Statutory ammendments to company law
January 14, 2004
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Direct tax notifications

Recent Notifications:

Date : Feb 24th, 2004

DIRECT TAXES

Non-residents – report of audit in case of income by way of royalties, etc., – Text of Notification No 298/2003 dated 20.11.2003 issued by the Central Board of Direct Taxes.

S O In exercise of the powers conferred by section 295, read with sub-section (2) of section 44DA, of the Income Tax Act, 1961 (43 of 1961), the central Board of Direct taxes hereby makes the following rules further to amend the Income tax rules, 1962, namely :

1. (1) These rules may be called the Income tax (Twenty seventh amendment) Rules, 2003.
(2) They shall come into force from the date of publication in the Official Gazette.

2. In the Income Tax Rules, 1962-
a) After Rule 6G, the following shall be inserted, namely :
“CCC-A. – Report of audit in case of income by way of royalties, etc. in case of noon-residents.

6GA. Form of report of audit to be furnished under sub-section (2) of section 44DA.

The report of audit of accounts of the non-resident (not being a company) or a foreign company, which is required to be furnished under sub-section (2) of section 44DA shall be in Form No 3CE.”

[Bombay Chartered Accountant Journal – Vol 36 Part 4 – January 2004 Page No – 467]

INCOME TAX

Tax clearance certificate – Rules changes – New forms prescribed – Text of Notification No 299/2003 dated 21.11.2003 issued by the Central Board of Direct Taxes.

S O (E) – In exercise of the powers conferred by section 295 of the Income tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :

1. (1) These rules may be called the Income-tax (Twenty-eighth Amendment) Rules, 2003.
(2) They shall come into force from the date of publication in the Official Gazette.

2. In the Income tax Rules, 1962 –
(a) in Part IX, for Rules 42 and 43 the following rules shall be substituted, namely :

“42. prescribed authority for tax clearance certificates.-

(1) For the purposes of sub-section (1) of section 230, the prescribed authority shall be the Chief Commissioner of Income Tax or the Director General of Income tax as the case may be who has jurisdiction over the persons not domiciled in India or any other income-tax authority authorized by such Chief Commissioner or Director General in this behalf.

(2) For the purposes of sub section (1A) of section 230, the prescribed authority shall be the Chief Commissioner of Income tax having jurisdiction over the persons domiciled in India or nay other income tax authority authorized by him in this behalf :

Provided that in the case of a person domiciled in India referred to in the first proviso to sub-section (1A) of Section 230, the application shall be made to the Assessing Officer who has jurisdiction to assess such person.

43. Forms and certificates for the purposes of sub-sections (1) and (1A) of section 230.-

1 An undertaking to be furnished to the prescribed authority by a person not domiciled in India from the persons referred to in clause (i) or clause (ii), as the case may be, shall be in Form No 30A.

2 A No-objection certificate to be issued by the prescribed authority under sub-section (1) of section 230 shall be in Form No 30B and shall be valid for the period mentioned therein.

3 The information to be furnished by a person domiciled in India shall be in Form No. 30C.

4 An application under the first proviso to sub-section (1A) of section 230 may be made in Form No 31.

5 A tax clearance certificate issued under the first proviso to sub section 230 shall be in Form No 33 and shall be valid for the period mentioned therein.

6 A copy of the undertaking referred to in sub-rule (1) and the no-objection certificate referred to in sub-rule (2) shall be forwarded to the Chief Commissioner or Director General, as the case may be, having jurisdiction over the persons referred to in clause (i) or clause (ii) of sub-section (1) of section 230.”
[Bombay Chartered Accountant Journal – Vol 36 Part 4 – January 2004 Page No – 469]

FEMA

Foreign Exchange Management Act, 1999 – Current account transactions – Liberalisation – Text of A P (DIR Series) Circular No 33 dated 13.11.2003 issued by the Reserve Bank of India.

Attention of authorized dealers is invited to A P (DIR Series) Circular No 3 dated 17.07.2003 permitting them to allow remittances , viz (i) employment abroad (ii) emigration (iii) maintenance of close relatives abroad and (iv) education abroad. Authorised dealers were also permitted to allow remittance upto USD 1 million per project, towards consultancy services procured from outside India subject to the applicant furnishing documents to the authorized dealer’s satisfaction. The necessary amendments to the Foreign Exchange Management (Current Account Transactions) Rules, 2000 have since been notified by the Government, in the Official Gazette, vide Notification No GSR 731(e) dated 5-9-2003, a copy of which is enclosed.

Authorised dealers may bring the contents of this circular to the notice of their constituents concerned.

The directions contained in this circular have been issued under section 10(4) and section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)

[Bombay Chartered Accountant Journal – Vol 36 Part 4 – January 2004 Page No – 469]


The Gazette of India: Explanatory Ministry of Finance

(Department of Economic Affairs)
Notification
New Delhi 5-9-2003
G S R 731 (e) – In exercise of the powers conferred by section 5 and sub-section (1) and clause (a) of sub-section (2) of section 46 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in conclusion with the Reserve Bank, the Central Government having considered it necessary in the public interest, makes the following amendments in the Foreign Exchange Management (Current Account Transactions) Rules, 2000, namely:

1. Short title and commencement:
(1) These rules may be called the Foreign Exchange Management (Current Account Transactions) (Third Amendment ) Rules, 2003.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Foreign Exchange Management (Current Account Transactions) Rules, 2000, in Schedule III:

(a) in item Nos 5,6 and 7, for the word and figure `US $ 5000’ the word and figure `US $ 100,000’ shall be submitted;
(b) in item No 10 for the word and figure `US $ 30,000’ the word and figure `US $ 100,000’ shall be substituted: and
(c) in item No 15 for the word and figure `US $ 100,000’ the word and figure `US $ 1,000,000’ shall be substituted.

[Bombay Chartered Accountant Journal – Vol 36 Part 4 – January 2004 Page No – 470]

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