Month: January 2013

The Revenue Secretary has issued an Office Memorandum dated 22.01.2013 in which he has expressed concern over the searches/ investigations conducted by the Anti-Corruption branch of the CBI on the officers of the CBDT & CBEC and the complaints alleging misconduct by the officers in their official conduct of duties. He has stated that such incidents erode the confidence of the taxpaying community and the public and should be avoided. The Revenue Secretary has emphasized that there should be “Zero tolerance towards malpractices and corruption” and that senior officers should lead by example. Some suggestions have been given on how to achieve this salutary goal

With a view to addressing the numerous problems being faced by taxpayers due to faulty processing of TDS claims, the CBDT has formulated the “Centralised Processing of Statements of Tax Deducted at Source Scheme, 2013”. The Scheme provides for the manner in which TDS correction statements will be filed, their processing, rectification of mistakes etc. In particular, it is provided that an adjustment of refunds against outstanding tax demand can be done u/s 245 of the Act only after issuing prior intimation to the taxpayer. An appeal can also be filed against the actions of the CPC

The CBDT has issued a comprehensive Circular No. 01/2013 dated 17.01.2013 in which it has provided clarifications on various issues relating to the export of computer software and the allowance of deduction under sections 10A, 10AA and 10B of the Income-tax Act, 1961. The Clarifications seek to address and resolve the several disputes that have arisen between the software industry and the income-tax department

CBEC Circular On Recovery Dated 01.01.2013 & Connected Legal Developments

The Ministry of Finance has issued the following Press Release dated 14.01.2013 setting out the statement of the Hon’ble Finance Minister on GAAR

The Expert Committee has submitted its Final Report on General Anti Avoidance Rules (GAAR) in Income-tax Act, 1961. The Report is very comprehensive and apart from giving an in-depth explanation of what the GAAR provisions are, it also has a number of examples of transactions which would be affected by GAAR

Vide Order No. 07 of 2013 dated 10.01.2013, the CBDT has promoted officers in the grade of Commissioner of Income-tax to the grade of Chief Commissioner of Income-tax. Vide Order No. 08 of 2013 dated 10.01.2013, the CBDT has transferred/ posted officers in the grade of Commissioner/ Director of Income-tax. Vide letter dated 10.01.2013, the CBDT has indicated the names of the officers who are in the consideration zone for promotion to the grade of Commissioner of Income-tax

All India Federation of Tax Practitioners (AIFTP) has released a publication titled “International Taxation – Important Aspects & Issues”. The publication explains the provisions, and deals with various controversies, relating to International Taxation. In particular, the book deals with issues such as Advance Rulings, Business Connection, Basic Principles of Interpretation of Double Taxation Agreements, Capital Gains, TDS obligations; Double Taxation Relief, Fees for Technical Services, What is income accruing or arising in India, Payments to non-residents, Royalties, Controversial issues in Transfer Pricing etc