01President's Note

Dear Friends,


At the outset, let me express my sincere gratitude to all the members of the Cochin Chamber of Commerce and Industry for electing me as the new President of the Chamber for the year 2011-2012 at the Business Session of the 154th Annual General Meeting held on the 28th of October, 2011.
I would also like to express my deep appreciation for the excellent leadership that Mr. Anand Menon gave the Chamber during his tenure in office. Under him, the Chamber has moved forward significantly and we owe him a debt of gratitude for the same.
As you are aware, the Chamber is constantly exploring the possibilities of providing a variety of services to its members and the business community at large. I am confident that with the support of our members, we will be able to come up with fresh initiatives and projects that will take the Cochin Chamber of Commerce and Industry to greater heights.
I am new to this job and I am counting on your continued support and cooperation in the year ahead. I request you, the members of the Chamber, to tell us on how best we can serve you in the coming days.
Once again, I thank you for this tremendous opportunity and the trust reposed in me.

Kind Regards,




P. Narayan
President

02 New Permanent Account Number Form 49AA introduced for Individuals not being a citizen of India, LLP, Companies, Firm, Trust, AOP, BOI, formed or registered outside India

Key Amendments

The particulars of different categories of applicant along with the type of Form and documents required are tabulated below:

 

Background

The Central Board of Direct Taxes (‘CBDT') has amended the Income-tax Rules, 1962 (‘the Rules') by notifying Income-tax (7 th Amendment) Rules, 2011 in respect of application for allotment of Permanent Account Number (‘PAN') with effect from 1 November 2011.

As per the amended rules there will be two separate PAN application forms as under:

• Form 49A: To be used by Indian Citizen, Hindu Undivided Families (HUF), Companies, Firm [including Limited Liability Partnership (LLP)], Trust, Association of Person, Body of Individuals, formed or registered in India.

 

• Form 49AA: To be used by Individuals not being a Citizen of India, LLP, Companies, Firm, Trust, Association of Person, Body of Individuals, formed or registered outside India.

 

Sr. No	Applicant	Form	Documents as proof of identity and address
1	Individual who is a citizen of India	49A	No change in the documents as previously specified in Rule 114. However, in case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External (NRE) bank account statements would now serve as a proof of address for obtaining a PAN.

Sr. No	Applicant	Form	Documents as proof of identity and address
2	HUF	49A	No change in the documents as previously specified in Rule 114. Additionally, an affidavit by the Karta of the HUF stating the name, father's name and address of all the coparceners on the date of application needs to be submitted alongwith PAN application.
3	Company registered in India	49A	No change in the documents as previously specified in Rule 114.
4	Firm [including LLP formed or registered in India]	49A	No change in the documents as previously specified in Rule 114.
5	Association of Persons (Trusts) formed or registered in India	49A	No change in the documents as previously specified in Rule 114.
6	Association of Persons (other than Trusts) or body of individuals or local authority or artificial juridical person formed or registered in India	49A	No change in the documents as previously specified in Rule 114.

 

Sr.No	Applicant	Form	Documents as proof of identity and address
7	Individuals not being a citizen of India	49AA	Following documents will serve as proof of identity and address: - (a) Copy of Passport; or (b) Copy of Person of Indian Origin card issued by the Government of India; or (c) Copy of Overseas Citizenship of India Card issued by Government of India; or (d) Copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located. Following documents will serve as proof of address:- (e) Copy of bank account statement in country of residence; or (f) Copy of Non-resident External bank account statement in India; or (g) Copy of certificate of residence in India or Residential Permit issued by the State Police Authority; or (h) Copy of the registration certificate issued by the Foreigner's Registration Office showing Indian address; or •  Copy of Visa granted and copy of appointment letter or contract •  from Indian Company and Certificate (in Original) of Indian •  Address issued by the employer.

 

	Applicant	Form	Documents as proof of identity and address
8	LLP registered outside India	49AA	(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by ‘Apostille' (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located; or (b) Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
9	Company registered outside India	49AA	(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by ‘Apostille' (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located; or (b) Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
10	Firm formed or registered outside India	49AA	•  Copy of Certificate of Registration issued in •  the country where the applicant is located, •  duly attested by ‘Apostille' •  (in respect of countries which are signatories •  to the Hague Apostille Convention of 1961) or •  by Indian embassy or

 

Sr. No	Applicant	Form	Documents as proof of identity and address
-	-	-	High Commission or Consulate in the country where the applicant is located; or (b) Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
11	Association of Persons (Trusts) formed outside India	49AA	(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by ‘Apostille' (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located; or (b) Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
12	Association of persons (other than Trusts) or body of individuals or local authority or artificial juridical person formed or any other entity (by whatever name called) registered outside India	49AA	(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by ‘Apostille' (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located; or (b) Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.

03 CBDT amended Income-tax rules for grant of withholding tax credit to person other than deductees

Background

The Central Board of Direct Taxes (CBDT) has amended the Income-tax Rules, 1962 (the Rules) by way of Notification in respect of credit for the whole or any part of the tax deducted at source (TDS). This tax credit shall be given to person other than deductees with effect from 1 November 2011.

 

The Notification also clarifies that the deductor now needs to furnish particulars of amount paid or credited on which tax was not deducted based on the declaration received from the payees that their tax liability is NIL.

 

Further, the Notification has amended due dates for furnishing tax withholding statements for Government deductors. However, due dates in the case of non- Government deductors will remain the same as currently applicable.

 

(A) Amendment in the due date for filing of tax withholding statement for Government deductor

 

Present Situation

The due date for submitting the quarterly tax withholding statement was 15th day of the month succeeding the quarter end.

 

Amendment in the Notification

CBDT has extended the due dates for filing quarterly tax withholding statements for Government deductor. Accordingly, Government deductor can now file the quarterly tax withholding statement upto the end of the month after the quarter end (except for the last quarter of the financial year). The due dates for deductors other than Government offices remain unchanged.

 

(B) Particulars to be furnished in TDS statement

 

Present Situation under the Income-tax Act and the Rules

 

• Section 197A of the Income-tax Act, 1961(the Act) enables certain payees fulfilling specific conditions to give declaration to the deductors that their liability will be NIL. Accordingly, tax is not required to be deducted on income paid to them.

• Under Section 197A(2) of the Act, the deductors need to file copy of such declarations received by them from payee to the tax authority on or before the seventh day of following the month in which the declarations are received by them.

• Currently, the relevant rule which provides for the form, manner and periodicity (quarterly) in which tax withholding statement (e-TDS return) are required to be furnished by the deductor does not specifically provide for the requirement to furnish information pertaining to cases where tax is not deducted based on declarations received. Further, the prescribed form for tax withholding statement does not contain references to cases of non-declarations.

 

Proposed situation by way of amendment to furnish particulars in TDS statement

 

As per the amended rule, CBDT has made it compulsory to furnish particulars of amounts paid or credited to payee on which tax is not deducted, in accordance with the furnishing of declarations under Section 197A2 of the Act, in quarterly tax withholding statements.

 

(C) Grant of TDS credit to person other than deductees Present Situation under the rules

 

• Mode of tax credit Credit for tax deducted and paid to the credit of Central Government shall be given to the person to whom payment has been made or credit has been given on the basis of information relating to TDS furnished by the deductor to the tax authority. Further, information in the return of income in respect of the claim for the credit is also required to be furnished by the deductee.

• Credit in the hands of person other than deductee If income on which tax has been deducted is assessable in the hands of the person other than deductee, credit for TDS shall be given to such other person provided:

•  The income of the deductee is included in the total income of another person under specified circumstances.

They are:

•  Clubbing of income of one person in the hands of another;

•  Income received by Association of Person or Trust assessable in the hands of members or trustees;

•  Income from asset held in the name a partner of a firm or karta of a Hindu Undivided Family (HUF), is assessable in the hands of the firm or HUF as the case may be;

•  The income from a property, deposit, security, unit or share is owned jointly by the deductee and other persons and income is assessable in their hands in the same proportion as their ownership of the asset.

•  The deductee files tax declaration with the deductor and deductor reports the tax deduction in the name of the other person in the information relating to TDS.

 

• Tax Deductor's responsibility

 

The deductor is required to issue TDS certificate in the name of such person other than deductee.

 

Proposed situation by way of amendment to grant TDS credit to person other than deductee

 

The present rule of TDS credit was applicable only in the specified circumstances specified as above. However, the new amendment provides clarity on TDS credit which will be applicable under all circumstances. It specifies that where the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than deductee, credit for the whole or any part of the TDS shall be given to the other person i.e. a person other than deductee and not to the deductee.

 

Our comments

 

The amended rule provides more clarity on TDS credit in the case of person other than deductee and furnishing information relating to cases of non-deduction based on declaration on NIL tax liability by the payees.

 

However, the Notification does not provide full clarity in respect of TDS credit to be claimed by amalgamated company in case of retrospective mergers. Practical difficulties may arise since in the period between appointed date and effective date, amalgamating company may not be able to provide necessary declaration to deductor for claim of credit by amalgamated company.

04News and Events:
Business Session of the 154th Annual General Meeting of the Cochin Chamber of Commerce and Industry - 28th October, 2011

The Business Session of the 154th Annual General Meeting of the Cochin Chamber of Commerce and Industry was held on Friday the 28th October, 2011 at 3:30 p.m. in the Chamber Hall. The President Mr. Anand Menon chaired the meeting. In his opening remarks he outlined the various initiatives that the Chamber is involved. He also thanked the Executive Committee and the Members for their whole hearted support, cooperation and encouragement during his tenure in office. At the Business Session, Mr. P. Narayan, the Outgoing Vice President, was elected President of the Chamber for the year 2011-2012. Mr. C.P. Mammen, Committee Member, was elected as the new Vice President. The meeting came concluded with a Hi-Tea and the networking that followed.

Click on the thumbnails to view photos

(From Left to Right: Mr. P. Narayan, New President, CCCI, Mr. Anand Menon, Past President, CCCI and Mr. Eapen Kalapurakal, Secretary, CCCI.)

05 The Executive Committee of the Cochin Chamber of Commerce and Industry for the year 2011-2012

Mr. P. Narayan	President	Chakiat Agencies, Post Box No.525, Subramanian Road, Willingdon Island, Cochin-682 003
Mr. C.P. Mammen	Vice President	Protech Appliances (P) Ltd., G261, 2nd Floor, Main Avenue, Panampilly Nagar, Cochin - 682036
Mr. Anand Menon	Committee Member	KSE Limited, P.B.No.20, Solvent Road, Irinjalakkuda- 680 121
Mr. Mathew George	Committee Member	Aspinwall & Co. Ltd., P.O. Box No. 560, Subramaniam Road,. Willingdon Island, Cochin - 682 003
Mr. C.S. Kartha	Committee Member	Bengal Tiger Line (India) Pvt. Ltd., 24/1157 C, 1st Floor, Lobo Brothers Bldg., Naval Road, Willingdon Island, Cochin-682 003
Mr. S. Gopakumar	Committee Member	Apollo Tyres Ltd., Perambra, Chalakudy - 680 689
Mr. Vijay Narayan Govind	Committee Member	Varma & Varma, Sriniketan, Nettipadam Road, Cochin - 682016
Mr. Shaji Varghese	Committee Member	Agencia Comercial Maritima Logistics Pvt. Ltd., 29/1460A7, Sreelakshmi Apts., 2nd Floor, Lakshmi Dairy Complex, Vyttila, Cochin - 682 019
Mr. R. Balachandran	Committee Member	S.B. Global Educational Resources (P) Ltd., 836/89, Arackal Building, Janatha Road, Vyttila, Cochin - 682 019
Mr. Jose Dominic	Committee Member	Hotel & Allied Trades P. Ltd., Casino Building, Willingdon Island, Cochin - 682 003
Mr. C.J. George	Committee Member	Geojit BNP Paribas Financial Services Ltd., V Floor, Finance Towers, Kaloor, Cochin - 682 017
Mr. V. Nandakumar	Committee Member	Harrisons Malayalam Ltd., Post Box No.502, Bristow Road, Willingdon Island, Cochin - 682 003
Mr. J.K. Thomas	Committee Member	Malankara Plantations Ltd., Malankara Buildings, P.B.No.72, Kodimatha, Kottayam - 686 039
Mr. A.K. Nair	Special Invitee	SCMS Group of Educational Institutions, Prathap Nagar,Muttom, Alwaye, Cochin – 683106

06Trade Enquiries/ Business Contacts

Nylon Fabrics

Omnitex Industries,

7, University place, Clayton North,

Victoria 3168

Australia

Contact Person: Mr. Peter Benham

Tel: 03 95600253

Email: peter@danoise.com.au

 

Marine Bronze Propellers

K. Meyer & Co.,

652, Kent Street,

Maryborough,

Queensland

Australia.

Contact Person: Mr. Ken Meyer,

Tel: 07 4121 5035

Fax: 07 4121 3310

Email: kmeyerco@big.net.au

 

Wire Rods, Steel Products, Wires

Quintet Solutions (Pvt),

Colombo

Contact Person: Mr. Tharindu K. S.

Email: info@quintetexports.com

 

Retail Food Group

(BB 's café, Brumby's Bakery, Donut King, Michel's Patisserie)

Retail Food Group Key Personnel

 

Gavin Nixon

 

Head of International & Emerging Markets

 

Faith Manning

 

National Sales & Leasing Co-ordinator

 

Franchise Information

Retail Food Group

PO Box 1549

Southport QLD 4215 Australia

Ph: +61 7 5591 3242

Fax: +61 7 5591 9021

Email: rfga@rfg.com.au

Web: www.rfg.com.au

07 Business Directory

The Cochin Chamber of Commerce and Industry has come out with a new edition of the ‘Business Directory' which will be useful to the business community at large.

The Business Directory is now available in the Chamber Office.

 

For further details, please contact:

The Cochin Chamber of Commerce and Industry,

P.B. No. 503, Bristow Road,

Willingdon Island, Cochin – 682003

Tel: 0484 2668349, 2668650

Fax: 0484 2668651

Email: cochinchamber@eth.net

08Trade Enquiries / Business Contacts

Nylon Fabrics

Omnitex Industries,

7, University Place,

Clayton North, Victoria 3168

Australia

Contact Person: Mr. Peter Benham

Tel: 03 95600253

Email: peter@danoise.com.au

 

Marine Bronze Propellers

K. Meyer & Co.,

652, Kent Street,

Maryborough,

Queensland

Australia.

Contact Person: Mr. Ken Meyer,

Tel: 07 4121 5035

Fax: 07 4121 3310

Email: kmeyerco@big.net.au

 

Wire Rods, Steel Products, Wires

Quintet Solutions (Pvt),

Colombo

Contact Person: Mr. Tharindu K. S.

Email: info@quintetexports.com

09 Circulars and Notifications

10 Trivia

Quick facts about Kochi Metro

• Total length – 25.523 kms

• Total estimated cost - Rs. 4,427 crores

• Metro trains will have three to six cars

• Each car can accommodate around 200 passengers

• Will travel upto a speed of 50 kmph

• Standard gauge rail of 1,435 mm width to be used

• Alignment has been planned to keep acquisition of land to a minimum. Only 15.9959 hectares of private land need to be acquired

• From station to station, the running time will be approximately two minutes

• The total running time from Aluva to Petta will be approximately 50 minutes. By road, Tripunithura to M.G. Road takes 2 hours during peak hours and Alwaye to M.G. Road takes more than 2 hours. These distances will be covered in 15 minutes and 30 minutes respectively.