ICAI Pre- Budget 2013 Suggestions

ICAI Pre- Budget 2013 Suggestions

Posted: 27 Feb 2013 07:28 PM PST

I.  Suggestions to Improve Tax Collection 1.Information to be furnished in the Annual Information Return In respect of the transactions (mentioned in detailed memorandum), where the PAN is not provided by the payer, the provisions like TCS may be made applicable to the payee. Accordingly, the payee...

Reassessment – Deduction U/s 80-IC on manufacturing of PET bottles?

Posted: 27 Feb 2013 06:13 PM PST

Deduction available U/s 80-IC for manufacturing of PET bottles as it  fall within the negative list stipulated in serial No. 20 of the 13th schedule of the Income Tax Act and issue of notice on this ground  U/s 148 is invalid. The entire substratum of the notices issued under section 148 of the...

Penalty not justified on income, taxability of which was debatable

Posted: 27 Feb 2013 05:58 PM PST

Penalty proceeding u/s 271(1)(c ) imposed on the basis of that the assessee declared short term gains on the sale of the stock options instead of long term capital gains is not justified. The question whether the sale of the stock options would result in long term capital gains or short term gains...

Letter issued by Superintendent is not an appealable order

Posted: 27 Feb 2013 11:22 AM PST

Letter issued by the Superintendent is not an appealable order issued by a competent authority. It is also recorded that since a show cause notice on the same issue has already been issued to the appellant herein, the outcome of such adjudication proceedings is an appealable order before higher...

Summary of Economic Survey for 2013-14

Posted: 27 Feb 2013 07:01 AM PST

More than 6 Per Cent Growth Forecast for Next Fiscal Considerable Enhancement for Social Sector Spending India on Verge of Creating Quality Jobs to Seize 'Demographic Dividend' Indian economy is likely to grow between 6.1% to 6.7%  in 2013-14 as the downturn is more or less over and the economy is...

Parliament passes sexual harassment at workplace Bill

Posted: 27 Feb 2013 06:40 AM PST

Sexual Harassment of Women at Workplace (Prevention, Prohibition and  Redressal) Bill, 2013 Passed by Parliament The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Bill, 2012 was passed by the Rajya Sabha on 26th February 2013. Lok Sabha has passed it in September...

Gross Tax Revenue in April-December 2012 Grows by 15%

Posted: 26 Feb 2013 09:02 PM PST

Gross Tax Revenue in April-December 2012 Grows by 15% Over Corresponding of Previous Fiscal The Economic Survey 2012-13 presented by the Union Finance Minister, Shri P. Chidambaram in the Lok Sabha today states that the Gross Tax Revenue in April-December, 2012 has grown year-on-year by 15% to...

Countervailing Duty by US on Export of Shrimp

Posted: 26 Feb 2013 08:52 PM PST

A legal petition to USA has been filed on 28.12.2012 by Coalition of Gulf Shrimp Industries, for imposition of countervailing duty (CVD) on import of shrimps to USA by seven countries viz. China, Thailand, Vietnam, Ecuador, Indonesia, Malaysia and India.Coalition of Gulf Shrimp Industries claims...

ICAI President's Message – March 2013

Posted: 26 Feb 2013 08:43 PM PST

Dear Friends, It is my privilege as the 61st President of ICAI to formally welcome our accounting stakeholders that include our members, students and employees of the Institute. I would like to thank my past and present Central Council colleagues for believing in my competence and leadership, and...

Economic Survey 2012–13 presented as on 27-2-2013

Posted: 26 Feb 2013 08:37 PM PST

A flagship annual document of the Ministry of Finance, Government of India, Economic Survey 2012–13 reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the...

India signs protocol with UK amending the convention between the two States

Posted: 26 Feb 2013 08:29 PM PST

R. Kumar, B.Com. MBA (Finance) Background:-India and UK have signed a Protocol on 30th October 2012, amending the Convention between the Government of the Republic of India and the Government of the United Kingdom of Great Britain for the Avoidance of Double Taxation and the Prevention of Fiscal...

Gujarat Budget 2013-14 – Maiden claim on a virtual product 'Carbon Credits'

Posted: 26 Feb 2013 11:19 AM PST

Gujarat State Government first to recognize Carbon credit as intangible goods and propose to levy lower rate of 5% VAT which will drive industrial houses to lower their carbon foot print. In advent to combat global warming, United Nations Framework Convention on Climate Change's (UNFCCC) Kyoto...

List of 67 New Express, 26 Passenger Trains, 7 New Lines, 24 Train Frequency increase

List of 67 New Express, 26 Passenger Trains, 7 New Lines, 24 Train Frequency increase

67 New Express and 26 Passenger Trains to be Introduced :-  The Minister of Railways Shri Pawan Kumar Bansal has announced the introduction of 67 new Express trains, 26 passenger trains, 5 MEMU services and 8 DEMU services  while presenting the Railway Budget 2013-14 in Parliament today:- Express...

LIC Jeevan Sugam – New Single premium plan

LIC's Jeevan Sugam is a non-linked single premium plan wherein the risk cover is a multiple of premium paid by you. On maturity this plan offers a Maturity Sum Assured chosen by you.

Indian Court System & who cares for Reforms?

With great pain from the bottom of my heart, I have been writing this article. I have got great respect for legal profession, legal professionals and Indian Court System. I have had the privilege of reading some of the land-mark cases like 'breach of legislative privilege case' where late Shri...

IDBI Bank introduces online PPF Subscription Facility

IDBI Bank limited, a new generation PSU Bank, has successfully launched 'Online PPF Subscription Facility' for its customers in the month of February, 2013. The Bank had earlier got permission from Government of India for operationalising PPF transactions through Internet banking.

Highlights & Speech of Railway Budget – 2013-14

Download Speech of Sh. Pawan Kumar Bansal  introducing the Railway Budget, 2013-14  on 26th February 2013 Highlights of The Railway Budget – 2013-14 Thrust 1. Safety; 2. Consolidation; 3. Passenger Amenities; 4. Fiscal Discipline. Some Achievements/Initiatives • IR enters the one billion...

CBI arrests ITO from Ahmedabad for demanding & accepting a bribe

The Central Bureau of Investigation has arrested an Income Tax officer for demanding & accepting a bribe of Rs.10,000/- from the Complainant.             A case was registered against one Income Tax Officer working under Director of Income Tax (Exemption), Ahmedabad for demand of Rs.10,000/- as...

Income disclosed prior to search cannot be treated as undisclosed income

It is a well-settled that the undisclosed income under Chapter XIV-B of the Act has to be computed on the basis of search materials. It is also well settled that any income which has already been either recorded in the books of account or otherwise disclosed to the Department prior to the date of...

S. 54F Exemption can be claimed for residential house purchased outside India

S. 54F Exemption can be claimed for residential house purchased outside India

Posted: 25 Feb 2013 07:40 PM PST

On a plain reading of the provisions of section 54F of the Act, we do not find anything therein to suggest that the new residential house acquired should be situated in India. The jurisdictional High Court in the case of Mrs. Jennifer Bhide (supra) has held that introducing a word which is not...

EPFO subscribers to get 8.50% interest for 2012-13 & a permanent account number

Posted: 25 Feb 2013 06:48 PM PST

The EPFO's board discussed the rate of interest for 2012-13. After detailed discussion, the board decided to recommend a rate of interest of 8.5% for the year. Decision to pay 8.5% interest rate was taken unanimously by the board. The trustees also decided that EPFO will give a permanent...

Last Date to File ST 3 Return July 12 to Sep 12 & Revised Form ST 3

Posted: 25 Feb 2013 06:20 PM PST

Instruction regarding Notification No. 1/2013- Service Tax dated 22-2-2013 which seeks to amend the Service Tax Rules 1994 so as to prescribe the revised return Form ST3 and also stipulate that the last date for filing a return for the period July 2012 to September 2012, is 25th March 2013. F. No....

SARFAESI Act & sorrows of Borrower?

Posted: 25 Feb 2013 05:38 PM PST

There is every need for the Government to enable/assist the Banks in reducing their NPAs (Non-performing Assets) and it is beyond doubt that the Banks are now well assisted/equipped through the legal frame-work in recovering their dues. The provisions of SARFAESI Act, 2002 (The Securitisation and...

DVO's valuation based on incomparable sales is not permissible in law

Posted: 25 Feb 2013 11:19 AM PST

According to the Tribunal, was a condition precedent for making a reference to the DVO. The Tribunal also held that, in any event, the DVO's report was based on incomparable sales and, therefore, could not be relied upon. The Tribunal also held that the burden was on the revenue to show that...

Contrary View on Point of Taxation Rules, 2011 post Delhi HC judgment

Posted: 25 Feb 2013 08:08 AM PST

Savan R. Somani Brief :- The judgment in the case of Delhi Chartered Accountants Society (Regd.) V/s Union of India & Others, C.M.No.9237/2012 stated that 'Circular No.154 when it states that invoices issued on or before 31.3.2012 shall continue to be governed by Rule 7 as it stood before...

CBEC notifies ST-3 – Return of 2nd Quarter can be filed till 25-3-2013

Posted: 25 Feb 2013 07:44 AM PST

NOTIFICATION NO. 01/2013-ST, DATED 22-2-2013 Form ST- 3 for the period between the 1st day of July 2012 to the 30th day of September 2012, shall be submitted by the 25th day of March, 2013

Budget 2013 – 2014 A Brief Curtain Raiser

Posted: 25 Feb 2013 07:24 AM PST

This week is important from the economic view point as the Government would unfold its economic performance and agenda in the form of economic survey, railway budget and Union Budget for next fiscal- something for which the entire nation and investors all over the world excitedly wait for.

Revised requirements for Listed companies desirous of undertaking a Scheme of Arrangement

Posted: 24 Feb 2013 09:24 PM PST

CS Kiran Kumar Guptha B The SEBI, vide Circular No. CIR/CFD/DIL/5/2013 dated February 4, 2013 by rescinding the Circular No. SEBI/CFD/SCRR/01/2009/03/09 dated September 03, 2009, has revised the requirements for the Stock Exchanges and Listed companies desirous of undertaking a Scheme of...

Guidelines for Setting up Disaster Recovery& Business Continuity Plans Centers for IT / ITES SEZs

Posted: 24 Feb 2013 09:18 PM PST

Disaster recovery (DR) may be seen as the process, policies and procedures related to preparing for recovery or continuation of technology infrastructure critical to a business organization after a natural or human-induced disaster occurs. Disaster recovery may be seen as a subset of business...

List of CS Toppers for December, 2012 Exams

Posted: 24 Feb 2013 08:30 PM PST



S. 54F Value of entire land appurtenant to building purchased cannot be considered for exemption

S. 54F Value of entire land appurtenant to building purchased cannot be considered for exemption

Posted: 24 Feb 2013 05:14 AM PST

Section 54F is intended to encourage construction of or acquisition of residential house with the aid of the proceeds from the transfer of any long term capital asset, which is not a residencial house. The provision contemplates computing the cost of the residential building, but the value of the...

Reopening for lack of price transparency & requirement of price adjustment in ALP valid

Posted: 24 Feb 2013 05:13 AM PST

The reasoning recorded by the assessing officer cannot be said to be totally irrelevant, as the relevancy is in the context of escapement of income for the assessment year and the information may be from any source outside and an information with reference to any earlier year is outside the purview...

Browser Settings for Income Tax e-filing website

Posted: 24 Feb 2013 05:00 AM PST

Browser Settings Income Tax Department recommends that you use the following browser specifications for the best view of https://incometaxindiaefiling.gov.in website. You may still be able to use the e-Filing website using other browsers and versions, but the pages may not display properly or you...

Valuation done by DVO binding on Assessing Officer

Posted: 23 Feb 2013 09:18 PM PST

Where the assessee claims that the value adopted or assessed for stamp duty purposes exceeds the fair market value of the property as on the date of transfer, the Assessing Officer may refer the valuation of the relevant asset to a Valuation Officer in accordance with section 55A of the Income-tax...

No addition u/s. 68 if assessee proves the genuineness of transaction

Posted: 23 Feb 2013 08:21 PM PST

There was a clear lack of inquiry on the part of the assessing officer once the assessee had furnished all the material which we have already referred to above. In such an eventuality no addition can be made under section 68 of the Act.

ICSI – Verification of Photograph & Signature of Members

Posted: 23 Feb 2013 10:51 AM PST

Members of ICSI are requested to send the scanned images of the latest colored photograph for uploading/replacing on the website of the Institute for facilitating the online verification of Member's Identity and also of the specimen signature. We would request you to kindly arrange to send the...

If assessee not contested demand on ground of invocation of extended period of limitation, penalty is leviable

If assessee not contested demand on ground of invocation of extended period of limitation, penalty is leviable

Posted: 22 Feb 2013 08:28 PM PST

It is not in dispute that the show-cause notice invoked the extended period of limitation on the ground of suppression of facts with intent to avail undue CENVAT credit. The assessee did not choose to contest the demand on the ground of limitation, thereby virtually accepting the allegation of...

S. 68 Onus on assessee to prove identity & creditworthiness of subscribers & genuineness of transactions

Posted: 22 Feb 2013 05:30 PM PST

A perusal of the order of the Tribunal shows that it has gone on the basis of the documents submitted by the assessee before the AO and has held that in the light of those documents, it can be said that the assessee has established the identity of the parties. It has further been observed [...]

Exemption u/s 54/54F is available for a residential house whether it consists of several units.

Exemption u/s 54/54F is available for a residential house whether it consists of several units.

Posted: 22 Feb 2013 07:30 PM PST

Section 54/54F uses the expression a residential house. The expression used is not a residential unit. There is nothing in these sections which require the residential house to be constructed in a particular manner. The only requirement is that it should be for the residential use and not for...

Centralized Processing Cell for TDS, CPC (TDS)

Posted: 22 Feb 2013 06:52 PM PST

FM to Dedicate Centralized Processing Cell for Tax Deducted at Source, CPC (TDS) Tomorrow The Union Finance Minister Shri P. Chidambaram, will dedicate the Centralized Processing Cell for Tax Deducted at Source, CPC (TDS) to the nation tomorrow. The CPC (TDS) will be situated at Aayakar Bhawan,...

Expense specifically relatable to taxable income cannot be disallowed U/s. 14A & Rule 8D

Posted: 22 Feb 2013 06:34 PM PST

Once it is found that an expense is specifically relatable to a taxable income, as is the undisputed position in this case, no portion of such an expense can be disallowed u/s. 14A. The allocation of general expenses vis-à-vis tax exempt income and taxable income can only be made in respect of...

Merely making entry in books of account did not amount to provision of service

Posted: 22 Feb 2013 05:39 PM PST

Case – Futura Polyester Ltd. v. Commissioner of Central Excise [CESTAT Chennai] Issue: Whether merely making entry in books of account amount to provision of service? Facts: M/s Futura Polyester ltd. ("the Appellants") entered into an agreement with M/s. Futura Polymers Ltd., a 100% EOU...

Key features of RBI Guidelines for Licensing of New Banks in Private Sector

Posted: 22 Feb 2013 05:04 PM PST

(i) Eligible Promoters: Entities / groups in the private sector, entities in public sector and Non-Banking Financial Companies (NBFCs) shall be eligible to set up a bank through a wholly-owned Non-Operative Financial Holding Company (NOFHC).

Differential interest Rates on Home Loans

Posted: 22 Feb 2013 04:59 PM PST

Interest rates on advances have been de-regulated by the Reserve Bank of India (RBI). The banks determined their actual lending rates on loans and advances with reference to their Base Rate and by including such other customer specific changes as considered appropriate.  A statement is annexed. As...

Benefits available against ARO/invalidation letter in respect of Advance Authorisation

Posted: 22 Feb 2013 11:23 AM PST

Policy Circular No.9/2009-14 dated 1.10.2009 had clarified that supply of goods against Advance Release Order (ARO) is eligible for refund of duty drawback only and not for Terminal Excise Duty (TED) and supplies against invalidation letter is eligible for Advance Authorisation and TED refund.

Final RBI Guidelines for Licensing of New Banks in the Private Sector

Posted: 22 Feb 2013 11:06 AM PST

Preamble Over the last two decades, the Reserve Bank of India (RBI) licensed twelve banks in the private sector. This happened in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the experience gained from...

IRDA to relax Investment Guidelines

Posted: 22 Feb 2013 10:56 AM PST

Penetration of Insurance Policies; IRDA to Come-Out With a New Policy Giving Automatic Clearance to Standard Life Insurance Products and Relax Investment Guidelines to Encourage Flow of Funds into Infrastructure Sector          Insurance companies, both life and non-life sector have initiated...

DGCEI Detects Cases of Tax Evasion of Over Rs. 25 Crore by Misusing Cenvat Credit Facilities

Posted: 22 Feb 2013 10:53 AM PST

Directorate General of Central Excise Intelligence Detects Cases of Tax Evasion of Over Rs. 25 Crore by Misusing Cenvat Credit Facilities Directorate General of Central Excise Intelligence (DGCEI),, New Delhi recently booked cases against M/s Progressive Alloys India Pvt Ltd, Delhi, a registered...

CMA – Provisional Rank List of FINAL & INTERMEDIATE Exam (Dec-2012 Term)

Posted: 22 Feb 2013 10:42 AM PST

Provisional Rank List of FINAL Exam (Dec-2012 Term) Provisional Rank List of INTERMEDIATE Exam (Dec-2012 Term)

Exposure Draft of Excel Template of Taxonomy for Non-Banking Financial Companies (NBFCs)

Posted: 22 Feb 2013 10:39 AM PST

While the filing of the financial statements in XBRL format had begun for a class of companies, NBFCs were kept outside the purview, despite the fact that these companies also followed the Schedule VI format. Owing to peculiar nature of business as compared to the other Commercial and Industrial...

Revised passing requirements for CPT from June, 2013

Posted: 22 Feb 2013 10:34 AM PST

A candidate for the Common Proficiency Test shall ordinarily be declared to have passed the test if he obtains at one sitting a minimum of thirty per cent marks in each section and a minimum of fifty per cent marks in the aggregate of all the sections, subject to the principle of negative marking,...

New Exchange Rates from 22.02.2013

Posted: 21 Feb 2013 06:32 PM PST

Notification No.23/2013 – Customs (N.T.),  Dated the 21st February, 2013             S.O.       (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in super session of the notification of the Government of India in the Ministry of Finance...