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Showing posts from June, 2015

CA Business Relationship-Sec 288

CBDT notifies nature of business relationship which CA can have with client to ensure his independence
Change in the Definition of term "accountant" – Section 288 (Finance Act,2015)
The amended definition specifically excludes the following persons, for the purposes other than for representing the assessee-
viii) Any person who, whether directly or indirectly, has BUSINESS RELATIONSHIP with the assessee of such nature as may be prescribed.
Now CBDT notifies nature of Business Relationship  which CA can have with client.

Case Law on VAT transfer to Service Tax

Interesting Case: Where VAT has been collected without authority of law and Service tax demand also has been raised for the same period then the VAT Assessing Authority is liable to transfer amount of VAT to Service Tax Department
Idea Cellular Ltd. Vs. Union of India [(2015) 57 293 (Punjab & Haryana)] Idea Cellular Limited (the Petitioner) is engaged in the business of cellular services and as a part of its business activated SIM cards. The Assessing Authority collected VAT on the premise that activation of SIM cards was a sale.
The Hon'ble Supreme Court in the case of Bharat Sanchar Nigam Ltd. Vs. Union of India [(2006) 3 STT 245] held that activation of SIM card was a service and not a sale. Accordingly, the Service Tax Department raised demand of Service tax for the period, VAT was already been paid. Thus, the Petitioner approached the Haryana VAT Department for refund of the amount of VAT.
The Hon'ble High Court of Punjab and Haryana held as fo…

Case Law on Section 234E

234E Fee deleted in the absent of the enabling provisions u/s 200A The Hon'ble Amritsar bench has given a landmark judgement on the issue of 234E Fee levied prior to June,2015 in the case of Sibia Healthcare Private Limited v./s Dy. Commissioner of Income-tax (TDS), in I.T.A. No.90/Asr/2015 and has deleted the addition- The Hon'ble Tribunal held as under:- " in our considered view, the adjustment in respect  of  levy  of  fees  under  section  234E  was  indeed  beyond  the  scope  of permissible  adjustments  contemplated  under  section  200A.  This  intimation  is  an appealable order  under  section  246A(a),  and, therefore, the CIT(A) ought  to have examined  legality  of  the  adjustment  made  under  this intimation  in  the  light  of  the scope of the section 200A. Learned CIT(A) has not done so. He has justified the levy of fees on the basis of the provisions of Section 234E. That is not the issue here. The issue is whether such a levy could be eff…

LFAR by Concurrent Auditors

Submission of Long Form Audit Report (LFAR) by Concurrent Auditors
June 4, 2015 CMD of Nationalized Banks
Chairman SBI
MD of Associate Banks of SBI
Madam/Dear Sir,
Submission of Long Form Audit Report (LFAR) by Concurrent Auditors In terms of enclosure 1 of RBI circular DBS.CO.PP.BC.11/11.01.005/2001-2002 dated April 17, 2002 all the banks were advised, inter alia, as under:
LFAR in respect of branch should be addressed by the branch auditors to the Chairman of the bank, concerned with a copy thereof to the Central Statutory Auditors.
2. The above matter has been examined in light of Para B (1) (ii) of Guidelines for Appointment of Statutory Auditors in Public Sector Banks hosted on RBI web site (at link which is reproduced below:
In respect of branches below the cut-off point, which are subject to concurrent audit by chartered accountants, hence…

CBDT Clarification on Prosecution of Tax Evaders

Press Information Bureau
Government of India
Ministry of Finance
08-June-2015 18:51 IST CBDT Clarifies Regarding Prosecution of Tax Evaders;
Effective and Stringent Action only in known and big cases of Tax Evasion to Demonstrate to the Large Number of Compliant Tax Payers that the Tax Laws are just and Fair and to Encourage Voluntary Tax Compliance

It has been noticed that the certain section of media have referred to the Discussion Paper, circulated during the All India Conference of Chief Commissioners and Director Generals of Income Tax held on 25th-26th May 2015, out of context and stated that the Central Board of Direct Taxes (CBDT) has told its officers to go beyond raids and searches to target tax evaders. CBDT clarifies that this is factually not correct. It may be appreciated that the need of the hour is to provide effective deterrence since the soft action in extreme and big cases of tax evasion affects the behaviour of the compliant tax payers…

Chintan Patel ~Exemptions to Private Limited Companies as per recent MCA notification:

Exemptions to Private Limited Companies as per recent MCA notification:1.       Holding, associate, subsidiary or fellow subsidiary will not be related party for the purpose of Section 188 (2(76)).2.       Provision wrt Kind of share capital (Section 43) and voting rights (Section 47) will not apply if articles of private limited company so provides3.       Number of companies in which auditors can be auditors (20 in number) will not be counted if paid up capital of private company is less than Rs.100 crores (Section 141)4.       Section 101 to 107 and Section 109 will not apply (notice of general meeting, explanatory statement, proxies etc., which were exempt under Old Act also) if articles so provide5.       Section 62 – minimum and maximum period for which rights issue should remain open will not be applicable if 90% of members give consent6.       Section 62- ESOP can be given with Ordinary resolution instead of special resolution7.       Board resolutions passed under Section 179…

Non-deposit of Tax Deducted at Source

No. 275/29/2014-IT-(B)New Delhi, the 1st June, 2015To,The CCsIT (CCA)Subject: Non-deposit of Tax Deducted at Source – regarding. Sir/Madam,Grievances have been received by the Board from many taxpayers that in their cases the deductor has deducted tax at source from payments made to them in accordance with the provisions of Chapter-XVII of the Income-tax Act, 1961 (hereafter ‘the Act’) but has failed to deposit the same into the Government account leading to denial of credit of such deduction of tax to these taxpayers and consequent raising of demand.2. As per Section 199 of the Act credit of Tax Deducted at Source is given to the person only if it is paid to the Central Government Account. However, as per Section 205 of the Act the assessee shall not be called upon to pay the tax to the extent tax has been deducted from his income where the tax is deductible at source under the provisions of Chapter- XVII. Thus the Act puts a bar on direct demand against the assessee in such cases an…

GST-Formation of Two Committees

Press Information Bureau
Government of India
Ministry of Finance
17-June-2015 17:15 IST Finance Minister approves the formation of 2 Committees for facilitating implementation of Goods and Services Tax from 1.4.2016.

Finance Minister has approved the formation of 2 Committees for facilitating implementation of Goods and Services Tax from 1.4.2016.

A Steering Committee been formed under the Co-Chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This Committee has Members from Department of Revenue, Central Board of Excise & Customs, Goods and Services Tax Network (GSTN) and representatives of State Governments. This Committee shall monitor the progress of IT preparedness of GSTN/CBEC/Tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The Committe…

An opportunity to file 6 year ITR where TDS remain unclaimed.

Presently , An  Assessee Can only file return for last 2 years and claim refund if any due and not beyond that. In case he missed to file return within prescribe timeline he has no choice other than to forget his refund claim. Income Tax Department in Latest circular No 9/ 2015  has guided on how an assessee who has failed to file return and claim Refund according to section 119(2) (B) can now make an application and get Refund due up to last 6 Assessment years.
In case the amount is less than Rs 10 Lacs CsIT for any one assessment year.  The Application shall be made to the Pr.CsIT/CIT.  CIT will review the application & communicate with reason acceptance/rejection of such applications/claims.--In case the amount is more than Rs 10 Lacs the Application to be made to Chief Commissioner of Income Tax--In case the amount is more than Rs 50 Lacs then to CBDT.
Condonation Application can be file up to six previous years---E…

100 things of TAX for common man.!!

Dear All100 things of TAX for common man.!!

Income Tax:

1)      Detailed information of Income Tax is available on
2)      As per Income Tax Act, Income is taxable under five heads- Salary, House Property, Business or Profession, Capital Gain and Other Sources.
3)      Salaried person must obtain Form 16 from his Employer Every Year.
4)      Income Tax Return should be filed by considering Form 16 and other Income.
5)      Transport Allowance is exempt up to Rs. 1,600 per month.
6)      30% Standard deduction is available on Income from House Property.
7)      Income to be considered as deemed let out on second House property.
8)      For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200,000/- and for other house property actual expenditure of Interest on Housing Loan is allowed.
9)      Repayment of Principal amount of Housing Loan is deductible u/s 80C up to Rs. 150,000/-.
10)  Tax Audit is compulsory if sales turn…

MCA Notifications

MCA has released notification dated 29th May,2015 notifying the said date as the effective date of provisions of Section 1 to 12 and  15 to 23 of the Companies (Amendment) Act, 2015. All sections of the amendment act have been made effective w.e.f. 29th May, 2015 except the sections relating to Section 143 (related to 'fraud') and 177 (related to omnibus approval by audit committee) of Companies Act, 2013.

Five Related amendment Rules have also been released today in Companies (Registration Offices and Fees) Rules, Companies (Registration of Charges) Rules, Companies (Declaration and Payment of Dividend) Rules, Companies (Incorporation) Rules and Companies (Share Capital and Debentures) Rules.

Highlights of each of the Amendment Rules are as under:

1. Companies (Incorporation) Second Amendment Rules, 2015 – The Incorporation Rules have also been amended by inserting a new proviso in rules 12 pursuant to which if pursuing of any objects require any Sectoral regulator's appr…

ITR Simplified

Ministry of Finance31-May, 2015 13:53 IST Income Tax Return Forms ITR 1, 2 and 4S Simplified for Convenience of the Tax Payers; A New Form ITR 2A Proposed which can be Filed by an Individual or HUF who does not have Capital Gains, Income from Business/Profession or Foreign Asset/Foreign Income;In Form ITR 2 and the New Form ITR 2A, the Main Form will not Contain more than 3 Pages, and other Information will be Captured in the Schedules which will be Required to be filled only if applicable;As the Software for these Forms is under Preparation, they are likely to be available for e-filing by 3rd week of june 2015;Time Limit for Filing these Returns is also Proposed to be Extended up to 31.08.2015; Only  Passport Number, if available, would be required to be given in forms Itr-2 and itr-2A. Details of Foreign Trips or Expenditure thereon are not required to be FurnishedForms ITR 1, 2 and 4S for Assessment Year 2015-16 were notified on 15th April 2015 (15.04.2015). In view of …