Friday, January 24, 2014

No TDS on Service Tax if shown separately

CIRCULAR NO. 1/2014 [, DATED 13-1-2014
Subject: TDS under Chapter XVII-B of the Income-tax Act, 1961 on service tax componentcomprised in the payments made to residents - clarification regarding
The Board had issued a Circular No.4/2008 dated 28-04-2008 wherein it was clarified that tax is to be deducted at source under section 194-I of the Income-tax Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent paid/payable without including the service tax component. Representations/letters has been received seeking clarification whether such principle can be extended to other provisions of the Act also.
2. Attention of CBDT has also been drawn to the judgement of the Hon'ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure (Income-tax Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the agreement between the payer and the payee, the amount of service tax is to be paid separately and was not included in the fees for professional services or technical services, no TDS is required to be made on the service tax component u/s 194J of the Act.
3. The matter has been examined afresh. In exercise of the powers conferred under section 119 of the Act, the Board has decided that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/payable without including such service tax component.
4. This circular may be brought to the notice of all officer for compliance
F.NO.275/59/2012-IT(B)]

Format of new explanatory statement mandated u/s 102 of the Companies Act, 2013 wef 12th Sep 2013


Note:

1.      A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ABOVE MEETING IS ENTITLED TO APPOINT A PROXY AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. PROXY, IN ORDER TO BE EFFECTIVE, SHOULD BE RECEIVED BY THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE MEETING.

2.      Shareholders are requested to immediately notify the Company of any change in their address.

3.      Explanatory Statement pursuant to the provisions of section 102 of the Companies Act, 2013 for material facts related to Special Business is annexed herewith.

 

Annexure to the Notice


Explanatory Statement pursuant to the provisions of Section 102 of the Companies Act, 2013 in respect of the special business


Item No. 1:

These Changes are in view with the change in main objects of the Company which has included in its fold the work to act as  business correspondent/business facilitator of scheduled commercial bank for fulfillment of Financial Inclusion Plan, to develop, market and make arrangement of bill collection of various Companies, Public Sector Enterprises and Corporates and other outfits; to develop, manage and market retail outlets for bill collection, commodity marketing, online ticketing, online tourism booking etc., prepaid mobile recharge and trading of various commodities.

It is most apt that the name of the Company should reflect the changed main object of the Company and hence the resolution for change of name is proposed.

The Registrar of Companies, West Bengal has confirmed vide their communication dated 12.11.2013, that the new name is available for registration under section 20 of the Companies Act, 1956, and subject to the resolution being passed, an application will be made to the Registrar of Companies for approval to the change of name under section 21 of the Act.

If the change of name is approved, the share certificates already issued will be called back and will be exchanged with the new one bearing the changed name. The old share certificates will be cancelled.
The nature of concern or interest, financial or otherwise of:

(i)                 Every director: No financial interest; the interest is only to the extent of shareholding because the directors are also the shareholders of the Company.
(ii)               KMP – Not Applicable.
(iii)             Relatives of the Directors: No interest, financial or otherwise.







It is to be noted that this resolution does not relate to or affects any other Company.

The Board recommends the passing of this resolution by way of special resolution.



Place:                                                                                 By order of the Board
Registered Office:

Date: 18.11.2013                    

Main objects of Pharmaceuticals Memorandum of Association


Main objects of Pharmaceuticals Memorandum of Association.
1.  To manufacture, formulate, process, develop, refine, import, export, wholesale and/or retail trade all kinds of pharmaceuticals, antibiotics, drugs, medicines, biologicals, neutraceuticals, healthcare, ayurvedic and dietary supplement products, medicinal preparations, vaccines, chemicals, chemical products, dry salters, mineral waters, wines, cordials, liquors, soups, broths and other restoratives or foods and also to deal in medicinal goods such as surgical instruments, contraceptives, photographic goods, oils, perfumes, cosmetics, patent medicines, soaps, artificial limbs, hospital requisites, proprietary medicines, veterinary medicines and tinctures extracts and to carry on the business of vialling, bottling, repacking, processing of tablets, capsules, syrups, injections, ointments, etc. and also to carry on the business of chemists, druggists, buyers, sellers, agents, distributors and stockists of all kinds of pharmaceuticals and allied products. 
2.  To carry on in India or abroad business of importers, merchants, general order suppliers, commission agents, representatives, distributors, royalty owner, contractors, auctioneers, indent agents, passage agents, factors, organisers, concessionaries, sale agents, sub agents, and insurance agents, in connection with the business as referred to in sub-clause (1) above.
3.  To acquire, establish, run and maintain hospital(s) for the reception and treatment of persons suffering from illness, or mental defect or for the reception and treatment of persons during convalescence, or of persons requiring medical attention, or rehabilitation, to provide medical relief to the public in all branches of medical sciences by all available means, to run, own, manage, administer, Diagnostic Centres, Scan Centres, Nursing Homes, Clinics, Dispensaries, Maternity Homes, Child Welfare and Family Planning Centres, Clinical, Pathological testing laboratories, X-Ray and ECG Clinics in India and abroad, to act as Consultant and Advisors providing technical know-how, technical services and allied services for the establishment, operation and improvement of Nursing Homes, Hospitals, Clinics, Medical Institutions, Medical Centres, Diagnostics Centres and Laboratories In India and abroad, to carry out medical research by engaging in the research and development of all fields of medical sciences, and in therapies of medical treatment, so as to afford medical relief in a better way, to provide  research facilities for carrying on research, basic and applied, in all systems and discipline or medical and surgical knowledge, to develop pharmacological standardization of indigenous medical plant,  to encourage and discover new medical and/or surgical management of disease and affections and to investigate and make known the nature and merits of investigations and findings and research in the said field and to acquire any processes upon such terms as may seem expedient and to improve the same and undertake the manufacture of any product developed, discovered or improved and/or to give licences for the manufacture for the same to other and either to market the same or to grant licenses to other to market the same on such terms as may be deemed fit, to provide, encourage, initiate or promote facilities for the discovery, improvement or development of new method of diagnosis, understanding and treatment of diseases. 
4.  To establish and run health portal, web sites, medical transcription centres, data processing/computer centres, retail chains, e-commerce, and to offer wholesale, retail, e-commerce facilities, health constancy and data processing and other services that are normally offered by health portal, web sites, medical transcription centres, data processing/computer centres, retail chains, etc. to individuals, business and other type of customers and to impart training of Electronic data processing, Computer Software and Hardware, to customers and others and to carry on the business of manufacturers, producers, makers, convertors, repairers, importers, exporters, traders, buyers, sellers, retailers, wholesalers, suppliers, indenters, packers, movers, preservers, stockists, agents, sub-agents, merchants, distributors, consignors, jobbers, brokers, concessionaires or otherwise deal in computers, data processors, calculators, tabulators, machines, appliances, accessories, devices and instruments, of every kind and activation for use for industrial, commercial, scientific, medical, statistical, or any other purpose and any product or products thereof or materials, articles, software and hardware used in the operation of or otherwise in connection therewith or ancillary thereof. 



OR

The objects for which the Company is established are:



(a)
To carry on all or any of the businesses of manufacturers, buyers, sellers, and distributing agents of and dealers in all kinds of patent, pharmaceutical, medicinal, and medicated preparations, patent medicines, drugs, herbs, and of and in pharmaceutical, medicinal, proprietary and industrial preparations, compounds, and articles of all kinds; and to manufacture, make up, prepare, buy, sell, and deal in all articles, substances, and things commonly or conveniently used in or for making up, preparing, or packing any of the products in which the Company is authorised to deal, or which may be required by customers of or persons having dealings with the Company.


(b)
To invest in pharmaceutical and related assets, including, amongst other items, investments in pharmaceutical companies, products, businesses, divisions, technologies, devices, sales force and other marketing capabilities, development projects and related activities, licences, intellectual and similar property rights, premises and equipment, royalty rights and all other assets needed to operate a pharmaceuticals business.


(c)
To establish, maintain and operate laboratories for the purpose of carrying on chemical, physical and other research in medicine, chemistry, industry or other unrelated or related fields.


(d)
To invest (including long-term investments in, and acquisitions of, the shares of pharmaceutical companies) any monies of the Company in such investments and in such manner as may from time to time be determined, and to hold, sell or deal with such investments and generally to purchase, take on lease or in exchange or otherwise acquire any real and personal property and rights or privileges.


(e)
To develop and turn to account any land acquired by the Company or in which it is interested and in particular by laying out and preparing the same for building proposes, constructing, altering, pulling down, decorating, maintaining, fitting up and improving buildings and conveniences, and by planting, paving, draining, farming, cultivating, letting on building lease or building agreement and by advancing money to and entering into contracts and arrangements of all kinds with builders, tenants and others.


(f)
To acquire and hold shares and stocks of any class or description, debentures, debenture stock, bonds, bills, mortgages, obligations, investments and securities of all descriptions and of any kind issued or guaranteed by any company, corporation or undertaking of whatever nature and wheresoever constituted or carrying on business or issued or guaranteed by any government, state, dominion, colony, sovereign ruler, commissioners, trust, public; municipal, local or other authority or body of whatsoever nature and wheresoever situated and investments, securities and property of all descriptions and of any kind, including real and chattel real estates, mortgages, reversions, assurance policies, contingencies and choses in action.


(g)
To remunerate by cash payments or allotment of shares or securities of the Company credited as fully paid up or otherwise any person or company for services rendered or to be rendered to the Company or any parent or subsidiary body corporate whether in the conduct or management of its business, or in placing or assisting to place or guaranteeing the placing of any of the shares of the Company’s capital, or any debentures or other securities of the Company or in or about the formation or promotion of the Company.


(h)
To purchase for investment only property of any tenure and any interest therein, and to make advances upon the security of land or other similar property or any interest therein.


(i)
To acquire by purchase, exchange, lease, fee farm grant or otherwise, either for an estate in fee simple or for any less estate or other estate or interest, whether immediate or reversionary and whether vested or contingent, any lands, tenements or hereditaments of any tenure, whether subject or not to any charges or encumbrances, and to hold, farm, work and manage and to let, sublet, mortgage or charge land and buildings of any kind, reversions, interests, annuities, life policies, and any other property real or personal, movable or immovable, either absolutely or conditionally, and either subject or not to any mortgage, charge, ground rent or other rents or encumbrances.


(j)
To erect or secure the erection of buildings of any kind with a view of occupying or letting them and to enter into any contracts or leases and to grant any licences necessary to effect the same.


(k)
To maintain and improve any lands, tenements or hereditaments acquired by the Company or in which the Company is interested, in particular by decorating, maintaining, furnishing, fitting up and improving houses, shops, flats, maisonettes and other buildings and to enter into contracts and arrangements of all kinds with tenants and others.


(l)
To sell, exchange, mortgage (with or without power of sale), assign, turn to account or otherwise dispose of and generally deal with the whole or any part of the property, shares, stocks, securities, estates, rights or undertakings of the Company, real, chattels real or personal, movable or immovable, either in whole or in part, upon whatever terms and whatever consideration the Company shall think fit.


(m)
To take part in the management, supervision, or control of the business or operations of any company or undertaking, and for that purpose to appoint and remunerate any directors, accountants, or other experts or agents to act as consultants, supervisors and agents of other companies or undertakings and to provide managerial, advisory, technical, design, purchasing and selling services.


(n)
To make, draw, accept, endorse, negotiate, issue, execute, discount and otherwise deal with bills of exchange, promissory notes, letters of credit, circular notes, and other negotiable or transferable instruments.


(o)
To redeem, purchase, or otherwise acquire in any manner permitted by law and on such terms and in such manner as the Company may think fit any shares in the Company’s capital.


(p)
To guarantee, support or secure whether by personal covenant or by mortgaging or charging all or any part of the undertaking, property and assets (present and future) and uncalled capital of the Company or by both such methods the performance of the obligations of, and the repayment or payment of the principal amounts of and the premiums, interest and dividends on any security of any person, firm or company including (without prejudice to the generality of the foregoing) any company which is for the time being the Company’s holding company or subsidiary as defined by Section 155 of the Companies Act 1963 or another subsidiary as defined by the said Section of the Company’s holding company or otherwise associated with the Company in business notwithstanding the fact that the Company may not receive any consideration, advantage or benefit, direct or indirect from entering into such guarantee or other arrangement or transaction contemplated herein.


(q)
To lend the funds of the Company with or without security and at interest or free of interest and on such terms and conditions as the directors shall from time to time determine.


(r)
To raise or borrow or secure the payment of money in such manner and on such terms as the directors may deem expedient whether or not by the issue of bonds, debentures or debenture stock, perpetual or redeemable, or by mortgage, charge, lien or pledge upon the whole or any part of the undertaking, property, assets and rights of the Company, present or future, including its uncalled capital and generally in any other manner as the directors shall from time to time determine and to enter into or issue interest and currency hedging and swap agreements, forward rate agreements, interest and currency futures or options and other forms of financial instruments, and to purchase, redeem or pay off any of the foregoing and to guarantee the liabilities of the Company or any other person, and any debentures, debenture stock or other securities may be issued at a discount, premium or otherwise, and with any special privileges as to redemption, surrender, transfer, drawings, allotments of shares; attending and voting at general meetings of the Company, appointment of directors and otherwise.



(s)
To accumulate capital for any of the purposes of the Company, and to appropriate any of the Company’s assets to specific purposes, either conditionally or unconditionally, and to admit any class or section of those who have any dealings with the Company to any share in the profits thereof or in the profits of any particular branch of the Company’s business or to any other special rights, privileges, advantages or benefits.


(t)
To reduce the share capital of the Company in any manner permitted by law.


(u)
To make gifts or grant bonuses to officers or other persons who are or have been in the employment of the Company and to allow any such persons to have the use and enjoyment of such property, chattels or other assets belonging to the Company upon such terms as the Company shall think fit.


(v)
To establish and maintain or procure the establishment and maintenance of any pension or superannuation fund (whether contributory or otherwise) for the benefit of and to give or procure the giving of donations, gratuities, pensions, annuities, allowances, emoluments or charitable aid to any persons who are or were at any time in the employment or service of the Company or any of its predecessors in business, or of any company which is a subsidiary of the Company or who may be or have been directors or officers of the Company, or of any such other company as aforesaid, or any persons in whose welfare the Company or any such other company as aforesaid may be interested and the wives, widows, children, relatives and dependants of any such persons and to make payments towards insurance and assurance and to form and contribute to provident and benefit funds for the benefit of such persons and to remunerate any person, firm or company rendering services to the Company, whether by cash payment, gratuities, pensions, annuities, allowances, emoluments or by the allotment of shares or securities of the Company credited as paid up in full or in part or otherwise.


(w)
To employ experts to investigate and examine into the conditions, prospects, value, character and circumstances of any business concerns, undertakings, assets, property or rights.


(x)
To insure the life of any person who may, in the opinion of the Company, be of value to the Company, as having or holding for the Company interests, goodwill, or influence or otherwise and to pay the premiums on such insurance.


(y)
To distribute either upon a distribution of assets or division of profits among the Members of the Company in bind any property of the Company, and in particular any shares, debentures or securities of other companies belonging to the Company or of which the Company may have the power of disposing.


(z)
To give, whether directly or indirectly, and whether by means of a loan, guarantee, the provision of security or otherwise, any financial assistance for the purpose of or in connection with a purchase or subscription made or to be made by any person of or for any shares in the Company, or, where the Company is a subsidiary company, in its holding company.


(aa)
To do and carry out all or any of the foregoing objects in any part of the world and either as principals, agents, contractors, trustees or otherwise, and either by or through agents, trustees or otherwise and either alone or in partnership or in conjunction with any other company, firm or person, provided that nothing herein contained shall empower the Company to carry on the businesses of insurance.


(bb)
To apply for, purchase or otherwise acquire any patents, brevets d’invention, licences, trade marks, industrial designs, know-how, concessions and other forms of intellectual property rights and the like conferring any exclusive or non-exclusive or limited or contingent rights to use, or any secret or other information as to any invention or process of the Company, or the acquisition of which may seem calculated directly or indirectly to benefit the Company, and to use, exercise, develop, or grant licences in respect of, or otherwise turn to account the property, rights or information so acquired.


(cc)
To enter into partnership or into any arrangement for sharing profits, union of interests, co-operation, joint venture, reciprocal concession or otherwise with any person or company carrying on or engaged in or about to carry on or engage in any business or transaction which the Company is authorised to carry on or engage in or any business or transaction capable of being conducted so as directly or indirectly to benefit the Company.


(dd)
To acquire and undertake the whole or any part of the undertaking, business, property and liabilities of any person or company carrying on any business which the Company is authorised to carry on or which is capable of being conducted so as to benefit the Company directly or indirectly or which is possessed of assets suitable for the purposes of the Company.


(ee)
To adopt such means of making known the Company and its products and services as may seem expedient.


(ff)
To acquire and carry on any business carried on by a subsidiary or a holding company of the Company or another subsidiary of a holding company of the Company.


(gg)
To promote any company or companies for the purpose of acquiring all or any of the property and liabilities of this Company or for any other purpose which may seem directly or indirectly calculated to benefit this Company.


(hh)
To amalgamate with, merge with or otherwise become pact of or associated with any other company or association in any manner permitted by law.


(ii)
To do and carry out all such other things, except the issuing of policies of insurance, as may be deemed by the Company capable of being conveniently carried on in connection with the above objects or any of them or calculated to enhance the value of or render profitable any of the Company’s properties or rights.



Main objects Fashion industry

To carry on the business to initiate, establish, research, design, create, assist, consult, arrange, organise, execute, run, develop, promote, coordinate, manage, maintain, administrate, institutes, training schools, organisations, academies,  coaching centres, classes,  fashion shows, exhibitions, museums, provide services of fashion designers and to act as a consultant, professional guide, coach, trainer, expert advisor, tutor, demonstrator, educator, mentor for designing, innovating, researching, creating, decorating, printing, dying, colouring, weaving, repairing, rebounding, manufacturing of cloths, fashion wares, head gears, eye wares, foot wares, accessories, ornaments, etc.

Main objects Transport company

1.    To establish, organize, manage, run, charter, conduct, contract, develop, handle, own, operate and to do business as fleet carriers, transporters, in all its branches on land, air, water, & space, for transporting goods, articles, or things on all routes and lines on National and International level subject to law in force through all sorts of carries like trucks, lorries, trawlers, dumpers, coaches, tankers, tractors, haulers, jeeps, trailers, motor buses, omnibuses, motor taxis, railways, tramways, aircraft's, hovercrafts, rockers, space shuttles, ships, vessels, boats, barges and so on whether propelled by petrol, diesel, electricity, steam oil, atomic power or any other form of power.
2.    To carry on the business as agents, distributors, merchants, importers, exporters, traders, contractors, ware housemen and to establish, maintain, operate and/or run agency lines in goods, stores, consumable items, durable merchandise, chattels and effects of every kind and description in any place in the world and without limiting the generality of the above, to carry on business as Selling Agents, Buying Agents, Factors, Carriers, Jath Merchants, Landing Clearing and Forwarding Agents, Commission Agents, Insurance Agents, Distributors and Stockiest, Brokers and/ or in any other capacity.
3.    To carry on the business of clearing and forwarding agents, courier and cargo handlers, handling and haulage contractors, warehousemen, common carriers by land, rail, water and air, container agents, to handle goods and passengers within the country and outside and to carry on the business of tour and travel operators and to act as customs agents, landing agents, stevedores and longshoremen.

Getting a PAN made stricter source Business standard

VRISHTI BENIWAL
New Delhi, 24 January
It will not be easy to get a Permanent Account Number (PAN) now, as the Income Tax (I- T) department on Fridayput more conditions for applicants in a bid to crack down on fraudsters.
“The procedure for PAN allotment will undergo a change from February 3. Every applicant will have to submit self- attested copies of proof of identity, address and date of birth documents and also produce original documents for verification,” the Central Board of Direct Taxes ( CBDT) said on Friday.
It said the original documents would be returned after verifying the self- attested copies attached with the application form received at the PAN facilitation centre.
An official said the decision was taken after the department noticed a lot of cases where people were giving false information in the application to get a duplicate PAN in some cases and to get the card even when they were not eligible for it in other cases.
About 1.4 million new PAN cards are issued every year by the department, which is able to verify details of only 0.2 per cent applicants.
Experts said the department’s intention behind the move was to check mala fide cases but it would cause problems for genuine applicants.
“The department is asking for self attested as well as original documents ( for verification only), to be 100 per cent sure about their veracity. But this will make it more difficult to obtain PAN, particularly for foreigners. People might not be comfortable sharing original documents with consultants.
There are practical challenges which might unfold in the coming days and we hope for more clarity,” said Amarpal Chadha, tax partner, EY.
The official agreed it might cause discomfort to some people but the intention was to make the system foolproof. CBDT had found some foreign nationals were using PAN as proof of identity. In most of these cases, a fake certificate of identity and address signed by a Member of Parliament was issued.
By I- T Rules, a depository account statement, bank account statement/ passbook, ration card, passport, voter identity card, driving licence, property tax assessment order and a certificate signed by a Member of Parliament or a Member of Legislative Assembly or municipal councillor or a gazetted officer are accepted as proof of identity as well as address. Currently, about 140 million people have a PAN card in India, while only 34 million of them file their income tax returns. Many people who don’t file returns, get a PAN as it works as an identity proof at many places.
Of the total PAN allotment, 96 per cent are under the category of ‘ Individual’ applicants and the highest fake/ duplicates are also observed under this category.
In March 2011, after finding ahuge mismatch between the number of PAN holders and the number of tax return filings, the Comptroller & Auditor General had asked the I- T department to ensure that asingle taxpayer was not issued multiple cards.
I- T dept wants original ID proof; experts warn of practical challenges

Where returned income filed under section 153A is accepted by the AO, there will be no concealment of income and, consequently, penalty u/s. 271(1)(c) cannot be imposed - Tri

  1. ITAT MUMBAI - Income Tax
    Penalty u/s 271(1)(c) - Held that:- As per section 271(1)(B) - When any amount is added or disallowed then only a direction would suffice for the levy of penalty u/s. 271(1)(c) of the Act - But in the instant case, in respect of the additional income neither any amount is added nor disallowed by the AO , whatever has been returned by the assessee is assessed to tax except an addition of Rs. 90,000/- which was subsequently deleted by the Ld. CIT(A) - Decided in favour of assessee.

    Penalty u/s 271(1)(c) for A.Y. 2000-01 to 2005-06 - Held that:- Following Prem Arora Vs DCIT - ITAT DELHI] - The concealment of income has to be seen with reference to additional income brought to tax over and above income returned by the assessee in response to notice issued u/s. 153A - For the purpose of imposition of penalty u/s. 271(1)(c) resulting as a result of search assessments made u/s. 153A, the original return of income filed u/s. 139 cannot be considered - in case of search initiated after 1.6.2003 a return of income is always filed on issue of notice u/s. 153A - The penalty u/s. 271(1)(c) is imposable when there is variation in assessed and return income. If there is no variation, there will be no concealment. When there is no concealment, question of levy of penalty u/s. 271(1)(c) will not arise. This is settled position of law - Where returned income filed under section 153A is accepted by the AO, there will be no concealment of income and, consequently, penalty u/s. 271(1)(c) cannot be imposed - Decided in favour of assessee.

Tax Audit applicable to Partners on Income from Partnership Firm Inbox x

The short issue in this appeal is whether or not penalty under section 44AB will also be attracted in the case in which the professional income of the assessee received from partnership firm of Chartered Accountants is taxable under the head “income from business or profession”. In the relevant previous year, the assessee, a Chartered Accountant, received Rs.32,76,000/- from M/s. Lovelock & Lewes of which she was a partner. In terms of section 28(v), the said income was taxable under the head “Profits & Gains from Business or Profession”. The Assessing Officer was of the view that the assessee ought to have obtained the audit report under section 44AB of the Income Tax Act and her failure to do so, invited penalty under section 271B of the Act. The assessee’s contention, on the other hand, was that since the assessee was not carrying out any independent profession and the taxability of the said income received under the head “profits and gains from business or profession” was only due to technical   requirement of section 28(v) of the Act the provisions of section 44AB are not attracted. The Assessing Officer rejected this plea of the assessee on the basis of a decision of this Tribunal in the case of Amal Ganguly (ITA No. 2135/Kol./2008, Assessment Year 2003-04) vide order dated 20.02.2009. The Assessing Officer was of the view that since the plea raised by the assessee is not acceptable to the jurisdictional Tribunal, the same cannot be accepted by him. Respectfully following the view of the Tribunal and thus holding that the assessee ought to have got her accounts audited under section 44AB of the Act, the Assessing Officer imposed penalty of Rs.16,380/- under section 271B of the Act. Aggrieved, the assessee carried the matter in appeal before ld. CIT(Appeals) but without any success. Ld. CIT(Appeals) also took note of the decision of the Coordinate Bench of this Tribunal, which covered the issue against the assessee. The assessee is not satisfied and is in further appeal before us.
INCOME TAX APPELLATE TRIBUNAL, KOLKATA
Before Shri Pramod Kumar (Accountant Member),
and Shri George Mathan (Judicial Member)
I.T.A. No.: 703/ Kol. / 2012 – Assessment year : 2006-07
Usha A. Narayanan Vs. Deputy Commissioner of Income Tax
Date of pronouncing the order : March 25, 2013
ORDER
Per Pramod Kumar:
1. By way of this appeal, the assessee-appellant has challenged correctness of learned Commissioner of Income Tax (Appeals)’s order dated 16th March, 2012, in the matter of penalty under section 271B of the Income Tax Act, 1961, for the assessment year 2006-07, on the following grounds:-
(1) The ld. CIT(A) erred in confirming the penalty u/s. 271B imposed on appellant without considering the fact and circumstance of the case.
(2) The ld. CIT(A) erred in not distinguishing the income from profession by an individual professional and the income from profession by a partner of a professional firm (which consists partners salary, commission, share of profit as per Partnership Deed) in the light of provision of income Tax Act, 1961 vis-à-vis Indian Partnership Act, 1932.
2. When this appeal was called out for hearing, none appeared for the assessee nor there was any adjournment petition. Even on earlier occasions, the assessee was unrepresented. In this view of the matter and as pointed out by ld. Departmental Representative that the issue is a covered matter, we are proceeding the case ex-parte qua the assessee and disposing the matter on the basis of arguments of ld. D.R., material on record and binding judicial precedence on the issue.
3. The short issue in this appeal is whether or not penalty under section 44AB will also be attracted in the case in which the professional income of the assessee received from partnership firm of Chartered Accountants is taxable under the head “income from business or profession”. In the relevant previous year, the assessee, a Chartered Accountant, received Rs.32,76,000/- from M/s. Lovelock & Lewes of which she was a partner. In terms of section 28(v), the said income was taxable under the head “Profits & Gains from Business or Profession”. The Assessing Officer was of the view that the assessee ought to have obtained the audit report under section 44AB of the Income Tax Act and her failure to do so, invited penalty under section 271B of the Act. The assessee’s contention, on the other hand, was that since the assessee was not carrying out any independent profession and the taxability of the said income received under the head “profits and gains from business or profession” was only due to technical   requirement of section 28(v) of the Act the provisions of section 44AB are not attracted. The Assessing Officer rejected this plea of the assessee on the basis of a decision of this Tribunal in the case of Amal Ganguly (ITA No. 2135/Kol./2008, Assessment Year 2003-04) vide order dated 20.02.2009. The Assessing Officer was of the view that since the plea raised by the assessee is not acceptable to the jurisdictional Tribunal, the same cannot be accepted by him. Respectfully following the view of the Tribunal and thus holding that the assessee ought to have got her accounts audited under section 44AB of the Act, the Assessing Officer imposed penalty of Rs.16,380/- under section 271B of the Act. Aggrieved, the assessee carried the matter in appeal before ld. CIT(Appeals) but without any success. Ld. CIT(Appeals) also took note of the decision of the Coordinate Bench of this Tribunal, which covered the issue against the assessee. The assessee is not satisfied and is in further appeal before us.
4. We see no reason to take any contrary view other than the view so taken by the Coordinate Bench of this Tribunal in the case of Amal Ganguly (supra). Respectfully following the said decision, we uphold the action of authorities below and decline to interfere in the matter.
5. In the result, the appeal is dismissed. Order pronounced in the open Court on 25th day of March, 2013.
 

New visa guidelines

Revised guidelines on Business Visa and Employment Visa
 
Background
The Government of India (Ministry of Home Affairs – “MHA”) has recently come out with certain amendments relating to Business Visas and Employment Visas. However, no changes have been introduced in the guidelines of Project Visa. The highlights of the key changes made in Business visa and Employment visa have been sumarized below:
 
Amendments
 
1.             Business Visa – “B-Visa” – No changes have been introduced in the revised guidelines pertaining to the purpose and conditions to be fulfilled for grant of B-Visa. However, the following additions have been made to the guidelines of B-Visa:
 
1.1          Grant of Business Visa to Chinese Nationals
i.              A 6 months multiple entry B-Visa (extendable to 1 year) can be granted to a Chinese national who has a letter of invitation from a ‘Recognized Indian Organization’ to stay for a period less than 90 days on each visit in India. ‘Recognized Indian Organization’, means recognized chambers of commerce or industry associations or other trade bodies, public sector undertakings, government approved joint ventures, liaison offices or private sector companies who are members of a recognized chamber of commerce or industry association or other trade body.
ii.             A 60 days single entry visa (extendable upto 180 days) can be granted to a Chinese national who produces a letter of request from a duly authorized Chinese Organization. ‘Duly authorized Chinese Organization’ means Ministries and Commissions of State Council, the Governments of all Provinces, Autonomous Regions and Municipalities directly under the Central Government, and Foreign Offices & Bureaus of Economy and Commerce thereunder and departments and units recognized by the Department of Consular Affairs of the Ministry of Foreign Affairs of the People’s Republic of China.
iii.            A short term single entry B-Visa can be granted to a Chinese national (for a period not exceeding 60 days) who cannot produce either of the above documents, provided the Head of Mission/Head of Post or any officer of the Mission/Post designated by the Head of Mission/Head of Post is satisfied that the intention is for genuine business-related activities.
 
B-Visa of Chinese nationals can be extended only by the Ministry of Home affairs, on a case to case basis.
 
1.2          Grant of Business Visa and Temporary Visitor’s visa to Japanese nationals
 
i.                     Multiple entry business visas valid up to six months, with the period of stay up to one hundred eighty consecutive days, can be issued to nationals of Japan who travel to India on a temporary visit to establish industrial/ business venture or to explore possibilities of setting up industrial/business venture or for purchase / sale of industrial products, or for purpose of trade and other short term business related activities (not employment).
ii.             5 years multiple B-Visas can be issued to Japanse nationals who travel on a temporary visit to India on business purpose with receipt of a letter of request from a duly recognized company or employer of the country or on a request from recognized chambers of commerce and industry and business organizations of the country. However, the stay in India during each visit cannot exceed 180 consecutive days.
iii.            Conversion of B-Visa to employment visa in India is not permitted, and the applicant will have to return to his / her country of nationality, and apply to the Embassy or Consulate of India.
 
1.3          Visa to family members of foreign nationals holding B-Visa:
 
Family members and dependents of foreign nationals holding valid B-Visa, can also be granted Student / Research Visa, etc. subject to usual security checks, provided they are otherwise eligbile for grant of such visa. Under the earlier guidelines, the family members were required to come to India only on ‘X’ visa.
 
2.             Employment Visa – “E-Visa” – Similar to B-Visa guidelines, no new guidelines have been introduced in the categories and conditions to be fulfilled for grant of E-Visa. Further, no changes has been prescribed to the guidelines governing “Conversion of X-Visa to E-Visa” and “Change of employer”. The following additions have been made to the guidelines of E-Visa.
 
2.1          Visa to family members of a foreign nationals holding an E-Visa:
 
Family members and dependents of foreign nationals holding a valid E-Visa can also be granted Student / Research Visa, etc. subject to usual security checks, provided they are otherwise eligbile for grant of such visa. Under the earlier guidelines, the family members were required to come to India only on a ‘X’ Visa.
 
2.2          Special provisions for grant of E-Visa to the nationals of United States of America
i.              E-Visas for 3 years or co-terminus with the contract, whichever is earlier, can be granted to US nationals qualifying as CEOs / Senior Executives of a US company, subject to his/her qualifying for the E-Visa.
ii.             Year-to-year extension of the visa may be granted in India, up to maximum of 5 years from the date of issue of initial E-visa, subject to the good conduct of the foreign national and production of required documents in support of continued employment, Income tax returns, and no adverse security inputs.
iii.            Family members of the US nationals will be eligible for grant of visa as mentioned in para 2.1 above.
 
2.3          Special provisions for grant of E-Visa to Japanese nationals
i.              A multiple entry E-visa can be issued to Japanese technicians or experts coming to India in pursuance of:
(a)           a bilateral agreement between the Governments of India and Japan, or
(b)           an approved collaborative agreement between India and Japan, or
(c)           an arrangement between non-governmental organizations, including arrangements concerning cultural or academic exchanges which are duly approved by the Government of India for the duration stated in the arrangement or a period of five years, whichever is less.
ii.             3 years E-visas can be granted to Japanese nationals who are highly skilled professionals, employed in the IT software or IT enabled sectors in India. The applicant is required to submit proof of his / her contract with the Indian entity, along with the proof of registration of the Indian entity. An extension for 2 more years beyond the initial 3 years can be granted to such nationals.
ii.                    For Japanese nationals coming to India for employment and not covered under (i) and (ii) above, an E-Visa for 2 years or the term of the assignment, whichever is less, can be granted multiple entry visas.
iv.            A multiple entry visa can be issued to family members (spouse and children who are dependent on the applicant and form part of the same household) of Japanese nationals mentioned in (i), (ii) and (iii) above, co-terminus with the E- Visa issued to the principal visa holder, on submission of the proof of their relationship with the principal visa holder and a sponsoring letter from the employer of the principal visa holder.
v.             Foreigners Regional Registration Office (FRRO) compliance, have to be completed by the Japanese nationals and their family members within 14 days of their arrival in India, in accordance with the prevailing requirement. The residence permit issued by FRRO needs to be renewed on an annual basis.
 
2.4          Visa for interns under the French International Internship Programme (VIE)
The following conditions have been prescribed for issuance of visa to interns under the French VIE programme:
i.                     The visa for interns would be granted for fresh graduates within one year of graduation.
ii.             The visa would be valid for a maximum period of one year, with no extension permissible.
iii.            It would normally be restricted to a maximum of 50 interns per year.
iv.            Visa would be company-specific, and would only be issued on receipt of a letter from the company requesting for visa under the programme, with the period to be clearly specified, subject to a maximum period of one year.
v.             The interns shall observe all registration formalities as per rules after their arrival in India.
 
 
 
 
 
 
Source: http://mha1.nic.in/foreigDiv/OverviewVisa.html

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