Entries from August 2010 ↓

How to Check Income Tax Refund Status

Step 1: Login to E-filing website to check if your return for AY 2009-10 has been processed

https://incometaxindiaefiling.gov.in/portal/login.do

Step 2: Go to “My Account” -> select “E-Filing Processing Status”

Step 3: Enter Assessment Year -> 2009-10 and click on ‘Submit’

Step 4: View Processing Status for your return (see highlighted box below). In case of Refund, go to Step 5 to check Refund status. In case or No Demand No refund or Demand, await Intimation from CPC Bangalore

Step 5: To view Refund Status go to Tax Information Network (TIN) Website : https://tin.tin.nsdl.com/oltas/refundstatuslogin.html and enter PAN and Assessment Year and click ‘Submit’

Step 6: View refund Status. In case status is ‘dispatched by speed post’ -> track speed post by clicking on the hyperlinked Speed Post Ref. no: starting with “EY…”. In case ‘Mode of Payment’ is ‘ECS’ then check your Bank Account for Direct Deposit.

Step 7: Or go to http://services.ptcmysore.gov.in/speednettracking/. Enter the ‘Speed Post Ref. no’ in ‘Article Number’ and ‘Date’ in ‘Date of booking’ and click on ‘Track’

Step 8: View Status of Speed Post delivery -> click on ‘Movement’ to view tracking of article (see highlighted box below).

Step 9: Refund may be verified for correctness and in case of any error, the same may be brought to the notice of CPC, Bangalore. Intimation sheet will be directly mailed by Speed Post from CPC Bangalore.

www.mukeshraj.com

Service tax on on-going works contracts entered into prior to 01.06.2007

Circular No. 128/10/2010-ST, dated 24-8-2010

It has been brought to the notice of the Board that the following confusions/disputes prevail with respect to long term works contracts which were entered into prior to 01.06.2007 (when the taxable service, namely, Works contract came into effect) and were continued beyond that date:

(i)             While prior to the said date services like Construction; Erection, commissioning or installation; Repair services were classifiable under respective taxable services even if they were in the nature of works contract, whether the classification of these activities would undergo a change?

(ii)            Whether in such cases of continuing contracts, the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007 under Notification No. 32/2007-ST dated 22/05/2007 would be applicable?

2.         The matter has been examined.  As regards the classification, with effect from 01.06.2007 when the new service ‘Works Contract’ service was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 01.06.2007.   This is because ‘works contract’ describes the nature of the activity more specifically and, therefore, as per the provisions of section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after that date.

3.         As regards applicability of composition scheme, the material fact would be whether such a contract satisfies rule 3 (3) of the Works Contract (Composition Scheme for payment of Service Tax) Rules, 2007.  This provision casts an obligation for exercising an option to choose the scheme prior to payment of service tax in respect of a particular works contract.  Once such an option is made, it is applicable for the entire contract and cannot be altered.   Therefore, in case a contract where the provision of service commenced prior to 01.06.2007 and any payment of service tax was made under the respective taxable service before 01.06.2007, the said condition under rule 3(3) was not satisfied and thus no portion of that contract would be eligible for composition scheme.   On the other hand, even if the provision of service commenced before 01.06.2007 but no payment of service tax was made till the taxpayer opted for the composition scheme after its coming into effect from 01.06.2007, such contracts would be eligible for opting of the composition scheme.

4.         The Board’s previous Circular No. 98/1/2008-ST dated 04.01.2008 and the ratio of judgement of the High Court of Andhra Pradesh in the matter of M/s. Nagarjuna Construction Company Limited vs. Government of India (Writ Petition No. 6558/2008, dated 7-6-2010) are in line with the above interpretation.

5.         Trade Notice/Public Notice may be issued accordingly.

GUIDELINES FOR SELECTION OF CASES FOR SCRUTINY DURING 2010-11

GUIDELINES FOR SELECTION OF CASES FOR SCRUTINY DURING 2010-11

  1. Selection of cases for scrutiny during the financial year 2010-11 will be done primarily through CASS this year. Manual Selection for scrutiny this year will be limited only to a few categories of cases listed below.
  2. List of cases selected during each month in accordance with the selection criteria mentioned below shall be submitted by the Assessing Officers to their respective Range heads by the 15th of the following month and also displayed on the Notice Board of their office.
  3. These guidelines are meant only for the use of officers of the Income Tax Department. These are not be disclosed even if a request is made under the right to Information Act, in view of the decision of the Central Information Commission in the case of Shri Kamal Anand Vs Director (ITA-II), CBDT (Order No. CIC/AT/2007/00617 dated 21.02.2008).

SELECTION CRITERIA APPLICABLE TO ALL RETURNS AT ALL STATIONS:

a)    Value of international transaction as defined u/s 92b exceeds Rs. 15 crores.

b)    Cases involving addition in an earlier assessment year in excess of Rs.10 lacs on a substantial and recurring question of law or fact which is confirmed in appeal or is pending before an appellate authority.

c)    Cases involving addition in an earlier assessment year on the issue of transfer pricing in excess of Rs.10 Lakhs or more.

d)    Assessments in survey cases for the financial year in which survey was carried out This criteria will not apply if all of the following conditions are fulfilled:

(i)            There are no impounded books or documents.

(ii)           There is no retraction of disclosure made during the survey.

(iii)          Declared income, excluding any disclosure made during the survey, is nor less than the declared income of the preceding assessment year.

e)    Assessment in Search & Seizure cases to be made under sections 158B, 158BC, 158BD, 153A 153C & 143(3) of the IT Act.

f)     Assessments initiated under section 147 / 148 of the IT Act.

g)    Assessing Officer may select any return of scrutiny after recording the reasons and obtaining approval of the CCIT/DGIT. The cases under this category should be selected if there are compelling reasons and the case is not selected through CASS. There cases should be watched by CCIT / CIT in respect of the quality of assessment.

External Commercial Borrowings (ECB) Policy – Liberalisation- Hotels, Hospital and Software

RBI/2010-11/ 167 August 12, 2010
A.P. (DIR Series) Circular No.08

To

All Category – I Authorised Dealer Banks

Madam / Sir,

External Commercial Borrowings (ECB) Policy – Liberalisation

  1. Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to para 2 (iv) of the A.P. (DIR Series) Circular No. 46 dated January 02, 2009 relating to External Commercial Borrowings (ECB) Policy.
  2. At present, entities in the services sectors viz., Hotels, Hospitals and Software are allowed to avail of ECB up to USD 100 million per financial year under the Automatic Route, for foreign currency and/or Rupee capital expenditure for permissible end-uses. On a review, it has now been decided to consider applications from the corporates in the Hotel, Hospital and Software sectors to avail of ECB beyond USD 100 million under the Approval Route, for foreign currency and / or Rupee capital expenditure for permissible end-uses. The proceeds of the ECB should not be used for acquisition of land.
  3. The modifications to the ECB guidelines will come into force with immediate effect. All other norms of the extant ECB policy relating to eligible borrower, recognized lender, end-use, all-in-cost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements would continue to apply in the case of ECBs availed of by the aforesaid sectors under the Automatic Route as indicated above.
  4. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
  5. The directions contained in this circular have been issued under sections 10(4) and 11 (1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law.

Yours faithfully,
(Salim Gangadharan)
Chief General Manager-in-Charge