1. TAXPERT PROFESSIONALSOUTLOOK
Volume – I April 2012
Office Newsletter
For the month of April 2012
Taxpert Professionals Private Limited
Adding value with quality and commitment
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2. We are what we repeatedly do. Excellence,
therefore, is not an act but a habit.
Aristotle
The month of April had been hectic and busy with year closing. The
year 2011-12 closed with very positive results. Future is promising,
charming and beautiful. We are creating the future for ourselves,
for our employees and for our clients and society in general. We
take full responsibility.
Overall year was dynamic, we thrive to achieve the same success
this year as well and wish to give the best services to our clients. At
Taxpert, we value relationship. Our relationships are one of our key
assets and maintaining them is one of our core value. We are all
inventors, each sailing out on a voyage of discovery, guided each by
a private chart, of which there is no duplicate. We are international
firm, providing world class services to our clients, this is possible
with our dedicated, talented and professional team which is closely
bind by core values and warmth of being part of Taxpert.
Taxpert believes in hardwork, faith and Patience. It endeavours
continuously to provide the best quality service to its clients and
values its human resource and thrives to provide most employee
friendly environment for its employees.
…………………………….From the Desk of CA. Vinay Bhushan
2nd May 2012
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3. Direct TAX
(iii) has received a certificate of tax deduction in Form 16 from his
employer which mentions the PAN, details of income and the tax
deducted at source and deposited to the credit of the Central
Government;
Exemption from requirement of furnishing a
return of income (iv) has discharged his total tax liability for the assessment year
through tax deduction at source and its deposit by the employer to
The Central Government in exercise of the powers u/s 139(IC) of the the Central Government;
Income Tax Act, vide notification No. 9/2012 dated 17.02.2012
exempts the following class of persons from the requirement of the (v) has no claim of refund of taxes due to him for the income of the
furnishing the return of Income u/s 139 (IC) of the Income Tax Act, assessment year, and
for the Assessment Year 2012-13. The exemption is subject to
certain condition as listed below: (vi) has received salary from only one employer for the assessment
year.
1) Class of persons - An individual whose total income for the
relevant assessment year does not exceed five lakh rupees and The exemption from the requirement of furnishing a return of
consists of only income chargeable to income-tax under the income will not be applicable where a notice under the following
following head,- sections has been issued for filing a return of income for the
relevant assessment year.
(i) “Salary”;
(ii) “Income from other sources”, by way of interest from a saving
account in a bank, not exceeding ten thousand rupees.
2) Conditions - The individual referred to in para 1,-
(i) has reported to his employer his Permanent Account Number
(PAN);
(ii) has reported to his employer, the incomes and the employer has
deducted the tax thereon;
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4. Consolidated FDI Policy
The consolidated FDI policy document is a single reference point for
FEMA investors and regulators. The first such consolidation was released
in March, 2010 after which it has been updated every six months.
The ‘Circular 1 of 2012’ was issued on 10 April 2012 as fifth edition
of the consolidated policy document. The significant changes
External Commercial Borrowings (ECB) for
introduced in this edition of the Circular are:
Infrastructure facilities within National
Manufacturing Investment Zone (NMIZ) (i) Policy for FDI in Commodity Exchanges:
At present, foreign investment, within a composite (FDI & FII) cap of
As per the extant guidelines, the infrastructure sector for the 49%, under the Government approval route-i.e. through the Foreign
purpose of availing ECB is defined to include (i) power, (ii) Investment Promotion Board (FIPB)-is permitted in commodity
telecommunication, (iii) railways, (iv) road including bridges, (v) sea exchanges. Within this overall limit of 49%, investment by
port and airport, (vi) industrial parks, (vii) urban infrastructure Registered FIIs, under the Portfolio Investment Scheme (PIS) is
(water supply, sanitation and sewage projects), (viii) mining, refining limited to 23% and investment under the FDI Scheme is limited to
and exploration and (ix) cold storage or cold room facility, including
for farm level pre-cooling, for preservation or storage of agricultural
and allied produce, marine products and meat. Developers of SEZ
were also allowed to provide such infrastructure facilities within the
SEZ.
Keeping in view the infrastructural needs of the proposed NMIZs, it
has now been decided to allow developers of NMIZ also to avail of
ECB under the "approval route" for providing infrastructure facilities
within the NMIZ, as indicated above. Press release for the same was
issued dated February 29,2012.
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5. 26%. It has now been decided to liberalise the policy and to holding of an FII to 10% of the capital of the company and the
mandate the requirement of Government approval only for FDI aggregate limit for FII investment to 24% of the capital of the
component of the investment. Such investment by FIIs, in company. This aggregate limit of 24% can be increased to the
commodity exchanges, will, therefore, no longer require sectoral cap/statutory ceiling, as applicable, by the Indian Company
Government approval. This change aligns the policy for foreign concerned, through a resolution by its Board of Directors, followed
investment in commodity exchanges, with that of other by a special resolution to that effect by its General Body. It has been
infrastructure companies in the securities markets, such as stock clarified that this would be subject to prior intimation to RBI.
exchanges, depositories and clearing corporations.
(v) Investment by Foreign Venture Capital Investors (FVCIs):
(ii) Non Banking Finance Companies (NBFC)-clarification on
Government has permitted FVCIs to invest in the eligible securities
‘leasing’:
(equity, equity linked instruments, debt, debt instruments,
It has been clarified that the activity of ‘leasing and finance’, which debentures of an IVCU or VCF, units of schemes / funds set up by a
is one among the eighteen NBFC activities, where induction of FDI is VCF) by way of private arrangement / purchase from a third party
permitted, covers only ‘financial leases’ and not ‘operating leases’. also, subject to stipulated terms and conditions. SEBI registered
This provision intends to clarify the coverage of the term ‘leasing FVCIs have also been permitted to invest in securities on a
and finance’, insofar as the NBFC sector is concerned. recognized stock exchange subject to the provisions of the SEBI
(FVCI) Regulations, 2000. These provisions have now been reflected
(iii) Import of capital goods/ machinery/ equipment (including
under the FDI policy as well.
second-hand machinery)-conversion to equity:
(vi) Investment by ‘Qualified Financial Investors (QFIs)’:
With a view to incentivising machinery embodying state-of-the-art
technology, compliant with international standards, in terms of Government has permitted QFIs to invest (DPs), in equity shares of
being green, clean and energy efficient, second-hand machinery has listed Indian companies as well as in equity shares of Indian
now been excluded from the purview of this provision. companies which are offered to public in India in terms of the
relevant and applicable SEBI guidelines/regulations. QFls have also
(iv) Clarification on investment by Foreign Institutional Investors
(FIIs): been permitted to acquire equity shares by way of right shares,
bonus shares or equity shares, on account of stock
Currently, an FII may invest in the capital of an Indian Company split/consolidation or equity shares on account of amalgamation,
under the Portfolio Investment Scheme which limits the individual demerger or such corporate actions, subject to the prescribed
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6. investment limits. These provisions have now been reflected under
the FDI policy as well.
Contributed by CA. Sudha G. Bhushan
MAHARASHTRA VAT
(i) The Commissioner of Sales Tax has issued notification under Rule
17A dated 4.2.2012. By this notification the Commissioner has
notified Annexures to be filled up by the dealers who are not under
VAT Audit.
(ii) The Commissioner of Sales Tax has issued notification dated
4.2.2012 under Rule 17A by which he has notified that the dealers
not under VAT Audit should submit Annexures J1 etc. along with last
return and the period for filing such last return is notified as 90 days
from the end of the period of last return.
(iii) The Government of Maharashtra has issued Notification dated
16.2.2012 by which amendments are effected in Rules 52, 53 and
54. The amendments appears to be corrective in nature.
Contributed by Mr. Milin Shah
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7. Corporate Law update
REGISTRATION OF COMPANIES OR LLPs BY
PROFESSIONALS [www.mca.gov.in]
The MCA has issued General Circular No. 02/2012 dtd. 01.03.2012
clarifying that where at the time of incorporation of companies,
one of the objects is to carry on the business of banking, insurance
or to practice the profession of chartered accountancy, cost
accountancy and company secretaries, then the concerned
Registrar of Companies shall incorporate the same only on
production of in-principle approval/NOC from the concerned
regulator/professional institutes. It is also clarified that where one
of the objects is to carry on the business/profession of
architecture, then the concerned Registrar of Companies/Registrar
of LLP shall incorporate the same only on production of the in-
principle approval/NOC from the concerned regulator.
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8. Laugh it off "Earth is 98% full. Please delete anyone you can."
Error Messages "Ooops. My brain just hit a bad sector."
"Cannot find REALITY.SYS...Universe Halted."
"The world will end in 5 minutes. Please log out..."
"WARNING: Keyboard Not Attached. Press F10 to
Continue."
"COFFEE.EXE missing. Insert cup and press any key."
"Bad Command or File Name. Good try, though."
"Press any key... no, no, no, NOT THAT ONE!"
"Enter any 11-digit prime number to continue..."
"Error reading FAT record. Try the SKINNY one? (Y/N)"
"General Failure's Fault. Not Yours."
"Hit any user to continue."
"Scandisk is now checking your hard disk. You can start
praying."
"Smash forehead on keyboard to continue."
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9. Achievement and Success:
 CA. Usha Tolani have joined the Team Taxpert. We
welcome her in the family and wish her very good and
promising career ahead.
 Brother of Abhineet Shukla got scholarship in his exams. We
are very proud of him and wish him all the best.
 The Budget publication of company was appreciated by
clients and is viewed more than 1000 times. The efforts of
team especially Milin, CA. Garima, CA.Shilpa and Hema are
much esteemed.
 CA. Sudha G. Bhushan addressed the Company secretary
members on Budget Implication on Foreign Investors. The
presentation was shared with 150 Members and was
selected for being uploading in the official website of
Institute of Company Secretaries of India.
http://www.icsi.edu/docs/wiro/efocus/Mar2012.pdf
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10. Musings….
Anniversary of CA. Shilpa
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