"24 April 2010" Archive

Mumbai Tribunal rules on computation of ‘duration test’ for determining existence of ‘Construction PE’

Mumbai Income Tax Appellate Tribunal (Tribunal) [2010-TIOL-195-ITAT-MUM] in the case of Valentine Maritime Mauritius Ltd (Taxpayer), on the taxability of certain contracts executed in India. The issue primarily focused on how the 'duration test' of nine months under the India-Mauritius Tax Treaty (Tax Treaty) should be applied for determi...

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Posted Under: Income Tax |

SC rules on credit entry in debtor’s account not necessary for bad debt write off deduction

The Taxpayer had reduced the amount debited to the Profit and Loss Account (P&L) from the Loans and Advances/Debtors Account (Debtors A/c) on the assets side of the Balance Sheet. Considering this, the SC held that such a treatment constituted actual write off for the purposes of the Section and it was not necessary to credit individual d...

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Posted Under: Income Tax |

IT department will send notice to MSM for no deduction of tds on 425-crore ‘facilitation fee’ paid to WSG’s Mauritius arm.

The income-tax (I-T) department is all set to send a notice to MSM, formerly known as Sony Entertainment Television (SET), in connection with the Rs 425-crore ‘facilitation fee’ it paid to World Sport Group ‘s (WSG) Mauritius arm....

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Posted Under: Income Tax |

Lalit will come out clean: KK Modi

GODFREY Phillips India chairman KK Modi on Thursday said he was confident his son, Lalit Modi, would come out unscathed from the ongoing investigations against him. “These are just charges that they (income-tax officials) have put on Lalit. I feel that Lalit will come out clean of all this. The charges levied by the income tax departmen...

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Posted Under: Income Tax |

CA, CS, ICWA asked to report suspicious fund movements directly to government

The government has asked chartered accountants, cost accountants and company secretaries to directly report to the home ministry cases of suspicious fund movements in an out of companies, as it looks to crack down on money laundering and terror funding....

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Posted Under: Income Tax |

Listing amnesty schemes for defaulting companies received enthusiastic response

(CSE), have received an enthusiastic response from many of the defaulting companies. The exchanges have managed to relist over 500 companies by waiving off penalties triggered by non-compliance with exchange listing rules. Regional stock exchanges (RSEs), like Ahmedabad, Pune and Bangalore, are also expected to follow suit in the coming m...

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Posted Under: Income Tax |

IPL investigation limited to financial irregularities and tax violations

Govt says investigations only into financial irregularities, no plan to get into business of sport. The Union government will limit its investigations to financial irregularities and tax violations by the Indian Premier League (IPL), its 10 franchisees, as well as the broadcaster. The government does not want to interfere in the functioni...

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Posted Under: Income Tax |

RBI’s role alleged in derivatives scam

An affidavit filed in the Supreme Court (SC) regarding a derivatives scam has alleged that regulatory agencies were part of a deep-rooted conspiracy that resulted in losses of Rs 25 lakh crore to the industry. The affidavit has been filed by an individual, Pravanjan Patra, in a case involving the Foreign Exchange Dealer’s Association of...

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Posted Under: Income Tax |

Bill to raise gratuity ceiling to Rs 10 lakh from current Rs 3,50,000 introduced in Lok Shabha

A bill to raise the ceiling of gratuity for employees to Rs one million (Rs 10 lakh) from the current level of Rs 3,50,000 was introduced in the Lok Sabha on Thursday. The Payment of Gratuity (Amendment) Bill 2010, introduced by Minister of State for Labour Harish Rawat, seeks to amend the Gratuity Act to enhance the amount of gratuity pa...

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Posted Under: Income Tax |

RBI may permit banks to engage individual to act as business correspondent

The Reserve Bank today said it may permit banks to engage any individual to act as business correspondent (BC), a move that will provide more flexibility to banks for taking services to rural areas. The central bank proposes to permit banks to engage any individual, including those operating Common Service Centres (CSCs), as BC, subject ...

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Posted Under: Income Tax |