Dear Professional Friends,

Jai Jinendra!!!!!!

I take this opportunity to send a copy of the monthly Newsletter Vol. 1 of J. Kala &
Associates, Mumbai. The Newsletter enclosed with a brief review of the most recent
highlights of corporate, finance, direct taxes, and indirect taxes field.

The articles selected have all been published in reputable peer-reviewed media
newspaper and I believe that this information will be valuable to you all in helping you
get updated with the ongoing activities in the field of corporate, finance, direct taxes,
and indirect taxes in the month of April 2016.

It is my intent to become a resource for you by providing important updates. I hope

that you find this information helpful.

I would welcome your comments and suggestions in respect of our endeavours and
expect your continued support in promoting this newsletter.

It„s great feeling sharing my views and I am with you and for you always.

With Warm Regards,

Truly Yours,
Team J Kala & Associates
 The Knowledge For Private Circulation Only

News Update
BANKING SECTOR

RBI cuts repo rate, home loans could RBI eases liquidity in the banking
become cheaper system

The Reserve Bank of India (RBI) cut the The RBI had announced measures to ease
benchmark repo rate by 25 basis points to liquidity in the banking system. The daily
6.5 per cent, as widely expected, with requirement for maintaining cash reserve
Governor Raghuram Rajan assuring that
ratio has been reduced to 90 per cent from
the monetary stance will remain
95 per cent from April 16, the marginal
“accommodative.”
standing facility rate (the penal rate at
which banks borrow from the RBI) was cut
The rate cut could help lower the cost of
by 75 basis points and the reverse repo
loans for consumers, including automobile
rate (the rate banks earn when they park
and home buyers. The repo rate, which is
money with the RBI) raised by 25 bps.
at its lowest in five years, will help banks
reduce borrowing costs, helping boost
economic growth. The interest rates have (Source: The Hindu: April 6, 2016)
been cut down by 150 basis points since
the beginning of the accommodative cycle.

 INCOME TAX

Tax appeal before Commissioners must be e-filed: CBDT

Aiming to reduce the compliance burden, revenue department has started appeals before
Income Tax Commissioner should be filed in electronic format by those assessees‟ who e-file
their returns.

Electronic filing of appeals along with documents, before the CIT (Appeals), will remove
human interface, cut paperwork and decrease transaction costs for taxpayers, as said by
Central Board of Direct Taxes (CBDT). It would ensure consistent and error free service as
validations will be inbuilt resulting in fewer deficient appeals. Online filing will also facilitate
fixation of hearing of appeals electronically.

The existing Form 35 for filing of first appeal has been substituted by a new Form. The new
format for filing of appeals is more structured, objective, systematic, and aligned with the
current provisions of the I-Tax Act. With these changes, the burden of compliance on the
taxpayers in appellate proceedings will be significantly reduced.
(Source: CBDT)

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New requirement of filing Form No 61A New ITR Forms Calling for Broad
for statement of financial transactions Information for Certain Assessees
wef 1st April 2016

To keep a watch on high value transactions
undertaken by the taxpayer, the Income-tax
Law has framed the new concept of furnishing
of “Statement of financial Transactions” in
Form No 61A (previously called as „Annual
Information Return (AIR)‟. With the help of
the statement the tax authorities will collect
information on certain prescribed high value
transactions undertaken by a person during the
year.
New Rule 114E of the income tax rules requires
all assessees liable for tax audit u/s 44AB will
have to file statement of financial
transactions in Form 61A, in case of receipt of
cash payment exceeding of Rs. 2,00,000/- for
sale of goods/services of any nature which are
accounted by him on or after 1st Day of
April,2016.
The statement of financial transactions (online
return in Form No. 61A with digital signature)
shall be furnished on or before the 31st May,
immediately following the financial year in
which the transaction is registered or recorded.
The Central Board of Direct Taxes (CBDT)
has notified the new income tax return
forms for assessment year 2016-17
wherein with Assessment Year 2016-17,
individuals and HUFs filing their returns of
income in ITR-1, ITR-2, ITR-2A and ITR-
4S, having total income exceeding Rs. 50
lakhs will now be required to furnish
information regarding assets and liabilities
in Schedule-AL of the relevant ITR form. It
is a welcome measure as it will help in
identifying accumulation of illegal wealth,
black money and minimise tax evasion.
This complements Government's earlier
legislation the Black Money (Undisclosed
Foreign Income and Assets) and Imposition
of Tax Act, 2015, legislation aimed at
amending the Benami Transactions
(Prohibition) Act, to bring tax evaders into
the tax fold.
(Source: CBDT)

(Source: CBDT)

Income Tax department likely to summon all Indians named in Panama Papers

The income-tax department is likely to summon all those Indians whose names appeared
in the Panama Papers and seek sworn declarations on whether they held any undisclosed
offshore accounts, and the purpose if that is the case.

There are about 500 Indians named in the list which includes prominent businessmen, film
celebrities and those belonging to lucrative professions featured in the millions of
documents leaked from Mossack Fonseca, the Panama law firm that is at the centre of a
massive global controversy for allegedly helping wealthy and powerful people in making
shady and secret investments.

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The move to summon the Indians comes two weeks after the tax department sent notices
to about 50 of them figuring in the list. The persons were asked how their names featured
in the documents. The government is checking whether they siphoned off money earned in
India to tax havens, or violated any law while making investments abroad.

The government has created a Multi-Agency Group (MAG) of probe agencies to go into
these cases, comprising the IT department (CBDT), its foreign tax wing that probes
money-laundering cases, the RBI, Financial Intelligence Unit and the Enforcement
Directorate.

"The tax officers can demand explanations of income generated and tax paid in the last 16
years," said the tax consultant, who is helping a client in the Panama leak issue. This
means, the tax department can dig up cases from as early as 2000 to see if taxes had
been paid.

(Source: ET Bureau | 27 Apr, 2016 & PTI | 29 Apr, 2016)

Changes in due date of Filing TDS statement wef 01.06.2016

The Due date as per income tax rule is different for Government deductors and non
Government deductors, which is as follows:-

Sr. Date of ending Due date for Due Date for Non-
no. of the Quarter Government Deductors Government
of the financial Deductors
year
1. 30th June 31st July of the financial 15th July of the financial
year year
2. 30th September 31st October of the 15th October of the
financial year financial year
3. 31st December 31st January of the 15th January of the
financial year financial year
4. 31st March 31st May of the financial 15th May of the financial
year immediately year immediately
following the financial following the financial
year in which deduction year in which deduction
is made is made

To bring uniformity and to give deductors sufficient time in filing of TDS Statement CBDT
has vide Notification No. 30/2016 Dated: 29.04.2016 has revised due date for filing above
referred TDS statements for Government and Non-Government Deductors wef 01.06.2016
to as follows:

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Sr. Date of ending Due date wef 01.06.2016 for Government

no. of the Quarter Deductor &
of the financial Non-Government Deductor
year
1. 30th June 31st July of the financial year
2. 30th September 31st October of the financial year

3. 31st December 31st January of the financial year

4. 31st March 31st May of the financial year immediately following

the financial year in which deduction is made

(Source: CBDT)

Due Date for Payment of TDS on immovable property extended to 30 days

The CBDT has vide Notification no. 30/2016 dated 29-04-2016 extended Due Date for
payment of TDS on transfer of immovable property u/s 194IA to 30 days from existing 7
days.

The Section 194IA requires buyer of the Property to deduct 1% TDS while making
payment to seller if consideration of the Property exceeds 50 Lakh Rupees. Such TDS was
required to be paid within 7 days from the end of the month in which payment been made
but now CBDT has extended such 7 day period to 30 days for all payments to be made on
or after 01st June 2016.

Thus any sum deducted under Section 194IA on or after 01st June 2016 shall be paid to
the credit of the Central Government within a period of 30 days form the end of the month
in which the deduction is made and shall be accompanied by a challan-cum-statement in
Form No. 26QB.

(Source: CBDT)

CENTRAL EXCISE - Extension of Time Limit for taking registration by Jewellers

The CBEC vide Circular No. 1021/9/2016-CX, Dated: March 21, 2016 provided for
constitution of a Sub-Committee of the High Level Committee to Interact with Trade &
Industry on Tax Laws, chaired by Dr. Ashok Lahiri to study the issues relating to the
imposition of excise duty on jewellery including the issues related to compliance procedure
for the excise duty, records to be maintained, operating procedures and any other issues
that may be relevant..

In this regard, CBEC vide Circular No. 1025/13/2016-CX, Dated: April 22, 2016 has
provided that names of the committee members with a request that all associations may
submit representations before the subcommittee in writing and the all India associations
would need to state their cases in person.

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Further CBEC vide Circular No. 1026/14/2016-CX, Dated: April 23, 2016 has provided that
now a jeweller may take central excise registration of an establishment upto 01.07.2016.
However, it is to be noted that excise duty would be payable w.e.f from 1 st March 2016
itself. Further, jewellers may make the payment of excise duty for the months of March,
2016; April, 2016 and May, 2016 along with the payment of excise duty for the month of
June, 2016.

[Circular No. 1025/13/2016-CX, Dated: April 22, 2016 & Circular No. 1026/14/2016-CX,
Dated: April 23, 2016]

Comments: The extension of date may require suitable amendment along with interest,
penalty and machinery provisions on issuance of invoice, time for payment of duties as an
unregistered assessee in the statutory provisions so as to allow jewellers to take
registration upto 1st July 2016. Even the Government is not permitted to do unlawfully,
that which is necessary to be done. The duty payment and interest applicable on monthly/
quarterly basis on delayed payment would apply.

 CORPORATE SECTOR

MCA Notifies Companies (Auditor's Report) Order, 2016

The Ministry of Corporate Affairs has notified the Companies (Auditor's Report) Order, 2016
(CARO 2016) vide its Notification no. S.O. 1228(E) dated 29th March, 2016. This Order
supersedes the Companies (Auditor's Report) Order, 2015 dated 10 th April, 2015 and shall
be applicable for the audit reports relating to financial year commencing on or after 1 st April,
2015.

The new CARO 2016, which brings in mandatory reporting by the Statutory Auditors, aims to
make reporting under this order more contemporary and valuable for corporate
stakeholders. It strengthens the corporate governance and evolves transparency in
functioning of the corporates.

The Auditing and Assurance Standards Board (AASB) of the ICAI has already finalised and
released the Guidance Note on CARO 2016 to benefit its members by providing guidance in
discharging their professional responsibilities in this regard.

(Source: ICAI)

Applicability of Accounting Standards amended by MCA vide Notification dated

March 30, 2016

The Ministry of Corporate Affairs, vide its Notification No. G.S.R. 364 (E) dated 30th March,
2016, has issued Companies (Accounting Standards) Amendment Rules 2016, amending AS
2, AS 4, AS 13, AS 21 and AS 29; and replacing the existing AS 6 and AS 10 with revised AS
10.

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The aforesaid Amendment Rules did not specify in respect of which accounting periods the
amended Accounting Standards shall come into effect. It is noted that Rule 3, sub-rule (2),
of the 2006 Rules, the relevant extract of which specified that “the accounting standards
shall come into effect in respect of accounting periods commencing on or after the
publication of these Accounting Standards”, has not been amended by the said Amendment
Rules. In view of this, many stakeholders had approached the Institute of Chartered
Accountants of India, to seek guidance on the applicability of the amended Accounting
Standards particularly in the case of listed companies who prepared their financial results of
preceding quarters based on the unamended Accounting Standards.

With a view to have consistent approach by companies on the applicability of the Accounting
Standards as amended by the Companies (Accounting Standards) Amendment Rules 2016,
amended Accounting Standards should be followed for accounting periods commencing on or
after the date of publication of the notification in the Official Gazette.

(Source: ICAI, April 26, 2016)

Real Estate Regulator Bill: Salient Features

The long-awaited Real Estate (Regulation and Development) Bill (2016) has been passed by
Rajya Sabha and Lok Sabha, paving the way to set up a regulatory mechanism for the real
estate sector, and to secure the rights of homebuyers. It has now been sent to the President
for necessary approval, following which, it will become an Act. It is expected to usher in
accountability and transparency in the real estate sector, increase customer confidence, and
benefit the industry as a whole

Salient features one should know about this bill, touted as a key reform measure in the vast
real estate sector: -

 The Real Estate Bill would regulate transactions between the buyers and
promoters/developers of real estate projects. It aims to set up a Real Estate Regulatory
Authority (RERA) in each state and union territory to monitor the sector and oversee
property transactions.
 The Bill will cover both residential and commercial real estate projects.
 It will make registration compulsory for both real estate agents and projects with the
authority. The Bill states that all builders must disclose details of registered projects,
including information about the promoter, building plan, municipal approval, land status,
architects, contractors, structural engineer, and agreements as well as details of the real
estate agents.
 All information must be uploaded to the RERA website in respective states. Real estate
agents also have to register with RERA. Even projects under construction have to be
registered with the authority.

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 The Bill seeks to get fast track dispute redressal through appellate tribunals and
adjudicating officers in every state. It bars civil courts from taking up matters that falls
under the tribunal‟s jurisdiction.
Consumer courts, however, have been allowed to hear real estate cases. India has 664
consumer courts. A greater number of grievance redressal avenues would mean lower
cost of litigation for appellants. It will also reduce the number of cases in conventional
courts that are already overburdened with pending matters.
 If the promoter or developer doesn‟t register the property, then he/she has to pay 10 per
cent project cost as a penalty. They are liable to imprisonment of up to three years
and/or an additional 10 per cent fine of the project cost in case of evading RERA orders
or summons.

For violating other provisions of the proposed act, the builder would have to pay up to 5
per cent of the project cost. Fine for the agents is Rs 10,000/- per day for the entire
period of violating any provision.

 Builders can‟t advertise or sell their homes till they have all project approvals in place.

The Bill, when it becomes an Act, would bolster customer confidence because it will bring
transparency to the sector. The slowing down of home sales is having its effect on the
economic revival.

The Real Estate Bill sets a firm foot on the sector and would be its foundation in the coming
years. With the changing skylines in Indian cities, the Bill covers various issues like
developing and redeveloping, thus ironing out many problem areas.

(Source: Rediff.com, April 29, 2016)

Zone Startups India launches accelerator empower for women

Mumbai-based Zone Startups India has launched a six-week accelerator for women focused
on building technology-based ventures.

The programme, empoWer, seeks to shortlist 15 woman entrepreneurs. It will be supported

by partners including Google, the Department of Science and Technology, GIZ, Vodafone
India and SheEO, a Toronto-based organisation supporting woman entrepreneurs.

Post the six-week programme, Zone Startups plans to provide the woman entrepreneurs
continued support for up to a year. Through road shows across Mumbai, Bengaluru and the
National Capital Territory, the accelerator plans to scout for applicants. The programme aims
to identify women focused on solving local issues, as well as enabling them creating systems
based on artificial intelligence and other high-tech devices that could be converted into
global products.

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During the last 26 months of operations, Zone Startups India has accelerated the growth of
72 startups; 11 being co-founded by woman entrepreneurs. Three of these women have
gone on to raise more than 30 crore for startups.

(Source: ET Bureau, April 30, 2016)

Sebi to Tighten Disclosure Norms for Rating Agencies

Concerned over a severe spillover impact of recent drastic downgrades by rating agencies,
the Securities and Exchange Board of India (Sebi) plans to strengthen its disclosure
guidelines for issuance and review of the ratings by such entities.

Besides, market regulator Sebi is also considering asking the credit rating agencies (CRAs)
to hive off their activities involving rating of instruments other than securities, as they do
not fall under Sebi's jurisdiction, a senior official said.

Besides debt and other securities, the CRAs also give ratings for various financing facilities,
projects and fixed deposits, while some of them also undertake works like grading of NGOs
and Real Estate properties.

"Hiving off such activities will also ensure that there is no dual reporting or action by two or
more regulators for the same violation," the official added. Sebi had set up a committee,
comprising members from all Credit Rating Agencies (CRAs), to review the functioning of
CRAs in order to enhance the standards and procedures related to assignment of ratings and
review of the same.

The committee submitted its report after incorporating recommendations and suggestions of
all CRAs. Besides, the issues related to functioning of CRAs have also been deliberated upon
by the International Advisory Board of Sebi. The markets regulator is now finalising its policy
actions with regard to CRAs after taking into account the suggestions made by the expert
committee as well as by its International Advisory Board.

Among the proposed measures, CRAs would have to adopt a policy regarding suspension
and subsequent withdrawal of rating and disclose the same publicly. It has also been
suggested that Sebi would provide a format of the press release regarding suspension to
remove any ambiguity and ensure uniformity across various CRAs.

Sebi also wants disclosure of all ratings assigned by the CRA, whether accepted or not by
the issuer, even in case of non-public issues. Other proposed measures include
strengthening the agreement between the Issuer and CRA to improve client co-operation,
public disclosure of the CRAs' procedures for ongoing monitoring of credit ratings and
disclosure of rating transition of the issuer.

The CRAs would also need to publicly disclose various 'criteria' used for rating and the same
would need to be referenced in their press releases.

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There would be a periodic review of the criteria used for rating and public disclosure of the
periodicity of review.

The internal document governing rating process would need to be made available on the
website of CRAs. Sebi also plans to put in place a mechanism for evaluating and enhancing
the performance of CRAs, along with terms of reference for internal audits of CRAs.

Accountability of the CRAs, rating committee, analysts, including provisions for checks and
balances, would need to be clearly defined in the internal governing document and rating
manual of the CRA. There would be restrictions on participation of business development
team and other employees with revenue targets in analytical processes. Besides, a defined
process would be required for evaluating performance of Rating Committee members.

(Source: Livemint, April 18, 2016)

 REGISTRATION ACT (MAHARASTRA)

Reduction in registration fees on instrument of gift between blood relatives

The Maharashtra Government vide it's GR dated 25.04.2015 has already reduced the stamp
duty on Gift of immovable property and agricultural land between the blood relatives from
5% or 2%, as the case may be, to Rs.200/- only .The blood relatives include spouse, son,
daughter, grandchild and daughter in law of a deceased son.

Even though the Gift deeds to the blood relatives started attracting stamp duty of Rs 200/-
only, the Registration fees remained to be 1% of the market value of the immovable
property or Rs.30000/- whichever is less.

The Maharashtra Government vide it's notification no.RGN-2016/51/CR-11/M-1 dated 31st

March, 2016, has reduced the Registration Fees to be max Rs.200/- on the Gift Deeds of
immovable property between the blood relatives.

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Due date for the month of May 2016

Due Date Type of Tax Description of tax Form Type

Payment/Sub payment/submission of
mission of return
Return
06/05/2016 Service Tax Service Tax Payment for Month
April in online mode (Other Than Online Service Tax
Individuals/Firms/LLP/Proprietors Challan
hip)
06/05/2016 Central Excise Duty Payment (Online mode) for
Online Excise Duty
the Month of April 2016 (other
Challan
than SSI Units)
07/05/2016 Income Tax Due date for deposit of Tax
deducted/collected for the month Challan No. 281
of April, 2016
07/05/2016 Income Tax Due date for furnishing of
challan-cum-statement in respect
of tax deducted under Section Form 26QB
194-IA in the month of April,
2016
10/05/2016 Central Excise Filing ER-1 Return (Other than
Form Ann -12
SSI Units)
Central Excise Filing ER-2 monthly return by
100% EOU (removing goods in Form Ann -13
domestic tariff area)
Central Excise Filing monthly ER-6 Return by
specified class of Assesses
regarding principal inputs on
which cenvat credit was availed Form Ann -13AC
(Assessee who paid duty of
excise more than Rs. 1 crore in
the preceding financial year)
Central Excise Exports – Procurement of
specified goods from EOU for use
in manufacture of Export goods
Form Ann-17B
for DTA units, procuring specified
goods from EOU for manufacture
of export goods.
Proof of Exports, once in a month
for all exporters, exporting goods Form Ann.-19
under Bond
Export details, for Manufacturing
following simplified export Form Ann.-20
procedure.
Removal of excisable goods at
concessional rate, for
Manufacturers receiving the
Form Ann. -46
excisable goods for specified use
at concessional rate of duty in
terms of Rules

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15/05/2016 Provident Fund PF Payment for month of April 2016

(Including PF Challan
EDLI)
15/05/2016 Income Tax Quarterly TDS Return for the
Form 24Q and 26Q
quarter ending March 31, 2016
15/05/2016 Income Tax Quarterly TCS Return for the
Form 27EQ
quarter ending March 31, 2016
16/05/2016 Central Excise Duty Payment (Online mode) for Online Excise Duty
the Month of April 2016 (SSI Units) Challan
21/05/2016 ESIC ESIC Payment and Return for month
Challan to be
of April 2016
generated online
and payment by
cheque
21/05/2016 MVAT/CST MVAT(WCT)-TDS Payment for
Form MTR - 6
month of April 2016
21/05/2016 MVAT/CST Monthly Return for April (Tax Return Form for
liability >100000/-) MVAT:
231/232/233/234/23
5

Return Form for CST:

Form III(E)
22/05/2016 Income Tax Due date for issue of TDS Certificate
for tax deducted under Section 194- Form 16B
IA in the month of April, 2016
25/05/2016 Provident Fund PF Return filing for April Month
(includes EDLI) (including pension and insurance Form 5, 10 and 12A
scheme forms)
30/05/2016 ROC Return Filing of Annual Return by Limited
Form 11
Liability Partnership
30/05/2016 Income Tax Quarterly TDS/TCS certificates in
respect of tax deducted (for
payment other than salary) or tax Form 16A
collected during the quarter ending
March 31, 2016
31/05/2016 Income Tax Certificate of TDS to employees in
respect of salary paid and tax Form 16
deducted during FY 2015-16
31/05/2016 Income Tax Tax deduction returns on amounts
paid by trustees of
-
authorized/approved
superannuation funds
31/05/2016 Income Tax Due date to furnish statement of
reportable accounts (in Form No.
Form No. 61B
61B) for calendar year 2015 by
reporting financial institutions
31/05/2016 Profession Tax Payment and Return of April ( For
assessee whose Tax Liability > = Challan No MTR-6 &
50000 or in case of First Year of Return for Form III
Registration)

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Disclaimer
This Newsletter has been sent by J Kala & Associates and is meant for the recipient for use
as intended and not for circulation. The information contained herein is from the public
domain or sources believed to be fair and correct. It cannot be warranted or represented
that it is accurate or complete and it should not be relied upon as such.

J Kala & Associates

Chartered Accountants

Head Office: 504, Rainbow Chambers, Near Kandivali Tel Exchange, S. V. Road,
Kandivali (W), Mumbai – 400 067.
Phone:- +91 22 28625129/ 5153
Email: admin@jka.co.in

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