Rounding rules for company balance sheets clarified; permitted rounding units depend on turnover thresholds and Gazette publication.
Alteration to Schedule VI prescribes permissible rounding of figures in the vertical balance sheet form according to turnover bands, replacing the prior Note 3; it authorises specified rounding units (hundreds, thousands, lakhs, millions, crores) and permits decimals, enacted under statutory power and effective on publication in the Official Gazette.

Income tax rule amendment narrows application, exempting railway employees and applying retrospectively under income tax rules notification.
The Central Board of Direct Taxes notifies the Income tax (19th Amendment) Rules, 2002, effective from 1 April 2001, amending Rule 3 of the Income tax Rules, 1962 by inserting a proviso in Sub rule (6) excluding Railway employees from that sub rule's application and by deleting the reference to the Railways from the second proviso of Sub rule (9); the explanatory memorandum states the change benefits Railway employees.

Infrastructure approval under tax-exemption rules granted subject to compliance with accounting, audit and reporting obligations.
Approval under the tax exemption framework is granted to M/s Nhava Sheva International Container Terminal Ltd., Mumbai for its quay-length container terminal project at Navi Mumbai, subject to conformity with the Income-tax Act's exemption criteria and procedural rules. The approval requires maintenance of books of account, statutory audit by a qualified accountant, and furnishing of the audit report; the Central Government may withdraw approval if the enterprise ceases to provide infrastructure facilities or fails to comply with the account-keeping, audit, or reporting obligations.

Export house eligibility reduced threshold expands recognition for small, certified and priority exporters under amended foreign trade rules.
Export contracts and invoices shall be denominated in freely convertible currency or Indian rupees, but export proceeds must be realised in freely convertible currency; ACU payments are denominated in ACU Dollar; the Government may relax these provisions and contracts may be denominated in Indian rupees against EXIM Bank/Government of India lines of credit. Specified categories of exporters qualify for Export House status on achieving an average FOB/FOR value of Rs.5 crore over the preceding three licensing years. Silver articles are defined to include items containing more than 50% silver by weight, with specified exclusions.

Taxability of professional services: practising accountants and corporate secretaries' management or recruitment work treated as taxable services.
The notification inserts an Explanation that services provided by a practising chartered accountant, practising company secretary or practising cost accountant are not covered by the exemption where those services fall within other taxable service categories; illustratively, services relating to organizational management or manpower recruitment by such practitioners are to be treated as management consultant or manpower recruitment agency services, and thus not exempt.

Service tax credit entitlement clarified: credit allowed when input and output services fall in same category.
Service tax credit is allowed to an output service provider for service tax paid on input services used in relation to rendering taxable output services, subject to documentary evidence, payment of value and tax, the matching of input and output service categories, restrictions where output services are exempt or non-taxable, requirements to maintain separate accounts or accept prescribed limits if accounts are not maintained, limitations on telephone connections, rules on utilisation and prohibition of refunds, transferability on specified transfers of establishment, recordkeeping and return filing, and recovery provisions for wrongly availed credit.

Taxable service classification revised: notification reference substituted to redefine which services fall within service tax scope.
Amendment substitutes the prior reference to the taxable service provision in Notification No. 6/99 with a different clause-based reference within the charging provision, thereby modifying which services are treated as taxable under that notification; the change is effected by exercise of powers under the Finance Act and takes effect from the stated commencement date in August 2002.

Service tax payment rules: cheque presentation deemed payment upon bank presentation subject to realization and revised return form introduced.
Rule 2 expands taxable scope to include life insurance and to treat services provided by non-residents without an Indian office as taxable in relation to the recipient in India. Rule 6 adds sub-rule (2A) deeming cheque presentation to the designated bank as the date of payment for service tax, subject to realization. The notification replaces Form ST-3 with a revised return requiring month-wise values and realisations, service tax payable, adjustments under rule 6(3), interest, payment mode details, supporting challan/journal references, a self-assessment declaration and official acknowledgement.

Service tax exemption for beauty parlour hair dyeing services removes tax liability for those services under the Finance Act.
The Central Government, under the Finance Act, 1994, exempted the taxable service provided to a customer by a beauty parlour in relation to hair dyeing from the whole of service tax leviable under the Act by Notification No. 11/2002 ST dated 1-8-2002, to come into force on 16 August 2002; that notification was later rescinded by a subsequent notification effective in 2005.

Exemption for cargo handling services removes service tax liability for handling agricultural produce and goods bound for cold storage.
Exemption of taxable services provided by cargo handling agencies in relation to agricultural produce or goods intended for storage in cold storage removes the service tax leviable under section 66, granted by Notification No. 10/2002-S.T. effective 16 August 2002; the relief applies to services "in relation to" such produce or cold-storage goods and was subsequently rescinded by a later notification.

Life insurance service tax exemption: insurer-provided services to policyholders excluded from service tax under notification.
A central government notification exempts the whole of the service tax levied on taxable services provided by an insurer carrying on life insurance business to a policy holder, exercising executive power to remove service tax liability in relation to those insurer-to-policyholder services from the notification's commencement.

Effective date appointment enables service tax amendments to commence, allowing levy under the Finance Act provisions.
Appointment of the Effective Date under section 149 of the Finance Act, 2002 designates 16 August 2002 for commencement of amendments to Chapter V of the Finance Act, 1994, thereby enabling the levy of service tax under the amended levy provision; issued via Notification No. 08/2002-Service Tax dated 01/08/2002.

Tax exemption granted to Auroville Foundation subject to conditions on income application, investment forms, accounting, and dissolution.
Notification grants income-tax exemption to Auroville Foundation subject to conditions: income must be applied wholly to its objects; investments are restricted to forms permitted under section 11(5) (except specified voluntary contributions); business income is excluded unless incidental and separately accounted; regular filing of income-tax returns is required; and on dissolution surplus assets must transfer to a similar charitable organization.

Tax exemption under clause 23C notified; applies subject to income application, restricted investments and business-incidence conditions.
Notification under clause (23C) of section 10 recognizes the U.P. Cricket Association, Kanpur for specified assessment years subject to conditions: apply or accumulate income in accordance with sub-sections (2) and (3) of Section 11 as modified; restrict investments to modes in sub-section (5) of Section 11 except notified forms of voluntary contributions; prohibit distribution to members except grants to affiliated bodies; and exclude business profits unless incidental with separate books maintained.

Research exemption approval under section 35(1)(ii) requires separate research accounts and annual audited returns to authorities.
M/s. Sri Aurobindo Ashram Trust is approved for purposes of clause (ii) of sub section (1) of section 35 of the Income Tax Act, 1961, subject to maintaining separate books for research, furnishing an annual scientific research return to the Secretary, Department of Scientific & Industrial Research by 31 May, and submitting audited annual accounts and audited income and expenditure accounts for the research activities to designated tax and research authorities by 31 October each year; renewal applications must be filed in triplicate through and to specified authorities.

Approval under Section 10(23G) granted to a power enterprise, subject to compliance and audit-based withdrawal conditions.
Approval is granted to M/s Samalpatti Power Company Ltd for tax-exempt status for its specified power project, conditional on its continuing operation as an infrastructure facility and strict compliance with the Income-tax Rules' requirements to maintain accounts, obtain an audit by a qualified accountant, and furnish the prescribed audit report, with the Central Government empowered to withdraw approval for non-compliance.

Cellular telephone requirement: Form 2C now mandates cellular telephone numbers (excluding wireless in local loop) where condition B(iii) applies.
The amendment to Income-tax Rules, 1962, Form No. 2C, substitutes the term "telephone" in condition B(iii) with "cellular telephone not being a wireless in local loop telephone" and replaces heading C, item 3 to require furnishing of cellular telephone number(s) (not being a wireless in local loop telephone) where condition B(iii) is satisfied.

Charitable exemption under section 10(23C)(v) granted subject to exclusive income use, permitted investments, business limits, and dissolution terms.
Notification under section 10(23C)(v) recognizes the Bochasanwashi Shri Akshar Purushottam Swaminarayan Sanstha as eligible for exemption for assessment years 2002-2003 to 2004-2005, subject to conditions: apply or accumulate income exclusively for its objects; restrict investments to forms in section 11(5) except certain voluntary contributions in kind; exclude business income unless incidental and separately accounted; regularly file income-tax returns; and on dissolution transfer surplus and assets to a charitable organization with similar objectives.

Tax exemption notification grants conditional recognition to Bombay Gow Rakshak Mandali, requiring restricted investments, return filing, and dissolution transfer.
The Central Government notified Bombay Gow Rakshak Mandali for conditional recognition under the income-tax regime for specified assessment years, subject to conditions that the assessee apply or accumulate income wholly and exclusively to its objects, restrict investments to prescribed forms (except specified voluntary contributions), exclude business income unless incidental and separately accounted, regularly file income-tax returns, and on dissolution transfer surplus and assets to a charitable organization with similar objectives.

Tax exemption under section 10(23C)(v) granted to a religious institution subject to compliance and investment restrictions.
Notification grants tax exemption to Srimad Jagadguru Madhwarcharya Moolamahasunsthana Uttaradi Math for assessment years 1999-2000 to 2001-2002 subject to conditions: apply or accumulate income wholly for institutional objects; restrict investments to forms permitted under section 11(5) (excluding voluntary contributions held as jewellery or furniture); treat business income as exempt only if incidental and maintained in separate books; regularly file income-tax returns; and on dissolution transfer surplus and assets to a similar charitable organization.