ICAI Announcement for Student: ICAI cancelled CA May 2020 Examination

Examination Department
The Institute of Chartered Accountants of India
3rd July 2020
IMPORTANT ANNOUNCEMENT

1. The students are aware that vide Announcement dated 15th June 2020, the Institute, after taking in account the academic interests and health safeguards of students intending to appear in May 2020 Examinations, had enabled them to change their centre for appearance in May/ July 2020 Examination and/or to decide, at their free will, to “Opt-Out” of the May/ July 2020 Examinations with the carryover of all benefits including the fee paid and exemptions. The announcement also stated that Institute will review the situation of pandemic (COVID cases, MHA guidelines, Centre and State Government directions) in the first week of July 2020 and the conduct of examinations commencing from 29th July 2020 was to be strictly dependent upon prevailing Government’s advisories for the area in which a particular Centre is situated and, in any eventuality, the students were to be accommodated to November 2020 Examination cycle.

2. Further Announcement dated 17th June 2020 provided for FAQ’s relating to conduct of May/ July 2020 Examinations, change in centre and operation and procedure for Opt-Out to address the queries raised by the students. Announcements dated 20th June 2020 and 26th June 2020 extended the availability of the facility to “opt-out” to allow the students to make their decision which facility is available to the students even as on date.

Further Developments:

  • A. With Unlock1, the severity of COVID 19 Pandemic was expected to subside from the later part of June 2020, but has rather become more severe and, therefore a Review as per announcement dated 15 June 2020 has become necessary.
  • B. Ministry of Home Affairs, Government of India vide its Guidelines dated 29th June 2020 has extended the closure of all schools & academic Institutions and academic congregations till 31st July 2020. Select State Governments have put extended prohibitions in their respective States. Post the said Notification dated 29th June 2020, many Schools/ Academic Institutions have expressed their inability to provide their premises to conduct the Examinations.

On a review of above developments and in order to ensure the interest of its students and their well-being, the Institute has decided to cancel May 2020 Examinations and merge the May 2020 attempt with November 2020 Examinations, with a due carryover of all benefits already available to students including the fee paid and exemptions. The students who have made an application for May 2020 Examinations will have an option to change the group(s) of their appearance and centre of Examinations at the time of making a fresh application for November 2020 Examinations, which, subject to conditions prevailing at the relevant time, will start from 1st November 2020. It is again clarified that in this schema, the students will be free to exercise the options afresh for the groups that they intend to appear in the November 2020 examinations.

The students are advised to stay in touch with the Institute’s website www.icai.org for further announcements relating to November 2020 Examinations and in case of any queries can write at may2020exam@icai.in.

(S. K. Garg)
Additional Secretary (Exams)
Announcement – PDF Version

https://carajput.com/Admin/ProImage/icai-announcement-for-student-icai-cancelled-ca-may-2020-examination.pdf

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Certificate Form 15CA CB for making payments abroad

Certificate Form 15CA CB for making payments abroad

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www.carajput.com; certificate 15ca 15 cb

Generally, 15CA CB is not necessary to make a payment abroad in the event that costs fall below the defined limit. That’s because you’re a member of the Remittee. In the case of rent charged to NRIs / foreign vendor, Pursuant to Section 195 of the Income Tax Act 1961, any person liable for making a payment to non-residents shall subtract TDS at the rates in place from the payments rendered or credits granted to non-residents. The Reserve Bank of India also requires that, with the exception of such personal remittances that have been expressly removed, no remittances should be rendered to a non-resident without sending an undertaking in Form 15CA followed by an accountant’s certificate in Form 15CB, Remember that this is

  • Individuals making payment for bills/invoices must apply Form 15CA to the income tax portal each time before paying for the excess of expenses.
  • In fact, if the cumulative amount to be made each year reaches Rs 5 lakh, the Remitter must receive Form 15CB from the Chartered Accountant.

When you make a payment to a foreign seller, it is your duty to figure out if the Remittee is an NRI. This makes it easier for you to subtract TDS for the invoice to be received and to comply with the Income Tax Act. The aim of this undertaking and credential is to raise taxes as the remittance is made because it will not be practicable for the non-residents to reclaim the tax at a later date. The format of the undertaking to be registered electronically in Form 15CA and the format of the Accountant’s certificate in Form 15CB were notified vide Rule 37BB of the Income Tax Rules 1962

Revised guidelines on filing forms 15CA and 15CB

The latest guidelines to register electronic forms 15CA and 15CB are valid as of 1 April 2016. The comprehensive procedure for filing the form as per requirement is focused on new laws that follow. The income tax department has updated the rules governing the preparation and delivery of Form 15CA and Form 15CB (see previous Form 15CB regulations). As of 1 April 2016, updated rules became applicable.

Major changes are as follows –

  • Form 15CA and 15CB shall NOT be needed to be submitted by a person for remittance which does not require RBI approval
  • List of payments of a defined nature referred to in Rule 37BB, which do not require the submission of Form 15CA and Form 15CB, has been extended from 28 to 33 including import payments
  • Form No. 15CB will only be needed for non-resident payments which are taxable and surpass Rs. 5 lakhs.
  • Only Part A of 15CA is required when the volume of payment or the number of these payments made during the financial year does not exceed five lakh rupees
  • Part B of 15CA to be filled in the event of receiving a certificate from the Assessing Officer pursuant to section 197 or an order from the Assessing Officer pursuant to subsection (2) or subsection (3) of section 195. For example, Form 15CB is not necessary if order or certificate is obtained from AO
  • Part C of 15CA may be filled out after a Chartered Accountant obtains a certificate in Form No. 15CB
  • Part D of Type No.15CA where there is some amount not paid under the terms of the Act. For eg, Form 15CB is not needed if the remittance is not taxable
  • 1 lakh penalty will apply for each non-filing default for 15CA / CB certification

Forms 15CA and 15CB are of considerable interest nowadays. We professional at least have to issue one Form 15CB on a routine basis and 15CA form is also to be generated on behalf by the professional. Form 15CA is a Remitter Certification that is used as a method for collecting data about transfers that are taxable in the hands of non-resident users. It begins with an effective information retrieval program that the Income Tax Department will use to track foreign remittances separately and their existence to assess tax liability. The mechanism for picking cases for scrutiny has dramatically deteriorated in modern times and without an inspection, there was no test to ensure that taxable foreign remittances were made after-tax deduction or not. So the remittance path, i.e. Banks were led to acquiring Form 15CA and Form 15CB before allowing any remittance.

Authorized Dealers / Banks are now becoming more cautious in ensuring that all these Forms are collected by them before they are remitted, as now, in accordance with the revised Rule 37BB, they are expected to file Form 15CA obtained from the remitter, with the income tax authority for any proceedings under the Income Tax Act and also with the revised FEMA Guidelines released. In this regard, as per the updated RBI Guidelines, The RBI does not provide guidelines on the deduction of tax on international remittances at the source. The banks, therefore, encourage remitters to have these Type 15CA and 15CB even while buying imports.

Here’s an effort to render a detailed checklist/procedure for furnishing Form 15CA and Form 15CB effectively.

Step by step Process to File Form 15CA and 15CB all online summation with effect from April 1, 2016

Steps for procedures: We are used to helping our clients in transferring funds from India to out of India after Satisfy the sources and taxability of the fund, below four Steps for procedures which is needed to follow:

  1. Obtain Chartered Accountant (CA) Certificate in Form 15CB – CA must verifying (though his own procedures) the source is determining the sources of funds is the TDS is properly deducted on such source,
  2. Submit Form 15CA online,
  3. Submit documents to Bank where NRE accounts kept
  • Form 15CA
  • Form 15CB
  • Check (cheque) or Demand Draft for the amount
  • Request letter or Form as per respective bank’s requirement
  • Complete any other document, requirement or formality
  1. Transfer: On verification of submitted documents, Bank will process the transfer and credit NRE account.

Mandatory details required when filing in the forms 15CA and 15CB certification

1.     Details of Remitter
    • Complete Name of the remitter
    • Complete address, an email with the phone number of the remitter
    • permanent account number availability of the remitter
    • Complete Main place of business of the remitter
    • The E-Mail address and phone no. of the remitter
    • Status (today) of the person remitter the transaction  (company/ firm /other)
2.     Details of the Remittance
    • Proposed date of remittance
    • Nature of transaction as per agreement (invoice copy to be asked from client)
    • Source of fund proof (if any)
    • Country to and Currency in which remittance is made
    • Amount of remittance in Indian currency
3.     Bank details of the Remitter
    • Name of bank of the remitter
    • Name of the Bank with Branch details
    • BSR code of Bank from which remittance is to be made –
4.     Details of Remittee
    • Complete Name of the remittee :
    • Complete address, email with phone number of the remittee
    • Details of Country of the remittee (In which remittance is to be made)
    • Complete Main place of the business of the remittee
5.     Documents from the Remittee
    • Form 10F duly filled by the authorized person of the remittee.
    • Document of Tax residency certificate from the remittee (Tax registration of the country in which remittee is registered).
    • Section under which order/certificate has been obtained ( if any )
6.     Other details needed
    • Father’s name of the authorised person /signing person
    • Designation of the authorised person /signing person
    • Proof of payment of Tax on fund transfer from India,
    • Proposed date of remittance –
    • Complete name of such bank and branch –
    • Supporting Documents for Remittance
    • The digital signature of the person who required to fund Transfer,

If you’re searching for more current information on these forms, their processes or any enforcement relevant to them, our team of experts will support.

We will also assist you in setting up your business in India, including accounting, bookkeeping, payroll, auditing, valuation, secretarial compliances, trademark registration, market structuring, and consulting services. If you need some support in this regard please visit www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

STARTUP INDIA PORTAL HAS BEEN FINALLY LAUNCHED

STARTUP INDIA PORTAL HAS BEEN FINALLY  LAUNCHED

www.carajput.com; Start-up

www.carajput.com; Start-up

  • Information Availability: The portal and mobile app provide up-to- date information on various notifications/ circulars issued by various Government ministries/ departments, towards creation of a conducive ecosystem for Startups. The portal and mobile app provide information regarding incubators and funding agencies recognized for the purpose of recommending Startups (as part of Startup recognition application). A comprehensive list of FAQs is also available to help Startups, Incubators and Funding Agencies use the portal and mobile app more effectively.
  • Startup India Hub:The Startup India Hub, which has been established within Invest India, will be a single point of contact for the entire Startup ecosystem which would enable exchange of knowledge. The Hub will work in a hub and spoke model with Governments, VCs, Angel Funds, Incubators, Mentors, etc. It will assist Startups through their lifecycle, on all aspects, such as providing mentorship, incubator facilities, IPR support, funding etc. The Hub will be operational from 10:00 AM to 5:30 PM on working days and can be reached via the toll free number: 1800115565 or the email ID: dipp-startups@nic.in
  • Application for Startup Recognition:Entities that fulfill the criteria as per the definition of “Startup” and are incorporated/ registered in India, can obtain recognition as a “Startup” to avail various benefits listed in the Startup India Action Plan. The process of recognition is simple and user friendly and involves a single page application form that a user can fill either through a web interface or through mobile app. Formats of the recommendation/ support letters that need to be attached as part of the application form have been published on the portal and mobile app.
  • Real Time Startup Recognition: A real time recognition certificate is provided to Startups on completion of the application process. A digital version of the final certificate of recognition is available for download, through the portal and mobile app. A request for certificate of eligibility for tax exemptions from Inter-ministerial Board will be made simultaneously by selection of a simple option.
  • Verification of Recognition Certificate:The certificate of recognition is verifiable through the portal and mobile app by entering the Startup Recognition/ Certificate Number.
  • Approval of Inter-Ministerial Board: DIPP has also setup an Inter-Ministerial Board to verify the eligibility of Startups opting to avail Tax and IPR related benefits and to provide a certificate of eligibility to innovative Startups.

LINKS

  • Official site startup India portal : http://startupindia.gov.in/
  • To download mobile app of start up : http://startupindia.gov.in  /download-app.php

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Update on services provided by Government or Local Authority

Update on services provided by Government or Local Authority

www.carajput.com;Financial Service

www.carajput.com;Financial Service

Services (except few) provided by Government or Local Authority to business entities are covered under Reverse Charge Mechanism w.e.f 1st April 2016 meaning thereby business entities are required to pay Service Tax on services received from Government or Local Authority. To curtail the dilemma regarding the non-taxability of various charges received by the government like registration fee, the Central Government has issued Notification No. 22/2016-ST. In addition, changes have been made in Point of Taxation Rules, 2011 and Service Tax (Determination of Value) Rules, 2006 vide Notification No. 23/2016-ST, and Notification No. 24/2016-ST, respectively.

Changes in Mega Exemption Notification to exempt following services:-

  1. In entry 39, benefit of exemption has been extended to services provided by Government or Local Authorities by way of any activity in relation to any function entrusted to a municipality under article 243 W of the Constitution. Earlier this exemption is available only to Governmental Authorities.
  2. Services provided by Government or a local authority to another Government or local authority:
    Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994
  3. Services provided by Government or a local authority by way of issuance of passport, visa, driving license, birth certificate or death certificate
  4. Services provided by the Government or a local authority where the gross amount charged for such services does not exceed Rs. 5000/-
    Provided that nothing contained in this entry shall apply to services specified in sub-clauses (i), (ii) and (iii) of clause (a) of section 66D of the Finance Act, 1994
    Provided further that in the case where a continuous supply of service, as defined in clause (c) of rule 2 of the Point of Taxation Rules, 2011, is provided by the Government or a local authority, the exemption shall apply only where the gross amount charged for such service does not exceed Rs. 5000/- in a financial year.
  5. Services provided by Government or a local authority by way of tolerating non-performance of a contract for which consideration in the form of fines or liquidated damages is payable to the Government or the local authority under such contract
  • Services provided by Government or a local authority by way of-
    (i) registration required under any law for the time being in force;
    (ii) testing, calibration, safety check or certification relating to protection or safety of workers, consumers or the public at large, required under any law for the time being in force
  1. Services provided by Government or a local authority by way of assignment of the right to use natural resources to an individual farmer for the purposes of agriculture
  2. Services by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution
  3. Services provided by Government or a local authority by way of assignment of the right to use any natural resource where such right to use was assigned by the Government or the local authority before the 1st April 2016
    Provided that the exemption shall apply only to service tax payable on one-time charge payable, in full upfront or in installments, for assignment of the right to use such natural resource
  4. Services provided by Government or a local authority by way of allowing a business entity to operate as a telecom service provider or use radiofrequency spectrum during the financial year 2015-16 on payment of license fee or spectrum user charges, as the case may be
  5. Services provided by the Government by way of deputing officers after office hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges (MOT).

Changes in Point of Taxation Rules, 2011:-

Generally, the point of taxation in case of reverse charge is the date of payment. Further, in case of payment is not made within a period of three months the point of taxation shall be the date immediately following a period of three months.

Now in the specific case where services are provided by the Government or local authority to any business entity; the point of taxation shall be the earlier of the dates on which, –

  1. Any payment, part or full, in respect of such service, becomes due, as specified in the invoice, bill, challan or any other document issued by the Government or local authority demanding such payment; or
  2. Payment for such services is made.

Changes in Service Tax (Determination of Value) Rules, 2006:-

As per rule 6, in sub-rule (2), in clause (IV), the value of taxable service, does not include interest on delayed payment of any consideration for the provision of services or sale of the property, whether moveable or immoveable. Now the following proviso has been inserted:

“Provided that this clause shall not apply to any service provided by Government or a local authority to a business entity where payment for such service is allowed to be deferred on payment of interest or any other consideration.”

Hence interest or any other consideration paid for deferment of payment against services provided by the Government or local authority will not be excluded for the purpose of calculation of the value of taxable service.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 9, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 9, 2016

29

DIRECT TAX

IT: There cannot be a notice for re-assessment inasmuch as the question of re-assessment arises only when there is an assessment in the first instance – M/s Standard Chartered Finance Ltd. Vs. CIT, Bangalore & Anr (2016 (3) TMI 150 – Supreme Court)
IT – VDS’ 2016: Cases where notices have been issued or search has taken place or individuals against whom Govt. has prior information from another Country won’t be eligible for scheme.
INCOME ACCRUEL OF INTREST :Where assessee was following mercantile system of accounting, once interest amount had been credited to assessee and tax had also been deducted by payer, assessee could not take plea of not offering it as income on ground that he had not actually received same – [2016]  (Mumbai – Trib.)
• CBDT notifies 15% depreciation allowance on Oil Wells. Notification 13/2016.

INDIRECT TAX

ST: Management Maintenance and Repair Services – Whether notional interest to be taken as value of service – prima facie case is against the appellant since Notional interest is to be included in the value of services – Satya Prakash Builders Pvt. Ltd. Vs. CCE&ST, Jaipur-I (2016 (3) TMI 137 – CESTAT New Delhi
• 6% Tax on online advertisement / Google Tax, Such provisions are applicable from 1st June, 2016.The levy clearly is targeted to tax various online advertisements companies like YouTube , Google , Facebook , Twitter etc.

OTHER UPDATES

Bank Branch Statutory Audit: Banks have received the lists from RBI and commenced sending emails to the prospective Auditors.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

HIGHLIGHTS OF RAILWAY BUDGET 2016-17

Highlights of Railway Budget for 2016-17.

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www.carajput.com; Highlight of Railway Budget

Following are highlights of the Railway Budget for 2016-17

(Apr-Mar), presented by Railway Minister Suresh Prabhu in Parliament today:

GENERAL

* Budget reflects aspirations of the entire railway family

* Rail Budget reflects aspiration of all

* Core objective is to improve individual experience

* Rail Budget is the vision of PM Modi

* Making all efforts to turn PM’s vision into reality

* Railways facing headwinds on tepid economic growth

* Railways have stood the test of time

* Need to overhaul Railways’ work culture

* Need to bring in new approach

* Will lay out three pillars of strategy

* Looking at new areas for generating revenues

* Need to reorganise, rejuvenate, restructure railways

* Railways facing headwinds from 7th pay panel burden

* Will engage with global agencies for funds

* Absolute deductions planned in expenses such as diesel

* Have significantly reduced cost of power procurement

* Will revisit all rules, structures to overhaul railways

* To improve procurement practises at par with international norms

* New revenues through changes in freight policies

* Punctuality has gone up to almost 95%

* To include implementation reports in Budget

* Carry 23 mln passengers every day

* Special teams to screen railway operations

* To introduce 33% quota for women passengers

FY17 ESTIMATES

* FY17 investment seen at 1.21 trln rupees

* Investment rate of capex has increased substantially

* FY17 capital expenditure seen 1.2 trln rupees

* FY17 revenue seen 1.84 trln rupees

* Capex to grow exponentially

* Ramped up capex in FY17

* FY17 operating ratio seen 92%

* Increasing rigour on cost optimisation in FY17

* Freight’s contribution to earnings seen 67%

* FY17 gross budgetary support seen 400 bln rupees

* 44 new projects planned FY17 worth 927 bln rupees

FY16 REVISED

* 87.2 bln rupees saved from last year budget estimate

* FY16 operating ratio seen 90%

* FY16 loss from subsidising passenger fares seen 300 bln rupee

* Saving from previous Budget estimates 787 bln rupees

INFRASTRUCTURE, MODERNISATION

* To be at forefront of infrastructure growth

* Railways will be at forefront of infra growth

* To generate employment for 90 mln man days by FY18

* To commission broad gauge lines at 7 km/day FY17

* FY17 track commissioning aim 2,800 km

* Aim to have zero direct discharge of human waste by 2020

* Reserved accommodation to be available on demand by 2020

* Aim 80 km/hour avg speed of express train by 2020

* Freight speed seen at 50 km/hr by 2020

* To eliminate all unmanned level crossings by 2020

* Taken action on 139 Budget announcements made last yr

* To run semi high-speed trains on Golden Quadrilateral by 2020

* Action initiated on 139 FY16 Rail Budget announcements

* To meet reservation on demand by 2020

* Will take a zero-based budgeting approach

* To take zero-base budgetary approach for freight

* To conduct recruitment online

* To set up Margao, Hazira ports FY17 via PPP

* To spend 8.5 trln rupees over 5 yrs to modernise rail infra

* To hasten electrification of railways working with Power Min

* To build more dedicated freight corridors

* To up FY17 allocation for electrification by 50%

* To generate employment of 140 mln man-days in 2018-19

* 65,000 additional berths generated in FY16

* Taken steps to significantly improve svcs for rail passengers

* Dedicated IVRS system receiving over mln feedback calls daily

* Set up mechanism to get direct feedback from customers

* Responsiveness to customer needs touched new heights this yr

* Initiated IT-based internal audit

* Signed MoUs with some zonal railways

* To move to contract award system online in FY17

* Social media being used as a tool to bring transparency

* Mission to ensure transparent bidding process

* To set up 2 loco units with 480 bln rupee invest

* To set up new loco units with order book of 400 bln rupees

* Aim to have 100 WiFi-enabled stations this yr, 400 in next 3

* To redevelop stations by different models

* Finalised 2 locomotive factories bids under ‘Make In India’

* E-ticket capacity 7,000 tickets/minute now vs 2,000 earlier

* Introduced 1,780 automatic ticket vending machines

* Initiated capacity augmentation on some busy routes

* Developed application to maintain centralised land data

* To open cashless ticketing facilities for foreigners in 3 mos

* To introduce tickets with bar codes

* To introduce bar-coded tickets

* To start track management system under Digital India

* To introduce bar-coding of tickets at major stations

* To allow cancellation of tickets via call on 139

NEW TRAINS, LINES

* Plan to electrify 2,000 km track in FY17

* Track laying to be at 13km/day in FY18, 19km/day in FY19

* North-South dedicated freight corridors in Delhi-Chennai

* Plan Kharagpur-Vijaywada freight corridor

* Plan Mumbai-Kharagpur freight corridor

* Decongestion on Jalandhar-Jammu line going on

* To put 3 freight corridor projects on high priority

* Mizoram, Manipur to come under broad gauge network soon

* To launch long distance fully unreserved Antyodaya trains

* To have more unreserved passenger coaches

* Proposed dedicated freight corridor for east-west, east coast

* Proposed dedicated freight corridors for north-south

* Overnight double-decker trains named ‘Uday trains’

* Overnight double-decker trains for better access on busy line

BORROWING

* Will scout overseas for rupee bonds

* To scout international markets for rupee bonds

INVESTMENT PUSH

* Secured funding from LIC at favourable terms

* Bankable projects assured of funding now

* LIC to invest 1.5 trln rupees over 5 years

* 1 rupee invest in rail can impact econ output by factor of 5

* In partnership with SAIL, NTPC, coal ministry on funding

* Signed MoUs with 6 states for JVs

* Got expressions from 17 states to form JVs

* MoUs with zonal railways for quantifying performance

* Forming JV with states for local rail projects

* Availing multilateral financing for station development

* Cabinet approved redevelopment of 400 stations via PPP model

* Bidding process in advanced stage to redevelop 4 stations

* To undertake bidding to redevelop some big stations next yr

* Bankable railway projects to be completed in 3-4 years

MISCELLANEOUS

* To raise quota of lower berth for women, senior citizens

* To build additional toilets in 475 stations before FY16 end

* Aim 17,000 bio-toilets before FY16 end

* Initiated audit for punctuality of passenger trains

* Disposable bed rolls at all stations for all classes

* 311 railway stations currently under CCTV surveillance

* All stations to have CCTV surveillance in phased manner

* Anti-falling measures in suburban coaches

* To eliminate accidents by adopting latest technology

* Entered into R&D pacts with Korea, Japan to improve ops

* All railway stations to be under CCTV surveillance in phases

* Supporting 120,000 concurrent users now vs 40,000 earlier

* Installed CCTV cameras at 311 stations

* To introduce ‘Deen Dayalu’ coaches

* Every customer a brand ambassador for railways

* To upgrade Baroda rail institute to full fledged university

* Working on implementing Kakodkar panel report on safety

* To have Hamsafar, Tejas, Uday coaches for reserved passengers

* Tajas speed to be 130 km/hour

* Deen Dayalu coaches for unreserved passengers for long travel

* To add 2 or 4 more unreserved coaches in long distance trains

* New catering policy for multipurpose stalls at stations

* To extend e-catering services to all 408 A1, A2 stations

* IRCTC to introduce local cuisines available on demand

* To make local cuisine available on demand on trains

* IRCTC to unbundle catering services

* Set up Swachh Rail waste aggregation and recycling centre

* To install 30,000 bio-toilets at stations

* To start Clean-My-Coach service on pan-India basis

* To introduce CCTV coverage at all Tatkal counters‎

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-233 433 33

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 28, 2016

CORPORATE & PROFESSIONAL UPDATE FEBRUARY 28, 2016

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TAXABILITY OF SERVICES PROVIDED BY GOVERNMENT

Finance Act, 2015 has proposed to cover all services provided by Government or local authority to business entities under service tax net however effective date of this amendment was awaited since long. Now, Central Government vide Notification No. 06/2016 ST dated 18th February 2016 appointed the 1st April 2016 as the date on which the aforesaid provisions will come into effect. Simultaneously, scope of mega exemption has been extended to cover services provided by Government or a local authority to a business entity with a turnover up to rupees ten lakh in the preceding financial year (Notification No. 07/2016-ST).

Further, by virtue of notification no. 30/2012 ST dated 20.06.2012 read with Rule 2(1)(d) of Service Tax Rules, 1994, in case of service provided or agreed to be provided by Government or Local Authority to a business entity, the recipient of service is liable for payment of service tax under reverse charge mechanism however date of this amendment is still awaited.

Therefore, w.e.f. 1st April 2016, service tax will be applicable on following services provided by Government or Local Authority:

S. No. Nature of Service Taxability Who is liable to pay
1. Services by Department of Post provided to Government Non-taxable NA
2. Services by department of Post provided to person other than Government Taxable# Service Provider i.e. department of post
3. services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport Taxable# Service Provider
4. Transport of goods or passengers Taxable# Service Provider
5. Renting of immovable property service to business entity Taxable# Service Provider
6. Renting of immovable property to person other than Business Entity Non-taxable NA
7. Other services provided to business entity Taxable# Service Receiver*
8. Other services provided to person other than business entity Non-taxable

Notification for reverse charge is yet to come.

exemption is available if services are provided to business entity having turnover in preceding F.Y. is up to Rs. 10 lakh.

Here it is worthwhile to mention that any services provided by government will remain exempt if the same is covered under any separate clause of negative list of service or mega exemption notification

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 011-233 433 33

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)