"October, 2009" Archive

Reserve Bank of India will soon issue guidelines on provisioning rules

The Reserve Bank of India will soon issue guidelines on meeting provisioning rules and some banks have sought time to meet them, its deputy governor Shyamala Gopinath said on Friday. "Banks have made certain submissions to us in the policy, in terms of little more time. We are going to come up with guidelines soon," Gopinath said....

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Goods and Services Tax may not be applicable from April 1, 2010

The Finance Minister, Mr Pranab Mukherjee, on Friday hinted at some slippage to the scheduled Goods and Services Tax (GST) system rollout by April 1, 2010. Introduction of the GST, billed as a flagship tax reform measure of the UPA Government, is considered crucial for attracting increased doses of domestic and foreign investments....

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Posted Under: Fema / RBI |

RBI circular on Inoperative savings and current account

RBI/2009-10/ 202 DBOD.Leg. No.BC. 55 /09.07.005 /2009-10 (30/10/2009)

There may be instances where the customer has given a mandate for crediting the interest on Fixed Deposit account to the Savings Bank account and there are no other operations in the Savings Bank account. Some doubts have arisen whether such an account is to be treated as inoperative account after two years....

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Relaxation of the due date for the uploading of e-returns for the period ending September 2009

Trade Circular No. 29 T of 2009 (30/10/2009)

After the introduction of the e returns, the dealers were required to make the payment of tax within the prescribed date, but were permitted to upload the e returns within 10 days from the due date prescribed in the said Rule 17 (Please refer Trade Circular No 16T of 2008) Thus the dealers, who paid the tax within the due date and upload ...

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Notification No. 165/2009-Customs Duty (N.T.), Dated: 30.10.2009

Notification No. 165/2009-Customs (N.T.) (30/10/2009)

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 Joint Commissioner of Customs and Central Excise, Hyderabad-II to act as a common adjudicating authority to exercise the powers and discharg...

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Notification No. 164/2009-Customs Duty (N.T.), Dated: 30.10.2009

Notification No. 164/2009-Customs (N.T.) (30/10/2009)

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, Custom House, Navrangpura, Ahmedabad to act as a common adjudicating authority to exercise the powers and discharg...

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Notification No. 163/2009-Customs Duty (N.T.), Dated: 30.10.2009

Notification No. 163/2009-Customs (N.T.) (30/10/2009)

for the purpose of adjudicating the matters relating to Show Cause Notices pertaining to M/s. Vuppalamritha Magnetic Components Limited, 7013, Emerald House, S.D.Road, Secundrabad - 500 003 and others issued vide, F.No. VIII/26/34 & 35/2008-HRU, dated the 30th July, 2009, by the Additional Director General, Directorate of Revenue Intellig...

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Notification No. 162/2009-Customs Duty (N.T.), Dated: 30.10.2009

Notification No. 162/2009-Customs (N.T.) (30/10/2009)

(i) the Commissioner of Customs (Export Promotion), Ballard Estate, New Custom House, Mumbai; (ii) the Commissioner of Customs (Export), 60, Rajaji Salai, Custom House, Chennai; and (iii) the Commissioner of Customs, Central Revenue Building, The Mall, Amritsar,...

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Notification No. 161/2009-Customs Duty (N.T.), Dated: 30.10.2009

Notification No. 161/2009-Customs (N.T.) (30/10/2009)

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, Visakhapatnam to act as a common adjudicating authority to exercise the powers and discharge the duties conferred ...

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Amends Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,1996

Notification No. 160/2009-Customs (N.T.) (30/10/2009)

The principal rules were published vide Notification No.36/96-Customs (N.T.) dated 23rd July, 1996, [G.S.R. 305 (E), dated the 23rd July, 1996] and were last amended vide Notification No.12/2002-Customs (N.T.) dated the 1st March, 2002, G.S.R. (E), dated the 1st March, 2002....

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Special court in Hyderabad for trial of the Satyam scam

A special court will be established in Hyderabad for the trial of the Satyam scam. The decision has been taken as per the recommendations of the AP High Court and the Deputy Inspector General of the Central Bureau of Investigation at Hyderabad. Ever since the chargesheet was filed against Satyam founder-chairman B Ramalinga Raju and other...

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Posted Under: Fema / RBI |

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

Notification No. 159/2009-Customs (N. T.) (30/10/2009)

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. 156/2009-Customs (N.T.), dated, the 15th October, 2009 (S. O. 2622 (E) dated 15th October, 2009...

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Income tax department issued notice to vodafone

The Income Tax department has issued a detailed notice today (comprising 531 pages along with annexure running into 1901 pages) under section 201(1) and 201(1A) of the IT Act 1961 to Vodafone International Holdings BV(VIH BV) requiring it to show cause as to why it should not be held that the Department has competent jurisdiction to proce...

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Posted Under: Fema / RBI |

Constitution of an Inter-Ministerial Committee to redress/resolve problems/issues of exporters-Constitution reg

Policy Circular No. 14/2009-2014 (30/10/2009)

In particular moification of Circular No.7, dated 16.09.09 regarding the constitution of above mentioned Committee, it has been decided that a representative from the Department of Financial Services will also be a member of the said Committee....

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Regarding anti dumping duty on Nylon Tyre Cord Fabric, originating in, or exported from, Belarus

Notification No. 121/2009-Customs (30/10/2009)

whereas, on the basis of the aforesaid findings of the designated authority, the Central Government had imposed provisional anti-dumping duty on the subject goods vide notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 39/2009-Customs, dated 29th April, 2009, published in the Gazette of India E...

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Understanding the Budget process

References to budget can be found in Kautilya’s Arthashastra. It states that the Chancellor should first estimate revenue from each place and sphere of activity under different heads of accounts and then arrive at a grand total. The actual revenue is to be estimated by adding receipts into the treasury for current year and delayed payme...

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Posted Under: Fema / RBI |

Valuation of Business

The etymology of business refers to the state of being busy, in the context of the individual as well as the community or society. In other words, to be busy is to be doing commercially viable and profitable work.In economics, business is the social science of managing people to organize and maintain collective productivity toward accompl...

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Posted Under: Fema / RBI |

World’s biggest accounting scandals (Other then Satyam)

WorldCom was one of the big success stories of the 1990s. It was a symbol aggressive capitalism. Founded by Bernie Ebbers, one of the most aggressive acquirer during the US mergers and acquisitions boom of the 1990s. WorldCom's asset value had soared to $180bn before the US capital market started witnessing a downtrend....

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Posted Under: Fema / RBI |

ICAI President's message to CA community for November 2009

I am sure most of us are still sharing the Diwali happiness and good wishes with friends and family. The New Year Vikram Samvat 2066 has dawned and has already ushered in a positive atmosphere. The markets are doing well; the economy is making strides and should grow by 6.5 per cent this fiscal. The forecast growth for next year at betwee...

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Posted Under: Fema / RBI |

Center will re-look notification restricting excise duty exemption of industrial units in North-East region

There’s some good news for the industry of North-East as the union commerce ministry has agreed to have a relook into its March 2008 notification which had considerably restricted excise duty exemption of industrial units in the region. It is learnt that union commerce minister Kamal Nath had recently “assured” the Assam chief minis...

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Posted Under: Fema / RBI |

Companies Bill, 2009 will have provisions for Class Action suits which will allow investors to seek compensations from companies

The Corporate Affairs Minister, Mr Salman Khurshid, on Wednesday said that the Companies Bill, 2009 will also have provisions for Class Action suits that will allow investors to seek compensations from companies. At a workshop to discuss the Bill, Mr Khurshid said, “Compensation cases in India are a long-drawn-out process, with few succ...

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Posted Under: Fema / RBI |

Court granted bail to arrested income tax commissioner from Nagpur

A special court on Wednesday granted bail to arrested income tax c o m m i s - sioner from N a g p u r, Ajoy Singh, his wife, Mrinalika and two other relatives arrested in Hyderabad. While Singh was released on a bail amount of Rs 5 lakh, the others were released on Rs 1 lakh each....

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Posted Under: Fema / RBI |

Johnny and Service Tax Refund Part – II

In continuation of previous article, elaborating the difficulties in getting the refund claim under GTA service, we in this article are unveiling the problems existing in the Service tax refund mechanism under Port Services (Section 65[105][zn]). This complete scenario is being elaborated with the means of humorous poems and conversation ...

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Posted Under: Fema / RBI |

Johnny and Service Tax Refund Part – I

With the help of this article an effort has been made to picturise the present situation existing in the refund structure mechanism under Service tax. This state of affair is elaborated with the means of poems and conversation between Johnny (an assessee) and his father....

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Posted Under: Fema / RBI |

Circular No. 904/24/2009-Central Excise, Dated: 28.10.2009

Circular No. 904/24/2009-Central Excise (28/10/2009)

The matter has been examined. Excisability of bagasse and similar waste products arising during the course of manufacture has been under dispute for a long period of time. There are number of Tribunal’s judgments that being waste, these are not excisable products. Departmental appeal in respect of excisability of bagasse in one such cas...

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

Notification No. 158/2009-Customs (N.T.) (28/10/2009)

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. 146/2009-CUSTOMS (N.T.), dated the 25 th September, 2009 vide number S.O. 2460 (E), dated the 25 th September 2009, excep...

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Income Tax department Requests MCOCA court not to defreeze accounts of Hitesh Bhagat until they can recover dues

Fed up of being made to run around for 15 years, the Income Tax (I-T ) department has been quick to seize an opportunity to extract its dues totalling Rs 114.17 crore from the Bhagats. The department recently filed a plea before the special MCOCA court, requesting it not to defreeze the bank accounts of Hitesh Bhagat who along with his mo...

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Posted Under: Fema / RBI |

Notification No. 80/2009 – Income Tax Dated 27/10/2009

Notification No. 80/2009 - Income Tax (27/10/2009)

Notification No. 80/2009 - Income Tax In exercise of the powers conferred by clause (iii) of sub-section (4) of section 80-IA of the Income Tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India, Ministry of Finance, Department of Revenue, number S.O. 3458, d...

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Operationalisation of provisions of Para 5.11.2 of Hand Book of Procedure Vol.-1 (2009-14)

Policy Circular N0. 13 (RE-2009) 2009-14 (27/10/2009)

File No.1/36/218/18/AM-10/Policy-5/EPCG-I Government of India Ministry of Commerce and Industry Directorate General of Foreign Trade Udyog Bhawan, New Delhi (EPCG-I Section)  Policy Circular N0. 13 (RE-2009) 2009-14 Dated 27-10-2009 Subject:- Operationalisation of provisions of Para 5.11.2 of Hand Book of Procedure Vol.-1 (2009-14) Refer...

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Income Tax (I-T) Department issued fresh notice to realty major DLF

The Income Tax (I-T) Department has issued a fresh notice to realty major DLF even as it's appeal against an additional tax liability imposed on it by the I-T Department is being heard. The demand for additional tax payment first came after the Institute of Chartered Accountants of India (ICAI), which sets auditing standards, revised its ...

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Posted Under: Fema / RBI |

Final ca old course extended by 2 more attempts

Students are hereby informed that the Council of the Institute of Chartered Accountants of India, having due regard to the concerns of students belonging to Final (Old) stream, has decided to extend the Final (Old) Examination by two more attempts namely May, 2010 and November, 2010....

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Posted Under: Fema / RBI |

Shipping income derived from international operations is outside the purview of the Indo-Swiss Tax Treaty

In re Gearbulk AG,(Authority for Advance Rulings)

Whether during the previous years relevant to assessment years 2008-09 and 2009-10, the applicant, in the stated facts and circumstances, had a Permanent Establishment in India under Article 5 of India-Switzerland Double Taxation Avoidance Agreement in relation to activity of charter of vessels for transporting cargoes from Indian ports t...

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Wealth-tax not Chargeable on Urban Land excluded from the ambit and expression of Urban Land

Amrit Lal Jindal & Sons (HUF) Vs ITO (Punjab & Haryana High Court)

The land which falls within the exception of `urban land' would have to be excluded from the ambit and scope of expression `urban land' and, such land would not be covered by the expression `assets' as defined in section 2(ea) of the Wealth-tax Act, 1957; consequently, such land would not be treated as net wealth of an assessee for the pu...

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Notification No. 17/2009-2014, Date: 27.10.2009

Notification No. 17/2009-2014 (27/10/2009)

All items, materials equipment, goods and technology including as set out in lists in documents S/2006/814, S/2006/815 (including S/2009/205), S/2009/364 and S/2006/853 (United Nations Security Council Documents) INFCIRC/254/Rev.9/Part1a and INFCIRC/254/Rev.7/Part 2a (IAEA documents) which could contribute to DPRK’s nuclear-related, bal...

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Addition can not be made merely on the basis of assumption

Prakash Motwani Vs ITO (ITAT Agra)

No doubt that the possession of three currency notes with the assessee has raised a presumption that the amount stated on those currency notes was paid by the assessee to the said Shri Shankar Lai. However, the same was a rebuttable presumption. The assessee has explained that these payments were made by the assessee subsequent to the da...

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Transfer of share completes when the share certificate along with duly executed transfer deed is handed over to the transferee

Hami Aspi Balsara Vs ACIT (ITAT Mumbai)

Admittedly, it is a case of sale of shares. In this regard, share purchase agreement was entered into on 27.1.2005 and final delivery of shares took place on 1/15.4.2005. In the share purchase agreement, detailed provisions were made restricting the vendors from exercising various rights in relation to shares. Revenues' main contention is...

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Genuineness of a gift transaction depend on immediate source of gift

Shri Avnish Kumar Singh Vs ITO (ITAT Agra)

Parties are heard arid their rival submissions considered. The following facts are not in dispute: a) the identity of the donor is not in doubt; b) gift is by a declaration deed; c) donor has given an affidavit affirming the making of the gift; d) there is a confirmation through post of gift per Demand Draft; e) affirmation of the assesse...

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Computation of undisclosed income in case no incriminating document was found during search

ACIT Vs Surindra Engg. Co. P. Ltd. (ITAT Mumbai)

Searches conducted by the Income Department are important means for unearthing black money. However, under the scheme before insertion of special procedure for assessment of search cases, valuable time is lost in trying to relate the undisclosed incomes to the different years. Tax evaders generally manage to divert the focus to procedural...

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SEBI : Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement

SEBI/MRD/DoP/SE/Cir-15/2009 (27/10/2009)

.It is observed from the information provided by the depositories that the companies listed in Annexure ‘A’ have established connectivity with both the depositories during the month of July 2009....

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30 per cent of the 80,000 public limited companies not filing their annual returns

The Corporate Affairs Ministry said on Monday that around 30 per cent of the 80,000 public limited companies are not filing their annual returns.The Ministry has asked the Registrar of Companies (RoC) not to strike off the names of companies by classifying them as defunct, even if they have not filed their annual returns for three years. ...

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Posted Under: Fema / RBI |

Information Technology (Amendment) Act, 2008 Comes Into Force

With proliferation of information technology enabled services such as e-governance, e-commerce and e-transactions; data security, data privacy and implementation of security practices and procedures relating to these applications of electronic communications have assumed greater importance and they required harmonization with the provisio...

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Posted Under: Fema / RBI |

Public Notice No. 15/2009-14, Dated: 27.10.2009

Public Notice No. 15/2009-14 (27/10/2009)

Wherever, the exports are prior to 27.8.09, enhancement of CIF/ FOB value shall be subject to a minimum Value addition of 15% or the V.A. declared in the original Advance Authorization application, whichever is lower....

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RBI hikes statutory liquidity ratio (SLR) by 1%, leaves key rates unchanged

A hawkish Reserve Bank of India (RBI), while staying away from hiking key rates like repo or reverse repo, hiked the statutory liquidity ratio (SLR) to 25% from 24%. The cash reserve ratio (CRR), the minimum amount banks need to park with the RBI, was also left unchanged....

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Posted Under: Fema / RBI | ,

Auto Empanelment with ROC of those who already applied for the Multi-purpose panel for the year 2009-10

The Institute has received an Office Memorandum (OM) from the Ministry of Corporate Affairs. As per the OM, the Registrar of Companies will prepare a panel of professionals for Technical Scrutiny of Balance Sheets filled by the Companies for the State concerned....

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Posted Under: Fema / RBI |

Notification No. 81/2009 – Income Tax Dated 27/10/2009

Notification No. 81/2009 - Income Tax (27/10/2009)

Notification No. 81/2009 - Income Tax Direct Supply Contract - 24 Hawk Mk 132 AJT ac, Trg Aids, Fixed Spares, Flyaway packs, Supplementary Sparcs, Ferry of aircraft etc. Interim Flying Training of IAF pilots, training of a crew / maintenance crew and ferry of aircraft from UK to India, The total value of contract is £ 479,718,664. 00 (A...

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Procedure to know CIBIL credit information report

Today, everyone is aware of the word CIBIL. The Credit Information Bureau India Ltd. keeps the track on the creditworthiness of an individual. They have information about a person’s creditability. Cibil rates a person according to his/her payment track; this is commonly known as Cibil Score....

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Posted Under: Fema / RBI |

IT dept sending email on Quality of Data and Matching of TDS / TCS Claims in your E-Return

To enable you to ascertain the extent of matching of your TDS / TCS claims in the Income Tax Return filed by you with the TDS / TCS reported by the tax Deductors /Collectors. In case the matching is 100%, you may be assured of accurate credit and quicker processing of the I-T Return....

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Posted Under: Fema / RBI |

Notification No. 79/2009 – Income Tax Dated 26/10/2009

Notification No. 79/2009 - Income Tax (26/10/2009)

Notification No. 79/2009 - Income Tax It is hereby notified for general information that the organization Vittal Mallya Scientific Research Foundation, Bangalore, 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 5E of...

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MCA asked ICAI to seek information from the foreign firms operating in India

The government has sought clarity from auditing firm PriceWaterhouseCoopers (PWC) about their operations and business plans in India. “Come back with a plan. What is that you are responsible for? What is that you should be responsible for?” Corporate Affairs Minister Salman Khurshid told PTI while replying to questions about his meeti...

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Posted Under: Fema / RBI | ,

Soon stock market may be work from 9 AM to 5 PM

Markets can now be open 9 to 5, says regulator. You could soon be able to trade for an additional two-and-a-half hours on stock exchanges with the Securities and Exchange Board of India (SEBI) on Friday allowing trading between 9 a m and 5 p m to align timings to international standards....

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Posted Under: Fema / RBI |

CBI arrested Income Tax Commissioner and his wife

CBI on Sunday arrested an Income Tax Commissioner from Nagpur and his wife for allegedly amassing assets disproportionate to their known source of income to the tune of Rs 4 crore. While IT Commissioner Ajay Kumar Singh was arrested from Mumbai airport by CBI sleuths, his wife Mrunalika Singh was His wife Mrinalika was picked up by the ag...

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Posted Under: Fema / RBI |

CBI raid DOT offices for irregularities in awarding 2G spectrum licenses resulting in revenue loss of more than Rs 20,000 crore

CBI raid DOT offices after CVC has charged the telecom ministry of irregularities in awarding the 2G spectrum licenses loss of revenue to the government. Sanchar Bhawan was under raid for the department allocation of 2G spectrum to some of the new players at throw away prices without any bid but adopted on first come- first serve basis....

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Posted Under: Fema / RBI |

Once the taxable service is exported and various input services have been utilized for providing the output service, the service provider is entitled for the rebate

Dell International Services India Pvt. Ltd. Vs CCE(Appeals) [CESTAT Bangalore]

Once the taxable service is exported and various input services have been utilized for providing the output service :i.e. appellants could be entitled for the rebate, which is equal to the service tax paid on the input services. Going by the definition of the input service under Rule 2(1) of the Cenvat Credit Rules, 2004 the service utili...

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TDS u/s 194A of the Act is to be paid by the recipient in respect of the interest income on the delayed payment

Karnal Singh Vs State of Haryana (Punjab & Haryana High Court)

Therefore, we hold that it is a revenue receipt exigible to tax under Section 4 of the Income Tax Act. Section 194-A of the Act has no application for the purpose of this case as it encompasses deduction of the income at the source. However the appellants are entitled to spread over the income for the period for which payment came to be m...

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Penalty U/S. 271(1)(c) is neither criminal nor quasi criminal but a civil liability

CIT Vs Atul Mohan Bindal (Supreme Court of India)

Atul Mohan Bindal - assessee filed return of his income for Assessment Year 2002-03 on August 8, 2002 declaring his total income Rs.1,98,50,021/ -. In the assessment proceedings u/s 143, a notice alongwith questionnaire was issued to him by the Assessing Officer on November 29, 2002. Pursuant thereto, assessee attended the assessment proc...

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Loan ‘waiver’ does not fall into either of three terms subsidy / grant and reimbursement

Steelco Gujarat Ltd. Vs ACIT (ITAT Ahmedabad)

. The undisputed facts are that the assessee had plant and machinery already existing prior to the receipt of finance from Wipro Finance Ltd. It is apparent from the chart of payment referred to by the learned AR of the assessee. This clearly indicates that the loan was not given directly or indirectly for the purpose of purchasing plant ...

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How to file return in ACES- Part-II

In this article we are describing all the features of Service Tax section like: filing of ST-1, getting of ST-2 and filing of ST-3. Again, as it is not possible to compile all the things in one article, we will give details for filing ER-1 return other returns in our next articles on the same issues at the earliest....

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Posted Under: Fema / RBI |

Single window help desk for Chartered Accountants in Service / Industry relating to Membership in ICAI

As part of its quality service to the Chartered Accountants in Service / Industry, The Committee for Members in Industry of ICAI has started a single window help desk for the Chartered Accountants with respect to all services related to their membership in ICAI. These services would cover appropriate assistance on the following:...

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Posted Under: Fema / RBI |

Discount can not be treated as brokerage or commission u/s. 194H in the absence of existence the relationship of principal and agent

ACIT Vs Idea Cellular Ltd. (ITAT Hyderabad)

We have carefully considered the submissions of the rival parties and perused the material available on record. We find that the facts are not in dispute. Under section 194H of the Act any person not being an individual or a Hindu undivided family who is responsible for paying on or after the first day of June 2001 to a resident any incom...

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Import licences for Rough Marble Blocks/Slabs – Issue of balance quota for the year 2009-10 as per New Policy

Policy Circular No. 12/2009-2014 (23/10/2009)

The inter-se allocation of quota shall be computed based on the full quota for the year 2009-10 as per the Policy notified vide Notification No. 15/2009-2014 dated 15th October, 2009 (and as amended by Notification No. 16 dated 23rd October, 2009). The quantities to eligible applicants shall be pro-rated for the balance quota of this yea...

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Notification No. 16/2009-2014, Dated: 23.10.2009

Notification No. 16/2009-2014 (23/10/2009)

Units who have installed marble gang saw machine (except 100% EOUs and units in SEZ). However, the marble gang saw machine shall be in the name of the applicant only. No gang saw on Lease Basis shall be considered for the purpose of allocation of import entitlement....

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Affidavit must for gift in kind, over Rs. 50,000, from relatives

From now on, when you get a gift in kind, valued at more than Rs. 50,000, from your parents or other relatives, make sure you have a sworn affidavit declaring the donor your kin.The Central Board of Direct Taxes has ruled that any such gift will be taxable for the donee unless it is from relatives or given during occasions such as marriag...

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Posted Under: Fema / RBI |

Fee for use of satellite is “royalty” under Act & DTAA

New Skies Satellites N.V. Vs. ADIT International Taxation [ITAT Delhi]

In Asia Satellite 85 ITD 478 the Tribunal held that the said receipts were taxable as ‘royalty’ having been paid in respect of a “process”. However, in PanAmSat 9 SOT 100 it was held that as in the term “royalty” in Art. 12 of the India-USA DTAA there was a ‘comma’ after the words “secret formula or process”, it was on...

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No “succession of business” u/s. 170 even on 100% sale of shares

CIT, Shimla Vs Panchratan Hotels Pvt. Ltd, Manali (Himachal Pradesh High Court)

Even if it is accepted that by a transfer of shares u/s 2(47), there is a transfer in the right to use the capital assets of the company, still s. 170 is not attracted because there is no “transfer of business”. A company is a juristic person and owns the business. The share holders are not the owners of the company. By a transfer of ...

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SEBI : Combating Financing of Terrorism (CFT) under Unlawful Activities (Prevention) Act, 1967 – Directions to stock exchanges, depositories and all registered intermediaries.

ISD/AML/CIR-2/2009 (23/10/2009)

Stock Exchanges, depositories and registered intermediaries are directed to bring the provisions of the UAPA, the Government Order dated August 27, 2009 and the contents of this circular to the notice of their staff concerned and ensure strict and meticulous compliance of the same....

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SEBI : Trading Hours on Stock Exchanges

SEBI/DNPD/Cir-47/2009 (23/10/2009)

In consultation with the Stock Exchanges and other market participants, it has been decided to permit the Stock Exchanges to set their trading hours (in the cash and derivatives segments) subject to the condition that....

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ICAI announced Change of Examination Centres for November-2009 CA Exams

Due to paucity of accommodation in some Zones opted by Candidates in the cities of Ahmedabad, Chennai, Delhi, Indore, Mumbai and Kolkata etc., some of the candidates have been allotted examination Centres in other Zones of the said cities where the accommodation is available. ...

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Posted Under: Fema / RBI |

ICAI announced final list of candidates from Western and Central region

For Central council one candidate from Western region and three candidates from Central Region withdrew their candidature.For Regional council, 2 candidates from Western Region and 3 candidates from Central region withdrew their candidature....

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Posted Under: Fema / RBI |

Exemption to taxable services referred to in section 65(105)(zzzza), in relation to execution of a works contract related to canals

Notification No. 41/2009 - Service Tax (23/10/2009)

Notification No. 41/2009 - Service Tax exempts the taxable service referred to in sub-clause (zzzza) of clause (105) of section 65 of the said Act, in relation to execution of a works contract in respect of canals, other than those primarily used for the purposes of commerce or industry, from the whole of service tax leviable thereon unde...

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Amends Notification No. 146/2009-CUSTOMS Duty (N.T.) dated 25th September, 2009

Notification No. 157/2009-Customs (N.T.) (22/10/2009)

In exercise of the powers conferred by Section 14 of the Customs Act, 1962 (52 of 1962), the Board hereby makes the following amendments in the Notification of the Government of India, Ministry of Finance (Department of Revenue) No. 146/2009-CUSTOMS (N.T.) dated the 25th September, 2009 [S. O. 2460 (E)], namely....

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RBI circular on submission of certificate from Statutory Auditor to the Bank on NBFC Audit

RBI/2009-10/ 187, DNBS (PD) CC. No. 162 /03.05.002 / 2009-2010 (22/10/2009)

In terms of Para No. 15 of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007, every non-banking financial company has to submit a Certificate from its Statuto...

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No Penalty U/s. 271D for receipt of Share application money in cash

CIT Vs. M/s Speedways Rubber Pvt. Limited (Punjab & Haryana High Court at Chandigarh)

The Assessing officer initiated proceedings for alleged violation of section 269SS of the Act in as much as the assessee accepted share application money being Rs.20,000/- in cash. Thereafter, penalty was imposed. On appeal, CIT(A) upheld the stand of the assessee that the amount received...

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Withdrawal of circular related to taxability of income accruing or arising through, or from, business connection in India to a non-resident

Circular No. 7/2009-Income Tax (22/10/2009)

The Central Board of Direct Taxes had issued Circular No. 23 (hereinafter called "the Circular") on 23rd July 1969 regarding taxability of income accruing or arising through, or from, business connection in India to a non-resident, under section 9 of the Income-tax Act, 1961. 2. It is noticed that interpretation of the Circular by some ...

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Change in method of valuation of closing stock allowed if such change is bona fide and assessee has proper reasons for such change

Charchit agarwal Vs ACIT (ITAT Delhi)

Section 153A(1) contains non-obstante clause and hence provisions of this section will over-ride the provisions of section 139, section 147, section 148, section 149, section 151 and section 153 of the Act. Under section 153A(1) the assessing officer is empowered is empowered to issue notices to the assessee searched for a period of six y...

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Availability of exemption u/s 54F on acquisition of land appurtenant to the building or on the investment on land on which building is being constructed

Addl. CIT Vs Narendra Mohan Uniyal (ITAT Delhi)

There is no rider u/s 54F that no deduction would be allowed in respect of investment of capital gains made on acquisition of land appurtenant to the building or on the investment on land on which building is being constructed. ...

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True basis of depreciation allowance is the character of the asset not the description of the same

Hindustan Coca Cola Beverages Pvt. Ltd. Vs. DCIT (ITAT Delhi)

Even if an asset is described as goodwill but it fits in the description of section 32(1)(ii), depreciation is to be granted on the same; the true basis of depreciation allowance is the character of the asset and not it's description....

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CLB cannot exercise its inherent powers to pass orders without jurisdiction

Shree Ram Urban Infrastructure Ltd. Vs R. K. Dhall (Bombay High Court)

The CLB cannot exercise its inherent powers to pass orders without jurisdiction or in utter disregard to orders passed by the Supreme Court or the High Court; an interim order passed by the CLB without jurisdiction and without giving reasons and in utter disregard to the orders passed by the Supreme Court and the High Court cannot be sust...

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Applicability of Service tax on billing and data processing done by CA firm for Power Distribution Company

Gandhi & Gandhi Chartered Accountants Vs CCE (CESTAT Bangalore)

In terms of the Board's clarification dated 28-2-2006, the service rendered namely outsourcing of spot billing work by APCPDCL would come within the ambit of business support service which is liable to service tax only with effect from 2006....

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Customs Circular on Procedure for import of diamonds for certification and grading and re-export

Circular No. 30/2009-Custom Duty (22/10/2009)

A new scheme under paragraph 4A.2 has been introduced in the Foreign Trade Policy 2009-2014 (FTP) for import of diamonds for certification and grading and re-export thereof. Procedure in this regard has also been specified under paragraph 4A.14 of Handbook of Procedure Volume I (HBP). To avoid dichotomy in following the procedure by the f...

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Government made available the facility for online registration and filing of Excise and service tax returns

The automation drive by the country’s excise and service tax department took another step forward Wednesday with the access to online registration and filing of returns made available in the national capital and surrounding regions. ‘The main objective of the automation drive is to provide an electronic interface with the department t...

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Posted Under: Fema / RBI |

ICAI reports on Satyam have nothing new apart from repeating charges made by the CBI

A report prepared by India's apex accounting body that is investigating the role of the auditors in the fraud at Satyam Computer Services Ltd doesn't shed any new light on the subject and, apart from repeating charges made by the Central Bureau of Investigation, India's federal investigative agency, suggests generic measures to improve th...

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Posted Under: Fema / RBI | ,

SEBI guidelines for setting up stock exchanges exclusively for SME soon

Market regulator Securities and Exchange Board of India (Sebi) would come up with guidelines for setting up stock exchanges exclusively for small and medium firms soon. "Sebi is working on it. The norms are being finalised and would be released soon," Finance Ministry sources said....

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Posted Under: Fema / RBI |

Press Release on Economic Outlook for 2009-10 :- Highlights

The Indian economy weathered the financial turbulence well 6.7 % growth in 2008/09 – amongst the highest growth rates in the world. well calibrated adjustments in the monetary and fiscal policies...

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Posted Under: Fema / RBI |

Exemption of Excise duty leviable on specified goods affixed with brand name or trade name of another person

Notification No. 24/2009-Central Excise (N.T.) (21/10/2009)

Packing materials, namely, printed cartons of paper or paper board, metal containers, high density polyethylene woven sacks, adhesive tapes, stickers, pilfer proof caps, crown corks, metal labels....

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Income From Other Sources- Section 56 (2)(Vii) Unequal treatment of all equals

The Budget 2009-2010 amended the Income Tax Act so as to tax notional income resulting from transactions in immovable properties under section 56 i.e. Income from other sources. Our focus in this write-up will be only on newly inserted provisions in section 56 pertaining to Immovable Property which is bound to result in more questions th...

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Posted Under: Fema / RBI |

Central Excise Notification on exemption of packing material with brand name or trade name of another person

Notification No: 24 /2009-Central Excise(N.T.) (21/10/2009)

Central Excise - Notification No. 24/2009 Dated Wednesday, October 21, 2009 -Exempts Packing materials, namely, printed cartons of paper or paper board, metal containers, high density polyethylene woven sacks, adhesive tapes, stickers, pilfer proof caps, crown corks, metal labels, Plastic bags, Printed laminated rolls affixed with brand n...

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Burden to prove identity, creditworthiness and genuineness of cash credits under section 68 of IT Act

Kalyan Memorial & Charitable Trust Vs ACIT (ITAT Agra)

According to section 68 where any sum is found credited in the books of assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to Income-tax as ...

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No penalty under Expl. 7 to s. 271 (1) (c) for bona fide transfer pricing adjustments

DCIT vs. Vertex Customer Services (ITAT Delhi)

Expl. 7 to s. 271 (1) (c) provides that in the case of an assessee who has entered into an international transaction, any amount added or disallowed in computing the total income u/s 92C (4) shall for purposes of s. 271 (1) (c) be deemed to represent income in respect of which particulars have been concealed or inaccurate particulars furn...

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Circular on Classification of Textile quilted products like Quilts, Quilted bed spreads, etc for excise duty

Circular No. 903/23/2009-Central Excise (20/10/2009)

Reference has been received from Trade seeking clarification regarding classification of Quilts and Quilted bed spreads. These are ready to use products. The process of manufacture of these products is that between two layers of fabrics, a layer of cotton/synthetic fabric, etc is placed and thereafter, it is stitched and converted into ma...

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MP Government likely to challenge GST in Supreme Court

The Madhya Pradesh government is gearing up to take on Centre over the goods and service tax (GST) issue. If things do not happen its way, the state is likely to challenge the Centre on the issue in the Supreme Court....

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Posted Under: Fema / RBI |

Taxpayer of 10 more cities will get Income Tax Refund directly in their bank account

The I-T department has decided to extend the Refund Banker Scheme that allows refund of excess tax money to taxpayers to nine more cities, including Ahmedabad and Kochi....

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Posted Under: Fema / RBI |

CBDT suggested abolition of MAT and continuance of tax benefit on savings in new Direct Tax Code

The Central Board of Direct Taxes (CBDT), the government's apex tax policy and collection body, has suggested that the new direct taxes code abolish Minimum Alternate Tax (MAT) and continue to offer individuals tax exemptions on savings under the existing EEE (exempt-exempt- exempt) method....

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Posted Under: Fema / RBI |

Circular on value for payment of excise duty if goods are manufactured on job work basis

Circular No. 902/22/2009-CX (20/10/2009)

It has been brought to the notice of the Board that some manufacturers of Motor Vehicles are getting complete Motor Vehicles manufactured by sending the Chassis of the Motor Vehicles to independent body builders for building the body as per the design/specification of the manufacturer. The practice followed is that the Chassis is transfer...

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AAR on taxability of income from execution of contract in India by German company, having no PE in India

In re Pintsch Bamag (Authority for Advance Rulings)

The contention of the Revenue is that the sub-contractor is undertaking various activities which constitute the core of the contract work entrusted to the applicant. All the activities undertaken by the sub-contractor are on behalf of the applicant and in connection with the execution of the contract between the applicant and TPT. It is p...

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Section 54F exemption cannot be availed if there is a house in existence on the date of transfer

ACIT Vs T. N. Gopal (ITAT Chennai)

I have heard the rival submissions in the light of material placed before me and the precedents relied upon. The assessee got share in the house property, as per the WILL of his father He became the joint owner of the property along with his brother. After becoming the joint owner of the said property the assessee sold shares for the purp...

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No disallowance u/s 43B if deduction not been claimed by the Assessee in respect of sum payable by way of tax or duty

Dynavision Ltd. Vs ACIT (ITAT Chennai)

Sec.43B can only be invoked when the assessee claims deduction for any sum payable by way of tax or duty, under any law for the time being in force, and, as such, where no such deduction is claimed nor charged made to the profit and loss account, there is no question of disallowing the amount. Having regard to the facts, the Assessing Off...

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Satisfaction of the AO and determination of Expenditure in relation to income which is not includible in total income

PTC India Ltd. Vs. DCIT (ITAT Delhi)

A perusal of section 14A (2)(supra), evinces that the amount of expenditure incurred in relation to income not includible in the total income shall be determined by the AO if the AO is not satisfied with the correctness of the claim of the assessee in respect of such expenditure in relation to income not includible in the total income. ...

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Applicability of TDS on payment made to legal advisors at Hongkong

DIT (Int'l Taxation) Vs Tata Iron & Steel Co. Ltd. (ITAT Mumbai)

Admittedly there was no DTAA with Hongkong for the relevant year. As such we will restrict ourselves in examining the provisions of section 9(l)(vii) in order to ascertain the deductibility or otherwise of tax at source from the payment so made to the firm of legal advisors at Hongkong....

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Levy of penalty under section 158BFA (2) on undisclosed income returned for non-payment of tax thereon

DCIT Vs Heera Constructions Co. (P.) Ltd. (ITAT Cochin)

Provided further that the provisions of the preceding proviso shall not apply where the undisclosed income determined by the Assessing Officer is in excess of the income show in the return and in such cases the penalty shall be imposed on that portion of undisclosed income determined which is in excess of the amount of undisclosed income ...

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