"August, 2009" Archive

Public Notice No. 4/2009-14, Dated: 31.08.2009

Public Notice No. 4/2009-14 (31/08/2009)

In exercise of the powers conferred under Paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes the following corrections / amendments in HBPv1 (including Appendices and ANFs)....

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Public Notice No. 3/2009-14, Dated: 31.08.2009

Public Notice No. 3/2009-14 (31/08/2009)

However, it is clarified that in case the importer wants to use a specific permission/license for import of a restricted item as well as pay the duty using Duty Credit Scrip, then Duty Credit Scrip shall be allowed to be used only if the item is also importable under the respective paras of Duty Credit Scrip (reference FTP Paras 3.12.6, 3...

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Notification No. 24/2009-Central Excise; Dated: 31.08.2009

Notification No. 24/2009-Central Excise (31/08/2009)

- The principal notification was published vide number G.S.R. 266(E), dated the 31st March, 2003, and last amended vide notification No. 10/2009-Central Excise, dated the 7th July, 2009, published vide number G.S.R.468(E), dated the 7th July, 2009....

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Levy of penalty for declaration of in-genuine gift in revised return u/s. 139(5) of IT Act

ACIT Vs Deepak Agarwal (ITAT Lucknow)

The undisputed fact is that return filed by the assessee on 31.7.2001 did not contain any information with respect to the amount of gifts received by the assessee in the name of his children. That return was processed under section 143(1) on 1.2.2002 and notice under section 143(2) was also issued on 14.2.2002 and compliance was required ...

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Applicability TDS charges on pre-paid mobile cellular services provided by a service provider through its distributor’s network

Vodafone Essar Cellular Ltd. Vs ACIT (ITAT Cochin)

. There is no dispute or dis-agreement regarding the nature of transactions entered into between the assessee and its distributors. The assessee company, by virtue of the licence issued by the Department of Telecommunications, Government of India, is engaged in providing Mobile telephone services to the public at large. The Govt, of India...

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Applicability of section 44BB of the IT Act on mobilization/ demolization charges received by a non-resident foreign company

R&B Falcon Drilling Co. Vs Addl. CIT (Uttarakhand High Court)

Brief facts of the case giving rise to this appeal are that assessee, a non-resident foreign company, engaged in the business of providing services in connection with extraction and production of mineral oils, submitted its return of income declaring income at Rs. 2,11,79,270/ - for the Assessment Year 1999-2000. The case was processed u...

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Section 260A authorizes the High Court to hear an appeal only when substantial question of law is involved

Qazi Shabir Ahmed Vs ITO (Jammu & Kashmir High Court)

It is settled position of law that appeal is creature of Statute and appeal can be filed only when permitted by Statute and can be filed on the grounds mentioned In the Statute. In terms of section 260-A the High Court gets power to hear and decide an appeal only when a substantial question of law is involved. The section 260-A of the Act...

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AAR on tax rate applicable to a foreign company on LTCG accruing to it on sale of shares in Indian company

Fujitsu Services Ltd., In re (Authority for Advance Rulings)

The applicant is a non-resident Company incorporated in United Kingdom. It is engaged in the business of information technology services. The applicant acquired the shares in Zensar Technologies Limited (for short `Zensar'), an Indian company by making payments in foreign currency between 1963 and 1994, after obtaining RBI's approval....

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Depreciation on transfer of Investment from available for sale (AFS) to held to maturity (HTM) category by banks

State Bank of Mysore Vs DCIT (ITAT Bangalore)

Assessee is treating the securities held under the, category 'held for maturity' as stock-in-trade. If there is appreciation in the market value as compared to the market value at the opening of the year and such appreciation is also accounted for. It is not claiming depreciation only for the years, when the value has gone down. ...

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Amends Notification No. 36/2001-Customs Duty (N. T.), Dated: 03.08.2001

Notification No. 131/2009-Customs (N. T.) (31/08/2009)

The Principal notification was published in the Gazette of India, Extraordinary, vide Notification No. 36/2001 – Customs (N.T.), dated, the 3rd August, 2001 (S. O. 748 (E), dated, the 3rd August, 2001) and was last amended vide Notification No. 122/2009-Customs (N.T.), dated, the 13th August, 2009 (S. O. 2123 (E) dated 13th August, 2009...

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Notification No. 89/2009 – Customs Duty, Dated: 31.08.2009

Notification No. 89/2009-Customs (31/08/2009)

rate of exchange applicable for the purposes of calculation of anti-dumping duty shall be the rate which is specified in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), issued from time to time, in exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962) and the...

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RBI issued circular, relaxing existing norms on Investment Portfolio of Primary Dealers

RBI/2009-10/136 IDMD.PDRD.No. 1050/ 03.64.00/2009-10 (31/08/2009)

Banks undertaking PD activities departmentally may continue to follow the extant guidelines applicable to the banks in regard to the classification and valuation of the investment portfolio issued by our Department of Banking Operations and Development....

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Exempt Services in relation to the transport of goods through national waterway, inland water and coastal shipping in certain cases

Notification No. 30/2009 – Service Tax (31/08/2009)

NOTIFICATION No. 30/2009 – Service Tax Central Government exempts taxable service provided in relation to the transport of goods, the description of which is specified in column (2) of the Table, through national waterway, inland water and coastal shipping as referred to in sub-clause (zzzzl) of clause (105) of section 65 of the Finance...

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Notification No. 29/2009 – Service Tax, dated 31-08-2009

Notification No. 29/2009-Service Tax (31/08/2009)

Notification No. 29/2009-Service Tax In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the...

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Notification on Exempts Services in relation to transport of goods by rail in certain cases

NOTIFICATION No. 28/2009 – Service Tax (31/08/2009)

NOTIFICATION No. 28/2009 – Service Tax Central Government hereby exempts the taxable service provided to any person in relation to transport of goods, the description of which is specified in column (2) of the Table, by rail as referred to in sub-clause (zzzp) of clause (105) of section 65 of the Finance Act, from the whole of the servi...

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Difficulties in Filing acknowledgement of Income tax Return filed online

The process of electronically filing Income tax returns through the internet is known as e-filing and is meant to ensure saving of time and paperwork for taxpayers. It is mandatory for companies and Firms requiring statutory audit u/s 44AB to submit the Income tax returns electronically for AY 2009-10. E-filing is possible with or without...

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Posted Under: DGFT |

TDS on salary arrear payment pursuant to recommendation of Sixth Central Pay Commission

Circular No.6/2009-Income Tax (31/08/2009)

Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees on account of implementation of Sixth Central Pay Commission's recommendations. Circular No. 6/2009, dated 31-8-2009...

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Notification No. 63/2009 – Income Tax Dated 31/8/2009

Notification No. 63/2009 - Income Tax (31/08/2009)

Notification No. 63/2009 - Income Tax It is hereby notified for general information that the organization Centre for Development of Advanced Computing, Pune has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income tax Act, 1961 (said Act), read with rules 5C and 5D of the In...

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Agricultural Debt Waiver and Debt Relief Scheme, 2008– Prudential Norms on Income Recognition, Asset Classification, Provisioning and Capital Adequacy

RBI/2009-10/137 DBOD.No.BP.BC. 35/21.04.048/2009-10 (31/08/2009)

The asset classification of such accounts shall be determined with reference to the original date of NPA, (as if the account had not been treated as performing in the interregnum based on the aforesaid undertaking). On such down-gradation of the accounts, additional provisions as per the extant prudential norms should also be made....

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RBI circular on Section 6 of the Banking Regulation Act, 1949 as Applicable to Co-operative Societies

RBI/2009-10/138 UBD.CO.BSD. (SCB). No.5/12.09.009/2009-10 (31/08/2009)

A reference is invited to Section 6 (1)(f) of the Banking Regulation Act (B.R. Act), 1949 (AACS), in terms of which banks may also engage in managing, selling and realizing any property which may come into its possession in satisfaction, or part satisfaction, of any of its claims....

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Ishikawajima-Harima is still good law despite retrospective amendment: Karnataka High Court

Jindal Thermal Power Vs. DCIT (Karnataka High Court)

The assessee entered into a contract with Raytheon – Ebasco, a foreign company, and two of its’ foreign subsidiaries, for commissioning of a power plant. The assessee made payments to Raytheon for rendering technical services, providing ‘start-up’ services and taking ‘overall responsibility’ for the Project. The two foreign su...

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Circular on Grant of refund under MVAT Act to specified category of dealers – Modifications/clarifications

Trade Circular No. 24 T of 2009 (29/08/2009)

Refund audit of previous period: To become eligible under this Trade Circular, at least one refund audit of the claimant dealer should have been completed in respect of at least one previous period. This condition will however be not applicable to the newly registered dealers for refund claim of first year....

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Ministry defends MAT based on gross assets on the ground of efficiency and equity

The Finance Ministry on Thursday defended the concept of gross assets tax proposed under the new direct taxes code, stating that it met both “efficiency” and “equity” considerations. The proposal to go in for a minimum alternative tax (MAT) based on gross assets may be “unconventional” for India, but ce...

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Posted Under: DGFT |

Check PSU Audit (CAG) empanelment status of your CA Firm for the year (2009-2010)

Empanelment status of C A Firms for conducting PSU Audit for the year 2009-10 can be viewed by visiting http://cagofindia.delhi.nic.in/caempanel/empstat-08.asp To check the empanelment status, please put name of applicant firm (at least three Characters ) or Online Acknowledgement Number or CAG’s Empanelment Number or Firm’s Stati...

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Posted Under: DGFT |

Implications of the draft code

The long awaited Direct Tax Code Bill 2009 (‘Code’) was finally unveiled by the Finance Minister on August 12, 2009. The Code seeks to bring all direct taxes under one code and pave way for a single unified tax reporting system. The Finance Minister has indicated that the Code has been drafted on a clean […]...

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Posted Under: DGFT |

State Govt. Undertakings do not need COD clearance

Gujarat Mineral Development Corp Vs. ITAT (Gujarat High Court)

Cross appeals filed by the assessee, a State Govt. undertaking, and the department were dismissed by the Tribunal on the ground that the parties had not obtained the approval of the Committee on Disputes (“COD”). The assessee as well as the department challenged the decision of the Tribunal. HELD, reversing the decision of the Tribuna...

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Futures & Options are speculative transactions u/s 43(5), S.43(5)(d) is not retrospective

Shree Capital Services Vs. ACIT (ITAT Kolkata)

A ‘derivative’ is a security representing the value of the underlying stocks and shares and must be given the same treatment as that given to the stocks and shares. Also, s. 43 (5) uses the term “commodity” in a wide sense and covers ‘derivatives’. ...

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Note regarding revised procedure for furnishing information in respect of remittances to be made to non-residents, WEF 1.7.2009

As per section 195, tax is required to be deducted at source from payment to non-residents, if the same is chargeable to income-tax under the Income-Tax Act, 1961 (the Act). In this connection, it may be stated that as per the Instruction issued by the Reserve Bank of India (RBI), except in the case of certain personal remittances which h...

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Posted Under: DGFT |

Notification No. 130/2009-Customs Duty (N.T.), Dated: 28.08.2009

Notification No.130/2009-Customs (N.T.) (28/08/2009)

In exercise of the powers conferred by sub-section (1) of section 4 and sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby appoints the Commissioner of Customs (Import), Jawaharlal Nehru Custom House, Nhava Sheva, Raigad, Maharashtra to act as a common adjudicating authority...

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Notification No. 129/2009-Customs Duty (N.T.), Dated: 28.08.2009

Notification No.129/2009-Customs (N.T.) (28/08/2009)

for the purpose of adjudicating the matters relating to Show Cause Notice pertaining to M/s. Sambhav Textiles Limited, Village Khawajke, Rahon Road, Ludhiana and others, issued vide, DRI F.No. 856(12)/LDH/2006/Pt-I dated 28th July, 2008, by the Additional Director General, Directorate of Revenue Intelligence, Delhi Zonal Unit, New Delhi....

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Notification No. 128/2009-Customs Duty (N.T.), Dated: 28.08.2009

Notification No. 128/2009-Customs (N.T.) (28/08/2009)

S.O. (E). – In exercise of the powers conferred by sub-section (1) of section 4 and sub-section (1) of section 5 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby appoints the Commissioner of Customs, Custom House, Near Balaji Temple, Kandla - 370210 to act as a common adjudicating authority to exerci...

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Notification No. 127/2009-Customs (N.T.), Dated: 28.08.2009

Notification No.127/2009-Customs (N.T.) (28/08/2009)

for the purpose of adjudicating the matters relating to Show Cause Notice pertaining to M/s. Kailash Overseas, 3, Shatabadi House, Shopping Complex, Rohit Kunj, Pitampura, Delhi - 34 and another, issued vide, F.No. DRI/23/54/2006/DZU, dated 27th August, 2008, by the Additional Director, Directorate of Revenue Intelligence, Delhi Zonal Uni...

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Notification No. 126/2009-Customs Duty (N.T.), Dated: 28.08.2009

Notification No. 126/2009-Customs (N.T.) (28/08/2009)

M/s Rico Steel, 135/141, T.P.Street, 6th Kumbharwada, Mumbai issued vide, F.No. DRI/AZU/INV-12/2008, dated the 27th May, 2009, by the Additional Director General, Directorate of Revenue Intelligence, Ahmedabad Zonal Unit, Ahmedabad....

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SEBI : exchange traded intrest rate futures

SEBI/DNPD/Cir-46/2009 (28/08/2009)

market adjustments based on the underlying closing prices of the costliest security from the deliverable basket shall be charged on both buying client and selling client....

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CBDT directed to re-opening of all cases under the search and seizure label and those claimed deduction u/s. 80IB, 80A

The Central Board of Direct Taxes ( CBDT) has directed re-opening of all cases under the search and seizure label, income-escaping assessments and deductions claimed from profits and gains on all eligible businesses....

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Posted Under: DGFT |

ITAT Mumbai Benches not functioning during the period 31.08.09 to 03.09.09

The following Bences will not function during the period 31.08.09 to 03.09.09 " A-1, E-1, K, L & SMC" The cases are adjourned to respective dates.please see separate Notice....

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Posted Under: DGFT |

Foreign Trade Policy 2009-14 – IT exemption U/s.10(A) & 10(B) extended till March 2011

Announcing the foreign trade policy 2009-14 here on Thursday, Mr Anand Sharma, Union Commerce Minister said, the Government wanted to provide a stable policy environment conducive for foreign trade and accordingly, it has been decided to continue with the DEPB (Duty Entitlement Pass Book Scheme) up to December 2010 and income-tax benefits...

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Posted Under: DGFT |

Public Notice No. 2/2009-14, Dated: 27.08.2009

Public Notice No. 2/2009-14 (27/08/2009)

In exercise of powers conferred under Para 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedures (Vol.1), 2009-14....

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Public Notice No. 1/2009-14, Dated: 27.08.2009

Public Notice No. 1/2009-14 (27/08/2009)

In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby notifies the Handbook of Procedures (Volume 1) as contained in Annexure to this Public Notice and the Appendices to the Handbook of Procedures (Volume 1). This shall come into force from 27th August, 2009....

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Circular No. 895/15/2009-Central Excise, Dated: 27.08.2009

Circular No. 895/15/2009-Central Excise (27/08/2009)

Attention is invited to Section 86 & 107 of the Finance Act, 2009 vide which amendment with effect from 1st July, 2003 has been carried out under Section 130 of the Customs Act, 1962 and Section 35G of the Central Excise Act, 1944 respectively to the effect that the High Court may admit an appeal after the expiry of the period of one hund...

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Policy Circular No. 03/2009-14, Dated: 27/08/2009

Policy Circular No. 03/2009-14 (27/08/2009)

Representations have been received from the Marine Sector that they are unable to fully utilize the benefits granted under the abovementioned schemes. Accordingly, in consultation with Department of Revenue (Ministry of Finance)....

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Exchange Rate notification for Import / Export of goods wef 1st September, 2009

Notification No. 125/2009-Customs (N. T.) (27/08/2009)

Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect from 1st September, 2009 be the rate mentioned against it in the corresponding entr...

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Import of sports weapons by ‘Renowned Shooters’

Policy Circular No. 02/2009-2014 (27/08/2009)

On for import of sports weapons by ‘Renowned Shooters’ shall be made to the concerned RA of DGFT. The list of RAs of DGFT along with their addresses and jurisdiction has been provided in Appendix 1 of HBPv1. A copy of this Appendix is available on DGFT website at www.dgft.gov.in....

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Amendment of Policy Circular No. 77 dated 31.03.09 related to “Guidelines for import of Precious Metal by the Nominated agencies"

Policy Circular No. 01/2009-2014 (27/08/2009)

Attention is invited to Notification No. 88 dated 26.2.2009 and the Policy Circular No. 77 dated 31.03.09 on the above subject and to inform that the provision at Sl. No. 3(c) of the said circular stands amended as follows....

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Rescinds Notification No. 25/2009-Customs Duty, Dated: 23.03.2009

Notification No. 88/2009-Customs (27/08/2009)

In exercise of the powers conferred by sub-section (2) of section 8B of the Customs Tariff Act, 1975 (51 of 1975), read with rules 10 and 14 of the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997, the Central Government hereby rescinds notification of the Government of India in the Ministry of Finance (Departm...

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Regarding imposition of provisional safeguard duty on imports of Dimethoate Technical into India

Notification No. 87/2009-Customs (27/08/2009)

Nothing contained in this notification shall apply to imports of Dimethoate Technical from countries notified as developing countries under clause (a) of sub-section (6) of section 8B of the said Act, other than People"s Republic of China....

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Notification No. 3/2009-2014, Dated: 27.08.2009

Notification No. 3/2009-2014 (27/08/2009)

The term formulation” used here may include products, which may contain portions / extracts of plants on the prohibited list. Further the term “formulation” shall also include value added formulations as well as herbal ayurvedic, and exports subject to the provisions of CITES or Wild Life (Protection) Act, 1972 in case where the for...

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Notification No. 2/2009-2014, Dated: 27.08.2009

Notification No. 2/2009-2014 (27/08/2009)

Automobile industries, having R&D registration, are allowed to make free import of reference fuels (Petrol and Diesel) which are not manufactured in India, upto a maximum of 5 KL per annum, subject to the condition that the said imported reference fuels shall be used for R&D and emission testing purposes only....

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Notification No. 1/2009-2014, Dated: 27.08.2009

Notification No. 1/2009-2014 (27/08/2009)

In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act,1992 (No.22 of 1992) read with paragraph 1.2 of the Foreign Trade Policy, 2009-2014, the Central Government hereby notifies the Foreign Trade Policy, 2009-2014 as contained in Annexure to this notification. The Policy shall come into force ...

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Educational institutes cannot be denied the benefit of income tax exemption

Educational institutes having multiple objectives, including imparting education, cannot be denied the benefit of income tax exemption, the Delhi High Court has ruled. Allowing a petition of Jaypee Institute of Information Technology Society (JIITS), a division Bench headed by Justice A K Sikri asked the Director General of Income Tax to ...

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Posted Under: DGFT |

Major Highlights of Foreign Trade Policy 2009-14

(27/08/2009)

In cases, where the earlier authorization has been cancelled and a new authorization has been issued in lieu of the earlier authorization, application fee paid already for the cancelled authorisation will now be adjusted against the application fee for the new authorisation subject to payment of minimum fee of Rs. 200....

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Posted Under: DGFT |

CBDT instructed to scrutnise all companies which have taken relief under AS-11

The Central Board of Direct Taxes (CBDT) has advised its field formations to scrutinise all cases in which companies have amortised foreign exchange losses under the one-time discretion allowed by the government through an amendment to Accounting Standard 11 (AS-11)....

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Posted Under: DGFT |

Income tax raid at stock broker in Jaipur net Rs. 10 crore in cash

Rajasthans income tax department recovered over Rs 10 crore from eight bank lockers of a stock broker in Jaipur on Tuesday. Damodar Modi, who also deals in real estate, is a member of the VHP and, according to sources, was allegedly a money laundering agent for some senior BJP leaders....

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Posted Under: DGFT |

CBI filed charge sheet against Ex-Central Excise Commissioner

Former Central Excise Commissioner , Pralhad Kumar alias P K Ajwani arrested by CBI in 2004 after wads of cash were seized from his south Mumbai house was chargesheeted on corruption charges by CBI last week....

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Posted Under: DGFT |

DTC propose to tax LTA, Medical Reimbursement, payment, commuted pension and retirement gratuities and benefit and perquisites

New Direct Tax code 2009 has proposed to tax many benefit, receipts, allowances and perquisites which are either tax free or exemption is available in respect of that. We are discussing here some of these provisions....

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Posted Under: DGFT |

Service tax applicable only to legal firms and not to independent practicing lawyers : Bar Council of India

The Bar Council of India (BCI) recently sent a clarification to all lawyer associations in Pune that the service tax introduced for lawyers in this year’s budget is applicable only to legal firms and not to independent practicing lawyers.  There was confusion among lawyers regarding the introduction of service tax and the Pune Bar ...

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Posted Under: DGFT |

ROC work may be outsourced to professionals such as chartered accountants and company secretaries

To ensure higher accountability and transparency in auditing company books, the government now plans to outsource audit work to professionals such as chartered accountants and company secretaries. At present, it is undertaken by the Registrar of Companies’ offices across various cities....

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Posted Under: DGFT |

SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009

Notification No. LAD-NRO/GN/2009-10/15/174471 (26/08/2009)

All other words and expressions used but not defined in these regulations, but defined in the Act or the Companies Act, 1956, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996 and/or the rules and regulations made thereunder shall have the same meaning as respectively assigned to them in such Acts or rules or re...

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Place of performance of service is decisive for determining event of taxability as well as incidence of tax

Microsoft Corporation (I) (P) Ltd. Vs Commissioner of Service Tax (CESTAT New Delhi)

The appellant appears to have performed service in India for ultimate consumption thereof in India by its clients/customers in India. The service is destined to exhaust in India and extinct soon after performance thereof. Post performance liability only remains to be discharged by foreign principal through the appellant in India. Thus the...

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Notification on Compulsory E- Filing of Form-101 related to MVAT registration

Notification No. VAT/AMD-1009/ IB/Adm-6 (26/08/2009)

In exercise of the powers conferred by sub-rule (1) of Rule 17A of the Maharashtra Value Added Tax Rules, 2005, the Commissioner of Sales Tax, Maharashtra State hereby provides that on or after 1st October 2009, the dealers, who are liable to...

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MCA proposed to prosecute audit firms also for wrong doing of its partner

The ministry of company affairs (MCA) intends to insert a clause in the Companies Act that will make audit firms also liable to prosecution as against the existing provisions that limits penal action only to chartered accountants....

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Posted Under: DGFT |

ICAI finally acted against PWC partner S. Gopalakrishnan ; withdrawn from its non-standing committees

Seven months after the arrest of two Price Waterhouse auditors in the scam at Satyam Computer Services Ltd, the accounting regulator has finally acted against one of them. The executive committe of the Institute of Chartered Accountants of India, or Icai, has decided to withdraw S. Gopalakrishnan from 11 of its committees....

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Posted Under: DGFT |

CVC launches prosecution against officers in CBDT, CBEC, DDA etc and advised penalty on several company officers

In the month of July the Central Vigilance Commission disposed of 522 cases referred to it for advice and launched prosecution against 22 officers. Of these, seven were from CBDT & MHA and two each from M/o Environment & Forest and MCD....

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Posted Under: DGFT |

Guidance note on Clause 17A of 3CD report – Amount inadmissible u/s. 23 of the Micro, Small and Medium Enterprises Development Act, 2006

This is a new clause inserted by the Central Board of Direct Taxes through its Notification No. 36/2009 dated 13-4-2009, in the Form No.3CD in Appendix II of the Income-tax Rules, 1962 . ...

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Posted Under: DGFT |

DTC will not provide deduction for donation to relegious trust and may tax NGOs

Trusts and institutions carrying out charitable activities will face more stringent taxation regime when the new direct taxes code comes into play from April 1, 2011.The new Code will particularly hit non-governmental organisations (NGOs). All NGOs and charitable trusts registered with the Tax Department may be required to fork out 15 per...

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Posted Under: DGFT |

ICAI considering proposal to prohibit use of identical firm name

Accounting regulator Institute of Chartered Accountants of India (ICAI) is contemplating prohibiting chartered accountant firms from using identical names, a decision which may have implications for accountancy firms like PwC and Deloitte....

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Posted Under: DGFT |

CIT Vs. Winsome Textile Industries Limited (Punjab & Haryana High Court)

Commissioner Of Income-Tax. Vs. Winsome Textile Industries Limited. (Punjab & Haryana High Court)

Whether, in the facts and circumstances of the case and in law, the hon'ble Income-tax Appellate Tribunal was justified in holding that the order of the jurisdictional High Court in the case of CIT Vs. Abhishek Industries Ltd. reported in [2006] 286 ITR 1 (P&H); 156 Taxman 257 (P&H) are not applicable in this case and the disallowance mad...

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DGFT – High Court allows benefit of 0% duty of customs under EPCG Scheme

Ruia Cotex Ltd., & Anr. Vs Director General of Foreign Trade & Ors. (Calcutta High Court)122/99 (25/08/2009)

EPCG-Before the aforesaid company availed of the benefit of 10% duty of customs scheme in April 1999, the government had introduced a 0% duty of customs scheme with effect from April 1, 1999. The benefit of the above scheme was made available for the period from April 1, 1999 to March 31, 2000. But no notification was issued to that effec...

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ICAI announced Schedule for ISA ET to be held in the month of November 2008

Notification for Eligibility Test (ET) for Post Qualification Course on Information Systems Audit (ISA) (08/11/2008)

Notification for Eligibility Test (ET) for Post Qualification Course on Information Systems Audit (ISA) on Saturday the November 08, 2008. Last Date for Online Form Submission is October 29, 2008 . 1. The next Eligibility Test for ISA PQC is scheduled to be held on Saturday the November 08, 2008 from 09.00 a.m. to 1.00 […]...

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New amended form No. 704 and issues in it under the MVAT

New MVAT Audit Form 704 Additional responsibilities as an Auditor Additional features to be reported in New Form 704 Issues and Difficulties Welcome Changes and Redundant Sections in Old Form 704...

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Posted Under: DGFT |

Summary of Amendments made by Maharashtra Value Added Tax (2nd Amendment) Rules 2009, dt 18th June 2009 w.e.f 01st July 2009

On 18th June 2009 the Government of Maharashtra has passed the Maharashtra Value Added Tax (2nd Amendment) Rules 2009 These amendments are brought into effect from 1st July 2009 unless otherwise specified. Following are the amendments which are made in the MVAT Rules: – ...

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Posted Under: DGFT |

Amendments made by Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2009 (Mah Act No. XVII of 2009) in MVAT ACT

On 29th June 2009 the Government of Maharashtra passed the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2009 (Mah Act No. XVII of 2009) and amended the Maharashtra Value Added Tax. These amendments are brought into effect from 1st July 2009 unless otherwise specified. Following are the amendments which are made in the MVAT [...

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Posted Under: DGFT |

Assessment, Reassessment, Best Judgement Assessment and related provisions

The process of assessment is the most significant part of the Income Tax Act. The Act requires an assessee to comply with certain requirements for computing income in accordance with the various provisions, and pay tax on his income so computed. An assessment is the process whereby the department verifies whether the person has complied [...

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Posted Under: DGFT |

Swiss bank may not share its Indian client details with India

Swiss banks may have handed over client details to the US, but they have said India is not welcome there on a name-fishing expedition. “Swiss law and even the Organisation for Economic Co-operation and Development’s (OECD) model tax convention do not permit fishing expeditions, in other words, the indiscriminate trawling through bank ...

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Judges divided on the issue of voluntary disclosure of their Assets

The split within the judiciary over the issue of disclosure of judges’ assets widened on Sunday with the Chief Justice of India K G Balakrishnan dubbing Karnataka High Court judge D V Shylendra Kumar move to chart his own course on the issue as being driven by “publicity”. Refuting charges that he was against judges […]...

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Removal of Domestic Tariff Area (DTA) will help in countering recession; New Foreign Trade Policy on August 27, 2009

Under the Export Oriented Units (EOU) scheme, there are some restrictions on how the entitlement of sale in the Domestic Tariff Area (DTA) can be utilised. Firstly, the goods sold in DTA must be similar to the goods exported or to be exported. Secondly, for units manufacturing a number of products, the sale of any […]...

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Chartered accountants not agree with CVC’s charge

The allegation on the audit profession tendering erroneous advice to banks resulting in huge losses by a constitutional authority such as the Central Vigilance Commissioner (CVC) has stirred up a hornets’ nest among the auditors....

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If Assessee fails to offer an explanation or offers a false/unsatisfactory explanation then penalty will be leviable for concealment of income

Tushti Securities Pvt Ltd. Vs ACIT (ITAT Ahmedabad)

It was the duty of the assessee to show with exact figures the basis of calculating the amount of brokerage to be returned to the existing clients. In fact the assessee itself stated in its letter dated 17-3-2003 that it was having a somewhat raw system of deciding and accounting such claims and that these claims were decided on ad hoc ba...

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If part of company business is deal in shares then all types of transactions, whether delivery based or non-delivery based, will be treated as speculative transactions

Metropolitan Traders Pvt. ltd. Vs ITO (ITAT Mumbai)

Admittedly, the assessee company was dealing in Cement and also engaged in the business of dealing in shares. There is no dispute over the fact that the assessee had taken delivery of shares before selling them. The assessee company had claimed set off of unabsorbed speculation loss relating to assessment year 1995-96 and 1997-98 carried ...

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Sale of equipment to an Indian party by a foreign company cannot be construed as resulting into any business connection in India

Xelo Pty Ltd. Vs DDIT (Int'l Taxation) [ITAT Mumbai]

The offshore supply of equipment from abroad, in common parlance, means that the supply of goods is made outside India. Ordinarily in such a case, the Indian party opens a letter of credit and nominates a bank to issue irrevocable LOC favouring the foreign party....

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A transaction cannot be held bogus for the mere fact that Assets sold by Assessee if not found with buyer

CIT Vs Uttamchand Jain (Bombay High Court)

As the VDIS 1997 certificate issued by the department is valid and subsisting, it is not open to the revenue to contend that there was no jewellery which could be sold by the assessee on 20/1/1999.It is not the case of the revenue that the assessee continues to be in possession of the said diamond jewellery even after the alleged sale ef...

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Taxability of Income to American company by allowing use of its database located abroad to customers in India

FactSet Research Systems Inc., In re (Authority for Advance Rulings)

The applicant maintains a `database' which is located outside India and which contains the financial and economic information including fundamental data of a large number of companies world-wise. The customers of the applicant are mostly financial intermediaries and investment banks which have the need for such data. The databases contain...

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Loss on purchase and sale of units of mutual fund cannot be treated as speculation loss

Multiplex Trading & Industrial Co. Ltd. Vs ITO (ITAT Delhi)

The assessee is engaged in rendering Business & Management Consultancy and Marketing Services to its various clients against payment of professional fees. The assessee invested Rs 2,00,00,000/ - in 14,38,848.929 units of Sun F &C fund. The dividend of Rs.43,16,546. 70 received on 22.02.2001 was also reinvested in 4,09,151.252 units of the...

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Warrant of authorization decides whether a person has been subjected to search or not

Asha Maritime (India) Pvt. Ltd. Vs DCIT (ITAT Mumbai)

. Section 132(1) empowers the Director General or Director or the Chief Commissioner or Commissioner or any such Joint Director or Joint Commissioner, as may be empowered in this behalf by the Board to authorize Joint Director, Joint Commissioner or other lower authorities to conduct the search if the former authority has reason to believ...

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Breach Candy Hospital Trust Vs. CCIT (2010) 192 TAXMAN 98 (Bom)

Breach Candy Hospital Trust Vs. CCIT (Bombay High Court)

The Division Bench in the facts of the case had held that there was absence of any material to show that generally there was a profit in the hospital activities of the petitioner therein. In this context, it was held that it cannot be said that the petitioner did not exist solely for philanthropic purpose but, for the purpose of profit an...

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RBI issued circular on providing Collateral Free loans to Micro and Small Enterprises(MSEs)

RBI/2009-10/129, RPCD.SME&NFS.BC.No.16/06.02.31(P)/2009-10 (24/08/2009)

On September 21, 2007 banks were advised, vide our circular RPCD.PLNFS.No 3068 /06.02.31/2007-08, that they may extend collateral-free loans upto Rs. 5 lakh, to all newloans sanctioned to the units of MSE sector (both manufacturing and services enterprises) as defined under MSMED Act, 2006.On September 21, 2007 banks were advised, vide o...

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Facility of advance ruling on service tax and excise matters extended to PSU and resident Indian companies

Public sector companies can now seek advance ruling on Customs, Central Excise and Service Tax matters. Also, Indian companies (those considered as resident under the Income-Tax law) have now been allowed to seek advance ruling on project imports. The Center’s move to extend the advance ruling facility to public sector companies comes n...

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CVC charged chartered accounting fraternity with giving erroneous advice to banks resulting in huge losses

The Central Vigilance Commission (CVC) has charged the chartered accounting fraternity with giving erroneous advice to banks resulting in huge losses for the lenders.  It has pointed out that in several cases, the advice given by CAs to banks and financial institutions was deficient, especially regarding the status of loans, creditors, s...

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Direct Tax code may bring ULIP & Life Insurance Plan under tax net

Any sum received under a life insurance policy including any bonus thereon will be exempt, only if the premium does not exceed 5% of the capital sum assured and such sum is received only upon completion of the original period of contract or upon the death of the insured....

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New direct tax code and taxability of Provident Fund

It’s Traditionally  been viewed as a retirement saving tool and one that allows you to avail of tax deductions. In fact, you will find that most conversations about provident funds only take place during the income-tax filing season, or when salaried individuals are retiring or leaving one organisation for another. In fact, fairly ...

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Amendment to SQC 1 – Retention Period for Engagement Documentation (Working Papers)

Amended paragraph 83 of the SQC 1 (19/08/2009)

Paragraph 83 of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements, states as follows: “83.     The needs of the firm for retention ………………. ……………… In the specific case of...

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Enhancement of CPT Registration fees from Rs. 3500/- to Rs.6,000

The existing fee of Rs.3,500 for registration for the Common Proficiency Test(CPT) has been increased to Rs.6,000. The increased fee is payable by the students registering for the CPT on or afterSeptember 1, 2009....

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View You Tax Credit (Advance Tax Paid and TDS deducted) online

TAKING the taxpayers’ services to a higher level, the Income Tax Department has begun to provide credit statements which are available for viewing by taxpayers. A taxpayer can register for such a facility and can get information about the credits online for different AYs. To see this, a onetime registration is required. Detailed pro...

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Increase in exemption of collateral security in respect of individual and group loans under SGSY Scheme

RBI/2009-10/ 127-RPCD.SP.BC.No 12/09.01.01/2009-10 (24/08/2009)

The scheme aims at establishing a large number of micro enterprises in the rural areas. The list of Below Poverty Line (BPL) households identified through BPL census duly approved by Gram Sabha will form the basis for identification of families for assistance under SGSY....

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Filing Fee for appeal to ITAT in ‘assessed loss’ cases is only Rs. 500

Gilbs Computer Vs. ITAT (Bombay High Court)

The assessee, having been assessed to a loss of Rs. 9 crores, filed an appeal before the Tribunal. S. 253 (6) provides that if the assessed ‘total income’ is “less” than Rs. 1 lakh, a fee of Rs. 500 for filing the appeal is payable while if the income is “more”, a higher fee is payable subject to a maximum of Rs. 10,000. The T...

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Poor drafting of Cenvat credit Rules leading to litigations and conflicting decisions by various benches: SC

The Supreme Court has said the CENVAT Credit Rules were not properly drafted causing huge rise in litigations and conflicting decisions by various benches of Custom Excise & Service Tax Appellate Tribunal (CESTAT). The apex court said that repeated amendments in the CENVAT Credit Rules has given a further fillip in rising number of litiga...

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RBI suggested exclusion of ADR, GDR, FCCB and convertible warrants while calculating FDI for banks

(22/08/2009)

The downstream investments of these banks will also be counted as FDI, barring it from investing in sectors that have caps, such as banking itself. Foreign capital forms a substantial portion in the capital structure of both ICICI Bank and HDFC bank....

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Use of green-technology to be mandatory in Special Economic Zones (SEZs)

Use of green-technology will become mandatory in Special Economic Zones (SEZs)—the tax and duty free industrial enclaves—with the commerce ministry drawing up guidelines for use of equipment using renewable energy sources like solar power in the zones. Senior officials of the commerce ministry, ministry of new and renewable energ...

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No HRA for government employees staying with spouse in government allotted flat

A government employee is not entitled to get House Rent Allowance(HRA) if he or she is residing with the spouse who has been alloted a government accommodation, the Delhi High Court said on Tuesday. The Court’s decision came on a petition filed by a government employee challenging the Centre’s order directing her to refund...

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