30 September 2013


The Government introduced Service tax Voluntary Compliance Encouragement Scheme (the Amnesty Scheme) vide Union Budget 2013. The purpose of this Scheme is to provide for one-time waiver in respect of interest, penalty and immunity from prosecution for tax defaults (non-payment of tax) upon settlement of tax dues in a specified manner.
 In this regard, in a recent ruling of Allahabad High Court (the High Court) in the case of Anand Caterer, the High Court has held that when any taxpayer has filed an application under the Amnesty Scheme even after a demand notice/ Order has been being issued, no recovery proceedings could be undertaken until such application has been disposed off.

28 September 2013

Reset of password ofITD website

Reset of password on ITD website with registered digital sigbature activated. Helpful for assessess who have forgot thier credentials. Happy efiling..

27 September 2013

Income tax Department under Gujarat Region open on weekends

All Offices of Income tax Department under Gujarat Region will remain open on Saturday, 28th September 2013 and Sunday 29th September 2013 for accepting  Income Tax Returns and Tax Audit Reports in physical form.

Further on Monday 30th September 2013 the same will remain open till 08.00 pm. for accepting  Income Tax Returns and Tax Audit Reports in physical form.

Audit Filling Extension-Press release

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes


26th September, 2013

          It has come to the notice of the  CBDT that may assessees who are required to file their income tax returns by September 30, 2013 are finding it difficult to upload the report of Audit electronically as prescribed under the proviso to sub-rule(2) of Rule 12 of the IT Rules for the Assessment Year 2013-14.  Therefore, the CBDT has decided to extend the time for furnishing the report of Audit electronically till October 31, 2013.  However, the assessees are required to file the report of Audit manually with the jurisdictional Assessing Officer by the prescribed due date, i.e. September 30, 2013.  The assessees are also required to file their returns of income electronically by the prescribed due date, i.e. September 30, 2013.

(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Policy Co-ordination)
  Official Spokesperson, CBDT

18 September 2013

Safe Harbour Rules Finalized

Press Information Bureau 
Government of India
Ministry of Finance 
18-September-2013 15:49 IST
Safe Harbour Rules Finalized after Considering Comments of Various Stake Holders ; Rules to be Applicable for 5 Assessment Years Beginning from Assessment Year 2013-14 

            Section 92CB of the Income-tax Act provides for framing of safe harbour rules. The determination of arms length price u/s 92C or 92CA of the Act is subject to these safe harbour rules. The definition of safe harbour rule provided in section 92CB means circumstances in which the Income-tax Authority shall accept the transfer price declared by the assessee.

            The draft safe harbour rules were placed in public domain along with Central Board of Direct Taxes (CBDT) Press Release on 14.08.2013 seeking comments of various stake holders. The comments received from various stake holders have been considered and necessary modifications have been made to the draft rules. The finalized safe harbour rules are being notified separately. The salient feature of the modifications incorporated in the final safe harbour rules are:-

(i)                 The safe harbour rules shall be applicable for 5 assessment years beginning from assessment year 2013-14.

(ii)               An assessee can opt for the safe harbour regime for a period of his choice but not exceeding 5 assessment years. This option can be exercised by filing of Form 3CEFA which has been prescribed in the rules.

(iii)             In case of transactions in the nature of routine ITES and ITS activities  the  earlier ceiling of Rs 100 crore has been removed. Transactions upto Rs. 500 crore have been provided safe harbour margin of 20% and transaction above Rs.500 crore  have been provided safe harbour margin of 22% .Similarly, the ceiling of Rs. 100 crore provided for transactions in the nature of corporate guarantee has been removed. The Safe harbour would be available in case of transactions above Rs 100 crore only if the wholly owned subsidiary has been rated to be of adequate to highest safety by a rating agency registered with SEBI. The safe harbour margin for such transactions above Rs 100 crore has been reduced to 1.75% of the amount guaranteed.

(iv)             The definition of Knowledge process outsourcing (KPO) has been rationalized to provide reasonable distinction from routine business process outsourcing activity. The safe harbour operating margin has been reduced from 30% to 25%. Further the ceiling in respect of KPO transactions has been removed.

(v)               The safe harbour provisions would be available only if the assessee satisfies the eligibility conditions provided in the rules and in respect of such international transactions which are eligible for safe harbour as provided in the rules.

(vi)             The rules provide for a time bound procedure for determination of the eligibility of the assessee and the international transactions. Any rejection of the option exercised by the assessee shall be by way of a reasoned order passed after hearing the assessee. The assessee shall have a right to file an objection with the Commissioner against adverse finding regarding the eligibility. The Commissioner shall thereafter decide about the validity of the option exercised by the assessee.

(vii)           In case the action is not taken by any of the authorities within the following time lines  provided in the rules the option exercised by the assessee shall be treated as valid,:-

(a)    the reference by the Assessing Officer (AO) to the Transfer Pricing Officer (TPO) shall be made within a period of two months from the end of the month in which Form No.3CEFA is received by him;
(b)   the TPO shall pass an order determining the validity of the option exercised by the assessee within a period of two months from the end of the month in which reference from AO is received by him;
(c)    the Commissioner shall pass an order on the objection received from the assessee within a period of two months from the end of the month in which the objection has been received by him.

(viii)         Once the option exercise by the assessee is held to be valid it shall remain so for the period opted unless the assessee voluntarily opts out of safe harbour regime by furnishing a statement to this effect to the Assessing Officer.

(ix)             The assessee shall be required to submit a statement regarding the quantum of international transaction, its nature and the operating margins or rate of interest or commission for the relevant assessment years covered under the period for which safe harbour is option is exercised.

(x)               The option exercised by the assessee can be held invalid in an assessment year following the initial assessment year only if there is change in the facts and circumstances relating to the eligibility of the assessee or of the international transaction. However, such withdrawal shall be done only after providing opportunity of being heard to the assessee.  The assessee has a right to file his objection with the Commissioner, who shall after hearing the assessee determine the validity of the option.


13 September 2013

Alert on ITR Vs

Notification for Extension of date for receipt of ITR-Vs in CPC, Bengaluru, for the cases of AY 2012-13 and 2011-12 received in e-filed in FY 2012-13

12 September 2013

Alert on Advance Tax

Ministry of Finance12-September, 2013 15:26 IST
Payment of Quarterly Advance Tax on or before 15th September, 2013; All Designated Branches of Authorized Banks to Function on 14th and 15th September, 2013 (Saturday & Sunday) 
All designated branches of authorized banks have been asked to function on 14th and 15th September, 2013 (Saturday & Sunday) to accept advance tax payments. If any tax payer fails to pay the advance tax on 14th/15th September, 2013, then he/she can make the payment even on 16th September, 2013. 

Payment of Quarterly Advance Tax on or before 15th September, 2013 by the tax payers is a statutory requirement. All such tax payers who are liable to pay advance tax must make payments in the designated branches of the banks authorized to accept tax payments. 


(Release ID :99304)

10 September 2013

Draft Rules under Companies Act,2013

This e-platform for receiving suggestions on draft rules under the Companies Act 2013 has been developed in a user friendly and interactive manner, and will facilitate collation and analysis of suggestions/comments received on the draft rules. Stakeholders are requested to use this platform for providing their suggestions and comments on the draft rules.

30 days left for giving Suggestions on Rules

06 September 2013

Revised Form 15CA-15CB

The CBDT has issued Twelfth Amendment Rules on August 5, 2013 vide Notification No. 58/2013 whereby it amended Rule 37BB and prescribed new Forms 15CA and 15CB. However, within a couple of weeks, the CBDT issued one more amendment to Rule 37BB in suppression of earlier notification (amendment rules).
The new Forms provide for two categories (.i.e., Part A and Part B of Form 15CA) on which remittances are required to be reported. It provides that only taxable remittances (including salary or interest) are required to be reported in Form 15CA.
Before the Twelfth Amendment Rules, the payers were required to submit the remittance details in Form 15CA and they were also required to obtain certificate under Form 15CB, notwithstanding whether the payee was liable to tax in India or not? Then Twelfth Amendment Rules extended some relaxation and provided immunity from obtaining certificate under Form 15CB for certain remittances. Now Fourteenth Amendment Rules provide exemption from filing of Form 15CA if remittance is not chargeable to tax in the hands of payee, it also provides immunity from obtaining Form 15CB if the taxable remittances are covered by Part A of new Form 15CA.

05 September 2013

Statement by Dr. Raghuram Rajan on taking office on September 4, 2013

Date : 04 Sep 2013
Dr. Raghuram Rajan assumes charge as Governor, RBI

Dr. Raghuram Rajan assumed charge as the 23rd Governor of the Reserve Bank of India on September 4, 2013. Prior to this, he was the Chief Economic Advisor, Ministry of Finance, Government of India and the Eric J. Gleacher Distinguished Service Professor of Finance at the University of Chicago's Booth School. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund.
Dr. Rajan's research interests are in banking, corporate finance, and economic development, especially the role finance plays in it. He has co-authored Saving Capitalism from the Capitalists with Luigi Zingales in 2003. He then wrote Fault Lines: How Hidden Fractures Still Threaten the World Economy, for which he was awarded the Financial Times-Goldman Sachs prize for best business book in 2010.
Dr. Rajan is a member of the Group of Thirty. He was the President of the American Finance Association in 2011 and is a member of the American Academy of Arts and Sciences. In January 2003, the American Finance Association awarded Dr. Rajan the inaugural Fischer Black Prize for the best finance researcher under the age of 40. The other awards he has received include the global Indian of the year award from NASSCOM in 2011, the Infosys prize for the Economic Sciences in 2012, and the Center for Financial Studies-Deutsche Bank Prize for financial economics in 2013.
Born on February 3, 1963, Dr. Rajan is married to Radhika and has two children.
Alpana Killawala
Principal Chief General Manager
Press Release : 2013-2014/489

03 September 2013

Customs Baggage Regulations,2013

90/2013 Dated 29-8-2013 - Customs - Non Tariff - Customs Baggage Declaration Regulations, 2013

[To be published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i)]
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 90/2013-Customs (N.T.)
New Delhi
Dated the 29th August, 2013
G.S.R.     - In exercise of the powers conferred by clause (a) of section 81 of the Customs Act, 1962, the Central Board of Excise and Customs hereby makes the following regulations, namely:—
1. Short title. - These regulations may be called the Customs Baggage Declaration Regulations, 2013.
2. Extent of application. - These regulations shall apply to baggage including any package comprised therein of the passengers coming to India. These regulations will come into effect w.e.f. 1st January, 2014.
3. Method of Declaration of Baggage. - All passengers who come to India shall declare their accompanied baggage in Form I appended to this regulation.
[F. No. 520/13/2013-Cus.VI]
(S.C. Ganger)
Under Secretary to the Government of India

01 September 2013


CBDT Instruction Regarding Unmatched TDS Challans In Form 26AS

August 31st, 2013
Pursuant to the judgement of the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273, the CBDT has issued Instruction No. 11 of 2013 dated 27.08.2013 stating that where the report by the deductor in the TDS statement are not found available in the OLTAS database resulting in TDS mismatch, the CPC(TDS)/ AOs(TDS) shall immediately issue letters to the deductors, in whose case TDS challans are unmatched, with a view to verify and correct these challans. If necessary, the deductors may be asked to file correction statements, as per the procedure laid down and necessary follow up action be taken. It has been directed that the task should be completed by 31st December 2013 for FY 2012-13 in the case of CPC (TDS) and FYs 2011-12 & earlier in case of AOs (TDS)

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