Apr 30, 2013

Amendments in Finance bill 2013 passed in lok sabha

10:24 PM
Amendments in Finance bill 2013 passed in lok sabha
Finance bill 2013-14 has passed in Lok Sabha on Tuesday 30 April 2013 and there are some amendments in the rules of taxation. The new amendment rules are as under.


The Lok Sabha, passed the Finance Bill, 2013-14 today with various key amendments which are as under:
1) Scope of Sec. 10(48) widened to include other prescribed income also and not just income arising from sale of crude oil.
2) Trading in commodity derivatives is no more a speculative transaction.
3) Tax Residency Certificate – Can be a conclusively evidence but it has to be supported by prescribed documents.
4) Deductor isn’t required to obtain TAN in case of deduction of tax at source from payment made for acquisition of immovable property.
5) Concessional withholding rate on certain rupee denominated long-term infrastructure bonds is withdrawn.
6) Non-resident referred to in Section 194LC will not be penalised for not having a PAN.
7) Even gold coins weighing less than 10 gms will be subject to TCS.
8) No wealth-tax on agriculture land
Download finance bill full amendment rule from here
Keywords-finance bill 2013,2013 finance bill,new income tax rules 2013,new income tax rules on finance bill,finance bill amendment 2013,amendment in finance bill 2013

Full amendment rules of finance bill 2013

10:23 PM
Full amendment rules of finance bill 2013

Finance bill 2013-14 has passed in Lok Sabha on Tuesday 30 April 2013 and there are some amendments in the rules of taxation. The new amendment rules are as under.

The Lok Sabha, passed the Finance Bill, 2013-14 today with various key amendments which are as under:



Existing Position
Position as amended by the Lok Sabha


Scope of Sec. 10(48) widened to include other prescribed income also and not just income arising from sale of crude oil
The Finance Act 2012 inserted a new clause (48) in Section 10 to provide for exemption in respect of any income received in India in Indian currency by a foreign company on account of sale of crude oil in any period in India, if a few conditions are satisfied.
The Finance Bill, 2013 as passed by the Lok Sabha (herein after referred to as 'the Finance Bill, 2013') enlarges the scope of Section 10(48). With effect from the assessment year 2014-15, the exemption will also be available in respect of income arising on account of sale of any other goods or rendering of services as notified by the Central Government.


Trading in commodity derivatives no more a speculative transaction
Proviso to Section 43(5) provides a list of transactions which shall not be deemed to be 'speculative' transactions.
A new clause (e) is inserted in proviso to Section 43(5) wef assessment year 2014-15 to provide that trading in commodity derivatives carried out in a recognised association shall not be treated as 'speculative' transaction. For this purpose, an eligible transaction means:
(a)  Any transaction carried out electronically on screen-based system through a member registered for trading in commodity derivatives under the FCRA;
(b)  Transaction is supported by a time stamped note issued by such member;
(c)  The contract note should indicate unique client identity number, unique trade number and PAN.
TRC – Can be a conclusive evidence but has to be supported by prescribed documents
(1)  The Finance Act, 2012 imposed a mandatory condition to furnish Tax Residency Certificate ('TRC') for availing of benefits under the DTAAs. The TRC helps in establishing the country of residence of a non-resident taxpayer.
Considering these apprehensions of the taxpayers, the provision proposed by the Finance Bill, 2013 that TRC was a necessary but not a sufficient condition for claiming benefit under DTAA has been removed.
(2)  However, the Finance Bill, 2013 had amended section 90 to provide that submission of TRC was a necessary but not a sufficient condition for claiming benefits under DTAA. This amendment was proposed to be introduced retrospectively wef AY 2013-14.
As per the amended version, apart from the submission of a TRC (which is a necessary condition), the assessee shall also provide such other documents and information as may be prescribed for claiming benefits under the DTAAs.
(3)  This proposed amendments raised apprehensions among the taxpayers that it would give powers to the tax collectors to disregard the TRC and view the transaction independently.

Time-limit for completion of an assessment when reference is made to the TPO
Sections 153 and 153B, inter-alia, provide the time-limit for completion of an assessment and re-assessment. These time-limits get extended if a reference is made under Section 92CA to the TPO. These time-limits were extended by Finance Act, 2012 by 3 months wef July 1, 2012.
The Finance Bill, 2013 provides that the revised time-limit will be applicable regardless of the fact whether:
(a)  A reference to TPO is made before, on or after July 1, 2012; or
(b)  The order of TPO is passed before, on or after July 1, 2012.
TAN not required to deduct tax from payment made for purchasing an immovable property
A new section 194-IA is inserted by the Finance Bill, 2013 to provide that transferee is liable to deduct tax at source at 1% from payment being made to a resident-transferor in respect of purchase of an immovable property.
The Finance Bill, 2013 approved of the provisions of Section 194-IA. However, it provided an exemption to the transferee from obtaining a TAN, which is otherwise a mandatory requirement for deduction of tax at source.
Concessional withholding rates on certain rupee denominated long-term infrastructure bonds is withdrawn
The Finance Bill, 2013 proposed to introduce a provision wherein even Indian Rupee loan given by non-resident through the route of Long-term Infrastructure Bonds would also enjoy the concessional rate of tax deduction at source.
This amendment has been withdrawn in the Finance Bill, 2013. However, a new provision is inserted in Section 194LD which provides as under:
(1)  Tax under this section shall be deducted in respect of interest on a rupee denominated bond of an India company or Government security which is payable after May 31, 2013 but before June 1, 2015;
(2)  Tax at concessional rate shall be deducted if payment is made to a FII or a qualified foreign investor;
(3)  Tax to be deducted at 5%;
(4)  If tax is deducted under Sec. 194LD, provisions of Sections 195 and 196D will not be applicable.
Non-resident referred to in Section 194LC will not be penalised for not having a PAN
By virtue of Section 206AA, if PAN of the recipient is not available, tax is deductible either at the normal rate or at the rate of 20%, whichever is higher.
Under the amended provisions of Section 206AA, in respect of payment of interest on long-term infrastructure bonds to a non-resident (as referred to in Section 194LC), tax will be deducted at the normal rate of 5%, even if the non-resident-recipient does not have PAN.
Even gold coins weighing less than 10 gms will be subject to TCS
Sale of bullion/jewellery is subject to TCS provisions in following cases:
With effect from June 1, 2013, consideration of any coin or any other article weighing 10 grams or less shall not be excluded while calculating the monetary limit of Rs. 2,00,000.
(1)  If the sale consideration of bullion (excluding any coin/article weighing 10 grams or less) exceeds Rs. 2,00,000; or
(2)  If the sale consideration of jewellery exceeds Rs. 5,00,000 and out of sale consideration any amount is received in cash.
No wealth-tax on agriculture land
The urban land is not chargeable to wealth-tax if it is a land:
Land classified as agricultural land in the records of the Government and used for agricultural purposes, will not be treated as an 'asset' under Section 2(ea) with retrospective effect from the AY 1993-94. Consequently, such land will not be chargeable to wealth-tax, even if such land is situated in an urban area.
(1)  On which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated; or
As per the amended provision, following lands will not be chargeable to wealth-tax:
(2)  occupied by any building which has been constructed with the approval of the appropriate authority; or
(1) Land classified as agricultural land in the records of the Government and used for agricultural purposes; or
(3)  being an unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him; or
(2) Land on which construction of a building is not permissible under any law for the time being in force in the area in which such land is situated; or
(4)  held by the assessee as stock-in-trade for a period of 10 years from the date of its acquisition by him.
(3) Land occupied by any building which has been constructed with the approval of the appropriate authority; or

(4) An unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him; or

(5) Land held by the assessee as stock-in-trade for a period of 10 years from the date of its acquisition by him.
Keywords-finance bill 2013,2013 finance bill,new income tax rules 2013,new income tax rules on finance bill,finance bill amendment 2013,amendment in finance bill 2013,finance bill 2013,2013 finance bill,new income tax rules 2013,new income tax rules on finance bill,finance bill amendment 2013,amendment in finance bill 2013

Tax collection at source TCS on gold coins less than 10 gm

10:10 PM
Tax collection at source TCS on gold coins less than 10 gm
Finance bill 2013-14 has passed in Lok Sabha on Tuesday 30 April 2013 and there are some amendments in the rules of taxation.   TCS will be applicable on gold coin less than 10 gms. The old rule as well as the new rule are as under.

Old rule
Sale of bullion/jewellery is subject to TCS provisions in following cases:
(1)  If the sale consideration of bullion (excluding any coin/article weighing 10 grams or less) exceeds Rs. 2,00,000; or
(2)  If the sale consideration of jewellery exceeds Rs. 5,00,000 and out of sale consideration any amount is received in cash.
Amend New rule
With effect from June 1, 2013, consideration of any coin or any other article weighing 10 grams or less
shall not be excluded while calculating the monetary limit of Rs. 2,00,000.
Keywords-tcs on gold coin,goin coin tcs new rule,tcs on 10 gms gold coin,tcs on gold, tds on ginni,tcs on gold,tds on gold,income tax on sale on gold coin,income tax on gold coin,tcs on gold coin,goin coin tcs new rule,tcs on 10 gms gold coin,tcs on gold,tcs on ginni, tcs on gold,tds on gold,income tax on sale on gold coin,income tax on gold coin

Custom extended time for reusing 4% CVD in DEPB

4:51 PM
Custom extended time for reusing 4% CVD in DEPB
Custom department has extended time limit for reusing 4% CVD(SAD) amount in DEPB. Now one can reuse the CVD amount upto 30 September 2013. Custom department issued a circular no. 18/2013 dated 29 April 2013 regarding extension of time limit to reuse CVD. Full circular is as under.

Subject:- Refund of 4% CVD (SAD)-Extension of time upto 30th September 2013, for using re-credited 4% CVD (SAD) amount in DEPB-Regarding.
Sir / Madam, 

Your kind attention is invited to the Circular No.27/2010-Customs, dated 13.08.2010, regarding procedure on refund of 4% Special Additional Duty (SAD). The above Circular provides the facility of manual filing of Bill of Entry for utilizing the amount of re-credited 4% SAD refunds for payment of duty in case of re-credited DEPB/ Reward Scheme scrips upto 31-03-2012. Circular No. 10/2012-Customs dated 
29.03.2012 further extended the time upto 30.06.2012 utilizing the amount of recredited 4% SAD refunds for payment of duty in case of re-credited DEPB/ Reward Scheme scrips.

2. References have been received from trade in the Board that importers have not been able to utilize the re-credited amount of 4% SAD. The matter has been examined in consultation with Director General of Foreign Trade (DGFT) and it has been decided to extend time limit for using re-credited DEPB scrips/ Reward Scheme scrips in case of 4% SAD upto 30.09.2013.

3. Board also directs all Chief Commissioner of Customs to ensure that all pending application for refund of 4% SAD paid through DEPB/reward scrips are disposed of by 30-06-2013. The Chief Commissioner may constitute a special team to liquidate these refund claims. The report in this regard should be sent to Board by 04-07-2013.

4. Board also reiterates Para 8 of Board’s Circular No. 27/2010-Customs, dated 13-08-2010 wherein it was mentioned that in the interest of ensuring expeditious grant of refund of 4% SAD, the importers may be
advised to make the initial payment of 4% SAD in cash. DGFT has also informed that no re-crediting shall be done if such payment is made by means of scrips. In other words, in future exporters should pay SAD component in cash if they want a refund.

5. It is emphasized that this is the final extension of time limit for reusing recredited DEPB Scrips/Reward Scheme Scrips.

6. A suitable Public Notice and Standing Order may be issued for the guidance of 
the trade and staff.

Yours faithfully, 
(S.C.Ganger)
Under Secretary (Customs-III/VI)

Apr 28, 2013

LPG gas subsidy will come in bank account from Oct 1

11:30 PM

Government wish to implement the much desired wish to implement direct cash subsidy from October 1, 2013 with giving subsidy direct to the bank account of LPG gas connection holder using the Aadhar card platform.

Government has fixed the date October 1 for implement this scheme throughout the country.

This scheme requires the LPG gas connection holder to open the Aadhar linked bank account to get the subsidy.


Banks start to inform the account holders as well as public to add Aadhar card in the bank account to get the subsidy of LPG gas connection. Some banks choose different way of information like sms, notice in ATMs and branches and notice at websites to inform adding Aadhar card as soon as possible.

A consumer will get around 4000 rupees of subsidy in a year as the number of subsidiary LPG cylinders is limited to 9 per year to a consumer.

UIDAI department has issued around 32 crore Aadhar cards till now but around 80 lakhs Aadhar cards are linked to the bank accounts so far.

Government will implement this desired pilot projects in installments as 20 districts of the country will come in the first phase and will be covered from May 15.

In  this scheme, a consumer need to pay the market price of the LPG gas cylinder which is currently 901.50 rupees per 14.2 kg cylinder and the subsidy amount 435 rupees per cylinder will come in the bank account. The subsidiary price of gas cylinder is 410.50 currently.

There are around 14 crore LPG gas consumers in the country and government needs to bear a lot of amount in subsidy.

Government is in the way of reducing the subsidy amount as well as stops the black marketing and ghost connection.

In this process, first government asks for KYC. Then limited the number of LPG gas connection top 9 per year and now the direct cash subsidy.

A genuine consumer will get little effect with these new formalities but it will surely hit hard to the ghost connections.

There are many things to be done before implementing direct cash subsidy. There are issue for applying Aadhar cards and fingerprint as well as UIDAI must look the matter of speeding the process and provide high class and big machine which can take finger prints of old peoples and children.
Keywords-lpg gas copnnection,lpg gas,number of subsidy gas connection,subsidy of gas connection,subsidy in direct bank account,subsidy in bank account,direct cash subsidy date,date from direct cash subsidy,direct cash sibsidy implement date,when direct cash subsidy start,direct cash subsidy for lpg gas,direct cash subsidy lpg gas cylinder.

Apr 25, 2013

One can avail both sec 54 and 54f deduction on investing one house

5:58 PM
One can avail both sec 54 and 54f deduction on investing one house

Section 54 and section 54F are independent provisions and assessee can claim exemption under both sections for investment in same house

In the instant case, during the relevant financial year, the assessee had earned long-term capital gain (‘LTCG’) out of transfer of two distinct and separate assets - one being a plot of land and the other a house property. He claimed that the entire LTCG arising from the sale of the two assets was invested in purchase of the new residential house and, hence, he was entitled to avail of exemption under sections 54 and 54F. The AO rejected such claim by holding that for claiming exemption under sections 54 and 54F the assessee had to invest in two houses. Further, the CIT(A) upheld the order of AO. Aggrieved assessee filed the instant appeal.

The Tribunal held in favour of assessee as under:

1) Sections 54 and 54F are independent of each other and operate in respect of LTCG arising out of transfer of distinct and separate long-term capital assets. However, both the sections allow exemption only on purchase or construction of a new residential house;

2) The only reasoning on which the lower authorities had rejected assessee's claim of exemption under section 54 was that the assessee couldn’t claim exemption under both the sections towards investment in a single house. According to the lower authorities, for claiming exemption under sections 54 and 54F the assessee had to invest in two houses. Such an interpretation of the provisions was totally misconceived and misplaced;

3) There was also no specific bar either under section 54 or 54F of the Act prohibiting allowance of exemption under both the sections in case the conditions of the provisions were fulfilled;

4) Since long-term capital gain arose from sale of two distinct and separate assets, viz., residential house and plot of land and the assessee had invested the entire capital gain in purchase of a new residential house, he was entitled to claim exemption both under sections 54 and 54F - VENKATA RAMANA UMAREDDY V. DY.CIT [2013] 32 taxmann.com 157 (Hyderabad - Trib.)

NSDL new RPU 3.3 and FVU 3.7 released

4:20 PM
NSDL new RPU 3.3 and FVU 3.7 released
Tin.nsdl has relased new tds/tcs software return preparation utility RPU 3.3 and file validation utility FVU 3.7 for preparing tds/tcs statements. These latest RPU version 3.3 and FVU version 3.7 are very useful for preparing the regular as well as corrective statements for e-tds/tcs and the validation of tds statements. FVU is also used for completing the assessment procedure. 

FVU 3.7 will b e mandatory for preparing tds statements from 26 May 2013. Before this date one can use both 3.6 and 3.7 version.

One can download these e-tds softwares free from below links.


Keywords-rpu 3.3,latest rpu,latest version of rpu,rpu version 3.3,latest rpu and fvu,fvu version 3.7,latest fvu,fvu 3.7,rpu 3.3,latest rpu,latest version of rpu,rpu version 3.3,latest rpu and fvu,fvu version 3.7,latest fvu,fvu 3.7

Apr 24, 2013

Latest file validation utility FVU version 3.7 for quarterly e-tds/tcs statements

1:07 PM
Latest file validation utility FVU version 3.7 for quarterly e-tds/tcs statements
Tin.nsdl has launched latest version of file validation utility FVU version 3.7 for preparing quarterly e-tds/tcs statements. Tin.nsdl has also launched latest version of RPU version 3.3 with the same. This latest FVU version 3.7 is mandatory for preparing statements from 26 May 2013. One can use both 3.6 or 3.7 version for preparing statement before 26 May. The features of new FVU version 3.7 are as follows.


Key features of File Validation Utility (FVU) version 3.7
Section 80CCG: Section 80CCG has been incorporated for Form no. 24Q  Q4. Section code 80CCG is applicable for FY 2012-13 onwards. 

Section 80CCF: Quoting deduction under section 80CCF has been restricted to FY 2010-11 and 2011-12.

Relaxation of PAN validation: PAN compliance validation of 85% pertaining to deductees of section code 206CK (Form no. 27EQ) has been relaxed.

Applicability: FVU version 3.7 is applicable for quarterly TDS/TCS statements pertaining to FY 2010-11 onwards.

FVU version 3.7 will be mandatory w.e.f May 26, 2013. Upto May 25, 2013 FVU version 3.6 and FVU version 3.7 will be applicable.

Download latest version fvu 3.7 from here
Keywords-fvu 3.7,fvu version 3.7,latest tds fvu 3.7,latest tds fvu,fvu latest version for tds,file validation utility,latest file validation utility

New Return preparation utility RPU version 3.3 for e-tds/tcs statement

12:29 PM
New Return preparation utility RPU version 3.3 for e-tds/tcs statement
Tin.nsdl has launched latest version of return preparation utility RPU version 3.3 for preparing e-tds/tcs statement. This RPU 3.3 is the latest version. This will prepare the statements from financial year 2005-06 and onward. The new rpu version 3.3 has many new features which are as follows.

Key features of NSDL Return Preparation Utility (RPU) version 3.3

Section 80CCG: Section 80CCG has been incorporated for Form no. 24Q  Q4. Section code 80CCG is applicable for FY 2012-13 onwards.

Section 80CCF: Quoting deduction under section 80CCF has been restricted to FY 2010-11 and 2011-12.

Relaxation of PAN validation: PAN compliance validation of 85% pertaining to deductees of section code 206CK (Form no. 27EQ) has been relaxed.

Latest FVU version 3.7 (applicable for quarterly TDS/TCS statements pertaining to FY 2010-11 onwards) has been incorporated.

Download RPU version 3.3 from here
Keywords-rpu version 3.3,new rpu 3.3,rpu 3.3,new rpu,latest rpu version,tds rpu 3.3,new return preparation utility,return preparation utility

Apr 23, 2013

Online withdraw or transfer account in employees provident fund

10:23 PM
Employees provident fund organization has given a big relief to the over 50 million provident fund account holder giving the online option to withdraw or transfer the provident fund account.
EPFO commissioner Mr. Anil told to reporters that ‘We have decided to set up a central clearance house which will be operational on July 1. This will enable subscribers to apply online for settlement of the withdrawal and transfer of funds claims’

 The provident fund account holder has the biggest problem transferring the account as in the case of change the job. One doesn’t know how to transfer the account as well as the previous way to transfer account was harassing and timely.

This facility will also give tracking the account as in what stage the account transfer is. It includes online tracking and getting the sms time to time.

EPFO has the dream plan to provide permanent account number to the entire employees provident fund account holder as one needn’t to transfer account one place to other. One account number will work all over country.

But this dream project will take time around 8-10 months and only be possible in 2014 only. The department is setting the infrastructure for it. It needs speed clearance house and online office at every district.

The new system will be very beneficial for the employees as this is department liability to verify the employees account by the employer for withdraw or transfer account. In current system the liability is of employees to get verified the account with the employer.
Keywords-online transfer of pf account,online transfer of epf account,epf account withdraw online,epf account withdraw,epf account transfer,epf account transfer,how to transfer epf account,

Apr 22, 2013

Form 16 part A must be downloaded with TRACES website after 1 April 2012

11:00 PM
Form 16 part A must be downloaded with TRACES website after 1 April 2012
Income tax department has changed the rules of issuing form 16 and 16A. Department also changed the format of form 16 and 16a. There is a new rules now as the Part A of form 16 must be download from TRACES website which is tdscpc.gov.in. Part A of form 16 has the unique tax certificate number now.Income tax department has issued a circular no. 04/2013 dated 17 April 2013 regarding new rules for issuing form 16. Full circular is as under.


New Delhi, the 17th April, 2013 
Sub: Issuance of certificate for tax deducted at source in Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules 1962 -- regarding 

1. Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provision of Chapter XVII-B of the Act. TDS certificate in Form No. 16 is to be issued annually whereas TDS certificate in Form No. 16A is to be issued quarterly. TDS 
Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

2. With a view to streamline the TDS procedures, including proper administration of the Act, the Board had issued Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated 09.04.2012 making it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (Error! Hyperlink reference not valid., previously called TIN website. In exercise of powers under section 119 of the Act, the Board has now decided as following:- 

2.1 ISSUE OF PART A OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE 
MADE ON OR AFTER 01.04.2012:
All deductors (including Government deductors who deposit TDS in the Central Government (Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading through TRACES Portal, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number. 

2.2 AUTHENTICATION OF TDS CERTIFICATEIN FORM NO. 16: 
The deductor, issuing the Part A of Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either
by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31. 

2.3 In other words, Part A of Form No. 16 shall be issued by all the deductors, only by generating it through TRACES Portal and after duly authenticating and verifying it. 

2.4 ‘Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and issued to the deductee after due authentication and verification alongwith the Part A of the Form No. 16 stated above.

2.5 Sub rule (3) of rule 31of the Rules sets the time limit for issuance of Form 16 by the deductor to the employee. Currently, Form 16 should be issued by 31st May of the financial Year immediately following the financial year in which income was paid and tax deducted. 

3.1 The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of download of Part A of Form No. 16 from the TRACES Portal and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for download of Part A of Form No. 16 in electronic form. 

3.2 It is further clarified that Part A of Form No. 16 issued by the deductors in accordance with this circular and as per the procedure, formats and standards specified by the Director General of Income-tax (Systems) and containing Unique Identification Number shall only be treated as a valid compliance to the issue of Part A of Form No. 16 for the purpose of section 203 of the Act read with rule 31 of the Rules.
Keywords-form 16,form 16 part a,how to download form 16,form 16 new,new form 16,new form 16 format


Arm's length price for assessment year 2013-14

4:25 PM
Arm's length price for assessment year 2013-14
Income tax department issued a notification no. 30/2013 dated 15 April 2013 about determination of arm's length price for the assessment year 2013-14. Full notification is as under.


In exercise of the powers conferred by the second proviso to sub‐section (2) of section 92C of the Income Tax Act, 1961 (43 of 1961), the Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one per cent of the latter for wholesale traders and three per cent of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for assessment year 2013‐2014. 

NOTIFICATIONNO. 30/2013 (F.NO. 500/185/2011‐FTDI]
Keywords-arm length price,arm length price for a y 2013-14

Apr 17, 2013

RBI will introduce plastic notes soon

11:30 PM

Reserve bank of India is planning for the plastic notes, a well ambitious work to do in India. In starting this is only on trial basis with 10 rupees note.
Deputy Governor of RBI, Mr. K.C.Chakrabarty said in a meeting on Tuesday 17-April 2013.
He said that Rs. 10 note will be introduced soon in plastic on trial basis and only in select cities.
This is the move to increase the life of currency notes as well as to counter fake currency. There is a big problem of fake currency in India.
Banks did a lot of efforts to increase the life of notes like banning staple the notes packet and writing on the notes. But people as well as bank officials do not follow of not writing on the notes. This decrease the life of notes. He said that the average life of a note in India is less than 9 months.

Also replying to some queries of the public, he said that RBI is doing its best to let the public about checking the genuineness of the currency. When asked ATMs also withdraw fake notes? He said there should be a mechanism for customers to check the genuineness money withdrawn from ATMs.
Keywords-plastic notes in india,10 rupees plastic notes in india,plastic note in india,plastic note,indian currency in plastic,plastic note 10 rupees

Apr 16, 2013

Service tax liability on erection of pandal or shamiana

11:57 AM
Service tax liability on erection of pandal or shamiana
Service tax department make clarification on service tax liability on erection of pandal or shamiana. Service tax department finds that erection of pandal or shamiana doesn't amount to transfer of right to use and hence these services are liable to service tax. The department issued a circular no. 168/3/2013 dated 15 April 2013 regarding liability on erection of pandal or shamiana. Full circular is as under.


Subject:  Tax on service provided by way of erection of pandal or shamiana - regarding.


            Several representations have been received seeking clarification on the levy of service tax on the activity of preparation of place for organizing event or function by way of erection/laying of pandal andshamiana. The doubt that has been raised is that this may be a transaction involving “transfer of right to use goods” and hence deemed sale.

2.         The issue has been examined. “Service” defined in section 65B (44) of the Finance Act, 1994, includes a ‘declared service’.  Activity by way of erection of pandal or shamiana is a declared service, under section 66E 8(f). The process of erection of Pandal or shamiana is a reasonably specialized job and is carried out by the supplier with the help of his own labour. In addition to the erection of pandal or shamianathe service is generally coupled with other services like supply of crockery, furniture, sound system, lighting arrangements, etc.

3.         For a transaction to be regarded as “transfer of right to use goods”, the transfer has to be coupled with possession. Andhra Pradesh High Court in the case of Rashtriya Ispat Nigam Ltd. Vs. CTO [1990 77 STC 182] held that since the effective control and possession was with the supplier, there is no transfer of right to use. This decision of the Andhra Pradesh High Court was upheld by the Supreme Court subsequently [2002] 126 STC 0114. In the matter of Harbans Lal vs. State of Haryana – [1993] 088 STC 0357 [Punjab and Haryana High Court], a view was taken that if pandalis given to the customers for use only after having been erected,  then it is not transfer of right to use goods.

4.         In the case of BSNL Vs. UOI [2006] 3 STT 245 Hon’ble Supreme Court held that  to constitute the transaction for the transfer of the right to use the goods, the transaction must have the following attributes:-

a.     There must be goods available for delivery;
b.    There must be a consensus ad idem as to the identity of the goods;
c.     The transferee should have a legal right to use the goods and, consequently, all legal consequences of such use including any permissions or licenses required therefor should be available to the transferee;
d.    For the period during which the transferee has such legal right, it has to be the exclusion of the transferor : this is the  necessary concomitant or the plain language of the statute, viz., a  “transfer of the right to use” and not merely a license to use the goods:
e.     Having transferred the right to use the goods during the period for which it is to be transferred, the owner cannot again transfer the same right to others.

5.         Applying the ratio of above judgments and the test formulated by Hon’ble Supreme Court, the activity of providing pandal and shamiana along with erection thereof and other incidental activities do not amount to transfer of right to use goods. It is a service of preparation of a place to hold a function or event. Effective possession and control over the pandal or shamiana remains with the service provider, even after the erection is complete and the specially made–up space for temporary use handed over to the customer.

6.         Accordingly services provided by way of erection of pandal or shamiana would attract the levy of service tax.

7.         Trade Notice/Public Notice may be issued to the field formations and tax payers. Please acknowledge receipt of this Circular. Hindi version follows.

Apr 15, 2013

Second layer of security on debit and credit cards from July 1

11:30 PM

There are many fraud transactions with the credit cards. So for stopping the frauds, Reserve bank of India has taken a step to bring credit card transaction more secure. There is an additional security measure is developed with the credit cards.

One needs to enter the PIN of credit card after swipe at retail merchant outlet from July 1. Earlier only signing the slip is what one need to for purchasing from retail outlet.

This second security feature will be very handy for stopping the unwanted or fraud transaction with credit cards.

Credit cards in India has developed with fast pace in recent years but security is always an issue with credit cards. There are as many as 30 crore unauthorized credit card transaction last year.

The main problem is with retail outlet. There are some cases where retail outlet compromise the security of the customer and then cloning process is also a problem.

As of now, there is an option with the customer to enter the pin which will be must after June 30. Banks need to set up PIN enabled swipe machine at retail outlets. One may lose his credit card and the other wants to misuse, but he can’t misuse it as long as he won’t get the PIN number.


This is the second layer of security which will reduce the frauds number.

Banks start changes the magstripe cards to chip-based cards of the customer who at least once use it aboard. There are many complaints of cloning the credit cards that use it in aboard especially Southeast Asia.

The customer who wants to use credit card in aboard must apply for chip based credit cards surrendering the magstripe cards as the present card will not work in aboard after June 30.

Some banks change the PIN digit four to six which is more security proof. One must also change the debit card to chip based debit cards if wants to use it in foreign countries.

Custom impose anti dumping duty on plain gypsum plaster board

2:47 PM
Custom impose anti dumping duty on plain gypsum plaster board
Custom department has imposed anti dumping duty on plain gypsum plaster board. Custom department has issued a notification no. 6/2013 dated 12 April 2013 about imposing anti dumping duty. Anti dumping duty is the tool with the government to save the domestic industry by imposing extra duty on imported goods. Full notification is as under.


Notification No. 6/2013-Customs (ADD)


New Delhi, 12th April, 2013

            G.S.R.     (E)- Whereas in the matter of imports of Plain Gypsum Plaster Boards of all thicknesses and dimensions, (hereinafter referred to as the subject goods), falling under the heading 6809 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred as the said Customs Tariff Act), originating in, or exported from, China People’s Republic, Indonesia, Thailand, and United Arab Emirates (hereinafter referred to as the subject countries) and imported into India, the designated authority in its preliminary findings vide, notification No. 14/45/2010-DGAD, dated the 19th March, 2012,published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 19th March, 2012, had come to the conclusion that-

                     (i)        the  product  under  consideration  has  been  exported  to  India  from  the  subject countries below associated normal values, thus resulting in dumping of the subject goods;
                    (ii)        the domestic industry has suffered material injury;
                   (iii)        the material injury to the domestic industry has been caused by the dumped imports from subject countries,

            and had recommended imposition of provisional anti-dumping duty on the imports of the subject goods, originating in, or exported from, the subject countries;

     And whereas on the basis of the aforesaid preliminary findings of the designated authority, the Central Government had imposed provisional anti-dumping duty, vide notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 32/2012-Customs (ADD), dated the 7th June, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 434 (E), dated the 7th June, 2012;

   And whereas the designated authority vide its final findings vide notification No. 14/45/2010-DGAD,dated 15th January, 2013,published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 15th January, 2013 had come to the conclusion that –

                     (i)        the subject goods have entered the Indian market from the subject countries below associated normal values, thus resulting in dumping of the subject goods;
                    (ii)        the dumping margins of the subject goods imported from the each of the subject countries are above de-minimis;
                   (iii)        the domestic industry has suffered material injury in respect of the subject goods; and
                  (iv)        the dumped imports of the subject goods from the subject countries have caused material injury to the domestic industry.

and had recommended imposition of definitive anti-dumping duty on all imports of subject goods, originating in or exported  from the subject countries in order to remove the injury to the domestic industry;

Now, therefore, in exercise of the powers conferred by sub-section (1) read with sub-section (5) of section 9A of the said Customs Tariff Act read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, on the basis of the aforesaid final findings of the designated authority, hereby imposes definitive anti-dumping duty on the subject goods, the description of which is specified in column (3) of the Table below, falling under sub-heading of the First Schedule to the said Customs Tariff Act as specified in the corresponding entry in column (2), originating in the country specified in the corresponding entry in column (4) and exported from the country specified in the corresponding entry in column (5) and produced by the producer specified in the corresponding entry in column (6) and exported by the exporter specified in the corresponding entry in column (7) and imported into India, an anti-dumping duty equal to the amount indicated in the corresponding entry in column (8), in the currency as specified in the corresponding entry in column (10) and per unit of measurement as specified in the corresponding entry in column (9) of the said Table.
Sub- heading
Description
Country
Country
Exporter
Duty
of
of
of
amount
goods
origin
export
Cu feet US$
680911 00,
 Plain Gypsum    Plaster Board
ChinaPeople’s Republic
China People’s Republic
Any
32.85
680919 00
do
Plain Gypsum PlasterBoard
ChinaPeople’s Republic
Any
Any
   32.85
do
Plain Gypsum    PlasterBoard
Any
China People’s Republic
Any
  32.85
do
Plain Gypsum PlasterBoard
Indonesia
Indonesia
Any
  24.11
do
Plain Gypsum PlasterBoard
Indonesia
Any
Any
24.11
do
Plain Gypsum PlasterBoard
Any
Indonesia
Any
24.11
do
Plain Gypsum PlasterBoard
Thailand
Thailand
Siam
54.46
Gypsum
 Industry
(Sarab
uri) Co. Ltd.
do
Plain Gypsum PlasterBoard
Thailand
Thailand
Siam
54.46
Gypsum
 Industry
(Songk
hla) 
Co. Ltd.
do
Plain Gypsum PlasterBoard
Thailand
Thailand
Any
other combi
nation other
 than 7 and 8 above
73.8
do
Plain Gypsum PlasterBoard
Thailand
Any
Any
73.8
do
Plain Gypsum PlasterBoard
Any
Thailand
Any
73.8
do
Plain Gypsum PlasterBoard
United Arab Emirates
United Arab Emirates
M/s
12.3
Gyps
emna 
Co.(L.L.
C.),
Dubai
do
Plain Gypsum PlasterBoard
United Arab Emirates
United Arab Emirates
Any   
Other
20.15
  Com
Binate
on
other
 than
12
above
do
Plain Gypsum PlasterBoard
United Arab Emirates
Any
Any
20.15
do
Plain Gypsum PlasterBoard
Any
United Arab Emirates
Any
20.15
 Note 1:    For the purposes of this notification Gypsum Boards having water absorption up to and including 5% (Moisture Resistant Boards), Gypsum Boards having a minimum breaking load of 24 newtons in the transverse direction and 50 newtons in the longitudinal direction per millimeter of thickness (Impact Resistant Boards or Fire Resistant Board), Fire Boards, Fire Heat Boards, Impact Boards, Gypsum Ceiling Boards with Moisture Barrier, ECHO Boards, Heat Boards, Anti-mold Boards or Weather Boards, Thermal Boards, Gypsum Ceiling Boards with Aluminium Edges Sealed in White Film and Ceiling tiles shall not be liable to pay  anti-dumping duty.

Note 2:  The anti-dumping duty imposed shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of imposition of the provisional anti-dumping duty, that is, the 7th June, 2012.

Note 3:  The anti-dumping duty shall be imposed on the landed value and shall be payable in Indian currency.

Note 4:  Landed value of imports shall be the assessable value as determined by the Customs  Authority under the Customs Act, 1962 (52 of 1962) and includes all duties of customs except duties levied under sections 3, 3A, 8B, 9 and 9A of the Customs Tariff Act, 1975 (51 of 1975).