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C.S.P. Jain & Co.'s new online accounting practice!

We're thrilled to announce the launch of our new interactive 'web practice' at [web address], where we can now provide you with additional services. Our aim is to make better use of your time and keep you up to date on matters affecting your business and family life.

In addition, our web practice offers you interactive services.

Key Dates Tax Facts Calculators

You can keep up to date with important accounting and business dates and deadlines. More...

Key Dates

The Tax Facts section where you can learn more about tax requirements within Australia. More...

Tax Facts

Try out our new online calculators. More...

Calculators

Perhaps you run out of time during normal business hours to call us for an appointment...why not schedule an appointment using our special online form? You can access this form any time of the day or night and with the easy to follow instructions, you'll find it a quick and simple way to request an appointment time. Click here to book an appointment.

As we respond to feedback from you and our other clients, we will continue to add further information and interactive services to our website.

If you have any questions, comments, suggestions, please don't hesitate to contact us at any time. We look forward to hearing from you.

Kind Regards

The Team
C.S.P. Jain & Co. 
[web address]

PS. If there are other people you know who would like to subscribe to this newsletter, they can sign up by visiting our website by clicking here.

Update on Service Tax.

Modifications in Service Tax registraton ST 1 and ST 2 and New Accounting Codes :

1. New Registrants: In terms of Notification No 48/2012 dated 30.11.12 , Service Tax Registration Application Form (ST-1) has been modified and is available in ACES for use by the new applicants seeking registration as a Service Tax assessee.Earlier, vide Notification No 19/2012 dated 5.6.12 effective from 01.07.2012,the negative list of services was introduced and accordingly, applicants seeking registration as a Service Tax assessee were required to register under the service category 'All Taxable Services Other than in the Negative List' . In terms of the Circular No165/16/2012 ST dated 20-11-2012 , issued by CBEC, the pre-July system of service-wise registration has been restored by CBEC for statistical purposes only. New applicants are now required to indicate the service(s) from out of the 120 categories listed in the aforesaid Circular. Further, Service-wise Accounting Codes have also been allotted for payment of tax, other receipt-interest and penalty. Henceforth, the Service Tax Registration Certificate (ST 2) will display the list of services for which the assessee is registered along with the new Accounting Codes.

 
2. Existing registrants: Those assessees, who had registered with the department after 01.07.2012 under the 'Other than in the Negative List' (OTNL) category should amend the taxable service details now and opt for relevant description/s from the list of 120 services. After approval by the departmental officer, a new Registration Certificate(ST2) will be issued online displaying the list of services chosen by the assessee along with the new Accounting Codes. The existing registration number will, however, remain unchanged. 
3. Pending amendment applications: Applications which have been filed and are pending for changing the description of services to OTNL category will be rejected by the departmental officers in view of the above mentioned circular. However, if the assessee has added or dropped any service, he should file amendment application to add/delete the relevant service.
 
4. If you need further clarification, please contact ACES Service Desk by sending e-mail toaces.servicedesk@icegate.gov.in or calling up national toll-free number 1800 425 4251 on any working day from Monday to Friday between 9 AM and 7 PM.

C.S.P. Jain & Co.'s - Servunity eServe new online accounting practice!

Section 197A of the income-tax Act, 1961 - Deduction of tax at source - no deduction in certain cases - Specified payment under section 197A(1f)

NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED 31-12-2012

In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified below, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), excluding a foreign bank, namely:-

(i) bank guarantee commission;

(ii) cash management service charges;

(iii) depository charges on maintenance of DEMAT accounts;

(iv) charges for warehousing services for commodities;

(v) underwriting service charges;

(vi) clearing charges (MICR charges);

(vii) credit card or debit card commission for transaction between the merchant establishment and acquirer bank.

2. This notification shall come into force from the Ist day of January, 2013.

Section 197A of the income-tax Act, 1961 - Deduction of tax at source - no deduction in certain cases - Specified payment under section 197A(1f)

NOTIFICATION NO. 56/2012 [F. NO. 275/53/2012-IT(B)], DATED 31-12-2012

In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax under Chapter XVII of the said Act shall be made on the payments of the nature specified below, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), excluding a foreign bank, namely:-

(i) bank guarantee commission;

(ii) cash management service charges;

(iii) depository charges on maintenance of DEMAT accounts;

(iv) charges for warehousing services for commodities;

(v) underwriting service charges;

(vi) clearing charges (MICR charges);

(vii) credit card or debit card commission for transaction between the merchant establishment and acquirer bank.

2. This notification shall come into force from the Ist day of January, 2013.

     -----x-----               -----------x-----------                 -----x----

our web www.servunity.in offers you interactive services.

Key Dates Tax Facts Calculators

You can keep up to date with important accounting and business dates and deadlines. More...

Key Dates

The Tax Facts section where you can learn more about tax requirements within Australia. More...

Tax Facts

Try out our new online calculators. More...

Calculators


Kind Regards

The Team
C.S.P. Jain & Co. 
Servunity eServe
[web address]


Pongal & Makar Sankaranti Greetings

Tax Information Network

of Income Tax Department

at
#60, N.S.C.Bose Road, 1st Fl., Sowcarpet, Chennai-79
is
working on 14th & 15th January 2013.

Request all, to make the most and file their eTDS Q3 returns withing the said due date....

for more please free to contact us at 25355320 / 9445099527 / 9444053520

Will be happy to assist you in compling with Tax related issues.

warm regards

Vikas Suranaa
Servunity Financial Solutions
www.servunity.in
www.investnrelax.com



INCOME-TAX (SECOND AMENDMENT) RULES, 2013 -
AMENDMENT IN RULES 31A & 31AA; SUBSTITUTION OF RULES
31ACB, 37J AND FORM NOS.15G, 15H, 16, 16A, 24Q, 26Q, 27C, 27D, 27Q & 27EQ AND INSERTION OF FORM NO. 26B

NOTIFICATION NO. 11/2013[F.NO.142/31/2012-SO(TPL)]/SO 410(E), DATED 19-2-2013

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 (2nd Amendment) Rules, 2013.

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

2. In the Income-tax Rules, 1962, (hereinafter referred to as the said rules) in rule 31A,-

(a) in sub-rule (3),-

(A) in clause (i), for item (b), the following items shall be substituted, namely:-

"(b) furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5);

(c) furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5)";

(B) in clause (ii), for the words, brackets and letters "item (b) of clause (i)", the words, brackets and letters "item (b) or item (c) of clause (i)" shall be substituted;

(C) in clause (iii), for the words, brackets and letters "item (b) of clause (i)", the words, brackets and letters "item (b) or item (c) of clause (i)" shall be substituted;

(b) after sub-rule (3), the following sub-rule shall be inserted, namely:-

"(3A) A claim for refund, for sum paid to the credit of the Central Government under Chapter XVII-B, shall be furnished by the deductor in Form 26B electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5).";

(c) in sub-rule (4), after clause (vii), the following clause shall be inserted, namely:-

"(viii) furnish particulars of amount paid or credited on which tax was not deducted in view of the notification issued under sub-section (1F) of section 197A.";

(d) for sub-rule (5), the following sub-rule shall be substituted, namely:-

"(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.".

3. in rule 31AA of the said rules,-

(a) in sub-rule (3),-

(A) in clause (i), for item (b), the following items shall be substituted, namely:-

"(b) furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5);

(c) furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5);";

(B) in clause (ii), for the words, brackets and letters "item (b) of clause (i)" the words, brackets and letters "item (b) or item (c) of clause (i)" shall be substituted;

(C) in clause (iii), for the words, brackets and letters "item (b) of clause (i)", the words, brackets and letters "item (b) or item (c) of clause (i)" shall be substituted;

(b) in sub-rule (4), after clause (iv), the following clause shall be inserted, namely:-

"(v) furnish particulars of amount received or debited on which tax was not collected in view of the furnishing of declaration under sub-section (1A) of section 206C by the buyer. ";

(c) for sub-rule (5), the following sub-rule shall be substituted, namely:-

"(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements in the manner so specified.".

4. For rule 31ACB of the said rules, the following rule shall be substituted, namely:-

"31ACB. Form for furnishing certificate of accountant under the first proviso to sub-section (1) of section 201.-(1) The certificate from an accountant under the first proviso to sub-section (1) of section 201 shall be furnished in Form 26A to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) in accordance with the procedures, formats and standards specified under sub-rule (2), and verified in accordance with the procedures, formats and standards specified under sub-rule (2).

(2) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the Form 26A and be responsible for the day-to-day administration in relation to furnishing and verification of the Form 26A in the manner so specified.".

5. For rule 37J of the said rules, the following rule shall be substituted, namely:-

"37J. Form for furnishing certificate of accountant under the first proviso to sub-section (6A) of section 206C.-(1) The certificate from an accountant under the first proviso to sub-section (6A) of section 206C shall be furnished in Form 27BA to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems) in accordance with the procedures, formats and standards specified under sub-rule (2) and verified in accordance with the procedures, formats and standards specified under sub-rule (2).

(2) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the Form 27BA and be responsible for the day-to-day administration in relation to furnishing and verification of the Form 27BA in the manner so specified.".

6. In Appendix-II of the said rules,-

(a) for Form No. 15G, the following Form shall be substituted, namely:-

FORM NO. 15G

[See section 197A(1), 197A(1A) and rule 29C]

Declaration under section 197A(1) and section 197A(1A) of the Income-tax Act, 1961 to be made by an individual or a person (not being a company or firm claiming certain receipts without deduction of tax

(b) for Form No. 15H, the following Form shall be substituted, namely:-

FORM NO. 15H

[See section 197A(1C) and rule 29C(1A)]

Declaration under section 197A(1C) of the Income-tax Act, 1961 to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax.

(c) for Form No. 16, the following Form shall be substituted, namely :-

FORM NO. 16

[See rule 31(1)(a)]

Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source on salary

(d) for Form No. 16A, the following Form shall be substituted, namely :-

FORM NO. 16A

[See rule 31(1)(b)]

Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source

(e) for Form No. 24Q, the following Form shall be substituted, namely :-

FORM NO. 24Q

[See section 192 and rule 31A]

Quarterly Statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act in respect of salary for the quarter ended .............. (June/September/December/March) ................. (Financial Year)

(f) after Form No. 26A, the following Form shall be inserted, namely :-

FORM NO. 26B

[See rule 31A(3A)]

Form to be filed by the deductor, if he claims refund of sum paid under Chapter XVII-B of the Income-tax Act, 1961

(g) for Form No. 26Q, the following Form shall be substituted, namely :-

FORM NO. 26Q

[See sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194-I, 194J, 194LA, and rule 31A]

Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act in respect of payments other than salary for the quarter ended ................. (June/September/December/March) .......... (Financial year)

(h) for Form No. 27C, the following Form shall be substituted, namely :-

FORM NO. 27C

[See rule 37C]

Declaration under sub-section (1A) of section 206C of the Income-tax Act, 1961 to be made by a buyer for obtaining goods without collection of tax

(i) for Form No. 27D, the following Form shall be substituted, namely :-

FORM NO. 27D

[See rule 37D]

Certificate under section 206C of the Income-tax Act, 1961 for tax collected at source

(j) for Form No. 27EQ, the following Form shall be substituted, namely :-

FORM NO. 27EQ

[See section 206C and rule 31AA]

Quarterly statement of collection of tax at source under section 206C of the Income-tax Act, for the quarter ended .......... (June/September/December/March) .......... (Financial year)

(k) for Form No. 27Q, the following Form shall be substituted, namely :-

FORM NO. 27Q

[See sections 194E, 194LB, 194LC, 195, 196A, 196B, 196C, 196D and rule 31A]

Quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income-tax Act in respect of payments other than salary made to non-residents for the quarter ended ................. (June/September/December/March) .......... (Financial Year)

Budget 2013: Highlights

  • Surcharge of 10% on persons whose taxable income exceeds Rs. 1 crore
  • The current slabs were introduced last year. Hence, there is no case of revision, says Chidambaram
  • Tax Administraion Reforms Commission to be set up to review tax laws
  • TDS of 1 per cent on land deals over Rs. 50 lakh
  • I belive there is a little bit of the spirit of Mr Azim Premji in every affluent tax payer, says Chidambaram
  • Faced with huge fiscal deficit, India had no choice but to rationalise expenditure
  • India faces challenge of getting back to its potential growth rate of 8 pct
  • India must unhesitatingly embrace growth as highest goal
  • Excise duty on certain SUVs hiked to 30 per cent
  • Specific excise duty on cigarettes increased by 18 per cent
  • On mobile phones priced at more than Rs. 2000, excise duty hiked to 6 per cent
  • Only China and Indonesia growing faster than India
  • Plan expenditure pegged at Rs. 555,322 crore
  • Non-plan expenditure pegged at Rs. 11,09,975 crore for 2013-14
  • Revised estimate for total expenditure is Rs. 14.3 trillion in 2012/13, which is 96 pct of budget estimate
  • India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit
  • Food inflation is worrying, will take all steps to augment supply side
  • Government has decided to constitute a regulator for the road sector
  • 3000 km of road projects to be awarded in the first six months
  • Refinancing capacity of SIDBI increased to Rs. 10,000 cr from Rs. 5,000 cr for MSMEs
  • Household sector must be incentivised  to save in financial instruments rather than gold
  • Person taking a loan for his first home during the period 2013-14 will be entitled to an additional deduction of Rs. 1 lakh
  • Excise rate, service tax rate unchanged
  • Allocation to defence spending up 4.5 per cent at Rs. 2.03 trillion
  • Cabinet committee on investment set up to monitor stalled projects and guide decision making
  • Govt committed to food security bill. Rs. 10,000 crore set apart for expenditure likely under the Act
  • Clean drinking water and sanitation to get Rs. 15,260 crore
  • Rs. 1,400 crore to set up water purification plants to fight fluoride affected areas
  • Oil and gas policy will be reviewed and changed from a profit-sharing structure to a revenue sharing structure
  • Natural gas pricing policy will be reviewed
  • NELP projects that were stalled will be cleared
  • A PPP policy framework is being devised with Coal India as a partner to provide coal to power producers. The Coal Ministry is working on it.
  • Non tax benefits to SME units to remain for 3 years after they outgrow from the category
  • SIDBI's refinancing capacity increased to Rs. 10,000 crore
  • PSU banks to get Rs. 14,000 capital infusion in FY14
  • Proposal to set up India's first women's bank as a PSU bank; initial capital to be Rs. 1,000 crore
  • Company investing Rs. 100 crore or more between now and 2015 will be entitled to deduct an investment allowance of 15 per cent in addition to depreciation
  • 2 new ports to be set up in West Bengal and Andhra Pradesh
  • Insurance companies can open branches in Tier II cities without prior approval of IRDA
  • KYC of banks will be sufficient to acquire insurance policies, banks to act as brokers
  • The Insurance Law Amendment Bill and the PFRDA Bill are before the House, hope it gets passed in this session, says Chidambaram
  • FY13 fiscal deficit estimated at 5.2 per cent; FY14 fiscal deficit estimated at 4.8 per cent
  • A proposal to amend the SEBI Act to strengthen the regulator is under consideration, says the Finance Minister
  • 10 per cent stake or less will be treated as FII, and stake of more than 10 to be treated as FDI
  • Nirbhaya fund set up with an allocation of Rs. 1,000 crore set up to ensure safety and security of women
  • FIIs can participate in Exchange Traded Currency Derivatives
  • Chidambaram: Rs. 6,275 cr allocated to Ministry of Science and Technology; Rs. 5,880 cr to Department of Atomic Energy
  • All cities with population of more than 1 lakh to be covered with FM radio services
  • 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme: FM
  • Rs. 5,87,082 crore to be transferred to states under share of taxes and non-plan grants in 2013-14, says FM
  • Rs. 532 crore to make post offices part of core banking
  • National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs. 250 crore
  • Grant of Rs. 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH.