Amendments

Applicable for

CA PCC/IPCC NOV 2011 Examination

1. As per Notification No. 85/2010, dated 22.11.2010, Outstation allowance exemption shall be 70% of allowance received or `10,000 p.m. (instead of `6,000 p.m.), whichever is less 2. As per Notification No. 24/2011, dated 13.05.2011 in case of RPF, interest is exempt up to 9.5% p.a. with retrospective effect 01-09-2010. Therefore earlier Notification 69/2010 is set aside, which had reduced the said rate to 8.5% p.a.

3. Maximum exemption for gratuity under Payment of Gratuity Act shall be `10,00,000 instead of `3,50,000 wef 17th May 2010 and in case of other persons, limit shall be `10,00,000 wef 11th June 2010.

4. In case of excess payment of Service Tax maximum amount that can be adjusted was `1,00,000 per month or per quarter as the case may be but now this limit has been increased to `2,00,000 w.e.f. 01.04.2011 (Notification No.3/2011 dated 01.03.2011)

5. Maximum amount of penalty under section 70 has been increased to `20,000 instead of `2,000 (Finance Act, 2011)

6. In case of exchange of foreign currency, rate of service tax was 0.25% of the gross amount of currency exchange but now w.e.f. 01.04.2011 the rate will be as given below: (Notification No. 26/2011 dated 31.03.2011) S. No. 1. For an amount Upto `1,00,000 Service tax shall be calculated at the rate of 0.1% of the gross amount of currency exchanged or `25 Whichever is higher `100 + 0.05% of the gross amount of currency exchanged ` 550 + 0.01% of the gross amount of currency exchanged or `5,000 Whichever is lower

2. 3.

Exceeding `1,00,000 and upto `10,00,000 Exceeding `10,00,000

7. In case of life insurance, rate was 1% of the gross amount but now it will be 1.5% of the gross amount. (Notification No. 35/2011 dated 25.04.2011)

8. In case of sale of lottery ticket, service tax shall be as given below: Where the guaranteed lottery prize ` 6000/- on every `10 lakh (or part of `10 lakh) of payout is > 80% aggregate face value of lottery tickets printed by the organizing State for a draw. Where the guaranteed lottery prize ` 9000/- on every `10 lakh (or part of `10 lakh) of payout is < 80% aggregate face value of lottery tickets printed by the organizing State for a draw. 9. Rate of interest under section 75 was 13% p.a. but now it is 18% p.a. w.e.f 01.04.2011 (Notification No. 14/2011 dated 01.03.2011) but if gross receipt is upto `60 lakhs, rate shall be 15% p.a.

10. In case of CA, CS, ICWA, service tax shall be charged even in case of services provided by way of representation before any Court or Statutory Authority and it is applicable w.e.f. 01.05.20011 (Notification No. 32/2011 dated 25.04.2011)

11. New return forms for assessment year 2011-12 have been notified (1) SAHAJ It will be applicable for individual, whose total income includes income chargeable under the head (i) Salaries or family pension. (ii) Income from house property, where the assessee does not own more than one house property and does not have any brought forward loss under the head; or (iii) Income from other sources, except winnings from lottery or income from race horses. (2) SUGAM Return can be filed in SUGAM by the individual or HUF having presumptive income under section 44AD and 44AE either with or without the incomes mentioned below: (i) Salaries or family pension. (ii) Income from house property, where the assessee does not own more than one house property and does not have any brought forward loss under the head; or (iii) Income from other sources, except winnings from lottery or income from race horses.