Category Archives: GS – July 2013 Series

Professional Ethics on Visiting Cards – Article – July 2013 Series

PROFESSIONAL ETHICS ON VISITING CARDS

- K Shriram, ACA

[Excerpts from the CA Act, Regulation and the relevant Statutory Requirements]

1.       What can you have in your visiting Cards?

The visiting cards may contain the general information about the Firm (or the Proprietorship concern) such as the name of the Firm (or Proprietor), Address, Email Id, etc.

2.       What information are prohibited in Visiting Cards?

The following information are prohibited from being displayed in the visiting cards of a Member or a Firm (as per CA Regulations):

  1. Designation or expression of the member other than Chartered Accountant, unless it is a degree of an University established by law in India or recognized by the CG or a title indicating membership of the ICAI or of any other institution that has been recognized by CG or may be recognized by the council.
  2. The “Temporary Office Address” as a place of Business of the Member/ Firm.
  3. The Date of setting up the practice by a Member or the Date of Establishment of the Firm.
  4. Additional designation such as “Member of Parliment”, “Municipal Councillor”, or any other functionary.
  5. The use of expressions / words “in Association with”, “Associates of”, “Correspondence of”, etc.
  6. Logos unconnected with the 1st letter of the name of the Firm or its Partners or Proprietors.

3.       Are there any penal consequences if I do not comply with the above?

Yes.  For Chartered Accountants in Practice, non-compliance with the above requirements shall be considered as a misconduct as per First Schedule, Part I, Clause 7 of the Chartered Accountants Act, 1949.

4.       Can I call myself as a “Financial Consultant” or “Income Tax Practitioner” in my visiting Cards?

No. Chartered Accountants in Practice cannot use any other designation other than that of “Chartered Accountants” in visiting Cards.

5.       Can I have my photos in Visiting Cards?

No. Photographs are not permitted in Visiting Cards as the same will amount to solicitation.

6.       I am a partner in 3 different Firms. Can I include all the Firm’s Names in my Visiting Cards?

Yes. Since it is a statement of fact, the above information can be included in all the official documents like letter-heads, visiting cards, etc., provided the same is not circulated to known people.

Served From India Scheme – Article – July 2013 Series

EMERGING OPPORTUNITIES FOR A CHARTERED ACCOUNTANT

 Benefits under Foreign Trade Policy – SERVED FROM INDIA SCHEME

- T R Srinivasan, ACA

Initial Note:

The Government of India has undertaken a slew of measures to build–up the Foreign Exchange reserves. In this context, India’s Foreign Trade Policy becomes pertinent where in the Government has showered lots of benefits on the Exporters (both services and goods) to make their products / services competitive in the International Markets.

However, some of these schemes have not been much publicized as they have to be and as a result, most of the exporters are not aware of the benefits available under the Foreign Trade Policy.

 Role of CA: As a Chartered Accountant, the opportunities are ripe in such area due to the fact the benefits are on recurring basis and not much explored by many professionals. This leads to a huge cost saving for the business enterprises on a continuous basis and most of the cases, a Chartered Accountant could play a major role in this area due to his close association with the client’s business.

 Served From India Scheme: In this series, we shall have a broad outlook of the benefits conferred under “Served From India Scheme (SFIS)”, dealing with service exports.

Particulars

Relevant Points

Eligible Service Providers Indian Service Providers – earned free foreign exchange of  atleast ` 10 lakhs in preceding / current Financial YearFor individuals – earned free foreign exchange of  atleast ` 10 lakhs in preceding / current Financial Year
Eligible Services Services listed in the General Agreement on Trade and Services (listed in Annexure I)
Entitlement and Calculation of Benefits 10% of Free Foreign Exchange earned during current financial year[Free Foreign Exchange = Foreign Exchange earned – Foreign Exchange spent]

For Example:

  • If the Foreign Exchange Earned is Rs.5 Crores, Forex Spent is Rs.2 Crores. Then Free Foreign Exchange is Rs.5 Crores – Rs.2 Crores = Rs.3 Crores. Hence, Entitlement is 10% of Rs.3 Crores = Rs.30 Lakhs.
  • This implies that Exporter can import or procure locally capital goods or other specified without payment of customs / excise duty of Rs.30 Lakhs. Hence, Savings is Rs.30 Lakhs.
  • In proof of the above Rs.30 Lakhs entitlement, the exporter will be provided a certificate called Duty Credit Scrip (DCS).
Eligible Remittances Free foreign exchange earned through International Credit Cards and other instruments as permitted by RBI for rendering of service
Imports allowed
  • Import of any Capital Goods including Spares, Office Equipment and Professional Equipment, Office Furniture and Consumables that are freely importable and / or restricted under ITC(HS).
  • Imports should be related to Service / Manufacturing business of the applicant.
  • Utilisation of Duty Credit Scrip earned is not permitted for import of vehicles, even if such vehicles are freely importable under ITC(HS)
  • In case of hotels, clubs having residential facility of minimum 30 rooms, golf resorts and stand alone restaurants having catering facilities, Duty Credit Scrip may be used for import of consumables including food items and alcoholic beverages.
Procurement from Domestic Sources Utilisation of Duty Credit Scrip (DCS) is permitted for payment of Excise Duty on procurement of Capital Goods and Office Equipments used for Service / Manufacturing business [Notification No.34/ 2006 dt. 14.06.2006]
Non –Transferability The Duty Credit Scrip can be transferred with in the Service Sector / Manufacturing Business of the same Exporter or the Group Concern.
Procedure and Documentation Jurisdiction: Application for Duty Credit Scrip should be filed with the Jurisdictional Regional Authority (RA).Documents:

  • Form ANF 3B along with Certificate by CA / CWA / CS
  • Documents evidencing the receipt of Forex

Frequency of availing option: Monthly / Quarterly / Half–Yearly / Annual basis at the option of the applicant along with first application for the current financial year,

Due Date for filing application: 12 months from the end of relevant month / quarter / half-year / year.

Service providers should submit a statement for imports with Jurisdictional RA with a copy to Jurisdictional Excise Authorities.

Due Date: Within 1 month of completion of imports made or expiry of validity of Duty Credit scrip whichever is earlier.

Registration:

  • Service Providers must have IEC code and RCMC (Registration Cum Membership Certificate) with an Export Promotion Council (EPC).
  • If there are no sector specific EPCs, service providers may register with FIEO (Federation of Indian Export Organisation).
Ineligible Remittances and Services for SFIS  Foreign Exchange remittances other than those that are earned for rendering of services are ineligible. The following are shall not be taken into account –(a)    Foreign Exchange remittances:

  1. Related to Financial Services Sector
  2. Raising of all types of foreign currency Loans;
  3. Export proceeds realization of clients;
  4. Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;
  5. Issuance of foreign currency Bonds;
  6. Sale of securities and other financial instruments;
  7. Other receivables not connected with services rendered by financial institutions; and
  8. Earned through contract / regular employment abroad (e.g. labour remittances)

(b)   Payments for services received from EEFC A/c;

(c)    Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc. (Remittances received for medical treatment, surgery, testing, consultancy and health care provided by the institution is eligible.);

(d)   Foreign exchange turnover by Educational Institutions like equity participation, donations etc. (Remittances for course fees and consultancy provided by the institution is eligible.);

(e)    Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units;

(f)     Clubbing of turnover of services rendered by SEZ / EOU / EHTP / STPI / BTP units with turnover of DTA Service Providers;

(g)    Service Providers in Telecom Sector (Sr. No 2C of Appendix 10);

(h)   Foreign Exchange earnings for Services provided by Airline and Shipping Lines Service providers for routes plying from any country X to any country Y only, not touching India at all; and

(i)     Exports of Goods.

 

 

Annexure I – List of services covered under the SFIS

  1. BUSINESS SERVICES

A. Professional services

(a)    Legal services

(b)   Accounting, auditing and bookkeeping services

(c)    Taxation services

(d)   Architectural services

(e)    Engineering services

(f)     Integrated engineering services

(g)    Urban planning and landscape architectural services

(h)   Medical and dental services

(i)     Veterinary services

(j)     Services provided by midwives, nurses, physiotherapists and paramedical personnel

B. Research and development services

(a)    R&D services on natural sciences

(b)   R&D services on social sciences and humanities

(c)    Interdisciplinary R&D services

C. Rental/Leasing services without operators

(a)    Relating to ships

(b)   Relating to aircraft

(c)    Relating to other transport equipment

(d)   Relating to other machinery and equipment

D. Other business services

(a)    Advertising services

(b)   Market research and public opinion polling services

(c)    Management consulting service

(d)   Services related to management consulting

(e)    Technical testing and analysis services

(f)     Services incidental to agricultural, hunting and forestry

(g)    Services incidental to fishing
Services incidental to mining

(h)   Services incidental to manufacturing

(i)     Services incidental to energy distribution

(j)     Placement and supply services of personnel

(k)   Investigation and security

(l)     Related scientific and technical consulting services

(m) Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment)

(n)   Building-cleaning services

(o)   Photographic services

(p)   Packaging services

(q)   Printing, publishing

(r)    Convention services

2. COMMUNICATION SERVICES

A. Audiovisual services

(a)    Motion picture and video tape production and distribution service

(b)   Motion picture projection service

(c)    Radio and television services

(d)   Radio and television transmission services

(e)    Sound recording

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

  1. General Construction work for building
  2. General Construction work for Civil Engineering
  3. Installation and assembly work
  4. Building completion and finishing work

4. EDUCATIONAL SERVICES

  1. Primary education services
  2. Secondary education services
  3. Higher education services
  4. Adult education

5. ENVIRONMENTAL SERVICES

  1. Sewage services
  2. Refuse disposal services
  3. Sanitation and similar services

6. HEALTH-RELATED AND SOCIAL SERVICES

  1. Hospital services

7.TOURISM AND TRAVEL-RELATED SERVICES

  1. Hotels and Restaurants (including catering)
  2. Travel agencies and tour operators services
  3. Tourist guides services

8. RECREATIONAL, CULTURAL AND SPORTING SERVICES

  1. Entertainment services (including theatre, live bands and circus services)
  2. News agency services
  3. Libraries, archives, museums and other cultural services
  4. Sporting and other recreational services

9. TRANSPORT SERVICES

A. Maritime Transport Services

(a)    Passenger transportation

(b)   Freight transportation

(c)    Rental of vessels with crew

(d)   Maintenance and repair of vessels

(e)    Pushing and towing services

(f)     Supporting services for maritime transport

B. Airtransport services

(a)    Rental of aircraft with crew

(b)   Maintenance and repair of aircraft

C. Road Transport Services

(a)    Passenger transportation

(b)   Freight transportation

(c)    Rental of Commercial vehicles with operator

(d)   Maintenance and repair of road transport equipment

(e)    Supporting services for road transport services

D. Services Auxiliary To All Modes Of Transport

(a)    Cargo-handling services

(b)   Storage and warehouse services

(c)    Freight transport agency services

Updates in Indirect Taxes – July 2013 Series

A. CUSTOMS

 1. Duty Free Shop – deemed as warehouse:  If a godown or retail outlet of a Duty Free Shop is appointed / licensed as warehouse under the Customs Act, 1962, then such godown or retail outlet shall be deemed to be registered as warehouse as per Rule 9 of the Central Excise Rules, 2002.

[Notification No.07/2013 – CE (N.T.), dt. 23.05.2013]

 

2. Removal to a Duty Free Shop 

Concession: All excisable goods can be removed from the factory of production without payment of duty as per Rule 20 of Central Excise Rules, 2002

Purpose:

Such removal is for storage in a godown / retail outlet of a Duty Free Shop in the Departure Hall / the Arrival Hall of International Airport (which is appointed / licensed as warehouse under the Customs Act, 1962) and

Further such goods are sold against receipt of foreign exchange to outgoing passengers going or to the passengers / members of crew arriving from abroad.

 

3. Applicabilty of monetary limits for filing appeals to CESTAT / HC / SC:

Issue: How to apply the threshold limits if redemption fine is in dispute or redemption fine and penalty are in dispute. Whether Redemption Fine is considered as a penalty? (Note: Redemption Fine is an amount levied for releasing the confiscated goods)

Clarification: Though Redemption Fine is different in nature from penalty, both the amounts are identical in treatment and hence both amounts must be clubbed to decide the applicability of the threshold limit. [Instruction No. 390/Misc./163/2010-JC dt. 03.06.2013]

B. SERVICE TAX

 1. Exemption for services provided to Exporters against debit to Focus Market Scheme Duty Scrip [Notifications 11/2013 dt. 13.06.2013 & 6/2013 dt. 18.04.13]:

 Nature of exemption: Services provided to an exporter against debit to Focus Market Scheme Duty Scrip are exempt from service tax.

Conditions:

(a)    The scrip is issued against exports to the countries notified by the Government of India in Appendix 37C of the Handbook of Procedures, Volume I in terms of entitlement under paragraph 3.14.2 or against exports to the countries or regions specified in paragraph 3.14.4(e) or paragraph 3.14.5(e) of the Foreign Trade Policy.

(b)   The following categories of exports (specified in paragraph 3.17.2 and 3.14.3 of the Foreign Trade Policy) shall not be considered for calculation of export performance or for computation of entitlement under Paragraph 3.14.2 of the Foreign Trade Policy

  • Export of imported goods or exports made through trans-shipment;
  • Export from SEZ or EOU or EHTP or STPI or BTP or FTWZ;
  • Deemed Exports;
  • Service Exports;
  • Third Party exports;
  • Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones;
  • Ores and concentrates of all types and in all formations;
  • Cereals of all types;
  • Sugar of all types and all forms;
  • Crude or petroleum oil and crude or primary and base products of all types and all formulations;
  • Export of milk and milk products;
  • Export performance made by one exporter on behalf of other exporter;
  • Supplies made to SEZ units;
  • Items, export of which requires an export authorisation (except SCOMET);
  • Export of Meat and Meat Products
  • Exports to Singapore, UAE and Hong Kong
  • SEZ or EOU or EHTP or BTP or FTWZ products exported through DTA units.

Updates in Corporate and Allied Law – July 2013 Series

1.    CIRCULAR 1 OF 2013 - PRESS NOTE NO. 2 (2013 SERIES), DATED 3-6-2013 (FEMA,1999)

CONSOLIDATED FDI POLICY – DEFINITION OF ‘GROUP COMPANY’

The Government has decided to incorporate the following definition of ‘group company’ in the FDI Policy contained in ‘Circular 1 of 2013 – Consolidated FDI Policy’, effective from 05-04-2013:

“Group company” means two or more enterprises which, directly or indirectly, are in a position to:

(a)  exercise twenty-six per cent, or more of voting rights in other enterprise; or

(b) appoint more than fifty per cent, of members of board of directors in the other enterprise.

The above decision will take immediate effect.

2.    A.P. (DIR SERIES 2012-13) CIRCULAR NO.107, DATED 4-6-2013 (FEMA,1999)

IMPORT OF GOLD BY NOMINATED BANKS/AGENCIES

Attention of Authorised Persons is drawn to our A.P. (DIR Series) Circular No. 103 dated May 13, 2013 on the captioned subject in terms of which, it was decided to restrict the import of gold on consignment basis by banks, only to meet the genuine needs of the exporters of gold jewellery. It has now been decided to extend the provisions of this circular to all nominated agencies/premier/star trading houses who have been permitted by Government of India to import gold. Accordingly, any import of gold on consignment basis by both nominated agencies and banks shall now be permissible only to meet the needs of exporters of gold jewellery.

(a) It has further been decided that all Letters of Credit (LC) to be opened by Nominated Banks/Agencies for import of gold under all categories will be only on 100 per cent cash margin basis. Further, all imports of gold will necessarily have to be on Documents against Payment (DP) basis. Accordingly, gold imports on Documents against Acceptance (DA) basis will not be permitted. These restrictions will however not apply to import of gold to meet the needs of exporters of gold jewellery.

(b) The above instructions will come into force with immediate effect. ADs may bring the contents of this circular to the notice of their constituents and customers concerned. They are also advised to strictly ensure that foreign exchange transactions effected by/for their constituents are compliant with these instructions in letter and spirit.

(c) All other instructions relating to import of gold issued from time to time shall remain unchanged.

(d) The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

3.    A.P. (DIR SERIES 2012-13) CIRCULAR NO. 108, DATED 11-6-2013 (FEMA, 1999)

EXPORT OF GOODS AND SERVICES-REALIZATION AND REPATRIATION PERIOD FOR UNITS IN SPECIAL ECONOMIC ZONES (SEZ)

Attention of Authorized Dealer banks is invited to A. P. (DIR Series) Circular No. 91, dated April 1, 2003. In terms of provisions of Para A of the said circular, time limit for realization and repatriation of export proceeds, for the exports made by units in Special Economic Zones (SEZs), was done away with.

(i)        It has now been decided that the units located in SEZs shall realize and repatriate, full value of goods/software/services, to India within a period of twelve months from the date of export. Any extension of time beyond the above stipulated period may be granted by Reserve Bank of India, on case to case basis.

(ii)       The above changes will be applicable with immediate effect and shall be valid for one year, subject to review.

(iii)      Necessary amendments to Notification No. FEMA.23/RB-2000, dated May 3, 2000 [Foreign Exchange Management (Export of Goods and Services) Regulations, 2000] have been issued vide Notification No.FEMA.273/2013-RB, dated April 25, 2013 and notified vide G.S.R.No.342(E), dated May 29, 2013.

(iv)      AD Category – I banks may please bring the contents of this Circular to the notice of their constituents and customers concerned.

(v)       The directions contained in this circular, have been issued under sections 10(4) and 11(1) of Foreign Exchange Management Act, 1999 (42 of 1999) and without prejudice to permissions/approvals, if any, required under any other law.

4.    A.P. (DIR SERIES 2012-13) CIRCULAR NO. 112, DATED 20-6-2013 (FEMA, 1999)

DEFERRED PAYMENT PROTOCOLS DATED 30-4-1981 AND 23-12-1985 BETWEEN GOVERNMENT OF INDIA AND ERSTWHILE USSR

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No.95, dated April 4, 2013, wherein the Rupee value of the special currency basket was indicated as Rs.73.141761 effective from March 18, 2013.

(i)        AD Category-I banks are advised that a further revision has taken place on May 31, 2013 and accordingly, the Rupee value of the special currency basket has been fixed at Rs.75.705663 with effect from June 5, 2013.

(ii)       AD Category-I banks may bring the contents of this circular to the notice of their constituents concerned.

(iii)      The Directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

5.     A.P. (DIR SERIES 2012-13) CIRCULAR NO. 114, DATED 25-6-2013 (FEMA, 1999)

EXTERNAL COMMERCIAL BORROWINGS (ECB) POLICY FOR 3G SPECTRUM ALLOCATIONS

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 28 dated January 25, 2010 relating to External Commercial Borrowings (ECB) for spectrum allocation.

(i)        As per the extant policy, the payment for spectrum allocation may initially be met out of the Rupee resources by the successful bidders, to be refinanced with a long term ECB, under the approval route, subject to the condition that ECB should be raised within 12 months from the date of payment of the final installment to the Government.

(ii)       On a review it has been decided that ECB window for financing 3G spectrum rupee loans, that are still outstanding in telecom operator’s books of accounts, will be open upto March 31, 2014.

(iii)      All other aspects of the ECB policy shall remain unchanged. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.

(iv)      The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

 6.    A.P. (DIR SERIES 2012-13) CIRCULAR NO. 115, DATED 25-6-2013 (FEMA,1999)

BUYBACK/PREPAYMENT OF FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs)

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 39 dated December 08, 2008, A.P. (DIR Series) Circular No. 75 dated June 30, 2011 and A.P. (DIR Series) Circular No. 1 dated July 05, 2012 on the captioned subject.

(i)        Considering the developments in the global financial markets and on a review of the aforesaid scheme, it has been decided that the existing scheme of Buyback/Prepayment of FCCBs under the approval route which expired on March 31, 2013 may be continued till December 31, 2013 and shall stand discontinued thereafter.

(ii)       AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.

(iii)      The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.

Updates in Direct Taxes – July 2013 Series

1. Mindtree Ltd. V. Union of India - 2013 34 taxmann.com 250 (Karnataka)

Amendments by Finance Act, 2011 to withdraw exemption from MAT & Dividend Distribution Tax to SEZ developers/units are not unconstitutional. In the impugned amendment it is made clear that it is prospective in nature. Therefore the impugned amendments can neither be said unreasonable or arbitrary. The road map is not a condition precedent for the Parliament to introduce sunset clause. The Parliament has the sovereign legislative power to withdraw the tax exemption by way of legislative amendment.

2. DHFL Venture Capital Fund v. Income-tax Officer  - 2013 34 taxmann.com 300 (Bombay)

The jurisdictional requirement for reopening an assessment under Section 148 is the formation of a reason to believe by the Assessing Officer that income has escaped assessment. The existence of that reason must be in the present –i.e. a reason which is present to AO’s mind when he forms his reason to believe, that income has escaped assessment. Recourse to Section 148 cannot be founded in law on a hypothesis of what would be the position in future should an appeal before the appellate authority, being the Tribunal or the High Court, result in a particular outcome. The statute does not contemplate the reopening of an assessment under Section 148 on such a hypothesis or a contingency which may emerge in the future even under the pretext of “protective assessment”.

3.   Notification No. 40/2013 [F. NO. 142/7/2013-TPL]/SO 1464(E), DATED 6-6-2013 – The Cost of Inflation Index for FY 2013-14 shall be 939.

 4.   Notification No.. 42/2013 [F.NO.142/5/2013-TPL]/SO 1513(E), DATED 11-6-2013 - E-filing of Tax Audit Reports

Where an assessee is required to furnish a report of audit specified under section 10(23C), Section 10A, Section 12A, Section 44AB, section 80-IA/ IB/ IC/ ID / JJAA/ LA, section 92E or section 115JB of the Income Tax Act, 1961, the same is to be furnished electronically

5.   Notification No. 43/2013 [F.NO.503/05/2009-FTD-l]/SO 924(E), DATED 12-6-2013

The effective date of the agreement for exchange of information with the principality of Monaco entered into u/s 90 of the Income Tax Act, 1961 shall be 27th march 2013.

6.   Notification No. 45/2013 [F.NO.142/09/2013-TPL]/SO 1768(E), DATED 19-6-2013 - Commodities Transaction Tax as introduced by the Finance Act, 2013 shall be effective from  1st of July, 2013 

7. Notification No. 46/2013 [F.NO.142/09/2013-TPL]/SO 1769(E), DATED 19-6-2013 - Commodities Transaction Tax Rules, 2013 have been notified providing the for the following –

(a) Payment of commodities transaction tax (CTT)

CTT can be paid by remitting it into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized Bank accompanied by a commodities transaction tax Challan.

(b) Return of taxable commodities transactions.

(i)        Form: The return of taxable commodities transactions required to be furnished under sub-section (1) of section 120 of the Act shall be in Form No. 1, verified in the manner indicated therein.

(ii)       Manner: This may be furnished in any of the following manners, namely:-

(c) Furnishing the return in paper form;

(d) Furnishing the return electronically under digital signature

(iii)      Due Date: The return of taxable commodities transaction entered into during a financial year shall be furnished on or before the 30th June immediately following that financial year.

(e) Return by whom to be signed.

Assessee

Signed by

Company

Managing Director or a Director thereof

Others

Principal officer thereof

 (f) Notice of demand (if any) shall be issued in Form No.2 specifying the sum so payable.

(g)  Form of appeal to Commissioner of Income-tax (Appeals)  – shall be in Form No.3

(h)  Rounding off – Commodities Transaction Tax shall be rounded off to the nearest rupee.

8.   Notification No.41/2013 dated 10/06/2013

The above notification has been issued by the CBDT extending the provisions of the IT Rules 10A to Rule 10E (which were earlier applicable only to International Transactions) to specified Domestic Transactions also. Hence, the rules regarding determination of Arms Length Price (ALP), most appropriate method, information and documents to be maintained. Format of Accountants report etc. have been made applicable to specified Domestic Transactions also.

The Accountant’s report in Form 3CEB has also been revised to incorporate details relating to specified Domestic Transactions. For the revised Form 3CEB. For the amended Form 3CEB –  click here

9.   Notification No,47/2013 dated 26/06/2013

The above notification has been issued by the CBDT, notifying Rule 21AB prescribing the rules for furnishing of information w.r.t. transactions entered into persons, in Notified Jurisdictional Area for the purpose of Section 94A.

Statutory Compliance Chart – July 2013

DATE   COMPLIANCE REQUIRED
FORM NO. / CHALLAN NO.
2013 JULY
5 EXCISE:Payment of Excise Duty for June 2013 GAR 7
EXCISE:Payment of ED for Quarter ending June 2013 by SSIs
SERVICE TAX: Payment of Service Tax for Quarter ending June 2013 by Non-Corporates
SERVICE TAX: Payment of Service Tax for June 2013 by Corporates
6 EXCISE:E-Payment of Excise Duty for June 2013
EXCISE:E-Payment of ED for Quarter ending June 2013 by SSIs
SERVICE TAX:E-Payment of Service Tax for June 2013 by Corporates
SERVICE TAX:E-Payment of Service Tax for Quarter ending June 2013 by Non-Corporates
NOTE: E-Payment mandatory if ST/ED Paid>=10 Lakhs in FY 2012-13
8 INCOME TAX: Deposit of TDS/TCS collected during June 2013 281
10 EXCISE:Monthly returns for Production and removal of Goods and
Cenvat Credit for June 2013
ER 1
EXCISE:Monthly returns of Excisable Goods Manufactured & Receipt
of Inputs & Capital Goods by Units in EOU, STP, HTP for June 2013
ER 2
EXCISE:Quarterly Returns for production and removal of goods and CENVAT Credit for Quarter ending June 2013 by SSIs
EXCISE: Monthly returns of Information relating to Principal Inputs
for June 2013 by manufacturer of Specified Goods who paid Duty of Rs. 1 Crore or more during Financial Year 2012-2013 By Pla/Cenvat/Both
ER 6
15 EXCISE:Quarterly Returns of Assessees paying 1% or 2% Excise and not manufacturing any other goods for Quarter ending June 2013 ER8
EPF:Payment of EPF contribution for June 2013
EPF:Consolidated Statements of Dues and Remittances under EPF and EDLI for June 2013 12A
EPF:Monthly returns of Employees who Joined/Left the Organisation
in Feb 2013
5/10
EXCISE:Quarterly Returns of CENVAT by first stage and second stage dealers for Quarter ending June 2013 ER 3
INCOME TAX: Quarterly Statement of TDS if the deductor is a person
other than office of Government for Quarter ending June 2013
24Q/26Q
INCOME TAX: Statement of TDS from interest, dividend or any other sum payable to Non-Resident for Quarter ending June 2013 27Q
INCOME TAX: Quarterly Statement of TCS for Quarter ending June 2013 27EQ
20 CST/VAT:Monthly returns and Payment of CST and VAT collected
during June 2013
EXCISE:  Quarterly Return of production, removal and Cenvat by specified manufacturers
of YARNS and ready made garments for Quarter ending June 2013
ER 3
22 ESI:  Deposit of ESI contributions and collections for June 2013
30 INCOME TAX: Issue of TDS certificate for TDS made during the Quarter
ended June 2013 except on Salaries
16A
31 INCOME TAX: Quarterly return of Non-deduction of Tax at source U/S 206A
by Banking Company for Quarter ending June 2013
26QAA
INCOME TAX: Quarterly Statement of TDS if the deductor is an office of Government
for Quarter ending June 2013
24Q/26Q/27Q
INCOME TAX: Last date for return of Income / Wealth for the PY. 2012-2013 for Non Corporate
Assessees whose accounts are not subject to Audit under the Income Tax Act
ITR 1/2/3/
4/5/7/8-BA