UPDATES FROM www.taxguru.in 12.12.2009

UPDATES FROM TAX GURU (in this message: 20 new items) Service Tax on Legal Services – Some Controversial Issues services provided by Chartered Accountants, Cost Accountants and Company Secretaries as well as by engineering and management consultants are presently charged to Service Tax. Although there is a school of thought that legal consultants do not... Amendments to Section 56(2) with respect to Deemed Gifts and transfer of movable & immovable property Until the amendment made by the Finance (No.2) Act, 2009, the gifts were taxed only on receipt of sum of money; i.e., cash or cheque or bank draft in excess of Rs.50,000 in a year by any individual or HUF. Now, gifts of immovable and certain movable... Issues arising out of & Implications of A & G Projects Judgment – The way out Under entry 92A of List I of the VII Schedule to the Constitution of India, the Parliament of India has the exclusive right to impose tax on sale or purchase of goods other than newspapers where such sale or purchase takes place in the course of... Critical Analysis of Inter-State Works Contract After amendment to the constitution by inserting Article 366(29A) providing definition of the term "taxes on sale or purchase of goods" to include deemed sales, States were empowered to levy tax on sale or purchase of goods involved in execution of... Opinion – Levy of VAT on Transfer of Assets The transaction involves a global acquisition of a banking business by the Purchaser from the Seller. Consequent thereto, all assets and liabilities in India will be acquired by the Purchaser from the Seller. The acquisition of the assets and... Can karta of HUF sell ancestral immovable property with out the consent of other members, Right and relief to buyer? Question:- A Karta of a HUF makes an agreement with another person to sell an ancestral immovable property for a consideration. His married sons refuse to execute the sale deed in the last minute saying that the sale consideration is nowhere near... Sales in transit meaning, procedure, case Laws and Legal provisions Q.1 Please explain the scheme of "in transit sale" covered by section 6(2) of CST Act, 1956? Ans.: Section 3(a) of CST Act,1956 defines the interstate sale/purchase transaction. Section 3(b) defines the interstate sale effected by transfer of... Section 90A – DTAA – In case of agreements entered into between specified associations and adopted by Central Government for granting relief Specified territory and specified association In exercise of the powers conferred by clauses (a) and (b) of Explanation 2 to section 90A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies the following as specified territory and specified association respectively... Section 120 (1) and (2) of the Income-tax Act, 1961 – Income-tax authorities – Jurisdiction of Amendment in Notifications No. S.O. 732(E), dated 3-7-2001 In exercise of the powers conferred by sub-sections (1) and (2) of section 120 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following amendments to the Notification of the Government of India, Ministry... Section 10(39) of the Income-tax Act, 1961 Exemptions Notified persons, notified sporting events and Specified income In exercise of the powers conferred by clause (39) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies, - (a) the Organising Committee Commonwealth Games, 2010 Delhi, India as the person;(b) the following... Use of residential premises for professional/business/office purposes Can residential premises be used for professional or business office purposes? It is generally believed that only a part of the flat can be used for professional purposes and that no part of the flat can be used for business office purposes. However... Government asked CBDT to put MIS system to track and recover Income tax arrears Income-tax arrears against assessees — of Rs 2,01,276 crore as on March 31, 2009 — have once again become an issue, as Parliament's standing committee on finance has asked the Department of Revenue and the Central Board of Direct Taxes (CBDT) to put... Government not in favour of supervision of commercial activities of banks by MPs The government today shot down a suggestion in the Lok Sabha for setting up a committee under the Member of Parliament in respective constituencies for monitoring disbursement of loans by banks to priority sector like agriculture, small and medium... Implementation of IFRS from April 2011 government sure, industry not so sure The corporate affairs ministry and the Institute of Chartered Accountants of India (ICAI) are confident of meeting the April 2011 deadline to shift to International Financial Reporting Standards (IFRS). But industry says a complete transition from... IBA seek government permission for banks to issue tax-free bonds to finance infrastructure projects Banks are making a strong pitch to the government for permission to issue tax-free bonds to fund infrastructure projects. Bankers, who are expected to again take up the issue with the finance ministry next week, are arguing that the bonds will help... SC held bank liable to compensate for payment without verification of signature The Supreme Court has held that banks are liable to compensate a customer whose money is wrongly paid to another person without verifying the original signature of the account-holder as it amounted to deficiency of service. A bench of Justices D K... After Retail Investor Sebi extended ASBA facility to corporate and HNIs The market watchdog Sebi today extended the ASBA (application supported blocked amount) facility to corporate investors and high networth individuals (HNIs) to enable them to apply for IPOs or rights issue by keeping the application money in their... ICSI recommended to fix the limit for maximum number of listed companies where one can be a director to seven The Institute of Company Secretaries of India (ICSI) has recommended to the Government that the maximum number of listed companies where one can be a director be restricted to seven. ICSI has also mooted capping the tenure of independent directors... India UK will discuss recognition to ICAI's members by ICAEW and relaxation in Visa Norms The issues of opening up of accountancy services in India and recognition to Indian accountancy professionals in the UK are likely to get a push at the forthcoming India-UK talks on Corporate Governance. The key issue will be the reciprocal... Law of arbitration – company matters A brief about Arbitration Mechanism: In order to reduce the delay in courts in the process of traditional adjudication mechanism, the Alternative Disposal Mechanism (ADR) was mooted. The dispute resolution through Conciliation, Arbitration and... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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