Both the schemes shall come into force on the 30th May, 2010 and shall remain in force up to 31st August, 2010.
Concerned Circulars are attached.Attachment(s) from Ashwin Nagar
2 of 2 File(s)
Category | Centre | Dates |
A | Mumbai and New Delhi, | 25th -26th June,2010 |
B | Bangalore, Chennai, Kolkata and Hyderabad | 23rd -24th June,2010 |
C | Jaipur and Pune | 22nd June,2010 |
NEW RETURN FORMS FOR ASSESSMENT YEAR 2010-11 | ||
Form No. | Heading | Instructions |
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For Individuals and HUFs not having Income from Business or Profession | ||
For Individuals/ | ||
For individuals and HUFs having income from a proprietory business or profession | ||
For firms, AOPs and BOIs | ||
For Companies other than companies claiming exemption under section 11 | ||
For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) | ||
Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6 transmitted electronically without digital signature | ||
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TRADE CIRCULAR
Date: 10/05/2010
No. DC/704 Cell/B-759
TradeCir. No- 16 T of 2010
Sub : | Extension of Date for Physical Submission of Acknowledgement of Audit Report in Form 704 for the dealers |
Ref: | (1) Government Notification No.VAT/AMD-1009/ 2) Trade Circular 27T of 2009 No. dated 10th October 2009. 3) Trade Circular 05T of 2010 No. dated 28th January 2010. 4) Trade Circular 13T of 2010 No. dated 31st March 2010. |
As per Trade Circular 13T of 2010 No. dated 31st March 2010 Last date for filing the Audit Report in form 704 for F.Y. 2008-09 was 30th April 2010.Dealers are required to submit "the statement of submission of audit report in form e-704" along with required document on or before 10th May 2010.
This office has received representation from trade to extend the date of submission .Considering the same the date of submission of "the statement of submission of audit report in form e-704" along with required document is hereby extended up to 15th May 2010.
(Sanjay Bhatia)
Commissioner of Sales Tax,
Clarification regarding availment of CENVAT credit on input services
Circular No. 122/03/2010-ST, dated 30-4-2010
Representations have been received by Board regarding denial of CENVAT credit on input services in certain cases. Some of the cases where doubts have been raised by field formations are given below:
2. As per Rule 4 (7) of the CENVAT Credit Rules, 2004, the CENVAT credit on input services is available only on or after the day on which payment of the value of input service and service tax is made. The section 67 (4) of the Finance Act, 1994, provides that gross amount charged includes payment made by issue of credit / debit notes or by entries in the books of account, where the transaction is with any associated enterprise.
A doubt has arisen as to whether CENVAT credit can be taken by "Associate Enterprises" when debit is made in book of accounts or when book adjustments/ debit or credit in accounts is made, or if the CENVAT credit of the service tax paid on input service is available only after the actual payment of the value of input service has been made in money terms.
3. As per sub-rule (7) of Rule 4 of the CENVAT Credit Rules, 2004,
"Credit in respect of input service shall be allowed, on or after the day on which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or as the case may be, challan referred to in Rule 9".
A doubt raised is as to whether the receiver of input service can take credit only after the full value that is indicated in the invoice, bill or challan raised by the service provider, and also the service tax payable thereon, has been paid. It has been represented that in many cases, after the invoice is issued by the service provider, the service receiver does not make the full payment of the invoiced amount on account of discount agreed upon after issuance of invoice; or deducts certain amount due to unsatisfactory service; or withholds some amount as security to be held during contract period. Due to these reasons the value paid may not tally with the amount indicated in the invoice, bill or challan. In such cases the department has raised objections to the taking of credit as it does not meet the requirement of the said sub-rule (7).
4. Thus the following issues relating to availment of CENVAT credit need clarification,-
Whether CENVAT credit can be claimed
(a) when payments are made through debit/credit notes and debit/credit entries in books of account or by any other mode as mentioned in section 67 Explanation (c) for transactions between associate enterprises; or
(b) where a service receiver does not pay the full invoice value and the service tax indicated thereon due to some reasons.
5. Matter has been examined and clarification in respect of each of the above mentioned issues is as under,-
(a) When the substantive law i.e. section 67 of the Finance Act, 1994 treats such book adjustments etc., as deemed payment, there is no reason for denying such extended meaning to the word 'payment' for availment of credit. As far as the provisions of Rule 4 (7) are concerned, it only provides that the CENVAT credit shall be allowed, on or after the date on which payment is made of the value of the input service and of service tax. The form of payment is not indicated in the same and the rule does not place restriction on payment through debit in the books of accounts. Therefore, if the service charges as well as the service tax have been paid in any prescribed manner which is entitled to be called 'gross amount charged' then credit should be allowed under said rule 4 (7). Thus, in the case of "Associate Enterprises", credit of service tax can be availed of when the payment has been made to the service provider in terms of section 67 (4) (c) of Finance Act, 1994 and the service tax has been paid to the Government Account.
(b) In the cases where the receiver of service reduces the amount mentioned in the invoice/bill/challan and makes discounted payment, then it should be taken as final payment towards the provision of service. The mere fact that finally settled amount is less than the amount shown in the invoice does not alter the fact that service charges have been paid and thus the service receiver is entitled to take credit provided he has also paid the amount of service tax, (whether proportionately reduced or the original amount) to the service provider. The invoice would in fact stand amended to that extent. The credit taken would be equivalent to the amount that is paid as service tax. However, in case of subsequent refund or extra payment of service tax, the credit would also be altered accordingly.
6. The contents of this circular may be suitably brought to the notice of the field formations. In case any difficulty is faced in implementing these instructions, the same may be brought to the notice of the undersigned.
| Multipurpose Empanelment Form for the year 2010-11 - (04-05-2010) | ||||||||||
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Sl. No. | Clause No. | |
1. | Page 5, line 46, Omit 'and";' | |
2. | Page, after line 46, insert – '(ab) on or after the 1st day of April, 2010, where the specified business is in the nature of building and operating a new hospital with at least one hundred beds of patients; (ac) on or after the 1st day of April, 2010, where the specified business is in the nature of developing and building a housing . project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and which is notified by the Board in this behalf in accordance with guidelines as may be prescribed; and"; | 10 10 |
3. | Page 5, line 48,— for "and clause (aa)" substitute "clause (aa), clause (ab) and clause (ac)'" | 10 |
4. | Page 5, after line 52, insert— '(v) building and operating, anywhere in India, a new hospital with at least one hundred beds for patients; (vi) developing and building a housing project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed;'. | 10 |
5. | Page 6, line 47,— after "to a limited liability partnership" insert "or any transfer of a share or shares held in the company by a shareholder". | 18 |
6. | Page 7, for lines 24 and 25, substitute— "asset or share or shares not charged under section 45 by virtue of conditions laid down in the said proviso shall be deemed to be the profits and gains chargeable to tax of the successor limited liability partnership or the shareholder of the predecessor company, as the case may be, for". | 19 |
7. | Page 7, after Iine 30, insert— '(aa) after sub-section (2A A), the following sub-section shall be inserted with effect from the 1st day of April, 2011, namely:— "(2AAA) Where the capital asset being rights of a partner referred to in section 42 of the Limited Liability PartnershipAct, 2008 (6 of 2009) became the property of the assessee on conversion as referred to in clause (xiiib) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share or shares in the company immediately before its conversion.";' | 20 |
8. | Page 14, after line 7, insert— Amendment of the Second Schedule. '62A. In the Second Schedule to the Customs Tariff Act, against heading No. 16, in column (3), for the entry "Rs. 2500 per tonne", the entry "Rs. 10000 per tone" shall be substituted.'. | 62A (New) |
9. | Page 17, after line 49, insert— '(3A) for clause (77c), the following clause shall be substituted, namely:— '(77c) "passenger" means any person boarding an aircraft in India for performing domestic journey or international journey.';'. | 75 |
10. | Page 39, line 9, in column (3), after "on inputs" insert "or input services". | The Eighth Schedule |
| Opposition unhappy, says nothing for the common man. |
New Delhi, Apr 29
The Finance Minister, Mr Pranab Mukherjee, today made a number of amendments to the Finance Bill including raising the export duty on iron ore lumps and increasing the standard rate on raw cotton exports.
Simultaneously, he reduced the import duty on melting scrap for stainless steel, and the service tax burden on construction services and air travel. Mr Mukherjee also offered a debt relief package for coffee growers.
The main Opposition party, Bhartiya Janata Party (BJP), walked out saying that there was no relief for the common man and farmers. The Left parties too staged a walkout. The Finance Bill was later passed by the Lok Sabha.
As part of the reply to the discussions on the Finance Bill, 2010, the Finance Minister announced a debt relief package to the small growers of coffee. He also provided relief to medium and large growers by allowing re-scheduling of loans. The total financial implication for the Centre would be Rs 241.33 crore, while the benefit to coffee growers will be about Rs 362.82 crore.
Tax Deduction
On the income-tax front, Mr Mukherjee announced that new hospitals with at least 100 beds and constructed anywhere in India would now be entitled for investment-linked deduction.
Also, housing projects developed for slum redevelopment and rehabilitation under Rajiv Awas Yojana (RAY) will be eligible for investment-linked deduction for income-tax purposes.
Another relief for the housing sector came by way of reduced service tax burden on construction services.
"Several suggestions have been made by trade associations. Considering all inputs, I propose to provide tax relief to this sector by enhancing the rate of abatement from 67 per cent to 75 per cent of the gross value where such value includes value of land constructed upon," Mr Mukherjee said.
However, the real-estate industry felt that the measures for housing were a mixed bag. "Although the service tax outgo will now be calculated on 25 per cent and not 33 per cent of the value of the house, it still falls short of expectations. The industry was hoping that land value will be completely excluded from such calculation, which has not happened. Also, the abatement is lower than what the industry had sought (90 per cent)," said Mr Pratik Jain, Executive Director of KPMG.
Real-estate company Parsvnath Developers Chairman, Mr Pradeep Jain, said the Government's move to exempt service tax on constructions under JNNURM and RAY was a welcome step.
Meanwhile, on the aviation sector, the Finance Minister clarified that Rs 100 will be the maximum service tax a domestic air traveller will pay for each journey, while travel to and from the North-East will be totally exempt. Mr Mukherjee added that Rs 500 will be the maximum that an economy class international air traveller will have to pay as service tax.
The Finance Minister also announced an increase in the export duty on iron ore lumps from 10 per cent to 15 per cent. This move was hailed by the steel-makers, stating that this has been a long-standing demand of the steel industry.
"This is certainly a positive move for the steel industry as domestic availability of iron ore will increase which will help steel makers," said Mr Sushil Maroo, Director, Jindal Steel and Power Ltd.
Limited Liability Partnership
On limited liability partnership (LLP), the Finance Minister announced that transfer of shares by the shareholders of the company would be tax exempt. This move was in consequence of the decision to allow tax neutrality for conversion of a company into LLP.
"The one important and very positive change is the exemption from levy of capital gains tax in the hands of shareholders upon the conversion of a company into a limited liability partnership. Arguably, such a conversion is a tax neutral event as it is, but the clarification is a step in the right direction.
"One had hoped that the conditions which permit only small companies to convert tax neutral would have been removed," Mr Dinesh Kanabar, Deputy CEO and Chairman Tax, KPMG in India told Business Line.
Drugs cheaper
The Finance Minister also announced reduction in basic customs duty on 11 specified drugs including two anti-cancer and one for the treatment of AIDS to 5 per cent.
These drugs are also being exempted from countervailing duty by way of excise duty exemption.
Meanwhile, Fortis Healthcare Ltd welcomed the measures announced for the health care industry. "It will contribute to the creation of much needed infrastructure in the country. This is symbolic of the Government's efforts to provide the support required by the sector," the company said in a statement.
Attachment(s)
1 of 1 File(s)| Certified Facilitation Centres under ACES Project of the CBEC - (13-04-2010) | |||||||||
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Attachment(s) from Ashwin Nagar
1 of 1 File(s)
Attachment(s) from Ashwin Nagar
2 of 2 File(s)
Please go through the attached Notice/ Circular issued by HDFC Bank post the communication from RBI for Banks on Guidelines to follow in case of alterations on cheques. This will get implemented from July 01, 2010.
As per RBI Circular - DPSS.CO.CHD.
Prohibiting alterations / corrections on cheques :
No changes / corrections should be carried out on the cheques (other than for date validation purposes, if required). For any change in the payee's name, courtesy amount (amount in figures) or legal amount (amount in words), etc., fresh cheque forms should be used by customers. This would help banks to identify and control fraudulent alterations.
In view of the above guidelines, with effect from July 01, 2010 no alterations in cheque will be allowed (even if signature is made at the place of alteration on cheque). These kinds of altered cheques will not be honored by Bank.
Attachment(s) from Ashwin Nagar
1 of 1 File(s)
| Tuesday, April 13, 2010 | |||||
| Ministry of Minority Affairs | |||||
ICAI TO BE A FACILITATOR OF FINANCE MINISTRY'S E-INITIATIVE SIGNS MOU WITH THE CENTRAL BOARD OF EXCISE AND CUSTOMS | |||||
| 18:13 IST | |||||
| The Institute of Chartered Accountants of India (ICAI has signed a Memorandum of Understanding (MOU) with the Central Board of Excise and Customs (CBEC). Giving this information here today the President of ICAI, Shri Amarjit Chopra, said that under it the practicing members of ICAI will provide facility of e-filing of returns and documents to Central Excise and Service Tax assessees through Certified Facilitation Centres (CFCs). A CFC is a facility, other than the physical front offices or Facilitation centres of CBEC, which will be set up and operated by practicing Chartered Accountants in individual capacity or as proprietor or firm. With this the ICAI has become a facilitator of Finance Ministry's e-initiative. CBEC had introduced 'Automation of Central Excise and Service Tax' (ACES) programme to improve tax-payer services. ACES is a centralized web based application which enables the assessees to electronically interface with the department. It aims to reduce paperwork, transaction costs and increase accountability, efficiency and transparency. This initiative will immensely help all those assessees who may not have the requisite IT infrastructure / resources, to use ACES. An assessee is required to pay nominal fixed fees (maximum Rs 600/- for entering return data and Rs.200/-per return for uploading returns with ACES) for availing services of CFCs. With this MOU, the members can not only provide services as envisaged, but would also provide other services on request of the assesses. It opens a new professional avenue for the Members as they can now provide services to the assessees of Central Excise and Service Tax in filing their returns and other documents electronically under ACES. The Institute of Chartered Accountants of India), functioning under the aegis of the Ministry of Corporate Affairs, is in the process of setting up utility for online filing of application by members to obtain certificate under the scheme whereupon CBEC will provide user name and password to members to activate the facility. Members of the ICAI are spread across the country and this initiative will facilitate e-filing of returns and documents by assessees in every part of the country. | |||||
1 of 1 File(s)
| Are you disappointed with current Bank Audit allotment process? Let us discuss. Write your comments, compliants and suggestions on this wall. |
| Consolidated FDI Policy effective from 1st APril,2010- see attachment |
Attachment(s) from Ashwin Nagar
1 of 1 File(s)
