The matter has been examined. Underwriting service is taxable by virtue of section 65 (105) (z) of the Finance Act, 1994. In the definition of taxable service, two technical terms are mentioned, namely underwriting and underwriter. The term underwriting [section 65 (117) of the Finance Act, 1994] has the meaning assigned to it in clause (g) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993, which reads as follow
The Government has said that it proposes to modernize corporate Governance through simpler, accountability obligated, transparent and democratic company law. Stating this intention of the Government in written reply to a question in the Rajya Sabha, Shri Salman Khurshid, Minister of Corporate Affairs, enumerated the steps taken in this regard and said that the Companies Bill, 2009, has already been introduced in the Lok Sabha.
The Finance Ministry said on Tuesday that the Direct Taxes Code (DTC) proposes to substitute the currently available profit-linked incentives with investment-linked deductions for specified sectors including developers of Special Economic Zones (SEZ).
In terms of ‘Repo in Corporate Debt Securities (Reserve Bank) Directions, 2010’ dated January 08, 2010 issued by Internal Debt Management Department (IDMD) of RBI, NBFCs registered with RBI (other than Govt companies as defined in Section 617 of the Companies Act, 1956) are eligible to participate in repo transactions in corporate debt securities. IDMD has also issued revised guidelines on uniform accounting for repo / reverse repo transactions on March 23, 2010.
In consultation with the stock exchanges, it has been decided to streamline the arbitration mechanism available at stock exchanges for arbitration of disputes (claims, complaints, differences, etc.) arising between a client and a member (Stock Broker, Trading Member and Clearing Member) across various market segments.
In order to ensure that Banks/ Non-Banking Financial Companies (NBFCs) run their credit card operations in a fair and regulated manner, Reserve Bank of India (RBI) had issued Master Circular on Credit Card operations on 1st July, 2010.
In continuation to this Ministry’s earlier circular no. 2/2010 dated 26.05.2010 on the subject cited above, it has been decided that in the case of 100% Government companies, if no Board is in existence, an officer not below the rank of Deputy Secretary of the concerned administrative Ministry may be authorized to enter his name and other details in Form EES, 2010 and in Annexure A, B and C in place of name and other details of the directors and also to sign the said documents before filing.
Pending roll out of the much awaited Place of Supply Rules for Services, which was announced in Union Budget 2010-11 speech, the Government Of India has published the Draft Point of Taxation (For Services Provided or Received in India) Rules (‘the draft Rules’) for services alongwith Explanatory Notes to the Rules. The Rules are proposed to be issued by exercising the powers conferred under Section 94 (2) (hhh) of the Finance Act, 1994 (‘the Act’).
While the number of new income-taxpayers is growing exponentially year after year, no new tax returns preparers (TRPs) have been recruited since 2006. The Income Tax was launched by the finance ministry in 2006, to help taxpayers file their returns at a nominal fee of Rs 250, by recruiting unemployed youth or people willing to work part-time as TRPs.
This notification allows for a lower public shareholding for public sector enterprises (PSEs). It also provides flexibility to all companies in attaining 25% (or 10% for public sector enterprises) public shareholding level within three years without any annual floor.
