Served From India Scheme (SFIS) for exporter of service

To accelerate the growth of export of service DGFT has introduced the incentive scheme for exporter of services from India. The scheme is called as SERVED FROM INDIA SCHEME (SFIS). An individual earning more than Rs. 5 lakhs free foreign exchange and other than individual earning more than Rs. 10 lakhs free foreign exchange during the preceding financial year is eligible for this benefit.

The service provider is eligible for Duty entitlement scrip of 10% of free foreign exchange earned during the period. Duty Credit scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables; that are otherwise freely importable and / or restricted under ITC (HS). Imports shall relate to any service sector business of applicant.

Services and Service Providers as listed in Para 3 .6.1 of Handbook of Procedures (Vol. I) shall not be entitled for benefits under the SFIS scheme. The application can be filed with jurisdictional RA in form ANF 3B along with document prescribed therein on monthly/quarterly/ half-yearly/ annual basis.

The benefit is available under Foreign Trade Policy Para No. 3.12 and Handbook of Procedures (Vol. I) Para No. 3.6. 

You may also Like:

Ø  PAN application form in excel with Database facility.

Ø  Invoice preperation utility in Excel

Ø  ITR 1 (Sahaj) in excel for AY 2015-16 with auto fill function for printing

Ø  Excise Invoice Preparation utility in excel

No TDS on service tax amount if the service tax amount shown seperatly in the bill CBDT Notification

The Central Board of Direct Taxes (CBDT) had previously issued a Circular No. 4/2008 dated 28-04-2008 wherein it was clarified that tax had to be deducted at source under section 194-I of the Income-tax Act, 1961 (the Act), on the amount of rent paid/ payable without including the service tax component.

The Central Board of Direct Taxes (CBDT) has issued a circular (Circular No. 1/2014, F. No. 275/59/2012-IT(B) dated 13 January 2014) to clarify that there is no need to deduct TDS on service tax amount charged separately in the bill by the service provider.

The CBDT received representations seeking clarification whether this principle could be extended to other provisions of the Act also.

The Hon'ble Rajasthan High Court, in the case of CIT (TDS) v. Rajasthan Urban Infrastructure (ITA No. 235, 222, 238 and 239 of 2011), held that tax was not required to be deducted on the service tax component under section 194J of the Act if the amount of service tax was to be paid separately and was not included in the fees for professional services or technical services as per the terms of the agreement between the payer and the payee.

The CBDT, in the light of the aforesaid representation and the decision of the Hon'ble Rajasthan High Court, examined the matter afresh and decided that wherever, in terms of the agreement/ contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, the tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/ payable without including the service tax component.

You may also Like:

Ø  PAN application form in excel with Database facility.

Ø  Invoice preperation utility in Excel

Ø  ITR 1 (Sahaj) in excel for AY 2015-16 with auto fill function for printing

Ø  Excise Invoice Preparation utility in excel

Status Holders Incentive Scrip (SHIS) benefit for exporters

Under Foreign Trade Policy para no.3.16, with an objective to promote investment in upgradation of technology of some specified sectors the direct exports achieved by the business entity in the FY 2010-11, 11-12 and 12-13 qualify for the 1% Status Holders Incentive Scrip on the total direct exports for the three financial years.  This benefit is not available if there are any benefits availed under Zero % EPCG scheme in that year. Exporters can obtain Status Holders Incentive Scrips at 1% of the FOB value  of the exports. This scrip can be utilized for payment of excise duty for procurement of capital goods. This scrip can also be used for payment of import duty for import of capital goods. The application is to be made to DGFT to get this benefit. After verification of the application the authority  will issue the scrip. The scrip is valid for 18 months from the date of issue. The buyer can take the cenvat credit of duties which are paid through Scrip.

For Status Holders Incentive Scrip, the following exports categories /sectors shall be ineligible:

(i) EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;

(ii) Export of imported goods covered under Para 2 .35 of FTP;

(iii) Exports through transshipment, meaning thereby that exports originating in third country but transshipped through India;

(iv) Deemed Exports;

(v) Exports made by SEZ units or SEZ products exported through DTA units; and

(vi) Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).

You may also Like:

Ø  PAN application form in excel with Database facility.

Ø  Invoice preperation utility in Excel

Ø  ITR 1 (Sahaj) in excel for AY 2015-16 with auto fill function for printing

Ø  Excise Invoice Preparation utility in excel

Notification issued by CBDT on new procedure on non-resident payments and revised forms 15CA and CB.

The Central Board of Direct Taxes has issued notification no 67/2013 dated 2 Sept 2013 relating to remittance procedure for non resident payments. The new notification prescribes a revised process for payments made to non-residents.  It is applicable with effect from 1 October 2013.

The new notification prescribes following tax procedure for remittances to the non-residents:

• All taxable remittances (including salary or interest ) are required to be reported in a new Form 15CA

• The new Form 15CA prescribed two categories (i.e. Part A and Part B) of remittance as follows:
• Part A is applicable where amount does not exceed Rs. 50000 and the aggregate of remittance made during the financial year does not exceed Rs. 250000.
• Part B is applicable where remittance is chargeable to tax and exceeds Rs. 50000 and the aggregate of remittance made during the financial year exceeds Rs. 250000. Part B needs to be submitted along with Form 15CB/ a certificate from the assessing officer under section 197 or an order from the assessing officer under sub-section (2) or sub-section (3) of section 195 of the Income-tax Act, 1961.
• For the remittances covered in 'Specified List', Form 15CA and Form15CB are not required to be submitted. This Specified List covers 29 type of remittances (aligned with RBI purpose code in Form A2) such as remittance towards business travel, travel under basic travel quota, travel for medical treatment/education, family maintenance and savings etc

In view  of the above, for processing any foreign remittance from 1 October 2013 onwards, the documents as per the above procedure will be required for processing remittances to the non-residents.

You may also Like:

Ø  PAN application form in excel with Database facility.

Ø  Invoice preperation utility in Excel

Ø  ITR 1 (Sahaj) in excel for AY 2015-16 with auto fill function for printing

Ø  Excise Invoice Preparation utility in excel

Applicable Sections of Companies Act 2013 from 12th September, 2013.

As per the notification issued by the Ministry of Corporate Affairs on 12th September 2013, following provisions of Companies Act 2013 shall come in to force from 12th September 2013.
(Click on the link to read the sections) 

Sl No.	Section
1	Section 2
	Clause (1);
	Clause (3) to (6) (both inclusive);
	Clause (8) to (12) (both inclusive);
	Clause (14) to (22) (both inclusive);
	Clause (24) to (28) (both inclusive);
	Clause (29) [except sub-clause(iv)];
	Clause (30);
	Clause (32) to (40) (both inclusive);
	Clause (43) to (46) (both inclusive);
	Clause (49) to (61) (both inclusive);
	Clause (63) to (66) (both inclusive);
	Clause (67) [except sub-clause(ix)];
	Clause (68) to (82) (both inclusive);
	Clause (84);
	Clause (86);
	Clause (87) [except proviso and Explanation (d)];
	Clause (88) and (89);
	Clause (90) to (95) (both inclusive);
2	Section 19;
3	Section 21;
4	Section 22;
5	Section 23 [except clause (b) of sub-section (1) and sub-section (2)];
6	Section 24;
7	Section 25 [except sub-section (3)];
8	Sections 29 to 32 (both inclusive);
9	Section 33 [except sub-section (3)];
10	Section 34;
11	Section 35 [except clause (e) of sub-section (1)];
12	Sections 36 to 38 (both inclusive);
13	Section 39 (except sub-section (4)];
14	Section 40 [except sub-section (6)];
15	Sections 44 and 45;
16	Sections 49 to 51 (both inclusive);
17	Sections 57 to 60 (both inclusive);
18	Section 65;
19	Section 69;
20	Section 70 [except sub-section (2)];
21	Section 86;
22	Section 91;
23	Section 100 [except sub-section (6)];
24	Section 102;
25	Section 103;
26	Section 104;
27	Section 105 [except the third and fourth proviso of sub-section (1) and sub-section (7)];
28	Section 106;
29	Section 107;
30	Section 111;
31	Section 112;
32	Section 113 [except clause (b) of sub-section (1)];
33	Section 114;
34	Section 116;
35	Section 127;
36	Section 133;
37	Section 161 [except sub-section (2)];
38	Sections 162 and 163;
39	Section 176;
40	Sections 180 to 183 (both inclusive);
41	Section 185;
42	Section 192;
43	Section 194;
44	Section 195;
45	Section 202;
46	Section 379;
47	Sections 382 and 383;
48	Section 386 [except clause (a)];
49	Section 394;
50	Section 405;
51	Sections 407 to 414 (both inclusive);
52	Section 439;
53	Sections 443 to 453 (both inclusive);
54	Sections 456 to 463 (both inclusive);
55	Sections 467 to 470 (both inclusive).

You may also Like:

Ø  PAN application form in excel with Database facility.

Ø  Invoice preperation utility in Excel

Ø  ITR 1 (Sahaj) in excel for AY 2015-16 with auto fill function for printing

Ø  Excise Invoice Preparation utility in excel