The Ministry of Finance has issued a press release stating that the Safe Harbour Rules have been finalized after considering the comments of various stake holders. The significant aspect is that in case of transactions in the nature of routine ITES and ITS activities the earlier ceiling of Rs 100 crore has been removed. Transactions upto Rs. 500 crore have been provided safe harbour margin of 20% and transaction above Rs.500 crore have been provided safe harbour margin of 22%. Similarly, the ceiling of Rs. 100 crore provided for transactions in the nature of corporate guarantee has been removed. Also, the rules provide for a time bound procedure for determination of the eligibility of the assessee and the international transactions. Any rejection of the option exercised by the assessee shall be by way of a reasoned order passed after hearing the assessee. The assessee shall have a right to file an objection with the Commissioner against adverse finding regarding the eligibility. The Commissioner shall thereafter decide about the validity of the option exercised by the assessee
Parliament Committee Hauls Up Dept For ‘Adventurous’ Assessment Orders
The Parliamentary Public Accounts Committee has released a report on “Tax Administration” in which several far-reaching observations have been made regarding the functioning of the Income-tax department. One of the issues that irked the Committee was the tendency amongst the Assessing Officers of passing “adventurous” assessment orders. It noted that the arbitrary additions made in such “adventurous” orders were causing undue harassment to the taxpayers and had led to high levels of dis-satisfaction. It recorded the solemn statement of the Revenue Secretary that a system would be implemented which would provide disincentives against such orders. The department assured the Committee that it would henceforth inculcate in the Assessing Officers an attitude of passing “fair and judicious” assessment orders.
Law Ministry Seeks Judges For Appointment As ITAT President
The Ministry of Law & Justice has issued a letter dated 29.08.2013 to the Registrar Generals of the High Courts requesting that the names and other prescribed particulars of sitting and retired Judges who are willing to be appointed as President of the Income Tax Appellate Tribunal be forwarded for the consideration of the Selection Committee
Transfers Of Hon’ble Members Of The ITAT (Sept 2013)
Vide Order dated 12.09.2013 passed pursuant to the consultations with the collegium of the ITAT consisting of the President and two senior most Vice Presidents the following Members of the ITAT are hereby transferred in the same capacity to the respective Benches, mentioned below, with immediate effect in public interest
S. 14A Disallowance Controversy Referred To Third Member
The controversy over whether s. 14A can apply to a case where shares (and other securities) are held as stock-in-trade (and not as investment) has been referred to a Third Member. The matter is posted for hearing on Friday, 13th September 2013. Hon’ble U. B. S. Bedi, Judicial Member, is the Third Member
CBDT Instruction On Procedure For Adjustment Of Refund Against Demand
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. 12/2013 (F. NO. 312/55/2013-OT) dated 09.09.2013 stating that no refund should be adjusted without following the procedure prescribed in s. 245 of the Act of intimating the assessee of the proposed adjustment and considering his objections thereto
Draft Companies Rules 2013 Is Available For Download
Pursuant to the Companies Act 2013 which was enacted on 29.08.2013, the Ministry of Corporate Affairs has released the Draft Companies Rules 2013
The Law On Tax Treaty Override By Hon’ble Pramod Kumar, Member, ITAT
The question whether a State can indulge in tax treaty override by enacting provisions in the domestic law which are inconsistent/ contrary to the provisions in the tax treaty has been the subject matter of considerable controversy. The author, an Accountant Member of the Income Tax Appellate Tribunal, has, in a presentation made at the annual assembly of the International Association of Tax Judges in Amsterdam, carefully analyzed the entire theory and law on the subject and explained it in the proper perspective
Companies Act 2013 Is Available For Download
The Companies Act, 2013, which received the assent of the President on the 29th August, 2013, is available for download Taxmann Companies Act 2013
CBDT Instruction Regarding Unmatched TDS Challans In Form 26AS
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. 11 of 2013 dated 27.08.2013 stating that where the report by the deductor in the TDS statement are not found available in the OLTAS database resulting in TDS mismatch, the CPC(TDS)/ AOs(TDS) shall immediately issue letters to the deductors, in whose case TDS challans are unmatched, with a view to verify and correct these challans. If necessary, the deductors may be asked to file correction statements, as per the procedure laid down and necessary follow up action be taken. It has been directed that the task should be completed by 31st December 2013 for FY 2012-13 in the case of CPC (TDS) and FYs 2011-12 & earlier in case of AOs (TDS)
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