Circular No. 158/9/ 2012 – ST

F.No 354/69/2012- TRU
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Tax Research Unit
Room No 146, North Block, New Delhi

Dated : 8th May 2012

Madam/Sir,

Subject: – Clarification on Rate of Tax – regarding.

1. The rate of service tax has been restored to 12% w.e.f. 1st April 2012. Representations have been received requesting clarification on the rate of tax applicable wherein invoices were raised before 1st April 2012 and the payments shall be after 1st April 2012. Clarification has been requested in case of the 8 specified services provided by individuals or proprietary firms or partnership firms, to which Rule 7 of Point of Taxation Rules 2011 was applicable and services on which tax is paid under reverse charge.

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The following is the speech delivered by Shri. Pranab Mukerjee, Finance Minister, while moving the amendments to the Finance Bill 2012 on 7th May 2012.

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The Finance Minister today (7th May 2012) introduced amendments to the Finance Bill 2012. The text of the amendments is available.

No.372/19/2012-AVD-III
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
North Block,
New Delhi the 3rd May, 2012.

OFFICE MEMORANDUM

Subject: Guidelines for checking delay in grant of sanction for prosecution.

Attention is invited to this Department’s OMs No. 399/33/2006-AVD-III dated 6th November, 2006 and 20th December, 2006 on the subject mentioned above.

2. In terms of above instructions, the Competent Authority has to formulate its tentative views regarding the action to be taken on the request of the Investigating Agency and seek the advice of the CVC in the matter. The instructions further lay down that CVC would tender its advice within 10 days to the concerned administrative Ministry/Department, which shall finalise its view in the matter and issue orders accordingly. The instructions also lay down that the administrative Ministry/Department shall refer the case to CVC for reconsideration only in exceptional cases when new facts come to light and that CVC would render appropriate advice to the competent authority based on the findings of the expert committee, within a fortnight and that if the CVC on reconsideration advises for grant of sanction, the concerned Ministry/Department will issue the requisite orders immediately. The instructions further lay down that if the concerned administrative Ministry/Department proposes not to accept the reconsidered advice of the CVC, the case will be referred to DoP&T for final decision and that the DoP&T shall decide the case within 3 weeks and convey its decision to the concerned Ministry/Department.

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F.No.500/54/2012-FTD
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Foreign Tax & Tax Research Division

Room No. 909, ‘C’ Wing,
Hudco Vishala Building.Bhikajl Cama Place,
R.K. Puram, N. Delhi

Dated: 3.5.2012

OFFICE MEMORANDUM
SUBJECT: ADVISORY GROUP FOR INTERNATIONAL TAXATION AND TRANSFER PRICING IN DEPARTMENT OF REVENUE, MINISTRY Of FINANCE – REG,

In furtherance to this office OM of even number dated 22.03.2012 regarding ‘Advisory Group for International Taxation and Transfer Pricing’, it has been decided with the approval of Competent Authority that the Group would comprise of the following members:-

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PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
*****
CLARIFICATION ON VODAFONE TAX ISSUE
New Delhi: Vaisakha 12, 1934
May 02, 2012
A news report has appeared in the Financial Express, Delhi edition, 27th April, 2012 captioned “I-T didn’t warn Vodafone of tax burden or dispute deal format”. In this regard, the Central Board of Direct Taxes (CBDT) has issued the following clarification:-

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The department has released information about a raid conducted by a gang of 6 persons who, on the basis of fake identity cards and fake letter from the CIT, got police protection to conduct a raid on a doctor. The gang took away Rs. 11 lakhs and demanded a bribe for closing the case. The department suspects that the master-mind (Mr. V. D. Goyal) may be an ex-employee of the department as he appeared to be well versed with procedures/law of search. The department has released his picture and requested for assistance in arresting him so as to save the respect of the department.

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The Ministry of Finance has issued an important Press Release on the retrospective amendments in Finance Bill 2012. In particular it was stated that the retrospective changes proposed are “not substantive but clarificatory in nature” and only “reiterated the intent of the legislation“. It was also stated that “tax cases which have already been assessed and finalized up to April 1, 2012 cannot be reopened“. It was emphasized that “Indian tax laws are very clear that the companies making capital gains from the assets located in India will have to pay taxes either in the country of their origin or in India” and that “It is not a case of double taxation but ensuring that companies that are liable to pay tax must pay some tax“. On the issue of categorization of software sales as royalties, it was stated that that discussions had been held in the past between the tax authorities in USA and they had “agreed to disagree” on such characterization.

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The Ministry of Finance has vide letter dated 4.4.2012 invited applications for appointment to the post of “Income Tax Ombudsman”. The post of “Income Tax Ombudsman” carries a pay scale of Rs.75500-80000. Interested candidates are requested to forward their application by 30.5.2012 indicating their preferred location.

Vide Order No. 4/FT&TR/2012 dated 10.4.2012 read with Corrigendum dated 11.4.2012 the CBDT has reconstituted the Dispute Resolution Panel (DRP) comprising of three Commissioners of Income Tax/Directors of Income Tax as Members of DRPS at Delhi, Mumbai & Ahmedabad who shall perform such duties in addition to their regular duties with immediate effect and until further order