Urgent Requirement for CA at SMC Global Securities Ltd.

We would like to introduce ourselves, as one of the leading financial company in India. SMC Global is one of the largest and most reputed Investment Solutions Company that provides a wide range of services to its substantial and diversified client base. Founded in 1990 SMC is a full financial services firm catering to all classes of investors. The company is having its corporate office in New Delhi with regional offices in Mumbai, Kolkata, Chennai, Ahemdabad, Cochin, Hyderabad, Jaipur plus a growing network of more than 1350 offices across over 350+ cities/ towns in India and overseas office in Dubai. > The company has a growing network of more than 1350 offices across over 350+ cities/ towns in India and overseas office in Dubai. The working atmosphere is highly charged with a young and energetic team of qualified professionals dedicated and highly motivated workforce of more than 3,500+ professional. > SMC is contributing one of the highest average daily turnovers in NSE, F&O, BSE, NCDEX & MCX. We are a growing organization, which is an ideal place for individuals with high ambitions. So here's your opportunity to embark on a challenging and exciting growth path by joining us.

Walk-in Details	Date-6th October to 10th October, Starting Time: 10 AM
Designation	Urgent Requirement for CA for Senior Position- Walkin (only Male) - 2 Opening(s)
Job Description	This is an internal requirement for SMC Group with at least 3 years of Experience in UGAP, IGAP, Income Tax, Service Tax. Job Responsibilities: Responsible for overall administration related to Bill Processing, Communication equipment & Inventory Management. Responsible for preparation of Consolidated Balance Sheets for SMC Global Securities Ltd .Ensures timely submission of monthly P&L & Balance sheets, Quarterly I-GAAP/US GAAP, intercompany reconciliation etc. Responsible for preparation of I GAAP Balance Sheet of SMC Comtrade Ltd. and also compiling the Financial Budgets for all the departments. Responsible for managing the task related to Bill Processing & payments. Also ensures timely preparation of Trial Balance for Depository Participant The candidate must have good comm skills with through out 60 % in 10th, 12th and Graduation. Interested candidate can also forward there resume on  himaniwali@smcindiaonline.com Salary will not be a constraint. If interested you can directly walk down for the interview at the below mentioned venue: - 3rd floor, 11/6B, Shanti Chambers Pusa Road, Opp. MTNL Office, NEW DELHI, Delhi - 110005,India Date: 6th Oct 2014 - 10th Oct 2014
Desired Profile	Please refer to the Job description above
Experience	3 - 6 Years
Industry Type	Banking / Financial Services / Broking
Role	Cost Accountant
Functional Area	Accounts, Finance, Tax, Company Secretary, Audit
Education	UG - Any Graduate - Any Specialization, Graduation Not Required PG - Any Postgraduate - Any Specialization, Post Graduation Not Required, CA, CS, ICWA DOCTORATE - Any Doctorate - Any Specialization, Doctorate Not Required
Compensation:	INR 6,00,000 - 11,00,000 P.A. Negotiable
Location	Delhi
Keywords	Ca, c.a, chartered accountant, charted accountant, Company Secretary and Audit, ICWA
Contact	Ms. Himani Wali SMC Global Securities Ltd 11/6B, Shanti Chambers Pusa Road Opp. MTNL Office NEW DELHI,Delhi,India 110005
Telephone	91-11-23263297
Website	http://www.smcindiaonline.com
Job Posted	02 Oct

Recruiter wants you to directly approach the venue with your profile details Source: Naukri.com

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Managing studies along with Articleship

After much deliberation on the issue whether you should do articleship or take dummy, you have finally taken the bold decision to do articleship.  I congratulate all those who are reading this article and have taken this bold decision and I can tell them with my experience that they would never repent this decision.  And I request all of you who are still thinking about articleship to prepare their CV and apply for articleship.  After all, there is no substitute for practical work experience.

The whole experience of working as an article is truly amazing.   Auditing organizations, practically preparing trial balances, discussing the details of items in profit and loss accounts, balance sheets and making those last minute adjustments before the accounts are finalized go a long way in your learning and exposure.  In addition, the experiences of discussion with client helps you not only build technical knowledge, but also develop great negotiation skills.  These go a long way in shaping a great career ahead.

The initial days of articleship are always fun-filled, but soon the feeling of examinations starts to take that fun away.  Once the examination dates start approaching, majority of us start wondering about managing both.  And then, the thought whether we made the right decision to go for articleship bothers us again.  More importantly, because some of our friends who did not opt for articleship would have been discussing a lot about the lessons and topics they would have covered in the tuition classes, but perhaps missed by you because you did not get time to attend them.

At this juncture, the CA student life starts to take a new turn and therefore, it is very important that we do not get either confused or nervous.  Nervousness and confusion is only for those people who are not clear in their goals and objectives and NOT for people like you, who are bold, determined and confident of their abilities. 

I would like to state the “3 Step Success Formula” I learnt in my life.  This success formula is very powerful and highly practical and helps you get a complete perspective of how to manage multi-tasks with ease and confidence.  The Formula is:

“With better awareness you make better choices and with better choices you get better results.”   

What it means is that you need to be aware of your end goal and as you start to write, plan and visualize about your goals, you can make better choices & take better decisions that consequently end up in you getting better results.  

I will now share some very practical tips with you on how to manage your studies along with articleship.  After reading the article, I am sure you would be aware of some tips, which if implemented in your life would surely help you achieve the best in your life.

1.            Write your Daily 5 - Prepare a Dairy/ Journal

The things that get scheduled are the things that get completed.

Every day when you get up in the morning, spend 20 minutes writing a journal.  Pick up a diary/journal (http://www.flipkart.com/search?q=dairy&as=on&as-show=on&otracker=start&as-pos=1_q#jumpTo=215|40) and every single day write 5 daily goals that needs to be achieved for that day to be your best day ever.  Write 5 things covering your professional, academic, social, financial and spiritual needs:

(a)                   Academics – this can be related to finishing a particular chapter in any book or attending coaching classes

(b)                   Profession – this can be related to your office work such as finishing a client’s balance sheet or filing a tax return

(c)                    Social – this can be meeting your friends for discussions.  Preferably, the discussions should revolve around either studies or how to make your self a better professional.  No gossips.

(d)                   Financial – this can be related to how to save money during articleship so that when I qualify as a CA, I would be able to assist my family, or buy a new car, or buy gifts for my parents.

(e)                    Spiritual – this can be something to do with self-realization or self-awareness.  I truly believe a person who is strong spiritually, has a bright chance to live life with content and peacefully.

Always remember that “Clarity precedes Mastery” and by writing your goals daily, you are creating a clarity for yourself and your purpose that will surely help you aim for the best.  Unless you are clear on your goals, how can you even think of achieving them? 

2.            Don’t sleep unless you finish your Daily 5

It is very important that you should finish your Daily 5 which you have written in the morning and do not sleep unless you finish them.  Once you develop the habit of sleeping only after finishing your Daily 5 activities, you would start to get immense power and confidence. 

Just imagine that in 12 months you would have written and achieved approx. 2000 goals (365*5).   Imagine the sense of pride and achievement you will experience after achieving nearly 2000 goals.

3.            Build your days around your goals

The CA profession is one of the most difficult professions when it comes to clearing examinations.  I always keep telling students that those who did not clear definitely lack in their commitment to clear the examinations because there are always some students who clear and qualify as chartered accountants.  The difference between them and those who did not clear is only one – Those who cleared had a very high level of focus on their goal to qualify as a CA.   

Start to build your days around your goals.  Create a bubble around you which allows you to do only those things that are related to your goals and anything which is not related to your goal, should not be allowed to enter your mental bubble.  Keep referring to your dairy/journal regularly during the day and have a very strong focus to finish your Daily 5.  Stop wasting time and do what is important to achieve your best.

4.            Don’t waste time, because time that’s gone will not come back

This is something our parents have been telling us since our childhood.  But I would still request to install this habit at any cost.  Time that’s wasted will not come back.  Some tips:

(a)                   Watch very less/ No TV;

(b)                   No gossips with friends and colleagues;

(c)                    Get up early in the morning (read my articles on the benefits of getting up early in the morning) and plan your day;

(d)                   Create a bubble around you and don’t let any thought which is not related to your goal enter your mind

(e)                   Write your daily journal/ diary

(f)                     Focus. Focus. Focus.  

5.            Celebrate your wins

This is something not many people do, but if done regularly, gives you immense power and confidence. If you achieved any of your goals, , write it down in your diary and clap for yourself.  These small things when done overtime will start to yield amazing results in your life.  You would be able to achieve success not only in your profession but also do very well in studies. 

6.            Be Determined

Great chartered accountants are those, who have completed their articleship and have still managed to clear examinations in the least possible attempts.  Be determined to manage both of them so that no one is able to deviate you from your goal. 

Articleship is very important and so is clearing your examinations.  You cannot be good in one but bad in the other.  I would like to end the article by a quote from Mahatma Gandhi:

“A man cannot do right in one department of life whilst he is doing wrong in any other department.  Life is one indivisible whole”

Be determined and stay focused. 

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Authored by Nimish Goel, a qualified chartered accountant who’s passion is to coach young chartered accountants and aspiring students achieve the best in their life.  Nimish used to work with EY and PwC in India and has also worked with KPMG in Europe.  He now runs his own consulting company and runs a blog www.nimishgoel.com.  He can be reached for any queries and issues on his blog. 

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Empanelment of Members for the Assignment of “Checkers” for CA Examinations to be held in November 2014. - (01-10-2014)

October 1, 2014

Empanelment of members for the assignment of “Checkers” for CA examinations to be held in November 2014

Checking of totaling of marks etc in the answer books of CA examinations, after they have been evaluated by the examiners, is being assigned/carried out by members of the Institute, who are empanelled for the purpose. 

Accordingly, application are herby invited from members ( up to 15 years experience) to act as “Checkers” for checking the totaling of marks etc in the answer books, in respect of the CA examinations to be held in November 2014. 

For details regarding eligibility requirements to act as Checkers, functions of checkers, honorarium, terms and conditions etc, click here. (Annexure A) 

It may be noted that a fresh panel of checkers is prepared for every examination. Hence those who had empanelled as Checkers for earlier examinations are also required to apply online afresh. 

Members, who are desirous of empanelling as Checker for November 2014 examinations, may click here and submit their applications on or before 15th October 2014. 

Members who are allotted assignments of checker will be informed through e-mail/letter between 1-15th December 2014. 

For any further clarifications/assistance, write to us at examchecker@icai.in or call us at 0120-3054 812, 3054 858 or 495 3758. 

Examination Department

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Mandatory e-payment of service tax - w.e.f. 01.10.2014

E-payment:

 E-payment of service tax is being made mandatory with effect from the 1st Oct
2014. Relaxation from e-payment may be allowed by the Deputy Commissioner/Asst.
Commissioner on case to case basis [Notification 09/2014-ST].

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Extension of Due date of deposit of TDS / TCS for September 2014 to October 10, 2014

The last date for deposit of Tax Deducted at Source (TDS) has been extended by three days to October 10 due to festivals. 

"The Central Board of Direct Taxes (CBDT) has issued an order to extend the last date of deposit of tax deducted at source/tax collected at source during the month of September, 2014 from October 7 to October 10 without entailing any consequential interest," an official statement said. 

The extension has been given considering the consecutive holidays owing to the festive season and weekend during the first week in the month of October, 2014, it added. 

However, the due date for filing of TDS/TCS statements for the second quarter of the 2014-15 fiscal shall remain the same.

The Press Release issued by CBDT is as follows :-

F.No. 385/10/2014-IT(B)
Government of India

Ministry of Finance
Department of Revenue

Central Board of Direct Taxes

PRESS RELEASE

1st October, 2014

Extension of the due date of deposit of tax deducted at source/tax collected at source during the month of September, 2014.

Considering the consecutive holidays owing to the festive season and weekend during the first Week in the month of October, 2014, the Central Board of Direct Taxes has issued an order to extend the last date of deposit of tax deducted at source/tax collected at source during the month of September, 2014 from 7^th October, 2014 to 10^th October, 2014 without entailing any consequential interest.

1. However, the due date for filing of TDS/TCS statements for the 2^nd Quarter of the F.Y. 2014-15 shall remain the same.

(Rekha Shukla)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

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Extension of Date for Empanelment as Observers for Nov/Dec. 14 CA Exams/CPT, extended to 7th October 2014.

25th September 2014

Empanelment of members to act as Observers for CA examinations/Common Proficiency Test (CPT) to be held in November/December 2014

ICAI had invited applications from eligible members to undertake the assignment of Observers in the CA examinations/CPT to be held in Nov. 2014 vide announcement dated 29th August 2014 hosted in the students>examinations section of www.icai.org

Members who are desirous of empanelling themselves for the assignment are required to submit their applications online at http://observers.icaiexam.icai.org.

No manual applications will be entertained.

It has now been decided that the last date for empanelment of members to act as Observers for CA examinations/CPT to be held in November/December 2014, has beenextended upto and inclusive of 7th October 2014, taking into consideration, the representations from some members.

Members may note the above and submit their applications for empanelment as Observers for November/December 2014 examinations/CPT on or before 5.00 P.M. on 7th October 2014.

Accordingly, details of the allotment of assignments will be hosted on http://observers.icaiexam.icai.org on 22nd October 2014.

Members may take note of the above.

Examination Department


Empanelment of members to act as Observers for the CA Examinations to be held during 7^th to 21^st November 2014 and CPT to be held on 14^th December 2014.

1. The window will be open for empanelment from 11.00 a.m. of 15^th September 2014 to 5.00 p.m. of 07^th October 2014.
2. Once logged in, follow the instructions on the screen.
3. Please read the eligibility conditions and make sure that you are eligible to apply and that you will be able to undertake the assignment during the relevant period.
4. Kindly print the application form, sign, and fax it us at 0120-3054 843, or send it to us, by Speed Post at the address given below:
   The Additional Secretary(Exams),
   The Institute of Chartered Accountants of India,
   ICAI Bhawan,
   Indraprastha Marg,
   New Delhi 110 002.
5. Allotment of assignment of Observer for the CA Main Examinations to be held in November 2014 will be hosted on this site on 15^thOctober 2014.
6. For any further clarifications, you may write to us at observer@icai.in or call 0120 3054 829

For empanelling yourself, please Click here. 

Announcement dated 25^th Sept 2014   Click here. 

For detailed announcement on the subject, Click here. 

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Peak Filing Preparation 2014-MCA 21 - (29-09-2014)

Sub: Peak Filing Preparation 2014- MCA 21 

As you are aware it is time of peak filing of Balance Sheet & Annual Return under the Companies Act. 

To avoid last minute rush and system congestion on the MCA 21 portal on account of filings under the Company Law Settlement Scheme, 2014 ending on 15.10.2014 and annual filings during October / November 2014, we are quite sure that you might have already taken steps in advising corporates to file balance sheet and annual return of the companies early without postponing it to the last days. 

We would also like to inform you that during this period the Corporate Seva Kendra / help desks (ph. no. 0124-4832500) would give priority to e-filing/ answering queries of companies for filing balance sheet and annual return. 

In this regard, the Ministry of Corporate Affairs, Government of India, has issued a Notice on their website and the link for the same is as below: 

http://www.mca.gov.in/Ministry/pdf/Advt-annualfiling-2013-14.pdf 

Members concerned are earnestly requested to kindly plan their filing accordingly. 

Secretary ICAI 

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Sales Tax C, E & F Forms Demystified

1. INTRODUCTION

There are certain type of forms which has been prescribed under central sales tax rules 1957, form c for making interstate purchase at lower rate, form F used to transfer goods from one branch to other in different state without making it as sale form E1 and E2 used when interstate sale or purchase which are effected by mere transfer of document of title (subsequent sale).

2. ANALYSIS

A) C FORM

It is issued by VAT department to the registered dealer who makes interstate purchases of those goods which are mentioned in his RC (registration certificate). While doing transaction purchasing dealer furnish this form to selling dealer in course of interstate purchase to get exemption/reduction in sales tax rate. It is defined under section 8(1) of CST act 1956.

*One C Form/One Quarter/Dealer

From above chart it is clear that firstly purchasing dealer will furnish form C to the selling dealer of Jharkhand to claim tax exemption or reduced rates of taxes (2%) thereafter selling dealer will submit these form to the department of VAT of Jharkhand.

One C form can be used for no of transactions for one quarter.

 B) F FORM

With this, goods can be transferred/delivered from one state to another without recognising it as a sale. For instance the head branch may transfer goods/stock from one state to another to its branch or agent without becoming liable for CST.

It is issued by the VAT department on the request of the purchasing dealer (branch) the purchasing dealer submits F form to the selling dealer to claim exemption from making it as CST sale. As per section 6(A) of CST act F from is mandatory to prove transaction as stock transfer.

one F Form/One Month/Dealer

Is F form required in case goods are returned? The answer is yes, decided by the hon’ble Supreme court in case of AMBIKA STEELS that the liability of furnishing F form would be still there even if stock or goods are required to be sent back.

Registration certificate {RC} should contain the name and address of branches to which stock is transferred against F FORM {branch transfer} to claim concessional/nil rate of tax. One F form has to be issued for each month.

C) E1 AND E2 FORM

As per section 6(2) of CST act first interstate sale will be taxable, subsequent sale during movement of good by way of transfer of document is exempt from tax. For making subsequent sale exempt Form E1 & E2 are used.

From above illustration it is clear that how goods/document of title move from one place to another. Actual delivery was received by Chandan in Jaipur however between Ashok; Bhanu there was only transfer of title. Only the first sale will be taxable, other subsequent sale will be exempt if dealers are registered.

In above example Ashok of Jharkhand will receive C form from Bhanu of Delhi & will issue declaration in E-I form to Bhanu of Delhi .Later on Bhanu of Delhi will issue declaration in Form E-II to Chandan of Jaipur against which Chandan will furnish C form to Bhanu (Delhi).

If above chain is broken then the exempt sale will get reversed and CST will be applied on these transaction.

Provisions of C form applicable to E1/E2 forms: Some provisions which are applicable to C forms are also applicable to E-I/E-II forms. For example one declaration for one quarter, indemnity bond if form is lost, issue of duplicate form, sales tax concession is not available if the forms are not submitted.

Latest case of Delhi High Court and Supreme court’s verdict in A&G Projects and Technologies Ltd case: The Supreme court in A & G Projects and Technologies Ltd v. State of Karnataka [2209] 19 VST 239; [2009] 2 SCC 326 explained the scheme of section 6(2) of CST Act and held that once the first inter-state sale has suffered CST then subsequent sales effected by transfer of documents during transit will be exempt provided conditions prescribed u/s 6(2) are satisfied. This has been done to remove the cascading effect. The observation of the Supreme court in the said case is provided as below

“Analysing Section 6(2), it is clear that sub-section (2) has been introduced in Section 6 in order to avoid cascading effect of multiple taxation. A subsequent sale falling under sub-section (2), which satisfies the conditions mentioned in the proviso thereto, is exempt from tax as the first sale has been subjected to tax under sub-section (1) of Section 6 of the CST ACT 1956. Thus, in order to attract Section 6(2), it is essential that the concerned sale must be a subsequent inter-State sale affected by transfer of documents of title to the goods during the movement of the goods from one State to another and it must be preceded by a prior inter-State sale. It is only then that Section 6(2) may be attracted in order to make such subsequent sale exempt from levy of sales tax. However, the proviso to sub-section (2) of Section 6 prescribes further conditions and it is only on fulfilment of those conditions that the subsequent sale stands exempted. If those conditions are not satisfied then, notwithstanding the fact that the sale is a subsequent sale, the exemption would not be admissible to such subsequent sales.This is the scheme of Section 6 of the CST ACT 1956.”

 In a recent case namely Mitsubishi Corp. Ind. Ltd. Vs Value Added Tax officer decided by Delhi High court wherein sighting the above observation of the Supreme court it was argued by the councel for the state that if the first Inter State sales is an exempted sale then the subsequent sales should not get the benefit of Section 6(2) of CST Act even if all the conditions u/s 6(2) are satisfied since the first sales had not suffered tax. The Delhi High Court in this regard observed as under:

“A reading of the said portion of the Supreme Court decision only indicates that where the first sale is taxed, the second sale would be exempted because of the object of avoiding the cascading effect. However, the Supreme Court decision cannot be understood to mean that where the first sale is exempted, the second sale must be taxed even though the conditions under Section 6(2) for exemption stand satisfied.”

Thus even if the first sales was exempted due to exemption on tax available in the state wherefrom the first sale is made the subsequent sales in other state will be exempted if the conditions u/s 6(2) of CST Act are satisfied

This article has been share by:

Name - CA. Yogesh Sharma

E-mail id : cayksharma1@gmail.com

Mobile ; 093347-66898

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CBDT extends Due Date for filing of return of Income to 30.11.2014

Due Date for filing of return of Income for Assessment Year 2014-15 Extended from 30th September, 2014 to 30th November, 2014 in Specified Cases 

F.No.153/53/2014-TPL (Pt.I) 
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF DIRECT TAXES) North Block, TPL Division, New Delhi 

Dated: September 26, 2014 

PRESS RELEASE 

Subject: Extension of due date for filing of Return of Income from 30th Sept, 2014 to 30 th Nov, 2014 in specified cases, regarding. 

As per the provisions of the Income-tax Act, 1961 (‘the Act’), for an assessee, who is required to obtain Tax Audit Report (TAR) under section 44AB of the Act, the due date for furnishing his return of income is 30 th September of the Assessment Year. 

2. The Central Board of Direct Taxes (‘the Board’) vide order dated 20th August, 2014 extended the due date for obtaining and furnishing of Tax Audit Report under section 44AB of the Act for Assessment Year 2014-15 from 30 th September, 2014 to 30 th November, 2014. Subsequently, a number of representations were received in the Board requesting for extension of the due date for furnishing of return of income also. Writ petitions were also filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30 th September, 2014 to 30 th November, 2014 in conformity with the extension of the due date for filing of Tax Audit Report.  

3. The Gujarat High Court vide judgement dated 22.09.2014 (2014-TIOL-1681-HC-AHM-IT) directed the Board to extend the due date for furnishing the return of income to 30 th November, 2014, except for the purposes of charging of interest under section 234A of the Act for late filing of return of income. Other High Courts also directed the Board to look into the practical difficulties of the petitioners and take a just and proper decision in this matter. 

4. In compliance to the judgments of various High Courts and after considering the representations received for extension of the due date, the Board, in exercise of its power conferred by section 119 of the Act, has extended the ‘due-date’ for furnishing return of income from 30th September, 2014 to 30th November, 2014 for the Assessment Year 2014-15 for all purposes of the Act in the case of an assessee, who is required to file his return of income by 30th September, 2014, and is also required to get his accounts audited under section 44AB of the Act or is a working partner of a firm whose accounts are required to be audited under section 44AB of the Act. 

5. There shall be no extension of the “due date” for the purposes of charging of interest under section 234A of the Act for late filing of return of income and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act. 

6. For removal of doubt, it is clarified that for an assessee (other than working partner of a firm which is required to obtain and furnish Tax Audit Report), who is required to file its return of income by 30 th September, 2014 but not required to obtain and furnish Tax Audit Report under section 44AB, the due date for furnishing of return of income for assessment year 2014-15 remains as 30 th September, 2014. 

(Rekha Shukla) 
Commissioner of Income Tax 
(Media & Technical Policy) Official Spokesperson, 
CBDT 

To Download Official Notification Click Here

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Bombay HC ask CBDT to Consider Extension of ITR due Date to 30.11.2014

Following the Footsteps of other High Courts Bombay High Court today held in the case of ‘The Chamber of Tax Consultants & Others Vs. Union of India (Bombay High Court), WRIT PETITION (L) NO.2492 OF 2014′ that CBDT should consider the representation of the of the Chamber of Tax Consultants on or  before 30th September 204. Petitioners are entitled for better relief in view of decisions of other High Court if they are more favorable. 

The petition was filed by the chamber of Chamber of Tax Consultants & Others for non extension of due date of ITR to 30.11.2014 in accrdance with due date of Tax Audit report. CBDT has already extended due date of Tax Audit Report  to 30.11.2014. Petitioners has urged the court to issue a direction to the CBDT to extend due date of Income Tax Return to 30.11.2014 for A.Y. 2014-15 in cases where tax audit is applicable. - 

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Gujarat High Court directs CBDT to extend due date for filing of ITR to 30-11-2014 subject to Sec. 234A interest

Gujarat High Court directs CBDT to extend due date for filing of ITR to 30-11-2014 subject to Sec. 234A interest

The CBDT vide Order [F.NO.133/24/2014-TPL], dated 20-8-2014 had extended the due date for filing of tax audit report to November 30, 2014. However, the CBDT had not extended the due date for filing of the Income-tax Return ('ITR'). Consequently, many taxpayers were facing difficulty in filing of ITR without filing the tax audit reports.

In view of this, All Gujarat Federation of Tax Consultant filed a writ petition in the Gujarat High Court contending for the extension of the due date for filing of ITR to November 30, 2014.

On the impugned issue, petitioner argued that ITR is prepared on the basis of information collated and reported in the tax audit report and in absence of tax audit report it would not be possible for a taxpayer to compute his tax liability and file return of income on due date 30-09-2014. On the other side, the Income-tax Department argued that if the blanket extension is given for filing of return of income, the taxpayer would also defer the payment of due taxes to the credit of Central Government which would be prejudicial to interest of revenue. Dept. also gave surety to the Court that no penalty or interest would be levied for revision of return by the taxpayer, if any, pursuant to such tax audit.

However, Gujarat High Court suggested a mid-way which would tackle the practical problem being faced by the taxpayers and which would save the interest of revenue. Gujarat High Court directed the CBDT to extend the due date for filing of return of income for all purposes, inter-alia, carry forward of losses, allowability of deductions under Sections 80-IA, 80-IB, 80-IC, 80-ID, etc.

However, such extension has been granted subject to charge of interest under Section 234A for the period commencing from 01-10-2014 and up to the actual date of filling the return of income.

However, in such cases, the taxpayer will enjoy the option of paying taxes before the due date of 30-09-2014 and to that extent enjoy the exemption from levy of interest under Section 234A.

The copy of order is awaited.

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Compulsory Insurance Under Payment of Gratutity Act 1972

Every Employer shall obtain an insurance, for his liability towards payment of gratutity under section 4A of  payment of Gratutity Act 1972, form LIC or other prescribed insurance company.
Section 4A is given below in details.

4A. COMPULSORY INSURANCE. –

(1) With effect from such date as may be notified by the appropriate Government in this behalf, every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government, shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other prescribed insurer : Provided that different dates may be appointed for different establishments or class of establishments or for different areas.

(2) The appropriate Government may, subject to such conditions as may be prescribed, exempt every employer who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement, and every employer employing five hundred or more persons who establishes an approved gratuity fund in the manner prescribed from the provisions of sub-section (1).

(3) For the purpose of effectively implementing the provisions of this section, every employer shall within such time as may be prescribed get his establishment registered with the controlling authority in the prescribed manner and no employer shall be registered under the provisions of this section unless he has taken an insurance referred to in sub-section (1) or has established an approved gratuity fund referred to in sub-section (2).

(4) The appropriate Government may, by notification, make rules to give effect to the provisions of this section and such rules may provide for the composition of the Board of Trustees of the approved gratuity fund and for the recovery by the controlling authority of the amount of the gratuity payable to an employee from the Life Insurance Corporation of India or any other insurer with whom an insurance has been taken under sub-section (1), or as the case may be, the Board of Trustees of the approved gratuity fund.

(5) Where an employer fails to make any payment by way of premium to the insurance referred to in sub-section (1) or by way of contribution to an approved gratuity fund referred to in sub-section (2), he shall be liable to pay the amount of gratuity due under this Act (including interest, if any, for delayed payments) forthwith to the controlling authority.

(6) Whoever contravenes the provisions of sub-section (5) shall be punishable with fine which may extend to ten thousand rupees and in the case of a continuing offence with a further fine which may extend to one thousand rupees for each day during which the offence continues.

Explanation : In this section “approved gratuity fund” shall have the same meaning as in clause (5) of section 2 of the Income-tax Act, 1961 (43 of 1961).

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