: For Finance Professionals & Students

Monthly Archives: September 2013

In this particular article I wish to share some of my views about Provident Fund contribution by the Employer and Employee, its Taxability and deduction under the head of Business or Profession.

 The main objective of the provident fund is to give retirement benefit in the form of lump-sum amount on retirement and also to provide pension scheme to the employees and their families.

 To govern the activities of provident fund The Employees Provident Fund act, 1952 has been introduced by the government of India and also Indian Income Tax Act, 1961 governs the taxability of the contribution made towards Provident Fund by the Employer and Employee.

Calcutta High Court in Cipla Limited vs Deputy Commissioner, Commercial Tax reported as VSTI 2013 Vol. 17 B-509 has held that There is nothing in Rule 12(5) of CST (R&T) Rules which could be construed to vitiate a declaration form i.e “F” form on a ground that such declaration form covered transactions for a period of more than a month.

 The High Court in nut shell held that one F form can cover transactions of more than one month also, as Rule 12(5) of CST (R&T) Rules 1957, uses the word “may” and not “shall” while prescribing the periodicity of F forms.

Changes in Audit and Auditors- Companies Act, 2013

The companies act, 2013 has come into existence on 29.08.2013 that replaces a nearly six decade-old legislation and overhauls the way corporate function and are regulated in the country.

This article contains the description of some provisions related to audit and auditors which have been modified in companies Act, 2013.

Appointment of first auditor in case of every company except govt. company or company owned/ controlled by CG/SG/CG and SG [139(6)]:-

Appointment of first auditor shall be made by board within 30 days of registration of company. If Board fails to appoint the first auditor within given time then it shall inform to members and members shall make the appointment of first auditor within 90 days of information at an EGM. The First Auditor shall hold office till the conclusion of first AGM.

The Ministry of Corporate Affairs notified some key sections of the new Companies Act. MCA notified 98 sections of the new Act, it said in a press note.

The sections so notified will come into effect from September 12.

“These are independent sections, which do not require the publication of rules. Currently, ministry is going through the process of receiving suggestions on draft rules,

Tax Audit Problems & Solutions



What are the steps to be followed for E-filling of Tax Audit Report?

Step 1- One Time Registration of Chartered Accountant at E-filling website

Step 2 – Login to Assessee account at e-filling website and Add CA

Step 3 – Downloading, Preparing Tax Audit Report Utility & Generating XML file.

Step 4 – Uploading XML file at E-filling website from CA’s Login Id

Step 5 – Approval of form uploaded by CA at E-filling website from Assessee’s Login Id

Step 6 – Do not forget to file Income Tax Return in Relevant ITR separately


What are operating system and runtime environment requirement for E-filling of Tax Audit Report?

Operating System – Windows XP with Service Pack 3/ Windows 7/ Windows 8.

Runtime Environment – JRE 1.7 Update 6 and above, 32 Bit is required to run applets for offline forms to work.

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