Corporate India will have to shell out an additional Rs 21,000 crore if the 2010-11 Budget increases the excise duty by 2 per cent. A study by the Business Standard Research Bureau shows that 1,278 manufacturing companies (excluding oil and gas) accounted for 8.13 per cent, or Rs 86,314 crore of the gross revenue for the year 2008-09. So, a 2 per cent increase in the excise duty on gross sales of Rs 10,64,865 crore will fetch Rs 21,200 crore more revenue for the government.
This article summarizes the latest Press Release issued by the Cabinet Committee on Economic Affairs (CCEA) on proposals requiring prior approval of the Foreign Investment Promotion Board (FIPB) and thereafter CCEA approval. As per the existing policy, the recommendations of FIPB for any proposal falling under approval route and involving total project cost of more than INR 6000 Million were referred to CCEA for approval.
The assessee, a co-op credit society, was engaged in providing credit facilities to its members and also marketing the agricultural produce of its members. The assessee had surplus funds which it invested in short-term deposits with banks and govt securities. The question arose whether the said interest earned on the said deposits was “business profits”
Attention is invited to DGFT Policy Circular No. 1 dated 27.8.2009 to be read with Policy Circular No. 77 dated 31.03.09 on the above subject. Representations have been received from Trade and Industry to clarify as to whether the requirement of disbursement of minimum 15% stated at Sl. No. 3(c) of the Circular No. 1 dated 27.8.2009, is to be adhered for each consignment of precious metal being imported by the Nominated agencies (other than the designated banks) mentioned in Paragraph 4A.4 of FTP.
The CBDT issued a press release on 29th January stating that the first installment of FBT advance tax paid by tax payers for the current financial year (relevant to Assessment Year 2010-11) can be adjusted against the advance income-tax liability of the tax payer.
Speedy resolution of tax disputes and certainty in tax aspects has been a long-standing demand of foreign companies doing business with/in India. The Indian Government finally reacted to this demand and announced alternate dispute resolution mechanism in the form of a Dispute Resolution Panel (DRP) in the last budget.
It has come to the notice of the Institute that an email is being circulated amongst the members alleging the Institute and its Past President CA. Ved Jain for purchasing the computers against the practices of Good Governance in order to tarnish their image.
ITAT Ruling: The Tribunal held that the Transfer Pricing Officer cannot exceed his limitation by following any method to determine the arm’s length price which is not authorized by the Income Tax Act or the Income Tax Rules [CA Computer Associates Pvt. Ltd. V. DCIT (2010-TIOL-68-ITAT-MUM)].
The petitions maintained at Jaipur High Court & Andra High courts praying for restraining the new council to take over have been dismissed by the respective Honorable courts. Now there is no hurdle at present in taking over charge of the institute affairs from 12th February 2010.
The Thirteenth Finance Commission was constituted by the President on 13th November, 2007 to give recommendations on specified aspects of Centre State fiscal relations during 2010 -2015. The Commission has submitted its report covering all aspects of its mandate on 30thDecember, 2009.
