Happy Diwali with crackers of Income Tax Posted In Income Tax | Articles | No Comments »
CA Umesh Sharma
Arjuna (Fictional Character): Krishna, recently the result of Maharashtra & Hariyana States Election is declared. In this some politician's crackers have exploded and someone's got defused. On this occasion of Diwali festival, if different types of crackers are linked with the provisions of Income Tax then, tell me how these crackers will explode. Krishna (Fictional Character): Arjuna, Diwali is the festival of Joy and in these businessmen have great importance of Dhanteras and Laxmipoojan. Children also get variety of sweets, chocolates. This festival is celebrated by exploding crackers. If various provisions of income tax are linked with the different crackers then enjoyable discussion can be made. But from this one should learn how to follow tax laws. Arjuna: Krishna, Which may be biggest cracker if we correlated with the Income Tax Provision? Krishna: Arjuna, listen gladly, the salesmen in the market sells different types of crackers likewise there are various provisions in various laws. Accordingly in Income tax the biggest cracker is the cracker that explodes in 6 different ways, we call it as "Six Shots" and that cracker is of "SEARCH OR RAID" because according to the provisions of section 132, if RAID occurs, then last 6 years unaccounted money will be calculated and tax @ 30% along with penalty of equal amount of 30% i.e. 60% or more with interest will be collected forcefully. When Income tax SEARCH occurs at the place and home of taxpayer, then sound of it spreads all over the business community of city. This cracker explodes at the taxpayer who never follows law and who evades taxes and accumulates lots of unaccounted wealth. In Income Tax the provisions for RAID are very harsh and it bursts only at the big wealthy people. Many taxpayers get frightened by this sound. This cracker creates lots of garbage after exploding, which means after RAID it becomes cumbersome for the taxpayer to solve the complications of unaccounted income of previous years. Hence one should not play with this cracker of Income Tax and follow laws always. Arjuna: Krishna, What are the provisions that fall under the category of "Atom Bomb"? Krishna: Arjuna, The Atom bomb creates loud noise and releases fumes a lot; similarly if, the taxpayer hides the income then the detail verification of his assets and transaction will be made to find his hidden income. These are provision of section 133 of "Survey". The officer visits taxpayers place and makes lot of hidden sound and enquires a lot and finds hidden income of the taxpayer. The taxpayer gets terrified just like an atom bomb has burst near him. That's why Survey is the electrifying cracker in the hands of income tax officers, which is often used. If it is exploded then it terrifies the nearby taxpayers and also to other people. Therefore one should pay correct taxes by showing proper closing stock, assets and income otherwise, he may get blacken face by fumes of this cracker. Arjuna: Krishna, Ohh.. wow!! Which provisions fall in the category of "Rockets"? Krishna: Arjuna, "Rocket" flies high and then burst with a sound and goes anywhere likewise if, Income is escaped then according to the provisions of section 148 the income tax officers can go to last 6 years for Assessment of escaped income in which the officer may go to the last year and will impose tax and penalty and will enquire about the hidden income. Taxpayer must be careful while complying tax law. Arjuna: Krishna, Ohh my God!! Then "Zamin Chakkar" will fall in which category? Krishna: Arjuna, Just like "zamin chakkar" rotates round and creates light and dust and after completing some rotations it bursts. In the same category the scrutiny assessments under section 143 come. If taxpayer has not complied with the provisions of laws then he will rotate in the provisions of law and will fall on the ground. Through analysis of specific transaction and computer assisted scrutiny system taxpayer's enquiry for one financial year is made. All transactions of that year were checked in scrutiny assessment and if knowingly mistakes are found then penalty may be imposed. So one should file correct and complete Income tax return and get away from circular rotations of income tax scrutiny. Arjuna: Krishna, too good. "Imported Fancy Cracker" in which category it will fall? Krishna: Arjuna, Better you ask the blast of this foreign "Fancy Cracker" to Vodafone Company. This cracker explodes in India but it has its starting string (vaat) in foreign lands. This is the cracker of "International Transfer Pricing" and it cracks towards those who transact with foreign people. That means it cracks towards the Multinational and big Indian Companies which have transactions with associated enterprises in foreign. The arbitration of crores of rupees was going on and Honorable Supreme Court, Central Government, Income Tax Department, etc. may have inserted lot of explosive chemicals in this cracker. Because of this foreign companies are afraid of this cracker while making business transactions in India. That's why it has been given the fancy name of "Tax Terrorism". Because of the sound and dust it creates after cracking, taxpayer doesn't understand anything. Similarly there is also an "Indian fancy cracker" this means the cracker of "Domestic Transfer Pricing". In this if, transactions with related parties in india exceeds rupees 5 crore in a year then the cracker of Domestic Transfer pricing is exploded. Therefore taxpayer should understand the provision relating to this and then only incur such transaction. Transactions under transfer pricing are measured at arm's length, likewise crackers should also be lighten from arm's length, otherwise it may harm. Arjuna: Krishna, in which category "Lar or wala or garlands of cracker" will come? Krishna: As in "Lar or wala or garlands" the crackers is joined in one another and bursting of one leads to bursting of other cracker. Similar are the provisions of "Tax Deduction at Source" that means before incurring specified expenditure, tax has to be deducted at source i.e. one has to pay tax of another. If this is not done as prescribed then one has to face the complications of penalty, late fees, Computerized revised returns, PAN, disallowance of expenditure, etc. As "Lad" bursts likewise the ones problems creates obstacle for others. Many times after bursting the whole "Lad" and even after some silence suddenly one of the crackle burst same is the case of TDS i.e. even after correct filling the problem of wrong PAN, wrong rate of TDS occurs. It comes to notice later while performing Tax Audit. Arjuna: Krishna, we can relate many Income Tax Provision with the crackers, what should we learn from this? Krishna: Taxpayer should follow the income tax provisions and should not take the law in hand. Likewise Cracker should be exploded according to its type only otherwise it will burn in hand. It means one should follow law as it prescribes its meaning. Further one should not burst crackers for otherwise and irritate others. It means that tax officers should also take care that the one who follows tax laws should not be hurt. If taxpayer gets refund and interest on it on time then it is just like getting sweets of Diwali from the department. There are restrictions of Government of when and how crackers should be exploded. Similarly there is a time of filling of income tax return and payment of tax. If restriction of time is not followed then taxpayer may get hurt. Diwali is the festival of lights. Everyone should celebrate joyfully. If Indian citizens follow laws then the whole country will become enlightened. Dear taxguru lovers, your comments are like blessing, please post them. Wish you all a happy Diwali. - See more at: Happy Diwali with crackers of Income Tax
New features of e-form ADT-1 related to Auditors Appointment
New e-Form ADT-1
New features/ Options of e-form ADT-1 introduced by Ministry today (20.10.2014) itself
- Provide whether company is falling under any class of Companies as per Section 139(2).
- Whether Joint Auditors have been appointed – Provide Whether joint auditors have been appointed. If yes is selected then provide the value for Number of auditor(s) appointed shall be greater than 1.
- Period of account for which appointed – Please mention the "From" and "To" date for the period for which auditor is appointed.
- Number of financial year(s) to which appointment relates – Please provide the Number of financial year(s) to which appointment relates.
- Whether the appointment of auditor is within the limits of twenty companies as specified in sub section 3(g) of section 141 – Please provide Whether the appointment of auditor is within the limits of twenty companies.
- Specify the tenure of previous appointment(s) of the auditor or auditor's firm or its member in the same company in which audit was conducted or is functioning (excluding previous years having break of five or more years as specified in Rule 6) – Please provide the tenure of previous appointment(s) of the auditor or auditor's firm or its member in the same company in which audit was conducted or is functioning in number of financial year(s). Please provide details as Person appointed as auditor, financial start date and financial end date of his tenure
7. Manadatory Attachments:
- Copy of the intimation sent by company
- Copy of written consent given by auditor;
- Copy of resolution passed by the company;
NOTE:
- The e-Form will be auto approved (STP).
- Now it's mandatory for the companies to attach the above mentioned documents with e-form ADT-1.
- Its mandatory to mention Number of financial year(s) to which appointment relate.
Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES is a Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com, Mob: +91-8130757966) - See more at: http://taxguru.in/company-law/features-eform-adt1-related-auditors-appointment.html#sthash.aFsAPMWV.dpuf
GOODS AND SERVICE TAX REPORTS (GSTR) HIGHLIGHTS
F Where manufactured product is not marketable, no excise duty would be leviable : Amrit Bottlers P. Ltd. v. CCE (All) p. 565
F Order of Appellate Tribunal directing payment of 15 per cent. of pre-deposit prima facie keeping in view undue hardship, reasonable : Jai Sidh Yogi Steel Rolling Mills v. CCE and Service Tax (P&H) p. 572
F Unit sought to be made liable under section 11D neither a "manufacturer" nor a "producer" and not liable to duty : CCE v. Bharat Petroleum Corporation Ltd. (Cal) p. 575
F Word "supplier" used in drawback form indicate that goods can be purchased from third parties : AKS Apparels v. Union of India (Delhi) p. 577
F Where no question of law arising from order of Appellate Tribunal, appeal to High Court not maintainable : Commissioner of Customs and Central Excise v. S. Suryanarayana (AP) p. 637
F Failure to specify in show-cause notice that procedure for rebate claim not followed, rejection of rebate claim beyond scope of show-cause notice : Kandarp Dilipbhai Dholakia v. Union of India (Guj) p. 633
F Two units of assessee located in same premises in different buildings and with separate plant and machinery, separate factories : CCE v. Bansi Pulp Paper Mills P. Ltd. (Trib.-Mum) p. 583
F Any premises or part of any premises wherein any manufacturing process carried out is factory : CCE v. Bansi Pulp Paper Mills P. Ltd. (Trib.-Mum) p. 583
F Addition of part value of off-shore engineering and technical assistance contracts to goods imported under offshore equipment supply contract, reasonable : Lanco Kondapalli Power Ltd. v. CCE, Service Tax and Customs (Trib.-Bang) p. 590
F Demand confirmed by Commissioner in his capacity as assessing officer by finalisation of provisional assessment, order sustainable : Lanco Kondapalli Power Ltd. v. CCE, Service Tax and Customs (Trib.-Bang) p. 590
F No time limit for issuance of rule 57E certificates and for taking of credit : Indian Petrochemicals Corporation Ltd. v. CCE and Service tax (Trib.-Ahd) p. 617
F C. B. E. C. Circulars :
Circular No. 9/2014-Customs, dated 19th August, 2014-Guidelines for considering request for exemption from payment of customs duty under section 25(2) of Customs Act, 1962 p. 130
Circular No. 983/7/2014-CX, dated 10th July, 2014-Valuation of fertilisers for the purpose of levy of excise duty-inclusion of subsidy component in the assessable value-Clarification-Regarding p. 115
Circular No. 984/8/2014-CX, dated 16th September, 2014-Amendments to the appeal provisions in Customs, Central Excise and Service Tax made by Finance Act, 2014-Issue of clarifications-Regarding p. 119
Circular No. 985/9/2014-CX, dated 22nd September, 2014-Guidelines regarding structure, administrative set up and functions of Audit Commissionerates-Regarding p. 124
F Rules :
Service Tax (Second Amendment) Rules, 2014 p. 136
F Notifications :
Central Excise Act, 1944 : Notification under section 35FF : Rate of interest on refund of pre-deposit p. 115
Customs Act, 1962 : Notification under section 129EE : Rate of interest on refund of pre-deposit p. 115
Customs Tariff Act, 1975 : Notification under section 8B(2) : Safeguard duty on import of saturated fatty alcohols into India p. 114
Finance (No. 2) Act, 2014 : Notification under section 114(A), (B) and (C) : Effective date on provisions of clauses (A), (B) and (C) of section 114 of Finance (No. 2) Act, 2014 p. 136
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