Analysis of Amendment to Finance Bill 2013

Analysis of Amendment to Finance Bill 2013 Posted: 02 May 2013 08:28 PM PDT 1.      Reference to FEMA, 1999 in the place of FERA, 1973/ FERA, 1947 under the Income-tax Act, 1961 Even after repeal of Foreign Exchange Regulation Act, 1973, the Income-tax Act, 1961 continued to make a reference to the said Act in many of its sections, for example, section 10(4)(ii), 10(4B),... Requirement of TRC to contain prescribed particulars to be dispensed with Posted: 02 May 2013 08:27 PM PDT Sub-section (4) of 90 and 90A provides that treaty benefit will not be available to any Non Resident unless he furnishes TRC from the Government of his country of residence containing such particulars as may be prescribed. The Finance Bill, 2013 had proposed to insert sub-section (5) in sections 90... Text of Amendment to Finance Bill 2013 Posted: 02 May 2013 08:27 PM PDT  LOK SABHA THE FINANCE BILL, 2013 [As introduced in Lok .Sabha] Notice of Amendments SHRI P.CHIDAMBARAM: 1. Page 2, line 31 for"194LC", substitute "194I LC, 194LD". 2. Page 6, after line 13, insert— 3A (New) – Substitution of reference of certain expression by other... No requirement to obtain TAN by transferee of immovable properties Posted: 02 May 2013 08:25 PM PDT No requirement to obtain TAN by transferee deducting tax under section 194-IA Section 194-IA was proposed to be inserted by the Finance Bill, 2013 to provide for deduction of tax at source@1% on consideration for transfer of immovable property, other than agricultural land. However, no tax is to be... Trading in commodity derivatives not to be considered as a speculative transaction Posted: 02 May 2013 08:24 PM PDT The Commodities transaction tax is proposed to be introduced in a limited way by insertion of Chapter VII in the Finance Bill, 2013. The Finance Minister, in his budget speech, had clarified that trading in commodity derivatives will not be considered as a speculative transaction. However, no... Agricultural land not liable to wealth-tax Posted: 02 May 2013 08:14 PM PDT Land classified as agricultural land in the records of the Government and used for agricultural purposes not an asset chargeable to wealth-tax Section 2(ea) of the Wealth-tax Act, 1957 is proposed to be amended to clarify the real intent of the law, i.e., the agricultural land in the records of the... TCS on sale of gold coins and articles weighing 10 gms Posted: 02 May 2013 07:58 PM PDT TCS provisions under section 206C to also be attracted on sale of gold coins and articles weighing 10 gms The Finance Act, 2012 had inserted sub-section (1D) in section 206C to provide for collection of tax at source on sale of bullion or jewellery, if the consideration exceeds Rs.2 lakh and Rs.5... Higher TDS U/s. 206AA not applicable to Interest on Foreign Currency Loan from a source outside India Posted: 02 May 2013 07:55 PM PDT Higher TDS under section 206AA not to be applicable in respect of tax deductible under section 194LC Section 194LC, inserted by the Finance Act, 2012, provides for a concessional rate of withholding tax @ 5% on payments to non-residents in a case where an Indian Company borrows money in foreign... FM threatens tax evaders, says crackdown looming Posted: 02 May 2013 06:35 PM PDT In a strong message to tax evaders, the government today said that it will step up efforts to bring more people into net and also endeavour to recover tax arrears.Between January and March…we issued notices after mining the data and thanks to the advertising campaign, I have added 50 lakh... OECD – Draft handbook on transfer pricing risk assessment Posted: 02 May 2013 06:13 PM PDT In November 2011, the Steering Committee of the OECD Global Forum on Transfer Pricing undertook a project on transfer pricing risk assessment. The objective of this project was to produce a practical handbook that provides clear and detailed steps countries can take to assess the transfer pricing... CMA-President Communique – May, 2013 Posted: 02 May 2013 05:51 PM PDT "Let no feeling of discouragement prey upon you, and in the end you are sure to succeed.". -Abraham Lincoln Dear Professional Colleagues, First of all I take this opportunity to thank all the members who attended the International Professional Summit organized by the Institute at the Leela... Sitting or Retired Judge of High Court with at least 7 years of service eligible for appointment as President of Appellate Tribunal Posted: 02 May 2013 05:15 PM PDT Section 252(3) provides that the Central Government shall appoint the senior Vice-President or one of the Vice-Presidents of the Appellate Tribunal to be the President thereof. New time limits for completion of assessment or reassessment U/s 153 / 153B in cases where reference is made to TPO Posted: 02 May 2013 12:22 PM PDT New time limits for completion of assessment or reassessment under sections 153 and 153B in cases where reference is made to TPO to apply irrespective of the date of reference to TPO or the date of passing of order under section 92CA(3) Section 153 provides for the time limit for completion of... Concessional rate of TDS in respect of interest income of a non-resident from rupee-denominated bonds or government securities Posted: 02 May 2013 12:18 PM PDT Introduction of new section 194LD to provide concessional rate of TDS in respect of interest income of a non-resident from rupee-denominated bonds or government securities consequent to the amendment in section 206AA The Finance Act, 2012 had amended section 115A to provide that Interest payable by... Addition based on mere statement of assessee recorded u/s. 132(4) not sustainable Posted: 01 May 2013 11:48 PM PDT In the present case, the revenue authorities, sought to apply the statutory presumptions, as contemplated under section 132(4A) to the facts of the present case, without establishing the factum that the assessee was found in possession or control of any books of account, other documents, money,... Molasses produced during manufacturing of sugar not scrap for the purpose of section 206C Posted: 01 May 2013 10:44 PM PDT We have thoroughly gone through the findings of the ld. first appellate authority on the issue in dispute and we are of the view that the findings of the ld. first appellate authority are not based on any material or evidence and the Molasses would not form part of the definition as provided in... Bagasse used as a fuel usually in sugar mills, cannot be considered as 'scrap' for sec. 206C Posted: 01 May 2013 10:16 PM PDT Bagasse is quite often and commonly used as a fuel, usually in the sugar mill themselves. The sugarcane fibrous waste is initially moist after crushing, but most mills use them as fuel after drying. Hence, even though bagasse is in the nature of scrap and waste because of its nature, since it can... Exchange Rate of Foreign Currency Relating to Imported and Export Goods WEF 03.05.2013 Posted: 01 May 2013 09:49 PM PDT NOTIFICATION NO. 52/2013-CUSTOMS (N.T.) Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect... ICAI advises students to submit form either in person or through speed/registered post Posted: 01 May 2013 09:37 PM PDT In the recent past, it has been noticed by the Institute that some of the students submit their registration/examination application forms along with requisite fee with private agencies for onward transmission to the Institute and the forms so submitted either did not reach the Institute in time or... CG shall refer complaint against presiding officer to chairperson of respective DRTs to investigate allegation Posted: 01 May 2013 09:20 PM PDT DEBTS RECOVERY TRIBUNAL (PROCEDURE FOR INVESTIGATION OF MISBEHAVIOUR OR INCAPACITY OF PRESIDING OFFICER) AMENDMENT RULES, 2012 – SUBSTITUTION OF RULE 4 AND AMENDMENT IN RULES 5 & 10 NOTIFICATION NO. GSR 920(E) [F.NO.14/2/2010-DRT], DATED 19-12-2012 In exercise of the powers conferred by...

SEBI notification barring mutual funds from charging entry load not ultra vires

SEBI notification barring mutual funds from charging entry load not ultra vires Posted: 01 May 2013 08:11 PM PDT The petitioners have approached this Court seeking various reliefs, including quashing of Ext.P2 circular. The main ground of challenge of the order is that the Securities and Exchange Board of India has no power to issue the notification. The circular is for the benefit of the investors. It... SC rejects Director's argument that he was not being in charge of affairs Posted: 01 May 2013 07:57 PM PDT The appellant has taken the stand, as already stated, that even though he was a whole time Director he was not conversant with the accounts and finance and was only dealing with the human resource management of the company, hence, he had no fraudulent intention to deceive the investors. We find it... Once Once Assessing Officer given effect to order of Tribunal, his successor in office had no jurisdiction to pass a fresh order Posted: 01 May 2013 07:42 PM PDT The Tribunal by its order dated 17 December 2010 restored the proceedings back to the Assessing Officer. The Assessing Officer gave effect to the order of the Tribunal by passing an order dated 27 December 2010 which states that it has been made under section 254. The Assessing Officer re-computed... Insertion of words 'or assessable' by amending section 50C is effective from 1-10-2009 Posted: 01 May 2013 07:37 PM PDT Learned counsel for the assessee placed a circular in Circular No.5/2010/(F.No.142/13/2010-SO(TPL)) dated 03.06.2010 issued by the Board and submitted that as per the circular, it is made clear that the amendment made by the Finance (No.2) Act, 2009 is only prospective in nature and cannot be... Approval granted by STPI Director is sufficient to satisfy conditions relating to approvals u/s. 10A Posted: 01 May 2013 06:23 PM PDT Directors of the Software Technology Parks of India have the authority of the Inter-Ministerial Standing Committee and that all approvals granted by the STPI Directors are therefore deemed to be valid. The position is also clear from a letter dated 6.5.2009 issued by the Central Board of Direct... Registration U/s. 12AA cannot be refused for mere non commencement of charitable or religious activity by Trust Posted: 01 May 2013 06:17 PM PDT The preponderance of the judicial opinion of all the High Court including this Court is that at the time of registration under Section 12AA of the Income Tax Act, which is necessary for claiming exemption under Section 11 and 12 of the Act, the Commissioner of Income Tax is not required to look... Corporate Advisors Vis-À-Vis Their Professional Privilege Posted: 01 May 2013 05:52 PM PDT The corporate advisors play a very vital and the core role for the companies in respect of various advisory activities including representation before authorities. The corporate advisors generally are chartered accountants, company secretaries, cost and management accountants, advocates, tax... SEARCH REPORT -A Basic Tool for Inspection of Company's Records in Hands of Stakeholders Specially Banks Posted: 01 May 2013 09:42 AM PDT Now a day, Banks are more emphasizing on demanding Search Repots from Limited Companies while opening of Bank Accounts or giving the Loan to such Companies. The need for Search Reports arises to keep themselves (Banks) safe and to ensure that the company is not the defaulting one or having not the... Amendment to Sec. 206-C dealing with TCS on Sale of Bullion or Jewellery in Cash – Clarification Posted: 01 May 2013 09:13 AM PDT Currently, sale in cash of bullion (excluding coin or any other article weighing 10 grams or less) in excess of Rs 2 lakh or jewellery in excess of Rs.5 lakh is subject to Tax Collection at Source (TCS) @ 1%. As coins were neither included in bullion nor in jewellery, therefore, coins, even when... Whether the amount of liabilities taken over in case of slump purchase are to be considered for reaching at the amount of assets taken over for the value of purchase consideration ? Posted: 01 May 2013 08:48 AM PDT Whether the amount of liabilities taken over in case of slump purchase are to be considered for reaching at the amount of assets taken over for the value of purchase consideration ? Yes, the Hon'ble Tribunal has decided on facts, by giving a factual finding that the amount of liabilities taken over... Whether assessee consequent upon a scheme of demerger eligible for writing of bad debts related to earlier years before the take over from holding company? Posted: 01 May 2013 08:32 AM PDT The assessee company consequent upon a scheme of demerger as per the provisions of The Companies Act took over entire business (web portal) owned by the holding company. The assessee has written off the bad debts related to the previous years before the takeover of the business from the holding... Balance needs to be maintained between the principle of consistency and the rule of res judicata Posted: 01 May 2013 07:56 AM PDT The ld. AR vehemently argued about the determination of the ALP for the current year by the assessee in the same way as was done in earlier years. It was stated that since such method was accepted by the TPO for the earlier years, the same ought not to have been rejected for this year. [...] Reopening not valid if reasons silent on quantum of escaped tax Posted: 01 May 2013 05:42 AM PDT The reason assigned for reopening is that the petitioner after converting the leasehold land into freehold sold the property within three years after converting the land into freehold resulting into short term capital gain in view of the Karnataka High Court's decision referred to above. What... Tribunal cannot dismiss appeal only for want of prosecution without same being decided on merit Posted: 01 May 2013 01:11 AM PDT Rule 24 of the Income Tax Rules, 1963 makes it abundantly clear that the Tribunal cannot dismiss the appeal without adverting to the merits. Even on the day on which the hearing is adjourned, the appellant chose not to appear in person or through an authorised representative. It is incumbent upon... Gift not bogus if Assessee proves identity / creditworthiness of donor & genuineness of transaction Posted: 30 Apr 2013 11:09 PM PDT In the instant case, as can be noted from the findings of the Tribunal, Assessing Officer had not summoned any of the donors. However, it had issued the letters under section 133(6) of the Act. Assessing Officer had also called for confirmation letters which were received by it. The assessee also... HC upheld addition for unaccounted stock, rejects plea of stock borrowal from Sister Concern Posted: 30 Apr 2013 10:19 PM PDT In survey, an unaccounted stock was found lying at the railway plot of the assessee. The assessee claimed that the said stock was borrowed by it from sister concern OGPL to meet its export requirements for shipment in the month of March, 2005 and said quantities were returned to OGPL on purchase of... Reassessment Notice for mere change of opinion is impermissible in law Posted: 30 Apr 2013 10:07 PM PDT The learned counsel for the respondent had sought to argue that the present writ petitions were different and distinct from the earlier writ petition which resulted in the judgment dated 10.01.2013 inasmuch as in respect of three of the years in question i.e., assessment years 2001-02 to 2003-04,... Under-Recovery on Diesel effective 1.5.2013 declines sharply to Rs 3.80 per litre Posted: 30 Apr 2013 08:13 PM PDT Under-Recovery on Diesel effective 1.5.2013 declines sharply to Rs 3.80 per litre OMCs incurring Daily Under-Recovery of Rs 256 Crore Under-recoveries on Domestic LPG and PDS Kerosene lower at Rs 378.38 per cylinder & Rs. 27.93 per litre respectively Total Under-Recoveries during 2012-13... Powers of High Court under Article 226 cannot be invoked in the matter of recovery of dues Posted: 30 Apr 2013 08:12 PM PDT Powers, which were conferred on the civil court, now stands conferred on a Tribunal under Section 17 of the Act thereby it can deal with applications from banks and financial institutions for recovery of debts due to such banks and financial institutions. We are of the view when a specific remedy... S. 32 Depreciation allowable on software developed & installed by assessee Posted: 30 Apr 2013 06:41 PM PDT The learned CIT(A) on proper examination of evidences and material rightly came to the conclusion that software is intangible asset and was loaded in the system of machine. The learned CIT(A) also rightly held that installation of software could be checked by the technical person whether it was...

I-T returns may require disclosure of all assets

I-T returns may require disclosure of all assets Posted: 30 Apr 2013 05:15 PM PDT In a bid to counter tax evasion, the Finance Ministry is contemplating making it mandatory for individuals and Hindu Undivided Families (HUFs) to report Indian assets and liabilities in income-tax (I-T) return forms. "The government is considering to introduce a new income tax return form... New Norms for XBRL Filing Posted: 30 Apr 2013 11:44 AM PDT New norms have been put in place for Extensible Business Reporting Language (XBRL) filing with effect from 6th October, 2011 for select class of companies. For the financial years 2010-11 and 2011-12 a total of  2,90,39 and 2,57,86 companies respectively have filed their Balance Sheet using the... Penal Action Against Fraudulent Companies Posted: 30 Apr 2013 11:42 AM PDT During last five years i.e. from 2008-09 to 2012-13 a total of 782 inspection reports in respect of companies were received in the Ministry of Corporate Affairs. Based on the findings in the inspection reports, penal actions have been taken against the companies and their directors/officers in... Download Finance Bill 2013-14 passed by Lok Sabha on 30.04.2012 Posted: 30 Apr 2013 05:04 AM PDT The Finance Bill 2013 has been passed by the Lok Sabha today (30.04.2013) after incorporating  12 minor amendments. THE MINISTER OF FINANCE (SHRI P. CHIDAMBARAM) Moving the motion for consideration of the Bill said: Post the Budget presentation and post the Finance Bill introduction, we had... CBDT Clarifications on Functional Profile of Development Centres engaged in Contract R&D Services with insignificant risk Posted: 29 Apr 2013 11:56 PM PDT CA Kamal Garg TRANSFER PRICING: CBDT Clarifications on Functional Profile of Development Centres engaged in Contract R&D Services with insignificant risk – conditions relevant to identify such Development Centres The Central Board of Direct Taxes (CBDT) issued CIRCULAR NO. 3/2013 [F NO.... Utilizing Refunded SAD for Duty Payment (DEPB) – Extended Again Posted: 29 Apr 2013 10:36 PM PDT CIRCULAR NO 18/2013-Cus., Dated: April 29, 2013 Subject:- Refund of 4% CVD (SAD)-Extension of time upto 30th September 2013, for using re-credited 4% CVD (SAD) amount in DEPB-Regarding. Your kind attention is invited to the Circular No.27/2010-Customs, dated 13.08.2010, regarding procedure on... TDS – New File Validation Utility (FVU) version 2.133 – Key features / Download Posted: 29 Apr 2013 08:32 PM PDT Import of challan file (.csi file): Import of challan file downloaded from the TIN website (Challan Status Inquiry) has been made mandatory at the time of validating the quarterly TDS/TCS statement, if the TDS/TCS is deposited through challan. This will be applicable in case of regular statement... Transfer Pricing – Important principles on turnover filter & comparison explained Posted: 29 Apr 2013 07:56 PM PDT . Facts in brief are that the assessee during the assessment year 2007- 08 had provided software programming services to the parent company in the US for which the assessee had received a sum of Rs.5,39,40,81,065/-. Since the assessee had entered into an international transaction with an associate ... Transfer Pricing: Scope of +/- 5% tolerance adjustment to ALP explained Posted: 29 Apr 2013 07:33 PM PDT From the above second proviso to Section 92C(2), it is evident that if the variation between the arm's length price and the price at which international transaction was actually undertaken does not exceed the specified percentage, then only the price at which the international transaction has... ICAI President's Message – May 2013 Posted: 29 Apr 2013 07:24 PM PDT Dear Friends, Ethics is all about our becoming and feeling responsible about everything that is around us. We are responsible only when we appreciate everything that is ethical and denounce all that is not ethical around us. I would like our membership to ensure that they always go for the stricter...