Circular Simplifying of DIN rules and making Possible Allotment of DIN on the same dayCircular Simplifying of DIN rules and making Possible Allotment

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The Ministry has constituted a Group to examine the business process re-engineering under MCA-21. In order to speed up and simplify the process to obtain a DIN, the below mentioned procedure have been recommended.

1. Application for DIN will be made on eForm; No physical submission of documents shall be accepted and for this purpose Scanned documents along with verification by the applicant will be attached with the eForm. Only online fee payment will be allowed i.e. No challan payment

2. The application can also be submitted online by the applicant himself using his DSC.

3. DIN 1 eForm can be digitally signed by the professional who shall also confirm that he has verified the particulars of the Applicant given in the application.

4. Where the DIN 1 is verified by the professional, the DIN will be approved by the system immediately online.

5. In other cases the DIN cell will examine the application and same shall be disposed of within one or two days.

6. Companies (Directors Identification Number) Rules, 2006 are being amended on the above lines.

7. Penal action against the applicant and professional certifying the DIN application in case of false information / certification as per provisions of section 628 of the Act will be taken in addition to action for professional misconduct and revocation of DIN, allotted on false information

8. The above procedures is expected to enable allotment of DIN on the same day.

9. The above procedures applies to filing of DIN 4 intimating changes in particulars of Directors.

A notification to notify the aforesaid procedure is being issued. After issue of necessary notification, the applicant/professionals/DIN Cell are advised to follow the notified procedures for allotment of DIN.

Transfer pricing Audit due date for corporate assesses extended to 30th November

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Due date of return of Income for corporate assesses who are required file a transfer pricing report in Form 3CEB, extended to 30th November

Section 139 of the Income-tax Act stipulates 30th September of the assessment year as the due date for filing of return of income in case of corporate assessees. In addition to filing a return of income, assessees who have undertaken international transactions are also required (under the provisions of section 92E) to prepare and file a transfer pricing report in Form 3CEB before the due date for filing of return of income.

Corporate assessees face practical difficulties in accessing contemporary comparable data before 30th September in order to furnish a report in respect of their international transactions. It is, therefore, proposed to amend section 139 to extend the due date for filing of return of income by such corporate assessees to 30th November of the assessment year.

This amendment is proposed to take effect from 1st April 2011.

GST may not be implemented from April 2012

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The government today said it may not be possible to roll out the Goods and Services Tax (GST) from April next year, as the proposal needs consent from all the states. ”…the (GST) legislation cannot be voted upon until the ratification is completed…there may be problem on the time factor (April 1, 2012),” Revenue Secretary Sunil Mitra said at a CII post-Budget conference .

Ideally, the government would have liked to bring both Direct Taxes Code (DTC) and GST together, he said. DTC is expected to be rolled out from April, 2012.

The Centre and the states are engaged in talks over the proposed Goods and Services Tax (GST) for about four years.

The government is scheduled to table the GST Constitution Amendment Bill during the current session of Parliament for consideration.

“Even if the constitutional amendment goes in now, practically it would be referred to Standing Committee for examination,” Mitra added.

He further said if the Standing Committee give its suggestion towards the end of the Winter Session, the government can present it for voting in Parliament earliest in the next Budget Session.

“…once it is voted in Parliament, it has to go for ratification of 50 per cent states, that will take some time,” he added.

Since 2007, the government has been trying to introduce the new tax regime, under which GST will subsume most of the indirect taxes of the Centre and the states.

The GST rollout has already missed the implementation timeline of April 1, 2010, and would not be introduced from the coming April 1, the start of the financial year 2011-12.

Analysis of Budget 2011

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Budget Analysis 2011

Key Features of Budget 2011-2012

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Key Features of Budget 2011-2012

Indian Accounting Standards Converged with IFRS Notified

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Reliable, consistent and uniform financial reporting is important part of good corporate governance practices worldwide in order to enhance the credibility ofthe businesses in the eyes of investors to take informed investment decisions. In pursuance of G-20 commitment given by India, the process of convergence of Indian Accounting Standards with IFRS has been carried out in Ministry of Corporate Affairs through wide ranging consultative exercise with all the stakeholders. Thirty five IndianAccounting Standards converged with International Financial Reporting Standards (henceforth called IND AS) are being notified by the Ministry and placed on the website. . These are: IND ASs 1, 2, 7, 8, 10, 11, 12, 16, 17, 18, 19, 20, 21, 23, 24, 27, 28, 29, 31, 32, 33, 34, 36, 37, 38, 39, 40, 101, 102, 103, 104, 105, 106, 107 and 108. The Ministry of Corporate Affairs will implement the IFRS converged Indian Accounting Standardsin a phased manner after various issues including tax related issues are resolved with the concerned Departments. It would be ensured that the implementation of the converged standards in a phased manner is smooth for the stakeholders. The date of implementation of the IND AS will be notified by the Ministry at a later date.

Nothing in language of section 13(1)(b) to suggest that an institution of mixed objects is precluded from getting registration under section 12AA

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DECIDED BY:

ITAT, HYDERABAD BENCH `B’,HYDERABAD, IN THE CASE OF: Rehoboth Mission v. DIT (Exemp), APPEAL NO: ITA No. 352/Hyd/2010,DECIDED ON May 26, 2010

HELD
We have gone through the provisions of sec.13(1)(b) of the Act. There is nothing in the language of this provision to suggest that an institution of mixed objects is precluded from getting registration u/s 12AA of the Act. It is also seen from the objects of the trust in question that the assessee is carrying on no non-charitable or non-religious activities. We place reliance on the judgement of ACIT v. Barkate Saifiyah Society 213 ITR 492 (Guj) and CIT v. Chandra Charitable Trust 294 AITR 86 ( Guj), wherein it was held that a trust can either be for religious purposes or for charitable purposes or it can be for both. Only a trust which is for religious purpose is excluded and debarred from registration u/s 12AA of the Act. A trust whose object is charitable as well as religious is not debarred from registration.