The Reserve Bank on Friday said persons charged with violation of the Foreign Exchange Management Act should apply for compounding, which is paying a sum to get relief from punitive action under the act, at the earliest.
The Comptroller and Auditor General of India (CAG) has come down heavily on the Tax Department for fostering “a perception that it has a tendency to opt for appeals even when it is on a weak wicket” and this “appealititis is more detrimental when applied on small taxpayers constituting a large chunk of appellants.”
The Bombay High Court on Friday dismissed the writ petition filed by Price Waterhouse challenging the jurisdiction of the Securities and Exchange Board to investigate the audit firm’s role in the multi-crore Satyam accounting fraud. Delivering the order, the Division Bench headed by Mr Justice P. B. Majmudar said, “It is not a situation where we can say that SEBI cannot proceed with its investigations.”
The Government of India (“GOI”) has released the draft Point of Taxation (for Services provided or Received in India) Rules, 2010 (“Draft Rules”) for public scrutiny, comments and proposals. To provide clarity in matters of levy and collection of service tax in cases of change of rate of service tax or imposition of service tax on new services and to To align payment of service tax with the Value Added Tax and Excise regimes for easier transition to Goods and services Tax.
CIT vs. Leena Ramachandran (Kerala High Court):-I-T- Sec 14A – assessee can claim deduction of interest paid on borrowed funds utilised for acquisition of shares only if shares are held as stock-in-trade and not investment: HC
The Finance Ministry has clarified that underwriting commission received by primary dealers while dealing in Government securities will not attract any service tax. This is because Government securities are not securities of a body corporate. Service tax is applicable on underwriting commission only for dealing in securities of a body corporate, the Revenue Department said in a circular issued here.
The investment in Unit Link Insurance Plans (ULIPs) is now all set to be governed by new set rules from the Insurance Regulatory and Development Authority (IRDA), to be incorporated in all ULIPs offered from next month. Accordingly, the three-year lock-in period for all unit-linked products will be increased to five years.
All companies, other than PSC, may issue at least 10 % of the shares or convertible debentures to the public in terms of offer document, if the post issue capital of the company, calculated at the offer price, is more than INR 4,000 Cr. Such companies shall bring the public shareholding to the level of at least 25% by increasing its public shareholding within a period of 3 years from the date of listing of securities.
CAG says: The contract was awarded to Maxxam who were the highest bidder. The OC says this is because they have vast experience & a professional staff. But that is irregular since the financial bids were opened only after considering the technical bids where all three firms were found at par by the OC. Giving contract to Maxxam caused an avoidable expenditure of Rs. 6.16 crore
THE Central Bureau of Investigation (CBI) has launched a massive search operation at the office premises and also the residence of Chief Commissioner of Central Excise, Bhopal, Mr Ram Prakash. It is learnt that the CBI had registered some cases against the officer some time back.
