16 May 2015

More than 4 concurrent audits of banks

Brief decision of Council of ICAI at 342nd Meeting held on 15.05.2015. A CA is not allowed to do more than 4 concurrent audits of banks

15 May 2015

Guidance note issued by ICAI on CSR activities expenditure

FYI - ICAI today issued Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities. 

The objective of this Guidance Note is to provide guidance on recognition, measurement, presentation and disclosure of expenditure on activities relating to corporate social responsibility.

The Guidance Note does not deal with identification of activities that constitute CSR activities but only provides guidance on accounting for expenditure on CSR activities in
line with the requirements of the generally accepted accounting principles including the applicable Accounting Standards.


Link for the guidance note: http://220.227.161.86/37627gn-csr150515.pdf

14 May 2015

Black Money Bill: All You Need to Know

Black Money Bill: All You Need to Know

The black money Bill was passed by the Lok Sabha on Monday. Christened the Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015, it seeks to check the black money menace with stringent provisions for those stashing illegal wealth abroad. The Bill provides for separate taxation of any undisclosed income in relation to foreign income and assets. Such income will henceforth not be taxed under the Income-tax Act but under the stringent provisions of the new legislation.
Here's your 10-point cheat-sheet to the story:

1. According to the Undisclosed Foreign Income and Assets (Imposition of New Tax) Bill, 2015, those who conceal income and assets and indulge in tax evasion in relation to foreign assets can face rigorous imprisonment of up to 10 years.

2. The offence will be non-compoundable and the offenders will not be permitted to approach the Settlement Commission for resolution of disputes.

3. There will also be a penalty of 300 per cent of taxes on the concealed income and assets.

4. According to the Bill, undisclosed foreign income or assets shall be taxed at the flat rate of 30 per cent. No exemption or deduction or set off of any carried forward losses which may be admissible under the existing Income-tax Act, 1961, shall be allowed. And concealment of income in relation to a foreign asset will attract penalty equal to three times the amount of tax (90 per cent of the undisclosed income or the value of the undisclosed asset). This would be over and above tax at a flat rate of 30 per cent.

5. The Bill also proposes to make concealment of income and evasion of tax in relation to a foreign asset a 'predicate offence' under the Prevention of Money Laundering Act, which will enable the enforcement agencies to attach and confiscate the accounted assets held abroad and launch proceedings.

6. It seeks to make non-filing of income tax returns or filing of returns with inadequate disclosure of foreign assets liable for prosecution with punishment of rigorous imprisonment of up to 7 years. To protect persons holding foreign accounts with minor balances which may not have been reported out of oversight or ignorance, it has been provided that failure to report bank accounts with a maximum balance of upto Rs.5 lakh at any time during the year will not entail penalty or prosecution.

7. The tax liability on an overseas property would be computed on the basis of its current market price, not the price at which it was acquired.

8. The Bill provides for a short window for those holding overseas assets to declare their wealth, pay taxes and penalties to escape punitive action. Failure to furnish return in respect of foreign income or assets shall attract a penalty of Rs.10 lakh. The same amount of penalty is prescribed for cases where although the assessee has filed a return of income, but he has not disclosed the foreign income and asset or has furnished inaccurate particulars of the same.

9. The Income Tax assesses with overseas assets will get a one-time opportunity for declaring them. The time-frame of the short window will be notified after the passage of the bill.

10. The proposal to come out with a new law on black money was announced by Finance Minister Arun Jaitley in his first full-year Budget in February

Finance Bill 2015 gets presidential assent

Finance Bill 2015 gets presidential assent today and becomes Finance Act 2015. Service tax rate of 14% get approved, however will be effective from date to be notified, till that time old rate will be applicable.

13 May 2015

Companies amendment bill passed in Rajya Sabha

Companies amendment bill passed in Rajya Sabha

Main features and relaxations are as under:

1.      No minimum capital requirement of Rs.1 lakh (in case of private company) or Rs. 5 lakh (in case of public company)

2.      Approval of shareholders under Section 188 (related party transactions) can be ordinary

3.      Transaction between holding and wholly owned subsidiaries whose accounts are consolidated and laid before general meeting are exempt from shareholders’ approval requirement is exempt from requirement of obtaining shareholders’ approval

4.      No requirement of common seal. If the company does not have common seal, authority in favour of any person by two directors or one director and company secretary, if any, will bind the Company

5.      If deposit is accepted in violation of deposit rules or the company fails to repay deposit or interest thereon the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees but which may extend to ten crore rupees; and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both. If it is proved that the officer of the company who is in default, has contravened such provisions knowingly or wilfully with the intention to deceive the company or its shareholders or depositors or creditors or tax authorities, he shall be liable for action under section 447.

6.      Exemption for loan given to wholly owned subsidiary and security or guarantee provide on behalf of subsidiary is given 185 itself (earlier exemption was through rules, subordinated regulations)

7.      Board resolutions under Section 179 which are filed with RoC, will not be public document

8.      Previous losses and depreciation will need to set off out of current year profit before declaring dividend

9.      If dividend is claimed and paid, shares in respect thereof should not be transferred to IEPF

10.  Fraud exceeding certain percentage need to be reported to Central Government. Other fraud of lesser amount need to be reported to audit committee/ board and details of frauds which are reported to audit committee/ board also need to be disclosed in directors report

11.  Audit Committee can give omnibus approval (this will be on the lines of listing agreement; but threshold and other conditions will be prescribed by Rules)

12 May 2015

ICAI has issued today Guidance note on Accounting for Derivatives.

ICAI has issued today Guidance note on Accounting for Derivatives.

This Guidance Note is an interim measure to provide recommendatory guidance on accounting for derivative contracts and hedging activities considering the lack of mandatory guidance in this regard with a view to bring about uniformity of practice in accounting for derivative contracts by various entities.

Please refer link to view / Download GN on Accounting for Derivatives http://220.227.161.86/37597research27174.pdf

10 May 2015

Proposed amendment : IMPORTANT effective from 1st JUNE, 2015;

Forwarding as received from Chintan Patel..
Proposed amendment :
IMPORTANT effective from 1st JUNE, 2015;
TDS provision u/s 194C applicable on payments to transporters vide Finance Bill, 2015
  
CURRENT SCENARIO:

Under the existing provisions of sub section (6) of section 194C of the Income Tax Act, 1961, there is no deduction of tax from payments made to the contractor during the course of plying, hiring and leasing goods carriage if the contractor furnishes his Permanent Account Number (PAN) to the payer.

REASON FOR THE AMENDMENT:

This exemption (as mentioned above) applies to all the transporters irrespective of their size, which defeat the real intention of bringing this amendment vide Finance Bill, 2009.

The memorandum explaining the provisions of Finance (No.2) Bill, 2009 indicates that the intention was to exempt only small transport operators (as defined in section 44AE of the Act) from the purview of TDS on furnishing of Permanent Account Number (PAN). Thus, the intention was to reduce the compliance burden on the small transporters. However, the current language of sub-section (6) of section 194C of the Act does not convey the desired intention and as a result all transporters, irrespective of their size, are claiming exemption from TDS under the existing provisions of sub-section (6) of section 194C of the Act on furnishing of PAN.

PROPOSED AMENDMENT:

Now to bring the more rationale, it is proposed to amend the provisions of section 194C of the Act to expressly provide that the relaxation under sub-section (6 ) of section 194C of the Act from non-deduction of tax shall only be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in the business of transport i.e. plying, hiring or leasing goods carriage and who is eligible to compute income as per the provisions of section 44AE of the Act (i.e. a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN.

We can depict the changes made by Finance Bill, 2015 in Section 194C(6) as follows:-

Existing Section 194C(6)

Sec 194C(6) After proposed amendment

No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of  business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum.

No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing ofwhere such contractor owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect along with his Permanent Account Number, to the person paying or crediting such sum.

Emphasis supplied

This amendment will take effect from 1st June, 2015.

Points to note:-

1. As per Explanation (ii) of Section 194C the ‘Goods carriages” shall have the meaning assigned to it in the Explanation to subsection (7) of Section 44AE.

2. In continuation of Note 1, “Goods Carriage” means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage. [Explanation (a) to subsection (7) of Section 44AE read with Section 2 of the Motor Vehicles Act, 1988.]

3. A person, who is in possession of goods carriage, whether taken on hire purchase or on instalments and for which the whole or part of the payment is still due, shall be deemed to be the owner of such goods carriages. [Explanation (b) to subsection (7) of Section 44AE.]

IMPACT AREA:

This proposed amendment will have impact on both the parties i.e. payer and payee. As far as payees are concerned, the inflow of cash will be lower now as there going to be a deduction of 1% / 2% from the revenues. Further, it may also bring the larger amount of revenue under the tax umbrella as the deduction of tax will imply to declare that income to the income tax department curbing the unfair practices. Those entities which are not profitable and making losses, this deduction of Tax may block the money for a very long time until they get it back via income tax refund after processing of the income tax return. To cater this problem, one may obtain the certificate u/s 197 of Income Tax Act, 1961 for deduction of tax at lower/nil rate.

Taking the look at the impacts on other side i.e. on payers the major work stands to identify all such cases where no TDS was made and now it is required to deduct the TDS, if declaration is not available.  It is advisable on the part of the payer to communicate (if possible) to all the payees and ask for the declaration well in advance so that any lack of communication regarding these provisions can be avoided.. This process will also require the changes in the accounting software/ERP/SAP of the payee so that there will be the deduction of tax. Further, the proper record and documentation of declarations and PAN, should be maintained to substantiate the cases where deduction of tax is not to be made. A sample declaration is enclosed as Annexure –A of the article.

Annexure – A

Sample Declaration u/s 194C(6) for non-deduction of tax at source.

To,

__________ (name of the Payer)

__________  (Address of the Payer)

Declaration

I, ________, Proprietor / Partner / Director of M/s _________________ (name and address of Payee) [hereinafter “the contractor”] do hereby makes the following declaration as required by sub section (6) of Section 194C of the Income Tax Act, 1961 for receiving payments from the payer without deduction of tax at source:-

1. That I/We am/are authorized to make this declaration in the capacity as proprietor/partner/director.

2. That the contractor is engaged by the payer for plying, hiring or leasing of goods carriage* for its business.

3. That the contractor does not own more than 10 goods carriage* as on date.

4. That if the number of goods carriages* owned by the contractor exceeds ten at any time during the previous year 2015-16 (i.e. 01.04.2015 to 31.03.2016) or after furnishing this declaration, the contractor shall forthwith, in writing intimate the payer of this fact.

5. That the Income Tax Permanent Account Number (PAN) of the contractor is ____________ . A self-attested photocopy of the PAN is furnished to the payer along with this declaration. 

Place : ______

Date : _______                                                                                             (Name of Declarant)

Verification

I, the above named declarant do hereby verify that the contents of the above paragraphs one to five are true to the best of my knowledge and belief, and no part of it is false and nothing material has been concealed in it.

Place :

Date:                                                                                                  

(name of Declarant)

* Goods Carriage” means any motor  vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage. [Explanation (a) to subsection (7) of Section 44AE read with Explanation (ii) of Section 194C and  Section 2 of the Motor Vehicles Act, 1988.]

08 May 2015

Finance Bill passed

Rajjya Sabha passed Finance Bill 2015. Now only ascent from President required for enactment of Budget.

04 May 2015

Notification on Education Cess

Amendment to The CENVAT Credit Rules,2004 (CCR,2004)

 

Rule 3(7)(b) of the CCR,2004 has been amended so as to allow utilization of credit of Education Cess and Secondary Education Cess for payment of basic excise duty in the following situations:

 

1.       Education Cess and Secondary & Higher Education Cess on inputs or capital goods received in the factory of manufacture of final product on or after the 1st day of March,2015;

 

2.       Balance 50% Education Cess and Secondary and Higher Education Cess on Capital Goods received in the factory of manufacture of final product in the financial year 2014-15; and

 

3.       Education Cess and Secondary & Higher Education Cess on input services received by the manufacture of final product on or after 1st day of March,2015;

 

(Notification No.12/2015-Central Excise (N.T.) dated 30-04-2015 refers)

 



01 May 2015

Illustrative formats of an auditors’ report on CFS

ICAI has today issued illustrative formats of an auditors’ report on CFS, covering some of the clauses of section 143(3) of the Companies Act, 2013 (and where the auditor does not have the responsibility for reporting on internal financial controls over financial reporting under section 143(3)(i) of the Companies Act, 2013).
These formats may be applied for the FY 2014-15 and until further announcement.

Format of Auditor's Report

(a) Unmodified opinion on the consolidated financial statements :  220.227.161.86/37520aasb27034-cfs-co.pdf

(b) Modified opinion on the consolidated financial statements:  220.227.161.86/37521aasb27034-cfs-qo.pdf

Changes in Finance Bill,2015


Snippets of changes made in Finance Bill, 2015 as passed by the Lok Sabha

The Hon'ble Finance Minister had presented the Finance Bill, 2015 in lok Sabha on February 28, 2015. Now the Lok Sabha passed the Finance Bill, 2015 with certain changes. Originally the Finance Bill, 2015 proposed to provide relief from MAT only to FIIs without extending such relief to foreign companies. Now exemption from MAT has been proposed to be provided to foreign companies as well. Key changes as made to the Finance Bill, 2015 are given hereunder:

1) MAT exemption to foreign coImpanies : The Finance Bill, 2015 proposed to provide relief from MAT only to FIIs without extending such relief to foreign companies. Thus, the foreign company would be liable to pay MAT on capital gains arising from transfer of securities and income arising from royalty, interest or FTS even if such income would not be chargeable to tax or taxable at lower rate in India by virtue of applicable double taxation avoidance agreements ('DTAA') or any provision of the Income-Tax Act.

Therefore, the Finance Bill, 2015 as passed by Lok Sabha proposes to provide relief from MAT to foreign companies as well. Capital gains from transfer of securities, interest, royalty and FTS accruing or arising to foreign company has been proposed to be excluded from chargeability of MAT if tax payable on such income is less than 18.5%.

2) Increase in limit of Section 80D deduction to Individuals : The Finance Bill, 2015 had increased the limit of deduction under Section 80D to Rs 25,000 for any member of HUF. It omitted to increase such limit for individuals. Accordingly, necessary changes have been proposed to rectify such omission.

3) Subsidies included in definition of income : Any subsidy which is not reduced from the actual cost of the asset in view of provisions of Explanation 10 to Section 43(1) has been proposed to be included in the definition of income.

4) Interest on loan taken to acquire an asset : Interest on borrowings used for acquisition of asset has been proposed to be disallowed as revenue expenditure till the date on which asset is put to use.

30 April 2015

Circular on Goods cleared from DTA to SEZ treated as Exports

Goods cleared from DTA to SEZ treated as Exports


CBEC vide Circular No. 1001/8/2015-CX, Dated: April 28, 2015 has clarified that Benefit of rebate of duty under Rule 18 of Central Excise Rules, 2002 and Refund of accumulated CENVAT credit under Rule 5 of CENVAT Credit Rules, 2004 will continue to be available on goods cleared from Domestic Tariff Area (DTA) to Special Economic Zone (SEZ).


As per the provisions of SEZ Act, supply of goods from DTA to the SEZ is treated as export; as a SEZ is treated as a territory outside the customs territory of India. The DTA supplier supplying goods to the SEZ shall clear the goods either under bond or as duty paid goods under claim of rebate on the cover of ARE-1. Thus, any licit clearances of goods to an SEZ from the DTA will continue to be treated as export only.

 [Circular No. 1001/8/2015-CX, Dated: April 28, 2015]

19 April 2015

Change in ITR forms on hold

Considering difficulties expressed by cross section of tax payers,decision ws tkn to review ITR forms: Revenue Secy Shaktikanta Das to ANI

17 April 2015

Changed in Notified ITR-1, ITR-2 & itr-4s for A. Y. 2015-16

Changed in Notified ITR-1, ITR-2 & itr-4s for A. Y. 2015-16

CBDT has vide Notification No. 41/2015 Dated 15.04.2015 notified Form ITR-1, ITR-2 and ITR-4S for Assessment Year 2015-16 i.e Financial Year 2014-15. The Notification also made Several Change in Rule 12 of Income Tax Rules, 1962 which is related to Condition of Filing of Income Tax Return.  A brief summary of Changes is as follows :-

General
1)      ITR-1 (SAHAJ) & ITR-4S (Sugam) cannot be filed by individual who has earned any income from source outside India.
2)      Introduction of EVC for verification of return of income filed as an option to send ITR-V to CPC, Bangalore.
3)      Super Senior citizen are now allowed to file  ROI in paper form even though their income exceed Rs 5 lakhs subject to other conditions.

ITR-1
1)      Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
2)      Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

ITR-2
1)      Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
2)      Details of Foreign Travel made if any (For resident and nonresident both) includes, Passport No, Issued at, name of country, number of times travelled and expenditure
3)      Details of utilization of amount deposited in capital gain account scheme for years preceding to last two assessment years. Particulars asked include year of utilization, amount utilized, amount unutilized lying idle in capital gain account scheme till the date of filing of return of income.
4)      In case of LTCG & STCG not chargeable to tax to Non-resident on account of DTAA benefit, It is required to furnish Country name, Article of DTAA, TRC obtained or not?,
5)      For Non-resident, Income from other sources, If any income chargeable to tax at special rate provided in DTAA, It is now required to provide details of Name of Country, Relevant article of DTAA, Rate of Tax, Whether TRC obtained or not?, Corresponding rate of tax under income tax act.
6)      Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.
7)      In schedule FA- Foreign assets disclosure, Following details added.
a) Foreign Bank accounts details: It is now further require to furnish Account number, account opening date, Interest/income accrued from such account, If any along with details of head of income and schedule under which such income is shown, if offered to tax in India.
b) In similar manner, details of income from Financial interest in any entity outside India along with details of income offered to tax in ITR-2 from such income.
c) Similar disclosure requirement is also required for Immovable property outside India, capital asset held outside India, trust held outside India

ITR-4S
1)      Introduction of furnishing Aadhar Card Number in ROI. Which will be used for EVC system introduced as mentioned above.
2)      Details of all bank accounts with Bank name, IFSC Code, Name of Joint Holder, if any, Account number, Account balance as on 31.03.2015 mandatorily to be provided. Even those accounts which are closed during the year.

15 April 2015

CBDT notifies amendment to Rul

vide  [Notification No. 39/2015/F. No.142/02/2015-TPL] Dt.13/04/2015,New Delhi
CBDT notifies amendment to Rule 2BB specifying transport allowance exemption u/s 10(14) w.e.f. April 1; Increases transport allowance exemption from Rs 800 to Rs 1600 per month; Also, doubles the exemption limit for 'blind or orthopaedically handicapped employees' from Rs 1,600 per month to Rs 3,200 per month

11 April 2015

Guidance for application of Schedule II of Companies Act 2013.

ICAI issues Guidance for application of Schedule II of Companies Act 2013.

It includes guidance on component accounting, continuous process plant, Double/Triple Shift working,
etc.

Link... http://220.227.161.86/37329clcgc27675.pdf

10 April 2015

CARO

Announcement on CARO, 2003 and additional reporting under the Companies Act, 2013

ICAI has hosted an announcement on its website on 'Announcement on CARO, 2003 and additional reporting under the Companies Act, 2013', which is as follows:


"We are receiving queries from the members regarding applicability of CARO, 2003 along with Auditors' Report on financial statements of companies for the financial year 2014-15. The Ministry of Corporate Affairs (MCA) is working on it and has constituted a Committee for this purpose to analyse the contents of the Order to be made under section 143(11) of the Companies Act, 2013 for the Financial Year 2014-15. ICAI is also a member of the said committee. We are given to understand by MCA that an Order being a smaller version of CARO 2003, applicable for the financial year 2014-15, may be notified soon under section 143(11) of the Companies Act, 2013. However, at this juncture, to bring more clarity, this Announcement is released in consultation with the Ministry.

The Companies Act, 1956 has ceased to have effect from 01st April, 2014. As a corollary, the Companies (Auditor's Report) Order, 2003 issued under section 227(4A) of the said Act also ceases to have effect from the said date.

Section 143(11) of the Companies Act, 2013 which came into force from 01st April, 2014 provides that "the Central Government may, in consultation with the National Financial Reporting Authority, by general or special order, direct, in respect of such class or description of companies, as may be specified in the order, that the auditor's report shall also include a statement on such matters as may be specified therein."

Accordingly, it may be noted that as when an Order is notified by the Central Government under section 143(11) of the Companies Act, 2013, the members would be required to report thereon as a part of their statutory audit reports.

Until the aforesaid Order is issued, no additional reporting under section 143(11) of the Companies Act, 2013 is required by the Auditors for the financial year 2014-15.

Members are advised to keep a watch on the MCA site
(www.mca.gov.in) as well as the ICAI site (www.icai.org) for further announcements in this regard." Read more.

-

08 April 2015

ANNOUNCEMENT ON CARO, 2003 AND ADDITIONAL REPORTING UNDER THE COMPANIES ACT, 2013

ANNOUNCEMENT ON CARO, 2003 AND ADDITIONAL REPORTING UNDER THE COMPANIES ACT, 2013

We are receiving queries from the members regarding applicability of CARO, 2003 along with Auditors’ Report on financial statements of companies for the financial year 2014-15. The Ministry of Corporate Affairs (MCA) is working on it and has constituted a Committee for this purpose to analyse the contents of the Order to be made under section 143(11) of the Companies Act, 2013 for the Financial Year 2014-15. ICAI is also a member of the said committee. We are given to understand by MCA that an Order being a smaller version of CARO 2003, applicable for the financial year 2014-15, may be notified soon under section 143(11) of the Companies Act, 2013. However, at this juncture, to bring more clarity, this Announcement is released in consultation with the Ministry. 

The Companies Act, 1956 has ceased to have effect from 01st April, 2014. As a corollary, the Companies (Auditor’s Report) Order, 2003 issued under section 227(4A) of the said Act also ceases to have effect from the said date. 

Section 143(11) of the Companies Act, 2013 which came into force from 01st April, 2014 provides that “the Central Government may, in consultation with the National Financial Reporting Authority, by general or special order, direct, in respect of such class or description of companies, as may be specified in the order, that the auditor’s report shall also include a statement on such matters as may be specified therein.” 

Accordingly, it may be noted that as when an Order is notified by the Central Government under section 143(11) of the Companies Act, 2013, the members would be required to report thereon as a part of their statutory audit reports. 

Until the aforesaid Order is issued, no additional reporting under section 143(11) of the Companies Act, 2013 is required by the Auditors for the financial year 2014-15.

Members are advised to keep a watch on the MCA site(www.mca.gov.in) as well as the ICAI site (www.icai.org)for further announcements in this regard.

~Chairman, Auditing & Assurance Standards Board

30 March 2015

Incomes, which are deemed to accrue or arise in India - CBDT Clarification

Incomes, which are deemed to accrue or arise in India - CBDT Clarification
AS per Section 9(1)(i) of the Income Tax Act, the following incomes shall be deemed to accrue or arise in India:-
all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India .
The Finance Act, 2012 inserted Explanation 5 to clause (i) of sub-section (1) of section 9.
This explanation reads as under:-
Explanation 5: For the removal of doubts, it is hereby clarified that an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India, if the share or interest derives, directly or indirectly, its value substantially from the assets located in India.
It seems several doubts were raised about this new explanation.
Whether:
1. the purpose of introduction of Explanation 5 was to clarify the legislative intent regarding the taxation of income accruing or arising through transfer of a capital asset situate in India.
2. the Explanation applies to the transactions not resulting in any transfer, directly or indirectly of assets situated in India.
CBDT Clarifies:
1. the amendment of section 9(1)(i) was to reiterate the legislative intent in respect of taxability of gains having economic nexus with India irrespective of the mode of realisation of such gains.
2. Thus, the amendment sought to clarify the source rule of taxation in respect of income arising from indirect transfer of assets situated in India as explicitly mentioned in the Explanatory Memorandum.
3. Viewed in this context, Explanation 5 would be applicable in relation to deeming any income arising outside India from any transaction in respect of any share or interest in a foreign company or entity, which has the effect of transferring, directly or indirectly, the underlying assets located in India, as income accruing or arising in India.
4. Declaration of dividend by such a foreign company outside India does not have the effect of transfer of any underlying assets located in India.
Board emphatically states that the dividends declared and paid by a foreign company outside India in respect of shares which derive their value substantially from assets situated in India would not be deemed to be income accruing or arising in India by virtue of the provisions of Explanation 5 to section 9 (1) (i) of the Act.
Though the amendment was to retrospectively nullify the Supreme Court judgement in the Vodafone case, many feared that it may affect several others in a different way, where dividends will get taxed.
Board has now clarified the issue.

28 March 2015

LIST OF YEAR END STATUTORY OBLIGATIONS

LIST OF YEAR END STATUTORY OBLIGATIONS
~ by Rajesh

LAST DATE - 31-3-2015 (Tuesday)

INCOME TAX

1.Pay remaining Advance Tax for AY 2015-16.

2.File  Income  Tax Return for AY  2014-15 without penalty of Rs. 5,000/-.

3.File  Income  Tax Return for AY  2013-14 with  penalty of Rs. 5,000/-.   

4.File  Wealth  Tax Return of  for AY  2013-14 & 2014-15.

5.Make investments in PPF, LIC etc (Sec 80C), pay Mediclaim Premium (80D) etc.

6.Banks to file Return of Interest upto Rs.10,000 without TDS for Mar 2015 quarter in Form No. 26QAA.

SERVICE TAX/ EXCISE

7.Pay Service Tax/Excise Duty for Month/Qtr Mar 2015.

COMPANIES ACT, 2013

8.Company to repay Deposits from Members & Relatives of Directors etc. taken before 1-4-14. Fine of 1-10 cr for Co & 25 lac - 2 cr for Officers in Default &/ jail upto 7 years
9.Company to reduce number of Directors to 15. Beyond 15 Directors, Special Resolution is required. Sec (149(1)).

10.Directors to reduce Number of Directorships to 10 in Public Cos & 20 in all cos u/s 165. Minimum Fine 5,000. Maximum Fine 25,000 per day from 2nd day of default.

11.Listed Cos & other Public Cos with Paid up Share capital of 100cr or more or Turnover of 300cr or more to have at least 1 Woman Director.

12.Audit Committee of a company existing before 1-4-2014 to be reconstituted by having minimum 3 directors, with independent directors forming a majority. Sec 177(3).

13.Listed Public Company to have at least one-third of the total number of directors as Independent Directors.

14.Auditor NOT to provide prescribed Non audit services like internal audit, accounting & book keeping etc. beyond 31st March, 2015. (Sec 144). Fine of 25000 to 5 lac on Auditor besides on Co & Officers in Default.

15.Large companies (Net worth of 500 cr or more or Turnover of 1000 cr or more or Net Profit of 500 cr or more during any financial year) to spend at least 2% of  Average Net Profits during 3 immediately preceding financial years in CSR activities

16.File e-form CRA-2 (Notice of Appointment of Cost Auditor) without Penalty/Late Fee. MCA Circular 2/2015 of 11-2-15.

CAs

17.CAs comply with CPE hours requirement for Calendar Year 2014.

GHMC

18.Pay Property Tax for 2014-15.

Note : Above list has been compiled merely to assist you in meeting your year end statutory responsibilities. Please check for any extensions, exclusions etc. While we have taken utmost care and caution in compiling it, you are requested to check the correctness etc of the same from independent sources. The sender, updation team  and no other person can be held responsible for any inadvertent errors, mistakes or omissions, if any.

25 March 2015

Foreign Tax Credit

Big victory for Wipro, Karnataka HC grants Foreign Tax Credit to tax holiday entities
IT major Wipro has won a legal victory with the Karnataka High Court allowing it to save a significant amount in taxes from its overseas operations.
The judgment is likely to have an impact on Indian companies that have overseas operations.
US taxes
In a ruling on Thursday, the High Court said Wipro can take credit for taxes it paid in the US out of revenues it earned from its operations there. Earlier, Wipro was denied tax credit since the Indian operations came under the tax holiday ambit.
The issue relates to Wipro's operations in the US, and the taxes it has paid — both at the state and Federal levels, which comes under the ambit of foreign tax credits. According to Amit Maheshwari, Partner, Ashok Maheshwary & Associates, Wipro did not get this tax credit and appealed to the Karnataka High Court, since it would amount to double taxation. Wipro also enjoyed tax holiday status in India at the time.
While the income under consideration could not be ascertained, Wipro had filed the income for the assessment year 2007-08. Further, it disputed the total income computed and the total tax computed. When contacted, Wipro officials did not comment as they have not yet received the formal order. Industry watchers believe this is an important development. According to Maheshwari, this is a significant judgment when it comes to the principle of foreign tax credits and sets a precedent.
Finance Bill,2015
Section 295 is amended to provide for the power to the Board to make rules for the purpose of granting relief for deduction of  foreign taxes paid in other countries.
This amendment is effective from 1st June, 2015

Presentation on Anti Black Money Bill,2015


The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, popularly called as Anti-black money bill, was introduced in the Lok Sabha on 20 March, 2015.The Bill provides for flat rate of tax at 30% on the value of undisclosed foreign income or assets along with a penalty of 300% on the amount of tax so computed. In addition the bill also provides for penalty of Rs. 10 lakh for non-disclosure of foreign asset or income in return or failure to furnish return under income-tax Act.
It further provides for prosecution of up to 10 years in case of wilful attempt to evade tax on foreign income or assets held outside India. Any person abettingor inducing another person to make and deliver false return, account, statement or declaration shall be prosecuted with rigorous imprisonment of 6 months to 7 years.
The Bill proposes for one-time opportunity to taxpayers to voluntarily disclose the undisclosed foreign income or assets. Any person who opts for this opportunity shall be liable to pay reduced penalty of 100% of tax and he would also get immunity from the prosecution.

Duplicate "C" Form Allowed

·         2015-VIL-77-MAD
·         M/s SREE KUMAR ENGINEERING WORKS Vs THE ASSISTANT COMMISSIONER (CT)

·         Central Sales Tax Act, 1957 – Loss of original 'C' Form by the department – Acceptance of the duplicate copy of 'C' Form – Insistence of Declaration by means of indemnity bond – HELD - From a reading of Rule 10(2) of the Central Sales Tax (Tamil Nadu) Rules, it is clear that the petitioner is entitled to file Form of Declaration / Certificate relating to the year at any time before the final assessment of the accounts of that year. In this case, the petitioner has filed 'C' Form in original before the authority of the respondent and an endorsement has also been made by the concerned officer. The contention of the respondent relying upon Rule 12(2), by requiring the petitioner to produce the indemnity bond, cannot be accepted, as the same would be applicable only in case the petitioner had lost the original 'C' Form. The respondent in this case shall accept the duplicate copy of the 'C' Form already filed before them by the petitioner. When the said document filed by the petitioner before the authority had been misplaced by the Department, insisting of Declaration by means of indemnity bond, is not correct and there is no duty cast upon the petitioner to file the indemnity bond, when the petitioner has not lost the original of the same and when the petitioner has also not requested by stating that they have misplaced the original document - When the authority has misplaced the original of the document for whatever be the reason, there is no hard and fast rule to deny the request of the petitioner for accepting the duplicate copy of the document, which is available with the petitioner - Impugned orders are set aside and the matters are remitted back

Guidelines issued by the Hon’ble Gujarat High Court in the case of Sahkari Khand Udyog Mandal Ltd vs. ACIT (Gujarat High Court).

Guidelines issued by the Hon’ble Gujarat High Court in the case of Sahkari Khand Udyog Mandal Ltd vs. ACIT (Gujarat High Court). S. 147: Strict guidelines laid down to streamline procedure for reopening of assessments There are four important stages once the AO issues notice for reopening of the assessment. Such stages are: (i) the assessee if he so wishes, may demand the reasons recorded by the AO after filing return in response to notice u/s 148 of the Act, (ii) the AO supplying such reasons to the assessee, (iii) the assessee raising objections to the notice for reopening and (iiii) the AO disposing of the objections raised by the assessee. With a view to streamlining this procedure, and to ensure, as far as possible, the AO is not faced with the unenviable task of completing the assessment proceedings in a few days left before the same became time barred, we would like to give certain directions of general implication which, we would expect, are followed by all concerned. While doing so, we are conscious that these stages are provided by the Supreme Court in GKN Driveshafts (India) Ltd 259 ITR 19 and we would be giving directions only to the extent the said judgment already does not provide for. We have noticed that considerably long time is consumed sometimes by the assessee demanding the reasons recorded by the Assessing Officer and sometimes the AO complying with such a request of the assessee. It is an accepted proposition that the reasons recorded by the AO are not confidential and the assessee whose assessment is being reopened has a right to know such reasons. We therefore thought that these two stages can be substantially eliminated by giving suitable directions. The further stage is of the assessee raising objections which often times is done after much delay and the last stage comes where the AO deals with such objections. This is yet another problem area where unduly long time is consumed by the AO. Under the circumstances, following directions are issued. (1) Once the AO serves to an assessee a notice of reopening of assessment u/s 148 of the Income-tax Act, 1961, and within the time permitted in such notice, the assessee files his return of income in response to such notice, the AO shall supply the reasons recorded by him for issuing such notice within 30 days of the filing of the return by the assessee without waiting for the assessee to demand such reasons. (2) Once the assessee receives such reasons, he would be expected to raise his objections, if he so desires, within 60 days of receipt of such reasons. (3) If objections are received by the AO from the assessee within the time permitted hereinabove, the AO would dispose of the objections, as far as possible, within four months of date of receipt of the objections filed by the assessee. (4) This is being done in order to ensure that sufficient time is available with the AO to frame the assessment after carrying out proper scrutiny. The requirement and the time-frame for supplying the reasons without being demanded by the assessee would be applicable only if the assessee files his return of income within the period permitted in the notice for reopening. Likewise the time frame for the AO to dispose of the objections would apply only if the assessee raises objections within the time provided hereinabove. This, however, would not mean that if in either case, the assessee misses the time limit, the procedure provided by the Supreme Court in GKN Driveshafts (India) Ltd would not apply. It only means that the time frame provided hereinabove would not apply in such cases. (5) In the communication supplying the reasons recorded by the AO, he shall intimate to the assessee that he is expected to raise the objections within 60 days of receipt of the reasons and shall reproduce the directions contained in sub-para 1 to 4 hereinabove giving reference to this judgment of the High Court. (6) The Chief Commissioner of Income Tax and Cadre Controlling Authority of the Gujarat State, shall issue a circular to all AOs for scrupulously carrying out the directions contained in this judgment

20 March 2015

notifications dated 19th March 2015 and amended 3 rules

MCA has issued notifications dated 19th March 2015 and amended 3 rules:

1. Companies (Meeting of Board & its Powers) Amendment Rules, 2015 : Chapter 12 : 
Removed requirement of discussion of following items only by way of Resolution at the Board Meeting :
1. to take note of appointment(s) or removal(s) of one level below the Key Management Personnel, 
2. to take note of the disclosure of director’s interest and shareholding,
3. to buy, sell investments held by the company (other than trade investments), constituting five percent or more of the paid up share capital and free reserves of the investee company, 
4. to invite or accept or renew public deposits and related matters ,
5. to review or change the terms and conditions of public deposit, 
6. to approve quarterly, half yearly and annual financial statements or financial results as the case may be.
View Notification at http://www.mca.gov.in/Ministry/pdf/Chapter12_Rules_19032015.pdf

2. Companies (Management and Administration Rules) Amendment Rules, 2015 : Chapter 7:
'Voting through electronic means'- substituted Rule 20 by defining few terms like cut off date, electronic voting system, agency etc. and provided clarity on evoting at General meeting venue etc.
View Notification at
http://www.mca.gov.in/Ministry/pdf/Chapter7_Rules_19032015.pdf

3. Companies (Share Capital and Debentures) Amendment Rules, 2015: Chapter 4 :
It permits 45 days to listed companies to issue duplicate share certificates, authorisation to any other person for signing share certificate even if the Company has company secretary, changes in certain time periods, etc.
View Notification at
http://www.mca.gov.in/Ministry/pdf/Chapter4_Rules_19032015.pdf

17 March 2015

Legal phrases

Useful for CAs... Various Legal Phrases Used in Law:-
1 Anything which you cannot do directly that you cannot do directly
2 Deeming fiction cannot be stretched beyonyd the purpose for which it is created
3 The words used in Law are not used for Nothing
4 To invoke Provision : To make use of particular provision
5 Ipso Facto: By this fact alone or because of this matter alone
6 'MAY' may be treated as 'SHALL' but 'SHALL' shall not be treated as 'MAY'
7 Tenable: Acceptable in law
8 Redundant Provision : Out of Force or Outdated Provision
9 Quasi : Almost Similar to
10 Quasi Criminal: Almost equal to criminal
11 Jurisprudence: Law relating to particular matter
12 Mensrea: Guilty Mind
13 Ibid: As printed earlier
14 Suo Moto: On its own
15 Prima Facie: On its face
16 Non est: What is not in existence / Non existing thing
17 Call in question: To challenge
18 De Nova: Completely New
19 Sine quo non: Most essential thing
20 Purposes of this Act: Proceeding must be pending
21 Reason to believe Vs Reason to suspect: Refer various caselaws
22 Derived from & attributable to: Derived from refers to direct connection with a
     particular matter whereas attributable to refers to an indirect connection
23 Mutatis Mutandis: After making necessary changes as may be required
24 Discovery Vs Detection: Discovery is made by the assessee whereas detection is
    done by the Assessing Officer
25 To Quash: The process of cancelling the proceeding of Assessing Authorities by
    Judicial Authorities
26 So far as may be: To the extent possible
27 Travisity of Justice : A ridiculous interpretation of a very serious statement, making a
     mockery of a very serious matter
28 To impugne : To challenge
29 Save as otherwise provided : Except to the extent as oppositely provided
30 If one section is overriding the other section : Use Words "Not withstanding
    anything contained in ……"
31 If one section is superceded by the other section : Use words "Save as otherwise
    provided……….."
32 Other provisions apply in General way: Use words "Without prejudice to the
    provisions …………….."
33 Reckoned : Recognised, Counted, Calculated
34 Doctrine of Merger: When an order passed by the lower authority is superceded by
    the higher authority
35 Doctrine : Principle or saying in general acceptance
36 In Pari Material Pavi Causa: Same material, same content {Eg. Sec. 24B of IT Act,
    1922 is Pari Material with Sec. 159 of IT Act, 1961. In such a case a judgement given
    in respect of section 24B would be valid in respect of sec. 159}
37 Per se : By itself
38 Cy Press : As near as possible
39 Tax is always charged, Interest is levied and Penalty is imposed
40 Deductions are admissible, Relief is granted.
41 Return is always furnished, Assessment order is made / passed.
42 De hors : Independent of
43 Order of Injunction of HC : Stay order.
44 Several Liability means separate liability. [Refer sections 168(3), 171(7), 179(1)
    178(5) & 188A.]
45 Legatee is a person for whose benefit there exists an asset of a deceased
46 Locus Standi : Directly involved in relation or deal.
47 Garnishee Proceeding : The proceeding which gives Govt. the right to attach (i.e.
forcibly take over) any asset from a person who is defaulter.
48 Vitiate Proceedings : To make proceedings null, void.
49 Inter alia : Among other things.
50 Audit Altream partem : It is a principle of natural justice. According to this principle,
    which is the principle in every civilized jurisprudence, a person against whom any
    action is sought to be taken or a person whose rights or interests are to be affected
    should be given a reasonable opportunity to defend himself.
51 Resjudicata : [Once the decision of HC comes then on that same point again appeal
    cannot be made.] The issue of Law which has been already decided shall not be
    pleaded for review.
52 In Limine : At the outset (i.e. at the beginning)
53 Suspended animus : An order under Appeal is not subject to any action by any
     authority till the order disposing of the appeal is available.
54 Subjudice : Under an appeal to a court, decision awaited.
55 Adjudicate : Consider for judgement. A court adjudicates means gives its decision on
    a particular matter.
56 Akin : Similar to; of the same type
    Coterminus : Similar to; of the same type
57 Impediment : Obstacles or Hindrance.
58 Sine Di: For indefinite period.
59 To deduce : Logically come to the conclusion.
60 Purview : Scope
61 Bounty : Additional Advantage
62 Ad Hoc : Without any particular rate, percentage, proportion.
63 Ad infinitum : Without any Time limit.
64 Ad interim : In the Mean Time
65 Bonafide : Genuine
66 Surmises : Presumptions, own assumptions
67 Defacto : Infact
68 Defjure : In Law, irrespective of whatever the facts.
69 Ejusdem Generis : Of the same kind
70 Ex-gratia : As a matter of grace ir favour
71 Ignorantia Legis known excusat : Ignorance of law is not excused
72 Mesne Profit : Profit earned by somebody by wrongful possession of property.
73 Modus Operandi : Mode of Operation / Manner of working
74 Nexus : Close connection link.
75 Onus probandi : Onus of proof / The burden of Proof.
76 Non obnstante clause : That provision has superceding effect on any other provision
77 Raison D'etre : Reason or justification for existence.
78 Ratio Decidendi : Reason for deciding / Grounds for decision
79 Suijuris : of his own right.
80 Assessee engaged in ……………. : The activity should have started
81 Option Vs Discretion : Whenever choices is available to the assessee in respect of
any matter. Law uses the word at his option - for eg:
1. Sec 11(11) - Explanation to Sec. 11 (1)
2. Sec. 23(4)
82 amicus curiae : Friend of court; one who voluntarily or on invitation of the court, and
    not on instructions of any party, helps the court in any judicial proceedings
83 audi alteram : hear the other side. Both sides should be heard before a decision is
    arrived at
84 caveat emptor : let the purchaser beware. A ---------- implying that the buyer must
be cautious, as the risk is his and not that of the seller.
85 cestui que trust : a beneficiary under a trust, the person for whose benefit the trust is
    created
86 ex officio : by virtue of an office.
87 ex parte : exkpression used to signify something done or said by one person not in the
    presence of his opponent.
88 fait accompli : An accomplished act.
89 obiter diccum : an opinion of law not necessary to the decision. An exspression of
opinion (formed) by a judge on a question immaterial to the ratio decidendi, and
unnecessary for the decision of the particular case. It is no way binding on any court,
but may receive attention as being an opinion of the high authority.
90 pendente lite : during litigation.
91 per incuriam : through carelessness, through inadvertence. A decision of the court is
not binding precedent if given peer incuriam, that is, without the court's attention having
been drawn to the relevant authorities, or statutes.
92 pro tanto : to that extent, for so much, for as much as may be.
93 quid pro quo : the giving of one thing of value for another thing of value; one for the
other; thing given as compensation.
94 Ratio Decidendi : Reason for deciding / Grounds for decision
95 res integra : an untouched matter; a point without a precedent; a case of novel
impression.
96 rule njsi : a rule to show cause why a party should not do a certain act, or why the
object of the rule should not be enforced.
97 in personam : against the person; an act or preceeding done or directed with
reference to no specific person or with reference to all whom it might concern.
98 in rem : an act / proceeding done or directed with reference to no specific person or
with refernce to all whom it might concern.
99 inter vivos : between living persons.
100 intestate : a person is deemed to die intestate in respect of property of which he or she
has not made a testamentary disposition ("will") capable of taking effect.
101 intra vires : within the powers; within the authority given by law.
102 ipse dixit : he himself said it; there is no other authority.
103 ipso jure : by the law itself ; by the mere operation of law.
104 lis pendens : a pending suit.
105 rule absolute : when, having heard counsels, court directs the performance of that act
forthwith.
106 sine die : without delay.
107 stare decisis : to stand by things decided; to abide by precedents where the same
points come again in litigation.
108 status quo : existing condition.
109 sub judice : before a judge or court; pending decision of a competent court.
110 ultra vires : beyond one's powers...

13 March 2015

PF Administrative Charged Reduced

The Government of India issues notification on reducing the administrative charges under the Employees' Provident Funds Scheme, 1952
Tax Knowledge & Solution




The Ministry of Labour and Employment, Government of India, has issued a notification to revise the rate of administrative charges under the Employees' Provident Funds Scheme, 1952. The changes will be effective from 1 January 2015.
EPFO (Employees Provident Fund Organisation) has cut the administrative fee it charges from nearly eight lakh employers coming under the ambit of its social security schemes, effective from January 1st 2015.
The administrative charges have been reduced to 0.85% of basic wage from 1.10% as per a Labour Ministry Notification.
The decision in this regard was taken by the EPFO';s apex decision making body, the Central Board of Trustees (CBT), in February last year in its meeting.
According to the notification, the minimum monthly administrative charges will be Rs 75 for every non-functional firm having no (PF) contributing member and Rs 500 for any other establishments.
As many as 7.96 lakh firms were covered under the various social security schemes run by the EPFO as on March 31, 2014.

MCA Clarification on Loans and Advances to Employees

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
NEW DELHI
GENERAL CIRCULAR NO
04/2015, Dated: March 10, 2015
To
All Regional Directors,
All Registrar of Companies,
All Stakeholders.
Subject: Clarification with regard to section 185 and 186 of the Companies Act, 2013 - loans and advances to employees-reg.
This Ministry has received a number of references seeking clarification on the applicability of provisions of section 186 of the Companies Act, 2013 relating to grant of loans and advances by Companies to their employees.
2. The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other than the managing or whole time directors (which is governed by section 185) are not governed by the requirements of section 186 of the Companies Act, 2013. This clarification will, however, be applicable if such loans/advances to employees are in accordance with the conditions of service applicable to employees and are also in accordance with the remuneration policy, in cases where such policy is required to be formulated.
3. This issues with the approval of the Secretary.
[F.No. 1/32/2013-CL.V]
(KMS Narayanan)
Assistant Director


12 March 2015

Amnesty Scheme for retrospective Restoration of ICAI Membership

FYI-General Amnesty Scheme for retrospective Restoration of Membership
With a view to remove the hardship of such members whose name stood removed  due to non-payment of membership fee, the Council has decided that such members be given an opportunity under the General Amnesty Scheme as one time dispensation for retrospective restoration of name keeping membership in continuity.An ANNOUNCEMENT regarding the scheme has already been hosted on our website icai.org Accordingly, such members may apply for restoration of their name retrospectively, irrespective of the period of such removal on payment of applicable membership fee  for the intervening year(s), along with Form ‘9’ and the restoration fee of Rs. 1200/-. The said scheme shall be in force till 31st March 2015.The fees can also be remitted through on-line payment (visit www.icai.org) or through cheque/demand draft drawn in favour of ‘The Secretary, The Institute of Chartered Accountants of India’ payable at Mumbai  and Form ‘9’ can be downloaded from the link http://220.227.161.86/8593form%209_final.pdfFor further assistance may please call us on 33671400/500.Please avail the benefits of this General Amnesty Scheme and restore your membership retrospectively.

01 March 2015

GNL-4

MCA introduces Form GNL-4 for filing addendum for rectification of defects or incompleteness

MCA vide notification dated 24th February, 2015 has made amendment in Companies (Registration Offices and Fees) Rules, 2014 through Companies (Registration Offices and Fees) Amendment Rules, 2015 and the text of the said amendment is reproduced as below:-
In the Companies (Registration Offices and Fees) Rules, 2014,-
In rule 10, after sub-rule (6), the following sub-rule shall be inserted, namely:-
"7. Any further information or documents called for, in respect of application or e- form or document filed electronically with the Ministry of Corporate Affairs shall be furnished in form No. GNL4 as an addendum"

Simplification of Registration Procedures in Service Tax- S.Tax Registration within 2 Days:-

Central Board of Excise and Customs specifies the following documentation, time limits and procedure with respect to filing of registration applications for single premises, which shall come into effect from 1-3-2015. Applicants seeking registration for a single premises in service tax shall file the application online in the Automation of Central Excise and Service Tax (ACES) website  www.aces.gov.in in Form ST-1. (PAN, Email and Mobile No, are Mandatory for Registration) Once the completed application form is filed in ACES, registration would be granted online within 2 days, thus initiating trust-based registration. On grant of registration, the applicant would also be enabled to electronically pay service tax. Further, the applicant would not need a signed copy of the Registration Certificate as proof of registration. Registration Certificate downloaded from the ACES web site would be accepted as proof of registration dispensing with the need for a signed copy.  The applicant is required to submit a self attested copy of the mandatory documents by registered post/ Speed Post to the concerned Division, within 7 days of filing the Form ST-1 online, for the purposes of verification.

24 February 2015

Digital locker

Govt. Of india has introduced Digital locker in which you can keep copy of your important documents / certificate like Passport, pancard, driving license, educational certificate etc. With link of Adhar card

http://digitallocker.gov.in

Now no need to give any copy in government / bank etc.  Just give them only link of your Aadhar card. (Good Initiative)

CTT on Agricultural Products

Govt. notifies new list of agricultural commodities which aren't "taxable commodities transactions"

COMMODITIES TRANSACTION TAX (FIRST AMENDMENT) RULES, 2015 - AMENDMENT IN RULE 3

NOTIFICATION NO.13/2015 [F.NO. 142/09/2013-TPL]/SO 424(E), DATED 10-2-2015

In exercise of the powers conferred by sub-sections (1) and (2) of section 133 of the Finance Act, 2013 (17 of 2013) (herein after referred to as the Act), the Central Government hereby makes the following rules to amend the Commodities Transaction Tax Rules, 2013, namely:—

1. (l) These rules may be called the Commodities Transaction Tax (First Amendment) Rules, 2015.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Commodities Transaction Tax Rules, 2013, for rule 3, the following rule shall be substituted, namely:—

"3. Agricultural commodities.— For the purposes of clause (7) of section 116 of the Act, the agricultural commodities shall be the following, namely:—

(i)

 

Almond

(ii)

 

Barley

(iii)

 

Cardamom

(iv)

 

Castor Seed

(v)

 

Channa/Gram

(vi)

 

Copra

(vii)

 

Coriander/Dhaniya

(viii)

 

Cotton

(ix)

 

Guar Seed

(x)

 

Isabgul Seed

(xi)

 

Jeera (Cumin Seed)

(xii)

 

Kapas

(xiii)

 

Maize Feed/Maize

(xiv)

 

Pepper

(xv)

 

Potato

(xvi)

 

Rapeseed/Mustard Seed

(xvii)

 

Raw Jute

(xviii)

 

Red Chilli/Chillies

(xix)

 

Soya bean/seed

(xx)

 

Soymeal

(xxi)

 

Turmeric

(xxii)

 

Wheat

(xxiii)

 

Aniseed

(xxiv)

 

Arhar Chuni

(xxv)

 

Bajra

(xxvi)

 

Betelnuts

(xxvii)

 

Celeryseed

(xxviii)

 

Chara or Berseem (Including Chara seed or Berseem seed)

(xxix)

 

Cinnamon

(xxx)

 

Cloves

(xxxi)

 

Cotton pods

(xxxii)

 

Cotton seed

(xxxiii)

 

Ginger

(xxxiv)

 

Gram Dal

(xxxv)

 

Gram Husk (Gram Chilka)

(xxxvi)

 

Groundnut

(xxxvii)

 

Jowar

(xxxviii)

 

Kulthi

(xxxix)

 

Lakh (Khesari)

(xl)

 

Linseed

(xli)

 

Masur

(xlii)

 

Methi

(xliii)

 

Moth

(xliv)

 

Mung

(xlv)

 

Mung Chuni

(xlvi)

 

Mung Dal

(xlvii)

 

Nutmeg

(xlviii)

 

Onion

(xlix)

 

Peas

(l)

 

Ragi

(li)

 

Rice Bran

(lii)

 

Rice or Paddy

(liii)

 

Safflower

(liv)

 

Seedlac

(lv)

 

Sesamum (Til or Jiljilli)

(lvi)

 

Small Millets (KodanKulti, Kodra, Korra, Vargu, Sawan, Rala, Kakun, Samai, Vari and Banti)

(lvii)

 

Sunflower seed

(lviii)

 

Tur (Arhar)

(lix)

 

Tur Dal (Arhar dal)

(lx)

 

Urad (Mash)

(lxi)

 

Urad Dal.".