The Ministry of Finance has issued a press release dated 14.08.2013 inviting comments and suggestions on the draft “Safe Harbour Rules” proposed to be inserted by way of Rules 10TA to Rule 10TG in the Income-tax Rules, 1962. The Rules have been framed based on the recommendations of the Rangachary Committee

The Ministry of Finance has issued a press release dated 13.08.2013 stating that the Union Cabinet has approved the proposal for setting up of the Tax Administration Reform Commission (TARC)

The CBEC has released a publication titled “Service Tax – Voluntary Compliance Encouragement Scheme (VCES), 2013 – Frequently Asked Questions” in which all doubts and apprehensions raised by taxpayers have been answered by the CBEC in the form of FAQs. For ease of reference, the statutory provisions and the ST VCES Rules containing the VCES forms are also included in the booklet

The Central Board of Excise and Customs(CBEC) has issued Circular No. 170/5 /2013 – ST dated 08.08.2013 providing important clarifications as to the scope and applicability of the Service Tax Voluntary Compliance Encouragement Scheme (VCES)

The CBDT has issued Instruction No. 10 of 2013 dated 05.08.2013 announcing the procedure and criteria for selection of scrutiny cases under the compulsory manual for FY 2013-14. The guidelines appear to have been issued pursuant to the direction of the Delhi High Court in Joginder Pal Gulati vs. OSD – CPIO

The CBDT has vide letter dated 31.07.2013 stated that special counters have been opened for acceptance of returns on Saturday and Sunday to facilitate taxpayers

The CBDT has issued a Press Release stating that the due date for filing of returns u/s 139(1) of the Income-tax Act, 1961 is extended to August 5, 2013

Pursuant to the judgement of the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273, the CBDT has issued Instruction No. 5/2013 F.No.275/03/2013-IT(B), dated 8.07.2013 stating that when an assessee approaches the AO with requisite details and particulars in the form of TDS certificate as evidence against any mismatched amount, the AO will grant credit of TDS to the assessee after ascertaining whether the deductor has made payment of the TDS to the Government

The CBDT has issued Instruction No. 03/2013 dated 05.07.2013 with regard to the the directive issued by the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273 on the procedure to be followed on the receipt and disposal of rectification applications filed u/s 154 of the Act. The CBDT has set out a detailed procedure on where applications should be received, the maintenance of registers and their disposal. The CBDT has also issued Instruction No. 04/2013 dated 05.07.2013 with regard to the directive issued by the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273 that the demand should not be enforced in cases where no intimation u/s 143(1) was send by the field authorities in respect of returns which were processed prior to 31.03.2010.

In July 2012, the Prime Minister constituted a Committee to Review Taxation of Development Centers and the lT Sector under the Chairmanship of Mr. N Rangachary, former Chairman CBDT & IRDA. Several eminent tax professionals are a part of the Committee. The Committee has issued a first report dated 14.09.2012 in which it has dealt with several important issues such as (i) approach to taxation of Development Centres, (ii) whether the TNMM or the Profit Split Method or the Global Profit method should be adopted to determine the arms’ length income of these Centres, (iii) general transfer pricing issues which are not specific to the IT Sector (iv) income-tax issues pertaining to the IT Sector such as (a) whether “on-site” development is an export activity, (b) the impact of retrospective amendment of the definition of royalty with regard to taxation of software and transmission charges. The Committee has made far-reaching recommendations on each of the issues