The billions of rupees stuck in courts and rising tax litigation have invited the attention of finance minister Pranab Mukherjee as he pushes through a major reform in the country’s tax regime.
According to the new rules on ‘time of supply’, service tax will also be levied at the point of raising invoice. At present, service tax is charged only when the amount is received. However, it has been proposed in the new rules that it be levied when the consideration is received or when the invoice is raised, whichever is earlier.
It will soon be easier to get specific details of Indians having unaccounted wealth in secret Swiss bank accounts. The Union Cabinet is likely to clear on Thursday, the amended Double Taxation Avoidance Agreement (DTAA) with Switzerland, official sources told to reporters.
The finance minister has set up two panels, one each for direct and indirect taxes, to draw up a road map to reduce rising litigation, asking them to submit a report within a month.
Highlights of E- Filing Season Assessment Year 2010-11/ Financial Year 2009-2010 (up to 04/08/2010). Please see updated “Quick Statistics” for E-Filing of Income Tax Returns upto 4th August 2010.
In exercise of the powers conferred by Section 5 read with Section 3(2) of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) and Para 1.3 and Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following amendment in Notification No. 40/2009-14 dated 12.05.2010 read with Notification No. 33(RE-2007)/2004-2009 dated 08.10.2007, as amended from time to time (pertaining to prohibition on export of wheat and wheat products).
With immediate effect, the existing entry at para (2) & (3) of Notification No. 42 /2009-2014 dated 18.05.2010 is substituted to read as under:-“2.1.13 the ban on export of Non-Basmati rice shall also not be applicable on export of 3 lakh tonnes of parboiled non-Basmati rice to Bangladesh from the Central Pool at prevalent economic cost through FCI.”
Indian Premier League (IPL) involves city teams managed by private entities. Ministry of Youth Affairs & Sports does not deal with IPL because the national team does not participate in the IPL tournaments. However, Ministry of Finance ( Deptt. Of Revenue has informed that Income Tax Department is conducting investigations to ascertain the source of investments, taxability of the income earned, taxability of the award of media rights and other violations of Direct Tax laws.
Net direct tax collections during first four months of the present fiscal (up to July 2010) stood at Rs.85,647 crore, up from Rs.73,990 crore in the same period last fiscal, registering a growth of 15.75 percent. Growth in Corporate Income Tax was 20.95 percent (Rs.51,627 crore as against Rs.42,685 crore), while Personal Income Tax (including STT, and residual FBT and BCTT) grew at 8.51 percent (Rs.33,940 crore as against Rs.31,279 crore).
The Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) disregarded the Finance Minister’s suggestion to “jointly seek a binding legal mandate from an appropriate High Court” on which body had jurisdiction over Unit Linked Insurance Plans (ULIPs). That is why the Government had to issue an Ordinance on the ULIPs issue. This was stated by the Finance Minister, Mr Pranab Mukherjee, in the Lok Sabha on Monday.
