ICAI Recommendations on Goods & Services Tax |
| The Institute of Chartered Accountants of India Summary of Recommendations on Goods and Services Tax (GST) in India |
| 1. Warm Welcome to the proposal to introduce GST. 2. Dual GST is the most acceptable method at present. 3. Both the laws should be common and be administered by a common authority. 4. All amendments in the GST should be approved by a governing body like EC. |
State Govt in AP hikes VAT Rate to 14.5% |
| The State Government has increased the VAT rate to 14.5 from 12.5 per cent. Issuing a government order here, Mr Asutosh Mishra, Principal Secretary (Revenue), said the change would be indicated in the gazette in the next three days. |
I-T Department warns against fake e-mails |
| The I-T department has asked tax payers not to give out personal details like Permanent Account Number and information about their credit cards on the Internet. For, fake e-mails are hitting the users’ inboxes. Viewing with concern the spurt in fictitious and unauthorised e-mails landing in personal Internet addresses of many people, the department is adding a word of ‘caution’ at the end of each mail sent by them. |
Counting of Votes to Central India Regional Constituency |
| FOR ATTENTION OF ALL CANDIDATES FOR ELECTION TO THE 21ST COUNCIL FROM THE CENTRAL INDIA REGIONAL CONSTITUENCY Pursuant to the Orders dated 13th January, 2010 of the Hon’ble High Court of Judicature for Rajasthan at Jaipur, the counting of votes, pertaining to the 21st Council from Central India Regional Constituency shall be held at 11.00 A.M. on 18th January, 2010 in the premises of the Institute at ICAI Bhawan, Indraprastha Marg, New Delhi – 110 002. |
CBDT plans to Introduce a System to Increase Transparency |
| Individuals as well as corporates may have fewer occasions to meet the taxmen in future. The Central Board of Direct Taxes (CBDT) is thinking of putting in place a system in which taxpayers do not meet the assessing officer or any tax official for routine assessments. In the system being envisaged by the country’s tax regime, the tax payer would not know who his assessing officer is. |
Builders Const. Malls for Commercial Purposes cannot Claim Benefit |
| Builders constructing malls for commercial purposes cannot claim any benefit under the Consumer Protection Act, the Delhi State Consumer Commission has said. The company, Saraf Projects Private Limited (SPPL), approached the Commission seeking directions to Shanti Construction Company (SCC) to pay compensation for mental trauma caused due to defective construction work. |
Tax Sops on Donations |
| Inspite of all the contributions made to social causes, there is a huge gap between the demand of money from the needy and the amount donated by philanthropists. This probably, is the reason why the Government has given tax benefits on donations. The amount donated towards charity attracts deduction under section 80G of the Income Tax Act. |
New Perquisite Rules – Amendment to Rule 3 |
| A Corrigendum to the The Income-tax (13th Amendment) Rules, 2009 was notified on 12th January 2010. Notification No. 2/2010 [F.NO.142/25/2009-SO(TPL)], dated 12-1-2010 |
GST – Still a Long Way to Go |
| The much publicised deadline of 1st. April 2010 for introduction of Goods and service tax in India is coming very near but now it is clear from the statements of concerned law makers that the they are not ready for meeting this deadline and further not able to declare the exact future date for this purpose and this gives a clear indication that the way ahead for GST, the much awaited reform of indirect taxation, is not very smooth and still a long way to go to achieve the desired. |
Rajasthan HC has Vacated the Stay Order for Results declaration |
| Rajasthan High Court Has Vacated the Stay Order for declaration of Council Results. Rajasthan High Court directed to recount votes after considering the postal ballots.The notification on the declaration of results in respect of election to the 21st Council is withheld arising out of the Stay granted by the Honourable High Court of Judicature for Rajasthan, Jaipur Bench, Jaipur vide its Orders dated 5.1.2010 in Civil Writ Petitions Nos. 157/2010 and 158/2010. Further announcement in respect of… |
Standard on Internal Audit – (SIA) 17 |
| In terms of the decision taken by the Council of the Institute at its 260 th meeting held in June 2006, the following Standard on Internal Audit shall be recommendatory in nature in the initial period. The Standard shall become mandatory from such date as may be notified by the Council in this regard. |
Convergence of Indian Accounting Standards with IFRS |
| The government plans to introduce a bill to amend the Companies Act in the budget session of parliament to enable convergence of Indian accounting standards with the International Financial Reporting Standards (IFRS). “The ministry will carry out the exercise for necessary amendments in the Companies Act in the forthcoming budget session of parliament,” said a statement from the corporate affairs ministry. |
VAT on Expensive Mobile Phones & Fountain Pens |
| For the first time staring at a shortfall in value added tax (VAT) collection, the state finance department is exploring the option of charging higher VAT on expensive mobile phones and fountain pens. According to the initial proposal, pens priced above Rs 5,000 and mobile phones costing more than Rs 10,000 may come with a 12.5% VAT tag rather than the present 4%. Explained a senior finance department official: |
IT Gearing up to Tax Bonus Stripping |
| After taxing investors for dividend stripping, the Income Tax Department is gearing up to tax bonus stripping. Official sources say scrutiny of returns filed by companies, brokers and individuals active in the stock markets and in possession of shares revealed wide use of this mechanism to evade tax. |
What is GST? |
| As the proposed date April 2010 is approaching fast and if the news reports are to be believed, we may have GST around October 2010. Hence, its just matter of few months before GST becomes a reality. The following paras demystify GST in Question & Answer format. |
CBDT to Formulate Rules on acceptance of TP Returns without Scrutiny |
| CBDT has set up a committee to formulate rules for the safe harbour provisions to accept the transfer pricing returns without scrutiny. Transfer pricing refers to the price at which one arm of a company, usually a multinational corporation, transfer goods or services to another division of the same organisation in order to calculate each arm’s profit and loss separately. |
GST deadline may be Missed, Pranab to meet State FM’s on 13th Jan |
| Finance Minister Pranab Mukherjee may meet state finance ministers this week to discuss their requirements and implementation of proposed Goods and Services Tax, speculated to be delayed by over six months, is likely to be discussed during the meeting. “Finance Minister will meet state finance Ministers on January 13 as a pre-budget exercise,” an official said. |
Valuation of Perquisites in case of Motor Car |
| In terms Notification No. 94/2009/ F.No.142/25/2009-S O (TPL), dated 18-12-2009, for the purpose of computing the income chargeable under the head Salaries with effect from 1st April 2009, the value of perquisites in case of Motor Car has been summarised as follows:- 1. Where the motor car is owned or hired by the employer 2. Where the employee owns the vehicle and the actual running and maintenance charges are met or reimbursed to him by the employer |
Introduction of Stock-in-Trade as Capital Attracts Sec. 45(3) |
| DLF Universal vs. DCIT The assessee was engaged in the business of real estate development. It held land as stock in trade with a book value of Rs. 4.4 crs. The said land was introduced at its market value of Rs. 11.50 crs as capital contribution into a new firm. The surplus of Rs. 6.01 crore was credited to the profit and loss account. It was also claimed that s. 45 (3) was applicable only to capital assets and not to stock-in-trade. The AO and the CIT (A) took a contrary view. On appeal by… |
Union Budget for 2010-11 likely on February 26 |
| The Union budget for 2010-11 is likely to be presented on February 26, two days ahead of the conventional date. The annual budget date is being advanced from the normal practice of being presented on February 28, because February 27 is a government holiday on account of Prophet Mohammad’s birthday and February 28 being a Sunday. |
FM Directs I-T Dept to achieve Direct Tax Target |
| Finance Minister Pranab Mukherjee today directed the Income Tax Department to make all efforts to achieve the revised direct tax target of Rs 4 lakh crore to contain the critical parameters of the economy, especially when there was slippage in indirect tax collections. The role of TDS Directorates and Commissionerates is crucial for widening as well deepening of the tax base. |
Your Income Tax Refund Status |
| You can now any time check your Income Tax Refund Status on-line by entering your Permanent Account Number and Assessment Year for which status of refund is to be tracked. Just follow these simple steps…… |
Find your PAN, TAN, Service Tax Number |
| To know your PAN, TAN, Service Tax Number click the links: |
