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Showing posts from January, 2014

Change in PAN Procedure-Keep in Abeyance

Ministry of Finance30-January, 2014 18:32 IST Government Decides to Keep in Abeyance the Decision to Change the Procedure for Pan Allotment Till Further Orders
The Central Board of Direct Taxes (CBDT) has decided to keep in abeyance the decision to change the procedure for PAN allotment till further orders. Accordingly, the operation of Circular No. 11 dated 16.01.2014 issued to PAN service providers has been directed to be put on hold till further orders. In the meantime, the old procedure of PAN application and allotment shall continue.


(Release ID :102868)

Three Important Judgements On Capital Gains Transfer, Transfer Pricing And Coercive Recovery Of Taxes

The following important judgements are available for download at CIT vs. Sadia Shaikh (Bombay High Court At Goa)S. 2(47)(v): Mere execution of a development agreement is not a “transfer” if possession as per s. 53A of the Transfer of Property Act is not given Though the development agreement was executed in AY 2003-04, the possession as contemplated in Section 53A of the Transfer of Property Act was in fact not handed over by the assessee to the developer. The agreement only permitted the development to be carried out by the said developer. The entire control over the property was in fact with the assessee inasmuch as the licence to construct the property was also in the name of the assessee and the occupancy certificate was also given to the assessee. Therefore the execution of the agreement could not amount to transfer as contemplated under Section 53A of the Transfer of Property Act. The agreement was subsequently specifically modified and the assessee was liable to…

Change in PAN Allotment Process

Procedure for Pan Allotment Process to Undergo a Change with Effect from 3rd February, 2014: The procedure for PAN allotment process will undergo a change with effect from 03.02.2014. From this date onwards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres.

PAN allotment process changes

The procedure for PAN allotment process will undergo a change with effect from 03.02.2014. From this date on wards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres.The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre.Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

RBI's move to demonetise pre-2005 currency

The Reserve Bank of India has today advised that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication. The Reserve Bank further stated that public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side. (Please see illustration>> >>The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender. This would mean that banks are required to exchange the notes for their customers as well as for non-customers. From July 01, 2014, however,  to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of …

Proud CAs

Proud to be CA...
1. K.M Birla - The chairman of Aditya Birla Group. This guy is my main inspiration. A Marwari and a CA. I can almost connect with him He also did MBA from London Business School.2. Motilal Oswal - Co Promoter, Chairman & Managing Director of Motilal Oswal Group . One of the dudes who said a NO to their family business and did wonders.3. Shekhar Kapur - You know this guy if you have watched India’s Got Talent Season 1. He was the only guy who sat beside Sonali Bendre and he was there because he directed Mr. India. And yes, he is a CA. The most amazing thing is that his Wikipedia profile says that he did Chartered Accountancy at the behest of his parents.4. Deepak Parekh - Padma Bhushan winner and the Chairman of HDFC. Quoting Wikipedia, “A pioneer in mortgage finance, he has enabled scores of Indian middle class people to own their houses or apartments through affordable loans.” This guy should be the ideal role model for all chartered accountants. A bunch of movi…

VCES Circular-ST Case Law

Circular No. 176/2/2014 - ST F. No. B1/19/2013-TRU (Pt) Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs Tax Research Unit *****  New Delhi, dated the 20th January, 2014 To, Chief Commissioners of Central Excise and Customs (All), Director General (Service Tax), Director General (Systems), Director General (Central Excise Intelligence), Director General (Audit), Commissioners of Service Tax (All), Commissioners of Central Excise (All), Commissioners of Central Excise and Customs (All)
Madam/Sir, Subject: Clarification regarding issue of Discharge Certificate under VCES and availment of CENVAT credit - regarding.           Trade and Industry has sought clarification as to whether the first installment of tax dues paid under Voluntary Compliance Encouragement Scheme (VCES), 2013 would be available as Cenvat Credit immediately after payment or Cenvat credit can be availed only after payment of tax dues in full and receipt of Acknowledgement…

CBDT on Sec 197

CBDT Directs Assessing Officers To Respect Citizens Charter In TDS matters
The CBDT has issued Instruction No. 1/2014 dated 15.01.2014 to the Chief Commissioners stating that though the Citizens Charter prescribes a time limit of one month for a decision u/s 197 on application for no deduction of tax or deduction of tax at lower rate, there is considerable delay in issuing the lower/non deduction certificate. The CBDT has directed that the commitment to tax payers as per the Citizens Charter must be scrupulously adhered to by the Assessing Officers and all applications for lower or no deduction of tax at source filed u/s 197 of the Income-tax Act, 1961 must be disposed of within the stipulated time frame.

S. 272B Penalty is Rs. 10000 per deductor and not per wrong PAN

The assessing officer had imposed penalty of Rs. 10,000/- in each case where PAN Number was not provided by the deductee. There were in all 30706 cases in which the PAN Number was missing or was incorrectly stated. The assessing officer, accordingly, imposed penalty of Rs. 10,000/- in each case. Thus, penalty of Rs.30,70,60,000/- was imposed. Board in the letter dated 5.8.2008 vide No.275/24/2007-IT(B) has clarified that penalty of Rs. 10,000/- under Section 272B is linked to the person, i.e., the deductor who is responsible to deduct TDS, and not to the number of defaults regarding the PAN quoted in the TDS return. Therefore, regardless of the number of defaults in each return, maximum penalty of Rs. 10,000/- can be imposed on the deductor. Penalty cannot be imposed by calculating the number of defective entries in each return and by multiplying them with Rs. 10,000/-. This also appears to be a legislative intent, as in many cases, the TDS amount may be small or insignificant fracti…

CBEC on Implementation of decision of Hon'ble Supreme Court in case of M/s Fiat India ltd

CBEC issues clarifications on application of SC decision in Fiat India Ltd to determine transaction value; Mere sale of goods below manufacturing cost and profit, not sole basis to reject transaction value; Valuation a matter under self - assessment procedure, but excise officer can conduct verification of valuation during audits; Aspects like loss percentage on sale, period / reasons for such loss making price must be considered while applying Fiat ratio; Cost auditing of unit / summoning of costing data should be done, only where investigation at Commissioner level; Calculations of manufacturing cost may be carried out using CAS-4 standards; Circular clarifies that extended period of limitation, for period prior to judgment date, shall not apply where show cause notice issued on grounds of Fiat judgment alone; However, any sale post Fiat ruling, where circumstances similar to Fiat case exist, then such transaction value would amount to wilful mis-statement of assessable…

No TDS on Service Tax if shown separately

The CBDT has issued Circular No. 1/2014 dated 13.01.2014 pointing out that the Rajasthan High Court has taken the view inCIT(TDS) vs. Rajashthan Urban Infrastructure(copy attached) that if as per the terms of the agreement between the payer and the payee, the amount of service-tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service-tax component u/s 194J of the Act. Pursuant thereto, the CBDT has decided in exercise of powers u/s 119 that wherever the terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
No TDS on Service Tax if shown separately
CIRCULARNO. 1/2014 [, DATED 13-1-2014
Subject: TDS underChapter XVII-Bof the Income-tax Act, 1961 onservice tax…

Names of Audit Firms approved for appointment as Statutory Central Auditors in 25 Public Sector Banks for the year 2013-14

Sr.No Auditors appointed for 2013-14 1. Allahabad Bank, Kolkata 1 M/s N K Bhargava & Co., New Delhi 2 M/s Raghu Nath Rai & Co., New Delhi 3 M/s Khandelwal  Kakani & Co., Indore 4 M/s Batliboi & Purohit , Mumbai 5 M/s Sarath & Associates, Hyderabad
2. Andhra Bank, Hyderabad 1 M/s Umamaheswara Rao & Co., Hyderabad 2 M/s R Subramanian and  Company , Chennai 3 M/s Patro & Co., Bhubaneshwar 4 M/s C R Sagdeo & Co., Nagpur 5 M/s  Nag & Associates, Dankuni
3. Bank of Baroda, Mumbai 1 M/s S K Mittal & Co., New Delhi 3 M/s Ray & Ray, Kolkata  4 M/s N B S & Co, Mumbai 5 M/s Laxminiwas Neeth & Co., Hyderabad 5 M/s K A S G & Co, Dhanbad 6 M/s Khandelwal Jain & Co., Mumbai
4. Bank of India, Mumbai 1 M/s S R B & Associates, Bhubaneshwar 2 M/s Isaac & Suresh, Thiruvananthapuram 3 M/s M M  Nissim & Co., Mumbai 4 M/s  J P Kapur & Uberai, New Delhi 5 M/s D Singh & Co., New Delhi 6 M/s A N D R O S & Co., New Delhi
5. Bank of Maharashtra, Pune 1 M/s…

No CA Attestation-DSC

Dear Members,
Chartered Accountant (CA)  is not allowed to attest documents acceptable as proof of identity and proof of address for issuance of Digital Signature Certificate (DSC) wef 15th Jan,2014- SEE NOTIFICATION.

Amendments to CENVAT CREDIT Rules

Dear Members,
The CBEC has as amended the CenvatCredit Rules, 2004vide Notification No. 01/2014-CE(NT) dated08.01.2014in relation tocenvat credit on removal/writing off of inputs and capital goods under Rule 3. Also, the date for payment of duty on removal of inputs/capital goods under the said rule has now been inserted as Explanation to Rule 3(5C).

Sec 234E-HC Interim Stay Order

High Court grants interim stay on levy of fee for failure to file TDS statement Narath Mapila LP School vs. UOI (Kerala High Court) S. 234E: High Court grants interim stay on levy of fee for failure to file TDS statement S. 234E of the Income-tax Act, 1961 inserted by the Finance Act, 2012 provides for levy of a fee of Rs. 200/- for each day's delay in filing the statement of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS). The constitutional validity of s. 234E has been challenged in the Kerala High Court. Vide an interim order dated 18.12.2013, the High Court has admitted the Petition and granted a stay of proceedings for a period of two months.

VCES Clarifications-11-12-2013

F. No. B1/19/2013-TRU (Pt.) Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs (Tax Research Unit) *** New Delhi the 11th December, 2013  To, All Chief Commissioners of Central Excise/Service Tax Director General Service Tax All Commissioners of Central Excise/Service Tax
Sub: The Service Tax Voluntary Compliance Encouragement Scheme – issues for clarification – reg
            The undersigned is directed to state that the  Board has issued clarifications on issues concerning various aspects of the VCES, vide circulars dated 13.05.2013, 8.08.2013 and 25.11.2013. A FAQ has also been issued on VCES.  However, certain instances have come to notice, as mentioned below, that the declarants under the VCES are still facing difficulties.
2.         In one instance, the Designated Authority has asked a declarant, who has "tax dues" only for a part of the period covered by the Scheme, to furnish an undertaking that he had…