Service Tax Amnesty acknowledgement

Service Tax Department to issue acknowledgement of discharge in Form VCES-3 in 7 days from furnishing of details of payment of tax and interest. Service Tax Amnesty Scheme.

Cheque return charges

Cheque return charges only where customer at fault. Cheque without any recourse to payee to be resent in the next clearing within 24 hours. RBI Circular of 07-05-2013.

Empanelment as financial experts

Applications are invited from practising Chartered Accountants/CA firms for empanelment as financial experts for Biotech Consortium India Limited (BCIL), New Delhi.

Form 16A, 27D for Quarter four by 30-05-2013 and Form 16 by 31-05-2013

Issue Form 16A, 27D for Quarter four by 30-05-2013 and Form 16 by 31-05-2013. Mandatory for all to download Form 16(Part A) and Form 16A from www.tdscpc.gov.in.

Business responsibility report to be part of Annual report

Business responsibility report to be part of Annual report w.e.f financial year ending 31-12-2012.optional for other listed companies. SEBI Circular of 13-08-2012.

Protective additions in the hand of minors

Protective additions in the hand of minors not required if the same been made on substantive basis in the hand of father under Income Tax Act. [ITAT Delhi Bench master Akshay Bansal].

Service Tax Returns, (ST- 3) for July -September, 2012

Service Tax Returns, (ST- 3) for July -September, 2012, e-filed in ACES can now be viewed under View Original ST3 and View ST-3 options under RET module of ACES.

Commission paid to related parties for services

Commission paid to related parties for services rendered by them is allowable expenditure under Income Tax Act. High Court of Gujarat at Ahmedabad, Naval Technoplast Industries Limited.

Excise Duty in closing stock

If liability to pay excise duty is not incurred, excise duty is not to be included in closing stock.
High Court of Gujarat at Ahmedabad, Bell Granito Ceramica Limited.

Issue of equity shares under FDI

Issue of equity shares under FDI Scheme allowed under Government route against Pre-operative/Pre-incorporation expenses. RBI Circular 104 of 17-05-2013.

Molasses produced during manufacturing of sugar not scrap

Molasses produced during manufacturing of sugar not scrap for the purpose of section 206C of Income Tax Act. ITAT Amritsar Bench Nawanshahar Co-op. Sugar Mills Ltd.

Dena Bank concurrent audit

Dena Bank invites applications for appointment of CA firms for conduct of Concurrent Audit of the Branches from July, 2013 to June, 2014.

Date for filing the ST-3 return, for the period from October, 2012 to March, 2013

Date for filing the ST-3 return, for the period from October, 2012 to March, 2013 has been extended from 25th April, 2013 to 31st August, 2013. Order No. 03/2013-ST, [F.No.137/99/2011-Service Tax], dated 23-04-2013.

EPF Rate for 2012-13

Government notifies Employee Provident Fund rate for 2012-13 at 8.5%. Those who settled or transferred their accounts in last 14 months to approach Provident Fund department for balance 0.25%.

Reopening not valid

Reopening not valid if reasons silent on quantum of escaped tax under Income Tax Act. Allahabad High Court, Mahesh Kumar Gupta.

CBEC clarifies certain issues on Service Tax Amnesty Scheme

CBEC clarifies certain issues on Service Tax Amnesty Scheme

SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME - CBEC CLARIFIES CERTAIN ISSUES – MERE PENDENCY OF LETTER SEEKING GENERAL INFORMATION NOT AN IMPEDIMENT TO PERSON SEEKING THIS SCHEME

CIRCULAR NO. 169/4/2013-ST [F.NO.B1/19/2013-TRU], DATED 13-5-2013

The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has come into effect upon enactment of the Finance Bill, 2013 on the 10th May, 2013. The Service Tax Voluntary Compliance Encouragement Rules, 2013 has been issued to bring into effect the Scheme. Some references have been received seeking clarification as regards the scope and applicability of the Scheme.

2. The issues have been examined and clarifications thereto are as follows:

S. No.	Issues	Clarification
1	Whether a person who has not obtained service tax registration so far can make a declaration under VCES?	Any person who has tax dues to declare can make a declaration in terms of the provisions of VCES. If such person does not already have a service tax registration he will be required to take registration before making such declaration.
2	Whether a declarant shall get immunity from payment of late fee/penalty for having not taken registration earlier or not filed the return or for delay in filing of return.	Yes. It has been provided in VCES that, beside interest and penalty, immunity would also be available from any other proceeding under the Finance Act, 1994 and Rules made thereunder.
3	Whether an assessee to whom show-cause notice or order of determination has been issued can file declaration in respect of tax dues which are not covered by such SCN or order of determination?	In terms of section 106 (1) of the Finance Act, 2013 and second proviso thereto, the tax dues in respect of which any show cause notice or order of determination under section 72, section 73 or section 73A has been issued or which pertains to the same issue for the subsequent period are excluded from the ambit of the Scheme. Any other tax dues could be declared under the Scheme subject to the other provisions of the Scheme.
4	What is the scope of section 106(2)(a)(iii)? Whether a communication from department seeking general information from the declarant would lead to invoking of section 106 (2) (a)(iii) for rejection of declaration under the said section?	Section 106(2)(a)(iii) of the Finance Act, 2013 provides for rejection of declaration if such declaration is made by a person against whom an inquiry or investigation in respect of service tax not levied or not paid or short-levied or short paid, has been initiated by way of requiring production of accounts, documents or other evidence under the chapter or the rules made thereunder, and such inquiry or investigation is pending as on the 1st day of March, 2013. The relevant provisions, beside section 14 of the Central Excise Act as made applicable to service tax vide section 83 of the Finance Act, 1994, under which accounts, documents or other evidences can be requisitioned by the Central Excise Officer for the purposes of inquiry or investigation, are as follows,- (i) Section 72 of the Act envisages requisition of documents and evidences by the Central Excise Officer if any person liable to pay service tax fails to furnish the return or having made a return fails to assess the tax in accordance with the provision of the Chapter or rules made thereunder. (ii) Rule 5A of the Service Tax Rules, 1994 prescribes for requisition of specified documents by an officer authorised by the Commissioner for the purposes specified therein. The provision of section 106(2)(a)(iii) shall be attracted only in such cases where accounts, documents or other evidences are requisitioned by the authorised officer from the declarant under the authority of any of the above stated statutory provisions and the inquiry so initiated against the declarant is pending as on the 1st day of March, 2013. No other communication from the department would attract the provisions of section 106(2)(a)(iii) and thus would not lead to rejection of the declaration.

3. Trade Notice/Public Notice may be issued to the field formations and tax payers.

No penalty on gift of Resurgent India Bonds from Non Relative NRI under Income Tax Act.

No penalty on gift of Resurgent India Bonds from Non Relative NRI under Income Tax Act.
In the Income Tax Appellate Tribunal, Indore Bench, Indore, Smt.Sangeeta Rathi.

President Assent to Finance Bill 2013

Finance Bill gets enacted as Act No.17 of 2013; President gives assent on 10^th May,2013

Constitution Amendment Bill 2011

revised E-TDS Fee

Revised filing fee for E-TDS/TCS, Form 24G & AIR at TIN-FCs: 0100 records: Rs 35, 100- 1000 records: Rs 200 and more than 1000 records: Rs 650 (inclusive of ST).

S. 40(a)(ia) TDS: Special Bench verdict in Merilyn Shipping is not good law

S. 40(a)(ia) TDS: Special Bench verdict in Merilyn Shipping is not good law

The assessee, engaged in the business of transport contractor and commission agent, incurred expenditure of Rs. 8.74 crores on payment to contractors where no TDS was deducted. The AO & CIT(A) held that the expenditure had to be disallowed u/s 40(a)(ia). On appeal, the Tribunal, relying on Merilyn Shipping & Transports 146 TTJ 1 (Viz) (SB) held that as the said amount had already been paid and was not "payable" as of 31st March, the disallowance u/s 40(a)(ia) could not be made. On appeal by the department to the High Court, HELD reversing the Tribunal:

In Merilyn Shipping 146 TTJ 1 (Viz) (SB) the majority held that as the Finance Bill proposed the words "amount credited or paid" and as the Finance Act used the words "amounts payable", s. 40(a)(ia) could only apply to amounts that are outstanding as of 31st March and not to amounts already paid during the year. This view is not correct for two reasons. Firstly, a strict reading of s. 40(a)(ia) shows that all that it requires is that there should be an amount payable of the nature described, which is such on which tax is deductible at source but such tax has not been deducted or if deducted not paid before the due date. The provision nowhere requires that the amount which is payable must remain so payable throughout during the year. If the assessee's interpretation is accepted, it would lead to a situation where the assessee who though was required to deduct the tax at source but no such deduction was made or more flagrantly deduction though made is not paid to the Government, would escape the consequence only because the amount was already paid over before the end of the year in contrast to another assessee who would otherwise be in similar situation but in whose case the amount remained payable till the end of the year. There is no logic why the legislature would have desired to bring about such irreconcilable and diverse consequences. Secondly, the principle of deliberate or conscious omission is applied mainly when an existing provision is amended and a change is brought about. The Special Bench was wrong in comparing the language used in the draft bill to that used in the final enactment to assign a particular meaning to s. 40(a)(ia). Accordingly, Merilyn Shippingdoes not lay down correct law. The correct law is that s. 40(a)(ia) covers not only to the amounts which are payable as on 31th March of a particular year but also which are payable at any time during the year.