26 August 2016

MEF online submission date extended

MEF online submission date extended to 10 Sept declaration to reach 20 sept

CBEC ON HIRING


CBEC Clarifies the issue of Service Tax Liability on Hiring of Goods without Transfer of 'Right to Use'of Goods

CBEC issues clarification on service tax liability in case of hiring, leasing, licensing of goods without the transfer of right to use them, as provided u/s 66E(f) of Finance Act; States that in such cases, it is essential to determine whether in terms of the contract, there is transfer of right to use goods and the criteria laid down by SC in BSNL should invariably be followed and applied; SC had inter alia laid down that (i) there must be goods available for delivery, (ii) there must be consensus ad idem as to their identity, (iii) transferee should have legal right to use the goods, (iv) such right should be to the exclusion of the transferor i.e. it should not be merely license to use the goods, and (v) during the period of transfer, owner cannot again transfer the same right to others; Further states that cases decided under Sales Tax / VAT legislations cannot be applied mechanically, they have to be considered against the background of those particular legislative provisions and terms of contract in that case; Some of these cases include Rashtriya Ispat Nigam Ltd, International Travel House Ltd, State Bank of India and G. S. Lamba & Sons; CBEC also cites examples of 'financial lease' & 'operating lease', as well as 'dry leases' & 'wet leases' for aircraft industry, to emphasize the diverse nature of transactions and clarifies that in all these cases, no a priori generalizations or assumptions about service tax liability should be made; Reiterates, "..the terms of the contract should be examined carefully, against the backdrop of the criteria laid down by the Supreme Court in the Bharat Sanchar Nigam Limited case as well as other judicial pronouncements." : CBEC Circular 


CBEC ON HIRING


CBEC Clarifies the issue of Service Tax Liability on Hiring of Goods without Transfer of 'Right to Use'of Goods

CBEC issues clarification on service tax liability in case of hiring, leasing, licensing of goods without the transfer of right to use them, as provided u/s 66E(f) of Finance Act; States that in such cases, it is essential to determine whether in terms of the contract, there is transfer of right to use goods and the criteria laid down by SC in BSNL should invariably be followed and applied; SC had inter alia laid down that (i) there must be goods available for delivery, (ii) there must be consensus ad idem as to their identity, (iii) transferee should have legal right to use the goods, (iv) such right should be to the exclusion of the transferor i.e. it should not be merely license to use the goods, and (v) during the period of transfer, owner cannot again transfer the same right to others; Further states that cases decided under Sales Tax / VAT legislations cannot be applied mechanically, they have to be considered against the background of those particular legislative provisions and terms of contract in that case; Some of these cases include Rashtriya Ispat Nigam Ltd, International Travel House Ltd, State Bank of India and G. S. Lamba & Sons; CBEC also cites examples of 'financial lease' & 'operating lease', as well as 'dry leases' & 'wet leases' for aircraft industry, to emphasize the diverse nature of transactions and clarifies that in all these cases, no a priori generalizations or assumptions about service tax liability should be made; Reiterates, "..the terms of the contract should be examined carefully, against the backdrop of the criteria laid down by the Supreme Court in the Bharat Sanchar Nigam Limited case as well as other judicial pronouncements." : CBEC Circular 


Request to provide/update PAN details to avoid blocking of e-filing account by the Income Tax Department. - (24-08-2016)

Request to provide/update PAN details to avoid blocking of e-filing account by the Income Tax Department. - (24-08-2016)
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It has been noticed that the Income Tax Department has blocked/ disabled the e-Filing account of the members whose correct PAN details are not available with the Department. Upon following with the Income Tax Department, it has been informed that the blocking and disablement of the E-filing Account of the members by them is initially temporary in nature which would be made permanent if correct PAN details are not updated/provided to Income Tax Department which are in synchronisation with the details available with the ICAI. In this regard, members had been earlier requested to submit their correct PAN details with the ICAI vide e-mails in November 2015, December 2015 and also through Announcements dated 20/11/2015, 16/12/2015 hosted at ICAI Website, wherein time limits to update/provide the PAN details were also prescribed. Further in the e-mail dated 6/5/2016 members were requested to update/ provide their PAN details latest upto 14th May 2016. 

The Income Tax Department has blocked/ disabled the e-Filing account of the members whose correct PAN details are not available with the Department.

In case you are facing any problem in uploading tax audit reports due to non updation of PAN number at ICAI or due to differences in the name as per ICAI record and name given in PAN number, then please go through the link mentioned below to update your details:

http://online.icai.org/app_forms/panupdate/index.html

You may also file your complaint/ grievance at mss@icai.in and/or dtc@icai.in for resolving the same.

We would like to inform that ICAI is taking up the matter to resolve the issue with department on top priority basis and the members are requested to update/provide their PAN details by filling requisite details by clicking above link at the earliest but latest by 26.08.2016.

21 August 2016

DSC on MCA portal because your name in the PAN card is not as per the ICAI

Dear Member,

Greetings from ICAI

In case you are unable to register your DSC on MCA portal because your name in the PAN card is not as per the ICAI records, you may send fill up the form in the given link :-  
http://online.icai.org/app_forms/panupdate/index.html

And kindly attach a scanned copy of your PAN card along with copy of any of the documents in which your name is as in your PAN card

Passport
Aadhar Card
Driving License
Bank passbook with a photo affixed and duly signed by the bank
Voters' Identity card

This will enable us to carry out the necessary alignment to ICAI records to share the same to MCA for their further actions.

Secretary
ICAI

19 August 2016

IDS-Indexed Stamp Duty Value

CBDT Notification Reg Adoption Of Indexed Stamp Duty Value For Income Declaration Scheme

 

The CBDT has issued a Notification dated 17th August 2016 by which Rule 3(1)(d) of the Income Declaration Scheme Rules 2016 have been amended to provide that where the acquisition of immovable property by the declarant is evidenced by a deed registered with any authority of a State Government, the fair market value of such property shall, at the option of the declarant, may be taken on the stamp duty value as increased by the same proportion as Cost Inflation Index for the year 2016-17 bears to the Cost Inflation Index for the year in which the property was registered.


14 August 2016

IDS Amendment

CBDT Notification on 'Income Declaration Scheme (Second Amendment) Rules, 2016' with Revised 'IDS Form 3'

CBDT has notified Income Declaration Scheme, (Second Amendment) Rules, 2016 primarily to revise Form 3 to specify details of payments made under the IDS 2016, as under:

S.O. 2705(E).— In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 199 of the Finance Act, 2016 (28 of 2016), the Central Board of Direct Taxes, makes the following rules further to amend the Income Declaration Scheme Rules, 2016 (hereinafter referred to as the principal rules) namely:-

1. (1) These rules may be called the Income Declaration Scheme, (Second Amendment) Rules, 2016. (2) These rules shall come into force from the date of their publication in the Official Gazette.

2. In the principal rules, in rule 4, in sub-rule (5), after the words "submission of proof of", insert the words "full and
final".

3. In the principal rules, in Form-2, after the table, for the portion beginning with the words "The declarant is hereby
directed" and ending with the words "shall be deemed never to have been made." the following shall be substituted,
namely:-

"The declarant is hereby directed to make the payment of sum payable as per column (5) of the above table, as specified below:-

(i) an amount not less than twenty-five per cent. of the sum payable on or before 30th day of November, 2016;

(ii) an amount not less than fifty per cent. of the sum payable as reduced by the amount paid under clause (i) above on or before 31st day of March, 2017;

(iii) the whole of the sum payable as reduced by the amount paid under clause (i) and (ii) above on or before 30th day of September, 2017.

In case of non-payment of the amount as specified above, the declaration under Form-1 shall be treated as void and shall be deemed never to have been made.".

4. In the principal rules for Form-3, the following Form shall be substituted, namely:-

"INTIMATION OF PAYMENT UNDER SUB-SECTION (1) OF SECTION 187 OF THE FINANCE ACT, 2016 IN
RESPECT OF THE INCOME DECLARATION SCHEME, 2016

THE INCOME DECLARATION SCHEME RULES, 2016

Form 3

[See rule 4(4)]


CBDT Notification No. 70/2016 dt. 12 August, 2016

12 August 2016

CBEC Clarification on Freight Forwarders

Service tax on freight forwarders for transportation of goods from India: CBEC Clarification

CBEC has clarified that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India, as under:

CBEC Circular No. 197/7/2016 -Service Tax dt. 12 Aug. 2016

1. The Board has received representations regarding service tax on freight forwarders on transportation of goods from India.

2. It may be noted that in terms of rule 10 of the Place of Provision of Services Rules 2012, (herein after referred to as 'POPS Rules 2012', for brevity) the place of provision of the service of transportation of goods by air/sea, other than by mail or courier, is the destination of the goods. It follows that the place of provision of the service of transportation of goods by air/sea from a place in India to a place outside India, will be a place outside the taxable territory and hence not liable to service tax. The provisions of rule 9 of the POPS Rules 2012, should also be kept in mind wherein the place of provision of intermediary services is the location of the service provider. An intermediary has been defined, inter alia, in rule 2(f) of the POPS Rules 2012, as one who arranges or facilitates the provision of a service or a supply of goods between two or more persons, but does not include a person who provides the main service or supplies the goods on his own account. The contents of the succeeding paragraphs flow from the application of these two rules.

2.1 The freight forwarders may deal with the exporters as an agent of an airline/carrier/ocean liner, as one who merely acts as a sort of booking agent with no responsibility for the actual transportation. It must be noted that in such cases the freight forwarder bears no liability with respect to transportation and any legal proceedings will have to be instituted by the exporters, against the airline/carrier/ocean liner. The freight forwarder merely charges the rate prescribed by the airline/carrier/ocean liner and cannot vary it unless authorized by them. In such cases the freight forwarder may be considered to be an intermediary under rule 2(f) read with rule 9 of POPS since he is merely facilitating the provision of the service of transportation but not providing it on his own account. When the freight forwarder acts as an agent of an air line/carrier/ocean liner, the service of transportation is provided by the air line/carrier/ocean-liner and the freight forwarder is merely an agent and the service of the freight forwarder will be subjected to tax while the service of actual transportation will not be liable for service tax under Rule 10 of POPS.

2.2 The freight forwarders may also act as a principal who is providing the service of transportation of goods, where the destination is outside India. In such cases the freight forwarders are negotiating the terms of freight with the airline/carrier/ocean liner as well as the actual rate with the exporter. The invoice is raised by the freight forwarder on the exporter. In such cases where the freight forwarder is undertaking all the legal responsibility for the transportation of the goods and undertakes all the attendant risks, he is providing the service of transportation of goods, from a place in India to a place outside India. He is bearing all the risks and liability for transportation. In such cases they are not covered under the category of intermediary, which by definition excludes a person who provides a service on his account.

3. It follows therefore that a freight forwarder, when acting as a principal, will not be liable to pay service tax when the destination of the goods is from a place in India to a place outside India.

4. Keeping this in mind, field formations may deal with cases purely on the basis of the facts of the case, the terms of contract between the entities concerned, the provisions of the Finance Act, 1994, the POPS Rules 2012 and other rules.

ICAI Cannot restrict number of audits

Case Name : Shaji Poulose,Chartered Accountant Vs. ICAI (Kerala High Court)

Appeal Number : WP(C).No.25662/2016(G)

Date of Judgement/Order : 03/08/2016

Hon’ble High Court of Kerala has stayed the disciplinary proceedings initiated by ICAI against CA Shaji Poulose for exceeding the limit on number of tax audits.

ICAI Cannot restrict number of audits as it has no power to issue such direction. Only statute can impose restrictions.

10 August 2016

MEF will be hosted on 11 Aug

FYI - MEF will be hosted on 11 Aug  around 2 pm  last date 31 Aug .. OPTION of signing MEF digitally will be available.

09 August 2016

Legal Maxim's & Meanings


A

A mensa et thoro - From bed and board.
A vinculo matrimonii - From the bond of matrimony.
Ab extra - From outside.
Ab initio - From the beginning.
Absoluta sententia expositore non indiget - An absolute judgment needs no expositor.
Abundans cautela non nocet - Abundant caution does no harm.
Accessorium non ducit sed sequitur suum principale - An accessory does not draw, but follows its principal.
Accessorius sequitur - One who is an accessory to the crime cannot be guilty of a more serious crime than the principal offender.
Acta exteriora iudicant interiora secreta - Outward acts indicate the inward intent.
Actio non accrevit infra sex annos - The action has not accrued within six years.
Actio non datur non damnificato - An action is not given to one who is not injured.
Actio personalis moritur cum persona - A personal action dies with the person.
Actiones legis - Law suits.
Actori incumbit onus probandi - The burden of proof lies on the plaintiff.
Actus nemini facit injuriam - The act of the law does no one wrong.
Actus non facit reum nisi mens sit rea - The act does not make one guilty unless there be a criminal intent.
Actus reus - A guilty deed or act.
Ad ea quae frequentius acciduunt jura adaptantur - The laws are adapted to those cases which occur more frequently.
Ad hoc - For this purpose.
Ad infinitum - Forever, without limit, to infinity.
Ad perpetuam rei memoriam - For a perpetual memorial of the matter.
Ad quaestionem facti non respondent judices; ad quaestionem legis non respondent juratores - The judges do not answer to a question of fact; the jury do not answer to a question of Law.
Aedificare in tuo proprio solo non licet quod alteri noceat - It is not lawful to build on one's own land what may be injurious to another.
Aequitas legem sequitur - Equity follows the law.
Aequitas nunquam contravenit legem - Equity never contradicts the law.
Alibi - At another place, elsewhere.
Alienatio rei praefertur juri accrescendi - Alienation is preferred by law rather than accumulation.
Aliunde - From elsewhere, or, from a different source
Allegans contraria non est audiendus - One making contradictory statements is not to be heard.
Allegans suam turpitudinem non est audiendus - One alleging his own infamy is not to be heard.
Allegatio contra factum non est admittenda - An allegation contrary to a deed is not to be heard.
Ambiguitas contra stipulatorem est - An ambiguity is most strongly construed against the party using it.
Ambiguitas verborum patens nulla verificatione excluditur - A patent ambiguity is never helped by averment.
Amicus curiae - A friend of the Court.
Angliae jura in omni casu libertati dant favorem - The laws of England are favorable in every case to liberty.
Animo furandi - With an intention of stealing.
Animo testandi - With an intention of making a will.
Annus luctus - The year of mourning.
Ante - Before.
Aqua currit et debet currere, ut currere solebat - Water runs and ought to run.
Arbitrium est judicium - An award is a judgment.
Arbor dum crescit; lignum cum crescere nescit - A tree while it grows, wood when it cannot grow.
Argumentum ab auctoritate fortissimum est in lege - An argument drawn from authority is the strongest in law.
Argumentum ab impossibilii plurimum valet in lege - An argument from impossibility is very strong in law.
Argumentum ad hominem - An argument directed a the person.
Argumentum ad ignoratiam - An argument based upon ignorance (i.e. of one's adversary).
Arma in armatos sumere jura sinunt - The laws permit the taking up of arms against the armed.
Assentio mentium - The meeting of minds, i.e. mutual assent.
Assignatus utitur jure auctoris - An assignee is clothed with rights of his assignor.
Audi alteram partem - Hear the other side.
Aula regis - The King's Court.

B

Benignior sententia in verbis generalibus seu dubiis est preferenda - The more favorable construction is to be placed on general or doubtful words.
Bis dat qui cito dat - He gives (pays) twice who pays promptly. 
Bona fide - Sincere, in good faith
Bona vacantia - Goods without an owner
Boni judicis est ampliare jurisdictionem - It is the part of a good judge to enlarge his jurisdiction, i.e. remedial authority.
Boni judicis est judicium sine dilatione mandare executioni - It is the duty of a good judge to cause execution to issue on a judgment without delay.
Boni judicis lites dirimere est - It is the duty of a good judge to prevent litigation.
Bonus judex secundum aequum et bonum judicat et aequitatem stricto juri praefert - A good judge decides according to justice and right and prefers equity to strict law.
Breve judiciale non cadit pro defectu formae - A judicial writing does not fail through defect of form.

C

Cadit quaestio - The matter admits of no further argument.
Cassetur billa (breve) - Let the writ be quashed.
Casus fortuitus non est spectandus; et nemo tenetur divinare - A fortuitous event is not to be foreseen and no person is bound to divine it.
Catalla reputantur inter minima in lege - Chattels are considered in law among the minor things.
Causa proxima, non remota spectatur - The immediate, and not the remote cause is to be considered.
Caveat emptor - Let the purchaser beware.
Caveat venditor - Let the seller beware.
Cepi corpus et est languidum - I have taken the body and the prisoner is sick.
Cepi corpus et paratum habeo - I have taken the body and have it ready.
Ceteris paribus - Other things being equal.
Consensu - Unanimously or, by general consent.
Consensus ad idem - Agreement as to the same things.
Consuetudo loci observanda est - The custom of the place is to be observed.
Contemporanea expositio est optima et fortissima in lege - A contemporaneous exposition is best and most powerful in law.
Contra - To the contrary.
Contra bonos mores - Against good morals.
Contra non valentem agere nulla currit praescriptio - No prescription runs against a person not able to act.
Contractus est quasi actus contra actum - A contract is an act as it were against an act.
Conventio et modus vincunt legem - A contract and agreement overcome the law.
Conventio privatorum non potest publico juri derogare - An agreement of private persons cannot derogate from public right.
Coram Domino Rege - In the presence of our Lord the King.
Coram non judice - Before one who is not a judge.
Corpus - Body.
Corpus delicti - The body, i.e. the gist of crime.
Corpus humanum non recipit aestimationem - A human body is not susceptible of appraisement. 
Crescente malitia crescere debet et poena - Vice increasing, punishment ought also to increase.
Crimen omnia ex se nata vitiat - Crime vitiates every thing, which springs from it.
Crimen trahit personam - The crime carries the person.
Cujus est dare, ejus est disponere - He who has a right to give has the right to dispose of the gift.
Cujus est solum, ejus est usque ad coelam; et ad inferos - He who owns the soil owns it up to the sky; and to its depth.
Cum duo inter se pugnantia reperiuntur in testamentis ultimum ratum est - When two things repugnant to each other are found in a will, the last is to be confirmed.
Cursus curiae est lex curiae - The practice of the court is the law of the court.
Custos morum - A guardian of morals.

D

Damnum sine injuria - damage without legal injury.
De bonis asportatis - Of goods carried away.
De bonis non administratis - Of goods not administered.
De die in diem - From day to day.
De facto - In fact.
De futuro - In the future.
De integro - As regards the whole.
De jure - Rightful, by right.
De minimis lex non curat - The law does not notice trifling matters.
De novo - Starting afresh.
Debile fundamentum fallit opus - Where there is a weak foundation, the work fails.
Debita sequuntur personam debitoria - Debts follow the person of the debtor.
Debitor non praesumitur donare - A debtor is not presumed to make a gift.
Debitum et contractus sunt nullius loci - Debt and contract are of no particular place.
Debitum in praesenti, solvendum in futuro - A present debt is to be discharged in the future.
Delegata potestas non potest delegari - A delegated authority cannot be again delegated.
Derivativa potestas non potest esse major primitiva - The power which is derived cannot be greater than that from which it is derived.
Deus solus haeredem facere potest, non homo - God alone, not man, can make an heir.
Dies Dominicus non est juridicus - Sunday is not a day in law.
Discretio est discernere per legem quid sit justum - Discretion is to discern through law what is just.
Doli incapax - Incapable of crime.
Dominium - Ownership.
Domus sua cuique est tutissimum refugium - Every man s house is his safest refuge.
Dona clandestina sunt semper suspiciosa - Clandestine gifts are always suspicious.
Dormiunt leges aliquando, nunquam moriuntur - The laws sometimes sleep, but never die.
Doti lex favet; praemium pudoris est; ideo parcatur - The law favors dower; it is the reward of chastity, therefore let it be preserved.
Dubitante - Doubting the correctness of the decision.
Duo non possunt in solido unam rem possidere - Two cannot possess one thing each in entirety.

E

Ei incumbit probatio qui - The onus of proving a fact rests upon the man.
Ei incumbit probatio qui dicit, non qui negat - The burden of the proof lies upon him who affirms, not he who denies.
Error, qui non resistitur approbatur - An error not resisted is approved.
Et cetera - Other things of that type.
Ex cathedra - With official authority.
Ex concessis - In view of what has already been accepted/
Ex dolo malo actio non oritur - A right of action cannot arise out of fraud.
Ex facie - On the fact of it.
Ex gratia - Out of kindness, voluntary.
Ex nihilo nil fit - From nothing nothing comes.
Ex nudo pacto actio non oritur - No action arises on a contract without a consideration.
Ex parte - Proceeding brought by one person in the absence of another.
Ex post facto - By reason of a subsequent act.
Ex praecedentibus et consequentibus optima fit interpretatio - The best interpretation is made from things preceding and following.
Ex turpi causa non oritur actio - No action arises on an immoral contract.
Exceptio probat regulam - An exception proves the rule.
Executio est executio juris secundum judicium - Execution is the fulfillment of the law in accordance with the judgment.
Executio est finis et fructus legis - An execution is the end and the fruit of the law.
Executio legis non habet injuriam - Execution of the law does no injury.
Extra legem positus est civiliter mortuus - One out of the pale of the law (i.e. an outlaw) is civilly dead.

F

Faciendum - Something which is to be done.
Factum - An act or deed.
Facultas probationum non est angustanda - The right of offering proof is not to be narrowed.
Falsa demonstratio non nocet - A false description does not vitiate.
Fatetur facinus qui judicium fugit - He who flees judgment confesses his guilt.
Felix qui potuit rerum cognoscere causas - Happy is he who has been able to understand the causes of things.
Felonia implicatur in qualibet proditione - Felony is implied in every treason.
Festinatio justitiae est noverca infortunii - The hurrying of justice is the stepmother of misfortune.
Fictio cedit veritati; fictio juris non est, ubi veritas - Fiction yields to truth. Where truth is, fiction of law does not exist.
Fides servanda est - Good faith is to be preserved.
Fieri facias (abreviated fi. fa.) - That you cause to be made.
Filiatio non potest probari - Filiation cannot be proved.
Firmior et potentior est operatio legis quam dispositio hominis - The operation of law is firmer and more powerful than the will of man.
Forma legalis forma essentialis est - Legal form is essential form.
Fortior est custodia legis quam hominis - The custody of the law is stronger than that of man.
Fractionem diei non recipit lex - The law does not regard a fraction of a day.
Fraus est celare fraudem - It is a fraud to conceal a fraud.
Fraus est odiosa et non praesumenda - Fraud is odious and is not to be presumed.
Fraus et jus nunquam cohabitant - Fraud and justice never dwell together.
Fructus naturales - Vegetation which grows naturally without cultivation.
Frustra probatur quod probatum non relevat - That is proved in vain which when proved is not relevant.
Furor contrahi matrimonium non sinit, quia consensus opus est - Insanity prevents marriage from being contracted because consent is needed.

G

Generale nihil certum implicat - A general expression implies nothing certain.
Generalia praecedunt, specialia sequuntur - Things general precede, things special follow.
Generalia specialibus non derogant - Things general do not derogate from things special.
Generalis regula generaliter est intelligenda - A general rule is to be generally understood.
Gravius est divinam quam temporalem laedere majestatem - It is more serious to hurt divine than temporal majesty.

I

Id est (i.e) - That is.
Id quod commune est, nostrum esse dicitur - That which is common is said to be ours.
Idem - The same person or thing.
Idem nihil dicere et insufficienter dicere est - It is the same to say nothing as not to say enough.
Ignorantia facti excusat, ignorantia juris non excusat - Ignorance of fact excuses, ignorance of law does not excuse.
Imperium in imperio - A sovereignty within a sovereignty.
Impotentia excusat legem - Impossibility is an excuse in the law.
Impunitas semper ad deteriora invitat - Impunity always leads to greater crimes.
In aequali jure melior est conditio possidentis - When the parties have equal rights, the condition of the possessor is better.
In alta proditione nullus potest esse acessorius; sed principalis solum modo - In high treason no one can be an accessory; but a principal only.
In Anglia non est interregnum - In England there is no interregnum.
In camera - In private.
In casu extremae necessitatis omnia sunt communia - In a case of extreme necessity everything is common. 
In criminalibus probationes debent esse luce clariores - In criminal cases the proofs ought to be cleared than the light.
In curia domini regis, ipse in propria persona jura discernit - In the King s Court, the King himself in his own person dispenses justice.
In delicto - At fault.
In esse - In existence.
In extenso - At full length.
In fictione legis aequitas existit - A legal fiction is consistent with equity.
In foro conscientiae - In the forum of conscience.
In futoro - In the future.
In jure non remota causa sed proxima spectatur - In law not the remote but the proximate cause is looked at.
In limine - At the outset, on the threshold.
In loco parentis - In place of the parent.
In mortua manu - In a dead hand.
In novo casu novum remedium apponendum est - In a new case a new remedy is to be applied.
In omni re nascitur res quae ipsam rem exterminat - In everything is born that which destroys the thing itself.
In omnibus - In every respect.
In pari delicto potior est conditio possidentis - When the parties are equally in the wrong the condition of the possessor is better.
In personam - Against the person.
In pleno - In full.
In quo quis delinquit in eo de jure est puniendus - In whatever thing one offends in that he is to be punished according to law.
In re dubia magis inficiatio quam affirmatio intelligenda - In a doubtful matter the negative is to be understood rather than the affirmative.
In republica maxime conservanda sunt jura belli - In a State the laws of war are to be especially observed.
In situ - In its place.
In terrorem - As a warning or deterrent.
In testamentis plenius testatoris intentionem scrutamur - In wills we seek diligently the intention of the testator.
In traditionibus scriptorum non quod dictum est, sed quod gestum est, inspicitur - In the delivery of writings (deeds), not what is said but what is done is to be considered.
In verbis, non verba sed res et ratio quaerenda est - In words, not words, but the thing and the meaning are to be inquired into.
Indicia - Marks, signs.
Injuria non excusat injuriam - A wrong does not excuse a wrong.
Intentio inservire debet legibus, non leges intentioni - Intention ought to be subservient to the laws, not the laws to the intention.
Inter alia - Amongst other things.
Interest reipublicae res judicatas non rescindi - It is in the interest of the State that things adjudged be not rescinded.
Interest reipublicae suprema hominum testamenta rata haberi - It is in the interest of the State that men s last wills be sustained.
Interest reipublicae ut quilibet re sua bene utatur - It is in the interest of the State that every one use properly his own property.
Interest reipublicase ut sit finis litium - It is in the interest of the State that there be an end to litigation.
Interim - Temporary, in the meanwhile.
Interpretare et concordare leges legibus est optimus interpretandi modus - To interpret and harmonize laws is the best method of interpretation.
Interpretatio fienda est ut res magis valeat quam pereat - Such a construction is to be made that the thing may have effect rather than it should fail.
Interruptio multiplex non tollit praescriptionem semel obtentam - Repeated interruption does not defeat a prescription once obtained.
Invito beneficium non datur - A benefit is not conferred upon one against his consent.
Ipsissima verba - The very words of a speaker.
Ipso facto - By that very fact.
Ira furor brevis est - Anger is brief insanity.
Iter arma leges silent - In war the laws are silent.

J

Judex est lex loquens - A judge is the law speaking.
Judex non potest esse testis in propira causa - A judge cannot be witness in his own cause.
Judex non potest injuriam sibi datam punire - A judge cannon punish a wrong done to himself.
Judex non reddit plus quam quod petens ipse requirit - A judge does not give more than the plaintiff himself demands.
Judiciis posterioribus fides est adhibenda - Faith must be given to later decisions.
Judicis est judicare secundum allegata et probata - It is the duty of a judge to decide according to the allegations and the proofs.
Judicium non debet esse illusorium, suum effectum habere debet - A judgment ought not to be illusory; it ought to have its proper effect.
Juduces non tenentur exprimere causam sententiae suae - Judges are not bound to explain the reason of their judgment.
Jura naturae sunt immutabilia - The laws of nature are immutable.
Jura publica anteferenda privatis juribus - Public rights are to be preferred to private rights.
Juramentum est indivisibile et non est admittendum in parte verum et in parte falsum - An oath is indivisible and it is not to be held partly true and partly false.
Jurare est Deum in testem vocare, et est actus divini cultus - To swear is to call God to witness and is an act of divine worship.
Jus - A right that is recognised in law.
Jus accrescendi praefertur oneribus - The right of survivorship is preferred to incumbrances.
Jus ad rem; jus in re - A right to a thing; a right in a thing.
Jus dicere, non jus dare - To declare the law, not to make the law.
Jus est norma recti; et quicquid est contra normam recti est injuria - The law is a rule of right; and whatever is contrary to a rule of right is an injury.
Jus naturale - Natural justice.
Jus naturale est quod apud omnes homines eandem habet potentiam - Natural right is that which has the same force among all men.
Jus scriptum aut non scriptum - The written law or the unwritten law.
Jusjurandum inter alios factum nec nocere nec prodesse debet - An oath made between third parties ought neither to hurt nor profit.
Justitia est duplec; severe puniens et vere praeveniens - Justice is two-fold; severely punishing and in reality prohibiting (offences).
Justitia firmatur solium - The throne is established by justice.
Justitia nemini neganda est - Justice is to be denied to no one

L

Leges posteriores priores contrarias abrogant - Subsequent laws repeal prior conflicting ones.
Legibus sumptis desinentibus legibus naturae utendum est - When laws imposed by the State fail, we must use the laws of nature.
Lex aliquando sequitur aequitatem - The law sometimes follows equity.
Lex citius tolerare vult privatum damnum quam publicum malum - The law would rather tolerate a private injury than a public evil.
Lex dabit remedium - The law will give a remedy.
Lex dilationes abhorret - The law abhors delays.
Lex est judicum tutissimus ductor - The law is the safest guide for judges.
Lex est sanctio sancta jubens honesta et prohibens contraria - The law is a sacred sanction, commanding what is right and prohibiting the contrary.
Lex indendit vicinum vicini facta scire - The law presumes that one neighbor knows the acts of another.
Lex necessitatis est lex temporis i.e. instantis - The law of necessity is the law of time, that is time present.
Lex neminem cogit ad vana seu impossiblia - The law compels no one to do vain or impossible things.
Lex nil frustra facit - The law does nothing in vain.
Lex non a rege est violanda - The law must not be violated even by the King.
Lex non deficere potest in justitia exhibenda - The law cannot fail in dispensing justice.
Lex non novit patrem, nec matrem; solam veritatem - The law does not know neither father nor mother, only the truth.
Lex non oritur ex injuria - The law does not arise from a mere injury.
Lex non requirit verificari quod apparet curiae - The law does not require that to be proved which is apparent to the Court.
Lex non favet delicatorum votis - The law does not favor the wishes of the dainty.
Lex plus laudatur quando ratione probatur - The law is the more praised when it is supported by reason.
Lex prospicit not respicit - The law looks forwared, not backward.
Lex punit mendaciam - The law punishes falsehood.
Lex rejicit superflua, pugnatia, incongrua - The law rejects superfluous, contradictory and incongruous things.
Lex spectat naturae ordinem - The law regards the order of nature.
Lex succurrit ignoranti - The law succors the ignorant.
Lex tutissima cassis, sub clypeo legis nemo decipitur - Law is the safest helmet; under the shield of the law no one is deceived.
Lex uno ore omnes alloquitur - The law speaks to all through one mouth.
Longa possessio est pacis jus - Long possession is the law of peace.
Longa possessio parit jus possidendi et tollit actionem vero domino - Long possession produces the right of possession and takes away from the true owner his action.

M

Magister rerum usus; magistra rerum experientia - Use is the master of things; experience is the mistress of things.
Major continet in se minus - The greater contains the less.
Majus est delictum se ipsum occidere quam alium - It is a greater crime to kill one s self than another.
Mala fide - In bad faith.
Mala grammatica non vitiat chartam - Bad grammar does not vitiate a deed.
Mala in se - Bad in themselves.
Mala prohibita - Crimes prohibited.
Malitia supplet aesatem - Malice supplies age.
Malo animo - With evil intent.
Mandamus - We command.
Maximus magister erroris populus est - The people are the greatest master of error.
Melior est conditio possidentis, ubi neuter jus habet - Better is the condition of the possessor where neither of the two has the right.
Melior testatoris in testamentis spectanda est - In wills the intention of a testator is to be regarded.
Meliorem conditionem suam facere potest minor deteriorem nequaquam - A minor can make his position better, never worse.
Mens rea - Guilty state of mind.
Mentiri est contra mentem ire - To lie is to act against the mind.
Merito beneficium legis amittit, qui legem ipsam subvertere intendit - He justly loses the benefit of the law who seeks to infringe the law.
Minatur innocentibus qui parcit nocentibus - He threatens the innocent who spares the guilty.
Misera est servitus, ubi jus est vagum aut incertum - It is a miserable slavery where the law is vague or uncertain.
Mors dicitur ultimum supplicium - Death is called the extreme penalty.
Muilta exercitatione facilius quam regulis percipies - You will perceive many things more easily by experience than by rules.

N

Nam nemo haeres viventis - For no one is an heir of a living person.
Naturae vis maxima est - The force of nature is the greatest.
Necessitas inducit privilegium quoad jura privata - With respect to private rights necessity induces privilege.
Necessitas non habet legem - Necessity has no law.
Necessitas publica est major quam privata - Public necessity is greater than private necessity.
Negligentia semper habet infortuniam comitem - Negligence always has misfortune for a companion.
Nemo admittendus est inhabilitare se ipsum - No one is allowed to incapacitate himself.
Nemo bis punitur pro eodem delicto - No one can be twice punished for the same offence.
Nemo cogitur suam rem vendere, etiam justo pretio - No one is bound to sell his own property, even for a just price.
Nemo contra factum suum venire potest - No man can contradict his own deed.
Nemo debet esse judex in propria causa - No one can be judge in his own case.
Nemo plus juris transferre ad alium potest quam ipse habet - No one can transfer to another a larger right than he himself has.
Nemo potest contra recordum verificare per patriam - No one can verify by the country, that is, through a jury, against the record.
Nemo potest esse tenens et dominus - No one can at the same time be a tenant and a landlord (of the same tenement).
Nemo potest facere per alium, quod per se non potest - No one can do through another what he cannot do himself.
Nemo potest mutare consilium suum in alterius injuriam - No one can change his purpose to the injury of another.
Nemo praesumitur esse immemor suae aeternae salutis et maxime in articulo mortis - No one is presumed to be forgetful of his eternal welfare, and particularly in the hour of death.
Nemo prohibetur pluribus defensionibus uti - No one is forbidden to make use of several defences.
Nemo punitur pro alieno delicto - No one is punished for the crime of another.
Nemo se accusare debet, nisi coram Deo - No one should accuse himself except in the presence of God.
Nemo tenetur accusare se ipsum nisi coram Deo - No one is bound to accuse himself except in the presence of God.
Nemo tenetur armare adversarium contra se - No one is bound to arm his adversary against himself.
Nexus - Connection
Nihil quod est inconveniens est licitum - Nothing inconvenient is lawful.
Nil facit error nominis cum de corpore constat - An error of name makes not difference when it appears from the body of the instrument.
Nisi - Unless
Non compus mentis - Not of sound mind and understanding
Non constat - It is not certain
Non decipitur qui scit se decipi - He is not deceived who knows that he is deceived.
Non definitur in jure quid sit conatus - What an attempt is, is not defined in law.
Non est arctius vinculum inter homines quam jusjurandum - There is no stronger link among men than an oath.
Non est factum - It is not his deed
Non est informatus - He is not informed.
Non facias malum ut inde veniat bonum - You shall not do evil that good may come of it.
Non jus, sed seisina, facit stipitem - Not right, but seisin makes a stock (from which the inheritance must descend).
Non refert quid notum sit judici si notum non sit in forma judicii - It matters not what is known to the judge if it is not known judicially.
Non sequitur - An inconsistent statement, it does not follow
Nullus commodum capere potest ex sua injuria propria - No one can derive an advantage from his own wrong.
Nullus recedat e curia cancellaria sine remedio - No one should depart from a Court of Chancery without a remedy.

O

Omne sacramentum debet esse de certa scientia - Every oath ought to be of certain knowledge.
Omnia delicta in aperto leviora sunt - All crimes (committed) in the open are (considered) lighter.
Omnia praesumuntur contra spoliatorem - All things are presumed against a wrongdoer.
Omnis innovatio plus novitate perturbat quam utilitate prodeat - Every innovation disturbs more by its novelty than it benefits by its utility.
Optima legum interpres est consuetudo - The best interpreter of laws is custom.
Optimus interpres rerum est usus - The best interpreter of things is usage.

P

Pacta privata juri publico non derogare possunt - Private contracts cannot derogate from public law.
Par delictum - Equal fault.
Pari passu - On an equal footing.
Partus sequitur ventrem - The offspring follows the mother.
Pater est quem nuptiae demonstrant - The father is he whom the marriage points out.
Peccata contra naturam sunt gravissima - Wrongs against nature are the most serious.
Pendente lite nihil innovetur - During litigation nothing should be changed.
Per curiam - In the opinion of the court.
Per minas - By means of menaces or threats.
Per quod - By reason of which.
Post mortem - After death.
Prima facie - On the face of it.
Prima impressionis - On first impression.
Pro hac vice - For this occasion.
Pro rata - In proportion.
Pro tanto - So far, to that extent.
Pro tempore - For the time being.
Publici juris - Of public right.

Q

Quaeitur - The question is raised.
Quantum - How much, an amount.
Qui facit per alium, facit per se - He who acts through another acts himself.
Qui haeret in litera, haeret in cortice - He who stices to the letter, sticks to the bark.
Qui in utero est, pro jam nato habetur, quoties de ejus commodo quaeritur - He who is in the womb is considered as already born as far as his benefit is considered.
Qui non habet potestatem alienandi, habet necessitatem retinendi - He who has not the power of alienating is under the necessity of retaining.
Qui non habet, ille non dat - He who has not, does not give.
Qui non improbat, approbat - He who does not disapprove, approves.
Qui non obstat quod obstare potest facere videtur - He who does not prevent what he is able to prevent, is considered as committing the thing.
Qui non prohibet quod prohibere potest assentire videtur - He who does not prohibit when he is able to prohibit, is in fault.
Qui peccat ebrius, luat sobrius - He who does wrong when drunk must be punished when sober.
Qui potest et debet vetare et non vetat jubet - He who is able and ought to forbit and does not, commands.
Qui prior est tempore potior est jure - He who is prior in time is stronger in right.
Qui sentit commodum, debet et sentire onus - He who derives a benefit ought also to bear a burden.
Qui tacet consentire videtur - He who is silent appears to consent.
Quid pro quo - Consideration. something for something.
Quidcquid plantatur solo, solo cedit - Whatever is planted in or affixed to the soil, belongs to the soil.
Quod ab initio non valet, in tractu temporis non convalescit - What is not valid in the beginning does not become valid by time.
Quod constat curiae opere testium non indiget - What appears to the Court needs not the help of witnesses.
Quod necessarie intelligitur, id non deest - What is necessarily understood is not wanting.
Quod necessitas cogit, defendit - What necessity forces it justifies.
Quod non apparet, non est - What does not appear, is not.
Quod non habet principium non habet finem - What has no beginning has no end.
Quod per me non possum, nec per alium - What I cannot do through myself, I cannot do through another.
Quod prius est verius est; et quod prius est tempore potius est jure - What is first is more true; and what is prior in time is stronger in law.
Quod vanum et inutile est, lex non requirit - The law does not require what is vain and useless.
Quoties in verbis nulla est ambiguitas, ibi nulla expositio contra verba expressa fienda est - When there is no ambiguity in words, then no exposition contrary to the expressed words is to be made.

R

Ratio est legis anima, mutata legis ratione mutatur et lex - Reason is the soul of the law; when the reason of the law changes the law also is changed.
Re - In the matter of.
Recognition is the greatest motivator - Agnitio est maioribus motivator
Reprobata pecunia leberat solventem - Money refused releases the debtor.
Res - Matter, affair, thing, circumstance.
Res gestae - Things done.
Res integra - A matter untouched (by decision).
Res inter alios acta alteri nocere non debet - Things done between strangers ought not to affect a third person, who is a stranger to the transaction.
Res judicata accipitur pro veritate - A thing adjudged is accepted for the truth.
Res nulis - Nobody s property.
Respondeat superior - Let the principal answer.
Rex est major singulis, minor universis - The King is greater than individuals, less than all the people.
Rex non debet judicare sed secundum legem - The King ought not to judge but according to the law.
Rex non potest peccare - The King can do no wrong.
Rex nunquma moritur - The King never dies.
Rex quod injustum est facere non potest - The King cannot do what is unjust.

S

Salus populi est suprema lex - The safety of the people is the supreme law.
Sciens - Knowingly.
Scienter - Knowingly.
Scire facias - That you cause to know.
Scribere est agere - To write is to act.
Se defendendo - In self defence.
Secus - The legal position is different, it is otherwise.
Semper praesumitur pro legitimatione puerorum - Everything is presumed in favor of the legitimacy of children.
Semper pro matriomonio praesumitur - It is always presumed in favor of marriage.
Sententia interlocutoria revocari potest, definitiva non potest - An interlocutory order can be revoked, a final order cannot be.
Servitia personalia sequuntur personam - Personal services follow the person.
Sic utere tuo ut alienum non laedas - So use your own as not to injure another s property.
Simplex commendatio non obligat - A simple recommendation does not bind.
Stare decisis - To stand by decisions (precedents).
Stet - Do not delete, let it stand.
Sub modo - Within limits.
Sub nomine - Under the name of.
Sub silentio - In silence.
Sublata causa, tollitur effectus - The cause being removed, the effect ceases.
Sublato fundamento, cadit opus - The foundation being removed, the structure falls.
Subsequens matrimonium tollit peccatum praecedens - A subsequent marriage removes the preceding wrong.
Suggestio falsi - The suggestion of something which is untrue.
Sui generis - Unique.
Summa ratio est quae pro religione facit - The highest reason is that which makes for religion, i.e. religion dictates.
Suppressio veri - The suppression of the truth.
Suppressio veri expressio falsi - A suppression of truth is equivalent to an expression of falsehood.

T

Talis qualis - Such as it is.
Terra firma - Solid ground.
Testamenta latissimam interpretationem habere debent - Testaments ought to have the broadest interpretation.
Traditio loqui chartam facit - Delivery makes a deed speak.
Transit terra cum onere - The land passes with its burden

U

Ubi eadem ratio ibi idem jus, et de similibus idem est judicium - When there is the same reason, then the law is the same, and the same judgment should be rendered as to similar things.
Ubi jus ibi remedium est - Where there is a right there is a remedy.
Ubi non est principalis, non potest esse accessorius - Where there is no principal, there can be no accessory.
Ubi nullum matrimonium, ibi nulla dos es - Where there is no marriage, there is no dower.
Ultima voluntas testatoris est perimplenda secundum veram intentionem suam - The last will of a testator is to be fulfilled according to his true intentio.
Ut poena ad paucos, metus ad omnes, perveniat - That punishment may come to a few, the fear of it should affect all.
Utile per inutile non vitiatur - What is useful is not vitiated by the useless.

V

Verba chartarum fortius accipiuntur contra preferentem - The words of deeds are accepted more strongly against the person offering them.
Verba debent intelligi cum effectu - Words ought to be understood with effect.
Verba intentioni, non e contra, debent inservire - Words ought to serve the intention, not the reverse.
Verbatim - Word by word, exactly.
Vi et armis - With the force and arms.
Via antiqua via est tuta - The old way is the safe way.
Vice versa - The other way around.
Vide - See.
Vigilantibus non dormientibus jura subveniunt - The laws serve the vigilant, not those who sleep.
Vir et uxor consentur in lege una persona - A husband and wife are regarded in law as one person.
Visitationem commendamus - We recommend a visitation.
Volens - Willing.
Volenti non fit injuria - An injury is not done to one consenting to it.
Voluntas in delictis non exitus spectatur - In offences the intent and not the result is looked at.
Voluntas reputatur pro facto - The will is taken for the deed.

08 August 2016

TG on Cenvat Credit 2016

ICAI's "Technical Guide to CENVAT Credit 2016" with inclusion of changes made by Finance Act, 2016Union Budget 2016-17 has brought n plethora of changes in CENVAT Credit Rules, 2004. These cover expansion of definition of Exempted Services, Doing away with FIFO method for utilization of credit under Rule 14(2), allowing ISDs to distribute credit to outsourced manufacturing units, etc.

A major change has taken place in process of reversal of credit wherein entire Rule 6 has been redrafted to make it unambiguous and practical. With these changes it can be gathered that the budget is much in line with the aim and vision of the Government to capitalize on the future with minimal changes in the legislation and maximum emphasis on the implementation.

Accordingly, the Indirect Taxes Committee of ICAI has thoroughly revised "Technical Guide to CENVAT Credit 2016" with inclusion of changes made by Finance Act, 2016. This revised Guide is immensely useful as new illustrations, case studies and recent judicial pronouncements have also been incorporated in the Guide to facilitate easy understanding of the provisions of amended CENVAT Credit Rules.

02 August 2016

Old e-filling pending ITR V


If you have e-filed your Income-tax return for earlier years (2009-2015) but NOT submitted your ITR-V (acknowledgment) then your tax-return will not be valid and the Income-tax Department (ITD) may send you a notice (including penalty) for not-filing your Income-tax return.  

If you have e-filed your return in the past years and your ITR-V has not been successfully received by the Central Processing Centre (CPC) of the Income-tax Department, your return filing process for that year is not complete. The ITD has recently allowed tax filers an extension (till 31st August 2016) to verify their ITR-V of earlier years using one of the options below.

Option 1: e-Verify.
Option 2: Sign and post it to CPC, Bangalore.

01 August 2016

MCA-Relaxation of Additional Fees

Relaxation of Additional Fees/ Extension of Last Date by MCA

A. MCA Announces Relaxation of additional Fees/ Extension of Due Date for Filing of Form AOC-4, AOC-4 (XBRL), AOC-4 (CFS) and MGT-7 [30 July 2016]

MCA vide General Circular 08/2016 dt. 29 July, 2016 has announced relaxation of additional fee and extension of due date for filing of AOC-4 and MGT-7, i.e. it has decided to allow filing of financial statements/ annual returns by 29.10.2016 where due date for holding AGM is on or after 01.04.2016 without payment of additional filing fee, as under:

MCA General Circular 08/2016 dt. 29 July, 2016

1. The Ministry have revised form AOC-4 which would be deployed shortly. Further, Form AOC-4 (XBRL) and Form AOC-4 (CFS) are also under revision and this may be available for deployment by end of August, 2016.

2. As per the relevant provisions of the Companies Act, 2013, the financial statements and Annual Returns will have to be filed by the Companies within 30 days and 60 days of conclusion of AGM or the last day by which AGM ought to have been held, as the case may be

3. In the light of the above and. keeping in view that some time could be required for companies to get familiarised with filing of the new forms, it has been decided to allow companies to file financial statements and Annual Returns on or before 29.10.2016 where due date for holding of the Annual General Meeting is on or after 01.04.2016, without payment of additional filing fee.

29 July 2016

CBDT extends due date for filing return of income

CBDT extends due date for filing return of income from 31-07-16 to 05-08-16 in case of taxpayers who were liable to file ITR by such date.

26 July 2016

Arm's Length Price-AY 2016-17

CBDT Notification on Determination of Arm's Length Price for AY 2016-17 u/s 92C (Transfer Pricing)

The CBDT has notified that where variation between ALP determined u/s 92C does not exceed 1% of the wholesale price (3% otherwise) of international or specified domestic transactions, then actual transaction price shall be taken as ALP for AY 2016-17, i.e. tolerance limits of price variation for transfer pricing purposes, as under:
CBDT Notification No. 57/2016 dt. 14 July 2016
In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961), read with proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between the arm's length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent of the later in respect of wholesale trading and three percent of the later in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm's length price for Assessment Year 2016-2017.
Explanation
For the purposes of this notification, "wholesale trading" means an international transaction or specified domestic transaction of trading in goods, which fulfills the following conditions, namely:-
(i) purchase cost of finished goods is eighty percent. or more of the total cost pertaining to such trading activities; and
(ii) average monthly closing inventory of such goods is ten percent. or less of sales pertaining to such trading activities.


IT NOTICES

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 21st
July, 2016.
Press Release
Sub : Income Tax Department to issue 7 lakh letters seeking Information in respect of
High Value Transactions
Under the Annual Information Returns (AIR), various types of high-value transactions
were being reported to the Income Tax Department. These include reporting of cash
deposits of Rs.10,00,000 or more in a saving bank account, sale/purchase of immovable
property valued at Rs. 30,00,000 or more, etc. Many of these transactions do not have
PAN linked to it. The Department has details of about 90 lakh such transactions for the
period 2009-10 to 2016-17. The Income Tax Department has with the help of in-house
computer techniques, grouped such non-PAN transactions and identified 7 lakh high-risk
clusters having around 14 lakh non-PAN transactions which are being scrutinized by the
Income Tax Department closely.
The Department will be issuing letters to the parties of these transactions requesting
them to provide their PAN number against these transactions. For the convenience of the
parties to whom these letters are addressed, a new functionality on e-filing portal has been
developed wherein they can own up transactions and provide structured response
electronically. The parties can log-in to their e-filing website and by quoting a Unique
Transaction Sequence Number provided in the letter sent to them, can link their transaction
with their PAN easily. They will also be able to give a response to this letter electronically
by choosing the option of either owning up the transaction or denying the transaction as
their own. The responses received from such parties online will be examined by the
Department. The Department will initiate further necessary action in those cases where no
replies are received.
The members of public who receive such letters are requested to kindly cooperate in
the matter. They may use the Departmental helpline to ask questions, as far as possible,
instead of making direct contact with any officials of the Income Tax Department. Members
of public are advised not to entertain any claims from unscrupulous elements who may offer
their help in complying with such communication by falsely representing themselves to be
the agents of Income Tax department in the matter.
(Meenakshi J Goswami)
Commissioner of Income Tax
(Media and Technical Policy)
Official Spokesperson, CBDT

Payment of Service Tax by Cheque

Clarification issued regarding payment of Service Tax through non electronic modes

by CA Bimal Jain

The CBEC vide Instruction F.No 137/08/2013-Service Tax dated July 22, 2016, issued direction that the discretion vested in the jurisdictional Deputy/Assistant Commissioner, to allow the assessee to deposit Service tax by any other mode, under rule 6(2) of the Service Tax Rules, 1994, should be exercised judiciously and rationally. The supervisory officers should, from time to time, check such exercises of discretion so that there are no unwarranted refusals.
Presently, every assessee is required to pay Service tax electronically through internet banking, however, the jurisdictional Deputy/Assistant Commissioner, may, for reasons to be recorded in writing, allow the assessee to deposit service tax by any other mode e.g cheque

Payment of Service Tax by Cheque

Clarification issued regarding payment of Service Tax through non electronic modes

by CA Bimal Jain


The CBEC vide Instruction F.No 137/08/2013-Service Tax dated July 22, 2016, issued direction that the discretion vested in the jurisdictional Deputy/Assistant Commissioner, to allow the assessee to deposit Service tax by any other mode, under rule 6(2) of the Service Tax Rules, 1994, should be exercised judiciously and rationally. The supervisory officers should, from time to time, check such exercises of discretion so that there are no unwarranted refusals.

Presently, every assessee is required to pay Service tax electronically through internet banking, however, the jurisdictional Deputy/Assistant Commissioner, may, for reasons to be recorded in writing, allow the assessee to deposit service tax by any other mode e.g cheque.

APPLICATION FOR EMPANELMENT OF CONCURRENT AUDITOR UCO Bank

Please apply for empanelment as Concurrent Auditor with UCO Bank. Last Date to Apply is 10-08-2016.

20 July 2016

Stipend exempt?

If the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the I T act . In this regard the decision of the KarnatakaHigh Courtin A. Ratnakarv. Addl. CIT [1981] 128 ITR527can be applied.This was also followedby Tribunal in case of Income-tax Officer v. Dr. G.N. Ramachandran[1 ITD902]

CBDT Notification on Determination of Arm’s Length Price

CBDT Notification on Determination of Arm’s Length Price for AY 2016-17 u/s 92C (Transfer Pricing)

The CBDT has notified that where variation between ALP determined u/s 92C does not exceed 1% of the wholesale price (3% otherwise) of international or specified domestic transactions, then actual transaction price shall be taken as ALP for AY 2016-17, i.e. tolerance limits of price variation for transfer pricing purposes, as under:

CBDT Notification No. 57/2016 dt. 14 July 2016

In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961), read with proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one percent of the later in respect of wholesale trading and three percent of the later in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for Assessment Year 2016-2017.

Explanation :

For the purposes of this notification, “wholesale trading” means an international transaction or specified domestic transaction of trading in goods, which fulfills the following conditions, namely:-

(i) purchase cost of finished goods is eighty percent. or more of the total cost pertaining to such trading activities; and

(ii) average monthly closing inventory of such goods is ten percent. or less of sales pertaining to such trading activities.

NCLT clarifies on functioning of Single Bench & Division Bench

NCLT clarifies on functioning of Single Bench & Division Bench

NCLT clarifies that the NCLT, Division Bench is *entitled to function as a Bench and exercise powers of the Tribunals, irrespective of any class of cases* (except those specified by an Order of President); States that the Single Judicial Member posted at various benches of Tribunal are also authorized, in addition, to the Division Bench to function as Bench and exercise *powers of NCLT* in following cases:

(i) _All *cases* that have been *transferred from CLB,*_

(ii) _All *new petitions* where company involved has *paid-up share capital of Rs. 50 lacs or less where Division Bench is available.* Clarifies that, where the Division Bench is not available, the pecuniary limit of Rs. 50 lacs shall not apply,_

(iii) _Any *other matter which the President may authorize* by passing a specific/general order:_ NCLT

18 July 2016

SIT report on Black Money: 6 things you should know about it

SIT report on Black Money: 6 things you should know about it

The Special Investigation Team (SIT), headed by Justice MB Shah (retired), submitted its fifth report to Supreme Court on methods to curb black money in the economy.

The SIT has made the following recommendations in the Fifth Report


Complete ban should be imposed on cash transactions above Rs 3,00,000. There should be specific provision in the Act that transactions in cash above threshold limit shall be deemed as illegal, invalid and punishable under the law.
2
If there is cash withdrawal of more than Rs.3,00,000 from any bank, then bank should consider it as a suspicious activity and should report it to Financial Intelligence Unit ('FIU')and the concerned Income–tax Department.
3
Maximum limit on cash holdings may be fixed between Rs.10 to 15 lacs. In any case, if any person or industry requires to hold more cash, it may obtain necessary permission from the Commissioner of Income–tax of the area.
4
In addition, starting from the next year, all banks including co–operative banks be directed to notify any income or withdrawals of more than Rs.3,00,000 to the Directorate General of Income-tax (Investigation) Authorities of the State and to the FIU.
5
Appropriate steps may be taken for amending the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, by incorporating the provision that undisclosed foreign income and assets would vest in the Union of India. Once it is held that under the law, property vests in Union of India, the person who is holding the said property outside the country shall have to prove that it was acquired legally and/or held after obtaining necessary permission from the RBI.
6
Before investing any amount or purchasing any property outside the country, the assessee must inform the concerned jurisdictional Commissioner of Income Tax Department of the State.

17 July 2016

Unable to register your DSC on MCA portal

In case you are unable to register your DSC on MCA portal because your name in the PAN card is not as per the ICAI records, you may send fill up the form in the given link :-  
http://online.icai.org/app_forms/panupdate/index.html

And kindly attach a scanned copy of your PAN card along with copy of any of the documents in which your name is as in your PAN card

Passport
Aadhar Card
Driving License
Bank passbook with a photo affixed and duly signed by the bank
Voters' Identity card

This will enable us to carry out the necessary alignment to ICAI records to share the same to MCA for their further actions.

16 July 2016

Independent Regulator for ICAI

Govt. ready to appoint independent regulators for ICAI, ICSI and MCI

July 16, 2016

In order to improve standards of professions, the Central Government has planned to appoint regulators for the Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India, Medical Council of India (MCI) and other professional bodies. Key points of this development are as follows:

  1. The Ministry of Commerce is working on this proposal with objective that having independent regulators, like SEBI, CCI, etc., for professional bodies would help to make India globallya potential services hub in the upcoming years.

  2. At present, ICAI, ICSI and MCI have their own councils of elected or nominated members, which regulate their respective professions. ICAI Council has 40 members, ICSI has 15 and MCI has 100-odd members.

  3. From the point of view of number of membership, ICAI is considered as second-largest professional accounting and finance body worldwide.

  4. But after appointment of regulators all the professional bodies, including ICAI, ICSI and MCI, would cease to regulate theirrespective professions. However, power to manage internal professional matters will continue to vest in them.

  5. The Govt. has taken such step after unravelling of various cases like Kingfisher, Sahara, Saradha and Satyam.

  6. On the one hand, it will help these professional bodies to improve the standards in their respective professions and to remove any conflict of interest in their respective roles, on the other hand it will also help in taking quick action against the members of their own professional fraternity on any complaint.

Source: http://www.financialexpress.com/

14 July 2016

IDS in instalments

CBDT Press Release dated 14-7-2016 on IDS
 
The Income Declaration Scheme 2016 - Relaxation of time schedule for making payments under the Scheme
 
During the course of meetings and seminars held in different parts of the country, various stakeholders have expressed concern that the time period available under the Scheme up to 30th November, 2016 for making payment of tax, surcharge and penalty is very short, especially where funds in liquid form are not readily available with the declarants. It has also been mentioned that for making payment by 30.11.2016, the declarants may have to opt for distress sale of the assets.
 
Taking into consideration the practical difficulties of the stakeholders, the Government has decided to revise the time schedule for making payments under the Scheme as under:
 
(i) a minimum amount of 25% of the tax, surcharge and penalty to be paid by 30.11.2016;
(ii) a further amount of 25% of the tax, surcharge and penalty to be paid by 31.3.2017; and
(iii) the balance amount to be paid on or before 30.9.2017.
 
A Notification to this effect shall be issued shortly.

Income Tax manual /Compulsory scrutiny criteria F.Y. 2016-2017

Instruction No. 4/2016
Government of India
Ministry of Finance
Department of Revenue (CBDT)
North-Block, New Delhi
Date: 13th of July, 2016
To
All Pr. Chief-Commissioners of Income-tax/Chief-Commissioners of Income-tax
All Pr. Directors-General of Income-tax/Directors-General of Income-tax
Sir/Madam
Subject: Compulsory manual selection of cases for scrutiny during the Financial Year 2016-2017- regd:-
1. In supersession of earlier Instructions on the above subject, the Board hereby lays down the following procedure and criteria for manual selection of returns/cases for compulsory scrutiny during the financial-year 2016-2017:-
(i) Cases involving addition on a substantial and recurring question of law or fact in earlier assessment year(s), in excess of Rs. 25 lakhs in metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, while for other charges, quantum of such addition should exceed Rs. 10 lakhs (for transfer pricing cases, quantum of such addition should exceed Rs. 10 crore) and where:
a. such an addition in assessment has become final as no further appeal was/has been filed; or
b. such an addition has been confirmed at any stage of appellate process in favour of revenue and assessee has not filed further appeal; or
c. such an addition has been confirmed at 1st appeal stage in favour of revenue or subsequently and further appeal of assessee is pending before any Authority in the appellate process.
(ii) All assessments pertaining to Survey under section 133A of the Act excluding those cases where books of accounts, documents etc. were not impounded and returned income (excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year. However, where assessee retracts the disclosure made during the Survey, such cases will not be covered by this exclusion.
(iii) Assessments in search and seizure cases to be made under section(s) 158B, 158BC, 158BD, 153A & 153C read with section 143(3) of the Act and also for the returns filed for the assessment year relevant to the previous year in which authorization for search and seizure was executed u/s 132 or 132A of the Act.
(iv) Return filed in response to notice under section 148 of the Act.
(v) Cases where registration u/s 12AA of the IT Act has not been granted or has been cancelled by the CIT/DIT concerned, yet the assessee has been found to be claiming tax-exemption under section 11 of the Act. However, where such orders of the CIT/DIT have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.
(vi) Cases of entities, being ‘scientific research association’ or ‘university, college or other institution’, having approval under section(s) 35(1)(ii)/35(1)(iii) of the Act.
(vii) Cases in respect of which specific and verifiable information pointing out tax-evasion is given by any Government Department/Authority. However, before selecting a case for scrutiny under this criterion, Assessing Officer shall be required to take prior administrative approval from the concerned jurisdictional Pr. CIT/Pr.DIT/CIT.
2. Computer Aided Scrutiny Selection (CASS): Cases are also being selected under CASS-2016 on the basis of broad based selection filters. List of such cases has been/is being separately intimated by the Pr.DGIT(Systems) to the jurisdictional authorities concerned.
3. As a taxpayer friendly measure, to reduce the departmental interface with the assessee and reduce the compliance burden of tax payers in scrutiny assessment proceedings, the scheme of Assessment through e-mail is being extended to all scrutiny cases including the cases selected under above parameters in seven cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata and Mumbai. However, assessees in these seven cities can exercise the option of not being scrutinized under the e-mail based paperless assessment proceedings after informing the Assessing Officer concerned in writing in the beginning or subsequently during the course of assessment proceedings. Further, in cases which require submission of voluminous documents and it is not practicable to submit the scanned copies thereof through e-mail, in such instances; the Assessing Officer may decide to receive such documents in physical form after recording reasons for the same.
4. It is reiterated that the targets for completion of scrutiny assessments and strategy of framing quality assessments as contained in Central Action Plan document for Financial-Year 2016-2017 have to be complied with and it must be ensured that all scrutiny assessment orders including the cases selected under the manual criterion are completed through the AST system software only. It should be the endeavour of the Assessing Officers and his supervisory authorities to ensure that scrutiny assessment cases are disposed in a well planned manner without dragging the assessment proceedings till the last date of limitation. Further, Pr. CCsIT/CCIT(Central)/Pr. CCIT(International tax)/CCIT(Exemption)/DsGIT should evolve a suitable monitoring mechanism in their respective charges in order to ensure quality of assessments being framed during the financial year. In this regard, by 31st January, 2017, such authorities shall send a report to the respective Zonal Member with a copy to Member (IT) containing details of at least 25 quality assessment orders from their respective charges. It may further be the endeavour that cases selected for publication in ‘Let us Share’ are picked up only from the quality assessments as reported.
5. These instructions may be brought to the notice of all concerned for necessary compliance.
6. Hindi version to follow.
(Rohit Garg)
Deputy-Secretary to the Government of India