|
President’s Message |
|
The recent budget speech of the Hon’ble Finance Minister for 2009-10 has given a ray of hope to every sector of the society. The raising of basic exemption limit for individuals, senior citizens and for women has been appreciated to a large extent by everyone. The All India Federation Tax Practitioners has made a representation to Hon’ble Chairman of Central Board of Direct Taxes in which the various suggestions were made. Some of the suggestions given on behalf of the Federation has been accepted inasmuch as it relates to the abolition of fringe benefit tax and also the surcharge on Income Tax. The suggestions given for
increasing the monetary limit in the various sections has not been accepted,
except in case of payment made to the transporters under section 40A(3) of the
Income-tax Act by increasing the limit of cash payment from Rs. 20,000/- to Rs.
35,000/-. With the threshold limit from Rs. 15,00,000/- to Rs. 30,00,000/- under Wealth Tax Act should have been taken as a guide for increasing the monetary limit in the various sections of the Income-tax Act in respect of which the details were given in the representation of Federation. While presenting the budget Hon’ble Finance Minister has specifically mentioned in his speech on 6-7-2009 that I quote. “Although there is a school of thought that legal consultants do not provide any service to their client. I hold my distinguished predecessor in high esteem and disagree! As such, I propose to extend service tax on advice, consultancy or technical assistance provided in the field of law. This tax would not be applicable in case the service provider or the service receiver is an individual.” Unquote. Section 65(105)(zzzzm) imposes service tax on services provided or to be provided to a business entity, by any other business entity in relation to advice, consultancy or assistance in any branch of law in any manner. A proviso excludes, service provided by way of appearance before any Court, Tribunal, Authority from the ambit of taxable service. An explanation defines ‘business entity’ to include an association of persons, body of individuals, company or firm, but does not include an individual. Thus the individual advocates has been excluded from the proviso of service tax. The liability for payment of service tax is only on the business entity when it gave advise, consultancy or assistance in any branch of liability to another business entity which includes firm, company body of individuals or association of persons. The various amendments which have been proposed in the income tax, service tax are being discussed in the various seminars and the conferences which have been organized in different parts of the country by the various Zones of our Federation. It is very encouraging that different zones have organized the one day conference/seminar to discuss the budget. Since the GST is going to be introduced from 1-4-2010 as announced by the Hon’ble Finance Minister, I suggest that all the zones of AIFTP should make sincere efforts at their levels to participate in the discussions regarding GST that their respective State Governments. The contribution of the Federation is extremely important and we are sure that we shall be able to contribute the same for the proper implementation of the GST in the coming years. I suggest that the committee of
AIFTP be formed both at the national level as a well as at the State level for
giving the suggestion both to the proposed GST and the new Income tax code which
has been mentioned in the budget speech of the Hon’ble Finance Minister. I am extremely happy to inform our respected members by “One Day National Tax Conference” at Chandigarh Judicial Academy on Sunday, the 12th July, 2009, jointly with All India Federation of Tax Practitioners, North Zone and Chandigarh Judicial Academy on the theme “Admission of Fiscal Laws”. It was inaugurated very well planned, well attended, inaugurated by Hon’ble Mr. justice D. K. Jain, Judge of the Supreme Court, presided by Hon’ble Mr. Justice P. Sathasivam of the Apex Court,’ with guest of honour Hon’ble Mr. Justice T. S. Thakur, ‘Chief Justice’ of Punjab & Haryana High Court. Hon’ble Mr. Justice Rajesh Bindal, has given the guidance to Sh. K. L. Goel, Sh. Sandeep Goel, Sh. Arun Jain, which has added new dimension to the activities of the Federation. The Video Conferencing with the Hon’ble Chief Justice of Bombay High Court and the Past President of the Federation, Sh. P. C. Joshi has added glamour to the Conference. I suggest their the Chairman and Vice Chairman of different zones may consider of such activities with the different judicial academies with a view to broaden the base of AIFTP. With personal regards to every
member of our own Federation. |