tag:blogger.com,1999:blog-62402903402776709482024-02-06T23:52:23.357-08:00A Warm Welcome to all.Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-6240290340277670948.post-40345012375906806112018-02-01T06:42:00.001-08:002018-02-01T06:42:35.524-08:00Analysis of the Union Budget 2018<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "Arial","sans-serif";"> <b><u>Education
Cess:<o:p></o:p></u></b></span></div>
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<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 1)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Education cess and Secondary and
Higher Education Cess will be discontinued which was 2% and 1% respectively. <o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif;"><br /></span></div>
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<span style="font-family: Arial, sans-serif;">However,
a new cess, by the name of “Health and Education Cess” shall be levied at the
rate of 4%.</span></div>
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<br /></div>
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<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 2)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Slab
of taxation:<o:p></o:p></span></u></b></div>
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<br /></div>
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<u><span style="font-family: "Arial","sans-serif";">For
Every Individual, HUF, AOP, BOI and Artificial Judicial person<o:p></o:p></span></u></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif";">Upto
Rs. 2,50,000 Nil<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif";">Rs.
2,50,001 to Rs. 5,00,000 5
%<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif";">Rs.
5,00,001 to Rs. 10,00,000 20 %<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif";">Above
Rs. 10,00,000 30
%<o:p></o:p></span></div>
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<br /></div>
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<u><span style="font-family: "Arial","sans-serif";">For
Senior Citizen:<o:p></o:p></span></u></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif";">Upto
Rs.3,00,000 Nil<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif";">Rs.
3,00,001 to Rs. 5,00,000 5 %<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif";">Rs.
5,00,001 to Rs. 10,00,000 20
%<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif";">Above
Rs. 10,00,000 30
%<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif";"><u>For
Super Senior Citizen:<o:p></o:p></u></span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif";">Upto
Rs. 5,00,000 Nil </span><span style="font-family: Arial, sans-serif; text-indent: 36pt;">Rs.
5,00,001 to Rs. 10,00,000 20
%</span></div>
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<span style="font-family: Arial, sans-serif; text-indent: 36pt;">Above Rs.
10,00,000 30
%</span></div>
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<br /></div>
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<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 3)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">For
Partnership firm, no change in the rates of taxation. <o:p></o:p></span></div>
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<br /></div>
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<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 4)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-family: "Arial","sans-serif";">For
Companies:<o:p></o:p></span></u></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l4 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]-->-<span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span><span style="font-family: "Arial","sans-serif";">In
case of domestic company, the rate of income-tax shall be 25%. of the total
income if the total turnover or gross receipts of the previous year 2016-17
does not exceed 250 Crore rupees <o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l4 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]-->-<span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span><!--[endif]--><span style="font-family: "Arial","sans-serif";">In
all other cases the rate of Income-tax shall be 30 % of the total income. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l4 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]-->-<span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span><span style="font-family: "Arial","sans-serif";">In
the case of company other than domestic company, the rates of tax are the same
as those specified for the financial year 2017-18<o:p></o:p></span></div>
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<br /></div>
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<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 5)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-family: "Arial","sans-serif";">Surcharge
</span></u><span style="font-family: "Arial","sans-serif";">– Same as specified
for Financial Year 2017-18.<o:p></o:p></span></div>
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<br /></div>
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<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 6)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Entities
to apply for Permanent Account Number in certain cases</span></u></b><u><span style="font-family: "Arial","sans-serif";"><o:p></o:p></span></u></div>
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<span style="font-family: "Arial","sans-serif";"><br /></span></div>
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<span style="font-family: "Arial","sans-serif";">In
order to use PAN as Unique Entity Number (UEN) for non-individual entities, it
is proposed that every person, not being an individual, which enters into a
financial transaction of an amount aggregating to two lakh and fifty thousand
rupees or more in a financial year shall be required to apply to the Assessing
Officer for allotment of PAN.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">In
order to link the financial transactions with the natural persons, it is also
proposed that the managing director, director, partner, trustee, author,
founder, karta, chief executive officer, principal officer or office bearer or
any person competent to act on behalf of such entities shall also apply to the
Assessing Officer for allotment of PAN.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
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</span></span><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Dividend
Distribution Tax to Deemed Dividend</span></u></b><u><span style="font-family: "Arial","sans-serif";"><o:p></o:p></span></u></div>
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<br /></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">At
present dividend distributed by a domestic company is subject to dividend
distribution tax payable by such company.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; mso-bidi-font-weight: bold;">However, Deemed dividend as defined under Section
2(22)(e) of the Income Tax, 1961 is taxable in the hands of the recipient.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; mso-bidi-font-weight: bold;">In order to avoid litigation, it has been provided
that the DDT will also be applicable on deemed dividends. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; mso-bidi-font-weight: bold;">Further, such deemed dividend is proposed to be
taxed at the rate of 30% (without grossing up) in order to prevent camouflaging
dividend in various ways such as loans and advances.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 8)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="font-family: "Arial","sans-serif";">New
regime for taxation of long-term capital gains on sale of equity shares etc.<o:p></o:p></span></u></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Under
the existing regime, long term capital gains arising from transfer of long term
capital assets, being equity shares of a company or an unit of equity oriented
fund or an unit of business trusts , is exempt from income-tax under clause
(38) of section 10 of the Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It
is proposed to withdraw the exemption under clause (38) of section 10 and to
introduce a new section 112A in the Act to provide that long term capital gains
arising from transfer of a long term capital asset being an equity share in a
company or a unit of an equity oriented fund or a unit of a business trust shall
be taxed at 10% of such capital gains exceeding 1 Lac rupees<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: 36.0pt;">
<span style="font-family: "Arial","sans-serif";">Further, it
provides that:<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">The
long term capital gains will be computed without giving effect to the first and
second provisos to section 48, i.e. inflation indexation in respect of cost of
acquisitions and cost of improvement. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Further,
the cost of acquisitions in respect of the long term capital asset acquired by
the assessee before the 1st day of February, 2018, shall be deemed to be the
higher of –<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: 36.0pt;">
<span style="font-family: "Arial","sans-serif";">a) the
actual cost of acquisition of such asset; and<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: 36.0pt;">
<span style="font-family: "Arial","sans-serif";">b) the
lower of –<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 72.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo3; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(I)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">the
fair market value of such asset; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 72.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l1 level1 lfo3; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(II)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">the
full value of consideration received or accruing as a result of the transfer of
the capital asset.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 9)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Dividend
distribution tax on dividend pay outs to unit holders in an equity oriented
fund<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It
is proposed to provide that where any income is distributed by a Mutual Fund
being, an equity oriented fund, the mutual fund shall be liable to pay
additional income tax at the rate of ten per cent on income so distributed.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 10)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Extending
the Scope of TDS and Restriction of Cash payment by charitable or religious
trusts or institutions:<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">At
present, there are no restrictions on payments made in cash by charitable or
religious trusts or institutions. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">There
are also no checks on whether such trusts or institutions follow the provisions
of TDS.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">In
order to encourage a less cash economy and to reduce the generation and
circulation of black money, it is proposed to insert a new Explanation to the
section 11 to provide that for the purposes of determining the application of
income under the provisions of sub-section (1) of the said section, the
provisions of sub-clause (ia) of clause (a) of section 40, and of sub-sections
(3) and (3A) of section 40A, shall, mutatis mutandis, apply as they apply in
computing the income chargeable under the head “Profits and gains of business
or profession”.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 11)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Presumptive
income under section 44AE in case of goods carriage<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";"> </span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Section
44AE, inter alia provides that, the profits and gains shall be deemed to be an
amount equal to Rs. 7500/- per month or part of a month for each goods carriage
or the amount claimed to be actually earned by the assessee, whichever is
higher. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">The
current presumptive income scheme is applicable uniformly to all classes of
goods carriages irrespective of their tonnage capacity.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It is
proposed to amend the section 44AE of the Act to provide that, in the case of
heavy goods vehicle (more than 12MT gross vehicle weight), the income would
deemed to be an amount equal to Rs.1000/- per ton of gross vehicle weight or
unladen weight, as the case may be, per month or part of a month for each goods
vehicle or the amount claimed to be actually earned by the assessee, whichever
is higher.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 12)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Increase
in Section 80D Limit for Senior Citizens:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: Arial, sans-serif;">The
limit has been increased to Rs. 50,000/- from present limit of Rs. 30,000/-.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 13)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Increase
in Section 80DDB Limit for Senior Citizens:<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It is
proposed to amend the provisions of section 80DDB of the Act so as to raise
this monetary limit of deduction to Rs 1,00,000/- for both senior citizens and
very senior citizens.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 14)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Deduction
in respect of interest income<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">At
present, a deduction upto Rs 10,000/- is allowed under section 80TTA to an
assessee in respect of interest income from savings account. It is proposed to
insert a new section 80TTB so as to allow a deduction upto Rs 50,000/- in
respect of interest<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">income
from deposits held by senior citizens. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">However,
no deduction under section 80TTA shall be allowed in these cases.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> </span></b></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 15)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Standard
deduction on salary income:<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It is
proposed to allow a standard deduction up to Rs 40,000/- or the amount of
salary received, whichever is less. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Consequently
the present exemption in respect of Transport Allowance (except in case of
differently abled persons) and reimbursement of medical expenses is proposed to
be withdrawn.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 16)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Deduction
in respect of income of Farm Producer Companies:<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Section
80P provides for 100 percent deduction in respect of profit of cooperative society
which provide assistance to its members engaged in primary agricultural
activities.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It is
proposed to extend similar benefit to Farm Producer Companies (FPC), having a
total turnover up to Rs 100 Crore, whose gross total income includes any income
from-<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 72.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l2 level1 lfo4; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">the
marketing of agricultural produce grown by its members, or<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 72.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 72.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l2 level1 lfo4; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">the
purchase of agricultural implements, seeds, livestock or other articles
intended for agriculture for the purpose of supplying them to its members, or<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 72.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l2 level1 lfo4; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(iii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">the
processing of the agricultural produce of its members<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">The
benefit shall be available for a period of five years from the financial year
2018-19.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 17)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Incentive
for Employment Generation:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">At
present, under section 80-JJAA of the Act, a deduction of 30% is allowed in
addition to normal deduction of 100% in respect of emoluments paid to eligible
new employees who have been employed for a minimum period of 240 days during
the year.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">However,
the minimum period of employment is relaxed to 150 days in the case of apparel
industry. In order to encourage creation of new employment, it is proposed to
extend this relaxation to footwear and leather industry.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Further,
it is also proposed to rationalize this deduction of 30% by allowing the
benefit for a new employee who is employed for less than the minimum period
during the first year but continues to remain employed for the minimum period
in subsequent year.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 18)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Incentive
for Start Up:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">In
order to improve the effectiveness of the scheme for promoting start ups in
India, it is proposed to make following changes in the taxation regime for the
start ups:—<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l3 level1 lfo5; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">The
benefit would also be available to start ups incorporated on or after the 1st
day of April 2019 but before the 1st day of April, 2021; <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l3 level1 lfo5; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">The
requirement of the turnover not exceeding Rs 25 Crore would apply to seven
previous years commencing from the date of incorporation;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 54.0pt; margin-right: 0cm; margin-top: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l3 level1 lfo5; text-align: justify; text-autospace: none; text-indent: -36.0pt;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(iii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">The
definition of eligible business has been expanded to provide that the benefit
would be available if it is engaged in innovation, development or improvement
of products or processes or services, or a scalable business model with a high
potential of employment generation or wealth creation.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 19)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Tax
treatment of transactions in respect of trading in agricultural commodity
derivatives<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">In
order to encourage participation in trading of agricultural commodity
derivatives, it is proposed to amend the provisions of clause (5) of section 43
to provide that a transaction in respect of trading of agricultural commodity
derivatives, which is not chargeable to CTT, in a registered stock exchange or
registered association, will be treated as non-speculative transaction.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 20)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">New
scheme for scrutiny assessment<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It is
proposed to prescribe a new scheme for the purpose of making assessments so as
to impart greater transparency and accountability, by eliminating the interface
between the Assessing Officer and the assessee, optimal utilization of the
resources, and introduction of team-based assessment.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Therefore,
it is proposed to amend the section 143, by inserting a new sub-section (3A),
after sub-section (3), enabling the Central Government to prescribe the
aforementioned new scheme for scrutiny assessments, by way of notification in
the Official Gazette.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 21)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Rationalisation
of prima-facie adjustments during processing of return of income<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">With
a view to restrict the scope of adjustments, it is proposed to insert a new
proviso to the said clause to provide that no adjustment under sub-clause (vi)
of the said clause shall be made in respect of any return furnished on or after
the assessment year commencing on the first day of April, 2018.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 22)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Extending
the benefit of tax-free withdrawal from NPS to non-employee subscribers<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Under
the existing provisions of the clause (12A) of section 10 of the Act, an
employee contributing to the NPS is allowed an exemption in respect of 40% of
the total amount payable to him on closure of his account or on his opting out.
This exemption is not available to non-employee subscribers. In order to
provide a level playing field, it is proposed to amend clause (12A) of section
10 of the Act to extend the said benefit to all subscribers.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 18.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 23)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Rationalization
of section 43CA, section 50C and section 56<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">At
present, while taxing income from capital gains (section 50C), business profits
(section 43CA) and other sources (section 56) arising out of transactions in
immovable property, the sale consideration or stamp duty value, whichever is
higher is adopted.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">The
difference is taxed as income both in the hands of the purchaser and the
seller.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It has
been pointed out that this variation can occur in respect of similar properties
in the same area because of a variety of factors, including shape of the plot
or location. In order to minimize hardship in case of genuine transactions in
the real estate sector,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It is
proposed to provide that no adjustments shall be made in a case where the variation
between stamp duty value and the sale consideration is not more than five
percent of the sale consideration.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -18.0pt;">
<!--[if !supportLists]--><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 24)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Amendments
related to ICDS (Income Computation and Disclosure Standards)<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0cm; margin-left: 36.0pt; margin-right: 0cm; margin-top: 0cm; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">It
is proposed to bring the notified amendments retrospectively with effect from
1st April, 2017 i,e the date on which the ICDS was mad effective and will,
accordingly, apply in relation to assessment year 2017-18 and subsequent
assessment years<o:p></o:p></span></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-54946042722482730422017-12-16T06:23:00.002-08:002017-12-16T06:23:07.807-08:00#GST_Update - 24th GST Council Meet - Implementation of E Way Bill w.e.f. 1st Feb 2018 and all other deadlines for E Way Bill System<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimXh4rSiaNbBjPB8xXb8E8EdnpgdQnvNDwEqsSScfd_va1YKMsV3XL1RejrnCJYKkEY2RShLuKn5m2UDAvlwBemJnsyn5j7vUJHFSj1tqRYsGEviHFO2kQQk0kAGvLzAFQ2u9nFk7RqHWe/s1600/download.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="186" data-original-width="271" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimXh4rSiaNbBjPB8xXb8E8EdnpgdQnvNDwEqsSScfd_va1YKMsV3XL1RejrnCJYKkEY2RShLuKn5m2UDAvlwBemJnsyn5j7vUJHFSj1tqRYsGEviHFO2kQQk0kAGvLzAFQ2u9nFk7RqHWe/s1600/download.jpg" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif";">Today,
the 24<sup>th</sup> Meeting of the GST Council was conducted by mode of Video
Conferencing to decide the E Way Bill Mechanism. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif";">In
the GST Council meet, following decisions were approved:<o:p></o:p></span></div>
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<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">1) Nationwide E Way Bill system will be
ready on trial basis latest by 16</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">th</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> January, 2018.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">2) For Interstate moment of goods (as
defined in e way bill rules), E Way Bill is mandatory with effect from 1</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;">
February, 2018.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">3) It means that 16</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">th</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> January
2018 to 31</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> January 2018 will be on trial basis for traders,
transporters. From 1</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> February, for </span><u style="font-family: Arial, sans-serif; text-indent: -0.25in;">interstate</u><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> moment of
goods it is mandatory.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">4) The nationwide E Way bill system will
be ready for both i.e. intrastate and interstate moment of goods from 16</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">th</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;">
January, 2018.</span></div>
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<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">5) However, the states may choose their own
timing for implementation of e-way bill for </span><u style="font-family: Arial, sans-serif; text-indent: -0.25in;">intrastate</u><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> moment of goods but
latest by any date before 1</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> June, 2018.</span></div>
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<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">6) States have been given option to
choose nationwide e way bill system for intrastate moment of goods before 1</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;">
June, 2018. After 1</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;"> June, 2018, it is mandatory for the states to
follow nationwide e way bill system.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; text-indent: -0.25in;">7) Certain states are already ready and
may adopt to implement nationwide e way bill system from 1</span><sup style="font-family: Arial, sans-serif; text-indent: -0.25in;">st</sup><span style="font-family: Arial, sans-serif; text-indent: -0.25in;">
February, 2018 itself. </span></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-73853578403450337952017-12-07T10:19:00.000-08:002017-12-07T10:19:06.868-08:00Detailed Article on Effect of GST on Intrastate / Interstate Branch Transfers and Warehouse Business<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmJ-IkHVh1EFZlCIN66Wr9g0eLoF53PZizr0zPPg3LqeJgAj_cNYavDPhcaz8EjENp5w2fWTEqIYuJLBVY2OGn3ig2P8vGTSrdQo6EKtkGxzMYT0zWnKf1jiuR6a-G2rhEQJvdfmxrwi9r/s1600/Inter+branch+transfers.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="457" data-original-width="1600" height="91" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhmJ-IkHVh1EFZlCIN66Wr9g0eLoF53PZizr0zPPg3LqeJgAj_cNYavDPhcaz8EjENp5w2fWTEqIYuJLBVY2OGn3ig2P8vGTSrdQo6EKtkGxzMYT0zWnKf1jiuR6a-G2rhEQJvdfmxrwi9r/s320/Inter+branch+transfers.png" width="320" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Dear
Friend, <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">It
has been around six months; the GST law is being introduced. During the six
months, many changes were being made by the GST Council. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">Mainly
such changes relates to either procedural issue or the rate of taxation. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">However,
there will be very rare instances in which the Council will change the place of
supply, value of supply etc. which are the core fields of GST Law. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;">In
continuing the series of articles on GST, we are presenting this article which
is mainly focusing on the cautions to be taken at the time of Branch Transfers by
Companies doing the branch transfer and the warehouse owners.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 107%; mso-ansi-language: EN-US;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 17.12px;">The entire article can be accessed from our website. </span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 17.12px;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 17.12px;">For reading entire article, <a href="http://www.pchhajed.com/blog/gst-branch_transfer/">Click Here</a>.</span></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-20721891646538537002017-06-30T05:50:00.000-07:002017-06-30T05:50:23.474-07:00Invoice, Billing and other documents under GST<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKNX6tsV3SBW7pROVgTQyDmgruyA1xcEVt1kFTu_pxGANHXJfE_GBd4aajdXuk5LbD_iSljfj0wO6h33S4H8thMz2yMVrx_YsbxlcbOrmNn_vAoCd4z0omsm8nJ_53Fg07ajnGyfSAC_Gf/s1600/invoice.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="178" data-original-width="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKNX6tsV3SBW7pROVgTQyDmgruyA1xcEVt1kFTu_pxGANHXJfE_GBd4aajdXuk5LbD_iSljfj0wO6h33S4H8thMz2yMVrx_YsbxlcbOrmNn_vAoCd4z0omsm8nJ_53Fg07ajnGyfSAC_Gf/s1600/invoice.jpg" /></a></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif";">We have received many queries from the
clients with regards to various provisions of the GST and we are resolving the
same to their satisfaction on one to one basis. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">During this process, we have come
through many general queries and one of that is in relation to invoice, billing
and other documents to be issued by the supplier. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">The invoice is very crucial issue in
the regime of GST and therefore, we are presenting an article for the same. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">The myth that’s prevalent is that the
invoice and the other documents are to be issued in one standard format only.
However, it is not like that. The council has only specified the matters which
are mandatorily to be incorporated in the invoice. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">In general, the following documents
are to be issued by the supplier:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 1)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Tax
Invoice – For supplying the taxable goods / service<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 2)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Revised
Invoice – For the transactions covering the period beginning with the effective
date of registration till the date of issuance of certificate of registration.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 3)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Bill
of Supply : For supply of exempted goods or services or paying tax under
composition scheme<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 4)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Receipt
voucher: For advance payment<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 5)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span style="font-family: "Arial","sans-serif";">Refund
voucher: No supply is made and no tax invoice is issued against the advance
payment.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 6)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Invoice: For the transactions covering under Reverse
Charge Mechanism<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 7)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Payment
Voucher: For making the payment to supplier who is liable to pay tax under
Reverse Charge Mechanism. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 8)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Credit
note: Taxable Value or Tax charged is in
excess of what it should be, goods are returned, goods / services supplied are
found to be deficient.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 9)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Debit
note: Taxable value or Tax charged is less than what it should be. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">The details to be mentioned in respect
of above are produced as below:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<h3 style="mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 1)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">For
Tax Invoice:</span></u></b></h3>
<div class="MsoListParagraph" style="mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; text-indent: 0.25in;"><br /></span></div>
<div class="MsoListParagraph" style="text-align: justify; text-indent: -24px;">
<span style="text-indent: 0.25in;"><span style="font-family: Arial, sans-serif;"><b><u> </u> </b></span></span><span style="font-family: Arial, sans-serif; text-indent: 0.25in;">A tax invoice
shall be issued by the registered person containing the following particulars:</span></div>
<div class="MsoListParagraph" style="text-align: justify; text-indent: -24px;">
<span style="font-family: Arial, sans-serif; text-indent: 0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(a) Name,
address and GSTIN of the supplier;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(b) a
consecutive serial number not exceeding sixteen characters, in one or multiple
series, containing alphabets or numerals or special characters hyphen or dash
and slash symbolized as “-” and “/” respectively, and any combination thereof,
unique for a financial year;<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(c) Date of
its issue;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(d) Name,
address and GSTIN or UIN, if registered, of the recipient;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(e) Name and
address of the recipient and the address of delivery, along with the name of
State and its code, if such recipient is un-registered and where the value of
taxable supply is fifty thousand rupees or more; (Note 1) <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(f) HSN code
of goods or Accounting Code of services; (Note 2)<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(g)
Description of goods or services;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(h) Quantity
in case of goods and unit or Unique Quantity Code thereof;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(i) Total
value of supply of goods or services or both;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(j) Taxable
value of supply of goods or services or both taking into account discount or
abatement, if any;<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(k) Rate of
tax (central tax, State tax, integrated tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(l) Amount of
tax charged in respect of taxable goods or services (central tax, State tax,
integrated tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(m) Place of
supply along with the name of State, in case of a supply in the course of
inter-State trade or commerce;<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .25in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(n) Address
of delivery where the same is different from the place of supply;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(o) Whether
the tax is payable on reverse charge basis; and<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(p) Signature
or digital signature of the supplier or his authorized representative:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="font-family: "Arial","sans-serif";">Note 1:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="font-family: "Arial","sans-serif";"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">In case of export of goods or
services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT ON
PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF
UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and shall,
in lieu of the details specified in clause (e), contain the following details: <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(i) Name and address of the recipient;
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(ii) Address of delivery; and <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(iii) Name of the country of destination:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="font-family: "Arial","sans-serif";">Note 2:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">The guidelines for HSN Code are as
under:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 111.0pt; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Businesses with
turnover of less than Rs 1.5 crores will not be required to use HSN codes for
their commodities.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 111.0pt; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 111.0pt; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Businesses with
turnover between Rs 1.5 Crores and Rs 5 Crores shall be required to use
two-digit HSN codes for their commodities.<o:p></o:p></span></div>
<div class="MsoListParagraph" style="line-height: normal;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 111.0pt; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Businesses with
turnover equal to Rs 5 Crores and above shall be required to use four-digit HSN
codes for their commodities.<o:p></o:p></span></div>
<div class="MsoListParagraph" style="line-height: normal;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 111.0pt; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="color: #404040; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">In the case of
imports/exports, HSN codes of eight digits shall be compulsory.<o:p></o:p></span></div>
<div class="MsoListParagraph" style="line-height: normal;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 111.0pt; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo3; tab-stops: list .5in; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;">·<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #404040; font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";">Small dealers under
composition scheme will not be required to mention HSN codes in their invoices.</span><span style="font-family: "Arial","sans-serif";"><o:p></o:p></span></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"> </span><b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 2)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">For
Bill of supply:<o:p></o:p></span></u></b></h3>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">A
bill of supply shall contain the following particulars:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Name,
address and GSTIN of the supplier;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">a
consecutive serial number not exceeding sixteen characters, in one or more multiple
series, containing alphabets or numerals or special characters -hyphen or dash
and slash symbolised as “-” and “/”respectively, and any combination thereof,
unique for a financial year;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 40.5pt; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Date
of its issue;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 40.5pt; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Name,
address and GSTIN or UIN, if registered, of the recipient;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 40.5pt; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">HSN
Code of goods or Accounting Code for services;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 40.5pt; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Description
of goods or services or both;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 40.5pt; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(g)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Value
of supply of goods or services or both taking into account discount or abatement,
if any; and<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 40.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(h)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Signature
or digital signature of the supplier or his authorized representative:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">Note 1 and 2 of above will apply
mutatis mutandis. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 3)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Receipt
Voucher:<o:p></o:p></span></u></b></h3>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">A receipt
voucher shall contain the following particulars:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the
supplier;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">a consecutive serial number not
exceeding sixteen characters, in one or multiple series, containing alphabets
or numerals or special characters -hyphen or dash and slash symbolized as “-”
and “/”respectively, and any combination thereof, unique for a financial year<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">date of its issue;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN or UIN, if
registered, of the recipient;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">description of goods or services;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount
of advance taken;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (g)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">rate of tax (central tax, State tax,
integrated tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (h)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount of tax charged in respect of
taxable goods or services (central tax, State tax, integrated tax, Union
territory tax or cess);<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">place
of supply along with the name of State and its code, in case of a supply in the
course of inter-State trade or commerce;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (j)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">whether
the tax is payable on reverse charge basis; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l8 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (k)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">signature or digital signature of the
supplier or his authorized representative: <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<u><span style="font-family: "Arial","sans-serif";">Note 3: <o:p></o:p></span></u></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">Provided that where at the time of
receipt of advance,<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(i) the rate of tax is not
determinable, the tax shall be paid at the rate of eighteen per cent.;<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(ii) the nature of supply is not
determinable, the same shall be treated as inter-State supply<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 4)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Refund
Voucher:<o:p></o:p></span></u></b></h3>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; text-indent: 0.25in;"><br /></span></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; text-indent: 0.25in;">A refund
voucher shall contain the following particulars:</span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 13.5pt; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 4.5pt; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the
supplier;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">a consecutive serial number not
exceeding sixteen characters, in one or multiple series, containing alphabets
or numerals or special characters -hyphen or dash and slash symbolised as “-”
and “/”respectively, and any combination thereof, unique for a financial year<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">date of its issue;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN or UIN, if
registered, of the recipient;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">number and date of receipt voucher
issued in accordance with provisions of sub- rule 5;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">description
of goods or services in respect of which refund is made;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(g)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount of refund made;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(h)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">rate of tax (central tax, State tax,
integrated tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount
of tax paid in respect of such goods or services (central tax, State tax,
integrated tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(j)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">whether
the tax is payable on reverse charge basis; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l2 level1 lfo5; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(k)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">signature or digital signature of the
supplier or his authorized representative.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 5)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Payment
Voucher:<o:p></o:p></span></u></b></h3>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">A payment shall
contain the following particulars:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the
supplier if registered;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">a consecutive serial number not
exceeding sixteen characters, in one or multiple series, containing alphabets
or numerals or special characters -hyphen or dash and slash </span><span style="font-family: Arial, sans-serif;">symbolised
as “-” and “/”respectively, and any combination thereof, unique for a financial
year</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">
<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">date of its issue;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the
recipient;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">description of goods or services;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount
paid;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (g)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">rate of tax (central tax, State tax,
integrated tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (h)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount of tax payable in respect of
taxable goods or services (central tax, State tax,<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">integrated
tax, Union territory tax or cess);<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">place
of supply along with the name of State and its code, in case of a supply in the course of inter-State trade or commerce; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l1 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (j)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">signature
or digital signature of the supplier or his authorized representative<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 6)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Revised
tax invoice and credit or debit notes<o:p></o:p></span></u></b></h3>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">A revised tax
invoice and credit or debit note shall contain the following particulars –<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">the word “Revised Invoice”, wherever
applicable, indicated prominently;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the
supplier;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">nature of the document;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">a consecutive serial number not exceeding
sixteen characters, in one or multiple series, containing alphabets or numerals
or special characters -hyphen or dash and slash symbolised as “-” and
“/”respectively,, and any combination thereof, unique for a financial year;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">date of issue of the document;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name,
address and GSTIN or UIN, if registered, of the recipient;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (g)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name and address of the recipient and
the address of delivery, along with the name of State and its code, if such
recipient is un-registered;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";"> </span><span style="font-family: Arial, sans-serif; text-indent: 0.25in;">(h) serial
number and date of the corresponding tax invoice or, as the case may be, bill
of</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">supply; <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-indent: .25in; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">value of taxable supply of goods or
services, rate of tax and the amount of the tax credited or, as the case may
be, debited to the recipient; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l4 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (j)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">signature
or digital signature of the supplier or his authorized representative:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 7)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Tax
Invoice or Credit Note for Input Service Distributor (ISD)<o:p></o:p></span></u></b></h3>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; text-indent: 0.25in;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; text-indent: 0.25in;">The tax
invoice or the Credit note to be issued by ISD shall contain the following
particulars:</span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l7 level1 lfo8; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the Input
Service Distributor;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l7 level1 lfo8; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">a consecutive serial number not
exceeding sixteen characters, in one or multiple series, containing alphabets
or numerals or special characters hyphen or dash and slash symbolised as , “-”,
“/”, respectively, and any combination thereof, unique for a financial year;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l7 level1 lfo8; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">date of its issue;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l7 level1 lfo8; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">name, address and GSTIN of the
recipient to whom the credit is distributed;<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l7 level1 lfo8; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">amount of the credit distributed; and<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l7 level1 lfo8; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> (f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">signature
or digital signature of the Input Service Distributor or his authorized representative:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<h3 style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l5 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<b><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;"> 8)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Arial","sans-serif";">Transportation
of goods without issue of invoice:<o:p></o:p></span></u></b></h3>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif;"><br /></span></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif;">For
the below mentioned purposes, the consigner may issue a delivery challan,
serially numbered not exceeding sixteen characters, in one or multiple series,
in lieu of invoice at the time of removal of goods for transportation.</span></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l3 level1 lfo9; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">supply of liquid gas where the
quantity at the time of removal from the place of business of the supplier is
not known,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l3 level1 lfo9; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">transportation of goods for job work,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l3 level1 lfo9; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">Transportation of goods for reasons
other than by way of supply,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .25in; mso-add-space: auto;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">The
following details are required to be mentioned in the delivery challan:<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; mso-list: l6 level2 lfo3; text-align: justify; text-indent: 0in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif";">date
and number of the delivery challan,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(ii)
name, address and GSTIN of the consigner, if registered,<o:p></o:p></span></div>
<div class="MsoListParagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; mso-add-space: auto; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(iii)
name, address and GSTIN or UIN of the consignee, if registered,<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(iv)
HSN code and description of goods,<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(v)
quantity (provisional, where the exact quantity being supplied is not known),<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(vi)
taxable value,<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(vii)
tax rate and tax amount – central tax, State tax, integrated tax, Union
territory tax or cess, where the transportation is for supply to the consignee,<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(viii)
place of supply, in case of inter-State movement, and<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="background: white; line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 0in; margin-top: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif";">(ix)
signature.</span></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-80346862295966417282017-06-05T07:58:00.001-07:002017-06-05T07:58:41.779-07:00GST : An Introduction<div dir="ltr" style="text-align: left;" trbidi="on">
<div align="center" class="MsoNormal" style="text-align: center;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJxkHSfhMEt-8ayEaQg1W-6DyklHgsMbPcOukQ0F4DSe-8N2SEwbFRTRFnFpeFGGLeZxtcvqxBaynGebu6WcAbCKW4BfpiW8pYfYTGo2y86ZNLyN2tjT-fjwR2kTUaDs9Umkj3-LeJJUTM/s1600/images.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" data-original-height="172" data-original-width="293" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJxkHSfhMEt-8ayEaQg1W-6DyklHgsMbPcOukQ0F4DSe-8N2SEwbFRTRFnFpeFGGLeZxtcvqxBaynGebu6WcAbCKW4BfpiW8pYfYTGo2y86ZNLyN2tjT-fjwR2kTUaDs9Umkj3-LeJJUTM/s1600/images.jpg" /></span></a></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 16.0pt; line-height: 115%;">GST:
An Introduction:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt; line-height: 115%;">Basics:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">Now
a day, there is only one topic which is talk of the town and that is Goods and
Services Tax.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">The
move towards the Goods and Services Tax (Herein after referred to as the GST)
is regarded as the historic achievement in the history of taxation since
independence. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">The GST
is in the nature of Indirect tax i.e. the burden of the same will be bear by
the ultimate consumer. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">And
this is the reason why there have been many representations from various
stakeholders and government wants to have consensus with regards to the rates
of the various goods and services.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><u><span style="font-size: 14.0pt; line-height: 115%;">Following tax laws to be
replaced:</span></u></b><span style="font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">The
GST has replaced following indirect tax laws from the Indian taxation system:<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 1)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Central
Excise Duty<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 2)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Service
Tax<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 3)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Additional
Customs Duty<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 4)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Value
Added Tax<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 5)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Central
Sales Tax<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 6)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Entertainment
Tax<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 7)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Entry
Tax<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 8)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Purchase
Tax<o:p></o:p></span></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="font-size: 12.0pt; line-height: 115%;"> 9)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; line-height: 115%;">Octroi
etc. <o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">In
nutshell, the GST will replace all the taxes levied on the goods and services
by the Central and State Govt. However, the tax to be levied by the local
bodies will continue to exist. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><b><u><span style="font-size: 14.0pt; line-height: 115%;">History:</span></u></b><span style="font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">To
understand any historic move and the historic achievement, it is very essential
to understand the history of the same. It is not a sudden move but has long history
of more fifteen years in itself. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">First time introduction:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">In the year around 2000, former Prime Minister
Shri A.B.Vajpayee understands the glitches in the current taxation structure
and hence started the<span class="apple-converted-space"> </span>discussion<span class="apple-converted-space"> </span>on the Goods and Service Tax (GST) for
the first time in Indian history. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">He set up a committee which was headed by Asim
Dasgupta (Former Finance Minister, Government of Bengal). The committee was
given a task of designing and establishing the GST model which suits the Indian
federal structure well. It was also given a task<span class="apple-converted-space"> </span>for<span class="apple-converted-space"> </span>designing
the back end system for the effective implementation of the GST rollout.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">Second Phase:<o:p></o:p></span></u></b></div>
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<b><u><span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">During the phase of 2000 to 2005, Indian
indirect tax structure was also witnessing a historic change in the name of
VAT. VAT in India was introduced at the centre level first. VAT was first
introduced in 1986 for few commodities which were then called MODVAT which was
later on extended to other commodities and stages and hence renamed as CENVAT
w.e.f 1.04.2000.<o:p></o:p></span></div>
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<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">After implementation of VAT a central level,
Government of India was keen to introduce VAT at the state level.<span class="apple-converted-space"> </span><strong><span style="font-weight: normal;">The implementation of VAT somehow</span></strong><span class="apple-converted-space"><b> </b></span><strong><span style="font-weight: normal;">overshadows</span></strong><span class="apple-converted-space"><b> </b></span><strong><span style="font-weight: normal;">the
discussion on GST</span></strong>. Somewhere in between, the Kelkar task force
in the year 2003 suggested a comprehensive GST based on VAT principle. It
pointed out that there is no doubt that India has a steady momentum regarding
reforms and taxation;<span class="apple-converted-space"> </span>however,
there is a need of a new comprehensive GST which shall be based on VAT
principles. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">The idea for introduction of VAT was also very
novel. The Govt. had prepared a model law for VAT and insisted the same to be
uniformly passed by the State Assemblies without much modification. However,
with the passage of time, various State Assemblies have amended various
provisions and the now the position is that all the states have different law
and its provisions for VAT. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">Then
there was general election in India and Mr. Vajpayee was campaigning under the
theme of ‘Shining India’. However, the India selected the then opposition party
and the Congress came into power. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<b><u><span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">Introduction in Budget Speech:<o:p></o:p></span></u></b></div>
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<b><u><span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">Then the Finance Minister P.Chidambaram in his
budget speech for the Year 2006-07 talked about the GST and he said,<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">“It is my sense that there is a large consensus
that the country should move towards<span class="apple-converted-space"> </span><em>national level Goods and Services Tax
(GST) that should be shared between the Centre and the States. I propose that
we set April 1, 2010, as the date for introducing GST. The World over, goods
and services attract the same rate of tax. That is the foundation of a
GST. People must get used to the idea of a GST. Hence, we must progressively
converge the service tax rate and the CENVAT rate.”<o:p></o:p></em></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><em><br /></em></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><em><span style="background: white; color: #333333; font-size: 12.0pt; font-style: normal; line-height: 115%;">So,
it was that the first year where serious discussions were carried out. </span></em><span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%;">The responsibility of preparing a design and
roadmap for the seamless implementation of GST was assigned to Empowered
Committee of State Finance Minister.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">The empowered committee of State Finance
Minister releases their first discussion paper on November 10, 2009.<span class="apple-converted-space"> <o:p></o:p></span></span></div>
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<span style="background: white; color: #333333; font-size: 12.0pt; line-height: 115%;"><span class="apple-converted-space" style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">Deferred for One year:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: 12.0pt; line-height: 115%;">It
was the year 2010 which had been arrived but GST was ready to be moved out. The
then Finance Minister and the current President of India Mr. Pranab Mukharjee
in his budget speech of the year 2010-11 states that, <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><em><span style="color: #333333; font-family: "Arial","sans-serif";">“On
Goods and Services Tax, we have been focusing on generating a wide consensus on
its design. In</span></em><span class="apple-converted-space"><i><span style="color: #333333; font-family: "Arial","sans-serif";"> </span></i></span><span style="color: #333333; font-family: "Arial","sans-serif";">November<span class="apple-converted-space"> </span><em>2009
the Empowered Committee of the State Finance Ministers placed the first
discussion paper on GST in the public domain. The Thirteenth Finance Commission
has also made some significant recommendations relating to GST, which will
contribute to the ongoing discussions.</em><o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><em><span style="color: #333333; font-family: "Arial","sans-serif";">We
are actively engaged with the Empowered Committee to finalise the structure of
GST as well as the modalities of its expeditious implementation. It will be my
earnest endeavour to introduce GST along with the DTC in</span></em><span class="apple-converted-space"><i><span style="color: #333333; font-family: "Arial","sans-serif";"> </span></i></span><span style="color: #333333; font-family: "Arial","sans-serif";">April<span class="apple-converted-space"> </span><em>2011.”<o:p></o:p></em></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Introduction in the Lok
Sabha:<o:p></o:p></span></u></b></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">On
22<sup>nd </sup>March<span class="apple-converted-space"> </span>2011, the
115<sup>th</sup><span class="apple-converted-space"> </span>Constitutional
Bill was the<span class="apple-converted-space"> </span>first<span class="apple-converted-space"> </span>timetabled<span class="apple-converted-space"> </span>in<span class="apple-converted-space"> </span>Lok
Sabha.<span class="apple-converted-space"> </span>The government<span class="apple-converted-space"> </span>was keen to introduce and pass the
Constitution Amendment Bill,<span class="apple-converted-space"> </span>however,
due to lack of political consensus; the bill was referred to standing committee
on 29<sup>th</sup><span class="apple-converted-space"> </span>March 2011.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">After
two years of waiting, the standing committee gives his report on 7 August 2013.
It was the last year of the government and the bill if not passed, and then it
shall lapse on the<span class="apple-converted-space"> </span>dissolution<span class="apple-converted-space"> </span>of Lok Sabha.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">As
expected, the 115<sup>th</sup><span class="apple-converted-space"> </span>Constitutional
amendment bill lapsed with the dissolution of Lok Sabha by the<span class="apple-converted-space"> </span>honourable<span class="apple-converted-space"> </span>President Pranab Mukherjee.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">122<sup>nd</sup></span></u></strong><span class="apple-converted-space"><b><u><span style="color: #333333; font-family: "Arial","sans-serif";"> </span></u></b></span><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">Constitutional amendment bill, 2014</span></u></strong><u><span style="color: #333333; font-family: "Arial","sans-serif";"><o:p></o:p></span></u></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">With
the new government in charge, the 122<sup>nd</sup><span class="apple-converted-space"> </span>Constitutional amendment bill was
tabled in Lok Sabha on 19<sup>th</sup>December<span class="apple-converted-space"> </span>2014.<span class="apple-converted-space"> </span>Since<span class="apple-converted-space"> </span>the new government has the required
number in the Lok Sabha, it was expected that GST bill would be cleared in Lok
Sabha. The major problem for the current government is to get the required
number in Rajya Sabha.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">As
expected, 122<sup>nd</sup><span class="apple-converted-space"> </span>Constitutional
amendment bill, 2014 was passed by Lok Sabha on 6<sup>th</sup><span class="apple-converted-space"> </span>May<span class="apple-converted-space"> </span>2016.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">Bill tabled in Rajya Sabha</span></u></strong><u><span style="color: #333333; font-family: "Arial","sans-serif";"><o:p></o:p></span></u></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">It
was not an easy job for the government to get the bill cleared from the Rajya
Sabha. There were political differences between the government and the
opposition mainly with the Congress party.<span class="apple-converted-space"> </span>Many
times, Rajya Sabha was adjourned due to the<span class="apple-converted-space"> </span>unhealthy<span class="apple-converted-space"> </span>argument between the Members of
Parliament. Lack of majority in Rajya Sabha was the major roadblock for the
government.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">Bill Passed by Rajya Sabha</span></u></strong><u><span style="color: #333333; font-family: "Arial","sans-serif";"><o:p></o:p></span></u></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Even
after so many hurdles, the 122<sup>nd</sup><span class="apple-converted-space"> </span>Constitutional
Amendment bill was passed unanimously by the Rajya Sabha on 3<sup>rd</sup>August<span class="apple-converted-space"> </span>2016 subject to some changes.<span class="apple-converted-space"> </span>The amendment<span class="apple-converted-space"> </span>made in the bill passed y Rajya Sabha
was passed by Lok Sabha on August<span class="apple-converted-space"> </span>8<sup>th</sup>,
2016.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">Ratification by State government</span></u></strong><u><span style="color: #333333; font-family: "Arial","sans-serif";"><o:p></o:p></span></u></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">For
the amendment to become effective, the constitutional bill must be ratified by
at least 50% of the states (i.e. by at least 16 states out of 31 state
assemblies) within 30 days. Since, bill was passed by unanimous consent of all
the parties; this condition was not so tough.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Within
23 days, 16 states ratified the GST bill. Assam was the first state to ratify
the GST bill. After getting the requisite number, the GST bill was ready for
the presidential nod.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">President approves 122<sup>nd</sup></span></u></strong><span class="apple-converted-space"><b><u><span style="color: #333333; font-family: "Arial","sans-serif";"> </span></u></b></span><strong><u><span style="color: #333333; font-family: "Arial","sans-serif";">Constitutional Amendment Bill, 2014.</span></u></strong><u><span style="color: #333333; font-family: "Arial","sans-serif";"><o:p></o:p></span></u></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">On
8<sup>th</sup><span class="apple-converted-space"> </span>September 2016
history writes itself when President gave his nod to the GST bill. GST bill is
now the law of the land.<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Now, we have following
laws with respect to GST:<o:p></o:p></span></u></b></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">1)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">Central Goods and Services Tax Act, 2017<o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">2)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">Integrated Goods and Services Tax Act, 2017<o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">3)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">Union Territory Goods and Services Tax Act,
2017<o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">4)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">Goods and Services Tax (Compensation to
States) Act, 2017<o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l1 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">5)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">State Goods and Services Tax Act, 2017.<o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt;">How the
states have consented for the GST:<o:p></o:p></span></u></b></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">GST
is the consumption based tax. So, there will be loss to the states which are
the manufacturing state. Therefore, the basic reason for the reluctance by the
various states is loss of revenue to them. The stages have experienced the same
at the time of introduction of CST also. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Therefore,
the Union Govt. has formed a special act for the same Goods and Services Tax
(Compensation to States) Act, 2017 and given the assurance for the compensation.
(Of course, the compensation will be recovered by levying the compensation
cess).<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt;">Whether
GST is simple or complex?<o:p></o:p></span></u></b></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">This
is the real dicey issue. What I can say for this – GST is the simple in a very
complex manner. It is briefly explained in following manner:<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">For
the intra state supply, there will be CGST and SGST. For intra state supply,
there will be IGST. Now just assume a situation where you have charged CGST and
SGST but the department took a view that IGST will be levied, then what? You
have already paid the CGST and SGST and now you will again be required to pay
IGST. And yes the earlier CGST and SGST will be not refunded if your recipient
of goods or services has availed the credit for the same. (Of course, one will
avail except in a situation where he is not eligible). <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">GST
is levied on supply of goods and services. So, the <u>‘supply’</u> will be the
issue which will bear most litigation. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Under
the existing VAT law, if registered person purchases goods from unregistered
person then he is required to pay tax on reverse charge basis and the credit
will be available for the same except to some reduction. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">However,
under the GST regime, there will not be credit for tax paid on reverse charge
basis for purchase from unregistered persons. This will majorly affect the MSME
sectors. The same issue has also been raised by Mr. Kapil Sibbal, MP of Rajya
Sabha during the discussion at Rajya Sabha. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">The
compliance level expected by the Govt. from the taxpayers is at the highest
level till date. The Govt. has expected the taxpayers to upload the details of
outward supply within 10 days from the end of the month for which details are
to be filed, 11<sup>th</sup> to 15<sup>th</sup> date for verification of
purchases, 16<sup>th</sup> and 17<sup>th</sup> date for rectification and 20<sup>th</sup>
date for payment of tax and payment. So, the taxpayers are required to maintain
books in real time system. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">The
Govt. will even give rating based on compliance and based on that rating,
refund etc. provisions will be applicable. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">There
will be also black list which will be displayed at the govt. portal mentioned
the taxpayers who are not much compliant. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">The
businesses cannot be carried out now in the traditional manner. The govt. wants
the digitalization of the business and the simple rule they are expecting:
Either this way or no way. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">There
is also provision for separate registration for each state from where the
supply of goods / services / both are being carried out. So, unlike centralized
registration for service tax, there will be separate registrations for each
state. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">The
GST is also aiming as ‘One Nation, One Tax’ but…..<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">So,
a business man needs to change the way of its doing the business from the root.
<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">It
is like </span></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizEOqmWl9oOkQUpoO6Hs5x3DqqaYqYsNPgFW1hq_t7oYCugcXPXv9GRp7T-RK0A32lwuHwg3pVuQz5ekptW9jYiRv6i4cVanpsMnuBnEUJW6QvYpXNeK76mrCtmZHmOzTprXhuLFS9zHOz/s1600/DBSUgkkU0AAqSb4.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: Arial, Helvetica, sans-serif;"><img border="0" data-original-height="598" data-original-width="720" height="265" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizEOqmWl9oOkQUpoO6Hs5x3DqqaYqYsNPgFW1hq_t7oYCugcXPXv9GRp7T-RK0A32lwuHwg3pVuQz5ekptW9jYiRv6i4cVanpsMnuBnEUJW6QvYpXNeK76mrCtmZHmOzTprXhuLFS9zHOz/s320/DBSUgkkU0AAqSb4.jpg" width="320" /></span></a></div>
<span style="font-family: Arial, Helvetica, sans-serif;"><o:p></o:p><br /></span>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt;"> Appointed date of GST:<o:p></o:p></span></u></b></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Appointed
date is the date from which the GST will be applicable in the country. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">The
Govt. has expected the roll our date as the 01<sup>st</sup> of July, 2017.
However, it seems very difficult to meet the deadline even though agreed by the
states in the GST Council Meeting held on 03<sup>rd</sup> June, 2017 with
following reasons:<o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">1)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">All the existing taxpayers under the VAT,
Service Tax, Central Excise have not been migrated to GST yet. Therefore, the
Govt. has again enabled the procedure for migration from 01<sup>st</sup> of
June, 2017 onwards. <o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">2)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">The next meeting of GST Council is on 11<sup>th</sup>
June, 2017 to finish the unfinished matters. There are also hundreds of things
in all the acts where the matter will be decided by the GST Council and yet now
decided.<o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">So,
when the Govt. itself is not ready, how can it expect the entire country to be
ready for the same? <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">3)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">The council in a meeting held on 18<sup>th</sup>
and 18<sup>th</sup> May, 2017 decided the rates of taxes for almost all the
goods and services. However, still there are various representations being made
to the govt. for the rates from various industries. <o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">4)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">It is to be noted that Mr. Hasmukh Adia,
Revenue Secretary, has informed that the Govt. will in force the anti
profiteering measures so that the there will not be any profiteering measures
be carried out by the taxpayers with the tax rates under GST regime compared to
old regime. However, they are notified yet. <o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">5)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">The Govt. has not yet educated the people
about the GST in a way people expected the Govt. to educate them. <o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; mso-list: l0 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: Arial, Helvetica, sans-serif;"><span style="color: #333333; font-family: "Arial","sans-serif"; mso-fareast-font-family: Arial;">6)<span style="font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="color: #333333; font-family: "Arial","sans-serif";">Mr. Subramaniam Swamy, nominated member of
Rajya Sabha raised the issue regarding the shareholding pattern of GSTN (GSTN
refers to Goods & Services Tax Network which will be the I T body for
storing GST data and all other I.T. process). He said that the GSTN is majorly
owned by private banks and the shareholding of private banks is with the
foreign owners. So, the data for the entire country cannot be shared with
foreigners. It should be retained by the Govt. itself. This will affect the
national security of our country. This is what said by him. <o:p></o:p></span></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">He
said that before implementing GST, if the GSTN structure is not revised then he
will move PIL to the Hon’ble Supreme Court of India. So, that task is also
pending. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: .5in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">The
interesting point here is that the same issue is raised by Mr. Kapil Sibbal
during the Rajya Sabha debate but the thing he forget is that the GSTN was
constituted during their government only. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Mr.
Hasmukh Adia, revenue secretary has repeatedly said that the roll out will be
from July 01, 2017 only. However, the
above points create little confusion for this date. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">Yes,
it is to be noted that it will definitely be rolled from September 01, 2017 as
the validity of the constitutional amendment will end in the month of September
and if it’s ended then again to have consensus from all the parties will be a
very difficult task for the BJP led NDA Govt. <o:p></o:p></span></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #333333; font-family: Arial, Helvetica, sans-serif; font-size: 14.0pt;">Conclusion:<o:p></o:p></span></u></b></div>
<div style="background: white; line-height: 21.0pt; margin-bottom: 15.0pt; margin-left: 0in; margin-right: 0in; margin-top: 15.0pt; text-align: justify; text-justify: inter-ideograph;">
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">So,
whatever will be date of implementation, we should be ready for this.</span><br />
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;"><br /></span>
<span style="color: #333333; font-family: Arial, Helvetica, sans-serif;">As
now majority of the things have been finalized, so now we will update you on
the various topics based on the prescribed law in simple and understandable
manner and we will provide the advisory services with regards to transitional
provisions and other normal provisions for implementation of GST into your
system. </span></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-52517370710628954682017-05-22T09:07:00.001-07:002017-05-22T09:07:31.247-07:00The Real Estate (Regulation And Development) Act, 2016<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj21CVF3r4GzBe0alXflCjVdIqETLGwRCD50RDnqTMQm1nJTaMil8LYPhffjejt5c57LnUdRDcFJkd3-x-DEhB9sUNp_yX9Vhobho8zokfzw1-klz6YhQxGeK9gu7K4pSQurhh5k1qzaUrf/s1600/images.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj21CVF3r4GzBe0alXflCjVdIqETLGwRCD50RDnqTMQm1nJTaMil8LYPhffjejt5c57LnUdRDcFJkd3-x-DEhB9sUNp_yX9Vhobho8zokfzw1-klz6YhQxGeK9gu7K4pSQurhh5k1qzaUrf/s1600/images.jpg" /></a></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #31849b; font-family: "Goudy Stout","serif"; font-size: 15.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-themecolor: accent5; mso-themeshade: 191;">The real estate
(regulation and development) act, 2016<o:p></o:p></span></u></b></div>
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<b><u><span style="color: #31849b; font-family: "Goudy Stout","serif"; font-size: 15.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: major-bidi; mso-themecolor: accent5; mso-themeshade: 191;"><br /></span></u></b></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 15.0pt; line-height: 115%;">History:<o:p></o:p></span></u></b></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 15.0pt; line-height: 115%;"><br /></span></u></b></div>
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<span class="MsoHyperlink"><span style="background: white; color: windowtext; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 115%;">In the year 2009 i.e. in the UPA II Regime, first time
there was a need felt for the regulation in the real estate industry.</span></span>
</div>
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<span class="MsoHyperlink"><span style="background: white; color: windowtext; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 115%;"><br /></span></span></div>
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<span style="background: white; color: #222222; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">It was at the<span class="apple-converted-space"> </span><strong>National Conference of Housing Ministers of
States and Union Territories</strong><span class="apple-converted-space"> </span>in
January 2009, that a proposal for a law for real estate was first debated and
discussed.<o:p></o:p></span></div>
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<span style="background: white; color: #222222; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; color: #222222; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 115%;">Real Estate Regulatory Authority (RERA) Bill
was in the year 2013. In December 2015, the </span><span style="background: white; color: windowtext; font-family: Verdana, sans-serif; font-size: 10pt; line-height: 115%;">Union Cabinet of India</span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"> had approved 20 major amendments to the bill based on
the recommendations of a <span style="color: windowtext;">Rajya Sabha</span> committee
that examined the bill. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The Bill had been then referred to a select committee, which
had given its report in July 2015. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Then the bill got approval first from the Rajya Sabha on 10 March 2016 and
then by the Lok Sabha on 15 March 2016 and the bill has received the assent of
the President on the 25 March, 2016 and hence became an act called as the THE
REAL ESTATE (REGULATION AND DEVELOPMENT) ACT, 2016 (Herein after referred to as
‘the act’).<o:p></o:p></span></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 15.0pt; line-height: 115%;">Is it a State Matter or a Central Matter:</span></u></b><b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p></o:p></span></u></b></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 15.0pt; line-height: 115%;"><br /></span></u></b></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">On 1 May, 2016, 59 sections out of 92 were notified and the
remaining sections were notified from 1 May, 2017. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The states are required to draft and notify the relevant
rules applicable for their state by 01 May, 2017. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Therefore, it is like that the Central Govt. has enacted the
act and the necessary rules will be notified by the respective State Govt. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">So, there might be variation with respect to the provisions
of the rules in each state, however, the same needs to be consistent with the
act passed by the Union Govt., else the same will be held as ultra virus. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Also, many State Governments have their own law with respect
to the real estate matters. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Now, the question that emerges is that with respect to the
matters as mentioned above, whether the bill holds the Constitutional validity
or not? Let’s understand this issue in detailed manner as below:<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Entry 18 of List II of the Seventh Schedule of the
Constitution of India gives the states the right to legislate over inter alia,
land, rights in or over land and colonization.<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The RERA however, has been enacted by the Centre by the power
vested in it by virtue of Entries 6 and 7 in List III (Concurrent List) of the
Seventh Schedule of the Constitution dealing with contracts and the transfer of
property. Both Central government and state governments can legislate on
matters under the concurrent list, and Article 254 of the Constitution
specifically provides that central laws will prevail over state laws on matter
in the concurrent list. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Accordingly, RERA has an over-riding effect on conflicting
state laws. Interestingly, the RERA also repeals the Maharashtra Housing
(Regulation and Development) Act (MHRDA) as defined below, despite the MHRDA
having received Presidential assent instead of the assent of the Governor. The
same has been specifically mentioned vide Section 92 of The Real Estate
(Regulation and Development) Act, 2016.<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Article 254 (2) of the Constitution mentions that state laws
under the concurrent list which have received Presidential assent shall prevail
in the state; however, the proviso to this Article gives plenary powers to the
Centre to amend, vary or repeal the particular state law.<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 15.0pt; line-height: 115%;">Analysis of the Provisions of the Law:</span></u></b><b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p></o:p></span></u></b></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 15.0pt; line-height: 115%;"><br /></span></u></b></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">After analyzing the basics and the constitutional validity of
the law, now let us understand the provisions of the law in detail. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The Act is applicable to the whole of India except the State
of Jammu and Kashmir. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The provisions of the law are discussed here mainly with
respect to the Rules notified by the Govt. of Gujarat called as ‘the rules’. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The act was introduced keeping in mind the following two
matters:<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l5 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">To
promote the real estate sector<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l5 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">To
protect the interest of the consumers.<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The analysis is segregated into two parts viz. First the
Promoter of Real estate project and second is the real estate agent. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div align="center" class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l8 level1 lfo9; text-align: center; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Forte; mso-fareast-font-family: Forte;">(I)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><span dir="LTR"></span><b><u><span style="background: white; color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%;">REAL ESTATE PROMOTER:<o:p></o:p></span></u></b></div>
<div align="center" class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l8 level1 lfo9; text-align: center; text-indent: -.5in;">
<b><u><span style="background: white; color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%;"><br /></span></u></b></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Transitional Provisions:<o:p></o:p></span></u></b></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Proviso to sub section 1 of section 3 of the act specified
that the projects that are ongoing on the date of commencement of this act and
for which the completion certificate has not been issued, the promoter shall
make an application to the authority for registration of the said project
within a period of three months from the date of commencement of the act.<o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Registration:</span></u></b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p></o:p></span></u></div>
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<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Section 3 of the Act provides that no promoter shall
advertise, market, book, sell or offer for sale or invite persons to purchase
in any manner any plot, apartment or building in any real estate project
without registering the real estate project with the competent authority. <o:p></o:p></span></div>
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<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Therefore, all the malpractices in the promotion or marketing
of the real estate scheme are now prohibited as the promotion cannot be done
unless registration has been obtained and in registration, complete set of
details are required to be produced. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The definition of the promoter as defined in Section 2(zk) of
the act is very vide and covers almost everything. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Exemption from registration:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Sub section 2 of section 3 of the act specifies following
situations where no registration of real estate project shall be required if
any of the following condition is satified:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l3 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Area
of land <u><</u> 500 Sq. Meters, <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l3 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">No.
of Apartments <u><</u> 8 Apartments,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l3 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
project has been given the completion certificate,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l3 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">There
is renovation, redevelopment or repair where it does not involve any marketing
or new allotments. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Procedure for registration:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The application for registration shall be in writing as per
Form ‘A’ which shall be submitted in triplicate containing the information and
the documents as specified. (The
application will be submitted online after the application procedure is made
web based)<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Along the application for registration, following fees is
required to be paid:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; margin-left: 5.4pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 49.5pt;" valign="top" width="66">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<b><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Sr.
No. <o:p></o:p></span></b></div>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 193.5pt;" valign="top" width="258">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<b><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Particulars<o:p></o:p></span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 225.0pt;" valign="top" width="300">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<b><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Fees<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 49.5pt;" valign="top" width="66">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">1.
<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 193.5pt;" valign="top" width="258">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">For
Group Housing Project <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l6 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Area of Land <u><</u> 1000 Sq. Mtr.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l6 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Area of Land > 1000 Sq. Mtr<u>.</u><o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 225.0pt;" valign="top" width="300">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Rs.
5 per Sq. Mtr<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background-color: white; font-family: Verdana, sans-serif; font-size: 10pt;">Rs.
10 per Sq. Mtr</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Max.
Rs. 5 Lacs.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 49.5pt;" valign="top" width="66">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">2.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 193.5pt;" valign="top" width="258">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">For
Mixed Development (Residential and Commercial)<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l6 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Area of Land <u><</u> 1000 Sq. Mtr.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l6 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Area of Land > 1000 Sq. Mtr<u>.</u><o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 225.0pt;" valign="top" width="300">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Rs.
10 per Sq. Mtr<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background-color: white; font-family: Verdana, sans-serif; font-size: 10pt;">Rs.
15 per Sq. Mtr</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Max.
Rs. 7 Lacs.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 49.5pt;" valign="top" width="66">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">3.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 193.5pt;" valign="top" width="258">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">For
Commercial projects<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l6 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Area of Land <u><</u> 1000 Sq. Mtr.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l6 level1 lfo3; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Area of Land > 1000 Sq. Mtr<u>.</u><o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 225.0pt;" valign="top" width="300">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Rs.
20 per Sq. Mtr<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background-color: white; font-family: Verdana, sans-serif; font-size: 10pt;">Rs.
25 per Sq. Mtr</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Max.
Rs. 10 Lacs.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 49.5pt;" valign="top" width="66">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">4.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 193.5pt;" valign="top" width="258">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">For
Plotted Development Projects<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 225.0pt;" valign="top" width="300">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Rs.
5 per Sq. Mtr.<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Max.
Rs. 2 Lacs.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Along with application, a declaration is to be given as per
Form B. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">If the promoter withdraws the application before the expiry
of the period of 30 days, then registration fee to the extent of 10% paid as
above or Rs. 50,000/- whichever is higher, will be retained by the Govt. as the
processing fee. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The registration certificate will be granted in Form C. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The rejection of the application will be informed to the
application in Form D. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The application for extension of registration is required to
be submitted in Form E. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The grant of extension of registration shall be in Form F. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">If everything is found in order on receipt of the application,
the authority shall within a period of thirty days pass an order either
granting the registration or rejecting the registration. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">If the registration is being granted then a registration
number along with the Login Id and password will be provided. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">If no action is taken within a period of thirty days, then
there will be deemed registration. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">After obtaining the registration, the task is not over. The
real task is yet to start. This is so as Section 11(1) of the act mandates the
promoter to quarterly update the various details in the website. So that will
be a real tough task. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Revocation of Registration:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The authority can revoke the registration <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l4 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Either
on receipt of a complaint or<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l4 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Suo
moto<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l4 level1 lfo4; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">After being satisfied that<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo5; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
promoter makes default in complying with the provisions of the act and rules. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo5; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
promoter violates terms and conditions of the approval given by the competent
authority<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo5; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
promoter is involved in any kind of unfair practice or irregularities. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Of course, the principle of natural justice is to be followed
before revocation of registration. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Consequences of revocation of registration:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l7 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Promoter
will be debarred from accessing its website in relation to that project<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l7 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">His
name will be in the list of defaulters with his photograph<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l7 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
matter will be informed to other Real Estate Regulatory Authority in other
states and in other Union Territories. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l7 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
authority will facilitate the remaining development work. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l7 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The
authority will freeze the bank account. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l7 level1 lfo6; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Separate bank account and withdrawal from the same:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">As per Section 4(2)(d) of the act, promoter is required to
open a separate bank account in a scheduled bank to cover the cost of
construction and cost of land. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">In the separate bank account, seventy per cent (70%) of the
amounts realized for the real estate project from the allottees, from time to
time shall be deposited.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">It also provides for withdrawal of amount from the separate
bank account to cover the cost of the project only in proportion to the
percentage of completion of the project. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The withdrawal is permitted only after obtaining a
certificate from an engineer, an architect and a chartered accountant in
practice that the withdrawal is in proportion to the percentage of the project.
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">This is the real crux of the entire act. Earlier, what was
happening was that the promoter starts the project, collecting the money and
investing the same to the other project. Money of other project is then
invested in another project, so forth and so on. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">So, the interest of the real purchaser was not protected and
in case there is failure in any scheme of the promoter, it will affect other
schemes also. That’s why the Govt. has brought this provision in the law. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">How much advance can be obtained from purchasers?<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The condition prevalent till now was that the promoters are
obtaining advance money from the customers without any ceiling limit. Sometimes
only 5-10% money would be pending and still there were no agreement for sale
has been entered into by the parties. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">However, under the new regime Section 13 of the act has
specified that the promoter shall not accept a sum of more than 10% of the cost
of apartment, plot or a building as an advance payment from a person without
entering into a written agreement for sale and register the said agreement for sale.
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">So, now the another question is that till now the agreement
to sale was effected in two ways viz. notarized agreement to sale and second
one is the registered agreement to sale. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">So, in a strict interpretation of the Section 13 of the act,
now every agreement to sale is required to be registered only. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Rule 9 of the said rules has also provided that the agreement
for sale shall be in the form as prescribed by the authority. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">There may be variation to the terms as agreed by the promoter
and the allottee by the variation should not violate the provisions of the act
or the rules and regulations framed thereunder. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Change in the sanctioned plans and project
specification: <o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Till now, there was no proper regulation in case of change in
the sanctioned plans and project specification by the promoter and the process
for going to the court of law is very costly and the time consuming. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">However, Section 14 of the Act has mandated that the project
shall be developed and completed in accordance with the sanctioned plans,
layout plans and specifications. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">And in case of any additions or alterations in that except
the minor additions or alternations, the consent of the at least two-thirds of
the allottees, other than promoter is required to be obtained. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Also, in the explanation, it has been very specifically
mentioned that the allottee, irrespective of number of apartments, flats, plots
books by him in the name of family, will be treated as one allottee only. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The explanation inserted in the said section is very interesting
because it counts the allottee as the person per family disregarding the fact
of number of apartments owned by him. So, voting power will be per person and
not per allotment. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Transfer of the real estate project to a third party: <o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Many a times, it was happening like that the project is
introduced by one promoter and subsequently it is being transferred to another
promoter and the purchasers have no knowledge of the same. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">However, now that practice is not valid. Promoter is required
to obtain written consent of at least two third allottees, except the promoter
and also the prior written approval of the authority before transferring the
real estate project to a third party. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Promoter fails to complete or is unable to give possession of
an apartment, plot or building:</span></u></b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The situation till today was that the promoter will give
deadline for completion of the project or for giving of the possession. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Looking to the circumstances, he may change the deadline as
many times as he want to do the same without any kind of any approval from any
authority from the allottees. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">After enactment of this act, this is not possible. Now, if a
promoter fails to complete or is unable to give possession of an apartment,
plot or building then, <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">He
is liable on demand to the allottees, in case the allotee wishes to withdraw
from the project, return the amount received by him along with interest and
compensation or<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;"> b)</span><span style="line-height: 115%;"><span style="font-size: xx-small;"> </span></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">If
the allottee doesn’t intend to withdraw from the project, he shall be paid,
interest every month of delay till handing over of the possession. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo7; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">Rate of interest for default:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The rate of interest shall be the contractual rate of
interest as may be mutually agreed to between the promoter and the allottee. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The rate of interest chargeable from the allottee by the
promoter, in case of default by the allottee, shall be equal to the rate of
interest which the promoter shall be liable to pay to the allottee, in case of
default by the promoter. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Where no contractual rate is mutually agreed then the rate
will be MCLR of SBI + 2%.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;">PENALTIES:</span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The penalties prescribed under the law are very stringent.
The quantum of the penalty is summarized as below for various types of default:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; margin-left: 5.4pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: .75in;" valign="top" width="72">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<b><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Sr.
No <o:p></o:p></span></b></div>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 259.8pt;" valign="top" width="346">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<b><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Nature
of Default<o:p></o:p></span></b></div>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<b><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Quantum
of penalty<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: .75in;" valign="top" width="72">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">1.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 259.8pt;" valign="top" width="346">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Non
registration as defined u/s 3 of the act. <o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Up
to 10% of the estimated cost. <o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: .75in;" valign="top" width="72">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">2.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 259.8pt;" valign="top" width="346">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Contravention
of Section 4 i.e. details to be submitted at the time of registration<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Up
to 5% of the estimated cost.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: .75in;" valign="top" width="72">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">3.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 259.8pt;" valign="top" width="346">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Contravention
of other provisions of the act except Section 3 and 4<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 159.6pt;" valign="top" width="213">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt;">Up
to 5% of the estimated cost.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div align="center" class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l8 level1 lfo9; text-align: center; text-indent: -.5in;">
<b><span style="color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Forte; mso-fareast-font-family: Forte;"><br /></span></b></div>
<div align="center" class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l8 level1 lfo9; text-align: center; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Forte; mso-fareast-font-family: Forte;">(II)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><span dir="LTR"></span><b><u><span style="background: white; color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%;">REAL ESTATE AGENTS:<o:p></o:p></span></u></b></div>
<div align="center" class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l8 level1 lfo9; text-align: center; text-indent: -.5in;">
<b><u><span style="background: white; color: #c00000; font-family: Forte; font-size: 13.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Like the real estate promoters, real estate agents are also
required to get themselves registered with the authority. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Under section 9 of the Act, it was prescribed that no real
estate agent shall facilitate the sale or purchase or act on behalf of any
person to facilitate the sale or purchase of any plot, apartment or building,
being the real estate project registered u/s 3 of the act, without obtaining
the registration. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Therefore, now the agents dealing in real estate projects
which are registered u/s 3 of the act are required to get themselves registered
with the authority. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Now, the above was for the purpose of dealing in real estate
projects which are registered u/s 3 of the act. But suppose, the real estate
project is liable for registration with the authority but the promoter does not
get it registered then a registered real estate agent can involve himself into
dealing with that project. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">This is because section 9 of the act deals with only the real
estate projects registered u/s 3 of the act. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The answer to the above question is in negative. Because
section 10 of the act specifies that no real estate agent shall facilitate the
sale, purchase of any plot, apartment or building unless it is being registered
with the authority.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Registration fees:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo8; text-align: justify; text-indent: -.5in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Rs.
10,000/- in case the applicant is an individual,<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo8; text-align: justify; text-indent: -.5in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: Verdana; mso-fareast-font-family: Verdana;">ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span dir="LTR"></span><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Rs.
50,000/- in case the applicant is other than an individual. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l1 level1 lfo8; text-align: justify; text-indent: -.5in; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The application for registration is to be made in writing to
the Regulatory Authority in Form G, in triplicate (until the application
procedure is made online).<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The certificate will be issued as per Form H to the real
estate agent. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The rejection of the application will be informed as per Form
I. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">Validity of the registration:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">The registration granted shall be valid for a period of five
years. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="background: white; font-family: "Verdana","sans-serif"; font-size: 10.0pt; line-height: 115%;">At the time of granting of registration, a real estate will
be provided his registration number and that registration number is required to
be mentioned in every sale deal executed by him. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-57851255652473623012017-02-01T10:02:00.001-08:002017-02-01T10:02:26.948-08:00Analysis of Union Budget 2017<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
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<br />
<span style="font-family: Arial, sans-serif; font-size: 10pt; text-align: justify;">It is our immense pleasure to present the
wide analysis of the Finance Bill 2017 (Union Budget 2017) on the very same day
of the Budget Speech.</span><br />
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This budget is historic one in the Indian
Parliamentary history because of the following two reasons:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<ol start="1" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l12 level1 lfo12; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">For the first
time, the General budget was presented on the 1<sup>st</sup> day of
February instead of the 28<sup>th</sup> / 29<sup>th</sup> day of February.
<o:p></o:p></span></li>
</ol>
<ol start="2" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l12 level1 lfo12; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is also for
the first time where the Railway Budget has been merged with the General
budget and there is no separate railway budget. <o:p></o:p></span></li>
</ol>
<div class="MsoListParagraph">
<span style="font-family: Arial, sans-serif; font-size: 10pt; text-align: justify;">The demonetization scheme of the Govt. has
been regarded a mixed success scheme and not truly an effectively implemented
scheme. During the 50 days of demonetization, common people have suffered a lot
and so there was much expectation by the common man from the General Budget.</span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Below, we have tried to analyze the various
provisions of the Union Budget 2017. The analysis of Union Budget 2017 unfolds
into following categories:<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<ol start="1" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Provisions for
Non Corporate assesses</span> </li>
</ol>
<ol start="2" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Corporate Taxation
provisions</span> </li>
</ol>
<ol start="3" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">TDS Provisions</span> </li>
</ol>
<ol start="4" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Provisions
related Income from Capital Gain</span> </li>
</ol>
<ol start="5" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Provisions
related to Income from House Property</span> </li>
</ol>
<ol start="6" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Provisions
related to Income from other sources</span> </li>
</ol>
<ol start="7" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Start Up
Incentives</span> </li>
</ol>
<ol start="8" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Promotion of
Digital Economy</span> </li>
</ol>
<ol start="9" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Transparency in Electoral
Funding</span> </li>
</ol>
<ol start="10" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Presumptive
taxation</span> </li>
</ol>
<ol start="11" style="margin-top: 0in;" type="1">
<li class="MsoNormal" style="mso-list: l11 level1 lfo13; text-align: justify;"><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Assessment
related provisions etc</span> </li>
</ol>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:FOR NON CORPORATE ASSESSES:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Change in the Income
Tax rate for individuals:<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">There is reduction in the rate of income tax
for every individual, HUF, AOP, BOI and every artificial judicial person from
10% to 5% in case the income is not exceeding Rs. 5,00,000/-. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This is considered as big step for middle
class of the country after the demonetization scheme. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The Hon’ble Prime Minister has announced the
demonetization scheme. However the scheme was so not effective as expected by
the Govt. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Because of the demonetization scheme, the
common people of the country has suffered a lot and as there was not much
success of the scheme, so there is need to give incentives to them which is in
latin referred to as quid pro quo. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Also, it was admitted the Hon’ble Finance
Minister that in the income category up to Rs. 2.50 Lacs, major assesses are
the salaried persons and they are honest in paying the tax. So, there is need
to reward the honest tax payers and therefore, he has reduced the tax rate to
5% from an existing 10% in case income is not exceeding Rs. 5 Lacs. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This
is the only change in the income tax rate and which is in the welcoming nature.
Other rates of income tax are same. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rebate allowable
under Section 87A</span></u></i><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
existing provisions of section 87A provide for a rebate up to Rs. 5000 from the
income-tax payable to a resident individual if this total income does not
exceed Rs. 5,00,000.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">As
there is proposed rationalization of tax rates for individuals in the income
slab of Rs. 2,50,000 to Rs.5,00,000, it is proposed to amend section 87A so as
to reduce the maximum amount of rebate available under this section from
existing Rs. 5000 to Rs. 2500. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is also proposed to provide that this rebate shall be available to only
resident individuals whose total income does not exceed Rs. 3,50,000.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore,
there will not be any rebate available to the individuals whose income exceeds
Rs. 3.50 Lacs as earlier it was Rs. 5.00 Lacs.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalisation of
deduction under section 80CCD for self-employed individual</span></u></i><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
existing provisions of section 80CCD provide that employee or other individuals
shall be allowed a deduction for amount deposited in National Pension System
trusts (NPS). The deduction under section 80CCD (1) cannot exceed 10% of salary
in case of an employee or 10% of gross total income in case of other
individuals. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However,
under the provisions of section 80CCD (2) of the Act, further deduction to an
employee in respect of contribution made by his employer is allowed up to 10%
of salary of the employee. Thus, in case of an employee, the deduction allowed
under section 80CCD adds up to 20% of salary whereas in case of other
individuals, the total deduction under section 80CCD is limited to 10% of gross
total income.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In
order to provide parity between an individual who is an employee and an
individual who is self-employed, it is proposed to amend section 80CCD so as to
increase the upper limit of ten per cent of gross total income to twenty per
cent in case of individual other than employee.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Surcharge:</span></u></i><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">As
the rate of income has been lowered from 10% to 5% in case of specified income,
there is loss to the revenue appr. of Rs. 12000 Cr. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">So,
to compensate the said loss, the Hon’ble Finance Minister has introduced the
surcharge at the rate of 10% of such income-tax in case of a person having a
total income exceeding 50 Lacs rupees but not exceeding 1 Crore rupees.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:CORPORATE TAXATION:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Change in tax rate:</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
rate of taxation for the companies in India is very high as compared to other
Asian countries. There is need to provide the competitive tax rates to the
companies in India. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore,
in case of domestic company, the rate of income-tax shall be 25% of the total
income if the total turnover or gross receipts of the previous year 2015-16
does not exceed Rs. 50 Cr and in all other cases the rate of Income-tax shall
be thirty per cent.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">With
the reference to the analysis of the Govt., Hon’ble Finance Minister informed
the parliament that out of total companies registered, almost 96-97 percentage
of the companies are falling in the above criteria and are MSME. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">MSME
enterprises contribute huge value to the India’s GDP. So, there is need to
provide the incentives for the MSME enterprises. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Also
there is need to provide the incentive to the unorganized sector to the formal
sector of the economy and this reduction in tax rate will provide the incentive
to them. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalization for
provisions of MAT credit<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 115JAA contains provisions regarding
carrying forward and set off of tax credit in respect of Minimum Alternate Tax
(MAT) paid by companies under section 115JB. Currently, the tax credit can be
carried forward up to tenth assessment years.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to extend the same to
fifteenth assessment year. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:TDS PROVISIONS:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<i><u><span style="font-family: "Arial","sans-serif";">TDS on Rent (194 I / 194 IB)</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Under
the present provisions of Section 194 I of the Income Tax Act, 1961, an
Individual or HUF</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;"> </span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">who is liable for tax audit under section 44AB
for any financial year immediately preceding the financial year is liable for
deduction of tax on the rent paid by him exceeding the specified limit. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore,
Section 194I of the act is applicable for the individuals and HUF if they are
liable for Audit u/s 44AB of the Act during the previous financial year. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
Hon’ble Finance Minister proposed to extent the scope of TDS on rent.
Therefore, he has introduced Section 194 IB of the Act, the summarized
provisions of which are as below:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Applicable
to Individual and HUF other than covered u/s 44AB<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Rent
paid is more than Rs. 50,000/- for the month or part of the month. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">TDS
to be deducted @5%,<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">d)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is required to be deducted from the rent amount of the last month of the
previous year or last month of the tenancy. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">e)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is one time deduction only. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">f)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">No
need to obtain TAN.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l9 level1 lfo1; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">g)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
TDS amount should not exceed the rent amount of the last month of the previous
year or last month of the tenancy.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This
amendment will take effect from 1<sup>st</sup> June, 2017.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<i><u><span style="font-family: "Arial","sans-serif";">Enabling of Filing of Form 15G/15H for
commission payments specified under section 194D<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">U/s 194D of the Act, TDS @5% is required to be
deducted for payments in the nature of insurance commission beyond a threshold
limit of Rs. 15,000 per financial year.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">It is proposed that a person can file Form 15G/15H
if his income is below the exemption limit and thereby no TDS is required to be
deducted. <b><u> </u></b></span><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<i><u><span style="font-family: "Arial","sans-serif";">Simplification of TDS u/s 194J for a
person engaged only in the business of operation of call center</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">.<o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In
order to promote ease of doing business, it is proposed to amend section 194J
to reduce the rate of deduction of tax at source to two per cent from ten per
cent. in case of payments received or credited to a payee, being a person
engaged only in the business of operation of call center<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Interest
on refund due to deductor<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is proposed to provide that where refund of any amount becomes due to the
deductor, such person shall be entitled to receive, in addition to the refund,
simple interest on such refund, calculated at the rate of one-half per cent.
for every month or part of a month comprised in the period, from the date on
which claim for refund is made in the prescribed form or in case of an order
passed in appeal, from the date on which the tax is paid, to the date on which
refund is granted.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Disallowance
for non-deduction of tax from payment to resident<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 58 describes the amounts which are
not deductible in computing the income under the head "Income from other
sources". <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However, it doesn’t include the disallowance on
account of non deduction of TDS from payment to resident. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 40(a)(ia) of the act provides for
disallowance on account of non deduction of TDS for computing income under the
head Profits and Gains from Business and Profession. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore,
it is proposed to amend the said section so as to provide that provisions of
section 40(a)(ia) shall, so far as they may be, apply in computing income
chargeable under the head "income from other sources" as they apply
in computing income chargeable under the head "Profit and gains of
business or Profession”.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Definition
of 'person responsible for paying' in case of payments covered under
sub-section (6) of section 195</span></u></i><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In
order to bring clarity to the meaning of 'person responsible for paying' in
case of payment by a resident to a non-resident in accordance with section
195(6) of the Act, it is proposed to amend the said section of the Act to
provide that in the case of furnishing of information relating to payment to a
non-resident, not being a company, or to a foreign company, of any sum, whether
or not chargeable under the provisions of this Act, 'person responsible for
paying' shall be the payer himself, or, if the payer is a company, the company
itself including the principal officer thereof.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:CAPITAL
GAIN PROVISIONS:-</span></u></b><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Reduction
of period for long term gain in case of land, building or both:</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Due
to demonetization, real estate is one of the sector which has suffered a lot.
Therefore, there is a need to provide incentive to boost the real estate
industry. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">With
a view to promote the real-estate sector and to make it more attractive for
investment, it is proposed to amend section 2 (42A) of the Act so as to reduce
the period of holding from the existing 36 months to 24 months in case of
immovable property, being land or building or both, to qualify as long term
capital asset.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalisation
of Provisions of Section 80-IBA to promote Affordable Housing</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">During
the last year, Hon’ble Finance Minister has introduced Section 80 IBA of the
act to provide 100% deduction in respect of the profits and gains derived from
developing and building certain housing projects subject to specified
conditions. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">There
is change in the terms and conditions of the section which are as below:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l6 level1 lfo2; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
size of residential unit shall be measured by taking into account the
"carpet area" as defined in Real Estate (Regulation and Development)
Act, 2016 and not the "built-up area".<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l6 level1 lfo2; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
restriction of 30 square meters on the size of residential units shall not
apply to the place located within a distance of 25 kms from the municipal
limits of the Chennai, Delhi, Kolkata or Mumbai.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l6 level1 lfo2; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(iii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
condition of period of completion of project for claiming deduction under this
section shall be increased from existing three years to five years.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Computation
of capital gains in case of joint development agreement</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Under
the existing provisions of section 45, capital gain is chargeable to tax in the
year in which transfer takes place except in certain cases.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">With
a view to minimise the genuine hardship which the owner of land may face in
paying capital gains tax in the year of transfer, it is proposed to insert a
new sub-section (5A) in section 45 so as to provide that in case of an assessee
being individual or Hindu undivided family, who enters into a specified
agreement for development of a project, the capital gains shall be chargeable
to income-tax as income of the previous year in which the certificate of
completion for the whole or part of the project is issued by the competent
authority.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is further proposed to provide that the stamp duty value of his share, being
land or building or both, in the project on the date of issuing of said
certificate of completion as increased by any monetary consideration received,
if any, shall be deemed to be the full value of the consideration received or
accruing as a result of the transfer of the capital asset.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is also proposed to provide that benefit of this proposed regime shall not
apply to an assessee who transfers his share in the project to any other person
on or before the date of issue of said certificate of completion. It is also
proposed to provide that in such a situation, the capital gains as determined
under general provisions of the Act shall be deemed to be the income of the
previous year in which such transfer took place and shall be computed as per
provisions of the Act without taking into account this proposed provisions.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is also proposed to define the following expressions "competent
authority", "specified agrement" and "stamp duty
value" for this purpose.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is also proposed to make consequential amendment in section 49 so as to provide
that the cost of acquisition of the share in the project being land or building
or both, in the hands of the land owner shall be the amount which is deemed as
full value of consideration under the said proposed provision.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">These
amendments will take effect from 1<sup>st</sup> April, 2018 and will,
accordingly, apply in relation to the assessment year 2018-19 and subsequent
years.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is also proposed to insert a new section 194-IC in the Act so as to provide
that in case any monetary consideration is payable under the specified
agreement, tax at the rate of ten per cent shall be deductible from such
payment.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Shifting
base year from 1981 to 2001 for computation of capital gains</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">For an asset acquired before 01.04.1981, the
assessee has been allowed an option of either to take the fair market value of
the asset as on 01.04.1981 or the actual cost of the asset as cost of
acquisition. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">As the base year for computation of capital
gains has become more than three decades old, assessees are facing genuine
difficulties in computing the capital gains in respect of a capital asset,
especially immovable property acquired before 01.04.1981 due to
non-availability of relevant information for computation of fair market value
of such asset as on 01.04.1981.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, it is proposed to amend section 55
of the Act so as to provide that the cost of acquisition of an asset acquired
before 01.04.2001 shall be allowed to be taken as fair market value as on 1<sup>st</sup>
April, 2001<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Expanding
the scope of Section 54EC of the Act</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Currently, investment made in bond issued by
NHAI and REC is eligible for exemption. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to amend section 54EC so as to
provide that investment in any bond redeemable after three years which has been
notified by the Central Government in this behalf shall also be eligible for
exemption.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">No
capital gain on conversion of preference shares to equity shares</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to amend section 47 to provide
that the conversion of preference share of a company into its equity share
shall not be regarded as transfer<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Clarification
regarding the applicability of section 112</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 112(1)(c) to provide concessional
rate of taxation of ten per cent for long-term capital gains arising from the
transfer of unlisted securities in case of non-resident as inserted vide
Finance Act, 2013.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">There was an uncertainty as to whether the
provision of section 112(1)(c)(iii) is applicable to the transfer of share of a
private company or not. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Finance Act, 2016 amended section 112(1)(c)
to clarify that the share of company in which public are not substantially
interested shall also be chargeable to tax at the rate of ten per cent with
effect from 1st April, 2017.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">As the concessional rate was provided with
effect from 1<sup>st</sup> April, 2013, there was uncertainty about the
applicability of the amendment to the intervening period.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, it is hereby clarified that the
benefit will be available from retrospective period i.e. from 01.04.2013 onwards
and not from 01.04.2017.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Exemption
of long term capital gains tax u/s 10(38)<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">There is little amendment in the section. The
words ‘if the acquisition of share is chargeable to Securities Transactions
Tax’ have been inserted to prevent the abuse use of fake exemption. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:
PROVISIONS RELATED TO INCOME FROM HOUSE PROPERTY:-</span></u></b><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Notional
income from the house property</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"> <o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 23 of the Act provides for the manner
of determination of annual value of house property and it also considers the
notional income from the house property. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">As said earlier, there is need to provide
boost up to the real estate industry as after demonetization there is fall in
the real estate industry and the property remains unsold for the builder and
liable for the notional income. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to amend the said section so
as to provide that where the house property consisting of any building and land
appurtenant thereto is held as stock-in-trade and the property or any part of
the property is not let during the whole or any part of the previous year, the
annual value of such property or part of the property, for the period up to one
year from the end of the financial year in which the certificate of completion
of construction of the property is obtained from the competent authority, shall
be taken to be nil.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Restriction
on set-off of loss from House property</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 71 of the Act relates to set-off of
loss from one head against income from another.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to insert sub-section (3A) in
the said section to provide that set-off of loss under the head "Income
from house property" against any other head of income shall be restricted
to Rs. 2 Lacs for any assessment year. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However, the unabsorbed loss shall be allowed
to be carried forward for set-off in subsequent years in accordance with the
existing provisions of the Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:INCOME
FROM OTHER SOURCES:-</span></u></b><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Amendment
in Section 56(2)(vii)</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Present provisions of Section 56(2)(vii) of
the Act are applicable only to Individual and HUF and to Firm / Company for
certain cases. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, there is chance that other
assesses may take undue advantage of these provisions. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, it has been proposed to insert a
new clause (x) in sub-section (2) of section 56 so as to provide that receipt
of the sum of money or the property by any person without consideration or for
inadequate consideration in excess of Rs. 50,000 shall be chargeable to tax in
the hands of the recipient under the head "Income from other
sources".<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Taxation
of dividend income</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">During
the Budget Speech of 2016, Hon’ble Finance Minister has introduced Section
115BBDA</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;"> </span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">by way of taxing income from dividend in
excess of Rs. 10 lakh is chargeable to tax at the rate of 10% on gross basis.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However,
during the present budget speech, it is proposed to amend section 115BBDA so as
to provide that the provisions of said section shall be applicable to all
resident assessees except domestic company and certain funds, trusts,
institutions, etc.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This
amendment is applicable from A Y 18-19 onwards. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:START
UP INCENTIVE:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Set
off and carry forward of losses</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">During the initial period of Start Up
ventures, generally they are incurring losses. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">At the same time, they also raise the funds
from various investors as start ups are mainly dependent on the funding from
investors. The said funding is obtained against the issuance of equity stake in
the company. So there will be dilution in the equity of the existing
shareholders. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 79 of the Act, specified certain
terms and conditions regarding maintenance of shareholding to allow set off and
carry forward of losses. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">So, for the start up ventures, it is very
difficult to have the benefit of set off and carry forward of losses. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, in order to facilitate ease of
doing business and to promote start up India, it is proposed to amend section
79 of the Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It provides that where a change in shareholding
has taken place in an eligible start-up, loss shall be carried forward and set
off against the income of the previous year, if all the shareholders of such
company which held shares carrying voting power on the last day of the year or
years in which the loss was incurred, being the loss incurred during the period
of seven years beginning from the year in which such company is incorporated,
continue to hold those shares on the last day of such previous year.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Extending
the period for claiming deduction by start-ups</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 80 IAC of the act provides the
deduction of 100% profit to an eligible start up for three consecutive three
years out of five years. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to extent the period of five
years to seven years. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:MEASURES
TO PROMOTE DIGITAL ECONOMY:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Disallowance
of expenditure incurred in cash:</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Under the existing
provisions of the Act, revenue expenditure incurred in cash exceeding Rs.
20,000/- is not allowable as per sub-section (3) of section 40A of the Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However, there is no
provision to disallow the capital expenditure incurred in cash. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In order to
discourage cash transactions even for capital expenditure, it has been proposed
that such expenditure incurred in cash in excess of Rs. 10,000/- will be
ignored for the determination of the actual cost of the asset. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The same limit of
Rs.10,000/- is also fixed for revenue transactions from Rs. 20,000/-.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Digital
payments in case of small unorganized businesses:</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Under existing
provisions of Section 44AD of the Act, presumptive income scheme has been
specified @8%.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">To encourage cash
less transactions, it has been proposed that the rate of presumptive income
will be 6% instead of 8% in respect of the amount of such total turnover or
gross receipts received by an account payee cheque or account payee bank draft
or use of electronic clearing system through a bank account.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Restriction
on cash transactions</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In India, the quantum
of domestic black money is huge which adversely affects the revenue of the
Government creating a resource crunch for its various welfare programmes. Black
money is generally transacted in cash and large amount of unaccounted wealth is
stored and used in form of cash.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In order to achieve the
mission of the Government to move towards a less cash economy to reduce
generation and circulation of black money, it is proposed to insert section
269ST in the Act to provide that no person shall receive an amount of three
lakh rupees or more,—<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 1.0pt; margin-top: 0in; mso-list: l4 level1 lfo4; text-align: justify; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(a)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">in
aggregate from a person in a day;<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 1.0pt; margin-top: 0in; mso-list: l4 level1 lfo4; text-align: justify; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(b)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">in
respect of a single transaction; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 0in; margin-right: 1.0pt; margin-top: 0in; mso-list: l4 level1 lfo4; text-align: justify; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(c)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">in
respect of transactions relating to one event or occasion from a person,<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">otherwise than by an
account payee cheque or account payee bank draft or use of electronic clearing
system through a bank account.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is further
proposed to provide that the said restriction shall not apply to Government,
any banking company, post office savings bank or co-operative bank or other
notified persons.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Penalty is also
prescribed for non compliance for the same. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:TRANSPARENCY
IN ELECTORAL FUNDING:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify; text-indent: .25in;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Restricting
cash donations</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Present Govt. is
showing too much enthusiasm regarding the steps taken by them to curb the black
money. However, when it comes to political funding which is the core grey area
for black money generation, there is no major changes made by the Govt. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">There is also failure
or less success of the demonetization scheme. Therefore, there was also need to
rationalize or to say to bring transparency in the funding of the political
parties.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In order to provide
cash less economy and transparency, it is proposed to amend section 80G so as
to provide that no deduction shall be allowed under the section 80G in respect
of donation of any sum exceeding Rs. 2000 (from existing limit of Rs. 20000/-)
unless such sum is paid by any mode other than cash.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Limit
for cash donations</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">No donations of
Rs.2000/- or more is received otherwise than by an account payee cheque drawn
on a bank or an account payee bank draft or use of electronic clearing system
through a bank account or through electoral bonds.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .25in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:PRESUMPTIVE
TAXATION PROVISIONS:-</span></u></b><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Exclusion
of certain specified person from requirement of audit of accounts under section
44AB</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">It is proposed that specified persons, who declare income under
presumption scheme up to a turnover of Rs. 2 Cr, are not required to get their
books of accounts audited u/s 44AB of the Act. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalisation
of section 211 and section 234C relating to advance tax</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">For the persons covered under section 44AD is
liable to pay advance tax in a single instalment on or before the 15th of March
every financial year.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Under Finance Act, 2016, presumptive taxation
regime has been extended to professionals also u/s 44ADA. Therefore, advance tax provisions are also
made applicable to them as applicable for the persons covered u/s 44AD.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 115BBDA of
the Act provides taxability of the certain the dividend income. However, in
view of the uncertain nature of declaration and receipt of dividend incomes, an
assessee liable to pay advance tax may not be able to correctly determine such
liability.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is hence proposed
to provide that that if shortfall in payment of advance tax is on account of
under-estimation or failure in estimation of income of the nature referred to
in section 115BBDA, the interest under section 234C shall not be levied subject
to fulfilment of conditions specified therein. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This amendment is
applicable from A Y 17-18 onwards.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:PROVISIONS
RELATED TO ASSESSMENT:-<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Processing
of return within the prescribed time and enable withholding of refund in
certain cases</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Section 143(1D) of
the Act provides that the processing of a return shall not be necessary, where
a notice has been issued to the assessee under sub-section (2) of the said
section.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In order to address
the grievance of delay in issuance of refund in genuine cases which are
routinely selected for scrutiny assessment, it is proposed that provisions of
section 143(1D) shall cease to apply in respect of returns furnished for
assessment year 2017-18 and onwards.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However, in case of
doubtful cases of recovery of revenue, the A O may hold the refund for the
reasons to be recorded in writing and with the prior approval of Commissioner
or Principal Commissioner. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Amendments
to the structure of Authority for Advance Rulings</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">With a view to
promote ease of doing business, it has been decided by the Government to merge
the Authority for Advance Ruling (AAR) for income-tax, central excise, customs
duty and service tax. Accordingly, necessary amendments, have been made to
Chapter XIX-B to allow merger of these AARs.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Amendment
of Section 253</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to
expand the scope of the said section to provide that the orders passed by the
prescribed authority under sub-clauses (iv) and (v) of sub-section (23C) of section
10 shall also be appealable before the Appellate Tribunal.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalisation
of time limits for completion of assessment, reassessment and re-computation
and reducing the time for filing revised return</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">.</span></u><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The existing
provisions of section 153 specify time limit for completion of assessment,
reassessment and re-computation of cases mentioned therein. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The revised time
limits are as under:<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Sr. No. <o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Particulars<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Applicable Sections<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Revised time limit
for assessment <o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">1<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">A Y 18-19<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">143/144<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">18 months<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">2<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">A Y 19-20 onwards <o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">143/144<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">12 months<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">3<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">147<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">For the notices
issued after 01.04.2019 - 12 months<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">4<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">F Y 19-20 onwards<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">254/263/264<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">12 months<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">5<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">F Y 18-19<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">153A<o:p></o:p></span></div>
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<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">18 months<o:p></o:p></span></div>
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<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">6<o:p></o:p></span></div>
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<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.05pt;" valign="top" width="149">
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">F Y 19-20 onwards<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 97.25pt;" valign="top" width="130">
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">153A<o:p></o:p></span></div>
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<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 114.0pt;" valign="top" width="152">
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">12 months<o:p></o:p></span></div>
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</tbody></table>
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<br /></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to amend the provisions of
sub-section (5) of section 139 to provide that the time for furnishing of
revised return shall be available up to the end of the relevant assessment year
or before the completion of assessment, whichever is earlier.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Reason to believe to
conduct a search, etc. not to be disclosed</span></u></i><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></u></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to insert an Explanation to
sub-section (1) and to sub-section (1A) of section 132 and to sub-section (1)
of section 132A to declare that the 'reason to believe' or 'reason to suspect',
as the case may be, shall not be disclosed to any person or any authority or
the Appellate Tribunal.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This amendment is against the various
judicial pronouncements which lays down that the reason to believe should be
disclosed. <o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Also, this amendment has been made with
retrospective effect i.e. from 1<sup>st</sup> day of October, 1975. Therefore,
it may lead to serious consequence to existing cases which are in appeal on the
facts of disclosure of reason to believe. <o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalisation of
provisions of the Income Declaration Scheme, 2016 and consequential amendment
to section 153A and 153C<o:p></o:p></span></u></i></div>
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<br /></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">The
existing provisions of clause (c) of the section 197 of the Finance Act, 2016
provide that where any income has accrued, arisen or been received or any asset
has been acquired out of such income prior to commencement of the Income
Declaration Scheme, 2016 (the Scheme), and no declaration in respect of such
income is made under the Scheme, then, such income shall be deemed to have
accrued, arisen or received, as the case may be, in the year in which a notice
under sub-section (1) of section 142 or sub-section (2) of section 143 or
section 148 or section 153A or section 153C of the Income-tax Act is issued by
the Assessing Officer, and provisions of the said Act shall apply accordingly.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In
view of the various representations received from stakeholders citing genuine
hardships if the said provision is made applicable, it is proposed to omit
clause (c) of section 197 of the Finance Act, 2016.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">This
amendment will take effect retrospectively from l<sup>st</sup> June, 2016.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However,
in order to protect the interest of the revenue in cases where tangible
evidence(s) are found during a search or seizure operation (including 132A
cases) and the same is represented in the form of undisclosed investment in any
asset, it is proposed that section 153A relating to search assessments be
amended to provide that notice under the said section can be issued for an
assessment year or years beyond the sixth assessment year already provided upto
the tenth assessment year if—<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l5 level1 lfo10; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">the
Assessing Officer has in his possession books of accounts or other documents or
evidence which reveal that the income which has escaped assessment amounts to
or is likely to amount to fifty lakh rupees or more in one year or in aggregate
in the relevant four assessment years(falling beyond the sixth year);<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l2 level1 lfo11; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">such
income escaping assessment is represented in the form of asset;<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l2 level1 lfo11; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(iii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">the
income escaping assessment or part thereof relates to such year or years.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It
is however proposed that the amended provisions of section 153A shall apply where
search under section 132 is initiated or requisition under section 132A is made
on or after the 1<sup>st</sup> day of April, 2017.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is also proposed to consequentially amend
section 153C to provide a reference to the relevant assessment year or years as
referred to in section 153A. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:IMPORTANT PROVISIONS:-</span></u></b><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Restriction on
exemption in case of corpus donation by exempt entities to other exempt
entities</span></u></i><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Donation given by these exempt entities to
another exempt entity, with specific direction that it shall form part of
corpus, is though considered application of income in the hands of donor trust
but is not considered as income of the recipient trust. Trusts, thus, engage in
giving corpus donations without actual applications.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, it is proposed to insert a new
Explanation to section 11 of the Act to provide that any amount credited or
paid, out of income referred to in clause (a) or clause (b) of sub-section (1)
of section 11, being contributions with specific direction that they shall form
part of the corpus of the trust or institution, shall not be treated as
application of income.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is also proposed to insert a proviso in
clause (23C) of section 10 so as to provide similar restriction as above on the
entities exempt under sub-clauses (iv), (v), (vi) or (via) of said clause in
respect of any amount credited or paid out of their income.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Rationalisation of
provisions of Section 10AA<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is proposed to clarify that the amount of
deduction referred to in section 10AA shall be allowed from the total income of
the assessee computed in accordance with the provisions of the Act before
giving effect to the provisions of the section 10AA and the deduction under
section 10AA in no case shall exceed the said total income.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Scope of Section 92B
of the Income-Tax Act relating to Specified Domestic Transactions<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">The existing provisions of section 92BA of the Act, <i>inter-alia</i>
provide that any expenditure in respect of which payment has been made by the
assessee to certain "specified persons" under section 40A(2)(b) are
covered within the ambit of specified domestic transactions.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">As a matter of compliance and reporting, taxpayers need to obtain the
chartered accountant's certificate in Form 3CEB providing the details such as
list of related parties, nature and value of specified domestic transactions
(SDTs), method used to determine the arm's length price for SDTs, positions
taken with regard to certain transactions not considered as SDTs, etc. This has
considerably increased the compliance burden of the taxpayers.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">In order to reduce the compliance burden of taxpayers, it is proposed to
provide that expenditure in respect of which payment has been made by the
assessee to a person referred to in under section 40A(2)(b) are to be excluded
from the scope of section 92BA of the Act. Accordingly, it is also proposed to
make a consequential amendment in section 40(A)(2)(b) of the Act.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<i><u><span style="font-family: "Arial","sans-serif";">Income from transfer of Carbon Credits<o:p></o:p></span></u></i></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Carbon credits is an
incentive given to an industrial undertaking for reduction of the emission of
GHGs (Green House gases). <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Income-tax Department
has been treating the income on transfer of carbon credits as business income
which is subject to tax at the rate of 30%. However, divergent decisions have
been given by the courts on the issue as to whether the income received or
receivable on transfer of carbon credit is a revenue receipt or capital
receipt.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Therefore, it is
provided that such income shall be taxable at the concessional rate of 10%
(plus applicable surcharge and cess) on the gross amount of such income. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-right: 1.0pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">No expenditure or allowance in respect of
such income shall be allowed under the Act.<b><u><o:p></o:p></u></b></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">PROCEDURAL
CHANGES / AMENDMENT:</span></u></b><b><u><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Fee for delayed
filing of return<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">There are very few tax payers in the country.
Also out of the total income tax return fillers, many assesses are filing the
belated return i.e. return filed after the due date. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Existing provision of Section 271F of the act
prescribes that the income tax officer may levy the penalty of Rs. 5000/- for
late filing of return. However, there are very rare cases where the penalty has
been levied in small income tax returns. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">To avoid all these practices, it is proposed
to insert a new section 234F in the Act to provide that a fee for delay in
furnishing of return shall be levied for assessment year 2018-19 and onwards in
a case where the return is not filed within the due dates specified for filing
of return under sub-section (1) of section 139. The proposed fee structure is
as follows:—<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-list: l3 level1 lfo5; text-align: justify; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">a
fee of Rs. 5000/- shall be payable, if the return is furnished after the due
date but on or before the 31<sup>st</sup> day of December of the assessment
year;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-list: l3 level1 lfo5; text-align: justify; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">(ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">a
fee of Rs. 10000/- shall be payable in any other case.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">However, in a case where the total income
does not exceed Rs. 500000/-, it is proposed that the fee amount shall not
exceed Rs. 1000/-.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In view of above, it is proposed to make
consequential amendment in section 140A to include that in case of delay in
furnishing of return of income, along with the tax and interest payable, fee
for delay in furnishing of return of income shall also be payable.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It means that at the time of filing of
return, the system will automatically reflect the amount of penalty to be paid
along with the tax which was not there in the present case as the power to levy
the penalty is available with the jurisdictional assessing officer. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is also proposed to make consequential
amendment in sub-section (1) of section 143, to provide that in computation of
amount payable or refund due, as the case may be, on account of processing of
return under the said sub-section, the fee payable under section 234F shall
also be taken into account.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">It is therefore to be noted that, processing
u/s 143(1) of the act will be done after considering the late filing fees and
therefore, there will be liability to pay late fees or there will be less
refund if the return has been filed belatedly without paying the late fees. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Consequentially, it is also proposed that the
provisions of section 271F in respect of penalty for failure to furnish return
of income shall not apply in respect of assessment year 2018-19 and onwards.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Penalty on
professionals for furnishing incorrect information in statutory report or
certificate<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Under the Income Tax Act, 1961, the
legislature has put a thorough thrust on the Chartered Accountant, merchant
banker, registered valuer etc for certification of various reports and
documents. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In order to ensure that the person furnishing
report or certificate undertakes due diligence before making such
certification, it is proposed to insert a new section 271J so as to provide
that if an accountant or a merchant banker or a registered valuer, furnishes
incorrect information in a report or certificate under any provisions of the
Act or the rules made thereunder, the Assessing Officer or the Commissioner
(Appeals) may direct him to pay a sum of Rs. 10000/- for each such report or
certificate by way of penalty.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<i><u><span style="font-family: "Arial","sans-serif";">Strengthening of PAN
quoting<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">In
order to strengthen the PAN mechanism, it is proposed to insert new section
206CC to provide the following:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l1 level1 lfo6; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">I.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">any
person paying any sum or amount, on which tax is collectable at source under
Chapter XVII BB (hereafter referred to as collectee) shall furnish his
Permanent Account Number to the person responsible for collecting such tax
(hereafter referred to as collector), failing which tax shall be collected at
the twice the rate mentioned in the relevant section under Chapter XVII BB or
at the rate of five per cent. whichever is higher.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l8 level1 lfo7; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">II.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">that
the declaration filed under sub section (1A) of section 206C shall not be valid
unless the person filing the declaration furnishes his Permanent Account Number
in such declaration.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l0 level1 lfo8; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">III.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">that
in case any declaration becomes invalid under sub-section (2), the collector
shall collect the tax at source in accordance with the provisions of
sub-section (1).<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">IV. no certificate under sub section (9) of
section 206C shall be granted unless it contains the Permanent Account Number
of the applicant.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: 0in; mso-layout-grid-align: none; mso-list: l7 level1 lfo9; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">V.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">the
collector knows about the correct PAN of the collectee it is also proposed to
provide for mandatory quoting of PAN of the collectee by both the collector and
the collectee in all correspondence, bills and vouchers exchanged between them.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">VI. that the collectee shall furnish his
Permanent Account Number to the collector who shall indicate the same in all
its correspondence, bills, vouchers and other documents which are sent to
collectee.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">VII.
where the Permanent Account Number provided by the collectee is invalid or it
does not belong to the collectee, then it shall be deemed that Permanent
Account Number has not been furnished to the collector.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">VIII.
to exempt the non-resident who does not have permanent establishment in India
from the provisions of this proposed section 206CC of the Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 12.0pt;">-:OTHER
PROVISIONS:-</span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l10 level1 lfo3; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;">Extension
of eligible period of concessional tax rate on interest in case of External
Commercial Borrowing and Extension of benefit to Rupee Denominated Bonds<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; mso-list: l10 level1 lfo3; text-align: justify; text-autospace: none; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">Extension of eligible period of concessional tax rate under section 194LD<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; mso-list: l10 level1 lfo3; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-fareast-font-family: Arial;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">Clarity relating to Indirect transfer provisions</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 1.0pt; margin-top: 0in; text-align: justify;">
<br /></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">Modification in conditions of special taxation
regime for off shore funds under section 9A</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">Exemption of income of Foreign Company from sale of
leftover stock of crude oil from strategic reserves at the expiry of agreement
or arrangement</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold;">Rationalization of provisions of section 115JB in
line with Indian Accounting Standard (Ind-AS)</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"> Various clarifications have also been made by the Hon’ble Finance
Minister.<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">Extension of scope of
section 43D to Co-operative Banks</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
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provision for bad and doubtful debts<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">-<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">Non-deduction of tax in case of exempt
compensation under RFCTLAAR Act, 2013<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">Exemption from tax
collection at source under sub-section (1F) of section 206C in case of certain
specified buyers<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">Cost of acquisition in
Tax neutral demerger of a foreign company<o:p></o:p></span></div>
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</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial;">Extension of capital
gain exemption to Rupee Denominated Bonds</span><span style="font-family: "Arial","sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
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<br /></div>
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; mso-ansi-language: EN-US; mso-bidi-font-weight: bold; mso-bidi-language: AR-SA; mso-fareast-font-family: Arial; mso-fareast-language: EN-US;"> - Enabling claim of credit for foreign tax paid
in cases of dispute</span></div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-44024150239306204652016-11-19T23:26:00.001-08:002016-11-19T23:26:55.706-08:00Demonetization Scheme<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><u><span style="color: red; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">#DEMONETIZATION_SCHEME<o:p></o:p></span></u></b></div>
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<b><u><span style="color: red; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></u></b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYi_ok2tPC9S6PiWtTeWc_rSNZxhN2vwmBl-J8q9e1vS23qlNl7GgyDPqfg8XT0C9Z2QRyse5fof0reQAy6XmkV8-NZp_fPRrP-Q56G1RmLlZwbCy7xQ2wYgDankNfwVglw4F05l1I9Lzr/s1600/images.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYi_ok2tPC9S6PiWtTeWc_rSNZxhN2vwmBl-J8q9e1vS23qlNl7GgyDPqfg8XT0C9Z2QRyse5fof0reQAy6XmkV8-NZp_fPRrP-Q56G1RmLlZwbCy7xQ2wYgDankNfwVglw4F05l1I9Lzr/s1600/images.jpg" /></a></div>
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<b><u><span style="color: red; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></u></b></div>
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<b><u><span style="color: red; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></u></b></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">On 8<sup>th</sup>
of November, 2016 (herein after referred to as ‘specified date’) at
approximately 8pm, Hon’ble Prime Minister Mr. Narendra Modi has announced the
demonetization scheme (Herein after referred to as ‘the scheme’) for the high
denomination bank note of </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">` </span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">500
and </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"> 1000 i.e. withdrawal of legal tender of
the 500 and 1000 bank note (Herein after referred to as ‘Specified Bank
Notes’). <o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">We
are intentionally publishing this article after some days of the announcement of
the scheme because it would be pretty early to comment on the very next day
when the things were still not clear and it would be like ‘whistling in the
dark’. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
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<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;">Legality of this
demonetization scheme (withdrawal of legal tender for specified notes) –
Whether legal or not?:<o:p></o:p></span></u></b></div>
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<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Now,
the first and foremost question which arise to the mind of any common man is
that whether the Central Government (herein after referred to as C.G.) or the Reserve
Bank of India (Herein after referred to as ‘RBI’) has the powers for such
withdrawal of legal tender and if yes then from where it derives such power. <o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">The
answer to the question is definitely yes because such big move cannot be
carried out in an unauthorized way. So the next question is which law empowers
the C.G. / RBI for withdrawal of the legal tender. For that reference is made
to Section 26 of the Reserve Bank of India Act, 1934 (Herein after referred to
as the ‘said act’) which reads out as below:’<o:p></o:p></span></div>
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<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
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<i><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">Section 26 of the
Reserve Bank of India Act, 1934 which speaks about the Legal tender character
of notes</span></u></i><i><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">,<o:p></o:p></span></u></i></div>
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<i><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></u></i></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: Arial;">(1)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant-numeric: normal; line-height: normal;"> </span></span></i><!--[endif]--><i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Subject
to the provisions of sub-section (2), every bank note shall be legal tender at
any place in [India] in payment or on
account for the amount expressed therein, and shall be guaranteed by the [Central Government].<o:p></o:p></span></i></div>
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<br /></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: Arial;">(2)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant-numeric: normal; line-height: normal;"> </span></span></i><!--[endif]--><i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">On
recommendation of the Central Board the [Central Government] may, by
notification in the Gazette of India, declare that, with effect from such date
as may be specified in the notification, any series of bank notes of any
denomination shall cease to be legal tender [save at such office or agency of
the Bank and to such extent as may be specified in the notification].<o:p></o:p></span></i></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></i></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Therefore,
it can be said that Section 26(1) of the said act gives the legality of the
bank notes but the legality is limited to sub section 2 which empowers the CG
to declare any series of bank notes of any denomination as not having legal
tender. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Of
course the CG has power to withdraw it with immediate effect, there is also no
ban on it nor the law put responsibility on CG to provide specific time period
notice before its implementation. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">The next question is
whether the CG has power to specify few places where the ceased specified notes
will be valid?<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Answer
to the above question is again definitely in affirmative only. Sub Section 2 of
Section 26 of the said act prescribes the phrase ‘<i>save at such office or
agency of the Bank and to such extent as may be specified in the notification’ </i>at
the end of the section. So, the withdrawal of legal tender will not have any
impact at such office or agency of the bank and to the extent specified by the
CG. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">So,
the CG is very well empowered for this demonetization scheme i.e. to say
withdrawal of legal tender of the specified notes. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;">Objectives of the
demonetization scheme:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">The
objectives of the scheme are as below as stated by the C.G.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: Arial;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">To counterfeit fake currency</span></u><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">:</span></u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"> <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Apprx. 84-86% of our county’s currency is in </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"> 500 and </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">
1000 denomination. So, it is very easy to mix the fake currency with the legal
tender and the cost of making the fake currency in high denomination will be
low as compared to making of fake currency of smaller denominations. The CG has
directed to exchange / deposit the specified notes into the bank/post accounts
only. The banks have very well effective system to check the fake currency and
if the same is found, it will be cancelled immediately.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">So, it will achieve the objective of counterfeiting the
fake currency. However, after a reasonable period of time when the new currency
will be sufficiently available in the market, RBI needs to check and update the
security measures from time to time else it will not take much time for the
devils to print the fake currency using the technology or to mix with the legal
tender. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: Arial;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">To stop terror funding</span></u><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; font-size: 13pt;"><br /></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; font-size: 13pt;">With immediate withdrawal of specified notes, it has
specifically achieved this objective and that can be analyzed from the present
situation of Jammu & Kashmir where peace is there today as compared to
immediate earlier days.</span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; font-size: 13pt;"><br /></span></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-fareast-font-family: Arial;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">To stop black money</span></u><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">:<o:p></o:p></span></u></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">When the CG has mandated to deposit the specified notes
in the bank/post account only, so the quantum of depositing the same is
required to be verified from the books of accounts. And the cash which is not
reflecting in the books of accounts (except the accumulated saving out of taxed
income) will be treated as black money and therefore, it will be difficult to
deposit the same into the bank. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">And thereby it will stop the black money circulation into
the market. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-align: justify; text-indent: -.25in; text-justify: inter-ideograph;">
<!--[if !supportLists]--><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-fareast-font-family: Arial; mso-themecolor: accent3; mso-themeshade: 128;">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">To curb corruption<o:p></o:p></span></u></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">The Govt., spokespersons are informing this as one of the
objective, however the rationale behind the same is not known. Even in the
scope of scheme, RBI has specified only first three objectives and not the
fourth one. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;">How much to deposit in
the bank:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">Up to </span></u><u><span style="color: #4f6228; font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">`</span></u><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;"> 2.50 Lacs household savings<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;">Dr. Hasmukh Adhia, Revenue Secretary, Ministry of
Finance has informed that we will not take the data of the deposits made up to </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;"> 2.50 Lacs from the Banks. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;">The rationale of keeping the limit of </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;"> 2.50 Lacs is very simple that there is basic
exemption limit under the Income Tax Act, 1961 up to income of </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;"> 2.50 Lacs. So, ministry has considered this limit
for counting the household savings also. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;">And it will be very difficult for the Income Tax
Department to serve notices to all the persons who has deposited the specified
notes during the specified period with the possible answer that this is the
current year income or it is from accumulated savings. So, there was a need
from the Govt. side that a particular limit is being fixed because they do not
have enough staff to serve the notice and hear the case of the entire country. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">Above </span></u><u><span style="color: #4f6228; font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">` </span></u><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold; mso-themecolor: accent3; mso-themeshade: 128;">2.50 Lacs housing savings</span></u><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;">:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-weight: bold;">There can be savings above this threshold limit but
the same is required to be justified. </span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br />Up to </span></u><u><span style="color: #4f6228; font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-themecolor: accent3; mso-themeshade: 128;">` </span></u><u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">2.50
Lacs in a businessman’s account<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">As
per my view, the limit of </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">
2.50 Lacs is kept for household savings only (be it man or woman). It is not
like you can deposit your undisclosed cash up to </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">` </span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">2.50 Lacs to your bank account and there will be no
inquiry or no tax. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Therefore,
one has to verify that it represents the household savings or income. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">Can there be income
tax notice for cash deposit of specified notes:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Central
Board of Direct Taxes (CBDT) has amended Rule 114B of the Income Tax Rules,
1962 directing the banks to submit AIR (Annual Information Report) for deposit
of cash by a person above the threshold limit specified in it during the
specified period. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">So,
high cash deposits during the specified period will be on radar of the Govt.
and there might be inquiry for the cases where the cash deposit is unusual
compared to previous comparable period. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Also,
the RBI has directed banks to give the status of dormant / inactive accounts
from much time and certainly being activated during the specified period. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></i></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">And
I have also a doubt that the Income Tax officers may not ask for the
justification of even </span></i><i><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span></i><i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">
2.50 cash deposited in the specified notes at the time of assessment, if any
except for those who do not have any income and it is only accumulated
household savings</span></i><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">How much specified
notes can be deposited?<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">There
is no bar prescribed by the Govt. or the RBI for depositing the quantum of
specified notes. Even, they have no power to prescribe any limit for depositing
the specified notes. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">One
has to complete the books of accounts till 8<sup>th</sup> November, 2016
midnight and verify the cash balance reflecting in the books of accounts. That
cash balance can be deposited in the bank, be it be </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">` </span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">2.50 Lacs or </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">` </span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">25 Lacs. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">Form how much times
cash can be deposited?<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Mr.
Arjun Ram Meghwal, Union Minister of State for Finance and Corporate Affairs,
Govt. of India has specified on twitter that there is no restriction on number
of times a person can deposit specified notes in the bank. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">However,
one has to take care that suppose a person has deposited </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"> 5 Lacs in bank and again depositing </span><span style="font-family: "Rupee Foradian","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">`</span><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"> 10 Lacs after 10-20 days, then he might
be required to prove the source of the second time deposit of specified notes
because the specified notes become invalid from the specified date. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Even
a person cannot collect his outstanding dues in the specified notes after
midnight of specified date. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Therefore,
one has to take care for that. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">What if a person wants
to deposit his unaccounted cash?<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">A
person can deposit his unaccounted cash by paying legitimate tax along with
interest on it and declare that income in his return of income. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">However,
after that Income Tax, Sales Tax, Service Tax, Central Excise etc authorities
might be there behind him. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">The
best thing in that is that the bureaucrats etc. cannot declare a single peny
over and above their income else along with above authorities, anti corruption
team will be behind them. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">This
is the only reason why Income Disclosure Scheme (IDS) was advantageous as
compared to disclosing right now. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">Depositing specified
notes in the accounts of other family members / children etc</span></u><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">.<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">As
already specified above, the threshold limit is for depositing your savings and
not for depositing the unaccounted income. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Therefore,
only savings / earnings of children etc. can be deposited in bank account. A
person cannot divert his unaccounted income into others’ bank account. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;"><br /></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u><span style="color: #4f6228; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent3; mso-themeshade: 128;">What will be best
things to do during this period:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">To
my view, the best thing to be done is to maintain your routine way of business
only. Don’t rush for unusual cash deposits or adjustment of cash balance of
other persons. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">For
that just keep your books of accounts updated till 8<sup>th</sup> November,
2016 and ask your professional for the advice of how much cash can be
deposited. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Just
keep in mind that <i><u>“The Benami Transactions (Prohibition) Amendment Bill,
2016”</u></i> is already been passed and become <i><u>effective from 1<sup>st</sup>
Day of November, 2016.</u></i> So before doing any adjustment, just take in
mind that the Govt. is one step ahead from you. <b><o:p></o:p></b></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;">Status of Public
Interest Litigations (PIL) filed in the court of law</span></u></b><u><span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">:<o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Against
the demonetization scheme, several PILs have been filed in various courts of
law including the Hon’ble Supreme Court. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">A
PIL has been filed in the Madras High Court, Bombay High Court, Karnataka High
Court etc, the status of which is as below:</span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;">- Hon’ble Madras High Court dismissed the PIL on
the ground it cannot interfere in policies related to monetary system and
stating that the action of the government is fit for the country's security and
development. </span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;">- Similarly Hon’ble Karnataka High Court has
also dismissed the PIL.</span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;">- Hon’ble Bombay High Court has also dismissed
the PIL stating that the PIL for the same matter is pending in the apex court. </span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;">- A PIL has also been filed in the Hon’ble
Gujarat Court for extension of date of validity for exchanging the specified
notes. </span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-indent: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 13pt; text-indent: -0.25in;">- The PIL filed in the Hon’ble Supreme Court
has been admitted by it.</span></div>
<div class="MsoListParagraphCxSpLast">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">On
behalf of CG, Attorney General of India has already filed a caveat in the
Hon’ble Supreme Court that it should be heard before passing any order.
Therefore, there cannot be immediate stay on the demonetization scheme. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">As
per my view, the apex court will not direct for abolition of demonetization
scheme because such scheme is within the powers of the Govt. as mentioned above
and the judiciary will not interfere into the powers vested with the Govt.
regarding the monetary or the fiscal policy.
<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">Of
course, the judiciary will take a note from the Center that no much hardship is
being faced by the common public. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;">Briefs of the Effects
of the scheme in the economy:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">In
the short term, there will be decline in the growth of economy, the business
will be slow down, people will have less money to spent due to exchange and
withdrawal limit, there will be fall in the FMCG sector etc. Real estate,
jewellary, liquor industry in major will have high fall in their business. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">If
the scheme turns to be a successful then there will be boom in the economy in
the long run. Due to cash crunch in the market, real estate sector prices will
come down. There will be huge surplus in the banks and therefore, the lending
rates for home loans will come down and the demand for real estate sector will
increase. There will also be decrease in the commercial loans so the business
people can afford loans at lower rate and thereby they can grow. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="color: #943634; font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%; mso-themecolor: accent2; mso-themeshade: 191;">A first step towards
cashless economy !!<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">There
has been a limit kept on cash withdrawal from the bank account. At present they
might have kept the limit due to non availability of adequate new notes. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">However,
it seems that Govt. may continue to keep the threshold limit for cash
withdrawal (of course, subject to periodically review) after demonization
scheme also. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">It
seems that Govt. may keep the threshold limit and other measures will also be
taken like restriction on cash transactions above a threshold limit as can be
analyzed by the speech of Hon’ble PM after returning from Japan. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">In
case, the Govt. fails to keep the threshold limit for cash withdrawal then none
of the objective as specified above will be achieved in the long run. It will
have only short term durability. The above four objectives can be achieved
fully in cash less economy only. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 13.0pt; line-height: 115%;">So,
let’s move our economy towards a cashless economy …..<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;">Disclaimer:
This article should not be construed as any legal opinion. <o:p></o:p></span></div>
<br />
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-16207619061344718062016-04-14T10:13:00.000-07:002016-04-14T10:13:39.095-07:00Central Excise Applicability on Jewellary Business<div dir="ltr" style="text-align: left;" trbidi="on">
<div align="center" class="MsoNormal" style="text-align: center;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 115%;">-:CENTRAL EXCISE ON JEWELLARY:-<o:p></o:p></span></u></b></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="separator" style="clear: both; text-align: center;">
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<b><u><span style="color: #c00000; font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 115%;"><br /></span></u></b></div>
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</v:imagedata></v:shape></span></u></b><b><u><span style="font-family: "Arial","sans-serif"; font-size: 14.0pt; line-height: 115%;"><o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">In
the year 2005, the Union Govt. has introduced the Central Excise Duty @ 2% on
branded Jewellery. However, there was mere collection of Rs. 16 Crores only
till 2008 and therefore in the year 2009, it was withdrawn. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Again
in the Union Budget 2011, the duty was re-introduced @1% on branded precious metal
jewellary. With effect from 17.03.2012, it was further extended to all branded
and unbranded jewellary. However, due to lots of agitation across the county,
the same has been withdrawn. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Again
Union Budget 2016-17 has proposed to levy Central Excise duty @ 1% on all the
Jewellery articles except silver Jewellery not studded with studded with
diamonds, ruby, emerald or sapphire.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">This
has led to widespread protests and strikes taking place in the entire country
on account of the facts that procedures are cumbersome and it may not be
possible to be judiciously followed by this largely un-organised sector.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Another
reason might be the fact this is the industry which is working on a huge parallel
in cash. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Various
associations have made several representations to the Government regarding
levying Excise Duty on Jewellery. In response to this, the Finance Minister has
issued various press releases and circulars for ease of doing business
specifically with respect to Excise Duty on Jewellery dated 04<sup>th</sup>
March 2016, 18<sup>th</sup> March 2016 and 21<sup>st</sup> March 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Also
a high level committee under the chairmanship of Dr. Ashok Lahiri has also been
formed to look into the nitty gritty of Excise on Jewellery.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="background: white; color: #333333; font-family: "Arial","sans-serif"; font-size: 12.0pt;">Indian jewellers have been on an indefinite
strike since the beginning of March 2016 protesting against the Budget proposal
to levy 1 per cent excise duty on non-silver jewellery.</span> After almost strike
for a period of 43 days, finally it has been called off on 13<sup>th</sup>
April 2016. <span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">After
this basic background and history, let’s understand the various provisions of
the Central excise in the simplest manner. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Central
Excise is applicable on manufacture of excisable goods. So, there should be
manufacturing for levy of Central Excise. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">(It
means all the jewelers engaged only in trading activity are automatically out
of purview of Central excise).<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Manufacture:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Excise
duty is leviable on the taxable event of manufacture. So duty is levied at the
time when the process of manufacturing is completed. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">The term
manufacture would mean “any process whereby the goods processed would change as
to name, character or use as is known in the market”.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Deemed Manufacture:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Let’s
first understand the meaning of this ‘Deemed fiction’. Deeming means a
situation which does not exist in reality but need to assume as if it is there
in reality. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">So,
Deemed Manufacture is to be understood in a manner that the said activity is
not a manufacturing activity at all, however it would be considered as
manufacturing activity only. </span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: Arial, sans-serif; font-size: 12pt; line-height: 115%;">The effect would be nothing but all the relevant
provisions of the Central Excise is applicable for deemed manufacturing also.</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">In
the context of Jewellery sector in addition to normal understanding of
manufacture, the processes of affixing or embossing trade name or brand name on
articles of Jewellery or on articles of goldsmiths' or silversmiths' wares of
precious metal or of metal clad with precious metal is deemed to be
"manufacture".<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Who is liable for
Central Excise – Job Worker or the Owner<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">As
a general rule in the Central Excise, a person who is doing the manufacturing
activity is liable for excise irrespective of the ownership of the goods. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">If
the same rule is being applied for the Jeweler business then the procedure
would be very complex and cumbersome. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Therefore,
for the Jeweler sector, Special provision is being specified in Rule 12AA which
is produced as below:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">“the
person who gets the article of jewellary falling under heading 7113 or 7114
produced or manufactured on his behalf on job work basis will be liable to pay
duty. “<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">It
means that the person who is doing the job work activity is not liable for
obtaining the registration, maintenance of records, filing of records, payment
of duty etc. but the person who is getting the jewellary manufactured is liable
for the all the things mentioned above. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Applicable Laws:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: Arial;">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Central
Excise Act, 1994<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: Arial;">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Central
Excise Tariff Act, 1985<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: Arial;">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Central
Excise Rules, 2002<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: Arial;">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Cenvat
Credit Rules, 2004<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; mso-fareast-font-family: Arial;">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Other
notifications and circulars issued from time to time. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Applicability – Basic
Exemption:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Central
Excise on jewellary is applicable for the manufacturers. However, each and
every manufacturer is not liable for the Central Excise Registration. Govt. has
exempted small manufacturers called as SSI Exemption, details of which are as
below:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">If
the domestic value of clearance has not crossed 12 (all goods manufactured including
silver Jewellery) crores in the financial year 2015-16, for the financial year
2016-17, exemption upto 6 crores of value of clearances can be availed. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">The
benefit for March 2016 is 50 lakhs.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">However,
the said SSI exemption (i.e. exemption based on value of clearance) is not
available if manufacturer affixes the brand name of another person.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Payment of Duty:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt; line-height: 115%;">Excise
duty is required to be paid only at the time of removal from the factory i.e.
factory to mean all the premises where the manufacturing activity is being
carried out. (To be paid in aggregate on
monthly / quarterly basis)<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;"><br /></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Therefore,
invoice is required to be issued and duty is required to be paid at the time of
removal of goods. It is to be understood that excise duty is required to be
paid irrespective of the fact whether it is for sale or not i.e. central excise
has nothing to do with sales. <b><o:p></o:p></b></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Once
the goods are removed on payment of duty, subsequent transactions are free from
Central Excise Duty. It is unlike Sales Tax (VAT) where the duty / tax is
required to be charged at each stage of sales. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Periodicity of
Payment of Excise Duty</span></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;"><br /></span></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: 'Arial Narrow', sans-serif; font-size: 12pt; text-indent: -0.25in;">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; text-indent: -0.25in;">Duty
needs to be paid on monthly basis on or before 6th of the succeeding month.</span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<span style="font-family: 'Arial Narrow', sans-serif; font-size: 12pt; text-indent: -0.25in;"> -<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; text-indent: -0.25in;">In
case of month of March, duty needs to be paid by 31st March.</span></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<span style="font-family: 'Arial Narrow', sans-serif; font-size: 12pt; text-indent: -0.25in;"> -<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;"> </span></span><span style="font-family: Arial, sans-serif; font-size: 12pt; text-indent: -0.25in;">SSI
units are permitted to make payment on quarterly basis.</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">However,
for the Jewellary sector Govt. has facilitated that duty for the month of March
2016 can be paid along with the payment for the month of April 2016. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Rate of Duty:</span></u></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">The
rate of duty on the Jewellery are as follows:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">(i)
1% on transaction value [without Cenvat credit on inputs and capital goods.
However credit on input services is eligible] or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">(ii)
12.5% with Cenvat credit of inputs, input services and capital goods<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">No
duty is payable if goods are exported in terms of Central Excise Rules, 2002.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Which premises are
required to be registered?<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Assessment
under central excise is factory based. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Any
premise satisfying the definition of factory is required to get registration
unless specifically exempted. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">If
the person has been operating from more than one factory, generally separate
registration certificate shall be obtained for each of such factories. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">However
for Jewellery sector there is special provision wherein centralized
registration is permitted.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">When
registration is required to be obtained<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Registration
needs to be obtained within 30 days from the date when liability to pay duty
arises.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<b><u><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Along with this basic
explanation, following points are also required to be taken care of while
dealing with Central Excise on the Jeweler Industry:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpFirst" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Difference
between the House mark against brand name / trade name.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Various
exemption notifications for goods related to jewellary manufacturing. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Activity
of job worker – principal manufacturer<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Rate
of Duty and Cenvat Credit. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Exemption
to Silver Jewellary subject to condition.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Liability
of duty at the time of change in purity.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Duty
on silver products with gold plated. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Amount
of duty when customer has given gold in exchange of new jewellary instead of
money.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Affixing
brand of own or of others.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Taxability
of Stock as on 29.02.2016 as the excise duty is effective w.e.f 01<sup>st</sup>
March 2016.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Manufacturing
and selling of jewellary from the same location.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Export
sales, sales to NRI.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Value
at which excise duty is required to be paid. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Effect
of wasting or making charges.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Duty
liability when goods are received for repairs / reconditioning etc. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Gold
supplied by the customer for making jewellary. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Excise
duty applicability on Gold Bars etc. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Sale
of scrap, powder generated out of manufacturing process. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Sales
return issues or goods sent on approval basis.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Calculation
of basic limit for clearances whether unit wise or factory wise.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Invoicing
issues.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Record
keeping<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle">
<br /></div>
<div class="MsoListParagraphCxSpLast" style="margin-bottom: 0.0001pt; text-align: justify; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: "Arial Narrow","sans-serif"; font-size: 12.0pt; mso-bidi-font-family: "Arial Narrow"; mso-fareast-font-family: "Arial Narrow";">-<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;">Filing
of returns. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="font-family: "Arial","sans-serif"; font-size: 12.0pt;"><b>For
any clarification or further information, you may contact us. <o:p></o:p></b></span></div>
<br />
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-62653554014271173102016-02-29T21:37:00.001-08:002016-03-02T21:39:23.515-08:00Wide Analysis of the Finance Bill 2016 (Union Budget 2016)<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcbDX65gfVcl7Jt_zrxAtnUcPbooCGl5erOmmzTBLyUeuDBleHkEFj5Q4DR37DHU9IFgEolOMsAH8NyElYXVQPS-3_2BnjSgcSRNJAzccyB-OoePx_CLhVBDMyYq6_j7zClewhUeXHR6W1/s1600/budget+fb.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="218" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcbDX65gfVcl7Jt_zrxAtnUcPbooCGl5erOmmzTBLyUeuDBleHkEFj5Q4DR37DHU9IFgEolOMsAH8NyElYXVQPS-3_2BnjSgcSRNJAzccyB-OoePx_CLhVBDMyYq6_j7zClewhUeXHR6W1/s320/budget+fb.jpg" width="320" /></a></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is our immense pleasure to present the
wide analysis of the Finance Bill 2016 (Union Budget 2016) in the very next
morning of the Budget Speech. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Our analysis has covered the major aspects
presented in the Budget and the analysis has been manifold in the various
groups viz. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Relief
to the Small Tax Payers, <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Changes
for the Corporate, <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Start
Up India Incentives<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">New
tax for E Commerce and Digital Platform Business <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Major
Changes in the presumptive taxation which affects small businesses including
the insertion of lock in period in it and also change in the threshold limit
for Audit.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Change
in TDS Rates and Threshold Limit and also proposed tax on Cash Purchase. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Undisclosed
Income (Black Money) Declaration and Direct Tax Dispute Resolutions <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Provisions
related to Assessment<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Rationalization
of Penalty Provisions, <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Incentives
based on nature of business like Residential Construction, Power etc. <o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Tax
Benefits for new employment generation<o:p></o:p></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="line-height: 115%; margin-left: .5in; mso-list: l1 level1 lfo10; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "wingdings"; font-size: 10.0pt; line-height: 115%;">Ø<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt; line-height: 115%;">Various
Small but important Amendments<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The detailed analysis is as under: <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">RELIEFS TO SMALL TAX PAYERS<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l13 level1 lfo1; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">No change in the
Income Tax rate of the persons other than company assesseee.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l13 level1 lfo1; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rebate u/s 87A
of the Income tax has been increased from Rs. 2000/- to Rs. 5000/-. A
minor relief to small taxpayers.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l13 level1 lfo1; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In order to
provide relief to the individual tax payers, it is proposed to amend
section 80GG so as to increase the maximum limit of deduction from
existing Rs. 2000 per month to Rs. 5000 per month. (Rent Paid by the
Assessee)</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l13 level1 lfo1; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Additional
Benefit of Housing Loan Interest up to Rs. 50,000/- subject to the
conditions.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal"><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Increase in time period
for acquisition or construction of self-occupied house property for
claiming deduction of interest</span></u><u style="text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"> </span></u></li>
</ul>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 24(b) of the Act provides that </span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">interest payable on
capital borrowed for acquisition or construction of a house property shall be
deducted while computing income from house property<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Such acquisition or
construction is completed within three years from the end of the financial year
in which capital was borrowed. It is proposed to increase the time duration to
five years instead of existing three years.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l11 level1 lfo14; text-align: justify; text-autospace: none;"><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Simplification
and rationalisation of provisions relating to taxation of unrealised rent
and arrears of rent</span></u><b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"> </span></u></b></li>
</ul>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Existing
provisions of sections 25A, 25AA and 25B relate to special provisions on
taxation of unrealised rent allowed as deduction when realised subsequently,
unrealised rent received subsequently and arrears of rent received
respectively.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to simplify these provisions and merge them under a single new
section 25A<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to provide that the amount of rent received in arrears or the
amount of unrealized rent realised subsequently by an assessee shall be charged
to income-tax in the financial year in which such rent is received or realised,
whether the assessee is the owner of the property or not in that financial
year. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is also proposed that 30% of the arrears of rent or the unrealized rent
realized subsequently by the assessee shall be allowed as deduction.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><br /></span></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l11 level1 lfo14; text-align: justify; text-autospace: none;"><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalization
of section 56 of the Income-tax Act</span></u><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">With
a view to bring uniformity in tax treatment, it is proposed to amend the Act so
as to provide that any shares received by an individual or HUF as a consequence
of demerger or amalgamation of a company shall not attract the provisions of
clause (vii) of sub-section (2) of section 56. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Earlier
such benefit is available only if the recipient is a firm or a company.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoListParagraph" style="text-align: justify;">
<br /></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">CORPORATE TAXATION:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
Finance Minister in his Budget Speech, 2015 has indicated that the rate of
corporate tax will be reduced from 30% to 25% over the next four years along
with corresponding phasing out of exemptions and deductions.<o:p></o:p></span></div>
<div class="MsoListParagraph" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">With a view to that, following amendments are
provided for Corporate Taxation<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l14 level1 lfo5; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rate of income
tax has been set as 25% for the Domestic Company which is registered after
1<sup>st</sup> Day of March 2016 and engaged in the business of
manufacture or production of any article or thing and not claimed any
special relaxations under the Income Tax Act.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l14 level1 lfo5; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rate of income
tax has been set as 29% for the Domestic company whose total turnover or
the gross receipts in the previous year 2014-15 does not exceed five crore
rupees, else 30% will be the rate of tax. <o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Phasing out of deductions and
exemptions</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l7 level1 lfo6; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Profit linked, investment linked
and area based deductions will be phased out for both corporate and
non-corporate tax payers.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l7 level1 lfo6; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Sunset dates
provided in the Act will not be modified.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l7 level1 lfo6; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">A tax incentive
with no terminal date, 31.03.2017 would be the applicable terminal date
either for claim of the expenditure or for claiming the benefit.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l7 level1 lfo6; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Following are
the summarized view of various sections:</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: none; mso-border-alt: solid black .5pt; mso-border-insideh: .5pt solid black; mso-border-insidev: .5pt solid black; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr style="height: 35.5pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td colspan="2" style="border: solid black 1.0pt; height: 35.5pt; mso-border-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 6.65in;" valign="top" width="638"><div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><i><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Part I: Following amendments are applicable
w.e.f 01.04.2017 and will apply in relation to A.Y. 2017-18 and subsequent
years.<o:p></o:p></span></u></i></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Relevant
Section<o:p></o:p></span></b></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<b><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Amended
Provision<o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">10AA<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">No Deduction for Units commencing
production after 31.03.2020<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35AC<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">No deduction shall be available w.e.f
01.04.2017<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35CCD<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Deduction shall be restricted to 100% from
01.04.2020 instead 150% at present. <o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">80IA, 80IB and 80IAB<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">No Deduction for Units commencing
production after 31.03.2017<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td colspan="2" style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 6.65in;" valign="top" width="638"><div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><i><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Part II: Following amendments are
applicable w.e.f 01.04.2018 and will apply in relation to A.Y. 2018-19 and
subsequent years</span></u></i></b><b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">.<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 32 r.w. Rule 5 - Accelerated<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Depreciation.<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The highest rate of depreciation will be
40% instead of 100% at present. <o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35(1)(ii)<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Weighted deduction shall be restricted to
150% from 01.04.17 to 31.03.20 and then restricted to 100%. (Present 175%)<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35(1)(iii)<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Deduction would be restricted to 100%
instead 125% at present. <o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35(2AA)<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Weighted deduction shall be restricted to
150% from 01.04.17 to 31.03.20 and then restricted to 100%. (Present 200%)<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35(2AB)<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Weighted deduction shall be restricted to
150% from 01.04.17 to 31.03.20 and then restricted to 100%. (Present 200%)<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35AD<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Weighted deduction shall be restricted to
100% (Present 150%)<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 113.4pt;" valign="top" width="151"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">35CCC<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 365.4pt;" valign="top" width="487"><div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Weighted deduction shall be restricted to
100%. (Present 150%)<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Exemption of income of Foreign company
from storage and sale of crude oil stored as part of strategic reserves.</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">For
the non residents, the taxation of the income takes place when it deemed to
accrue or arise in India directly or indirectly derived through or from a
business connection in India.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
Govt. is planning to create underground storage facility for storage of crude
oil as part of strategic reserves. It is in India's national interest and
ensures price stability for Indian oil companies.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l9 level1 lfo7; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore, it is proposed to
amend the provisions of section 10 of the Act to provide that any income
accruing or arising to a foreign company on account of storage of crude
oil in a facility in India and sale of crude oil therefrom to any person
resident in India shall not be included in the total income. <o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l9 level1 lfo7; text-align: justify; text-autospace: none;"><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
amendment will take effect from A.Y.16-17. It means it is also available
for the current financial year also. <o:p></o:p></span></u></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Exemption
to Foreign Mining Companies (FMC) in respect of certain activity related to
diamond trading in "Special Notified Zone".<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">"Special
Notified Zone" (SNZ) had been created to facilitate shifting of operations
by foreign mining companies (FMC) to India and to permit the trading of rough
diamonds in India by the leading diamond mining companies of the world.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
activity of FMC of mere display of rough diamonds even with no actual sale taking
place in India may lead to creation of business connection in India of the FMC
and thereby would be taxable u/s 9 of the Act. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l18 level1 lfo8; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In order to facilitate the FMCs
to undertake activity of display of uncut diamond (without any sorting or
sale) in the SNZ, it is proposed to amend section 9 of the Act to provide that
in the case of a foreign company engaged in the business of mining of
diamonds, no income shall be deemed to accrue or arise in India to from
the above activities. <o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Applicability
of Minimum Alternate Tax (MAT) on foreign companies for the period prior to
01.04.2015.<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 115JB of the Act prescribes a MAT @ 18.5% on
the company assessee. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The applicability of it to the FIIs has been
provided </span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Vide
Finance Act, 2015 of the provisions of section 115JB were amended to provide
that in case of a foreign company any income chargeable at a rate lower than
the rate specified in section 115JB shall be reduced from the book profits and
the corresponding expenditure will be added back. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">However,
since this amendment was prospective w.e.f. assessment year 2016-17, the issue
for assessment year prior to 2016-17 remained to be addressed.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend the Income-tax Act so as to provide that with effect from
01.04.2001, the provisions of section 115JB shall not be applicable to a
foreign company if –<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; mso-list: l12 level1 lfo4; text-align: justify; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(i)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">the
assessee is a resident of a country or a specified territory with which India
has an agreement referred to in sub-section (1) of section 90 or the Central
Government has adopted any agreement under sub-section (1) of section 90A and
the assesse does not have a permanent establishment in India in accordance with
the provisions of such Agreement; or<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; mso-list: l12 level1 lfo4; text-align: justify; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(ii)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">the
assessee is a resident of a country with which India does not have an agreement
of the nature referred to in clause (i) above and the assessee is not required
to seek registration under any law for the time being in force relating to
companies.<o:p></o:p></span></div>
<div class="MsoListParagraph" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This
amendment is proposed to be made <u>effective retrospectively fr</u>om the
1stday of April, 2001 and shall accordingly apply in relation to assessment
year 2001-02 and subsequent years.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalization
of conversion of a company into Limited Liability Partnership (LLP)</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Existing
provisions of clause (xiiib) of Section 47 provides that conversion of a
private limited or unlisted public company into Limited Liability Partnership
(LLP) shall not be regarded as transfer, if certain conditions are fulfilled,
which, inter alia, include a condition that the company's gross receipts,
turnover or total sales in any of the preceding three years did not exceed
Rs.60 lakh.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend the said section so as to provide that, for availing
tax-neutral conversion, in addition to the existing conditions, the value of
the total assets in the books of accounts of the company in any of the three
previous years preceding the previous year in which the conversion takes place,
should not exceed five crore rupees.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Tax
on Distributed Income to Shareholder (On the occasion of the Buy Back of
Securities)</span></u></b></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 115QA of
the Act provide for the levy of additional tax @ 20% of the distributed income
on account of buy back of unlisted shares of a company. <o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The buyback can be
undertaken by the company under different provisions of the Companies Act, 1956
or the Companies Act, 2013 while Sec. 115QA was limited to Section 77A of the
Companies Act, 1956. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In order to
provide clarity on the above issues, it is proposed to amend section 115QA to
provide that the provisions of this section shall apply to any buy back of
unlisted share undertaken by the company in accordance with the provisions of
the law relating to the Companies and not necessarily restricted to section 77A
of the Companies Act, 1956. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The amendment will
take effect from 1st June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">TAX INCENTIVES FOR START-UPS<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">India has the best brains of the country. However,
they are not able to find the proper environment for the Start Ups and
therefore either the creativity fails or the creativity will be nurtured
outside India. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">So, the Govt. has prescribed the following tax
incentives for Start Ups. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l18 level1 lfo8; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">100% of
the Profit will be exempted derived by the <u>Eligible</u> Start Up set up
before 01.04.2019.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">A fund
will be established to raise Rs. 2500 Crores annually for four years to
finance the start ups</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section
54EE of the Act to provide exemption from capital gains </span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">tax if the long
term capital gains proceeds are invested by an assessee in units of such
specified fund. Lock in Period of 3 Years. Max Cap Rs. 50 Lacs.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 54GB will be amended to
invest such capital gains are invested in subscription of shares of a
company which qualifies to be a small or medium enterprise under the MSME
Act, 2006.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 54GB further amended the
wings of exemption if such capital gains are invested in subscription of
shares of a company which qualifies to be an eligible start-up subject to
the condition that the individual or HUF holds more than fifty per cent
shares of the company and such company utilises the amount invested in
shares to purchase new asset before due date of filing of return by the
investor.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Further it is proposed to amend
section 54GB so as to provide that the expression "new asset"
includes computers or computer software in case of technology driven
start-ups so certified by the Inter-Ministerial Board of Certification
notified by the Central Government in the official Gazette.<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Also the rate of corporate taxation as mentioned in
the ‘Corporate’ tab is a tax incentive for start ups. <o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="margin-left: .5in; text-align: center;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">NEW TAX FOR E COMMERCE AND
DIGITAL PLATFORM BUSINESS CALLED AS EQUALIZATION
LEVY<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Today the business has changed its wings and new concepts of the E Commerce
and digital platforms have been generated.
</span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">If the old principles
of Permanent Establishment (PE) (PE is the base for changing the taxation) are
to be kept same then the Govt. would have loss of revenue. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">So It also
recommended to impose of a final withholding tax on certain payments for
digital goods or services provided by a foreign e-commerce provider or
imposition of a equalization levy on consideration for certain digital
transactions received by a non-resident from a resident or from a non-resident
having permanent establishment in other contracting state.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is proposed to
provide for an equalisation levy of 6 % of the amount of consideration for
specified services received or receivable by a non-resident not having
permanent establishment ('PE') in India, from a resident in India who carries
out business or profession, or from a non-resident having permanent
establishment in India.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">However, the small
players in the digital domain would be exempted. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This will take the
effect on the date specified by the Central Govt. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">CHANGES
IN THE PRESUMPTIVE TAXATIONS AND THRESHOLD LIMIT FOR AUDIT<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">First
Time Introduction of Presumptive taxation scheme for persons having income from
profession<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
existing scheme of taxation provides for a simplified presumptive taxation
scheme u/s 44AD of the Act for certain eligible persons engaged in certain
eligible business only and not for persons earning professional income<o:p></o:p></span></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l5 level1 lfo13; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In this regard, new section 44ADA
is proposed to be inserted in the Act to provide for estimating the income
of an assessee who is engaged in any profession referred to in sub-section
(1) of section 44AA and whose total
gross receipts does not exceed Rs. 50 Lacs in a previous year, at a sum
equal to 50%. of the total gross receipts, or, as the case may be , a sum
higher than the aforesaid sum earned by the assessee.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l5 level1 lfo13; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The scheme will apply to such
resident assessee who is an individual, Hindu undivided family or
partnership firm but not Limited Liability partnership firm.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Other
conditions and benefits as mentioned u/s 44AD of the Act. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Increase
in threshold limit for audit for persons having income from profession and
business:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l15 level1 lfo15; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Turnover
limit for audit for the business assesses has been increased to Rs. 200
Lacs from existing Rs. 100 Lacs.<u>(Not Mentioned in the Budget Speech but as the limit for Sec. 44AD has been increased, so it is the expected one)</u></span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l15 level1 lfo15; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Turnover
limit for audit for the assesses engaged in the Profession has been
increased to Rs. 50 Lacs from existing Rs. 25 Lacs.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l15 level1 lfo15; text-align: justify; text-autospace: none;"><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Also a
clause inserted that prescribes of declaring profit for any of the five
assessment years not in accordance with the provision of Section 44AD(1)
of the Act </span></u><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">he
shall not be eligible to claim the benefit of the provisions of this
section for five assessment years subsequent to the assessment year
relevant to the previous year in which the profit has not been declared in
accordance with the provisions of sub-section (1).</span></u><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l15 level1 lfo15; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Further as the turnover limit of
presumptive taxation scheme has been enhanced to rupees two crore, it is
proposed to provide that eligible assessee shall <u>be require to pay
advance tax</u>. However, in order to keep the compliance minimum in his
case, it is proposed that he may pay advance tax by 15th March of the
financial year.</span><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"> </span></u></li>
</ul>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">PROVISIONS
RELATED TO TDS AND TCS<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Increase
in threshold limit / Percentage of deduction of tax at source (TDS)<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; border: none; mso-border-alt: solid black .5pt; mso-border-insideh: .5pt solid black; mso-border-insidev: .5pt solid black; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184;">
<tbody>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section<o:p></o:p></span></div>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Existing
Limit<o:p></o:p></span></div>
</td>
<td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Proposed
Limit<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">192A - For Payment of accumulated balance due to
an employee<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">30000<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">50000<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194BB<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">5000<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">10000<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194C
– Aggregate Limit<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">75000<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">100000<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194LA<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">200000<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">250000<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194D<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">20000
/ 10%<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">15000
/ 5%<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194G<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">1000
/ 10%<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">15000
/ 5%<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194H<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">5000
/ 10%<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">15000
/ 5%<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194DA<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">2%<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">1%<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 234.9pt;" valign="top" width="313"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">194EE<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 94.5pt;" valign="top" width="126"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">20%<o:p></o:p></span></div>
</td>
<td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-top-alt: solid black .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 112.5pt;" valign="top" width="150"><div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">10%<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Tax Collection at Source (TCS) on sale
of vehicles; goods or services – 206(1D)<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In order to reduce
the quantum of cash transaction in sale of any goods and services and for
curbing the flow of unaccounted money in the trading system and to bring high
value transactions within the tax net, <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">it is proposed to
provide that the seller shall collect the tax at the rate of 1% from the
purchaser on sale of motor vehicle of the value exceeding Rs. 10 Lacs and sale
in cash of any goods (other than bullion and jewellery), or providing of any
services (other than payments on which tax is deducted at source under Chapter
XVII-B) exceeding Rs. 2 Lacs.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">For bullion,
jewellary etc. Section 207C was already specified under the I.T. Act. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The amendment will take effect from 1st June, 2016.<o:p></o:p></span></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">THE INCOME DECLARATION SCHEME, 2016<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">An
opportunity is proposed to be provided to persons who have not paid full taxes
in the past to come forward and declare the undisclosed income and pay tax,
surcharge and penalty totalling in all to forty-five per cent of such
undisclosed income declared.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l6 level1 lfo19; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rate of tax would be 30% on the
declared income + 25% Surcharge on tax payable (Called as Krishi Kalyan
Cess) and a penalty at 25% of tax payable.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l16 level1 lfo18; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">So effective rate of tax
including penalty and surcharge would be 45% of the undisclosed income.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">However,
following cases shall not be eligible for the scheme:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">where notices have been issued
under section 142(1) or 143(2) or 148 or 153A or 153C, or<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">where a search or survey has been
conducted and the time for issuance of notice under the relevant
provisions of the Act has not expired, or<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">where information is received
under an agreement with foreign countries regarding such income,<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">cases covered under the Black
Money Act, 2015, or <o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">persons notified under Special
Court Act, 1992, or<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">cases covered under Indian Penal
Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the
Unlawful Activities (Prevention) Act, 1967, the Prevention of Corruption
Act, 1988.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<i><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Benefits by opting
this scheme.<o:p></o:p></span></u></i></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Exempt from wealth tax in respect
of assets specified in declaration<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">No scrutiny and enquiry under the
Income-tax Act and Wealth-tax Act<o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Immunity from prosecution <o:p></o:p></span></li>
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Immunity from the Benami
Transactions (Prohibition) Act, 1988</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">These
amendments will take effect from the 1st day of June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">THE DIRECT TAX DISPUTE RESOLUTION SCHEME, 2016<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Litigation has been a major area of concern for the
India. Numbers of cases are pending at all the appellate levels. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In
order to reduce the huge backlog of cases and to enable the Government to
realise its dues expeditiously, it is proposed to bring the Direct Tax Dispute
Resolution Scheme, 2016<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Salient
features of the scheme are as follows:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The scheme be applicable to
"tax arrear" which is defined as the amount of tax, interest or
penalty determined under the Income-tax Act or the Wealth-tax Act, 1957 in
respect of which appeal is pending before the Commissioner of Income-tax
(Appeals) or the Commissioner of Wealth-tax (Appeals) as on the 29th day
of February, 2016.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The pending appeal could be
against an assessment order or a penalty order.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The declarant under the scheme be
required to pay tax at the applicable rate plus interest upto the date of
assessment.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">However, in case of disputed tax
exceeding rupees ten lakh, twenty-five percent of the minimum penalty
leviable shall also be required to be paid.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In case of pending appeal against
a penalty order, twenty-five percent of minimum penalty leviable shall be
payable alongwith the tax and interest payable on account of assessment or
reassessment.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Consequent to such declaration,
appeal in respect of the disputed income and disputed wealth pending
before the Commissioner (Appeals) shall be deemed to be withdrawn.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Immunity
from prosecution<o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In
certain cases as defined, a person is not eligible for the scheme.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">PROVISIONS
RELATED TO ASSESSMENT:<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
has been specified that processing under section 143(1) of the Act to be
mandated before assessment u/s 143(3) of the Act. </span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Providing
Time limit for disposing applications made by assessee under section 273A,
273AA or 220(2A)<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Under
the existing provisions no time limit has been provided regarding the passing
of orders either under section 220 or Sections 273A or 273AA. Further, these
provisions do not specifically mandate that assessee be given an opportunity of
being heard in case such application is rejected by an authority. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore,
in order to rationalise the provisions and provide for specific time-line,
amendment to the existing provisions have been proposed.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">An
order accepting or rejecting application of an assessee shall be passed by the
concerned Principal Chief Commissioner, Chief Commissioner, Principal
Commissioner or Commissioner within a period of twelve months from the end of
the month in which such application is received.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Opportunity
of being heard will be provided to the assessee in case of rejection of
application. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Applications
pending as on 01<sup>st</sup> day of June 2016, required to be disposed on or
before March 31, 2017.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">These
amendments will take effect from 1st June, 2016<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Providing
legal framework for automation of various processes and paperless assessment<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend the relevant provisions of the Act so as to provide
adequate legal framework for paperless assessment in order to enhance
efficiency and reduce the burden of compliance. A series of changes are
proposed to achieve this end.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Necessary
amendments have been made in Section 282A(1), 143(2) and Section 2. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">These
amendments will take effect from the 1st day of June, 2016.</span><b><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"> </span></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalisation
of time limit for assessment, reassessment and recomputation</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">the period, for completion of
assessment under section 143 or section 144 be changed from existing two
years to twenty-one months from the end of the assessment year in which
the income was first assessable;</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">the period for completion of
assessment under section 147 be changed from existing one year to nine
months from the end of the financial year in which the notice under
section 148 was served;</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">the period for completion of
fresh assessment in pursuance of an order under section 254 or section 263
or section 264, setting aside or cancelling an assessment be changed from
existing one year to nine months</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is further proposed to provide
that the period for giving effect to an order, under sections 250 or 254
or 260 or 262 or 263 or 264 or an order of the Settlement Commission under
sub-section (4) of section 245D, where effect can be given wholly or
partly otherwise than by making a fresh assessment or reassessment shall
be three months from the end of the month in which order is received or
passed,</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l2 level1 lfo3; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In respect of cases pending as on
1st June 2016, the time limit for passing such order is proposed to be
extended to 31.3.2017.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalization
of time limit for assessment in search cases</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
limitation for completion of assessment under section 153A – <u>to be changed
from existing two years to twenty-one months</u> from the end of………..<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
limitation for completion of assessment under section 153C <u>– to be changed
from existing one year to nine months</u> from the end of………..<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
amendment will take effect from 1st day of June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Payment
of interest on refund</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is also proposed to provide that where a refund arises out of appeal effect
being delayed beyond the time prescribed under sub-section (5) of section 153,
the assessee shall be entitled to receive, in addition to the interest payable
under sub-section (1) of section 244A, an additional interest on such refund
amount calculated at the rate of 3% per annum, for the period beginning from
the date following the date of expiry of the time allowed under sub-section (5)
of section 153 to the date on which the refund is granted. It is clarified that
in cases where extension is granted by the Principal Commissioner or Commissioner
by invoking proviso to sub-section (5) of section 153, the period of additional
interest, if any, shall begin from the expiry of such extended period.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Hon’ble
Finance Minster also specifically pointed out that the officer who has made
delay will be made accountable. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">These
amendments will take effect from 1st day of June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalisation
of the provisions relating to Appellate Tribunal</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">it
is proposed to amend sub-section (2) of section 254 to provide that the
Appellate Tribunal may rectify any mistake apparent from the record in its
order at any time within six months from the end of the month in which the
order was passed as existing four years from the date of order. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">it
is proposed to amend the said sub-section (3) so as to provide that a single
member bench may dispose of a case where the total income as computed by the
Assessing Officer does not exceed fifty lakh rupees.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">These
amendments will take effect from 1st day of June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">RATIONALISATION OF PENALTY PROVISIONS<o:p></o:p></span></u></b></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Amendment to Section
271(1)(c)<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">At present penalty on account of concealment of
particulars of income or furnishing inaccurate particulars of income is
leviable under section 271(1)(c) of the Income-tax Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The penalty may be levied at the rate of 100% or the
300% of the tax that has been evaded. It is up to the discretion of the Income
Tax officer to levy the penalty within this range. As it is up to the
discretion of the ITO, assessee may get harassed sometimes. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore, the Hon’ble FM has specifically mentioned
in his budget speech that to take away the discretion of the ITO, Section
271(1)(c) will be abolished and new Section 270A will be inserted. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">S</span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">ection 270A(1) seeks to provide that the Assessing
Officer, Commissioner (Appeals) or<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">the
Principal Commissioner or Commissioner may levy penalty if a person has under
reported his income<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">And
the quantum of penalty will also be definite and not be variable at the
discretion of the ITO. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Similarly,
Amendment of section 271AAB of the Act has been carried out and the penalty </span></b><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">on such undisclosed
income at a flat rate of 60% of such income instead of present provision of 30%
to 90% of the undisclosed income as may be decided by the ITO at his
discretion. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Provision
for bank guarantee under section 281B</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">A
very good provision has been inserted by the Hon’ble FM which specifies that if
the Bank Guarantee of a Nationalized Bank furnished by the assessee then no
attachment to the property should be made the assessing officer to recover the
tax. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
provision is summarized as below:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Under
the existing provisions of section 281B the Assessing Officer may provisionally
attach any property of the assessee during the pendency of assessment or
reassessment proceedings, for a period of six months with the prior approval of
the income- tax authorities specified therein, if he is of the opinion that it
is necessary to do so for the purpose of protecting the interests of the
revenue. Such attachment of property is extendable to a maximum period of two
years or sixty days after the date of assessment order, whichever is later.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed that the Assessing Officer shall revoke provisional attachment of
property made under sub-section (1) of the aforesaid Section in a case where
the assessee furnishes a bank guarantee from a scheduled bank, for an amount
not less than the fair market value of such provisionally attached property or
for an amount which is sufficient to protect the interests of the revenue.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Immunity
from penalty and prosecution in certain cases by inserting new section 270AA</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to provide that an assessee may make an application to the
Assessing Officer for grant of immunity from imposition of penalty under
section 270A and initiation of proceedings under section 276C, provided he pays
the tax and interest payable as per the order of assessment or reassessment
within the period specified in such notice of demand and does not prefer an
appeal against such assessment order. The assessee can make such application
within one month from the end of the month in which the order of assessment or
reassessment is received in the form and manner, as may be prescribed<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-list: l13 level1 lfo1; text-align: justify;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rate of
surcharge is increased to 15% from existing 12% in case of Individual,
HUF, AOP, BOI or artificial judicial person.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">VARIOUS SPECIFIC BUSINESS RELATED AMENDMENTS <o:p></o:p></span></u></b></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Extending the benefit
of initial additional depreciation under section 32(1)(iia) for power sector</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Under
the existing provisions of section 32(1)(iia) of the Act, additional
depreciation of 20% is allowed in respect of the cost of new plant or machinery
acquired and installed by certain assessees engaged in the business of
generation and distribution of power .<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
Govt. has target to electrify every village in the country by the year 2018.
However, in India there is also problem of power transmission. So special
incentive is required for the transmission companies. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l10 level1 lfo9; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore, the benefit of the
additional depreciation of 20% is extended to the certain assesses engaged
in power transmission business. <o:p></o:p></span></li>
</ul>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Taxation of Income
from 'Patents'<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Research and Development is the backbone of the any
country. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore, </span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In order to encourage indigenous research
& development activities and to make India a global R & D hub, the
Government has decided to put in place a concessional taxation regime for
income from patents. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
aim of the concessional taxation regime is to provide an additional incentive
for companies to retain and commercialize existing patents and to develop new
innovative patented products. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This
will also encourage companies to locate the high-value jobs associated with the
development, manufacture and exploitation of patents in India.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l10 level1 lfo9; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Accordingly, it is proposed to
insert new section 115BBF to provide that where the total income of the <i><u>eligible assessee*</u></i> income
includes any income by way of royalty in respect of a patent developed and
registered in India, then such royalty shall be taxable at the rate of 10%
( plus applicable surcharge and cess) on the gross amount of royalty. No
expenditure or allowance in respect of such royalty income shall be
allowed under the Act.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">*Eligible
Assessee would mean a person resident in India who is the first inventor and
whose name is registered on the Patent Master. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Incentives for
Promoting Housing for All</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
another major commitment that Hon’ble Narendra Modi gave at the time of Central
Election is to provide housing for all. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l10 level1 lfo9; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore, it has been provided
that 100% of the profits of an assesseee engaged in developing and
building affordable housing projects subject to satisfying the conditions
would be exempt. <o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l10 level1 lfo9; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Incentive to the first home
buyers availing home loans by providing additional deduction in respect of
interest on loan taken for residential house property from any financial
institution up to Rs. 50,000. This is in addition to the existing limit of
Rs. 2 Lacs available u/s 24 of the act.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="margin-left: .5in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Provided
that the value of the house is less than Rs. 50 Lacs and loan amount not
exceeding Rs. 35 Lacs sanctioned during 01.04.2016 to 31.03.2017</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Tax incentive for
employment generation</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
main agendas of the Central Election of the campaigning of Mr. Modi is –
Electrification of Every Villages, Providing Employment, Increasing Foreign
Investment in India, House for all. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">With
a view to provide more employment, Section 80JJA has been amended. It is
extended to all the sectors. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l3 level1 lfo11; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is further proposed to relax
the norms for minimum number of days of employment in a financial year
from 300 days to 240 days and also the condition of ten per cent increase
in number of employees every year is proposed to be done away with.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l3 level1 lfo11; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is also proposed to provide
that in the first year of a new business, thirty percent of all emoluments
paid or payable to the employees employed during the previous year shall
be allowed as deduction.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l3 level1 lfo11; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">However, only those employees
would be covered where the cost incurred on any employee whose total
emoluments should not exceed Rs 50,000/-. </span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalization
of scope of tax incentive under section 32AC – Additional Depreciation<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
existing provision of sub-section (1A) in section 32AC of the Act provides for
investment allowance at the rate of 15% on investment made in new assets (plant
and machinery) exceeding Rs.25 crore in a previous year by a company engaged in
manufacturing or production of any article or thing subject to the condition
that the acquisition and installation has to be done in the same previous year.
<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This
tax incentive is available up to 31.03.2017. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
dual condition of acquisition and installation causes genuine hardship in cases
in which assets having been acquired could not be installed in same previous
year.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l8 level1 lfo16; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is proposed to amend the
sub-section (1A) of section 32AC so as to provide that the acquisition of
the plant & machinery of the specified value has to be made in the
previous year.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l8 level1 lfo16; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">However, installation may be made
by 31.03.2017 in order to avail the benefit of investment allowance of
15%. It is further proposed to provide that where the installation of the
new asset is in a year other than the year of acquisition, the deduction
under this sub-section shall be allowed in the year in which the new asset
is installed.</span><b style="text-align: center;"><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"> </span></u></b></li>
</ul>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<b><u><span style="color: #c00000; font-family: "arial" , "sans-serif"; font-size: 12.0pt;">: VARIOUS SMALL BUT IMPORTANT PROVISIONS :<o:p></o:p></span></u></b></div>
<div align="center" class="MsoNormal" style="mso-layout-grid-align: none; text-align: center; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rationalization of taxation of income
by way of dividend</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Dividend which
suffers the DDT u/s 115 (O) of the Act is exempt in the hands of the
shareholders u/s 10(34) of the Act. Rate of DDT is 15%. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">So if the person is
falling in the tax bracket of 30% then also it will attract the tax liability
of 15%. This will have undue advantage to the high worth individuals. This proposal
has been moved by our former Finance Minister Mr. P. Chidambaram. <o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Therefore, Hon’ble FM
amended to provide that any income by way of dividend in excess of Rs. 10 lakh
shall be chargeable to tax in the case of an individual, Hindu undivided family
(HUF) or a firm who is resident in India, at the rate of ten percent. The
taxation of dividend income in excess of ten lakh rupees shall be on gross
basis.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Levy of tax where the charitable
institution ceases to exist or converts into a non-charitable organization<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Sections
11 and 12 of the Act provide for exemption to trusts or institutions in respect
of income derived from property held under trust and voluntary contributions,
subject to various conditions contained in the said sections.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Where
such income cannot be applied during the previous year, it has to be
accumulated and invested in the modes prescribed and applied for such purposes
in accordance with various conditions provided in the section.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">A
society or a company or a trust or an institution carrying on charitable
activity may voluntarily wind up its activities and dissolve or may also merge
with any other charitable or non-charitable institution, or it may convert into
a non-charitable organization. In such a situation, the existing law does not
provide any clarity as to how the assets of such a charitable institution shall
be dealt with.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Accordingly,
it is proposed to amend the provisions of the Act. The elements of the regime
are:<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(i)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
accretion in income (accreted income) of the trust or institution shall be
taxable on conversion of trust or institution into a form not eligible for
registration u/s 12 AA or on merger into an entity not having similar objects
and registered under section 12AA or on non-distribution of assets on
dissolution to any charitable institution registered u/s 12AA or approved under
section 10(23C) within a period twelve months from dissolution.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(ii)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Accreted
income shall be amount of aggregate of total assets as reduced by the liability
as on the specified date. The method of valuation is proposed to be prescribed
in rules. <o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(iii)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
taxation of accreted income shall be at the maximum marginal rate.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="margin-left: .75in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(iv)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This
levy shall be in addition to any income chargeable to tax in the hands of the
entity.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="margin-left: .25in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(v)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This
tax shall be final tax for which no credit can be taken by the trust or
institution or any other person, and like any other additional tax, it shall be
leviable even if the trust or institution does not have any other income
chargeable to tax in the relevant previous year.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="margin-left: .25in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(vi)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In
case of failure of payment of tax within the prescribed time a simple interest
@ 1% per month or part of it shall be applicable for the period of non-payment.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="margin-left: .25in; mso-layout-grid-align: none; mso-list: l17 level1 lfo2; text-align: justify; text-autospace: none; text-indent: 0in;">
<!--[if !supportLists]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">(vii)<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]--><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">For
the purpose of recovery of tax and interest, the principal officer or the
trustee and the trust or the institution shall be deemed to be assessee in
default and all provisions related to the recovery of taxes shall apply.
Further, the recipient of assets of the trust, which is not a charitable
organisation, shall also be liable to be held as assessee in default in case of
non-payment of tax and interest. However, the recipient's liability shall be
limited to the extent of the assets received.<o:p></o:p></span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">These
amendments will take effect from 1st June, 2016.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Exemption
from requirement of furnishing PAN under section 206AA to certain non-resident.<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 206AA of the Act prescribes that if a person
fails to provide PAN for deduction of tax, then tax will be deducted at the
relevant rate or at 20% whichever is higher. This provision is also applicable
to NRIs. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l4 level1 lfo17; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">In order to reduce compliance
burden, it is proposed to amend the said section 206AA so as to provide
that the provisions of this section shall also not apply to a
non-resident, not being a company, or to a foreign company, in respect of
any other payment, other than interest on bonds, subject to such
conditions as may be prescribed.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This amendment will
take effect from 1st June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Extension
of scope of section 43B to include certain payments made to Railways<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
existing provisions of section 43B of the Act, inter alia, provide that any sum
payable by the assessee by way of tax, cess, duty or fee, employer contribution
to Provident Fund, etc., is allowable as deduction of the previous year in
which the liability to pay such sum was incurred (relevant previous year) if
the same is actually paid on or before the due date of furnishing of the return
of income irrespective of method of accounting followed by a person. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">With
a view to ensure the prompt payment of dues to Railways for use of the Railway
assets, it is proposed to amend section 43B so as to expand its scope to
include payments made to Indian Railways for use of Railway assets within its
ambit<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Sovereign Gold Bond
Scheme, 2015<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Last year, GOI </span><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">has introduced the Sovereign Gold Bond Scheme
with the aim of reducing the demand for physical gold so as to reduce the
outflow of foreign exchange on account of import of gold<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l0 level1 lfo12; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 47 of the Act amended to
provide that any redemption of Sovereign Gold Bond under the Scheme, by an
individual shall not be treated as transfer and therefore shall be exempt
from tax on capital gains.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l0 level1 lfo12; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It is also proposed to amend
section 48 of the Income-tax Act, so as to provide indexation benefits to
long terms capital gains arising on transfer of Sovereign Gold Bond to all
cases of assesses</span><span style="font-family: "arial" , sans-serif; font-size: 10pt; text-align: left;"> </span></li>
</ul>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Rupee Denominated
Bond<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The
Reserve Bank of India has recently permitted Indian corporate to issue rupee
denominated bonds outside India as a measure to enable the Indian corporate to
raise funds from outside India.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<ul style="margin-top: 0in;" type="disc">
<li class="MsoNormal" style="mso-layout-grid-align: none; mso-list: l5 level1 lfo13; text-align: justify; text-autospace: none;"><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Section 48 of the Act so as to
provide that the capital gains, arising in case of appreciation of rupee
between the date of issue and the date of redemption against the foreign
currency in which the investment is made shall be exempt from tax on
capital gains.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></li>
</ul>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Consolidation of
'plans' within a 'scheme' of mutual fund<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend Section 47 so as to provide that any transfer by a unit
holder of a capital asset, being a unit or units, held by him in the
consolidating plan of a mutual fund scheme, made in consideration of the
allotment to him of a capital asset, being a unit or units, in the consolidated
plan of that scheme of the mutual fund shall not be considered transfer for
capital gain tax purposes and thereby shall not be chargeable to tax.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Tax Treatment of Gold
Monetization Scheme, 2015<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend Clause (14) of section 2, so as to exclude Deposit
Certificates issued under Gold Monetisation Scheme, 2015 notified by the
Central Government, from the definition of capital asset and thereby to exempt
it from capital gains tax.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is also proposed to amend clause (15) of section 10 so as to provide that the
interest on Deposit Certificates issued under the Scheme, shall be exempt from
income-tax.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Clarification
regarding set off losses against deemed undisclosed income</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">.<o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend the provisions of the sub-section (2) of section 115BBE to
expressly provide that no set off of any loss shall be allowable in respect of
income under the sections 68 or section 69 or section 69A or section 69B or
section 69C or section 69D.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Taxation
of Non-compete fees and exclusivity rights in case of Profession<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">It
is proposed to amend clause (va) of section 28 of the Act to bring the
non-compete fee received/receivable( which are recurring in nature) in relation
to not carrying out any profession, within the scope of section 28 of the Act
i.e. the charging section of profits and gains of business or profession. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Such
receipt would be taxed under the head ‘Capital Gain’ and not under ‘Profits and
Gains from Business & Profession’. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Cost
of acquisition etc would be Nil. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Amortization
of spectrum fee for purchase of spectrum</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Government
has newly introduced spectrum fee for auction of airwaves. <o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">There
is uncertainty in tax treatment of payments in respect of Spectrum i.e. whether
spectrum is an intangible asset and the spectrum fees paid is eligible for
depreciation under section 32 of the Act or whether it is in the nature of a
'license to operate telecommunication business' and eligible for deduction under
section 35ABB of the Act.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">it
is proposed to insert a new section 35ABA in the Act to provide for tax
treatment of spectrum fee. The section seeks to provide, any capital
expenditure incurred and actually paid by an assessee on the acquisition of any
right to use spectrum for telecommunication services by paying spectrum fee
will be allowed as a deduction in equal instalments over the period for which
the right to use spectrum remains in force.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Enabling
of Filing of Form 15G/15H for rental payments</span></u></b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;"><o:p></o:p></span></u></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">it
is proposed to amend the provisions of section 197A for making the recipients
of payments referred to in section 194-I also eligible for filing
self-declaration in Form no 15G/15H for non-deduction of tax at source in
accordance with the provisions of section 197A.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">This
amendment will take effect from 1st June, 2016.</span><span style="font-family: "arial" , sans-serif; font-size: 10pt;"> </span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Change
in STT (Securities Transaction Tax):<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">STT on sale of option in securities where
option is not exercised is 0.017% of the option premium. Proposed to increase
it to 0.5%.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-left: .5in; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">The amendment will
take effect from 1st June, 2016.<o:p></o:p></span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<b><u><span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Deduction
in respect of provision for bad and doubtful debt in the case of Non-Banking
Financial companies<o:p></o:p></span></u></b></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<span style="font-family: "arial" , "sans-serif"; font-size: 10.0pt;">Till now this benefit is available only to Banks u/s
36(1)(viia)(c) of the Act. Now it has been extended to NBFCs also.</span></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
<br />
<div class="MsoNormal" style="mso-layout-grid-align: none; text-align: justify; text-autospace: none;">
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-1440554649222343902016-01-26T05:16:00.000-08:002016-01-26T05:16:08.526-08:00Republic Day Greetings. !! - Be and Feel Proud to be an Indian....<div dir="ltr" style="text-align: left;" trbidi="on">
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Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-38023861420926928102016-01-01T00:45:00.002-08:002016-01-01T00:45:25.623-08:00We on behalf of Pinkesh Chhajed & Co. wishing you all a very Happy and prosperous New year<div dir="ltr" style="text-align: left;" trbidi="on">
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Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-32810664875988995282015-12-26T09:44:00.000-08:002015-12-26T09:46:23.082-08:00Reverse Charge Mechanism under Service Tax Specifically for Goods Transport Agency<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">Dear Friends,<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">It is time to say goodbye to the year 2015. In the
entire year, we have tried to provide you the regular and important updates
regarding law, economy etc.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">Probably as a last professional update for the year
2015, we are presenting the Reverse Charge Mechanism of Service Tax
specifically (i.e. Service tax liability is on Service Receiver) specifically
covering Goods Transport Agency as it affects every trading, manufacturing and
Service industry.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">The entire article is produced here and it is
available on our website.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">Kindly find below link for the same:<br />
<a href="http://l.facebook.com/l.php?u=http%3A%2F%2Fwww.pinkeshchhajedandco.com%2Farticle-details.php%3Fid%3D1350&h=uAQGteq-eAQHfKTXmrxb9ziy8k7JE5yLzjSbGygUhkGT_YA&enc=AZMBWasHrMEmQKEzOAPc7rRGLc2dAWly3uNbmPGOEhd6ALWKSklDyQL6KwIIT5jDpGvfVdSx0Zq9VlaEPEvx3Knh1QAXW_RxAi7FDykzq4zeUMx1jM2CvkP9-Ch9iLh1ei0UbvsFC_KAKLi0Ggw7FgBadaY48l9ZiTXrkhfuNGK77A9kj3g1Yc3A1keZ8d6-JxX1mSnVtT8TLun_Bl19JYjh&s=1" target="_blank">http://www.pinkeshchhajedandco.com/article-details.php…</a><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px;">
<span style="font-family: 'Times New Roman', serif; font-size: 12pt; line-height: 115%; text-align: justify;">The
reverse charge mechanism (RCM) was first introduced effectively from 01-01-2005
vide Notification No. 36/2004-ST dt. 31-12-2004 read with Rule
2(1)(d) of Service Tax Rules, 1994.</span></div>
<div class="text_exposed_show" style="background-color: white; color: #141823; display: inline; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">With
effect from 01-07-1012 a new mechanism of reverse charge (RCM) and partial
reverse charge or joint charge (PRCM / JCM) was introduced with the
introduction of negative list regime of service tax.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Some
fundamental concepts of reverse/partial charge mechanism are;<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">1.</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
Applicability of RCM/PRCM is dependent on the status & location
of Service Receiver (SR) and Service Provider (SP) and taxability of service.
RCM does not apply on non-taxable and exempted services but applies on abated
services and where value is determined by valuation rules.<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">2.</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">
No threshold exemption of Rs. 10 lacs is available to Service
Receiver (SR) as this exemption is available to Service Providers only. (refer
NN 33/2012-St dt. 20-06-2012)<o:p></o:p></span></div>
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<b><u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></u></b></div>
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<b><u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">3. </span></u></b><u><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> Service
Receiver is liable to pay service tax under this mechanism from very first
invoice received under this category. It means SR is liable to pay ST even when
SP is within the ambit exemption limit under NN 33/2012-ST.<o:p></o:p></span></u></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">4.</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"> This
service tax liability generally has to be met in cash.<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Following
services are covered under reverse charge/partial reverse charge mechanism
under Rule 2(2)(d)(i) read with <a href="http://taxguru.in/service-tax/taxable-services-extent-service-tax-payable-thereon.html">Notification
No. 30/2012-ST</a> as updated by NN 45/2012-ST, NN 46/2012-ST & NN
10/2014-ST:<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">1.
Insurance Agent Service<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">1A.
(Banking) Recovery Agent Service (w.e.f. 11-07-2014)<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">2. Goods
Transport Agency Service<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">3.
Sponsorship Service<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">4.
Legal Service<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">5.
Arbitral Tribunal Service<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">6.
Services by Directors of the body corporate to the body corporate
(w.e.f. 11-07-2014)<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">7.
Support Services provided by Government/Local Authority<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">8.
Rent-a-Cab Service<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">9.
Manpower Supply Service<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">10.
Security Service (w.e.f 07-08-2012)<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">11.
Service portion in execution of Works Contract<o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">12.
Import of Taxable Services<o:p></o:p></span></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Detailed
analysis of Services provided by Goods Transport Agency (GTA) is provided as
below: <o:p></o:p></span></b></div>
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<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<table border="0" cellpadding="0" class="MsoNormalTable" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; width: 633px;">
<tbody>
<tr>
<td rowspan="2" style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 29.35pt;" width="39"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Sr.
No.<o:p></o:p></span></div>
</td>
<td rowspan="2" style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 57.75pt;" width="77"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Description
of service<o:p></o:p></span></div>
</td>
<td colspan="2" style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 115.55pt;" width="154"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Provided<o:p></o:p></span></div>
</td>
<td rowspan="2" style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 123.0pt;" width="164"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Percentage
of ST payable by the person <b>providing
service</b><o:p></o:p></span></div>
</td>
<td rowspan="2" style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 140.1pt;" width="187"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Percentage
of ST payable by the person <b>receiving
the service</b><o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.15pt; mso-yfti-irow: 1;">
<td style="border: solid black 1.0pt; height: 15.15pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 44.3pt;" width="59"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">By</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
</td>
<td style="border: solid black 1.0pt; height: 15.15pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 69.75pt;" width="93"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">to</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 29.35pt;" width="39"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">1.<o:p></o:p></span></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 57.75pt;" width="77"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Goods
Transport Agency (Applicable to transport by road- One who issues consignment
note)<o:p></o:p></span></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 44.3pt;" width="59"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Goods
Transport Agents located in the taxable territory<o:p></o:p></span></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 69.75pt;" width="93"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Consignor
Or Consignee who is - (a) factory, society, registered dealer of excisable
goods, body corporate, partnership firm, AOP & (b) who is liable to pay
freight either himself or through his agent<o:p></o:p></span></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 123.0pt;" width="164"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">NIL
<o:p></o:p></span></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 140.1pt;" width="187"><div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">100%<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">W.E.F.
01.04.15, payable on 30% (earlier 25%) if Cenvat Credit has not been availed
by service provider. Exemption of Gross Freight Upto Rs. 1,500/- for single
full consignment & Rs. 750/- for part consignment continues.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
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<br /></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">Reverse Charge:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"> if the person liable to pay freight falls within the
category of persons specified under Rule 2(1)(d)(i)(B), reverse charge apply.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">Under Rule 2(1)(d)(i)(B)</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"> if the person liable to pay freight is;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">(I) any <b>factory</b> registered under
or governed by the Factories Act, 1948 (63 of 1948);</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">(II) any ‘<b>society’</b> registered under the
Societies Registration Act, 1860 (21 of 1860) or under any other law for the
time being in force in any part of India;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">(III) any ‘<b>co-operative society’</b> established
by or under any law;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">(IV) any ‘<b>dealer of excisable goods’</b> who
is registered under the Central Excise Act, 1944 (1 of 1944) or the rules made
thereunder;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">(V) any ‘<b>body-corporate’</b> established,
by or under any law; or</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">(VI) any <b>‘partnership firm’ </b>whether
registered or not under any law including association of persons;</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">Any person who pays or is liable to pay freight</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"> either himself or through his agent for the
transportation of such goods by road in a goods carriage <b>is liable to
pay service tax.</b></span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;">Provided</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-style: italic;"> that when such person is located in a non-taxable territory (i.e.
in J&K or abroad), the provider of such service (i.e. GTA) shall be liable
to pay service tax.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">Non-applicability
of reverse charge i.e. GTA is liable to pay service tax:</span></b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">a.
If consigner or consignee, who pays or is liable to pay freight either himself
or through his agent, does not falls in above mentioned categories of
specified,<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">b.
If consigner or consignee, who pays or is liable to pay freight either himself
or through his agent, is located in a non-taxable territory (i.e. in J&K or
abroad), [refer Rule 2(1)(d)(B) of Service Tax Rules, 1994]<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;"><br /></span></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%;">The
Mega Exemption Notification No. 25/2012 - S.T. Dated 20.06.12 allows the
following exemptions (as relevant to the industry) –<o:p></o:p></span></b></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">“21. - Services provided by a goods transport agency
by way of transportation of –<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">(a) agricultural produce;<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">(b) goods where gross amount charged for the
transportation of goods on a consignment transported in a single goods carriage
does not exceed one thousand five hundred rupees; or<o:p></o:p></span></div>
<div style="margin-bottom: 6px; margin-top: 6px;">
</div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;"><br /></span></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; line-height: 115%; mso-bidi-font-weight: bold;">(c) goods, where gross amount charged for
transportation of all such goods for a single consignee in the goods carriage
does not exceed rupees seven hundred fifty;<o:p></o:p></span></div>
</div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-67334129652164447722015-11-06T07:27:00.001-08:002015-12-26T09:48:18.464-08:00Swachh Bharat Cess Applicability<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px;">
# Service Tax : Govt. notifies the applicability date for Swachh Bharat Cess. It is applicable w.e.f 15.11.2015 at the rate of 0.5% of the value of taxable services.</div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-4589898803399063202015-10-05T08:45:00.001-07:002015-10-05T08:45:43.782-07:00Regarding order of CBDT of extension of time limit for Audit Report and ITR filing<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px;">
We welcome the order of CBDT dated 1st October 2015 regarding extension of date for filing Audit Report and Income Tax Return.</div>
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px; margin-top: 6px;">
However, we need to rethink that whether we really need extension.</div>
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px; margin-top: 6px;">
Last year totally new TAR forms were prescribed so we were cent percent correct in obtaining the extension.</div>
<div class="text_exposed_show" style="background-color: white; color: #141823; display: inline; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;">
<div style="margin-bottom: 6px;">
This year due to unfavorable situation in Gujarat, due date for non auditable assessees were being extended suo moto by 7 days in Gujarat and then for entire country. That was the legitimate reason for extension.</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
This time in ITR and in TAR forms no significant changes been implemented as compared to last year.</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
We are well equipped with softwares and not making any reports or returns manually, so majority of the work we can complete before time except xml schema generation.</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
Also the point of Depreciation as per Companies Act 2013 is being optional for this year and that is also applicable to companies only. That has been notified long back in the month of Sept 13, so we can pre-plan it.</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
I just mean to say that we need some planning as an expert professional. Our profession is shown with great respect. We need to take the integrity of our profession to the higher and higher level day by day and year by year. We should do something that we will be ready with all planning at the earlier stage only.</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
And yes, it would be totally injustice if I forget to thank Mr <a class="profileLink" data-hovercard="/ajax/hovercard/user.php?id=100004454370712" href="https://www.facebook.com/caaniket.talati" style="color: #3b5998; cursor: pointer; text-decoration: none;">CA Aniket Talati</a>,<a class="profileLink" data-hovercard="/ajax/hovercard/user.php?id=100000651684009" href="https://www.facebook.com/durgesh.buch" style="color: #3b5998; cursor: pointer; text-decoration: none;">Durgesh Buch</a> and all the members who have contributed their valuable time and efforts in convincing judiciary for extension. Their valuable efforts cannot be ignored. We really thank and salute them. And really apologize if any one is hurted.</div>
</div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-46528699941124584312015-09-15T10:33:00.003-07:002015-09-15T10:33:45.958-07:00Relaxed Rule for Deposit from Relative - A good initiative..<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px;">
Much awaited MCA Update on Deposit From Relative By Private Limited Company:</div>
<div style="background-color: white; color: #141823; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px; margin-bottom: 6px; margin-top: 6px;">
Now a private company can accept unsecured loans apart from director even from a relative of a director of the company.<br />The only requirement is of non utilization of borrowed funds for this purpose.</div>
<div class="text_exposed_show" style="background-color: white; color: #141823; display: inline; font-family: helvetica, arial, sans-serif; font-size: 14px; line-height: 19.32px;">
<div style="margin-bottom: 6px;">
A welcome decision., Better Late than Never..!!!</div>
<div style="margin-bottom: 6px; margin-top: 6px;">
Entire notification is available at http://www.mca.gov.in/Ministry/pdf/Amendement_Rules_15092015.pdf</div>
</div>
</div>
Anonymoushttp://www.blogger.com/profile/12029790033592353278noreply@blogger.com0tag:blogger.com,1999:blog-6240290340277670948.post-32765550627763694592015-09-06T06:45:00.003-07:002015-09-06T06:45:54.905-07:00New Set of Exemptions to Pvt Ltd Companies vide Notification - GSR 464 Dtd 05-06-2015<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 16px;">Companies Act 2013 has brought away majority of the exemptions given by Companies Act 1956. </span><br />
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 16px;"><br /></span>
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 16px;">So on the one hand Govt.is trying to encourage new businesses and trying to get inflow of capital into the business and on the other hand keeping the harsh provisions for Pvt Ltd Co. </span><br />
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; line-height: 16px;"><br /></span>
<span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 16px;">Later on, Govt has realized that both can not walk on a parallel road. </span></span></span><br />
<span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 16px;"><br /></span></span></span>
<span style="background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><span style="line-height: 16px;">So, a new set of exemptions been provided as listed below.</span></span></span><br />
<br />
<div align="center">
<table border="1" cellpadding="0" class="MsoNormalTable" style="background: white; mso-cellspacing: 1.5pt; mso-padding-alt: 0in 0in 0in 0in; mso-yfti-tbllook: 1184; width: 565px;">
<tbody>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Sr. No.<o:p></o:p></b></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Chapter/ Section of the Act<o:p></o:p></b></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Particular<o:p></o:p></b></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Exemption
Provided in MCA Notification</b><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
A.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
1, Sub-clause (viii) of clause (76) of section 2.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Bare
Act Language of Section:“related party”, with reference to a company, means-
any company which is—<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
(A)
a holding, subsidiary or an associate company of such
company;
or<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
(B)
a subsidiary of a holding company to<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Holding,
Subsidiary and Associate Company will not cover under Related Party for the
purpose of section 188.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Note:- </u></b><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Although
Holding company is excluded but Director (other than independent Director),
KMP of holding company or their relative are still included
in definition of Related Party. (Section 2(76)(ix))<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification:</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Shall
not apply</u></b> with respect to section 188.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
B.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
IV, Section 43 and Section 47<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Section
43- Kind of Capital<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Section
– 47 Voting Right<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
If
anything else mentioned in MOA & AOA then <i><u>MOA & AOA
prevail over the section 43 and 47</u></i>.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification:</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Shall
not apply</u></b> where MOA & AOA of the Private Company so
provides.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
C.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
IV, Section 62(1)(a)(i) and (2)<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Bare
Act Language Earlier:</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
The
offer of Right issue of shares shall be open for minimum 15 days not
exceeding 30 days from the date of the offer within which offer made.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
In
case 90%, of the members of a private
company have given their consents in writing or in
electronic mode then <i><u>Offer Can Be Close Before 15 Days.</u></i><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Note:- </u></b><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
The
time limits cannot be increased, they can only be reduced.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Language
of Notification given at the end (S. No. 1)</u></b><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
D.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
IV, Section 62(1)(b):<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Further
Issue of Share Capital<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
For
ESOP Special Resolution Required.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
for ESOP <i><u>Ordinary Resolution</u></i> is enough.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
The
words “special resolution”, the words “ordinary resolution” shall be
substituted.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
E. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
IV- Section 67<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Restrictions
on purchase by company or giving of loans by it for purchase of its shares.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification given at the end <b>(S. No. 2)</b></u><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
F. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
V- Section-73(2) (a) (e):<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Earlier Private
Limited Company can accept deposits from the Member after follow up the
procedure mention under Section 73.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Acceptance
Of Deposits From Members Made Easier For Certain Companies</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<i>Private
Limited Company can accept deposit from the Members upto 100%</i>of aggregate
of the paid up share capital and free reserves without followings:<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
Issue Circular<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
File circular with ROC<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
Maintain deposit repayment reserve<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
Provide deposit insurance<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification is given at the end (Point no. 3)</u><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
G. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
VII<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
101- Notice of meeting.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
102- Statement to be annexed to notice.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
103- Section Quorum for meetings.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
104- Chairman of meetings. 105- Proxies.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
106- Restriction on voting rights.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
107- Voting by show of hands.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
109- Demand for poll.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
If
anything else mentioned in AOA then <i>AOA prevail over the section
101-107 & 109.</i><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Articles
of A Private Company May Override Provisions Pertaining To<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
1.
Content & Length of Notice<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
2.
Explanatory Statement<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
3.
Quorum<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
4.
Chairman<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
5.
Proxies<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
6.
Restriction on Voting Rights<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
7.
Show of Hands & Poll<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification is given at the end (Point no. 4)</u><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
H. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
VII- Section:117 (3)(g)<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<br /></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Earlier
Provision:</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Copy
of Resolution passed in pursuance of sub-section (3) of Section 179 required
to filing with ROC.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
there is <b><i><u>NO NEED TO FILE FORM MGT-14</u></i></b> for the
purposes of resolutions passed u/s 179(3) read with rule 8 of <a href="http://taxguru.in/company-law/companies-act-2013-companies-meetings-board-powers-rules-2014.html" target="_blank">Companies (Meeting of Board & its power) Rules, 2014</a><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Provisions
of Section 117(3)(g) will not apply on Private Limited Company.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
I. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
X- Section 141 (3)(g):<b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Earlier <b><i><u>Auditor
can’t be appoint as auditor</u></i></b> in more than 20 (Twenty)
Companies.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
under the limit of 20 (Twenty) Companies following will not include:<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
one person companies,<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
dormant companies,<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
small companies, and<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
·
Private Companies having paid-up share capital
less than one hundred crore rupees”.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Limit
of 20 Companies only Includes:-<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
1.
Public Companies<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
2.
Private Companies having paid up capital of Rs. 100 Crore or more<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
J. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XI- Section 160-<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Candidature
Not Required For Appointment of Director at General Meeting<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
there is no need to deposit Rs. 100,000/- by the Director at the time of
appointment.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
K. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XI- Section 162-<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Appointment
of directors Need not to be voted individually.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
more than one director can be appoint via a single resolution.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
L. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XII- Section 180-<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Restrictions
on powers of Board Not Apply<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
there is <b><i><u>no need to pass “Special Resolution”</u></i></b> for
the purposes of passing of Resolution mentioned under Section 180.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Example:</b><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
1. Borrow
exceeding paid up capital & free reserves.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
2. Sell/lease/dispose
off undertaking<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
M. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XII- Section 184(2)<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Disclosure
of interest by director.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now <b><i><u>Interested
directors can participate in the meeting</u></i></b> and vote in the
meeting after disclosure of his interest.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Note:-</u></b><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
He
Cannot be counted in Quorum (Section 174(3) explanation)<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
N. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XII- Section 185-<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Loan to
Director was earlier not allowed.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><i><u>Loan
to director are allowed for Private Limited Companies</u></i></b> if its
fulfill the below mentioned conditions:<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
1.
Body Corporate should not be Shareholder<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
2. Not
borrowed money from Bank/ Financial Institution/ Body Corporate
exceeding lower of the following:-<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
i.
Twice its Paid up capital<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
ii.
Rs. 50 crore<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
3. No
repayment default subsisting of such borrowings at time of giving loan<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Note:</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Giving
of loans/ guarantee/security to Group Companies now possible.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Language
of Notification is given at the end (Point no. 5)</u><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
O. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XII- second proviso to section 188 (1):<b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<u>Bare
Act Language Earlier:</u><o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
No
member of the company shall vote on such Resolutions, to approve any contract
or arrangement which may be entered into by the Company, if such member is
related party.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Restriction
On Voting Right In General Meeting In Case Of Related Party Transaction Not
Applicable:Now This proviso will not apply on Private Limited Company.<b><i><u>“Even
if, Member is related then also he can vote on such resolution required to be
pass u/s 188 in GM.</u></i></b><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 30.75pt;" width="41">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
P. <b> </b><o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 89.25pt;" width="119">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Chapter
XIII-section 196(4) & (5):<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 159.75pt;" width="213">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Appointment
of MD, WTD & Manager.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 208.5pt;" width="278">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Now
there is no need to Pass Resolution in General Meeting for appointment of
Managerial Personnel and no need to file form MR-1.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
Managerial
Personnel can be appoint in Private limited Company without following:<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
1. Shareholder’s
Ratification in not required.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
2. Schedule
V not applicable.<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
3. MR-1
not required to be filed<o:p></o:p></div>
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
4. T&C
of appointment, remuneration not mandatory to
be mentioned in resolution<o:p></o:p></div>
</td>
</tr>
</tbody></table>
<br />
</div>
<div align="center">
<div align="center">
<table border="1" cellpadding="0" class="MsoNormalTable" style="background: white; mso-cellspacing: 1.5pt; mso-padding-alt: 0in 0in 0in 0in; mso-yfti-tbllook: 1184; width: 568px;">
<tbody>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 41.25pt;" width="55">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
S.
N.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 432.75pt;" width="577">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>LANGUAGE
OF NOTIFICATION</b><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 41.25pt;" width="55">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
1.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 432.75pt;" width="577">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Chapter
IV, sub-clause (i) of clause (a) of sub-section (1) and sub-section (2) of
section 62.</b>Shall apply with following modifications:-In clause (a), in
sub-clause (i), the following proviso shall be inserted,
namely:-Provided that notwithstanding anything
contained in this sub- clause and sub-section (2) of this section, in case
90% , of the members of a
private company have given their
consents in writing or in electronic mode, the periods lesser than
those specified in the said sub- ¬clause or sub-section shall apply<b>.</b><o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 41.25pt;" width="55">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
2.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 432.75pt;" width="577">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Chapter
IV, section 67.</b>Shall not apply to private companies -I. in
whose share capital another body corporate has invested any
money;II. if the borrowings of such a company from banks or
financial institutions or any body corporate is less than twice its paid up
share capital or fifty crore rupees, whichever is lower; andIII.
such a company is not in default in repayment of such borrowings subsisting
at the time of making transactions under this section.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 41.25pt;" width="55">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
3.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 432.75pt;" width="577">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Chapter
V, clauses (a) to (e) of subsection (2) of section 73.</b>Prohibition Shall
not apply to a private company which accepts from its members monies not
exceeding one hundred per cent, of aggregate of the paid up share capital and
free reserves, and such company shall file the details of monies so accepted
to the Registrar in such manner as may be specified.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 41.25pt;" width="55">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
4.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 432.75pt;" width="577">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b>Chapter
VII, sections 101 to 107 and section 109.</b>Shall apply
unless otherwise specified in respective sections or the
articles of the company Provide
otherwise.<o:p></o:p></div>
</td>
</tr>
<tr>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 41.25pt;" width="55">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
5.<o:p></o:p></div>
</td>
<td style="border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 0in 0in 0in 0in; width: 432.75pt;" width="577">
<div class="MsoNormal" style="text-align: justify; text-justify: inter-ideograph;">
<b><u>Chapter
XII, section 185 </u></b>Provisions of Section 185 not apply to a
private company if its fulfill the following below mention conditions-<b><br />
</b>(a) in whose share capital another body corporate has invested any money;<b><br />
</b>(b) if the borrowings of such a company from banks or financial
institutions or anybody corporate is less than twice of its paid up share
capital or fifty crore rupees, whichever is lower; and(c) such a
company has no default in repayment of such borrowings subsisting at the time
of making transactions under this section.<o:p></o:p></div>
</td>
</tr>
</tbody></table>
<br />
</div>
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