Indirect Tax Laws Amendment Made By Finance Act, 2012 As Compiled By The Institute of Cost Accountants of India
Applicable for June 2013 and December 2013 Examinations of CMA Students
A. EXCISE
AMENDMENTS IN THE CENTRAL EXCISE ACT, 1944
(1) Incorporation of definition of “inter-connected undertakings” in section 4 (Effective from May 28th, 2012) Section 4 deals with the determination of value of excisable goods chargeable to duty on ad valorem basis. It has been amended to incorporate the definition of “inter-connected undertakings” contained in Monopolies and Restrictive Trade Practices Act, 1969 as the latter has been repealed.
In the Central Excise Act, 1944, in section 4,in sub-section (3), in clause (b), dealing with related party, in the Explanation, for clause (i) providing the meaning of inter connected undertakings, the following clause has been substituted, namely:––
(i) “inter-connected undertakings” means two or more undertakings which are inter- connected with each other in any of the following manners, namely:––
(A) if one owns or controls the other;
(B) where the undertakings are owned by firms, if such firms have one or more common partners;
(C) where the undertakings are owned by bodies corporate,––
(I) if one body corporate manages the other body corporate; or
(II) if one body corporate is a subsidiary of the other body corporate; or
(III) if the bodies corporate are under the same management; or
(IV) if one body corporate exercises control over the other body corporate in any other manner;
(D) where one undertaking is owned by a body corporate and the other is owned by a firm, if one or more partners of the firm,––
(I) hold, directly or indirectly, not less than fifty per cent. of the shares, whether preference or equity, of the body corporate; or
(II) exercise control, directly or indirectly, whether as director or otherwise, over the body corporate;
(E) if one is owned by a body corporate and the other is owned by a firm having bodies corporate as its partners, if such bodies corporate are under the same management;
(F) if the undertakings are owned or controlled by the same person or by the same group;
(G) if one is connected with the other either directly or through any number of undertakings which are inter-connected undertakings within the meaning of one or more of the foregoing sub clauses.
Download Full Text of the Amendments
Source- http://icmai.in/
