28 November 2011


Public provident fund - interest effectIVE from 1-12-2011 notified
Notification [F.No.1/9/2011-NS.(II), dated 25-11-2011
In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968) the Central Government hereby notifies that the subscriptions made to the fund on or after the 1st day of December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 percent, per annum.

26 November 2011

CBEC Issues Customs Manual on Self Assessment

CBEC Issues Customs Manual on Self Assessment
CBEC has issued a Customs Manual on Self Assessment. The Manual covers (a) standard operating procedures, (b) compulsory compliance requirements (CCR) and (c) key aspects of Customs requirements such as classification, valuation, exemption notifications etc. for correct Self-Assessment of duty on goods imported or exported.
MC Thakur, Member, Customs, CBEC, says, "Self-Assessment is expected to usher in a new era of trust based Customs-Trade partnership leading to greater facilitation of compliant traders. Therefore, it is important that the trade takes its responsibility for making correct Self-Assessment seriously. Of course, the Departmental officials shall be readily available to resolve any doubts that the trade may have".
He adds a disclaimer, "However, it should be noted that the purpose of this Manual is to serve as a guide or advisory and it is neither exhaustive nor legally binding. Importers and exporters are advised to peruse the statutes, Rules and Regulations as well as Board's Circulars for ascertaining the correct legal provisions".
Why can't they issue a manual that is legally binding?
Filing and Processing of Bill of Entry (B/E)
++ Filing of B/E through Service Centre: The data pertaining to B/E is filed in a prescribed format at the Service Centre and a checklist is generated. While filing the B/E, the correctness of the information given therein has to be certified by the importer in the form of a declaration at its foot and any mis-declaration/incorrect details has legal consequences. The ICES system would accept Annexure for B/E only if it finds that the IGM No. and Bill of Lading (B/L) No. match the corresponding line number of the IGM. The system will accept only one declaration against a line number. If the declaration is not accepted, CHA (includes the importer) should verify the particulars The importer / CHA has to submit duly filled-in Annexure along with one copy of Invoice to the Service Centre . The Service Centre staff enters the data into the ICES system and generates Check List to be verified by the importer / CHA for correctness. On verification, if the data are found to be correctly recorded, the importer / CHA will sign the Check List and return it to the Service Centre, signalling final submission.
++ Filing of B/E through ICEGATE: The importer / CHA can file B/E remotely through ICEGATE. In this case, the ICES application validates the data and in case of errors, a negative acknowledgment mentioning the error description is sent back to the importer / CHA. In case there is no error, B/E Number is assigned to the document and an acknowledgment is sent to the importer / CHA. Thereafter, the importer / CHA can print the Check List in their premises.
++ Processing of B/E not facilitated through RMS: ICES system automatically marks the B/E to the Appraising Group for processing by Appraising Officer (AO). B/Es with assessable value of more than Rs.1 Lac are marked to Group Assistant Commissioner (AC) while others are marked directly for payment of duty. After the assessment is approved by the AC concerned, the following process takes place:
i. Assessed Copy of the B/E with examination instructions and TR-6 challan is printed at the Service Center for payment of duty. AO has the option to change tariff classification / notification / declared value etc., and raise queries for clarification. The queries raised by AO are marked to Group AC for approval.
ii. Processing status of the document can be enquired through Service Centre. In case of query, reply can be given through the Service Center. The duty is to be paid through designated banks or through e-payment mode. On receipt of duty payment message from Bank, the B/E is marked to the Appraiser (Docks). The importer / CHA should present a copy of the B/E along with duty paid challan and other documents including invoice, packing list etc. at the time of examination of the goods.
iii. Inspector / EO examines the goods and enters the examination report and in case of discrepancy, the same is reported to the Appraising Group with comments of the SA. Thereafter, the Group may revise the assessment. Otherwise, the B/E is marked to Shed Appraiser (SA) for "out-of-charge". After out-of-charge, the system generates two copies of B/E (importer's copy and the Exchange Control Copy).

23 November 2011

Proforma For Obtaining Transfer Pricing & International Tax Information

Proforma For Obtaining Transfer Pricing & International Tax Information

The CBDT has vide Office Memorandum dated 21.11.2011 proposed a proforma for obtaining information relating to Transfer Pricing and in other cases. Information on tax matters is being sought by field officers of the Income Tax Department from countries/jurisdictions with which India has Double Taxation Avoidance Agreement (DTAA) or Tax Information Exchange Agreement (TIEA) under the relevant 'Exchange of Information' Article of DTAA/TIEA through the office of competent authority viz. the Joint Secretary in the Foreign Tax & Tax Division, CBDT. Presently the above information is being sought obtained in a prescribed checklist/proforma (copy enclosed as Annexure-A). Further in the case of U.K. for obtaining banking information, a separate proforma has been prescribed by U.K. tax authorities.

16 November 2011

IndianCAs: ICAI to check No. of Tax Audit done by Each CA


Dear Professional Colleague,
As you must be aware, recently the ICAI had represented before Central Board of Direct Taxes (CBDT) seekingtax audit data based on returns e-filed during the year 2010-11. I would like to inform you that in response to the representation made to CBDT, the ICAI has been provided with the data relating tonumber of tax audits conducted by themembers along with the membership numbers of the tax auditors.
As per the data provided, the total number oftax audit returns filed in respect of thefinancial year 2010-11 was 16, 16,096 which were conducted by 59,472 auditors. The data so provided is being further processed with regard to fake membership numbers, membership numbers which exceeded the specified number (ceiling) of tax audit assignments, etc. In order to prevent misuse of membership numbers of tax auditors, we have been given assurance that from next year onwards the uploading of tax audit report along with digital signatures would be made mandatory.
Further, the ICAI has also suggested that on the basis of data of practicing Chartered Accountants provided by ICAI, a user id and a password may be made available to all practicing members so that they can view all the tax audit reports uploaded in their name, which in turn would further curb the malpractice of misusing the details of member by the assessee. A tax audit not done by the member may be then reported by him to the Income-tax Department for the action at its end.
The said suggestion found favor with the Department which has assured that the idea would be taken forward for further consideration. I would also request you to kindly provide your valuable suggestion(s) to curb the malpractices being followed further in this regard.
As regards the data being processed, we would keep you posted.
Warm Regards,
CA. G. Ramaswamy

| Ashwin Nagar | FCA and SAP-Finance & Consolidations |
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12 November 2011


Interest rates on small savings have been hiked in the range of 4 per cent up to 8.6 per cent. The investment limit for Public Provident Fund (PPF) has also been increased by Rs 30,000 to Rs 1 lakh, as also the interest rate at 8.6 per cent from 8 per cent at present.
Announcing the new norms on Friday, the Finance Ministry said the new rates will be applicable from the date of notification which will be announced soon. From next year, the rates would be notified before April 1, it added.
The small saving schemes have been restructured on the basis of the recommendations of the Shyamala Gopinath Committee, which submitted its report in June.
The rate of interest on small savings schemes will be aligned with Government Securities rates of similar maturity, with a spread of 25 basis points with two exceptions. The spread on 10-year National Savings Certificates (new instrument) will be 50 basis points and on Senior Citizens Savings Scheme 100 basis points.
The maturity period for the post office Monthly Income Scheme (MIS) and National Savings Certificate (NSC) has been reduced to five years from six years at present.


Although this is good news for small savers, collection agents are disappointed. According to an office memorandum issued by the Finance Ministry, payment of commission on PPF at the rate of 1 per cent and Senior Citizens Savings Scheme at the rate of 0.5 per cent will be discontinued.
Agency commission under all other schemes (except Mahila Pradhan Kshetriya Bachat Yojana) will be reduced by half, from the existing 1 per cent

10 November 2011

Extension of filling date for Form 8 (Statement of Accounts and Solvency) under LLP

Extension of filling date for Form 8 (Statement of Accounts and Solvency) under LLP

"Please note that as per Notification dated 04.11.2011, LLP shall file Form 8 (Statement of Accounts and Solvency) for the financial year ended 31.03.2011 with the Registrar, within a period of sixty days from 30.09.2011 i.e. from the end of six months of the financial year. "

LLP : LLP (Amendment) Rules, 2011 - Amendment in rule 24
Notification (F. No. 2/17/2011-CLV), dated 4-11-2011
In exercise of the powers conferred by sub-sections (1) and (2) of section 79 of the Limited Liability Partnership Act, 2008 (6 of 2009), the Central Government hereby makes the following rules, further to amend the Limited Liability Partnership Rules, 2009 namely :—
1. (1) These rules may be called the Limited Liability Partnership (Amendment) Rules, 2011.
(2) These rules shall come into force from the date of their publication in the Official Gazette.
2. After sub-rule (4) of rule 24 of the Limited Liability Partnership Rules, 2009, the following proviso shall be inserted, namely :—
"Provided that if a limited liability partnership has closed the financial year on the 31st March, 2011, it shall file the Statement of Account and Solvency in Form 8 with the Registrar, within a period of sixty days from the end of six months of the financial year to which the Statement of Account and Solvency relates".

09 November 2011

RBI allows transfer of shares between NRIs, residents under FDI

RBI allows transfer of shares between NRIs, residents under FDI

Transfer of shares between non-resident Indians and residents under foreign direct investments can be done without the Reserve Bank of India's approval subject to certain conditions.
This is a step towards further liberalising the procedures and policies related to FDI. In a notification issued on Friday, the RBI said transfer of shares from a non-resident to resident or from resident to non-resident under the FDI scheme can be carried out without the prior approval of the RBI.
However, the conditions include ensuring that the original and resultant investment are in line with the extant FDI policy and FEMA regulations in terms of sectoral caps, conditions (such as minimum capitalisation) and documentation, and the pricing for the transaction is compliant with the relevant SEBI guidelines such as IPO or book-building.
A certificate from a chartered accountant indicating compliance with SEBI guidelines is also required, RBI said.
Similarly, transfer of shares where the investee company (the company in which the investment is being done) is in the financial sector can be done without prior RBI approval provided that no-objection certificates are obtained from the respective financial sector regulator, RBI said.
These steps are likely to improve the flow of FDI into Indian companies as it does away with the requirement of prior approval from the RBI, said bankers

04 November 2011

NRI PAN Application

NOTIFICATION NO. 56/2011 [F.NO. 133/48/2011-SO(TPL)], DATED 17-10-2011
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1.(1) These rules may be called the Income-tax (7th Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of November, 2011.
2. In the Income-tax Rules, 1962,-
 (A)  in rule 114,-
 (a)  in sub-rule (1), after the words, figures and letter "Form 49A", the words, figures and letters, "or 49AA , as the case may be" shall be inserted:
 (b)  in sub-rule (3),—
  (i)  for the words "accounting year" wherever they occur, the words "financial year" shall be substituted;
 (ii)  after item (iii) the following item shall be inserted, namely:—
"(iv) in the case of a person who is entitled to receive any sum or income or amount , on which tax is deductible under Chapter XVII-B in any financial year, before the end of such financial year.";
  (c)  in sub-rule (4), for the words "Table below shall be accompanied by documents mentioned in Column 3" the words "Table below shall be filed in Forms mentioned in Column 3 and shall be accompanied by the documents mentioned in Column 4" shall be inserted ;

02 November 2011

MCA on Date Extension upto 31-10-2011

Attention Stakeholders!!!!
Dear Corporates please note that Companies having last date of Annual Filling as October 30th 2011 can file on October 31, 2011 also without any additional fee, on account of Oct 30th 2011 being a Sunday.
File before October 31st Midnight and save additional fee
(Note: Lean time for filing is after 8 P.M. till 9 A.M. next morning.)
In case of any technical difficulty, please contact us:
North (011-64506000), East (033-23675242/ 033-64506000), South (044-28152455/ 044-64506000), West (022-65161996/ 022-64506000) or you can write to us at appl.helpdesk@mca.gov.in.

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