ROBERT Agius, the former Vanuatu-based chartered accountant arrested in a crackdown on offshore tax avoidance, was found guilty of defrauding the commonwealth in Sydney yesterday.
Agius and Kevin Zerafa, a former employee of a Sydney accountancy firm, were both convicted of tax avoidance charges after a trial that lasted almost five months.
The two men worked with the late Sydney accountant Owen Trevor Daniel on a tax avoidance scheme for companies. It involved false invoices for management fees, consulting services and insurance premiums to non-existent companies in overseas tax havens.
Lawyers for Zerafa had argued that as he was 23 at the time, he was acting under the influence of Daniel's personality.
The jury was unable to reach a verdict on two of the co-accused and former employees of the firm, Carol Abibadra and Deborah Jandagi. Ms Jandagi is the daughter of the late Daniel, who played a key role in creating the tax avoidance scheme.
According to commonwealth prosecutor Peter Neil SC, the scheme relied on tax returns that "contained false information about non-existent expenses and disguised the true nature of the monies brought into Australia".
The jury heard money would be returned to business owners through payments of $50,000 of cash in brown paper bags by Agius's best friend, Arthur Isbester. Isbester was recently convicted for his role.
Agius and Zerafa will return to the NSW Supreme Court next weekfor sentencing submissions.
The most comprehensive news portal for Chartered Accountants and Other Professionals around the world.
Tuesday, July 31, 2012
Auditors To Cash In On Bank Mis-Selling
The 'big four' accounting firms are set to reap fees running into millions of pounds for supervising the clean-up of the latest bank mis-selling scandal.
I understand that HSBC has hired Deloitte and Barclays has appointed KPMG to act as the independent reviewers of their sales of interest rate swaps to small business customers.
The four biggest banks agreed with the Financial Services Authority last month that they would examine the sale of tens of thousands of these swap products, which were designed to protect against fluctuations in interest rates but which were often inappropriately sold.
While there is no suggestion that the major audit firms were complicit in the practice, some senior bankers I have spoken to have expressed discomfort at the likely fees bonanza for the accountancy profession that will result from the review process.
In its statement last month, the FSA said: "Not all businesses will be owed redress, but for those that are, the exact redress will vary from customer to customer, but could include a mixture of cancelling or replacing existing products, together with partial or full refunds of the costs of those products.
"This exercise will be scrutinised by an independent reviewer at each bank appointed under the FSA's powers."
Last week the FSA announced that seven more banks would also join the review process.
Barclays and HSBC declined to comment.
I understand that HSBC has hired Deloitte and Barclays has appointed KPMG to act as the independent reviewers of their sales of interest rate swaps to small business customers.
The four biggest banks agreed with the Financial Services Authority last month that they would examine the sale of tens of thousands of these swap products, which were designed to protect against fluctuations in interest rates but which were often inappropriately sold.
While there is no suggestion that the major audit firms were complicit in the practice, some senior bankers I have spoken to have expressed discomfort at the likely fees bonanza for the accountancy profession that will result from the review process.
In its statement last month, the FSA said: "Not all businesses will be owed redress, but for those that are, the exact redress will vary from customer to customer, but could include a mixture of cancelling or replacing existing products, together with partial or full refunds of the costs of those products.
"This exercise will be scrutinised by an independent reviewer at each bank appointed under the FSA's powers."
Last week the FSA announced that seven more banks would also join the review process.
Barclays and HSBC declined to comment.
New Guidelines on EEFC account balances - July 31 Circular
*Further Relaxations to Exchange Earners, *****
*Exporters and AD Category-I Banks *****
Reserve Bank of India has reviewed the extant guidelines governing Exchange
Earner's Foreign Currency (EEFC) Accounts, cancellation and rebooking of
forward contracts booked by the exporters and the Net Overnight Open
Position Limit (NOOPL) of the Authorised Dealer Category-I Banks. In order
to provide operational flexibility to exchange earners/ exporters and AD
Category-I banks, it has been decided: ****
• To restore the erstwhile stipulation of allowing credit of 100 percent
foreign exchange earnings to the EEFC accounts subject to the condition
that the sum total of the accruals in the account during a calendar month
should be converted into Rupees on or before the last day of the succeeding
calendar month after adjusting for utilization of the balances for approved
purposes or forward commitments; ****
• To allow exporters to cancel and rebook forward contracts to the extent
of 25 percent of the total contracts booked for hedging their exposure; and
****
• For computation of Net Overnight Open Position involving Rupee as one of
the currencies, AD Category-I banks need not include the positions taken by
their overseas branches and also the delta of the Options Position. It is,
however, clarified that these positions will continue to be part of the
total NOOPL along with cross-currency positions and positions arising out
of exchange traded currency futures/options transactions for calculation of
the total foreign currency exposure of banks. ****
*R. R. Sinha *****
** **
*Press Release : 2012-2013/165 *Deputy General Manager****
*Exporters and AD Category-I Banks *****
Reserve Bank of India has reviewed the extant guidelines governing Exchange
Earner's Foreign Currency (EEFC) Accounts, cancellation and rebooking of
forward contracts booked by the exporters and the Net Overnight Open
Position Limit (NOOPL) of the Authorised Dealer Category-I Banks. In order
to provide operational flexibility to exchange earners/ exporters and AD
Category-I banks, it has been decided: ****
• To restore the erstwhile stipulation of allowing credit of 100 percent
foreign exchange earnings to the EEFC accounts subject to the condition
that the sum total of the accruals in the account during a calendar month
should be converted into Rupees on or before the last day of the succeeding
calendar month after adjusting for utilization of the balances for approved
purposes or forward commitments; ****
• To allow exporters to cancel and rebook forward contracts to the extent
of 25 percent of the total contracts booked for hedging their exposure; and
****
• For computation of Net Overnight Open Position involving Rupee as one of
the currencies, AD Category-I banks need not include the positions taken by
their overseas branches and also the delta of the Options Position. It is,
however, clarified that these positions will continue to be part of the
total NOOPL along with cross-currency positions and positions arising out
of exchange traded currency futures/options transactions for calculation of
the total foreign currency exposure of banks. ****
*R. R. Sinha *****
** **
*Press Release : 2012-2013/165 *Deputy General Manager****
CVOCA - Require two office stfaf
Our client having Factory at Jui Nagar ( sanpada) required full time
Accountant come finance and Banking head
.If u know some one who is looking for job ask him /her to send CV at
aurainternational@rediffmail.com or kmamania@kpbca.com or
contact us
Accountant come finance and Banking head
.If u know some one who is looking for job ask him /her to send CV at
aurainternational@rediffmail.com or kmamania@kpbca.com or
contact us
Intensive Course on MVAT Organized by VASAI BRANCH OF WIRC from 1st Aug.
Vasai Branch invites you to Join this Important Intensive Course on MVAT. Further details are as follows:-
VASAI BRANCH OF WIRC
SIX DAYS INTENSIVE COURSE ON MVAT, CST & ALLIED LAWS
DATES 1,3,6,7,8, 9 August 2012
Wed, Fri, Mon, Tue, Wed & Thu
TIMINGS 5.30 PM TO 9.00 PM ALL THE DAYS
VENUE Hotel Haridwar, Opp. Vasai Rly Station and Bus Depot, Vasai (West)
CPE HOURS 18 HRS
CO-ORDINATORS CA. PRAMOD DHAMANKAR 9987155522
CA. HARESH MEHTA 9823137477
CONTACT FOR REGISTRATION MISS. SAVITA 65568900/ 02228102193
QUESTION & ANSWER SESSION ON EACH DAY AT THE END.
WHO SHOULD ATTEND? CHARTERED ACCOUNTANTS, MVAT PRACTIONERS & OTHER PROFESSIONALS, STUDENTS & STAFF OF CA MEMBERS
FEES FOR MEMBERS –Rs.2200/-
FOR STUDENTS- Rs.2200/-
FOR OTHERS – Rs.3000/-
Please Add Rs.100/-for Benevolent Fund
(Inclusive of Background Materials, tea & dinner)
DAY-1, 1ST AUG 2012, WEDNESDAY
5.30 PM TO 5.45 PM INAUGURATION BY CA. DURGESH KABRA, CHAIRMAN, WIRC
5.45 PM TO 7.15 PM INTRODUCTION, DEFINITION, REGISTRATION, CA DILIP PHADKE
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM LEVY OF TAXES,INCLUDING SCHEDULES
(TO BE FOLLOWED BY DINNER)
DAY-2, 3RD AUG 2012, FRIDAY
5.30 PM TO 7.15 PM CST, BRANCH & CONSIGNMENT TRANSFER, SALE IN TRANSIT, HIGH SEA SALE, VARIOUS FORMS RETURNS UNDER CST ACTS. CA AMAR SHUKLA
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM RULES 86 PROFESSION TAX ACT, LUXURY TAX
(TO BE FOLLOWED BY DINNER)
DAY-3, 6TH AUG 2012, MONDAY
5.30 PM TO 7.15 PM MAINTENANCE OF BOOKS, RECORDS & AUDIT CA DEEPAK THAKKAR
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM SEARCH & SURVEY
(TO BE FOLLOWED BY DINNER)
DAY-4, 7TH AUG 2012, TUESDAY
5.30 PM TO 7.15 PM COMPOSITION SCHEMES- CA BHARAT GOSAR
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM TAXATION OF WORKS CONTRACT (INCLUDING JUDGMENTS ON BAI OF BOMBAY HC)
(TO BE FOLLOWED BY DINNER)
DAY-5, 8TH AUG 2012, WEDNESDAY
5.30 PM TO 7.15 PM RETURNS, PERIODICITY & E-FILING OF FORMS & PROCEDURAL ISSUES. CA RAJAT TALATI
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM ASSESSMENT, REVIEW, RECTIFICATION, APPEALS, INTEREST, PENALTY & BRAIN TRUST
(TO BE FOLLOWED BY DINNER)
DAY-6, 9TH AUG 2012, THURSDAY
5.30 PM TO 7.15 PM EXEMPTIONS, SET OFF RULES CA KIRAN GARKAR
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM (INCLUDING JUDGEMENTS OF MAHALAXMI SPINNING MILLS -BOMBAY HC) TAX INVOICE
(TO BE FOLLOWED BY DINNER)
VASAI BRANCH OF WIRC
SIX DAYS INTENSIVE COURSE ON MVAT, CST & ALLIED LAWS
DATES 1,3,6,7,8, 9 August 2012
Wed, Fri, Mon, Tue, Wed & Thu
TIMINGS 5.30 PM TO 9.00 PM ALL THE DAYS
VENUE Hotel Haridwar, Opp. Vasai Rly Station and Bus Depot, Vasai (West)
CPE HOURS 18 HRS
CO-ORDINATORS CA. PRAMOD DHAMANKAR 9987155522
CA. HARESH MEHTA 9823137477
CONTACT FOR REGISTRATION MISS. SAVITA 65568900/ 02228102193
QUESTION & ANSWER SESSION ON EACH DAY AT THE END.
WHO SHOULD ATTEND? CHARTERED ACCOUNTANTS, MVAT PRACTIONERS & OTHER PROFESSIONALS, STUDENTS & STAFF OF CA MEMBERS
FEES FOR MEMBERS –Rs.2200/-
FOR STUDENTS- Rs.2200/-
FOR OTHERS – Rs.3000/-
Please Add Rs.100/-for Benevolent Fund
(Inclusive of Background Materials, tea & dinner)
DAY-1, 1ST AUG 2012, WEDNESDAY
5.30 PM TO 5.45 PM INAUGURATION BY CA. DURGESH KABRA, CHAIRMAN, WIRC
5.45 PM TO 7.15 PM INTRODUCTION, DEFINITION, REGISTRATION, CA DILIP PHADKE
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM LEVY OF TAXES,INCLUDING SCHEDULES
(TO BE FOLLOWED BY DINNER)
DAY-2, 3RD AUG 2012, FRIDAY
5.30 PM TO 7.15 PM CST, BRANCH & CONSIGNMENT TRANSFER, SALE IN TRANSIT, HIGH SEA SALE, VARIOUS FORMS RETURNS UNDER CST ACTS. CA AMAR SHUKLA
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM RULES 86 PROFESSION TAX ACT, LUXURY TAX
(TO BE FOLLOWED BY DINNER)
DAY-3, 6TH AUG 2012, MONDAY
5.30 PM TO 7.15 PM MAINTENANCE OF BOOKS, RECORDS & AUDIT CA DEEPAK THAKKAR
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM SEARCH & SURVEY
(TO BE FOLLOWED BY DINNER)
DAY-4, 7TH AUG 2012, TUESDAY
5.30 PM TO 7.15 PM COMPOSITION SCHEMES- CA BHARAT GOSAR
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM TAXATION OF WORKS CONTRACT (INCLUDING JUDGMENTS ON BAI OF BOMBAY HC)
(TO BE FOLLOWED BY DINNER)
DAY-5, 8TH AUG 2012, WEDNESDAY
5.30 PM TO 7.15 PM RETURNS, PERIODICITY & E-FILING OF FORMS & PROCEDURAL ISSUES. CA RAJAT TALATI
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM ASSESSMENT, REVIEW, RECTIFICATION, APPEALS, INTEREST, PENALTY & BRAIN TRUST
(TO BE FOLLOWED BY DINNER)
DAY-6, 9TH AUG 2012, THURSDAY
5.30 PM TO 7.15 PM EXEMPTIONS, SET OFF RULES CA KIRAN GARKAR
7.15 PM TO 7.30 PM TEA BREAK
7.30 PM TO 9.00 PM (INCLUDING JUDGEMENTS OF MAHALAXMI SPINNING MILLS -BOMBAY HC) TAX INVOICE
(TO BE FOLLOWED BY DINNER)
Allowing public to use slot gaming machines is an 'entertainment'/ 'a
ST : ECJ : Allowing public to use slot gaming machines is an 'entertainment'/ 'amusement' service under section 66D(j) and is not liable to service tax and, further, place of provision of such services is place where such services are actually provided
[2012] 23 taxmann.com 429 (ECJ)
EUROPEAN COURT OF JUSTICE
RAL (Channel Islands) Ltd.
v.
Commissioners of Customs & Excise*
[2012] 23 taxmann.com 429 (ECJ)
EUROPEAN COURT OF JUSTICE
RAL (Channel Islands) Ltd.
v.
Commissioners of Customs & Excise*
Hiring a middlemen to take bribe
CHANDIGARH: Hiring of middlemen on commission basis for accepting bribe on their behalf is the latest tactic being employed by bribe-seeking government officials. And the Central Bureau of Investigation (CBI) is working on such cases to establish links between middlemen and corrupt officials.
CBI sources said, Income tax officer (ITO) Parmod Arora of Sector 2, Panchkula, had decided to hand over 10% of the bribe money of Rs 2 lakh to Aneesh Garg for accepting it from Subhash Chandra on his behalf on July 19. While Garg was arrested from Pehowa in Kurushetra, Arora, was arrested from Ambala on July 20. Arora had demanded a bribe from Chandra for not slapping income tax notices against him.
Harvinder Behal, a law graduate, who was arrested two days ago, was also allegedly working as a middleman between an official of Andhra Bank and NRI Bhupinder Singh for delivering the bribe to the official. Behal was arrested from near Mehfil hotel in Sector 17, on July 28. The Andhra Bank official, whose role is under the scanner, has been asked to join the CBI investigation within a week. A member of the investigation agency said call details of Behals cellphone are being scrutinized for establishing his links with the bank official. Behal from Ludhiana and has been sent to judicial custody.
There are some cases involving Chandigarh cops where senior officials used lower rank policemen as middlemen. ASI Desh Raj, former head of proclaimed offender (PO) wing, was booked for seeking Rs 3,000 through constable Vajinder Singh on February 25. Though Vajinder was caught, the ASI managed to escape and obtained anticipatory bail from a court.
Legal experts say by hiring middlemen, corrupt officials want to avoid taking marked currency notes. DIG (CBI) Mahesh Aggarwal refused to comment on these cases saying, The cases are under investigation.
CBI sources said, Income tax officer (ITO) Parmod Arora of Sector 2, Panchkula, had decided to hand over 10% of the bribe money of Rs 2 lakh to Aneesh Garg for accepting it from Subhash Chandra on his behalf on July 19. While Garg was arrested from Pehowa in Kurushetra, Arora, was arrested from Ambala on July 20. Arora had demanded a bribe from Chandra for not slapping income tax notices against him.
Harvinder Behal, a law graduate, who was arrested two days ago, was also allegedly working as a middleman between an official of Andhra Bank and NRI Bhupinder Singh for delivering the bribe to the official. Behal was arrested from near Mehfil hotel in Sector 17, on July 28. The Andhra Bank official, whose role is under the scanner, has been asked to join the CBI investigation within a week. A member of the investigation agency said call details of Behals cellphone are being scrutinized for establishing his links with the bank official. Behal from Ludhiana and has been sent to judicial custody.
There are some cases involving Chandigarh cops where senior officials used lower rank policemen as middlemen. ASI Desh Raj, former head of proclaimed offender (PO) wing, was booked for seeking Rs 3,000 through constable Vajinder Singh on February 25. Though Vajinder was caught, the ASI managed to escape and obtained anticipatory bail from a court.
Legal experts say by hiring middlemen, corrupt officials want to avoid taking marked currency notes. DIG (CBI) Mahesh Aggarwal refused to comment on these cases saying, The cases are under investigation.
Extention of due date is for all assessee.
As per the new clarification on I. Tax Site & also as per telephonic conversation with CBDT by one of the member it is confirmed that due date is extended to all assessee who are lible to file return by 31st July 2012.
Kindly see the details as under taken from I. Tax Site.
WELCOME TO INCOMETAX INDIA
CBDT, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, has extended the 'due date' of filing of returns of income for the A Y 2012-13 to 31st August 2012 in respect of assesses who are liable to file such returns by 31st July 2012 as per section 139 of IT Act, 1961 (NEW)
Kindly see the details as under taken from I. Tax Site.
WELCOME TO INCOMETAX INDIA
CBDT, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, has extended the 'due date' of filing of returns of income for the A Y 2012-13 to 31st August 2012 in respect of assesses who are liable to file such returns by 31st July 2012 as per section 139 of IT Act, 1961 (NEW)
Supreme Court Bars Direct SLP Against AAR Rulings
*"Binding" AAR Rulings can be challenged but not directly in the Supreme
Court *
The Petitioner, a USA company, filed an application for advance ruling on
the question whether its liaison office in India was a "business
connection"/ "permanent establishment" and whether its business profits
were taxable under the Act and the DTAA. The AAR held that the liaison
office was a business connection/ PE and that the income attributable
thereto was assessable to tax in India. The Petitioner filed a SLP directly
in the Supreme Court to challenge the AAR's ruling. The Supreme Court had
to consider whether the AAR was a "tribunal"/ "court" and whether a direct
challenge in the Supreme Court was desirable. HELD:
*(Click Here To Read More <http://bit.ly/AAR_SC_HC>)*
Court *
The Petitioner, a USA company, filed an application for advance ruling on
the question whether its liaison office in India was a "business
connection"/ "permanent establishment" and whether its business profits
were taxable under the Act and the DTAA. The AAR held that the liaison
office was a business connection/ PE and that the income attributable
thereto was assessable to tax in India. The Petitioner filed a SLP directly
in the Supreme Court to challenge the AAR's ruling. The Supreme Court had
to consider whether the AAR was a "tribunal"/ "court" and whether a direct
challenge in the Supreme Court was desirable. HELD:
*(Click Here To Read More <http://bit.ly/AAR_SC_HC>)*
Appointment of Chartered Accountant Firm as service tax consultant of HUDCO
Housing And Urban Development Corporation Limited 
Last Date : 06/08/2012
Appointment of Chartered Accountant Firm as service tax consultant.
Address: HUDCO Bhawan,Behind RHB offic,Jyoti Nagar,Jaipur
Phone:
Email:
Last Date : 06/08/2012
Appointment of Chartered Accountant Firm as service tax consultant.
Address: HUDCO Bhawan,Behind RHB offic,Jyoti Nagar,Jaipur
Phone:
Email:
Vacancy for CA/CS/CWA in NSE India
Current Openings
Job Profile-Asst Manager (Operations)
| Designation | Asst. Manager |
| Department | Operations |
| Criteria | CA/CS/CWA/MBA (Fin. - 2 yrs full time) with 0-4 Years of Experience |
| Education | Qualified Chartered Accountant |
| Experience Required | 0- 3 years |
Date of filing of ITR for assessees who were required to file their ITR on 31st July 2012 has been extended
Date of filing of ITR for assessees who were required to file their ITR on
31st July 2012 has been extended to 31st August, 2012
31st July 2012 has been extended to 31st August, 2012
RELAXATION FROM COMPULSORY E-FILING OF RETURN OF INCOME FOR ASSESSMENT YEAR 2012
RELAXATION FROM COMPULSORY E-FILING OF RETURN OF INCOME FOR ASSESSMENT YEAR 2012-13 FOR REPRESENTATIVE ASSESSEES OF NON-RESIDENTS AND IN THE CASE OF PRIVATE DISCRETIONARY TRUSTS
PRESS RELEASE, DATED 31-7-2012
Rule 12 of the Income-tax Rules, 1962 mandates that an individual or Hindu undivided family, if his or its total income or the total income in respect of which he is or it is assessable under the Act, during the previous year, exceeds ten lakh rupees, shall furnish the return electronically for the assessment year 2012-13 and subsequent assessment years.
2. It has been brought to the notice of the Board that the agents of non-residents, within the meaning of section 160(1) (i) of the Income -tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because there may be more than one agent of the non-resident in India for different transactions or a person in India may be an agent of more than one non-resident. Such situations are not covered by the existing e-filing software which functions on the principle of one assessee-one PAN-one return.
3. It has also been brought to the notice of the Board that 'private discretionary trusts' having total income exceeding ten lakh rupees are facing problems in filing their return of income electronically in cases where they are filing their return in the status of an individual. This is because status of a private discretionary trust has been held in law as that of an 'individual'. The existing e-filing software does not accept the return of a private discretionary trust in the status of an 'individual'.
4. Accordingly it has been decided by the Board that:
(i) it will not be mandatory for agents of non-residents, within the meaning of section 160(1) (i) of the Income -tax Act, if his or its total income exceeds ten lakh rupees, to electronically furnish the return of income of non-residents for assessment year 2012-13;
(ii) it will not be mandatory for 'private discretionary trusts', if its total income exceeds ten lakh rupees, to electronically furnish the return of income for assessment year 2012-13.
PRESS RELEASE, DATED 31-7-2012
Rule 12 of the Income-tax Rules, 1962 mandates that an individual or Hindu undivided family, if his or its total income or the total income in respect of which he is or it is assessable under the Act, during the previous year, exceeds ten lakh rupees, shall furnish the return electronically for the assessment year 2012-13 and subsequent assessment years.
2. It has been brought to the notice of the Board that the agents of non-residents, within the meaning of section 160(1) (i) of the Income -tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because there may be more than one agent of the non-resident in India for different transactions or a person in India may be an agent of more than one non-resident. Such situations are not covered by the existing e-filing software which functions on the principle of one assessee-one PAN-one return.
3. It has also been brought to the notice of the Board that 'private discretionary trusts' having total income exceeding ten lakh rupees are facing problems in filing their return of income electronically in cases where they are filing their return in the status of an individual. This is because status of a private discretionary trust has been held in law as that of an 'individual'. The existing e-filing software does not accept the return of a private discretionary trust in the status of an 'individual'.
4. Accordingly it has been decided by the Board that:
(i) it will not be mandatory for agents of non-residents, within the meaning of section 160(1) (i) of the Income -tax Act, if his or its total income exceeds ten lakh rupees, to electronically furnish the return of income of non-residents for assessment year 2012-13;
(ii) it will not be mandatory for 'private discretionary trusts', if its total income exceeds ten lakh rupees, to electronically furnish the return of income for assessment year 2012-13.
Monday, July 30, 2012
C A available to join in a Established CA firm
If any well established firm looking for a F.C.A. (with lumpsum monthly
payouts) then kindly contact the below for further details..
*CA.ANUJ AGRAWAL*
anujagarwalsin@gmail.com
payouts) then kindly contact the below for further details..
*CA.ANUJ AGRAWAL*
anujagarwalsin@gmail.com
23B in case of 1st auditor
The overall position of Submission of 23B is as follows.
1. Intimation regarding
appointment
The Board of Directors should intimate the
auditors in writing that they have been appointed .
2.Return of appointment by the
Auditor
Within 30 days of the receipt of intimation
regarding appointment, the auditor should file a return in eForm No. 23B with
the Registrar of Companies through mca portal
www.mca.gov.in.
3. Who can file?
The eform 23B shall be filed by statutory
auditor who is appointed at the AGM. The signatory must hold a valid digital
signature certificate.
4. Attachments
A copy of the intimation letter received from
the company should be attached.
5. How to attach documents?
Documents should be attached in PDF Format. A
physical copy can be converted into PDF through scanning. A soft copy can be
converted into PDF through converter.
6. Digital Signature
The eform should be digitally signed by the
statutory auditor. The signatory auditor must hold a valid digital signature
certificate.
7. Filing fee
No fee is payable till 4th Of August 2012. Thereafter normal fee and provisions of additional fee shall applicabable.
8.Special instruction
Section 224(1) requires intimation to Registrar from the auditor about
his appointment only at AGM. As with the filling up a casual vacancy & first
appointment of auditor does not take place at an AGM. As long as it was free , it was be in
accord with the spirit of the said section to intimate but now its not required as we have to follow it strictly.
CA AMRESH VASHISHT, FCA, LLB,DISA(ICAI)
Member,ICAI Committee For DIRECT TAXES 2011-12
Member,ICAI Committee For Capacity Building of CA Firms 2010-11
1. Intimation regarding
appointment
The Board of Directors should intimate the
auditors in writing that they have been appointed .
2.Return of appointment by the
Auditor
Within 30 days of the receipt of intimation
regarding appointment, the auditor should file a return in eForm No. 23B with
the Registrar of Companies through mca portal
www.mca.gov.in.
3. Who can file?
The eform 23B shall be filed by statutory
auditor who is appointed at the AGM. The signatory must hold a valid digital
signature certificate.
4. Attachments
A copy of the intimation letter received from
the company should be attached.
5. How to attach documents?
Documents should be attached in PDF Format. A
physical copy can be converted into PDF through scanning. A soft copy can be
converted into PDF through converter.
6. Digital Signature
The eform should be digitally signed by the
statutory auditor. The signatory auditor must hold a valid digital signature
certificate.
7. Filing fee
No fee is payable till 4th Of August 2012. Thereafter normal fee and provisions of additional fee shall applicabable.
8.Special instruction
Section 224(1) requires intimation to Registrar from the auditor about
his appointment only at AGM. As with the filling up a casual vacancy & first
appointment of auditor does not take place at an AGM. As long as it was free , it was be in
accord with the spirit of the said section to intimate but now its not required as we have to follow it strictly.
CA AMRESH VASHISHT, FCA, LLB,DISA(ICAI)
Member,ICAI Committee For DIRECT TAXES 2011-12
Member,ICAI Committee For Capacity Building of CA Firms 2010-11
Points to remember before purchasing a Re-Sale property
Who does not wish to live in a house of their own? Buying a new flat
will take a long time, so some of us may wish to settle for buying a
resale property. However buying a resale property could involve many
legal and other procedural requirements. It is prudent to first
understand the various procedures and safety measures for buying resale
property to avoid hassles in future.
Buying Resale Property –A Guide
Consult Experts:
It may be ideal to engage a good real estate agent to locate a resale
property. He would be in a position to locate sellers as well as guide
you regarding the price of such properties in different localities. They
would also be in a position to tell you about the seller of the
property. Most real estate agents charge a fee and also help with
registration, payment of stamp duty and other paper work involved in the
purchase of resale property. In addition, taking the help of a good
lawyer would also help to make sure that things are clear legally also.
Title of the property:
It will help engaging experts like real estate agents and lawyers to
help you, but it is always better to be well-informed yourself when
entering into deals for buying resale property. The first step in this
regard would be to establish the title of the seller; whether he is the
real owner of the property or has been given the power of attorney to
transact the deal. All the documents with regard to the property need to
be clear. In addition you need to make sure that all the original
documents with regard to the property that were given by the builder or
original developer are in order.
Documents:
Buying resale property seems great, but it could become a big problem if
the documents regarding the original purchase and subsequent transfer of
title are not properly stamped. Firstly it could pose great problems
especially if you want to apply for a loan for purchase of the resale
property. Subsequently it could prove to be unacceptable in case you
wish to transact further on the property.
Existing Loan:
It is also necessary to make sure that the property documents are not
lying mortgaged in the bank's custody against a loan taken by the
seller. The bank will consider a loan only once the loan taken by the
seller is repaid and the documents released.
Loan Eligibility:
Buying a resale property would definitely provide you with a bigger
space in case of older properties. However it is best to note that some
banks may not lend money on buildings older than 10 years. This may be
due to the reason that they may not want to take the risk of the price
of the property going down. Banks also make sure to ensure that the
bank's outstanding loan should always be lower than the value of the
property in the market.
Property Valuation:
Next it is imperative to note that the loan amount is highly dependent
on the cost of the property. Technical experts would evaluate the
property. However it would be useful to yourself avail the services of a
property valuer at a small fee before approaching the banks. The
bank's property valuer may valuate the property at a much lower
rate. They would also like to safeguard their interests against the fall
in the price of the property in future.
More Down Payment:
Most banks wish to make sure that you be responsible for the maintenance
and good upkeep of the resale property. So banks would expect you as the
purchaser of the resale property to pay a certain percentage of the
price as down payment. You may have to pay about 20% of the price as
down payment; property of 50 lakhs requires 10 lakh as down payment.
Age of the property:
This down payment could be more in case of older properties. In
addition, banks usually lend only on properties that are unto 50 years
old. The tenure of the loan also decreases with the age of the property.
Flat Society:
The bank may grant the loan and you may make the down payment, but there
could be another problem. It arises out of the need for some Flat
societies that require the payment of a heavy price for change of
ownership. It is best to consider this cost also when coming to a
conclusion while purchasing resale property in cooperative and other
societies.
Conclusion:
Buying resale property would give you a chance to settle in your own
house fast and save you of high rents paid and the need to frequently
shift your place of living. Taking a loan from the bank could give you
tax deductions on the interest paid soon. You would not have to wait
till the possession as in the case of new flats. It is always prudent to
be well informed about the various details of the resale property.
will take a long time, so some of us may wish to settle for buying a
resale property. However buying a resale property could involve many
legal and other procedural requirements. It is prudent to first
understand the various procedures and safety measures for buying resale
property to avoid hassles in future.
Buying Resale Property –A Guide
Consult Experts:
It may be ideal to engage a good real estate agent to locate a resale
property. He would be in a position to locate sellers as well as guide
you regarding the price of such properties in different localities. They
would also be in a position to tell you about the seller of the
property. Most real estate agents charge a fee and also help with
registration, payment of stamp duty and other paper work involved in the
purchase of resale property. In addition, taking the help of a good
lawyer would also help to make sure that things are clear legally also.
Title of the property:
It will help engaging experts like real estate agents and lawyers to
help you, but it is always better to be well-informed yourself when
entering into deals for buying resale property. The first step in this
regard would be to establish the title of the seller; whether he is the
real owner of the property or has been given the power of attorney to
transact the deal. All the documents with regard to the property need to
be clear. In addition you need to make sure that all the original
documents with regard to the property that were given by the builder or
original developer are in order.
Documents:
Buying resale property seems great, but it could become a big problem if
the documents regarding the original purchase and subsequent transfer of
title are not properly stamped. Firstly it could pose great problems
especially if you want to apply for a loan for purchase of the resale
property. Subsequently it could prove to be unacceptable in case you
wish to transact further on the property.
Existing Loan:
It is also necessary to make sure that the property documents are not
lying mortgaged in the bank's custody against a loan taken by the
seller. The bank will consider a loan only once the loan taken by the
seller is repaid and the documents released.
Loan Eligibility:
Buying a resale property would definitely provide you with a bigger
space in case of older properties. However it is best to note that some
banks may not lend money on buildings older than 10 years. This may be
due to the reason that they may not want to take the risk of the price
of the property going down. Banks also make sure to ensure that the
bank's outstanding loan should always be lower than the value of the
property in the market.
Property Valuation:
Next it is imperative to note that the loan amount is highly dependent
on the cost of the property. Technical experts would evaluate the
property. However it would be useful to yourself avail the services of a
property valuer at a small fee before approaching the banks. The
bank's property valuer may valuate the property at a much lower
rate. They would also like to safeguard their interests against the fall
in the price of the property in future.
More Down Payment:
Most banks wish to make sure that you be responsible for the maintenance
and good upkeep of the resale property. So banks would expect you as the
purchaser of the resale property to pay a certain percentage of the
price as down payment. You may have to pay about 20% of the price as
down payment; property of 50 lakhs requires 10 lakh as down payment.
Age of the property:
This down payment could be more in case of older properties. In
addition, banks usually lend only on properties that are unto 50 years
old. The tenure of the loan also decreases with the age of the property.
Flat Society:
The bank may grant the loan and you may make the down payment, but there
could be another problem. It arises out of the need for some Flat
societies that require the payment of a heavy price for change of
ownership. It is best to consider this cost also when coming to a
conclusion while purchasing resale property in cooperative and other
societies.
Conclusion:
Buying resale property would give you a chance to settle in your own
house fast and save you of high rents paid and the need to frequently
shift your place of living. Taking a loan from the bank could give you
tax deductions on the interest paid soon. You would not have to wait
till the possession as in the case of new flats. It is always prudent to
be well informed about the various details of the resale property.
Institute's views on MCA's General Circular No. 18/2012
Institute's views on Ministry of Corporate Affairs General Circular No.
18/2012 dated 26th July, 2012 ......
<http://www.icwai.org/icwainew/docs/MCA-General-Circular-18-26_7_2012.pdf>
Ministry of Corporate Affairs vide their General Circular No. 18/2012 dated
26th July, 2012 has said that all cost auditors and the concerned companies
will be allowed to file their Cost Audit Reports and Compliance Reports for
the year 2011-12 [including the overdue reports relating to any previous
year(s)] with the Central Government in the XBRL mode, without any penalty,
upto 31st December, 2012. For this purpose, it has further said that
a) Filing of Cost Audit Reports and Compliance Reports for the year 2011-12
[including the overdue reports relating to any previous year(s)] with the
Central Government in the XBRL mode is mandatory.
b) The applicable XBRL taxonomy, business rules, validation tools, etc. and
also the "Product Group" classification required for preparing the cost
audit reports and compliance reports as per the notified Cost Accounting
Records Rules, 2011 and Cost Audit Report Rules, 2011 are under preparation
and would soon be made available by the Ministry.
c) The actual date for enabling XBRL filing will be intimated separately.
In connection with the provisions contained in the relevant Rules read with
the aforesaid Circular, the following may be noted:
(i) Rule 5 of the Companies (Cost Audit Report) Rules, 2011 says that the
Cost Auditor shall forward his cost audit report to the Central Government
within 180 days from the close of the company's financial year to which the
report relates. Rule 7 prescribes that the Annexure to the cost audit report
shall be approved by the Board of Directors.
(ii) Similarly, Rule 6 of the Companies (Cost Accounting Records) Rules,
2011 says that every company shall submit compliance report to the Central
Government within 180 days from the close of the company's financial year to
which the report relates. Rule 7 prescribes that the Annexure to the
compliance report shall be approved by the Board of Directors.
(iii) The above time limit of 180 days has been prescribed for submission of
the cost audit report by the cost auditor and for submission of the filing
such reports for the financial year 2011-12 [including the overdue reports
relating to any previous year(s)], MCA vide their General Circular No.
18/2012 dated 26th July, 2012 has extended this period of 180 days to 31st
December 2012.
(iv) MCA is yet to notify the applicable XBRL taxonomy, business rules,
validation tools, etc. and also the "Product Group" classification required
for preparing the cost audit reports and compliance reports.
(v) In view of above, audit of cost records, approval by the Board, and
filing of cost audit report & compliance report with the Central Government
should be completed by 31st December 2012.
18/2012 dated 26th July, 2012 ......
<http://www.icwai.org/icwainew/docs/MCA-General-Circular-18-26_7_2012.pdf>
Ministry of Corporate Affairs vide their General Circular No. 18/2012 dated
26th July, 2012 has said that all cost auditors and the concerned companies
will be allowed to file their Cost Audit Reports and Compliance Reports for
the year 2011-12 [including the overdue reports relating to any previous
year(s)] with the Central Government in the XBRL mode, without any penalty,
upto 31st December, 2012. For this purpose, it has further said that
a) Filing of Cost Audit Reports and Compliance Reports for the year 2011-12
[including the overdue reports relating to any previous year(s)] with the
Central Government in the XBRL mode is mandatory.
b) The applicable XBRL taxonomy, business rules, validation tools, etc. and
also the "Product Group" classification required for preparing the cost
audit reports and compliance reports as per the notified Cost Accounting
Records Rules, 2011 and Cost Audit Report Rules, 2011 are under preparation
and would soon be made available by the Ministry.
c) The actual date for enabling XBRL filing will be intimated separately.
In connection with the provisions contained in the relevant Rules read with
the aforesaid Circular, the following may be noted:
(i) Rule 5 of the Companies (Cost Audit Report) Rules, 2011 says that the
Cost Auditor shall forward his cost audit report to the Central Government
within 180 days from the close of the company's financial year to which the
report relates. Rule 7 prescribes that the Annexure to the cost audit report
shall be approved by the Board of Directors.
(ii) Similarly, Rule 6 of the Companies (Cost Accounting Records) Rules,
2011 says that every company shall submit compliance report to the Central
Government within 180 days from the close of the company's financial year to
which the report relates. Rule 7 prescribes that the Annexure to the
compliance report shall be approved by the Board of Directors.
(iii) The above time limit of 180 days has been prescribed for submission of
the cost audit report by the cost auditor and for submission of the filing
such reports for the financial year 2011-12 [including the overdue reports
relating to any previous year(s)], MCA vide their General Circular No.
18/2012 dated 26th July, 2012 has extended this period of 180 days to 31st
December 2012.
(iv) MCA is yet to notify the applicable XBRL taxonomy, business rules,
validation tools, etc. and also the "Product Group" classification required
for preparing the cost audit reports and compliance reports.
(v) In view of above, audit of cost records, approval by the Board, and
filing of cost audit report & compliance report with the Central Government
should be completed by 31st December 2012.
Required urgently fresh CA and one articled assistant
We require urgently Fresh Chartered Accountant and One Articled
Assistantfor research on Accounting Standards, IFRS and IPSAS. The job
requires
working knowledge of spreadsheets software like MS Excel and Accounting
Standards. Interested candidates are requested to contact the undersigned
at the earliest. This job will give the candidate hands on experience on
application of Accounting Standards, IFRS and IPSAS.
CA Manish C. Iyer
+919825286903
*Manish Iyer & Co.
*
*Chartered Accountants
B-904, Fairdeal House,
Near Swastik Cross Roads,
Navrangpura,
Ahmedabad -380009.
Ph. +91-79-30475115
http://www.facebook.com/#!/cmanishiyer
http://www.linkedin.com/in/cmanishiyer
Follow my tweets at http://twitter.com/cmanishiyer
Assistantfor research on Accounting Standards, IFRS and IPSAS. The job
requires
working knowledge of spreadsheets software like MS Excel and Accounting
Standards. Interested candidates are requested to contact the undersigned
at the earliest. This job will give the candidate hands on experience on
application of Accounting Standards, IFRS and IPSAS.
CA Manish C. Iyer
+919825286903
*Manish Iyer & Co.
*
*Chartered Accountants
B-904, Fairdeal House,
Near Swastik Cross Roads,
Navrangpura,
Ahmedabad -380009.
Ph. +91-79-30475115
http://www.facebook.com/#!/cmanishiyer
http://www.linkedin.com/in/cmanishiyer
Follow my tweets at http://twitter.com/cmanishiyer
Seminar on Concurrent Audit of Banks on 4th August 2012
Dear All
branch is organizing a Seminar on Concurrent of Banks as
per the following details:-
Seminar on Concurrent Audit of Banks
Day & Date : Saturday,
4th August, 2012
Registration : 9.30
AM to 9.45 AM
Venue : Hotel
President, Police Lines, Jalandhar
Topic : Concurrent Audit of Banks
Guest Speaker : CA.
Ajay Kumar Jain
Time : 10 AM
to 2 PM
Fees : For
Members Rs.
400/-
For Non Members Rs. 400/-
For Articled Clerks Rs. NIL/-
CPE Credit : 4 Hours
Forthcoming Programs
1.
Seminar on Service at Hotel President on 17.08.2012, Time 9.30 AM
onwards, Speakers CA. Ashok Batra.
2.
DISA for members from 4th August 2012 on Saturday
Sunday basis.
CA. Ashwani Jindal
Secretary
CA. R D Sharma
CA. Ashwani Gupta
CA. Ashwani Jindal
CA. Ashwani Randeva
CA. Salil Gupta
CA. Sumit Vatta
Chairman
Vice Chairman
Secretary
Treasurer
Exec. Member
Exec. Member
--
CA. Ashwani Jindal,
Chartered Accountant,
498-LA, Model Town,
Jalandhar City-144003
Ph. 0181-4614448
M-9876063350
Email:-cajindal@gmail.com, cajindal@yahoo.co.in
branch is organizing a Seminar on Concurrent of Banks as
per the following details:-
Seminar on Concurrent Audit of Banks
Day & Date : Saturday,
4th August, 2012
Registration : 9.30
AM to 9.45 AM
Venue : Hotel
President, Police Lines, Jalandhar
Topic : Concurrent Audit of Banks
Guest Speaker : CA.
Ajay Kumar Jain
Time : 10 AM
to 2 PM
Fees : For
Members Rs.
400/-
For Non Members Rs. 400/-
For Articled Clerks Rs. NIL/-
CPE Credit : 4 Hours
Forthcoming Programs
1.
Seminar on Service at Hotel President on 17.08.2012, Time 9.30 AM
onwards, Speakers CA. Ashok Batra.
2.
DISA for members from 4th August 2012 on Saturday
Sunday basis.
CA. Ashwani Jindal
Secretary
CA. R D Sharma
CA. Ashwani Gupta
CA. Ashwani Jindal
CA. Ashwani Randeva
CA. Salil Gupta
CA. Sumit Vatta
Chairman
Vice Chairman
Secretary
Treasurer
Exec. Member
Exec. Member
--
CA. Ashwani Jindal,
Chartered Accountant,
498-LA, Model Town,
Jalandhar City-144003
Ph. 0181-4614448
M-9876063350
Email:-cajindal@gmail.com, cajindal@yahoo.co.in
Mere existence of an arbitration clause would not bar exercise of jurisdict
CL : Mere existence of an arbitration clause would not bar exercise of jurisdiction by Court under section 433(e) for winding up of a company which is deemed to be unable to pay its debts - [2012] 23 taxmann.com 371 (Andhra Pradesh)
sub-contractor cannot be asked to substantiate correctness of certificate
ST : A sub-contractor cannot be asked to substantiate correctness of certificate issued by original contractors; Department should verify certificates itself especially when original contractors were registered assessees - [2012] 23 taxmann.com 338 (Ahmedabad - CESTAT)
Expenditure on studies abroad of bona fide employee of assessee-company can
IT : Expenditure on studies abroad of bona fide employee of assessee-company can't be disallowed merely because he was son of ex-director
Facts
• Respondent-assessee was engaged in the business of printing and distribution of newspapers and magazines. The assessee's claim in respect of the expenses made on foreign travelling and education of Shri Siddharth Chhajlani (son of Ex-director) was disallowed and added to the income of the assessee by the Assessing Officer, and the same was affirmed in appeal by the Commissioner of Income Tax (Appeals). However, ITAT allowed assessee's appeal and allowed deduction of the said expenditure. Hence, this present appeal by revenue to HC.
Held
(A) The Tribunal allowed the claim of the assessee based on the following findings:
• Shri Siddharth Chhajlani was an employee of the assessee working as Assistant Manager (Printing).
• He was sent by the assessee to have advanced knowledge of latest printing technology which was directly related with the business of the assessee-company.
• Shri Siddharth Chhajlani was a regular employee of the assessee-company since financial year 2003-04 as evidenced by the salary certificate along with the deduction and payment to Employee's Provident Fund.
• Shri Siddharth Chhajlani was sent for higher studies in printing technology, which is the main field of working of the assessee-company and a bond was got executed to ensure that he will work for at least 5 years after return to India. A guarantee in this regard was also taken from his parents.
• Shri Siddharth Chhajlani was in employment with the company not only before going but even during the period he was undertaking studies in printing technology at London and also on his return from London.
• Completion of the advanced diploma in Information Technology (Printing) from College of Applied Sciences, London was evidenced by relevant certificated.
• The expenditure in question was incurred wholly and exclusively for the purpose of business of the assessee-company.
(B)The finding of the Tribunal that the said expenditure was incurred by the assessee wholly and exclusively for the purpose of business of the assessee-company is duly supported by the material on record. The Tribunal has assigned due reasons while arriving at the said finding. Learned counsel for Revenue could not point out any error in the finding so arrived at by the Tribunal.
(C)Merely because Shri Siddharth Chhajlani was son of an ex-director of the company, the same would not furnish a ground for disallowing the said expenditure, when on facts the other conditions are satisfied in this regard.
• In the result, Tribunal's order calls for no interference. - [2012] 23 taxmann.com 422 (Madhya Pradesh)
Facts
• Respondent-assessee was engaged in the business of printing and distribution of newspapers and magazines. The assessee's claim in respect of the expenses made on foreign travelling and education of Shri Siddharth Chhajlani (son of Ex-director) was disallowed and added to the income of the assessee by the Assessing Officer, and the same was affirmed in appeal by the Commissioner of Income Tax (Appeals). However, ITAT allowed assessee's appeal and allowed deduction of the said expenditure. Hence, this present appeal by revenue to HC.
Held
(A) The Tribunal allowed the claim of the assessee based on the following findings:
• Shri Siddharth Chhajlani was an employee of the assessee working as Assistant Manager (Printing).
• He was sent by the assessee to have advanced knowledge of latest printing technology which was directly related with the business of the assessee-company.
• Shri Siddharth Chhajlani was a regular employee of the assessee-company since financial year 2003-04 as evidenced by the salary certificate along with the deduction and payment to Employee's Provident Fund.
• Shri Siddharth Chhajlani was sent for higher studies in printing technology, which is the main field of working of the assessee-company and a bond was got executed to ensure that he will work for at least 5 years after return to India. A guarantee in this regard was also taken from his parents.
• Shri Siddharth Chhajlani was in employment with the company not only before going but even during the period he was undertaking studies in printing technology at London and also on his return from London.
• Completion of the advanced diploma in Information Technology (Printing) from College of Applied Sciences, London was evidenced by relevant certificated.
• The expenditure in question was incurred wholly and exclusively for the purpose of business of the assessee-company.
(B)The finding of the Tribunal that the said expenditure was incurred by the assessee wholly and exclusively for the purpose of business of the assessee-company is duly supported by the material on record. The Tribunal has assigned due reasons while arriving at the said finding. Learned counsel for Revenue could not point out any error in the finding so arrived at by the Tribunal.
(C)Merely because Shri Siddharth Chhajlani was son of an ex-director of the company, the same would not furnish a ground for disallowing the said expenditure, when on facts the other conditions are satisfied in this regard.
• In the result, Tribunal's order calls for no interference. - [2012] 23 taxmann.com 422 (Madhya Pradesh)
News of allotment of Concurrent Audit of Punjab and Sindh Bank
Punjab & Sindh bank concurrent audit has been alloted. Today in morning at bank, the officials told to sources that we have posted letter through by spped post and 95% CA has been sent acceptance letter.
FMCA's General Circular No. 18/2012 dated 26th July, 2012 has said that all cost auditors......
MCA's General Circular No. 18/2012 dated 26th July, 2012 Issued on 27th
July 2012
Ministry of Corporate Affairs vide their General Circular No. 18/2012 dated
26th July, 2012 has said that all cost auditors and the concerned companies
will be allowed to file their Cost Audit Reports and Compliance Reports for
the year 2011-12 [including the overdue reports relating to any previous
year(s)] with the Central Government in the XBRL mode, without any penalty,
upto 31st December, 2012. For this purpose, it has further said that
a) Filing of Cost Audit Reports and Compliance Reports for the year 2011-12
[including the overdue reports relating to any previous year(s)] with the
Central Government in the XBRL mode is mandatory.
b) The applicable XBRL taxonomy, business rules, validation tools, etc. and
also the "Product Group" classification required for preparing the cost
audit reports and compliance reports as per the notified Cost Accounting
Records Rules, 2011 and Cost Audit Report Rules, 2011 are under preparation
and would soon be made available by the Ministry.
c) The actual date for enabling XBRL filing will be intimated separately.
In connection with the provisions contained in the relevant Rules read with
the aforesaid Circular, the following may be noted:
(i) Rule 5 of the Companies (Cost Audit Report) Rules, 2011 says that the
Cost Auditor shall forward his cost audit report to the Central Government
within 180 days from the close of the company's financial year to which the
report relates. Rule 7 prescribes that the Annexure to the cost audit report
shall be approved by the Board of Directors.
(ii) Similarly, Rule 6 of the Companies (Cost Accounting Records) Rules,
2011 says that every company shall submit compliance report to the Central
Government within 180 days from the close of the company's financial year to
which the report relates. Rule 7 prescribes that the Annexure to the
compliance report shall be approved by the Board of Directors.
(iii) The above time limit of 180 days has been prescribed for submission of
the cost audit report by the cost auditor and for submission of the
compliance report by the company, with the Central Government. For filing
such reports for the financial year 2011-12 [including the overdue reports
relating to any previous year(s)], MCA vide their General
Circular No. 18/2012 dated 26th July, 2012 has extended this period of 180
days to 31st December 2012.
(iv) MCA is yet to notify the applicable XBRL taxonomy, business rules,
validation tools, etc. and also the "Product Group" classification required
for preparing the cost audit reports and compliance reports.
(v) In view of above, audit of cost records, approval by the Board, and
filing of cost audit report & compliance report with the Central Government
should be completed by 31st December 2012.
July 2012
Ministry of Corporate Affairs vide their General Circular No. 18/2012 dated
26th July, 2012 has said that all cost auditors and the concerned companies
will be allowed to file their Cost Audit Reports and Compliance Reports for
the year 2011-12 [including the overdue reports relating to any previous
year(s)] with the Central Government in the XBRL mode, without any penalty,
upto 31st December, 2012. For this purpose, it has further said that
a) Filing of Cost Audit Reports and Compliance Reports for the year 2011-12
[including the overdue reports relating to any previous year(s)] with the
Central Government in the XBRL mode is mandatory.
b) The applicable XBRL taxonomy, business rules, validation tools, etc. and
also the "Product Group" classification required for preparing the cost
audit reports and compliance reports as per the notified Cost Accounting
Records Rules, 2011 and Cost Audit Report Rules, 2011 are under preparation
and would soon be made available by the Ministry.
c) The actual date for enabling XBRL filing will be intimated separately.
In connection with the provisions contained in the relevant Rules read with
the aforesaid Circular, the following may be noted:
(i) Rule 5 of the Companies (Cost Audit Report) Rules, 2011 says that the
Cost Auditor shall forward his cost audit report to the Central Government
within 180 days from the close of the company's financial year to which the
report relates. Rule 7 prescribes that the Annexure to the cost audit report
shall be approved by the Board of Directors.
(ii) Similarly, Rule 6 of the Companies (Cost Accounting Records) Rules,
2011 says that every company shall submit compliance report to the Central
Government within 180 days from the close of the company's financial year to
which the report relates. Rule 7 prescribes that the Annexure to the
compliance report shall be approved by the Board of Directors.
(iii) The above time limit of 180 days has been prescribed for submission of
the cost audit report by the cost auditor and for submission of the
compliance report by the company, with the Central Government. For filing
such reports for the financial year 2011-12 [including the overdue reports
relating to any previous year(s)], MCA vide their General
Circular No. 18/2012 dated 26th July, 2012 has extended this period of 180
days to 31st December 2012.
(iv) MCA is yet to notify the applicable XBRL taxonomy, business rules,
validation tools, etc. and also the "Product Group" classification required
for preparing the cost audit reports and compliance reports.
(v) In view of above, audit of cost records, approval by the Board, and
filing of cost audit report & compliance report with the Central Government
should be completed by 31st December 2012.
PRIME MINISTER SETS UP COMMITTEE TO REVIEW TAXATION OF DEVELOPMENT CENTRES AND T
PRIME MINISTER SETS UP COMMITTEE TO REVIEW TAXATION OF DEVELOPMENT CENTRES AND THE IT SECTOR - SAFE HARBOUR PROVISIONS TO BE FINALISED SOON
PRESS RELEASE, DATED 30-7-2012
The Prime Minister has constituted a Committee to Review Taxation of Development Centres and the IT Sector. The Committee will engage in consultations with stakeholders and related government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector. It will also suggest the approach to taxation of Development Centres.
2. The Prime Minister had earlier set up an Expert Committee on GAAR under the Chairmanship of Dr. Partho Shome to engage in a widespread consultation process and finalise the GAAR Guidelines. The response has been overwhelmingly positive.
3. While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT Sector such as the approach to taxation of Development Centres, tax treatment of "onsite services" of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010.
4. Many MNCs carry out activities such as product development, analytical work, software development, etc. through captive entities in India. They exist in a wide range of fields including IT software, IT hardware, Pharmaceutical R&D, other automobile R&D and scientific R&D. These are popularly called Development Centres. Over 750 MNCs have such centres at over 1100 locations in India. The reason for this large concentration of Development Centres in India is the worldwide recognition of India as a place for cost competitive, high quality knowledge related work. Such Development Centres provide high quality jobs to our scientists, and indeed make India a global hub for such Knowledge Centres. However, India does not have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their taxation.
5. As far as Safe Harbor provisions are concerned, these were announced in Finance Bill 2010 but have yet to be operationalised with a wide application. Safe Harbour provisions have the advantage of being a good risk mitigation measure, provide certainty to the taxpayer.
6. The resolution of the above tax issues requires a comprehensive approach in which other government departments are consulted and industry bodies are taken on board. The overall goal is to have a fair tax system in line with best international practice which will promote India's software industry and promote India as a destination for investment and for establishment of Development Centres. Therefore, the Prime Minister has constituted a Committee consisting of experts from the Income Tax Department, both serving and retired, who will examine the issues in detail and submit proposals in a short time. An arm's length exercise of this nature will allay a lot of concerns in addition to the immediate resolution of issues that is necessary.
7. For this purpose, a Committee on Taxation of Development Centres and the IT sector has been constituted consisting of:
1. Shri N. Rangachary, former Chairman CBDT & IRDA
- Chairman
2. Ms. Anita Kapur, Director General (IT)
- Member
3. Ms. Rashmi Sahani Saxena, DIT (TP)
- Member
4. Any other officer from the Income Tax Department to be co-opted by the Chairman
8. The Terms of Reference of the Committee will be to:
(i) Engage in consultations with stakeholders and related government departments to finalise the approach to Taxation of Development Centres and suggest any circulars that need to be issued.
(ii) Engage in sector-wide consultations and finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector. The Committee will also suggest any necessary circulars that may need to be issued.
(iii) Examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
9. The Committee will work to the following time schedule:
(i) Finalise the approach to taxation of Development Centres and suggest any necessary clarifications by 31 August 2012.
(ii) Suggest any necessary clarifications that may be needed to remove ambiguity and improve clarity on taxation of the IT Sector by 31 August 2012.
(iii) Finalise Safe Harbour Rules individually sector-by-sector in a staggered manner and submitting draft Safe Harbour provisions for three sectors/sub-activities each month beginning with the first set of suggestions by 30 September 2012. All Safe Harbour provisions can be finalised by 31 December 2012.
10. The Department of Revenue will provide all necessary support to the Committee to facilitate its work including office assistance and assistance to facilitate consultations.
PRESS RELEASE, DATED 30-7-2012
The Prime Minister has constituted a Committee to Review Taxation of Development Centres and the IT Sector. The Committee will engage in consultations with stakeholders and related government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector. It will also suggest the approach to taxation of Development Centres.
2. The Prime Minister had earlier set up an Expert Committee on GAAR under the Chairmanship of Dr. Partho Shome to engage in a widespread consultation process and finalise the GAAR Guidelines. The response has been overwhelmingly positive.
3. While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT Sector such as the approach to taxation of Development Centres, tax treatment of "onsite services" of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010.
4. Many MNCs carry out activities such as product development, analytical work, software development, etc. through captive entities in India. They exist in a wide range of fields including IT software, IT hardware, Pharmaceutical R&D, other automobile R&D and scientific R&D. These are popularly called Development Centres. Over 750 MNCs have such centres at over 1100 locations in India. The reason for this large concentration of Development Centres in India is the worldwide recognition of India as a place for cost competitive, high quality knowledge related work. Such Development Centres provide high quality jobs to our scientists, and indeed make India a global hub for such Knowledge Centres. However, India does not have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their taxation.
5. As far as Safe Harbor provisions are concerned, these were announced in Finance Bill 2010 but have yet to be operationalised with a wide application. Safe Harbour provisions have the advantage of being a good risk mitigation measure, provide certainty to the taxpayer.
6. The resolution of the above tax issues requires a comprehensive approach in which other government departments are consulted and industry bodies are taken on board. The overall goal is to have a fair tax system in line with best international practice which will promote India's software industry and promote India as a destination for investment and for establishment of Development Centres. Therefore, the Prime Minister has constituted a Committee consisting of experts from the Income Tax Department, both serving and retired, who will examine the issues in detail and submit proposals in a short time. An arm's length exercise of this nature will allay a lot of concerns in addition to the immediate resolution of issues that is necessary.
7. For this purpose, a Committee on Taxation of Development Centres and the IT sector has been constituted consisting of:
1. Shri N. Rangachary, former Chairman CBDT & IRDA
- Chairman
2. Ms. Anita Kapur, Director General (IT)
- Member
3. Ms. Rashmi Sahani Saxena, DIT (TP)
- Member
4. Any other officer from the Income Tax Department to be co-opted by the Chairman
8. The Terms of Reference of the Committee will be to:
(i) Engage in consultations with stakeholders and related government departments to finalise the approach to Taxation of Development Centres and suggest any circulars that need to be issued.
(ii) Engage in sector-wide consultations and finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector. The Committee will also suggest any necessary circulars that may need to be issued.
(iii) Examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
9. The Committee will work to the following time schedule:
(i) Finalise the approach to taxation of Development Centres and suggest any necessary clarifications by 31 August 2012.
(ii) Suggest any necessary clarifications that may be needed to remove ambiguity and improve clarity on taxation of the IT Sector by 31 August 2012.
(iii) Finalise Safe Harbour Rules individually sector-by-sector in a staggered manner and submitting draft Safe Harbour provisions for three sectors/sub-activities each month beginning with the first set of suggestions by 30 September 2012. All Safe Harbour provisions can be finalised by 31 December 2012.
10. The Department of Revenue will provide all necessary support to the Committee to facilitate its work including office assistance and assistance to facilitate consultations.
Raid at multiplexes reveals 25 crores tax evasion
Indore: Four Multiplexes of city accepted 25 crores entertainment tax
evasion after the raid of Income tax department. Suprisingly these money
was raised from customers illegally. According to V S Bhadoriya Deputy
Commissioner of Anti evasion bureau of Commercial tax department,
department raided Inox multiplex on Wednesday whereas Adlabs and
Velocity on Friday.
Government had given discount in entertainment tax for five years to
these multiplexes instead they were charging tax to customers and were
not depositing to department. According to rules government had given
discount to new multiplexes for five year in entertainment tax to
promote them.
They have to apply for a certificate for discount, but the tax raised
between the time of application and certificate being issued they have
to deposit the raised tax to IT department. These multiplexes were
charging customers even after getting certificate. Department is also
checking the records of other multiplexes in city.
evasion after the raid of Income tax department. Suprisingly these money
was raised from customers illegally. According to V S Bhadoriya Deputy
Commissioner of Anti evasion bureau of Commercial tax department,
department raided Inox multiplex on Wednesday whereas Adlabs and
Velocity on Friday.
Government had given discount in entertainment tax for five years to
these multiplexes instead they were charging tax to customers and were
not depositing to department. According to rules government had given
discount to new multiplexes for five year in entertainment tax to
promote them.
They have to apply for a certificate for discount, but the tax raised
between the time of application and certificate being issued they have
to deposit the raised tax to IT department. These multiplexes were
charging customers even after getting certificate. Department is also
checking the records of other multiplexes in city.
Circular No. 18/2012 dated 26th July, 2012 has said that all cost auditors.
MCA’s
General Circular No. 18/2012 dated 26th July, 2012 Issued on 27th July 2012
Ministry of Corporate Affairs vide their General
Circular No. 18/2012 dated 26th July, 2012 has said that all cost auditors and the
concerned companies will be allowed to file their Cost Audit Reports and
Compliance Reports for the year 2011-12 [including the overdue reports relating
to any previous year(s)] with the Central Government in the XBRL mode, without
any penalty, upto 31st December, 2012. For this purpose, it has further said
that
Circular No. 18/2012 dated 26th July, 2012 has said that all cost auditors.
MCA’s
General Circular No. 18/2012 dated 26th July, 2012 Issued on 27th July 2012
Ministry of Corporate Affairs vide their General
Circular No. 18/2012 dated 26th July, 2012 has said that all cost auditors and the
concerned companies will be allowed to file their Cost Audit Reports and
Compliance Reports for the year 2011-12 [including the overdue reports relating
to any previous year(s)] with the Central Government in the XBRL mode, without
any penalty, upto 31st December, 2012. For this purpose, it has further said
that
a) Filing of Cost Audit Reports and Compliance Reports
for the year 2011-12 [including the overdue reports relating to any previous
year(s)] with the Central Government in the XBRL mode is mandatory.
b) The applicable XBRL taxonomy, business rules,
validation tools, etc. and also the “Product Group” classification
required for preparing the cost audit reports and compliance reports as per the
notified Cost Accounting Records Rules, 2011 and Cost Audit Report Rules, 2011
are under preparation and would soon be made available by the Ministry.
c) The actual date for enabling XBRL filing will be
intimated separately.
In connection with the provisions contained in the
relevant Rules read with the aforesaid Circular, the following may be noted:
(i) Rule 5 of the Companies (Cost Audit Report) Rules,
2011 says that the Cost Auditor shall forward his cost audit report to the
Central Government within 180 days from the close of the company’s
financial year to which the report relates. Rule 7 prescribes that the Annexure
to the cost audit report shall be approved by the Board of Directors.
Sunday, July 29, 2012
Online Application for Verification of Answerbooks
| Candidates of CA examinations CPT, PCE, IPCE, Final and post qualification courses can apply for verification of their answer books under Regulation 39(4) of the Chartered Accountants Regulations, 1988. | ||||||||||
| The application has to be made within a month from the date of declaration of result of the relevant examination. | ||||||||||
| The verification fee is Rs 100/- per paper subject to a maximum of Rs 400/- for all the papers of a group or both the groups. For CPT, the verification fees is Rs 200/- | ||||||||||
| Presently, submission of on-line verification application, through this portal is, permitted only in respect of PCE, IPCE and Final examinations. | ||||||||||
| Candidates of CPT and post qualification courses can send in their handwritten verification applications along with the demand drafts for the applicable verification fees, so as to reach us, on or before the due dates mentioned hereinbelow, at the address given below: | ||||||||||
1. The window for online application for verification of May 2012 Exams will be available as under:
2. Candidate has to write an application in his/her own handwriting preferably in black ink, Sign it, scan it as a jpg file of size 8-100KB (100 DPI) and upload the same. If the candidate appeared for the Exam in Hindi then the application must be in Hindi and If the candidate appeared for the Exam in English then the application must be in English. Do write the Roll Number, Name, Registration Number, Month/Year of Exam and DO NOT forget to sign before scanning. The list of papers to be verified will be taken from your selection made thru the portal and not from what is written in the scanned image. 3. In case the uploaded scanned image is not conforming to above parameters, the online application for verification will not be considered for any action and NO refund of fees for the same will be considered. 4. The payment has to be made online thru Master/Visa Credit/Debit Card. Net banking is not accepted. 5. After the Successful payment you will get a screen like THIS. You may print the same & keep for your record. In case the money gets deducted from your account and you do not get a "Successful" transaction screen, the status of your application will not be considered successful and the same will not be processed by the office. The failed transactions will be credited back to your account within 45 days after the close of verification window. Click here to check your verification application status 6. The verification process takes 6-8 weeks and the outcome is informed to the candidate concerned and is also hosted on the site http://icaiexam.icai.org . please refer to http://220.227.161.86/23803FAQs_verification_marks.pdf for FAQs on verification of marks. Click here for FAQs on "Submission of Online Verification Request" 7. Please note that it is mandatory to upload scanned copy of your handwritten verification request on the portal, failing which you will not be permitted to submit an online verification request. In case you are unable to upload scanned copy of your handwritten request, or not able to login due to any reason, you may send your handwritten request along with the Demand Draft for the applicable fee, by speed post/registered post, to The Additional Secretary (Exams), The Institute of Chartered Accountants of India, ICAI Bhawan, Indraprastha Marg, New Delhi - 110 002 so as to reach us within the last date printed above. | ||||||||||
CPE ***20 ****** VADODARA
Announcement
Certificate Course OF ICAI on Arbitration at Vadodara
(On 3
rd
, 4
th
, 5
th
, 10
th
, 11
th
& 12
th
August 2012 - (Fridays, Saturdays & Sundays)
The objective of the Certificate Course on Arbitration is to familiarize the
members with the relevant
laws which impact the arbitration process and the practical procedural aspects
and to build the
competency level of the members of the ICAI to position them as
multidisciplinary consultants in
the global service market.
The Committee on Economic, Commercial Laws & WTO of ICAI is organising the next
batch of the
6 Days Certificate Course on Arbitration at Vadodara as per the following
schedule;
Days & Dates for the Course
Fridays, Saturdays & Sundays
On 3rd, 4th, 5th, 10th, 11th & 12th
August 2012
Time: 10.00 A.M to 6.00 P.M on
each day
Evalutation Test
The Evaluation Test will be held
on 12th
August 2012
Venue
Baroda Branch of Western India
Regional Council
ICAI Bhawan, Kalali-Tandalja Road,
Atladra,
Vadodara-390 012
Ph: 91(0265) 2681115 / 2680593.
Email: baroda@icai.org
Programme Chairman
CA. Jayant P. Gokhale
Chairman,
Committee on Economic,
Commercial Laws &WTO, ICAI
(M) 9004693027
Email: jayant@icai.org
Programme Director
CA. Mahesh P. Sarda
Vice-Chairman
Committee on Economic,
Commercial Laws & WTO
(M) 9833622770
Email: msarda@deloitte.com
Programme Co-ordinator
CA. Pradeep K. Agrawal
Chairman,
Baroda Branch of WIRC of ICAI
(M) 9327243479
Email:pradeepagrawalca@gmail.com
For Registration and Further Details, please contact:
Secretariat,
Committee on Economic, Commercial Laws & WTO,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Indraprastha Marg,
New Delhi-110002
Ph: 011 30110499/443, Mb: 09312085029
E-mail: cecl@icai.in, ctlwto@icai.org;
Website: http://www.icai.org
The Chairman
Baroda Branch of Western India Regional Council
ICAI Bhawan, Kalali-Tandalja Road, Atladra,
Vadodara-390 012
Ph: 91(0265) 2681115 / 2680593.
Email: baroda@icai.org
Registration Fee - Rs. 15,000/-(includes breakfast, tea, lunch and Study
Material)
The interested members may register online
(http://www.icai.org/ccm.html?progid=281) or/and send the
Registration Form duly filled in along with the requisite fee by way of online
acknowledgement receipt
Cheque/Demand Draft/ drawn in favour of "The Secretary, The Institute of
Chartered Accountants of India"
payable at New Delhi. The same can be deposited either at Secretariat, Committee
on Economic, Commercial
Laws & WTO, New Delhi or at Baroda Branch of WIRC of ICAI as per the convenience
of the Members.
*The holding of batch is subject to minimum number of 30 participants.
20 CPE
HoursTHE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
REGISTRATION FORM
CERTIFICATE COURSE ON ARBITRATION
1) Full Name in block letters (as per Institute records)
First Name ______________________________
Middle Name ______________________________
Surname ______________________________
2) Gender (put √ mark)
Male Female
3) Member Details:
a) Membership Number
b) Membership status (put √ mark) FCA ACA
c) Member status: - (Practice/Industry/others)
d) Any other Qualifications
4) Address for Correspondence
a) Address
Affix recent
Passport size
Photographb) City / Town
c) PIN Code
5) Phone No.
Mobile:
(With STD code)
6) E-mail address: -
7) Centre of the Course
8) Details of Course fee:
DD/Cheque Number and Date:
Amount in (Rs)
Certificate Course OF ICAI on Arbitration at Vadodara
(On 3
rd
, 4
th
, 5
th
, 10
th
, 11
th
& 12
th
August 2012 - (Fridays, Saturdays & Sundays)
The objective of the Certificate Course on Arbitration is to familiarize the
members with the relevant
laws which impact the arbitration process and the practical procedural aspects
and to build the
competency level of the members of the ICAI to position them as
multidisciplinary consultants in
the global service market.
The Committee on Economic, Commercial Laws & WTO of ICAI is organising the next
batch of the
6 Days Certificate Course on Arbitration at Vadodara as per the following
schedule;
Days & Dates for the Course
Fridays, Saturdays & Sundays
On 3rd, 4th, 5th, 10th, 11th & 12th
August 2012
Time: 10.00 A.M to 6.00 P.M on
each day
Evalutation Test
The Evaluation Test will be held
on 12th
August 2012
Venue
Baroda Branch of Western India
Regional Council
ICAI Bhawan, Kalali-Tandalja Road,
Atladra,
Vadodara-390 012
Ph: 91(0265) 2681115 / 2680593.
Email: baroda@icai.org
Programme Chairman
CA. Jayant P. Gokhale
Chairman,
Committee on Economic,
Commercial Laws &WTO, ICAI
(M) 9004693027
Email: jayant@icai.org
Programme Director
CA. Mahesh P. Sarda
Vice-Chairman
Committee on Economic,
Commercial Laws & WTO
(M) 9833622770
Email: msarda@deloitte.com
Programme Co-ordinator
CA. Pradeep K. Agrawal
Chairman,
Baroda Branch of WIRC of ICAI
(M) 9327243479
Email:pradeepagrawalca@gmail.com
For Registration and Further Details, please contact:
Secretariat,
Committee on Economic, Commercial Laws & WTO,
The Institute of Chartered Accountants of India,
ICAI Bhawan, Indraprastha Marg,
New Delhi-110002
Ph: 011 30110499/443, Mb: 09312085029
E-mail: cecl@icai.in, ctlwto@icai.org;
Website: http://www.icai.org
The Chairman
Baroda Branch of Western India Regional Council
ICAI Bhawan, Kalali-Tandalja Road, Atladra,
Vadodara-390 012
Ph: 91(0265) 2681115 / 2680593.
Email: baroda@icai.org
Registration Fee - Rs. 15,000/-(includes breakfast, tea, lunch and Study
Material)
The interested members may register online
(http://www.icai.org/ccm.html?progid=281) or/and send the
Registration Form duly filled in along with the requisite fee by way of online
acknowledgement receipt
Cheque/Demand Draft/ drawn in favour of "The Secretary, The Institute of
Chartered Accountants of India"
payable at New Delhi. The same can be deposited either at Secretariat, Committee
on Economic, Commercial
Laws & WTO, New Delhi or at Baroda Branch of WIRC of ICAI as per the convenience
of the Members.
*The holding of batch is subject to minimum number of 30 participants.
20 CPE
HoursTHE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
REGISTRATION FORM
CERTIFICATE COURSE ON ARBITRATION
1) Full Name in block letters (as per Institute records)
First Name ______________________________
Middle Name ______________________________
Surname ______________________________
2) Gender (put √ mark)
Male Female
3) Member Details:
a) Membership Number
b) Membership status (put √ mark) FCA ACA
c) Member status: - (Practice/Industry/others)
d) Any other Qualifications
4) Address for Correspondence
a) Address
Affix recent
Passport size
Photographb) City / Town
c) PIN Code
5) Phone No.
Mobile:
(With STD code)
6) E-mail address: -
7) Centre of the Course
8) Details of Course fee:
DD/Cheque Number and Date:
Amount in (Rs)
Fully-funded UK scholarship for chartered accountants
July, 28th 2012
The Institute of Chartered Accountants England and Wales (ICAEW) has announced the launch of 120 fully-funded scholarships - 40 each in Pune, Mumbai and Delhi - for full-time members of the Institute of Chartered Accountants in India (ICAI) to undertake an advanced professional skill development course.
"The select scholarship-holders will undertake the 16-day part-time training spread over a period of four months between July and October, to appear in two exams in November and another one in July next year. Completion of the course and exams will lead to a full membership of the ICAEW, which is a global accounting alliance of CA bodies from seven countries," said Vandana Saxena Poria, chief executive officer of Get Through Guides (GTG), which is the only accredited training partner of the ICAEW and the ICAI. "The scholarships, each valued at Rs 1.50 lakh, come as part of a memorandum of understanding signed between ICAI and ICAEW in 2008 for mutual recognition and enhancement of professional skills and competencies," said Dilip Apte, regional council member of the ICAI's western regional council and general manager of corporate relations at HDFC.
The Institute of Chartered Accountants England and Wales (ICAEW) has announced the launch of 120 fully-funded scholarships - 40 each in Pune, Mumbai and Delhi - for full-time members of the Institute of Chartered Accountants in India (ICAI) to undertake an advanced professional skill development course.
"The select scholarship-holders will undertake the 16-day part-time training spread over a period of four months between July and October, to appear in two exams in November and another one in July next year. Completion of the course and exams will lead to a full membership of the ICAEW, which is a global accounting alliance of CA bodies from seven countries," said Vandana Saxena Poria, chief executive officer of Get Through Guides (GTG), which is the only accredited training partner of the ICAEW and the ICAI. "The scholarships, each valued at Rs 1.50 lakh, come as part of a memorandum of understanding signed between ICAI and ICAEW in 2008 for mutual recognition and enhancement of professional skills and competencies," said Dilip Apte, regional council member of the ICAI's western regional council and general manager of corporate relations at HDFC.
S. 54EC limit of Rs. 50L does not apply to the transaction but financial year.
S. 54EC limit of Rs. 50L does not apply to the transaction but financial
year. Delay in investing within 6 M owing to non-availability of bonds
to be excused
The assessee sold property on 22.10.2007 and computed long-term capital gains. The s. 54EC investment was required to be made within 6 months i.e. on or before 21.04.2008. The assessee invested Rs. 50 lakhs in REC bonds on 31.12.2007 (FY 2007-08, within the 6 M time limit) and Rs. 50 lakhs in NHAI bonds on 26.5.2008 (FY 2008-08, beyond the 6 M time limit) and claimed a deduction of Rs. 1 crore. The assessee claimed that no eligible scheme was available for subscription from 1.4.2008 to 28.5.2008 and that he applied in the NHAI bonds as soon as it opened and that he was prevented by sufficient cause from investing within the time period of 6 months. The AO & CIT (A) rejected the claim for exemption of Rs. 50 lakhs in
The assessee sold property on 22.10.2007 and computed long-term capital gains. The s. 54EC investment was required to be made within 6 months i.e. on or before 21.04.2008. The assessee invested Rs. 50 lakhs in REC bonds on 31.12.2007 (FY 2007-08, within the 6 M time limit) and Rs. 50 lakhs in NHAI bonds on 26.5.2008 (FY 2008-08, beyond the 6 M time limit) and claimed a deduction of Rs. 1 crore. The assessee claimed that no eligible scheme was available for subscription from 1.4.2008 to 28.5.2008 and that he applied in the NHAI bonds as soon as it opened and that he was prevented by sufficient cause from investing within the time period of 6 months. The AO & CIT (A) rejected the claim for exemption of Rs. 50 lakhs in
Competition Commission survey highlights concentration
A UK Competition Commission (CC) statutory audit survey found 83% of
FTSE 350 companies that recently switched auditors opted to choose
another Big Four firm while 97% of all switches have been to or among
the Big Four.
This highlights a high level of concentration in the UK's audit sector, in which four firms carry out an overwhelming majority of listed company work.
The CC has been investigating concentration levels in the UK following an Office of Fair Trading referral in October.
This highlights a high level of concentration in the UK's audit sector, in which four firms carry out an overwhelming majority of listed company work.
The CC has been investigating concentration levels in the UK following an Office of Fair Trading referral in October.
National Convention for CA Students, Aurangabad -Eklayvya
Aurangabad Branch of WIRC of ICAI and
Aurangabad Branch of WICASA of ICAI feels privileged to announce that for the
first time at Aurangabad “National Convention for CA Students - Eklavya�
is being organized on  11th (Saturday) & 12th(Sunday) of August 2012. The convention is only for Students who are
registered with ICAI.
Â
Main highlights of the convention are stated
in brief as below:
ITAT allows Deduction u/s.80IB(10) on partially complete project
Assessee is a firm engaged in business of builder and promoter. The
issue before us is regarding allowability of deduction u/s.80IB(10) of
the Act on partially complete project. The Assessing Officer has denied
the deduction on the ground that project was not complete within the
stipulated time. There is no dispute with regard to other conditions
laid u/s.80IB(10) of the Act, i.e., commencement of project, area of
land of project, etc. Assessee's housing project was approved vide
commencement certificate No.3837/04 dated 13.01.2005 out of which
completion certificate was obtained and furnished before the Assessing
Officer for 173 out of 205 flats. Same was rejected by the Assessing
Officer and confirmed by the CIT(A). The request for granting whole
deduction in respect of whole project has rightly been rejected because
deduction
Provision of section 194I is applicable only where there is relation ship of lesee and lessor
Court
INCOME TAX APPELLATE TRIBUNAL
Brief
I have carefully considered the
assessment order and the submissions made by the ld. AR in this regard.
As per the facts of this case, the appellant company is a 100%
subsidiary of the holding company M/s McCann-Erickson (India) Pvt. Ltd.
M/s McCann Erickson has taken on rent office premises in Delhi and
Mumbai vide separate lease deeds with the landlords. M/s McCann has
permitted common use of the above premises by the appellant company. The
full rent for the premises have been paid directly by the holding
company to the landlords after deducting tax at source u/s 194-1 of the
Act. During the year under consideration, the appellant has paid
Rs.56,23,456/- to M/s McCann towards its portion of rent on account of
the above use of office premises. The AO has disallowed the above
payment u/s 40(a)(ia) by holding that TDS should also have been deducted
by the appellant company on the above amount u/s 194-1 of the Act. In
this regard, it is argued by the Id. AR that the above arrangement has
been in existence for the last 10- 15 years and has been accepted by the
department without making any additions. It is argued that the AO has
wrongly presumed that the lease deed does not permit use of the above
premises by subsidiary company, whereas actually the said lease deeds do
permit the appellant to allow use of the said premises by its
subsidiaries and group entities. Copy of the lease deeds are furnished
by the Id. AR which had also been furnished before the AO during
assessment proceedings. It is argued that in any case TDS on the full
amount has been made by the parent company as per law and the
reimbursement of a part of it by the appellant company is not separately
exigible to TDS in terms of the amended clause (i) of Explanation to
section 194-1 of the Act. It is further argued that the relation between
the holding company and the appellant is not that of a lesser and
lessee and hence the said payment cannot be subject to TDS u/s 194-I.
Citation
ACIT, Circle 15 (1), New Delhi.
(APPELLANT) Vs. M/s. Result Services Pvt. Ltd., 8, Balaji Estate, Guru
Ravi Dass Marg, Kalkaji, New Delhi. (PAN: AAACR0505N)(RESPONDENT)
Judgement
IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘F’: NEW DELHI)
SHRI RAJPAL YADAV, JUDICIAL MEMBER
And
BEFORE SHRI B.C. MEENA, ACCOUNTANT MEMBER
ITA No.2846/Del./2011
(Assessment Year: 2008-09)
ACIT, Circle 15 (1),
New Delhi.
(APPELLANT)
Vs.
M/s. Result Services Pvt. Ltd.,
8, Balaji Estate, Guru Ravi Dass Marg,
Kalkaji,
New Delhi.
(PAN: AAACR0505N)
(RESPONDENT)
ASSESSEE BY: Shri Suresh Ramchandaran
REVENUE BY: Dr. Devender Singh, CIT DR
ORDER
PER B.C. MEENA, ACCOUNTANT MEMBER:
This appeal filed by the revenue emanates from the order of the CIT(Appeals)-XVIII, New Delhi dated 28.02.2011 for the Assessment Year 2008-09.
2.
The assessee company is engaged in the business of direct marketing,
advertisement and sales promotion. The return of income was filed on
30.09.2008 declaring income at Rs.11,46,223/-. The assessment was
finalized after making a disallowance u/s 40a(ia) of Income-tax Act,
1961 of
Rs.56,23,456/-. The CIT (A) deleted the addition by holding as under :-
“4.2
I have carefully considered the assessment order and the submissions
made by the ld. AR in this regard. As per the facts of this case, the
appellant company is a 100% subsidiary of the holding company M/s
McCann-Erickson (India) Pvt. Ltd. M/s McCann Erickson has taken on rent office premises in Delhi
and Mumbai vide separate lease deeds with the landlords. M/s McCann has
permitted common use of the above premises by the appellant company.
The full rent for the premises have been paid directly by the holding
company to the landlords after deducting tax at source u/s 194-1 of the
Act. During the year under consideration, the appellant has paid
Rs.56,23,456/- to M/s McCann towards its portion of rent on account of
the above use of office premises. The AO has disallowed the above
payment u/s 40(a)(ia) by holding that TDS should also have been deducted
by the appellant company on the above amount u/s 194-1 of the Act. In
this regard, it is argued by the Id. AR that the above arrangement has
been in existence for the last 10- 15 years and has been accepted by the
department without making any additions. It is argued that the AO has
wrongly presumed that the lease deed does not permit use of the above
premises by subsidiary company, whereas actually the said lease deeds do
permit the appellant to allow use of the said premises by its
subsidiaries and group entities. Copy of the lease deeds are furnished
by the Id. AR which had also been furnished before the AO during
assessment proceedings. It is argued that in any case TDS on the full
amount has been made by the parent company as per law and the
reimbursement of a part of it by the appellant company is not separately
exigible to TDS in terms of the amended clause (i) of Explanation to
section 194-1 of the Act. It is further argued that the relation between
the holding company and the appellant is not that of a lesser and
lessee and hence the said payment cannot be subject to TDS u/s 194-I.
Under
the facts and circumstances as stated above, I find that the impugned
addition made by the AO cannot be sustained either on facts or in law.
The same is, therefore, deleted.
3. Revenue is in appeal before us by taking the following ground :-
“1.
That on the facts and circumstances of the case and in law, the Ld.
C!T(A) has erred in deleting the addition of Rs.56,23,456/- made by the
AO u/s 40(a)(ia) of the IT Act, 1961. The Ld. CIT(A) has not appreciated
the fact that for the purpose of section 194-1 in the explanation (i)
of the said section the 'Rent' means any payment whatever name called
under any lease, sub lease, tenancy or any agreement or arrangement for
the use of (either separately or together) any (a) land or (b) building
or (c) land appurtenant to building (including factory building) etc.
whether or not any or all of the land or building are owned by the
payee. Therefore, the' subsidiary company was liable to deduct tax on
the rent payment made to the holding company.
2. The appellant craves to be allowed to add any fresh grounds of appeal and/or delete or amend any of the grounds of appeal.”
4.
The only issue involve din the appeal is against the deletion of
addition of Rs.56,23,456/- made u/s 40a(ia) of the Income-tax Act, 1961.
While pleading on behalf of the revenue, the ld. DR relied on the order
of the Assessing Officer and also submitted that the CIT (A) has failed
to appreciate the fact that for the purpose of section 194-I in
Explanation (i) of that section, the rent has been defined as ‘rent’
means any payment whatever name called under any lease, sub lease,
tenancy or any agreement or arrangement for the sue of (either
separately or together) any (a) land or (b) building or (c) land
appurtenant to building (including factory building) etc. whether or not
any or all of the land or building are owned by the payee. He pleaded
that during the year, the company has debited the amount of
Rs.64,86,806/- as expenditure on account of rent. Out of this, an amount
of Rs.56,23,456/- was paid to the holding company, M/s. McCann Erickson
India Pvt. Ltd. No TDS was deducted on this amount. The payment has
been made by the subsidiary company to the holding company for the use
of the factory building. Therefore, as per the definition of the rent as
provided in Explanation (i) of section 194-I of the Act, such
arrangements for the use of factory premises was liable to deduct tax on
the payment of the rent on the holding company. Since the assessee has
not deducted TDS, therefore, provisions of section 40a(ia) read with
section 194-I are clearly applicable to the facts of the assessee’s
case, therefore, Assessing Officer was justified in making the addition
and the CIT (A) has wrongly deleted the addition and he prayed to set
aside the order of the CIT (A).
5.
On the other hand, the ld. AR relied on the order of the CIT (A) and
pleaded that this expenditure of Rs.56,23,456/- was a reimbursement of
the rent paid to the holding company. This rent was in respect of two
properties located at Delhi and Mumbai. In Delhi, the property was hired by the holding company from CEPCO Industries Pvt. Ltd. As per clause 5 at page 31
(further
covenant with Lessor) of the Lease Deed, the premises were to be used
by the subsidiary and associate companies as well. The liability to pay
the rent was of the Lessee (holding company). For the Mumbai premises,
as per clause 7 (d) of Lease and Licence Agreement between National
Organic Chemical Industries Limited and Mafatlal Industries Ltd. and
holding
company,
Mccann Erickson India Pvt. Ltd., the premises were allowed to be used
by the subsidiaries, affiliates, group entities and associates. Assessee
had paid the amount as reimbursement for the use of premises as per
agreement. Therefore, this amount was reimbursement to the holding
company. Ld. AR
further pleaded that holding company has debited in the books of
account rent only related to the portion occupied by it only. Mccann
Erickson India Pvt. Ltd. was not deriving any rental income and it has
not declared any rental income under the head ‘Income from house
property’. It is also submitted that this position continued for several
years, even when the provisions of section 40a(ia) were not in
existences. The provisions of section 194-I were inserted in statute by
Finance Act, 1994, w.e.f. 1.6.1994, The amendment in section 40 (a)
w.e.f. 01.04.2006 by Taxation Law (Amendment) Act, 2006 shall not effect
the factual position with regard to this. Assessee was reimbursing the
amount of rent to holding company since many past years. Without
deducting TDS, there is no material change in law and facts on the
issue. Facts remain the same. Therefore, any deviation in revenue’s
stand shall be a violation of rule of consistency. The intent of the
assessee to recognize the transaction as a reimbursement is also evident
from the audited accounts and also to the note to tax audit report. Ld. AR also relied on the following decisions:-
(i) CIT vs. Woodward Governor India Pvt. Ltd. – 294 ITR 451 (Del.);
(ii) CIT vs. Rajiv Grinding Mills (Delhi) – 142 Taxman 567;
(iii) CWT vs. RKKR International (P) Ltd. (Delhi), - 145 Taxman 322;
(iv) CIT vs. Neo Polypack Ltd. – 245 ITR 492 (Del.);
(v) Union of India vs. Satish Panna Lal Shah – 249 ITR 221 (SC)
(vi) Berger Paints India Ltd. vs. CIT – 266 ITR 99 (SC) Ld.
AR submitted that the order of CIT (A) may be sustained.
6.
We have heard both the sides. The assessee is a 100% subsidiary of
holding company of Mccann Erickson India Pvt. Limited. Mccann Erickson
India Pvt. Ltd. has taken on rent office premises located at Delhi
and Mumbai. Copies of these two Lease and Licence deeds entered with
the landlords are on record. The holding company, Mccann Erickson India
Pvt. Ltd., has permitted assessee to use part of theses premises.
Assessee had reimbursed the amount to holding company without deducting
TDS. The rent for the whole premises was paid directly by the holding
company to the Lessors and the tax was deducted as per provisions of
section 194-I of the Income-tax Act, 1961. The clause 5 of the lease
deed for Delhi premises dated 22.10.2007 between CEPCO Industries Pvt. Ltd. and Mccann Erickson India Pvt. Ltd. read as following :
“5.
The LESSEE may use the Demised Premises or parts thereof for their
commercial use as well as for the offices of its subsidiaries and
associates and allied companies and for the purposes of companies /
firms and business in which the Directors of the LESSEE are interested
or concerned, however, any such companies / subsidiaries shall not
acquire any interest in the Demised Premises and liability for payment
of rent, other outgoing, etc. shall remain sole responsibilities of the
LESSEE.”
Similarly,
the Lease & Licence Agreement between National Organic Chemical
Industries Limited and Mafatlal Industries Limited and Mccann Erickson
India Pvt. Ltd. also provide in clause 7 (d) as under :-
“d.
Not to sub-let or give on leave and license basis or on any other basis
the Licensed Premises or any portion thereof, nor permit any third
party to use and occupy the Licensed Premises or any portion thereof
save and except to its subsidiaries, affiliates, group entities,
associates, which shall be without any prior written consent of the
Licensor.”
The
assessee is paying rent to the holding company as reimbursement since
last many years. This position has been accepted by the department all
through and it has been never disputed even when provisions for TDS were
on statute since 1994. Section 194-I of the Income-tax Act, 1961 was
inserted in Act w.e.f. 01.06.1994. Similarly, this position was also not
disputed even after the amendment in section 40(a)(ia) of the Act by
the Taxation Law (Amendment) Act, 2006 w.e.f. 1.4.2006. on this issue,
there is no material change in the facts and law during the year under
consideration. The lease deed provides for use of the premises by the
subsidiary companies. The actual payments made by the lessee (holding
company) to the lessor and necessary tax was deducted there from. The
holding company has also not debited the whole of rent to its books of
account. It has only debited the rent which pertains to the part of the
premises occupied by it. Therefore, in our considered view, there was no
lessor and lessee relationship between the holding company and assessee
where the provisions of section 194I are attracted. Keeping these facts
in view, we find merits in the order of the CIT (A) in deleting the
addition made u/s 40(a)(ia) of the Act. We sustain the order of the CIT
(A) and dismiss revenue’s appeal.
7. In the result, the appeal of the revenue is dismissed.
Order pronounced in open court on this 28th day of June, 2012.
Sd/- Sd/-
(RAJPAL YADAV) (B.C. MEENA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Dated the 28th day of June, 2012
TS
Copy forwarded to:
1.Appellant
2.Respondent
3.CIT
4.CIT (A)-IX, New Delhi.
5.CIT(ITAT), New Delhi.
AR, ITAT
NEW DELHI.
ITR-7 for A Y 2012-13 notified
The CBDT has notified ITR-7 for A Y 2012-13. Click on the link below to download the form.
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay-2012-2013/FormITR7ENG.pdf
http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/PDF/Ay-2012-2013/FormITR7ENG.pdf
But please note that if the excess
of income over expenditure of the trust was more than Rs 180000/- and
the trust as a result was subject to mandatory audit u/s 12A, the due
date of filing the ITR-7 is 30 September 2012 and not 31 July 2012.
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