SERVICE TAX (FIFTH AMENDMENT) RULES, 2012

SERVICE TAX (FIFTH AMENDMENT) RULES, 2012 - AMENDMENT IN FORM ST-1 AND INSERTION OF ANNEXURE AFTER ACKNOWLEDGEMENT

NOTIFICATION NO. 48/2012-ST [F.NO. 137/22/2012-ST]/GSR 858 (E), DATED 5-12-2012

https://docs.google.com/document/d/18MHqe39ubPBR9xQ5scmRYFVz5aYwIZadFN0twPqhyhc/edit

 

RESTORATION OF SERVICE SPECIFIC ACCOUNTING CODES FOR PAYMENT OF SERVICE TAX

https://docs.google.com/document/d/17trD6uprlbkKsD3nd1OFtAdXuJNtBV5hUnomwfNvjPI/edit

CBEC extends the date of submission of the return

Notification No. 47/2012-ST dt. 28-09-2012

The Form ‘ST-3’ required to be submitted by the 25^th day of October, 2012 shall cover the period between 1^st April  to 30^th June, 2012 only.

http://www.servicetax.gov.in/st-notfns-home.htm

Cost Inflation Index for Financial Year 2012-13

Cost Inflation Index for Financial Year 2012-13 has been Notified by CBDT. 

Cost Inflation Index is 852. 

Notification No. 79/2012-CUSTOMS (N. T.)

The Central Board of Excise & Customs, has made an amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3^rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3^rd August, 2001.

http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/csnt79-2012.htm

INCOME TAX - Advance Pricing Agreement Scheme

[NOTIFICATION NO. 36/2012 [F.NO.133/5/2012-SO (TPL)]/SO 2005(E), DATED 30-8-2012

http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=NOTF&schT=&csId=d02e1718-2c48-4f0c-b511-ee959fd967ec&NtN=&yr=ALL&sec=&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

BUNDLED SERVICES- Principles of Interpretation of Specified Description of Services

Concept of negative list was introduced with an idea to do away with the issue of classification of services under different service classification headings. However the presence of the various services by virtue of negative list concept has not done justice with the idea of do away with the issue of classification of services under different service classification headings. The Finance Act lays down the principles of interpretation of specified descriptions of services and bundled services which provides the mechanism to determine the classification of bundled services.

https://docs.google.com/open?id=0B3dVi3eBp2ZCVDRqZFhTUHVrcms

Clarification in respect of levy of service tax on certain vocational education/training/ skill development courses

http://www.servicetax.gov.in/circular/st-circular12/st-circ-164-2012.htm

Relaxation from compulsory e-filing of return of income for assessment year 2012- 13 - for representative assesses of non-residents and in the case of private discretionary trusts

http://www.incometaxindia.gov.in/archive/PressRelease_Efiling_31072012.pdf

Important amendments in TDS provisions effective from first quarter of the financial year 2012-13

https://docs.google.com/open?id=0B3dVi3eBp2ZCZmowZUI1LWdzeGc

IFRS : Conversion Challenges and Implementation Approach for Banks in India

https://docs.google.com/open?id=0B3dVi3eBp2ZCVkJSM0doMS1yOXc

SECTION 92 OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING

SECTION 92 OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE - NOTIFIED PERCENTAGE UNDER SECOND PROVISO TO SECTION 92C(2)

NOTIFICATION NO. 31/2012 [F.NO. 500/185/2011-FTD I], DATED 17-8-2012

In exercise of the powers conferred by the second proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that where the variation between the arm's length price determined under section 92C and the price at which the international transaction has actually been undertaken does not exceed five per cent of the latter, the price at which the international transaction has actually been undertaken shall be deemed to be the arm's length price for assessment year 2012-13.

INCREASE IN REMUNERATION OF NON WHOLE TIME DIRECTORS DUE TO APPLICABILITY OF SERVICE TAX PROVISIONS - approval of Central Government under section 309/310 of the Companies Act not required.

General Circular No.24/2012
Dated 9^th August 2012

Sub: Applicability of Service Tax on Commission payable to Non-Whole Time Directors of a Company under section 309(4) of the Companies Act, 1956 – approval of Central Government under section 309/310 of the Companies Act – regarding

The finance Act 2012 has introduced Service Tax which is applicable to anyone who provides a Service not covered under the negative /exempted list and if the value of annual revenue is more than 10 lakh. The Non-whole Time Directors of the Company are presently not covered under the exempted list and as such, the sitting fee/ commission payable to them by the company is liable to Service Tax.

If such Service Tax is paid by the Company it will be deemed to be a part of remuneration under section 198 of the Act and would accordingly increase the remuneration amount of such Non Whole Time Directors. This remuneration could then exceed the limit of 1% profit [u/s 309(4)] of the Company when   the Company has a Managing / Whole Time Directors / Managers or 3% of the profit [u/s 309(4)] of the company if the Company does not have a Managing / Whole Time Directors / Managers as the case may be. As per existing provisions of the Companies Act, 1956, this would require prior approval of Central Government u/s 309/310 of the Act.

It has now been decided that any increase in remuneration of Non- Whole Time Director(s) of a Company solely on account of payment of service tax on commission payable to them by the Company, as the case may be shall not require approval of Central Government under Section 309 and 310 of the Companies Act even if it exceeds the limit 1% or 3% of the profit [u/s 309(4)] of the Company, as the case may be, in the financial year 2012-13    

PASS THE BUCK

Reverse Charge Mechanism under Service Tax in the light of Notification no. 30/2012 ST,dated 20th June, 2012, Notification no. 45/2012 ST and 46/2012 ST, dated 7th August, 2012.

https://docs.google.com/open?id=0B3dVi3eBp2ZCZUJpeFR5M0xKN0U

SERVICE TAX UPDATE

Central Government has amended the following service tax notification nos. 

1. 25/2012-Service Tax, dated the 20^th June,2012, vide notification no. 44/2012 - Service Tax,   dated 7^th August, 2012; and
2. 30/2012-Service Tax, dated the 20^th June,2012, vide notification no. 45/2012 - Service Tax, dated 7^th August, 2012. 

Further the Central Government has amended the Service Tax Rules, 1994, vide notification no. 46/2012 - Service Tax, dated 7^th August, 2012.  

CENTRAL EXCISE LAW AND PROCEDURE - for removal of goods as supply under warranty claims/ free samples and goods brought in for repairs

LIST OF SUPERINTENDENTS AND INSPECTORS

Pursuant to issuance of Trade Notice No.4/2012, Dated 30/7/2012, the List of Superintendents and Inspectors posted to their respective Service Tax, Surat- I Commissionerate.

https://docs.google.com/presentation/d/1cUObbrAh1RgslqTsNaISLWhnFWhTjDCx82UemncyRQI/edit#slide=id.p

REORGANIZATION OF SERVICE TAX FORMATIONS IN SURAT-1 COMMISSIONERATE

 TRADE NOTICE NO.04/2012, DATED 30-07-2012

With the implementation of new system of ‘Negative List’ of taxation in Service Tax, the Service Tax formations in the Surat- 1 Commissionerate are being re-organized, and the existing practice discontinued. The earlier set-up of Service wise Groups is being replaced by territorial administration of the Service Tax. The new Service Tax Units having Geographical/ Territorial jurisdiction similar to that of corresponding Central Excise Ranges are being formed under the respective Central Excise Divisions. Thus, the five Central Excise Divisions would, in addition to the existing Central Excise Ranges, would have equal number of Service Tax units (STUs) having its jurisdiction similar to that of corresponding Central Excise Ranges. The Divisional Deputy/ Assistant Commissioner, Central Excise will supervise the Service Tax (STUs) in their respective jurisdictions and will work under Additional Commissioner (Service Tax) so far as Service Tax matters are concerned. 

https://docs.google.com/presentation/d/1cXGSmxq6q2-qLq2h75NlcH9NromDt4Zf9CJjQwdxfJU/edit#slide=id.p

DUE DATE OF INCOME TAX RETURN FILING EXTENDED TO 31ST AUGUST 2012 FOR AY 2012-2013

The 'due date' of filing of returns of income for the Assessment Year 2012-13 to 31st August 2012 in respect of assessees who are liable to file such returns by 31st July 2012 as per provisions of section 139 of Income Tax Act, 1961.

Read more
http://www.incometaxindia.gov.in/archive/BreakingNews_Section119_31072012.pdf

Rate of exchange of one unit of foreign currency equivalent to Indian rupees

http://www.cbec.gov.in/customs/cs-act/notifications/notfns-2012/cs-nt2012/csnt61en-2k12.pdf

EXEMPTION OF SALARIED EMPLOYEES FROM REQUIREMENT OF FILING OF RETURNS FOR ASSESSMENT YEAR 2012-13

PRESS RELEASE [NO. 402/92/2006-MC (15 OF 2012)], DATED 20-7-2012

NOTHING IS CERTAIN BUT DEATH AND TAXES

The topic deals with the tax liability after death of an individual. Unlike normal circumstances there may be certain circumstances under which it may not be possible to either impose or collect tax from a person such cases are governed by Chapter XV of the Income Tax Act, 1961 which lays down the liability of various persons who may be liable to tax on such incomes.

FLOW CHARTS ON POINT OF TAXATION

 Point of Taxation means the point of time with respect to which the payment of service tax to the Government account is due. Rule 2(e) of the Point of Taxation, 2011 defines "Point of Taxation" means the point in time when a service shall be deemed to have been provided. For better understanding of Rules 3,4,5 and 7, provisions of the respective rules are presented in flowchart.

https://docs.google.com/presentation/d/1CHweF4ScNPGBSc7KsQDu1Qy-6o9Wm7PRj-G9Yq2nuMc/edit?pli=1#slide=id.p

ACCOUNTING CODE FOR PAYMENT OF SERVICE TAX UNDER THE NEGATIVE LIST APPROACH TO THE TAXATION OF SERVICES

On 06/07/2012, CBEC has issued a circular no. 161/12/2012 -ST,  regarding Accounting Code for payment of service tax under the Negative List approach to taxation of services, with effect from the first day of July 2012

Negative List based comprehensive approach to taxation of services came into effect from the first day of July, 2012. For payment of service tax under the new approach, a new Minor Head - ‘All taxable Services’ has been allotted under the Major Head “0044-Service Tax”.

Accounting codes for the purpose of payment of service tax under the Negative List approach, with effect from 1^st July, 2012 is as follows:

Name of Services	Accounting codes
	Tax collection	Other Receipts	Penalties	Deduct refunds
All Taxable Services	00441089	00441090	00441093	00441094

NOTE: (i) service specific accounting codes will  also continue to operate, side by side, for accounting of service tax  pertaining to the past period (meaning, for the period prior to 1^st July, 2012); (ii) Primary Education Cess on all taxable services will be booked under 00440298 and Secondary and Higher Education Cess on all taxable services will be booked under 00440426; (iii) a new sub-head has been created for payment of “penalty”; the sub-head “other receipts” is meant only for payment of interest etc. leviable on delayed payment of service tax; (iv) the sub-head “deduct refunds” is not to be used by the assessees, as it is meant for use by the Revenue/Commissionerates while allowing refund of tax.


http://www.servicetax.gov.in/st-circulars-home.htm

INCOME-TAX (SEVENTH AMENDMENT) RULES, 2012 - AMENDMENT IN RULE 12 AND SUBSTITUTION OF FORMS ITR-5 AND ITR-6

NOTIFICATION NO.25/2012 [F.NO.142/31/2011 -TPL]/S.O. 1453(E), DATED 2-7-2012

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (7th Amendment) Rules, 2012.

(2) They shall come into force from the date of its publication in the Official Gazette.

2. In the Income-tax Rules, 1962,-

(A)  in rule 12,–

 (i)  in sub-rule (1),-

(a) in the proviso to clause (a), for the words "being an individual, who is a resident," the following words, brackets and figures shall be substituted, namely:-

"who is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6";

(b)  in the proviso to clause (ca), for the words "being an individual or Hindu undivided family, who is a resident," the following words, brackets and figures shall be substituted, namely:-

"who is a resident, other than not ordinarily resident in India within the meaning of sub-section (6) of section 6";

 (ii)  in sub-rule (3), in the proviso, in clause (aa) after the words "being a resident," the words, brackets and figures "other than not ordinarily resident in India within the meaning of sub-section (6) of section 6" shall be inserted;

(B)  in Appendix-II,

 (i)  for Forms ITR-5, the following shall be substituted, namely:-

 (ii)  for Form ITR-6, the following shall be substituted, namely:-

"Forms ITR-5 and ITR-6 have been separately attached"

Export of Goods and Services

RBI has issued a Master Circular No. 14/2012-13 on Export of Goods and Services.Export of Goods and Services from India is allowed in terms of clause (a) of sub-section (1) and sub-section (3) of Section 7 of the Foreign Exchange Management Act 1999 (42 of 1999), read with Notification No. G.S.R. 381(E) dated May 3, 2000 viz. Foreign Exchange Management (Current Account) Rules, 2000, as amended from time to time.
This Master Circular consolidates the existing instructions on the subject of "Export of Goods and Services from India" at one place.
This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 01, 2013 and be replaced by an updated Master Circular on the subject.
Full text of the Master Circular No.14/2012 can be obtained from: http://rbidocs.rbi.org.in/rdocs/content/pdfs/14ME010212F_A.pdf

RELIEF TO EXPORTER OF GOODS FROM SERVICE TAX

CBEC vide Notification No. 42, dated 29/06/2012, has granted exemption of specified taxable services received by an exporter of goods and used for export of goods  from payment of service tax subject to certain specified conditions and to the extent specified therein. 

RELIEF TO EXPORTER OF GOODS FROM SERVICE TAX

CBEC vide Notification No. 41, dated 29/06/2012, has granted rebate of service tax paid on the taxable services utilized by an exporter of goods for export.

1st July, 2012

Happy Chartered Accountants Day

CA. Vinay Kaushik

I will win...

I would like to start by discussing the theme “Commitment made at an age of 13 and today I am a  Chartered Accountant”.