"22 November 2007" Archive

Circular No. 860/18/2007-CX Dated 22/11/2007

Circular No. 860/18/2007-CX (22/11/2007)

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,...

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Clarification issued by PF Dept in ‘2005 requirng the inclusion of Leave Encashment for PF contributions

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 c...

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Posted Under: Excise Duty |

Set-off & carry-forward of losses under Income-Tax Act, 1961

The Income-Tax Act, 1961, allows set-off and carry-forward of the loss incurred by any assessee subject to some restrictions Apart from other information, the new income-tax forms, ITR-1 to ITR-8, notified by the Central government seeks details on set-off of losses. Now almost every assessee has to give this information. Therefore, one h...

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Posted Under: Excise Duty |

Latest Advance Ruling may impact billion-dollar Vodafone takeover case

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...

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Posted Under: Excise Duty |

AS-22 related to deferred tax accounting upheld by Apex Court

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 heade...

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Posted Under: Excise Duty |

Penalty – For failure to get accounts audited under the Income Tax Act, 1961

Commissioner of Income-tax, Bareilly v. Bisauli Tractors (Allahabad High Court)

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...

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No export obligation burden on SEZs

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...

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Posted Under: Excise Duty |

Mere addition agreed to by assessees during course of Survey u/s 133A would not empower Assessing Officer to levy penalty : Madras HC

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, th...

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Posted Under: Excise Duty |

Securities transaction tax likely to be hiked

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 e...

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Posted Under: Excise Duty |

Provision for NPA debited to P & L account as per RBI Act, not eligible for deduction under I-T Act

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,...

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Posted Under: Excise Duty |