Circular No. 735-Income Tax The issue of deduction of income-tax at source under section 193 and section 194-I of the Income-tax Act from any income received by any person on behalf of any Regimental Fund or Non-public Fund established by the Armed Forces of Union for the welfare of past and present members of such forces or their dependants, has been brought to the notice of the Board.
Circular No.177/11/96-CX I am directed to say that the Public Accounts Committee in their 104th Report (10th Lok Sabha) has expressed disappointment over the actions taken by the Department where a manufacturer namely Sipani Automobiles Ltd., Bangalore took fraudulent credit to the extent of Rs. 7684 lakhs in excess of the duty paid on the inputs by availing the credit on forged duty paying documents.
Notification No. S.O.69(E)-Income Tax In exercise of the powers conferred by sub-section (2) of section 145 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the following accounting standards to be followed by all assessees following the mercantile system of accounting, namely
Notification No. S.O.388-Income Tax It is notified for general information that the Home Trust Housing Finance Co. Ltd., 43, Ashutosh Chowdhuri Avenue, Calcutta-700 019, have been approved by the Central Government as a Housing Finance Company for the purposes of section 36(1)(viii) of the Income-tax Act, 1961, for the assessment years 1995-96 and 1996-97.
Notification No. S.O.389-Income Tax It is notified for general information that the Global Housing Finance Corporation Ltd., A-Wing, 307-Mittal Towers, Nariman Point, Bombay-400 021, have been approved by the Central Government as a Housing Finance Company for the purposes of section 36(1)(viii) of the Income-tax Act, 1961, for the assessment years 1995-96 and 1996-97.
Circular No. 734-Income Tax It has been represented by some Non-Resident Indians in the United Arab Emirates (UAE) that the banks and the U.T.I. have been deducting tax at source on interest and dividend incomes at rates higher than those provided in the Double Taxation Avoidance Agreement between India and the United Arab Emirates.
Circular No. 170/4/96-CX It has been brought to the notice of the Board by Maharashtra Chambers of Commerce & Industry that there is difficulty in determination of value of patterns used in foundry industry to be added in the cost of castings for arriving at the assessable value of the castings as the quantity of casting to be made out of a pattern cannot be anticipated and sometimes some modifications or repairs are also made in the pattern after some period of use.
Circular No. 169/3/96-CX I am directed to refer to Notification No. 64/93-CE, dated 28.02.93, as amended, in terms of which saloon cars, used as taxis are effectively charged excise duty @ 30% ad valorem. Since it is not certain, at the time of clearance of a saloon car from the the factory of manufacture, whether it would be used as a taxi, or otherwise
Circular No. 168/2/96-CX Certain doubts regarding the dutiability of sewing thread falling under heading No. 55.04 of the erstwhile CET (prior to its amendment before Finance Act, 1995) during the period 1994-95 have been raised on the grounds that heading No. 55.04 was not included in note 3 of section XI of the CETA, 1985. Doubts have also been raised in respect of duty liability on sewing thread manufactured by rewinders on the ground that exemption to duty paid yarn subjected to rewinding, reeling etc.
The decisions above are to be implemented immediately. The status of implementation should be reported in the monthly D.O. letters and also through separate letters to the Division Chief, Market Intelligence Division of SEBI.
