Hitherto, only transfer of property to individuals and HUFs were only covered by the provisions of section 56 (2), whereas the recipient firms, companies, etc. were excluded from taxation. By proposed amendment, it is sought to tax the firms and closely held companies if they receive shares of a closely held company on or after 1st June, 2010, either without consideration or for inadequate consideration.
With effect from A.Y. 2005-06, a concept of levying income-tax on the gifts received by an individual or HUF was introduced in Section 56 (2) of the Act. This was done to combat certain misuse of the provisions where the gift was received from a non-relative. At first the said concept was introduced for taxing gift in cash alone. However, consistently the scope of the said gifts has been enlarged.
Further, the State Government has issued a corrigendum to the above notification and a circular to clarify that fabrics and sugar, as described in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, which were not chargeable to tax prior to the issuance of the subject notification, will continue to remain tax free.
As per the provisions of section 5 read with section 4 of the Maharashtra State Tax on Profession, Trade, Callings and Employments Act, 1975 (Profession Tax Act), every employer having employees on his establishment, whose salary (including all allowances) is more than the limit prescribed under the Profession Tax Act, is required to obtain registration certificate under Profession Tax Act (P.T.R.C.)
Western Maharashtra Development Corpn. Ltd vs. Bajaj Auto Limited [MANU/MH/0109/ 2010]. In a decision, which is likely to have a wide impact on joint ventures/ investment in public companies, the Bombay High Court (“Court”) has recently held that any clause in an agreement which restricts the free transferability of shares of public companies is void and non- enforceable
Ernst & Young, the audit firm, had a long and lucrative relationship with Richard Fuld and Lehman Brothers. Lehman Brothers has paid EY more than $160 million in audit and other fees since fiscal year 2001. Although this isn’t nearly as much as Goldman Sachs and AIG pay PwC – almost $230 million a year combined in 2008 – it was still a huge amount and represented a significant client relationship for Ernst & Young.
New York: The US accounting watchdog has imposed sanctions against two Indian auditors who were affiliated with PricewaterhouseCoopers after they failed to detect at multi-year fraud at Indian technology services company Satyam Computer Services Ltd.
The Maharashtra Government has not taken a final decision on levying entertainment tax on the IPL, said the Chief Minister, Mr Ashok Chavan, on Wednesday while addressing the media on the eve of budget session. When it was pointed out that the State Cabinet said on January 20 that entertainment tax of up to 25 per cent would be imposed on the ticket sales of IPL and other one-day international cricket matches, Mr Chavan said no final decision was taken and the matter was still under consideration. Matches held in the municipal limits would attract 25 per cent tax while those outside the municipal limits would be levied 20 per cent tax.
Industry body Assocham has asked the government to roll back the service tax proposed on real estate developers at the time of construction, as it would increase the tax burden on home buyers and impact the recovery of the sector. The government, in the Budget, said that real estate complexes will attract service tax, unless the entire consideration for the property is paid after the construction is complete.
With airlines lobbying hard against the proposal to bring air travel under the service tax net in Budget 2010-11, the government may provide some relief to the sector hit badly by a global slowdown. The finance ministry is likely to specify a small fixed amount as the levy on all domestic and international tickets.
