Govt Said that UTN no. is scrapped which was to come on 01.01.10

The government has decided to shelve the introduction of the Unique Transaction Number (UTN) which tax payers need to quote along with Permanent Account Number (PAN) when tax is deducted/collected at source. The scheme was to have come into force from the New Year.

However, the finance ministry has not ruled out the possibility of introducing a new identity number like UTN from the next fiscal, in addition to the PAN to ensure prompt verification and granting of tax credits to tax payers.

“The introduction of UTN, which was scheduled to be implemented from January 2010, has been shelved in all probability . The process of filing tax returns remains the same as earlier,” a finance ministry official said.

HOW TO PREPARE FOR CPT?

Dear Fri+ends,

 Here is my first Article,written especially for taxpert blog.Please read it, it is for the benefit of CPT students.

ur Fri+end
Vakeel Ali
 

To download the belowgiven article click here: http://www.box.net/shared/nrmsbc0le7

HOW TO PREPARE FOR CPT?

1.For all subjects

Read module carefully and prepare ur own short and sweet notes. Prepare ur notes after understanding in depth. Use these notes for revision purpose. Solve all the previous exam questions chapter- wise. ie complete one chapter with ur notes and then solve the question papers. While solving the question papers do not see the given answers. Firstly give ur answer and then compare the same with suggested given answer. Do this for each chapter. After completing whole chapters and all syllabus be prepare for self test which is similar to final exam.ie Use previous question papers and solve it within the given time(Do this assuming that u r appearing for the final exam ). After observing and solving previous question papers u will come to know that what is imp. for theory and practical and u definitely get an idea of format of question papers linking with each chapter. That means on which chapters questions are mostly asked.  Have group discussions with CPT appearing/passed students.

Do not solve directly objective type questions. Firstly absorb the chapter in detail.

Be habitual of solving at least 100 objective questions regularly so that in one month u will cover near about 3000 objective questions.

Do not be hurry while selecting the alternative from the given options, firstly understand the question and then match ur required answer from alternatives.

Sometimes it is observed that students take much times in confusing questions. Do not waist ur valuable time, firstly solve the questions on which u have more confidence.

IFRS convergence PPT

Just click on the below mentioned link to download the PPT.

ifrs convergence.pdf

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No ST on foreign service prior to 18.4.2006 Says Supreme Court

Now It is Final - No Service Tax on foreign service prior to 18.4.2006: Supreme Court dismisses Revenue SLP

TIOL-DDT 1258
15.12.2009
Tuesday
IS it 1.1.2005 or 18.4.2006?

In the Hindustan Zinc case - 2008-TIOL-1149-CESTAT-DEL-LB, a Larger Bench of the Tribunal headed by the President held that, “the taxable service provided by a non-resident or from outside India, who does not have any office in India, having been specified as 'taxable service' with effect from 1.1.2005, under notification No.36 /2004, recipient of such service could not be held liable for paying service tax prior to 1.1.2005 notwithstanding the amendment in rule 2(1)(d) of the Service Tax Rules under notification no. 12/2004.”

The Department had challenged this in the Supreme Court and the Supreme Court had dismissed the Government's appeal - 2009-TIOL-87-SC-ST.

This, many in the Government, take as a reason to state that the Supreme Court had confirmed that Service Tax on import of services is payable from 1.1.2005 and not 18.4.2006 as held by the Bombay High Court in Indian National Shipowners Association – 2008-TIOL-633-HC-MUM-ST

 

The Supreme Court had not held that the tax is payable from 1.1.2005, but only dismissed the Revenue appeal against the CESTAT order holding that it was not payable before 1.1.2005. And there is a lot of difference in the two concepts.

Anyway not satisfied with the dismissal of its appeal by the Supreme Court, the Government filed a review petition in the Supreme Court in the Hindustan Zinc case. The Supreme Court found no merit in the prayer for Review and dismissed the Review Petition. - 2009-TIOL-117-SC-ST

 

You will remember that in Indian National Shipowners Association – 2008-TIOL-633-HC-MUM-ST the Bombay High Court held that the tax is payable only from 18.04.2006 and this decision had been widely followed.

But the litigation loving government does not keep quiet. It has filed a Special Leave Petition in the Supreme Court against the Bombay High Court judgement.

Yesterday the Supreme Court dismissed the SLP and in tune with TIOL tradition – we are the first to bring you this news.  

Kind regards,

 Rebecca Andrews

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New Perquisite Rules Notified dated: 18.12.09

THE much-awaited perquisite valuation rules have finally been notified by the CBDT. The Board has amended Rule 3 to give effect to the abolition of FBT, announced in the Budget 2009. Vide Income Tax (13th) Amendment Rules, the Board has notified the new valuation guidelines w.e.f April 1, 2009 for the AY 2010-11.

You can Download this notification click here:http://www.box.net/shared/8oqh6xp1oh

INCOME-TAX (THIRTEENTH AMENDMENT) RULES, 2009 - SUBSTITUTION OF RULE 3 AND INSERTION OF RULE 40F

Notification No. 94/2009/F.NO. 142/25/2009-SO (TPL), dated 18-12-2009

In exercise of the powers conferred by section 295 read with sub-section (2) of section 17 of the Income-tax Act, (43 of 1961). The Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namlely :-

(1) These rules may be called the Income-tax (13th Amendment) Rules, 2009.
(2) They shall be deemed to have come into force on the 1st day of April, 2009.

In the Income-tax Rules, 1962, for rule 3, the following shall be substituted, namely: -


"3. For the purpose of computing the income chargeable under the head "Salaries", the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules, namely:—

(1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table below:

HELP: Soon Starting Blog specially devoted to CA,CS,ICWAI students.

Friends,

Some of the goods news.

1.Our blog www.taxpertindia.blogspot.com formerly know as www.taxmannindia.blogpsot.com has now touched the visitor mark of  27,000 visitors.

2.Our google group "ca_taxmannindia" has now more than 900 members.

3.Our SMS group "ca_taxmannindia" has now more than 400 members.

And also starting soon an exclusive blog devoted to CA,CS,ICWAI students

(As many suggestions and comments were received from students for a blog were all kinds of details, suggested answer papers, Mock test papers and so on would be provided.)

I REQUEST ALL MY CA,CS,ICWAI FRIENDS TO HELP US TO CREATE A DATABASE PROVIDING SUGGESTED ANSWER PAPERS OR ANY ARTICLES ETC

SO I REQUEST YOU TO CONTRIBUTE 

TO CONTRIBUTE US MAIL US AT :taxpertindia@gmail.com

WE NEED

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2.ANY KIND OF NOTES FOR (CA.CS AND ICWAI STUDENTS)

3.FORMULAE SET FOR PRACTICAL SUBJECTS OF (CA.CS AND ICWAI STUDENTS)

4.OR ANY KIND OF THINGS WHICH YOU THINK WHICH MAY HELP STUDENTS.

SO HELP US TO CREATE AN ONLINE LIBRARY WHERE ALL KIND OF THINGS WHICH A STUDENTS NEED IS PROVIDED.

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Thanks & regards

From the Desk of:DHAVAL DESAI

Taxpertindia Team

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MCA:~MKT. RESEARCH N ANALYSIS unit in Serious Fraud Investigation Office

Press Information Bureau Government of India

Thursday, December 10, 2009
	Ministry of Corporate Affairs
	MARKET RESEARCH AND ANALYSIS UNIT IN THE SERIOUS FRAUD INVESTIGATION OFFICE
	15:17 IST
	LOK SABHA                                     The Government has set up a Market Research and Analysis Unit in the Serious Fraud Investigation Office with the objective of improvements in the regulatory system in Corporate Sector. Giving this information in the Lok Sabha today Shri Salman Khurshid, Minister of Corporate Affairs said the unit will inter-alia perform following main functions: (i)         Repository of Information                         To collect information from various sources including media, other investigating agencies, employees, investors, deposit holders, banks, financial institutions etc. and analyse the trends. (ii)         Improving investigation skills             To analyse all the completed investigation cases to see if investigation process was followed in letter and spirit.  Any deviation and its resultant effect on the outcome of investigation would be brought out to form a base for further improvement in investigation skills. (iii)        Inputs for adopting best international practices             To study investigation cases carried out by the investigation departments of the respective agencies in other countries to analyse the procedure and systems followed in those countries. Investigation modules based on best international practices shall be developed by the Unit for guiding cases of investigation. (iv)        Coordination with other investigative agencies             To co-ordinate with other investigative agencies on continuous basis to collect the requisite information on managerial and corporate behavior.  The information thus collected would be synthesised with the information collected through media and the data gathered from MCA-21 project.  This information bank can be used to throw early alerts on deviation from the legally accepted behavior of the corporate entities. -----------------------------------------               KKP/ska

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NON-BANKING FINANCIAL COMPANIES (Frequently Asked Questions)

 To download this file click here:http://www.mediafire.com/file/3ojjyzjjmlm/NBFCpart1.pdf
 

Frequently Asked Questions on NBFCs

QUES -1   What is a Non-Banking Financial Company (NBFC)?

ANS -1  A Non-Banking Financial Company (NBFC) is a  company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).

QUES 2.  NBFCs are doing functions similar to banks. What is difference between banks & NBFCs ?

ANS 2. NBFCs are doing functions akin to that of banks; however there are a few differences:

(i) an NBFC cannot accept demand deposits;

(ii) an NBFC is not a part of the payment and settlement system and as such an NBFC cannot issue cheques drawn on itself; and

 (iii) deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors unlike in case of banks. 
  

Import & export rate for the month of December (Issued by custom authorities)

Just click the below mentioned link to download the notification:
http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2k9/csnt174-2k9.htm

Reversal of cenvat credit on WIP/ finished goods written off in the books of accounts -reg

Circular No. 907/27/2009-CX


F.No.267/141/2009-CX8
Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)

New Delhi, dated the 7th December, 2009.

To,

All Chief Commissioners of Central Excise (including LTU),
All Commissioners of Central Excise (including LTU),
All Director Generals.

Sir/ Madam,

Subject: Clarification on issues related to reversal of cenvat credit on WIP/ finished goods written off in the books of accounts -reg.

References have been received from field formations stating that as per Rule 3(5B) of CENVAT Credit Rules, 2004, if the value of inputs is fully written off, then the manufacture is required to pay an amount equal to cenvat credit taken. However, there is no provision to demand reversal of credit taken on inputs which have gone into manufacture of work in progress (WIP), semi finished goods and finished goods which have also been written off fully in the books of accounts.

Scope for making addition on a/c of disallowance of expenditure u/s 40(a) in a case where assessee follows ‘completed contract method’: ITAT MUMBAI, BENCH ‘J’

Scope for making addition on a/c of disallowance of expenditure u/s 40(a) in a case where assessee follows ‘completed contract method’
The correct procedure in “completed contract method” is that instead of making addition, if some expenditure are found to be not allowable, the AO should correct the amount of work-in-progress by reducing or enhancing work-in-progress as the case may be


ITAT MUMBAI, BENCH ‘J’

Savala Associates

v.

ITO

ITA No. 4441/M/2008

October 27, 2009

RELEVANT EXTRACTS:

** ** ** ** ** ** ** ** ** ** ** **

6.1 On plain reading of above section, we find that certain expenditures are not allowable if the assessee failed to deduct tax or after deduction same was not paid in time. However, such expenditures are allowable Provided that where in respect of any such sum. Tax has been deducted in any subsequent year, or has been deducted—

Change of method of accounting of overdue charges from mercantile basis to cash system does not create any income : HIGH COURT OF MADRAS

Change of method of accounting of overdue charges from mercantile basis to cash system does not create any income

HIGH COURT OF MADRAS

CIT

v.

Annamalai Finance Ltd.

TAX CASE (APPEAL) NO. 1087 OF 2009

NOVEMBER 2, 2009

RELEVANT EXTRACTS :

** ** ** ** ** **
In the instant case, learned counsel for the Revenue is not in a position to demonstrate or satisfy us that due to the change of accounting method adopted by the respondent/assessee, which is permissible in law as per the ratio laid down in (i) CIT v. Matchwell Electricals (I.) Ltd. (2003)263 ITR 227 (Bom) and (ii) Hela Holdings Pvt. Ltd. v. CIT (2003) 263 ITR 129 (Cal), the Revenue suffered any loss or such a change of methodology attracts tax evasion. Concededly, there is no finding to that effect in the assessment order or in the order of the Commissioner of Income-tax (Appeals).

Set off of long term capital loss with indexation against long term capital gains without indexation is allowable ITAT, MUMBAI BENCH ‘B’

Set off of long term capital loss with indexation against long term capital gains without indexation is allowable
ITAT, MUMBAI BENCH ‘B’, MUMBAI
 
Keshav S. Phansalkar

v.

ITO

ITA NO. 3261/MUM/2007

JUNE 3, 2009

RELEVANT EXTRACTS :

** ** ** ** ** **

8. Section 70(3) of the Act postulates that for any assessment year where there is a loss in respect of long term capital asset, the asscssee shall be entitled to have the amount of such loss set off against the income, if any fas arrived at under a similar computation) made for the assessment year in respect of any other long term capital asset. Section 112 of the Act provides for tax on long term capital gains. Section 112 of the Act provides that where the total income of the assessee includes any income arising from the transfer of a long term capital asset, assessable under the head 'income from capital gains', the tax payable by the assessee on the total income shall be aggregate of the amount of income tax payable on the total income as reduced by the amount of such long term capital gains and the amount of income tax calculated on such long term capital gains @ 20% in the case of an individual / Hindu undivided family, being resident and domestic company and also in the case of nonresident, not being a company or foreign company and in any other cases. The proviso under section 112 of the Act reads as under:-

ITAT, DELHI BENCH ‘G’ Allowability of expenditure on modification and renovation of a building before commencement of business

Allowability of expenditure on modification and renovation of a building before commencement of business

Expenditure incurred on modification and renovation of a building before commencement of business is neither allowable under section 30(a)(ii) nor section 37.

ITAT, DELHI BENCH ‘G’, DELHI

Punj Hospitality Pvt. Ltd.
v.
ITO

ITA NO. 3425(Del) of 2009

OCTOBER 23, 2009

RELEVANT EXTRACTS :

** ** ** ** ** **

6. We have heard both the parties and gone through the material available on record. The assessee company was incorporated on 5th October. 2005 with the object to carry on business of restaurant and hotels etc. The company entered into agreement on 10th October. 2005 with M/s. Aggarwal Motels P. Ltd. [AHPLJ for a period of 18 months to manage and operate their AHPL business of hotel and bar which they were carrying on for the several years under the name and style as "Tavern on the Greens".

ITAT, MUMBAI BENCHES ‘E’,Establishment of identity of creditor, creditworthiness of creditor and genuineness of transaction

Establishment of identity of creditor, creditworthiness of creditor and genuineness of transaction


It would depend upon facts of each case whether all the three ingredients to discharge the onus to prove cash credit have been proved by the assessee or not; if an NRI, engaged in business of real estate development with substantial means, decided to invest in real estate in India, genuineness of same cannot be doubted unless there is any evidence to contrary.



ITAT, MUMBAI BENCHES ‘E’, MUMBAI (THIRD MEMBER)

Tulip Hotels Pvt. Ltd.

v.

DCIT

ITA Nos. 6490 & 6491/Mum/2008

November 27, 2009



RELEVANT EXTRACTS:

** ** ** ** ** ** ** ** ** ** ** **

5. I have carefully considered the argument of both the sides and perused the material placed before me. It is a settled law that the onus is upon the assessee to prove the cash credit in his books of account. To discharge such onus, the assessee has to prove – (i) the identity of the creditor, (ii) the creditworthiness of the creditor, and (iii) genuineness of transaction. It would depend upon facts of each case whether all the above three ingredients to discharge the onus have been proved by the assessee or not.

Change of Examination Centre in Mumbai - CPT December-2009 - (01-12-2009)

Sub: Change of Examination Centre in MUMBAI

This is to inform that due to unavoidable circumstances the Examination Centre for Common Proficiency Test –December-2009 is changed in respect of candidates who have been allotted Roll Nos.: 114112 to 114311 at H & GHM Institute of Management , Smt. CHM College Campus , Opp. Ulhas Nagar Railway Station , Ulhasnagar , Mumbai-421003 to:

Birla College of Arts, Science & Commerce
Birla College Road( Murbad Road)
Kalyan ( West)
Distt. THANE-421301


In view of the above , the concerned candidates are requested to kindly note the above change in the Examination Centre and the address of the new Examination Centre.

Inconvenience caused in the matter is regretted.

( G. Somasekhar)
Addl. Secretary(Exams)