"December, 2010" Archive

Prudential Guidelines on Capital Adequacy and Market Discipline – New Capital Adequacy Framework (NCAF) – Parallel Run and Prudential Floor

RBI/2010-11/348, DBOD.BP.BC.No.71 /21.06.001/2010-11 (31/12/2010)

It may be recalled that the BCBS had issued in December 2009 two consultative documents for public comments. It also undertook a comprehensive quantitative impact study (QIS) and top-down calibration of minimum capital requirement. At its July and September 2010 meetings, the GHOS broadly agreed on the overall design of the capital and li...

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RBI Notification – Security Issues and Risk mitigation measures related to Card Not present transactions

RBI/2010-11/347, DPSS.CO.No.1503/02.14.003/2010-2011 (31/12/2010)

The progress in implementing the directions has been under continuous monitoring since several stake holders are involved in implementing the service solutions. While considerable progress has been achieved in the matter, banks have been requesting to permit them to test the new system in a live scenario by providing a parallel run for a ...

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Notification No. 104/2010-Customs (N.T.) Dated: 31/12/2010

Notification No. 104/2010-Customs (N.T.), (31/12/2010)

In exercise of the powers conferred by clause (a) of sub-section (1) of section 7 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs hereby makes the following further amendment in the ...

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Notification No. 103/2010-Customs (N.T.) Dated: 31/12/2010

Notification No. 103/2010-Customs (N.T.) (31/12/2010)

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 ...

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Now apply for Importer Exporter Code code (IEC) online

Policy Circular No.10 (RE-2010)/2009-14 (31/12/2010)

Presently, the applications for obtaining an IEC are filed manually with the concerned Regional Authority of DGFT. The applications are filed in hard copy in the prescribed proforma with stipulated documents. The additional facility of filing “on-line” application for obtaining IEC will reduce the transaction cost and time for the ap...

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Investment in Non-SLR Securities- Non-Convertible Debentures (NCDs) of maturity up to one year

RBI/2010-11/349, DBOD.BP.BC.No.72/21.04.141/2010-11 (31/12/2010)

Please refer to circular DBOD.BP.BC.44/21.04.141/2003-04 dated November 12, 2003 on Prudential Guidelines on Banks’ Investment in Non-SLR Securities which, inter alia, advised the banks that they should not invest in Non-SLR securities of original maturity of less than one-year, other than Commercial Paper and Certificates of Deposits w...

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Provision of Budget for balance funds under Scheme of Rupees Export Credit Subvention to Scheduled Commercial Banks – Im

The Cabinet Committee on Economic Affairs today approved provision of Rs. 404 crore and also approved an addition amount of Rs. 996 crore (after adjustment of Rs.404 crore from the requirement of Rs. 1400 crore as advised by Department of Financial S...

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Posted Under: Fema / RBI | ,

U/s 254(2) Tribunal entitled to recall order in entirety to rectify apparent mistake

Lachman Dass Bhatia Hingwala (P) Ltd. Vs ACIT (Delhi High Court)

Lachman Dass Bhatia Hingwala (P) Ltd. v. ACIT (Delhi HC) - On this issue, the Delhi High Court observed that the justification of an order passed by the Tribunal recalling its own order is required to be tested on the basis of the law laid down by the Apex Court in Honda Siel Power Products Ltd. v. CIT (2007) 295 ITR 466, dealing with th...

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Facilitation for export of cotton in terms of Policy Circular No. 09 dated 29.12.2010

F.No : 01/91/180/1194/AM10/EC (31/12/2010)

This is to bring to the notice of all concerned that the officials of Directorate General of Foreign Trade will be available in the office from 11.00 AM to 5.00 PM on 01.01.2011 and 02.01.2011 to address the queries or for clarifying any doubts....

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Income Tax Dept detects tax evasion of Rs 1,900 crore

Duty evasion to the tune of more than Rs 1,900 crore was detected today during raids conducted by commercial tax department on gutkha and pan masala units in different parts of Uttar Pradesh, an official here said....

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Posted Under: Fema / RBI |

India opposes two per cent tax on foreign procurement imposed by US

Government today said the recent US legislation imposing a two per cent tax on foreign procurement and extending the present visa fee till 2015 will create a bias against the Indian IT sector. The US government has recently passed a bill --James Zadroga 9/11 Health and Compensation Act-- that will impose two per cent tax on the US govern...

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Posted Under: Fema / RBI |

ICAI Convocation (II)-2010

The Convocation for the newly enrolled Members for the period from March, 2010 to August, 2010 will be held as per schedule given below with a view to inculcate a sense of belongingness and attachment with the Institute. ...

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Posted Under: Fema / RBI |

50 Paise Coins to be Minimum Denomination Coin Acceptable for Transaction from June 30, 2011

The Central Government, Ministry of Finance has notified on December 20, 2010 to call in from circulation the coins of denomination of 25 paise and below, issued from time to time, with effect from June 30, 2011. From this date, these coins shall cea...

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Posted Under: Fema / RBI |

Taxing times ahead for High Net worth Individuals

Early this month, FM Pranab Mukherjee had okayed the setting up of a high-level multi-disciplinary panel to study black money at home and abroad, and another panel to suggest counter-measures against tax havens. These actions are likely to reflect in the Budget for 2011-12....

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Posted Under: Fema / RBI |

Govt likely to announce FDI policy on LLPs in January 2011

The government is likely to usher in the New Year with some important policy reforms. Important foreign direct investment (FDI) policy announcements is likely to be made in January 2011, reports sources. It is learnt that FDI policy is likely to be...

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Posted Under: Fema / RBI |

Citigroup investigating transactions at India branch

U.S. bank Citigroup said on Tuesday it was investigating a set of suspicious transactions based on what it said were forged documents by an employee at a branch in India. The bank did not say how much money was involved, but a person familiar with th...

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Posted Under: Fema / RBI |

Cricketer Harbhajan and Yuvraj defaulted on payment of service tax

Cricketer Harbhajan Singh, currently spinning misery on the South African team, seems to have been caught by the central excise and service tax department for defaulting on service tax. The department has found that he owes nearly Rs 1 crore as servi...

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Posted Under: Fema / RBI |

Income Tax Department suspects tax evasion in derivative transactions

The revenue department of the finance ministry estimates that Corporate India could have evaded over Rs 20,000 crore in taxes in 2007-08 had it shown mark-to-market losses on forex derivative transactions. According to the income tax department, in t...

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Posted Under: Fema / RBI |

CBI detains senior Joint Commissioner of Income tax and an inspector for alleged graft

CBI yesterday detained a Joint Commissioner of Income tax and an inspector of the Income Tax department here in an alleged corruption case. CBI sources said Arun Gurjar, a 1999 batch Indian Revenue Service officer, and Baljit Singh, inspector, were detained following a complaint from a grain merchant....

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Posted Under: Fema / RBI |

Notification No. 137/2010–Customs dated 31.12.2010

Notification No. 137/2010–Customs (31/12/2010)

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 amendments in the notification of the Government of India in the Ministry of Finance (D...

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Notification No. 136/2010-Customs Dated: 31/12/2010

Notification No. 136/2010-Customs (31/12/2010)

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 ...

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Insurance – Recognition of Surplus arising in non-participating funds as profit/loss in the Profit & Loss Account

CIRCULAR NO. IRDA/F&A/CIR/217/12/2010, (27/12/2010)

CIRCULAR NO. IRDA/F&A/CIR/217/12/2010, DATED 27-12-2010 Authority has observed that there is no uniform approach followed by the insurers for transfer of the surplus to the Profit & Loss Account. A few of the insurers are doing it on quarterly basis while a few are doing on yearly basis. In view of the same, it is […]...

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Notification No. 135/2010-Customs Dated: 31/12/2010

Notification No. 135/2010-Customs (31/12/2010)

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 amendments in the notification of the Government of India in the Ministry of Finance (Departmen...

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Position paper on Identification of tax issues arising out of convergence with IFRS

A Group for identifying direct tax issues arising from convergence of Indian Accounting Standards (IAS) with International Financial Reporting Standards (Ind AS) was constituted by the ICAI, which comprised both of members of the Council of the Insti...

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Posted Under: Fema / RBI |

FICCI Call to Defer Compliance Date of IFRS from April 1, 2011

FICCI has urged the Government to defer the date of implementation of compliance with IFRS (International Financial Reporting Standards) by India Inc. from April 1, 2011 to a date when companies are better equipped to deal with the new envisaged acco...

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Posted Under: Fema / RBI |

China's top auditor to serve as chairman of UN Board of Auditor

Liu Jiayi, auditor-general of China's National Audit Office (NAO), will take up the position as chairman of the United Nations Board of Auditors (UNBA) starting Jan.1, 2011, the NAO announced in Beijing Wednesday. Liu, who was appointed as auditor-ge...

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Posted Under: Fema / RBI |

SEBI – Master Circular on Administration of Stock Exchanges, Arbitration in recognised Stock Exchanges and Stock Exchanges/trading platform for Small & Medium Enterprises including guidelines for Market Makers

Masyer Circular No. MRD/DSA/SE/43/2010 (31/12/2010)

This Master Circular consolidates the circulars/directions issued by SEBI in this regard up to December 31, 2010 as listed in the Schedule and shall come into force from the date of its issue....

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SEBI – Master Circular on Matters relating to Exchange Traded Derivatives

Master Circular No. DNPD/7/2010 (31/12/2010)

This master circular seeks to consolidate all the applicable circulars issued on the subject as on date. The list of previous circulars on the subject is referred to in Annexure VII....

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SEBI issues Master Circular for Stock Exchange – Cash Market

Master Circular No.. MRD/DP/42/2010 (31/12/2010)

Securities and Exchange Board of India (SEBI) has been issuing various circulars from time to time. In order to enable the users to have an access to all the applicable circulars at one place, Master Circular for Stock Exchange/ Cash Market has been prepared....

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SEBI issues Master Circular for Depositories

Master Circular No. MRD/DP/41/2010 (31/12/2010)

Securities and Exchange Board of India (SEBI) has been issuing various circulars/directions from time to time. In order to enable the users to have an access to all the applicable circulars/directions at one place, Master Circular for Depositories has been prepared....

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Johnny and Service Tax Refund (Series-II) Part VI – “Self Certification – An Inflexible Condition”

In continuation of previous articles, elaborating the difficulties in getting the refund claim under different conditions, we in this article are unveiling the problems existing in the Service tax refund mechanism under condition of Certification of Self Certification. This complete scenario is being elaborated with the means of humorous ...

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Posted Under: Fema / RBI |

NC Notification No. 97/2010-Income Tax Dated 30/12/2010

NC Notification No. 97/2010-Income Tax (30/12/2010)

NC Notification No. 97/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 1501(E), dated 7th September, 2007, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial numb...

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NC Notification No. 96/2010-Income Tax Dated 30/12/2010

NC Notification No. 96/2010-Income Tax (30/12/2010)

NC Notification No. 96/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 1794(E), dated 23rd October, 2007, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial numbe...

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NC Notification No. 95/2010-Income Tax Dated 30/12/2010

NC Notification No. 95/2010-Income Tax (30/12/2010)

NC Notification No. 95/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 737(E), dated 13th March, 2009, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial number 1...

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NC Notification No. 94/2010-Income Tax Dated 30/12/2010

NC Notification No. 94/2010-Income Tax (30/12/2010)

NC Notification No. 94/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 402(E), dated the 3rd May, 1995, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had ...

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NC Notification No. 93/2010-Income Tax Dated 30/12/2010

NC Notification No. 93/2010-Income Tax (30/12/2010)

NC Notification No. 93/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 832(E), dated the 18th September, 1998, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Governme...

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NC Notification No. 92/2010-Income Tax Dated 30/12/2010

NC Notification No. 92/2010-Income Tax (30/12/2010)

NC Notification No. 92/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 399(E), dated the 6th June, 1996, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had...

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NC Notification No. 91/2010-Income Tax Dated 30/12/2010

NC Notification No. 91/2010-Income Tax (30/12/2010)

NC Notification No. 91/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 232(E), dated the 24th February, 2004, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Governmen...

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NC Notification No. 90/2010-Income Tax Dated 30/12/2010

NC Notification No. 90/2010-Income Tax (30/12/2010)

NC Notification No. 90/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 458(E), dated the 30th March, 2006, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial numb...

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NC Notification No. 89/2010-Income Tax Dated 30/12/2010

NC Notification No. 89/2010-Income Tax (30/12/2010)

NC Notification No. 89/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 839(E), dated the 22nd November, 1994, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Governmen...

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NC Notification No. 88/2010-Income Tax Dated 30/12/2010

NC Notification No. 88/2010-Income Tax (30/12/2010)

NC Notification No. 88/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 466(E), dated 29th March, 2007, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial number 2...

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NC Notification No. 87/2010-Income Tax Dated 30/12/2010

NC Notification No. 87/2010-Income Tax (30/12/2010)

NC Notification No. 87/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 611(E), dated the 23rd August, 1994, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government ...

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NC Notification No. 86/2010-Income Tax Dated 30/12/2010

NC Notification No. 86/2010-Income Tax (30/12/2010)

NC Notification No. 86/2010-Income Tax WHEREAS by notification of the Government of India in the Ministry of Finance (Department of Revenue) number S.O. 466(E), dated 29th March, 2007, issued under clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial number 1...

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Revised AS 7 – ‘Construction Contract’ is applicable to only contractors and not to builders and real estate consultants

Unique Enterprises Vs ITO (ITAT Mumbai)

Revised Accounting Standard 7 – Construction Contract is applicable to only contractors and not to builders and real estate consultants. Accordingly, the Project Completion Method consistently followed by the taxpayer for recognising revenue in the books of accounts cannot be regarded as an unreasonable....

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Gujarat High Court decision on the demerger scheme between Vodafone Essar group companies

Vodafone Essar Gujarat Ltd. (Gujarat High Court)

In a recent ruling Gujarat High Court (HC) in the case of Vodafone Essar Gujarat Ltd (hereinafter referred to as VEG/ Transferor/ Tax Payer) [Company petition no. 183 of 2009] on the issue of whether a scheme of demerger of infrastructure assets between group companies for 'Nil' consideration could be sanctioned under the provisions of t...

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Chartered Accountant’s Casino Empire in Nepal may crumble

A billion-dollar gambling industry built up in Nepal by a chartered accountant from New Delhi, which encompassed seven casinos and employed nearly 7,000 people, has been left tottering with lawmakers Tuesday ordering the government to scrap their li...

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Posted Under: Fema / RBI |

Wipro asked to deposit Rs 24 crore as tax on re-export of software

The Karnataka high court has directed IT bellwether Wipro Ltd to deposit Rs 24 crore (Rs 240 million) by Wednesday evening in a case of tax on re-export of software, a company official admitted. As the company did not comply with the court's order of...

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Posted Under: Fema / RBI |

Government mandates cost audits for over 100 companies for financial year 2010-2011

The government has mandated cost audits for over 100 companies, covering a host of sectors including pharmaceuticals , fertilisers , steel and petroleum . Cost audit, which is a system of government scrutiny into a company's production cost and profi...

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Posted Under: Fema / RBI |

Display of logo for promoting a brand not taxable under ‘Business Auxiliary Services’

M/s Jetlite (India) Limited Vs CCE (CESTAT Delhi)

Display of logo for promoting a brand not taxable under Business Auxiliary Services but Promotion of Brand of Goods, services, events, business entity, etc. w.e.f. 01.07.2010....

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ICAI not happy with corporate sector's demand for deferring implementation of IFRS

The accounting regulator, Institute of Chartered Accountants of India (ICAI), has taken strong exception to the corporate sector's demand for deferring the implementation of the International Financial Reporting Standards (IFRS). It feels that the ac...

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Posted Under: Fema / RBI |

Recognition of Chartered Accountancy Qualification by IIM Kozhikode for Registration to Doctoral Programme

We are pleased to inform you that the IIM Kozhikode has recognized Chartered Accountancy qualification as an eligibility to pursue their Doctoral programme i.e. Fellow Programme in Management. We invite members interested in pursuing Doctoral progr...

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Posted Under: Fema / RBI |

US may impose estate tax on NRIs

If ever there is anything like a good year to die in, it is 2010 — but only if you are a millionaire US citizen. America’s ‘death tax’, which was repealed in 2010, is set to be introduced in the New Year. Formally called the estate tax, it is levied ...

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Posted Under: Fema / RBI |

Rejection of E-TDS / TCS Return– Common errors and course of action for Regular and Correction Returns

Rejection of E-TDS / TCS Return – Common errors and course of action for Regular and Correction Returns a. What is course of action in case a regular statement is rejected? A. Please refer to Course of action – regular rejection given below for the...

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Posted Under: Fema / RBI |

Notification No. 102/2010-Customs (N.T.) Dated: 29/12/2010

Notification No. 102/2010-Customs (N.T.) (29/12/2010)

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...

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Currency ETF-The New Diversification

With Global imbalances on the never ending rise and huge budget deficits of the Developed economies currency fluctuation is the new tremor of the quakes being felt. In other words in the coming year of 2011 we will find Europe and US going for massive budget cuts and imposition of higher rate of taxes. This will create burden and slower g...

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Posted Under: Fema / RBI |

Complete your KYC formalities before Jan 1, 2011

KYC-Compliance: CDSL Ventures (CVL), a wholly-owned subsidiary of Central Depository Services-India (CDSL), has been appointed by the mutual fund industry to do KYC verification of investors. So, an investor needs to submit the following mandatory do...

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Posted Under: Fema / RBI |

CVC seeks report from MCD on 30 graft complaints

The Central Vigilance Commission has directed the Municipal Corporation of Delhi to investigate and report its findings on a total of 30 complaints of alleged corruption. Besides it has imposed major penalty against 138 officials of several central g...

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Posted Under: Fema / RBI |

HUFs can not continue PPF after 15 years

Hindu undivided families (HUFs) will now have to mandatorily exit from the public provident fund (PPF) on completion of 15 years. The move is aimed at checking misuse as several people were investing in PPF to earn 8% tax-free return as an individual...

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Posted Under: Fema / RBI |

Work for GST, Not Against It

The government’s move to offer fresh excise duty exemptions to companies already enjoying a tax holiday in Himachal Pradesh and Uttarakhand is blatantly wrong. It does damage to the goal of having a harmonised goods and services tax, to the economic ...

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Posted Under: Fema / RBI |

TRAI likely to postpone implementation of norms for unsolicited calls

Lack of preparedness on the part of mobile operators may force the Telecom Regulatory Authority of India (TRAI) to extend its January 1, 2011 deadline to begin its crackdown against telemarketing companies for making unsolicited calls and sending SMS...

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Posted Under: Fema / RBI |

Corrigendum to Notification No. 14(RE-2010)/2009-14 dated 22.12.2010 regarding export of cotton yarn

Notification No. 15(RE-2010)/2009-14 (29/12/2010)

However, Exporters who have obtained Registration Certificate from Textile Commissioner, Mumbai on or before 1st December, 2010 would be permitted to export Cotton Yarn within the quantity limit for which such registration certificate has been issued and within the validity of such registered contract...

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Income tax department notice to Satyam to get accounts for years 2002/03 and 2007/08 audited

Satyam Computer Services Ltd. said Tuesday it has received a letter from India's tax department requesting it to get its accounts audited for the tax assessment years of 2002-2003 and 2007-2008. No further details were provided in Satyam's filing to ...

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Posted Under: Fema / RBI |

Conditions and modalities for registration of contracts of cotton with DGFT

Policy Circular No. 09 (RE-2010)/2009-14 (29/12/2010)

Attention is invited to Notification No. 12 (RE-2010)/2009-14 dated 16.12.2010 issued by this Office whereby registration of contracts for export of cotton under ITC(HS) Code 5201,5202 & 5203 will be done by DGFT and Policy Circular No. 6(RE-2010)/2009-14 dated 16.12.2010, through which it was informed that modalities for registration of ...

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Monetary and Credit Information Review

Cash reserve ratio (CRR) of scheduled banks increased by 75 basis points from 5.0 per cent to 5.75 per cent of their net demand and time liabilities (NDTL) in two stages. The first stage of 50 basis points increased from the fortnight beginning Febru...

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Posted Under: Fema / RBI |

Lead Bank Scheme – Conduct of State Level Bankers’ Committee (SLBC)/Union Territory Level Bankers’ Committee (UTLBC) meetings

RBI/2010-11/343, RPCD.CO.LBS.BC.No.44 /02.19.10/2010-11 (29/12/2010)

Of late, it has been observed that these meetings are neither conducted in time nor the agenda is circulated in advance. Further, the level of participation in the meetings is not upto the prescribed level undermining the prime objective of holding the meetings. A need is, therefore, felt to streamline and strengthen the system of holding...

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Special Economic Zones (Sixth Amendment) Rules, 2010 – Amendment in Form “C”

NOTIFICATION NO. G.S.R. 982(E) (16/12/2010)

NOTIFICATION NO. G.S.R. 982(E), DATED 16-12-2010 In exercise of the powers conferred by section 55 of the Special Economic Zone Act, 2005 (28 of 2005), the Central Government hereby makes the following rules further to amend the Special Economic Zones Rules, 2006, namely:— 1. (i) These rules may be called the Special Economic Zones (Six...

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SEBI – Activity schedule for Auction Session

Circular No. MRD/DP/ 39 /2010 (28/12/2010)

This circular is being issued in exercise of powers conferred under section 11(1) of Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market....

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Commissioner of Central Excise Commissionerate Versus M/s Cool Tech. Corporation ( High Court Of Punjab and Haryana)

Commissioner of Central Excise Commissionerate Vs M/s Cool Tech. Corporation (Punjab and Haryana High Court)

This appeal has been preferred by the revenue under Section 35G of the Central Excise Act, 1944 read with Section 83 of the Finance Act , 1994 against order dated 22.3.2010 passed by the Customs Excise and Service Tax Appellate Tribunal, New Delhi proposing following substantial question of law...

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service tax – If payment is made before adjudication, the quantum of penalty has to be restricted to 25%

Commissioner of Central Excise Vs M/s Bajaj Travels Limited. (Punjab and Haryana High Court)

his appeal has been preferred by the revenue under Section 35G of the Cental Excise Act, 1944 (for short, the Act) against the order of the Customs, Central Excise & Service Tax Appellate Tribunal, New Delhi dated 19.6.2009 (Annexure A-3) proposing to raise following substantial question of law...

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Directions for opening and operation of Accounts and settlement of payment for electronic payment transactions involving intermediaries

RBI/2010-11/339, DPSS.CO.OSD. No. 1448/06.08.001/2010-2011 (28/12/2010)

In continuation of the above directions, please note to forward a covering letter from your bank certifying that the quarterly certificate from the concurrent auditor being furnished to the Reserve Bank of India on the operations of the intermediaries' accounts includes all the intermediaries accounts maintained with your bank....

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Comprehensive Guidelines on Over the Counter (OTC) Foreign Exchange Derivatives and Overseas Hedging of Commodity Price and Freight Risks

RBI/2010-11/338 A.P. (DIR Series) Circular No. 32 (28/12/2010)

In the light of developments in the domestic and international financial markets, the extant guidelines on OTC foreign exchange derivatives, commodity price and freight risks have been revised in consultation with the banks, corporates and other stake holders. The Comprehensive Guidelines on Foreign Exchange Derivatives and Overseas Hedgi...

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ICAI Extends last date for complying with CPE hours credit requirement to 31st March, 2011

Extension of last date for complying with the requirements of CPE hours credit from 31st December, 2010 to 31st March, 2011 This is for kind information of the members that the Council of the Institute has decided to extend the CPE Block period of ...

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Posted Under: Fema / RBI | ,

ICAI extends Last Date for Receipt of Nomination Form for ICAI Awards

‘ICAI Awards 2010 Corporate CA Achiever’s Acclaim’ have been instituted to honour the contributions and achievements of CAs who are in Industry. To facilitate the nominations the last date of receipt of the nomination forms has been extended from 23r...

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Posted Under: Fema / RBI |

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

Circular No. MRD/DP/ 38 /2010 (28/12/2010)

At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode before shifting the trading in the securities of the company from TFTS to normal Rolling Settlement. For this purpose, the listed companies shall obtain a certificate from its Registrar and Transfer Agent....

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Amending Notification No. 94/2005-Customs, dated the 20th October, 2005 regarding continuation of anti-dumping duty on imports of certain Rubber Chemicals

Notification No.132/2010-Customs (28/12/2010)

G.S.R. (E). -Whereas, the designated authority vide notification No. 15/14/2009-DGAD, dated the 12th May,2010, published in the Gazette of India, Extraordinary, Part I, Section 1 dated the 13th May,2010, had initiated review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as...

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RBI asks banks to add extra security layer for phone banking

Banks will ask for an additional password from their credit card customers from the new year for any transactions conducted over phone, subsequent to a Reserve Bank direction for making phone banking more secure. As per the RBI guideline, all the ban...

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Posted Under: Fema / RBI |

Anti-dumping duty imposed on Chinese telecom equipments

NA (28/12/2010)

India has imposed anti-dumping duty of up to 266 per cent on imports of an IT equipment also used in the telecom sector to guard the domestic industry from cheap Chinese and Israeli shipments. Revenue department says the restrictive duty on import of...

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SEBI challenges CIC order to disclose probe in RIL

SEBI has challenged in the Bombay High Court an order of the Central Information Commission to make public action taken by it on a complaint against Reliance Industries Ltd in the year 2000 on the sale of 12 crore shares for the benefit of its promot...

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Posted Under: Fema / RBI | ,

Achievements of Ministry of Labour and Employment in the year 2010

The Ministry of Labour & Employment has made serious efforts to implement various provisions mandated relating to enhancement of the welfare and well-being of farmers, farm labour and workers particularly those in the unorganized sector, ensuring the...

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Posted Under: Fema / RBI |

I-T department unearths tax evasion of around Rs 86 crore

Income tax sleuths unearthed under-invoicing and tax evasion of around Rs 86 crore by Obulapuram Mining Company (OMC), run by Karnataka's Reddy brothers and also their trusted confidante and state health minister B Sriramulu. The scam that can furthe...

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Posted Under: Fema / RBI |

Collection of Statistics on pre-paid instruments

RBI/2010-11/342, DPSS.CO.OSD. No. 1381 /06.08.001/ 2010-2011, (27/12/2010)

Authorized entities have hitherto been submitting information on the volume and value of transactions, to the Reserve Bank of India. In order to bring in uniformity and facilitate straight through processing, a format in Excel has been prepared and is forwarded herewith. All authorised entities are advised to furnish the data related to t...

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Issuance and operation of Prepaid Payment Instruments in India – Auditor Certificate on the balances in Escrow account

RBI/2010-11/341, DPSS.CO.OSD. No. 1445 /06.12.001/ 2010-2011 (27/12/2010)

It is observed that the authorised entities are not adhering to the prescribed time frame laid down for submission of Auditor’s certificate. All authorised entities are advised to furnish a quarterly certificate on the balances held in the Escrow account in accordance with the above Guidelines, from an auditor within a fortnight from t...

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Tribunal has the jurisdiction to entertain a fresh plea on subject matter of appeal

ACIT Vs Amarnath Reddy (ITAT Chennai)

The facts in brief leading to the controversy are that unaccounted commission earned by the assessee was unearthed during the search. In his return of income, the assessee claimed expenditure incurred to earn the said income which the Assessing Officer disallowed under sec.69C of the Act. The CIT (A) deleted this disallowance by observing...

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RBI Directions for submission of system audit reports from CISA qualified Auditor

RBI/2010-11/340 DPSS.CO.OSD. No. 1444/06.11.001/2010-2011 (27/12/2010)

All authorised entities are advised to furnish their respective system audit reports from a CISA qualified auditor on an annual basis. Authorised entities which follow an April-March financial year, the system audit report should be submitted within two months i.e. by 1st June of that year. Authorised entities, which follow a calendar yea...

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Unexplained expenditure u/s. 69C and Addition under s. 41(1) on the ground that there was remission or cessation of liability

Commissioner of Income Tax Vs M/s Radhika Creation (Delhi High Court)

Unexplained expenditure u/s. 69C :- Sec. 69C refers to the source of the expenditure and not to the expenditure itself; further, in the absence of any material found during the search, addition of expenditure would not be justified in the block assessment....

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Capital or revenue expenditure- Market research expenses and Severance cost of employees vis-à-vis closure of business

KJS India (P) Ltd. Vs. DCIT

Assessee having suspended only its manufacturing activity and not closed down its trading activity, it is not a case of closure of business and, therefore, expenses incurred by it towards severance cost of employees is allowable as revenue expenditur...

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Posted Under: Fema / RBI |

Analysis of recent service tax Notifications including Exemption to canned software rescinded

This article summarizes the recent Service Tax Notifications dated 21 December 2010 issued by the GOI including the withdrawal of exemption from payment of service tax under ‘information technology software service’ for import of single user canned o...

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Posted Under: Fema / RBI |

Issuance of Non-Convertible Debentures (NCDs)- IDMD.PCD.25 /14.03.03/ 2010-11

RBI/2010-11/333, IDMD.PCD.25 /14.03.03/ 2010-11 (27/12/2010)

Raising funds through issuance of NCDs in multiple tranches based on a single valid rating for the consolidated amount, each tranche need not be separately certified by the auditor (in compliance with section 8.2 of the NCD Directions). However, where the issuer obtains a separate/fresh rating for an issuance, such issuance must be backed...

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StCBs/DCCBs – Operation of bank accounts and money mules- RPCD.CO.RCB.AML.BC. No.39/07.40.00/ 2010-11

RBI/2010-11/334 RPCD.CO.RCB.AML.BC. No.39/07.40.00/ 2010-11 (27/12/2010)

The operations of such mule accounts can be minimised if banks follow the guidelines contained in various RBI Circulars on Know Your Customer (KYC) norms/Anti-Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)/ Obligation of banks under PMLA, 2002. State and central Co-operative Banks are, therefore, advised to st...

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Asian Clearing Union (ACU) Mechanism – Indo – Iran trade – A.P. (DIR Series) Circular No. 31

RBI/2010-11/335 A.P. (DIR Series) Circular No. 31 (27/12/2010)

In view of the difficulties being experienced by importers / exporters in payments to /receipts from Iran, the extant provisions have been reviewed and it has been decided that all eligible current account transactions including trade transactions with Iran should be settled in any permitted currency outside the ACU mechanism until furth...

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Public Provident Fund Scheme, 1968 Amendment to Section 9(3) of Scheme

RBI/2010-11/344 DGBA. CDD. No. H-4311/15.02.001/2010-11 (27/12/2010)

Provided further that an account opened on behalf of a Hindu Undivided Family prior to the 13th day of May, 2005, shall be closed after expiry of fifteen years from the end of the year in which the initial subscription was made and the entire amount standing at the credit of the subscriber shall be refunded, after making adjustments, if a...

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Banks Can Give up to 90 Percent on Home Loans not exceeding Rs. Rs 20 Lakh

Banks can give up to 90 per cent of the value of the property in case of small value home loans up to Rs 20 lakh. But in case of loans above Rs 20 lakh, the loan to value ratio (LTV) should not exceed 80 per cent, said the Reserve Bank of India, in a...

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Posted Under: Fema / RBI |

Financial Position of Appellant cannot be the sole criteria for grant of stay

M/s. KEC International Limited Vs Addl. Commissioner of Income Tax (ITAT Mumbai)

The Court has made it clear that though there are no hard and fast rules regarding grant of stay, prudence, discretion and circumspection are called for and stay should not be granted as a matter of course. Considerations about balance of convenience, question of irreparable injury and implications to public interest have to be borne in m...

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RBI cuts SLR for RRBs to 24 per cent

RBI/ 2010-11/332, RPCD.CO.RRB. BC. No. 43 / 03.05.28(B)/ 2010-11 (27/12/2010)

The Reserve Bank today announced reduction of Statutory Liquidity Ratio (SLR), requirement for lenders to keep a portion of deposits in government securities, cash and gold, by one percentage point to 24 per cent for regional rural banks (RRBs).This ...

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Kerala HC-No coercive recovery if first appeal ready for hearing

M/s. Hotel Leela Venture Ltd Vs Agricultural Income Tax & Commercial (Kerala High Court)

The assessee filed appeals before the Commissioner (Appeals) against the assessment orders for AYs 2004-05 to 2008-09. Though the appeals were ripe for hearing and the appellate authority had already posted the appeals for hearing on different dates, the AO without considering the pendency of the appeals issued demand notices...

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Service Tax- FAQ on CENVAT Credit Scheme

The CENVAT Credit Rules, 2004, introduced with effect from 10.9.2004, provides for availment of the credit of the Service Tax paid on the input services/Central Excise duties paid on inputs/capital goods/Additional Customs duty leviable under section...

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Posted Under: Fema / RBI |

Dispute Resolution Panel should pass a reasoned order/ directions assigning cogent and germane reasons

Delhi High Court held that the directions passed by the Dispute Resolution Panel (DRY), which is a quasi judicial body, should be well reasoned containing cogent and germane reasons and remanded back the non-speaking direction of the DRY for fresh adjudication....

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Posted Under: Fema / RBI |

Case remanded back to Dispute Resolution Panel (DRP) by ITAT Delhi as DRP directions found to be very laconic and non-speaking

GAP International Sourcing India Private Limited Vs Deputy Commissioner of Income Tax (Delhi High Court)

Recently, the Delhi bench of the Income-tax Appellate Tribunal remitted back the matter to the Disputes Resolution Panel (DRP) for reassessment since the directions of the DRP were found to be very laconic and non-speaking. The Tribunal, while setting aside such directions commented that the DRP has not considered the voluminous submissio...

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Taxability of packaged or canned software

Excise Duty :- Notification No. 30/2010- Central Excise (N. T) dated December 21, 2010 has been issued for levy of excise duty on packaged or canned software on Retail Sale Price basis. • Entry 93A has been inserted in Notification No. 49...

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Posted Under: Fema / RBI |

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