"12 December 2012" Archive

Transfer Price in Advanced Management Accounting

Transfer pricing comes into use when various divisions of a company deal with one another. A transfer price is that notional value at which goods and services are to be transferred by the supply division to receiving division. The goods that are produced by the buying division and sold to the outside world are known as final products. ...

Read More
Posted Under: CA, CS, CMA |

Public Notice No. 36 (RE-2012)/2009-14, Dated: 12.12.2012

Public Notice No. 36 (RE-2012)/2009-14 (12/12/2012)

For exports made prior to date of decision/ notification/ public notice of products/ markets, such a declaration will not be required since such exports would have already taken place....

Read More

Entertainment expenses cannot be disallowed U/s. 37(1) after omission of S. 37(2)

Assistant Director of Income-tax (International Taxation) Vs Credit Lyonnais (ITAT Mumbai)

Section 37(2) inter alia provided for disallowance of entertainment expenses. The said provision has been omitted with effect from 01.04.1998. The fact of this omission is that from assessment year 1998-99 no disallowance in respect of entertainment can be made if the expenses are otherwise incurred for the business purposes....

Read More

‘Willful defaults’ of parties under a derivative transaction with a bank are covered by RBI Master Circular

Kotak Mahindra Bank Ltd. Vs Hindustan National Glass & Ind. Ltd. (Supreme Court of India)

Clause 4.3 of the RBI Master Circular states is that there is scope even under the exiting legislations to initiate criminal action against wilful defaulters depending upon the facts and circumstances of the case under the provisions of Sections 403 and 415 of the Indian Penal Code, 1860 and the banks and financial institutions are strict...

Read More

Permitting assessee to withdraw objections can’t be interpreted as DRP’s direction on merit

Bank of America NA Vs Assistant Director of Income Tax (IT) (ITAT Mumbai)

When the objections filed by the assessee were allowed to be withdrawn on the ground that the assessee intend to exercise the option to proceed to file appeal before the Commissioner of Income Tax(Appeals), then there cannot be any direction under sub-sec. (5) in the absence of any objection as required under sub-Sec. (2) of sec. 144C of ...

Read More

XBRL filing due date extended to 15th January 2013

General Circular No. 39/2012 (12/12/2012)

In continuation of the Ministry's General Circular Nos: 16/2012 dated 06.07.2012 and 34/2012 dated 25.10.2012 on the subject cited above, it is stated that the time limit to file the financial statements in the XBRL mode without any additional fee/penalty has been extended up to 15th January 2013 or within 30 days from the date of AGM of ...

Read More

Whether software expenditure is capital or revenue in nature is to be seen independently in respect of each software

Timken Engineering & Research India (P.) Ltd. Vs Deputy Commissioner of Income Tax, Circle 12(4), Bangalore (ITAT Bangalore)

The fact situation in respect of the necessity for having the issue of software expenditure examined to ascertain whether it is capital or revenue in nature in the case of Amway India Enterprises (supra) is similar to that of the present case of the assessee. We, therefore, respectfully following the decision in the case of Amway India En...

Read More

Guidelines for issue of debit cards by banks

RBI/2012-13/324 DBOD.No.FSD.BC.66/24.01.019/2012-13 (12/12/2012)

Please refer to paragraphs 106 and 107 (extract enclosed) of the Second Quarter Review of Monetary Policy 2012-13 announced on October 30, 2012, proposing to accord general permission to banks for issue of co-branded debit and rupee denominated pre-paid instruments, subject to certain conditions, in order to obviate the need for banks to ...

Read More

AO cannot make Transfer Pricing adjustment unless recommended by TPO

Assistant Commissioner of Income-tax Vs Handy Waterbase India (P.) Ltd. (ITAT Chennai)

There is nothing whatsoever in the order of TPO which required or recommended any adjustment to the value of the international transactions. TPO did not deem it necessary to effect any revision of the sales price as shown by the assessee in its books....

Read More

Sec. 80-IB deduction to SSI cannot be denied due to change in investment limit after registration

Deputy Commissioner of Income-tax, Circle 3(1), Hyderabad Vs Shree Nidhi Secure Prints (P.) Ltd. (ITAT Hyderabad)

S.80IB(3)(ii) provides for deduction to small scale industrial units engaged in manufacture or producing articles or things. S.80IB(14)(b) defines a small scale industrial undertaking, which is regarded as such under S.11B of the Industries(Development and Regulation) Act, 1951. ...

Read More