30 April 2010

Amendments to Finance Bill,2010 [1 Attachment]

[Attachment(s) from Ashwin Nagar included below]

FM's Oopening Speech at Consideration Stage of Finance Bill,2010- see attachment
Finance Bill ,2010 passed in Lok Sabha On 29.04.2010.Few New Tax relief has been proposed during the discussion and same has been incorporated in the Bill while passing by the Lok Sabha. Amendments are given below.


AMENDMENTS TO FINANCE BILL, 2010


Sl. No.

Clause No.
1.
Page 5, line 46, Omit 'and";'

2.
Page, after line 46, insert –
'(ab) on or after the 1st day of April, 2010, where the specified business is in the nature of building and operating a new hospital with at least one hundred beds of patients;
(ac) on or after the 1st day of April, 2010, where the specified business is in the nature of developing and building a housing . project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and which is notified by the Board in this behalf in accordance with guidelines as may be prescribed; and";
10
10
3.
Page 5, line 48,—
for "and clause (aa)"
substitute "clause (aa), clause (ab) and clause (ac)'"

10
4.
Page 5, after line 52, insert
'(v) building and operating, anywhere in India, a new hospital with at least one hundred beds for patients;
(vi) developing and building a housing project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed;'.

10
5.
Page 6, line 47,—
after "to a limited liability partnership"
insert "or any transfer of a share or shares held in the company by a shareholder".

18
6.
Page 7, for lines 24 and 25, substitute
"asset or share or shares not charged under section 45 by virtue of conditions laid down in the said proviso shall be deemed to be the profits and gains chargeable to tax of the successor limited liability partnership or the shareholder of the predecessor company, as the case may be, for".

19
7.
Page 7, after Iine 30, insert
'(aa) after sub-section (2A A), the following sub-section shall be inserted with effect from the 1st day of April, 2011, namely:—
"(2AAA) Where the capital asset being rights of a partner referred to in section 42 of the Limited Liability PartnershipAct, 2008 (6 of 2009) became the property of the assessee on conversion as referred to in clause (xiiib) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share or shares in the company immediately before its conversion.";'
20
8.
Page 14, after line 7, insert
Amendment of the Second Schedule.
'62A. In the Second Schedule to the Customs Tariff Act, against heading No. 16, in column (3), for the entry "Rs. 2500 per tonne", the entry "Rs. 10000 per tone" shall be substituted.'.
62A (New)
9.
Page 17, after line 49, insert
'(3A) for clause (77c), the following clause shall be substituted, namely:—
'(77c) "passenger" means any person boarding an aircraft in India for performing domestic journey or international journey.';'.
75
10.
Page 39, line 9, in column (3),
after "on inputs"
insert "or input services".
The Eighth Schedule

Pranab hands out tax concessions to India Inc

Opposition unhappy, says nothing for the common man.


Our Bureau

New Delhi, Apr 29

The Finance Minister, Mr Pranab Mukherjee, today made a number of amendments to the Finance Bill including raising the export duty on iron ore lumps and increasing the standard rate on raw cotton exports.

Simultaneously, he reduced the import duty on melting scrap for stainless steel, and the service tax burden on construction services and air travel. Mr Mukherjee also offered a debt relief package for coffee growers.

The main Opposition party, Bhartiya Janata Party (BJP), walked out saying that there was no relief for the common man and farmers. The Left parties too staged a walkout. The Finance Bill was later passed by the Lok Sabha.

As part of the reply to the discussions on the Finance Bill, 2010, the Finance Minister announced a debt relief package to the small growers of coffee. He also provided relief to medium and large growers by allowing re-scheduling of loans. The total financial implication for the Centre would be Rs 241.33 crore, while the benefit to coffee growers will be about Rs 362.82 crore.

Tax Deduction

On the income-tax front, Mr Mukherjee announced that new hospitals with at least 100 beds and constructed anywhere in India would now be entitled for investment-linked deduction.

Also, housing projects developed for slum redevelopment and rehabilitation under Rajiv Awas Yojana (RAY) will be eligible for investment-linked deduction for income-tax purposes.

Another relief for the housing sector came by way of reduced service tax burden on construction services.

"Several suggestions have been made by trade associations. Considering all inputs, I propose to provide tax relief to this sector by enhancing the rate of abatement from 67 per cent to 75 per cent of the gross value where such value includes value of land constructed upon," Mr Mukherjee said.

However, the real-estate industry felt that the measures for housing were a mixed bag. "Although the service tax outgo will now be calculated on 25 per cent and not 33 per cent of the value of the house, it still falls short of expectations. The industry was hoping that land value will be completely excluded from such calculation, which has not happened. Also, the abatement is lower than what the industry had sought (90 per cent)," said Mr Pratik Jain, Executive Director of KPMG.

Real-estate company Parsvnath Developers Chairman, Mr Pradeep Jain, said the Government's move to exempt service tax on constructions under JNNURM and RAY was a welcome step.

Meanwhile, on the aviation sector, the Finance Minister clarified that Rs 100 will be the maximum service tax a domestic air traveller will pay for each journey, while travel to and from the North-East will be totally exempt. Mr Mukherjee added that Rs 500 will be the maximum that an economy class international air traveller will have to pay as service tax.

The Finance Minister also announced an increase in the export duty on iron ore lumps from 10 per cent to 15 per cent. This move was hailed by the steel-makers, stating that this has been a long-standing demand of the steel industry.

"This is certainly a positive move for the steel industry as domestic availability of iron ore will increase which will help steel makers," said Mr Sushil Maroo, Director, Jindal Steel and Power Ltd.

Limited Liability Partnership

On limited liability partnership (LLP), the Finance Minister announced that transfer of shares by the shareholders of the company would be tax exempt. This move was in consequence of the decision to allow tax neutrality for conversion of a company into LLP.

"The one important and very positive change is the exemption from levy of capital gains tax in the hands of shareholders upon the conversion of a company into a limited liability partnership. Arguably, such a conversion is a tax neutral event as it is, but the clarification is a step in the right direction.

"One had hoped that the conditions which permit only small companies to convert tax neutral would have been removed," Mr Dinesh Kanabar, Deputy CEO and Chairman Tax, KPMG in India told Business Line.

Drugs cheaper

The Finance Minister also announced reduction in basic customs duty on 11 specified drugs including two anti-cancer and one for the treatment of AIDS to 5 per cent.

These drugs are also being exempted from countervailing duty by way of excise duty exemption.

Meanwhile, Fortis Healthcare Ltd welcomed the measures announced for the health care industry. "It will contribute to the creation of much needed infrastructure in the country. This is symbolic of the Government's efforts to provide the support required by the sector," the company said in a statement.


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Attachment(s) 1 of 1 File(s)

28 April 2010

CFE APPLICATION

Certified Facilitation Centres under ACES Project of the CBEC - (13-04-2010)
Chartered Accountants in practice for one year or more

Become Certified Facilitation Centre (CFC) for providing facilities to Central Excise and Service Tax assessees to file returns and other documents electronically under Automation of Central Excise and Service Tax (ACES) Project of the CBEC.


The Institute of Chartered Accountants of India (ICAI) is pleased to announce signing of Memorandum of Understanding with the Central Board of Excise and Customs, Department of Revenue, Ministry of Finance, Government of India to facilitate setting up of Certified Facilitation Centres (CFCs) under ACES Project by Chartered Accountants in practice / proprietary concerns of Chartered Accountants / firms of Chartered Accountants.

Any member/proprietor of a proprietorship firm/any partner of a partnership firm desirous of operating a CFC in his/firm's name is required to make an application to the ICAI together with the requisite information, whereupon the ICAI will issue a Certificate to operate Facilitation Centre under ACES Project of the CBEC. CBEC will issue a user name and password to the CFC on the basis of which, the CFC will be able to upload returns and other documents for Central Excise and Service Tax assessees .

The names of the CFCs along with their contact details as provided by the CFCs will be put up on the website of the ICAI and the CBEC. The eligibility criteria, fee schedule and obligations of CFCs are set out in the Memorandum of Understanding and in the FAQs on the subject.

Submit your Scanned Application Forms at : cbectech@icai.org.

Queries relating to setting up of Certified Facilitation Centers may be sent at cfcaces@icai.org.

Please click here for Memorandum of Understanding

Please click here for FAQs

Please click here for Application Form for CFC under ACES Project

IPL from a Finance perspective [1 Attachment]

About IPL, What's going on in BCCI could be of Businessman's interest, what's going on in Parliament is of Politician's interest, but what is going on in IPL as a Financial Project, is certainly of Chartered Accountants's interest.
So, please find attached a powerpoint presentation giving insights of IPL from a Finance perspective.
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Attachment(s) from Ashwin Nagar

1 of 1 File(s)

27 April 2010

New Income Tax Return Form SARAL II for Assessment Year 2010-11 [2 Attachments]

New Income Tax Return Form SARAL II for Assessment Year 2010-11.
CBDT notifies New Income Tax Return Form SARAL II (ITR 1) for Assessment Year 2010-11 for Individuals having income from Salary/Pension/Income from One House Property (Excluding loss brought forward from previous years) / Income from Other Sources (Excluding winning from Lottery and Income from Race Horses). CBDT also notifies Income Tax Return Verification Form ITR-V for Assessment Year 2010-11 for SARAL II (ITR-1) ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature.

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Attachment(s) from Ashwin Nagar

2 of 2 File(s)

25 April 2010

Implementation of Section 51A of Unlawful Activities (Prevention) Act, 1967

Implementation of Section 51A of Unlawful Activities (Prevention) Act, 1967

The provisions of the Unlawful Activities (Prevention) Act,1967 were amended in 2008, by inserting Section 51A which was notified on 31.12.2008 by the Govt. of India. Section 51A reads as under :-
"51A. For the prevention of, and for coping with terrorist activities, the Central Government shall have power to -

(a) freeze, seize or attach funds and other financial assets or economic resources held by, on behalf of or at the direction of the individuals or entities Listed in the Schedule to the Order, or any other person engaged in or suspected to be engaged in terrorism;
(b) prohibit any individual or entity from making any funds, financial assets or economic resources or related services available for the benefit of the individuals or entities Listed in the Schedule to the Order or any other person engaged in or suspected to be engaged in terrorism;
(c) prevent the entry into or the transit through India of individuals Listed in the Schedule to the Order or any person engaged in or suspected to be engaged in terrorism."

In order to implement the provisions of Sec. 51A effectively, the Ministry of Home Affairs, Govt. of India requested the Ministry of Corporate Affairs to issue an appropriate order to ICAI,ICSI and ICWAI to sensitize their members to the provisions of Section 51A of Unlawful Activities(Prevention ) Act, 1967. Accordingly the Ministry of Corporate Affairs vide its letter dated 22.03.2010 (copy enclosed) asked the ICAI to advise its members to act as per mandate of the Ministry of Home Affairs.

Accordingly, all members of ICAI are informed that as and when any member come across any such fact which is connected with the violation(s) of provision(s) of the Unlawful Activities (Prevention) Act, 1967, he must take action forthwith for the implementation of Sec 51A as per procedure laid down in the Office Memorandum dated 22/02/2010 issued by Ministry of Home Affairs, Government of India (copy of the Office Memorandum dated 22/02/10 is enclosed ).

In other words, the members of ICAI must ensure that in case any of their client match with the particulars of designated individual / entity, as per Order dated 08/07/2009,wherin the list of such designated individuals / entities have been given (copy of the said order dated 08/07/09 enclosed), they shall immediately, not later than 24 hours from the time of finding out such client, inform full particulars to the Joint Secretary (IS.I), Ministry of Home Affairs, at Fax No. 011- 23092569 and also convey over telephone on 011-23092736. The particulars apart from being sent by post should necessary be conveyed on e-mail id: isis@nic.in.

It is pertinent to mention that, besides the aforesaid, the Ministry of Home Affairs has separately issued an order dated 27/08/2009 to the regulators of the financial sectors, and to all the State Governments and UT Administrations, with regards to immovable property (copy of the order dated 27/08/09 enclosed).

[Note : Members may refer the Website of the Institute (www.icai.org) for the contents of the enclosures]

22 April 2010

IMP UPDATE : RBI Guidelines [1 Attachment]

[Attachment(s) from Ashwin Nagar included below]

Dear All,

Please go through the attached Notice/ Circular issued by HDFC Bank post the communication from RBI for Banks on Guidelines to follow in case of alterations on cheques. This will get implemented from July 01, 2010.

As per RBI Circular - DPSS.CO.CHD.No. 1832/01.07.05/2009-10 dated 22nd February 2010

Prohibiting alterations / corrections on cheques :

No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee's name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations.

In view of the above guidelines, with effect from July 01, 2010 no alterations in cheque will be allowed (even if signature is made at the place of alteration on cheque). These kinds of altered cheques will not be honored by Bank.

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Attachment(s) from Ashwin Nagar

1 of 1 File(s)

18 April 2010

ICAI MOU with CBEC- CFCs'

Tuesday, April 13, 2010
Ministry of Minority Affairs

ICAI TO BE A FACILITATOR OF FINANCE MINISTRY'S E-INITIATIVE
SIGNS MOU WITH THE CENTRAL BOARD OF EXCISE AND CUSTOMS

18:13 IST
The Institute of Chartered Accountants of India (ICAI has signed a Memorandum of Understanding (MOU) with the Central Board of Excise and Customs (CBEC). Giving this information here today the President of ICAI, Shri Amarjit Chopra, said that under it the practicing members of ICAI will provide facility of e-filing of returns and documents to Central Excise and Service Tax assessees through Certified Facilitation Centres (CFCs). A CFC is a facility, other than the physical front offices or Facilitation centres of CBEC, which will be set up and operated by practicing Chartered Accountants in individual capacity or as proprietor or firm. With this the ICAI has become a facilitator of Finance Ministry's e-initiative.

CBEC had introduced 'Automation of Central Excise and Service Tax' (ACES) programme to improve tax-payer services. ACES is a centralized web based application which enables the assessees to electronically interface with the department. It aims to reduce paperwork, transaction costs and increase accountability, efficiency and transparency.

This initiative will immensely help all those assessees who may not have the requisite IT infrastructure / resources, to use ACES. An assessee is required to pay nominal fixed fees (maximum Rs 600/- for entering return data and Rs.200/-per return for uploading returns with ACES) for availing services of CFCs.

With this MOU, the members can not only provide services as envisaged, but would also provide other services on request of the assesses. It opens a new professional avenue for the Members as they can now provide services to the assessees of Central Excise and Service Tax in filing their returns and other documents electronically under ACES.

The Institute of Chartered Accountants of India), functioning under the aegis of the Ministry of Corporate Affairs, is in the process of setting up utility for online filing of application by members to obtain certificate under the scheme whereupon CBEC will provide user name and password to members to activate the facility. Members of the ICAI are spread across the country and this initiative will facilitate e-filing of returns and documents by assessees in every part of the country.

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KKP/ska

15 April 2010

Compliance Calender 2010 [1 Attachment]

[Attachment(s) from Ashwin Nagar included below]

Please find 2010 Compliance Calander for your ready reference. Forwarded to me by Mahavir Jain.

1 of 1 File(s)

Empanel as Concurrent Auditors

BANK OF MAHARASHTRA invites online applications from practicing firms of Chartered Accountants, in the prescribed format, who are willing to...