IndianCAs by Ashwin Nagar

CA. Y.H. Malegam, Padma Shri

2012-01-26T20:22:00.002+05:30

I heartily congratulate CA. Y.H. Malegam, Past President of the Institute of Chartered Accountants of India, on the occassion of conferment of National Award, Padma Shri on him.

Service TAx Trade Notices

2012-01-24T18:31:00.000+05:30

SERVICE TAX LAWS

	Clarification on "Completion of Service" where Service Providers are Unable to Issue Invoices within 14 days of Completion of Service - TRADE NOTICE NO. 15/ST/2011, DATED 20-10-2011
	Section 65(105)(zzzz) of the Finance Act, 1994 - Renting of Immovable Property Service - Civil Appeal on "Renting/Leasing of immovable property" - TRADE NOTICE NO : 8/ 2011, DATED 03-11-2011
	Section 69 of the Finance Act, 1994 read with Rule 4 of the Service Tax Rules, 1994 - Registration - Procedure and Documents Required in Respect of Centralised Registrations

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

VODAFONE WINS THE TAX BATTLE

2012-01-20T17:18:00.001+05:30

SC: IT Dept has no jurisdiction to tax Hutch-Voda offshore transaction

In a thundering judgment dismissing the Income Tax Department's jurisdiction over the $18bn deal and virtually reaffirming almost each and every argument advanced by Vodafone counsel Harish Salve, Chief Justice Kapadia has unequivocally called the Hutch – Vodafone deal as one composite transaction and the CGP led structure of Hutchison Telecom as single consolidated bargain. Hence the Income Tax Department did not have any right to levy tax on the ' offshore share sale' of CGP by Hutchison to Vodafone

SEE ATTACHMENT

Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

All About PAN

2012-01-19T10:05:00.000+05:30

All about Permanent Account Number (PAN) and how it is structured- SEE ATTACHMENT

ST Return Date Extended Upto 20-01-2012

2012-01-14T11:27:00.002+05:30

Section 70 of the Finance Act, 1994 read with Rule 7(4) of the Service Tax Rules, 1994 - Return of service tax - Date of submission of half-yearly return for the period April, 2011 to September 2011 extended from 6-1-2012 to 20-1-2012

ORDER NO. 1/2012 - Service Tax, dated 9-1-2012

In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules, 1994 read with notification No. 48/2011-Service Tax dated 19th October 2011, Central Board of Excise and Customs hereby extends the date of submission of half yearly return for the period April 2011 to September 2011, from 6th January, 2012 to 20th January, 2012.

This is being done in view of the fact that assessees are facing problems in electronic filing of returns due to various reasons.

FDI- Singe Brand

2012-01-14T11:27:00.001+05:30

Hi,

Department of Industrial Policy and Promotion Ministry of Commerce and Industry notified the decision to allow 100 per cent FDI in Single brand retail today via Press Note No.1 (2012 Series). The Union Minister for Commerce Industry and Textiles said Cabinet took the conscious decision to liberalise policy for FDI in single brand retail. FDI in single brand has led to emergence of some global majors in Indian market. We have now allowed Foreign Investment up to 100 percent with the stipulation that in respect of proposals involving FDI beyond 51 per cent there will be mandatory sourcing of at least 30 per cent of the total value of the products sold would have to be done from Indian small industries/village and cottage industries, artisans and craftsmen, This step will provide stimulus to domestic manufacturing value addition and help in technical upgradation of our local small industry.

AS 11 Amendment

2012-01-14T11:26:00.000+05:30

Amendment in Accounting Standard 11 relating to "The Effects of Changes in Foreign Exchange Rates"

The Central Government in consultation with National Advisory Committee on Accounting Standards, has made an amendment to the Companies (Accounting Standards) Rules, 2006 through notifications G.S.R. dated 29.12.2011, viz Companies (Accounting Standards) Amendment Rules, 2011 and Companies (Accounting Standards) (Second Amendment) Rules, 2011.

The amendment in Accounting Standard (AS) 11 relates to "The Effects of Changes in Foreign Exchange Rates", which has been made in light of foreign exchange losses suffered by India Inc, due to significant rupee downslide against the US dollar in recent months.

The Government has extended the deadline from March 31, 2012 to March 31, 2020, for companies to charge the exchange differences arising on reporting of long term foreign currency monetary items, at rates different from those at which they were initially recorded or reported during the year, as far as they relate to the acquisition of a depreciable capital asset. The same can be added to or deducted from the cost of the asset and has to be depreciated over the balance life of the asset and in other cases, it can be accumulated in a " Foreign Currency Monetary Item Translation Difference Account" in the financial statements.

Comments for future XBRL

2012-01-14T11:25:00.000+05:30

Ministry of Corporate Affairs12-January, 2012 18:13 IST

Comments/Suggestions for future XBRL Implementation

The Ministry of Corporate Affairs has formed a committee to develop the roadmap for future implementation of XBRL. The committee has its Terms of References as under:

A. Identification of class of companies and various reports to be filed in XBRL in Phase-wise manner.

B. Development of Taxonomies to be used by Corporates for their regulatory filings to government agencies.

C. Extensions in Taxonomies and XBRL Assurance framework.

D. Training, awareness and capacity building of stakeholders.

E. Framework for consumption & dissemination of XBRL data.

Accordingly stakeholders have been requested to send in their suggestions/comments on xbrl.suggestion@mca.gov.in. or to write to Director (e-Governance), Room No. 536, A Wing, Shastri Bhawan, New Delhi 110001.

*****

ST/-
(Release ID :79537)

Top 10 tips for sending e-mail while traveling

2012-01-14T11:24:00.000+05:30

Whether you're on the road for business or pleasure—provided you're not traveling by canoe in the Amazon jungle or dog sled in the arctic—there’s probably a way to stay in touch by e‑mail. With a little knowledge and advance planning, it’s easy to check your e‑mail from the road. Here are some tips to help you remain in contact with friends, family, and colleagues while you're on the go.

1. Use web mail and travel light

If you use a web-based e‑mail service such as Windows Live Hotmail, you can send and receive e‑mail using someone else’s computer, without the need to carry around your own mobile PC while you travel. All you need is a Hotmail account and a computer with a web browser and an Internet connection. You can even access Hotmail from some web-enabled mobile phones.

To open a Hotmail account, go to the Windows Live Hotmail website.

2. Carry a laptop and use your own e‑mail program

If you’re traveling on business, chances are you'll have your own mobile PC with you. In this case, you can use a more full-featured e‑mail program such as Windows Live Mail orWindows Mail. These programs enable you to store all your messages locally on your PC, so you can read messages you’ve already downloaded and compose new messages even when you can’t get an Internet connection. Windows Mail is included in Windows Vista. To download Windows Live Mail, go to the Windows Live Mail website.

Bringing a mobile PC with you on a trip gives you more options for checking e‑mail

When you have your own computer with you, you also get the added bonus of being able to check e‑mail in the privacy and comfort of your hotel room (assuming your hotel offers Internet access). Also, if you're really on the go and don’t want to stop and open your laptop, you can check e‑mail from many mobile phones, including many Windows Mobile devices.

3. Try doing e‑mail offline

Write messages when you're inspired, not when you're connected. If you have a laptop with you, take advantage of offline time to read messages you have already downloaded and compose replies and other new messages. Unlike web-based e‑mail, programs such as Windows Mail and Windows Live Mail save your messages locally (on your hard disk), rather than on the web. The next time you connect to the Internet or your company network, you can download new e‑mail and send any messages you have ready to go, sitting in your Outbox.

Windows Mail and Windows Live Mail enable you to write messages offline and store them temporarily in your Outbox

4. Hone your skills at finding Internet cafés

If you're traveling without a mobile PC, train yourself to watch for Internet cafés and other places where you can rent a computer for a short period of time to check your e‑mail. Don’t wait until you absolutely have to check e‑mail and then expect to find a place on the nearest street corner. Depending on where you're traveling, there might not be very many Internet cafés. Learn what kinds of places offer computers with Internet access. Many places may offer wireless Internet access but have no computers you can use. Ask around for locations. Hotel clerks, waiters, airline staff, and other service people can often tell you where to go.

“Internet café” is a generic term that many people use to refer to almost any public place with a computer you can use to access the Internet. An Internet café may or may not refer to an actual café. Also look for Internet kiosks, public libraries, and other locations that let you use their computers. Many rent computer time by the minute or hour.

You can access Windows Live Hotmail from any computer with a web browser and an Internet connection

5. Look up Internet café locations before you go

If you want to be sure you can check your e‑mail from the road, make a list in advance of Internet cafés where you will be traveling. This can be important if you will be traveling in areas where Internet access is less likely to be available.

Several websites offer lists of Internet cafés around the world. You can go to online resources such as The Cybercafe Search Engine website or the Cybercafes website where you'll find thousands of Internet cafés, public Internet kiosks, and even cruise ships with Internet cafés. Of course, not every café is listed, so ask around if you can't find one on the web.

6. Find local wireless hotspots

Many cafés, coffee houses, and airports have wireless networks called hotspots where you can access the Internet. They might not rent PCs, but if you have a laptop with you, you can sign in and check your e‑mail using your own computer and an e‑mail program such as Windows Mail or Windows Live Mail. There is often no charge for customers to access the wireless network.

Windows Vista makes it easy to log on to a wireless network. To learn how, see View and connect to available wireless networks.

7. Stay at hotels that offer Internet access

This is becoming less of an issue as more hotels and motels offer Internet access. But if you really want to be able to do e‑mail from your room, you might want to skip that charming bed-and-breakfast or quaint country inn, where guest Internet access is probably not on the list of amenities. Most hotels or motels that have wireless Internet access include it in the price of a room or offer it for a modest fee. Business-class hotels usually offer the speediest Internet access. Ask about Internet access when you check in or make room reservations.

8. Leave your laptop at home when traveling to places where it’s hard to get an Internet connection

Even if you have a laptop, it may be easier in some places to check your e‑mail from an Internet café than to try and find a connection for your own computer. Relying on Internet cafés is helpful if you're unable to locate wireless hotspots or hotels with Internet access. (I won’t go into the numerous hassles of trying to get a dial-up connection in countries with different phone systems. Wireless Internet access has eclipsed dial-up Internet access for most mobile PC users.) One side benefit of leaving your laptop at home: you won’t have to worry about losing it or having it stolen.

9. E‑mail important documents to yourself before you leave

E‑mail is for more than just communicating with people. If you're not bringing a laptop with you, you can use e‑mail to send important documents to yourself that you want to read or work on while traveling. Then you can access them from an Internet café or Internet kiosk. Another option is to put files on a web-based storage service, although this will require you to find a service you like and sign up for an account there.

10. Take advantage of flying time

Time spent on planes is often time wasted. But there’s no reason to be unproductive just because you can’t get an Internet connection while cruising at 30,000 feet. Take advantage of the downtime to use your mobile PC to do offline e‑mail and other work when you are flying (see No. 3). You can’t send and receive messages without an Internet connection, but you can read e‑mail you’ve saved and compose new messages offline.

To work with offline e‑mail, you’ll need a full-featured program such as Windows Live Mailor Windows Mail that enables you to save your messages locally (on your hard disk).

Centralised Processing of Returns Scheme 2011

2012-01-11T09:43:00.000+05:30

Centralised Processing of Returns Scheme, 2011

Notification No.2/2012[F.No.142/27/2011-SO(TPL)], dated 4-1-2012

In exercise of the powers conferred by sub-section (1A) of section 143 of Income Tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the following scheme for processing of returns of income, namely:-

1. Short title and commencement.—

(1). This Scheme may be called the Centralised Processing of Returns Scheme, 2011.

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

2. Definition. - In this scheme, unless the context otherwise requires -

(a) 'Act' means the Income Tax Act, 1961 (43 of 1961).

(b) 'Board' means Central Board of Direct Taxes constituted under the Central Board of Revenues Act, 1963 (54 of 1963).

(c) 'Centre' means the Centralised Processing Centre having jurisdiction over such return of income as may be specified by the Board.

(d) 'Commissioner' means the Commissioner of Income-tax, Centralised Processing Centre.

(e) 'Director General' means the Director General of Income-tax (Systems).

(f) words and expressions used herein but not defined and defined in the Act shall have the meaning respectively assigned to them in the Act.

3. Scope of the Scheme.—This scheme shall be applicable in cases where return of income has been furnished in,-

(i) electronic form; or

(ii) paper form, in case of a class or classes of persons, as notified by the Board in this behalf.

4. Receipt and Acknowledgment of Return of Income.—

(1) Where a return of income is filed electronically with digital signature, on successful transmission of the data, an acknowledgment as generated by the server of the Central Government shall be available to the person in printable format.

(2) The acknowledgment shall contain the acknowledgment number of the electronic transmission and the date of transmission as an evidence of filing of the return.

(3) A copy of the electronic transmission of filing the return of income shall be downloaded and kept by the person.

(4) Where a return of income is filed electronically without digital signature, on successful transmission of the data, an acknowledgment in Form ITR-V as provided in rule 12 of the Income Tax Rules, 1962 shall be generated by the server of the Central Government and available to the person.

(5) The Form ITR-V shall also contain the acknowledgment number of the electronic transmission and the date of transmission as an evidence of filing of the return.

(6) A copy of ITR-V shall be downloaded and after taking a printout of such a form, it shall be physically verified under the signature of the person and forwarded to the Centre.

(7) The Form ITR-V duly verified shall be sent to the Centre, either through ordinary or speed post, within such period of uploading the electronically filed return as may be specified by the Director General in this behalf.

(8) The date of transmitting the data electronically shall be the date of furnishing the return if the Form ITR-V is furnished in the prescribed manner and within the period specified.

(9) In case Form ITR-V furnished after the prescribed time is rejected on account of it being unsigned, illegible, mutilated, bad quality or not as per specification, it shall be deemed that the return in respect of which the Form ITR-V has been filed was never furnished and it shall be incumbent on the person to electronically file the return of income again followed by submission of the new Form ITR-V.

(10) The Form ITR-V shall be submitted at the address, in the mode and within the period or extended period specified by the Commissioner in this behalf.

(11) The Commissioner may, in order to avoid hardship in a case or class of cases, condone the delay in receipt of Form ITR-V.

(12) The Commissioner may call for fresh Form ITR-V in special circumstances, where the Form ITR-V earlier submitted cannot be considered for technical reasons.

5. Revised return of income.—

(1) If the original return of income is an electronically filed return, the revised return shall be filed through electronic mode only.

(2) The Centre will process only the revised return and no further action will be taken on the original return if it has not already been processed.

6. Invalid or defective return.

(i) The Commissioner may declare-

(a) a return invalid for non-compliance of procedure for using any software not validated and approved by the Director General.

(b) a return defective under sub-section (9) of section 139 of the Act on account of incomplete or inconsistent information in the return or in the schedules or for any other reason.

(ii) In case of a defective return, the Centre shall intimate this to the person through e-mail or by placing a suitable communication on the e-filing website.

(iii) A person may comply with the notice regarding defective return by uploading the rectified return within the period of time mentioned in the notice.

(iv) The Commissioner may, in order to avoid hardship to the person, condone the delay in uploading of rectified return.

(v) In case no response is received from the person in reply to the notice of defective return, the Commissioner may declare a return as not having been uploaded at all or process the return on the basis of information available.

7. Centralised Processing Centres.—

(1) The Board may set up as many Centralised Processing Centres as it may deem necessary and specify their respective jurisdictions.

(2) The processing of the returns shall be undertaken at the Centralised Processing Centre.

8. Processing of Returns.—

(i) The Centre shall process a valid return of income in the following manner, namely:-

(a) the sum payable to, or the amount of refund due to, the person shall be determined after credit of such Tax collected at Source (TCS), Tax Deducted at Source (TDS) and tax payment claims which can be automatically validated with reference to data uploaded through TDS and TCS statements by the deductors or the collectors, as the case may be, and tax payment challans reported through authorised banks in accordance with the procedures adopted by the Centre in this regard.

(b) an intimation shall be generated electronically and sent to the person by e-mail specifying the sum determined to be payable by, or the amount of the refund due to, the person; and

(c) any intimation to the person to pay any sum determined to be payable shall be deemed to be a notice of demand as per the provisions of section 156 of the Act and all other provisions of the Act shall be applicable accordingly.

(ii) The Commissioner may, -

(a) adopt appropriate procedure for processing of returns; or

(b) decide the order of priority for processing of returns of income based on administrative requirements.

(iii) Wherever a return cannot be processed in the Centre for any reasons, the Commissioner shall arrange to transmit such return to the Assessing Officer having jurisdiction for processing.

9. Rectification of mistake.—

(i) With a view to rectifying any mistake apparent from the record under section 154 of the Act, the Centre, on its own or on receiving an application from the person, may amend any order or intimation passed or sent by it under the provisions of the Act.

(ii) An application for rectification shall be filed electronically to the Centre in the format prescribed and will be processed in the same manner as a return of income-tax.

(iii) Where the rectification order results in a demand of tax, the order under section 154 of the Act passed by the Centre shall be deemed to be a notice of demand under section 156 of the Income-tax Act.

(iv) In case of error in processing due to an error in data entry or a software error or otherwise, resulting in excess refund being computed or reduction in demand of tax, the same will be corrected on its own by the Centre by passing a rectification order and the excess amount shall be recovered as per the provisions of the Act.

(v) Where a rectification has the effect of enhancing an assessment or reducing the refund or otherwise increasing the liability of the person, an intimation to this effect shall be sent to the person electronically by the Centre and the reply of the person has to be furnished through electronic mode only.

10. Adjustment against outstanding tax demand.—The set-off of refund, if any, arising from the processing of a return, against tax remaining payable will be done by using the details of outstanding tax demand lying against the person as uploaded onto the system of the Centre by the Assessing Officer.

11. Appellate Proceedings.—

(i) Where a return is processed at the Centre, the appeal proceedings relating to the processing of the return shall lie with Commissioner of Income-tax (Appeals) [CIT(A)] having jurisdiction over the jurisdictional Assessing Officer and any reference to Commissioner (Appeals) in any communication from the Centre shall mean such jurisdictional CIT (Appeals).

(ii) Remand reports, giving effect to appellate order and any other reports to be furnished before the CIT (Appeals) shall be submitted by the Assessing Officer having jurisdiction as regards the person.

12. No personal appearance in the Centre.—

(i) A person shall not be required to appear either personally or through authorised representative before the authorities at the Centre in connection with any proceedings.

(ii) Written or electronic communication from such person or authorized representative in the format specified by the Centre in this respect shall be sufficient compliance of the query or clarification received from the Centre.

(iii) The Centre may call for such clarification, evidence or document as may be required for the purpose of facilitating the processing of return and all such clarification, evidence or document shall be furnished electronically.

13. Service of notice or communication.—

(i) The service of a notice or order or any other communication by the Centre may be made by-

a. sending it by post;

b. delivering or transmitting its copy thereof, electronically to the person sent by the Centre's e-mail;

c. placing its copy in the registered electronic account of the person on the official website ; or

d. any of the modes mentioned in sub-section (1) of section 282 of the Act.

(ii) The date of posting of any such communication on official website, e-mail or other electronic medium shall be deemed to be the date of service.

(iii) The intimation, orders and notices shall be computer generated and need not carry physical signature of the person signing it.

14. Power to specify procedure and processes.—The Director General may specify procedures and processes from time to time for effective functioning of the Centre in an automated and mechanised environment, including specifying the procedure and processes in respect of the following :-

(i) receipt and processing of electronic rectification applications in the Centre.

(ii) the address or place, the mode and the period or the extended period within which the acknowledgment in Form ITR-V shall be accepted.

(iii) validating any software used for e-filing the return.

(iv) call centres to answer queries and provide taxpayer services which may include outbound calls to persons requesting for clarification to assist in the processing of their returns of income.

(v) managing tax administration functions such as receipt, scanning, data entry, processing, issue of refunds, storage and retrieval of income-tax returns and documents in a centralised manner or receipt of paper documents through authorized intermediaries.

SEBI-IPP

2012-01-07T20:50:00.001+05:30

A. As a New Year gift to the Companies that are not meeting the Minimum Public Holding requirement, SEBI has at its Board Meeting held on 3rd January 2012 decided to introduce the following additional methods, for the purpose of compliance with the provisions of SCRR with regard to the Minimum Public Shareholding to be maintained in any listed company:

1. Institutional Placement Programme (IPP); and

2. Offer for sale of shares through stock exchanges

Both the above mentioned methods have certain salient features/ pre prequisites and need to be followed in compliance therewith. Under both the options, caps have been specified, in terms of the Issue Size, limits of dilution, categories of allottees/ transferees, procedure for allotment etc.

The highlights of IPP Method are as follows:

Public shareholding can be increased by 10% or such lesser percentage as is required to comply with the minimum public shareholding requirement.

Shares can be sold only to qualified institutional buyers, with a reservation of minimum 25% to mutual funds and insurance companies.

Issuer shall announce an indicative floor price or price band atleast one day prior to the opening of the offer.

The aggregate demand schedule shall be displayed by stock exchanges.

There shall be atleast 10 allottees in every IPP issuance. No single investor shall receive allotment for more than 25% of the offer size.

The allotment of shares may be made on price priority, proportionate or on pre- specified criteria which has to be disclosed in advance in the prospectus and cannot be changed subsequently.

The highlights of Offer of shares through stock exchanges are as follows:

A separate window shall be offered by the Stock Exchange.

The offer shall be for atleast 1% of the paid-up capital of the company, subject to minimum of Rs. 25 crores.

Only the promoter/ promoter group of companies which are active /eligible for trading would be permitted to offer their shares for sale.

Every bid/buy order would be required to be backed by 100% upfront cash margin. The settlement shall be through exchange clearing mechanism.

Allotment would be done either on price priority or clearing price basis proportionately and would be overseen by the exchanges.

Further, it has also been decided that Offer for sale through the stock exchanges method can, apart from being used for compliance with minimum shareholding requirements, also be used by the promoters of top 100 Companies (based on average market capitalization) for sale of their stake.

To recapitulate, SEBI had vide its Circular dated 16th December 2010, mandated that for the purpose of compliance of Cl 40 A of Listing Agreement, listed companies could have resorted to either issuance of shares to public through prospectus or offer for sale of shares held by promoters to public through prospectus or sale of shares held by promoters through the secondary market, with the prior approval of the Specified Stock Exchange, within the timelines specified by Ministry of Finance.

This move for allowing the above 2 additional methods shall prove Industry friendly in meeting with the Minimum Public Shareholding requirements in case of listed companies.

B. Further, SEBI has also decided to make the following amendments in the SEBI Buyback Regulations:

Procedure for acceptance of shares in buy back through tender offer: The company shall announce ratio of buyback as is done in the case of rights issues and fix a record date for determination of entitlements as per shareholding on record date. While the shareholders will be free to tender over and above their entitlement, acceptance of shares shall first be based on entitlement of each shareholder and if any shares are still left to be bought back, acceptance of additional shares tendered over and above the entitlement shall be in proportion to the excess shares tendered by the shareholder.

"Record Date" in lieu of Specified Date.

Review of requirement of issuing Public Notice and Public Announcement: The Public Announcement shall be published within two working days from the date of Board or Shareholders resolution, as the case may be.

Rationalisation of timelines in buyback through tender offer: It has been decided to revise the time lines for various activities involved in the buyback process.

SEBI has also issued a Circular bearing no. CIR/IMD/FIIC/1/2012 dated 3rd January 2012, with respect to the investment limits of FIIs in Government debts and Corporate debts, whereby it has withdrawn the facility of re-investment and now re-investment period shall not be allowed for all new allocations of debt limit to FIIs/sub-accounts.

XBRL e-Filing Date Extended

2012-01-01T21:55:00.000+05:30

Extension of date for filing of Balance Sheet and Profit & Loss in XBRL mode
2 December 11

ST Return Date Extended

2012-01-01T21:54:00.000+05:30

F. No. 137/99/2011 – Service Tax

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs,
**********

New Delhi, the 29^th December 2011

ORDER NO 3 /2011 – Service Tax

In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules 1994 read with notification No. 48/2011-Service Tax dated 19^th October 2011, Central Board of Excise and Customs hereby extends the date of submission of half yearly return for the period April 2011 to September 2011, from 26^th December 2011 to 6^th January 2012.

This is being done in view of the fact that assessees are facing problems in electronic filing of returns due to various reasons.

(Deepankar Aron)

Director (Service Tax)
CBEC, New Delhi

Chief Commissioners of Central Excise & Customs (All)

Chief Commissioners of Central Excise (All)

Director General of Systems

Director General of Service Tax

Case Law on ITR-V - CPC

2011-12-25T08:49:00.000+05:30

Where assessee filed return electronically and had also submitted ITR-V form by ordinary post, department could not treat return as invalid on ground that ITR-V form had not been received by CPC, Bangalore

ST - CLSS - DIN 4

2011-12-23T08:12:00.000+05:30

CBEC prescribes the documents to be submitted along with the application of service tax registration

The following documents have been prescribed by the CBEC to be submitted along with the application for registration under service tax:

Copy of Permanent Account Number (PAN)
Proof of Residence
Constitution of the Applicant
Power of Attorney in respect of authorized person (s).

The above documents must be submitted within a period of 15 days from the date of filing of the application, otherwise the application may be rejected. The time limit of seven days within which the registration is to be granted by the Superintendent of Central Excise/Service Tax would be reckoned from the date the application for registration is complete in all respects.

[Order no. 2/2011 - ST dated 13.12.2011 - F.No. 137/120/2011 - ST]

+++++++++++++++++++++++++++++++++++++++++++++++++++++

Important message

"Last date for availing benefit under Company Law Settlement Scheme (CLSS), 2011 has been extended up to 15th January, 2012. It is further stated that this Scheme will not be extended beyond 15th January, 2012. For details kindly see General Circular No: 71/2011 available on MCA portal under News & Events and under heading Act, Bills and Rules.

Further, the last date for filing form DIN-4 by DIN holders for furnishing their Income tax PAN and to update Income- tax PAN details has been extended up to 29th February, 2012. For details kindly see General Circular No: 70/2011 available on MCA portal under News & Events and under heading Act, Bills and Rules. "

Service Tax Circular No.149-ST Refund- Exporters

2011-12-23T08:11:00.000+05:30

Circular No. 149/18/2011-ST

F.No.354/66/2011-TRU

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

(Tax Research Unit)

146-F, North Block,

New Delhi, 16^th December, 2011

Chief Commissioners of Customs (All)

Chief Commissioners of Customs and Central Excise (All)

Chief Commissioners of Central Excise & Service Tax (All)

Director General of Export Promotion

Director General of Service Tax

Commissioners of Customs (All)

Commissioners of Customs and Central Excise (All)

Commissioners of Central Excise and Service Tax (All)

Commissioners of Service Tax (All)

Madam/Sir,

Subject: Service Tax Refund to exporters through the Indian Customs EDI System (ICES) — regarding.

So far Service Tax Refund (STR) was made available to exporters (other than SEZ Units/Developers) on specified services used for export of goods covered in Notification 17/2009-ST dated 07.07.2009 (as amended) subject to certain conditions. In this connection, Honourable Finance Minister, had stated in his Budget Speech that

"There have been considerable difficulties in the sanction of refunds, relating to tax paid on services used for export of goods. I propose to shortly introduce a scheme for the refund of these taxes on the lines of drawback of duties in a far more simplified and expeditious manner".

2. Accordingly, Government has proposed to introduce a simplified scheme for electronic refund of service tax to exporters, on the lines of duty drawback. With the introduction of this new scheme, exporters now have a choice: either they can opt for electronic refund through ICES system, which is based on the 'schedule of rates' or they can opt for refund on the basis of documents, by approaching the Central Excise/Service Tax formations.

3. To obtain benefit under the new electronic STR scheme, which is based on the 'schedule of rates', an exporter: (i) should have a bank account and also a central excise registration or service tax code number and the same should be registered with Customs ICES 1.5 using 'Annexure –A' Form;(ii) should declare his option to avail STR on the electronic shipping bill while presenting the same to the proper officer of Customs.

4. In the 'schedule of rates', to be notified shortly, rates are specified for goods of a class or description. An exporter, who wishes to obtain electronic STR, should express his option by mentioning in the shipping bill, chapter/subheading number at the first two digits or four digit levels specified in the schedule of rates, as applicable to the export goods declared in the shipping bill. This chapter/sub heading number should tally with RITC code mentioned in the Shipping Bill against the export goods. Eligible refund amount of service tax paid on the specified services used for export of goods declared in the shipping bill will be calculated electronically by the ICES system, by applying the rate specified in the schedule against the said goods, as a percentage of the FOB value.

5. Exporters who do not like to obtain electronic STR on the basis of 'schedule of rates', but wish to opt for claiming STR on the basis of documents, through the Central Excise/Service Tax field formations should declare chapter/subheading number as 9801 in the electronic Shipping Bill. Minimum STR will be Rupees Fifty for an electronic shipping bill. An exporter who wants to get the chapter/sub heading number amended, for any reason, can get the same carried out through the ICES service centre by filing an amendment request; amendment request can also be filed through ICEGATE using Remote EDI System(RES) software. Exporters can track the status of their refund claim and details of refund amount through ICEGATE Document Tracking and Touch Screen Enquiry.

6. STR amount processed under the ICES will be disbursed through the branch of the authorized bank at each customs location. The STR amount in respect of individual exporters will be credited directly to the bank account of the exporter, in the authorized bank branch at a Custom location or to any core banking enabled banking account of the exporter, in any branch/bank anywhere in the country (through the NEFT/RTGS). For this purpose, the exporters are required to register with Customs, the Indian Financial Service Code (IFSC) of the bank branch in which s/he wishes to receive the STR amount, the core banking enabled account number, bank name and address, using 'Annexure-A'. The procedure for registration of bank account is the same as existing procedure for registration of bank account for receiving drawback amount. Form for registration of bank account, namely, 'Annexure-A' is enclosed to this Circular, for the convenience of the exporters.

7. Duly filled in 'Annexure–A' form enclosed in this Circular (along with self-certified photocopy of central excise registration or service tax code number), should be submitted to the Designated Superintendent in the Customs Houses/Customs formations, as soon as possible, to get benefit of the electronic refund scheme. (Merchant Exporters, who require a service tax code, can use Form A-2 provided in the Notification 17/2009-ST and obtain the same from jurisdictional central excise or service tax by following the procedure prescribed in the notification). In respect of exporters who already have their bank accounts registered for receiving drawback amount, no new/separate account will be necessary for receiving service tax refund; but they should register their central excise registration or service tax code number with Customs ICES using Annexure-A Form, if they wish to opt for electronic STR. An exporter availing drawback scheme cannot have separate bank accounts for drawback and service tax refund.

8. A new head of accounts under Major Head "0044- Service Tax" has been opened, namely 00441082 for booking of consolidated electronic refunds.

9. Chief Commissioners/ Commissioners are requested to cause wide publicity to the new electronic STR scheme among exporters. Necessary steps may be taken to disseminate information regarding the salient features of the new electronic STR scheme to the Industry and Trade Bodies/ Chambers / Exporters / CHA Associations. In major Custom Houses, special arrangements may be made to receive the duly filled in 'Annexure-A' forms from the exporters. Systems Managers may make necessary arrangements to verify the Annexure –A forms and upload the details in the ICES. This circular is also being posted on the CBEC website, www.cbec.gov.in and www.icegate.gov.in for the information of all stakeholders.

10. Trade Notices/Facility Circulars may be issued by the service tax/central excise and service tax/customs commissionerates. Hindi version will follow.

Enclosed: Annexure - A Form

(J. M. Kennedy)

Director (TRU)

Tel/Fax: 011-23092634

Email: jm.kennedy@nic.in

Annexure A

PART- A

BANK ACCOUNT REGISTRATION FOR E-STR

I.E.C. Number : ………………………………………………..

IFS Code : ………………………………………………..

Bank Account Number : ………………………………………………..

Bank Name & Address : …………………………………………………

-----------------------------------------

…………………………………………………

Certificate from the bank

Certified that the above particulars are correct.

Signature

(Bank Branch Manager along with official seal)

PART-B

Central Excise Registration/Service Tax Code Number

In case, Service Tax Refund (STR) is to be claimed electronically through ICES 1.5, on the basis of 'schedule of rates', please provide following details:

Central Excise Registration Number:......................................................................

Service Tax Code Number:.................................................................

Declaration

I declare that the above particulars mentioned in Part A and B are correct.

Signature

Exporter/ Authorized Representative

Draft Bank Branch Auditors' Panel for the year 2011-12

2011-12-15T20:27:00.001+05:30

Here is the links for Draft bank Branch Audit Panel:

In case, your application number is not appearing in the above lists, please check the following:

· MEF Declaration not received

· Financial Documents called for and not received

· Reply to query sent pursuant to Financial Documents either not received or under checking

In case of query, pl log a complaint at http://www.meficai.org/complaints/complaint_enrty_enter.jsp

Highlights of Companies Bill,2011

2011-12-15T16:21:00.000+05:30

Highlights of Companies Bill,2011- SEE ATTACHMENT

--
Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant
Door No.24-2-1885,
I Floor, Flat No.5,
Siddivinayaka Residency, I Cross,
Central Avenue, MSR Nagar,
Magunta Layout,
Nellore-524 003
Andhra Pradesh
India
Mobile:+91 - 0 9390221100
+91 - 0 9440278412
e-Mail: vmvsr@rediffmail.com
vmvsr@yahoo.co.uk
http://pdicai.org/MyPage/203038.aspx

Cost Accounting Records Rules,2011

2011-12-14T15:41:00.001+05:30

Notifications prescribing Cost Accounting Records Rules, 2011 for different industries

MCA has vide Notifications G.S.R. 869(E), G.S.R.872(E), G.S.R.874(E), G.S.R. 870(E), G.S.R.873(E) and G.S.R. 871(E) dated 7.12.2011, notified Cost Accounting Records Rules, 2011 for 6 different industries. The Rules require the stated industries to keep cost records and books of account, and the books of accounts so maintained to contain specified particulars mentioned in the Schedule annexed to the respective rules. The Rules also prescribe the form of Compliance Report and the form for filing the Report (duly authenticated and signed by a cost accountant) and other documents with the Central Government in electronic mode.

The notified Rules are mentioned as follows:

1. The Cost Accounting Records(Telecommunication Industry) Rules,2011 vide G.S.R. 869(E) has superseded Cost Accounting Records (Telecommunications) Rules, 2002

2. The Cost Accounting Records( Sugar Industry) Rules,2011 vide G.S.R. 872(E) has superseded Cost Accounting Records (Sugar) amended Rules, 1997 and Cost Accounting Records (Industrial Alcohol) Rules, 1997

3. The Cost Accounting Records( Pharmaceutical Industry) Rules,2011 vide G.S.R. 874(E) has superseded Cost Accounting Records (Bulk Drugs) Rules, 1974 and Cost Accounting Records (Formulations) Rules, 1988

4. The Cost Accounting Records( Petroleum Industry) Rules,2011 vide G.S.R. 870(E) has superseded Cost Accounting Records (Petroleum Industry) Rules, 2002

5. The Cost Accounting Records( Fertilizer Industry) Rules,2011 vide G.S.R. 873(E) has superseded Cost Accounting Records (Fertilizers) Rules, 1993

6. The Cost Accounting Records( Electricity Industry) Rules,2011 vide G.S.R. 871(E) has superseded Cost Accounting Records (Electricity Industry) Rules, 2001

LLP-AMT-FORM NO.29C

2011-12-12T08:42:00.000+05:30

Income-tax (Ninth Amendment) Rules, 2011 - Insertion of rule 40BA and FoRm No. 29C

NOTIFICATION NO. 60/2011 [F. NO. 133/70/2011-SO(TPL)], DATED 1-12-2011

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (9th Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2012.

2. In the Income-tax Rules, 1962, (hereafter referred to as the "said rules"), after rule 40B, the following rule shall be inserted, namely:-

"Special provisions for payment of tax by certain limited liability partnerships

40BA. The report of an accountant which is required to be furnished by the assessee under sub-section (3) of section 115JC, shall be in Form No.29C."

3. In Appendix-II of the said rules, after Form No.29B, the following form shall be inserted, namely:-

"FORM NO. 29C

[See rule 40BA]

Report under section 115JC of the Income-tax Act, 1961 for computing adjusted total income and alternate minimum tax of the limited liability partnership

1. I/We* have examined the accounts and records of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (name and address of the assessee with PAN) engaged in business of. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (nature of business) in order to arrive at the adjusted total income and the alternate minimum tax for the year ended on the 31st March, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. (a) I/We* certify that the adjusted total income and the alternate minimum tax has been computed in accordance with the provisions of Chapter XII-BA of the Income-tax Act. The tax payable under section 115JC of the Income-tax Act in respect of the assessment year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . is Rs.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , which has been determined on the basis of the details in Annexure A to this Form.

3. In my/our * opinion and to the best of my/our* knowledge and according to the explanations given to me/us* the particulars given in the Annexure A are true and correct.

Date. . . . . . . . . . . . . . . . . . . .

Signed

†Accountant

Notes:

1. *Delete whichever is not applicable.

2. †This report is to be given by-

(i) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or

(ii) any person, who in relation to any State, is by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State.

3. Where any of the matters stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefor.

ANNEXURE A

[See paragraph 2]

Details relating to the computation of Adjusted Total Income and Alternate Minimum Tax for the purposes of section 115JC of the Income-tax Act, 1961

1.	Name of the assessee
2.	Address of assessee
3.	Permanent Account Number
4.	Assessment year
5.	Total income of the assessee computed in the manner laid down in the Income-tax Act before giving effect to Chapter XII-BA of the Income-tax Act
6.	Income-tax payable on total income referred to in Column 5 above
7.	The amount of deduction claimed under any section included in Chapter VI-A under the heading "C." - "Deductions in respect of certain incomes"	Sl. No.	Section under which deduction claimed	Amount of deduction claimed



8.	The amount of deduction claimed under section 10AA
9.	Adjusted total income of the assessee (5+7 + 8)
10.	Alternate Minimum Tax (18.5% of adjusted total income computed in column 9 above)"

Article on TDS Issue

2011-12-12T08:37:00.000+05:30

TDS Issues - One interesting and beneficial judgment has recently been given by the Tribunal in the case of Dy. CIT v. S.K. Tekriwal [2011] 15 taxmann.com 289 (Kol. - Trib.) which shall undoubtedly help in setting aside the objections of the revenue an... - Gaurav Pahuja, CA-

IndianCAs: NEW VAT REGISTRATION SIMPLIFIED IN GUJARAT [1 Attachment]

2011-12-12T08:36:00.000+05:30

[Attachment(s) from CA. NITESH AGRAWAL included below]

Dear Colleague,

Gujarat Govt has taken a very good step to simplify the VAT Registration Process in Gujarat. According to latest circular, the dealers who want to start business in Gujarat State will be alloted New VAT Registration Number within 3 DAYS ONLY. Also the system of pledging NSC of 10,000 - 50,000 is replaced by tax challan of FIXED Rs. 10,000/- which shall also be refunded after 2 years. Also, the proofs required for Registration are liberalized. Govt has started Separate Registration Centres in the cities like Ahmedabad , Surat , Vadodara , Bhavnagar , Rajkot and Gandhinagar. The relevant circular for the same is attached herewith.

Regards,

Nitesh Agrawal (Partner)

B.COM., LL.B., F.C.A., DISA(ICAI), DIRM(ICAI)

N R A & CO.

CHARTERED ACCOUNTANTS

G - 1 , Trividh Chamber,

Near Rushabh Petrol Pump,

Opp. Fire Brigade, Ring Road,

Surat - 395002

Ph : (0261) 2302389 , 3912389 , 6662389

Mobile : 98796 90009

E-mail : ca_niteshagrawal@yahoo.co.in

Website : http://nraco.icai.org.in

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Attachment(s) from CA. NITESH AGRAWAL

__,_._,___

XBRL Filing Date Extended

2011-12-03T04:16:00.000+05:30

Important message on due date of XBRL filing

As per Circular No. 69/2011, a company is allowed to file the financial statements in XBRL mode without any additional fee up to 31st December, 2011 or within 60 days from the due date, whichever is later. In case of a company whose financial year is ending on 31-03-2011 and if its date of AGM is 30th September 2011, then its Due date for filing financial statements is 30 days from the AGM date i.e. upto 30th October, 2011. Hence, as per the time lines provided in the circular, the company can file its financial statements in XBRL mode without additional fees upto 31st December, 2011 or 60 days from its due date of filing, which is 29th December, 2011 (i.e. 60 days from due date of filing- 30th October, 2011) whichever is later

Similarly, In case of a company whose financial year is ending on 30-06-2011 and if its date of AGM is 31st December 2011, then its Due date for filing financial statements would be 30 days from the AGM date i.e. upto 30th January, 2012. Hence, the company can file its financial statements in XBRL mode without additional fees upto 60 days from its due date of filing, which is 30th March, 2012.

PPF-ROI-8.6%

2011-11-28T17:52:00.000+05:30

Public provident fund - interest effectIVE from 1-12-2011 notified

Notification [F.No.1/9/2011-NS.(II), dated 25-11-2011

In pursuance of section 5 of the Public Provident Fund Act, 1968 (23 of 1968) the Central Government hereby notifies that the subscriptions made to the fund on or after the 1st day of December, 2011 and balances at the credit of the subscriber shall bear interest at the rate of 8.6 percent, per annum.

CBEC Issues Customs Manual on Self Assessment

2011-11-26T20:28:00.000+05:30

CBEC Issues Customs Manual on Self Assessment

CBEC has issued a Customs Manual on Self Assessment. The Manual covers (a) standard operating procedures, (b) compulsory compliance requirements (CCR) and (c) key aspects of Customs requirements such as classification, valuation, exemption notifications etc. for correct Self-Assessment of duty on goods imported or exported.

MC Thakur, Member, Customs, CBEC, says, "Self-Assessment is expected to usher in a new era of trust based Customs-Trade partnership leading to greater facilitation of compliant traders. Therefore, it is important that the trade takes its responsibility for making correct Self-Assessment seriously. Of course, the Departmental officials shall be readily available to resolve any doubts that the trade may have".

He adds a disclaimer, "However, it should be noted that the purpose of this Manual is to serve as a guide or advisory and it is neither exhaustive nor legally binding. Importers and exporters are advised to peruse the statutes, Rules and Regulations as well as Board's Circulars for ascertaining the correct legal provisions".

Why can't they issue a manual that is legally binding?

Filing and Processing of Bill of Entry (B/E)

++ Filing of B/E through Service Centre: The data pertaining to B/E is filed in a prescribed format at the Service Centre and a checklist is generated. While filing the B/E, the correctness of the information given therein has to be certified by the importer in the form of a declaration at its foot and any mis-declaration/incorrect details has legal consequences. The ICES system would accept Annexure for B/E only if it finds that the IGM No. and Bill of Lading (B/L) No. match the corresponding line number of the IGM. The system will accept only one declaration against a line number. If the declaration is not accepted, CHA (includes the importer) should verify the particulars The importer / CHA has to submit duly filled-in Annexure along with one copy of Invoice to the Service Centre . The Service Centre staff enters the data into the ICES system and generates Check List to be verified by the importer / CHA for correctness. On verification, if the data are found to be correctly recorded, the importer / CHA will sign the Check List and return it to the Service Centre, signalling final submission.
++ Filing of B/E through ICEGATE: The importer / CHA can file B/E remotely through ICEGATE. In this case, the ICES application validates the data and in case of errors, a negative acknowledgment mentioning the error description is sent back to the importer / CHA. In case there is no error, B/E Number is assigned to the document and an acknowledgment is sent to the importer / CHA. Thereafter, the importer / CHA can print the Check List in their premises.
++ Processing of B/E not facilitated through RMS: ICES system automatically marks the B/E to the Appraising Group for processing by Appraising Officer (AO). B/Es with assessable value of more than Rs.1 Lac are marked to Group Assistant Commissioner (AC) while others are marked directly for payment of duty. After the assessment is approved by the AC concerned, the following process takes place:
i. Assessed Copy of the B/E with examination instructions and TR-6 challan is printed at the Service Center for payment of duty. AO has the option to change tariff classification / notification / declared value etc., and raise queries for clarification. The queries raised by AO are marked to Group AC for approval.
ii. Processing status of the document can be enquired through Service Centre. In case of query, reply can be given through the Service Center. The duty is to be paid through designated banks or through e-payment mode. On receipt of duty payment message from Bank, the B/E is marked to the Appraiser (Docks). The importer / CHA should present a copy of the B/E along with duty paid challan and other documents including invoice, packing list etc. at the time of examination of the goods.
iii. Inspector / EO examines the goods and enters the examination report and in case of discrepancy, the same is reported to the Appraising Group with comments of the SA. Thereafter, the Group may revise the assessment. Otherwise, the B/E is marked to Shed Appraiser (SA) for "out-of-charge". After out-of-charge, the system generates two copies of B/E (importer's copy and the Exchange Control Copy).

Customs Manual of Self-Assessment