week till January 31. Earlier, RBI had permitted foreign citizens to exchange foreign exchange for Indian currency notes up to a limit of Rs.5,000 a week till December 15, 2016 and later extended the facility till December 31.(Click here to read more) (Click here to read more) Exposure draft o? ?The Co??eptual Fra?e?ork for Ge?eral Purpose Financial Reporting by Local Bodies? released The Committee on Accounting Standards for local bodies of the Institute of Chartered Accountants of India has invited comments on various aspects of exposure draft of ?The Conceptual Framework for General Purpose Financial Reporting by Local Bodies? alo?g with the set of ?uestio?s. The e?posu?e draft is open for comments till 20. 01.2017.(Click here to read more) RBI issued clarification regarding Specified Bank Notes (SBNs) There had been various estimates on SBNs tendered in certain sections. RBI clarified that the periodical SBN figures released were based on aggregation of accounting entries done at the large no of currency chests all over the country. Now that the Scheme has come to an end on December 30, 2016, these figures would need to be reconciled with the physical cash balances to eliminate accounting errors/ possible double counts etc. RBI has already initiated this process and till this is completed any estimate may not indicate the actual numbers of the SBNs that have been returned. RBI is taking all steps to complete the process expeditiously so as to release firm figures of SBNs received at an early date.(Click here to read more) MCA notified Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 MCA has commenced provisions of section 248 to 252 of The Companies Act, 2013 w.r.t. removal of names of companies from the Register of Companies and notified relevant rules simultaneously. However, e-Form STK 2 prescribed under the said rules, for making application to the Registrar of Companies for removal of name of the company from the register of companies, is under development and would be deployed in some time.(Click here to read more) RBI enhanced cash withdrawal limits The daily limit of withdrawal from ATMs has been increased (within the overall weekly limits specified) with effect from January 01, 2017, from the existing Rs 2500/- to Rs 4500/- per day per card. There is no change in weekly withdrawal limits. Such disbursals should predominantly be in the denomination of Rs 500.(Click here to read more) MCA introduced SPICe e-form MCA has taken another bold initiative in Government Process Re-engineering (GPR) and has launched Simplified Proforma for Incorporating Company Electronically (SPICe) e-Form. Existing INC-29 and INC-7 will be phased out and SPICe will be the sole, implified & versatile form available for incorporation of a company in India. (Click here to read more) ICAI issued exposure draft of Re?ised “A 720 ?The Auditor’s Respo?si?ilities Relati?g to Other I?for?atio?? AKGVG Weekly Insight | 09th January’ 17 | Page No. 3

  5. Feedback/Queries can be sent to info@akgvg.com Disclaimer: This insight is meant for informational purpose only and should not be considered as an advice or opinion, or otherwise, whatsoever. AKGVG & Associates does not intend to advertise its services through this insight. AKGVG & Associates is not responsible for any error or omission in this insight or for any action taken based on its contents. “We transform by what we read” Thank You for Reading! AKGVG Weekly Insight | 09th January’ 17 | Page No. 4

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