Eight new taxable services w.e.f. 01-07-2010
CBEC has notified 8 new taxable Services w.e.f. 1.7.2010 vide Notification No.24/2010-Service Tax dated 22.6.2010.
The following are the new taxable Services introduced w.e.f. from 1.7.2010.
1. Games of chance (zzzzn)
2 Health services (zzzzo)
3 Maintenance of medical records (zzzzp)
4 Promotion of a ‘brand’ of goods, services, events, business entity etc. (zzzzq)
5 Commercial use or exploitation of any event organized by a person or organization (zzzzr)
6 Electricity Exchange Service (zzzzs)
7 Copyrights on Cinematographic films and sound recording (zzzzt)
8 Providing of preferential location or external / internal development of complexes (zzzzu)
Thursday, July 8, 2010
Digital Certificate - Class 3 Platinum e -Tendering
Digital Certificate - Class 3 Platinum
Class 3 Certificates are issued to individuals, organizations and devices and are applicable for personal and commercial use. They represent the highest degree of digital security available to individuals, devices, servers and organizations. Typically, they are used for Electronic Data Exchange (EDI), internet banking/broking, e-tendering and other web-based transactions where confidentiality and authenticity are critical.
You are required to by physically present during authentication and confirmation of applicant identity by the RA or Sub-CA, who issues the certificate provided you meet all requirements.
Individual
Class 3 Platinum Individual Certificates issued to individuals or devices and encompass primarily high end security-sensitive online activities.
Organization
These are digital certificates that are appropriate for digital signatures, encryption, electronic access control, e-commerce and online financial transactions that require a strong assertion of the customer's identity. The validation procedures for Class 3 Platinum Organization certificates includes confirmation that the subscriber organization does in fact exist, authorization from the organization for the certificate application and authorization for the person submitting the certificate application.
Refer Support Documents for the list of mandatory documents required when applying for Class 3 Platinum Certificates.
Class 3 Platinum Individual certificates are legally valid as per the Indian Information Technology Act, 2000
Support Documents
Support documents are mandatory when applying with e-Mudhra for Class 2 Gold and Class 3 Platinum Digital Signature Certificates.
For an individual
• Attested copy of any one of the following as identity proof (attestation may be by any Public Notary/Gazetted Officer/Bank Manager)
o Passport
o Driving License
o Voter's ID
o PAN card
o Company ID Number
For an Organization
• True copy of any one(from the Company Secretary/Director/Partner of the organization)
o Certificate of Incorporation
o Memorandum of Association/Articles of Association
o Partnership Deed
o Valid Business License
• True copy of any one (attested by Company Secretary/Director/Partner of the organization)
o Annual Report
o Income Tax Return
o Bank Details of the organization from the Bank
o Statement of Income issued by Chartered Accountant
• Authorization letter in favor of the certificate applicant from the organization
• Domain Name registration proof from the registrar of Domains (if applying for Server Certificate)
e-Mudhra offers three classes of Digital Signature Certificates for personal and commercial use. You can select the certificate class that best suits your requirements.
• Class 1 Silver
• Class 2 Gold
• Class 3 Platinum
Class 1 Silver is intended for personal use. It does not strongly authenticate identity and is therefore not applicable for commercial use.
Class 2 and Class 3 are managed certificates and are available for individuals, organizations and devices. They are applicable in all environments where proof of identity is an obligation. They are issued only after suitable verification processes have been completed by an RA or Sub-CA organization. Please refer Support Documents section for more details on requirements for successful identity verification.
Effective from 10th February, 2010
Class of e-Mudhra Digital Signature Certificate Validity in Years Price in INR
Class 1 Silver Individual One 99
Two 149
Class 2 Gold Individual One 899
Two 1149
Class 2 Gold Organisation One 899
Two 1149
Class 3 Platinum Individual One 1499
Two 1749
Class 3 Platinum Organisation One 1749
Two 2099
Class 3 Device one 7499
Two 11999
Terms of Pricing.
1. The prices indicated are on per DSC basis
2. No Service Tax & VAT applicable
3. The prices indicated are exclusive of token price
4. The prices are subject to change without prior notice
Guidelines to apply for certificate:
1. For Class 1 DSC, you can apply online
2. For Class 2 and 3 DSC, you are required to submit original application form accompanied by supporting credential documents and payment to the nearest RA
3. Application form may be downloaded from or obtained by contacting e-Mudhra or its nearest RA
4. You can apply only for DSC or for both DSC and token
5. Please ensure that your application is consistent and complete in all aspects to avoid delay in processing or rejection
6. e-Mudhra reserves the right to accept or reject any application for DSC
7. In case of cheque payments, DSC and/or token will be issued only after realization of the payment instrument
8. Customers can avail of support by contacting us over the telephone or through the web support facility available on www.dsignsoftech.com or call 9810135587
Link to apply
through https://www.e-mudhra.com/alliance/ag/c2gi2s/index.aspx
Class 3 Certificates are issued to individuals, organizations and devices and are applicable for personal and commercial use. They represent the highest degree of digital security available to individuals, devices, servers and organizations. Typically, they are used for Electronic Data Exchange (EDI), internet banking/broking, e-tendering and other web-based transactions where confidentiality and authenticity are critical.
You are required to by physically present during authentication and confirmation of applicant identity by the RA or Sub-CA, who issues the certificate provided you meet all requirements.
Individual
Class 3 Platinum Individual Certificates issued to individuals or devices and encompass primarily high end security-sensitive online activities.
Organization
These are digital certificates that are appropriate for digital signatures, encryption, electronic access control, e-commerce and online financial transactions that require a strong assertion of the customer's identity. The validation procedures for Class 3 Platinum Organization certificates includes confirmation that the subscriber organization does in fact exist, authorization from the organization for the certificate application and authorization for the person submitting the certificate application.
Refer Support Documents for the list of mandatory documents required when applying for Class 3 Platinum Certificates.
Class 3 Platinum Individual certificates are legally valid as per the Indian Information Technology Act, 2000
Support Documents
Support documents are mandatory when applying with e-Mudhra for Class 2 Gold and Class 3 Platinum Digital Signature Certificates.
For an individual
• Attested copy of any one of the following as identity proof (attestation may be by any Public Notary/Gazetted Officer/Bank Manager)
o Passport
o Driving License
o Voter's ID
o PAN card
o Company ID Number
For an Organization
• True copy of any one(from the Company Secretary/Director/Partner of the organization)
o Certificate of Incorporation
o Memorandum of Association/Articles of Association
o Partnership Deed
o Valid Business License
• True copy of any one (attested by Company Secretary/Director/Partner of the organization)
o Annual Report
o Income Tax Return
o Bank Details of the organization from the Bank
o Statement of Income issued by Chartered Accountant
• Authorization letter in favor of the certificate applicant from the organization
• Domain Name registration proof from the registrar of Domains (if applying for Server Certificate)
e-Mudhra offers three classes of Digital Signature Certificates for personal and commercial use. You can select the certificate class that best suits your requirements.
• Class 1 Silver
• Class 2 Gold
• Class 3 Platinum
Class 1 Silver is intended for personal use. It does not strongly authenticate identity and is therefore not applicable for commercial use.
Class 2 and Class 3 are managed certificates and are available for individuals, organizations and devices. They are applicable in all environments where proof of identity is an obligation. They are issued only after suitable verification processes have been completed by an RA or Sub-CA organization. Please refer Support Documents section for more details on requirements for successful identity verification.
Effective from 10th February, 2010
Class of e-Mudhra Digital Signature Certificate Validity in Years Price in INR
Class 1 Silver Individual One 99
Two 149
Class 2 Gold Individual One 899
Two 1149
Class 2 Gold Organisation One 899
Two 1149
Class 3 Platinum Individual One 1499
Two 1749
Class 3 Platinum Organisation One 1749
Two 2099
Class 3 Device one 7499
Two 11999
Terms of Pricing.
1. The prices indicated are on per DSC basis
2. No Service Tax & VAT applicable
3. The prices indicated are exclusive of token price
4. The prices are subject to change without prior notice
Guidelines to apply for certificate:
1. For Class 1 DSC, you can apply online
2. For Class 2 and 3 DSC, you are required to submit original application form accompanied by supporting credential documents and payment to the nearest RA
3. Application form may be downloaded from or obtained by contacting e-Mudhra or its nearest RA
4. You can apply only for DSC or for both DSC and token
5. Please ensure that your application is consistent and complete in all aspects to avoid delay in processing or rejection
6. e-Mudhra reserves the right to accept or reject any application for DSC
7. In case of cheque payments, DSC and/or token will be issued only after realization of the payment instrument
8. Customers can avail of support by contacting us over the telephone or through the web support facility available on www.dsignsoftech.com or call 9810135587
Link to apply
through https://www.e-mudhra.com/alliance/ag/c2gi2s/index.aspx
Even exempt income is taxable under MAT / s.115JB
Rain Commodities vs. DCIT (ITAT Hyderabad Special Bench)
Even exempt income is taxable under MAT / s.115JB
The assessee credited its P&L A/c with an amount of Rs. 149.77 crores being the profit on sale of assets to its wholly owned subsidiary. As the said profits were not chargeable to tax u/s 47(iv), the assessee took the view that the same had also to be reduced from the “book profits” u/s 115JB. The Special Bench had to consider whether exempt income could be excluded from the computation of “book profits” u/s 115JB. HELD deciding against the assessee:
(i) The AO can alter the “book profit” only in two circumstances (a) if the P&L A/c is not drawn up in accordance with Parts II & III of Schedule VI to the Companies Act or (b) If accounting policies & standards, method & rate of depreciation have been incorrectly adopted for preparation of the P & L A/c. Except for the said two cases, the AO has no power to alter the net profit shown in the P&L A/c. Under (a), the AO cannot disturb the Net Profit shown by the assessee where there are no allegations of fraud or misrepresentation but only a difference of opinion as to whether a particular amount should be properly shown in the P&L A/c or Balance sheet;
(ii) Parts II & III of Schedule VI to the Companies Act do not permit the exclusion of capital gain from the P & L A/c. The P & L A/c is required to disclose every material feature including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature including capital profits (Veekaylal Investments 249 ITR 597 (Bom) followed). Items referred to in the Notes are a part of the P&L A/c (Sain Processing 221 CTR 493 (Del) followed;
(iii) The assessee had included the said capital gains in the P & L A/c and it was not its’ case that same was not includible. The fact that the capital gains was exempt u/s 47(iv) does not mean it can be excluded from the “book profit” because no such exclusion was permitted under the Explanation to s. 115JB. The taxability of capital gain is relevant only for the purpose of computation of income under the normal provisions and has nothing to do with the computation of “book profits”. {N.J. Jose & Co 217 CTR 479 (Ker) (capital gains exempt u/s 54E) followed};
(iv) The argument that as s. 115JB (4) provides that “save as otherwise provided in this section all other provisions of the Act shall apply” does not mean that the exemption provisions of s. 47(iv) can be read into s. 115JB. This only means that while the computation has to be as per s. 115JB, anything over and above that will be subject to other provisions of the Act. Frig Sales 4 SOT 376 (Mum) overruled);
(v) Accordingly, in the absence of any provision for exclusion of exempted capital gain in the computation of book profit u/s 115JB, the assessee is not entitled to the exclusion claimed.
Note: Though the SB observed that it was not necessary for it to dwell upon a situation where the assessee has directly credited the profit on sale of asset to a reserve Account, it referred with approval to Bombay Diamond Co 33 DTR 59 where even profits not credited to the P&L A/c were held includible in Book Profits. Growth Avenue approved. Sutlej Cotton Mills 45 ITD 22 (Cal) (SB) which held that exempt capital gains had to be reduced from book profits was held not to be good law.
Even exempt income is taxable under MAT / s.115JB
The assessee credited its P&L A/c with an amount of Rs. 149.77 crores being the profit on sale of assets to its wholly owned subsidiary. As the said profits were not chargeable to tax u/s 47(iv), the assessee took the view that the same had also to be reduced from the “book profits” u/s 115JB. The Special Bench had to consider whether exempt income could be excluded from the computation of “book profits” u/s 115JB. HELD deciding against the assessee:
(i) The AO can alter the “book profit” only in two circumstances (a) if the P&L A/c is not drawn up in accordance with Parts II & III of Schedule VI to the Companies Act or (b) If accounting policies & standards, method & rate of depreciation have been incorrectly adopted for preparation of the P & L A/c. Except for the said two cases, the AO has no power to alter the net profit shown in the P&L A/c. Under (a), the AO cannot disturb the Net Profit shown by the assessee where there are no allegations of fraud or misrepresentation but only a difference of opinion as to whether a particular amount should be properly shown in the P&L A/c or Balance sheet;
(ii) Parts II & III of Schedule VI to the Companies Act do not permit the exclusion of capital gain from the P & L A/c. The P & L A/c is required to disclose every material feature including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature including capital profits (Veekaylal Investments 249 ITR 597 (Bom) followed). Items referred to in the Notes are a part of the P&L A/c (Sain Processing 221 CTR 493 (Del) followed;
(iii) The assessee had included the said capital gains in the P & L A/c and it was not its’ case that same was not includible. The fact that the capital gains was exempt u/s 47(iv) does not mean it can be excluded from the “book profit” because no such exclusion was permitted under the Explanation to s. 115JB. The taxability of capital gain is relevant only for the purpose of computation of income under the normal provisions and has nothing to do with the computation of “book profits”. {N.J. Jose & Co 217 CTR 479 (Ker) (capital gains exempt u/s 54E) followed};
(iv) The argument that as s. 115JB (4) provides that “save as otherwise provided in this section all other provisions of the Act shall apply” does not mean that the exemption provisions of s. 47(iv) can be read into s. 115JB. This only means that while the computation has to be as per s. 115JB, anything over and above that will be subject to other provisions of the Act. Frig Sales 4 SOT 376 (Mum) overruled);
(v) Accordingly, in the absence of any provision for exclusion of exempted capital gain in the computation of book profit u/s 115JB, the assessee is not entitled to the exclusion claimed.
Note: Though the SB observed that it was not necessary for it to dwell upon a situation where the assessee has directly credited the profit on sale of asset to a reserve Account, it referred with approval to Bombay Diamond Co 33 DTR 59 where even profits not credited to the P&L A/c were held includible in Book Profits. Growth Avenue approved. Sutlej Cotton Mills 45 ITD 22 (Cal) (SB) which held that exempt capital gains had to be reduced from book profits was held not to be good law.
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