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