Budget 2012 Presentation : CA Manish Dafria

Hey Friends CA Manish Dafria an renowned personality in Taxation had given Budget 2012 presentation in Indore Tax Practitioner Meeting.

link

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Work Contract New Defination : Construction Biz : CA Kakarla Manindar

New Definition for “Work Contract”
A new definition for the “Work Contract” has been introduced through Sec 65B (54) and is as follows:
“works contract” means a contract wherein transfer of property in goods involved in the execution of such contract is leviable to tax as sale of goods and such contrat is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, improvement, repair, renovation, alteration of any building or structure on land or for carrying out any other similar activity or a part thereof in relation to any building or structure on land;
Two services specified under “Declared Service”
Under the present Negative List approach, certain activities are declared as services, though they may not be considered as services in commercial parlance.
Section 65B (22) has been introduced now and according to which the definition of declared service is as follows
“declared service” means any activity carried out by a person for another person for consideration and declared as such under section 66E”
The following two services relating to constructing industry are declared as services.

1. Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly except where the entire consideration is received after issuance of completion certificate by the competent authority.

Comments:

• Therefore construction of building, complex or civil structure cannot be treated as service in case where the entire consideration is received after issuance of completion certificate by the competent authority.

• An explanation has been inserted to provide the meaning of competent authority as follows:

The Government or any authority required to issue completion certificate under any law for the time being in force. In case there is no requirement to issue such certificate then the competent authority shall be any as follows:

1. Architect- Registered with Council of Architects

2. Chartered Engineer- Registered with Institution of Engineers (India)

3. Licensed Surveyor of the respective local body of the city or town or village or development or planning authority.

Earlier under the Circular No. 1/2011(CE&ST PuneIII TF) dated 15/02/2011, the competent authority includes architects, chartered engineers, licensed surveyor besides any Government Authority. Now the position is that in case if the Government Authorities are required to issue “Completion Certificate” under the state laws then they are the only ‘Competent Authority’. Only in case of no such requirement under the State Law, the only the above specified persons are competent to issue ‘Completion Certificate’.

2. Service portion in the execution of a “Works Contract”

Valuation of Works Contract:

The valuation of service portion in a “Works Contract” which is presently guided by Rule 2A of the “Service Tax (Determination of Value) Rules, 2006 is been proposed to substitute by the New Rule 2A.

Similar to the present Rule, under this Rule also, the value of service portion involved in the execution of a works contract shall be determined in any of the following ways

1. The value of the service portion involved can be ascertained by way of including the following

i. labour charges for execution of the works;

ii. amount paid to a sub-contractor for labour and services;

iii. charges for planning, designing and architect’s fees;

iv. charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract;

v. cost of consumables such as water, electricity, fuel used in the execution of the works contract;

vi. cost of establishment of the contractor relatable to supply of labour and services;

vii. other similar expenses relatable to supply of labour and services; and

viii. profit earned by the service provider relatable to supply of labour and services;

2. The other way is by reducing from the gross amount charged for the Works Contract, the value of transfer of property in goods involved in the execution of said works contract.

Gross amount charged for the works contract shall not include VAT/CST as the case may be paid on the value of property in goods transferred in the execution of the works contract.
Note: In case if VAT/CST has been paid on actual value of the property in goods involved in the execution of works contract, (i.e. VAT is paid under the Regular Scheme but not under Composition Scheme) then in such cases, value adopted for that purpose shall be taken into consideration.
Where the value cannot be determined under the two purposes, then the value can determined as follows:

1. Original Works: Service portion shall be 40% of the total amount charged for the works contract.

2. In case if value of land is also included, then Service portion shall be 25% of the gross amount including land value.

3. Other Contracts: Service portion shall be 60% of the total amount charged.

For this purpose, Original Works means all new constructions, all types of additions and alterations to abandon or damaged structures on land that are required to make them workable.
The Service provider is eligible to take CENVAT Credit of the capital goods and input services and not goods, the property in which is transferred in execution of works contract .
Further the rate of service tax under composition scheme is now changed to 4.8% to keep it in line with the service tax rate payable under the normal scheme.

By CA Kakarla Manindar

80CCF ( infrastructure bond ) No More Budget 2012 - 2013

Taxpayers may have got some relief through the increase in the basic exemption limit and widening of the 20% tax slab, but the government has taken away a crucial tax saving option. The budget for 2012-13 has not extended the Rs 20,000 rebate available for investments in infrastructure bonds this year, which was over and above the Rs 1,00,000 maximum rebate available under Section 80C. Infrastructure bonds allowed taxpayers in the highest 30% slab to save a maximum of Rs 6,180 in tax. The incentive was introduced in the budget for 2010-11 to make long-term funds available to infrastructure sector. It was extended for one more year in 2011-12.  Provided by : Economics Times

Time Table May,2012 IPCC / PCC / FINAL

PROFESSIONAL COMPETENCE EXAMINATION (PCE)

[As per syllabus contained in the scheme notified by the Council under Regulation 28 C (3) of the

Chartered Accountants Regulations, 1988]

Group-I: 3rd , 5th & 14th May 2012

Group-II: 8th, 10th & 16th May 2012

(Afternoon Session: 2.00 PM to 5.00 PM) (IST)

 

INTEGRATED PROFESSIONAL COMPETENCE EXAMINATION (IPCE)

[As per syllabus contained in the scheme notified by the Council under Regulation 28 E (3) of the

Chartered Accountants Regulations, 1988]

Group-I: 3rd, 5th, 8th & 10th May 2012

Group-II: 12th, 14th & 16th May 2012

(Afternoon Session: 2.00 PM to 5.00 PM) (IST)

 

FINAL EXAMINATION

[As per syllabus contained in the scheme notified by the Council under Regulation 31 (ii) of the

Chartered Accountants Regulations, 1988.]

Group -I: 2nd, 4th, 7th & 9th May 2012

Group -II: 11th, 13th, 15th & 17th May 2012

(Afternoon Session: 2.00 PM to 5.00 PM) (IST)

 

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TDS on Trademark Payment

Trademark is like an Intangible Asset if any one is selling it than there is no section to cut TDS as on date to while making payment for Purchase of that Trademark.

If Trademark is given under any agreement to use that trademark for certain period of time, than the point which can be raised is that " Is this comes under Section 194H - Comission or Brokrage
" (i)  “commission or brokerage” includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities; "


After Interpreting it can found that TDS cannnot be Deducted under the Following Section atleast


Than U/s 194C - Contracter and Sub-Contructer

" any specified person responsible for making payment to a resident contractor for carrying out any work, including supply of labour for carrying out any work, is liable to deduct tax at the prescribed rates. "

as no Service on this hence no TDS again.

If the Payee is Non-Resident: ( TDS CAN BE TAKEN )
Section 195 can be applied which means you have to compute the tax of payee and accordingly deducte the Tax derived. 


YOUR OPINION ARE WELCOMED


Udit M. Mathur
- Opinion
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10 POINTS TO REMEMBER IN BUDGET 2012-13 : by

10 POINTS TO REMEMBER IN BUDGET 2012-13

1. New Tax slabs/Income Tax rates;

 

 

New Income Tax slab	Rates of Income Tax
Income up to Rs. 2 Lacs	0%
Income from Rs. 2 Lacs to 5 Lacs	10%
Income from Rs. 5 Lacs to 10 Lacs	20%
Income from Rs. 10 Lacs and above	30%

 

 

2. Goods and Services Tax shall be applicable from August, 2012 and Direct Tax Code has been deferred for the time being.

 

3. Health insurance deduction shall be allowed upto Rs. 5000 for preventive health checkup.

 

4. Introduction of strict anti tax avoidance measures like compulsory reporting requirement of assets held abroad etc.

5. Purchase of jewellery above Rs. 2 lacs shall come under tax net.

6. Service Tax @ 12% shall be applicable on all services except those in negative list like; Govt. services, entertainment, public transport, pre school and high school education etc.

7. PAN Card No. shall be used as a common identifier for all tax purposes/matters.

8. Senior citizens shall be exempted from advance tax payments.

9. Branded silver jewellery shall be exempted from excise duty.

10. Tax exemption upto 50% on the investments upto 50,000/- in Rajeev Gandhi Equity Scheme/Fund for the people having income below Rs. 10 Lacs.

Brijesh Baranwal
Practicing Chartered Accountant

Note:
1. The above write up is only for awareness purpose and should not be considered as expert opinion.
2. Please feel free to share with your friends and everyone without any copy right issues.

Define "Business Entity" : Budget 2012

Provide definition of the term ‘business entity’ so as to include an
association of persons, body of individuals, company or firm but to
exclude an individual. This would be effective from a notified date after
the enactment of the Finance bill, 2010
Even after Budget 2012.

Service Tax on CA,CS,CWA, Advocate: Buget 2012

As per the Budget 2012 Proposed :

 " 6.     Services provided to any person other than a business entity by -

(a)   an individual as an advocate; or

(b)   a person represented on and as arbitral tribunals; "

 CA,CS,CWA are now exempted from charging ST on Representative fees only if we are providing this to only any non-business Entity like any individual,  as the amdm. in last year, had made ST charged on the CA,CS,CWA Representative Services but as any person( other than BE ).

Advocate are exempted only as an individual not in sense of any firm or etc. 

-Udit M. Mathur (Opinion)
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IFRS Applicability to Shift to 1 April,2013:ICAI

ICAI has requested the Government to postpone the date for commencement of IFRS compliance to the next financial year. International Financial Reporting Standards (IFRS), sought to bring in uniformity in financial reporting globally.

International Financial Reporting Standards (IFRS), sought to bring in uniformity in financial reporting globally.

This would facilitate the global investors to understand statements in a better manner. Compliance with IFRS by the Indian Industry has been in the air for quite a few years.

IFRS COMPLIANCE
All of Europe has already gone in for mandatory compliance of IFRS, and the US is on the way. India Inc was to do it in three phases. All the NIFTY Companies, SENSEX Companies and those with a turnover of more than Rs 1000 crore were to conform to IFRS with effect from the financial year commencing from April 1, 2011.

Much hype was created regarding this by the professional bodies, training institutes, and academic institutions.

There were several seminars, short-term courses, training sessions, etc., on IFRS, to educate both the industry and the professionals, so that the implications of IFRS could be clarified. Authors have published bulky books on these standards, giving their analyses and commentaries.

E-learning of IFRS was initiated by a few tech-savvy business houses. All of them earned substantial moolah during a period of time.

Last year, the date was postponed by one year, to take effect from April 1, 2012. Recently, the ICAI has recommended to the Central Government to postpone the date to commence from the next financial year, commencing from April 1, 2013. Thus, it has been put on hold for the time being. This, however, doesn't come as a surprise.

There are several legislations in the queue, which are being carried forward year after year.

Impact of Mr Dinesh Resignation as Railway Minister

Mr. Dinesh resigns from RM , which means basically the new one is surly going to reduce the price of fares, now that is not the good news. If RAilways own earning would go down than , FM has to provide more funds to the Railways or do have to exempt train service from ST , which is ultimately going to increase fiscal deficit.

- Udit M Mathur

Validity of ICAI Registration : Not yet applicable

BoS/ Announcement/227/11
July 27, 2011
In continuation of Institute’s Announcement dated June 23, 2011 on Institute’s website and in the Chartered Accountants Students Journal (July, 2011 issue) regarding Period of Validation of Registration in Chartered Accountancy Course, it is informed that the referred announcement is put on hold till further clarification/ announcement in the matter.

Students may note.

Director
Board of Studies

May,2012 Admit Cards Details

Candidates who have applied for May 2012 Chartered Accountants exams are requested to note that admit cards with photographs and signatures of the candidates will be hosted on http://www.icai.nic.in generally 21 days prior to the commencement of the examination. Candidates may print their admit cards from the website, which will be valid for admission to the examination.

For downloading/printing of the admit cards from the website, candidates will be required to enter the following:

Student registration number or the bar code on the examination form and
Personal Identification Number (PIN) indicated by them in their application form.
Upon printing of admit cards, candidates are advised to verify the name, registration number, centre, medium, Group opted for accuracy.

In case of difficulty in printing of admit cards or any discrepancy in the data on the admit card so printed, candidates are advised to contact the Helpline of the Examination Department immediately, quoting their registration number, bar code number of their examination form and receipt number issued by the regional office(s), centre opted (with zone, if applicable), telephone number, fax number etc.


Help Line Telephone numbers: 0120 3054 851, 852, 853 or 835
Fax 0120 3054 841, 843
E-mail:
PCE candidates: pce_examhelpline@icai.in
IPCE candidates : ipce_examhelpline@icai.in
Final candidates : final_examhelpline@icai.in
CPT candidates : cpt_exam@icai.in

FEELINGS WITH BUDGET 2012 : Udit Mathur

I just want to share my feeling after budget :
When at the evening of budget day while comin home, reading all the highlights on TAXMANN , and reading talks of people inside me in train, & reaction of market, I realized that we were so fool people, specially we the CA for a while not in Talent or Intell. Way but in emotional way, when ye Vodafone won the case that time we people where do happy incl. every citizen of india , every other CA was explaining to someone the whole case of Vodafone with a proud. But in that case we had not realized that 12,000 cr. approx. was loosed by govnt how's directly affecting us, it's like our money being loosed, and we were happy,
And the burden of same had been found in the following budget fiscal deficit govnt had put its burden on us specially service indus. Which we CA are a great part of.
Whats your opinion. ?

By Udit M. Mathur

How to Prepare for Audit & Assurance ? : by Ankur Garg

Strategy to prepare Audit

QUICK READING APPROACH

First give ICAI audit study a quick reading to understand the depth and figure out the efforts and time required for final preparation. You would appreciate that through this quick reading you would be able to figure out where extra efforts are required in audit subject and plan accordingly.

Make necessary notes or put suggestions or mark strategy for yourself on the study book during first reading. This task helps you to deal with audit subject later on during final preparation. Pre-condition for this first study is --- go ahead for quick study with a completely relax and chilled mind. Your main purpose behind this quick study is observation and formation of a plan to deal with audit.

During first study ride prepare a plan for final preparation. Also use scanner for making the plan. Later on use any good notes to prepare. Remember at this moment you have everything in your mind like what is imp along with basic idea of the topic and chapter.

SPECIAL ATTENTION TO SA AND AS

Also give special attention to SA and AS. Only good knowledge of SA and AS is not enough but you must understand the technique to apply SA and AS in audit practical problems. For this purpose refer ICAI suggested answers and observe the application of SA and AS to the problem. Another benefit of this task is—it also helps you to understand SA and AS in a much better way.

The suggestion above is based on my personal understanding and may easily be rejected or accepted by you. In any case please share your feedback.

by Ankur Garg 
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Disallowance - Sec 14A - Doesn't Require Exempted Income

Even if assessee has not earned any income which is not includible in total income, provisions of section 14A can still be invoked to disallow expenditure relatable to income not includible in total income


Section 14A of the Income-tax Act, 1961, read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to income not includible in total income - Assessment year 2008-09 - Whether earning of an income in a particular year is not a sine qua non for allowing an expenditure; and, thus, income may be 'nil', yet expenditure incurred in pursuit of earning such income is deductible - Held, yes - Whether similar proposition will apply while interpreting provision contained in section 14A(1) - Held, yes - Whether, therefore, in absence of an income which is not includible in total income, provision of section 14A can still be invoked to disallow expenditure relatable to income not includible in total income - Held, yes - Whether, however, there cannot be an assumption of some kind of in-built expenditure; some facts must be there on record to show that expenditure was actually incurred in relation to earning of exempt income - Held, yes - Assessee had made certain investments, income wherefrom was exempt - Assessing Officer disallowed expenditure incurred for earning said income under section 14A - Assessee claimed that no expenditure had been incurred for earning exempt income - Commissioner (Appeals), however, upheld order of Assessing Officer on assumption that whenever exempt income is earning, there will be some expenditure incurred in relation thereto - Whether such an assumption by Commissioner (Appeals) could not form basis for making disallowance under rule 8D - Held, yes - Whether both Assessing Officer and Commissioner (Appeals) had not examined assessee's claim at all and had not followed provisions of section 14A(1) - Held, yes - Whether, therefore, disallowance under section 14A could not be upheld - Held, yes [In favour of assessee]

The case of the assessee is two fold (i) no income has been earned and, therefore, no expenditure can be disallowed; and (ii) the Assessing Officer has not brought any evidence on record to show that any expenditure was incurred in relation to earning the income which was not includible in the total income. [Para 2]

As regard the first issue, none of the parties has cited any case. Therefore, the issue is to be decided on the basis of statutory language and general principles of interpretation of law. Sub-section (1) of section 14A contains a provision to the effect that for the purpose of computing the total income under chapter IV, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act. The factual position in this case is that no such income is statedly earned in this year although interest on NSCs has accrued as per the terms and conditions. Other investments may not have yielded income in this year but are capable of yielding the income. The question is whether the word 'income' should be interpreted narrowly or widely? The narrow interpretation would be that only when such income is actually earned, the expenditure can be disallowed. The wider meaning would be that even if no income is earned in a particular year but the investments are capable of earning the income, the expenditure relatable to holding of the investments becomes disallowable. In this connection, a reverse provision contained in section 57(iii) may be examined, which allows the deduction of any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly or exclusively for the purpose of making or earning such income from income chargeable under the head 'income from other sources'. There are a number of decisions which hold that the earning of the income in a particular year is not sine qua non of allowing expenditure. Thus, the income may be nil, yet the expenditure incurred in pursuit of earning such income is deductible. Similar proposition will apply while interpreting the provision contained in section 14A(1). Therefore, the first line of argument of assessee is disagreed with. [Para 3.1]

[2012] 18 taxmann.com 333 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'F'

Relaxo Footwears Ltd.

v.

Additional Commissioner of Income-tax, Range-15, New Delhi*

R.P. TOLANI, JUDICIAL MEMBER

AND K.G. BANSAL, ACCOUNTANT MEMBER

IT APPEAL NO. 4645(DELHI) OF 2011

[ASSESSMENT YEAR 2008-09]

JANUARY 6, 2012

An Recent Loophole in FDI Policy : Walmart

In the Recent Times you must have seen some of the Bharti Walmart large Stores and advertisements in your city newspaper but it would be written that it is only for dealer, or only for Whole-seller.
Do you know that is because FDI is not allowed till that extent as required by Walmart.
Now the Basic Loophole is that they had till date setuped there stores in the 2nd Level of Economic City of India like. Rewa, Indore, Bhuwaneshwar, other Cities of Rajasthan, Punjab etc. in these city they are first issuing the Membership card to dealers only, now in Practical way in these developing city, due to close relation as normally seems in these kind of city, people had started issue Membership card by there shop, and now basically many people in these cities are having the consumer goods are lesser price than anybody like Big Bazar, D-mart etc. from Bharti Walmart.
Bharti Walmart had got so must practical law professional that they had already ready with the Level 2 kind of cities, whenever there may be FDI allowed they are first to cover India. WALMART PROFESSIONAL HAD PLANNED GREAT.

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Opinion by :
- UDIT M. MATHUR

MCX Getting Listed on Friday Price around 1400 : Experts

According to brokerage house CLSA, at Rs 1032 a share, the company is valued at 18 times estimated earnings for the current financial year, which is "reasonable" when compared to valuations of commodity bourses globally.

The massive oversubscription (54 times) meant that all investors got far too few shares than what they had bid for. This is especially true of high networth individuals, who stand to get barely seven shares for every 1000 they have bid for.

Issues which are subscribed heavily usually post handsome gains on listing day, as investors try to make up for the unfulfilled demand by buying in the open market.

A lot would also depend on what valuation investors would be willing to pay for the stock, given the cautious outlook on the market as a whole.

If the stock does jump to Rs 1400, it would trading at 24 times estimated earnings for the current financial year.

refer: moneycontrol.com

Case Laws May,2012 IDT Summary

Dear Student
Do refer the Following link to download the summary of the Indirect Tax Case laws by Siddharth Jain.

Link

good to read while going for paper
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Case Law Summary May,2012 Direct Tax

Dear Student
Do refer the Following link to download the summary of the Direct Tax Case laws by Siddharth Jain.

Link

good to read while going for paper
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Tips For Passing CPT / IPCC / CA FINAL by CA Prachi Shah

Hello friends,

First of all I want to congratulate you on being a CA.

By reading title and reading the first line you’ll find contradiction…as the topic is about passing CA exam and I am already congratulating you for being a CA.

Well...as someone truly said… “Yaha to khelna vahi jit he…”

As you have chosen the curriculum and have passion in your heart to complete this course I must say you already are a CA….

Now let me introduce myself. After 12th I gave my CPT in June 08 cleared with 127 marks…I converted in IPCC and cleared that in Nov 09 with 354 marks and Final in Nov 2011 I cleared my ca throughout with total of 423 marks.

Now let me tell you the tips that I used in READING.

1)    Institute study material:

You’ll hear it over and over again…that we as a students are suppose to  read institute material…and trust me they are true…the material is very good covering all aspects and is providing in depth knowledge of each topic.so don't just take the books from institute and throw it into the top shelf of your cupboard where you never gonna go again..but do read them...

2)    I always believe that you read it from first day what you are going to read on last day…so choose your material carefully…

For e.g. If you are thinking of reading book X and you have read it through your entire vacation and suddenly you come to know that book y is better, then it will be an awful process to read the other book at last minute…

So choose book well after asking seniors, professors and even go through it once roughly so that you come to know it matches with your pattern and then read it and no matter what other people say do not change it at later date.

3)    Do not ignore past papers, practice manuals and RTPS, if  you will see past papers you will come to know the pattern as well as importance of chapters and that many questions are repeatedly asked in consequent attempts(FAQ). scanners are good help here.

4)    When you are reading have a habit of jotting points down and making your own Last Minute reading sheet…

Also in practices have a habit of marking ABC or v good, good and OK so as to know which sum or theory etc to ignore at last day…

Without this you’ll lost in the sea of vast course and will have enormous difficulties in completing course at last moment.

5)    Forget about imps…there’s nothing like imps in CA.

6)    Read something of everything and everything of something ...i.e. when you don’t have time and you are deciding to leave some chapters don’t leave them entirely…go through them...and when you are focusing on something focus so well that even hardest of question you can crack.

7)    Group study is the boon for knowledge sharing. You’ll able to capture different mind sets and will be able to increase knowledge domain.

8)    Never compare your efforts with anyone else’s. You are unique and so are your efforts and your results.

9)    Always remember that CA exams are harder due to the hype and vast syllabus then hard paper. So never freak out and have positive attitude towards exams.

10) Macro planning:

When I seat to read I always make planning of how much I have to read and I plan every minute…I still remember that I used to have 10 Min snooze alarm all day long to remind me that in a day I have to read 150 pages in hour 15 and in 10 Min 1.5 page…

The alarm thing even worked for saving me from wasting my time in chatting or talking on phone cause as I spent more than 10 Min...My cell used to ring like fire alarm siren reminding of studying.

11) Daily log:

Must maintain your daily log on hourly or 2 hour basis..also make pre planning of next hour to next day which will give you clarity.

Also have a habit of keeping goal little higher than your capacity.

Let’s say you can read 100 pages a day...keep goal of 120..in that way at best you’ll end up reading 110 and worst case worst scenario will be 100 pages or may be 90..which will be always better than ending  up with 70 and filling guilty or

Completing as per lower target of 100 and filling proud and then wasting another 2 3 hours for gloating in joy...

12)Gross reading, net reading, gross reading:

Always start any chapter by gross readings...i.e. just shuffle the pages without going in to much detail...you’ll get over-all picture.

Net reading will be of course going into depth of chapter.

Gross reading again will come up at end of day or 6 7 hours later when you’ll just go through it again for revising…your learning curve will be 10%...I.e. 10 hour chapter will get revised in 1 hr with quality...

13) Senior’s  help:

Always ask your senior’s experience… as it’s truly said “those who learns from own experiences are smart ….genius is the one who learns from other’s experiences”

I used to ask them every point about how they wrote in exams about how they prepared LMR..WHAT's generally asked..which chapters are mosrt imp etc...

but do remember this "suno sabki kro man ki" so don't get pressurized and all nervous or depressed..or dont follow nybody blindly...use your own intellectual to plan your own future...cause you are the person who have lived with yourself evry microsecond of your journey of life...so nobody knows you better than you.

14) Motivation:

There are 2 types of motivations...Negative as well as positive.

Positive will be good speeches, good experience, good talks, dreaming about bright future etc..

Negative will generally be self taught motivation for e.g. comparing our self with the person who doesn’t have basic amenities and thinking that if we are given this opportunity then we must at any cost utilize it.

Here’s e.g.

Positive motivation: If I’ll study hard now I’ll pass and will got good job and make my parents happy and will get salary in lacks of rupees.

Negative motivation: if I can’t study after this I’ll have to read pile of books again, my parents will be sad , I’ll go through worst period of my time..Instead why don’t I leave this serial which I can even see after my exams.

For more such tips stay tuned…

feedbacks are most welcome at prachi.d.shah@gmail.com

Hope this helped…wishing you luck for the Exams

Regards,

CA PRACHI SHAH

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Form 10CCAC Download

Download the Form 10CCAC


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Section 163 if Applicable dosen't mean Non-resident Liable to Tax

Section 163 does not require that in order to treat a person as agent of a non-resident, liability to tax of non-resident should be established.

• Under procedure for treating a person in India as agent of non-resident, it does not appear that liability of non-resident to tax has to be established; provisions of section 163 do not lay down any such condition; purpose of section 163 is to enable revenue to proceed against person in India who is regarded as agent of a non-resident, so that vicarious liability can be imposed on him, if it is found that income of non-resident is chargeable to tax in India; at stage of treating a person in India as agent of a non-resident, liability to tax of non-resident need not be established; if any of parameters laid down in section 163(1) (a) to (d) are satisfied, then person in India can be treated as Agent of non-resident

• With regard to contention that simultaneous proceedings for assessment of same income in hands of agent as well as principal should not be resorted, it is to be noted that proceedings under section 163 is only for purpose of enabling revenue to safeguard its interest in event of tax liability being ultimately found to exist in hands of non-resident; such proceedings cannot be said to be assessment proceedings against agent

[2012] 19 taxmann.com 37 (Mumbai - Trib.)

IN THE ITAT MUMBAI BENCH 'L'

ADIT (International Taxation)

v.

Jet Airways (India) (P.) Ltd.

R.S.SYAL, ACCOUNTANT MEMBER

AND N.V.VASUDEVAN, JUDICIAL MEMBER

IT APPEAL NOS. 2212 TO 2214 AND 4771 & 4772 (MUM.) OF 2002

[ASSESSMENT YEAR 1998-99]

FEBRUARY 29, 2012

Document Submitted to Bank Cannot be Taken for making P&l Entry by A.O.

AO not justified in drawing monthly P&L A/c taking into account statement of stock filed by assessee with bank and disallow losses incurred - [2012] 19 taxmann.com 72 (Delhi - Trib.)

I. Section 145 of the Income-tax Act, 1961 - Method of accounting - Estimation of profit - Assessment year 2007-08 - Assessee was a manufacturer of conveyor belts which were supplied mainly to Government undertakings - In course of assessment proceedings Assessing Officer issued summons under section 131 to bank requiring it to furnish statement of stock given by assessee - Assessee, for purpose of availing credit facilities had been providing information to said bank - On basis of information supplied by bank and details of monthly sales, purchases and direct expenses, Assessing Officer drew up profit and loss account on monthly basis - After undergoing such exercise Assessing Officer found that there was loss for three different months - As assessee did not offer any explanation, Assessing Officer disallowed such losses and made addition - Whether method of drawing up separate profit and loss account by Assessing Officer on monthly basis could not be approved as same was against norms of any business or guidelines issued by ICAI - Held, yes - Whether, therefore, addition made by Assessing Officer was to be deleted - Held, yes [In favour of assessee]

II. Section 14 of the Income-tax Act, 1961 - Income - Chargeable as - Assessment year 2007-08 - Whether cenvat credit available to assessee is not liable to tax as it does not constitute income in hands of assessee - Held, yes [In favour of assessee]

III. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessment year 2007-08 - Assessee debited certain amounts on account of liquidated damages and miscellaneous adjustments for delayed supplies made to Government undertakings - Assessing Officer denied deduction on ground that they were not allowable under section 36(1)(vii), read with section 36(2) - Whether since it is a common feature in contract business that on delayed supplies deductions are made and sometimes entire sale proceeds are not received and are subject to certain deductions by purchaser, deductions so made would be allowable as business expenditure - Held, yes  [In favour of assessee]

IV. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Assessment year 2007-08 - Assessee incurred expenses on foreign travel by its partners - Whether since assessee had not given any evidence, proving business purpose requiring those foreign visits, said expenditure was to be disallowed - Held, yes [In favour of revenue]

[2012] 19 taxmann.com 72 (Delhi - Trib.)

IN THE ITAT DELHI BENCH 'E'

Assistant Commissioner of Income-tax

v.

Murcury Rubber Mills*

RAJPAL YADAV, JUDICIAL MEMBER

AND K.D. RANJAN, ACCOUNTANT MEMBER

IT APPEAL NO. 3489 (DELHI) OF 2010

[ASSESSMENT YEAR 2007-08]

SEPTEMBER 23, 2011

List of Section - Income Tax Act, 1961

Following the List of all the Section of Income tax Act, 1961 in PDF Format.
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Letter for Completion of Articleship

Student of ICAI Final those who had completed their Articleship do need to Submit the Letter on the Firm's Letter Head Signed by Partner for provide the institute the information about completion of the articleship of the student.
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Changes Approved in ICAI

Notice has been Published on 23/02/2012 and it would take effect from 45 days from this published date or if came in official gazette.

1. CPT is renamed as CPC

2. Graduate / Post Graduate students are exempted from CPT

3. CS Inter / CWA inter cleared students are eligible from CPT

4. PCC / PCC renames as CA Inter ( Intermediate Course )

5. CPT passing criteria : 30% in each & 50% aggregate

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