31 May 2010

e-filing of central excise returns- CBEC instructions

Circular No. 926 / 16 / 2010 - CX

F.No. 201/20/2009-CX 6

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise and Customs)

New Delhi dated the 28th May 2010.

Sub.: Procedure for electronic filing of Central Excise returns - reg.

Attention is invited to Circular No. 919/09/2010 – CX dated 23.03.2010 prescribing detailed instructions and the procedure for electronic filing of Central Excise and Service Tax returns. Attention is also invited to the Central Excise (Second Amendment) Rules, 2010 and CENVAT Credit (Amendment) Rules, 2010 issued vide Notification No. 20/2010-Central Excise (NT) and No. 21/2010- Central Excise (NT) respectively both dated 18.05.2010 providing for mandatory electronic filing of certain returns by assessees including dealers.

2. The said notifications have been made effective from 1.6.2010. Following amendments have been made in the Central Excise Rules, 2002 and CENVAT Credit Rules, 2004:

i. Manufacturers who have paid Central Excise duty of Rs. 10 Lakh or more (including payment by utilisation of Cenvat credit) in the previous financial year shall file their Annual Financial Information Statement (ER4) as prescribed under the proviso to clause (a) of sub rule (2) of Rule 12 of the Central Excise Rules, 2002,electronically.

ii. EOU manufacturers who have paid Central Excise duty of Rs. 10 Lakh or more (including payment by utilisation of Cenvat credit) in the previous financial year shall file ER 2 returns as prescribed under the proviso to sub-rule (3) Rule 17 of the Central Excise Rules 2002, electronically.

iii. All registered dealers would now be required to file quarterly returns as prescribed under the proviso to sub-rule (8) of rule 9 of the CENVAT Credit Rules 2004, electronically irrespective of the amount of CENVAT credit taken by them or passed on by them in a year.

iv. Manufacturers who have paid Central Excise duty of Rs. 10 Lakh or more (including payment by utilisation of Cenvat credit) in the previous financial year shall file the Annual Declaration relating to principal inputs (ER5) under the second proviso to sub rule (1) of Rule 9A of the CENVAT Credit Rules, 2004; and

v. Manufacturers who have paid Central Excise duty of Rs. 10 Lakh or more (including payment by utilisation of Cenvat credit) in the previous financial year shall file the Monthly Return of information relating to principal inputs (ER6) under proviso to sub-rule (3) of rule 9A, electronically.

3. The instructions contained in Circular No. 919/09/2010 – CX dated 23.03.2010 on the procedure for electronic filing of excise returns and obtaining acknowledgement thereof shall mutadis mutandis apply for electronic filing of returns as envisaged under the said amended Rules. It is requested to sensitise concerned officers and the trade regarding the instructions.

4. As a large number of assessees including dealers would be required to file Excise returns electronically, it is requested that they may be provided all assistance so as to help them in adopting the new procedure.

5. Field formations and trade may also please be informed suitably.

6. Hindi version will follow.

(Deepankar Aron)

Director (CX 6)

Lower deduction of taxes- eifiling

Section 197 of the Income-tax Act, 1961 – Deduction of tax at source – Certificate of lower deduction or non-deduction of tax at source – Instructions for issue of certificate u/s 197 mandatorily through ITD system

 

Instruction No. 4/2010, dated 25-5-2010

 

1.                  I am directed to bring to your notice on the subject of issue of certificates u/s 197 that by Instruction No. 8/2006 dated 13/10/2006, it was laid down that certificates for lower deduction or nil deduction of tax at source u/s 197 are not to be issued indiscriminately and for issue of each certificate, prior administrative approval of the concerned Range Head shall be obtained by the AO. Subsequently, Instruction No. 7/2009, dated 23/12/2009 read with letter F.No.275/23/2007-IT(B), dated 8/02/2010 has laid down monetary limits for prior administrative approval of the CIT-TDS or DIT-Intl. Taxation, as the case may be. Such certificates are normally being issued at present, manually rather than through the ITD system.

2.                  To maintain centralized data of issue of such certificates and facilitate better processing of the TDS returns filed by the deductors and in continuation to the above instructions, I am directed to communicate that henceforth w.e.f………….the certificates u/s 197 shall be generated and issued by the AO mandatorily through ITD system only.

3.                  In case due to certain reasons, it is not possible to generate the certificate through the system on the date of its issue, the AO shall upload the necessary data on the system within 7 days of the date of issue (manually) of the certificate.

4.                  The manner of issue of certificate u/s 197 through the system, uploading of data in situation covered in para 3 above and the prior administrative approval by the Range Head and by the CIT-TDS / DIT-Intl. Taxation is given in the enclosed Annexure for guidance of all concerned.

5.                  The content of the above Instruction may be brought to the notice of all officers working in your charge for strict compliance.

Note for issue of certificate u/s 197 mandatorily through the system

1.                  Chapter-XVIIB of the IT Act 196l provides for deduction of tax at source by person responsible for making  payment of some specified nature mentioned in Sec 192 to Sec 194 LA (hereof. The tax so deducted is deposited to Govt.  a/c on monthly basis. The deductor of tax is liable to file quarterly returns of TDS wherein data about the amount paid, tax deducted, rate of deduction, date of deduction, date of payment of tax to Government, identification of the payees/recipients (by specifying their PAN) and some other prescribed details are furnished.

2.                  While processing the TDS return, the information contained therein is matched with the legal provisions (prescribed rates of deduction), due dates for payment, the information of tax payment received from banks etc. and defaults, if any, are generated. The defaults are mainly non-deduction (including short deduction), non-payment of tax deducted (including part payment) and interest for default or delayed payment.

3.                  Sec 197 of the IT Act, 1961 provides for issue of certificate for no deduction or deduction of tax at lower rate if the Assessing Officer is satisfied that the issue of such certificate is justified in view of total income of the recipient. Till FY 09-10 the certificates u/s 197 were being issued manually by the concerned Assessing Officer. The present system of issuance of 197 certificates suffers from the following deficiencies:

 

         There is no check as to whether such certificate has been issued by the authorized/ competent assessing officer having jurisdiction.

         There is no information available in the system as regards number of certificates issued at Nil/Lower rate authorized by AO or the quantum of revenue involved.

         Such certificates are being presently issued without any systematic reference number which could be amenable to verification. In the TDS returns, since neither reference numbers of 197 certificates are being captured nor is it possible to compare such numbers in the light of manual issue of certificates, it is not possible to ascertain the veracity of claim, of the deductors about no/low deduction having been made on the strength of a 197 certificate actually issued by the department.

         The extent of default, for FYs 2007-08 and 2008-09, generated as a result of deductors making 'mistakes' in ticking relevant column (about 197 certificates) in TDS returns is to the extent of more than Rs 10,000 crores. This is indicative of the magnitude of revenue involved in issuance of 197 certificates, which are being otherwise issued by the field officers without perhaps being aware of the extent of revenue involved.

4.            Therefore, processes have to be put in place which enables the
department to take policy decision on the issue on one hand and on the
other help the field officers to verify the genuineness of claims being made in
TDS returns as also to decide about the extent of such certificates which are
to be issued.

 

5.                  It is reported that in the  middle of FY 09- 10, facility was provided in the TDS module of ITD  system to generate certificates Under section u/s 197 through the system.

6.                  Some of  the benefit of issue of certificate u/s 197 through the system would be that:

 

         Entire information about the deductor and deductee, nature of payment (related section), the lower rate authorized, dates of validity of certificate and quantum of payment would he available to the department in the system.

 

         Element of reconciliation on part of deductors and regulation in the case of field officers (so far as issuance of the certificates is concerned) would be introduced.

 

         The information (as above) can he used while processing the TDS returns and matching the data provided by the deductor in TDS return.

 

         The information/statistics would help the CBDT in taking an informed policy decision on the issue in future.

 

         The non-deduction defaults detected by the system while processing the TDS returns would be substantially reduced or almost eliminated, if all certificate u/s 197 are issued compulsorily through the system.

7.         Under these facts, it is proposed that all certificates u/s 197 be issued
mandatorily through ITD system.

However, considering that these certificates are issued by the AOs scattered throughout the country, there may be exigencies/situations when these may not be generated through the system. In such cases, the procedure may involve suitable measures to capture the data on the system by the AO within 7 days of the date of issue (manually) of the certificate.

8.         The entire procedure is open for suggestions, modifications and
amendments as considered necessary.

 



--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
          vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

28 May 2010

CLS SCHEME 2010 [2 Attachments]

Ministry of Corporate Affairs announced two new schemes:

1. Company Law Settlement Scheme, 2010
2. Easy Exit Scheme, 2010

Both the schemes shall come into force on the 30th May, 2010 and shall remain in force up to 31st August, 2010.

Concerned Circulars are attached.

__._,_.___

Attachment(s) from Ashwin Nagar

2 of 2 File(s)

23 May 2010

Gratuity Limit Increased to Rs.10 laksh

Gratuity Amount payable under Payment of Gratuity Act enhanced from Rs.3.5 lakhs to Rs 10 lakhs - Payment of Gratuity (Amendment) Act, 2010 (No. 15 of 2010), dated 17-5-2010

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
          vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

22 May 2010

Registrations for June-2010 Batch of the Certificate Course on Valuation at Delhi, Mumbai, and Chennai & Kolkata Centre

With IFRS, and Companies Bill 2009 configuration, members armed with the Certification of Valuation Course of ICAI shall superbly be competent and capable professionals to provide the service seekers with a splendid template of the best global practices that will exuberate for the stakeholders, the immense confidence in all areas of valuation assignments and engagements.
In Companies bill 2009, appointment of Valuer is proposed to be made for enabling fair valuations. Clauses 218-223 deals with Registered Valuers in Companies bill 2009. Once this bill is passed it will give an edge to our Valuers over others to perform Valuation. The Valuer would be appointed by Company for Valuation of Property, stocks, shares, debentures, securities, goodwill, net worth or its other assets. The Institute has the vision that once the bill becomes a Law, the Ministry of Corporate Affairs would be requested to make eligible all qualified participants of the Certificate Course on Valuation to act as a registered valuer for the purpose of the said chapter of the bill. RBI in FEMA Regulations 2010 vide its notification No. FEMA 205/2010- RB dated 7th April 2010 widens the scope for Chartered Accountants by stating that fair valuation of shares has to be done by a SEBI registered category-1, Merchant banker or Chartered Accountant as per the discounted free cash flow method.
In this milieu, Valuation has a critical and active role to play in the long run in compliance with IFRS, for making positive contribution for the betterment of society. The role of valuers is to provide fair value of assets / liabilities to enable the client to make appropriate decisions in a compatible fashion.
Taking stock of the above, the Institute has launched the Valuation Course at Delhi, Mumbai, Chennai and Kolkata and the responses received are overwhelming. The focus of this course is on integrating the key approaches and methods from each area and applying them to the real case study. This is an intensive and comprehensive package of face to face session facilitated by eminent faculties from the profession, industry and leading management institute including IIMs. Indeed, this course would definitely impart a new direction to the members in their search for professional growth and career development. The course is targeted at the members and the students who have cleared their CA. final examinations.
Course Objective & Thrust Area:
The objective of the course is to enable the members to gain acumen, deeper understanding & expertise on valuation job. Apart from comprehensive theoretical aspects, this course, first of its kind in India, will sharpen the knowledge and excellence of the members through multiple case studies across the industry and service sector in Valuation, Strategic Financial Management and Cross- Border transactions, etc.
Pedagogy:
Valuation gives practical advice on using the framework to value a business or any interest therein. It is balanced between lectures, presentations, cases and dissertations and runs through the key approaches of valuation discovering the underlying assumptions of various models and their applications in live cases.
Course Duration
The total duration of the course is 300 hours as follows;
1. Self study: 200 hours
2. Class room teaching: 50 hours
3. Preparation of case studies by Groups: 50 hours.
The classes of the course will be schedule on alternative Saturdays & Sundays. Total Seven days Classes will be held.
Course Fees:
Rs.25000/- only per participant, payable online or by DD/Pay order drawn in favour of the Secretary, ICAI, payable at Delhi.
Further details & Registration Form Links:
All relevant details of the course and registration form have been hosted on the website of the Institute at http://www.icai.org/post.html?post_id=3428&c_id=266.
The filled up form along with requisite fee can be sent to the following address;
The Secretary,
Corporate Laws and Corporate Governance Committee, 4th Floor,
P.B.No.7100, Indraprastha Marg,
The Institute of the Chartered Accountants of India
New Delhi-110002
What the Participants say :
"A short and sharp refresher course with surmounting depth that helps practitioners up to speed with a specific topic, and provide valuable networking opportunities".
"A well timed initiative of the Institute to serve society and the nation by strengthening valuation skills of the members to safeguard the stakeholders interest under these turbulent times."
"The Course is encapsulated to make us understand the niceties of Business Valuations from Development to Reporting."
"A wonderfully designed learning package for the professionals and the industry".
Further Assistance:
National Course Director:
Chairman, Corporate Laws and Corporate Governance Committee
Email: sk@icai.org
Course Director:
Secretary
Corporate Laws and Corporate Governance Committee
Mobile: 91 93500 61141; Email: gvallabh@icai.in
Course Co-ordinator
Joint Secretary
Corporate Laws and Corporate Governance Committee
Mobile: 91 93508 52388; E-mail: skgarg@icai.in

18 May 2010

Special Placement Programme-June, 2010

Dear Member,
We are pleased to inform you that, the Committee for Members in Industry is organizing Special Placements for experienced and fresh Chartered Accountants at Eight centres viz. Bangalore, Chennai, Kolkata, Mumbai, New Delhi, Hyderabad, Jaipur and Pune centres respectively as per the below mentioned schedule:
Category
Centre
Dates
A
Mumbai and New Delhi,
25th -26th June,2010
B
Bangalore, Chennai, Kolkata and Hyderabad
23rd -24th June,2010
C
Jaipur and Pune
22nd June,2010
Kindly note that registration process for the candidates would start from 17th May 2010 and the Last Date for the same would be 31st May 2010.Therefore, if eligible as per the following criteria you are requested to complete the registration within the specified time frame.
ELIGIBILITY OF CANDIDATES FOR SPECIAL PLACEMENT PROGRAMME
Chartered Accountants fulfilling the following conditions are eligible to take part in Special Placement Programme.
· having the membership of Institute as on 10th May, 2010
· who have more than one year of experience may participate as experienced chartered accountants.
· The chartered accountants who have less than one year or no experience may participate as fresh Chartered Accountant
· passed C.A. final examination on or before January, 2010
· who have not got the job through any placement services organized by the Institute, i.e., from 01.06.2009 to 1.06.2010.
If you are looking for a job, you may kindly consider registering yourself at the Placement Portal and avail this unique opportunity.
Regards
Committee for members in Industry
The Institute of Chartered Accountants of India, New Delhi

13 May 2010

NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11

NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11

Form No.

Heading

Instructions

Notification

ITR-2

For Individuals and HUFs not having Income from Business or Profession

ITR-2 - Instructions

ITR-3

For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship

ITR-3 - Instructions

ITR-4

For individuals and HUFs having income from a proprietory business or profession

ITR-4 - Instructions

ITR-5

For firms, AOPs and BOIs

ITR-5 - Instructions

ITR-6

For Companies other than companies claiming exemption under section 11

ITR-6 - Instructions

ITR-7

For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

ITR-7 - Instructions

ITR-V

Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6 transmitted electronically without digital signature

ITR-V – Instructions

Acknowledgment

12 May 2010

VAT Trade Cir - 16T of 2010 - Extension of Date for Physical Submission of Acknowledgement of Audit Report in Form 704 for the dealers

TRADE CIRCULAR

Date: 10/05/2010

No. DC/704 Cell/B-759

TradeCir. No- 16 T of 2010

Sub :

Extension of Date for Physical Submission of Acknowledgement of Audit Report in Form 704 for the dealers

Ref:

(1) Government Notification No.VAT/AMD-1009/1B/Adm-6 dated 26th August 2009

2) Trade Circular 27T of 2009 No. dated 10th October 2009.

3) Trade Circular 05T of 2010 No. dated 28th January 2010.

4) Trade Circular 13T of 2010 No. dated 31st March 2010.

As per Trade Circular 13T of 2010 No. dated 31st March 2010 Last date for filing the Audit Report in form 704 for F.Y. 2008-09 was 30th April 2010.Dealers are required to submit "the statement of submission of audit report in form e-704" along with required document on or before 10th May 2010.

This office has received representation from trade to extend the date of submission .Considering the same the date of submission of "the statement of submission of audit report in form e-704" along with required document is hereby extended up to 15th May 2010.

(Sanjay Bhatia)

Commissioner of Sales Tax,

Maharashtra State, Mumbai.

11 May 2010

IndianCAs on FaceBook

Hi members,
IndianCAs group is now on FaceBook. if you are on faceBook, just click the link below and be part of IndianCAs on Facebook.
best regards,
Ashwin Nagar FCA and SAP-FICO\SEM-BCS
Success is not permanent and failure is not final
Ph: India: +91-98330-15352 US: +1-323-325-4111

06 May 2010

CBEC Clarification on Cenvat Credit

Clarification regarding availment of CENVAT credit on input services

 

Circular No. 122/03/2010-ST, dated 30-4-2010

 

 

Representations have been received by Board regarding denial of CENVAT credit on input services in certain cases. Some of the cases where doubts have been raised by field formations are given below:

 

2. As per Rule 4 (7) of the CENVAT Credit Rules, 2004, the CENVAT credit on input services is available only on or after the day on which payment of the value of input service and service tax is made. The section 67 (4) of the Finance Act, 1994, provides that gross amount charged includes payment made by issue of credit / debit notes or by entries in the books of account, where the transaction is with any associated enterprise.

 

A doubt has arisen as to whether CENVAT credit can be taken by "Associate Enterprises" when debit is made in book of accounts or when book adjustments/ debit or credit in accounts is made, or if the CENVAT credit of the service tax paid on input service is available only after the actual payment of the value of input service has been made in money terms.

 

3. As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004,

"Credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9".

 

A doubt raised is as to whether the receiver of input service can take credit only after the full value that is indicated in the invoice, bill or challan raised by the service provider, and also the service tax payable thereon, has been paid. It has been represented that in many cases, after the invoice is issued by the service provider, the service receiver does not make the full payment of the invoiced amount on account of discount agreed upon after issuance of invoice; or deducts certain amount due to unsatisfactory service; or withholds some amount as security to be held during contract period. Due to these reasons the value paid may not tally with the amount indicated in the invoice, bill or challan. In such cases the department has raised objections to the taking of credit as it does not meet the requirement of the said sub-rule (7).

 

4. Thus the following issues relating to availment of CENVAT credit need clarification,-

Whether CENVAT credit can be claimed

 

(a) when payments are made through debit/credit notes and debit/credit entries in books of account or by any other mode as mentioned in section 67 Explanation (c) for transactions between associate enterprises; or

 

(b) where a service receiver does not pay the full invoice value and the service tax indicated thereon due to some reasons.

 

5. Matter has been examined and clarification in respect of each of the above mentioned issues is as under,-

 

(a) When the substantive law i.e. section 67 of the Finance Act, 1994 treats such book adjustments etc., as deemed payment, there is no reason for denying such extended meaning to the word 'payment' for availment of credit. As far as the provisions of Rule 4 (7) are concerned, it only provides that the CENVAT credit shall be allowed, on or after the date on which payment is made of the value of the input service and of service tax. The form of payment is not indicated in the same and the rule does not place restriction on payment through debit in the books of accounts. Therefore, if the service charges as well as the service tax have been paid in any prescribed manner which is entitled to be called 'gross amount charged' then credit should be allowed under said rule 4 (7). Thus, in the case of "Associate Enterprises", credit of service tax can be availed of when the payment has been made to the service provider in terms of section 67 (4) (c) of Finance Act, 1994 and the service tax has been paid to the Government Account.

 

(b) In the cases where the receiver of service reduces the amount mentioned in the invoice/bill/challan and makes discounted payment, then it should be taken as final payment towards the provision of service. The mere fact that finally settled amount is less than the amount shown in the invoice does not alter the fact that service charges have been paid and thus the service receiver is entitled to take credit provided he has also paid the amount of service tax, (whether proportionately reduced or the original amount) to the service provider. The invoice would in fact stand amended to that extent. The credit taken would be equivalent to the amount that is paid as service tax. However, in case of subsequent refund or extra payment of service tax, the credit would also be altered accordingly.

 

6. The contents of this circular may be suitably brought to the notice of the field formations. In case any difficulty is faced in implementing these instructions, the same may be brought to the notice of the undersigned.

 

 



--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
          +91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
          vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

04 May 2010

MEF Hosted for 2010-11


Multipurpose Empanelment Form for the year 2010-11 - (04-05-2010)
Multipurpose Empanelment Application Form for the year 2010-11 would be hosted on www.meficai.org as per following schedule:

Hosting of on line MEF application form for the year 2010-11 on the website www.meficai.org 1st May, 2010
Last date of submission of the MEF form for the year 2010-11 15th June, 2010 (05.30 PM)
Last date of receipt of duly signed declaration 30th June, 2010


A hard copy of the Declaration duly signed by all partners/ proprietor/ member practising in individual name accompanied by a print of the e-mail acknowledging submission of MEF must be sent to ICAI by courier/speed post/hand delivery at ICAI Bhawan, Indraprastha Marg, New Delhi – 110 002 in an envelope superscribed with the words "DECLARATION FOR MEF 2010-11" so as to reach on or before 30th June, 2010.

Further, we may inform that this year, up to 10% of the applicants (selected randomly from the list of applicants of MEF 2010-11) would be called for to submit following documents:
  • (Latest) Financial Statements of the firm
  • Partnership deed in vogue and as on 1st January,2010
  • Copy of acknowledgement of (latest) Income Tax Returns of the firm and partners
  • Copy of computation of income of the of the firm and partners (latest)
  • Copy of (latest) Assessment Order of the of the firm and partners

    --
    Best Wishes

    CA. V.M.V.SUBBA RAO
    Chartered Accountant
    Door No.24-2-1885,
    I Floor, Flat No.5,
    Siddivinayaka Residency, I Cross,
    Central Avenue, MSR Nagar,
    Magunta Layout,
    Nellore-524 003
    Andhra Pradesh
    India
    Mobile:+91 - 0 9390221100
              +91 - 0 9440278412
    e-Mail: vmvsr@rediffmail.com
              vmvsr@yahoo.co.uk
    http://pdicai.org/MyPage/203038.aspx

    Empanel as Concurrent Auditors

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