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Showing posts from November 2, 2015

Govt’s e-services to pinch your pockets soon

The Delhi government has taken several measures to promote e-governance but the services under it will soon come at a cost. The government is planning to levy user charges — ranging from Rs.50 to Rs.500 — for issuing different kinds of certificates online, officials said.
Around two months back, the Delhi government’s revenue department launched its e-districts project under which the certificates are issued and delivered to city residents online. No extra cost is charged for it. However, now the revenue department has decided to levy charges for providing the service. The revenue department issued an order earlier this month fixing the user charges for different certificates. Of ficials said the order is likely to be implemented by November-end. “Efforts are on to integrate the payment gateway of the e-district portal with State Bank of India. The discussions are in an advanced stage and is likely to become operational by November-end. The user charges order would be implemented along wit…

Mixed results so far on Budget announcements

With five months of financial year 2015- 16 left, the time is right to assess the progress of announcements made by Finance Minister Arun Jaitley in the Budget for 2015- 16. The government cleared confusions relating to tax matters. However, most of these relate to Jaitleys maiden Budget for 2014- 15. The finance ministry also did away with minimum alternate tax ( MAT), not only on foreign portfolio investors (FPIs), but also on businesses without permanent establishment in India. However, this was not a Budget announcement, but a fallout of the proposal that did away with MAT on FPIs prospectively. The most important of these measures was to be the introduction of the Goods and Services Tax ( GST) from the next financial year. The Constitution Amendment Bill in this regard is stuck in the Rajya Sabha. The Congress, All India Anna Dravida Munnetra Kazhagam and left parties are opposed to it in the present form, despite a Rajya Sabha select panel altering the contentious one per cent tax o…

Medical test abroad not tax exempt

The Bombay High Court last week ruled that expenses incurred by a professional going abroad for treatment of eye is not eligible for income tax deduction. The assessee in this case, Dhimant Thakar vs CIT, was a lawyer and he argued that good vision was important for pursuing his profession. His claim for the assessment year 1986- 87 was rejected by the revenue authorities. His appeal was also rejected by the Commissioner of Income Tax ( Appeals) who observed that if the logic of the lawyer was stretched, it would mean that even expenditure incurred on food to preserve oneself should be treated as allowable under Section 37( 1) of the Income Tax Act as being incurred for business or profession. On appeal, the high court upheld the view of the authorities observing that “ eyes are essential not only for the purpose of business or profession but for purposes other than these which are so many. It is therefore clear that the said expenditure as claimed by the professional is not in the na…

Putting arbitration on fast track

Changes in the legal system are essential for India to attract foreign investment. Foreign companies are often reluctant to invest here because of the perception that the Indian legal system does not give sufficient protection to foreign investment. Indian Arbitration and Conciliation Act, 1996 is often criticised as unhelpful to international parties. The Arbitration and Conciliation ( Amendment) Ordinance, 2015 is likely to address delays to arbitration- related proceedings in Indian courts. It includes a vast range of new statutory provisions, including the option for tribunals to award compound interest, the imposition of time limits on awards, and the opening up of arbitration to foreign law firms. However, one has to realistically accept that the standing of India as a reputable seat for international arbitration and litigation is not very high for other reasons, too, prompting parties to turn to neighbouring centres such as Hong Kong and Singapore. The real issue the government ne…

Court can substitute arbitrator

If an arbitrator nominated by the contesting parties withdraws from the proceedings, the court can select a substitute arbitrator of its own choice. “It is the courts duty to give effect to the policy of law, that is to promote efficacy of arbitration,” the Supreme Court has stated in its judgment, Shailesh vs Mohan. In this case, the parties selected a retired judge of the Supreme Court from a panel of names but she resigned midway. The parties could not agree on a new name and the matter went back to the Bombay high court. It substituted one of its retired judges in her place. This was opposed by one of the parties, which argued that once the arbitrator withdraws, the agreement ended and the court could not name another. Rejecting this argument, the Supreme Court stated that under Section 15( 2) of the Arbitration and Conciliation Act, when the mandate of an arbitrator terminates, a substitute arbitrator “ shall” be appointed. Arbitration must go on. For example, in a family dispute…

CBEC revises arrest, prosecution norms

Its circulars prescribe threshold limits, due sanction from senior officers, procedures to be followed, monitoring disciplines and procedure for withdrawal of complaints The Central Board of Excise and Customs ( CBEC) has revised the monetary limits for arrest and its guidelines for prosecution in matters relating to offences punishable under Customs, Central Excise and Service Tax laws. Its circulars ( dated October 23) prescribe threshold limits, due sanction from senior officers, procedures to be followed, monitoring disciplines and procedure for withdrawal of complaints. In Customs matters, the CBEC says arrest in respect of an offence should be effected only in exceptional situations. These include unauthorised importation under baggage rules where the value of the goods involved is Rs.20 lakh or more; smuggling of highvalue goods such as precious metals, restricted items or prohibited items; wilful mis- declaration in description of goods, concealment of goods, where the value of …

Updates of the day...

Updates Of the Day
1.ICAI Election Procedure - Each voter has only one vote for election to the council and one vote for election to the regional council. The voter, in order to cast his vote, shall place on his ballot paper the No. 1 (in arabic or roman numerals, or in words) against the name of the candidate for whom he desires to vote, and may, in addition, place on his ballot paper the number 2, or numbers 2 and 3, or the numbers 2, 3 and 4 and so on opposite the names of other candidates in the order of his preference.
2.UCO Bank invites applications from Chartered Accountants for employment in bank for 100 posts. Last date to submit application is 20th November 2015.
3.Modified version of AOC -4 is available on portal by which if intimation of appointment of auditor is not required under section 139 (5)(6)(7) then entering the SRN Z99999999 will work.
4.Last date of filing MCA forms AOC-4 (XBRL and non-XBRL) and MGT-7 have been extended till 30th November 2015 without additiona…