Capital Gains Account (first amendment) scheme, 2012

Capital Gains Account (first amendment) scheme, 2012 - Amendment in paragraphs 1, 2, 3, 4, 10, 13 and Forms A, C & G

Notification No. 44/2012 [F.No. 142/21/2012-SO (TPL)], Dated 25-10-2012

In exercise of the powers conferred by sub-section (2) of section 54, sub-section (2) of section 54B, sub-section (2) of section 54D, sub-section (4) of section 54F, sub-section (2) of section 54G and sub-section (2) of section 54GB of the Income-tax Act, 1961 (43 of 1961) the Central Government hereby makes the following Scheme to amend the Capital Gains Account Scheme, 1988. namely:-

1. (1) This Scheme may be called the Capital Gains Accounts (First Amendment) Scheme, 2012.

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

UP Chief Minister takes Rs 44.67 lakh loan from Samajwadi Party in cash; CIT(A) & ITAT rule penalty u/s 271D not imposable for violation of Sec 269SS

THE issues before the Bench are - Whether when the transactions are in cash beyond permissible limit, penalty u/s 271D are automatic; Whether when the assessee takes loan in cash from his political party, which deposits the same in his bank account, and the assessee withdraws the cash same day and pays up for conversion of a property into freehold, it constitutes 'reasonable cause' for failure to comply with the provisions of Sec 269SS; Whether for deciding a case for violation of Sec 269SS, whether the constitution of a political party permits sanction of loans in cash is not material and Whether a Member of Parliament can also plead ignorance of law as a resonable cause for waiver of penalty u/s 271D. And the verdict goes in favour of the assessees.

Facts of the case

Gift of shares by a Company valid and not taxable prior to June 1, 2010

The Mumbai Income-tax Appellate Tribunal (“Tribunal”) in a recent decision^[1] has held that transfer of shares by way of gift between corporate entities may appear strange but cannot be treated as a non-genuine transaction.

The Tribunal has held that a corporate entity can validly gift property to another corporate entity and the absence of love and affection, a general presumption in a gift transaction, should not result in the gift transaction between two corporate entities to be characterized as a “non-genuine” transaction. 

Provident Fund Notification for International Workers

58 years age limit, for withdrawal of Provident Fund contribution, diluted for IWs covered under SSAs

The Ministry of Labour and Employment (“MLE”) by way of notification[1]  has further amended the Employees Provident Fund Scheme, 1952 (“EPFS”) and Employees Pension Scheme, 1995 (“EPS”) in respect of International Workers (“IWs”).

Background

In October 2008, the MLE made fundamental changes in EPFS and EPS.  The ambit of both the schemes was broadened to compulsorily cover IWs under the purview of India’s social security regime.

India Taxes- Due Date Alert for the month November 2012

India Taxes- Due Date Alert for the month November 2012
Sr No	Due Date	Related to	Compliance to be made
1	05.11.2012	Service Tax	Payment of Service Tax for the Month of October 2012
2	07.11.2012	TDS/TCS	·        Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of October 2012.
		(Income Tax)
			·        Deposit TDS from Salaries  deducted during the month of October 2012
			•   Deposit TCS for collections made under section 206C including sale of scrap during the month of October 2012, if any
			•    Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of October 2012, if any
3	20.11.2012	VAT	Payment of VAT & filing of monthly return for the month of October 2012
4	20.11.2012	STPI	Filing of Softex Form for the month ended September 2012
5	25.11.2012	Service Tax	Filing of Service Tax return for the First quarter ended  in Form ST-3
6	30.11.2012	Income Tax	Return filing online along with submission of Form 3CEB in the case, assessee is subject to transactions with AEs and TP study required.

TRANSFER PRICING CONCEPTS

Click here to read the compelte article.

http://taxbymanish.blogspot.com/2011/08/understanding-transfer-pricing-with.html

Filing Returns of LLP (Form-8 & 11) For the Financial Year Ended 31-03-2012

Limited Liability Partnerships (LLPs) registered under the LLP Act, are mandatorily required to file their return annually with the Registrar of LLPs.

An LLP is required to file its Annual Return with the registrar of LLP (Form 11) within 60 days from the closure of its financial year. An LLP has to close its financial year on 31^st March. So, the annual return is to be filed on or before 30^th May every year. However it is clarified that the time limit of 60 days shall be read as 90 days for filing Form 11 by LLPs in respect of the Financial Year ending on 31-03-2012.

Further, every LLP has to maintain books of accounts as per double entry system of accounting and prepare a Statement of Accounts and Solvency (Accounts) every year ending on 31^st March. LLP has

What are the schemes availaible in India presently to save Capital Gain Taxfor sale of house?

There are two section54 and 54EC under which you can save on long term capital gain arisen out of sale of house.
Under Section 54 of the I T Act you have to fulfil following conditions :
1. The amount of capital gain is invested in another residential house or property.
2. If purchasing new house , do it within one year before or two years after the date of transfer of the house you sold.
If constructing the house, do it within 3 years from the date of transfer of your house sold.
3.Do not sell your new house/flat within 3 years from its acquisition otherwise, capital gain which was exempted shall be taxed in the year you have sold the property.
These are basic rule of exemption under Section 54.
Other facility provided is that in case you are not in position to invest Capital Gain amounts immediately, then you can keep the said capital gain in Capital Gain Account scheme . These are also two types.One is like saving accounts from which money can be withdrawn for the specific purpose of purchasing the

FAQs on Director’s Identification Number – DIN

1.  What is Director’s Identification Number?

Ans: DIN stands for Director’s Identification Number which is allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 266A & 266B of the Companies Act, 1956.

2.  What is the validity of regular DIN?

Ans: A regular DIN allotted to a person is valid for the lifetime of the individual and shall not be allotted to any other person during his lifetime.

3.  What are the actions to be taken in case of change in the particulars of DIN?

Ans: E-Form DIN-4 should be filed on filling up the required changes and follow the same process for

Formation of Section 25 Company, It’s Advantages and Disadvantages

Section 25 companies are those companies which are created for the exclusive principle of promoting commerce, art, science, religion, charity or any other useful object and have been approved a licence by the central government recognizing them as such. Thus, there are three criteria for determining whether a particular company is section 25 companies or not and these are as follows -

1) Its objects should be only to promote commerce, art, science, religion, charity or any other useful object.

Whether when assessee has built units having area below 1000 sq. ft. but it has also offered option to combine two flats exceeding 1000 sq feet, it loses claim to Sec 80IB(10) benefits -

THE issues before the Bench are - Whether when the assessee has built units having area below 1000 sq. ft. but it has also offered the option to combine two flats exceeding 1000 sq feet, it loses claim to Sec 80IB(10) benefits; Whether the assessee can be given Sec 80IB(10) benefits on pro rata basis for flats having an area of less than 1000 sq ft and Whether when the projections/elevations area implies that there are extended area and can be utilized as carpet area, the said extended area of projections/elevations/balconies are to be included while admeasuring all the flats for the purpose of section 80IB(10). Tribunal

Disallowance for failure to deduct TAS – advantage domestic payments

In Sonata Information Technology Ltd. V. Dy. CIT (LTU) (2012) 19ITR (Trib) 408 the assessee suffered disallowance u/s 40 (a) (ia) of Rs.200 crores for not having deducted TAS on transactions of purchase of software from persons who are residents in India. The AO regarded such transactions in the nature of royalty payments thus wanting deduction of tax u/s 194J.

The Mumbai bench did not decide the issue on merits and left it upon the AO the decision in accordance with latest judicial pronouncements of the higher courts (especially Karnataka High Court and Delhi High Court decisions) after consideration of nature of purchase transaction and rights involved therein.

However, the bench provided certain instant relief to the assessee as it held that in case the payments are considered as royalty under Explanation 2 to section 9(1)(vi), then the disallowance under section 40(a)(ia) can only be restricted to the amount outstanding as payable as on 31/03/2008 Out of the total amount of disallowance a sum of Rs. 1,57 crores was paid before 31-03-2008 with the outstanding amount remaining at Rs. 43 crores as at the close of the year. Thus the disallowance got reduced to Rs. 43 crores.

And further on where the recipients are found to have paid the tax on Rs. 43 crores then that might as well could benefit the assessee even if the disallowance stand survived after examination and verification by the AO. The bench following the principles laid down by the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverage Pvt Ltd. v. CIT 293 ITR 226 (SC) held that the taxes can be recovered from assessee only in the event of non-payment of taxes by recipient companies

How Transfer Pricing Techniques Improve Profitability

There are five transfer pricing techniques a corporation can choose from to improve profitability of not only business unit level, but the corporate-wide level. Each of the technique has strengths and weaknesses that, any incorrect transfer pricing can cause considerable dysfunctional purchasing behavior and could suffer profitability on corporate-wide level—thus selecting the most suitable transfer pricing techniques is critical.

First, here s a quick comparison of the five transfer pricing techniques, each shows four variables: profitability enhancement, performance review process required, ease of use and common problems.

Five Transfer Pricing Techniques Summarized

Account Headwise Latest Service Tax Codes

Service Tax Payee when paying Service Tax to Government, they must remember the Account Head Service Tax Codes, which are as follows:

SERVICE NAME	SERVICE CODE
ACCOMMODATION SERVICE	1462428
ADVERTISING AGENCY	388
ADVERTISING SPACE OR TIME	471
AIR TRANSPORT OF PASSENGER	473
AIR TRAVEL  AGENCY	455
AIRPORT SERVICES	446
ARCHITECTS SERVICES	395
ASSET MANAGEMENT SERVICES	487
ATM OPERATIONS	469
AUCTIONEERS SERVICES	476
BANKING AND FINANCIAL	415
BEAUTY PARLOURS	430
BROADCASTING SERVICE	413
BUSINESS AND EXHIBITION SERVICES	445
BUSINESS AUXILIARY SERVICES	442
BUSINESS SUPPORT SERVICES	475
CAB OPERATORS	389
CABLE OPERATORS	431
CARGO HANDLING SERVICES	425
CHARTERED ACCOUNTANTS	387
CLEANING SERVICES	461
CLEARING AND FORWARDING AGENCY	390
COMMERCIAL TRAINING & COACHING	438
COMMERCIAL USE OR EXPLOITATION OF ANY EVENT	346712
COMPANY SECRETARIES	397
CONSTRUCTION OF RES. COMPLEX	465
CONSTRUCTION SERVICES IN RESPECT OF COMMERCIAL OR INDUSTRIAL BUILDINGS AND CIVIL STRUCTURES	453
CONSULTING ENGINEER	391
CONTAINERS BY RAIL	474
CONVENTION SERVICE	411
COPYRIGHT ON CINEMATOGRAPHIC FILMS AND SOUND RECORDING SERVICE	346714
COSMETIC SURGERY OR PLASTIC SURGERY	495
COST ACCOUNTANTS	409
COURIER AGENCY	392
CREDIT CARD RELATED SERVICES	481
CREDIT RATING AGENCIES	400
CUSTOM HOUSE AGENT	403
DESIGN SERVICES	488
DEVELOPMENT AND SUPPLY OF CONTENT SERVICES	486
DREDGING SERVICES	459
DRY CLEANING SERVICES	432
EDU CESS	999
ELECTRICITY EXCHANGE SERVICE	346713
ERECTION,COMMISSIONING AND INSTALLATION	441
EVENT MANAGEMENT SERVICE	427
FACSIMILE SERVICES	422
FASHION DESIGNER SERVICES	433
FORWARD CONTRACT SERVICES	449
FRANCHISE SERVICES	444
GAMES OF CHANCE	346708
GENERAL INSURANCE BUSINESS	404
GOODS TRANSPORT OPERATORS	435
HEALTH CLUB AND FITNESS CENTER	429
HEALTH SERVICES	346709
INFORMATION TECHNOLOGY SOFTWARE SERVICE	489
INSURANCE AUXILIARY	414
INTELLECTUAL PROPERTY SERVICES OTHER THAN COPYRIGHT	451
INTERIOR DECORATORS	385
INTERNET CAFE	443
INTERNET TELECOMMUNICATION SERVICE	479
LEASED CIRCUITS	423
LEGAL CONSULTANCY SERVICE	497
LIFE INSURANCE SERVICES	434
MAILING LIST COMPILATION	464
MAINTENANCE OF MEDICAL RECORDS	346710
MAINTENANCE OR REPAIR SERVICE	440
MANAGEMENT CONSULTANTS	386
MANAGEMENT OF INVESTMENT UNDER UNIT LINKED INSURANCE PLAN (ULIP) SERVICE	490
MANDAP KEEPER	393
MANPOWER RECRUITMENT AGENCY	405
MARKET RESEARCH AGENCY	401
MEMBERSHIP OF CLUBS	462
MINING SERVICES	483
ONLINE INFORMATION AND DATA	412
OPINION POLL SERVICES	448
OUTDOOR CATERING	436
PACKAGING SERVICES	463
PAGER SERVICES	394
PANDAL OR SHAMIANA SERVICES	437
PHOTOGRAPHY SERVICE	410
PORT SERVICES	416
PREFERENTIAL LOCATION OR EXTERNAL / INTERNAL DEVELOPMENT OF COMPLEXES	346715
PROCESSING AND CLEARING HOUSE SERVICE	493
PROMOTION OF 'BRAND' OF GOODS, SERVICES, EVENTS, BUSINESS ENTITY ETC.	346711
PUBLIC RELATIONS SERVICE	477
RAIL TRAVEL AGENT	428
REAL ESTATE AGENTS	398
RECOGNISED ASSOCIATION OR REGISTERED ASSOCIATION COMMONLY KNOWN AS COMMODITY EXCHANGE SERVICE	492
RECOVERY AGENT	470
REGISTRAR TO AN ISSUE	467
RENTING OF IMMOVABLE PROPERTY SERVICES	484
RESTAURANT SERVICE	1462427
SCIENTIFIC AND TECHNICAL CONSULTANCY	424
Secondary and Higher EDU CESS	998
SECURITY AGENCIES	399
SERVICING OF MOTOR VEHICLES	417
SHARE TRANSFER AGENT	468
SHIP MANAGEMENT SERVICE	478
SITE PREPARATION AND CLEARANCE	458
SOUND RECORDING SERVICE	419
SPONSORSHIP SERVICE	472
STEAMER AGENT	406
STOCK BROKER	407
STOCK EXCHANGE SERVICE	491
STORAGE AND WAREHOUSE SERVICE	426
SUPPLY OF TANGIBLE GOODS FOR USE SERVICE	494
SURVEY AND EXPLORATION OF MINERAL	450
SURVEY AND MAP MAKING	460
TECHNICAL INSPECTION AND CERTIFICATION	439
TECHNICAL TESTING AND ANALYSIS	578020
TELECOMMUNICATION SERVICES	482
TELEGRAPH SERVICE	420
TELEPHONE SERVICES	408
TELEX SERVICES	421
TOUR OPERATOR	396
TRANSPORT BY CRUISE SHIPS	480
TRANSPORT OF GOODS BY AIR	447
TRANSPORT OF GOODS BY PIPELINE	457
TRANSPORT OF GOODS BY ROAD	456
TRANSPORT OF GOODS THROUGH WATERWAYS	496
TRAVEL AGENTS (OTHER THAN AIR/RAIL TRAVEL AGENTS)	454
TV OR RADIO PROGRAMME PRODUCTION	452
UNDER WRITERS	402
VIDEO TAPE PRODUCTION	418
WORKS CONTRACT SERVICES	485