Income-tax (Eighth Amendment) Rules, 2004 - 142/2004 - Income Tax

Income-tax (Eighth Amendment) Rules, 2004 Notification No. 142 of 2004, dt. 19th Apr., 2004 In exercise of the powers conferred by Section 295 of the Income-tax Act, 1961 (43 of 1961), read with subclause (iii) of clause (b) of Sub-section (7B) and clause (aa) of Sub-section (14) of Section 80-IB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962; namely: 1. (1) These rules may be called the Income-tax (Eighth Amendment) Rules, 2004. (2) They shall be deemed to have come into force from the 1st day of April, 2002. 2. In the Income-tax Rules, 1962,- (a) after rule 18DB, the following rule shall be inserted, namely:- "Prescribed area, facilities and amenities for convention centres and particulars of audit report, for deduction under Sub-section (7B) and clause (aa) of Sub-section (14) of Section 80-IB. 18DC. (1) For the purpose of Sub-section (7B) and clause (aa) of Sub-section (14) of Section 80-IB, the convention centre shall have the following area, facilities and amenities,- (i) A convention centre located in a town or city mentioned in column (1) of the table below, shall have a minimum plinth area mentioned in column (2), minimum sealing capacity mentioned in column (3) and minimum number of conference or seminar halls mentioned in column (4) of the said table, as under:- Town size population (as per 2001 census) Minimum area covered plinth area (in Sq. mtrs.) Minimum seating capacity range Minimum number of Conference or Seminar halls (1) (2) (3) (4) Below 5 lakhs 2000 200-300 2 5-10 lakhs 5000 500-750 3 10-40 lakhs 10000 1000-1500 5 Above 40 lakhs Mega cities 15000 1500-2000 7 (ii) The convention centre shall have conference or seminar halls, auditorium and exhibition halls for holding seminars, conferences. (iii) Each conference, seminar hall, exhibition hall and the auditorium of the convention centre shall be equipped with modern public address system, slide and power point projection system and LCD projector or Video screening facility. (iv) The convention centre shall also have a documentation centre with computers and printers, telephone with STD/ISD facilities, E-mail, photocopy and scanning facility along with trained operators to provide these facilities. (v) The conference or seminar hall, documentation centre, auditorium and the exhibition hall of the convention centre shall be air-conditioned. (vi) The convention centre shall have adequate parking facility and other public conveniences as per the local building regulations and should also fulfil all local building regulations in respect of fire and safety. (2) In addition to facilities mentioned in sub-rule (1), the convention centres may have,- (i) an amphi-theatre, landscaped open spaces for outdoor conference or seminar related activities. (ii) a kitchen, dining facility cafeteria or restaurant only to support events in the convention centre. (3) A separate report of the audit, shall be furnished along with the return of income in respect of each eligible convention centre, in Form No. 10-CCBB and shall be duly signed and verified by an accountant as defined in the Explanation below sub-section (2) of Section 288. (4) In the first year of the claim of deduction, the assessee shall enclose along with the audit report, a. copy of approvals for building of convention centre given by State or local authorities, which shall, where applicable, include the following: - (i) permission for construction of the convention centre, from the town planning authority or municipal corporation; (ii) completion certificate or occupation certificate, as the case may be, from the town planning authority or municipal corporation, certifying the completion of the convention centre, during the period commencing on the 1st day of April, 2002 and ending on the 31st day of March, 2005." (b) In Appendix-II, after Form No. 10CCBA, the following form shall be inserted, namely:- "FORM NO. 10CCBB" (See Rule-18DC) 1. Name of the assessee: 2. PAN: 3. Status: 4. Share in the ownership of the convention centre; (a) Fully owned by assessee Yes__________ No__________ (b) Partly owned by assessee Yes__________ No__________ (c) If yes, please specify the percentage of ownership: 5. Name and address of the convention centre: 6. Date of commencement of operation by the convention centre: 7. Initial assessment year: 8. Approval from the town planning authority or municipal corporation under the town planning or municipal corporation regulation (attach copy of approval): Approval Issuing Authority Approval date and number (a) Permission for construction of the convention centre (b) Completion certificate or occupation certificate 9. Technical details of convention centre: (i) Town size population (as per 2001 census) (ii) Total covered plinth area (in Sq. metres) (iii) Number of conference or seminar halls (iv) Seating capacity of the convention centre (v) Number of Auditoriums (vi) Number of exhibition halls. (vii) Technical specification of convention centre: (a) Whether the conference or seminar halls, auditorium and exhibition hall have modern public address system Yes________ No________ (b) Whether conference or seminar halls, auditorium and exhibition hall have slide and power point projection system Yes________ No________ (c) Whether conference or seminar halls, auditorium and exhibition hall have LCD Projector/Video screening facility Yes________ No________ (d) Whether the convention centre has a documentation centre Yes________ No________ (e) Whether the documentation centre has Computers, printers, Fax, E-mail, photocopier and scanner along with trained operators to handle these equipments Yes________ No________ (f) Whether the conference or seminar halls, exhibition hall, auditorium and documentation centre are air-conditioned Yes________ No________ (g) Whether the convention centre has adequate parking and other public conveniences as per local building regulations Yes________ No________ (h) Whether the convention centre fulfills the local building regulations in respect of fire and safety Yes________ No________ (i) Whether the convention centre has amphi-theatre Yes________ No________ (j) Whether the convention centre has landscaped (i) open space Yes________ No________ (i) if yes, please specify the purpose for which the same is used Yes________ No________ (k) Whether the convention centre has (i) Kitchen facility or Restaurant Yes________ No________ (i) Whether the same is used only to support events in the convention centre Yes________ No________ 10. Details relating to computation of deduction: (i) Number of Conferences or Seminars held ___________ (ii) Receipts from convention centre ___________ (iii) Other receipts: ___________ (iv) Profit derived from the business of building-owning-operating of convention centres: (Amount in rupees) ___________ (v) Deduction under section 80-IB (7B) (amount in rupees) ___________ Declaration *I/We have examined the balance sheet of the above convention centre styled** ....................and belonging to the assessee M/s............................................(Permanent Account No......................................) as at.....................................and the profit and loss account of the said convention centre for the year ended on that date which are in agreement with the books of account maintained at the head office at....................................and branches at.................................... *I/We have obtained all the information and explanations which to the best of *my/our knowledge and belief were necessary for the purposes of the audit. In *my/our opinion, proper books of account have been kept by the head office and the branches of the convention centre aforesaid visited by *me/us so far as appears from *my/our examination of books, and proper returns adequate for the purposes of audit have been received from branches not visited by *me/us, subject to the comments given below:- In my opinion, the convention centre satisfies the conditions stipulated in section 80-1B and the amount of deduction claimed under this section is as per the provisions of the Income-tax Act, and In *my/our opinion and to the best of *my/our information and according to explanations given to *me/us, the said accounts given a true and fair view- (i) in the case of the balance sheet, of the state of affairs of the above named convention centre as at..........................., and (ii) in the case of the profit and loss account, or the profit or loss of the convention centre for the accounting year ending on.................................. Place................................... .......................... Date................................. Signed Accountant" Sd/- (Chandrajit Singh) Under Secy. Note: The principal rules were published in the Gazette of India, Extraordinary Part-II, Section 3 (ii), dated the 26th March, 1962 vide S.O.969(E), which was amended from time to time and last amended by Income-tax (7th amendment) Rules, 2004 vide Notification S.O. No, 434(E), dated 31-3-2004 EXPLANATORY MEMORANDUM The Finance Act, 2002 amended section 80-IB of the Income-tax Act, 1961, to insert sub-section (7B) providing a deduction for new convention centres, w.e.f. 1-4-2003. This notification has amended the Income-tax Rules, 1962 to insert Rule 18DC to prescribe the area, facilities and amenities for convention centres as well as the particulars of audit report to be filed for the purpose of sub-section (7B) and clause (aa) of sub-section (14) of section 80-IB. The rule is being notified with retrospective effect and is not prejudicial to the assessees. File No.142/13/2002-TPL