Jan 31, 2014

Raise in LIC premium for deduction u/s 80C

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Raise in LIC premium for deduction u/s 80C
Raising the limit of percentage of eligible premium for life insurance policies of persons with disability or disease

Under the provisions contained in clause (10D) of section 10 of the Income-tax Act, 1961 before amendment by the Act, any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, is exempt, subject to the condition that the premium paid for such policy does not exceed ten per cent of the ‗actual capital sum assured‘.

Similarly as per the provisions of sub-section (3A) of section 80C of the Income-tax Act, prior to its amendment by the Act, the deduction under the said section is available in respect of any premium or other payment made on an insurance policy of up to ten per cent of the ‗actual capital sum assured‘.

The above limit of ten per cent was introduced through the Finance Act, 2012 and applies to policies issued on or after 1st April, 2012. Some insurance policies for persons with disability or suffering from specified diseases provide for an annual premium of more than ten per cent of the actual capital sum assured. Due to the limit of ten per cent, these policies are ineligible for exemption under clause (10D) of section 10 of the Income-tax Act. Moreover in such cases, the deduction under section 80C is eligible only to an extent of the premium paid up to 10 percent of the ‗actual capital sum assured‘.

In view of the above, it has now been provided that any sum including the sum allocated by way of bonus received under an insurance policy issued on or after 01.04.2013 for the insurance on the life of any person who is

(i) a person with disability or a person with severe disability as referred to in section 80U, or

(ii) suffering from disease or ailment as specified in the rules made under section 80DDB,

shall be exempt under clause (10D) of section 10 of the Income-tax Act, if the premium payable for any of the years during the term of the policy does not exceed 15 percent of the actual capital sum assured.

Sub-section (3A) of section 80C of the Income-tax Act has also been amended so as to provide that the deduction under the said section on account of premium paid in respect of a policy issued on or after 01.04.2013 for insurance on the life of a person referred to in para 15.4 above shall be allowed to the extent of the premium paid but does not exceed fifteen percent. of the actual capital sum assured.

Applicability: - This amendment takes effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.

Custom Duty drawback rates of all industries effective from 21-09-2013

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Custom Duty drawback rates of all industries effective from 21-09-2013
Custom department issued a circular no. 3/2014 dated 30 January 2014 about duty drawback rates of all industries with effect from 21 November 2013. Full circular is as under.

The Ministry had received representations from Export Promotion Councils, Trade Associations, individual segments of industry, as well as feedback from field formations and other Departments, after the All Industry Rates (AIR) of Duty Drawback effective 21.9.2013 were notified vide Notification No. 98/2013-Cus. (N.T.) dated 14.09.2013.

2.  Certain amendments that are effective from 25.01.2014 have been carried out vide Notification No. 05/2014-Customs (N.T.), dated 21.01.2014. The notification may please be downloaded from www.cbec.gov.in and perused for details. The main changes/amendments made are:

a)  Separate entries have been created for (i) Accelerated Freeze Dried (AFD) crustaceans under tariff item 030603 (ii) knitted or crocheted fabrics containing 5% or more by weight of spandex/ lycra/ elastane, for grey as well as dyed, under tariff items 600210 to 600217 and 600410 to 600417 (iii) gloves, specially designed for use in sports namely golf gloves, made of synthetic materials, under tariff items 611609 and 621608 (iv) fabric swatches under tariff item 630701 and (v) poultry equipment and parts thereof under tariff item 843601;

b)  Drawback Caps have been changed for tariff item nos. 420207, 420210 & 420307, coir products falling under chapter 57 and motor cars of heading 8703;

c)   Drawback rate of 1.7% or 1.9% (Customs portion) under chapter 87 has been changed to 2%. Tractors (8701) have been provided composite rate and cap;

d) Description for tariff item no. 4820200001 has been amended to cover only those stationery items which are either with PVC/BOPP jackets or are laminated. Drawback rates and caps have also been rationalized for tariff item nos. 4820200001, 4820200009, soft stuffed toys (950304), PVC inflatable toys (950305) and croquet sets (95069962);

e) Existing entry under tariff item no. 731902 i.e. “Steel Cops/pirn/bobbins” has been replicated under heading 7326 with same rate and cap.

3. Public Notices and Standing Orders for guidance of the trade and officers/staff may be issued. Difficulties faced, if any, in implementation of the changes may be brought to the notice of the Board. 

Old PAN application procedure continue as new procedure on hold

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Old PAN application procedure continue as new procedure on hold
The CBDT has decided to keep in abeyance the decision to change the procedure for PAN allotment till further orders. Accordingly the operation of circular No. 11 dated 16.01.2014 issued to PAN service providers has been directed to be put on hold till further orders. In the meantime the old procedure of PAN application and allotment shall continue. 

Jan 24, 2014

PAN applicant need to prove original documents for verification

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PAN applicant need to prove original documents for verification
The income tax department issued a press release dated 24 January 2013 regarding new PAN card apply procedure. As per new norms for PAN card, the applicant must produce original documents along with photostat copy for new PAN card. Full notice is as under.

The procedure for PAN allotment process will undergo a change w.e.f.03.02.2014. From this date onwards, every PAN applicant has to submit selfattested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of suchPOI/POA/DOB documents, for verification at the counter of PAN FacilitationCentres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.
Tags-pan card application,new pan card documents,documents needed for pan card,pan card documents requirement,documents required for new pan card

Online filing correctness to TDS statement is available on TRACES

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Online filing correctness to TDS statement is available on TRACES
 In our continuous endeavor to enrich end-user experience, we are glad to bring to you the convenience of online facility of filing corrections to the TDS Statements. With this feature, you will be able to breeze through submitting revisions with ease and confidence, when you complete your transactions on TRACES portal. 
  
To avail the facility, it is requested to Login to TRACES and navigate to “Defaults” tab to locate “Request for Correction” from the drop-down menu. 
  
Pre-requisites for filing Online Corrections: 
  
•Digital Signature is mandatory to be registered on TRACES for raising online corrections. To register your Digital Signature, please refer to the e- tutorial for any help. 
•Online request can be submitted, only if there is a regular statement already filed and processed. 
•All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard. 
  
Functionalities available: 
  
•PAN Correction 
o    Invalid to Valid PAN: The correct name of the Valid PAN will be displayed in “Name as per changed PAN”. 

o    Valid to Valid PAN: If the new PAN entered is Invalid, a message is displayed in the “Action Status”. Please note that there is only one opportunity for a Valid to Valid PAN correction. 

o    All the corrected rows can be viewed by clicking on “Show Edited Rows” on the screen.
  
•Challan/BIN Correction 
o    A list of all Unmatched Challans can be viewed and tagged with this functionality 

o    Please note that the Matched challans cannot be tagged, however, Unmatched Challans can be corrected for “Section Code” and “Amount Claimed” and tagged to Deductee rows in the statement. In addition, NO CHALLAN, which has been used for other purposes outside the system,  should be tagged. 

o    The corrections to Unmatched Challans can be reset by clicking the Reset tab, if this requires to be further corrected. 
  
•Action Summary 
o    After carrying out all the corrections, Action Summary can be referred for all changes carried out. 

o    Please click “Confirm” for all intended changes and the statement is ready for submission. 
  
•Actions to complete Submission 
o    Please navigate to “Defaults” tab to locate “Corrections Ready for Submission” 

o    Click on “Submit for Processing”, which will prompt to digitally sign the submission. 

o    Once the correction is submitted successfully, a Token Number for the same will be available 
  
For any further assistance, please refer to the e-tutorial available on TRACES, before reaching out to us on contactus@tdscpc.gov.in or call our toll-free number 1800 103 0344. 

Jan 21, 2014

Wife has full right to know husband salary

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Wife has full right to know husband salary
 Wives of the government servants use a 'right' to know salary particulars in their husbands and this review should also be generated public by the offices as required under suo-moto disclosure clause of the RTI Act, this Central Information Percentage has held.

Information Commissioner Mirielle Sridhar Acharyulu mentioned every spouse has a right to info on the salary particulars of the other especially when considering maintenance.

"More thus, wife has a right to know this salary particulars of the husband, who is definitely an employee of people authority, " they said.

The commissioner further said that this details about a new government employee's salary isn't a third party data and these must be voluntarily disclosed under Section 4(1)(b)(x) of the RTI Act.

He said this salary paid for the public authority is sourced from the tax paid by the people in general and it has to be disclosed mandatory within the RTI section.

"The information about the salary of staff or an officer of the same public authority are not considered as a third party information... Public authorities are not able to reject such RTI software about salary within the pretext of the next party information, inch he held.

Acharyulu warned the home Department of Delhi government that such refusal of information is going to be wrongful and could incur penalty. The warning was a student in context of a credit application filed by Jyoti Seherawat in search of salary slip connected with her husband that is employed at the home (General) department.

The information has been denied as her husband gave in written for the department that this information really should not be provided to anyone.

Service tax clarification on CENVAT credit against VCES scheme

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Service tax clarification on CENVAT credit against VCES scheme
Service tax department issued a clarification on CEVAT credit against VCES scheme with a circular no. 176/02/2014 dated 20 January 2014. Full circular is as under.

 Trade and Industry has sought clarification as to whether the first installment of tax dues paid under Voluntary Compliance Encouragement Scheme (VCES), 2013 would be available as Cenvat Credit immediately after payment or Cenvat credit can be availed only after payment of tax dues in full and receipt of Acknowledgement of Discharge in form VCES-3.

2.       The issue has been examined. As per VCES, under Section 108 (2) of the Finance Act, 2013, a declaration made under Section 107 (1) shall become conclusive only upon issuance of acknowledgement of discharge under Section 107 (7). Further, in terms of Rule 7 of the Service Tax VCES Rules 2013, the acknowledgement of discharge in form VCES-3 shall be issued within a period of 7 working days from the date of furnishing of details of payment of tax dues in full along with interest, if any, by the declarant.

3.     It would be in the interest of VCES declarants to make payment of the entire service tax dues at the earliest and obtain the discharge certificate within 7 days of furnishing the details of payment. As already clarified in the answer to question No.22 of FAQ issued by CBEC dated 08.08.2013, eligibility of CENVAT credit would be governed by the CENVAT Credit Rules, 2004.

4.      Chief Commissioners are also advised that upon payment of the tax dues in full, along with interest, if any, they should ensure that discharge certificate is issued promptly and not later than the stipulated period of seven days.

Jan 20, 2014

No TDS on service tax paid on rent u/s 194I income tax circular

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No TDS on service tax paid on rent u/s 194I income tax circular
The income tax department has issued a circular no. 1/2014 dated 13 January 2014 regarding clarification of is TDS applicable on service tax paid on rent or not? Income tax department clarifies with the decision of Honorable Rajasthan High court decision . Full circular is as under.

SECTION 194-I OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - RENT – CLARIFICATION REGARDING TDS UNDER CHAPTER XVII-B ON SERVICE TAX
COMPONENT COMPRISED OF PAYMENTS MADE TO RESIDENTS 
CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014 

The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be 
deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), 
on the amount of rent paid/payable without including the service tax component. 

Representations/letters has been received seeking clarification whether such principle can be extended 
to other provisions of the Act also. 

2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated 
1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal 
No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer 
and the payee, the amount of service tax is to be paid separately and was not included in the fees for 
professional services or technical services, no TDS is required to be made on the service tax 
component u/s 194J of the Act. 

3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the 
Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the 
payee, the service tax component comprised in the amount payable to a resident is indicated separately, 
tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without 
including such service tax component. 

4. This circular may be brought to the notice of all officer for compliance. 

Valid seaport airport and inland container depot for import and export

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Valid seaport airport and inland container depot for import and export
Custom department issued a notification no. 1/2014 dated 17 January 2014 about valid seaport, airport, inland container depot and Land custom station where import and export can be done though. Full notification is as under.

 G.S.R. 28 (E).— In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India against an Advance Authorisation issued in terms of paragraph 4.1.3 of the Foreign Trade Policy meant for export of a prohibited item in terms of paragraph 4.4.1 (b) of the Handbook of Procedures Volume 1 (hereinafter referred to as the said authorisation) from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 to 1975) and from the whole of the additional duty, safeguard duty and anti-dumping duty leviable thereon, respectively, under section 3, 8B and 9A of the said Customs Tariff Act, subject to the following conditions, namely :-

(i)    that the said authorisation, issued by the Regional Authority,  is produced before the proper officer of customs at the time of clearance for debit;

 (ii)    that the said authorisation bears the name and address of the importer, the description and other specifications of the imported material and the description, quantity and value of exports of the resultant product;

 (iii)    that the imported material corresponds to the description and other specifications, where applicable, mentioned in the said authorisation and the value and quantity thereof are within the limits specified in the said authorization;

 (iv)   that the export is made subject to pre-import condition under notified Standard Input Output Norms (SION) or under prior fixation of norms in terms of Para 4.4.2 of Handbook of Procedures Volume 1;

 (v)    that the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in respect of which the conditions specified in this notification are not complied with, together with interest at the rate of fifteen percent. per annum from the date of clearance of the said materials:


(vi)   that the imports under the said authorisation and  the subsequent exports for fulfilling the export obligation are undertaken only through the seaports or airports or Inland Container Depots or Land Customs Stations which are specified in the Table below:-
EDI- enabled Port/ ICD/LCS
Located at
Seaport
Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Kakinada, Kandla, Kolkata, Krishnapatnam, Ennore (Tamilnadu), Karaikal (Union territory of Puducherry), Magdalla, Mangalore, Marmagoa, Mumbai, Mundhra, Nagapattinam,Nhava Sheva, Paradeep, Pipavav,  Tuticorin, Visakhapatnam
Airport
Ahmedabad, Bangalore, Chennai, Cochin, Coimbatore,  Delhi, Hyderabad, Indore, Jaipur, Kolkata, Mumbai, Trivandrum, Visakhapatnam
Inland Container Depot
Agra, Ahmedabad,  Bangalore, Bhilwara, Bhiwadi, Bhusawal, Chettipalayam(Tamilnadu), Chheharata (Amritsar), Coimbatore, Dadri,  Daulatabad (Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Hyderabad, Irugur Village (Tamilnadu),Irungattukottai (SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk), Jaipur, Jallandhar, Jodhpur, Kanpur, Karur, Kattupalli Kota,  Loni (District Ghaziabad), Ludhiana, Mandideep(District Raisen), Marripalem Village (in Edlapadu Taluk of District Guntur), Miraj, Moradabad, Nagpur, Nasik, Patli (Gurgaon), Pithampur (Indore), Raipur, Rewari, Talegaon (District Pune), Tirupur,  Tuticorin, Vadodara,Waluj (Aurangabad)
Land Customs Station
Jogbani,  Petrapole,  Raxaul




 (vii)         that the export obligation as specified in the said authorisation (both in value and quantity terms) is discharged within ninety days from the date of clearance of imported materials by exporting the resultant product (specified in the said authorization),-

 a)      which is manufactured in India using the material imported against the said authorisation; and

 b)      in respect of which the facility under rule 18 (rebate of duty paid on materials used in manufacture) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not been availed;

 (viii)        that the Authorization Holder fulfills the export obligation, including the stipulated value addition;

 (ix)          that nothing contained in the provisions of Para 4.28 of Handbook of Procedures Volume 1 shall be applicable in relation to the said authorization;

 (x)           that at the time of export the authorisation holder gives an undertaking to the effect that the resultant product, being exported against the said authorization, which is otherwise prohibited for export, has been manufactured from the material already imported under the said authorisation and the said undertaking contains the details of the imports and exports made under the said authorisation;

(xi)          that the said authorization shall not be transferred and the imported material shall be subject to actual user condition and shall not be sold or transferred for any purpose, or by any means, including job work;

(xii)         that the importer produces evidence of discharge of the export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, within a period of sixty days of the expiry of period allowed for fulfillment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow.

 2.         Where the materials are found defective or unfit for use, the said materials may be re-exported back to the foreign supplier within thirty days from the date of clearance of the said material or such extended period, not exceeding a further period of thirty days, as the Commissioner of Customs may allow:

 Provided that at the time of re-export the materials are identified to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the materials which were imported.

Explanation. – For the purpose of this notification, -

(i)  “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry of Commerce and Industry, Department of Commerce No. 1 (RE – 2012) /2009-2014 dated the 5th June, 2012 as amended from time to time;

(ii) “Handbook of Procedures Volume 1” means the Handbook of Procedures Volume 1, 2009-14, published in the Gazette of India, Extraordinary, Part I, Section 1 vide public notice of the Government of India in the Ministry of Commerce and Industry, Department of Commerce, No.01 (RE - 2012)/2009-2014, dated the 5th June, 2012 as amended from time to time;
(iii) “Manufacture” has the same meaning as assigned to it in paragraph 9.36 of the Foreign Trade Policy;

(iv)  “Materials” means raw materials, consumables, fuel and packaging materials required for manufacturing of the resultant product;

(v)        “Regional Authority” means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant an authorisation including a duty credit scrip under the said Act.

Jan 18, 2014

Labour Ministry is working on minimum 1000 Rs. pension for EPFO subscibers

7:03 PM 1
Labour Ministry is working on minimum 1000 Rs. pension for EPFO subscibers
The  labour ministry will probably soon approach the Cabinet for any minimum pension connected with Rs 1, 000 each month for the subscribers on the Employees Provident Deposit Organisation. The ministry also can notify a hike in the basic wage reduce to Rs 15, 000 each month for a worker to get mandatorily covered from the EPFO.

After Oscar Fernandes took over as the labour minister, many pending issues were wear fast track. The UPA major brass also wished to announce a number of the labour welfare measures ahead of the Lok Sabha political election.

“The proposal intended for minimum pension is going to be put before your Cabinet soon, " the state run familiar with your development told FE. The EPFO will probably soon notify a hike in the basic wage to help Rs 15, 000 to get compulsorily covered underneath the EPFO, " the official said.

At current, employer contributes 8. 33% on the basic wages toward EPS, and the federal government contributes just 1. 16%. The proposal is usually to raise the government’s contribution to 1. 79% and hike the minimum decided basic salary ahead under EPF to help Rs 15, 000 each month from the current Rs 6, 500. Both the moves are likely to help cut your EPS deficit in addition to enable it to present a minimum pension of Rs 1, 000 monthly.

Although the money ministry was next to raising the lowest pension to Rs 1, 000 each month as it would entail extra fiscal burden connected with Rs 1, 100 crore every year, the UPA top brass has accepted the notion.

The finance ministry received told EPFO earlier to uncover its own resources as the extra fiscal load for ensuring a Rs 1, 000-minimum monthly pension can be Rs 1, 100 crore in addition to the R1, 600 crore it paid in 2012-13. Finances provisions will in any case increase to about Rs 1, 400-1, 500 crore simply by 2018-19.


The labour ministry had also remarked that additional burden intended for Rs 1, 000 monthly lowest pension under EPS is quite a bit less than Rs 7, 000 crore yearly additional burden around the exchequer for escalating pension (including senior years pension) under your the National Cultural Assistance Programme.

Jan 17, 2014

Permanent Provident fund account number will come in 2014-15

6:03 PM 1
Permanent Provident fund account number will come in 2014-15
Permanent provident deposit (PF) account variety, which will help over five crore EPFO members to reduce the process connected with transferring their accounts on changing work, will be a fact in 2014-15.

The permanent PF accounts number would in addition help provide cultural security benefits in order to workers in significant like construction where by they change contractors and workplace frequently.

According towards the 'Action Plan' handed over by the Labour Ministry towards Employees' Provident Fund Organisation (EPFO), the body has to do place a technique for unique employee number which will eventually make its facilities at par with core banking support.

"The EPFO is working away at the system to deliver permanent account numbers to its customers. It is not difficult to provide that facility in 2014-15, " a top EPFO official explained.

To provide everlasting PF account numbers to subscribers, EPFO should set up a new central server which will be connected in order to its all 123 field offices.

At found, the EPFO subscribers have to apply for move of PF accounts on changing work. They are provided a whole new PF account number each and every time they change work.

The retirement fund body has recently started the service of online move of PF accounts on changing work in October last year.

However, there are a sizable number connected with PF transfer states, which are filled out manually because all firms covered by EPFO have not registered their a digital signatures, which is a prerequisite for the internet facility.

The facility connected with online transfer connected with PF accounts has reduced the effort load of EPFO considerably as over 13 lakh people are filed pertaining to such claims yearly.


The EPFO desires 1. 2 crore states in 2013-14, as well as around 13 lakh PF move claims. During 2012-13, the item settled 107. 62 lakh claims, 88 percent of which had been processed within thirty days, as prescribed because of the body's citizen constitution.

Number of subsidised LPG gas cylinders increased to 12

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Number of subsidised LPG gas cylinders increased to 12
Using Congress leader Rahul Gandhi on Friday demanding a hike in cover on subsidised food preparation gas cylinders (LPG), PM Manmohan Singh-led UPA govt has agreed to take action, say Oil Ministry options.

Rahul Gandhi is continuing a populist streak as he sales opportunities the ruling Congress party right tough national selection due by May possibly.

The Congress celebration vice president acquired asked Prime Minister Manmohan Singh to boost the cap on annual sales involving subsidised cooking propane cylinders to 12 coming from 9 per residence.

"There is one more thing which the total country, especially women are concerned, that is being unfaithful (gas) cylinders usually are not enough, we will need 12 cylinders, inches he said.

The demand will probably further strain federal finances which are under pressure when confronted with weak tax receipts within a slowdown-hit economy and rising public expenses.

India's state-run businesses reported a loss in 186 billion rupees ($3. 02 billion) on selling cooking propane cylinders below market price in the first half the current economical year that ends in March.

CBDT directs to issue certificate of lower deduction of TDS form on time

5:55 PM 0
CBDT directs to issue certificate of lower deduction of TDS form on time
CBDT directs to issue certificate of lower deduction or non deduction of tax at source under section 197 of income tax act 1961 with instruction no.l/2014 dated 15 January 2014.

As per citizen charter the line prescribed for a decision on application of lower deduction  or non deduction of tax in one month. Instances have been brought to the notice of the board about considerable delay in issuing lower/non deduction of certificate under section 197 by jurisdictional assessing officer.

I am directed to say that the commitment to tax payers as per citizens charter must be scrupulously adhered to by all assessing officers and all applications of lower or non deduction of tax at source filed under section 197 of income tax act 1961 must be disposed of within the stipulated time frame as above.

This may be brought to the notice of all officers in the field for compliance.

Jan 16, 2014

Excise department can reject price determination if goods are sold less than cost for a long period

10:58 PM 1
Excise department can reject price determination if goods are sold less than cost for a long period
Subject – Implementation  of decision of Hon’ble Supreme Court in case of M/s Fiat India ltd – reg . 

Attention is invited to the judgment of  Hon’ble Supreme Court dated 29th August , 2012  in case of Fiat India Ltd [ 2012-TIOL-58-SC-CX or 2012 ( 283 ) E.L.T 161 ( S.C ) ] ( hereinafter referred to as the FIAT judgment ) . References have been received from trade and field formations seeking clarification on implementation of the judgment . The facts in the case of M/s Fiat India Ltd were that the cars were sold at a price substantially lower than the cost of the manufacture and such sales continued for a period of five years . The company admitted that the purpose of such pattern of sale was to achieve market penetration . The Hon’ble Supreme Court held that in such circumstances revenue could reject the transaction value declared under section 4 and invoke the provisions of the Central Excise Valuation ( Determination of Price of Excisable Goods ) Rules , 2000 to assess Central Excise duty . Following clarifications are issued in this regard - 

Transaction Value below manufacturing cost and profit

2. The first issue is whether the declared transaction value can be rejected in all cases where the transaction value is lower than the manufacturing cost and profit . The Hon’ble Supreme Court has not ruled that transaction value can be rejected in all cases where the declared value is lower than the manufacturing cost and profit . At paragraph 66 in the FIAT judgment , the Hon’ble Court has declined to hold its earlier judgment in case of Collector of Central Excise , New Delhi Vs Guru Nanak Refrigeration Corpn [ 2003(153) ELT 249 (SC) ] per-in curiam , distinguishing it on the basis of the facts of the  case , though the transaction value in case of M/s Guru Nanak Refrigeration Corpn was less than the manufacturing cost and profit . The Hon’ble Supreme Court has cautioned against drawing general conclusions and inferences quoting the truism stated by Lord Halsbury that “ a case is only an authority for what it actually decides and not for what may seem to follow logically from it. ”

2.1  Further , in paragraph 50 , the Hon’ble Supreme Court has cited two instances where a manufacturer may sell goods at a price lower than the cost of manufacture and profit and yet the declared value can be considered as normal price . These instances are when the company wants to switch over its business or where a manufacturer has goods which could not be sold within a reasonable time . The Hon’ble Court has further held that these examples are not exhaustive . Therefore , mere sale of goods below the manufacturing cost and profit cannot be taken as the sole basis for rejecting the transaction value .

Verification of payment of duty

3.  The second issue is regarding the procedure to be adopted by the field officers to identify cases where the ratio of the judgment would apply. It may be noted that , under the self-assessment procedure , there is a legal obligation on the assessee to correctly assess and pay the duty in terms of the Central Excise Act , 1944 read with the Valuation Rules , 2000 . Verification of this aspect may be conducted by the Central Excise officer during the audit of units . Aspects such as the percentage of loss at which sale has taken place ,  the period for which such loss making price has prevailed , reasons for sale at such loss making price , whether such sales  are contrary to the standard and accepted business practices , and whether such sale is leading to erosion of capital of the company , may be looked into . In addition , due care may be taken at the level of the Commissioner to see whether the case at hand is similar to the facts and circumstances of the FIAT case .

3.1  Calculations of manufacturing cost may be carried out using CAS-4 standards . Information submitted by the manufacturer , duly certified by a Chartered or Cost Accountant should normally be accepted . Only where a decision to investigate a case has been taken at the level of the Commissioner and it is considered necessary in the interest of investigation, steps such as ordering Cost Audit of the Unit or summoning of the Costing data should be undertaken .

Period of application
4.  The third issue is whether the judgment can be applied for periods prior to the date of the judgment ie 29-8-2012 , invoking the extended period of limitation . Under the provisions of valuation law , in a case where price is not the sole consideration for the sale , money value of any additional consideration flowing directly or indirectly from the buyer to the assessee is added to the transaction value in terms of rule 6 of the Central Excise Valuation Rules , 2000 . However , in the FIAT judgment , sale of cars at an abnormally lower price to penetrate the market has been considered by the Hon’ble Supreme Court as  constituting extra-commercial consideration , even when there was no additional consideration of money value flowing directly or indirectly from the buyer to the seller . For the period prior to the date of the judgment , in cases where a show cause notice has been issued on the grounds of the FIAT judgment alone , there may not be a case for invoking the extended period of limitation . In such cases , only the normal period of limitation will apply .  
4.1 For the period after the date of the judgment  , i.e from 29- 8-2012 onwards , if there is a sale in the circumstances similar to the case of M/s FIAT and yet transaction value of goods is declared as the correct assessable value , then such declaration would amount to wilful mis-statement of the assessable value .
5  The contents of this Circular may be brought to the notice of the trade / exporters by issuing suitable Trade / Public Notices. Suitable Standing Orders / Instructions may     be  issued for the guidance of the assessing officers . Difficulties faced , if any , in  implementation of the Circular may please be brought to the notice of the Board at an early date.

Jan 15, 2014

Loan EMI Tenure and rate of interest calculator in excel

11:00 PM 0
Loan is the common thing what we mostly know and be a part of it in anyway like car loan,personal loan, cash credit etc.
Loan is the amount which you need to be repay in installments which is called EMI(Equal monthly Installments). EMI is calculated with the loan amount, rate of interest and Loan tenure.
You can find loan EMI calculator here and there on the net but all in one calculator for loan is a thing which you can rarely find.
This is three in one excel based loan EMI calculator which may be very useful to the people. It calculates theses terms.
1- Loan EMI
2- Loan Tenure
3- Loan rate of interest

So it will ease the work for the loan problems.
In this calculator you need to put three items and the third will be calculated automatically like if you put Loan amount, rate of interest and loan tenure, EMI will be calculated automatically.
So this is really a handy tool for the loan calculations.
You can download this calculator from here

Pension regulator tightens rules to cut back delay in deposits

6:37 PM 0
Pension regulator tightens rules to cut back delay in deposits
The Pension Fund Regulating and Development Authority (PFRDA) has tightened rules for adding contributions by different central and state government departments after numerous complaints from shareholders of delays as well as losses.

Delay in adding the pension side of the bargain sometimes lowered your fund values of subscribers and brought on inordinate losses as the new pension scheme (NPS) operates using a real-time basis having subscribers funds invested through units whose net asset benefit fluctuates with alterations in prices of bonds and equities.

PFRDA sources told FE the new rule is applicable for central and state government departments and not really retail investors whom deposit their contribution by way of a bank.

“There have been delays due to cheque clearing as well as cheque rejections in some cases where the pay out and accounts workplaces of central federal and strict treasury workplaces of states never have adopted the NEFT/RTGS transaction facilities, ” the state said.

In some sort of notification, PFRDA said it's been decided to bring to close the remittances of NPS contribution resources through physical instruments and also to accept remittances only through electronic mode from April 2014.

“Accordingly from April 1, every one of the nodal offices remitting NPS contributions have to mandatorily remit NPS through electronic mode – NEFT as well as RTGS only, ” your regulator said.


Previously, the Chief Vigilance Commission had ordered government offices to change to electronic mode to avert delays or maybe frauds. However, some government departments continue to operate through your physical mode, causing scope for errors, delays and rejections.

Jan 14, 2014

New income tax rules-dent in the salary

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New income tax rules-dent in the salary
Like yearly, the Central Board of Direct Taxes (CBDT) updated their annual circular associated with withholding taxes through salary payments. The circular has been updated to sync with all the amendments brought in because of the Budget earlier this season relating to Budgetary 2013-14.

While there was certain amendments brought to the existing provisions of the Act, certain brand new provisions were unveiled. The key conventions introduced are seeing that under:

Levy of surcharge associated with 10% on income tax where the total income of the individual exceeds R1 crore during the FY 2013-14 only. Rebate of reduced of R2, 000 or just how much taxes payable, under section 87A for people having total taxable income approximately R5 lakh. Further deduction of R1 lakh under section 80EE with interest paid with housing loans, on fulfilment of the following conditions: Loan drawn in FY 2013-14; bank loan not exceeding R25 lakh; value of the residential property not necessarily exceeding R40 lakh and this the individual isn't going to own any residential property within the date of sanction of the loan.

One of the key amendments within the new circular is the change in the particular documentation requirements regarding claiming House Lease Allowance (HRA) exemption. A salaried worker claiming HRA exemption is currently required to mandatorily statement the PAN of the landlord, where the hire paid by your ex exceeds R1 lakh each year (which was previous R2 lakh per annum).

The CBDT had earlier during the year altered the treatment for issuing Style 16. Form 16 shall have two parts — part A and part B (Annexure). Part A might be downloaded from the income tax department’s website REMNANTS and must have a unique identification amount. Part B will have to be prepared by the particular deductor manually and issued for the deductee after thanks authentication and verification as well as Part A associated with Form 16.

If the employer ceases to deduct whole or any part of the tax at supply (TDS) or after deducting ceases to deposit the entire or any part of the tax to the credit of the central government in the prescribed time, he will be liable to interest consequences. Further, the modern circular,

in improvement, states that such employer will be deemed to possibly be an assessee in default according of such tax and will be liable for the particular penal action under section 221 of the Act.

Deductions, according of investment in Rajiv Gandhi Value Savings Scheme 2012, is now granted for three consecutive financial year beginning with the financial year where the listed equity gives you or units ended up first acquired. Employers should carefully study the circular to know the changes brought to the tax law associated with withholding of taxes on salary payment designed to their employees in order that they are compliant pertaining to taxes and reduce any interest and/or penal consequences which could occur as a result of any default.

Jan 13, 2014

Interest rate on PF is 8.75% for 2013-14

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Interest rate on PF is 8.75% for 2013-14
Pension fund body EPFO on Monday thought we would increase the interest rates on Provident Account deposits to 8. 75 % for 2013-14, a move that could benefit about 5 crore members.

"We have thought we would recommend to the government 8. 75 per cent interest rates for 2013-14 for you to its subscribers, " said Your time Minister Oscar Fernandes following a meeting of the actual EPFO trustees.

The actual Central Board involving Trustees, which would be the apex decision-making body of the Employees' Provident Account Organisation (EPFO), met on Saturday and approved the interest rate.

According for you to sources, the system had surplus cash, which enabled the interest rate to possibly be increased from 8. 5 per cent in the previous financial year (2012-13).

The EPFO's recommendation will be vetted by the actual Finance Ministry. When the ministry approves deciding, the interest will be credited to the actual accounts of members.

According to solutions, the decision to further improve the rate was taken in view of the actual forthcoming Lok Sabha polls.

The EPFO is estimated with an income of Rs 20, 796. 96 crore in the present financial year.

Payment of interest with the rate of 8. 5 % to subscribers would've required Rs 20, 740 crore and left a extra of Rs 56. ninety-six crore, according for you to earlier projections.
Tags-interest rate of pf,pf interest rate 2013-14

Jan 10, 2014

NRI can be joint account holder in saving account of resident Indian

4:07 PM 1
NRI can be joint account holder in saving account of resident Indian
Reserve bank of India liberalize the rules of joint account holder with a circular no. 87 dated 9 January 2013. Now the NRI(Non resident Indian) who is close relative of Resident Indian can be joint account holder of resident Indian. Full circular is as under.

Attention of Authorised Dealer (AD) banks is invited to A.P.(DIR Series) Circular No.12 dated September 15, 2011 in terms of which individuals resident in India were permitted to include non-resident close relative(s) (relatives as defined in Section 6 of the Companies Act, 1956) as a joint holder(s) in their resident savings bank accounts on “former or survivor” basis. Such non-resident Indian close relatives are however not eligible to operate the account during the life time of the resident account holder in terms of said instructions.

2. Reserve Bank has received representations that for operational convenience the Non-Resident Indians (NRIs), as defined in Regulation 2(vi) of FEMA Notification No.5 dated May 3, 2000, may be permitted to operate such accounts on “Either or Survivor” basis. Accordingly, on a review, it has been decided that AD banks may include an NRI close relative (relatives as defined in Section 6 of the Companies Act, 1956) in existing / new resident bank accounts as joint holder with the resident account holder on “Either or Survivor” basis subject to the following conditions:

Such account will be treated as resident bank account for all purposes and all regulations applicable to a resident bank account shall be applicable.

Cheques, instruments, remittances, cash, card or any other proceeds belonging to the NRI close relative shall not be eligible for credit to this account.

The NRI close relative shall operate such account only for and on behalf of the resident for domestic payment and not for creating any beneficial interest for himself.

Where the NRI close relative becomes a joint holder with more than one resident in such account, such NRI close relative should be the close relative of all the resident bank account holders.

Where due to any eventuality, the non-resident account holder becomes the survivor of such an account, it shall be categorized as Non-Resident Ordinary Rupee (NRO) account as per the extant regulations.

Onus will be on the non-resident account holder to keep AD bank informed to get the account categorized as NRO account and all such regulations as applicable to NRO account shall be applicable.

The above joint account holder facility may be extended to all types of resident accounts including savings bank account.

3. While extending this facility the AD bank should satisfy itself about the actual need for such a facility and also obtain the following declaration duly signed by the non-resident account holder:

“I am the joint account holder of SB/FD/RD/Current Account bearing No ……. which stands in my name and in the name of Shri/Smt. ……….. who is my ………. (state relationship). I hereby undertake that I shall not use the proceeds lying in the above account for any transaction in contravention of the provisions of the Foreign Exchange Management Act (FEMA) 1999, Rules/Regulations made thereunder and the related circulars/instructions issued by the Reserve Bank from time to time. I further undertake that if any such transaction is put through the said account in contravention of the FEMA, 1999 or Rules/Regulations made thereunder, I shall be held responsible for the same. I shall intimate my bank in the event of any change in my Non-resident / Resident status.”

4. Authorised Dealer Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.

5. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the FEMA, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Tags-joint account holder rules,who can be joint account holder,what is joint account,joint saving account,joint account types,joint account rules and regulations,joint account india,joint account relationship,joint saving account relationship

Custom classifies of transmission shafts and power takeoff shafts

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Custom classifies of transmission shafts and power takeoff shafts
Custom department issued a classification of transmission shafts and power take off shafts in the HS harmonised custom tariff with a circular no. 2/2014 dated 9 January 2014. Full circular is as under.

Subject: Classification of “Transmission shafts / Power takeoff (PTO) shafts” in the HS Harmonised Customs Tariff - regarding

Doubts have been raised on whether “Transmission shafts / Power takeoff shafts” would be classifiable under 8433 or 8432 as parts of agricultural machinery. This issue was also discussed in the Conference of Chief Commissioners of Customs and Directors General on Customs Tariff and Allied Matters, held on 05-06 June 2013, at Vishakhapatnam and subsequently examined by the Board. The competing headings, subheadings and Tariff Items are as follows:

8432 Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports- ground rollers

84329010, parts of agricultural machinery falling within subheadings 843210 (Ploughs), 843221(Disc harrows), 843229 (Other), 843230 (Seeders, planters and transplanters), 843240 (Manure spreaders and fertiliser distributors), and 843290 (Others)

8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 8437”; parts of goods of heading 8433 is covered in subheading 843390.  

8483 Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)

848310 Transmission shafts (including cam shafts and crank shafts) and cranks;
84839000 Toothed wheels, chain sprockets and other -transmission elements presented separately; parts.

2.         Classification of goods is to be determined by application of the General Rules of Interpretation (GRI's) of the First Schedule to the Customs Tariff Act, 1975. GRI 1 requires that in classifying articles, for legal purposes, it “shall be determined according to the terms of the headings and any relative section or chapter notes, ..". Hence, all relevant legal texts must be considered. In this regard, Note 2 (a) to Section XVI of Customs Tariff and HS Explanatory Notes to Section XVI reads as, “parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings”. The Note 2(b) to Section XVI reads as, “Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of 8479 or 8543) are to be classified with the machines of that kind or in 8409, 8431, 8448, 8466, 8473, 8503.00.00, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of 8517 and 8525 to 8528 are to be classified in 8517”.

3.         As regards, goods covered in Chapter 84 and 85, parts are classified consistent with the provisions of Section Note 2 to Section XVI. When the products in question qualify as transmission shafts, then irrespective of the intended or actual final use, such shafts get covered under Note 2(a) of Section XVI. Subsequent Sections 2(b) and 2(c) will not apply at all. As per Section Notes, Chapter Notes and in accordance with the headings, shafts merit classification under heading 8483 and not under 8432 or 8433. It is seen that HS Explanatory Notes to headings 8432 and 8433 as regards parts falling thereon, stipulates that classification of parts of machines of heading 8432 and 8433 are: “Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI)...” . The parts in question that is, “the Power takeoff (PTO)” shaft of “Power Tiller” or “Rotary Tiller”, specifically designed and intended to be used solely and principally with machines of heading 8432 / 8433, merit entry in heading 8483, and subheading 848310, and hence the classifications of shafts would not be excluded from Section Note 2(a) of Section XVI. Additionally, there is no specific exclusion of Transmission shafts manufactured for use in specific equipment or machinery of 8432 / 8433 in the relevant Section Notes, Chapter Notes, and headings and subheadings pertaining to goods of Chapter 84 and 85.

4.         In the Conference of the Chief Commissioners of Customs and Directors General on Customs Tariff and Allied Matters, there was consensus on classifying such products at issue under heading 8483. In view of the same, the Board desires that such products should be classified under 8483, subheading 848310, Tariff Item 84831099 by application of General Rules for the Interpretation (GRI) of Import Tariff, Rule 1, Section Note 2(a) to the General Explanatory Note to Section XVI, and 6. 

5.         All pending assessments, if any, may be finalized accordingly. Difficulty faced, if any, may be brought to notice of the Board.
Tags-custom circular no. 2/2014,custom circular,custom circular no. 2

Jan 9, 2014

Abolishing Income tax possible but need home work- Experts

5:26 PM 1
Abolishing Income tax possible but need home work- Experts
There is a demand arose by one of Dharamguru Mr. Ramdev to abolish income tax and insert some banking transaction tax for nap corruption and black money. BJP prime ministrial candidate Mr. Narender Bhai Modi gives support  to his demand.

Some Experts say its desirable and possible too and some other say that this move may become against against social equity.

Describing the concept as "aspirational", Ficci President Sidharth Birla said: "If the steps proposed enhance revenue by broadening and broad basing the tax payer base and help improve transparency of regulatory framework, we will tend to welcome these aspects. .. 

The proposal, Birla said, would involve hard arithmetic as the revenue losses would have to be recovered from other sources while stressing that India needs a stable, equitable and a friendly tax regime. 

President of industry body PHDCCI Sharad Jaipuria said: "The personal income tax should be reduced or abolished with alternate sources. I believe, government has the potential to generate revenue from other sources which are unexplored yet".

While pointing out implementation of the tax proposal is within the realm of possibility, some experts also opined that it has the potential to deal with menace of blackmoney.

"...it may reduce corruption and collusion with the Government a .. agencies. It may remove the tax burden from individual as well as corporate taxpayers. The taxpayers will also not indulge into practices like falsification of accounts, money laundering and other illegal ways of tax evasion," said Girish Vanvari, Co-Head of Tax, KPMG in India.

He said, however, that a comprehensive and holistic analysis is required before going for such a drastic reform.

Another leading global tax consultant PwC India, however, expressed apprehensions sayin .. that abolition of income tax would be against the progressive system of revenue collection. 

HDFC bank offer saving account with unlimited ATM transaction

5:23 PM 0
HDFC bank offer saving account with unlimited ATM transaction
HDFC bank offers a saving account named savingMax account with which you can do unlimited numbers of ATM transaction with HDFC bank ATM or any other bank ATM. The features of HDFC savingMax account are as follows.

Free Titanium Royale Debit Card for primary account holder for lifetime of the account.

Through ‘MoneyMaximiser’ facility, Surplus funds get converted into high-yielding Fixed Deposits

Unlimited Free transactions at all HDFC Bank ATMs and non-HDFC Bank domestic ATMs

Accidental Hospitalisation Insurance cover of Rs. 1 lakh p.a


Open an Online trading account at Rs.499/- only

Folio maintenance charges waived for the first year on new Demat Accounts

50% off on annual locker rental charge for the first year*
Tags-hdfc saving account,hdfc saving account new,new hdfc saving account,savingmax account hdfc,hdfc saving max account

Direct tax collection up 12.33% for 9 months April-December

5:05 PM 1
Direct tax collection up 12.33% for 9 months April-December
Gross direct tax series rose 12. 33 per cent to Rs four. 81 lakh crore through the first nine months with this financial year.

One on one tax collections totalled Rs four. 29 lakh crore through the April-December period within 2012-13.

Net direct tax collections went up by 12. 53 per cent to Rs four. 15 lakh crore through the period this calendar year, compared with Rs 3. 69 lakh crore in the year-ago period, the finance ministry said inside a statement on Friday.

The gross variety of corporate taxes improved 9. 35 per cent to Rs 3. 1 lakh crore from Rs 2. 84 lakh crore, this ministry said.

Gross variety of personal income levy was up 17. 53 per nickle to Rs 1. 67 lakh crore in the first nine a few months from Rs 1. 41 lakh crore.

Securities Transaction Tax mop-up endured at Rs 3, 427 crore. Wealth tax collection posted a rise of 11. 92 per cent to Rs 742 crore from Rs 663 crore.

The government had set a primary tax collection concentrate on of over Rs 6. 68 lakh crore pertaining to 2013-14, envisaging a rise of 19 per cent from Rs 5. 65 lakh crore within 2012-13.

Meanwhile, Finance Minister G Chidambaram on Friday met chief commissioners coping with both direct and also indirect taxes to look at stock of this revenue mop-up.

Jan 8, 2014

Education cess and secondary and higher education cess are not applicable on other cesses

1:11 PM 0
Education cess and secondary and higher education cess are not applicable on other cesses
Central excise department issued a clarification with circular no. 978/2/2014 dated 7 January 2014 regarding whether education cess and secondary higher education cess are applicable on other cesses or not. Full circular is as under.

Attention is invited to Circular No.345/2/2004-TRU (Pt.) dated 10th August, 2004, in which it was clarified that the Education Cess chargeable under Section 93(1) of the Finance (No.2) Act, 2004 is to be calculated by taking into account only such duties which are both levied and collected by the Department of Revenue.

2.  Representations have been received from trade and field formations seeking clarification as to whether the Education Cess chargeable under Section 93(1)  of the Finance (No.2) Act, 2004 and the Secondary and Higher Education Cess chargeable under Section 138(1) of the Finance Act, 2007 should be calculated taking into account the cesses which are collected by the Department of Revenue but levied under an Act which is administered by different departments such as Sugar Cess levied under Sugar Cess Act, 1982, Tea Cess levied under Tea Act, 1953 etc.

3. The matter has been examined. A cess levied under an Act which is not administered by Ministry of Finance (Department of Revenue) but only collected by Department of Revenue under the provisions of that Act cannot be treated as a duty which is both levied and collected by the Department of Revenue.

4.   It is, therefore, reiterated that the Education Cess and the Secondary and Higher Education Cess are not to be calculated on cesses which are levied under Acts administered by Department/Ministries other than Ministry of Finance (Department of Revenue) but are only collected by the Department of Revenue in terms of those Acts.

5. All pending assessment may be finalized accordingly.

6. Difficulties, if any, may be brought to the notice of Board.
Tags-education cess,secondary and higher education cess,excise education cess,education cess on excise,secondary and higher education cess on excise,excise circular no. 978/2/2014

Jan 7, 2014

Banks want to cap ATM visit 5 per month

5:21 PM 3
Banks want to cap ATM visit 5 per month
Reserve bank of India guides banks to employ proper security guards at ATMs for the safety of the people. There are so much incidents( latest of Bangalore where a customer was attacked at ATM) of theft as well as misbehave at ATMs now a days.

This will surely increase the cost of bank. And banks wish to divert it to the customers. In this contrast, Indian Bank Association(IBA) suggests RBI that the limit of ATM transactions should be capped at 5 either of home bank ATM or other bank ATM and above this, there should be a fixed charge to the customers.

Presently, customer can use other bank ATM five times in a month  and can use his own bank ATM freely with no charges.

However banks need to pay Rs. 15 plus taxes per transaction if a bank customer uses other bank ATM.

RBI has not guided banks to not levy charges using other bank ATM but this is in sake of reducing workload at branches and this decision was of banks and not of RBI.

There are many options available to customers like mobile banking and sms service where customers can check the account balance and needn't to go to the ATM or branch.
Tags-free atm transaction,atm transaction fees,free atm visits,atm free transaction limit,limit of atm free transaction,atm free transaction,atm free transaction india,fee atm withdrawl,atm transaction fee india

New RPU 3.8 and FVU 4.1 for TDS statements FY 2013-14

3:04 PM 0
New RPU 3.8 and FVU 4.1 for TDS statements FY 2013-14
Tin.nsdl has launched new return preparation utility RPU 3.8 and file validation utility FVU 4.1 for e-TDS statements for financial year 2013-14.

As the due date of filing of quarterly TDS statement for third quarter of FY 2013-14 is approaching fast, you are advised to use the new version of RPU to prepare statements and validate the file with new FVU to submit TDS statements, well before due date (15th January for Non-Government deductors and 31st January for Government deductors). 
  
The new versions features following significant changes from the previous: 

Discontinuation of functionality to delete Deductee records: For the purpose of correct reporting, deletion of Deductee rows is no longer permissible in the TDS statements. Accordingly, the delete option available under “Updation mode for Deductee” has been removed from the RPU.

Date of deduction should not pertain to previous quarter: The relevant quarter in a TDS statement is determined by the date of deduction. Further, to correct any transaction having a Default, there would be a necessity to report transactions, where date of deduction may be of subsequent quarter. In the light of above, Date of deduction in deductee records should not be that of previous quarter. For example, if the statement pertains to Q3 of FY 2013-14 (i.e. Oct- Dec 2013), then the date of deduction should not be earlier than 01/10/2013.

Please note that the challan paid with a specific section code can be utilised for consumption with any other section code in the Deductee rows. For example, a challan with Section Code 192 can be used for any other sections 193, 194, 194A etc. in the challan detail row.

Change in the  column header for “Interest Amount” in challan details of RPU: The heading of column no. 20 under Challan details has been changed as “Interest to be allocated/apportioned”. Please note that CPC (TDS) will consume Interest as reported in the above stated column and therefore, it is important to quote the same correctly.

Generation of Form 27A by TDS/TCS FVU: An acknowledgement in form 27A can now be generated and printed using the new versions of RPU and FVU. 

Download FVU 4.1 from here
Download RPU 3.8 from here
Tags-fvu 4.1,rpu 4.1,rpu 3.8,latest rpu and fvu,latest rpu version 3.8,latest fvu version 4.1,rpu latest version,rpu version 4.0,rpu 3.8 features,fvu version 4.1,fvu version 4.1 free download,fvu 4.1 features

Jan 6, 2014

Excise duty exemption is available for another 10 years for old units did expansion in J&K

5:58 PM 0
Excise duty exemption is available for another 10 years for old units did expansion in J&K
Central excise department issued a clarification regarding availability of excise duty exemption to old units did expansion in the state of Jammu & Kashmir. Central excise department issued a circular no. 977/01/2014 dated 3 January 2014 regarding this issue. Full circular is as under.

 Subject: Availability of excise duty exemption to the units which have already availed of exemption under New Industrial Policy for another 10 years by way of 2nd substantial expansion in the State of Jammu & Kashmir – Clarification – Regarding.

Representations have been received from trade and industry associations and field formations seeking clarification as to whether an existing unit which has availed of excise duty exemption under notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under notification No.1/2010-CE, dated 06.02.2010, again by way of second substantial expansion.

2.         The matter has been examined by the Ministry. In pursuance of the New Industrial Policy and other concessions for the State of J&K announced by the Department of Industrial Policy and Promotion (DIPP) in June 2002, notification No.56/2002-CE (location specific exemption to all goods other than the exclusion list) & No.57/2002-CE (non-location specific exemption to specified industries other than the exclusion list), both dated 14.11.2002 were issued to provide exemption from excise duty equivalent to the duty payable on value addition undertaken in the manufacture of the goods to the new units and units undertaking substantial expansion, for a period of ten years from the date of commencement of commercial production. The exemption operates through a refund mechanism.

2.1        Subsequently, pursuant to a review of the exemption, notification No.1/2010-CE was issued so as to extend the excise duty exemption to all goods barring the exclusion list to units located anywhere in the State of J&K subject to the same conditions and modalities as are applicable to the existing area-based exemptions for the State. Thus, notification No.1/2010-CE was basically an extension of the existing special package of incentives for the State of J&K with certain modifications.

2.2        Notification Nos.56/2002-CE & No.57/2002-CE and notification No.1/2010-CE does not specifically provide any cut-off date (sunset clause) for setting up of new units or for units undertaking substantial expansion. Further, notification No.1/2010-CE does not debar an existing unit which has availed of excise duty exemption under notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion, to avail of excise duty exemption again by way of substantial expansion.

3.         It is, therefore, clarified that an existing unit which has availed of excise duty exemption under notification No.56/2002-CE & 57/2002-CE, both dated 14.11.2002 by way of substantial expansion can avail of excise duty exemption under notification No.1/2010-CE, dated 06.02.2010 again by way of second substantial expansion so long as it satisfies the conditions stipulated under notification No.1/2010-CE, dated 06.02.2010.
Tags-excise duty exemption in j&k,excise duty exemption in jammu and kashmir,industrial policy of j&k

4.         Trade Notice/Public Notice may be issued to the field formations and taxpayers.

5.         Difficulties faced, if any, in implementation of this Circular may be brought to the notice of the Board.