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I am directed to refer to Boards circular no. 736/52/2003-CX dated 11.08.2003 on the above subject. Vide this circular, the facility of self-sealing was extended to all categories of manufacturer-exporters. In this regard, references have been received from field formations that in spite of this facility being available to the exporters, a large number of exporters prefer stuffing and sealing of export containers in the presence of Central Excise officers.
Provident fund contributions need not be deducted from the payment made towards annual leave encashment, the Madurai Bench of the Madras High Court has ruled. Allowing a batch of writ petitions filed by various factories, Justice K. Chandru said leave encashment could not be considered part of the basic wage for deducting provident fund contributions. Employees usually did not exhaust their earned leave; they chose to encash them at the time of retirement, or the sum was paid to their heirs in case of contingency such as the death of an employee. Hence, they would not be benefited at all by provident fund deduction from the encashment of annual leave.
Latest Advance Ruling may impact billion-dollar Vodafone takeover case; Capital gains – Transfer of shares between two non-resident entities abroad – Since situs of income is located here, it is taxable in India. TAXING capital gains has always been a tricky subject for the Revenue. If it ever involved two non-resident entities, it always proved to be a much trickier and harder nut to crack. Then came the insertion of the most crucial clause in the statute – the situs of the capital asset, a step to iron out the hiatus in the relevant provisions of the Income Tax Act. This was designed to take care of the transactions between two non-residents over the capital assets situated in India.
The Supreme Court has upheld the revised accounting standards AS 22 issued by the Institute of Chartered Accountants of India which has been made mandatory for all the companies listed in the stock exchanges since the financial year 2001-02. Dismissing the appeals of a large number of companies that opposed the new policy, the bench headed by Justice SH Kapadia said AS 22 sought to arrive at the true accounting income.
Section 271B, read with section 44AB, of the Income-tax, 1961 – Penalty – For failure to get accounts audited – Assessment years 1987-88 to 1989-90 – Whether section 271B is not attracted in a case where no account has been maintained and instead recourse under section 271A can be taken – Held, yes
There is good news in store for SEZ units. The government is likely to put on hold its plan of placing an export obligation on units operating in SEZs. The commerce department has suggested to the finance ministry that the government should consider imposing an export obligation only if exports from such zones fall below a threshold limit in the coming years. While the government was deliberating making it compulsory for all SEZs to export 51% of what they produce, the present average export figures of SEZs is much higher at 82%.
THE assessees were the Directors of M/s Hotel AMS Pvt. Ltd., Kondalapatti, Salem. During the course of survey conducted on 16.11.1999 under Section 133A of the Income Tax Act, it was noticed that the company had constructed the hotel with the share capital funds said to have been floated by the Directors. On enquiry with the assessees, the assessees offered a sum of Rs.12,00,000/ – as income, out of which Rs 2,00,000/- each in the name of the assessees and remaining in the name of other members in Hindu Undivided Family.
Now it’s the government’s turn to cash in on the stock market boom. The finance ministry is considering raising the rate at which securities transaction tax (STT) is levied. One of the options is to increase the ceiling rate to 0.5% of the value of the taxable securities transactions. At present, it is levied at rates of 0.017- 0.25% on every transaction on domestic bourses.
Whether, a Provision for Non Performing Assets (‘NPA’) debited to profit and loss account and claimed as a deduction in accordance with the prudential norms issued by the RBI in exercise of powers conferred on it under section 45JA of the RBI Act, 1934, called the Non Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998, should be allowed as deduction while computing income from business under the provisions of the Income-tax Act, 1961?
Has your income-tax return been picked up for scrutiny by the income-tax department? You may not get to know the reason. The department is against bringing scrutiny under the purview of the Right To Information (RTI) Act. This means an assessee will not have the right under the RTI Act to ascertain as why his case was selected for scrutiny by the department.
