Banks to remain open on weekend to facilitate tax collection

NEW DELHI: Bank branches will remain open for full day on March 29, 30 and 31 to facilitate tax collection.

While March 29 is a Saturday, March 30 is Sunday and March 31 is the last year of financial year and is a public holiday in some parts of the country.

CBEC to keep its offices open on last three days of this Month

Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise & Customs

Subject:  Opening of offices during the week beginning 24th March, 2014 – reg.As you are aware, the bulk of the revenue is received at the end of the month.  However, last week of March 2014 does not have full working days. 29^th March is a Saturday, 30^th March is a Sunday and 31^st March is a public holiday in some parts of the country.  Incidentally, this week also happens to be the last week of the financial year.

2.         The Chairperson, CBEC has also requested the Secretary Financial Services to issue instructions to have the banks open for full day on 29^th, 30^th and 31^st March 2014 so that the efforts made for collections of revenue are reflected appropriately.

3.         I am, therefore, directed to request you to immediately issue trade notices for the information of the trade and also keep your offices, as a special measure, opened on 29^th, 30^th & 31^st March, 2014.  You may also contact the local banks to ensure that the assesses can make their payments electronically and these are uploaded to reflect the actual revenue collections for the financial year.

Yours faithfully,

(Surendra Singh)

Under Secretary to the Govt. of India

ICAI exam site

Check on icai exam site der is a new window called correction window opened wer details of ur online form r der.. confirm dat they r correct. Dis correction window is open from 19th to 25 mar only. Check it n confirm wit icai dat its correct..pass d mssge to your friends as well...

Amendment to CE and Cenvat Rules

Amendment to Central Excise Rules/CENVAT Credit Rules

Central Govt notifies Central Excise (Second Amendment) Rules 2014 and CENVAT Credit (Fifth Amendment) Rules 2014 w.e.f. date of publication in Official Gazette; Empowers Chief Commissioner of Central Excise to impose restrictions including suspension of registration in case of first / second stage dealers, against duty evasion / default in duty payment or misutilisation of CENVAT Credit;

 

Further, notifies procedure to be followed in terms of amended Rules 12CCC of Central Excise Rules and 12AAA of CENVAT Credit Rules; Accordingly, Chief Commissioner shall afford opportunity of being heard to delinquent assessee before issuing order against proposal to impose restriction; Rescinds earlier Notification No. 5/2012-CE (N.T), clarifying that proposals pending before authorised officer of CBEC / DGCEI shall be transferred to Chief Commissioner : Finance Ministry Notifications.

Bank audit allotment

FYI - Till date as per  info following banks allotment finalised: Please update this list by your  comments:
PNB
UCO
BOI
BOB.
Dena Bank
Allahabad Bank
IOB
SBI
CBI

Compliances of Service Tax in Banking Sector

Dear Members,
As you may be aware Service tax on Banking and other financial services was imposed w.e.f.16-07-2001. The taxation of services has also undergone a paradigm shift from positive list to negative list in the year 2012. Post implementation of taxation of services based on negative list, service tax compliance has now become an integral part of the banking Sector. Being auditors, it's our responsibility to ensure that provisions of a particular law are duly complied with. While conducting an audit it sometimes becomes difficult to look into all the aspects of various laws. For example, Service Tax compliance while conducting an audit may pose to be a bit difficult area.

Indirect Taxes Committee has taken an initiative in this respect in order to help the auditors in complying with service tax law. It gives me immense pleasure to introduce you to the newly launched publication on "Compliances of Service Tax in Banking Sector" which provides us with a detailed Questionnaire for Service Tax Audit of Banks, answering which will ensure compliance with various service tax regulations. In addition to questionnaire there are annexure(s) wherein information can be asked for from the banks and appendix which help as ready references of law while conducting an audit.

You can download the entire booklet from Knowledge Portal of ICAI, which is available on the following link

http://www.icaiknowledgegateway.org/media/k2/attachments/Final_PDF_Filepdf13.03.2014.lnk_1.pdf

Hope the same will assist you in your professional endeavors

Website:  http://www.icai.org for help please visit:http://help.icai.org 

S. 56(2)(vii) does not apply to bonus & rights shares offered

Sudhir Menon HUF vs. ACIT (ITAT Mumbai)
March 17th, 2014
S. 56(2)(vii) does not apply to bonus & rights shares offered on a proportionate basis even if the offer price is less than the FMV of the shares

Date of advance tax payment extended

Date of payment of final installment of advance tax if income tax extended to 18th March 2014

PF Rate Increased

Government of India  has declared a rate of interest of 8.75 per cent on deposits in Employees’ Provident Fund Scheme for the Financial Year 2013-14

New ITR utilities

New ITR utilities using latest JAVA technology is launched. Visit the Itax efiling website for details.

Supreme Court on ST on Chit Fund

Chit funds business constituted 'transactions in money' and isn't liable to service-tax; SC dismisses SLP

January 28, 2014[2014] 42 taxmann.com 52 (SC)/[2014] 43 GST 524 (SC)

Service Tax : SC dismisses SLP against judgment of Delhi High Court whereby Chit fund business (including business chit funds), which are 'transactions in money' were held not liable to service tax and Entry 8 of Notification No. 26/2012-ST, providing from partial exemption/abatement in relation thereto, was quashed  

Circular on Sec 234E

CBDT CIRCULAR ON TDS RETURNS OF GOVT DEDUCTORS

THE Central Board of Direct Taxes (CBDT) has received several petitions from deductors/collectors, being an office of the Government ('Government deductors'), regarding delay in filing of TDS/TCS statements due to late furnishing of the Book Identification Number (BIN) by the Principal Accounts Officers (PAO) / District Treasury Office (DTO) / Cheque Drawing and Disbursing Office (CDDO). This has resulted in consequential levy of fees under section 234E of the Income-Tax Act, 1961.

Board has decided to ex-post facto, extend the due date of filing of the TDS/TCS statement prescribed under sub- section (3) of section 200 /proviso to sub-section (3) of section 206C of the Act read with rule 31A/31AA of the Income-tax Rules, 1962.

However Board has clarified that any fee under section 234E of the Act already paid by a Government deductor shall not be refunded. Further this extension is only a one-time exception in view of the special circumstances.

Board states that timely filing of TDS/TCS statements is essential to ensure timely reconciliation of Government accounts and for providing tax credit to the assessees while processing their Income-tax Returns.

Board suggests that since the Government deductor and the associated PAO/ DTO/ CDDO belong to the same administrative setup that regulates the clearance of expenditure, the deductors/collectors may be advised to co-ordinate with the respective PAO/DTO/CDDO to ensure timely receipt of BIN/filing of TDS/TCS statements.

This Circular is addressed to all Chief Commissioners and Directors General of Income Tax. They are supposed to inform all the officers for compliance.

CBDT Circular No. 7/2014 in F. No. 275/27/2013-IT(B), Dated: March 04 2014-PFA

New CBDT Chairman

R.K. Tewari appointed as CBDT Chairman
Date : March 03 2014
R.K. Tewari appointed as CBDT Chairman.

The Government of India has appointed Mr. R K Tewari as new Chairperson of Central Board of Direct Taxes (CBDT). Mr Tewari is a 1976-batch Indian Revenue Service officer. Before his elevation as Chairman, he was posted as the Member (Legislation & Computerization) at CBDT.

Pre 2005 currency notes

RBI extends last date of exchanging Pre 2005 currency notes to 1 January 2015.
http://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/IEPR1735RE0314.pdf

ICAI to have TV channel

ICAI have signed an MOU today with MHRD for launching a new TV channel -ICAI TV on 15th August 2014.

Message of CBDT Chief

Be Humane With Tax Payers And Avoid Bad Tendencies: CBDT Chief

March 1st, 2014

The CBDT Chairperson, Dr. Sudha Sharma, has, on the occasion of her retirement, pointed out that her endeavour always has been to foster highest standards of ethics and morality and to guard against tendencies which could bring a bad name to the Department. She stated that upholding ethical values and human dignity have remained her guiding principles.

Dr. Sudha Sharma pointed out that as tax collectors, the department had a pivotal role to play and that there was a huge target of collection that had to be met.

The Chairperson also emphasized that the department had to adopt a transparent and humane approach and provide hassle-free service to honest taxpayers as part of the policy.

The Chairperson also listed out all the achievements of the department during her tenure. It may be recalled that Dr. Sudha Sharma has taken charge of the office with the promise that India Will Have The Best Tax Regime In The World.

We wish Dr. Sudha Sharma good luck in her new endeavors after retirement.

Best Wishes

CA. V.M.V.SUBBA RAO
Chartered Accountant

CE Registration & Quarterly Return

Note on Amendment to Application for Central Excise Registration & Quarterly Return for Importers

CBEC amends Annexure-1 in Form A-1 (Application for Central Excise Registration); Includes 'importer' under Part I (Identification of business requiring registration) and also as a separate category under Serial No. 3; Further, notifies quarterly return form for registered importers w.e.f April 1, 2014; Amends Notification No. 35/2001 CE (N.T) dated June 26, 2001 and supercedes Notification No. 73/2003 CE(N.T) dated September 15, 2003: Finance Ministry Notifications.

PFA

Fin Min notifies Central Excise (Amendment) Rules, 2014 and CENVAT Credit (Fourth Amendment) Rules, 2014 w.e.f April 1, 2014; Requires importers issuing invoices eligible for CENVAT credit to mandatorily register with Central Excise Authorities; Such registered importers to submit quarterly return electronically within fifteen days from close of each quarter of a year to the Superintendent of Central Excise; Amends Rules 9(1) of Central Excise Rules, 2002 and Rule 9(8) of CENVAT Credit Rules, 2004 : Finance Ministry Notifications 

---

Note: 

Finance Ministry vide. Notification No. 17 / 18 of 2013-C.E.(N.T.) included importer as 'first stage dealer', requiring Central Excise registration which were to come into effect from March 1, 2014. However, the said notifications were rescinded by Finance Ministry vide. Notification No. 5 / 6 of 2014 - C.E. (N.T.).

By: CA VMV S RAO

2014 Guidance Note on Audit of Banks released by Auditing and Assurance Standards Board.

The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has today issued Guidance Note on Audit of Banks 2014 edition. For the benefit of members, complete text of the Guidance Note along with the accompanying appendices etc. can be downloaded at:

Guidance Note on Audit of Banks (2014 Edition)

Contents of accompanying CD

Please note that the soft copy of the accompanying CD as uploaded on the website contains only list and link of Master and other relevant Circulars of RBI. However, the CD that will come with the book will contain complete text of Master Circulars as well as General Circulars.

Secretary, AASB

ICAI.ORG

Karnataka HC gives interim stay on Sec 234E demand recovery

Karnataka HC gives interim stay on Sec 234E demand recovery

 

High court's relief for employers, businessmen from paying penal fees for not filing TDS

 In a big relief for several employers and businessmen, the Karnataka high court has stayed for four weeks the operation of series of demand notices sent by the Income Tax department asking them to pay penal fees in relation to non-filing of TDS statements. 

Justice Jawad Rahim passed an interim order to this affect while asking Income Tax department and ministry of finance to file their replies. 

Several employers as well as assessees under TAN have moved the court challenging the penal provisions under newly inserted section 234E of the Income Tax Act , 1961 connected to filing of TDS returns by employers. 

"The incorporation of Section 234E to the IT Act with effect from July 1,2012 has at one stroke ,deleted all the favorable and beneficial sections- an appeal under section 246(1)(l)(ii) of the Act and also waiver of penalty under section 273B itself .Now it is mandatory and compulsory on the deductees to pay fee at Rs.200 per day till the date of filing/submitting the TDS statement to TDS reconciliation analysis and correction enabling system, Ghaziabad. Failing which, the deductor/s will be totally debarred from filing their TDS statement itself and as a further consequence , they will not be competent to issue Form No.16 or 16A as stipulated under section203 of the IT Act to the dedctee/s." the petitioners have stated. 

"If they continue defaulting section 234E of the Act, then they would be further subjected rigorous penal provisions of having to shell out penalty at Rs.100 per day, as set out in Section 272A(2)(g), in case recipient/deductee claims credit of the TDS in his return of income tax" the petitioners have claimed. 

The petitioners have stated that levy of fee is against the scheme of the Income Tax Act and the word 'fee' is an alien word by itself vis-a-vis the Income Tax Act. 

Regards,

VMV S RAO                                                                                                            26/02/2014                                                                                                                           Source: Times of India

Amendment to CENVAT Credit Rules

Central Govt Notifies

CENVAT Credit (Third Amendment) Rules, 2014 w.e.f April 1, 2014

Amends Rule 7 pertaining to credit distribution by input service distributor; Accordingly, service tax credit attributable to service used by one or more units exclusively engaged in exempted goods manufacture / exempted service rendition, shall be barred from distribution; Further, credit of service used wholly by a unit shall be distributed only to that unit; Pro rata distribution of service tax credit shall be based on turnover of units using said service during relevant period to total turnover of all its units operational in current year, during said relevant period; As per new Explanation 3, "relevant period" means (i) preceding financial year, where assessee's turnover available for that year, or (ii) where such details unavailable for some / all units , last quarter for which turnover details of all units available (previous to month / quarter for which credit distributed) : Finance Ministry Notification