Writing off the Inputs and Capital Goods for the stock account purpose in the books of accounts and reversal of CENVAT Credit has always been a matter of dispute between the assessees and the departmental authorities. This issue was clarified with the introduction of the Circular No. 645/36/2002-CX.,dated 16-7-2002 which has been explained in detail in this article. This issue was there, as it is. unresolved in its entirety and a new issue arose relating to the CENVAT burden in case of “Writing Off” of WIP and Finished goods in books of accounts. We in this article have made an endeavor to elucidate the issues relating to such “writing off” of value of goods and the CENVAT burden thereon.
In order to attain uniformity in procedures, the departmental officers have been instructed to issue Tax Clearance Certificate under the Maharashtra Value Added Tax Act, 2002 in the prescribed format. Further, format of the Profession Tax Clearance Certificate has also been prescribed.
In view of this situation, it is necessary that the procedure for the issuing of such certificates should be standardized. Such certificates are very often required to be produced before various government authorities, local bodies or other bodies etc. for the purpose of tender renewal of licenses etc.
SEBI, vide its press release dated December 10, 2009 had informed that ASBA facility shall be extended to all investors other than QIBs, in all public issues with effect from January 1, 2010. It was also informed that SEBI would be displaying names and other relevant details of banks (Self Certified Syndicate Banks (SCSBs) which will be authorized to accept ASBAs w.e.f. January 1, 2010, on the website www.sebi.gov.in .
The issue relating to the internal assignments allotted to the audit firms at the time of their appointment as statutory auditors has been examined afresh and it has been decided as under: “Audit firms should not undertake statutory audit assignment while they are associated with internal assignments in the bank during the same year. In case the firms are associated with internal assignment it should be ensured that they relinquish the internal assignment before accepting the statutory audit assignment during the year.”
The central trade unions will press for shelving of a proposal, that wants to tax withdrawals from savings schemes, including provident funds, at the pre-Budget meeting with Finance Minister Pranab Mukherjee on January 14. “(The) Finance Minister has invited trade unions for pre- budget consultations on January 14,” All India Trade Unions Congress Secretary D L Sachdev told media.
If something is not taxable at all, can one exempt it? Obviously not. If one does it, it is conceptually meaningless and even absurd. Taking an excise example, it is like saying that free air is exempt. If free air is not taxable, it cannot be exempted by the government. Precisely this type of conceptual error is visible in the exemption list suggested in the Report of the Task Force of the 13th Finance Commission .
The finance ministry has quietly initiated the process of opening up the income tax files of politicians belonging to all parties and tallying their income statements with the affidavits filed by them with the Election Commission during the 2009 parliamentary polls. Verification of the assets declared by the Lok Sabha candidates, many of whom have now become MPs and even ministers, will help the department to assess if they had paid appropriate taxes as declared in their statements with the two different authorities.
Two major tax reforms due by next year promise to reduce transaction costs for exporters significantly. A simpler income-tax regime will put more money in the hands of businesses, which can invest these as they consider best. The Goods and Services Tax (GST) regime will reduce complications and lower the compliance costs. Together, they will help Indian businesses get more competitive.
If we agree with this submission of the Id. A.R that as the ultimate tax liability of the assessee together with its AE does not vary even if the lower price is charged inter se, and hence the exercise done by the TPO be held as fruitless, then the provisions of section 92 to 92F would become redundant. Since the provisions require the determination of the ALP in an international transaction between the associated enterprises, it is imperative to undergo this exercise so as to prevent any loss to the coffers of India kitty. We therefore, reject this submission made on behalf of the assessee as devoid of any merit.
