Updation/Correction in eTDS/e-TCS statements

What is a correction TDS/TCS statement?

    * Deductor/collector is required to furnish one regular TDS/TCS statement for a particular TAN, Form, Financial year and quarter. In case there are any additions/updations to be made to the details of the regular statement accepted at the TIN central system, the same should be done by furnishing a correction statement.



Why should I furnish a correction statement?

    * The payment information provided in the regular TDS/TCS statement, is verified with the corresponding details provided by the bank where tax was deposited. On successful verification credit of tax deducted/collected by you is reflected in the annual tax statement (Form 26AS) of the deductees/transacting parties where PAN of deductee / transacting party is present.
    * In case of deficiencies in the accepted regular TDS/TCS statement such as incorrect challan details or PAN not provided or provided incorrectly, the tax credit will not reflect in the Form 26AS of the deductees in your statement.To facilitate correct credit in Form 26AS of the deductees you are required to remove deficiencies, if any, in the accepted regular TDS/TCS statement by filing a correction statement.


What are the different types of corrections that I can make?

The following are the various types of corrections that you can make to an accepted regular TDS/TCS statement:

   1. Update deductor details such as Name, Address of Deductor. This type of correction is known as C1
   2. Update challan details such as challan serial no., BSR code, challan tender date, challan amounts etc. 

        This type of correction is known as C2.
   3. Update/delete /add deductee details. This type of correction is known as C3.
   4. Add / delete salary detail records. This type of correction is known as C4.
   5. Update PAN of the deductee or employee in deductee/salary details. This type of correction is known 

        as C5.
   6. Add a new challan and underlying deductees. This type of correction is known as C9.
   7. Cancel accepted statement. This type of correction is known as Y. Regular TDS /TCS statement can be cancelled only if the TAN of the deductor is to be corrected. After the regular statement with incorrect TAN is cancelled a regular TDS / TCS statement with the correct TAN should be filed.

Can I update / add deductee and challan details in the same correction statement? Do I need to file separate correction statements for updating a PAN as well as adding a challan and its underlying deductees?

    * Yes. There is no need to file separate statements for different types of corrections. In case you need to update or add different deductees / challans in the same statement, it can be done in a single correction file.
    * Depending on the type of correction a single correction file may contain multiple correction statements. A correction file containing more than one correction statement is called “multiple batch correction statement”.


What is the procedure for submission of multiple batch correction statement?

    * On successful validation of the correction file through the File Validation Utility (FVU) the following will be created:
          o .fvu file
          o Statement statistics report (one each for each type of correction)


Copy the .fvu file on a CD and submit the same to the TIN-FC along with print out of the statement statistics reports and Form 27A.

Can I file the correction e-TDS/TCS statement with any TIN-FC?

    * You can file the corrected e-TDS/TCS return at any TIN-FC.



Do I have to pay upload fee for filing correction e-TDS/TCS return?

    * Yes. Upload fee is payable for each and every e-TDS/TCS return accepted by the TIN-FC, irrespective of whether it is a correction e-TDS/TCS statement or an original e-TDS/TCS statement. Upload fees applicable for correction statement is as per table below:



Returns having up to 100 records Rs.30
Returns having 101 to 1000 records Rs.182
Returns having more than 1000 records Rs.606

Do I have to pay upload fees for cancellation statement (Y)?

    * Yes. Upload fees are applicable for cancellation (Y) statements. Charges would be as per regular statement being cancelled.



Will the TIN-FC give any acknowledgment/receipt after acceptance of corrected e-TDS/TCS return?

    * Yes, TIN-FC will issue a Provisional Receipt in case corrected e-TDS/TCS return file is valid and accepted by the TIN-FC. The Provisional Receipt issued by TIN-FC is deemed to be the proof of corrected e-TDS/TCS return filed by you.



Can I update the Assessment Year of a regular TDS/TCS statement by filing a correction statement?

    * No, the fields TAN, Form no., quarter, FY and A.Y quoted in a regular statement cannot be updated by furnishing a correction statement

Income Tax Due date extented to 15.10.2010 - Notification

F.No. 225/72/2010-ITA.IIGovernment of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

Dated : September 27, 2010

Order under Section 119 of the Income Tax Act, 1961

On consideration of the reports of disturbance of general life caused due to floods and heavy rains, the Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income Tax Act, 1961, hereby extends the due date of filing of returns of income for the Assessment Year 2010-11 from 30.09.2010 to 15th October 2010. Accordingly the due date for Tax Audit report u/s. 44AB of the Income Tax Act is also extended to 15th October, 2010.

(Ajay Goyal)
Director (ITA. II)

Unique Identification Numbers Bill cleared by Cabinet

The Cabinet today approved the proposal for introducing the National  Identification Authority of India Bill, 2010 in Parliament.

The Bill proposes to constitute a statutory authority to be called the National Identification Authority of India and lay down the powers and functions of the Authority, the framework for issuing UID numbers (aadhaar numbers), major penalties and other related matters through an Act of Parliament.

This will involve an expenditure of ` 3023.01 crore which includes project components for issue of UID numbers (called aadhaar numbers) by March 2011, and recurring establishment costs for the entire project phase of five years ending March 2014.

The UID project is primarily aimed at ensuing inclusive growth by providing a form of identity to those who do not have any identity. It seeks to provide aadhaar numbers to the marginalised sections of society and thus would strengthen equity. Apart from providing identity, the aadhaar number will enable better delivery of services and effective governance.

The Bill seeks to establish the National Identification Authority of India for the purpose of issuing aadhaar numbers to individuals residing in India and to certain other classes of individuals, the manner of authentication of such individuals and other related and incidental matters.

What is UID(unique Identity Numbers)?

Nandan Nilekani, who heads the National Authority for Unique Identity of India aims at provide unique number to all Indians but not smart cards.

Nandan Nilekani said the unique ID number will not substitute other existing numbers a person may have which includes PAN, passport number, ration number. Rather, it will be an additional, unique number to be cited along with existing numbers for different purposes.

This ID cards will help to weed out duplicate cards that are widespread today (notably in BPL ration cards), and, may be, benami bank accounts and property deeds.

Nilekani team will make available a unique ID database to all ministries and other partners, who can then integrate their databases (covering passports, ration cards, job cards, PAN cards) with the unique ID database.

Participation in credit cards is entirely voluntary. This will also be the case with the unique ID scheme. Citizens will not be obliged to get a number. But those that don’t will find it very inconvenient, they will not have access to facilities that require you to cite your ID number.

Trading of Stocks Via Mobile

India will soon enter into an era where investors can indulge in stock trading via their mobile phones from any where in the world, irrespective of what they may be doing at that particular moment. You can visualize a situation where you are watching a movie and also investing or even trading while on a drive. Recently securities and Exchange Board of India (SEBI) had approved two important reforms in the capital market- allowing stock trades  on mobile phones and use of smart order routing technology.



Both, Bombay Stock Exchange (BSE) and National Stock Exchange will soon commence stock trades on mobile phones as the guidelines have since been issued . it is understood that most of the large brokerage houses are also ready to step into this unique stock market reform. It is expected that m-trade will become a reality before Diwali 2010 wherein investors can place orders, view position and trade from any where.

Mobile trading will be conducted on the similar lines of internet trading on the stock exchange’s software whereby data will be provided to registered brokers and their clients. As a easy procedure , stock brokers will be given a URL on their cell phones. Once they get access, they will be required to put in a user id and a password to ensure proper identification and security. To enable m-trade in securities , members of BSE and NSE will have to submit  their applications for a system audit before commencement of trading. Thus, system audit will be a pre- requisite to commence mobile trading. Once this is done, exchange will grant permission for commencing securities   trading using the wireless technology. However, in case of a network failure, brokers will have to provide for alternative communication   channels so that trade order could be placed.

Wire less trading though mobile phones shall require -

-                     a GRPS  connection

-                     application with real time charts and stock quotes

-                     sending of  e mail for order confirmation

-                     login to view account / transaction details

-                     password with automatic expiry



For mobile trading, a single user login will provide access to account details, market depth of identified scrips and quote in every thirty seconds. The mobile trading can be done on GPRS enabled hand sets. BSE has already developed its mobile application FASTTRADE whereas some big broking houses are also in the process of developing their own application.



As securities and risk management would attract greater concern in m-trades, stock brokers will have to acquaint the investors about the underlying risks. Also, such brokers would be subjected to annual systems audit by qualified professionals and only those registered brokers who provide internet based trading would be eligible for offering mobile trading.



 Some broking houses are already in this product. Brokers provide real time quotes, charts and a single market watch for commodities and equities. To have easy access, same log in could be used. All transactions will have unique identification number to differentiate between a m-trade and a normal trade.



While currently, only future contracts in commodities are allowed trade though mobile phone, it is believed that there will be huge demand for mobile trading in equity from office going and young investors and in retail segment. Undoubtedly, mobile trading has huge business potential and all investors who moderate to large volumes will find this tool useful. Not only this, a large number of investors who are currently trading online may switch to the mobile trading. The m-trading will also allow stock investments to reach out to smaller towns, rural   areas and other people without any of them spending on infrastructure. This is only an iceberg of what a handset can do for you.



There is, however, a need to caution that technology has its own perils. Data encryption, hacking up and systemic failures may creep in which are not ruled out.

PF accounts idle for 36 months or more months to fetch no interest

Friends,

The decision by the Employee Provident Fund Organisation (EPFO) to stop paying interest on accounts that have not been operated for 36 months or more is expected to cover 60 per cent of the accounts. According to EPFO estimates, there were 30.5 million inoperative accounts across 120 offices. In all, the agency had 47.1 million subscribers at the end of March 2009, which is estimated to have increased during the last financial year. However, latest data on the total number of subscribers was not available.

In all, the agency estimated that Rs 15,416 crore was lying in inoperative accounts (see table).

While 85 per cent of the inoperative accounts have a balance of less than Rs 5,000, such accounts having less than Rs 1,000 are 51 per cent. The balance in some of these are as low as Rs 1 or Rs 2, but maintaining these accounts cost around Rs 100. EPFO said over 11 per cent of the inoperative accounts had less than Rs 100.

The low balance in inoperative accounts was the result of subscribers giving up on their jobs, while the ones with more funds may have been the result of members chosing to leave the balance and opting to open a new account while switching jobs.
 

 

INOPERATIVE ACCOUNTS
Balance Rs	Accounts Million	Amount Rs cr
1-500	10.55	553.43
500-1,000	5.09	508.73
1,000-5,000	10.30	2657.70
5,000-10,000	2.25	1712.70
10,000-1 lakh	2.16	5542.02
1 lakh-10 lakh	0.13	3550.28
Over 10 lakh	0.02	891.03
Total	30.50	15415.89
Calculations based on EPFO estimates

“As long as someone is in employment, the employer pays a 1.1 per cent fee on the amount deducted. But the moment, the deduction stops, the fee also ends, as it cannot be levied on the employee. So, EPFO ends up spending money to keep the account running,” said an official.

Although one option was to levy an annual maintenance charge of Rs 100 on the inoperative accounts, EPFO has decided against it. Instead, yesterday, the Central Board of Trustees decided that from April 1, 2011, EPFO will stop paying interest for inoperative accounts from the 37th month. It was also decided that in case these accounts remain dormant and, if any member claims it, with proper identity, the balance in the account will be paid to the subscriber. Also, in case an establishment defaults in payment of contribution for 36 months, accounts would be made operative on payment of the dues and the interest on it.

New Income Tax Section 80 CCF - Infrastructure Bonds

Friends,

The finance minister announced a new income tax section — 80CCF — which entitles a tax payer to exemptions on money invested in infrastructure bonds.On an investment of Rs 20,000, an individual in the 30% tax bracket can save Rs 6,000 of tax and earn an annual interest of 7.85-7.95%. So, it is a double benefit.the bonds will have a minimum tenure of 10 years, and investors will be locked in for five years.

IFCI has already begun a private placement of unsecured redeemable, non-convertible long-term infrastructure bonds of up to Rs 20,000 for this financial year. The interest rate is 7.85% for buyback option and 7.95% for non-buyback option, under cumulative and non-cumulative (September 15 yearly) interest schemes. However, under the 7.85% bonds with a buyback option, the investor can redeem the bonds after the fifth year. The buyback starts from 2015 to 2019. The 5-year lock-in is compulsory to avail of the 80 CCF benefit.Those who have already exhausted their annual tax savings limit of Rs 1 lakh will be keenly looking at these bonds. The exemption for investments in infrastructure bonds is in addition to the investments of Rs 1 lakh in tax-saving instruments under Section 80C, 80CCC, 80CCD. After the lock-in period, an investor can take loans against these bonds.

Do’s

• Check if you are eligible to apply
• Sign the application wherever required
• Attach a copy of self attested PAN Card along with the application form
• In case of HUF applicant kindly put the stamp of HUF on the application form
• Ensure that you mention the PAN no. allotted under the IT Act on the application
• Check that you have mentioned correct DP Name, DP ID and Client ID on the application form
• Check there is no name mismatch with the Demat account
• In case of joint application check that the name on application form appears in the same order as it appears in Demat account
• Read all the instruction carefully and complete the application form
• Application shall be signed by Karta in case of HUF

Don’ts

• Do not apply for an amount lower than the minimum application
• Do not pay the application money in cash
• Do not submit unsigned application

Interest Earned on this Bonds is taxable ,however TDS is not applicable .

Third Party Cheques Banned from 15 November,2010 for investment in Mutual Funds

Friends,

Next time you are investing in mutual funds, make sure you issue a cheque from your own bank account, as fund houses will soon start rejecting third-party payments.

The move is part of efforts to check fraudulent activities by agents and distributors, some of whom have been found to be collecting cheques from investors and depositing them in their own names.

After receiving several such complaints against agents and distributors, fund houses have decided not to accept third party cheques for mutual fund investments with effect from November 15.

“In order to protect the interest of the investors, AMFI has issued best practice guidelines to all AMCs advising them not to accept third party cheques in respect of Mutual Fund Investments (with a few exceptions) effective from November 15, 2010,“ industry body Association of Mutual Funds in India (AMFI) said in a circular.

Form 16A to be issued quarterly - Amendmend in TDS Rules.

The Central Board of Direct Taxes (CBDT) have amended the Rules relating to TDS provisions date and mode of payment of tax deducted at source (TDS), TDS certificate and filing of ‘statement of TDS’ (TDS return) vide Notification No. 41/2010; SO No. 1261(E) dated 31.05.2010. The amended rules will apply only in respect of tax deducted on or after 1st day of April 2010.The main changes are listed out below.

   1. This rules are applicable only for the TDS deducted on or after 01.04.2010 means applicable for Financial year 2010-11 assessment year 2011-12.
   2. Last date to file quarterly etds return( form 24Q,form 26Q) has been changed to 15 May of succeeding year.Presently it is 15 June.
   3. Form 16,Form 16A required to be issued for Financial year 2010-11 has also been changed.
   4. Due date to make TDS payment and mode of TDS payments has also been changed.

  5. UTN has been introduced again in modified version ,now TAN of deductor ,PAN of deductee and PRN (receipt number) of ETDS return form a UTN for verification of tax credit.
   6. Form 16A(non salary tds) is now required to be issued quarterly within 15 days from due date to file etds statements.
   7. Form 16 (tds from salary) is now required to be issued by 31st May of the financial year immediately following the financial year in which the income was paid and tax deducted.



New Changes in TDS Rules

CBDT Press Release No. 402/92/2006-MC (27 of 2010), dated 2-6-2010

The Central Board of Direct Taxes (CBDT) have amended the Rules relating to TDS provisions date and mode of payment of tax deducted at source (TDS), TDS certificate and filing of ‘statement of TDS’ (TDS return) vide Notification No. 41/2010; SO No. 1261(E) dated 31.05.2010. The amended rules will apply only in respect of tax deducted on or after 1st day of April 2010.

Forms for TDS certificate have been revised to include the receipt number of the TDS return filed by the deductor. Now the Tax-deduction Account Number (TAN) of the deductor, Permanent Account Number (PAN) of the deductee, and Receipt number of TDS return filed by the deductor will form the unique identification for allowing tax credit claimed by the taxpayer in his income-tax return.

Government Authorities (Pay and Accounts Officer or Treasury Officer or Cheque Drawing and Disbursing Officer) responsible for crediting tax deducted at source to the credit of the Central Government by book-entry are now required to electronically file a monthly statement in a new Form No. 24G containing details of credit of TDS to the agency authorised by the Director General of Income-tax (Systems).

Due date for furnishing TDS return for the last quarter of the financial year has been modified to 15th May (from earlier 15th June). The revised due dates for furnishing TDS return are as under :-

Sl. No.	Date of ending of the quarter of the financial year	Due date
1.	30th June	15th July of the financial year
2.	30th September	15th October of the financial year
3.	31st December	15th January of the financial year
4.	31st March	15th May of the financial year immediately following the financial year in which deduction is made

Due date for furnishing TDS certificate to the employee or deductee or payee is revised as under :

Sl. No.	Category	Periodicity of furnishing TDS certificate	Due date
1.	Salary       (Form No.16)	Annual	By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted
2.	Non-Salary (Form No.16A)	Quarterly	Within fifteen days from the due date for furnishing the ‘statement of TDS’

Highlights of new Direct Tax Code (DTC)

Highlights of The New direct Tax code is given below

   1. Tax exemption Limit enhanced for Individuals to 200000
   2. For senior Citizen limit is 250000.
   3. There is no addition limit for Women.
   4. 200000-500000=10% ,500000-1000000=20% and more than 1000000 30 %
   5. Company tax rate is 30%
   6. There is no cess and surcharge new direct tax code
   7. MAT(minimum alternative tax ) proposed at 20% present rate is 18% plus cess and surcharge
   8. Capital gain Long term is now from asset hold more than one years.
   9. Indexation Base year to be changed to 01.04.2000 from 01.04.1981 so no tax on gains realised between 1981 to 2000.
  10. Tax applicable on capital gain from long term sale of securities ,presently it is exempted.
  11. Proposed applicable date is 01.04.2012 (FY 2012-13)
  12. The Government has also proposed to restore back the taxation of retirement savings, in the nature of provident fund contributions and pure life insurance and annuity products, to the Exempt-Exempt-Exempt scheme from the earlier proposition of Exempt-Exempt-Tax scheme under the revised discussion paper in the DTC
  13. No Tax on Long term capital gain on securities & equity linked mUtual funds,For short term capital gain tax rate is 50 % of normal slab rate applicable to the asseessee.
  14. in case of short term assets, there is no relaxation to the tax payer and tax will be required to paid as in case of any other ordinary income
  15. The code introduces a Rs 50,000 enhanced deduction for savings in addition to old 100000 deduction.
  16. Interest on house loan benefit continues ,HRA benefit also have a place in DTC .

The government on Monday introduced in Parliament a bill to overhaul its archaic direct tax codes, a key reform aimed at simplifying procedures for investors and bring in more revenue by widening the tax net.

This switchover to DTC with higher exemption limits and lower corporate tax, Revenue Secretary Sunil Mitra says, will cost the government a revenue loss of Rs 53,172 crore on reduced rates and a loss of Rs 38,829 crore in the first year from corporate tax rate. “India's direct tax collection for 2011-12 is expected to be at Rs 5.27 lakh crore in the first year, if current rates hold,” he adds.The bill proposes to cut tax rates, replace profit-linked exemptions for companies with investment-linked incentives and simplify rules on corporate mergers, aimed at creating a tax code that can support growth in Asia's third-largest economy.
The dividend distribution tax (DDT) for holding companies has been removed up to any level and the securities transaction tax (STT) rate has been kept same at 0.25%. The new code would also scrap cess and surcharge.

The bill will now be applicable from April 1, 2012, instead of the earlier proposed March 1, 2011. This delay, Mitra says will allow time for switchover.

All Industry Rates of Duty Drawback, 2010-11 - Circular No. 35/2010-Custom

Circular No.  35/2010-Cus., New Delhi dated: 17.09.2010

Subject:        All Industry Rates of Duty Drawback, 2010-11 - Reg.

The Ministry has announced the revised All Industry Rates (AIR) of Duty Drawback vide Notification No. 84/2010-Cus. (N.T.), dated 17/09/2010. The rates of drawback have been made effective from 20.9.2010. The Notification may please be downloaded from CBEC website www.cbec.gov.in and perused for details.



2.           Like in previous years, the drawback rates have been determined on the basis of certain broad parameters including, inter alia, the prevailing prices of inputs, Standard Input Output Norms (SION), share of imports in the total consumption of inputs and the applied rates of duty. The incidence of duty on HSD/Furnace Oil has been factored in the drawback calculations. The incidence of service tax paid on taxable services which are used as input services in the manufacturing or processing of export goods has also been factored. The Commissioners may ensure that the exporters do not avail of the refund of this tax through any other mechanism while claiming the All Industry Rates of duty drawback.



3.           The Drawback Schedule includes some new entries such as Denim Fabric and cotton garments containing 1% or more by weight of Spandex / Lycra / Elastane, garments of blend containing wool & Man Made Fibre(MMF), woven carpets and floor coverings of jute, knotted carpets and floor coverings of MMF, brass parts of ball or roller bearings and silk embroidery. The Schedule may please be perused for details.



4.           The drawback rates have undergone changes in line with the changes in the prices of inputs, duties etc. Thus the drawback rates have been changed in most cases. The more important changes are discussed below:-







(i)      ? Leather and Leather Articles (Chapters 41, 42 & 64)



The Drawback rates for all the goods falling in the Chapters 41, 42 and 64 have been decreased by 5% - 15% approximately. The caps have also been revised downwards. It may be noted that value cap for headings 420501 and 420502 has been changed from Rs. 585 per piece to Rs. 15 per sq. ft. This change was necessitated because of representations received from the field formations and the trade in respect of Leather Sofa cover being exported in SKD/CKD condition which was being denied drawback rate as ‘per piece’.



(ii)          Textiles and Textile Articles (Chapters 50-63)



(a)          Silk: The drawback rate for silk fabric has been increased from 9.8% with a drawback cap of Rs. 295 to 11% with a drawback cap of Rs. 330/kg. The rate for fabric of noil silk has also been revised upwards.



(b)          Wool: In the case of wool tops, woollen yarn and fabrics the drawback rates have been decreased by 5% - 20% approximately. The caps have also been revised downwards.



(c)          Cotton Yarn and Fabrics: The drawback rates for grey cotton yarn and dyed cotton yarn continue to be Nil for the present. As for cotton fabrics, the new rate is 3.7% (grey)/4.2% (dyed) with a drawback cap of Rs. 12 per kg (grey)/Rs. 14 per kg (dyed). In case of denim fabrics the new rate is 4.3% with a cap of Rs. 16.2/kg. The new entry for Denim Fabric with 1% or more by weight of Spandex / Lycra / Elastane has been created with a drawback rate of 4.6% and value cap of Rs. 17.4 per Kg.



(d)          Man-made Filaments and Man-made Staple Fibres: The Drawback rates for most of the goods falling in the Chapters 54 and 55 have been marginally reduced.



(e)    Carpets and Floor Coverings: The Drawback rates for most of the goods except for silk carpets, falling in the Chapter 57 have been decreased by 10% approximately. For silk carpets, there is no change. New entries have been created for carpets and floor coverings of Jute and Coir under heading 5702 with drawback rates of 3.5%.

               A new entry for carpets and floor coverings of cotton has been created under heading 5702 to cover cotton woven durries/rugs etc. Earlier these goods were being classified under the heading 570501. Representations were received that these goods were correctly classifiable under the heading 5702. Accordingly, the change has been made in this Drawback Schedule. As regards the past consignments, no demands may be raised as the intention was always to allow these goods the rate specified under heading 570501.

There has been a dispute about the heading 570301 as to whether the existing description “hand tufted carpets” covers hand- held gun tufted  carpets or not. In order to resolve this dispute, the word “hand” has been deleted from this heading and the description now reads only “tufted woollen floor coverings, all sorts”.



(f)           Ready Made Garments & Made Ups: In the readymade garment sector, except for silk garments, drawback rates have been decreased by 10% - 15% approximately. The caps have also been revised downwards. The new drawback rate for cotton garment is 7.5% as against the earlier rate of 8.8%. For garments of blend containing cotton and (MMF), the new drawback rate is 8.6% as against the earlier rate of 9.8%; for garments of MMF the new drawback rate is 9.5% as against the earlier rate of 10.5%; for readymade garments made of silk and of wool, the rates are 10% and 7.5% respectively. The new entries for garments of blend containing wool and MMF and for those made of cotton with 1% or more by weight of Spandex/Lycra/Elastane have been created with drawback rates of 8.6% and 8% respectively.

In the made up category, the revised drawback rate for cotton made-ups is 7.1% with a cap of Rs. 60 per kg. The drawback rates and caps for made-ups of MMF and of blend containing cotton and MMF have also been reduced.



(iii)    ? Base Metals and Articles of Base Metals (Chapters 72-83)



               The duty drawback rate for stainless steel utensils falling under Chapter 73 and stainless steel cutlery falling under Chapter 82 has been reduced from 12.5% to 8.8%. For other articles of iron and steel where there is a composite rate, the same has been reduced by 25% to 30%. The drawback rate for handicrafts, hardware and other items of brass has been decreased from 15% to 11%. The drawback rates for hand tools have been decreased by 30% approximately. The caps have also been revised downwards.

In order to resolve the dispute whether the description handicrafts/art ware of galvanized iron  with brass includes products which are coated/plated , the entry ‘732603’ has been amended to read as “Handicrafts/ Art ware of Iron with or without plating / coating, galvanized or otherwise, with Brass”.    



(iv) ?Machinery and Equipment (Chapters 84 and 85)



The new entry for brass parts of Ball or roller bearing has been created with a drawback rate of 3% under heading 848202.



(v)     ? Bicycle & Bicycle Parts (Chapter 87), Sports Goods (Chapter 95) and Writing Instruments (Chapter 96)



The drawback rates for bicycles and bicycle parts have been revised downwards. The new rate for complete bicycle is 9%. Further, a value cap of Rs. 10/- per Kg. has been introduced for the residuary entry ‘Others’ (871423). The drawback rates for Sports Goods and Writing Instruments have also been revised downwards by about 10% and 20% respectively.



(vi) ?Miscellaneous



(a)          In the earlier schedule, wooden artware and handicrafts were covered under the heading 4420. On representations from the exporters that a number of wooden handicraft items are not covered under the said heading, it has been decided to have a uniform rate of 2.5% for wooden items of headings 4414, 4419 and 4420. A specific entry has also been created for wooden handicraft and artware under the residuary head 4421 with a drawback rate of 2.5%.



(b)          The description under heading 22071090 has been changed to read as “Ethanol or Ethyl Alcohol, Rectified Spirit / ENA or otherwise containing more than 94.5% Ethyl Alcohol”.



(c)          References have been received seeking clarifications as to what should be the minimum percentage of MMF in a garment or made-up for it to be considered as a blended garment /made-up. The issue has been examined and the term ‘blend’ has been explained in the Notification. It may be noted that the term ‘blend’ in chapters 61, 62 & 63 refers to only two types of blends i.e. cotton & MMF and wool & MMF.  It shall mean that MMF shall be more than 15% but less than 85% by weight in such garment or made-up. Further, the garment or made-up shall be classified as of cotton or wool or MMF or silk or noil silk if the percentage of the concerned fibre is 85% or more by weight in such garment or made-up.



(d)          The earlier notification (No. 103/2008 Cus. (N.T.) dated 29.08.08 as amended) provided that the rates of drawback in the Drawback Schedule would not be applicable to products manufactured or exported by availing the rebate of Central Excise duty paid on materials used in the manufacture of export goods in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of Central Excise duty under Rule 19 (2) of the Central Excise Rules, 2002. References have been received that exporters are being denied 1% of drawback, which is the customs component of the AIR drawback, on the basis of the above condition although the manufacturers had taken only the rebate of Central Excise duties in respect of their inputs / procured the inputs without payment of central excise duties; and the Customs duties which remained unrebated should be provided through the AIR drawback route.



             The issue has been examined. The present notification No. 84/2010-Cus. (N.T.) dated 17.09.2010 provides that customs component of AIR drawback shall be available even if the rebate of Central Excise duty paid on raw material used in the manufacture of export goods has been taken in terms of Rule 18 of the Central Excise Rules, 2002, or if such raw materials were procured without payment of Central Excise duty under Rule 19 (2) of the Central Excise Rules, 2002.



(e)     The earlier notification provided that the gold and silver jewellery exports under the Drawback scheme would be examined by the Customs Appraiser/ Superintendent (Jewellery Expert). Problems have been reported since the jewellery experts are not available at all ports. Accordingly, the notification has been modified. Now such exports may also be examined by other Appraisers/Superintendents who have not been recruited as jewellery experts. It is however advised that officers may be posted to these positions after adequate training. Efforts should also be made to provide electronic Carat Meters to them.



(f)           The earlier notification provided that the rates of drawback in the Drawback Schedule shall not be applicable to products manufactured or exported by availing the facility under the DEPB (Duty Exemption Pass Book) scheme. References were received seeking clarification whether an exporter who manufactured the export goods with raw material imported against DEPB scrips, shall be eligible for drawback on such exports even if DEPB benefits is not claimed. The doubt appeared to have arisen because the above mentioned notification debarred benefit of AIR drawback if the export goods had been ‘manufactured’ availing the benefit of the DEPB scheme.

In order to resolve the matter, the word ‘manufactured’ has been deleted in the present notification and the condition has been modified to read that the drawback will not be available if the goods are ‘exported’ availing the benefits of the DEPB scheme.



 6.          The Notification and the new Drawback Schedule may be perused carefully to note the changes made therein. Though all care has been taken, the possibility of inadvertent errors/omissions cannot be ruled out. It is requested that any error/omission noticed during the implementation of the rates be brought to the notice of the Board immediately for suitable corrective action. ?



7.           The Public Notice and Standing Order for guidance of the trade and staff may be issued. Difficulties faced, if any in implementation of the changes may be brought to the notice of the Board at once.



Kindly acknowledge receipt of this Circular.


                                                                           (Najib Shah)
                                     Joint Secretary to the Government of India                               



Source : CBEC

Source Link : CBEC

Tags : duty draw back, custom duty

Clarification on Form 24G to be filed by Government Account Office

The Pay and Accounts Office (PAO)/ District Treasury Office (DTO)/ Cheque Drawing and Disbursing Office (CDDO) are required to file Form 24G as per Income-tax Department Notification no. 41/2010 dated May 31, 2010.  In case of an office of the Government, where tax has been paid to the credit of Central Government without the production of a challan associated with deposit of the tax in a bank, the PAO / CDDO / DTO or an equivalent office (herein after called as AO in this document) government is required to file Form 24G.

Form 24G is to be furnished only in electronic form.

A unique seven digit Accounts Office Identification Number (AIN) shall be allotted by the Directorate of Income Tax (Systems), Delhi, to every AO. Each AO will be identified in the system by this number.

Each DDO will be identified in the system by a Tax Deduction and Collection Account Number (TAN). This number is allotted by Income Tax Department.

Every AO shall furnish one complete, correct and consolidated Form 24G every month having details of all type of deduction / collection viz. TDS-Salary / TDS-Non Salary / TDS-Non Salary Non Residents / TCS.

Every Form 24G shall be prepared in accordance with the data structure prescribed by the Income Tax Department (ITD).

The contents of Form 24G should be as follows:

   1. Details of the AO filing Form 24G (AIN, name, demographic information, contact details)
   2. Category of AO (Central / State Government) along with details of ministry / state.
   3. Statement details (month and year for which Form 24G is being filed)
   4. Payment summary; nature of deduction wise (TDS – Salary /TDS Non-salary / TDS – Non-salary Non-resident / TCS)
   5. DDO wise payment details (TAN of DDO, name, demographic details, total tax deducted and remitted to the Government account (A.G. / Pr.CCA)
   6. DDOs which are associated with the AO. If the DDO wants to add/delete or update details of DDO, same should be mentioned in the statement.

AO can prepare the statement either using his own software or using the Form 24G Preparation Utility developed by National Securities Depository Limited (NSDL) and freely available at Tax Information Network (TIN) website (www.tin-nsdl.com) or ITD website (www.incometaxindia.gov.in). You can click here to download the Form 24G Preparation Utility.

Once the statement is prepared, the AO shall validate the same by using File Validation Utility (FVU) developed by National Securities Depository Limited (NSDL) and freely available at Tax Information Network (TIN) or ITD website. You can click here to download the Form 24G FVU.

The statement can be furnished in Compact Disk (CD) at any of the TIN-Facilitation Centers (TIN-FC) managed by National Securities Depository Limited (NSDL) (list available at Tax Information Network (TIN) or ITD website) along with Form 24G Statement Statistics Report (generated through File Validation Utility), duly signed by the AO.

Where the DDO and AO are same, the statistics report shall be counter signed by his superior officer.

Once Form 24G is accepted by the TIN-FC, it will issue a provisional receipt with a unique number (provisional receipt number) to the AO as a proof of submission of the statement.

DA(dearness Allowance) increased by 10 % wef 01.07.2010(45% now)

Friends,

To compensate for price rise the Central Government has released additional installment of dearness allowance to its employees and dearness relief to Pensioners due from 1.7.2010

The Union Cabinet today decided to release an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1.7.2010 representing an increase of 10% over the existing rate of 35% of the Basic Pay/Pension i.e. 45%, to compensate for price rise.

The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission.

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be of the order of Rs. 9303.2 crore per annum and Rs. 6202.1 crore in the financial year 2010-2011 (for a period of 8 months from July,2010 to February, 2011).

Friends,

The Indian Govt has just Announced the Symbol for Rupee currency and It will take almost one year to implement the same in all over the world as there are many regulatory requirement involved in implementation .However I have found a trick from the net by which you can start using the Rupee symbol from now .It is very easy to use the trick .Trick is developed by Foradian Technologies  .

steps To Install the Rupee symbol.

How to use ?


1. Download the above attached font Rupee.ttf or the new version Rupee_Foradian.ttf

2. Install the font. (It is easy. Just copy the font and paste it in "Fonts" folder in control panel)

3. Start using it. :)

download the Rupee Firadian.ttf 

How to type the Rupee symbol ?

Rupee symbol mapped the grave acent symbol - ` (the key just above "tab" button in your keyboard) with the new Rupee symbol. Just select "Rupee" font from the drop down list of your fonts in your application and press the key just above your tab button. It will display our new rupee symbol. Try it.

Limitations

The "Rupee.ttf" font is necessary to view the currency symbol. So as long as the new symbol is not encoded in to unicode font by default, we cant use the symbol universally.means if you type the symbol in your letter and send to other person but the receiver has not installed the font then he can not see the rupee symbol

ALLAHABAD BANK OFFICERS’ RECRUITMENT PROJECT-2010-11

Allahabad Bank invites ON-LINE Applications from Indian Citizens for recruitment against 127 vacancies. Candidates are required to apply ON-LINE through Bank’s website . No other means/mode of application will be accepted.


Reservation in Posts: (including backlog)

Scale	No. of Vacancies					Out of which for Physically challenged (PC)
	SC	ST	OBC (*)	GEN	Total	OC	VI	HI
TEG Scale – VI	-	-	-	01	01	1	2+2**	1+15**
SMG Scale – V	-	-	-	01	01
SMG Scale – IV	-	-	-	01	01
MMG Scale – 111	02	01	02	05	10
MMG Scale – II	02	04	10	17	33
JMG Scale – I	12	08	19	42	81
TOTAL	16	13	31	67	127	01	4	16

SALARY AND EMOLUMENTS:
A. JMG, Scale-I : Pay Scale : Rs.14500-600/7-18700-700/2-20100-800/7-25700
B. MMG, Scale-II : Pay Scale : Rs.19400-700/1-20100-800/10-28100
C MMG, Scale-III : Pay Scale: Rs.25700-800/5-29700-900/2-31500
D SMG, Scale-IV : Pay Scale : Rs.30600-900/4-34200-1000/2-36200
E SMG, Scale-V : Pay Scale : Rs.36200-1000/2-38200-1100/2-40400

DA, HRA, CCA etc. will be paid as per Bank’s rules in force from time to time depending upon place of posting. Medical, LTC, Terminal Benefits etc will be admissible as per prevailing Bank’s rules.

Name of Post/ Vacancies:

Post CodeNo.	Posts	Grade/Scale	No. of vacancies
1.	Chief Law Officer in GENERALIST cadre.	TEG,Sc-VI	1 (One)
2.	Assistant General Manager (Economist) in GENERALIST cadre.	SMG, Sc-V	1 (One)
3.	Chief Manager (Taxation) in GENERALIST cadre	SMG, Sc-IV	1 (One)
4.	Senior Manager (Treasury cum Forex) in SPECIALIST cadre	MMG,Sc-III	10 (Ten)
5.	Manager (Research Analyst / Statistician) in SPECIALIST cadre.	MMG,Sc-II	2 (Two)
6.	Manager (Taxation) in SPECIALIST cadre.	MMG,Sc-II	2 (Two)
7.	Manager (Law) in  SPECIALIST cadre.	MMG,Sc-II	19 (Nineteen)
8.	Manager (Security) in SPECIALIST cadre.	MMG,Sc- II	10 (Ten)
9.	Official Language Officer / Hindi Officer in SPECIALIST cadre	JMG,Sc- I	6 (Six)
10.	Officer (IT) in SPECIALIST cadre	JMG,Sc-I	75 (Seventy Five)

Click here for detailed Advertisement
Click here for Fee Payment Challan
Click here to Apply Online

Time limit for filing ITR-V for assessment year 2009-10 extended

Friends,

The Central Board of Direct Taxes (CBDT) has decided to extend the time limit for filing ITR-V forms relating to income-tax returns for A.Y. 2009-10 filed electronically (without digital signature) on or after 1st April 2009. These ITR-V forms can now be filed up to 31st December 2010 or within a period of 120 days of uploading of the electronic return data, whichever is later.

2. The relaxation has been made since there are still returns relating to A.Y. 2009-10 for which the ITR-V forms have not been received at the Centralised Processing Centre (CPC), Bengaluru or have been received after 31st March 2010 or have been filed with the Assessing Officers. These taxpayers are being given a final opportunity to send ITR-V forms to the CPC by the dates mentioned in para 1 above.

3. The ITR-V forms should be sent by ordinary post or speed post to Post Bag No.1, Electronic City Post Office, Bengaluru:– 560100 (Karnataka).

TDS RATES AS PER DIRECT TAX CODE BILL APPLICABLE WEF 01.04.2012

Sr. No.	Nature of Payment	Rates of TDS where deductee is a resident
		The present rates	Proposed rates under the Code
1	Salary paid to employees	Rates as per the slabs and rates prescribed by the Finance Act	Average rate of tax on salary paid during the financial year
2	Payment in respect of works contract	1% (where deductee is individual/HUF)	2%
		2% (where deductee is person other than individual/HUF)
3	Payment in respect of any service contract	__	2%
4	Payment in respect of broadcasting and telecasting/advertising	1% (where deductee is individual/HUF)	2%
		2% (where deductee is person other than individual/HUF)
5	Supply of labour for carrying out any works, or service contract	1% (where deductee is individual/HUF)	2%
		2% (where deductee is person other than individual/HUF)
6	Payment in respect of carriage of goods and passengers by any mode of transport other than railways	1% (where deductee is individual/HUF)	2% (No deduction of TDS in case of carriage of goods by road if deductee furnishes PAN)
		2% (where deductee is person other than individual/HUF)
7	Interest	10%	10%
8	Dividend other than dividend on which DDT is payable	10%	10%
9	Commission, brokerage, remuneration or prize (by whatever name called) for rendering any services	10%	10%
10	Fees for professional or technical services	10%	10%
11	Payment for royalty or non-compete fees	10%	10%
12	Compensation on compulsory acquisition of immovable property other than agricultural land	10%	10%
13	Rent for the use of machinery or plant or equipment	2%	2%
14	Rent for use of land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings	10%	10%
15	Winning from any lottery or crossword puzzle or card game or other game of any sort	30%	30%
16	Winnings from any horse race	30%	30%
17	Income distributed by mutual fund on which income distribution tax is not paid	Not applicable in present law	10% (where deductee is individual/HUF)
			20% (where deductee is person other than individual/ HUF)
18	Payment by a life-insurer where payment under life policy is not tax-exempt	Not applicable in present law	10% (where deductee is individual/HUF)
			20% (where deductee is person other than Individual/HUF