30 July 2015
CBDT extends due date of filing wealth-tax return from July 31, 2015 to Aug. 31, 2015
24 July 2015
Band for GST-rates
The Bill empowered GST Council to make recommendations for the rates of goods and service tax including floor rates with bands. The Committee recommended that the word 'band' may be defined in GST laws as following:
"Band": Range of GST rates over the floor rate within which Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) may be levied on any specified goods or services or any specified class of gods or services by the Central or a particular State Government as the case may be.
In its report, The Committee mentioned that it was aware that while discharging the functions conferred upon the GST Council, it would be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services.
It can be said that while construing above definition of 'Band' one has to ensure that harmonized structure of GST-rates must not be altered.
The Committee found no merit in altering the voting pattern proposed in the Bill.
Dispute Settlement Authority
It also didn't recommend inclusion of provision for GST Dispute Settlement Authority having noted that GST Council shall decide only the 'modalities' to resolve disputes.
Definition of 'Supply'
The Bill proposed definition of 'goods and services tax' to mean any tax on supply of goods, or services or both. The Committee opined that the term 'supply' would be defined in the various GST laws relating to CGST and SGST, therefore, it would not be appropriate to define the term 'supply' in the Bill.
Definition of 'services'
The Bill proposed to define 'services' to mean anything other than goods. The Committee felt that term 'services' had been so defined in order to give it wide amplitude so that all supplies that are not goods can broadly be covered within the ambit of services and no activity remains outside the taxable net. It also opined that this would also minimize disputes. In view of the above, it proposed no change in the definition.
Additional Goods and Services Tax
The Bill proposed to levy non-Cenvatable additional tax at 1% on inter-State supply of goods. The Committee felt that the provision of 1% additional tax in its present form was likely to lead to cascading effect of taxes. Therefore, it strongly recommended that following Explanation should be added for word 'supply':
Supply: "All forms of supply made for a consideration."
Compensation to States
The Bill proposed that the Parliament 'may' compensate States for loss of revenue for a period which may be extended to five years. The Committee felt that there was no justification for substitution of the word 'may' with 'shall'. It, however, recommended that compensation should be provided for whole period of five years.
22 July 2015
With a view to contain the tendering system for attest functions, the Council at its special (338th) meeting considered the report of the Group constituted under the convenorship of CA. Tarun Jamnadas Ghia, Member, Central Council and decided as under:
1. Tendering has been prohibited in the exclusive areas of practice of chartered accountants like audit and attestation services. i.e. those areas where the assignments can be performed only by chartered accountants. In those areas, where alongwith chartered accountants, the other professionals can also apply for the tender, there is no restriction for the chartered accountants to respond to the tenders floated by authorities from time to time.
2. Members are advised to adhere to the recommended scale of fees prescribed by ICAI in the context of various professional assignments. To ensure such adherence, a member responding to a tender should be required to furnish to ICAI at the designated e-mail address email@example.com with estimated hours to be devoted by the partner/proprietor, paid CAs, other staff and the fees quoted in the tender. Such details will be furnished by the member within a period of fifteen days of his responding to the tender. If the member is successful in securing the tendered assignment, then the member will also furnish the actual hours devoted by the partner/proprietor, paid CAs and the staff within two months of completion of the assignment.
3. Members are required to maintain cost sheet in the given format while submitting any tender/bid. The format of the same can be viewed at http://188.8.131.52/38366pdc28039.pdf
4. Members are required to maintain the cost sheet compulsorily and submit a soft copy of the bid submitted by them in response to any tender within 15 days to ICAI. The office can check whether recommended scale of fees has been followed or not in those bids, to ensure adherence to quality standards.
FYI - CBDT releases Java Utility for e-filing Form 6 to declare black money
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 ('Black Money Act') has been enforced from July 1, 2015.
The Black Money Act provides for 30% tax on the value of undisclosed foreign income or assets and a penalty of three times of tax so computed. It further provides for prosecution up to 10 years in case of willful attempt to evade tax on foreign income or assets held outside India.
However, the Black Money Act allows one-time compliance window for the taxpayers to voluntarily disclose undisclosed foreign income or assets. The declaration can be made by September 30, 2015. Any person availing of benefit of compliance window is required to pay tax at the rate of 30% of value of undisclosed foreign income or asset and a penalty of 100% of tax. Such taxes and penalty are required to be paid by the declarant on or before December 31, 2015.
The Government has notified Form 6 to make declaration of undisclosed foreign income or asset under the compliance window. The taxpayer has an option to file the declaration either manually to CIT, Delhi or e-file it using the digital signature.
Therefore, for the purposes of e-filing of Form 6, the Board has released the Java utility. The taxpayer can now fill up Form 6 by downloading the Java utility from e-filing website.
After filling the relevant information in Form 6 through Java Utility, the taxpayer needs to generate the .xml file and submit it under e-filing option available after login at https://incometaxindiaefiling.gov.in. Declarant needs to attach relevant scanned documents (i.e., scanned copy of valuation report or FMV computation) in PDF or ZIP format along with XML file. The size of PDF/ZIP documents should not exceed 50MB.
Forwarded from whatsapp as received !!
21 July 2015
Members can view the Application and can Edit the Application in different stages.
However after submission of the application form members will not be able to edit the application. They would be able to view the details submitted through the Application Form and take print out of declaration/ acknowledgement and of the whole application form.
Last date for submission of applications on the website www.meficai.org is 31st August, 2015
20 July 2015
The Assessing Officer has exceeded his jurisdiction in levying fee under Section 234E while processing the statement and make adjustment under Section 200A of the Act. Therefore, the impugned intimation of the lower authorities levying fee under Section 234E of the Act cannot be sustained in law. However, it is made clear that it is open to the Assessing Officer to pass a separate order under Section 234E of the Act levying fee provided the limitation for such a levy has not expired
17 July 2015
RBI Issues New Guidelines on Concurrent Auditing at Branches
The Reserve Bank on Thursday said the concurrent audit at bank branches should cover at least half of their advances and deposits.
The concurrent audit system is regarded as part of a bank's early warning system to ensure timely detection of irregularities and lapses.
"Concurrent audit at branches should cover at least 50 per cent of the advances and 50 per cent of deposits of a bank," RBI said in a notification.
It said branches rated as high risk or above in the last risk-based internal audit (RBIA) or serious deficiencies found in internal audit are subject to concurrent audit.
The audit will also be applicable on all specialized branches like large corporate, mid corporate, exceptionally large/very large branches, SMEs and all centralised processing units like loan processing units (LPUs).
Besides, it would include service branches, centralized account opening divisions, wealth and portfolio management services, card products divisions, data centres and treasury/ foreign exchange business, investment banking, among others.
The concurrent audit also helps in preventing fraudulent transactions at branches.
The main role of concurrent audit is to supplement the efforts of the bank in carrying out simultaneous internal check of the transactions and other verifications and compliance with the procedures laid down, the RBI said.
The scope of concurrent audit should be wide enough or focused to cover certain fraud-prone areas such as handling of cash, deposits, advances, foreign exchange business, off-balance sheet items, credit-card business, Internet banking, it added.
The regulator said appointment of an external audit firm for concurrent audit may be initially for one year and extended up to three years, after which an auditor could be shifted to another branch, subject to satisfactory performance.
14 July 2015
CBDT introduces Electronic Verification Code (EVC) system as an alternate mode of verification to manually signed ITR-V (acknowledgment).
CBDT Notification No. 2/2015 Dated 13-July-2015 regarding
EVC, a ten digit alpha-numeric code, to be provided using any of the 4 methods, namely –
a) internet banking ,
b) AADHAR authentication ,
c) Bank ATM card and
d) combination of registered email and mobile number (where income is below Rs 5 lakhs).
EVC to be generated from E-filing website, generation process may vary based on risk category of taxpayer.
EVC unique to an assessee's PAN, one EVC can be used to validate one return of the assessee irrespective of the AY or return types.
EVC to be stored against assessee’s PAN and shall be valid for 72 hours (except in case of Aadhaar authentication)
The Notification is available at
Further EVC would verify the identity of the person furnishing the return of income. The mode and process for generation and validation of EVC, a user manual was prepared which is available at
https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/e-Verification_User_Manual.pdf. CA RAJIV SHUKLA
13 July 2015
Notification No. 2/2015 regarding Electronic Verification Code (EVC) for electronically filed Income Tax Return as an alternative mode of verification released. [Refer Notification No. 2/2015 dated 13/07/2015] https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/EVC_notification.pdf
EVC would verify the identity of the person furnishing the return of income .To know more about the modes and process for generation and validation of EVC https://incometaxindiaefiling.gov.in/eFiling/Portal/StaticPDF/e-Verification_User_Manual.pdf
11 July 2015
Mr. Shaktikanta Das, Revenue Secretary of India and Mr. Richard Verma, U.S. Ambassador to India signed here today , an Inter Governmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) to promote transparency between the two nations on tax matters. The agreement underscores growing international co-operation to end tax evasion everywhere. The text of the signed agreement will be available on the website of the Indian Income Tax Department (www.incometaxindia.gov.in) and the website of U.S. Treasury (www.treasury.gov).
The United States (U.S.) and India have a long standing and close relationship. This friendship extends to mutual assistance in tax matters and includes a desire to improve international tax compliance. The signing of IGA is a re-affirmation of the shared commitment of India and USA towards tax transparency and the fight against offshore tax evasion and avoidance.
Revenue Secretary, Shaktikanta Das stated, "Signing the IGA with U.S. to implement FATCA today, is a very important step for the Government of India, to tackle offshore tax evasion. It reaffirms the Government of India's commitment to fight the menace of black money. It is hoped that the exchange of information on automatic basis, regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity in to the direct tax regime which necessary for a healthy economy."
Ambassador Verma, who signed on behalf of the United States, stated, "The signing of this agreement is an important step forward in the collaboration between the United States and India to combat tax evasion. FATCA is an important part of the U.S. Government's effort to address that issue."
FATCA is rapidly becoming the global standard in the effort to curtail offshore tax evasion. To date, the United States has IGAs with more than 110 jurisdictions and is engaged in related discussions with many other jurisdictions.
The United States enacted FATCA in 2010 to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) who do not agree to identify and report information on U.S. account holders. As per the IGA, FFIs in India will be required to report tax information about U.S. account holders directly to the Indian Government which will, in turn, relay that information to the IRS. The IRS will provide similar information about Indian account holders in the United States. This automatic exchange of information is scheduled to begin on 30th September, 2015.
Both the signing of the IGA with U.S. as well as India's decision to join the Multilateral Competent Authority Agreement (MCAA) on 3rd June, 2015 are two important milestones in India's fight against the menace of black money as it would enable the Indian tax authorities to receive financial account information of Indians from foreign countries on an automatic basis.
07 July 2015
The CBEC has issued Notification for maintenance of electronic records and issuing invoices with Digital Signature.
The assessee can now maintain the records on daily basis in respect of goods produced or manufactured, opening balance, quantity removed etc. In the electronic format and can also be preserved in electronic format provided every page of the records maintained has digital signature.
Invoice issued under this rule may be authenticated by means of digital signature provided the duplicate copy of the invoice meant for transporter is digitally signed and a hard copy of such transporter copy of the invoice duly self attested by the manufacturer is used for transport of goods.
05 July 2015
- Act: Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999. Return to be filed under A.P. (DIR Series) Circular No.145 dated June 18, 2014 and submitted to the Department of Statistics and Information Management, RBI, Mumbai
- Applicability: It is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who hold foreign Assets or Liabilities in their balance sheets
- Due Date: FLA Return is mandatory under FEMA 1999 and companies are required to submit the same based on audited/ unaudited account by July 15 every year through official email id of any authorized person of company like CFO, Director, Company Secretary at firstname.lastname@example.org
- Format: The FLA Return has to be submitted in excel based format, which has inbuilt checks and validations. The latest format of FLA Return is available on RBI's web site at the following link:
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