"December, 2009" Archive

CUSTOMS Notification No 189/2009 (NT), Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between ASEAN and India

Notification No. 189/2009-Customs (N.T.) (31/12/2009)

. Short title and commencement.-(1) These rules may be called the Customs? Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009....

Read More

PTC Industries Ltd. Vs Union of India & Ors. (Allahabad High Court)

PTC Industries Ltd. Vs Union of India & Ors. (Allahabad High Court)

We find from the scheme of the Customs Act, 1962 and the Foreign Trade (Development and Regulation) Act, 1992 that whenever a dispute may arise as to the classification of the goods, other than its description, quantity and FOB value, the customs authorities have to refer the dispute for adjudication to DGFT under Section 13 of the Act. I...

Read More

Exemption of Customs duty on certain goods when imported into India from the Malaysia, Singapore & Thailand

Notification No. 153/2009-Customs (31/12/2009)

Notification No. 153/2009-Customs in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009, published in the notification of the Governmen...

Read More

Exemption of Customs duty on certain goods when imported into India from the Republic of Korea – Notification No. 152/2009-Customs

Notification No. 152/2009-Customs [G.S.R. 943(E)] (31/12/2009)

Notification No. 152/2009-Customs- Government hereby exempts goods of the description as specified in column (3) of the Table appended hereto and falling under the Chapter, Heading, Sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the sa...

Read More

Notification No. 151/2009-Customs – Exempts certain goods from whole of the duty of customs when imported into India from the Republic of Korea

Notification No. 151/2009-Customs (31/12/2009)

Notification No. 151/2009-Customs- Provided that the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of Republic of Korea, in accordance with the provisions of t...

Read More

Custom duty notification amending notification No. 10/2008-Customs dated the 15th January, 2008

Notification No. 150/2009-Custom (31/12/2009)

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of...

Read More

Custom duty notification amending principal notification No. 68/2006-Customs, dated the 30th June, 2006

Notification No. 149/2009-Custom (31/12/2009)

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), 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 Ministry of Finance (De...

Read More

Custom duty notification amending principal notification No. 67/2006-Customs, dated the 30th June, 2006

Notification No. 148/2009-Customs (31/12/2009)

For the purposes of this exemption, “Crude palm oil” means fixed vegetable oils, fluid or solid, obtained by pressure, if they have undergone no processing other than decantation, centrifugation or filtration, provided that, in order to separate the oils from solid particles only mechanical force, such as gravity, pressure or centrifu...

Read More

CBEC amends tariff value of Brass Scrap and Poppy seeds by Notification No. 188/2009-CUSTOMS (N. T.)

Notification No. 188/2009-Customs (N.T.) (31/12/2009)

Notification No. 188/2009-CUSTOMS (N. T.) - In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Board, being satisfied that it is necessary and expedient so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finan...

Read More

MVAT circular on activity code to be mentioned in audit report form 704

Trade Circular No. 38 T of 2009 (31/12/2009)

Activity Codes are numerical codes that are used to define the activities of an economic unit. These codes are developed by National Industrial Classification (NIC) 2008. It is a standardized system of classification of economic activities essential for meaningful collection of data relating to such activities. This classification does no...

Read More

Burden to prove the genuineness of the gift is on the Assessee

ITO Vs. Usha Aggarwal (ITAT Delhi)

The financial affairs of both the donors do not evoke confidence that they could have made the gift of large amounts compared to their incomes in a circumstance when their monies were locked up elsewhere. They themselves did not own any immovable property. These facts impinge directly on the genuineness of the gifts also. ...

Read More

Finance companies too governed by provisions of section 269SS and 269T of the Income Tax Act, 1961

DCIT Vs. Erneskay Financial Services Ltd. (ITAT Visakhapatnam)

For a finance company, money is the product with which it carries on the business. Since the directors have made maiden venture. The necessity of establishing good will and reputation, that too in a finance company, is of utmost necessity. At the same time, it cannot give a permanent license to the company to continue to violate the provi...

Read More

Providing of fixtures & fittings to licencee of a premises would not make income from sub-letting of property as business income

Ocean City Trading (I) Pvt. Ltd. Vs. ITO (ITAT Mumbai)

We have heard learned counsel for the assessee. Learned counsel for the assessee drew our attention to various clauses in leave and license agreement and submitted that the premises were given purely on license basis with fixtures and fittings. It was also pointed out that under the license agreement, the assessee also retained duplicate ...

Read More

Blending of tea for export by an industrial unit in SEZ area is a manufacturing activity which qualifies for exemption U/s. 10A/10AA

Girnar Industries Vs CIT (Kerala High Court)

The short question that arises for consideration is whether blending and packing of tea for export in the industrial unit in the Special Economic Zone amount to manufacture or production of an article qualifying for exemption under Section 10A of the Act, that is, during the period prior to introduction of "blending" as "manufacture" with...

Read More

Tribunal’s power u/s 254(2) is not to review its earlier order but only to amend it with a view to rectify any mistake apparent from the record

Express Newspapers Ltd. Vs. Dy. CIT (Madras High Court)

. From the various judgments of the Supreme Court above referred to and other High Courts, it is clear that the Tribunal's power under Section 254(2) is not to review its earlier order but only to amend it with a view to rectify any mistake apparent from the record. What can be termed as "mistake apparent?". "Mistake" in general means to ...

Read More

Establishment of identity of creditor, creditworthiness of creditor and genuineness of transaction

Tulip Hotels Pvt. Ltd. Vs. DCIT (ITAT Mumbai)

Shri Somendra Khosla is a NRI, he is in the business of development of real estate and he is a man of substantial means, in my opinion, if he has decided to invest in the real estate in India, the genuineness cannot be doubted unless there is any evidence to the contrary. The Revenue has doubted the genuineness merely on the basis of pres...

Read More

Public Notice No. 27/2009-14, Dated: 31.12.2009

Public Notice No. 27/2009-14 (31/12/2009)

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....

Read More

Notification on Scheme for Filing of Statutory documents & other transactions by companies in Electronic mode

Notification No. S.O. 3314(E) (31/12/2009)

In exercise of the powers conferred by sub-section (2) of section 610B of the Companies Act, 1956, the Central Government hereby makes the following Scheme to amend the Scheme for Filing of Statutory Documents and other Transactions by Companies in Electronic Mode, namely:-...

Read More

Additional depreciation on new asset not subject to setting up or operational connectivity with main business

CIT Vs M/s Hi Tech Arai Limited (Madras High Court)

This article summarizes recent ruling of the Madras High Court (HC) in the case of CIT v M/s Hi Tech Arai Limited (Taxpayer) [Tax Case (Appeal) Nos. 670 and 671 of 2009] on the issue of allowability of additional depreciation on newly set-up windmills, under the Indian Tax Law (ITL), ...

Read More

Interest on funds borrowed for acquiring controlling interest not allowable expenditure under the Income Tax Act

Panatone Finvest Ltd. (ITAT Mumbai)

The Taxpayer incurred interest expenditure on the funds borrowed for investing in shares of a company, with a view to acquire controlling interest. The ITAT held that the interest expenditure incurred is not allowable under Section 57(iii)(Section) of the Indian Tax Law (ITL), since it is not incurred 'wholly and exclusively' for the purp...

Read More

SB rules income from derivative trading in shares prior to financial year 2005-06 is speculation income

Shree Capital Services Ltd. Vs. ACIT (ITAT Kolkata)

This Tax Alert summarizes a recent ruling of the Special Bench (SB) of Kolkata Income Tax Appellate Tribunal (ITAT) in the case of Shree Capital Services Ltd. (Taxpayer) vs. ACIT (ITA No. 1294 (Kol) of 2008) in which the SB held that, prior to financial year 2005-06 (assessment year 2006-07), derivative transactions in shares were covered...

Read More

Duty Drawback & sale of DEPB license not eligible for tax holiday – SC

M/s Liberty India Vs CIT (Supreme Court of India)

This article summarizes a recent ruling of the Supreme Court (SC) [2009-TIOL­100-SC-IT] in the case M/s Liberty India (Taxpayer), in which the SC held that the receipts, by way of Duty Drawback and sale of Duty Entitlement Pass Book (DEPB) licence by the Taxpayer, do not form part of the profits 'derived from' the industrial undertaking...

Read More

Larger Bench rules tax holiday not available to a contractor/executor under the Income Tax Act

M/s B.T. Patil & Sons Belgaum Construction Pvt. Ltd. Vs. ACIT (ITAT Mumbai)

Taxpayers in the infrastructure sector are often engaged in the execution of construction activities, which form a minor portion of a contract for the development of an infrastructure facility. This ruling provides guidance on whether a contactor simplicitor would be entitled to tax holiday under the ITL, in respect of the construction ac...

Read More

Remuneration payable to the Statutory Central and Branch Auditors of Public Sector Banks from the year 2006-07

RBI/2009-10/281 Ref.DBS.ARS.BC.No.09/ 08.92.001/ 2009-10 (31/12/2009)

The matter regarding assignment of the tax audit work to one of the SCAs and fee payable to SCA so selected was reviewed and it has been decided that PSBs may appoint at the Head office level also any chartered accountant firm as their tax auditor at a reasonable fee with the approval of their Board /ACB....

Read More

Govt decided to shelve introduction of unique transaction number (UTN)

The government has decided to shelve the introduction of the unique transaction number, which tax payers need to quote along with permanent account number when tax is deducted/collected at source.The scheme was to have come into force from the new year. However, the finance ministry has not ruled out the possibility of introducing a new i...

Read More
Posted Under: Custom Duty |

Budget 2010 may have anti-avoidance provisions to check evasion of tax

The forthcoming Union budget may have an anti-avoidance provision, which can effectively check convoluted transactions devised exclusively for the purpose of evading paying taxes in India. The finance ministry, said revenue department officials, is contemplating the idea of vesting powers with the commissioners of Income-tax (I-T) to decl...

Read More
Posted Under: Custom Duty |

Habitual absence from work without taking leave amounts to misconduct

Now, habitual absence from work without taking leave amounts to misconduct on the part of an employee. According to the ruling by the Mumbai High Court, a person in the habit of being absent without prior sanction, is somebody who is not devoted to duty. "We are of the view that an employee who is in habit of remaining absent without prio...

Read More
Posted Under: Custom Duty |

Second proviso to section 10B(1) cannot be construed to be a qualifying condition for claiming deduction

M/s. Tube Investments of India Ltd. Vs ACIT (ITAT Chennai)

The second proviso to section 10B(1) cannot be construed to be a qualifying condition for claiming deduction. It just permits additional benefit which may be allowed provided domestic profit is within the limit prescribed in the proviso. On the panoply of this proviso deduction cannot be denied. The assessee would be entitled to partial d...

Read More

Notification No. 187/2009-Customs (N.T.) Date 31.12.2009

Notification No. 187/2009-Customs (N.T.) (31/12/2009)

NOTIFICATION No. 187/2009-CUSTOMS (N.T.) In exercise of the powers conferred by sub-section (1) of section 5 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government hereby makes the following rules, namely:-1. Short title and commencement.- (1) These rules may be called the Customs Tariff (Determination of Origin of Goods un...

Read More

Notification No. 97/2009 – Income Tax Dated 30/12/2009

Notification No. 97/2009 - Income Tax (30/12/2009)

Notification No. 97/2009 - Income Tax It is hereby notified for general information that the organization Mother’s Service Society, Puducherry has been approved by the Central Government for the purpose of clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with rules 5C and 5E of the Income-tax R...

Read More

Notification No. 100/2009 – Income Tax Dated 30/12/2009

Notification No. 100/2009 - Income Tax (30/12/2009)

Notification No. 100/2009 - Income Tax It is hereby notified for general information that the organization Thiagarajar College of Engineering, Madurai 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 the Income-...

Read More

Notification No. 99/2009 – Income Tax Dated 30/12/2009

Notification No. 99/2009 - Income Tax (30/12/2009)

Notification No. 99/2009 - Income Tax It is hereby notified for general information that the organization Giri Institute of Development Studies, Lucknow has been approved by the Central Government for the purpose of clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with rules 5C and 5E of the Inco...

Read More

Notification No. 98/2009 – Income Tax Dated 30/12/2009

Notification No. 98/2009 - Income Tax (30/12/2009)

Notification No. 98/2009 - Income Tax It is hereby notified for general information that the organization Madras School of Economics, Chennai has been approved by the Central Government for the purpose of clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with rules 5C and 5E of the Income-tax Rul...

Read More

Notification No. 96/2009 – Income Tax Dated 30/12/2009

Notification No. 96/2009 - Income Tax (30/12/2009)

Notification No. 96/2009 - Income Tax It is hereby notified for general information that the organization The Institute of Road Transport, Chennai 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 the Income-tax ...

Read More

Notification No. 95/2009 – Income Tax Dated 30/12/2009

Notification No. 95/2009 - Income Tax (30/12/2009)

Notification No. 95/2009 - Income Tax It is hereby notified for general information that the organization Diabetic Association of India, Mumbai 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 the Income-tax Rul...

Read More

Notification regarding investing Authority for Appeals to the Commissioner of Central Excise (Appeals), Bangalore-II

Notification No. 27/2009-Central Excise (N.T.) (30/12/2009)

G.S.R. (E).- In exercise of the powers conferred by sub-rules (1) and (2) of rule 3 of the Central Excise Rules, 2002, the Central Board of Excise and Customs hereby invests the Commissioner of Central Excise (Appeals) Mangalore with all the powers of the Commissioner of Central Excise (Appeals) Bangalore-II, for the purpose of deciding t...

Read More

Indian Company Law – Objects Clause?

We all know about the requirements of forming a Company in India. Incorporation of a Company, as a secretarial practice, may not be a complicated exercise. It is not difficult to get the Director Identification Numbers (DIN) for the proposed directors in the Company to be incorporated, it is not difficult to get Digital Signatures, it is ...

Read More
Posted Under: Custom Duty |

Appeal to simplify and speedup procedure for approval u/s. 22 of Bombay Public Trust Act, 1950

For the benefit of all the Public Charitable and Religious Trusts, Trustee & all such Trusts should jointly make a petition before Law Minister, Law and Judiciary Department Sachivalaya, Maharashtra to amend this and other similar provisions in such a way that if nothing is intimated within 120 days, the said change reports should be deem...

Read More
Posted Under: Custom Duty |

Appeal to simplify & speedup procedure for approval u/s. 36A(3) of Bombay Public Trust Act, 1950 in respect of raising loan or deposit

Thus, for the benefit of all the Public Charitable and Religious Trusts, Trustee & all such Trusts should jointly make a petition before Law Minister, Law and Judiciary Department Sachivalaya, Maharashtra to amend this and other similar provisions in such a way that the approval should be granted/rejected within 3/4 months on the lines of...

Read More
Posted Under: Custom Duty |

SEBI : Applications Supported by Blocked Amount (ASBA) facility in public issues and rights issues.

SEBI/CFD/DI L/ASBA/1/2009/30/12 (30/12/2009)

ASBA means ‘Application Supported by Blocked Amount’ as defined in clause (d) of sub‐regulation (1) of regulation 2 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009....

Read More

Establishment of Branch (BO) / Liaison Offices (LO) in India by Foreign Entities — Delegation of Powers

RBI/2009-2010/279 A. P. (DIR Series) Circular No.24 (30/12/2009)

Attention of Authorised Dealer Category – I banks is invited to Notification No. FEMA 22/2000-RB dated May 3, 2000 viz. Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000 as amended from time to time, in terms of which a person resident outside India requires prior appro...

Read More

In case of gifted Assets, indexation benefit is available from the year of acquisition of the previous owner

DCIT Vs. Manjula Shah (ITAT Mumbai)

This article summarizes a recent ruling of the Special Bench (SB) of the Mumbai Income Tax Appellate Tribunal (ITAT) [ITA No. 7315/Mum/2007] in the case of DCIT vs. Manjula Shah (Taxpayer) which held that, in the case of gifted capital asset, indexation benefit is available to a donee from the year of its acquisition by the previous owner...

Read More

Admissibility of deduction from book profit of reduction in revaluation reserve under MAT provisions

Indo Rama Synthetics (I) Ltd. (Delhi High Court)

This ruling provides guidance that withdrawal from a revaluation reserve is permitted to be reduced from the book profit, computed under the MAT provisions, only in a case where the book profit was increased by the amount of revaluation reserve in the year of creation....

Read More

High court upheld the levy of higher rate of tax on superior kerosene oil (white kerosene oil)

Levy of sales tax on a higher percentage on ‘superior kerosene oil' (SKO) (also called white kerosene oil) and also levy of resale tax and surcharge on it by Tamil Nadu Government have been upheld by the Madras High Court. The attack by dealers that levy of different rates for same commodity was discriminatory was turned down by the Cou...

Read More
Posted Under: Custom Duty |

Managers cannot be termed workmen: the Bombay High Court

Managers cannot be termed workmen, the Bombay High Court has held, in a significant verdict that throws light on a vexed issue on who constitutes a workman in the post-liberalisation era. Observing that Industrial law must keep pace with times, the Court also held that managerial organisation today is radically different from the pre-libe...

Read More
Posted Under: Custom Duty |

Amendment to the Maharashtra Value Added Tax Rules, 2005

Trade Circular No. 37 T of 2009 (30/12/2009)

The sub-rule (1) provides the different forms of returns to be filed by various categories of dealers. Earlier, the dealers. used to submit these forms of return-cum-chalan physically either to the Bank alongwith payment of tax, interest etc., if any or to the Sales Tax Department where tax liability was NIL. These forms of the return wer...

Read More

Perquisite Valuation rules not considered the inflation and old exempt amount limit been kept

The fringe benefit tax (FBT) was strongly opposed by India Inc, but there is no doubt that it was beneficial to the employees — they did not have to directly bear the tax on many perquisites. The repeal of FBT meant uncertainty on taxation of perks. Thankfully, there are few changes to the valuation rules when compared to the rules that...

Read More
Posted Under: Custom Duty |

ICAI will relax articleship norms for Government Auditors

Accounting regulator, the Institute of Chartered Accountants of India (ICAI) has decided to allow officials of the Indian Audits and Accounts Service (IA&AS)—the stream of civil servants who audit state-run companies—acquire the chartered accountancy (CA) qualification in less than the usual time. Officers of IA&AS, a central governm...

Read More
Posted Under: Custom Duty | ,

Supreme Court stayed ruling requiring deduction for TDS on payment for software purchase to non-residents

The Supreme Court has stayed the Karnataka High Court ruling that asked technology firms to deduct tax on all payments made to non-residents on software purchases.A Bench headed by Justice S H Kapdia stayed the Karnataka High Court judgement on a couple of petitions by GE India Technology Centre Pvt Ltd and Engineering Analysis Centre of ...

Read More
Posted Under: Custom Duty |

CBDT devised scheme for improving quality of assessments

At the beginning of each calendar year i.e. in the month of January, the Range Head in consultation with the concerned Assessing Officer would identify at least 5 pending time-barring assessment cases in respect of each Assessing Officer of his Range for monitoring. These should normally include cases taken up for scrutiny with the permis...

Read More
Posted Under: Custom Duty |

Bombay high court will give preference to petitioner who attained the age of 60 years and above

A little-known circular issued by the Bombay high court promises to bring respite to senior citizens, who have been caught in the web of litigations. The HC has decided that preference should be given to cases where either of the parties involved in the court matter has attained the age of 60 years and above....

Read More
Posted Under: Custom Duty |

If the income is surrendered with the condition that no penalty be imposed, then the AO not justified in imposing the penalty

Raj Rani Mittal Vs. ITO (ITAT Delhi)

In this case, we noted that the Assessing Officer has not brought out any specific charge for which the penalty has been imposed on the assessee under section 271(1)(c) of the Income Tax Act. He has not brought out whether the assessee has concealed the income or whether the assessee has furnished the inaccurate particulars of income. ...

Read More

Incidental revenue generating activities do not end the principle of mutuality

CIT Vs Standing Conference of Public Enterprises (Delhi High Court)

Simply because some incidental activity of the assessee is revenue generating, does not provide any justification to hold that it is tainted with "commerciality" and reaches a point where relationship of mutuality ends and that of trading begins....

Read More

Advance ruling on tax rate applicable to royalty income derived by a Japanese company in India

In re Sumitomo Mitsui Construction Co. Ltd. (Authority for Advance Rulings)

The income by way of royalty accruing to the Japanese company is liable to be taxed in terms of Article 12 of the DTAA between India and Japan at a rate not exceeding 10 per cent from the assessment year 2008-09 onwards....

Read More

The burden of proving understatement or concealment is on the revenue

ITO Vs. Anshu Jain (ITAT Jaipur)

Where in any financial year the assessee has made investments or is found to be the owner of any bullion, jewellery or other valuable article, and the Assessing Officer finds that the amount expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded...

Read More

A shareholder has no "say" in management of a company unless and until he becomes part of management

Ravi Raj Gupta Vs Hans Raj Gupta & Co. Pvt. Ltd. (Delhi High Court)

Brief facts relevant for the purpose of deciding this issue are that the defendant no.1 company was a tenant in property no. 3 Amrita Shergill Marg, New Delhi. This property was leased by defendant no.5 M/s H.G.Gupta & Sons (HUF) to defendant No. 1 Company for residence of its officers. The company by a resolution in the meeting of Board ...

Read More

RBI circular on Advance Remittance for Import of Rough Diamonds

RBI/2009-10/274, A.P. (DIR Series) Circular No. 21 (29/12/2009)

banks have been permitted to make advance remittance without any limit and without bank guarantee or standby letter of Credit, by an importer (other than Public Sector Company or Department / Undertaking of the Government of India /State Governments) , for import of rough diamonds into India from eight mining companies, subject to certain...

Read More

Draft Bank Branch Auditors' Panel 2009-10

Draft Bank Branch Auditors' Panel 2009-10. MEF00001 to MEF10000, MEF10001 to MEF20000, MEF20001 to MEF30000, MEF30001 to MEF40000 http://www.meficai. org/mef_draft_ panel.jsp? list=list4...

Read More
Posted Under: Custom Duty |

Custom-Exchange-Rate-Import-Export-January-2010

Notification No. 186/2009-Customs (N.T.) (29/12/2009)

NOTIFICATION NO. 186/2009-CUSTOMS (N.T.) - the 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 January, 2010 be the rate m...

Read More

Instructions on Implementation of the Cigarettes and other Tobacco Products (Packaging and Labelling) Rules, 2008

F.No.450/160/2009-Cus.IV (29/12/2009)

‘Cigarettes and other Tobacco Products (Packaging and Labelling) Rules, 2008’ require that every package of cigarette or any other tobacco product shall have the specified health warning in the manner specified in the Schedule to the Rules. Such health warning shall occupy at least 40% of the principal display area of the front panel ...

Read More

Concessional rate of tax for foreign oil exploration and production companies

Income of foreign companies providing technical services and data to oil exploration and production companies in India will be taxed at a concessional rate, the Authority for Advance Rulings (AAR) on income tax has said in a recent decision. The ruling will be a big help to oil prospecting companies in India as they step up exploration ac...

Read More
Posted Under: Custom Duty |

Custom Duty circular on Application of Kimberley Process Certification Scheme (KPCS) to Semi- cut diamonds

Circular No. 35/2009-Custom Duty (29/12/2009)

‘Kimberley Process Certification Scheme Secretariat, Namibia’ has now clarified vide a press release dated 30 November 2009 (copy enclosed) that “polishing a single or a few small facets will not transform rough diamonds into polished diamonds and make these fall off the KPCS radar and that semi-cut diamonds and their import or expo...

Read More

19 PwC tax partners resigned following the resignation of the PwC tax head Dinesh Kanabar

19 PwC tax partners have resigned following the resignation of the PwC tax head Dinesh Kanabar on Saturday December 26. Among the people who quit today are H Kotak, G Mistry and R Dhume - all of whom have joined KPMG. All the resigning partners were originally from RSM....

Read More
Posted Under: Custom Duty | ,

Ernst & Young and six of its current and former partners charged for failing to disclose fraudulent financial accounting

The US watchdog has charged Ernst & Young and six of its current and former partners for their roles at a fitness business, for failing to know about its fraudulent financial accounting and disclosures. E&Y in the US issued unqualified audit opinions stating that Bally’s 2001 to 2003 financial statements confirmed with GAAP, and its aud...

Read More
Posted Under: Custom Duty | ,

Income earned by CA from audits will not be entitled to relief U/s. 80RR

Dilip K. Sheth Vs ITO (ITAT Mumbai 'A' Bench)

While the statute is to be interpreted on the basis of the; plain language or terms of the sections need for interpretation when the words of the statute are ambivalent and do not manifest the intention of the Legislature. As explained above the interpretation canvassed by the assessee will lead to unintended results if the purpose for wh...

Read More

AAR on taxability of an American Institute for rendering certain work and service to FICCI-DRDO Innovation programme

Federation of Indian Chambers of Commerce and Industry, In re (Authority for Advance Rulings)

The services/activities provided by the American Institute to DRDO pursuant to the agreement entered into between FICCI and the American Institute do not fall within the purview of Article 12(4)(b) of the Indo-US DTAA and the payments received by the Institute under the agreement are not liable to be taxed as fees for technical services u...

Read More

Income from trading of shares will be speculative business within meaning of provision of Explanation to section 73

ITO Vs. Ethno Financial Research Pvt. Ltd. (ITAT Delhi)

The provisions of Explanation to section 73 do not distinguish between the transaction of trading in shares on actual delivery or without delivery basis. Admittedly the assessee does not fall under any of the exceptions provided in the Explanation and hence, the purchase and sale of shares traded during the year under consideration is in ...

Read More

Determination of ALV of a let out property

ITO Vs Banker Technical Services Pvt. Ltd. (ITAT Mumbai)

I have given my careful consideration to the rival contentions. The first issue, in my view, to be addressed in this case is as to the determination of annual letting value of the house property in accordance with the provisions of section 23(1)(a) of the Act. Once that issue is decided, then it will be easy to decide the second issue as ...

Read More

Donation made for business purpose is allowable expenditure

The Surat Electricity Co. Ltd. Vs ACIT (ITAT Ahmedabad)

But now, we have to consider the alternative claim of the assessee, whether the assessee is entitled for deduction u/s.37(1) of the Act, of donation made in lieu of appeal made by the GOG as the abovementioned amount was paid because Gujarat State was reeling under severe drought and one of the most important assets of the poor people of ...

Read More

SC would decide whether foreign airlines liable to deduct TDS on commissions to travel agents for rendering ticketing services.

The Supreme Court would decide whether foreign airlines are liable to deduct tax at source (TDS) on commissions paid to travel agents for rendering ticketing services. The issue for consideration before the apex court is if airlines would have to deduct TDS on the difference between the full value of tickets and the concessional tickets i...

Read More
Posted Under: Custom Duty |

Air travels have to forego part of the commission they receive from airlines

Air travel agents will have to forego a part of the commission they receive from airlines on tickets sold by them, as the tax department has decided that such payments will be subject to tax deduction at source, or TDS. This could increase cost of air travel, as agents will pass on this burden to the flyer. The Central Board of Direct Tax...

Read More
Posted Under: Custom Duty |

Applicability of year end rate for conversion of business income earned in foreign currency

DCIT Vs Dolphin Drilling Pvt. Ltd. (ITAT Delhi)

This article summarizes ruling of the Delhi Income Tax Appellate Tribunal (ITAT) in the case of DCIT v Dolphin Drilling Pte. Ltd. (Taxpayer) [2009-TIOL-754- 1TAT-DEL]. The ITAT held that the conversion of business income earned in foreign currency into INR, in accordance with Rule 115 (Rule) of the Indian Tax Law (ITL), is to be made by a...

Read More

Allowability of depreciation on participatory right in the nature of license

M/s. ONGC Videsh Ltd. Vs DIT (ITAT Delhi)

This article summarizes a recent ruling of the Delhi Income Tax Appellate Tribunal (ITAT) in the case of M/s ONGC Videsh Ltd. (Taxpayer) [2009-TIOL-758-ITAT-DEL] on the issue of allowability of depreciation on participatory right to carry out the hydrocarbon operations, acquired by the Taxpayer, pursuant to a Production Sharing Arrangemen...

Read More

MAT need not be based on audited accounts not complying with the prescribed format: ITAT Mumbai

DCIT Vs Bombay Diamond Co. Ltd. (ITAT Mumbai)

The ITAT held that for the computation of MAT, profits disclosed as per the audited accounts should be adopted, provided the accounts are prepared in the prescribed format. If the accounts are not so prepared, the Tax Authority may substitute the amount declared as per the Profit and Loss Account (P&L) with the appropriate amount, regardl...

Read More

Date for rolling out of GST could be announced on January 8

The date for rolling out the Goods and Services Tax could be announced on January 8, the Chairman of the Empowered Committee on State Finance Ministers, Asim Dasgupta, said today. "There will be a joint statement after a meeting with Finance minister Pranab Mukherjee on January 8 on GST rollout," Dasgupta told reporters on the sidelines o...

Read More
Posted Under: Custom Duty |

Excise duty exemptions will be phased out gradually in GST regime

India may move to a dual Goods and Services Tax (GST) regime next year, but the Cenvat (excise duty) related exemptions, especially area-based ones, will not be withdrawn at one go for ushering in the new tax system. The Finance Ministry is not in favour of doing away with all the Central excise exemptions, numbering about 330, as part of...

Read More
Posted Under: Custom Duty |

Introduction of new entries in the Drawback Schedule and clarification on certain issues

Circular No. 33/2009-Custom Duty (27/12/2009)

The drawback rates provided for gold & silver jewellery will only be applicable for exports made through the ports /custom houses as specified in para 4A.12 of the Hand Book of Procedures (vol.1), 2004-2009 after examination by the jewellery expert appraisers/superintendents to ascertain the quality of gold/silver and the quantum of gold/...

Read More

DTC may retain tax shelters on interest and principal repayments for home loans

The government may modify the draft direct tax code to retain tax shelters on interest and principal repayments for home loans to make the proposed new code more attractive for the average Indian, a finance ministry official told .The proposed direct taxes code, which has been unveiled for public debate and is due to become operational fr...

Read More
Posted Under: Custom Duty |

Cyber Crime

Everyone who works on a computer must be familiar with the term “Cyber Crime”. Initially, when man invented computer and then the technology for communicating between computers was evolved, he would have never thought that the cyber space he is creating could be flooded with any crime i.e. cyber crime. But now almost all of us might h...

Read More
Posted Under: Custom Duty |

Taxability of ESOP for Assessment year 2010-2011

Employee stock options (ESOPs) is a significant employer-granted benefit that too is subject to the above FBT /perquisite-based taxation system. In fact, it almost seems as if the authorities cannot quite make up their minds as to how they wish to tax shares given to employees by their employers on a concessional basis. Having been subjec...

Read More
Posted Under: Custom Duty |

Valuation of ESOP will be cumbersome and expensive for smaller unlisted companies

It’s not going to be easy for small and unlisted companies to issue employees stock options schemes (ESOPs) as per the latest Central Board of Direct Taxes (CBDT) rules for valuation of perquisites. The valuation rules for calculating the fair market value of shares allotted to employees is substantially the same as compared to the frin...

Read More
Posted Under: Custom Duty |

History of perquisite taxation

Way back on September 25, 2000, Rule 3 governing perquisites (perks) was amended by Notification SO 940(E). The major change brought in was taxing on a 'cost to employer' basis, thereby giving perks the colour and character of salary. This in turn resulted in many employers increasing the salary of the employee instead of granting perks, ...

Read More

New perquisites valuation rules for Assessment Year 2010-11 are replica of old rules

The salaried class, reeling under the inflationary pressures, has suffered yet another setback this holiday season with the announcement of new perquisite valuation rules by the Central Board of Direct Taxes (CBDT) on December 18. The new rules have come in the wake of the abolishment of fringe benefit tax (FBT) by finance minister Pranab...

Read More
Posted Under: Custom Duty |

Empanelment of Chartered Accountant firms for the year 2010-2011 with CAG

Applications are invited online from the firms of Chartered Accountants who intend to be empanelled with this office for the year 2010-2011 for appointment as auditors of Government Companies/Corporations....

Read More
Posted Under: Custom Duty |

Section 144A of the Income-tax Act, 1961 – Power of Joint Commissioner to issue directions in certain cases – Scheme for improving quality of assessments

Instruction No. 6/2009 (18/12/2009)

For past sometime the Board has been concerned about the need for improving general quality of scrutiny assessments on a sustainable basis. In this connection, reference is invited to Board's instruction No. 2/2006 dated 27.04.2006 which required monitoring of scrutiny assessments by Range Heads under the powers available to them under se...

Read More

Section 197 – Certificate of lower deduction or non-deduction of tax at source

Instruction No. 7/2009 (22/12/2009)

I am directed to bring to your notice on the subject of issue of certificates under Section 197. Instruction No- 8/2006 dated 13.10.2006, was issued stating that 197 certificates for lower deduction or nil deduction of TDS u/s 197 are not to be issued indiscriminately and for issue of each certificate, approval of the JCI/Add. CIT concern...

Read More

Assessment records of third parties can be demanded under RTI

Shri Rakesh Kumar Gupta Vs ITAT (Central Information Commission)

The Applicant, an informer of the department, filed a RTI application seeking inspection & copies of all records available with the income tax department including assessment orders of Escorts Ltd, Dr. Naresh Trehan and connected parties. The application was rejected by the PIO on the ground that there was no overriding public interest in...

Read More

Union government approved proposal to introduce Bill to amend the Copyright Act, 1957

The Union Cabinet today approved the proposal to introduce a Bill to amend the Copyright Act, 1957. The Ministry of Human Resource Development has proposed the amendments in order to gain clarity, remove operational difficulties and to address the newer issues that have emerged in the context of digital technology and the internet....

Read More
Posted Under: Custom Duty |

Minister of Commerce and Industry releases first draft consolidation of FDI Policy/ FDI Framework

(25/12/2009)

Shri Anand Sharma, Union Minister of Commerce and Industry, has released the first draft consolidation of all the aspects of FDI Policy and FDI Framework, here today, and also launched the same in the Department of Industrial Policy & Promotion’s website (http://dipp./nic.in). Briefing the media on the occasion, Shri Sharma said that su...

Read More
Posted Under: Custom Duty |

ICAI Executive Committee Decision on Election of Chairman and other Office bearers of all Branches of Regional Councils

The Chairman of a Branch, after demitting office, should not seek re-election for or hold the said or any other post at Branch level in subsequent years. The Committee also decided that no member should hold two posts simultaneously and that in case, as a result, any difficulty was faced, the matter may be brought before the Institute for...

Read More
Posted Under: Custom Duty | ,

Union government approved amendment to the Right of Children to Free and Compulsory Education

The Right of Children to Free and Compulsory Education Act, 2009 has been enacted by the Parliament to provide for free and compulsory education to all children of the age of six to fourteen years. After receiving the assent of the President, the aforesaid Act was published in the Gazette of India on 27th August, 2009. ...

Read More
Posted Under: Custom Duty |

Investing in new pension scheme (NPS)

When it comes to social security measures, India is still considered to be an evolving country even after more than sixty years of independence. Central Government has announced a new pension scheme (NPS) w.e.f. 1st May, 2009 established under Pension Fund Regulatory and Development Authority. The scheme has been in operation for governme...

Read More
Posted Under: Custom Duty |

EET – The Future Model of Savings and Taxation

Savings are generally made from taxable income, which has already been subjected to tax provisions. There are certain savings which, if made enjoy exemption from taxation. Not only this, the income or returns arising from such savings or investments are also exempt from tax and when such savings are redeemed on maturity, they are not su...

Read More
Posted Under: Custom Duty |

No Service tax on services provided abroad prior to April 18, 2006

The Supreme Court has upheld a Bombay High Court ruling saying that the Government cannot levy service tax on services provided outside the country. The order pertains to service tax for the period from March 1, 2002 to April 17, 2006....

Read More
Posted Under: Custom Duty |

Law Commission in favour of amendment in Indian Stamp Act 1899 and Court-fees Act 1870

The Law Commission is in favour of amending the country's archaic Indian Stamp Act 1899 and the Court-fees Act 1870, which entail payment of stamp duty on instruments and court-fee on documents to be filed in courts only in the form of adhesive stamps or stamped papers.Taking up the obsolete statutes suo motu for a thorough study, the Law...

Read More
Posted Under: Custom Duty |

SEBI constituted Takeover Regulations Advisory Committee (TRAC) will review Takeover Code

The single-most important regulation in India, governing the acquisition of shares or control in an Indian listed company is the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997, or the Takeover Code. In the backdrop of changing needs of a dynamic Indian economy surging at a growth pace of more than 7 per cent over ...

Read More
Posted Under: Custom Duty |

Exempt long term capital gains to be included for MAT computation: Delhi ITAT

Growth Avenue Securities Pvt. Ltd. Vs DCIT (ITAT Delhi)

In a recent ruling Delhi Income Tax Appellate Tribunal (ITAT) in the case of Growth Avenue Securities Pvt. Ltd. (Taxpayer) v DCIT [ITA No. 3912/Del/2005] on the issue of inclusion of capital gains in book profits while computing Minimum Alternate Tax (MAT) under the provisions of the Indian Tax Law (ITL), where such capital gains are not ...

Read More

Amendment to Section 43B is retrospective -SC

CIT Vs. Alom Extrusions (Supreme Court of India)

Whether amendment to Section 43B (Section) of Income Tax Act,1961, enacted with effect from 1 April 2004, is retrospectively applicable? This amendment was introduced to rationalize the tax deduction of the employer's contribution to provident fund, superannuation fund, gratuity fund and such other funds for the welfare of employees (soc...

Read More

VAT Cir – 35T of 2009 – Rate of tax, Set-off on Timber for the period 1.04.2009 to 30.06.2009 – Clarification

Trade Cir. 35 T of 2009 (24/12/2009)

You are aware that rate of tax on timber was reduced to 4% in the Budget Speech of Hon’ble Finance Minister, Maharashtra for the year 2008-09. This reduction in rate has been made with retrospective effect from 1st April 2009. The Gazette Notification for the amendment was published on 1st July 2009....

Read More

Search Posts by Date

December 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
28293031