Thursday 27 November 2014

Taxpayee can revise income tax return within the given time limit


If you suddenly realize that you missed reporting an income or deduction when you filed your income tax return (ITR) for the previous fiscal, you have the option of filing a revised return. To be able to do this, you should have filed the original return before the due date, 31 July
When to file a revised return If you discover any omission or any wrong statement in your original return, you can re-file ITR with modifications. For instance, you may have forgotten to claim tax benefit for a donation made to a charitable organization that qualifies for a deduction under section 80G, or to add the interest earned from one of your savings account to your total income. In such cases you can file a revised return stating the changes. As per section 139(5) of the Income-tax Act, 1961, the revised return can be filed before the expiry of one year from the end of the relevant assessment year or before the completion of assessment by the income tax department, whichever is earlier. So, for instance, if you have already filed your return for financial year 2013-14 (FY14) before the due date, 31 July 2014, but want to make modifications, you can file a revised return till 31 March 2016. However, if the income tax department has already completed the assessment of your return, then you cannot file a revised return. So, if you missed some information then file a revised return at the earliest to avoid interest or penalties.
How to file a revised return You can revise returns filed online and offline. However, an online return can be revised only online, and an offline one can be revised offline. For an online revision, you need the acknowledgement number and date of filing of the original return. Log on to the e-filing website of the income tax department (www.incometaxindiaefiling.gov.in), and open theExcel file wherein you originally filed the return. Enable the macros, and then select the option of revised return. Then select section 139(5) instead of 139(1). Now you will be able to make changes. Don’t forget to mention the acknowledgement number and date of the original return. Once you have made the alterations, click on compute tax, generate an XML file by validating each sheet, and then upload this file. Once the revised return is filed, download the revised ITR- V or acknowledgement and sign it. You need to send both the original as well as the revised ITR-V by ordinary post or Speed Post to the Central Processing Centre in Bangalore.
There is no restriction on the number of times you can file a revised return, provided it is done within the prescribed time limit. Once you file a revised return, the original or the earlier filed returns shall be deemed to be withdrawn and substituted by the most recent revised return

Saturday 22 November 2014

Govt. Deductors for "Mismatch in BIN" reported in TDS Statements - CPC (TDS)


Centralized Processing Cell (TDS) has observed substantial cases of mismatch in Book Identification Number (BIN) in Quarterly TDS Statements

As you may be aware that at the time of filing TDS statements, it is mandatory:



  • To quote the BIN particulars correctly, through which TDS payments have been made.
  • The TDS forms prescribe quoting of such BINs and the underlying deductee transactions corresponding to such BINs.

However, it has been observed that mistakes have been committed earlier, while reporting tax payments, in some of your TDS statements.

Please be advised that mismatch of such BINs may lead to Defaults on account of "Short Payment".
You are therefore, advised to ensure that Correct BIN details, as communicated to you through your respective Pay and Account Office (PAO) after filing their respective Form No. 24G, are quoted in your TDS Statements for avoiding mismatch of BIN.

For any assistance, you can call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Company Law Settlement Scheme, 2014 (CLSS-2014) extended to 31st Dec., 2014


Ministry of Corporate Affairs, Government of India has issued General Circular No. 44/2014 dated 14th Nov., 2014 regarding extension of date of Company Law Settlement Scheme, 2014 i.e. CLSS-2014.

In continuation to the Ministry's General Circular No. 34/2014 dated 12.08.2014 and 40/2014 dated 15/10/2014 on the subject cited above, this Ministry has, on consideration of requests received from various stakeholders, has decided to extend the Company Law Settlement Scheme (CLSS-2014) up to 31st December, 2014.

This issues with the approval of the competent authority.

The General Circular regarding Extension of dated for Company Law Settlement Scheme (CLSS-2014) is as under :

CBDT has increased Bank FDR limit to Rs. 150000 u/s. 80C


CBDT has issued a notification on 13th November, 2014 regarding increasing limit of Bank FDR upto Rs. 150000/- u/s. 80C. This Scheme is call as the Bank Term Deposit (Amendment) Scheme, 2014. This amendment shall be effected from 13th Nov., 2014. The amended notification is as under :

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY,
PART–II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF DIRECT TAXES)

Notification

New Delhi, the 13th November, 2014.

(INCOME-TAX)

S.O. 2906(E).In exercise of the powers conferred by clause (xxi) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendments to the the Bank Term Deposit Scheme, 2006, namely:-

1. (1) This scheme may be called the Bank Term Deposit (Amendment) Scheme, 2014.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Bank Term Deposit Scheme, 2006, in para 3, in clause (1), for the words “one lakh rupees” ,the words “one hundred and fifty thousand rupees” shall be substituted.

[[Notification No. 63/2014, F.No.142/09/2014-TPL]

(Raman Chopra)
Director (TPL-II)

Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii),vide number S.O. 1220(E) dated the 28th July,2006 and subsequently amended by notification number S.O. 2127(E), dated 13th December 2007

Saturday 15 November 2014

Income Tax Notification No. 66/2014, Dated: November 13, 2014


INCOME-TAX
NOTIFICATION NO. 66/2014,
Dated: November 13, 2014
In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 120 of the Income-tax Act, 1961, and in supersession of the notification of the Government of India, Ministry of Finance, Central Board ofDirect Taxes, dated 11th October, 1990 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) number S.O 777 (E) dated the 11th October 1990 except as respect of things done or omitted to be done before such notification, the Central Board of Direct Taxes hereby authorises the Principal Chief Commissioners of Income-tax specified in column (2) of the Schedule annexed hereto, having their headquarters at the places specified in the corresponding entries in column (3) of the said Schedule, to issue orders in writing forthe exercise of the powers and performance of the functions by all or any of the income-taxauthorities specified in the corresponding entries in column (4) of the said Schedule who are subordinate to them in respect of such territorial areas or of such persons or classes of persons or of such incomes of classes of income or of such cases or classes of cases as may be specified in such order :

Provided that no such orders, shall be issued so as to interfere with the discretion of the Commissioner (Appeals) in the exercise of his appellate functions.
SCHEDULE
Sl. No.
Designation
Headquarters
Income-tax Authorities
(1)
(2)
(3)
(4)
1Principal Chief Commissioner of Income-tax, Andhra PradeshHyderabadCommissioner of Income-tax (Appeals), Hyderabad- 1 to 12
Commissioner of Income-tax (Appeals), Kurnool
Commissioner of Income-tax (Appeals), Guntur- 1 and 2
Commissioner of Income-tax (Appeals), Tirupati
Commissioner of Income-tax (Appeals), Vijayawada
Commissioner of Income-tax (Appeals), Rajahmundry
Commissioner of Income-tax (Appeals), Visakhapatnam-1 to 3
2Principal Chief Commissioner of Income-tax, Bihar and JharkhandPatnaCommissioner of Income-tax (Appeals), Patna- 1 to 3
Commissioner of Income-tax (Appeals), Muzzafarpur
Commissioner of Income-tax (Appeals), Bhagalpur
Commissioner of Income-tax (Appeals), Ranchi
Commissioner of Income-tax (Appeals), Dhanbad
Commissioner of Income-tax (Appeals), Jamshedpur
Commissioner of Income-tax (Appeals), Hazaribagh
3Principal Chief Commissioner of Income-tax, DelhiDelhiCommissioner of Income-tax (Appeals), Delhi- 1 to 44
4Principal Chief Commissioner of Income-tax, GujaratAhmedabadCommissioner of Income-tax (Appeals), Ahmedabad- 1 to 13
Commissioner of Income-tax (Appeals), Gandhinagar
Commissioner of Income-tax (Appeals), Vadodara- 1 to 5
Commissioner of Income-tax (Appeals), Surat- 1 to 4
Commissioner of Income-tax (Appeals), Valsad
Commissioner of Income-tax (Appeals), Rajkot- 1 to 3
Commissioner of Income-tax (Appeals), Jamnagar
5Principal Chief Commissioner of Income-tax, Karnataka and GoaBengaluruCommissioner of Income-tax (Appeals),Bengaluru- 1 to 14
Commissioner of Income-tax (Appeals), Mysore
Commissioner of Income-tax (Appeals), Davanagere
Commissioner of Income-tax (Appeals), Gulbarga
Commissioner of Income-tax (Appeals), Panaji- 1 and 2
Commissioner of Income-tax (Appeals), Belgaum
Commissioner of Income-tax (Appeals), Mangalore
Commissioner of Income-tax (Appeals), Hubli
6Principal Chief CommissiKochiCommissioner of Income-tax (Appeals), Kochi- 1 to 4
Commissioner of Income-tax (Appeals), Thrissur
Commissioner of Income-tax (Appeals), Thiruvananthapuram
Commissioner of Income-tax (Appeals), Kottayam
Commissioner of Income-tax (Appeals), Kozhikode
7Principal Chief Commissioner of Income-tax, Madhya Pradesh and ChhattisgarhBhopalCommissioner of Income-tax (Appeals), Bhopal- 1 to 3
Commissioner of Income-tax (Appeals), Indore- 1 to 3
Commissioner of Income-tax (Appeals), Gwalior
Commissioner of Income-tax (Appeals), Jabalpur- 1 and 2
Commissioner of Income-tax (Appeals), Ujjain
Commissioner of Income-tax (Appeals), Raipur- 1 and 2
Commissioner of Income-tax (Appeals), Bilaspur
8Principal Chief Commissioner of Income-tax, MumbaiMumbaiCommissioner of Income-tax (Appeals), Mumbai- 1 to 60
9Principal Chief Commissioner of Income-tax, NagpurNagpurCommissioner of Income-tax (Appeals), Nagpur- 1 to 4
10Principal Chief Commissioner of Income-tax , North East RegionGuwahatiCommissioner of Income-tax (Appeals), Guwahati- 1 and 2
Commissioner of Income-tax (Appeals), Jorhat
Commissioner of Income-tax (Appeals), Shillong
Commissioner of Income-tax (Appeals), Dibrugarh
11Principal Chief Commissioner of Income-tax, North West RegionChandigarhCommissioner of Income-tax (Appeals), Chandigarh- 1 and 2
Commissioner of Income-tax (Appeals), Panchkula
Commissioner of Income-tax (Appeals), Karnal
Commissioner of Income-tax (Appeals), Faridabad
Commissioner of Income-tax (Appeals), Gurgaon- 1 to 3
Commissioner of Income-tax (Appeals), Rohtak
Commissioner of Income-tax (Appeals), Hisar
Commissioner of Income-tax (Appeals), Ludhiana- 1 to 5
Commissioner of Income-tax (Appeals), Jalandhar- 1 and 2
Commissioner of Income-tax (Appeals), Patiala
Commissioner of Income-tax (Appeals), Amritsar- 1 and 2
Commissioner of Income-tax (Appeals), Bhatinda
Commissioner of Income-tax (Appeals), Jammu
Commissioner of Income-tax (Appeals), Shimla
Commissioner of Income-tax (Appeals), Palampur
12Principal Chief Commissioner of Income-tax, OdishaBhubaneswarCommissioner of Income-tax (Appeals), Bhubaneswar- 1 to 3
Commissioner of Income-tax (Appeals), Cuttack
Commissioner of Income-tax (Appeals), Sambalpur
13Principal Chief Commissioner of Income-tax, PunePuneCommissioner of Income-tax (Appeals), Pune- 1 to 13
Commissioner of Income-tax (Appeals), Kolhapur- 1 and 2
Commissioner of Income-tax (Appeals), Thane- 1 to 3
Commissioner of Income-tax (Appeals), Nasik- 1 to 3
Commissioner of Income-tax (Appeals), Aurangabad- 1 and 2
14Principal Chief Commissioner of Income-tax, RajasthanJaipurCommissioner of Income-tax (Appeals), Jaipur- 1 to 5
Commissioner of Income-tax (Appeals), Alwar
Commissioner of Income-tax (Appeals), Udaipur- 1 and 2
Commissioner of Income-tax (Appeals), Ajmer
Commissioner of Income-tax (Appeals), Kota
Commissioner of Income-tax (Appeals), Jodhpur- 1 and 2
Commissioner of Income-tax (Appeals), Bikaner
15Principal Chief Commissioner of Income-tax, Tamil NaduChennaiCommissioner of Income-tax (Appeals), Chennai- 1 to 19
Commissioner of Income-tax (Appeals), Puducherry
Commissioner of Income-tax (Appeals), Coimbatore- 1 to 3
Commissioner of Income-tax (Appeals), Madurai- 1 to 3
Commissioner of Income-tax (Appeals), Tiruchirappalli- 1 and 2
Commissioner of Income-tax (Appeals), Salem
16Principal Chief Commissioner of Income-tax,UP (East)LucknowCommissioner of Income-tax (Appeal), Lucknow- 1 to 4
Commissioner of Income-tax (Appeal), Faizabad
Commissioner of Income-tax (Appeal), Allahabad
Commissioner of Income-tax (Appeal), Varanasi
Commissioner of Income-tax (Appeal), Gorakhpur
Commissioner of Income-tax (Appeal), Bareilly
Commissioner of Income-tax (Appeal), Moradabad
Commissioner of Income-tax (Appeal), Haldwani
17Principal Chief Commissioner of Income-tax, Uttar Pradesh (West) and UttarakhandKanpurCommissioner of Income-tax (Appeals), Kanpur- 1 to 4
Commissioner of Income-tax (Appeals), Agra- 1 and 2
Commissioner of Income-tax (Appeals), Ghaziabad
Commissioner of Income-tax (Appeals), Noida- 1 and 2
Commissioner of Income-tax (Appeals), Meerut
Commissioner of Income-tax (Appeals), Aligarh
Commissioner of Income-tax (Appeals), Muzaffarnagar
Commissioner of Income-tax (Appeals), Dehradun
18Principal Chief Commissioner of Income-tax, West Bengal and SikkimKolkataCommissioner of Income-tax (Appeals), Kolkata- 1 to 25
Commissioner of Income-tax (Appeals), Siliguri
Commissioner of Income-tax (Appeals), Jalpaiguri
Commissioner of Income-tax (Appeals), Asansol
Commissioner of Income-tax (Appeals), Durgapur
Commissioner of Income-tax (Appeals), Burdwan
2. This notification shall come into force with effect from the 15th day of November, 2014.
F. No.279/Misc./66/2014-SO (ITJ)
(Priyanka Singh
OSD (ITJ), CBDT

CPC (TDS) communication to Govt. Deductors for “Mismatch in BIN” reported in TDS Statements



Centralized Processing Cell (TDS) has observed substantial cases of mismatch in Book Identification Number (BIN) in Quarterly TDS Statements
As you may be aware that at the time of filing TDS statements, it is mandatory:
To quote the BIN particulars correctly, through which TDS payments have been made.
The TDS forms prescribe quoting of such BINs and the underlying deductee transactions corresponding to such BINs.
However, it has been observed that mistakes have been committed earlier, while reporting tax payments, in some of your TDS statements.
Please be advised that mismatch of such BINs may lead to Defaults on account of “Short Payment”.
You are therefore, advised to ensure that Correct BIN details, as communicated to you through your respective Pay and Account Office (PAO) after filing their respective Form No. 24G, are quoted in your TDS Statements for avoiding mismatch of BIN.
For any assistance, you can call CPC toll-free number 1800 103 0344.

Thursday 13 November 2014

Levy of Service tax on services provided by AC restaurants and hotels held to be unconstitutional by Kerala HC



This Tax Alert deals with the recent Kerala High Court decision in the case of UoI & Ors. vs. Kerala Bar Hotels Association & Ors. [TS-501-HC-2014-(KER)-ST].

The issue before the Division Bench in this writ appeal was whether the Parliament is competent to impose tax on the services provided by an air-conditioned restaurant and services provided by hotels, inns etc. in relation to providing of accommodation.

The Division Bench of the Kerala High Court held that the levy of Service tax by the Parliament on the said transactions is unconstitutional as such transactions were enumerated in List II (State List) and therefore, only the States have the legislative competence to impose tax on such transactions.
It was held that even the service part involved in the supply of food and beverages is deemed as a sale to enable the States to impose tax thereon. Hence, having characterised constitutionally the subject matter of supply of food in a restaurant, including the service part of it, as a sale, the Parliament cannot characterise the same transaction as a service for imposition and levy of Service tax.
The Kerala High Court has differed from the decision of the Bombay High Court in the case of Indian Hotels and Restaurant Association & Anr. vs. UoI & Ors. wherein the levy of Service tax on the services rendered by restaurants under clause (zzzzv) of section 65(105) of the Finance Act, 1994 was held to be constitutionally valid.

MCA extends due date of Filing Form CRA-2 to 31st January, 2015


General Circular No. 42/2014 has been notified by MCA on November 12, 2014 in relation tomatters relating to the Companies (Cost Records and Audit) Rules, 2014. Due to delay in availability of Form CRA-2 on MCA website, the date of filing of the said form without late penalty/fee has been extended to January 31, 2015. Those companies who have filed Form 23C for
the year financial year 2014-15, need not file Form CRA-2 afresh.
Full text of the Notification is as follows :-
General Circular No. 42/2014
No. 1/40/2013/CL.V-Part
Government of India
Ministry of Corporate Affairs
5th Floor, “A” Wing, Shastri Bhawan,
Dr. R. P. Road, New Delhi.
Dated: 12th November, 2014
To
All Regional Directors,
All Registrars of Companies,
All Stakeholders.
Subject : Clarification on matters relating to the Companies (Cost Records and Audit) Rules, 2014.
Sir,
Government has received representations from stakeholders seeking clarifications about Rules 5 (1) and 6 (2) of the Companies (Cost Records and Audit) Rules, 2014 regarding maintenance of cost records and filing of notice of appointment of the Cost Auditor in Form CRA-2 in electronic mode. The matter has been examined in the Ministry and the following is clarified:
Considering delay in availability of Form CRA-2 on the MCA website, it has been decided to extend the date of filing of the said Form without any penalty/late fee up to 31st January, 2015. Form CRA-2 will be made available on the MCA website soon. It is noted that some companies have filed Form 23C for appointment of Cost Auditor for the financial year 2014-15. It is clarified that such companies need not file form CRA-2 afresh for the financial year 2014-15.
2. This issues with the approval of the Competent Authority.
Yours faithfully,
(Kamna Sharma)
Assistant Director

Public Notice --VAT 20


Monday 10 November 2014

Personal Bond by a solvent surety under Punjab Value Added Tax Act, 2005 --Format

                                                         Form VAT -3
Personal Bond by a solvent surety under Punjab Value Added Tax Act, 2005
(See rule 4)
Known all men by these presents that I/we ______________________________________ (Full Name)
______________________________________________________________________(full address) with
Registration Certificate No., if any am/are held and firmly, bound up to the Governor of Punjab (hereinafter referred to
as “the Government” which expression shall, unless excluded by or repugnant to the context, include his successorin-
office and assigns in the sum of Rs.____________ (amount in figures and followed by amount in words),
(hereinafter, referred to as the said sum’) to be paid to the Government on demand, for which payment well and truly
to be made, I/We bind myself / over selves, my/our heirs, executors, administrators and legal representatives by
these presents.
Whereas the above bounden has been required by the Excise and Taxation Commissioner, Punjab or the officer
authorized by him in this behalf in writing to furnish security for the said sum for the purpose of securing the proper
payment of the tax payable by him/them under the Punjab Value Added Tax Act, 2005 (hereinafter referred to as “the
said Act”) and indemnifying the Government against and loss, costs or expenses which the Government may, in any
way, suffer, sustain or pay by, reason of omission, default or failure or insolvency of the above bounden or any
person or persons acting under or for him/them to pay such tax in the manner and by the time provided by or
prescribed under the said Act.
Now the condition of the above written bond is such that if the above bounden, his/their heirs, executors,
administrators and legal representatives of any person acting under or from him/them pays the full amount of tax
payable by him under the said Act, in the manner and by the time provided by or prescribed under the Act, one
demand by in the manner and by the time provided by or prescribed under the Act, on demand by any officer
appointed by Government under section 3 of the said Act, such demand to be in writing and to be served upon the
above bounden person, his/their heirs, executors, administrators and legal representatives of any person acting
under or for him/them in the manner provided by or prescribed under the said Act, and shall also at all times
indemnifying and save harmless the Government from all and every loss, cost or expenses which has been or shall
or may at any time or times hereafter during the period in which the above bounden is held liable to pay the tax under
the said Act, be caused by reason of any act, omission, default, failure or insolvency of the above bounden or of any
person or person acting under or for him/them, then this obligation shall be void and of no effect, otherwise the same
shall be and remain in full force, effect and it is hereby further agreed that in the event of the death / partition /
disruption / dissolution / winding up or the final cessation of the liability, under the Act, or the rules prescribed there
under of the above bounden, this bound shall remain with the Assessing Officer for twelve years from the occurring of
any of the events aforesaid for recovering any tax that may be payable by the above bounden or any loss, cost or
expenses that may have been sustained, incurred, or paid by the Government owing to the act, omission, default,
failure or insolvency of the above bounden or any persons acting under or for him/them or the above bounden’s heirs,
executors, administrators and legal representatives and which may not have been discovered until after the above
bounden’s death / partition / disruption / dissolution / winding up or final cessation of his/their liability under the said
Act or the rules prescribed thereunder.
Provided always that without prejudice to any other right or remedy for recovering the tax, loss or damage as
aforesaid, it shall be open to the Government to recover the amount payable under this bond as an arrears of land
revenue or fine imposed by any authority under the said Act.
In witness whereof the said ___________________________________ (full name) has hereunto set his hand this
________________ day of ______________ signed and delivered ____________________________ by the above
named in the presence of ________________________________.
Signatures………………………………….
Status……………………………………….
Witness :-
1. _______________________________
We (1) ____________________________
(2) ____________________________
(Name and full address of the sureties)
hereby declare ourselves sureties for the above-bounden and guarantee that he/they shall do and
perform all that he/they has/have above undertaken to do and perform and in case of his/their omission,
default or failure therein, we hereby bind ourselves jointly and severally to forfeit to the Governor of the
Punjab (hereafter referred to as the Government which expression shall unless excluded by or repugnant
to the context, includes his successor in office and assigns the sum of Rupees ________________ (amount in
figures followed by amount in words) hereinafter referred to as “the said sum” in which the above bounden has bound
himself or such other lesser sum as shall be deemed to be sufficient by the Assessing Officer to recover any amount
of tax payable by the above bounden and remaining unpaid and also to recover any amount of tax payable by the
above bounden and remaining unpaid and also to recover any loss, damages, cost or expenses which the
Government may sustain, incur or pay by reason of such omission, default or failure.
And we agree that the Government may without prejudice to any other rights or remedies of the Government, recover
the said sum from us, jointly and severally, as an arrears of land revenue and/or fine imposed by a magistrate.
And we also agree that neither of us shall be at liberty to terminate this surety-ship except upon giving to the
Assessing Officer six calendar months notice in writing of his intention so to do and our joint and several liability
under this bound shall continue in respect of all acts, omission, defaults, failure and insolvencies on the part of the
above bounden until the expiration of the said period of six months.
(Signature of sureties in presence of witness)
(Name and complete address of the witnesses)
1. ______________________ Signature
Permanent Address
2. ______________________ Signature
Permanent Address

Rate of Depreciation as per Companies Act

Depreciation under Companies Act, 2013

1. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity.

2. For the purpose of this Schedule, the term depreciation includes amortisation.

3. Without prejudice to the foregoing provisions of paragraph 1,—
3[(i) The useful life of an asset shall not be longer than the useful life specified in Part 'C' and the residual value of an asset shall not be more than five per cent of the original cost of the asset:
Provided that where a company uses a useful life or residual value of the asset which is different from the above limits, justification for the difference shall be disclosed in its financial statement.
(ii) For intangible assets, the provisions of the accounting standards applicable for the time being in force shall apply, except in case of intangible assets (Toll Roads) created under 'Build, Operate and Transfer', 'Build, Own, Operate and Transfer' or any other form of public private partnership route in case of road projects. Amortisation in such cases may be done as follows:—
(a) Mode of amortisation
Amortisation Amount ÷ Cost of Intangible Assets (A)
Amortisation Amount =
Actual Revenue for the year (B) ÷ Projected Revenue from Intangible Asset (till the end of the concession period) (C)
(b) Meaning of particulars are as follows :—
Cost of Intangible Assets (A)
=
Cost incurred by the company in accordance with the accounting standards.
Actual Revenue for the year (B)
=
Actual revenue (Toll Charges) received during the accounting year.
Projected Revenue from Intangible Asset (C)
=
Total projected revenue from the Intangible Assets as provided to the project lender at the time of financial closure/agreement.
The amortisation amount or rate should ensure that the whole of the cost of the intangible asset is amortised over the concession period.
Revenue shall be reviewed at the end of each financial year and projected revenue shall be adjusted to reflect such changes, if any, in the estimates as will lead to the actual collection at the end of the concession period.


4. The useful life or residual value of any specific asset, as notified for accounting purposes by a Regulatory Authority constituted under an Act of Parliament or by the Central Government shall be applied in calculating the depreciation to be provided for such asset irrespective of the requirements of this Schedule.


5. Subject to Parts A and B above, the following are the useful lives of various tangible assets:
Nature of assets
Useful Life
I. Buildings [NESD]
(a) Buildings (other than factory buildings) RCC Frame Structure
60 Years
(b) Buildings (other than factory buildings) other than RCC Frame Structure
30 Years
(c) Factory buildings
-do-
(d) Fences, wells, tube wells
5 Years
(e) Others (including temporary structure, etc.)
3 Years
II. Bridges, culverts, bunders, etc. [NESD]
30 Years
III. Roads [NESD]
(a) Carpeted roads
(i) Carpeted Roads—RCC
10 Years
(ii) Carpeted Roads—other than RCC
5 Years
(b) Non-carpeted roads
3 Years
IV. Plant and Machinery
(iGeneral rate applicable to plant and machinery not covered under special plant and machinery
(a) Plant and Machinery other than continuous process plant not covered under specific industries
15 Years
4[(b) Continuous process plant for which no special rate has been prescribed under (ii) below [NESD]
25 Years]
(iiSpecial Plant and Machinery
(a) Plant and Machinery related to production and exhibition of Motion Picture Films
1. Cinematograph films—Machinery used in the production and exhibition of cinematograph films, recording and reproducing equipments, developing machines, printing machines, editing machines, synchronizers and studio lights except bulbs
13 Years
2. Projecting equipment for exhibition of films
-do-
(b) Plant and Machinery used in glass manufacturing
1. Plant and Machinery except direct fire glass melting furnaces —
Recuperative and regenerative glass melting furnaces
13 Years
2. Plant and Machinery except direct fire glass melting furnaces — Moulds [NESD]
8 Years
3. Float Glass Melting Furnaces [NESD]
10 Years
(c) Plant and Machinery used in mines and quarries—Portable under ground machinery and earth moving machinery used in open cast mining [NESD]
8 Years
(d) Plant and Machinery used in Telecommunications [NESD]
1. Towers
18 Years
2. Telecom transreceivers, switching centres, transmission and other network equipment
13 Years
3. Telecom—Ducts, Cables and optical fibre
18 Years
4. Satellites
-do-
(e) Plant and Machinery used in exploration, production and refining oil and gas [NESD]
1. Refineries
25 Years
2. Oil and gas assets (including wells), processing plant and facilities
-do-
3. Petrochemical Plant
-do-
4. Storage tanks and related equipment
-do-
5. Pipelines
30 Years
6. Drilling Rig
-do-
7. Field operations (above ground) Portable boilers, drilling tools, well-head tanks, etc.
8 Years
8. Loggers
-do-
(f) Plant and Machinery used in generation, transmission and distribution of power [NESD]
1. Thermal/Gas/Combined Cycle Power Generation Plant
40 Years
2. Hydro Power Generation Plant
-do-
3. Nuclear Power Generation Plant
-do-
4. Transmission lines, cables and other network assets
-do-
5. Wind Power Generation Plant
22 Years
6. Electric Distribution Plant
35 Years
7. Gas Storage and Distribution Plant
30 Years
8. Water Distribution Plant including pipelines
-do-
(g) Plant and Machinery used in manufacture of steel
1. Sinter Plant
20 Years
2. Blast Furnace
-do-
3. Coke ovens
-do-
4Rolling mill in steel plant
-do-
5. Basic oxygen Furnace Converter
25 Years
(h) Plant and Machinery used in manufacture of non-ferrous metals
1. Metal pot line [NESD]
40 Years
2. Bauxite crushing and grinding section [NESD]
-do-
3. Digester section [NESD]
-do-
4. Turbine [NESD]
-do-
5. Equipments for Calcination [NESD]
-do-
6. Copper Smelter [NESD]
-do-
7. Roll Grinder
40 Years
8. Soaking Pit
30 Years
9. Annealing Furnace
-do-
10Rolling Mills
-do-
11. Equipments for Scalping, Slitting, etc. [NESD]
-do-
12. Surface Miner, Ripper Dozer, etc., used in mines
25 Years
13. Copper refining plant [NESD]
-do-
(i) Plant and Machinery used in medical and surgical operations [NESD]
1. Electrical Machinery, X-ray and electrotherapeutic apparatus and accessories thereto, medical, diagnostic equipments, namely, Cat- Scan, Ultrasound Machines, ECG Monitors, etc.
13 Years
2. Other Equipments.
15 Years
(j) Plant and Machinery used in manufacture of pharmaceuticals and chemicals [NESD]
1. Reactors
20 Years
2. Distillation Columns
-do-
3. Drying equipments/Centrifuges and Decanters
-do-
4. Vessel/storage tanks
-do-
(k) Plant and Machinery used in civil construction
1. Concreting, Crushing, Piling Equipments and Road Making Equipments
12 Years
2. Heavy Lift Equipments—
Cranes with capacity of more than 100 tons
20 Years
Cranes with capacity of less than 100 tons
15 Years
3. Transmission line, Tunneling Equipments [NESD]
10 Years
4. Earth-moving equipments
9 Years
5. Others including Material Handling /Pipeline/Welding Equipments [NESD]
12 Years
(l) Plant and Machinery used in salt works [NESD]
15 Years
V. Furniture and fittings [NESD]
(i) General furniture and fittings
10 Years
(ii) Furniture and fittings used in hotels, restaurants and boarding houses, schools, colleges and other educational institutions, libraries; welfare centres; meeting halls, cinema houses; theatres and circuses; and furniture and fittings let out on hire for use on the occasion of marriages and similar functions.
8 Years
VI. Motor Vehicles [NESD]
1. Motor cycles, scooters and other mopeds
10 Years
2. Motor buses, motor lorries, motor cars and motor taxies used in a business of running them on hire
6 Years
3. Motor buses, motor lorries and motor cars other than those used in a business of running them on hire
8 Years
4. Motor tractors, harvesting combines and heavy vehicles
-do-
5. Electrically operated vehicles including battery powered or fuel cell powered vehicles
8 Years
VII. Ships [NESD]
1. Ocean-going ships
(i) Bulk Carriers and liner vessels
25 Years
(ii) Crude tankers, product carriers and easy chemical carriers with or without conventional tank coatings
20 Years
(iii) Chemicals and Acid Carriers :
(a) With Stainless steel tanks
25 Years
(b) With other tanks
20 Years
(iv) Liquified gas carriers
30 Years
(v) Conventional large passenger vessels which are used for cruise purpose also
-do-
(vi) Coastal service ships of all categories
-do-
(vii) Offshore supply and support vessels
20 Years
(viii) Catamarans and other high speed passenger for ships or boats
-do-
(ix) Drill ships
25 Years
(x) Hovercrafts
15 Years
(xi) Fishing vessels with wooden hull
10 Years
(xii) Dredgers, tugs, barges, survey launches and other similar ships used mainly for dredging purposes
14 Years
2. Vessels ordinarily operating on inland waters—
(i) Speed boats
13 Years
(ii) Other vessels
28 Years
VIII. Aircrafts or Helicopters [NESD]
20 Years
IX. Railways sidings, locomotives, rolling stocks, tramways and railways used by concerns, excluding railway concerns [NESD]
15 Years
X. Ropeway structures [NESD]
15 Years
XI. Office equipment [NESD]
5 Years
XII. Computers and data processing units [NESD]
(i) Servers and networks
6 Years
(ii) End user devices, such as, desktops, laptops, etc.
3 Years
XIII. Laboratory equipment [NESD]
(i) General laboratory equipment
10 Years
(ii) Laboratory equipments used in educational institutions
5 Years
XIV. Electrical Installations and Equipment [NESD]
10 years
XV. Hydraulic works, pipelines and sluices [NESD]
15 Years
Notes.—
1. “Factory buildings” does not include offices, godowns, staff quarters.
2. Where, during any financial year, any addition has been made to any asset, or where any asset has been sold, discarded, demolished or destroyed, the depreciation on such assets shall be calculated on a pro rata basis from the date of such addition or, as the case may be, up to the date on which such asset has been sold, discarded, demolished or destroyed.
3. The following information shall also be disclosed in the accounts, namely:—
(i) depreciation methods used; and
(ii) the useful lives of the assets for computing depreciation, if they are different from the life specified in the Schedule.
4. Useful life specified in Part C of the Schedule is for whole of the asset. Where cost of a part of the asset is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part shall be determined separately.
5. 5[***]
6. The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.
7. From the date this Schedule comes into effect, the carrying amount of the asset as on that date—
(a) shall be depreciated over the remaining useful life of the asset as per this Schedule;
(b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.
8. “Continuous process plant” means a plant which is required and designed to operate for twenty-four hours a day.

1. Corresponds to Schedule XIV of the 1956 Act.
2. Enforced with effect from 1-4-2014.
3. Substituted for clauses (i) to (iiivide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to their substitution, clauses (i) to (iii) read as under :
“(i) In case of such class of companies, as may be prescribed and whose financial statements comply with the accounting standards prescribed for such class of companies under section 133 the useful life of an asset shall not normally be different from the useful life and the residual value shall not be different from that as indicated in Part C, provided that if such a company uses a useful life or residual value which is different from the useful life or residual value indicated therein, it shall disclose the justification for the same.
(ii) In respect of other companies the useful life of an asset shall not be longer than the useful life and the residual value shall not be higher than that prescribed in Part C.
(iii) For intangible assets, the provisions of the Accounting Standards mentioned under sub-para (i) or (ii), as applicable, shall apply.”
4. Substituted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to its substitution, clause (b) read as under :
(b) Continuous process plant for which no special rate has been prescribed under (ii) below [NESD]8 Years”
5. Omitted vide Notification No. GSR 237(E) [F. No. 17/60/2012-CL-V], dated 31-3-2014, w.e.f. 1-4-2014. Prior to its omission, Paragraph 5 read as under :
“5. Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant but it should generally be not more than 5% of the original cost of the asset.”

CBDT instruct to Officers to avoid to ask non-related questions regarding assessment without any basis


CBDT has issued a Press Release regarding asks officers not to make high-pitched assessments without any basis and to file appeals on merits only which is as under :

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
7thNovember, 2014

PRESS RELEASE

In its constant endeavour towards a non-adversarial tax regime, the Central Board of Direct Taxes(CBDT) has issued instruction dated 7thNovember, 2014 to its field offices. Emphasis has been laid on cleanliness in office, punctuality, timeliness in appointment and avoidingunnecessary adjournments. Though less that 1% of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers, have been directed to play a more pro-active role in monitoring and guiding assessments towards ensuring that high-pitched assessments without proper basis are not made and that lengthy questionnaires or summons without due application of mind are avoided. They have been directed to ensureInspections and Reviews in accordance with guidelines issued to enable capacity building within the Department and accountability of the officers.

2. In limited scrutiny cases selected on the basis of AIR/CIB/26AS information, the enquiries will ordinarily be restricted to such information. Refunds are to be granted in accordance with instructions already issued which provide for grant of credit of TDS on the basis of evidence submitted by the assessee. Instructions dealing with recovery / stay of demand and grant of instalments has been reiterated to ensure that no coercive action is undertaken without disposal of applications for stay.

3. Senior officers have been directed to ensure that appeals are filed only on the merits thereof and not merely on the tax effect involved. Cases have separately been brought to the attention of the officers wherein Tribunals / Courts have commented adversely on frivolous filing of appeals. It has also been decided that in multi-CCIT Charges, the decision to file a Reference before the High Court would be taken by two CCsIT.

4. All supervisory authorities have been directed to enable an effective grievance redressal system in their jurisdictions and also that the timelines prescribed under the Citizen’s Charter, the CPGRAMS, etc. for redressing grievances should be invariably followed.

(Dr. B.K. Sinha)
CIT(C&S), CBDT

Friday 7 November 2014

Rate of exchange of conversion of each of foreign currency wef 06.11.2014


S.No.Foreign CurrencyRate of exchange of one unit of foreign currency equivalent to Indian rupees
(1)(2)(3)
(a)(b)
(For Imported
Goods)
(For Export
Goods)
 1Australian Dollar54.5053.00
 2Bahrain Dinar167.55158.40
 3Canadian Dollar54.5553.30
 4Danish Kroner10.5010.20
 5EURO78.0076.15
 6Hong Kong Dollar8.007.85
 7Kuwait Dinar218.05205.65
 8New Zealand Dollar48.7547.50
 9Norwegian Kroner9.108.85
 10Pound Sterling99.5097.30
 11Singapore Dollar48.2047.15
 12South African Rand5.705.40
 13Sa7udi Arabian Riyal16.8515.90
 14Swedish Kroner8.458.20
 15Swiss Franc64.8563.30
 16UAE Dirham17.2016.25
 17US Dollar61.9060.90
SCHEDULE-II
S.No.Foreign CurrencyRate of exchange of 100 units of foreign currency equivalent to Indian rupees
(1)(2)(3)
(a)(b)
(For Imported
Goods)
(For Export
Goods)
 1Japanese Yen54.6553.40
 2Kenya Shilling70.5066.55