ICAI proposal to least developed countries for developing their accounting profession.

Aiding transition and emerging economies, ICAI has been advocating the need for creating a sustainable framework of accounting in countries lacking accounting Infrastructure/where accountancy profession is evolving for creating a cadre of accounting professional who are able to support the evolution of Industry by propagating and putting in place a compliance regime and sound framework for reporting practices.

A very strong role is played by accountancy institutes in economic growth of countries and in capacity building. It is important to have a well-developed accounting institute which would help in developing competent accounting professionals and in promoting strong professional and ethical standards.

ICAI’s endeavor is to help Least Developing Countries (LDC’s) to establish Accounting Institute in those economies where the same does not exist and in further strengthening the accounting infrastructures in those countries where the same exists. ICAI proposes to undertake off- site and if required on-site study of the accounting profession in the relevant LDC in order to design its methodology and approach to forward the overall project.

- CA Kasliwal Ambar

Service tax levy on services provided by a Goods Transport Agency

Circular No.186/5/2015­ST

 F. No. 354 / 98 /2015­ - TRU

 Government of India

 Ministry of Finance

 Department of Revenue

 Central Board of Excise & Customs

 *****

 New Delhi, dated 5th October, 2015

To,
Principal Chief Commissioner / Chief Commissioner of Central Excise, Service Tax and Customs (All),
Director General of Service Tax
Director General of Audit
Director General of Central Excise Intelligence Principal Principal Commissioners of Service Tax (All)
Commissioners of Service Tax (All)
Commissioner (DPPR)
webmaster@cbec.gov.in

Sir/ Madam,

Subject: ­ Service tax levy on services provided by a Goods Transport Agency ­reg.

The All India Transport Welfare Association (AITWA) has represented regarding the difficulties being faced by the Goods Transport Agencies (GTAs) in respect of service tax levy on the services of goods transport. Doubts has been raised by the All India Motor Transport Congress (AIMTC) regarding treatment given to various services provided by GTAs in the course of transportation of goods by road.

2. The issue has been examined. Since July 1, 2012, service tax has shifted to a negative list regime, by which all the services except those covered in negative list as mentioned in section 66D of the Finance Act, 1994 or those exempted by notification are chargeable to service tax.

3. Goods Transport Agency (GTA) has been defined to mean any person who provides service to a person in relation to transport of goods by road and issues consignment note, by whatever name called. The service provided is a composite service which may include various ancillary services such as loading/ unloading, packing/unpacking, transshipment, temporary storage etc., which are provided in the course of transportation of goods by road. These ancillary services may be provided by GTA himself or may be sub-contracted by the GTA. In either case, for the service provided, GTA issues a consignment note and the invoice issued by the GTA for providing the said service includes the value of ancillary services provided in the course of transportation of goods by road. These services are not provided as independent activities but are the means for successful provision of the principal service, namely, the transportation of goods by road.

4. A single composite service need not be broken into its components and considered as constituting separate services, if it is provided as such in the ordinary course of business. Thus, a composite service, even if it consists of more than one service, should be treated as a single service based on the main or principal service. While taking a view, both the form and substance of the transaction are to be taken into account. The guiding principle is to identify the essential features of the transaction. The interpretation of specified descriptions of services in such cases shall be based on the principle of interpretation enumerated in section 66 F of the Finance Act, 1994. Thus, if ancillary services are provided in the course of transportation of goods by road and the charges for such services are included in the invoice issued by theGTA, and not by any other person, such services would form part of GTA service and, therefore, the abatement of 70%, presently applicable to GTA service, would be available on it.

5. It is also clarified that transportation of goods by road by a GTA, in cases where GTA undertakes to reach/deliver the goods at destination within a stipulated time, should be considered as services of goods transport agency in relation to transportation of goods for the purpose of notification No. 26/2012-ST dated 20.06.2012, serial number 7, so long as (a) the entire transportation of goods is by road; and (b) the GTA issues a consignment note, by whatever name called.

6. Pending disputes on the above issues may accordingly be decided expeditiously.

7. Trade & field formations may be informed suitably.

Yours faithfully,
(Dr. Ravindra Kumar)
Technical Officer, TRU-II

Delhi High Court rejected writ for extention of due date for TAR

Delhi High Court rejected writ for extension of due date for TAR; said CAs should have completed audit by 7th July( i.e. date till form notified), time thereafter is sufficient to file TAR (7th July to 30th September) 

Facts:

a) The petitioner claims to be entitled to extension of due date of filing income-tax return (‘ITR’) (i.e., September 30, 2015) due to the delay on the part of the respondents in prescribing the ITR forms. b) It was contended that the said forms were prescribed only vide Notification dated 29th July, 2015 and were made available only with effect from August 7, 2015. The argument of the counsel for the petitioner was that since the Assessment Year 2015-2016 commenced on 1st April, 2015 and the due date for filing the return is 30th September, 2015, so 180 days are to be made available to the assessee to file the return. The Delhi High Court held as under:

1) The period claimed by the petitioner as a matter of right of 180 days for filing the ITR is admittedly not prescribed, neither in the Statute nor in the Rules.

2) Filing of ITR for assesses due date whereof is 180 day sis dependent upon the accounts of the assessee being audited and which audit the counsel for the petitioner admits commences only on the beginning of assessment year. The said audit, in the case of some assesses may be completed in a few days and in case of others may take longer. Thus, the time taken in audit, which is variable, will be determinative of the time available thereafter for filing the ITR. Said audit is not dependent upon the prescription of the income-tax return (‘ITR’)forms.

3) Once the audit is complete the time admittedly available from 29th July, 2015 / 7th August, 2015 to 30th September, 2015 cannot be said to be so small.

4) The Government vide Press Release dated 9th September, 2015 have already clarified that the date of 30th September, 2015 will not be extended and have advised the taxpayers to file the returns accordingly. The time available, after 7th August, 2015 and till 30th September, 2015 is not found to be illogical or unreasonable to enable the assessees to file the ITR.

5) The counsel for CBDT is unable to give the reasons for the forms are not available at the beginning of the assessment year on 1st April of every year and the same thereby causing inconvenience to the practitioners of the subject.

6) There is sufficient time available to the Government, after the Finance Act of the financial year, to finalise the forms and if no change is intended therein, to notify of the same immediately.

7) From the next assessment year Government should at least ensure that the forms which are to be prescribed for their Audit Report and for filing the ITR are available as on 1st April of the assessment year unless there is a valid reason therefore and which should be recorded in writing by the respondents themselves, without waiting for any representations to be made.

-CA Kasliwal Ambar