UPDATES FROM TAX GURU

Update on the Delhi High Court decision regarding applicability of service tax on rent

The Delhi High Court held that the renting of immovable property is not a service, and accordingly, the levy of service tax on the activity of renting is "ultra vires." The decision may have significant accounting implications on the entities. The...

Borrowing Costs and the Role of Foreign Currency Exchange Gains or Losses

The Exposure Draft (ED) of revised AS 16 Borrowing Costs, issued by the ICAI, retains the core principle that al borrowing costs incurred on borrowings undertaken to construct a "qualifying asset" should be capitalized as part of the cost of...

Set-off of short-term capital losses, subject to STT, allowable against short-term capital gains not subject to STT

The Income-tax Appellate Tribunal ("the Tribunal") , in the case of First State Investments (Hongkong) Ltd. A/c First State Asia Innovation and Technology Fund1 ("the assessee"), examined the manner of set-off of short- term capital loss suffered...

Sebi Notified Issue of Capital and Disclosure Requirements (ICDR) Regulations 2009

The Securities and Exchange Board of India is turning a stricter eye on company promoters who have been issued preferential warrants, saying that they will have to forfeit the upfront payment made on unexercised warrants.This is contained in its...

Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization

Circular No. 897/17/2009-CX, New Delhi, dated the 3rd September, 2009. Subject: Liability of interest where CENVAT credit was wrongly taken but reversed by assessee before utilization–reg. Representation has been received from the field...

Asset declarations by Supreme Court judges is within purview of RTI

Upholding the Central Information Commission (CIC) order that office of the Chief Justice of India (CJI) is well within the ambit of the Right to Information (RTI) Act, the Delhi High Court Wednesday ruled that judges should declare their assets. In...

Circular on Anti Money Laundering (AML) Standards/Combating Financing of Terrorism

To all Intermediaries registered with SEBI under section 12 of the SEBI Act, 1992. (Through the stock exchanges for stock brokers, sub brokers and depositories for depository participants) Sub: Anti Money Laundering (AML) Standards/Combating...

Constitution of a committee to examine the suggestions on the draft direct taxes code

F.No. 402/78/2009-ITCC Dated 28-8-2009 Issued By:- Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, CONSTITUTION OF A COMMITTEE TO EXAMINE THE SUGGESTIONS ON THE DRAFT DIRECT TAXES CODE PRESS RELEASE,...

Income-tax (Twelfth Amendment) Rules, 2009 – Amendment in rule 11N

Notification No. 65/2009 [F. NO. 49/22/2009-SO( TPL)], dated 2-9-2009 In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend...

Journey to "ICAI"

In 1918, the scheme of Government Diploma in Accountancy (GDA) was introduced by the Government of Bombay to provide the eligibility to accountants for Unrestricted Certificate to practise accountancy in India. In 1930, the Government of India...

In order to have a charity, you must have a source of income

ICAI won the Income Tax Exemption Case in the High Court – Scope of the term "Charitable Purpose" defined by the High Court – In order to have a charity, you must have a source of income – Section 10(23C)(iv) September...

RBI Guidelines on Exchange Traded Interest Rate Derivatives

RBI/2009-10/ 141 – IDMD.PDRD.No. 1056 / 03.64.00/2009- 10 September 1, 2009 All Stand-alone Primary Dealers Dear Sir Guidelines on Exchange Traded Interest Rate Derivatives Please refer to the directions contained in Interest Rate...

Government of India Cash Management Bills will be treated as SLR securities

RBI/2009-10/ 139 Ref: DBOD.No.Ret. BC.36/12. 02.001/2009- 10 September 01, 2009 All Scheduled Commercial Banks (Excluding Regional Rural Banks) Dear Sir, Section 24 of the Banking Regulation Act, 1949 Maintenance of Statutory Liquidity Ratio...

Provision of Electricity – Whether sale of goods or supply of service ?

In the Supreme Court of India KARNATAKA POWER TRANSMISSION CORPN. v. ASHOK IRON WORKS PVT. LTD Dated- February 9, 2009. Point of dispute – Consumer Protection Act – provision of Electricity – Whether sale of goods or supply of service ? Held:...

Important Announcement Regarding Examination Form of IPCE – Nov. 2009

Candidates who have converted into IPCC/ATC from Intermediate/ PE-II/ PCC on or before 1st February, 2009 but have not completed 9 months of registration in Intermediate/ PE-II/ PCC, should fill up the form as under: (1) FORM A : Please fill up the...