Land Mark Judgment by Hon’ble Bombay High Court in case of Vodafone India Services Private Limited Vodafone India Services Pvt. Ltd vs. UOI (WRIT PETITION NO.871 OF 2014) (Bombay High Court) dated 10.10.2014 In the instant case, the assesse has issued shares to its holding company at premium (INR 8591) amounting to INR 246.38 crores. The said transaction was reported in Form 3CEB, although assesse claimed TP Provisions are not applicable on income arising on such transactions. The case was referred by the Learned AO to TPO who determined that the shares should have been issued at its NAV (INR 53,775) and the difference was deemed as loan to assessee for should have charged interest @ 13.5%. He accordingly computed the adjustment for the shares premium at Rs. 1308 crore and the interest thereon at Rs. 88 crore. The assessee filed a Writ Petition challenging the jurisdiction of the TPO/AO to make the adjustment. The High Court directed the DRP to decide the assessee’s objection regarding chargeability of alleged shortfall in share premium as a preliminary issue. Upon the DRP’s decision, the assessee filed another Writ Petition. Hon’ble High Court held allowing the Petition: “A plain reading of Section 92(1) of the Act very clearly brings out that income arising from a International Transaction is a condition precedent for application of Chapter X of the Act.” Further, Hon’ble High Court stated that Share premium have been made taxable by a legal fiction u/s 56(2)(viib) of the Act and the same is enumerated as Income in s. 2(24)(xvi) of the Act. However, what is bought into the ambit of income is the premium received from a resident in excess of the fair market value of the shares. In this case what is being sought to be taxed is capital not received from a non-resident i.e. premium allegedly not received on application of ALP. Therefore, absent express legislation, no amount received, accrued or arising on capital account transaction can be subjected to tax as Income. Reliance was placed on the decision in case of Cadell Weaving Mill Co. vs. CIT 249 ITR 265. It was also held that by introducing Section 56(2)(viib), the intent of parliament was to to tax issue of shares to a resident, when the issue price is above its fair market value. In the instant case, the Revenue’s case is that the issue price of equity share is below the fair market value of the shares issued to a non-resident. Thus Parliament has consciously not brought to tax amounts received from a non-resident for issue of shares, as it would discourage capital inflow from abroad. Thus the writ was answered in favour of the assesse giving a major relief to the Non – Resident companies. DOWNLOAD FULL TEXT OF THE JUDGMENT – Author Aditya Singhania and Nischal Agarwal —————- FICCI comments on Vodafone judgement New Delhi, 1 0 October 2014: FICCI is happy to note the positive determination made by Hon. Bombay High Court in a major transfer pricing tax issue of a large investor in India. Given that India has the largest number of transfer pricing disputes globally, quick resolutions are critical to build investor confidence. FICCI has repeatedly urged greater clarity on tax application on transfer pricing and taxing capital-raising based on share valuations. We hope this judgment will be allowed to remain conclusive so that it can set the ground for fair taxation in this context and forthcoming judgments on similar cases will merit same logic thus soothing a key anxiety amongst all investors; this would help catalyze actualization of investment plans for India.
ITR 1 (SAHAJ) , ITR 4S (SUGAM) & ITR 2 for AY 2014-15 are available for e-Filing.
ITR 1 (SAHAJ) , ITR 4S (SUGAM) & ITR 2 for AY 2014-15 are available for e-Filing.
ITR 1 (Sahaj)
https://incometaxindiaefiling.gov.in/eFiling/Portal/DownloadUtil/ITR_UTILITY/2014/ITR-1_2014.zip?0.0033931874204427004
ITR 4S (Sugam)
https://incometaxindiaefiling.gov.in/eFiling/Portal/DownloadUtil/ITR_UTILITY/2014/ITR-4S_2014.zip?0.3208457713481039
Problems faced by Salaried Assessees with respect to Income Tax Returns
Quite some number of times it so happens with people working in Corporates that a Professional would visit them, take their respective Tax Deducted at Source (TDS) certificateForm 16, file their Income Tax Return for a mere amount and then when a scrutiny or a demand notice comes then this very Professional is mostly not traceable with respect to the same.
To clarify, I would say that there is an issue at both the ends because as far as Assessee is concerned he/she wants to get his/her Income Tax Returns filed with minimum effort and expense and are not mostly concerned about the accuracy of the same, however, as far as Professionals are concerned they too, in order to get clients, facilitate them in away which might someday go against the clients.
Thus, Assessees and Professionals need to take care of certain simple things in order to make filing of Income Tax Return and post Return filing scenario a smooth walk.
Please file your Income Tax Returns accurately and timely !!!
SOLUTIONS FOR INCOME TAX ACT 1956
QUERY:One of the Company Assessee has factory building at Gurgaon and it is let out on a monthly rent of Rs 500000/- PM.The Company has no other income apart from the above rent.
1. May this income be returned as Income from Business or Profession
2. Income from other sources ?
3. Or it would be Income from House Property ?
What will be treatment for Unabsorbed Depreciation if the answer will be 2 or 3 from the above.
REPLY: The rental income in the given case will be chargeable under the head income from House property as it is only the factory building which has been given on rent. As regards unabsorbed depreciation for earlier years is concerned it is stated that same becomes part of current year’s depreciation only in a case where there are computation under the head business and profession as per section 28 of the Act. In case there is no business at all and no computation under the head profits and gains, unabsorbed depreciation will not be available for set off against income under other head as same can not form computation of profit in terms of section 28. Firstly there should be applicability of section 32(1) to claim set off of unabsorbed depreciation against income under other heads. So, it is necessary that the assessee should have some business income to claim set off of unabsorbed depreciation.
QUERY: Please advise me in case of a Charitable Trust ( Registered U/s 12 AA of the Income Tax Act enjoying Exemption U/S 11 ) running a Hospital and school and also one chemist shop inside the hospital and a books and stationery shop inside the school.Running of Chemist shop and books/stationery shop are business incidental to main objects of the trust. Whether this trust is Required to file Tax Audit Report in form No. 3CD besides Audit Report in Form No. 10B. Please guide.
REPLY: The rental income in the given case will be chargeable under the head income from House property as it is only the factory building which has been given on rent. As regards unabsorbed depreciation for earlier years is concerned it is stated that same becomes part of current year’s depreciation only in a case where there are computation under the head business and profession as per section 28 of the Act. In case there is no business at all and no computation under the head profits and gains, unabsorbed depreciation will not be available for set off against income under other head as same can not form computation of profit in terms of section 28. Firstly there should be applicability of section 32(1) to claim set off of unabsorbed depreciation against income under other heads. So, it is necessary that the assessee should have some business income to claim set off of unabsorbed depreciation.
QUERY: A & Co Ltd is having 1000 shares of X Ltd in its investment account purchased @ Rs 10/- each in the year 2005.The same is sold in 2013 @ Rs 10/- whereas the breakup value is Rs 11.20P. What is the tax implication in the books of A & Co Ltd.
REPLY: Capital gain in the case of A & co. will be determined on the basis of actual sale consideration, which is Rs. 10 per share notwithstanding that break up value is higher. Indexation benefit will also be available and there would be long term capital loss in the given case.
QUERY:
Form for claiming deduction U/s 10AA.
Please guide whether we are required to fill any form for claiming deduction U/s 10AA just like for claiming Sec 10A we have to file Form 56F (only for Sec 10A and not for
Sec 10AA) along with return of income.
REPLY: Sub-section (8) of section 10AA of the Act provides that provisions of sub-section (5) and (6) of section 10A of the Act will apply to this section also. Report in form No.56F is required to be submitted pursuant to provisions of sub-section (5) of section 10A of the Act. Accordingly, for claiming deduction under section 10AA also report in Form 56F is to be submitted.
I am having one doubt relating to sec 37 of Income Tax 1961. Interest paid on service tax of past 5 year service tax due short levy, non deduction, late deposit etc, is this allowable under Income tax act.
REPLY:
Service tax payable as well as interest on delay is deductible business expense. Penalty, however, is not deductible.
Two Pvt Ltd company made a joint venture to execute a govt project. After the completion of the project the joint venture was duly assesed Now both pvt ltd company distribute the joint venture profit as per the agreement. I just want to ask that in which head that distrubuted profit will accounte for whether income of the company or its reserve parts. & if it will be treated as income whether it will be a exempted income.
REPLY:
In terms of Proviso to section 86 of the Income Tax Act where tax has been paid by the Association of Persons at the maximum marginal rate or at a rate higher than the maximum marginal rate, the share of a member therein shall not be included in his total income.In the given case tax would have been paid by the JV at maximum marginal rate and therefore, share of income will not be includible in the income of the member.
A HUF is engaged in trading of shares and securities and is having following income
1. Income from delivery based equity trading (Treated as Business Income in ITR)
2. Income from Commodity Trading (MCX) – (Treated as Income from Speculative Business in ITR)
3. Income from trading in Equity Futures – (Treated as Income from Speculative Business in ITR)
4. Income from Rent on sub-let (property is in the name of HUF on Salami system) – (Treated as Business Income in ITR)
5. Interest Income – (Treated as Income from Other sources in ITR)
6. Dividend Income – (Treated as exempt income in ITR)
HUF has b/f business losses of rs. 30000 and b/f losses from speculative business 125000
Query :
1. Whether the HUF has rightly treated the income under different heads as said above
2. Currently HUF is planning to raise funds from members of HUF and give loan to a third party against interest
3. Under which head such interest income is to be treated in the books (Business / Other Sources)
4. Whether interest paid to members is allowed as deduction against interest income (no interest has been provided on loan from Karta in previous year)
5. Whether this interest income is allowed to be set off against above brought forward losses ….
REPLY:
Categorization of income appears to be ok except that income from sub-letting can not be business income. It can be income from other source. Brought forward business loss can be set off only against business income in subsequent years. Interest paid on loan taken from members for giving loan to third party will be deductible. Interest income will be chargeable under the head income from other sources as financing is not a regular business in case of HU F.
29C IS APPLICABLE FOR f.Y.2012-13: ASSESSEE CLAIMING DEDUCTION U/S 80IA,IB ETC MAY ALSO HAVE TO SUBMIT FORM 29C: DONOT FORGET:ASSESSEE OTHER THAN CO. HAVE TO PAY ALTERNATE MINIMUM TAX (SIMILAR TO MAT) & FORM 29C HAVE TO BE FILED TO AO AS THIS FORM IS NOT ONLINE
1) KINDLY NOTE THAT THIS FORM IS APPLICABLE FROM 1.4.2013 .i.e. FOR A.Y. 2013-14. SO IT IS APPLICABLE FOR F.Y.2012-13.
2) ASSESSEE CLAIMING DEDUCTION U/S 80IA,IB ETC MAY ALSO HAVE TO SUBMIT FORM 29C TO THE A.O. OFFLINE.
DONOT FORGET: ASSESSEE OTHER THAN CO. HAVE TO PAY ALTERNATE MINIMUM TAX (SIMILAR TO MAT) & FORM 29 C HAVE TO BE FILED TO AO AS THIS FORM IS NOT ONLINE
Notification No. 34/2012 [F.No. 142/22/2012-SO(TPL)]/so 1979 (E), dated 28-8-2012
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 (Ninth Amendment) Rules, 2012.
(2) They shall come into force on the 1st day of April, 2013.
(Note:
FOR A.Y. 2013-14. SO IT IS APPLICABLE FOR F.Y.2012-13.
)
2. In the Income-tax Rules, 1962, (hereafter referred to as the “said rules”), for rule 40BA, the following rule shall be substituted, namely:-
“Special provisions for payment of tax by certain persons other than a company.
40BA. The report of an accountant which is required to be furnished by the assessee under sub-section (3) of section 115JC, shall be in form No. 29C”.
3. In Appendix-II of the said rules, for Form No. 29C, the following form shall be substituted, namely:-
“FORM NO. 29C
[See rule 40BA]
Report under section 115JC of the Income-tax Act, 1961 for computing adjusted total income and alternate minimum tax of the person other than a company
1. I/We* have examined the accounts and records of_____________ (name and address of the assessee with PAN) engaged in business of _______________ (nature of business) in order to arrive at the adjusted total income and the alternate minimum tax for the year ended on the 31st March, _____
2. (a) I/We* certify that the adjusted total income and the alternate minimum tax has been computed in accordance with the provisions of Chapter XII-BA of the Income-tax Act. The tax payable under section 115JC of the Income-tax Act in respect of the assessment year ____________ is Rs. ________, which has been determined on the basis of the details in Annexure A to this Form.
3. In my/our * opinion and to the best of my/our* knowledge and according to the explanations given to me/us* the particulars given in the Annexure A are true and correct.
(Signature and Stamp/Seal of the Signatory)
†Accountant
| Place: |
Name of the Signatory: |
| Date: |
Full Address: |
|
Membership No: |
Notes:
1. *Delete whichever is not applicable.
2. †This certificate is to be given by –
(i) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
(ii) any person, who in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State.
3. Where any of the matters stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefor.
ANNEXURE A
[See paragraph 2]
Details relating to the computation of Adjusted Total Income and Alternate Minimum Taxfor the purposes of section 115JC of the Income-tax Act, 1961
|
1. |
Name of the assessee | |||
|
2. |
Address of assessee | |||
|
3. |
Permanent Account Number | |||
|
4. |
Assessment year | |||
|
5. |
Total income of the assessee computed in the manner laid down in the Income-tax Act before giving effect to Chapter XII-BA of the Income-tax Act, 1961(43 of 1961) | |||
|
6. |
Income-tax payable on total income referred to in Column 5 above | |||
|
7. |
The amount of deduction claimed under any section (other than section 80P) included in Chapter VI-A under the heading “C. – Deductions in respect of certain incomes” |
Sl. No. |
Section under whichdeductionclaimed |
Amount ofdeductionclaimed |
|
8. |
The amount of deduction claimed under section 10AA | |||
|
9. |
Adjusted total income of the assessee (5+7+8) | |||
|
10. |
Minimum alternate tax (18.5% of adjusted total income computed in column 9 above)”. | |||
STEPS TO FIND 10CCE
10CCBBA, 10CCBC, 49C, 56F, 66, 3CA,3AD,3AE,3CE,3EA
ETC STEP1: Log in as assessee & add for the relevant form say , for Form 10CCB
STEP2: Log in as ca
STEP3: Click “ Prepare & submit online form” under “E-FILE ”
STEP4: Select relevant form and proceed
How to file 10CCB etc. IF ASSESSEE HAVE TWO OR MORE UNDERTAKINGS
NOTE: TO ENABLE CAs TO FILL UP THIS FORM, I HAD PREPARED THESE STEPS. THIS IS NOT PRESCRIBED BY DEPARTMENTS. YOU USE YOUR DISCRETION AND FILE.
STEP1: Prepare physical tax audit reports as usual i.e. Two or more tax audit reports signed by same or different CAs.
STEP2: Prepare one “online consolidated form” and upload. While preparing this forms, you will not be able to disclose many dates and other informations undertakingwise in the online form. Write all these informations in a separate sheet undertakingwise & attach it with p/L & b/S with online form. Alternatively, you can also attach scan copy of Physical forms with p/L & b/S for
better
disclosure of facts. Query: How to file it online FORM 29C is not available on website?
Ans: it is not mandatory to file form 29C online. So, can be filed offline to the department.
CARES WHILE UPLOADING ONLINE 3CD
CARE1: IF YOU HAVE ANY COMMENTS OR OBSERVATIONS, U CAN ATTACH IT AS “OTHER REPORTS”.
CARE2: DO NOT FORGET TO FILE:
A) NOTES OF ACCOUNTS & SCHEDULE OF B/S & P/L AS THERE ARE FORMING PART OF FINANCIAL STATEMENTS
B) STATUTARY AUDIT REPORT, IN CASE OF COMPANY .
C) EXCISE REPORTS & COST AUDIT REPORT , IF ANY
CARE3: DO NOT FORGET TO FILE RETURN BY MENTIONING THE DATE OF FURNISHING OF REVISED FORM 3CD.
HOW TO FILE TWO OR MORE PHYSICAL TAX AUDIT REPORT OF SAME ASSESSEE AUDITED BY SAME/DIFFERENT CAS: prepared CA Nitesh More
STEP1: Prepare physical tax audit reports as usual i.e. Two or more tax audit reports signed by same or different CAs.
STEP2: You can upload “single xml file” only for each type of Form (report). There are six types of forms available at the time of uploading. These are FORM 3CA-3CD, FORM 3CB-3CD, FORM 3CEB, FORM6B, FORM10B, FORM 10BB, FORM 29B.
Note 1: Suppose, you have two physical FORMS 3CB-3CD. So, a consolidated online form 3CB-3CD will be prepared and efilled by any CA among those ca who signed physical tax audit report.
Note 2: Kindly note that if you have one Form 3CA-3CD, and one FORM 3CB-3CD, than each form will be uploaded separately by same or different CAs who signed physical report.
STEP3: Select who will file online form if you have two or more same form signed by different CAs among those who signed physical report.
STEP4: Prepare one “online consolidated form” and upload .
STEP5: If you have any comments or observations, you can always attach it as other report.
New STEPWISE PROCESS TO FILE REVISE ONLINE 3CD?
STEP1: PREPARE RECTIFIED XML AS USUAL
STEP2: WHILE UPLOADING, SELECT REVISE OPTION (ENABLED YESTERDAY)
STEP3: SELECT WHY YOU ARE REVISING FORM 3CD out of the following:
a) REVISION OF ACCOUNTS OF COMPANY, AFTER ITS ADOPTION IN AGM
b) CHANGE OF LAW
c) CHANGE IN INTERPRETATION
d) OTHERS
STEP4: UPLOAD xml, IT WILL BE REVISED.
STEP5: DO NOT FORGET TO FILE RETURN BY MENTIONING THE DATE OF FURNISHING OF REVISED FORM 3CD.
HOW TO UPLOAD XML PREPARED IN e-PR11/Software with ePR12
Those who have prepared their TAR in e-PR 11 with software or with e-PR11 utility but have not yet uploaded the same:
may kindly OPEN THE XML (prepared in software or e-PR11) IN PR 12 AND VALIDATE IT UNDER ePR12. SAVE THE SAME AND UPLOAD IT.
(However, in case you have reported anything against clause 30 or 31 of TAR in e-PR11, please re-enter those two clauses in e-PR12 to avoid swapping of the information for these two clauses)
SOLUTIONS: LINE NO 15 PROBLEM OF TAR: HOW TO UPLOAD XML PREPARED IN e-PR11/Software with ePR12
LINE NO 15 PROBLEM OF TAR MAY BE DUE TO THE FACT THAT YOU HAD PREPARED XML IN PR11. BUT NOW PR12 IS RELEASED. THOSE Who have prepared their TAR in e-PR 11 with software or with e-PR11 utility but have not yet uploaded the same:
may kindly OPEN THE XML (prepared in software or e-PR11) IN PR 12 AND VALIDATE IT UNDER ePR12. SAVE THE SAME AND UPLOAD IT.
(However, in case you have reported anything against clause 30 or 31 of TAR in e-PR11, please re-enter those two clauses in e-PR12 to avoid swapping of the information for these two clauses)
ASSESSEE OTHER THAN CO. HAVE TO PAY ALTERNATE MINIMUM TAX (SIMILAR TO MAT) & FORM 29C HAVE TO BE FILED TO AO AS THIS FORM IS NOT ONLINE
ASSESSEE OTHER THAN CO. HAVE TO PAY ALTERNATE MINIMUM TAX (SIMILAR TO MAT) & FORM 29 C HAVE TO BE FILED TO AO AS THIS FORM IS NOT ONLINE
Notification No. 34/2012 [F.No. 142/22/2012-SO(TPL)]/so 1979 (E), dated 28-8-2012
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 (Ninth Amendment) Rules, 2012.
(2) They shall come into force on the 1st day of April, 2013.
2. In the Income-tax Rules, 1962, (hereafter referred to as the “said rules”), for rule 40BA, the following rule shall be substituted, namely:-
“Special provisions for payment of tax by certain persons other than a company.
40BA. The report of an accountant which is required to be furnished by the assessee under sub-section (3) of section 115JC, shall be in form No. 29C”.
3. In Appendix-II of the said rules, for Form No. 29C, the following form shall be substituted, namely:-
“FORM NO. 29C
[See rule 40BA]
Report under section 115JC of the Income-tax Act, 1961 for computing adjusted total income and alternate minimum tax of the person other than a company
1. I/We* have examined the accounts and records of_____________ (name and address of the assessee with PAN) engaged in business of _______________ (nature of business) in order to arrive at the adjusted total income and the alternate minimum tax for the year ended on the 31st March, _____
2. (a) I/We* certify that the adjusted total income and the alternate minimum tax has been computed in accordance with the provisions of Chapter XII-BA of the Income-tax Act. The tax payable under section 115JC of the Income-tax Act in respect of the assessment year ____________ is Rs. ________, which has been determined on the basis of the details in Annexure A to this Form.
3. In my/our * opinion and to the best of my/our* knowledge and according to the explanations given to me/us* the particulars given in the Annexure A are true and correct.
(Signature and Stamp/Seal of the Signatory)
†Accountant
| Place: |
Name of the Signatory: |
| Date: |
Full Address: |
|
Membership No: |
Notes:
1. *Delete whichever is not applicable.
2. †This certificate is to be given by –
(i) a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
(ii) any person, who in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State.
3. Where any of the matters stated in this report is answered in the negative or with a qualification, the report shall state the reasons therefor.
ANNEXURE A
[See paragraph 2]
Details relating to the computation of Adjusted Total Income and Alternate Minimum Taxfor the purposes of section 115JC of the Income-tax Act, 1961
|
1. |
Name of the assessee | |||
|
2. |
Address of assessee | |||
|
3. |
Permanent Account Number | |||
|
4. |
Assessment year | |||
|
5. |
Total income of the assessee computed in the manner laid down in the Income-tax Act before giving effect to Chapter XII-BA of the Income-tax Act, 1961(43 of 1961) | |||
|
6. |
Income-tax payable on total income referred to in Column 5 above | |||
|
7. |
The amount of deduction claimed under any section (other than section 80P) included in Chapter VI-A under the heading “C. – Deductions in respect of certain incomes” |
Sl. No. |
Section under whichdeductionclaimed |
Amount ofdeductionclaimed |
|
8. |
The amount of deduction claimed under section 10AA | |||
|
9. |
Adjusted total income of the assessee (5+7+8) | |||
|
10. |
Minimum alternate tax (18.5% of adjusted total income computed in column 9 above)”. | |||
STEPS TO FIND 10CCE
10CCBBA, 10CCBC, 49C, 56F, 66, 3CA,3AD,3AE,3CE,3EA
ETC
STEP1: Log in as assessee & add for the relevant form say , for Form 10CCB
STEP2: Log in as ca
STEP3: Click “ Prepare & submit online form” under “E-FILE ”
STEP4: Select relevant form and proceed
How to file 10CCB etc. IF ASSESSEE HAVE TWO OR MORE UNDERTAKINGS
NOTE: TO ENABLE CAs TO FILL UP THIS FORM, I HAD PREPARED THESE STEPS. THIS IS NOT PRESCRIBED BY DEPARTMENTS. YOU USE YOUR DISCRETION AND FILE.
STEP1: Prepare physical tax audit reports as usual i.e. Two or more tax audit reports signed by same or different CAs.
STEP2: Prepare one “online consolidated form” and upload. While preparing this forms, you will not be able to disclose many dates and other informations undertakingwise in the online form. Write all these informations in a separate sheet undertakingwise & attach it with p/L & b/S with online form. Alternatively, you can also attach scan copy of Physical forms with p/L & b/S for
better
disclosure of facts.
Query: How to file it online FORM 29C is not available on website?
Ans: it is not mandatory to file form 29C online. So, can be filed offlin
e
to the department. CARES WHILE UPLOADING ONLINE 3CD
CARE1: IF YOU HAVE ANY COMMENTS OR OBSERVATIONS, U CAN ATTACH IT AS “OTHER REPORTS”.
CARE2: DO NOT FORGET TO FILE:
A) NOTES OF ACCOUNTS & SCHEDULE OF B/S & P/L AS THERE ARE FORMING PART OF FINANCIAL STATEMENTS
B) STATUTARY AUDIT REPORT, IN CASE OF COMPANY .
C) EXCISE REPORTS & COST AUDIT REPORT , IF ANY
CARE3: DO NOT FORGET TO FILE RETURN BY MENTIONING THE DATE OF FURNISHING OF REVISED FORM 3CD.
HOW TO FILE TWO OR MORE PHYSICAL TAX AUDIT REPORT OF SAME ASSESSEE AUDITED BY SAME/DIFFERENT CAS: prepared CA Nitesh More
STEP1: Prepare physical tax audit reports as usual i.e. Two or more tax audit reports signed by same or different CAs.
STEP2: You can upload “single xml file” only for each type of Form (report). There are six types of forms available at the time of uploading. These are FORM 3CA-3CD, FORM 3CB-3CD, FORM 3CEB, FORM6B, FORM10B, FORM 10BB, FORM 29B.
Note 1: Suppose, you have two physical FORMS 3CB-3CD. So, a consolidated online form 3CB-3CD will be prepared and efilled by any CA among those ca who signed physical tax audit report.
Note 2: Kindly note that if you have one Form 3CA-3CD, and one FORM 3CB-3CD, than each form will be uploaded separately by same or different CAs who signed physical report.
STEP3: Select who will file online form if you have two or more same form signed by different CAs among those who signed physical report.
STEP4: Prepare one “online consolidated form” and upload .
STEP5: If you have any comments or observations, you can always attach it as other report.
New STEPWISE PROCESS TO FILE REVISE ONLINE 3CD?
STEP1: PREPARE RECTIFIED XML AS USUAL
STEP2: WHILE UPLOADING, SELECT REVISE OPTION (ENABLED YESTERDAY)
STEP3: SELECT WHY YOU ARE REVISING FORM 3CD out of the following:
a) REVISION OF ACCOUNTS OF COMPANY, AFTER ITS ADOPTION IN AGM
b) CHANGE OF LAW
c) CHANGE IN INTERPRETATION
d) OTHERS
STEP4:
UPLOAD xml, IT WILL BE REVISED.
STEP 5:
DO NOT FORGET TO FILE RETURN BY MENTIONING THE DATE OF FURNISHING OF REVISED FORM 3CD
.
HOW TO UPLOAD XML PREPARED IN e-PR11/Software with ePR12
Those who have prepared their TAR in e-PR 11 with software or with e-PR11 utility but have not yet uploaded the same:
may kindly OPEN THE XML (prepared in software or e-PR11) IN PR 12 AND VALIDATE IT UNDER ePR12. SAVE THE SAME AND UPLOAD IT.
(However, in case you have reported anything against clause 30 or 31 of TAR in e-PR11, please re-enter those two clauses in e-PR12 to avoid swapping of the information for these two clauses)
SOLUTIONS: LINE NO 15 PROBLEM OF TAR: HOW TO UPLOAD XML PREPARED IN e-PR11/Software with ePR12
LINE NO 15 PROBLEM OF TAR MAY BE DUE TO THE FACT THAT YOU HAD PREPARED XML IN PR11. BUT NOW PR12 IS RELEASED. THOSE Who have prepared their TAR in e-PR 11 with software or with e-PR11 utility but have not yet uploaded the same:
may kindly OPEN THE XML (prepared in software or e-PR11) IN PR 12 AND VALIDATE IT UNDER ePR12. SAVE THE SAME AND UPLOAD IT.
(However, in case you have reported anything against clause 30 or 31 of TAR in e-PR11,please re-enter those two clauses in e-PR12 to avoid swapping of the information for these two clauses)
Forms 15CA & 15CB changed again; no reporting of exempt income, no filing of form 15CB for certain payments
INCOME-TAX (FOURTEENTH AMENDMENT) RULES, 2013 – SUBSTITUTION OF RULE 37BB AND FORM NOS. 15CA AND 15CB
NOTIFICATION NO. 67/2013 [F. NO. 149/119/2012-SO (TPL)]/SO 2659(E), DATED 2-9-2013
In exercise of the powers conferred by sub-section (6) of section 195 and section 192, section 194B, section 194BB, section 194E, section 194LB, section 194LC, section 194LD, section 196B, section 196C, section 196D read with section 295 of the Income-tax Act, 1961 (43 of 1961) and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, issued by the Central Board of Direct Taxes vide number S.O.2363(E) dated the 5th August, 2013 published in the Gazette of India, dated the 5th August, 2013, 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 (14th Amendment) Rules, 2013.
(2) They shall come into force on the 1st day of October, 2013.
2. In the Income-tax Rules, 1962 (hereafter referred to as the said rules), for rule 37BB, the following rule shall be substituted, namely:—
“37BB. Furnishing of information by the person responsible for making any payment including any interest or salary or any other sum chargeable to tax, to a non-resident, not being a company, or to a foreign company—(1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish the following, namely:—
| (i) | the information in Part A of Form No.15CA, if the amount of payment does not exceed fifty thousand rupees and the aggregate of such payments made during the financial year does not exceed two lakh fifty thousand rupees; | |
| (ii) | the information in Part B of Form No.15CA for payments other than the payments referred in clause (i) after obtaining— |
| (a) | a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288; or | |
| (b) | a certificate from the Assessing Officer under section 197; or | |
| (c) | an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195. |
(2) The information in Form No. 15CA shall be furnished by the person electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.
(3) An income-tax authority may require the authorised dealer to furnish the signed printout referred to in sub-rule (2) for the purposes of any proceedings under the Act.
(4) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture, transmission of data and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner specified.
Explanation 1.— For the purposes of this rule, “authorised dealer” means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).
Explanation 2.—For the removal of doubts, it is hereby clarified that for payments of the nature specified in column (3) of the specified list below, no information is required to be furnished under sub-rule (1).
SPECIFIED LIST
| Sl.No. | Purpose code as per RBI | Nature of payment | |
| (1) | (2) | (3) | |
| 1 | S0001 | Indian investment abroad -in equity capital (shares) | |
| 2 | S0002 | Indian investment abroad -in debt securities | |
| 3 | S0003 | Indian investment abroad -in branches and wholly owned subsidiaries | |
| 4 | S0004 | Indian investment abroad -in subsidiaries and associates | |
| 5 | S0005 | Indian investment abroad -in real estate | |
| 6 | S0011 | Loans extended to Non-Residents | |
| 7 | S0202 | Payment- for operating expenses of Indian shipping companies operating abroad. | |
| 8 | S0208 | Operating expenses of Indian Airlines companies operating abroad | |
| 9 | S0212 | Booking of passages abroad -Airlines companies | |
| 10 | S0301 | Remittance towards business travel. | |
| 11 | S0302 | Travel under basic travel quota (BTQ) | |
| 12 | S0303 | Travel for pilgrimage | |
| 13 | S0304 | Travel for medical treatment | |
| 14 | S0305 | Travel for education (including fees, hostel expenses etc.) | |
| 15 | S0401 | Postal services | |
| 16 | S0501 | Construction of projects abroad by Indian companies including import of goods at project site | |
| 17 | S0602 | Freight insurance – relating to import and export of goods | |
| 18 | S1011 | Payments for maintenance of offices abroad | |
| 19 | S1201 | Maintenance of Indian embassies abroad | |
| 20 | S1 202 | Remittances by foreign embassies in India | |
| 21 | S1301 | Remittance by non-residents towards family maintenance and-savings | |
| 22 | S1302 | Remittance towards personal gifts and donations | |
| 23 | S1303 | Remittance towards donations to religious and charitable institutions abroad | |
| 24 | S1304 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments. | |
| 25 | S1305 | Contributions or donations by the Government to international institutions | |
| 26 | S1306 | Remittance towards payment or refund of taxes. | |
| 27 | S1501 | Refunds or rebates or reduction in invoice value on account of exports | |
| 28 | S1503 | Payments by residents for international bidding”. |
3. In the said rules, in Appendix II, for Form No.15CA and Form No. 15CB, the following Forms shall be substituted, namely:—
| Income-Tax Department |
FORM NO. 15CA
(See rule 37BB)
Information to be furnished for payments, chargeable to tax, to a non-resident not being a company, or to a foreign company
|
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| Ack. No. | ||||
|
FORM NO. 15CB
(See rule 37BB)
Certificate of an accountant 1
|
1. To be signed and verified by an accountant (other than an employee) as defined in the Explanation below sub-section (2) of section 288 of the Income-tax Act, 1961.
Revenue can’t attach sum in bank account in excess of demand raised after completion of assessment: HC
IT: Revenue cannot attach entire amount standing to credit of assessee, in excess of demand raised on completion of assessment
■■■
HIGH COURT OF PUNJAB AND HARYANA
Nirmal Singh
v.
HEMANT GUPTA AND MS. RITU BAHRI, JJ.
C.W.P. NO. 24380 OF 2011
JANUARY 29, 2013
Section 281B of the Income-tax Act, 1961 – Provisional attachment to protect revenue in certain cases [Extent of attachment] – Bank accounts of assessee were provisionally attached under section 281B – After filing of writ petition, regular assessment was framed and total tax demand was raised against assessee – Whether, where assessment had been completed, revenue was unjustified in attaching entire amount standing to credit of assessee over and above demand raised against assessee – Held, yes [Para 4] [In favour of assessee]
FACTS
| ■ | Bank accounts of assessee were provisionally attached to protect revenue’s interest under section 231B | |
| ■ | Subsequently, regular assessment was framed and total tax demand was raised against assessee. | |
| ■ | The assessee filed instant writ petition claiming that amount attached standing to his credit over and above the demand raised against him should have been released by revenue on completion of assessment. |
HELD
| ■ | The argument raised by the assessee is meritorious. The bank accounts of an assessee are provisionally attached to secure the interest of the revenue pending assessment proceedings to meet the eventuality of demand of tax to be raised against such assessee. Once the assessment has been completed, the revenue would be justified to attach the account to the extent of demand raised against an assessee and not the entire amount standing to the credit of the assessee. The action of the revenue in extending the period of attachment in respect of all the bank accounts of the assessee is wholly unjustified and illegal. [Para 4] | |
| ■ | Consequently, the present writ petition is allowed and the respondents are directed to release provisional attachment except to the extent of tax demand raised against the assessee. Such tax demand shall not be realized till such time, the appeal filed by the assessee is not decided by the competent authority. [Para 5] |
V.K. Rana for the Petitioner. Vivek Sethi for the Respondent.
JUDGMENT
Hemant Gupta, J. – The challenge in the present writ petition is to the orders dated December 12, 2011 (annexures P.9 and P.10), whereby the bank accounts of the petitioner were provisionally attached in exercise of the powers conferred under section 281B of the Income-tax Act, 1961 (for short, “the Act”).
2. The amount of Rs. 12,13,023 as on May 27, 2011, was attached, vide annexure P.9 whereas the amount of Rs. 16,87,031 and Rs. 5,35,481 as on November 17, 2011, were attached, vide annexure P.10. Though the attachment was said to be operative for a period of two years up to December 12, 2003, in the aforesaid orders but by virtue of a subsequent corrigendum (annexure R.6), the period of attachment was corrected up to June 11, 2012. Subsequently, vide annexures P.11 and P.12, the period of attachment has been ordered to be extended by another six months and still another six months subsequently.
3. Learned counsel for the petitioner has pointed out that after the filing of the writ petition, the regular assessment has been framed on December 20, 2011, and the total tax demand raised against the petitioner is Rs. 9,62,378. Learned counsel for the petitioner vehemently argued that the provisional attachment could be operative only prior to the assessment but once assessment has been framed, the Revenue is entitled to attach the amount to the extent of demand raised and not all the bank accounts of the petitioner.
4. We find that the argument raised by the learned counsel for the petitioner is meritorious. The bank accounts of an assessee are provisionally attached to secure the interest of the Revenue pending assessment proceedings to meet the eventuality of demand of tax to be raised against such assessee. Once the assessment has been completed, the Revenue would be justified to attach the account to the extent of demand raised against an assessee and not the entire amount standing to the credit of the assessee. We find that the action of the Revenue in extending the period of attachment in respect of the all the bank accounts of the petitioner and in respect of over Rs. 33 lakhs in these circumstances is wholly unjustified and illegal.
5. Consequently, we allow the present writ petition and direct the respondents to release provisional attachment except to the extent of tax demand raised against the petitioner. Such tax demand shall not be realized till such time, the appeal filed by the assessee is not decided by the competent authority.
Query on Tax Audit Assignments to be Signed by CA
Question: If there are 10 partners in a firm of Chartered
Accountants, then how many tax audits reports can each partner sign in
a financial year?
Answer: As per Chapter VI of Council General Guidelines, 2008
(Tax Audit Assignments under Section 44AB of the Income Tax Act,
1961), a member of the Institute in practice shall not accept, in a
financial year, more than the specified number of tax audit
assignments as prescribed under Section 44AB of the Income Tax Act,
1961. The specified number of tax audit assignments under Section 44AB
of the Income Tax Act, 1961 is 45.
It is further provided in Chapter VI of Council General Guidelines,
2008 that in case of firm of Chartered Accountants in practice,
specified number of tax audit assignments means 45 tax audit
assignments per partner of the firm, in a financial year.
Therefore, if there are 10 partners in a firm of Chartered Accountants
in practice, then all the partners of the firm can collectively sign
450 tax audit reports. This maximum limit of 450 tax audit assignments
may be distributed between the partners in any manner whatsoever. For
instance, 1 partner can individually sign 450 tax audit reports in
case remaining 9 partners are not signing any tax audit report.
It is needless to say that the tax audit assignment should be in
accordance with the Standard on Quality Control (SQC) 1: Quality
Control for Firms that Perform Audits and Reviews of Historical
Financial Information, and Other Assurance and Related Services
Engagements.
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