newsletter vol.113

7/30/2019 Newsletter Vol.113

1/25

CORRIDORS OF

COURT

QUERY

COUNTER

NORTH BLOCK

INTRODUCING

DTC

LEGAL

MAXIMS

TAX BEYOND

BORDERS

BUDGET

SPOTLIGHTS

AROUND THE

WORLD

FUNNY BONE

DATES TO

REMEMBER

INVESTMENTS

CAC

EXCLUSIVE

WEBLINKS

MONEY MATTERS

NINA KAPASI SHITUL DEDHIA KRINA PARE

DISCLAIMER:Every effort has been made to ensure accuracy in the information. The publishers do not hold themselves responsible forerrors that may have arisen. Please take professional advice for further implementation. All rights reserved.

STRICTLY FOR PRIVATE CIRCULATION BY INVITATION

The Finance Minister, Pranab Mukherjee prefaced his tax proposals by remarking that t

FMs life was not easyand quoted Shakespeare who wrote that I have to be true to be kind.

preparing Budget 2012, he had to contend with a volatile economy, political compulsions a

heightened expectations. In the backdrop of a modest GDP of 6.9% the Budget wanticipated to infuse oxygen into the economy and address inflation. Not much, however

evident in his Budget for incentivising growth of the core sectors. The economic reforms a

the management credentials of the present Government are poor as they are hobbled

coalition politics or internal paralysis.The FMs move to a negative list regime in service tax coupled with an increase in service t

and excise duty rate by 2% will act as a deterrent to the growth of the service a

manufacturing sectors. Paradigm shift towards introduction of a negative list in real ter

means that all services barring 27 types that are in the negative list will now fall within the tnet. At present, 118 services are subjected to tax and this number will now increase manifo

with the proposed ammendment. The 12% median rate of excise duty, which is levied on 90

of the manufactured goods, could erode margins and moderate demand. The decision to ra

the slab rates of 1% and 5% to 2% and 6%, respectively, is likely to impact the packaged foindustry. Growth impulse could be dampened by this hike in the excise duty and service tax

In an attempt to bring in pro-capital market sentiments the Government proposed for t

first time to introduce an equity investment linked scheme to be named as Rajiv Gand

Equity Savings Scheme to attract new investors to equity ownership. The governments moto reduce STT also suggests that the Government supports growth of the capital markets.

There is also some good news for the MNCs investing in India. The proposed advance-pricagreements will reduce disputes as taxpayers would know their liability on transactions with

their group companies in advance. This will end aggressive assessments and reduce tax arre

locked up in litigation.

However the Governments move to re-write laws so that it can tax indirect transfer of capiassets or property located outside India will empower it to impose capital gains tax. Wheth

this move will be a big deterrent to Indias efforts to create an investor friendly glob

footprint or a tough admonition to over enthusiastic planners against tax-abuse, only tiwill tell. While there is no doubt, that the cruelty is visible and kindness remains to be seen

the Budget.

EDITORS DESK

Chartered Accountants'

Communiqu


2/25

P A G E 2

CORRIDORSOFCOURT

S. 80-IB(10): Multiple Housing Projects On 1 Acre Plot Permissible

The High Court had to consider the following questions on interpretation of s. 80-IB(10): (i) what is a housin

project u/s 80-IB(10)?, (ii) whether if approval for construction of E building was granted by the local authori

subject to the conditions set out in the first approval granted on 12.5.1993 for construction of A and B buildin

construction of E building is an extension of the earlier housing project for which approval was granted prito 1.10.1998 and, therefore, benefit of s. 80IB (10) cannot be granted?, (iii) whether the housing project must on a vacant plot of land which has minimum area of one acre and if there are multiple buildings and the propo

tionate area for each building is less than one acre, s. 80-IB(10) can be denied?, whether the merger of two fla

into one so as to exceed the maximum size of 1000 sq feet violates the condition set out in s. 80IB (10)? HELD b

the High Court:

(i) As the expression housing project is not defined, it must have the common parlance meaning and mea

constructing a building or group of buildings consisting of several residential units. The approval granted to

building plan constitutes approval granted to a housing project. Construction of even one building with sever

residential units of the size not exceeding 1000 square feet would constitute a housing project u/s 80IB (10);(ii) E building is an independent housing project and not an extension of the housing project already existin

on the plot because when the earlier plans were approved, E building was not even contemplated and came inexistence much later. The fact that the approval was granted on the same terms as that granted to the other buil

ings does not make it an extension;

(iii) S. 80IB (10)(b) specifies the size of the plot of land but not the size of the housing project. While the plmust have a minimum area of one acre, it need not be a vacant plot. The object of s. 80IB (10) is to boost th

stock of houses. There can be multiple housing projects on a plot of land having minimum area of one acre;

(iv) On facts, as there was no merger of flats and no application was made to the local authority seeking merg

of two flats, there was no violation.

CIT vs. Vandan Properties (Bombay High Court)

S. 54EC investment time limit begins from date of receipt of consideration

The assessee entered into an agreement and handed over possession to the buyer which constituted a transfeThe consideration received from the buyer was invested by the assessee in s. 54EC Bonds beyond 6 months fro

the date of transfer though within 6 months from the date of receipt of the consideration. In a case where thconsideration for the transfer was received several months after the date of transfer, the period of 6 months f

making deposit u/s 54EC should be reckoned from the date of actual receipt of the consideration. If the period

reckoned from the date of agreement and receipt of part payment at the first instance, it would lead

an impossible situation by asking assessee to invest money in specified asset before actual receipt of the sam

Also, s. 54EC requires the consideration to be invested. If the consideration is not received, there is no questio

of investing it

Chanchal Kumar Sircar vs. ITO ITAT Kolkata.

A N E W S L E T T E R B Y P R A D I P K A P A S I & C O . H O M E


3/25

P A G E 3

CORRIDORSOFCOURT

Rejection of Stay Appeal without proper viewing

The assessee, a professional, offered income of Rs.19.41 crores. The AO passed an assessment order u/s 143(

assessing the total income at Rs.22.43 crores and raised a demand of Rs.1.18 crores. The assessee filed a sta

application before the CIT (A) who directed that a refund of Rs. 78 lakhs due for a subsequent year be adjust

and the balance of Rs.41 lakhs be paid. The CIT (A) held that considering the financial status and affairs of th

assessee, the payment of the balance demand would not cause financial hardship. The assessee filed a W

Petition to challenge the rejection of the stay application. HELD by the Court allowing the petition:

The power which is vested in the AO u/s 220(6) and on the CIT (A) to grant a stay of demand is a judic

power. It is necessary for both the AO as well as the appellate authorities constituted under the Income-tax Act

have due regard to the fact that their function is not merely to act as tax gatherers, but equally as quasi judici

authorities, they owe a duty of fairness to the assessee. This seems to be lost sight of in the manner in which t

authority has acted in the present case. The parameters for the exercise of the jurisdiction to grant a stay

demand has been set out in several judgments of this Court, including in KEC International v

B.R.Balakrishnan 251 ITR 158. The assessees submissions on merits require consideration. The CIT (A) oug

to have devoted a more careful consideration to the issue as to whether a stay of demand was warranted. As o

of a total demand of Rs.1.18 crores, Rs.78 lakhs has been adjusted, the balance has to be stayed.

Nishit Mandalam Desai vs.CIT (Bombay High Court)

S. 147 Reopening, even within 4 years, on basis of retrospective amendment to s. 80-IB(10

invalid

For AY 2006-07, the assessee claimed s. 80-IB(10) deduction of Rs. 11.38 crores which was accepted by the AO

s. 143(3) assessment. Subsequently, within 4 years from the end of the AY, the AO reopened the assessment u

148 on the ground that the assessee had not complied with s. 80-IB(10) including that after the insertion of th

Explanation to s. 80-IB(10) by the FA (No. 2) Act 2009 w.r.e.f. 1.4.2000, a contractor was not eligible fo

deduction u/s 80-IB(10). The assessee challenged the s.148 notice by a Writ Petition. HELD allowing the Petitio

The main reason for reopening the assessment was the insertion of the Explanation to s. 80-IB(10) by the F

(No. 2) Act 2009 w.r.e.f. 1.04.2000 which denies deduction to a contractor in respect of works contract award

by any person and that at the stage of the original assessment, no opinion regarding the allowability or otherwi

of deduction u/s 80IB (10) was given. of the Act. As regards the retrospective amendment, if an Explanation

added to a section for the removal of doubts, the implication is that the law was the same from the ver

beginning and the same is further explained by way of addition of the Explanation. It is not a case

introduction of a new provision of law by retrospective operation. As regards the formation of opinion, t

assessee had disclosed all the material relevant for claiming s. 80-IB(10) deduction and there was no suppressio

of material. The fact that the AO in the s. 143(3) assessment did not give any opinion regarding the allowabili

or otherwise of deduction u/s 80IB (10) of the Act cannot be a ground for invoking s. 147.

Ganesh Housing Corporation Ltd. vs. DCIT (Gujrat High Court)



4/25

P A G E 4

CORRIDORSOFCOURT

S. 40A(3): Financial crises may be exceptional or unavoidable circumstance for cash

payment

The assessee made payments exceeding Rs. 10,000 in cash and claimed that a disallowance u/s 40A(3) read withRule 6DD(j) & Circular No.220 dated 31.05.1997 could not be made as a payment by cheque etc was not possi

ble due to exceptional or unavoidable circumstances etc. The Tribunal rejected the assessees claim on th

ground that that the assessees explanation that the payees would not accept cheques as they had been dishon

oured on earlier occasions was fantastic and fanciful as in such case the assessee could have deposited cash

and obtained bank drafts. It was also held that the assessee had not explained how it obtained the cash for mak-

ing the payments & if the amounts were borrowed, there was a violation of s.269SS. On appeal by the assessee to

the High Court, HELD reversing the Tribunal:

S. 40A (3) & Rule 6 DD (j) have been incorporated in the Act to check the incurring of bogus and fictitiou

expenses to non existing parties. In the present case, there is no dispute on the identity of the payee and genu-

ineness of the transaction. The only question is whether the assessee has been able to establish exceptional o

unavoidable circumstances why the payment made in cash. The assessee was not doing well in its business andwas facing liquidity and financial crunch. The assessees explanation that payments were made in cash as prepa

ration of a bank draft or issue of cheque would have resulted in a missed opportunity or failure of a good busi

ness deal with third parties is acceptable because there were earlier cases of bounced cheques and when a party

is facing liquidity problem, it can get difficult as third parties are reluctant to accept cheques and insist on cash

payments. Arranging funds is also a problem and not easy. Also, the cash was obtained from a known party an

the AO had not made any addition on that score. Accordingly, disallowance u/s 40A(3) was not justified.

Basu Distributors Pvt.Ltd vs. ACIT (Delhi High Court)

S. 14A & Rule 8D Disallowance Cannot Exceed Total Expenditure

In AY 2008-09 the Assessee earned tax free dividend income and claimed an expenditure of 49 Lakh as expendi

ture. The AO disallowed 2.37 crores u/s 14A with which was reduced by the CIT (A) to 1.78 crores. The case

was taken to ITAT and the bench concluded u/s 14A read with Rule 8D, disallowance can be made for the ex

penditure incurred for earning of exempt income. From the assessees P&L A/c, it is evident that the total ex

penditure incurred was Rs. 49 lakhs only which was claimed as a deduction. The disallowance u/s 14A & Rule

8D cannot exceed the expenditure actually claimed by the assessee. Accordingly, the action of the AO & CIT (A

in making disallowance in excess of total expenditure debited to P&L A/c is unjustified.

Gillette Group India Pvt.Ltd.vs.ACIT (ITAT Delhi)



5/25

P A G E 5

QUERYCOUNTER


Q: HOW IS THE PERQUISITE VALUE DETERMINED IN RESPECT OF MOTOR CAR PROVIDE

AND RUNNING EXPENSES FOR THE SAME WHEN THE CAR IS OWNED BY THE EMPLOYEE

A: If the car is owned by the employee and running expenses are met by the employer, there will be n

perquisite if the car is used for only official purposes. If the car is used fully for private purposes of th

employee and his family members etc., the running expenses met by the employer will be treated a

perquisite. In the alternate case of car being used for both official and private purposes, the actual runnin

expenses incurred as reduced byamount used for official purposes is treated as perquisite. The amoun

used for official purposes here means sum calculated at Rs. 1,800 p.m. where engines cubic capacity

upto 1.6 litres and Rs. 2,400 p.m. where such capacity exceeds 1.6 litres. Further, if a chauffeur is provided

Rs. 900 p.m. is treated as for official purposes. It is possible to claim more expenses to be treated as fo

official purposes if supported by complete details of journeys undertaken for official purposes with date

destination, mileage, expenses etc. together with the employers certificate confirming the same.

Q: HOW IS THE PERQUISITE VALUE DETERMINED IN RESPECT OF MOTOR CAR PROVIDE

AND RUNNING EXPENSES FOR THE SAME WHEN THE CAR IS OWNED BY THE EMPLOYER

A: In the alternate case of a situation where the car is owned or hired by the employer, and the running ex

penses are met or reimbursed by the employer, perquisite value will be as under viz. (i) NIL if car usewholly for official purposes, provided supported by details as per previous para (ii) If car is used wholly fo

private purposes by the employee, then 10 % per annum of the actual cost of the car (or actual hire charge

paid, if car is taken on hire) plus actual expenses incurred by the employer for running and maintenance o

car, drivers salary etc. (iii) If car used partly for official purpose and partly for private purposes, perquisi

value is Rs. 1,800 p.m. where engines cubic capacity is upto 1.6 litres and Rs. 2,400 p.m. where such capac

ity exceeds 1.6 litres. Further, if chauffeur is provided, Rs. 900 p.m. is to be added as perquisite. From thi

total perquisite value arrived at, nothing is deductible in respect of any amount recovered from the em

ployee.Sometimes, the employer may provide two or more cars for use of the employee or any member of h

household. In such a case, perquisite of any one car as per the employees choice is to be calculated as peitem (iii) of the previous para and the perquisite value for the remaining cars are to be as per item no. (ii

of that para.

If the employee is provided with any vehicle other than a car e. g. motor cycle and used for both offici

and private duties, with all expenses being met by the employer, actual expenses incurred as reduced b

amount used for official purposes (calculated at Rs. 900 p.m.) will be treated as a taxable perquisite.

A: All such gifts or tokens given on ceremonial occasions or otherwise are taxable. However, if the aggrega

value of such gifts during any previous year is below Rs. 5,000, the perquisite value is treated as Nil. If th

same exceeds Rs. 5,000, the excess will be taxed as perquisite.

Q: SOME COMPANIES GIVE GIFTS OR GIFT VOUCHERS TO THEIR EMPLOYEES.

UNDERSTAND THAT THESE ARE EXEMPT IF GIVEN ON FESTIVALS LIKE DIWALI ETC.


6/25

P A G E 6

QUERYCOUNTER


Q: IS SALARY RECEIVED BY FOREIGN CITIZENS, SHIPS CREW, FOREIGN TRAINEES ETC

TAXABLE ?

A: If the foreign citizen is an official of an embassy, consulate or high commission of a foreign state or his staf

member, the remuneration payable will enjoy tax exemption if corresponding Indian official in that foreig

country enjoys similar exemption.

Further, if salary is received by a non-resident foreign national as a member of ships crew, same is exemptfrom tax if his total stay in India during the previous year does not exceed 90 days. In case of remuneration

received by a foreign national as an employee of a foreign enterprise , the same is exempt if his stay in Indi

during the previous year does not exceed 90 days and if the said foreign enterprise is not engaged in any

trade or business in India. Further, such remuneration should not be deductible from the employers in-

come chargeable under the Income Tax Act.

Regarding remuneration received by a foreign trainee, same is exempt during his stay in India if suc

trainee is a foreign national employed by foreign Government with respect to training in an undertaking o

office owned by (a) the Government or (b) any company owned by the Central or State Government

subsidiary of such company or (c) any Statutory corporation or (d) any co-operative society financed by t

Central or State Government.

Q: ONE OF MY FRIENDS WORKING IN A LEADING COMPANY RECEIVED A VERY LARG

AMOUNT AS ARREARS OF SALARY CONSEQUENT UPON THE COMPANYS LABOU

UNION SIGNING AN AGREEMENT WITH THE COMPANY REVISING THE SALAR

STRUCTURE AND SERVICE CONDITIONS. BECAUSE OF THESE ARREARS BEING ADDED T

HIS NORMAL SALARY INCOME, HIS FULL AMOUNT OF ARREARS WILL SUFFE

SUBSTANTIAL TAX DEDUCTION AT SOURCE ( ABOUT 30 %), BECAUSE IT WILL FALL I

THE HIGHEST TAX SLAB. IS THERE ANY WAY TO REDUCE THE TAX INCIDENCE OR T

OBTAIN SOME RELIEF?

A: If the salary is paid in arrears or in advance or if the employee is in receipt of salary for more than months or is he is in receipt of family pension being paid in arrears due to which his total income is assesse

at a rate higher than otherwise assessable, he may make an Application (as per the provisions of section 8

to the Assessing Officer for granting relief under Rule 21A and obtain the necessary relief. The relief

calculated as under:(i) Find out the tax on total income of the previous year (in which the arrears are received) by including th

relevant arrears.(ii) Find out tax on total income of above previous year without including the amount of relevant arrear

(iii) Deduct the amount of tax arrived as per (ii) from amount as per (i). This is the additional tax payab

because of arrears.

(iv) Add the amount of respective arrears to the income of each of the previous year to which the arrea

relate and find out tax payable on resultant incomes of respective previous years. Arrive at th

aggregate of the tax payable for these years.

(v) Find out the aggregate of taxes payable for each previous year as per (iv) above on income arrived

without including the arrears.

(vi) Deduct the amount as per (iv) above from the amount as per (v) . This is the actual tax payable

respect of arrears.(vi) Deduct the amount as per (vi) from the amount as per (iii) to arrive at the amount of relief.

Incidentally, it may be noted that because of the changes being made in slabs for tax rates as per the year

Finance Acts leading to reduction of tax burden currently as compared to earlier years, there could arise

situation in which the relief available as above may turn out to be Nil or may not be substantial.


7/25

P A G E 7

NO

RTHBLOCK


SERVICE TAX

SUBJECT: - CLARIFICATION ON POINT OF TAXATION RULES - REGARDING.

1. Notification No.4/2012 - Service Tax dated the 17th March 2012 has amended the Point of Taxation Rul

2011 w.e.f. 1st April 2012, inter- alia, amending Rule 7 which applied to individuals or proprietary firms

partnership firms providing taxable services referred to in sub-clauses (g), (p), (q), (s), (t), (u), (za) an

(zzzzm) of clause (105) of section 65 of the Finance Act, 1994. Rule 7 determined the point of taxation

such cases as the date of receipt of payment. The provisions have been amended both in the Point

Taxation Rules 2011 and the Service Tax Rules 1994 such that from 1st April 2012 the payment of tax sha

be allowed to be deferred till the receipt of payment upto a value of Rs 50 lakhs of taxable services. T

facility has been granted to all individuals and partnership firms, irrespective of the description of servic

whose turnover of taxable services is fifty lakh rupees or less in the previous financial year.

2. Representations have been received, in respect of the specified eight services, requesting clarification o

determination of point of taxation in respect of invoices issued on or before 31 st March 2012 where th

payment has not been received before 1st April 2012.

3. The issue has been examined. For invoices issued on or before 31st March 2012, the point of taxation sh

continue to be governed by the Rule 7 as it stands till the said date. Thus in respect of invoices issued on

before 31st March 2012 the point of taxation shall be the date of payment.

4. Notification No. 26 / 2012 - Customs (N.T.) Service Tax Dated 28th March, 2012 8Chaitra, 1934(SAKA

S.O. (E). In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), an

in super session of the notification of the Government of India in the Ministry of Finance (Department

Revenue) No.14/2012-CUSTOMS (N.T.), dated the 27th February, 2012 vide number S.O. 338 (E), dated th

27th February, 2012, except as respects things done or omitted to be done before such super session, th

Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each

the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto in

Indian currency or vice versa shall, with effect from 1st April, 2012 be the rate mentioned against it in th

corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported an

export goods.


8/25

P A G E 8

NO

RTHBLOCK


SCHEDULE-I

SCHEDULE-II

5. Notification No.5/2012 - Service Tax, It has been clarified that for computing aggregate value means th

sum total of value of taxable services charged in the first consecutive invoices issued or required to be issued, the case may be, during a financial year but does not include value charged in invoices issued towards suc

services which are exempt from whole of service tax liveable thereon under section 66 of the said Finance A

under any other notification.This notification shall come into force on the 1st day of April, 2012.

6. Wider applicability of Service tax:

Service tax has become applicable on all services W.e.f. 01.04.2012 making all services taxable, and a negativ

list has been released containing 17 heads of services that are exempted from scope of services tax. T

important inclusions in the negative list comprise all services provided by the Government or local authoritie

except a few specified services where they compete with private sector, The list also includes pre-school anschool education, recognized education at higher levels and approved vocational education, renting of reside

tial dwellings, entertainment and amusement services and a large part of public transportation includininland waterways, urban railways and metered cabs

The rate of service tax has also been increased from 10.30% to 12.36% on all services except 17 heads

services as mentioned above.

Sr.

no

Foreign Currency Rate of exchange of one unit of foreign currency

equivalent to Indian rupees

1 2 3

(a) (b)

(For ImportedGoods) (For ExportGoods)

1. Australian Dollar 54.30 53.05

2. Canadian Dollar 52.15 50.90

3. Danish Kroner 9.30 9.05

4. EURO 69.00 67.40

5. Hong Kong Dollar 6.65 6.50

6. Norwegian Kroner 9.15 8.85

7. Pound Sterling 82.50 80.70

8. Swedish Kroner 7.80 7.55

9. Swiss Franc 57.20 55.80

10. Singapore Dollar 41.00 40.15

11. US Dollar 51.50 50.65

Sr

no

Foreign Currency Rate of exchange of 100 units of foreign currency

equivalent to Indian rupees

1 2 3

(a) (b)

(For Imported

Goods)

(For Export

Goods)

1. Japanese Yen 62.45 60.80


9/25

P A G E 9

INTR

ODICINGDTC


BUSINESS EXPENDITURE- CAPITAL ALLOWANCE

We have noted in Volume 112 March, 2012 of the Chartered Accountants Communiqu that dep

ciation is allowed at the rates specified in the Fifteenth Schedule on the adjusted value of block of sets. Adjusted value of asset is defined by s.45 of the Code. It means the aggregate of (A) the open

WDV and (B) actual cost of asset acquired during the year within the block as reduced by (C) the gregate of the monies receivable for assets sold or discarded, etc. (D) scrap value and (E) the WDVthe assets transferred by way of gifts or inheritance. The adjusted value should be taken as NIL in cawhere the above referred (C) + (D) + (E) exceeds (A) + (B).

The term actual cost has been defined by s. 44 of the Code which in simple words means the costthe asset including the interest paid on borrowings for the period before the asset is put to use. Tterm cost of the asset remains to be defined but shall largely comprise of the purchase cost of the as

and the expenditure incurred for bringing the asset into the state of user. This cost is to be reduced

the amount of the excise or customs duty reliefs and the subsidy or grant.

The Board has been empowered to prescribe for certain other costs that may be included in the actucost. It is also empowered to prescribe the method of determination of actual cost where it is not dfined by the Code. Lastly, the A.O. is empowered, to re-compute the actual cost in cases of inflated tual cost with the approval of the JCIT. The actual cost shall be the deemed WDV where asset is;

1. acquired on gift or inheritance2. converted into a business capital asset3. acquired in inter-company transfers between holding subsidiary companies

The actual cost in a case of sale & buy back of assets shall be the lower of the actual price for acquisition or the deemed WDV. Further, in case of a purchase and lease back the actual cost shall the WDV of the seller.

Special provisions are made for ascertaining the cost of asset in cases of an asset acquired from a pllocated outside India and in a foreign currency backed by a forward contract or not.

In case of a Non Resident who brings his foreign asset to India the cost of asset shall be re-worked

assuming that such asset was used by him in India and the depreciation was allowed to him since tdate of acquisition by him outside India.

The term WDV is defined by section 45 of the Code to mean the closing WDV of the block of assof the preceding financial years. This in turn is the adjusted value of the block of assets of the precing year as reduced by the amount of capital allowance u/s. 37 (depreciation) and the expenditure curred for acquiring assets during the year to the extent allowed as a deduction.


10/25

P A G E 1 0

INTR

ODICINGDTC


The Board is empowered to prescribe the method of allocating the WDV over different businessesof the same person. It is also provided with the power to prescribe the method of determination of

WDV where the same is not provided by the Code. A provision has been made to ascertain theWDV of an individual asset comprised in the block of asset by assuming that such an asset was the

only asset in the block.

The WDV in cases of acquisition in business reorganization, the value of block of assets in the

hands of successor shall be the value as if the business reorganization had not taken place. In other

words it should be the WDV of the predecessor. However, the allowance of the depreciation will

be allocated on the basis of number of days for which the asset was used in a year by the predeces-

sor and successor.

A separate provision has been made for grant of initial depreciation in addition to the regular

depreciation for a person engaged in the business of manufacture or production in respect of newasset being machinery and plant not used in or outside India at the rate of 20% of the actual cost inthe first year of use provided the asset in question is not an office appliance and is not installed inany office premises, residence or guest house and the whole of such cost is not allowed as a deduc-tion under any other provisions of the law. Initial depreciation will be 10% instead of 20% wherethe asset is used for less than 182 days.

No separate provision has been made for compulsory claim of depreciation and for carrying for-ward unabsorbed depreciation. Also no separate provisions are made for granting depreciation on

the basis of cost in respect of assets used for generation and distribution of power.The subjects to be discussed in the next volume are:

x Terminal allowance, section 49

x R& D allowance, section 41


11/25

P A G E 1 1

INVE

STMENTS


ULIPs

Unit-linked insurance plans or ULIPs, as they are popularly known, offer not only a professionally-manag

investment-cum-protection platform but also provide an entry point into the equity markets. Apart from equitinvestments in highest-rated debt instruments also make Ulips a perfect choice for investors looking fo

long-term investment instrument that offers transparency and flexibility.

Ulip on one hand provides for insurance on life of the Ulipholder and at the same time gives returns which market driven. It acts as insurance agent and mutual fund at the same time. The premium, which one pays g

partly towards term insurance and the balance after deducting transaction and management charges are invesin shares/debt as per option selected by Ulipholder.

Ulips offer a range of fund options with different asset allocations to meet the requirements of policyholders w

different risk appetite. By spreading investment across different asset classes, investors can create a diversif

portfolio where the loss on a certain asset class can be compensated by the profits made on another.

Thus, you reduce the overall risk of your investments. Keeping this in mind, unit-linked insurance plans

insurance companies offer policyholders the option of free switches between funds, so that they can effectimanage their portfolio asset allocation. Using switches, the policyholders can move their investments betw

various asset classes like cash, debt and equity, depending on their risk appetite and financial goals.

Policyholders can make appropriateasset allocation decisions to lower risk or improve returns by spreading

investment across a variety of asset classes that behave differently during different market cycles. Policyholders

benefit from switching strategies as appropriate switches can take advantage of the movement in asset pr

resulting from changing financial and economic conditions.

To build a well-diversified portfolio, it is important that the policyholder has an exposure to all asset clas

equity, debt and cash. The two key questions that policyholders always face include: (i) which asset should he o

and (ii) how much of each asset must he own. The policyholder's fund switching decision will depend on

answers to these two questions.

Which and how much of each asset one must own is a function of one's risk tolerance as well as ones percept

on how each asset class will perform. Each asset has varying risk-return characteristics - equity having the high

risk and also the highest returns, and cash having the lowest risk and lowest returns over the long term.

On the other hand, investment in debt gives your portfolio the certainty of returns and lessens the risks of eros

of the principal invested. The risk appetite that the policyholder has will vary depending on which stage of his

cycle he is in and he needs to balance this with his return aspirations.

Policyholders tend to get more risk averse as their financial obligations increase as they get older. They shou

intuitively, switch from more risky equity funds to less risky cash and debt funds as they grow older.

However, one word of caution! If you are investment savvy and can directly invest either in equity marketmutual fund, this product is not suitable for you as the cost attached is much higher. It is also advisable to go

term insurance and invest the balance on our own or on advice of some investment consultant into equity mark

mutual fund. This will allow you to have best of both the worlds and that too at reasonable price!


12/25

P A G E 1 2

LEGA

LMAXIMS


NEMO TENETUR SEIPSUM ACCUSARETIS

(No man can be compelled to criminate himself)

This maxim expresses a characteristic principle of English law. Although an accused person may, on his ow

make a voluntary statement as to the charge leveled against him, the judge, before receiving his statement, is r

quired to caution him, that he is not obliged to say anything, and that what he says may be used in eviden

against him. This principle leads to the rule of evidence that a confession by the accused is not admissible, unle

it be proved that such confession was free and voluntary.

However, it is to be noted that the protection does not extend to excuse a person from answering questions o

the ground that the answers may establish, or tend to establish, that the accuseds case is false.This privilege against self-incrimination is also embodied in Article 20(3) of the Constitution of India which pr

vides that no person accused of any offence shall be compelled to be a witness against himself.In the case of State of Bombay v. Kathi Kalu Oghad (A.I.R. 1961 S.C. 1808), the Supreme Court laid down th

following six propositions regarding the extenet of the protection afforded by Article 20(3):1. An accused person cannot be said to have been compelled to be a witness against himself merely because h

made a statement while in police custody, without anything more.

2. The mere questioning of an accused by a Police Officer, resulting in a voluntary statement, is not compulsion

3. To be a witness cannot be said to be equivalent to furnishing evidence.

4. In its ordinary grammatical sense, to be witness means giving oral testimony in court. However, th

expression has now come to mean imparting knowledge in respect of relevant facts by an oral or writtestatement, made or given in a Court or otherwise.

5. Giving thumb impressions, finger prints or impressions of the foot or palm, or showing parts of the body bway of identification, cannot be said to lead self-incrimination.

6. In order to obtain protection of Article 20(3), the person must have been an accused person at the time wh

he made the statement in question. It is not enough that he became an accused at any time after the stateme

was made.

The American Constitution also guarantees a similar right, and the Fifth Amendment lays down that No perso

shall be compelled in any criminal case to be witness against himself. However, this provision does not preve

an accused from waiving this privilege and being a witness in a criminal proceeding in which he is accused.

Illustrative cases where the maxim was applied

Nandini Sathpathy v. P.L.Dani: 1978 2 SCC 424

In this case, Mrs. Sathpathy was examined at the Police Station in connection with investigation into corruptio

charges against her. On her refusal to answer questions put to her, she was charged with the offence. The S

preme Court accepted the argument that her refusal to answer police interrogatories was justified under Artic

20(3) of the Constitution. The court observed that the protection is available, not only to a person who is fo

mally brought into the Police Diary as an accused, but also covers a suspect.


13/25

P A G E 1 3

TAXBE

YONDBORDER

S


Article 8: Shipping, Inland Waterways Transport & Air Transport.

The profits of an enterprise from its shipping or aircraft business are usually taxed in t

country of effective management of the business of the enterprise irrespective of its residenThe scope of the Article 8 covers inland waterways transport besides shipping and air tranport in international traffic. The profits include profits from the carriage of passengers

cargo and may also cover any such profit that is placed in the same category, for exampleasing of ships or aircrafts to its customers or between the airlines. It may also include commission received for referring passengers to other liners and the profit arising on disposal

the ship or aircraft.

However the Article 8 may not include an income received from running of a transit hotelship building activity, stevedoring and ship breaking. Likewise, income from a duty free sh

or an investment activity is also not includible for Article 8. The profits derived from leasecontainers will be covered provided such activity is supplementary or incidental to its opetions. However there might arise a conflict between Article 12 (Royalty), Article 5 & 7 (Pand Article 8. In such cases one is advised to resolve administrative difficulties by way

mutual agreement.

The Article 8 clarifies that the provisions therein shall also apply to participants in a pojoint business or international operating agencies and as a consequence should cover partnship.

The term effective management is defined under Article 8 and will have to be determined

referring to Article 4 which provides for the Tie-Breaker Test. In case where such a place

situated aboard a ship or a boat, then the home harbor of such a ship or boat is the place

taxation and when there is no home harbor the country of resident of the operator of the sh

or boat is the place of taxation.


14/25

P A G E 1 4

BUDG

ETSPOTLIGH

TS


IMPORTANT HIGHLIGHTS OF FINANCE BILL, 2012

Rates of Tax

x Basic exemption limit of Individual man /woman raisedi by Rs. 20,000 / 10,000 to Rs 2,00,000. There is

gender distinction between male and female assesses.

x Basic exemption limit of Senior Citizen retained at Rs.250,000 and Very Senior Citizen at Rs.500,00.

x Tax rates - 200,001 / 250,001 to 500,000 - 10%

500,001 to 10,00,000 - 20%

Above 10,00,000 - 30%

x Alternate Minimum Tax AMT has been introduced for non-corporate entities such as Individual, HU

AOP, BOI if the adjusted total income of such person exceeds Rs.20 lacs. AMT of 18.5% of adjsuted t

income is to be paid by entities who have claimed deduction under Part C of Chapter VI-A deduction

deduction u/s.10AA. Credit for AMT and carry forward of the same and set offs are allowed.

Companies

x DDT not payable on the profits declared by holding company to the extent of dividend received fr

subsidiary company on which DDT is paid in the same year.

x Amount standing in revaluation reserve relating to revalued asset if not credited to profit and loss accou

includible in book profit for MAT purpose.

Business Income

x Threshold limit of turnover or gross receipts for purpose Tax Audit is increased to 1 crores from 60 lakh

case of Businesses and 25 lacs from 15 lacs in case of Professionals.

x Threshold limit of presumptive taxation is increased from Rs.60 lakhs to Rs. 1 crore in case of business

to 25 lakhs from 15 lakhs in case of professionals. However, presumptive scheme shall not be applicablperson carrying on notified professionals, persons earning commission or brokerage income; or per

carrying on agency business.

x Weighted deduction on approved in-house research and development facilities has been extended up

31.03.2017.

x New weighted deduction of 150% of expenditure incurred on agricultural extension project has b

introduced.

x Setting up and operating an inland container depot or a container freight station; bee-keeping production of honey and beeswax; and setting up and operating a warehouse facility for storage of sugarnow also considered as specified business for the purpose of the investment linked deduction.

x Hotel owner continues to be eligible for the investment-linked deduction, even if while continuing to o

hotel, he transfers the operation of such hotel to another person.

x Assesee shall not be deemed to be in default on account of payment without deduction of taxes if such pa

declares such income, pay tax on such income and furnish the return thereof and furnish certificate

Chartered Accountant to the assessee.

General anti-avoidance rules (GAAR)

x GAAR empowers the Tax department to declare an arrangement as Impermissible Avoidance Arran

ments and the consequence thereof could be denial of tax benefit either under domestic taxation or un

treaty.

Search and Seizure

x Provisions for levy of penalty are introduced where search initiated on or after 01.07.2012 even though

due taxes are paid on the income declared during the coure of search.


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P A G E 1 5

BUDG

ETSPOTLIGH

TS


Capital gains

x New section 54GB has been introduced for granting reinvestment benefit from LTCG tax on transferresidential property on or before 31.03.2017 if such gains are invested in manufacturing small or medi

enterprise.

x Exemption on capital gains transfer of land used for agricultural purpose by assessee or his parent reinves

in purchase of agricultural land has been extended to HUF.x Where consideration for transfer of capital asset not determinable, fair market value of asset shall be take

be full market value of consideration.

Income from other sources

x Where aggregate consideration received by a private company from resident for issue of shares exceeds f

value of share, consideration to extent it exceeds fair market value of shares chargeable as income from ot

sources.

Exemption and deductions

x Payment upto Rs.5,000 made by assessee on account of preventive health check-up of self, spouse, depend

children or parents eligible for deduction within overall limits prescribed for Mediclaim.

x Deduction up to Rs.10,000 allowed to an individual or HUF, in respect of interest on deposits in savi

account. Interest on term and time deposit not eligible for such deduction.

x Deduction u/s 80C for LIC premium for policies issued on or after 01.04.2012 shall be allowed only to

extent of 10% of actual sum assured.

x Reduction of eligible age for senior citizens from 65 to 60 years for Mediclaim and Medical expenses

certain specified diseases.

Deduction and collection of tax at source

x Tax is to be deducted at 1% on transfer of immovable property of value of Rs.50 lakhs in a specified urb

agglomeration; or over Rs. 20 lakhs in any other area. No documents will be registered unless transfefurnishes proof of deduction and payment of TDS. This will be applicable from 1.10.2012.

x Tax is to be deducted at 10% on remuneration paid to a director which is not in nature of salary.

x Seller of bullion and jewelry is to collect tax @ 1% of sale consideration on cash sales of bullion and jewe

exceeding Rs. 2 lakhs w.e.f. 01.07.2012.

x Payer who fails to deduct tax on payment made to resident payee not to be deemed assessee in default if pay

has furnished his return of income under s.139, taken into account such sum for computing income in su

return of income and paid tax due on the income declared by him in such return of income, and the pa

furnishes a certificate to this effect from an accountant in such form as may be prescribed

x Higher Fee of Rs.200 per day for late furnishing of TDS/TCS statement has been prescribed. Penalty

Rs.10,000 to Rs.1,00,000 has been prescribed for furnishing incorrect information in TDS/TCS statement.

Non-Residents

x Interest in company or entity outside India deemed to be situated in India if interest derives, directly

indirectly, its value substantially from assets located in India

x Consideration for use of computer software is royalty

x

process includes transmission by satellite (including up-linking, amplification, conversion for down-linkof any signal), cable, optic fibre or by any other similar technology, whether or not such process is secret


16/25

P A G E 1 6

BUDG

ETSPOTLIGH

TS


Double taxation avoidance

x Submission of tax residency certificate containing prescribed particulars necessary but not suffici

condition for availing of benefits of DTAA

Transfer Pricing

x Transfer Pricing Officer are entitled to determine arms length price of international transaction noticedhim in course of proceedings before him and not reported by taxpayer, even if transaction is not referre

him by Assessing Officer

x Transfer Pricing regulations(including procedural and penalty provisions) extended to transactions betw

related parties if aggregate amount of all such domestic transactions exceeds Rs.5 crore in a year

x Due date for assessee required to obtain and file transfer pricing report under section 92E is extended to

November.

x Failure to report international transaction will be considered deemed escapement of income and assessm

liable to be reopened

Miscellaneous

x Sum credited as share capital, share premium etc., in books of closely held company shall be treated

explained only if source of funds explained by company in hands of resident shareholder other than regula

entitiesx Unexplained credits, money, investment, expenditure, under section 68,69,69A,69B,69C or 69D, shall

taxed at 30% (plus surcharge and cess as applicable) with no deduction for expenditure.

x Filing of income-tax return by residents is made compulsory, whether having taxable income or not, if as

owned are located outside India

x Time limit for issue of notice for reopening an assessment is increased to 16 years, where income in relat

to asset outside India chargeable to tax, has escaped assessment

x Resident senior citizen, not having any income chargeable under the head Profits and gains of busines

profession, shall not be liable to pay advance tax

x STT in cash delivery segment is reduced from 0.125% to 0.1%

x Processing of return shall not be necessary where notice under section 143(2) already issued for scrutiny

Service Tax

x Rate of service tax increased from 10% to 12%

x New section 65B, 66B, 66C, 66D, 66E and 66F in Finance Act, 1994 specifying services outside tax net:

other services, except those specifically exempted by exercise of powers under s.93(1) of Finance Act, 19chargeable to service tax: w.e.f. date to be notified, after Finance Bill, 2012 receives assent of the President

x Instead of calculating basic exemption of Rs. 10 lakh on receipt basis, it will now be calculated on the basithe aggregate value of taxable services charged in the first consecutive invoices issued or required to be issu

during a financial year.

x The benefit available to individual and partnership firms to pay service tax on the basis of receipts specified services (including practicing chartered accountants, legal practitioners, etc.) without any monet

limit is now restricted to Rs. 50 lakhs only. However, the facility to pay service tax on receipt basis is n

extended to all services provided by individuals and partnership firms including LLPs up to a turnover

taxable services of Rs. 50 lakhs, subject to the condition that their turnover of taxable services in previous y

was below Rs.50 lakhs. For computing the above turnover limit, the turnover of whole entity and not single registration is to be considered.


17/25

P A G E 1 7

MON

EYMATTERS

Rise in Stamp Duty

Property buyers in Mumbai will have to shell a little more for registering their purchase.

The Maharashtra Government has simplified the stamp duty structure for sale deed of immovable properties in budget; in the process hiking rates for buyers.

Properties falling under gram panchayats will now attract a 2 per cent duty on property value. Those areas und

municipal councils will have a 4 per cent rate and properties in urban areas including those under municip

corporations will have a 5 per cent duty.

Earlier, stamp duty was paid based on a three-tier slab with a part of the duty being a flat rate, not linked to valu

For instance, for a property valued above Rs 5 lakh, the stamp duty was Rs 7,600 plus 5 per cent of the value abo

Rs 5 lakh. This is now 5 per cent on property value.

While the hike may not seem too high, seen together with the service tax hike from 10 per cent to 12 per cent (o

constructed properties) in the budget and a tax collection at source imposed on sand in Maharashtra, costs

property purchases may rise.

Cabinet clears bill granting wife right in husband's property

A bill seeking to give a woman a share in her husband's property was approved by the Union Cabinet. It h

accepted the recommendation of the parliamentary committee that women should have a share in the property

her husband in case of a divorce but the quantum of share will be decided by the courts on case-by-ca

basis. According to the redrafted bill passed by the Cabinet, adopted children will have rights on par witbiological off springs of a couple in case the parents go for a divorce. The bill also sought to make "irretrievab

breakdown of marriage" a new ground for grant of divorce. It has also been decided that the cooling off periwill be decided by courts. According to the Cabinet Note, while a wife can oppose a husband's plea for a divor

under the new "irretrievable breakdown of marriage" clause, the husband will have no such rights to oppose if thwife moves the court on the same grounds

No opaque fare for Airlines

The Directorate General of Civil Aviation, or DGCA, has directed all airlines to 'immediately withdraw' from

controversial scheme in which a flier gets to know the name of the carrier only after booking the ticket. Th

country's apex regulator for civil aviation said in a circular on Wednesday that airlines are participating in

special fare scheme offered by travel portals, namely 'opaque fares', where neither the identity of the carrier nor t

flight details are revealed till payment is through and ticketing done. 'This is in violation of the Aircraft Rule

1937,' it said.' All airlines are therefore directed to immediately withdraw participation in any such scheme whethe complete information about the carrier is not revealed up front,' the DGCA said.



18/25

P A G E 1 8

MON

EYMATTERS

Income-Tax sleuths to be posted in offshore havens to track evaders

Tax officers will be posted in offshore havens and various countries to spot suspicious transactions by Ind

residents who use these jurisdictions to escape tax and launder money. The Income Tax departmenthas pickedsenior officers for the job.

The decision coincides with the government's proposal to make it mandatory for tax payersto declare their offsh

bank accounts and other assets held overseas. For this a separate column in tax return forms will be introduced.

Once this proposal, now a part of the Finance Bill, becomes law, prosecution proceedings can be initiated agai

tax payers for suppressing such information. They will be tried in a special court to be set up exclusively for hear

income tax related cases.

Since the government is now in possession of more information on residents holding accounts in Swiss and

haven banks, it is stepping up efforts to chase funds parked abroad. According to a 2006 report by Swiss Bank

Association, more than $1,400 billion Swiss bank deposits belong to Indian nationals. The treaty between India a

Switzerland became operational on 1 January 2012.

Under the exchange of information treaties, the countries are required to share information only if the otcountry has reasonable ground to believe that there has been a tax offence. They are not required to respond

general inquiries.

Under the recently concluded agreement between India and Cayman Islands, while requesting for s

information, India is required to demonstrate the foreseeable relevance of this information by giving the name

the person under investigation, nature of investigation as well as statement to the effect that it has pursued

means available within its territory to collect this information.

India has signed Tax Information Exchange Agreements (TIEA) with Bermuda, Bahamas, Isle of Man, Brit

Virgin Islands and Cayman Islands.

Online traders will have to key in two passwords from next month

In a bid to make internet trading more secure, market regulator SEBI has made two-factor authentication, in wh

the user provides two means of identification, compulsory for online share transactions.

However, experts said broking being a time-sensitive business, a second login could take extra 10-30 seconds

which time stock prices may change.

Two-factor authentication is a security process in which the user provides two means of identification, one of wh

is typically a physical token, such as a card, and the other is typically something memorised, such as a security cod

The purpose of two-factor authentication is to check incidence of online fraud as the victim's password will

longer be enough to give a thief access to his or her information. While some broking houses have alrea

implemented two-factor authentication, it is yet not clear which method brokerages will adopt to generate second password.



19/25

P A G E 1 9

AROUN

DTHEWORLD

Allow advance payment for trade with Iran: Exporters

Indian exporters to Iran have asked the government to modify the new payments mechanism worked out by th

two countries to provide for advance payments as without it exports will be adversely affected.

The normal trend in international trade for commodities, as well as several other products, is that the buy

remits some advance as soon as the contract gets signed, in order to ensure that the contracts are honoured ev

if global prices go down.

India and Iran have operationalized a rupee payment mechanism through which exporters will get paid in rupe

through an arrangement worked out between Iran's Bank Parsian and India's UCO Bank.

The new payment mechanism will first be used to settle all pending payments. Iran will be paid in Rupees f

about half of its oil exports to India through the Persian Bank's account in UCO Bank, which will be used to p

for India's exports.

US fields health expert for World Bank

The US has nominated health policy expert Jim Yong Kim as next president of the World Bank, in a surpri

selection that may outflank developing countries seeking to elect a candidate of their own.

The nomination of an Asian-American with strong development credentials would win enough support

overcome complaints about the job always going to a US citizen. He is a South Korean-born docto

anthropologist and former head of the World Health Organisation's HIV/AIDS department.

India leads Asian countries as largest weapons importer

According to the latest report from the Stockholm International Peace Research Institute (SIPRI), Asia

countries topped the list of the worlds largest arms importers from 2007 to 2011,

The figures that were released show that India (ten percent), South Korea (six percent), Pakistan (five percen

China (five percent) and Singapore (four percent) were the largest buyers of arms during the period in questio

and the largest arms suppliers were the United States, Russia, Germany, France and the UK.

Indias spending on imported weapons was responsible for the 24 percent growth in the global arms trad

industry. In an effort to modernize its armed forces, India increased its weapons imports by 38 percent, betweethe 2002-2006 period and the 2007-2011 period.

Indias share of the weapons market is only set to increase, as the government budget for 2012-2013 allotted 1

percent more on defence spending.



20/25

P A G E 2 0

AROUN

DTHEWORLD

Japan Bill to Raise Sales Tax Gets Boost

Top officials from Japan's government and ruling party formally endorsed a revised bill to double the country'

sales tax, despite strong objections from other party members, in a sign of their determination to rein in the

nation's soaring public debt.

The legislation will double the current 5% sales tax in two stages by 2015 as a way to help pay for the nation's

growing social welfare costs as the population ages.

But prospects in parliament are far from certain, since the ruling camp is itself divided over whether the fisca

benefits of reducing the budget deficit outweigh the likely impact on economic growth.

The move underlines the resolve to fix Japan's public debt, now at the critical level of more than 200% of annual

gross domestic product.

Even if the bill passes the lower chamber, it would still face an uncertain future since passage in the opposition-

controlled upper house is necessary for it to become law.

The main opposition parties have vowed to oppose the measure to pressure Mr. Noda into calling a snap

election.

Apple pledge could lead to China wage hikes

A pledge by the manufacturer of Apple's iPhones to limit work hours at its factories in China could set off a

new round of pay hikes for Chinese workers who produce the world's consumer electronics, toys and other

goods.

A labor auditor hired by Apple Inc. that found Foxconn was regularly violating legal limits on overtime, with

factory employees working more than 60 hours per week.

Foxconn is one of China's biggest employers with 1.2 million workers, and its promise is likely to increase

pressure on other companies to pay more.

Hong Kong's billionaire brothers arrested

The brothers behind Hong Kong's largest property developer have been arrested on suspicion of corruption, the

company has confirmed.

Brothers Raymond and Thomas Kwok, who serve as co-chairmen and managing directors of Sun Hung Kai

Properties, were detained by anti-corruption investigators over alleged bribery offences..

Shares in Sun Hung Kai Properties lost almost $5bn in value following the arrests, plunging more than 13 pe

cent.



21/25

P A G E 2 1

FUNNYBONE

Santasingh climbed a tree. Monkey asked: "Too uper kyon aaya?"

Santasingh: "Apple Khane"

Monkey: "Yeh to mango tree"

Santasingh "Idiot, apple saath laaya hoon"

Three Sardars were going on a scooter.

Traffic police showed them his hand.

One of the Sardars told: We are already three, sorry, there is no space.

Two Sardars were in a forest, when a lion came roaring towards them.

One of them throws sand into its eyes, and runs.

Second one stays unmoved.

When asked why he is not running, another Sardar tells:

"Why should I be running? It is you who has thrown the sand "

A Gujarati, a Marwadi and a Sardar were on death row waiting to go in the electric chair.Gujarati was brought forward first.

"Do you have anything you want to say?" asked the executioner, strapping him in."No," replied the Gujarati. The executioner flicked the switch and nothing happened.

Under State law, if an execution attempt fails, the prisoner is to be released, so Gujarati was releasedThen Marwadi was brought forward.

"Do you have anything you want to say?" said the executioner.Marwadi replied "No, just get on with it."

The executioner flicked the switch, and again nothing happened, so Marwadi was also released. The

Sardar was brought forwards."Do you have anything you want to say?" asked the executioner. "Yes," replied Sardar. "If you swap th

red and the blue wires over, you might make this thing work.



22/25

P A G E 2 2

SCHEDULE OF EVENTS

APRIL 2012

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

15th PF Payment for March

21st

x ESIC Payment for March

x MVAT Monthly Return for March (TAX>1000000/-)

x MVAT Quarterly Return for January to March

(TAX>100000/- and


23/25

H O M EA N E W S L E T T E R B Y P R A D I P K A P A S I & C O .

SUBTITLES FOR ENGLISH MOVIES

This site allows you to download subtitles in any language for any English movies release

till date. The titles can be added to your video players so that it can be viewed while watch-ing the movie.

http://www.subs.to.

ECONOMICS TIMES APP FOR SMART PHONE

Economics times application allows you to be updated on the business world and market

news worldwide for free of cost.You can get the application on this link for free.

http://www.economictimes.com

ON JUST DIAL.COM

This site helps you to locate any general need for you in major cities of India. It gives youtelephone nos., fax nos. websites of the business and the addresses for your need, it can sendSMS to your cell phone

www.justdial.com

W

EBLINKS

P A G E 2 3


24/25

H O M EA N E W S L E T T E R B Y P R A D I P K A P A S I & C O .

FLASH

Check your insurance premium and Actual Capital sum assured for all the policies issued after1.4.2012. If your premium amount at any time of the insurance period is in excess of 10% of actualcapital sum assured, the same will not be eligible for exemption u/s/10 (10D)Interest on PPF has been increased to 8.8% and NSC to 8.6% for 5 years and 8.9% for 10 years

CACEXCLUSIVE

P A G E 2 4

SUGGESTIONS OF THE MONTH

PHYSICAL STOCK AUDIT

It is advisable to undertake physical stock audit as well as cash audit and other assets audit on 31st

march,2012. the same not only gives proper base for finalising your accounts but also helps as great

MIS to check system accuracy, pilferage, leakage, modifications required etc.


25/25

FINANCE BILL 2012

A TAXPAYERS LAMENT-

Mr. Finance Minister , what a landmark Finance BillOn reading the Direct Tax proposals, time just stood still

Creation of interest is a transfer from 1962And management and control rights property too

The indirect transfer provisions take us back by farTo add to these, every future transaction may be hit by GAAR

India is truly global, overseas transfers are taxable hereBut offers of premium bring companies no cheer

Insurers, banks and electricity companies will now pay MATBut will DTC come? - No answer to that.

Dont litigate even on TP, taxpayers are toldWe have a validation clause to tame the extra bold

Taxpayers would have been happy if youd been cruel, only to be kindAlas in this Finance Bill, kindness is hard to find

CA ANISH THAKKAR

CACEXCLUSIVE

P A G E 2 5

newsletter vol.113

Documents