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Showing posts from September, 2010

BUDGET MANUAL

Finance Minister Releases the First Budget Manual of Union GovernmentUnion Finance Minister Shri Pranab Mukherjee released the first Budget Manual of the Union Government, here today. Releasing the Manual, the Finance Minister said that the Union Budget has evolved over the past six decades to reflect the strength of India's democratic processes in shaping its economy, and has emerged as a crucial tool for Public Finance Management. He said that this Manual is an attempt to bring together the entire Budget related activities and procedures etc. which were hitherto available in a dispersed manner in the form of executive instructions and guidelines . The Manual has been prepared by the Budget Division of the Department of Economic Affairs. Finance Minister Shri Mukherjee congratulated the Division for taking this initiative.

The Finance Minister said Budget Manual is a comprehensive document explaining in detail the procedures and activities connected with the preparation of Budget.…

CENVAT- SPARES-DUMPERS-VEHICLES

Please note that CENVAT CREDIT is available on Components, Spares and Accessories of Motor Vehicles, DUMPERS & TIPPERS as per CBEC Notification No.29/2010 dt.24-09-2010.Cenvat Credit (Fifth Amendment) Rules, 2010 - Amendment in rule 2Notification No. 29/2010-Central Excise (N.T), dated 24-9-2010In exercise of the powers conferred by section 37 of the Central Excise act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely : –1.(1) These rules may be called the CENVAT Credit (Fifth Amendment) Rules, 2010.(2) They shall come into force on the date of their publication in the Official Gazette. 2.In the CENVAT Credit Rules, 2004, in rule 2, in clause (a), after sub-clause (C), the following sub-clause shall be inserted, namely : –"(D) components, spares and accessories of motor vehicles, dumpers or tippers, as the case may be, used to provide taxable se…

Johnny and Service Tax Refund [Series- II] Part 1: `INVOICE'

Johnny and Service Tax Refund [Series- II]Part 1: `INVOICE'Prepared By: -                       CA. Pradeep JainMayank PalgautaWe have already written one complete series of articles for the refund of service tax to exporters under notification no. 41/2007-ST. The litigation on the same is still going on. The Government has come up with the new notification no. 17/2009-ST dated 7th July, 2009 to make the scheme simple so that the refund is available to the exporters conveniently. But there is no sign of relief for the exporters. They are still struggling to get the refund from the department. With this second series of the articles, an effort has been made to bring out the misery of exporters. This also brings out the present situation existing in the refund structure mechanism under Service tax. This state of affair also is elaborated with the means of poems and conversation between Johnny (an assessee) and his father.Johnny and Jill went up the hill, to get the refund order
Johnn…

Due Date of Return extended

Due date for filing returns for AY 2010-11 extended from 30/9/2010 to 15/10/2010Order [F.NO. 225/72/2010/ITA.II], dated 27-9-2010On consideration of the reports of disturbance of general life caused due to floods and heavy rains, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, hereby extends the due date of filing of returns of income for the Assessment Year 2010-11 from 30-09-2010 to 15th October 2010. Accordingly the due date for Tax Audit report u/s 44AB of the Income Tax Act is also extended to 15th October 2010.

Profile of Banks-2009-10

Date : 23 Sep 2010 A Profile of Banks 2009-10The Reserve Bank of India has, today, placed on its website "A Profile of Banks 2009-10". The publication, "A Profile of Banks 2009-10",the  sixth volume in the series, provides a  bank-wise and bank group-wise information on important performance indicators of all scheduled commercial banks, excluding regional rural banks, for the period 2005-06 to 2009-10. The publication covers about 18 important indicators; e.g return on assets, CRAR and business per employee.  To facilitate comparison the publication also provides aggregates at bank group level and at all banks level for 2009-10.Highlights• Employee productivity has been improving as both the productivity indicators, namely, business per employee and profit per employee at aggregate level, are increasing since 2005-06.• Number of employees of all banks increased during 2009-10.• Return on assets of all scheduled commercial banks at aggregate level declined during 20…

J & K -IT RETURN DATE EXTENDED

I-T Returns Filing Date Extended to 30th November in JThe Central Board of Direct Taxes (CBDT) has extended the due date of filing of returns of income for the Assessment Year 2010-11 for all categories of cases in the State of Jammu & Kashmir to 30th November 2010. The decision was taken by the CBDT in exercise of powers conferred under section 119 of the Income Tax Act, 1961, considering the reports of disturbance of general life, caused due to the law and order problem in the State.

Accordingly, the date for obtaining and furnishing Tax Audit report u/s 44AB of the Income Tax Act is also extended to 30th November 2010.

DSM/BY
(Release ID :65947

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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

IndianCAs: Tax Cuts: This is how the cookie crumbles

Tax Cuts: This is how the cookie crumbles:

Suppose that every day, ten men go out for dinner. The bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh $7.
The eighth $12.
The ninth $18.
The tenth man (the richest) would pay $59.
So, that's what they decided to do.
The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20."
So, now dinner for the ten only cost $80. The group still wanted to pay their bill the way we pay our taxes.
So, the first four men were unaffected. They would still eat for free. But what about the other six, the paying customers? How could they divvy up the $20 windfall so that everyone would…

Non-resident signatories of foreign companies are not required to have a PAN-encrypted Digital Signature Certificate

Ramana Kumar B
Senior Manager,
"To be conscious that you are ignorant is a great step to knowledge"
Dear All,

Today, the Central Board of Direct Taxes has clarified that the requirement of encrypted PAN on Digital Signature Certificate (DSC) for non-resident signatories of foreign companies has been relaxed. The signatory may register with DSC without PAN encryption from the Chief Certifying Authority (CCA), India and use the same DSC while uploading the return.However, it is important to note that this facility is available only for all foreign companies under the jurisdiction of respective International Taxation wards or circles of the Income Tax Department.Foreign companies still facing any difficulty may send an email to efiling@incometaxindia.gov.in or efiling.administrator@incometaxindia.gov.in giving their name, PAN and jurisdiction. Source: https://incometaxindiaefiling.gov.in/portal/index.doRegardsTax Knowledge & Solutions Team

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Best Wishes

CA. V.M.V.SUBBA RAO
Charte…

Repo- Reverse Repo Rates - Duty Draw Back Rates

FMD.MOAG. No. 50/01.01.01/2010-11 Dated: September 16, 2010Liquidity Adjustment Facility – Repo and Reverse Repo Rates As announced today in the Mid-Quarter Policy Review, it has been decided to increase the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.75 per cent to 6.00 per cent and the reverse repo rate by 50 basis points from 4.50 per cent to 5.00 per cent with immediate effect. 2. All other terms and conditions of the current LAF Scheme will remain unchanged. 3. Please acknowledge receipt. RBI/2010-2011/204(P. Krishnamurthy)
Chief General Manager

REF.No.MPD.BC. 336 /07.01.279/2010-11

DUTY DRAW BACK RATES- SEE ATTACHMENT
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

Budget Circular-2011-12

BUDGET CIRCULAR ISSUED BY MINISTRY OF FINANCE, GOI FOR THE YEAR 2011-12 IS ATTACHED

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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

Adjudication Powers-Service Tax

Section 83A of the Finance Act, 1994 – Power of adjudication – Notified officers – Amendment in Notification No. 30/2005-ST, dated 10-8-2005Notification No. 48/2010 – Service Tax, dated 8-9-2010In exercise of the powers conferred by Section 83A of the Finance Act, 1994 (32 of 1994), the Central Board of Excise and Customs hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance, Department of Revenue, No. 30/2005 – Service Tax, dated 10th August 2005, published vide No. G.S.R. 527(E), dated the 10th August, 2005, namely:- In the said notification, for the Table, the following Table shall be substituted, namely:-TableSr. No.Central Excise OfficerAmount of service tax or CENVAT credit specified in a notice for the purpose of adjudication under Section 83A(1)(2)(3)(1)Superintendent of Central ExciseNot exceeding Rs. one lakh (excluding the cases relating to taxability of services or valuation of services and cases involving extende…

Adjudication Powers-Service Tax

Section 83A of the Finance Act, 1994 – Power of adjudication – Notified officers – Amendment in Notification No. 30/2005-ST, dated 10-8-2005Notification No. 48/2010 – Service Tax, dated 8-9-2010In exercise of the powers conferred by Section 83A of the Finance Act, 1994 (32 of 1994), the Central Board of Excise and Customs hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance, Department of Revenue, No. 30/2005 – Service Tax, dated 10th August 2005, published vide No. G.S.R. 527(E), dated the 10th August, 2005, namely:- In the said notification, for the Table, the following Table shall be substituted, namely:-TableSr. No.Central Excise OfficerAmount of service tax or CENVAT credit specified in a notice for the purpose of adjudication under Section 83A(1)(2)(3)(1)Superintendent of Central ExciseNot exceeding Rs. one lakh (excluding the cases relating to taxability of services or valuation of services and cases involving extende…