Skip to main content

Posts

Showing posts from March, 2015

Incomes, which are deemed to accrue or arise in India - CBDT Clarification

Incomes, which are deemed to accrue or arise in India - CBDT Clarification AS per Section 9(1)(i) of the Income Tax Act, the following incomes shall be deemed to accrue or arise in India:- all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India, or through the transfer of a capital asset situate in India . The Finance Act, 2012 inserted Explanation 5 to clause (i) of sub-section (1) of section 9. This explanation reads as under:- Explanation 5: For the removal of doubts, it is hereby clarified that an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India, if the share or interest derives, directly or indirectly, its value substantially from the assets located in India. It seems …

LIST OF YEAR END STATUTORY OBLIGATIONS

LIST OF YEAR END STATUTORY OBLIGATIONS
~ by RajeshLAST DATE - 31-3-2015 (Tuesday) INCOME TAX1.Pay remaining Advance Tax for AY 2015-16.2.File  Income  Tax Return for AY  2014-15 without penalty of Rs. 5,000/-. 3.File  Income  Tax Return for AY  2013-14 with  penalty of Rs. 5,000/-.    4.File  Wealth  Tax Return of  for AY  2013-14 & 2014-15.5.Make investments in PPF, LIC etc (Sec 80C), pay Mediclaim Premium (80D) etc. 6.Banks to file Return of Interest upto Rs.10,000 without TDS for Mar 2015 quarter in Form No. 26QAA.SERVICE TAX/ EXCISE7.Pay Service Tax/Excise Duty for Month/Qtr Mar 2015.COMPANIES ACT, 20138.Company to repay Deposits from Members & Relatives of Directors etc. taken before 1-4-14. Fine of 1-10 cr for Co & 25 lac - 2 cr for Officers in Default &/ jail upto 7 years
9.Company to reduce number of Directors to 15. Beyond 15 Directors, Special Resolution is required. Sec (149(1)).10.Directors to reduce Number of Directorships to 10 in Public Cos & 20 in a…

Foreign Tax Credit

Big victory for Wipro, Karnataka HC grants Foreign Tax Credit to tax holiday entities IT major Wipro has won a legal victory with the Karnataka High Court allowing it to save a significant amount in taxes from its overseas operations. The judgment is likely to have an impact on Indian companies that have overseas operations. US taxes In a ruling on Thursday, the High Court said Wipro can take credit for taxes it paid in the US out of revenues it earned from its operations there. Earlier, Wipro was denied tax credit since the Indian operations came under the tax holiday ambit. The issue relates to Wipro's operations in the US, and the taxes it has paid — both at the state and Federal levels, which comes under the ambit of foreign tax credits. According to Amit Maheshwari, Partner, Ashok Maheshwary & Associates, Wipro did not get this tax credit and appealed to the Karnataka High Court, since it would amount to double taxation. Wipro also enjoyed tax holiday status i…

Presentation on Anti Black Money Bill,2015

The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015, popularly called as Anti-black money bill, was introduced in the Lok Sabha on 20 March, 2015.The Bill provides for flat rate of tax at 30% on the value of undisclosed foreign income or assets along with a penalty of 300% on the amount of tax so computed. In addition the bill also provides for penalty of Rs. 10 lakh for non-disclosure of foreign asset or income in return or failure to furnish return under income-tax Act. It further provides for prosecution of up to 10 years in case of wilful attempt to evade tax on foreign income or assets held outside India. Any person abettingor inducing another person to make and deliver false return, account, statement or declaration shall be prosecuted with rigorous imprisonment of 6 months to 7 years. The Bill proposes for one-time opportunity to taxpayers to voluntarily disclose the undisclosed foreign income or assets. Any person who opts for this opportunity s…

Duplicate "C" Form Allowed

·2015-VIL-77-MAD ·M/s SREE KUMAR ENGINEERING WORKS Vs THE ASSISTANT COMMISSIONER (CT)
·Central Sales Tax Act, 1957 – Loss of original 'C' Form by the department – Acceptance of the duplicate copy of 'C' Form – Insistence of Declaration by means of indemnity bond – HELD - From a reading of Rule 10(2) of the Central Sales Tax (Tamil Nadu) Rules, it is clear that the petitioner is entitled to file Form of Declaration / Certificate relating to the year at any time before the final assessment of the accounts of that year. In this case, the petitioner has filed 'C' Form in original before the authority of the respondent and an endorsement has also been made by the concerned officer. The contention of the respondent relying upon Rule 12(2), by requiring the petitioner to produce the indemnity bond, cannot be accepted, as the same would be applicable only in case the petitioner had lost the original 'C' Form. The respondent in this case shall accept …

Guidelines issued by the Hon’ble Gujarat High Court in the case of Sahkari Khand Udyog Mandal Ltd vs. ACIT (Gujarat High Court).

Guidelines issued by the Hon’ble Gujarat High Court in the case of Sahkari Khand Udyog Mandal Ltd vs. ACIT (Gujarat High Court). S. 147: Strict guidelines laid down to streamline procedure for reopening of assessments There are four important stages once the AO issues notice for reopening of the assessment. Such stages are: (i) the assessee if he so wishes, may demand the reasons recorded by the AO after filing return in response to notice u/s 148 of the Act, (ii) the AO supplying such reasons to the assessee, (iii) the assessee raising objections to the notice for reopening and (iiii) the AO disposing of the objections raised by the assessee. With a view to streamlining this procedure, and to ensure, as far as possible, the AO is not faced with the unenviable task of completing the assessment proceedings in a few days left before the same became time barred, we would like to give certain directions of general implication which, we would expect, are followed by all concerned. Whil…

notifications dated 19th March 2015 and amended 3 rules

MCA has issued notifications dated 19th March 2015 and amended 3 rules:1. Companies (Meeting of Board & its Powers) Amendment Rules, 2015 : Chapter 12 : 
Removed requirement of discussion of following items only by way of Resolution at the Board Meeting :
1. to take note of appointment(s) or removal(s) of one level below the Key Management Personnel, 
2. to take note of the disclosure of director’s interest and shareholding,
3. to buy, sell investments held by the company (other than trade investments), constituting five percent or more of the paid up share capital and free reserves of the investee company, 
4. to invite or accept or renew public deposits and related matters ,
5. to review or change the terms and conditions of public deposit, 
6. to approve quarterly, half yearly and annual financial statements or financial results as the case may be.
View Notification at http://www.mca.gov.in/Ministry/pdf/Chapter12_Rules_19032015.pdf2. Companies (Management and Administration Rul…

Legal phrases

Useful for CAs... Various Legal Phrases Used in Law:-
1 Anything which you cannot do directly that you cannot do directly
2 Deeming fiction cannot be stretched beyonyd the purpose for which it is created
3 The words used in Law are not used for Nothing
4 To invoke Provision : To make use of particular provision
5 Ipso Facto: By this fact alone or because of this matter alone
6 'MAY' may be treated as 'SHALL' but 'SHALL' shall not be treated as 'MAY'
7 Tenable: Acceptable in law
8 Redundant Provision : Out of Force or Outdated Provision
9 Quasi : Almost Similar to
10 Quasi Criminal: Almost equal to criminal
11 Jurisprudence: Law relating to particular matter
12 Mensrea: Guilty Mind
13 Ibid: As printed earlier
14 Suo Moto: On its own
15 Prima Facie: On its face
16 Non est: What is not in existence / Non existing thing
17 Call in question: To challenge
18 De Nova: Completely New
19 Sine quo non: Most essential thing
20 Purposes of this Act: Proceeding must…

PF Administrative Charged Reduced

The Government of India issues notification on reducing the administrative charges under the Employees' Provident Funds Scheme, 1952 Tax Knowledge & Solution



The Ministry of Labour and Employment, Government of India, has issued a notification to revise the rate of administrative charges under the Employees' Provident Funds Scheme, 1952. The changes will be effective from 1 January 2015. EPFO (Employees Provident Fund Organisation) has cut the administrative fee it charges from nearly eight lakh employers coming under the ambit of its social security schemes, effective from January 1st 2015. The administrative charges have been reduced to 0.85% of basic wage from 1.10% as per a Labour Ministry Notification. The decision in this regard was taken by the EPFO';s apex decision making body, the Central Board of Trustees (CBT), in February last year in its meeting. According to the notification, the minimum monthly administrative charges will be Rs 75 for e…

MCA Clarification on Loans and Advances to Employees

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
NEW DELHI GENERAL CIRCULAR NO 04/2015, Dated: March 10, 2015 To All Regional Directors,
All Registrar of Companies,
All Stakeholders. Subject: Clarification with regard to section 185 and 186 of the Companies Act, 2013 - loans and advances to employees-reg. This Ministry has received a number of references seeking clarification on the applicability of provisions of section 186 of the Companies Act, 2013 relating to grant of loans and advances by Companies to their employees. 2. The issue has been examined and it is hereby clarified that loans and/or advances made by the companies to their employees, other than the managing or whole time directors (which is governed by section 185) are not governed by the requirements of section 186 of the Companies Act, 2013. This clarification will, however, be applicable if such loans/advances to employees are in accordance with the conditions of service applicab…

Amnesty Scheme for retrospective Restoration of ICAI Membership

FYI-General Amnesty Scheme for retrospective Restoration of Membership
With a view to remove the hardship of such members whose name stood removed  due to non-payment of membership fee, the Council has decided that such members be given an opportunity under the General Amnesty Scheme as one time dispensation for retrospective restoration of name keeping membership in continuity.An ANNOUNCEMENT regarding the scheme has already been hosted on our website icai.org Accordingly, such members may apply for restoration of their name retrospectively, irrespective of the period of such removal on payment of applicable membership fee  for the intervening year(s), along with Form ‘9’ and the restoration fee of Rs. 1200/-. The said scheme shall be in force till 31st March 2015.The fees can also be remitted through on-line payment (visit www.icai.org) or through cheque/demand draft drawn in favour of ‘The Secretary, The Institute of Chartered Accountants of India’ payable at Mumbai  and Form ‘9’ c…

GNL-4

MCA introduces Form GNL-4 for filing addendum for rectification of defects or incompleteness
MCA vide notification dated 24th February, 2015 has made amendment in Companies (Registration Offices and Fees) Rules, 2014 through Companies (Registration Offices and Fees) Amendment Rules, 2015 and the text of the said amendment is reproduced as below:- In the Companies (Registration Offices and Fees) Rules, 2014,- In rule 10, after sub-rule (6), the following sub-rule shall be inserted, namely:- "7. Any further information or documents called for, in respect of application or e- form or document filed electronically with the Ministry of Corporate Affairs shall be furnished in form No. GNL4 as an addendum"

Simplification of Registration Procedures in Service Tax- S.Tax Registration within 2 Days:-

Central Board of Excise and Customs specifies the following documentation, time limits and procedure with respect to filing of registration applications for single premises, which shall come into effect from 1-3-2015. Applicants seeking registration for a single premises in service tax shall file the application online in the Automation of Central Excise and Service Tax (ACES) website  www.aces.gov.in in Form ST-1. (PAN, Email and Mobile No, are Mandatory for Registration) Once the completed application form is filed in ACES, registration would be granted online within 2 days, thus initiating trust-based registration. On grant of registration, the applicant would also be enabled to electronically pay service tax. Further, the applicant would not need a signed copy of the Registration Certificate as proof of registration. Registration Certificate downloaded from the ACES web site would be accepted as proof of registration dispensing with the need for a signed copy.  The applicant …