If you accepts Cash in excess of Rs 2 lacs, you are liable to pay a penalty of Rs 2 lacs

If you accepts Cash in excess of Rs 2 lacs, you are liable to pay a penalty of Rs 2 lacs

If you accepts Cash in excess of Rs 2 lacs, you are liable to pay a penalty of Rs 2 lacs under Income-tax Act 

Jewellers , Builders and Hospitals have to be more cautious while accepting cash.

From 1st April cash transactions must be done very cautiously. Gifts etc. amounting to more than Rs 2 Lakhs received in cash may attract penalty. This will affect Jewellers, Hospitals, builders, persons who carry business in cash. Further cash purchases or expenses above Rs 10,000 may be levied a penalty, earlier the limit was Rs. 20000. Transactions must be done through banks only .

Cash sale in excess of Rs 2 lacs is to be avoided.

From 1st April 2017, for accepting cash more than Rs 2 lacs is an offence under IT Act.

On cash transactions if cash accepted of Rs. 2 Lakh or more then there is 100% penalty on it to acceptor.

v To a single person or on one day or through one transaction if Rs. 2 Lakh or more is accepted in cash then there is penalty.

v It means following four rules must be considered: (1) Rs. 2 Lakh or more (2) one person (3) One day (4) one transaction must be followed.

No split Sale is Allowed

One seller is not permitted to receive more than Rs. 2 Lakh in cash which connotes that one seller cannot accept in excess of Rs 2 lakhs in cash from any one buyer. For instance: If X Sell products for Rs 1 lakh and supplies bill no. x to Y customer and on the same day gives another bill no. m amounting to Rs. 1.5 lakhs, total amount equal to Rs. 2.5 Lakh and for such transactions seller may be levied with a penalty of 100% as he has received more than Rs 2 lacs in cash in a day.

The Meaning of One Transaction

One transaction means if the amount on the bill goes in excess of Rs 2 Lakhs and even if such amount is received through cheque or online transfer and partly in cash then also such transactions may be liable to attract penalty. For Ex.: X seller makes a credit sale of Rs. 2.5 Lakhs to Customer B on 20th April and on 22nd April the customer A pays Rs. 2.25 Lakh through Cheque and Rs. 25,000 in cash still in such transaction seller    X may be liable for penalty because the transaction has gone beyond Rs. 2 Lakhs.

UPDATES

MCA:

The Ministry of Corporate Affairs has amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules may be called the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017. They shall come into force from the 28^th February, 2017. The provisions of Rule 6 (Manner of transfer of shares under section 124(6) to the fund) and Rule 7 (Refund to claimants from Fund) have been revised or amended.

EPFO:

The Employees´ Provident Fund Organisation has allowed full and final withdrawal of funds by the subscribers from their pension account without providing Aadhaar Number. The Members withless than 10 years of service can submit a full and final settlement claim through Form 10 C to withdraw the amount accumulated in their pension account. However, the members submitting claims for fixing their pensions using Form 10D would be required to submit Aadhaar Number or enrollment slips.

NEW BATCH FOR CS EXECUTIVE/PROFESSIONAL

SEBI lays down procedure for conflict resolution between listed and listing stock exchanges

SEBI lays down procedure for conflict resolution between listed and listing stock exchanges

SEBI lays down procedure for resolution of conflicts between any listed recognized stock exchange and its listing stock exchange under the Stock Exchanges Clearing Corporation Regulations; Regulation 45 said Regulations provides for listing of a stock exchange on any recognized stock exchange, other than  itself and its associates; As per the Circular, the Listing Department of listing stock exchange (i.e. a stock exchange on which the listing is done) shall be responsible for monitoring the compliance of the listed stock exchange (i.e. a stock exchange which is getting listed) as in the case of listed companies; The Independent Oversight Committee (IOC) of the listing stock exchange shall exercise oversight at the second level to deal with the conflicts, if any; The listed stock exchange may appeal to the Independent Oversight Committee of the listing stock exchange, if aggrieved, with the decision on disclosure of the listing stock exchange; An independent Conflict Resolution Committee (CRC) constituted by SEBI, with an objective for independent oversight and review, shall monitor potential conflicts between listed and listing stock exchange on a regular basis; The listed stock exchange aggrieved by the decision of IOC of the listing exchange may appeal to

Updates:

Updates:

1. CBDT has extended its one-time tax dispute resolution scheme by a month, giving companies including Vodafone and Cairn Energy time till January 31 to accept its offer to settle retrospective tax demands.
2. Manufacturer can avail Composition Scheme up to 50 lacs @ minimum 5%(2.5% CGST & 2.5% SGST) & Trader  at  2%(1%CGST 1%SGST). NA to Service provider. 
3. Madras High Court has held that the assessee is entitled to Service Tax Credit on catering services. M/s IP Rings Ltd v. CESTAT Chennai. 
4. SEBI (Securities and Exchange Board of India) has established its own Investor Protection & Education Fund (IEPF).
5. RBI issued Notifications / Circulars for 
1.  Restriction on currency exchange for foreigners to continue till 31.01.2017.
2. Supply of 40% bank notes / cash to bank branches in rural area

Important Updates

MCA:

The Ministry of Corporate Affairs has notified the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. These Rules shall apply to matters relating to the corporate insolvency resolution process. They shall come into force from the 1st day of December, 2016. The rules provides norms for Application by financial creditor, Demand notice by operational creditor, Application by operational creditor, Application by corporate applicant, Withdrawal of application, Interim resolution professional, Filing of application and application fee.

MCA:

The Ministry of Corporate Affairs has notified the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. These Regulations shall come into force on 1^st December, 2016. These Regulations shall apply to the corporate insolvency resolution process. The rules provides norms for Eligibility for resolution professional, Access to books, public announcement, proof of claims, committee of creditors, meetings of the committee, voting by the committee, conduct of corporate insolvency resolution process, insolvency resolution process costs and resolution plan. 

 Updates:

1. CBDT vide its notification dated 29th November, 2016 has issued rules provide that in case of any capital asset the period of holding shall be reckoned from the date on which such property is acquired only if the date of acquisition is evidenced by a deed registered with any authority. In any other case it shall be reckoned from the 1.6.2016.
2. After SC judgment there is 90% chance that Govt. of West Bengal issue notice for the collection of due entry tax from the dealers who are not paying.
3. Govt clarifies that jewellery with household which is acquired-out of disclosed sources or exempted income shall become taxable under proposed Taxation Laws (Second Amendment) Bill, 2016, is totally unfounded and baseless.
4. Input tax credit on capital goods can be claimed in first year except for telecom towers in case of telecom companies where available in 3 years.
5. MCA notified provisions of Insolvency and Bankruptcy Code, 2016 from 1st December, 2016 (1) clause (a) to clause (d) of section 2 (except with regard to voluntary liquidation or bankruptcy.
6. RBI has given power to fix limit for cash withdrawal at counter & from ATM from time to time: The government is gearing up to facilitate Aadhaar number-enabled financial transactions through mobile phones as part of its drive to convert the country into a cashless economy.

Cost Audit and XBRL: For any help and assistance in Cost Audit and XBRL, Please contact CMA Raj Kishore Kaushik at Mob. 9811285012 

UPDATES

IBBI:

The Insolvency and Bankruptcy Board of India has granted registration to the following two Section 8 (not-for-profit) Companies to act as Insolvency Professional Agencies (IPAs) under the IBBI (Insolvency Professional Agencies) Regulations, 2016:

1.      Indian Institute of Insolvency Professionals of ICAI, and

2.      ICSI Insolvency Professionals Agency.

Shri Arun Jaitley, Hon’ble Minister for Finance and Corporate Affairs handed over certificates of registration to these two Insolvency Professional Agency Companies. The IPAs can start enrolling the Professional Members from 29^th November, 2016. This takes one step closer to implementation of the Insolvency and Bankruptcy Code, 2016.

SEBI:

The Securities and Exchange Board of India has amended the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014. These regulations may be called the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016. They shall come into force on the date of their publication in the Official Gazette.