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In our considered view, this is a very important aspect of the matter inasmuch as if the assessee has incurred a loss on its entire project, whether onshore or offshore, the mere fact that the assessee has incurred a loss on onshore activities cannot be reason enough to show, or even indicate, that the value of the onshore activities was deliberately kept at a lower amount to avoid taxability in India. Of course, it could still make commercial sense that the offshore supplies are made at loss, as long as these supplies are at less than incremental costs i.e. marginal costs of offshore supplies, and thus overall losses of the assessee are minimized.
What is competition in the market? • In common parlance, competition in the market means sellers striving independently for buyers’ patronage to maximize profit (or other business objectives). • A buyer prefers to buy a product at a price that maximizes his benefits whereas the seller prefers to sell the product at a price that maximizes his profit.
Adjudicating authority seeks to include the value of free supplied materials received by the appellant in the gross value of the services rendered by the appellant. It is seen that after inclusion of gross value, the adjudicating authority has not given the benefit of Notification No. 15/2004, dated 10/09/2004 in the form of abatement of 67%.
Government Securities: . Currently FIIs are allowed to invest US$5 billion in Government Securities that have residual maturity of over five years. It has now been modified to reduce the residual maturity to three years. 2. An additional window of US$5 billion would be available for FII investment in Government Securities subject to residual maturity of three years. 3. The above modifications would now make available to FIIs a total limit of US$10 billion subject to residual maturity of three years.
Government Securities -i) The limit of USD 15 billion for FII investment in Government securities stands enhanced with immediate effect by USD 5 billion to USD 20 billion. It has also been decided to rationalize the conditions governing the investments under this scheme by making the residual maturity of the instrument at the time of first purchase by FIIs and SEBI registered eligible non- resident investors in IDFs and foreign Central Banks to be at least three years for a sublimit of USD 10 billion. Accordingly, the existing and new sub limits and attendant conditions are summarized as follows :
It has been decided to allow Indian companies in manufacturing and infrastructure sector and having foreign exchange earnings to avail of external commercial borrowing (ECB) for repayment of outstanding Rupee loans towards capital expenditure and/or fresh Rupee capital expenditure under the approval route. The overall ceiling for such ECBs would be USD 10 billion.
it has been decided to allow Indian companies to avail of ECBs for repayment of Rupee loan(s) availed of from the domestic banking system and / or for fresh Rupee capital expenditure, under the approval route, subject to them satisfying the following conditions:- Only companies in the manufacturing and infrastructure sector will be eligible to avail of such ECBs; Such companies shall be a consistent foreign exchange earner during the past three financial years; Such companies are not in the default list/caution list of the Reserve Bank of India; and Such ECBs shall only be utilized for repayment of the Rupee loan(s) availed of for ‘capital expenditure’ incurred earlier and are still outstanding in the books of the domestic banking system and / or for fresh Rupee capital expenditure.
The facts of the present case are similar only in the case in I.T.A. No.350/Del/.2009 wherein the Hon’ble Delhi Bench ‘D’ has dealt with the similar issue which was at ground No.3 of the appeal. The Tribunal has held in favour of the assessee and had remitted back file to the office of Assessing Officer for consideration of claim of assessee u/s 80IB. While deciding the matter, the Hon’ble Tribunal had considered various judicial pronouncements in which it was held that the authorities under the Act are under an obligation to act in accordance with law. If an assessee under a mistake, misconception or not being properly instructed is over-assessed, the authorities under the Act are required to assist him and ensure that only legitimate taxes are collected.
For compliance of TDS provisions knowing correct name for a given PAN is vital. The ‘ABCAUS- Know name from PAN utility’ considerably shorten the process for knowing a name from PAN.
The Ministry of Corporate Affairs (MCA) has notified the Schedule VI (Revised) which is applicable in respect of Balance Sheet and Profit and Loss Account prepared for the financial year commencing on or after 1.4.2011. The Revised Schedule VI had changed the nomenclature of certain items, modified the present classification of accounts, removed / added certain disclosure requirements etc which in turn has impacted the financial reporting requirement for the Companies.
