Bank Guarantee

The Supreme Court today said the CBDT order, as and when it is passed, on Mahindra Satyam tax dispute case would not take effect for two weeks so that the IT company may challenge it in an appropriate forum. Full Article

The Supreme Court today directed Mahindra Satyam to make its presentation before the Central Board of Direct Taxes (CBDT) relating to its tax dispute within two weeks, and also asked it to furnish a bank guarantee of Rs 617 crore by April 25. "Within two weeks the petitioner company (Mahindra Satyam) would file a comprehensive petition making its representation before CBDT giving all requisite information for re-assessment of income for year 2003-2004 to 2008-09,", the b.. Full Article

Trade Circular 5T of 2011 The refunds against bank guarantee shall be granted any time for any period even after the due date of filing of audit form 704 is over. The condition of refund audit of previous period and major discrepancy will not be applicable in the bank guarantee cases. It may be noted that after granting the refund against bank guarantee, if the refund audit officer notices that the deafer Is avoiding/ delaying the process of refund audit then the concer.. Full Article

banks have been permitted to make advance remittance without any limit and without bank guarantee or standby letter of Credit, by an importer (other than Public Sector Company or Department / Undertaking of the Government of India /State Governments) , for import of rough diamonds into India from eight mining companies, subject to certain conditions. Full Article

An Indian company that provides a bank guarantee (BG) against a loan taken by a subsidiary abroad will now have to pay tax here for standing guarantee for its associate, irrespective of whether or not it has received a commission from the latter for the BG. Seven companies which have provided bank guarantees against loans taken by their subsidiaries abroad are already under the tax net of India’s transfer pricing administration, a senior income-tax official said. Full Article

I am directed to invite your attention to Circular No.17/2009-Cus. dated 25.05.2009 (herein after referred to as ‘the said circular’) vide which revised norms for execution of Bond / Bank Guarantee (BG) in respect of imports made under the Advance Authorization / Export Promotion Capital Goods/Duty Free Import Authorization Schemes were notified and to say that, representations have been received to clarify, whether the status holders other than ‘Star Export Houseâ.. Full Article

Merely because the interest income is earned by the assessee on account of contractual obligation and the same has been accepted in the regular assessment u/s 143(3) of the Income-tax Act, 1961 does not mean that interest income is not taxable under the Act; there is no such provision under the Act to exempt any such income because it is contractual. Full Article

Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 15 dated September 8, 2008, in terms of which the limit for advance remittance for all admissible current account transactions for import of services without bank guarantee was raised from USD 100,000 to USD 500,000 or its equivalent. Full Article