Books of My Blog : for details go to my blog : http://latestupdatesofincometax.blogspot.com/

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Latest Updates of Income Tax,
TDS by PRAVEEN KUMAR
Praveen Kumar
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manufactured by
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The original blog can be found at
http: // latestupdatesofincometax . blogspot .com/
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All rights reserved by the author. No part of this publication may be repro-
duced, stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording and/or otherwise
without the prior written permission of the author. This book may not be
lent, resold, hired out or otherwise disposed of by way of trade in any form,
binding or cover other than that in which it is published, without the prior
consent of the author.
Manufactured by on September 28, 2011
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Interactive Platform for All Finance Professionals
In Easy Language, Readers Queries are also
welcome.
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Contents
50 Paise Coins to be Minimum Denomination Coin
Acceptable for Transaction from June 30, 2011 . . . 1
Exemption from attaching accounts of subsidiaries
with balance sheet of holding company . . . . . . . . 1
SEBI's recommendation on related party transactions 3
Centralized Processing Center (CPC), Bangalore has
begun processing of returns for AY 2010-11 . . . . . 5
Budget – 2011- (Tax limit enhanced from Rs 1,60,000
C to Rs 1,80,000)) . . . . . . . . . . . . . . . . . . . . . . . 5
Monthly Compliance Chart – With Due Dates (very
useful for every Finance professional) . . . . . . . . .
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Budget – 2011-Salaried Employee eraning Less then
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5 lacs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
MY Budget – 2011 – ( CHANGES IN INCOME TAX &
SERVICE TAX – MAIN POINTS) . . . . . . . . . . . . . 12
PUBLIC INTEREST : VALUABLE INFORMATION . .
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Notifications & Circulars (DVAT) – Extend the time
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limit DVAT 51, up to 31st March, 2011 . . . . . . . . 15
Payment of MCA filing fees through electronic mode
made mandatory . . . . . . . . . . . . . . . . . . . . . . . 18
Coins of 25 Paise and Below – Withdrawal from
Circulation . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Ministry approves 9.5% interest on PF deposits . . . 20
Monthly Obligation Chart APRIL- 2011 . . . . . . . . . 21
10 things to know about Mr. Anna Hazare and Lok
Pal Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
COMPANIES NEED NOT PAY STAMP DUTY ON
INCREASED CAPITAL: HC . . . . . . . . . . . . . . . . 24
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Imp. Info. : DUE DATE TO DEPOSIT TDS DEDUCTED
AND PROVISIONS IN MARCH, 2011 IS 30TH APRIL,
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Clarification on issues relating to CENVAT Credit
Rules 2004- Regarding Circular No.943/04/2011-CX-
29.04.2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
STATUTORY OBLIGATION CHART FOR THE MONTH
OF MAY, 2011 . . . . . . . . . . . . . . . . . . . . . . . . 31
e-Filing for AY 2011-12 has been started (ITR-1(SAHAJ)
and ITR-2 are now enabled). . . . . . . . . . . . . . . . 33
Instructions on Issuance of TDS certificates in form
no. 16A and option to authenticate same by way of
Digital Signature . . . . . . . . . . . . . . . . . . . . . . . 34
Form No. 16A now generated from Tax Information
Network (TIN). Mandatory for Companies and Banks
to issue Form 16A from TIN to their deductees for
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deductions made from April 1, 2011 (F. Y. 2011-12) 37
M E-filing for ITR 5 and ITR 6 enabled for AY 2011-12 40
Y RBI asks banks to reimburse failed ATM transactions
in 7 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Monthly Obligation / Due Date Chart for month of
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June, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
CY Filing of Balance Sheet and Profit and Loss Account
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in XBRL . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
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इनकम टैक्स रिटर्न भरने से छूट . . . . . . . . . . . . . . . . . . . 47
KNOW YOUR PF BALANCE ONLINE . . . . . . . . . . . . . . . 49
Monthly Obligation Chart (July, 2011) . . . . . . . . . . . . . . . . 49
Service tax Payable on billing basis from July 1 2011 (Clarification) 51
Cost Inflation Index for Financial Year 2011-2012 Notified . . . . . 52
Full Year Statutory Obligation Chart (2011-12) . . . . . . . . . . . 55
E-Filing : Digital Signature Certificate made mandatory w.e.f 1st Ju-
ly 2011 for Firms and Individuals . . . . . . . . . . . . . . . . . . . 66
e-Filing Process – At a glance . . . . . . . . . . . . . . . . . . . . 66
GOD is One . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
CHECKLIST FOR INCOME TAX RETURN (Nice Info.) . . . . . 69
Monthly Obligations – August 2011 . . . . . . . . . . . . . . . . . 71
HDFC Bank starts income tax payment facility through ATMs . . . 73
Salaries of Chief Executives . . . . . . . . . . . . . . . . . . . . . 73
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Electronic filing of service tax return made mandatory for all w.e.f.
01st October 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Procedure of Filling Service Tax Return Electronically . . . . . . . 75
Excel Tips : – Fast AutoFill . . . . . . . . . . . . . . . . . . . . . . 78
Service Tax on fees charged for issuance of Country of Origin Cer-
tificate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Format of reply to Penalty notice under section 272B for wrong quot-
ing or non-quoting of PAN . . . . . . . . . . . . . . . . . . . . . . 79
Gujarat HC upholds constitutional validity of service tax on renting
of immovable property . . . . . . . . . . . . . . . . . . . . . . . . 81
Cost Inflation Index meaning and Index for all the years . . . . . . . 101
Your Monthly Obligation Chart for September, 2011 . . . . . . . . 107
How to rectify and avoid interest default in Payment of TDS and How
to calculate interest on TDS defaults . . . . . . . . . . . . . . . . . 109
eTDS Correction Returns – Common reasons for rejection of TDS
Returns and solution for the same . . . . . . . . . . . . . . . . . . . 114
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Income Tax Deductions under section 80C – Eligible Investments
M and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Y Download MCA-21 All ROC Forms . . . . . . . . . . . . . . . . . 134
HAPPY TEACHER’S DAY…… . . . . . . . . . . . . . . . . . . . 146
How to interact with departmental officers & Reply
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to SCN and adjudication- Service Tax . . . . . . . . . 146
CY Useful Information on “CIBIL” . . . . . . . . . . . . . . 168
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Modification in PPF Scheme: Deposit Limit Raised
from Rs. 70,000 to Rs. 1,00,000/-(One Lac) . . . . . 171
Revised Schedule VI (shall be effective from 01.04.2011)172
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Online incorporation of companies within 24 hours . 174
MCA Circular on e-filing to avoid last minute rush . 175
Due date for submission of ITR-V extended . . . . . . 177
How To download FUV file from NSDL Website to
revise e-TDS return . . . . . . . . . . . . . . . . . . . . . 178
FAQ on XBRL regarding software Purchase, Training,
Filing of form 23AC and 23ACA, How to upload and
Taxonomy . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Income Tax Calculator . . . . . . . . . . . . . . . . . . . 181
Computer Tricks : Is your computer male or female ?181
Computer Tricks : Hear a PDF file instead of reading
it . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
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Excel Tips : Automatic Row Height for Wrapped Text182
FAQ on e-TDS / Corrected/Revised Return / Preparation
of Correction Statement More than Once on the
Same Regular Statement (Correction on Correction) 184
Documents pertaining to the transactions in relation
to which PAN to be quoted . . . . . . . . . . . . . . . . 187
Income Tax – Notified long-term infrastructure bond
U/s. 80CCF . . . . . . . . . . . . . . . . . . . . . . . . . . 190
FAQs on File Validation Utility (FVU) and How to
Verify correctness of e-TDS/TCS return Prepared . . 192
CBDT may recommend VDIS scheme to bring back
black money outside India . . . . . . . . . . . . . . . . . 195
How to make correction or Revision in Salary Details
of e- TDS return already filed? . . . . . . . . . . . . . . 197
TDS deductor may soon be able to view PAN-wise
ledger and different views available for Tax Payers
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on NSDL-TIN website . . . . . . . . . . . . . . . . . . . . 200
M 15th September, 2011 – Last Date for Payment of
Y Advance Tax . . . . . . . . . . . . . . . . . . . . . . . . . 203
Service Tax Notification No. 45/2011-ST dated 12.09.2011
– Legal Services provided by business entity to business
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entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
CY Introducing NEFT in MCA . . . . . . . . . . . . . . . . . 205
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Useful : Download Links for 35 Indian Accounting
Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Amends Central Excise Rules, 2002 (Fourth Amendment)
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thereby making e-filing of Central Excise returns
mandatory in ACES . . . . . . . . . . . . . . . . . . . . . 207
Repo rate, reverse repo rate hiked by RBI; home,
auto loan EMIs to go up . . . . . . . . . . . . . . . . . . 208
After petrol price hike, EGOM meet on LPG gas
cylinder subsidy deferred . . . . . . . . . . . . . . . . . 210
FEMA – RBI increased the limit for Transfer of
security by way of gift in calendar year to USD
50,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
VIEW TAX CREDIT (FORM 26AS) FROM BANK SITE
THROUGH NET BANKING FACILITY . . . . . . . . . . 214
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Income Tax Case Law : Claim of bad debts allowable
even if debts are of the same year – ITAT Mumbai . 217
Tribunal can issue direction beyond the scope of the
appeal for correction of error – Delhi HC . . . . . . . 227
TIPS TO TACKLE OFFICE POLITICS . . . . . . . . . . 240
Amends Notification No. 17/2004-Service Tax, dated
the 10th September, 2004 . . . . . . . . . . . . . . . . . 242
Amends Notification No. 18/2002-Service Tax, dated
16th December, 2002 . . . . . . . . . . . . . . . . . . . . 244
Form 3CD with annexures, 3CA, 3CB and Caro Report
in Excel Format (Updated) . . . . . . . . . . . . . . . . 245
International companies answerable to Indian consumer
courts for service deficiency – Supreme Court . . . . 245
Online filing of excise duty, service tax returns mandatory
from 1st October 2011 . . . . . . . . . . . . . . . . . . . 247
Govt may soon credit you service tax refund in you
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bank account automatically . . . . . . . . . . . . . . . . 247
M FAQ on TAN Registration Number – What to do if it
Y is forgotten or lost . . . . . . . . . . . . . . . . . . . . . 248
Electronic Fund Transfer – Dishonour – Same Liabilities
as NI Act . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
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New Procedure for Correction of Income Tax Payment
CY challan (Pysical) by Banks . . . . . . . . . . . . . . . . . 251
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Useful Links for All Finance Professionals (Bookmark
This for future reference) . . . . . . . . . . . . . . . . . 256
Payment to tenants for vacating house is cost of
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acquisition, Yet Not Relevant For Section 54F . . . . 257
(RBI Notifications) Returns to be submitted by NBFCs
– Revised Formats . . . . . . . . . . . . . . . . . . . . . . 261
FAQ on 26AS (Useful) . . . . . . . . . . . . . . . . . . . 264
Provident Fund Secrets (1 of 6) . . . . . . . . . . . . . 271
Provident Fund Secrets Insurance benefits (2 of 6) . 273
Provident Fund Secrets Claim interest on withdrawn
amount (3 of 6) . . . . . . . . . . . . . . . . . . . . . . . 274
Provident Fund Secrets Use of EPF TO FUND your
NEEDS (4 of 6) . . . . . . . . . . . . . . . . . . . . . . . 275
Provident Fund Secrets PREMATURE WITHDRAWAL
(5 of 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
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Provident Fund Secrets Have your grievances addressed
(6 of 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Excel Tips : Altering the Displayed Format of Numbers
to the Nearest 100 . . . . . . . . . . . . . . . . . . . . . 278
Last date of filing ST-3 returns for the period April,
2011 to September, 2011 is 25th October, 2011 . . 279
Interest received on income tax refund can be set-
off against the interest paid on delayed payment of
income tax – ITAT Mumbai . . . . . . . . . . . . . . . . 281
Download book covering direct and indirect tax, accounting
standards, LLP, Companies Act, Partnership Act in
brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
FAQ ON National Pension Scheme (NPS) . . . . . . . 283
How to Apply and ‘Get Certified Copies’ of Documents
from ROC . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Taxability of Leave Travel Allowance (LTA) . . . . . . 290
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Exemptions – Interest on bonds/debentures – Notified
M bonds or debentures of public sector companies u/s
Y 10(15) of income tax act, 1961 . . . . . . . . . . . . . . 292
(Very Very Useful) अपने फोन को अनचाही कॉल्स और एसए-
मएस से ऐसे करें आजाद – (Try Now) :-) . . . . . . . . . . . 295
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Fraudulent payments in the Accounts of EPFO through
CY fake cheques‑ precautionary measure to avoid fraudulent
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payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
Filing of e-return by Legal Heir (LH) using DSC:
Revised Process . . . . . . . . . . . . . . . . . . . . . . . 302
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Safe Efiling of ITR E-Filing cares about your security!!!302
Service Tax on Renting of Immovable Property per
se upheld by Delhi High Court . . . . . . . . . . . . . . 306
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50 Paise Coins to be Minimum
Denomination Coin Acceptable for
Transaction from June 30, 2011
Saturday, January 1, 2011
Government Calls in from Circulation Coins of Denomination of 25
Paise and below
The Central Government, Ministry of Finance has notified on December
20, 2010 to call in from circulation the coins of denomination of 25 paise
and below, issued from time to time, with effect from June 30, 2011. From
this date, these coins shall cease to be a legal tender for payment as well
as on account. The procedure for call in shall be notified separately by the
Reserve Bank of India.
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Consequently, from June 30, 2011 onwards these coins will not be accepted
in transactions. The minimum denomination coin acceptable for transaction
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will be 50 paise from that date. Also, in accounting, i.e. the entries in books
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of accounts, pricing of products/services/taxes shall also be rounded off to
CM 50 paise or whole rupee from that date.
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The notification was issued in exercise of the powers conferred by sub-
CY section 15A of the Coinage Act, 1906 (3 of 1906).
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Exemption from attaching accounts of
subsidiaries with balance sheet of holding
company
Tuesday, February 15, 2011
Ministry of Corporate Affairs, Government of India (MCA), has on 8 Febru-
ary 2011 issued directions through General Circular No. 2/2011 and Press
Note 3/2011 exempting holding companies from attaching specified par-
ticulars of its subsidiary companies with the balance sheet of the holding
company. The directions have been issued by MCA in terms of Section
212(8) of the Companies Act, 1956 (the Act).
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Section 212 of the Act requires holding companies to attach with their bal-
ance sheet, the following documents in respect of each of its subsidiary
companies viz:
1. Balance sheet;
2. Profit and loss account;
3. Auditor’s report;
4. Director’s report;
5. Statement of holding company’s interest in subsidiary including
changes therein if any, etc.
MCA observed that large number of companies were approaching MCA
for seeking exemption from attaching the above mentioned particulars of
subsidiaries with the balance sheet of the holding company.
C Considering globalizing Indian economy, increased number of subsidiaries
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and introduction of accounting standards on consolidated financial state-
ments, MCA directed that provisions of Section 212 of the Act shall not
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apply in relation to subsidiaries of those holding companies which fulfill
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1. Board of Directors of the holding company has given consent by
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balance sheet of the holding company.
K 2. The holding company shall present in its annual report, the con-
solidated financial statements of holding company and all its subsidiaries
audited by its statutory auditors.
3. The consolidated financial statement shall be prepared in strict
compliance with the applicable Accounting Standards and, where applica-
ble, Listing Agreement as prescribed by Securities and Exchange Board of
India.
4. The holding company shall disclose in the consolidated balance
sheet specified information in aggregate for each subsidiary including sub-
sidiaries of subsidiaries.
5. The holding company shall furnish a hard copy of details of ac-
counts of subsidiaries to any shareholder on demand.
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6. The holding as well as subsidiary companies in question shall reg-
ularly file such data to the various regulatory and Government authorities
as may be required by them.
7. The holding company shall give Indian rupee equivalent of the figures
given in foreign currency appearing in the accounts of the subsidiary com-
panies along with exchange rate as on closing day of the financial year.
Conclusion
• Approaching MCA on yearly basis for seeking exemption from
attaching particulars of subsidiaries with the balance sheet of holding com-
pany has been done away with if specified conditions are complied with.
• Consolidation of financial statements will be a prerequisite for an
unlisted holding company who wants to avail of the aforesaid general ex-
emption.
C Source : General Circular No. 2/2011
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SEBI’s recommendation on related party
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transactions
Tuesday, February 15, 2011
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Background:-Securities and Exchange Board of India [SEBI] at their Board
K Meeting held on 7 February 2011 decided to recommend to the Ministry of
Corporate Affairs, Government of India [MCA] to suitably amend Clause
166 of the Companies Bill, 2009 [Companies Bill], to disallow interested
shareholders from voting on the special resolution of the prescribed relat-
ed party transaction. SEBI move is aimed to protect small and diversified
shareholders in listed companies from abusive related party transactions.
As per Clause 166 of the Companies Bill, the Board of Directors of a com-
pany is required to approve specified related party transactions. In case of
companies having specified capital, such related party transactions which
are not on an arm’s length basis would require prior approval of sharehold-
ers by a special resolution. Specified related party transactions shall include
any contract or arrangement with a related party with respect to—
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(a) sale, purchase or supply of any goods or materials;
(b) selling or otherwise disposing of, or buying, property of any kind;
(c) leasing of property of any kind;
(d) availing or rendering of any services;
(e) appointment of any agents for purchase or sale of goods, materials,
services or property;
(f) appointment to any office or place of profit in the company or its
subsidiary company; and
(g) underwriting the subscription of any securities or derivatives there-
of, of the company.
SEBI has already mandated non-participation in voting in the shareholders
meeting by interested shareholders in the following cases:
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• In case of issue of sweat equity shares to promoters under SEBI
M (Issue of Sweat Equity) Regulations, 2002, for obtaining shareholders’ ap-
Y proval by special resolution, the promoters to whom Sweat Equity Shares
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are proposed to be issued cannot participate in voting.
MY • In case of voluntary delisting under SEBI (Delisting of Equity
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Shares) Regulations, 2009, the special resolution for seeking shareholders’
approval is considered to be approved, if the votes cast in favour of the pro-
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posal by public shareholders is at least two times the number of votes cast
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Conclusion
• The related party transactions which are not on an arm’s length basis
in case of listed companies will be subject to a greater scrutiny from non-
interested shareholders if the proposal is accepted by the MCA.
Source: Press release PR No.24/2011 dated 7 February 2011 issued by SE-
BI
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Centralized Processing Center (CPC),
Bangalore has begun processing of returns
for AY 2010-11
Wednesday, February 16, 2011
As on 11/2/2011 it has processed over 34.1 lakh e-filed returns of AY 2010-
11 in all categories of ITRs including Corporate Returns and generated re-
funds in over 8.6 lakh cases.
The Income Tax Department has now extended the last date for sending ITR
Vs for AY 2010-11 to 31st July, 2011 or 120 days whichever is later .
All taxpayers are requested to send their ITR-V early so that processing and
issue of refunds can be completed.
Marking the advent of Income Tax department in digital era, all intimation
C orders are being sent by e-mail to taxpayers as a digitally signed password
M protected PDF document.
Y SMS alerts (where mobile number is provided) to taxpayers on completion
CM of processing and determination of refunds has been introduced for ITRs of
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AY 2010-11.
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Budget – 2011- (Tax limit enhanced from Rs
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1,60,000 to Rs 1,80,000))
Monday, February 28, 2011
Finance minister MR. Pranab Mukharjee presented Union Budget – 2011
in Parliament today.
Highlights of the Budget :-
INCOME TAX: No change in tax slabs has been proposed. The tax ex-
emption limit for general category has been raised from Rs 1,60,000 to Rs
1,80,000.
No change in tax exemption limit for women.
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For senior citizens, exemption age limit has been reduced from 65 to 60.
Their tax exemption limit will be Rs 2,50,000.
Apart from this, a new exemption bracket has been created for those above
80 years of age. Their tax exemption limit will be Rs 5,00,000.
Surcharge for companies cut to 5 per cent, from 7.5 per cent.
A new revised income tax return form ‘Sugam’ to be introduced for small
tax papers.
DIRECT TAX: The FM announced that Direct Tax Code will be imple-
mented from April, 2012 and the Goods and Services Tax Bill is to be in-
troduced in Parliament this year.
SERVICE TAX: Service tax widened to cover hotel accommodation above
Rs 1,000 per day,
A/C restaurants serving liquor, some category of hospitals, diagnostic
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tests.
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Service tax on air travel increased by Rs 50 for domestic travel and Rs 250
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for international travel in economy class.
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On higher classes, it will be 10% flat.
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EXCISE AND CUSTOMS DUTY: There is a proposal to introduce self-
assessment of customs duty wherein importers and exporters will them-
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selves assess payment of duty.
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There will be change in excise duty. The standard rate of central exercise
duty will be maintained at 10%. A 1% central excise duty on 130 items
entering the tax net. Basic food and fuel and precious stones, gold and
silver jewellery will be exempted and there will be no change in CENVAT
rates.
A new scheme is to be introduced for refund of service tax on the lines
of drawback of duties, he announced. Also, capital investment in fertiliser
production will be considered as infrastructure sub-sector, Pranab said.
Tax-free bonds of Rs 30,000 cr will be issued for infrastructure development
which will cover Warehousing Corporation, NHAI, IRFC and HUDCO.
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Monthly Compliance Chart – With Due
Dates (very useful for every Finance
professional)
Monday, February 28, 2011
Hello Friends,
Given below are Compliance Reminder Chart which is very useful for
every Finance professional
Due Date
Particulars
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M 5th / 6th of every month
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Service Tax & Excise Duty payment for preceeding month (6th if
electronic payment, otherwise,
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the due date is 5th) (excluding March month)
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31/03
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Service Tax & Excise Duty payment for month of March
7th of every month
TDS / TCS payment for the preceeding month (31 May with respect to
TDS on entries passed
on 31 March)
10th of every month
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i) Excise return (ER – 1) for the preceeding month
ii) ER-6 monthly return u/r 9A(3) of CCR, 2004
15th of every month
PF payment (excluding the 5 grace day allowed) for the preceeding month
15/03, 15/06, 15/09, 15/12
Advance Income tax – installments for the year
15/01,15/06,15/07,15/10
C TDS Quarterly Statement in 24Q (salary payments) /26Q (payments other
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than Salary to Residents)
Y
15/01,15/06,15/07,15/10
CM
MY
TDS Quarterly Statement in 27Q (payments other than Salary to
CY
Non-residents)
CMY
K 15/01,30/04,15/07,15/10
TCS Quarterly Statement in 27EQ
21st of every month
i) VAT (Maharashtra) -TDS payment in form 210 for the preceeding month
ii) VAT (Maharashtra) & CST monthly payment for the preceeding month
iii) ESIC payment for the preceeding month
iv) VAT (Maharashtra) & CST monthly return (due date is excluding the
10 days grace allowed)
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25/04, 25/10
Half yearly service tax return in Form ST-3
25th of every month
PF monthly return for the preceeding month
Last date of every month
i) Issue of TDS certificate for the preeceding month (7 June with respect
to TDS on entries
passed on 31 March)
C II) PT (Maharashtra) payment (challan cum return) for the liability of
M
preceeding month
Y
CM
30/09
MY
Corporate tax return, Tax Audit, TP report & Wealth tax return for the
CY
preceeding March year end
CMY
K
30/04
i) Annual PF return for the Year ending 31 March
ii) ER-5 declaration u/r 9A(1) of CCR, 2004
30/11
ER-4 declaration u/r 12(2)(a) of CER, 2004* (pertaining to previous FY)
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Budget – 2011-Salaried Employee eraning
Less then 5 lacs
Tuesday, March 1, 2011
SALARIED EMPLOYEE ERANING LESS THEN 5 LACS NOT HAV-
ING OTHER INCOME NEED NOT FILE IT RETURN In a big relief
from cumbersome tax filing process for the salaried class, Finance Minis-
ter Pranab Mukherjee on Monday proposed to exempt them from filing tax
returns unless they have other sources of income. The government will be
issuing a notification exempting ‘classes of persons’ from the requirement
of furnishing income tax returns, said the Memorandum to the Finance Bill
2011.
Salary earners having an income of less than Rs 5 lakh will not have
to file tax returns from this year. “Salaried people, may be up to Rs 5
C
lakh…they need not file the (income tax) return,” CBDT chairman Sudhir
Chandra said. The exemption from filing tax returns come into effect
M
from the assessment year 2011-12. The decision, which will come into
Y effect from June 1, 2011, will reduce the compliance burden on small tax-
CM
payers, it added.
MY In case such a salary earner has income from other sources like dividend,
CY
interest etc. and does not want to file returns, he will have to disclose such
income to his employer for tax deduction, Chandra said.
CMY
K
The Form 16 issued to salaried employees will be treated as Income Tax
Return, he added.
“Therefore, in cases where there is no other source of income, filing of a
return is duplication of existing information,” the Memorandum said.
The Income Tax department is open to examining a proposal to exempt them
from the annual chore.
Asked whether the department would think about doing away with Income
Tax returns for employees, who had no other income apart from salaries in
a financial year, Central Board of Direct Taxes chairman Sudhir Chandra
said the department would certainly consider the proposal.
10
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He agreed that for a substantial chunk of salaried employees, savings bank
interest is the only additional income and that in most cases, this not sub-
stantial.
This proposal, if approved, will benefit a large section of people and would
reduce the I-T department’s workload in a big way.
Of the country’s 35 million taxpayers, roughly half are salaried employ-
ees.
The proposal to do away with returns for salaried taxpayers was earlier in-
ternally mooted within CBDT a few years ago.
The argument in favour of the proposal was that income records for this
class of taxpayer were available with both employers and banks.
Chandra also promised small taxpayers another major relief. He said the
I-T department is planning to release all small-value refunds before March
C 31.
M “I will ask my officials to give most refunds by the end of the current fi-
Y nancial year,” he said. ”We will try to clear most refunds in a month. At
CM
least small refunds can be given by March 31,” Chandra added. The newly-
appointed chairman said he would communicate this to his officials. Some
MY
of the refunds will be given to taxpayers directly through State Bank of
CY India under the refund banker scheme. Under this, tax refunds are sent to
CMY
taxpayers by State Bank of India, either through the electronic clearing ser-
K
vice mode or in physical form. The scheme was launched four years ago in
Delhi and Patna and later extended to other cities.
In 2009-10, the I-T department gave over Rs 58,000 crore (Rs 580 billion)
in refunds, which was 50 per cent more than the previous year. CBDT has
increased its target for processing refunds to Rs 70,000 crore (Rs 700 bil-
lion) in the current financial year. Refunds increased by 19.5 per cent to
Rs 44,000 crore (Rs (Rs 440 billion) up to December, 2010. The I-T de-
partment has opened a Central Processing Centre in Bengaluru for faster
processing of claims for electronically-filed returns. It will roll out three
more centres in the Manesar, Pune and Kolkata.
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Budget – 2011 – ( CHANGES IN INCOME
TAX & SERVICE TAX – MAIN POINTS)
Tuesday, March 1, 2011
CHANGES IN INCOME TAX & SERVICE TAX – MAIN POINTS
INCOME TAX 1. The basic exemption limit in the case of individuals
increased from Rs.1.60 lacs to Rs.1.80 lacs. However, there is no increase
in basic exemption limit in the case of Resident Women.
2. The qualifying age limit for senior citizens has been lowered from 65
years to 60 years and increased the current exemption limit under two cat-
egories
a. Category -1 – Age of Individual – 60 years or more but less than 80 years
at any time during the previous year. The basic exemption limit is increased
from Rs.2.40 lacs to Rs.2.50 lacs
C
b. Category – 2 – Age of Individual beyond 80 years or more at any time
M
during the previous year. The basic exemption limit is Rs.5.00 lacs.
Y
3. In the case of domestic companies the surcharge reduced from
CM
Rs.7.5% to 5% 4. In the companies other than domestic companies the
MY
surcharge has been reduced from 2.5% to 2%
CY
5. The definition of charitable purpose u/s 2 (15) includes “the advancement
CMY
of any other object of general public utility”. The monetary limit in respect
K of such activities has been enhanced from Rs.10.00 lacs to Rs.25.00 lacs.
6. The amount paid by an assessee as an employer by way of contribution
towards pension scheme, as referred to in sec 80CCD(2) on account of an
employee to the extent it doesn’t exceed 10% of the salary of employee in
the previous year, shall be allowed as a deduction u/s 36 in computing the
income under the head profit and gains of business or profession.
7. The Indian company which receives foreign dividend from foreign sub-
sidiary company such dividend is taxable at the 15% as against 30%
8. The rate of MAT i increased to 18.5% from 18% of such book prof-
it. 9. Minimum Alternative Tax has been introduced for Limited Liability
Partnership (LLP) in line with MAT on companies with effect from the As-
sessment Year 2012 – 2013.
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10. The Government exempts assessee having no other income other than
salary from furnishing the return of income by notification. The proposed
amendment shall be effective from 1st June, 2011.
11. The SEZ developers are required to pay dividend distribution tax on
dividends declared / distributed on or after 1st June, 2011.
12. The deduction u/s 80CCF to investment in notified long term infras-
tructure bonds extended for the A. Y. 2012-13 also.
13. Liaison offices of a company will be required to file Annual Information
in the prescribed form with in the 60 days from the end of the financial
year.
SERVICE TAX 1. The following new services have been proposed
a. Services by air conditioned restaurants having licence to serve liquor;
and
C
b. short term accommodation hotels / inns / clubs / guest houses etc charging
M tariff above Rs. 1,000/- per day.
Y
c. Legal professional entities (other than individual) giving service to indi-
CM vidual.
MY
d. Hospital having more than 25 bed with centralized air conditioning fa-
CY cilities have to pay service tax @ of 5% plus cess.
CMY
e. Life Insurance companies providing services on investment products.
K
2. Service Tax increased on air travel.
3. The monetary limit for adjustment of excess service tax paid is increased
from Rs. 1.00 lacs to Rs.2.00 lacs.
4. The penalty for delayed payment of service tax u/s 76 has been reduced
from 2% to 1% per month or Rs.100 per day whichever is higher. The
maximum penalty reduced to 50% of the tax.
5. The rate of interest is reduced by 3% for assesses with turnover of upto
60 lacs.
6. The maximum penalty for delay in filing of return increased from
Rs.2,000 to Rs.20,000 7. All individual upto Rs. 60 lacs p.a. turnover not
required for service tax audit.
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PUBLIC INTEREST : VALUABLE
INFORMATION
Monday, March 7, 2011
SHARE THIS VALUABLE INFORMATION WITH YOUR
FRIENDS JI JUST RECEIVED THIS INFORMATION ON MY
MAIL AND I FOUND IT VALUABLE TO POST IT ON MY BLOG
TO SHARE WITH EVERYONE. J
1. If you see children Begging anywhere in INDIA, please contact:
“RED SOCIETY” at 9940217816. They will help the children for their
studies.
2. Where you can search for any BLOOD GROUP, you will get thou-
sand’s of donor address. www.friendstosupport.org
3. Engineering Students can register in www.campuscouncil.comto at-
C
tend Off Campus for 40 Companies. 4. Free Education and Free
M
hostel for Handicapped/Physically Challenged children. Contact:-
Y 9842062501 & 9894067506.
CM
5. If anyone met with fire accident or people born with problems in
MY their ear, nose and mouth can get free PLASTIC SURGERY done by
CY
Kodaikanal PASAM Hospital . From 23rd March to 4th April by
German Doctors. Everything is free. Contact : 045420-240668,245732
CMY
“Helping Hands are Better than Praying Lips” 6. If you find any im-
K
portant documents like Driving license, Ration card, Passport, Bank
Pass Book, etc., missed by someone, simply put them into any near by
Post Boxes. They will automatically reach the owner and Fine will be
collected from them. 7. By the next 10 months, our earth will become
4 degrees hotter than what it is now. Our Himalayan glaciers are melt-
ing at rapid rate. So let all of us lend our hands to fight GLOBAL
WARMING. -Plant more Trees. -Don’t waste Water & Electrici-
ty. -Don’t use or burn Plastics 8. It costs 38 Trillion dollars to cre-
ate OXYGEN for 6 months for all Human beings on earth. “TREES
DO IT FOR FREE” “Respect them and Save them”
9. Special phone number for Eye bank and Eye donation:
04428281919 and 04428271616 (Sankara Nethralaya Eye Bank). For
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27. i i
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More information about how to donate eyes plz visit these sites.
http: // ruraleye.org/
10. Heart Surgery free of cost for children (0-10 yr) Sri Valli Baba
Institute Banglore. 10. Contact : 9916737471 11. Medicine for Blood
Cancer!!!! ‘Imitinef Mercilet’ is a medicine which cures blood cancer.
Its available free of cost at “Adyar Cancer Institute in Chennai”.
Create Awareness. It might help someone. Cancer Institute in Adyar,
Chennai Category: Cancer Address: East Canal Bank Road, Gandhi
Nagar Adyar Chennai -600020 Landmark: Near Michael School
Phone: 044-24910754 044-24910754, 044-24911526 044-24911526,
044-22350241 044-22350241 12. Please CHECK WASTAGE OF
FOOD If you have a function/party at your home in India and food
gets wasted, don’t hesitate to call 1098 (only in India ) – Its not a
Joke, This is the number of Child helpline. They will come and collect
the food. Please circulate this message which can help feed many
C children. AND LETS TRY TO HELP INDIA BE A BETTER PLACE
M
TO LIVE IN Please Save Our Mother Nature for “OUR FUTURE
GENERATIONS”
Y
CM
MY
CY Notifications & Circulars (DVAT) – Extend
CMY
the time limit DVAT 51, up to 31st March,
K
2011
Friday, March 11, 2011
Extend the time limit DVAT 51, up to 31st March, 2011
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF
DELHI
DEPARTMENT OF TRADE AND TAXES
VYAPAR BHAWAN, I. P. ESTATE, NEW DELHI-110 002
TEL NO. : 011 23319691, 011 23318568, FAX NO. : 011 23319474
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No. F.3(33)/P-II/VAT/Misc./2006/1932-42
Dated : 04-02-2011
ORDER
In exercise of the powers conferred under rule 49A of the Delhi Value
Added Tax Rules, 2005, sub-section (2) of section 9 of the Central Sales
Tax Act, 1956, and sub-rule (7) of rule 12 of the Central Sales Tax
(Registration and Turnover) Rules, 1957, I, Jalaj Shrivastava,
Commissioner, Value Added Tax, Government of National Capital
Territory of Delhi, do hereby, extend the time limit prescribed in-
C (a) sub-rule (1) of rule 67 of the Delhi Value Added Tax Rules, 2005 and
M
rule 4 of the Central Sales Tax (Delhi) Rules, 2005 for furnishing of
reconciliation return in Form DVAT 51, up to 31st March, 2011 for Ist and
Y
IInd quarter of the year 2010-11.
CM
(b) Sub-rule (5) of rule 5, clause (a) of sub-rule (3) of rule 6, clause (a) of
MY
sub-rule (5) of rule 7, sub-rule (2) of rule 9, rule 6B and sub-rule (2) of
CY rule 6A of the Central Sales Tax (Delhi) Rules, 2005 and sub-rule (10) of
CMY
rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957
K
for furnishing of the portion marked ‘original’ of the Declaration Forms
‘C’, ‘E-I’ or ‘E-II’, ‘F’, ‘I’, ‘J’ and ‘H’ respectively, up to 31st March,
2011 for Ist & IInd quarter of the year 2010-11 in respect of the
Declaration Forms which relate to the year 2010-11.
(JALAJ SHRIVASTAVA)
Commissioner, Value Added Tax
No. F.3(33)/P-II/VAT/Misc./2006/1932-42
Dated : 04-02-2011
Copy forwarded for information and necessary action to :-
The Principal Secretary (Finance), Government of NCT of Delhi, Delhi
Sachivalaya, I. P. Estate, New Delhi.
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29. i i
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The Secretary to Finance Minister, Government of NCT of Delhi, Delhi
Sachivalaya, I. P. Estate, New Delhi.
PS to Commissioner, Value Added Tax, Department of Trade & Taxes,
New Delhi.
All Additional / Joint / Deputy Commissioners, Department of Trade and
Taxes, Vyapar Bhawan, I. P. Estate, New Delhi.
The Joint Commissioner (PR) requesting for wide publicity of the order
for information of all concerned dealers.
The Registrar, Value Added Tax Appellate Tribunal, Vyapar Bhawan, I. P.
Estate, New Delhi.
All VATOs/AVATOs, Department of Trade and Taxes, Vyapar Bhawan I.
P. Estate, New Delhi.
Manager, EDP Unit, Department of Trade and Taxes, Vyapar Bhawan, I. P.
C
Estate, New Delhi requesting for posting the order on web site of the
M Department.
Y
D. D(R&S), Department of Trade and Taxes, Vyapar Bhawan, I. P. Estate,
CM New Delhi
MY
The President, Sales Tax Bar Association(Regd.), Vyapar Bhawan, I. P.
CY Estate, New Delhi.
CMY
Guard File.
K
(NAVEEN KATARA)
Value Added Tax Officer (Policy)
Notification No : No. F.3(33)/P-II/VAT/Misc./2006/1932-42
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Payment of MCA filing fees through
electronic mode made mandatory
Thursday, March 17, 2011
Payment of MCA filing fees through electronic mode made mandatory
Background- Under the Companies Act, 1956 read with Companies (Cen-
tral Government’s) General Rules and Forms, 1956, various forms are
required to be filed electronically on the MCA21 portal with the Min-
istry of Corporate Affairs (MCA), Government of India through the web-
site www.mca.gov.in . Presently, MCA accepts payment of filing fees
through any of the following channels:
(i) Remittance through physical challan at the accredited branches of the
authorized banks (cheque / cash)
(ii) Credit Card
C
M
(iii) Internet Banking
Y
(iv) any other mode as may be approved by MCA.
CM Modification in payment mechanism
MY
a) To improve the service delivery time, it is decided that:
CY
1. Payments upto Rs. 50,000 will be mandatorily required to be made
CMY
through electronic mode w.e.f. 27 March 2011.
K
2. Payments above Rs. 50,000 – a. Can be made through electronic mode /
challan payment between the period 27th March 2011 to 1 October 2011.
b. Will be mandatorily required to be made through electronic mode w.e.f.
1 October 2011.
Conclusion- The proposals are one of many being implemented to simplify
the existing Company law by removing redundant procedures and making
optimum use of information technology. The above is expected to improve
the services to the stakeholders by creating faster work item leading to re-
duction in time for approvals of forms / applications.
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Coins of 25 Paise and Below – Withdrawal
from Circulation
Thursday, March 17, 2011
Coins of 25 Paise and Below – Withdrawal from Circulation
RBI/2010-11/428
UBD. BPD. (PCB). Cir. No. 39 /09.73.000/2010-11
March 15, 2011
The Chief Executive Officers,
All Primary (Urban) Co-operative Banks.
Madam / Dear Sir,
C Coins of 25 Paise and Below – Withdrawal from Circulation
M
Please refer to the Govt. of India Gazette Notification S. O 2978(E) dated
Y December 20, 2010 and the Reserve Bank Press Release dated February 1,
CM 2011 on the above subject (copies enclosed).
MY 2. The Government of India has decided to withdraw coins of denomina-
CY
tion of 25 paise and below from circulation with effect from June 30, 2011.
CMY
The Reserve Bank of India has instructed the banks maintaining small coin
depots to arrange for exchange of coins of denomination of 25 paise and
K
below for their face value at their branches. The coins will be exchanged at
the branches of these banks as also the offices of the Reserve Bank till the
close of business on June 30, 2011. Coins of denomination of 25 paise and
below will not be accepted for exchange at the bank branches from July 1,
2011 onwards. The UCBs may take note of the above instructions.
3. Please acknowledge receipt to the Regional Office concerned.
Yours faithfully
(Uma Shankar)
Chief General Manager
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Ministry approves 9.5% interest on PF
deposits
Friday, March 18, 2011
The Finance Ministry on 17.03.2011 on Thursday approved higher interest
rate of 9.5 per cent to over 4.7 crore depositors with the Employees Provi-
dent Fund Organisation (EPFO) for 2010-11.
The EPFO had been paying 8.5 per cent interest on PF deposits since 2005-
06. In September last year, it had recommended an increase in interest rate
to 9.5 per cent for 2010-11 after discovering Rs 1,731 crore surplus in their
books of accounts.
“The finance ministry has ratified 9.5 per cent rate of return on PF deposits
for 2010-11. We have received a notification in this regard,” Central Prov-
ident Fund Commissioner Samirendra Chatterjee told PTI.
C
M
Chatterjee further added that “our calculations regarding Rs 1,731 crore
surplus in the interest suspense account were found correct by the finance
Y
ministry and so they approved this higher rate of return”.
CM
The finance ministry’s approval is subject to the condition that any shortfall
MY
on account of payment of 9.5 per cent rate of return would be met by making
CY adjustments in the interest rate in 2011-12.
CMY
Chatterjee, however, said that there would be no need for making any ad-
K justment in the next fiscal as “EPFO calculations are correct regarding the
discovery of a surplus of Rs 1,731 crore in the interest suspense account.”
The finance ministry has also asked the EPFO to update its subscriber ac-
counts within the next six months.
EPFO’s apex decision making body – the Central Board of Trustees (CBT) –
in September last year had decided to provide 9.5 rate of return on retirement
savings in 2010-11 after it found a surplus of Rs 1,731 crore.
Refusing to ratify the said rate of return, the finance ministry had earlier
argued that the surplus shown by the ministry was not real after CAG report
has called the EPFO’s so called surplus unverifiable.
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According to sources, the finance ministry approved 9.5 per cent interest
after the intervention by Finance Minister Pranab Mukherjee.
Monthly Obligation Chart APRIL- 2011
Monday, April 4, 2011
SERVICE TAX As early as possible Deposit of shortfall (If any) of
service tax in case of companies for the month of Mar. 2011 and in other
cases for the Quarter Jan. to Mar. 2011, if not deposited upto 31st March
2011.
DVAT/CST 25th April 2011 Filing of Half Yearly Return for Oct. 2010
to Mar. 2011.
15th April 2011 Filing of DVAT-55 for change of period of filing of return
C
in respect of change of quantum of turnover in F/Y 2010-11 in comparison
M to F/Y 2009-2010.
Y
15th April 2011 Deposits TDS (VAT) in challans DVAT 20 and issue
CM certificate for TDS in form DVAT–43 for deductions in the month of Mar-
MY
10.
CY 25th April 2011 Deposit of DVAT/CST Challans and e-filing of return for
CMY
the month of Mar. 2011 for the dealers filing monthly returns.
K 25th April 2011 Deposit of DVAT/CST Challans and e-filing of return for
the Quarter ending March 2011 for the dealers filing quarterly returns.
28th April 2011 Deposit monthly return (Hard Copy of Electronic Filing)
of VAT/CST for month March 2011.
28th April 2011 Deposit Quarterly return (Hard Copy of Electronic filing)
of VAT/CST for quarter ending March 2011.
28th April 2011 For dealers filing Half Yearly or Yearly Return, to de-
posit VAT/CST for quarter ending March 2011 irrespective of half yearly
or yearly return.
30th April 2011 Filing of DVAT-01/DVAT-02/DVAT 3A/ WC 01 etc for
opting /withdrawal from composition scheme
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INCOME TAX/T. D. S. 7th April 2011 Deliver a copy of form
15G/15H/27C to CCIT or CIT for declarations received in the month of
Mar. 2011
7th April 2011 Deposit of TDS on Salary/TCS in challans no. ITNS 281
for deductions/collections made in the month of Mar. 2011.
Deposit TDS other than Salary in challans ITNS 281 as per following Schedule:
7 th April 2011 i. TDS deducted upto 30/03/2011.
7th April 2011 ii. TDS deducted on the payment made on 31/03/2011.
31st May 2011 iii. TDS deducted on the payments credited but not made
on 31/03/2011.
30th April 2011 Submit quarterly statement of deduction of TCS in Form
27EQ for quarter ending Mar., 2011
C 30th April 2011 Issue of consolidated certificate for credit/payments made
M
during the year 2010-2011 in Form 16 for salary & Form 16A for payments
other than salaries.
Y
CM
MY
10 things to know about Mr. Anna Hazare
CY
and Lok Pal Bill
CMY
Friday, April 8, 2011
K
Let’s at least pass the Message on and enlighten ppl on what is the Impor-
tance of this Anna Hazare’s Hunger Strike….. !!!!!!!!!
1. Who is Anna Hazare?
An ex-army man. Fought 1965 Indo-Pak War
2. What’s so special about him?
He built a village Ralegaon Siddhi in Ahamad Nagar district, Maharash-
tra
3. So what?
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35. i i
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This village is a self-sustained model village. Energy is produced in the
village itself from solar power, biofuel and wind mills.
In 1975, it used to be a poverty clad village. Now it is one of the richest
village in India. It has become a model for self-sustained, eco-friendly &
harmonic village.
4. Ok, …?
This guy, Anna Hazare was awarded Padma Bhushan and is a known figure
for his social activities.
5. Really, what is he fighting for?
He is supporting a cause, the amendment of a law to curb corruption in
India.
6. How that can be possible?
C He is advocating for a Bil, The Lok Pal Bill (The Citizen Ombudsman Bill),
M
that will form an autonomous authority who will make politicians (minis-
ters), beurocrats (IAS/IPS) accountable for their deeds.
Y
CM
8. It’s an entirely new thing right..?
MY In 1972, the bill was proposed by then Law minister Mr. Shanti Bhushan.
CY
Since then it has been neglected by the politicians and some are trying to
change the bill to suit thier theft (corruption).
CMY
K
7. Oh.. He is going on a hunger strike for that whole thing of passing a Bill
! How can that be possible in such a short span of time?
The first thing he is asking for is: the government should come forward and
announce that the bill is going to be passed.
Next, they make a joint committee to DRAFT the LOK PAL BILL. 50%
goverment participation and 50% public participation. Because you cant
trust the government entirely for making such a bill which does not suit
them.
8. Fine, What will happen when this bill is passed?
A LokPal will be appointed at the centre. He will have an autonomous
charge, say like the Election Commission of India. In each and every state,
Lokayukta will be appointed. The job is to bring all alleged party to trial
23
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36. i i
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in case of corruptions within 1 year. Within 2 years, the guilty will be pun-
ished. Not like, Bofors scam or Bhopal Gas Tragedy case, that has been
going for last 25 years without any result.
9. Is he alone? Whoelse is there in the fight with Anna Hazare?
Baba Ramdev, Ex. IPS Kiran Bedi, Social Activist Swami Agnivesh, RTI
activist Arvind Kejriwal and many more.
Prominent personalities like Aamir Khan are supporting his cause.
10. Ok, got it. What can I do?
At least we can spread the message. How?
Putting status message, links, video, changing profile pics.
Join him at Jantar Mantar, New Delhi.
At least we can support Anna Hazare and the cause for uprooting corruption
C
from India.
M
At least we can hope that his Hunger Strike does not go in vain.
Y
CM
At least we can pray for his good health.
MY
CY
COMPANIES NEED NOT PAY STAMP DUTY
CMY
K
ON INCREASED CAPITAL: HC
Wednesday, April 27, 2011
NEW DELHI: The Delhi High Court has held that a company is not required
to pay the stamp duty on the increased amount of its authorised share capi-
tal.
A bench headed by justice S Muralidhar said this while allowing the plea of
S E Investments, which challenged the direction of the Registrar of Com-
panies (ROC) seeking stamp duty on increased amount in authorised share
capital.
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37. i i
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“In the absence of a specific provision that permits the levy of stamp duty
on the increase in authorised share capital, it would not be open to the Re-
spondents (ROC) to insist upon S E Investments having to pay stamp duty
for the increased authorised share capital,” the court said.
The court, however, made it clear that the company would not be entitled
to refund of the amount which it had already paid as stamp duty. “This will
however not enable the petitioner to claim refund of any stamp duty paid
earlier by it for increase in authorised share capital,” the court added.
S E Investments, a public limited company, was incorporated on March 5,
1992 with an authorised share capital of 3.5 crore. In 2010, it increased its
capital to 125 crore.
The company sought the opinion of ROC and contended that there is no pro-
vision in the Delhi Stamp Act to pay the duty on increase in the authorised
share capital.
C
However, the ROC directed the company to pay 25 lakh as stamp duty,
M prompting S E Investments to move the court.
Y
“It is directed that the ROC will now proceed to accept the petitioner’s Form
CM 5 and record the increased authorised share capital without insisting on the
MY petitioner paying stamp duty thereon,” the court added.
CY Decision on: April 21, 2011
CMY
K
Imp. Info. : DUE DATE TO DEPOSIT TDS
DEDUCTED AND PROVISIONS IN MARCH,
2011 IS 30TH APRIL, 2011
Thursday, April 28, 2011
DUE DATE TO DEPOSIT TDS DEDUCTED AND PROVISIONS IN MARCH, 2011 IS 30TH APRI
Due date to deposit the tax deducted on amount/Income paid in March
2011 and Tax deducted on provisions created in March 2011 is 30.04.2011.
This is as per notification 41/2010 dated 31.05.2010
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38. i i
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Old rule: Many people have doubts regarding the due date for TDS pay-
ment in March month. In old rules due date for tax deducted in month of
March was 7 April and date to deposit tds deducted on provision on last day
of financial year was 31.05 of next financial year.
But the these rule has been amended and as per latest rule for tds deducted
in march 2011, due date to deposit tax is 30.04.2011
So deposit tax on or before 30.04.2011.
TAX is deducted by Govt Department 1
Tax deposited without challan
Same day
2
Tax deposited with Challan
7th of next month
C
M
3
Y
CM
Tax on perquisites opt to be deposited by the employer
MY 7th of next month
CY
TAX is deducted by other 1
CMY
Tax deductible in March
K
30th April of next year
2
Other months & tax on perquisites opted to be
7th of next month
(3) Notwithstanding anything contained in sub Rule (2), in special
cases, the Assessing Officer may, with the prior approval of the Joint
Commissioner, permit quarterly payment of the tax deducted under
section 192 or section 194A or section 194D or section 194H for the
quarters of the financial year specified to in column (2) of the Table
below by the date referred to in column (3) of the said Table:
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39. i i
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S. No. Quarter of Financial year ended Date of payment
1 30th June 7th July 2 30th September 7th Oct 3 31st
Dec 7th January 4 31st March 30th April PLEASE NOTE-
TDS RETURN FOR MARCH 2011 TO BE FILED ON OR BEFORE 15.05.2011
Clarification on issues relating to CENVAT
Credit Rules 2004- Regarding Circular
No.943/04/2011-CX-29.04.2011
Monday, May 2, 2011
Clarification on issues relating to CENVAT Credit Rules 2004– Regard-
ing
C
M Circular No.943/04/2011-CX
Y
New Delhi, 29th April 2011
CM
F. No.354/73/2011 -TRU
MY
Government of India
CY
CMY
Ministry of Finance
K Department of Revenue
Tax Research Unit
To
The Chief Commissioners of Central Excise and Service Tax
(All),
The Director General (All),
The Commissioners of Service Tax (All),
The Commissioners of Central Excise and Service Tax (All).
Madam/Sir,
27
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40. i i
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Sub: Clarification on issues relating to CENVAT Credit Rules 2004– Re-
garding.
The CENVAT Credit Rules 2004 were amended along with the Budget
2011 announcements vide Notification 3/2011-CE (NT) dt 1.3.2011. A
few changes were further effected vide Notification 13/2011-CE (NT) dt
31.3.2011. On a few issues trade has requested for clarity. Accordingly the
following clarifications are presented issue wise in a tabular format.
S. No.
Issue
Clarification
1
Can credit of capital goods be availed of when used in manufacture of du-
tiable goods on which benefit under Notification 1/2011- CE is availed or
C
in provision of a servicewhose part of value is exempted on the condition
M that no credit of inputs and input services is taken?
Y
As per Rule 6(4) no credit can be availed on capital goods used exclusive-
CM ly in manufacture of exempted goods or in providing exempted service.
MY Goods in respect of which the benefit of an exemption under notification
CY
No. 1/2011-CE, dated the 1st March, 2011 is availed are exempted goods
[Rule 2(d)]. Taxableservices whose part of value is exempted on the con-
CMY
dition that no credit of inputs and input services, used for providing such
K taxable service, shall be taken, are exempted services [Rule 2(e)]. Hence
credit of capital goods used exclusively in manufacture of such goods or in
providing such service is not allowed.
2
Is the credit of only specified goods and services listed in the definition of
inputs and input services not allowed such as goods used in a club, outdoor
catering etc, or is the list only illustrative?
The list is only illustrative. The principle is that cenvat credit is not al-
lowed when any goods and services are used primarily for personal use or
consumption of employees.
3
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41. i i
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How is the “no relationship whatsoever with the manufacture of a final
product” to be determined?
Credit of all goods used in the factory is allowed except in so far as it is
specifically denied. The expression “no relationship whatsoever with the
manufacture of a final product” must be interpreted and applied strictly and
not loosely. The expression does not include any goods used in or in rela-
tion to the manufacture of final products whether directly or indirectly and
whether contained in the final product or not. Only credit of goods used in
the factory but having absolutely no relationship with the manufacture of
final product is not allowed. Goods such as furniture and stationary used
in an office within the factory are goods used in the factory and are used
in relation to the manufacturing business and hence the credit of same is
allowed.
4
C Is the credit of input services used for repair or renovation of factory or
M
office available?
Y Credit of input services used for repair or renovation of factory or office
CM
is allowed. Services used in relation to renovation or repairs of a factory,
premises of provider of output service or an office relating to such factory or
MY
premises, are specifically provided for in the inclusive part of the definition
CY of input services.
CMY
5
K
Is the credit of Business Auxiliary Service (BAS) on account of sales com-
mission now disallowed after the deletion of expression “activities related
to business”?
The definition of input services allows all credit on services used for clear-
ance of final products upto the place of removal. Moreover activity of sale
promotion is specifically allowed and on many occasions the remuneration
for same is linked to actual sale. Reading the provisions harmoniously it is
clarified that credit is admissible on the services of sale of dutiable goods
on commission basis.
6
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42. i i
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Can the credit of input or input services used exclusively in trading, be
availed?
Trading is an exempted service. Hence the credit of any inputs or input
services used exclusively in trading cannot be availed.
7
What shall be the treatment of credit of input and input services used in
trading before 1.4.2008?
Trading is an exempted service. Hence credit of any inputs or input services
used exclusively in trading cannot be availed. Credit of common inputs and
input services could be availed subject to restriction of utilization of credit
up to 20% of the total duty liability as provided for in extant Rules.
8
While calculating the value of trading what principle to follow- FIFO, LIFO
C
or one to one correlation?
M
The method normally followed by the concern for its accounting purpose
Y
as per generally accepted accounting principles should be used.
CM
9
MY
CY
Are the taxes and year end discounts to be included in the sale price and
cost of goods sold while calculating the value of trading?
CMY
K
Generally accepted accounting principles need to be followed in this regard.
All taxes for which set off or credit is available or are refundable/ refunded
may not be included. Discounts are to be included.
10
Does the expression “in or in relation” used in Rule 6 override the defi-
nition of “input” under Rule 2(k) for determining the eligibility of Cenvat
credit?
The definition of “input” is given in Rule 2(k) and Rule 6 only intends to
segregate the credits of inputs used towards dutiable goods and exempted
goods. While applying Rule 6, the expression “in or in relation” must be
read harmoniously with the definition of “inputs”.
11
30
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43. i i
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Sub-rules 3B and 3C of rule 6 apply to whole entity or independently in
respect of each registration?
The sub-rules 6(3B) and 6(3C) impose obligation on the entities providing
banking and financial services (in case of a bank and a financial institution
including a non-banking financial company) or life insurance services or
management of investment under ULIP service. The obligation is applica-
ble independently in respect of each registration. When such a concern is
exclusively rendering any other service from a registered premises, the said
rules do not apply. In addition to BoFS and life insurance services if any
other service is rendered from the same registered premises, the said rules
will apply and due reversals need to be done.
12
Is the credit available on services received before 1.4.11 on which cred-
it is not allowed now? e.g. rent-a-cab service
C
The credit on such service shall be available if its provision had been com-
M pleted before 1.4.2011.
Y
2. Trade and Industry as well as field formations may be suitably in-
CM formed.
MY
3. Receipt of this Circular may kindly be acknowledged.
CY
4. Hindi version will follow.
CMY
K
Yours faithfully,
(Shobhit Jain)
OSD, TRU
STATUTORY OBLIGATION CHART FOR
THE MONTH OF MAY, 2011
Tuesday, May 3, 2011
SERVICE TAX
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44. i i
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5th May 2011 Deposit of service tax in case of companies for
the month of April.2011
————————————————————————————————————————
INCOME TAX/T. D. S.
7th May 2011 Deliver a copy of form 15G/15H/27C to CCIT or CIT for
declarations received in the month of April. 2011
7th May 2011 Deposit of TDS /TCS for deductions/collections made in
the month of April. 2011.
15th May 2011 Submit quarterly statement of de-
duction of TDS/TCS in Form 24Q/26Q/27EQ for quarter ending
Mar.2011.
————————————————————————————————————————
C
M
DVAT/CST
Y 12th May 2011 E-filing of Half-yearly return of VAT/CST for
CM
the period Oct.2010 to Mar.2011
MY 15th May 2011 Deposit hard copy of E-filed Half-yearly return of VAT/C-
CY
ST for the period Oct.2010 to Mar.2011.
CMY
15th May 2011 Deposits TDS (VAT) in challans DVAT 20 and issue cer-
K
tificate for TDS in form DVAT–43 for deductions in the month of April-
11.
25th May 2011 E – payment of DVAT/CST Challans and e-filing of return
for the month of April. 2011 for the dealers filing monthly returns. Note-E
payment of DVAT/CST Challans has been made mandatory by Delhi vat
deptt April 2011 onwards for monthly dealers through net banking
28th May 2011 Deposit Monthly return (Hard Copy of Electron-
ic filing) of VAT/CST for month April 2011.
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45. i i
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e-Filing for AY 2011-12 has been started
(ITR-1(SAHAJ) and ITR-2 are now enabled).
Wednesday, May 4, 2011
LATEST NEWS:
E-FILING FOR AY 2011-12 HAS BEEN STARTED (ITR-1(SAHAJ)
AND ITR-2 ARE NOW ENABLED).
CAN BE DOWNLOADED FROM INCOME TAX WEBSITE, LINKS
ARE GIVEN BELOW :-
SL. NO.
FORM NAME
RETURN PREPARATION SOFTWARE
C
REMARKS
M
SYSTEM REQUIREMENTS
Y
1
CM
MY
ITR-1 (SAHAJ)
CY EXCEL UTILITY(VERSION 1.0)
CMY
NEW RELEASE
K
MS EXCEL
2
ITR-2
EXCEL UTILITY(VERSION 1.0)
NEW RELEASE
MS EXCEL
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46. i i
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Instructions on Issuance of TDS certificates
in form no. 16A and option to authenticate
same by way of Digital Signature
Thursday, May 19, 2011
Instructions on Issuance of TDS certificates in form no. 16A and
option to authenticate same by way of Digital Signature
CIRCULAR NO. 3/2011 [F. NO. 275/34/2011-(IT-B)
DATED 13-5-2011
Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31
C
of the Income-tax Rules, 1962 (“the IT Rules”) provides for furnishing of
certificate of tax deduction at source (TDS) by the deductor to the
M
deductee specifying therein the prescribed particulars like amount of TDS,
Y
permanent account number (PAN), tax deduction and collection account
CM number (TAN), etc. The relevant form for such TDS certificate is Form
MY
No.16 in case of deduction under section 192 and Form No.16A for
deduction under any other provisions of Chapter XVII-B of the Act. TDS
CY
certificate in Form No.16 is to be issued annually whereas TDS certificate
CMY
in Form No.16A is to be issued quarterly.
K
2. Currently, a deductor has an option to authenticate TDS certificate in
Form No.16 by using a digital signature. However, no such option of
using a digital signature is available to a deductor for issuing TDS
certificate in Form No.16A and it, therefore, needs to be authenticated by
a manual signature. The Central Board of Direct Taxes (the Board) has
received representations to allow the option of using digital signature for
authentication of TDS certificate in Form No.16A as issuance of TDS
certificate in Form No.16A by manual signature is very time consuming,
specially for deductors who are required to issue a large number of TDS
certificates.
3. The Department has already enabled the online viewing of Form
No.26AS by deductees which contains TDS details of the deductee based
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47. i i
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on the TDS statement (e-TDS statement) filed electronically by the
deductor. Ideally, there should not be any mismatch between the figures
reported in TDS certificate in Form No. 16A issued by the deductor and
figures contained in Form No.26AS which has been generated on the basis
of e-TDS statement filed by the deductor. However, it has been found that
in some cases the figures contained in Form No. 26AS are different from
the figures reported in Form No.16A. The gaps in Form No.26AS and
TDS certificate in Form No. 16A arise mainly on account of wrong data
entry by the deductor or non-filing of e-TDS statement by the deductor.
As at present, the activity of issuance of Form No.16A is distinct and
independent of filing of e-TDS statement, the chances of mismatch
between TDS certificate in Form No.16A and Form No. 26AS cannot be
completely ruled out. To overcome the challenge of mismatch a common
link has now been created between the TDS certificate in Form No.16A
and Form No.26AS through a facility in the Tax Information Network
website (TIN Website) which will enable a deductor to download TDS
C
certificate in Form No.16A from the TIN Website based on the figures
M reported in e-TDS statement filed by him. As both Form No.16A and
Y Form No.26AS will be generated on the basis of figures reported by the
CM
deductor in the e-TDS statement filed, the likelihood of mismatch between
Form No.16A and Form No.26AS will be completely eliminated.
MY
CY
4. In view of the above, for proper administration of the Act, the Board
have, in exercise of powers under section 119 of the Act, decided the
CMY
following:—
K
4.1 Issue of TDS Certificate in Form No. 16A
(i) For deduction of tax at source made on or after 1-4-2011:
(a) The deductor, being a company including a banking company to
which the Banking Regulation Act, 1949 applies and any bank or banking
institution, referred to in section 51 of that Act or a cooperative society
engaged in carrying the business of banking, shall issue TDS certificate in
Form No.16A generated through TIN central system and which is
downloaded from the TIN Website with a unique TDS certificate number
in respect of all sums deducted on or after the 1st day of April, 2011 under
any of the provisions of Chapter-XVII-B other than section 192.
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