Skip to main content

Posts

Showing posts from September, 2009

ST Application - Required Documents

Documents required to be submitted along with the ST-1 Application for the purpose of registrationTrade Notice No. 15/ST/2009, dated 22-9-20091. Attention is invited to the documents required to be submitted alongwith the ST-1 application for the purposeof registration of service tax assessees. The following documents will be accepted for the proof of address and for establishing identity constitution of company.2. The following documents are required to be submitted in case of Single/Centralised Registration:a.Copy of PAN card of the assessee,b.Residential addresses of proprietor/partners,c.Memorandum of Association/Partnership deed,d.Power of Attorney in respect of the Authorised Signatory, his name & Address details.e.Proof of address of the premises for which single/centralised registration is being taken (Col 6 of ST-1). A copy of telephone bill, electricity bill, rent agreement in the name of the proprietor/ partnership firm (in case of proprietary/partnership concern) or do…

Alert on Gift-in-kind- wef 01/10/09

Wednesday, September 30, 2009Ministry of Finance
GIFTS OF PROPERTY (GIFTS-IN-KIND) AVOVE VALUE OF RS.50,000 BECOME TAXABLE FROM 1ST OCTOBER 2009 16:14 IST The Income Tax Act 1961 (the Act) has been amended with effect from 1st October 2009 to provide that any gift-in-kind, being an immovable property or any other property, the value of which exceeds Rs.50,000 (rupees fifty thousand), will become taxable in the hands of the donee, being an individual or a Hindu Undivided Family (HUF), as income from other sources under clause (vii) of sub-section 2 of section 56 of the Act. Therefore, any such person who receives a gift of any such property on or after 1st October 2009 must pay the income tax due on the value of the gift and disclose the taxable value of such property in the return of income for assessment year 2010-11 and subsequent years.

The following types of gifts will, however, not be subject to tax, i.e. gifts (a) from a person who is a relative; (b) on the occasion of marriage of…

List of Nominations received for ICAI Elections

29th September, 2009 Nominations received till the last date and time i.e. 24th September, 2009 (6.00 P.M.) Details of region-wise persons whose nominations have been received, within the appointed time and date i.e. 6:00 p.m. on 24th September, 2009 at the designated location, for contesting the Elections to the Twenty First Council and Twentieth Regional Councils scheduled to be held in December, 2009. I. TWENTY FIRST COUNCIL CONSTITUENCY NO. I - WESTERN INDIA REGIONAL CONSTITUENCY Name Membership No. Place CA. Adukia Rajkumar Satyanarayan 34769 Mumbai CA. Agarwal Brijmohan 33254 Mumbai CA. Arun Anandagiri 116887 Pune CA. Bansal Krishan Lal 49311 Pune CA. Bheda Atul Chunilal 38108 Mumbai CA. Buch Durgesh Vamanray 37899 Ahmedabad CA. Chhajed Prafulla Premsukh 47690 Mumbai CA. Deshpande Chintamani Vasudeo 43299 Pune CA. Doshi Bhavana Gautam (Ms.) 30144 Mumbai CA. Ghia Tarun Jamnadas 35489 Mumbai CA. Gokhale Jayant Purushottam 33767 Mumbai CA. Jain Pankaj Inderchand 48850 Mumbai CA. Jaju Shrikant Lalchan…

Time to Roll Back MAT- by CA. T.N.Manoharan

Time to roll back MAT As the Direct Taxes Code has done away with various incentives, there is no case for continuing with MAT in any form whatsoever.
— Kamal Narang

In its new form, MAT will be detrimental to capital-intensive industries. T. N. ManoharanThere is a paradigm shift in the concept of Minimum Alternative Tax (MAT) as envisaged under the Direct Taxes Code (DTC). As against the 'book profit' base used in the present income-tax law to levy MAT, 'gross value of assets' is proposed to be considered as the basis in the DTC. The logic, as explained in various forums so far on behalf of the Government, is that corporate entities which have scarce economic resources at their disposal should exploit them efficiently so as to make adequate profits, failing which they must end up paying 2 per cent of the gross value of the assets as MAT. Price on inefficiency Only if the tax calculated on the profits made is more than the MAT can a company can avoid the tax, and not ot…

New initiative of Govt of India

Five bureaucrats from IRS framed the New Direct Tax Code

THE New Direct Tax Code which was drafted in secrecy for over five years, was a product of mainly five North Block bureaucrats from Indian Revenue Service (IRS).  Whereas Arbind Modi, a 1981 batch IRS and currently joint secretary in Tax Policy Legislation (TPL) division of the revenue department has already been known as an "Architect of the Code", there are four others who too were closely engaged in preparing the document which is likely to replace the I-T Act of 1961, provided Parliament gives its nod. 
In fact, Central Board of Direct Taxes (CBDT), the apex body on direct tax matters, was not involved in the preparation of the code and some former chairmen of the Board were not even aware of the content of the document before it came out in public domain. 
Ms Anita Kapur who is now shifted to foreign tax division (FTD) of the revenue department, shared a major part of the workload of drafting of the code with Mr Modi. Mr Modi who is now engaged with finmin's effort to …

MERGER OF FIRMS – SENIORITY/ FIRM NAME ISSUES

ANNOUNCEMENT To give boost to the capacity building of the Chartered Accountants firms, the Council in its 250th meeting held in April 2005 had approved a scheme envisaging merger of two or more firms of Chartered Accountants into one firm so that larger firms could come into existence. The Council in its 280th meeting held in August, 2008 while considering issues relating to seniority of firm and name of the merged firm as a consequence to the merger of firms restated that as and when two or more firms of Chartered Accountants merge, the seniority of the oldest firm amongst the merging firms will be given to the merged firm and the merging firms will have flexibility to choose a name of the merged firm provided the provisions of the Regulation 190 are duly met and the seniority will be reflected as deemed seniority in the firm constitution certificate. While considering a specific question as to whether such a decision will also apply to previous merger cases (i.e. prior to August 2008)…

ROC Empanelment

Announcement for panel for outsourcing of work of Technical Scrutiny of Balance Sheets - (23-09-2009)ANNOUNCEMENTSub: Announcement for panel for outsourcing of work of Technical Scrutiny of Balance SheetsThe Institute has received an Office Memorandum (OM) from the Ministry of Corporate Affairs. As per the OM, the Registrar of Companies will prepare a panel of professionals for Technical Scrutiny of Balance Sheets filled by the Companies for the State concerned. The Scheme of outsourcing the work will be for the financial year 2009-10.The details of the Scheme specifying the eligibility criteria, mode of application, Procedure to be followed by the ROC for outsourcing of work, is provided in the Office Memorandumissued by the Ministry.The Institute of Chartered Accountants of India while appreciating the initiative taken by the Ministry for ensuring good corporate governance and transparency for safeguarding the interest of the shareholders, creditors and the economy as a whole wishes…

ITax - E-return - Amendment

AMENDMENT IN ELECTRONIC FURNISHING OF RETURN OF INCOME SCHEME, 2007 NOTIFICATION NO. 70/2009, DATED 22-9-2009 In exercise of the powers conferred by sub-section (1B) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), vide S.O. 1281(E) dated the 27th July, 2007, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section( ii), with effect from 27th July, 2007 (i.e. the date on which the Scheme came into force). 2. In the said notification for para 5, the following para shall be substituted, namely :- 5. Qualifications of an e-Return Intermediary. (1) An e-Return Intermediary shall have the following qualifications, namely:- (a) it must be a public sector company as defined in clause (36A) of section 2 of the Act or any other company in which public are substantially …

Permission for pursuing a course along articleship

Permission for pursuing a course along articleship [Regulations 65 & 78, Form 112] - (18-09-2009)Attention of the students /articled assistants is drawn to Regulation 65 of the Chartered Accountants Regulations, 1988, reproduced below: -

"Without the previous permission of the Council, obtained on application made in the approved form, no articled assistant shall, during the period of his service as an articled assistant, take any other course of study or training, whether academic or professional, or engage in any business or occupation."

Of late, it has been noted with concern that the students / articled assistants have not been adhering to the requirements of the aforesaid Regulations while pursuing another course alongwith articleship and have been declaring such a fact while applying for enrolment as a Member of the Institute and seeking condonation for Breach of Regulation 65 /78 for having not taken the permission at the appropriate time.

The Executive Committee wh…