"03 June 2011" Archive

Explanatory Notes to Provisions of Finance Act, 2009 – Corrigendum to Circular No. 5/2010, dated 3-6-2010

Corrigendum to Circular No. 5/2010 (03/06/2010)

CORRIGENDUM NO. 5/2010 [F.NO.142/13/2010-SO(TPL)], DATED 30-9-2010- In partial modification of Circular No. 5 of 2010, dated June 3, 2010, (i) in para 37.5 (page 333) of the said Circular, for the lines- The above amendment has been made applicable with effect from 1st April, 2009 and will accordingly apply in respect of assessment year ...

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Notification No. 33/2011 – Income Tax Dated 3-6-2011

Notification No. 33/2011 - Income Tax (03/06/2011)

Notification No. 33/2011 - Income Tax Section 10(23AAA) Of The Income-Tax Act, 1961 - Exemptions - Income Received By Any Person On Behalf Of Fund Established For Welfare Of Employees Or Their Dependents - Notified Purposes/Conditions For Establishment Of Fund - Amendment In Notification No.S.O.672(E), Dated 27-7-1995...

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Capitalization of borrowing cost on prepayments made to acquire an asset

AS 16 Borrowing costs defines a 'qualifying asset' as an 'asset that necessarily takes a substantial period of time to get ready for its intended use or sale.' It also clarifies that ordinarily, a period of twelve months is considered as a substantial period of time unless a shorter or longer period can be justified on the basis of facts ...

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Posted Under: Income Tax |

Discounting charges on bills of exchange are not interest

DCIT Vs. Cargill Global Trading (I) (P) Limited (Delhi High Court)

Delhi High Court in the case of DCIT v. Cargill Global Trading (I) (P) Limited on the issue of whether discounting charges paid to a non-resident on discounting of bills of exchange (BEs) can be characterized as 'interest', liable for withholding held that the discounting charges are not in the nature of 'interest' since they are not paya...

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Summary of New Draft Rules for Preferential Allotment/ Private Placement in unlisted public companies

Under Section 81 (1A) of the Companies Act, a public company may make a preferential allotment of shares only by passing a special resolution in a general meeting. On 24 May 2011 the Ministry of Corporate Affairs has issued a new set of draft rules [Unlisted Public Companies (Preferential Allotment) Rules, 2011] to replace the Unlisted P...

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Posted Under: Income Tax |

Fema – RBI liberalises and rationalises Overseas Direct Investment Regulations

As a measure of providing operational flexibility to Indian Corporates investing / having investments abroad, the Reserve Bank of India has further liberalised and rationalised its Overseas Direct Investment Regulations vide A. P. (DIR Series) Circular No. 69 dated 27 May 2011as outlined below....

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Posted Under: Income Tax |

Existence of actual cross border transaction and motive to shift profits or evade taxes not necessary pre conditions for Transfer pricing provisions to apply

Tianjin Tianshi India Private Limited Vs. ITO, Ward 16(3) (ITAT Delhi)

The Delhi Bench of the Income-tax Appellate Tribunal in the case of Tianjin Tianshi India Private Limited v. ITO, held that existence of actual cross border transaction and motive to shift profits outside India or evade taxes in India are not necessary pre conditions for Transfer Pricing (TP) provisions to apply....

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Taxpayer not eligible to claim short stay exemption under the DTAA as the salary was paid directly by the Indian subsidiary

CIT Vs R. Rajgopal (Madras High Court)

Madras High Court has recently held in the case of CIT v R. Rajgopal [TS-222-HC-2011 (MAD)] that, as the salary was paid directly by the Indian subsidiary company, conditions of Article 16(2)(b) of the Indo-UK Treaty was not fulfilled. Accordingly, the taxpayer was not entitled to claim short stay exemption under Article 16(2) of the Indi...

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Govt to dedicate National Legal E-Library to nation on 15 August 2011

The ‘National Legal E-Library’ project of the Government is to be dedicated o the nation on 15 August 2011.Dr. M Veerappa Moily, the Minister of Law & Justice had proposed the need for the formulation of a ‘National Legal e-library’ for students and practitioners of Law on 6 December 2009, during his meeting with the vice chancell...

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Posted Under: Income Tax |

Companies (Cost Accounting Records) Rules, 2011

Notification No. G.S.R. 429(E) (03/06/2011)

Companies (Cost Accounting Records) Rules, 2011 These rules shall apply to every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or mining activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding f...

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