Newsletter taxpert for the moth April

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Office Newsletter

For the month of April 2012

Taxpert Professionals Private Limited

Adding value with quality and commitment

TAXPERT PROFESSIONALSOUTLOOK

Volume – I April 2012


We are what we repeatedly do. Excellence, therefore, is not an act but a habit.

Aristotle

The month of April had been hectic and busy with year closing. The

year 2011-12 closed with very positive results. Future is promising,

charming and beautiful. We are creating the future for ourselves,

for our employees and for our clients and society in general. We

take full responsibility.

Overall year was dynamic, we thrive to achieve the same success

this year as well and wish to give the best services to our clients. At

Taxpert, we value relationship. Our relationships are one of our key

assets and maintaining them is one of our core value. We are all

inventors, each sailing out on a voyage of discovery, guided each by

a private chart, of which there is no duplicate. We are international

firm, providing world class services to our clients, this is possible

with our dedicated, talented and professional team which is closely

bind by core values and warmth of being part of Taxpert.

Taxpert believes in hardwork, faith and Patience. It endeavours

continuously to provide the best quality service to its clients and

values its human resource and thrives to provide most employee

friendly environment for its employees.

…………………………….From the Desk of CA. Vinay Bhushan

2nd May 2012

http://www.taxpertpro.com/


Direct TAX

Exemption from requirement of furnishing a return of income

The Central Government in exercise of the powers u/s 139(IC) of the Income Tax Act, vide notification No. 9/2012 dated 17.02.2012 exempts the following class of persons from the requirement of the furnishing the return of Income u/s 139 (IC) of the Income Tax Act, for the Assessment Year 2012-13. The exemption is subject to certain condition as listed below:

1) Class of persons - An individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,-

(i) “Salary”;

(ii) “Income from other sources”, by way of interest from a saving account in a bank, not exceeding ten thousand rupees.

2) Conditions - The individual referred to in para 1,-

(i) has reported to his employer his Permanent Account Number (PAN);

(ii) has reported to his employer, the incomes and the employer has deducted the tax thereon;

(iii) has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

(iv) has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

(v) has no claim of refund of taxes due to him for the income of the assessment year, and

(vi) has received salary from only one employer for the assessment year.

The exemption from the requirement of furnishing a return of income will not be applicable where a notice under the following sections has been issued for filing a return of income for the relevant assessment year.


FEMA

External Commercial Borrowings (ECB) for

Infrastructure facilities within National

Manufacturing Investment Zone (NMIZ)

As per the extant guidelines, the infrastructure sector for the

purpose of availing ECB is defined to include (i) power, (ii)

telecommunication, (iii) railways, (iv) road including bridges, (v) sea

port and airport, (vi) industrial parks, (vii) urban infrastructure

(water supply, sanitation and sewage projects), (viii) mining, refining

and exploration and (ix) cold storage or cold room facility, including

for farm level pre-cooling, for preservation or storage of agricultural

and allied produce, marine products and meat. Developers of SEZ

were also allowed to provide such infrastructure facilities within the

SEZ.

Keeping in view the infrastructural needs of the proposed NMIZs, it

has now been decided to allow developers of NMIZ also to avail of

ECB under the "approval route" for providing infrastructure facilities

within the NMIZ, as indicated above. Press release for the same was

issued dated February 29,2012.

Consolidated FDI Policy The consolidated FDI policy document is a single reference point for

investors and regulators. The first such consolidation was released

in March, 2010 after which it has been updated every six months.

The ‘Circular 1 of 2012’ was issued on 10 April 2012 as fifth edition

of the consolidated policy document. The significant changes

introduced in this edition of the Circular are:

(i) Policy for FDI in Commodity Exchanges:

At present, foreign investment, within a composite (FDI & FII) cap of

49%, under the Government approval route-i.e. through the Foreign

Investment Promotion Board (FIPB)-is permitted in commodity

exchanges. Within this overall limit of 49%, investment by

Registered FIIs, under the Portfolio Investment Scheme (PIS) is

limited to 23% and investment under the FDI Scheme is limited to



26%. It has now been decided to liberalise the policy and to

mandate the requirement of Government approval only for FDI

component of the investment. Such investment by FIIs, in

commodity exchanges, will, therefore, no longer require

Government approval. This change aligns the policy for foreign

investment in commodity exchanges, with that of other

infrastructure companies in the securities markets, such as stock

exchanges, depositories and clearing corporations.

(ii) Non Banking Finance Companies (NBFC)-clarification on

‘leasing’:

It has been clarified that the activity of ‘leasing and finance’, which

is one among the eighteen NBFC activities, where induction of FDI is

permitted, covers only ‘financial leases’ and not ‘operating leases’.

This provision intends to clarify the coverage of the term ‘leasing

and finance’, insofar as the NBFC sector is concerned.

(iii) Import of capital goods/ machinery/ equipment (including

second-hand machinery)-conversion to equity:

With a view to incentivising machinery embodying state-of-the-art

technology, compliant with international standards, in terms of

being green, clean and energy efficient, second-hand machinery has

now been excluded from the purview of this provision.

(iv) Clarification on investment by Foreign Institutional Investors

(FIIs):

Currently, an FII may invest in the capital of an Indian Company

under the Portfolio Investment Scheme which limits the individual

holding of an FII to 10% of the capital of the company and the

aggregate limit for FII investment to 24% of the capital of the

company. This aggregate limit of 24% can be increased to the

sectoral cap/statutory ceiling, as applicable, by the Indian Company

concerned, through a resolution by its Board of Directors, followed

by a special resolution to that effect by its General Body. It has been

clarified that this would be subject to prior intimation to RBI.

(v) Investment by Foreign Venture Capital Investors (FVCIs):

Government has permitted FVCIs to invest in the eligible securities

(equity, equity linked instruments, debt, debt instruments,

debentures of an IVCU or VCF, units of schemes / funds set up by a

VCF) by way of private arrangement / purchase from a third party

also, subject to stipulated terms and conditions. SEBI registered

FVCIs have also been permitted to invest in securities on a

recognized stock exchange subject to the provisions of the SEBI

(FVCI) Regulations, 2000. These provisions have now been reflected

under the FDI policy as well.

(vi) Investment by ‘Qualified Financial Investors (QFIs)’:

Government has permitted QFIs to invest (DPs), in equity shares of

listed Indian companies as well as in equity shares of Indian

companies which are offered to public in India in terms of the

relevant and applicable SEBI guidelines/regulations. QFls have also

been permitted to acquire equity shares by way of right shares,

bonus shares or equity shares, on account of stock

split/consolidation or equity shares on account of amalgamation,

demerger or such corporate actions, subject to the prescribed


investment limits. These provisions have now been reflected under

the FDI policy as well.

Contributed by CA. Sudha G. Bhushan

MAHARASHTRA VAT

(i) The Commissioner of Sales Tax has issued notification under Rule

17A dated 4.2.2012. By this notification the Commissioner has

notified Annexures to be filled up by the dealers who are not under

VAT Audit.

(ii) The Commissioner of Sales Tax has issued notification dated

4.2.2012 under Rule 17A by which he has notified that the dealers

not under VAT Audit should submit Annexures J1 etc. along with last

return and the period for filing such last return is notified as 90 days

from the end of the period of last return.

(iii) The Government of Maharashtra has issued Notification dated

16.2.2012 by which amendments are effected in Rules 52, 53 and

54. The amendments appears to be corrective in nature.

Contributed by Mr. Milin Shah



Corporate Law update

REGISTRATION OF COMPANIES OR LLPs BY

PROFESSIONALS [www.mca.gov.in]

The MCA has issued General Circular No. 02/2012 dtd. 01.03.2012

clarifying that where at the time of incorporation of companies,

one of the objects is to carry on the business of banking, insurance

or to practice the profession of chartered accountancy, cost

accountancy and company secretaries, then the concerned

Registrar of Companies shall incorporate the same only on

production of in-principle approval/NOC from the concerned

regulator/professional institutes. It is also clarified that where one

of the objects is to carry on the business/profession of

architecture, then the concerned Registrar of Companies/Registrar

of LLP shall incorporate the same only on production of the in-

principle approval/NOC from the concerned regulator.



Laugh it off

Error Messages

"The world will end in 5 minutes. Please log out..."

"WARNING: Keyboard Not Attached. Press F10 to

Continue."

"COFFEE.EXE missing. Insert cup and press any key."

"Bad Command or File Name. Good try, though."

"Press any key... no, no, no, NOT THAT ONE!"

"Enter any 11-digit prime number to continue..."

"Error reading FAT record. Try the SKINNY one? (Y/N)"

"General Failure's Fault. Not Yours."

"Hit any user to continue."

"Scandisk is now checking your hard disk. You can start

praying."

"Smash forehead on keyboard to continue."

"Earth is 98% full. Please delete anyone you can."

"Ooops. My brain just hit a bad sector."

"Cannot find REALITY.SYS...Universe Halted."



Achievement and Success:

CA. Usha Tolani have joined the Team Taxpert. We

welcome her in the family and wish her very good and

promising career ahead.

Brother of Abhineet Shukla got scholarship in his exams. We

are very proud of him and wish him all the best.

The Budget publication of company was appreciated by

clients and is viewed more than 1000 times. The efforts of

team especially Milin, CA. Garima, CA.Shilpa and Hema are

much esteemed.

CA. Sudha G. Bhushan addressed the Company secretary

members on Budget Implication on Foreign Investors. The

presentation was shared with 150 Members and was

selected for being uploading in the official website of

Institute of Company Secretaries of India.

http://www.icsi.edu/docs/wiro/efocus/Mar2012.pdf

http://www.slideshare.net/casudhagbhushan/budget-2012-2013-analysis

http://www.icsi.edu/docs/wiro/efocus/Mar2012.pdf



Anniversary of CA. Shilpa

Musings….





Newsletter taxpert for the moth April

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