Sep 30, 2013

Income tax department extends due date of filing of returns to 14 October 2013

11:01 PM 0
Income tax department extends due date of filing of returns to 14 October 2013
Income tax department extends due date for filing of returns from 30 September to 14 October 2013 for the assessee of Gujarat. Income tax department issued an order in respect of extension of due date for the assessee of Gujarat in the view of heavy rain and flood in the state of Gujarat. 

Income tax new amend rules and new form 34EA

10:56 PM 0
Income tax new amend rules and new form 34EA
Income tax department amend the income tax rules and inserted a new form 34EA of income tax act. Income tax department issued a new notification no. 76/2013 dated 24 September 2013 about new rules and form 34EA. Full notification and form 34EA is as under.

Sep 29, 2013

Husband can get HRA exemption on rent paid to his wife

9:45 PM 0
Husband can get HRA exemption on rent paid to his wife
In the instant case the AO disallowed assessee's claim for HRA exemption on the ground that assessee and his wife were living together and claim of payment of rent by assessee to his wife was made to reduce his tax liability. The CIT(A) confirmed the addition on the ground the tenant (i.e., assessee) and landlord (i.e., his wife) were staying together which indicated that the whole arrangement was a colourable device. Aggrieved assessee filed the instant appeal.

The Tribunal held in favour of assessee as under:

1) The section 10(13A) provides that exemption would be allowable to an assessee for any allowance granted to him by his employer to meet expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the him;

2) However, the exemption is not available in case the residential accommodation occupied by the assessee is owned by him or the assessee has not actually incurred expenditure on payment of rent;

3) Admittedly, the AO had given a finding of fact that the assessee and his wife were living together as a family. Therefore, it could be inferred that the house owned by wife of the assessee was occupied by the assessee also;

4) The assessee had submitted the rent receipt(s) and payments had been duly verified. Therefore, the assessee had fulfilled the twin requirements of the provision, i.e., occupation of the house and the payment of rent. Thus, he was entitled to exemption under section 10(13A) - BAJRANG PRASAD RAMDHARANI V. ACIT (2013) 37 taxmann.com 186 (Ahmedabad - Trib.)

Sep 28, 2013

No free look period of new health policies of less than one year- New rules

10:31 PM 0
No free look period of new health policies of less than one year- New rules
IRDA has issued a circular no. 191 dated 29 September 2013 about the amendment in health insurance norms. This includes no look up period for ne health insurance policy of less than one year. Full circular is as under.

CIRCULAR NO. IRDA/HLT/REG/CIR/191/09/2013, DATED 26-9-2013

Reference is drawn to the captioned Regulations notified on 16th February, 2013. In response to representations received from the industry, a re-examination of some of the provisions has been carried out. Now, in exercise of powers under section 14(2) of the IRDA Act, 1999, the following amendments are being carried out and may be noted:

A. Regulation 5: General Provisions relating to Health Policies:
1. Free look period:
 Existing provision: Regulation 5(g): 'All health insurance policies shall have a free look period. The free look period shall be applicable at the inception of the policy...'

Modification: Regulation 5(g): All new individual health insurance policies except those with tenure of less than a year shall have a free look period. The free look period shall be applicable at the inception of the policy...'

2. Cumulative Bonus:
 Existing provision: Regulation 5(i)(iii): Cumulative bonus may not be allowed on benefit based policies.'

Modification: Regulation 5(i)(iii): Cumulative bonus may not be allowed on benefit based policies with the exception of Personal Accident cover.

3. AYUSH coverage:
Existing provision: Regulation 5(I)(i), ' Insurers may provide coverage to non-allopathic treatments provided the treatment has been undergone in a government hospital or in any institute recognized by government and/or accredited by Quality Council of India/National Accreditation Board on Health or any other suitable institutions.'

Modification: Regulation 5(I)(i),' Insurers may provide coverage to non-allopathic treatments provided the treatment has been undergone in a government hospital or in any institute recognized by government and/or accredited by Quality Council of India/National Accreditation Board on Health.'
Tags-new mediclaim rules,new health insurance rules,health insurance new rule,new rule of look up period,look up period rule mediclaim,mediclaim health insurance rule

Excise changes the CENVAT credit rules for capital goods

9:30 AM 0
Excise changes the CENVAT credit rules for capital goods
Central excise department has changed the CENVAT credit rules for capital goods. Central excise department issued a notification no. 12/2013 dated 27 September 2013. Full notification is as under.

G.S.R. (E).- In exercise of the powers conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely:-

1.             (1) These rules may be called the CENVAT Credit (Second Amendment) Rules, 2013.

(2) They shall come into force on the date of their publication in the Official Gazette.

2.             In rule 3 of the CENVAT Credit Rules, 2004, for sub-rule (5A), the following sub-rule shall be substituted-

“ (5A) (a) If the capital goods, on which CENVAT credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:-


(i)     for computers and computer peripherals:



for each quarter in the first year @ 10%     
for each quarter in the second year @ 8%
for each quarter in the third year @ 5%
for each quarter in the fourth and fifth year @ 1%

(ii)    for capital goods, other than computers and computer peripherals @ 2.5% for each quarter:

Provided that if the amount so calculated is less than the amount equal to the duty leviable on transaction value, the amount to be paid shall be equal to the duty leviable on transaction value.

(b) If the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on transaction value.”


Sep 27, 2013

Download latest file validation utility FVU 4.0 e-TDS software

5:57 PM 0
Download latest file validation utility FVU 4.0 e-TDS software
Tin.nsdl has launched latest FVU( File validation utility) version 4.0 for preparing e-TDS/TCS quarterly statements. FVU version 4.0 will be mandatory from 1 October 2013. Up to 30 September both FVU version 3.9 and 4.0 are applicable. There are many new features in new version of FVU 4.0 which are as follows.

Change in validation of Section code 194LC:

o Section code 194LC will be applicable only for deductor category (as per the statement) “Company” and “Branch of Company”.

o This validation will apply for regular and correction statements.

Incorporation of new section code 194LD: This Section code will be applicable for:

o Regular and correction statements pertaining to FY 2013-14 and onwards.

o Statement pertaining to Form no. 27Q.

Nil challans/transfer vouchers with deductee record: Validation as below will be applicable:

o Nil challans/transfer vouchers need to mandatorily have deductee records.

o In deductee records, flag in the remarks for lower or non-deduction should be “A”, “B”, “Y”, “S”, “T” or “Z” (as applicable).

o This validation will apply for regular and correction statements.

Last provisional receipt number to be quoted in regular TDS/TCS statements: Deductors are require to mandatorily quote the last accepted provisional receipt number of the regular quarterly TDS/TCS statement. 

Date of deposit of Non-nil Challan: Validation for Date of deposit of non-nil challan has been relaxed. This date can pertain to immediate previous financial year of the statement.

FVU version 3.9 and 4.0 are applicable upto September 30, 2013. Further, FVU version 4.0 would be mandatory from October 01, 2013.
Download latest version of FVU version 4.0
Tags-fvu version 4.0,latest fvu version,fvu version 4,e-tds fvu,fvu 4.0 e-tds,download fvu 4.0,download fvu 4,fvu 4 latest tds sodtware

Download latest Return preparation utility RPU 3.7 for e-tds statements

5:48 PM 0
Download latest Return preparation utility RPU 3.7 for e-tds statements
Tin.nsdl has launched latest return preparation utility software version 3.7 for e-tds/tcs statements. This latest version RPU 3.7 prepares regular and corrective statements pertaining to financial year 2013-14 and onwards. New version of RPU 3.7 has many new features which are as follows.

Two new fields as below have been added for regular TDS/TCS statements pertaining to all financial years:

1) Has regular statement for Form XXXQ filed for earlier period – Here deductors are required to select from the drop down, ‘Yes’ if regular statement for Form 24Q or 26Q, 27Q or 27EQ (as applicable) has been filed earlier, otherwise ‘No’ value to be selected.

2) Receipt No. of earlier statement filed for Form (24Q/26Q/27Q/27EQ) – In this field deductors who have filed regular statement earlier period (for the said Form no.)  are required to mandatorily quote 15 digit provisional receipt number of immediate previous TDS/TCS statement filed.

New section code 194LD (i.e. 4LD in RPU) has been incorporated in RPU 3.7 for Form 27Q. This Section code will be applicable for regular and correction statements pertaining to FY 2013-14 onwards.

Update allowed for Provisionally booked Transfer voucher: Provisionally booked transfer vouchers are also allowed to update on fields ‘Form 24G receipt No.’, ‘Date on which tax deposited’ and ‘DDO/Transfer Voucher Serial No.’. 

Incorporation of latest FVU Version 4.0 and 2.136.
Download latest rpu version 3.7
Tags- rpu version 3.7,rpu 3.7,latest rpu 3.7,rpu version 3.7,e-tds rpu,latest e-tds software,download rpu 3.7,rpu 3.7 free download

Sep 26, 2013

Tax audit due date extended to 31 October 2013

6:52 PM 2
Tax audit due date extended to 31 October 2013
The Income tax department has extended due date of audit report from 30 September to 31 October 2013. The Income tax department has issued an order no. 119 dated 26 September 2013 regarding extension of audit report due date. Full order is as under.

 CBDT in exercise of power under sec  1l9(2)(a) of the IT Act, 1961 read with Sec 139 and Rule12, has decided to relax the requirement of furnishing 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 as under-

(a) The assesses, who are presently finding it difficult to upload the prescribed Reports of Audit (as referred to above) in the system electronically may also furnish the same manually before the jurisdictional Assessing Officer within the prescribed due date.

(b) The said Report of Audit should however be furnished electronically on or before 31.10.2013.

Sep 25, 2013

7th pay scale commission will be implemented from 1 January 2016

4:32 PM 2
7th pay scale commission will be implemented from 1 January 2016
Seventh pay scale is likely to implement with effect from 1 January 2016. Prime Minister Mr. Manmohan Singh has given his acceptance for setting up the seventh pay scale commission as per Mr. P.Chidambaram, Finance Minister of India.
Seventh pay commission is given two years timeline to submit its report and the seventh pay commission will be likely to implement from 1 January 2016. This is the average time to submit the report by a pay commission and it will take around 2 years.

Sixth pay commission recommendation was implemented in India from January 1 2006.
Tags-seventh pay commission,seventh pay scale,7th pay scale commission

Sep 24, 2013

How to claim deductions on donations

6:49 PM 0
How to claim deductions on donations
The  government gives tax benefits aspects on donations underneath Section 80G with the Income Tax Act, 1961. However, its not all donations are qualified to receive tax benefits. There are particular restrictions to the deduction permitted to individuals, companies or any specific family of taxpayers.

Donation created to foreign trusts by an individual or company will not qualify for reduction under this Part. Similarly, even for just a donation made in order to political parties, including paying for brochures, souvenirs or pamphlets presented by such celebrations, are not qualified to receive tax deduction.

For those to claim deduction under Section 80G, a receipt issued with the trust receiving the donation can be a must. The receipt must have details of title, address and Everlasting Account Number (PAN) with the trust, the name with the donor and just how much donated. The registration variety of the trust, that's issued by the particular income-tax department underneath Section 80G can be a must for claiming tax benefit.

The government periodically releases a listing of approved charitable organizations and funds which have been eligible to obtain donations that qualify for deduction. The number includes trusts, societies and corporate and business bodies incorporated underneath Section 25 with the Companies Act, 1956, while non-profit companies. The income-tax department issues the registration number for the trust or the particular non-profit body for just a limited period of 24 months and this is usually renewed. The registration number really needs to be printed on the particular receipt and, furthermore, the validity period of the registration need to be mentioned in the particular receipt. If this is not done, the taxpayer cannot claim any tax deduction within the donation made.

For donations which have been eligible for 100% reduction, the taxpayer should take Form 58 through the trust. The form contains information on project cost that the donation is usually received, amount authorised underneath this project along with the actual amount obtained. Without Form 58, the claim pertaining to 100% deduction will probably be rejected by the particular income-tax department. Only donations in cheque or in funds below R10, 000 meet the criteria for tax reduction. Donations in kind like clothes, quilts, food etc usually are not entitled to any tax benefits. Though there isn't any upper limit on the amount of donation, in some cases, there can be a cap on the particular eligible amount, which is a maximum of 10% with the gross total income with the individual taxpayer.

Likewise, deduction under Part 80G cannot surpass your taxable cash flow. A taxpayer can certainly claim 100% deduction without the qualifying limit should the donation is made to the Prime Minister’s Countrywide Relief Fund. One can possibly even avail 100% reduction for donations created to an approved organization for promoting family planning. In situation of donations in order to Indira Gandhi Commemorative Trust, an individual can certainly claim 50% deduction without the qualifying limit.

Personnel can claim deduction under Section 80G, provided a certificate through the employer is received that the latter states the point that the contribution was made right out of the former’s salary bank account. Even NRI’s can certainly claim tax positive aspects against a donation, provided it is made to eligible institutions.

Sep 23, 2013

Manual selection cases for scrutiny for FY 2013-14

4:49 PM 0
Manual selection cases for scrutiny for FY 2013-14
The Income tax department issued an instruction no. 13/2013 about compulsory manual selection of cases for scrutiny for financial year 2013-14. The following cases will come in the sphere of manual selection for scrutiny. 

Sep 22, 2013

MCA clarification on companies act 2013

7:29 PM 0
MCA clarification on companies act 2013
 The Companies Act 2013 received the assent of the President on 29th August, 2013 and was notified in the Gazette of India on 30th August, 2013. Towards the proper implementation of the Companies Act 2013, first tranche of Draft Rules on 16 Chapters have been placed on the website of the Ministry on 9.9.2013 for inviting comments and objections/suggestions from the general public/stakeholders. Of the 16 Chapters, only 13 Chapters require specifying of Forms referred to in those Chapters. The draft Forms shall be placed on the website shortly.

2. Ministry of Corporate Affairs has also notified 98 sections for implementation of the provisions of the Companies Act, 2013 (the "said Act") on 12.9.2013. Certain difficulties have been expressed by the stakeholders in the implementation of following provisions of the said Act. With a view to facilitate proper administration of the said Act, it is clarified that -

(i) Sub-section (68) of section 2:- Registrar of Companies may register those Memorandum and Articles of Association received till 11.9.2013 as per the definition clause of the 'private company' under the Companies Act 1956 without referring to the definition of 'private company' under the "said Act".

(ii) Section 102:- All companies which have issued notices of general meeting on or after 12.9.2013, the statement to be annexed to the notice shall comply with additional requirements as prescribed in section 102 of the "said Act".

(iii) Section 133:- Till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.

(iv) Section 180:- In respect of requirements of special resolution under Section 180 of the "said Act" as against ordinary resolution required by the Companies Act 1956, if notice for any such general meeting was issued prior to 12.9.2013, then such resolution may be passed in accordance with the requirement of the Companies Act 1956.

3. This issues with the approval of competent authority.

Government wants to bring petroleum and liquor under GST

7:25 PM 0
Government wants to bring petroleum and liquor under GST
The Centre has asked the Empowered Committee of State Finance Ministers to consider bringing petroleum and liquor within the Goods and Services Tax (GST).

This is a part of the revised draft of the Constitutional Amendment Bill. Now, the Empowered Committee has announced setting up a sub-committee to study the proposal.

“We have decided that detailed discussions will take place in the next meeting in Meghalaya,” Chairman of the Empowered Committee Abdul Rahim Rather told reporters here.

In the revised draft of the Bill circulated to States, the Centre has proposed that these items should not be constitutionally debarred. The Government has circulated the revised draft after incorporating the proposals of the Parliamentary Standing Committee on Finance, which submitted its report last month.

The Standing Committee, last month, had recommended that GST be made optional for States and must have a well defined compensation system. The committee had also recommended that exclusions be kept to a minimum for an ‘integrated, comprehensive and seamless’ GST regime.

Rather, who is the Finance Minister of Jammu and Kashmir, said the sub-committee, which consists of Central and State Government officials, will give suggestions on reconciliation of the standing committee’s recommendations, the revised draft of the concerned Bill, and the decisions taken by States in their meeting in Bhubaneswar in January over the design of GST.

“This sub-committee will come up with its recommendations before the next meeting of the Empowered Committee,” Rather said. Though the States had earlier agreed to include petroleum under GST in the Constitution, there was no such agreement on liquor.

The GST rollout, which will empower the Centre and States to simultaneously tax the supply of goods and services, has missed several deadlines due to differences between some States and the Centre over the contentious issue of central sales tax compensation and GST design.

The Constitutional Amendment Bill was introduced in Parliament in 2010. The Government hopes to table it in the Winter Session of Parliament.

Sep 21, 2013

Government approves 10% DA hike

4:14 PM 1
Government approves 10% DA hike
 The government nowadays approved a proposal to hike dearness permitting to 90 % from existing 80 %, a move that would benefit about 50 lakh central government employees as well as 30 lakh pensioners.

"The Union Cabinet approved the proposal to increase dearness allowance to 90 % at its getting together with here. The hike could be effective from Come early july 1, this yr, " a origin said.

According for the source, the increase inside DA to 90 % would result inside additional annual expenditure of Rs 10, 879 crore. There could be additional burden of Rs 6, 297 crore on exchequer during 2013-14 out of this hike inside DA.

This is often a double digit backpack in DA after several years. It seemed to be last in September, 2010, that the us government had announced a hike of 10 % to be offered with effect by July 1, 2010.

DA was hiked to 80 % from 72 % in April, 2013, effective from January 1, this coming year.

As per your practice, the government employs CPI-IW data regarding past 12 months to arrive at a number with regards to any DA backpack.

The retail inflation regarding industrial workers concerning July, 2012 and 06 2013 was accustomed to compute the boost in DA.

Arrest and bail rule in central excise act 1944

3:00 PM 0
Arrest and bail rule in central excise act 1944
Central Excise department issued a circular regarding rules of arrest and bail. Central excise department issued a circular no. 974/2013 dated 19 September 2013. Full circular is as under.

Sep 20, 2013

AD-HOC exemption under service tax

7:43 PM 0
AD-HOC exemption under service tax
Service tax department issued an order no. 1/2013 about ad-hoc exemption. This exemption is applicable for service providers in Uttrakhhand. Full order is as under.

 Whereas the recent floods and landslides has caused extensive damage in the State of Uttarakhand and has adversely affected the life of the common man in the state. There is a need to provide support to ensure sustenance for the local population by revival of the hospitality industry;

And whereas taxable services provided in the State of Uttarakhand are chargeable to service tax;

Now therefore, in exercise of the powers conferred by sub-section (2) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do and that there are circumstances of exceptional nature as mentioned above, hereby exempts the following taxable service provided to any person in the State of Uttarakhand, from the whole of service tax leviable thereon under section 66B of the Finance Act, 1994 (32 of 1994), namely:-

              i.        Services by way of renting of a room in a hotel, inn, guest house, club, campsite or other commercial place meant for residential or lodging purposes;

             ii.        Services provided in relation to serving of food or beverages by a restaurant, eating joint or  mess

           
This exemption order is applicable for the above mentioned taxable services provided during the period 17th September, 2013 to 31st March, 2014.   

Service tax is exempt on educational services

7:37 PM 0
Service tax is exempt on educational services
Service tax department issued a circular no. 172/2013 dated 19 September 2013 regarding clarification on service tax on educational services. Full circular is as under.

The following representations have been received seeking clarifications regarding the levy of service tax on certain services relating to the education sector:

1.     Private Schools Correspondents Confederation, Madurai.

2.     Tamil Nadu Nursery, Primary, matriculation and Higher Secondary Schools Association, Chennai.

3.     Punjab Association, Chennai.

4.     Association of Self financing Universities of Rajasthan

5.     Unaided Schools’ Forum, Mumbai.

6.     Vedavalli Vidyalaya, Wallajapet.

7.     Independent Schools Associations, Chandigarh.

8.     Mother Teresa Public School, New Delhi.

9.     BVM Global, Chennai.

10.  Sastra University, Tanjavur.

11.  HLC International, Chennai.

12.  Sodexo Food Solutions, Mumbai.

13.  Federation of Associations of Maharastra, Mumbai.



2.         The matter is covered by two provisions of the Finance Act, 1994. Section 66D of the Finance Act contains a negative list of services and clause (l) thereof reads as under:
“services by way of –

(i) pre-school education and education upto higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognized by any law for the time being in force;

(iii) education as a part of an approved vocational education course;”.


            Further section 93(1) of the Finance Act, 1994, enables the Government to exempt generally or subject to such conditions taxable service of specified description. By virtue of the said power, Government has issued a notification No.25/2012-ST dated 20th June, 2012, exempting certain services. Sl.no.9 thereof reads as follows:

“Services provided to an educational institution in respect of education exempted from service tax, by way of,-
(a) auxiliary educational services; or
(b) renting of immovable property;”.

As defined in the said notification, "auxiliary educational services" means any services relating to imparting any skill, knowledge, education or development of course content or any other knowledge–enhancement activity, whether for the students or the faculty, or any other services which educational institutions ordinarily carry out themselves but may obtain as outsourced services from any other person, including services relating to admission to such institution, conduct of examination, catering for the students under any mid-day meals scheme sponsored by Government, or transportation of students, faculty or staff of such institution.

3.         By virtue of the entry in the negative list and by virtue of the portion of the exemption notification, it will be clear that all services relating to education are exempt from service tax. There are many services provided to an educational institution. These have been described as “auxiliary educational services” and they have been defined in the exemption notification. Such services provided to an educational institution are exempt from service tax. For example, if a school hires a bus from a transport operator in order to ferry students to and from school, the transport services provided by the transport operator to the school are exempt by virtue of the exemption notification.

4.         In addition to the services mentioned in the definition of “auxiliary educational services”, other examples would be hostels, housekeeping, security services, canteen, etc.

5.         Thus the apprehensions conveyed in the representations submitted by certain educational institutions and organizations have no basis whatsoever. These institutions and organizations are requested not to give credence to rumours or mischievous suggestions. If there is any doubt they are requested to approach the Chief Commissioner concerned.

6.         All concerned are requested to acknowledge the receipt of this circular.

Sep 19, 2013

e-Aadhar is valid proof for opening a bank account

4:20 PM 2
e-Aadhar is valid proof for opening a bank account
Reserve bank of India has issued a note saying that e-aadhar is the valid proof for opening a bank acount and it fulfills both proof of ID and proof of address. Full note is as under.

Please refer to paragraph 2.6 (B) of our Master Circular UBD.BPD. (PCB).MC.No.16 /12.05.001/2013-14 dated July 1, 2013 on Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Measures / Combating of Financing of Terrorism (CFT)/ Obligations of banks under PMLA, 2002 which states that letter issued by the Unique Identification Authority of India (UIDAI) containing details of name, address and Aadhaar number may be accepted as an ‘Officially Valid Document’. Further, in terms of paragraph 2.5 (ix) of the Master Circular, banks have been advised that while opening accounts based on Aadhaar, if the address provided by the account holder is the same as that on Aadhaar letter, it may be accepted as a proof of both identity and address.

Income tax press release about safe harbour rules u/s 92CB

4:14 PM 0
Income tax press release about safe harbour rules u/s 92CB
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.

Sep 17, 2013

FAQ on basic saving bank deposit account BSBDA

10:55 PM 1
FAQ on basic saving bank deposit account BSBDA
1. Query

What is the definition of 'Basic Savings Bank Deposit Account' (BSBDA)?

Response

All the existing ‘No-frills’ accounts opened pursuant to guidelines issued vide circular RPCD.RF.BC.54/07.38.01/2005-06 dated December 13, 2005 and RPCD.CO.No.RRB.BC.58/ 03.05.33(F) / 2005-06 dated December 27, 2005 and converted into BSBDA in compliance with the guidelines issued in circular RPCD.CO.RRB.RCB.BC.No.24/07.38.01/2012-13 dated August 22, 2012 as well as fresh accounts opened under the said circular should be treated as BSBDA. Accounts enjoying additional facilities under the reasonable pricing structure for value added services, exclusively for BSBDA customers should not be treated as BSBDAs.

Sep 16, 2013

Duty drawback rates of all industry effective from 21 September 2013

8:06 PM 0
Duty drawback rates of all industry effective from 21 September 2013
Custom department issued a circular no. 37/2013 dated 14 September 2013 about all industry duty drawback rates. These rates are effective from 21 September 2013. Full circular is as under.

 The Ministry has notified the revised All Industry Rates (AIR) of Duty Drawback vide Notification No.  98/2013- Customs (N.T.), dated 14.09.2013. This notification comes into force on 21.09.2013.

2.         Some of the broad aspects, from amongst the changes notified with respect to AIR of duty drawback and entries in the Schedule, are the following –

Central excise reversal of amount on domestic clearance circular no. 973

8:02 PM 0
Central excise reversal of amount on domestic clearance circular no. 973
Central excise department issued a circular no. 973/2013 dated 4 September 2013 about  Reversal of amount under Rule 6(3) the CCR, 2004 on domestic clearances under Notification Nos.29/2012-CE, 30/2012-CE, 31/2012-CE, 32/2012-CE and 33/2012-CE all dated 9th July, 2012. Full circular is as under.

Sep 15, 2013

Income tax department send another 35000 letters to pay dues and file returns

3:35 PM 1
Income tax department send another 35000 letters to pay dues and file returns
The income tax depart,ent has issued letters to around 35000 more people asking them to file income tax return and pay dues of income tax.

This is the part of exercise by income tax department to trace and send letters to the person who don’t file income tax returns or pay dues. Income tax department issued a statement saying the letters are issued to more than 35000 people.

Totally income tax department issued letters to around 2.45 lakh letters to people including this to pay dues and file income tax return. The department also got the positive response of these letters as around 3.5 lakh returns have been received out of thses letters. Also they have paid self-assessment tax of Rs. 577 crores and advance tax of 408 crores.

After seeing the positive response, the department wish to adopt it in major scale and trace high value transaction during the financial year 2011-12 nad 2012-13.

The Finance Ministry is also developing a dedicated module on the e-filing portal which will give individual taxpayers details of returns not filed, ITR-V not submitted and demand not paid, among others, as a step towards greater transparency.

No TDS on payment of lease premium for allotment of plot

1:32 PM 0
No TDS on payment of lease premium for allotment of plot
Payment of lease premium for allotment of plot of land is not liable to TDS liability under section 194-I

In the instant case, the assessee-realtors took a plot of land from MMRD Ltd. and made payment of lease premium for allotment of a plot. It also paid for additional FSI. The AO held that the assessee was required to deduct tax under section 194-I in respect of the aforesaid payment to MMRD. According to him, the assessee had not complied with the provisions of section 194-I, it had committed default within the meaning of section 201(1) and, therefore, the assessee was to be treated as assessee-in-default. On appeal by the assessee, the CIT (A) reversed the findings of AO. Aggrieved revenue filed the instant appeal.

The Tribunal held in favour of assessee as under:

1) From lease deed it was clear that the premium was not paid under a lease but was paid as a price for obtaining the lease, hence, it preceded the grant of lease;

2) Therefore, it couldn’t be equated with the rent which was paid periodically. Thus, the assessee had made payment to MMRD under development control for acquiring leasehold land and additional built-up area. The case of CIT v. Khimline Pumps Ltd. (2002) 125 Taxman 104 (Bom.) was squarely and directly applicable to the facts of the case wherein the jurisdictional High Court had held that payment for acquiring leasehold land was a capital expenditure;

3) Considering the facts in totality - in the light of the judicial decisions vis-à-vis provisions of section 194-I, definition of rent as provided under the said provision, there was no reason to tamper or interefere with the findings of the CIT (A) – ITO(TDS) V. WADHWA & ASSOCIATES REALTORS (P.) LTD (2013) 36 taxmann.com 526 (Mumbai - Trib.)
Tags-tds section 194i,tds on rent,tds on lease

Sep 14, 2013

Flat onwer can sell is flat without permission of society

2:52 PM 0
Flat onwer can sell is flat without permission of society
Flat owner can sell or mortgage his flat to seek borrowings without the permission of society  
 
The Supreme Court held as under:

1) It was too late to contend that flat owners couldn’t sell, let out, hypothecate or mortgage their flats for availing of loans without permission of the builder, Society or the Company. So far as a builder was concerned, the flat owner would pay the price of the flat;

2) So far as a society or company was concerned, in which the flat owner was a member, he was bound by the laws or Articles of Association of the Company, but his right over the flat was exclusive. That right was always transferable and heritable. Of course, he would have charge over the flat if any amount was due to them of the flat;

3) Neither the Companies Act nor any other Statute has any provision prohibiting the transfer of interest to third parties or to avail of loan for the flat owners' benefit. A legal bar on the transferability of such a interest would create chaos and confusion. The right or interest to occupy any such flat was in respect of property and, hence, had a stamp of transferability - HILL PROPERTIES LTD. V. UNION BANK OF INDIA (2013) 37 taxmann.com 150 (SC)

Sep 13, 2013

Income tax department extended date of receipt of ITR-V to 31 October 2013

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Income tax department extended date of receipt of ITR-V to 31 October 2013
Income tax department has extended the last date of receipt ITR-V in CPC Bangaluru to 31 October 2013 for the cases of analysis year 2011-12 and 2012-13, e-filed in financial year 2012-13. Income tax department issued a notification dated 12 September 2013 regarding extension of last date for sending ITR-V. Full notification is as under.

Notification for Extension of date for recqipt of ITR-Vs in CPC.BengFluru. for the casgs qf AI 29I,2-13 and 2OlL-12 received in e-filedin FY 2Ol2-13.

There are many taxpayers who have uploaded their Income Tax Returnselectronically (without digital signature Certificate) for A.Y. 2OLl-12 [filed during F.Y. 2Ol2-L3l and for ITRs of A.Y. 2OL2-13 [filed on or after1.4,2012], but have either not filed the corresponding ITR-V or have filed it with the local Income-tax office. ITR-V is accepted only at the Centralized Processing Center (CPC) of the Income-tax Department at Bengaluru by ordinary or speed post. Therefore, a final opportunity is being given to such
taxpayers to regularize their Income-tax returns.

All such taxpayers may mail the ITR-V, by 3!st October, 2OL3, by ordinary post or speed post at Post Bag No. 1, Electronic City Post Office, Bengaluru -560100 (Karnataka). Taxpayers who have filed their ITR-V with the localIncome-tax office may again mail their ITR-V to the CPC by 31st October,2013. Those taxpayers who have earlier mailed their ITR-V, but have not received the acknowledgement e-mail from the CPC, may mail their ITR-V tothe CPC again.

 The ITR-V form should be mailed to the CPC only at the above address byordinary post or speed post. Taxpayers may note that no other place or formof delivery will be accepted.

Taxpayers may also note that without acknowledgement of the ITR-V from the CPC it would not be possible for the Income-tax Department to process the Income-tax returns or issue any refunds therefrom, as these would be treatedas not having been filed with the Department.

Banks will remain open on 14 and 15 September for advance tax collection

7:26 PM 0
Banks will remain open on 14 and 15 September for advance tax collection
Opening of the Bank Branches for accepting the advance tax challans for Income Tax and Corporate Tax on September 14 & 15, 2013

With a view to facilitate collection of advance taxes for Income Tax and Corporate Tax and meeting the probable rush of tax-payers, it has been decided in consultation with the Department of Financial Services, Ministry of Finance, Government of India that all agency banks shall keep the counters of their designated branches conducting Government business open on September 14, 2013 and September 15, 2013 (in effect both these days would be normal working days) to facilitate receipt of advance tax challans for Income Tax and Corporate Tax from members of public.


Sep 12, 2013

Zero balance saving account with HSBC, Standard Chartered and Citibank

11:30 PM 0
Zero balance saving account with HSBC, Standard Chartered and Citibank
People can open zero balance saving account with the foreign banks such as Citibank, Standard Chartered bank and HSBC bank and can avail free Debit card facility.

The Reserve bank of India said that Basic saving bank deposit account (BSBDA) guidelines are for every Indian and foreigner bank which has a branch in India. 

BSBDA
Basic saving bank deposit account is the scheme of RBI with which poor and weaker section of the society who can open a saving bank account with any bank without depositing any money in the account. These account will give basic service like debit card.

Free services under the BSBDA scheme include deposit and withdrawal of cash, receipt/ credit of money through electronic payment channels or deposit/ collection of cheques at bank branches, as well as ATM cards.

A BSBDA holder wouldn’t be eligible to open any other savings account in the bank concerned. If a customer has any other existing savings account in that bank, he/ she would have to close it within 30 days from the date of opening a BSBDA

This is the effort of RBI towards financial inclusion and decrease the financial dissimilarity in the society. 
Tags-basic saving bank deposit account,bsbda,basic saving account scheme,what is basic saving account,basic saving account in india,saving saving account hsbc,how to open bsbda,how to open basic saving account in india

Sep 11, 2013

KYC procedure to open a bank account for foreign students

6:11 PM 0
KYC procedure to open a bank account for foreign students
Reserve bank of India has issued procedure as how to open a bank account in india for the foreign students studying in India. This includes KYC(Know your customer) formalities and paperwork. RBI issued a circular no. 4 dated 10 September 2013. Full circular is as under.

Foreign students studying in India – KYC procedure for opening of bank accounts – Primary (Urban) Cooperative Banks (UCBs)
It has been represented to us that foreign students arriving in India are facing difficulties in complying with the Know Your Customer (KYC) norms while opening a bank account due to non-availability of any proof of local address.

2. The issue has been examined and it has been decided to lay down the following procedures for opening bank accounts of foreign students who are not able to provide an immediate address proof while approaching a bank for opening bank account.
a) UCBs may open a Non Resident Ordinary (NRO) bank account of a foreign student on the basis of his/her passport (with appropriate visa & immigration endorsement) which contains the proof of identity and address in the home country along with a photograph and a letter offering admission from the educational institution.
 
b) Within a period of 30 days of opening the account, the foreign student should submit to the branch where the account is opened, a valid address proof giving local address, in the form of a rent agreement or a letter from the educational institution as a proof of living in a facility provided by the educational institution. UCBs should not insist on the landlord visiting the branch for verification of rent documents and alternative means of verification of local address may be adopted by banks.
 
c) During the 30-day period, the account should be operated with a condition of allowing foreign remittances not exceeding USD 1,000.00 into the account and a cap of monthly withdrawal to Rs. 50,000.00 pending verification of address.
 
d) On submission of the proof of current address, the account would be treated as a normal NRO account, and will be operated in terms of instructions contained in RBI’s Master Circular on Non-Resident Ordinary Rupee (NRO) Account No. RBI/2013-14/2 Master Circular No.2/2013-14 dated July 1, 2013 issued by our Foreign Exchange Department, Central Office and the provisions of Schedule 3 of FEMA Notification 5/2000 RB dated May 3, 2000may also be kept in view.
 
e) Students with Pakistani nationality will need prior approval of Reserve Bank of India for opening the account.
3. All UCBs are advised to ensure compliance to the above guidelines for the convenience of foreign students studying in India to open bank accounts.

4. The Principal Officer of the UCB should acknowledge receipt of this circular to our Regional Office concerned.
Tags-kyc documents for foreigners,kyc for open a bank account,kyc for nri,kyc for non residents

Simplification of procedure for claim settlement of deceased depositor

5:18 PM 0
Simplification of procedure for claim settlement of deceased depositor
Reserve Bank of India has simplifies the procedure for claim settlement of deceased depositor. Now banks need to put the form in its website so one can easily download and full. RBI issued a note dated 10 September 2013 regarding simplification of procedure for claim settlement of deceased depositor. Full note is as under.
Settlement of Claims of Deceased Depositor – Simplification of Procedure – Placing of claim forms on bank’s website

Please refer to circular RPCD.CO.RRB.BC.22/03.05.33/2005-06 dated July 19, 2005 and wherein simplified procedure has been specified for settlement of claims of deceased depositors. We have been receiving feedback from public that banks are not following the simplified procedure as advised in the circular. RRBs are therefore, advised once again that they should strictly comply with the instructions contained therein for hassle-free settlement of claims on the death of a depositor.

2. Further, with a view to facilitate timely settlement of claims on the death of a depositor, RRBs are advised to provide claim forms for settlement of claims of the deceased accounts, to any person/s who is/are approaching the bank / branches for forms. Claim forms may also be put on the bank’s website prominently so that claimants of the deceased depositor can access and download the forms without having to visit the concerned bank/branch for obtaining such forms for filing claim with the bank.

3. Please acknowledge receipt to our Regional Office concerned.
Tags-how to claim for deceased depositor

Service tax exemption to National Skill development Corporation

5:13 PM 1
Service tax exemption to National Skill development Corporation
Service tax department exempt services tax on services provided by National Skill Development Corporation. Service tax department issued a notification no. 13/2013 dated 10 September 2013 regarding exempting NSDC from service tax. Full notification is as under.

Sep 10, 2013

Income tax new rule 12BA and new form 63AA

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Income tax new rule 12BA and new form 63AA
Income tax department has inseted new rule 12BA in income tax rules and adds new form 63AA in income tax rules. Regrading this income tax department issued a new notification no. 68 dated 4 September 2013. Full notification is as under.

S.O. 2668(E) In exercise of the powers conferred by sub-section (3) of section 115TA  read with 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 ( 15th Amendment) Rules, 2013.

 (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, -
(a) after rule 12B, the following rule shall be inserted, namely:-
“12BA. Statement under sub-section (3) of section 115TA. – (1) The statement of income distributed by the securitisation trust shall be furnished as provided in sub-rule (2) to -

 (i) the Assessing Officer so designated by the Chief Commissioner or Commissioner of Income-tax, within whose area of jurisdiction, the principal office of the securitisation trust is situated;

(ii) in any other case, to the Assessing Officer within whose area of jurisdiction, the principal office of the securitisation trust is situated.

 (2) The statement of distributed income which is to be furnished under sub-section (3) of section 115TA by the securitisation trust shall be in Form No.63AA, duly verified by an accountant in the manner indicated therein.”;

(b) in Appendix-II, after Form No.63A, the following Form shall be inserted, namely:-
 “FORM NO. 63AA 
[See sub-rule(2) ofrule 12BA] 
Statement to be furnished in respect of income distributed by a securitisation trust
1. Name of the securitisation trust

2. Address of the principal place from where the
activities of the securitisation trust are being carried
out

3. Permanent Account Number

4. Previous year ending

5. Date of setting up of the securitisation trust

6. Objects of the securitisation trust (Enclose a copy of
the trust deed)

7. Whether the securitisation trust is regulated by
(i) Securities and Exchange Board of India (Public
Offer and listing of Securitised Debt Instruments)
Regulations, 2008
 Yes/
No

(ii) Reserve Bank of India guidelines on securitisation
of standard assets
Yes/No

8. Whether the trustee(s)/securitisation trust is/are
registered with SEBI/RBI
Yes/No

9. Name of Scheme(s)/series under which securitised
debt instruments/securities are issued

10. Income of the securitisation trust from the activity
of securitisation
Rs……..

11. Income distributed by the securitisation trust
Rs……..

12. Details of income distributed, tax and interest payable

Income distributed




Tax payablem under section 115TA
 Interest cargeable under section 115 TB if any
Payment towards tax and interest under section 115TB(Attach a copy of challans)

Date
 of distrib
ution
Exempt investors
Individuals/
HUF
Any other
person**
Total











Date of Payment
Amount





























Enclose audited accounts including balance sheet, annual report, if any, with certified copies
of income and appropriation towards distribution of income.
I, _____________________________________________________________ (Name in full
and in block letters) son/daughter/wife of
_______________________________________________ do hereby solemnly declare that to
the best of my knowledge and belief what is stated above and in the Annexure(s), including
the documents accompanying such Annexure(s), is correct and complete. I further declare
that I am furnishing such statement in my capacity as
_________________________________ (designation) and that I am competent to furnish
this statement and verify it.
Verified today the ________________ day of ________________
……….. …………………
Place Signature
Verification
I/We ________________________________________________ have examined the books
of account and other documents showing the particulars of income earned and the income
distributed to the investors by the ________________________________ (name of the
securitisation trust) for the previous year ending ________________________.
2. I/We declare that the above particulars are true and correct to the best of my/our
knowledge and belief.
 …………………………………………..
 Place ………………………………………

Amount
   (Signature with name of the
Accountant)
Date …………………..
Notes :
(1) *Information in respect of investors whose income, irrespective of its nature and
source, is exempt under the Act
(2) ** Information in respect of investors whose income is not exempt
(3) “Accountant” means the accountant as defined in the Explanation to sub-section (2) of
section 288 of the Income-tax Act, 1961.”.
[Notification No. 68/2013/ F.No.142/18/2013-TPL]
 (AmitKatoch)
Under Secretary to the Government of India
Note. - The principal rules were published in the Gazette of India Extraordinary Part II,
section 3, sub-section (ii) vide number S.O.969 (E), dated the 26th March, 1962 and were last
amended vide number S.O. 2659 (E) dated 02-09-2013.
Tags-income tax new rule 12BA,income tax new rule 12ba,income tax form 63aa,63aa form it,it form 63aa,new income tax form 63aa

Sep 9, 2013

Draft companies rules 2013 highlights

4:52 PM 0
Draft companies rules 2013 highlights
Limit of maximum number of members of unincorporated partnership or association for carrying on business/gain-50

No association or partnership shall be formed, consisting of more than 50 persons for the purpose of carrying on any business that has for its objects the acquisition of gain by the association or partnership or by individual members thereof, unless it is registered as a company under the Act or is formed under any other law for the time being in force.

Sep 7, 2013

Cash withdrawl at point of sale POS instrument is allowed on prepaid cards up to Rs. 1000

6:23 PM 0
Cash withdrawl at point of sale POS instrument is allowed on prepaid cards up to Rs. 1000
Reserve bank of India has allowed cash withdrawl on POS instruments on prepaid cards too. Earlier this facility was only available to debit cards only. RBI issued a note no. 563 dated 5 September 2013 about this facility. Ful note is as under.

Cash withdrawal at Point of Sale (POS) - Prepaid Payment Instruments issued by banks

A reference is invited to our circular DPSS.CO.PD.No. 147 /02.14.003/2009-10 dated July 22, 2009 permitting cash withdrawal at Point of Sale (POS) by all debit cards issued in India upto Rs.1000/- per day,
subject to certain conditions.

2. The open system prepaid payment instruments (PPIs) issued by banks is perceived to be a subset of debit cards. Hence, on a review of the position, it has been decided that the facility of cash withdrawal at POS with debit cards may be extended to such open system prepaid payment instruments issued by banks in India. The limit of cash withdrawal will remain Rs.1000/- per day subject to the same conditions as applicable hitherto to debit cards.

3. This circular is being issued in exercise of the powers conferred on the Reserve Bank under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
Tags-prepaid cards in india,point of sale cash withdrawl,cash withdrawl on point of sale instruments

Stock statement format for cc limit of various bank

6:16 PM 0
Cash credit account holder needs to submit stock statement every month to the bank. It is a declaration about stock in hand as on the day when stock statement is submitted. This is only in the case of when credit is taken against the stock.

But stock statement is not submitted on the plain paper. Each bank has its own format for the stock statement. So taxalertindia is submitting two banks stock statement format.

Sep 6, 2013

Any person travel abroad can take 10000 ruppes with him

11:00 PM 0
Any person travel abroad can take 10000 ruppes with him
Reserve bank of India increased the limit of taking indian currency with him while travelling abroad. Earlier the limit was 7500 rupees which is increased to  10000. RBI  issued a circular no. 39 dated 6 September 2013 regarding import and export of currency. Full circular is as under.

Attention of Authorised Persons is invited to Regulation (2) of Foreign Exchange Management (Export and Import of Currency) (Amendment) Regulations, 2009, notified vide Notification No. FEMA 195/RB-2009 dated July 7, 2009, in terms of which, any person resident in India may take outside India or having gone out of India on a temporary visit, may bring into India (other than to and from Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.7,500 per person.

2. As part of providing greater flexibility to the resident individuals travelling abroad, the existing limit, mentioned above, has been enhanced to Rs. 10,000 per person.

3. Accordingly, any person resident in India:
i) may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person; and

ii) who had gone out of India on a temporary visit, may bring into India at the time of his return from any place outside India (other than from Nepal and Bhutan), currency notes of Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.10,000 (Rupees ten thousand only) per person.
4. Authorised Persons may bring the contents of this circular to the notice of their constituents, customers and foreign counter parties concerned.

5. Reserve Bank of India has since amended the relevant Regulations vide Notification No.FEMA.258/2013-RB dated February 15, 2013, notified vide G.S.R.No.480(E) dated July 12, 2013
5. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law

Section 10(23C) exemption is not available to maternity hospital

10:54 PM 0
Section 10(23C) exemption is not available to maternity hospital
Section 10(23C) benefit can't be granted to maternity hospital as child birth is a natural process of God which in no way could be said to be any illness as contemplated under section 10(23C)(iiiae)

• In the instant case the assessee was running a maternity hospital in which services were provided to patients on nominal charges. In the cross objections it made a claim for deduction under section 10(23C)(iiiae). Thus, the moot question that arosed before the ITAT was as under:

• Whether assessee was eligible to claim deduction under section 10(23C)(iiiae) and whether services provided by assessee in relation to maternity hospital could be termed as services provided for illness or disease as envisaged under section 10(23C)(iiiae)?

The Tribunal held as under:

(1) The child birth is the natural process of God and it certainly is the God's grace which is extended to sustain us through it. It is the act of God who designs a child conceived in the womb to be born into this world;

(2) In olden days deliveries of children were perfectly conducted by midwives at home, but in the modern age, it is only because the anxiety of people that they would not be able to manage the discomfort or pain during labour, they choose to take better facilities in the hospitals in presence of Doctors for this purpose;

(3) Thus, the assessee's maternity hospital had been facilitating the deliveries, i.e., a natural process of God, which in no way could be said to be any illness to be treated in the hospital as envisaged under section 10(23C)(iiiae);

(4) The CIT(A) rightly disallowed the claim of assessee as the ingredients of section 10(23C)(iiiae) were not fulfilled. Thus, the cross objections of the assessee had no merit and were accordingly, to be dismissed.