Members have time and again, raising queries regarding maximum numbers of audits that may be accepted by a Chartered Accountant and the various situations under which numbers of audits would be reckoned. Therefore, a comparison of No. of tax audits and company audits permissible for a member in practice, and the possible situations, are encapsulated here for your ready reference. The limit of tax audits and company audits is discussed in Chapters VI and VIII of the Council General Guidelines, 2008 respectively, which have a mandatory compliance.
This PPT is released by Ministry of Finance on 13.07.2012 and it discusses following important changes in Services tax effected by Union Budget 2012 :- Budget at a glance Rules of interpretation Place of Provision Rules, 2012 Negative list concept Point of Taxation Miscellaneous Towards GST Download PPT on Changes in Service Tax
ACIT v. Deepak S. Bheda The Assessing Officer denied the benefit claimed by the assessee under section 54 EC towards the investment made in REC bonds for a sum of Rs. 50 lakh out of total long-term capital gain of Rs. 3.40 crores. The Assessing Officer was of the view that once the exemption has been claimed under section 54F and the entire capital gain has not been utilised for the purchase of residential house, then the net consideration which is not appropriated by the assessee towards the purchase of new asset and also not deposited in the banks or institution as specified and notified in the official Gazette by the Central Government as per the provisions of sub section (4) of section 54F, the assessee cannot avail the exemption under section 54 EC.
Budget 2012 Presented by Finance Minister on 17.03.2012 proposed that the cycles for the payment service tax and filing of return should coincide. In View of the same Following Changes are proposed in Rules Related to periodicity of Service tax Return Filing and Service tax payment.
ADVISORY FOR MULTIPURPOSE EMPANELMENT FORM (MEF) FOR THE YEAR 2012-13 – 1. Last date for submission of applications on the website www.meficai.org is 14th August 2012. 2. Please use Internet Explorer 6.0/ Mozilla Firefox 7.0 or later versions to fill MEF 2012-13. Members are advised to fill MEF well in advance to avoid last minute rush and technical problems. 3. The information filled in by the applicant in MEF can be edited/modified any number of times before online submission of MEF.
CIRCULAR NO. 163/14/2012-ST, Concerns have been expressed in various forums regarding the leviability of service tax on the remittance of foreign currency in India from overseas. 2. The matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas. In the negative list regime, ‘service’ has been defined in clause (44) of section 65B of the Finance Act 1994, as amended, which excludes transaction in money. As the amount of remittance comprises money, the activity does not comprise a ‘service’ and thus not subjected to service tax.
In any case, expert advice obtained by the assessee from Vakharia & Associates lacks credibility and just because the assessee’s claim is supported by a chartered accountant’s opinion, this fact per se cannot absolve the assessee from penalty under section 271(1)(c). In the case of CIT Vs Escort Finance Limited (328 ITR 44), Hon’ble Delhi High Court has rejected assessee’s reliance on expert advice to avoid the penalty
Ultimately the assessing officer was of the opinion that a firm, which had the capacity to lend an amount of Rs. 71,50,000/- that too, to one of its partners or others is reasonably presumed to have the taxable income and if the assessee had never disclosed its expenditure or otherwise earlier and in such circumstances, if the officer records that he has reason to believe that assessee had taxable income and a non-filing of the return is not merely suspicion and therefore in bringing to tax such amount by re-opening.
July is the month when most of us in the tax bracket need to file income tax returns, more so in case of individual assessees and where audit is not required. 31st July is the last date for filing income tax returns by all individuals, firms, HUFs, etc. whose books of accounts are not subject to audit under any law including income tax. This generally covers all individual assessees including salaried persons, professionals etc.
After six years of uncertainties, finally section 66A of the Finance Act, 1994 has few more days to survive. 1.7.2012 is the day when this section will cease to exist. On this date, Export of Services Rules, 2005 and Taxation of services (Provided from outside India and received in India) Rules, 2006 will also extinguish. In place of these, a new charging section 66B will come into force and instead of import-export rules, a new set of rules namely, Place of provision of services rules, 2012 will be implemented. In this article, an effort has been made to bring out its impact on the import of intermediary services from abroad.
