exchange rate

NO.98/2010-CUSTOMS (N.T.), DATED THE 26th November, 2010 S.O.       (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in suppression of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.91/2010-CUSTOMS (N.T.), dated the 27th October, 2010 vide number [...] Full Article

Notification No.91/2010-CUSTOMS (N.T.), DATED THE 27th October, 2010 S.O. (E). – In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.85/2010-CUSTOMS (N.T.), dated the 28th September, 2010 vide number [...] Full Article

The Delhi High Court (HC) [2010-TIOL­42-HC-DEL-IT] in the case of CIT v. Industrial Finance Corporation of India (Taxpayer) which held that the difference between forward rate and exchange rate prevailing on the date of entering into forward contracts is fully allowable as deduction even if the difference is amortized in the books of account over the life of the forward contracts. Full Article

According to a recent decision of the Mumbai bench of the Income Tax Apellate Tribunal, non-resident companies and individuals are entitled to a beneficial rate of tax of 10% on long-term capital gains arising from the sale of shares of listed entities. Earlier, non-resident assessees were taxed at the rate of 20%. Full Article

About ‘Exchange Rate’ of a currency: The exchange rate of the currency of a country in relation to the currency of another country depends on the comparative trade advantages and economic strengths of the countries. If one US dollar is equal to 45 rupees, it simply means that in the US, if a dollar fetches [...] Full Article

AMENDMENTS IN FOREIGN TRADE POLICY 2004-09 The Union Minster of Commerce and Industry Shir Kamal Nath announced the annual supplement of Foreign Trade Policy 2009-10 on February 26, 2009. DGFT issued Public notice no. 151(RE-2008)/2004-09 dated February 26, 2009 to amend the Foreign Trade Policy 2004-09 and Handbook of Procedure (Vol-I) accordingly. The major amendments [...] Full Article

ACIT v. Prakash L. Shah - The exchange rate difference pertaining to the exports made in the earlier year shall be part of the export turnover of the year in which such export is made provided such sale proceeds of the eligible goods are realized in India within the period of six months from the end of the previous year or within such further period as allowed by the Competent Authority. Full Article

ACIT vs. Prakash I. Shah (i) The exchange rate gain difference pertaining to exports is an integral part of the exports and export turnover and cannot be treated as income from other sources. (ii) However, where such gain relates to exports made in an earlier year, the deduction u/s 80HHC is allowable only in the year in which the exports are made and not in the year of realisation of the gain. Full Article