Dearness Allowance Enhanced for Central Government Employees with effect from 1.1.2013 from 72% to 80%

No. 1(2)/2013-E-II (B)
Dated: 25th April, 2013

The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1(8)/2012-E-II (B) dated 28th September, 2012 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced from the existing rate of 72% to 80% with effect from 1st Jan, 2013.

The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1 (3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

The additional instalment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates.

In regard to Armed Forces personnel and Railway employees separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

OVERSEAS DIRECT INVESTMENTS – CLARIFICATION

Circular:-RBI/2012-13/481

Dated:- 25/04/2013

Attention of the Authorised Dealers (AD) is invited to Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 notified by the Reserve Bank vide Notification No. FEMA 120/RB-2004 dated July 07, 2004 and as amended from time to time.

It has been observed that eligible Indian parties are using overseas direct investments (ODI) automatic route to set up certain structures facilitating trading in currencies, securities and commodities.

It has come to the notice of the Reserve Bank that such structures having equity participation of Indian parties have also started offering financial products linked to Indian Rupee (e.g. non-deliverable trades involving foreign currency, rupee exchange rates, stock indices linked to Indian market, etc.).

It is clarified that any overseas entity having equity participation directly / indirectly shall not offer such products without the specific approval of the Reserve Bank of India given that currently Indian Rupee is not fully convertible and such products could have implications for the exchange rate management of the country.

Any incidence of such product facilitation would be treated as a contravention of the extant FEMA regulations and would consequently attract action under the relevant provisions of FEMA, 1999.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

DVAT - FILING OF ONLINE RETURNS FOR MARCH, 2013 AND 4^th  QUARTER 2012-13

Circular No.F.7(420)/VAT/Policy/2011 /117-123

Dated:25/04/2013

The last date of online filing of return for monthly dealers and composition dealers, for the return due on 25.04.2013, is hereby extended up to 01.05.2013. The last date of filing of hard copy of the return for the above tax period is also extended up to 06.05.2013.

The last date of filing of return for the Fourth quarter of quarterly dealers for 2012-13 is extended as per schedule given below:- 

Class/category of quarterly dealers (as per net tax paid during the year 2011-12)	Last date of filing of online returns	Last date of filing hard copy of return
Paid net tax more than Rs.1,00,000/-	06.05.2013	10.05.2013
Paid net tax between Rs.50,000/- to 1,00,000/-	10.05.2013	15.05.2013
Paid net tax less than Rs.50,000/-	15.05.2013	20.05.2013

However, the tax due for the above mentioned period shall be deposited as per the provisions of Section 3(4) of the DVAT Act, 2004. Penalty and interest on late deposit of tax due shall be imposed as applicable.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

DATE EXTENDED FOR FILING ST-3 RETURN FROM 25th APRIL 2013 TO 31st AUGUST, 2013

Order No: 03/2013-Service Tax

Date: 23/04/2013

The CBEC hereby extends the date of submission of the  Form ST-3, for the period from 1st October 2012 to 31st March 2013, from 25th April, 2013 to  31st August, 2013.

The circumstances of a special nature, which have given rise to this extension of time, are as follows:  

      “The Form ST-3, for the period from 1st October 2012 to 31st March 2013, is expected to be available on ACES around 31st of July, 2013”.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

ISSUANCE OF CERTIFICATE FOR TAX DEDUCTED AT SOURCE IN FORM NO. 16 IN ACCORDANCE WITH THE PROVISIONS OF SECTION 203 OF THE INCOME-TAX ACT, 1961 READ WITH THE RULE 31 OF THE INCOME-TAX RULES 1962

CIRCULAR NO.: 04/2013

DATE: 17/04/2013

Section 203 of the Income-tax Act 1961 read with the Rule 31 of the Income-tax Rules 1962 stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc.

The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provision of Chapter XVII-B of the Act.

TDS certificate in Form No. 16 is to be issued annually whereas TDS certificate in Form No. 16A is to be issued quarterly. TDS Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

With a view to streamline the TDS procedures, including proper administration of the Act, the Board had issued Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated 09.04.2012 making it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or, previously called TIN website. In exercise of powers under section 119 of the Act, the Board has now decided as following:-

1.   ISSUE OF PART A OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE ON OR AFTER 01.04.2012:

All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading through TRACES Portal, in respect of all sums deducted on or after

the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number.

2.   AUTHENTICATION OF TDS CERTIFICATEIN FORM NO. 16:

The deductor, issuing the Part A of Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital

Signature in accordance with sub-rule (6) of Rule 31.

In other words, Part A of Form No. 16 shall be issued by all the deductors, only by generating it through TRACES Portal and after duly authenticating and verifying it.

‘Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and  issued to the deductee after due authentication and verification along with the Part A of the Form  No. 16 stated above.

Sub rule (3) of rule 31of the Rules sets the time limit for issuance of Form 16 by the deductor to the employee. Currently, Form 16 should be issued by 31st May of the financial Year immediately following the financial year in which income was paid and tax deducted.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

ONLINE EPF TRANSFER AND WITHDRAWAL FROM 1ST JULY, 2013

From 1^st July, 2013 the EPF account holders will be able to withdraw or transfer their PF account balance online from one employer to another employer, a move aimed at speedy settlement of claims.

EPFO have decided to set up a central clearance house which will be operational on July 1, which enable subscribers to apply online for settlement of the withdrawal and transfer of funds claims.

This move aimed to solve out the biggest problem faced by the subscribers while transferring their accounts at the time of change of job which at present takes months or sometime years.

This central clearance facility will expedite the process and also this facility will enable subscribes to track online the status of their applications for transfer and withdrawals.

EPFO is also planning to provide Permanent Account number to the account holders under which an employee once enrolled to EPF shall use the same account number when s/he moves to another employer. But this process will take considerable time since there are over 50 million EPF subscribers in India. 

Under the new system, the responsibility of verifying the details of the PF account from previous employers would be on the Employees Provident Fund Organization (EPFO). At present, employees have to get their applications verified from their employers for settlement of claims. 

All you will have to do is just file an online application for transfer or withdrawal and rest of the work like gathering all the information from your previous owner and current employer, required to fulfill your request shall be done by EPFO. Although the time for the completion of the whole process is not yet mentioned but obviously it will take much less time.

Attention Employers, download PF member data in excel fromwww.epfindia.gov.in from the Downloads Tab available after E-Sewa Login,fill the Missing Details, convert in text file  File (excel format) and upload same on pf website by 26-4-13.

Attention Employers, If erroneous ECR file was submitted during 2012-13, generate the correct ECR and contact EPFO Office.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

ONLINE PF

Attention Employers, download PF member data in excel fromwww.epfindia.gov.in from the Downloads Tab available after E-Sewa Login,fill the Missing Details, convert in text file  File (excel format) and upload same on pf website by 26-4-13.

Attention Employers, If erroneous ECR file was submitted during 2012-13, generate the correct ECR and contact EPFO Office.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

DVAT: TAX DEDUCTION AT SOURCE

Tax deduction at source @ 2% in case of registered dealers/contractors and @4% in case of unregistered dealers/contractors from the bill amount of works contracts executed will be made by the contractees to whom properties in goods is transferred through a works contract. Contractee will issue a certificate in Form DVAT 43 to the dealer/person transferring property and deposit the tax so deducted in an authorized bank in electronic mode or in the government treasury before the expiry of 15 days following the month in which the deduction is made.

A person required to deduct tax at source shall apply for registration in Form DVAT 44 and obtain Tax Deduction Account Number (TAN) within 7 days from the date on which tax was first deducted or deductible. TAN will be issued in form DVAT 45.

Persons who have been allotted TAN are required to deposit the tax deducted within 15 days following the month in which deduction is made and file a TDS return in Form DVAT 48 within a period of 28 days from end of the quarter in which the tax is deducted.

Any delay in depositing of the TDS amount and failure to file TDS returns is subjected to interest and penalties.

The works contractor/dealer on whose behalf the tax has been deducted at source can claim a credit for the TDS amount in the tax period in which he is issued the TDS certificate.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in

AMENDMENT TO CESTAT APPEAL FORMS

Circular No.:969/03/2013-CX

Date: 11/04/2013

The Board has decided to amend/revise the forms for filing appeal in the CESTAT. Accordingly, new forms for Central Excise (E.A.-3, E.A.-4, E.A.-5), Customs (C.A.-3, C.A.-4, C.A.-5) and Service Tax (S.T.-5, S.T.-6, S.T.-7) have been notified vide Notification Nos. 6/2013-Central Excise (N.T.), 37/2013-Customs (N.T.) and 5/2013-Service Tax, all dated 10.04.2013 respectively.

These forms have been made effective from 1.6 2013. Therefore, all appeals filed in the Tribunal on or after 1.6.2013 would be in the new form being prescribed.

The above changes may be taken note of by the field formations as well as trade for proper usage of the new forms from 1.6.2013. However, the old forms may continue to be used for a period of three months from the date of coming into effect of the new forms, i.e. till 31.08.2013. From 01.09.2013 onwards, no appeal shall be filed in the old forms.

Regards

CA. Mona Singhal

Partner

Arpit Gupta & Associates

Chartered Accountants

701, Nirmal Tower,

26, Barakhamba Road,

Connaught Place, Delhi-110001

Mobile:- +91-9873082769 

Website: www.caaga.co.in