UPDATES FROM TAX GURU 30.09.2009

UPDATES FROM TAX GURU  ICAI found two former auditors of Satyam Computer 'guilty A HIGH-POWERED panel of the Institute of Chartered Accountants of India (ICAI) — the nodal body in India for auditors — has prima facie found two former auditors of Satyam Computer and members of the software company's internal audit cell guilty of... CA decided to scrutinise the account books of all registered companies In a bid to avoid accounting frauds of the type that hit Satyam Computers, now called Mahindra Satyam, in January this year, the Ministry of Corporate Affairs (MCA) has decided to scrutinise the account books of all registered companies — listed as... SEBI asked BSE to improve its technology platform before listing of its own shares The Securities and Exchange Board of India (Sebi) has asked the 134-year-old Bombay Stock Exchange (BSE) to set its house in order before planning a listing. BSE had been planning to list on the exchange for a while and had approached Sebi for... MVAT circular on Procedure for on line submission of application for obtaining registration under the MVAT Act, 2002 TRADE CIRCULAR Date: 25th Sept, 2009 NO. MVAT/ Registration / e-101 Mumbai, Trade circular No:- 25T of 2009 Subject: - Procedure for on line submission of application for obtaining registration under the MVAT Act, 2002 Ref: - Notification no.... Will Government extended due date for filing Income Tax Return? September 30th is the Due Date for filing Income tax Returns for corporate assessees and those who come under compulsory audit. Virtually the Government of India is on a vacation, with Puja and other holidays. Yesterday was a holiday and tomorrow... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 28.09.2009

UPDATES FROM TAX GURU (in this message: 2 new items) In mercantile method of accounting allowability of expenditure depend on liability to pay Posted: 27 Sep 2009 09:08 PM PDT SUMMARY OF CASE LAW Once the goods have been purchased, the invoices raised and the purchase considerations are accounted for in the books of the assessee, the expenditure can be said to have been incurred as per the method of accounting –... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] FAQs on applicability of Surcharge and Cess on TDS after budget 2009 and on new TDS rate Posted: 27 Sep 2009 08:43 PM PDT 1. What is the date when the Finance Bill became Finance Act 2009? 19-08-2009 2. In which cases surcharge on TDS rates is NOT applicable? On all payment to residents On all payment to non-corporate non-residents On all payments to foreign ... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 26.09.2009

UPDATES FROM TAX GURU FAQ on the Exemption/ Refund Scheme for Exporters Refund scheme to exporters was introduced by notification n. 41/2007 dated 6th Oct 2007. The scope of refund was enhanced from time to time along with the procedural changes. To make the scheme simple and ensure speedier disposal, two notifications... Rating cannot be construed as a substitute for an exhaustive audit or a fraud detection The credit crisis has exposed weaknesses in many financial intermediaries. How can rating agencies ensure their views are more accurate and unbiased?  Despite due diligence, there is always scope for improvement. Credit rating agencies (CRA) do not... Income Tax Search at oldest and richest realtors of Mumbai One of the oldest and richest realtors of Mumbai, whose family once owned large parts of Powai and even donated land for setting up the IIT, is facing Income Tax (I-T ) trouble. I-T sleuths landed up at the residence and offices of Bhawani Shankar... Judgement holding s. 43B (f) (leave encashment) as unconstitutional stayed CIT vs. Exide Industries (Supreme Court) S. 43B (f) was inserted by the Finance Act, 2001 w.e.f. 1.4.2002 to provide that any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee shall be allowed as a... Due date for filing Income Tax Return been extended by one month in Pune, Sangli and Kolhapur The Government today extended the date for filing of income tax returns by a month in three districts of Maharashtra."The due date of filing income tax returns, due by September 30, 2009, of tax payer assessed to income tax in the districts... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 25.09.2009

UPDATES FROM TAX GURU  Loan waived by lender is not taxable in the hand of borrower SUMMARY OF CASE LAW Remission of a debt by the lender which was not claimed and allowed as a deduction to the borrower in any manner in any earlier previous year cannot be brought to tax either under section 41(1) or under section 28(iv) of... Section 143, read with sections 234A to 234C, of the Income-tax Act, 1961, and a SUMMARY OF CASE LAW Section 143, read with sections 234A to 234C, of the Income-tax Act, 1961, and articles 12 and 7 of the DTAA between India and USA – Assessment – General – Assessment years 2002-03 and 2003-04 – Whether... Two separate agreements to purchase a flat having two separate numbers do not mean that they are two residential units SUMMARY OF CASE LAW Merely because the assessee has entered jointly with two separate agreements to purchase a duplex flat having two separate numbers does not mean that they are two residential units. CASE LAW DETAILS Decided by: ITAT, MUMBAI BENCH... Derivatives in which underlying asset is shares, will fall within the meaning of 'commodity' used in Sec. 43(5) of the Act SUMMARY OF CASE LAW If it is held that the transaction in derivatives does not fall in section 43(5), it will make clause (d) and Explanation thereto below section 43(5) introduced by Finance Act, 2005 to be redundant. CASE LAW DETAILS Decided by:... SEBI issued new code of conduct for intermediaries, including distributors of mutual funds The Securities and Exchange Board of India has issued a code of conduct for intermediaries, including distributors, of mutual funds. Asset management companies have been told not to deal with non-compliant intermediaries. They are to report such... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 24.09.2009

UPDATES FROM TAX GURU Supreme Court admitted petition on applicability of service tax on selling of mutual fund products The Supreme Court has admitted a petition which has raised an important question: Is selling mutual fund products a taxable service?  The apex court headed by Justice S H Kapadia admitted an appeal filed by Commissioner of Service Tax stating that... ICAI requested for extension of due date for filing of return of Income Due to the fact that most of the establishments are virtually closed on account of festivals of Durga Pooja, Navratra's and Dussehra, representations were received from members all over the country posing the difficulties faced by them in... ICAI – Announcement for panel for outsourcing of work of Technical Scrutiny of Balance Sheets The Institute has received an Office Memorandum (OM) from the Ministry of Corporate Affairs. As per the OM, the Registrar of Companies will prepare a panel of professionals for Technical Scrutiny of Balance Sheets filled by the Companies for the... Government proposal to constitute a supervisory mechanism opposed by ICAI, ICSI and ICWAI A GOVERNMENT proposal to constitute a supervisory mechanism above the country's three statutory institutes for accounting, company secretaryship and cost accounting and allowing their members to provide services in each other's fields has been... Amendment in Electronic Furnishing of Return of Income Scheme, 2007 Notification No. 70/2009, dated 22-9-2009 In exercise of the powers conferred by sub-section (1B) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following amendment in the notification of... Deduction u/s. 80C for tuition/school fees paid for education of children Who is Eligible: Deduction for tuition fees u/s. 80c of the Income Tax Act 1961 is available to Individual Assessee and is not available to HUF. Maximum Child: Deduction under this section is available for tuition fees paid on two children's... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 23.09.2009

UPDATES FROM TAX GURU In determining head for profit/loss on sale of shares intention of Assessee also need to be look into SUMMARY OF CASE LAW Where the intention of the assessee-company was to purchase and hold the shares of group companies as investment, the loss arising from transactions in the said shares was assessable under the head "income from other... Activities related to freight forwarding cannot be brought under CHA Services CASE LAW DETAILS Decided by: CESTAT, SOUTH ZONAL BENCH, BANGLAORE,  In The case of: DHL Lemuir Logistics Pvt. Ltd.  V Commissioner of Service Tax , Appeal No.:, Service Tax Appeal No. 389/2007, Decided on June 29, 2009 RELEVENT PARAGRAPH 6. We... Income Tax Refund for A.Y. 2008-09 may get delayed Even as income-tax payers grapple with non-acceptance of their returns, it's surely not a good time to expect refunds. Refunds across the country will be enormously delayed as the software at the new Centralised Processing Centre (CPC) of the... Listed companies may soon have to get done Quarterly cost audit Quarterly cost audit by internal auditors in the listed companies should be explored in consultation with the market regulator SEBI to improve corporate governance, an expert group appointed by Corporate Affairs Ministry has suggested. "The... Merchant Overtime Fee- Dispute on overtime By CA. Pradeep Jain and Sukhvinder Kaur [LLB (FYIC)] Merchant overtime fee (MOT charges) are the charges which are required to be paid by the exporter/ assessee who is availing the services of Central Excise Officers, in accordance with any... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 22.09.2009

UPDATES FROM TAX GURU Allowability of interest on borrowed funds advanced to subsidiary company Posted: 21 Sep 2009 07:44 PM PDT SUMMARY OF CASE LAW Where funds have been advanced by the assessee to its subsidiary company on the ground of commercial expediency, the assessee would be entitled to claim deduction of interest on borrowed loans. CASE LAW DETAILS Decided by: ITAT,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Payments made to retiring partners not allowable as it is application of firms income Posted: 21 Sep 2009 07:39 PM PDT SUMMARY OF CASE LAW The expenditure incurred by the assessee by way of payments to the retiring partners is only an application of its income, which is on capital account and not allowable as a deduction. CASE LAW DETAILS Decided by: ITAT, MUMABI... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Allowability of depreciation on stock exchange membership card Posted: 21 Sep 2009 07:26 PM PDT SUMMARY OF CASE LAW Depreciation under section 32 is intended to a limited category of intangible assets and not to a wider category thereof; therefore, the expression `licences' in section 32(1)(ii) must be construed restrictively so as to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Renovation expenses incurred on leased premises and Allowability of same as revenue Posted: 21 Sep 2009 07:24 PM PDT SUMMARY OF CASE LAW In order to claim deduction of an expenditure as revenue which otherwise gives enduring advantage, the onus is on assessee to prove that the ownership of the property even during subsistence of lease, vests with the lessor and.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Co-operative credit society is not a co-operative bank and not entitled to any deduction under section 80P(2)(a)(i) as a bank Posted: 21 Sep 2009 07:02 PM PDT SUMMARY OF CASE LAW A primary agricultural co-operative credit society is not a co-operative bank and therefore, not entitled to any deduction under section 80P(2)(a)(i) as a bank; but as it is a primary co-operative credit society, it may be.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Ayurvedic doctor can claim deduction under section 80R even if he was not having permission to practice in foreign country Posted: 21 Sep 2009 06:46 PM PDT SUMMARY OF CASE LAW A teacher can teach any subject in which he has proficiency and need not be employed as a teacher in a school or a college to get into the definition of `teacher'; if somebody uses his expertise and knowledge on a specific... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] IT exemption u/s 11 cannot be denied merely on the grounds that the assessee serves alcohol in the club Posted: 21 Sep 2009 06:22 PM PDT SUMMARY OF CASE LAW If the activities undertaken by the trust are undisputably for the well being of a section of the public at large, it meets the requirements of both the expressions i.e. `general public' and the `general public... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Is it time to migrate to LLP Structure? Posted: 21 Sep 2009 05:49 PM PDT The Union Budget 2009 presented by the Hon'ble Finance Minister, Mr. Pranav Mukherjee , inter alia also provided the much awaited tax treatment for the new corporate business vehicle viz., Limited Liability Partnerships ("LLP"). With this proposal,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 21.09.2009

UPDATES FROM TAX GURU (www.taxguru.in) Introduction of Interest Rate Futures- NBFCs Introduction of Interest Rate Futures- NBFCs RBI/2009-10/165 DNBS.PD.CC.No.161/3.10.01/ 2009-10 September 18,  2009 All NBFCs (excluding RNBCs) Dear Sir Introduction of Interest Rate Futures- NBFCs Please refer to the Directions issued by the... RBI circular on Priority Sector Lending -Categorisation of activities under service under the MSMED Act, 2006 RBI/2009-10/ 164 RPCD.CO.Plan. BC. 24 /04..09.01/2009- 10 September 18, 2009 The Chairman/ Managing Director/Chief Executive Officer [All scheduled commercial banks (excluding Regional Rural Banks)] Dear Sir, Priority Sector Lending -Categorisation... RBI approval required for acquisition/ transfer of control of NBFCs accepting deposits RBI/2009-10/ 162 – DNBS (PD) CC.No. 160/03.10.001/ 2009-10 Dated: September 17, 2009 All deposit taking NBFCs (excluding RNBCs) Dear Sirs, Requirement for obtaining prior approval of RBI in cases of acquisition/ transfer of control of NBFCs... Companies Bill 2009: Governance, Accountability & Role of Company Secretary 1.  Key Managerial Personnel (Clause 178) (a)  Definition As per clause 178, every company belonging to such class or description of companies as may be prescribed shall have Whole-Time Key Managerial Personnel (KMP). A Company Secretary is a... Income-tax department unearthed a major scam involving duping of 60,000 customers THE Income-tax department has unearthed a major scam involving duping of 60,000 customers by an Orissa-based real estate company through a multi-level marketing cum incentive scheme. The tax sleuths under the direction of the Central Board of Direct... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 20.09.2009

UPDATES FROM TAX GURU Amendment for Cenvat on Building Material : Far from solutions In a manufacturing process, there are a lot of raw materials used to make a final product. The excise duty paid on the said raw materials or inputs used in manufacturing of final products are eligible as Cenvat credit under the Cenvat credit scheme.... Special Economic Zones Act, 2005: An overview Introduction:  Amidst WTO & GATS, Special Economic Zones have attained a centre stage. The Central Government has enacted the SEZ Act with the major objective of generation of additional economic activity, promotion of export of goods 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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UPDATES FROM TAX GURU 19.09.2009

UPDATES FROM TAX GURU Knowledge Process Outsourcing: An Overview KPO Potential: A CII Report estimates the potential size of KPO Industry at $17 billion by 2010, creation of 2,50,000 jobs in 5 years. Analysts estimate that about 30,000-50,000 people are currently employed in this industry. Difference between KPO... Leveraged Buyout (LBO): An overview Leveraged Buyout (LBO) has been in the news recently which said that,  Corus –    an Anglo-Dutch company would be taken over by TATA – an Indian company. Being a relatively new business concept for us, this Article aims to highlight what 'LBO' is... Email Etiquettes: Email Rules which we should follow Here are some Email Rules which we should follow in our day-to-day email communications; office or personal. We call them 'Email Etiquettes'. 1. Indent: Keep your mail in Left Indent format. This is the American style and currently... Disclaimers and Fine Prints in the Era of CRM Consumers/Customers/Investors like you and I must have surely come across something called 'Fine Prints and Disclaimers' – which can be found in each and every agreement, contract, sale and purchase transactions, etc. In a... Understanding 'Dollar – Rupee Relation' amidst current financial crises About 'Exchange Rate' of a currency: The exchange rate of the currency of a country in relation to the currency of another country depends on the comparative trade advantages and economic strengths of the countries. If one US dollar is equal to 45... Meaning, reason and legal provisions related to Hostile Takeover What is meant by Hostile Takeover? Hostile Takeover is a type of acquisition in which, the company being purchased (Target Company) does not want to be purchased at all, or does not want to be purchased by a particular buyer (Acquirer) that is... Brief Study of The Right To Information Act, 2005 Introduction: This legislation may be termed as one of the rarest legislations in the Indian Legal History which provides for setting out the practical regime of 'Right to Information' for Citizens to secure access to information under the control... New centrailsed system for processing excise and service tax returns by the end of this year The new centralised system for processing excise and service tax which would the save tax payer's time and money would be rolled out across the country by the end of this year, CBEC Additional Director General of Systems D P Dash said here.  The new... CVC disclosed names of 123 corrupt government officials IN A first, the Central Vigilance Commission has disclosed the names of 123 government officials, which includes three IPS officers, against whom it has suggested sanction for prosecution or imposition of penalty for alleged corruption. Complying... Stricter Permission process for pursuing a course alongwith articleship Permission for pursuing a course along articleship [Regulations 65 & 78, Form 112] – (18-09-2009) Attention of the students /articled assistants is drawn to Regulation 65 of the Chartered Accountants Regulations, 1988, reproduced below:... Share brokers are eligible to claim bad debts as expense CASE LAW DETAILS Decided by: Delhi High Court, In The case of: Commissioner Of Income Tax Vs. Db (India) Securities Ltd., Appeal No.: ITA No. 415/2007, Order Dated: 02.07.2009. SUMMARY OF CASE LAW The assessee, a broker, purchased shares of the... Career Opportunities in Mutual Fund Industry Indian retail investors are considered to be risk averse due to many reasons. Mutual Funds can therefore be regarded as a boon for such investors. Mutual Fund industry is playing an active role in the capital market today and is one of the fastest... Career & Job–Are these two different? As the title of this article suggests, are these two – Career & Job – different? This article tries to analyze the concept of and the need to understand 'Career' and 'Job'. I have observed that many people still... Carbon Credit: A Market Based Instruments (MBI) for Environmental Benefits Environmental Management – Introduction Environmental Law is perceived as one of the most important tools of environmental management. Protection of environment from degradation has now not just remained a legal issue but a management issue. In... Basel Norms & Indian Banking System Amidst globalisation Banking System in India has attained vital importance. Day by day there has been increasing banking complexities in banking transactions, capital requirements, liquidity, credit and risks associated with them.  The World Trade... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAXGURU 18.09.2009

UPDATES FROM TAXGURU SEBI asked mutual fund to get their systems audited at least once in two years The Securities and Exchange Board of India today asked all mutual fund companies to get their systems audited at least once in two years and submit the reports to the market regulator.  Also for the financial years April 2008 to March 2010 the audit should be completed by September 2010, the regulator in a statement [...] Related posts: SEBI decision on Transparency in payment of commission to Mutual Fund distributors PR No..192/2009 SEBI Board Meeting The Board met as on 18-07-2009 and took.... Slab of Auditors fees for inspection of Mutual Funds for the year 2008-09 Board's right to inspect and investigation The Board may appoint one or... Reporting of Inter-Scheme Transfers of Corporate Bonds by Mutual Funds Reporting of Inter-Scheme Transfers of Corporate Bonds by Mutual Funds on SEBI... RBI extended interest subvention of 2% on rupee export credit for a further period of six months Rupee Export Credit Interest Rates RBI/2009-10/ 157 , Ref.: UBD.CO.BPD.Cir. No. 1/13.05.000/ 2009-10 Dated:-September 16, 2009 Rupee Export Credit Interest Rates Please refer to our circular UBD.PCB.Cir. No. 3/13.05.000/ 2008-09 dated June 18, 2009 on the captioned subject regarding extension of interest subvention of 2 percentage points w.e.f. June 1, 2009 till September 30, 2009 on rupee export credit [...] Related posts: RBI eased Credit Norm For Exporters Exporters are especially hit by recessionary conditions globally. RBI has taken the... Export proceeds can now be realised in 12 Months as against 6 Months earlier A. P. (DIR Series) CIRCULAR NO 50 /RBI., Dated: June 3, 2008.... Exporters won't require CA audit to avail 2% interest rate subvention It may now be easier for exporters to borrow money at a... RBI Circular on Agriclutural Debt Waiver and Debt Relief Scheme, 2009 – Prudential Norms RBI/2009-10/ 160 –  RPCD.CO.RF.BC. No.23 /07.37.02/2009- 10 dated: September 16, 2009 Agricultural Debt Waiver and Debt Relief Scheme, 2008 – Prudential Norms on Income Recognition, Asset Classification, Provisioning and Capital Adequacy. Please refer to our circulars RPCD.CO.RF.BC. No.17/ 07.38..03/2008- 09 dated July 30, 2008, RPCD.CO.RF.BC. No.91 /07.37.02 /2008-09 dated March 6, 2009 and RPCD.CO.RF.BC. No.116/07. 37.02/2008- 09 dated June 26, 2009 [...] Related posts: Agricultural Debt Waiver and Debt Relief Scheme, 2008– Prudential Norms on Income Recognition, Asset Classification, Provisioning and Capital Adequacy RBI/2009-10/137 DBOD.No.BP.BC. 35/21.04.048/2009-10 Dated: August 31, 2009 The Chairman and Managing Director/... RBI circular on extension of last date under Agricultural Debt Waiver and Debt Relief Scheme, 2008 RBI/2009-10/145 UBD.BPD.PCB.Cir.No 8 /13.05.006/2009-10 Dated: September 3, 2009 The Chief Executive Officer,... Farm loan waiver may not trigger defaults: RBI The farm loan waiver scheme may not trigger a tendency among farmers... ITAT Mumbai benches not functioning for the period from 22.09.09 to 25.09.09 The following Benches will not function during the period from 22.09.09 to 25.09.09: - "C", "G", "H", "J" & "WT"The cases are adjourned to respective date. Please see separate Notice.Sd/-(G.D. Agarwal)Vice President Related posts:ITAT mumbai benches not functioning during the period 24.08.09 to 28.08.09 The following Benches will not function during the period 24.08.09 to 28.08.09:-...ITAT Mumbai [...] Related posts: ITAT mumbai benches not functioning during the period 24.08.09 to 28.08.09 The following Benches will not function during the period 24.08.09 to 28.08.09:-... ITAT Mumbai Benches not functioning during the period 31.08.09 to 03..09.09 The following Bences will not function during the period 31.08.09 to 03.09.09"... ITAT Mumbai benches not functioning during the period 27.07.09 to 31.07.09 The following benches will not function during the period 27.07.09 to 31.07.09... Government approved setting up of new National Institutes of Technology (NITs) The Union Cabinet today approved setting up of new National Institutes of Technology (NITs). These new NITs will be established in Manipur; Meghalaya; Mizoram; Nagaland; Goa (which will also cater to UTs of Daman Diu, Dadra Nagar Haveli and Lakshdweep); Pudducherry (which will also cater to Andaman Nicobar Islands); Sikkim; Delhi (which will also cater [...] Related posts: P.S.G. & Sons Charities for the unit P.S.G. College of Technology, Coimbator approved under section 35 (1)(ii) of the Income tax Act NOTIFICATION NO. 64/2009, DATED 1-9-2009 It is hereby notified for general information... Government likely to extend the tax benefits from the Software Technology Parks of India (STPI), to March 31, 2010 The government is likely to extend the tax benefits on exports earnings... Government proposed excise waiver and income-tax holiday benefit to power projects based on supercritical technology The government has proposed to extend the excise waiver and income-tax holiday... Sneak peek into the 'Secretarial Standards' As we all know that The Institute of Chartered Accountants of India (ICAI) has listed out numerous accounting principles and rules which are to be followed by the auditor fraternity while auditing the organizations they are appointed to audit for. ICAI has also introduced the Accounting Standards, most popularly called as 'AS' which are supplementary [...] Related posts: ICAI entering into domain of ICSI by setting up corporate affairs standards The accounting and auditing regulator, the Institute of Chartered Accountants of India... NOTIFICATION OF ACCOUNTING STANDARDS BY THE CENTRAL GOVERNMENT UNDER THE COMPANIES ACT, 1956 PRESS RELEASE, DATED 14-5-2008 The Government recognises the importance of financial reporting... Provisions contained in Companies Bill, 2009 related to the profession of Company Secretaries 1.  Key Managerial Personnel (Clause 178) (a)  Definition As per clause 178, every company belonging to such... Clauses Make Agreements Flawless In common parlance the terms 'Agreement' and 'Contract' are used as synonyms.. But in legal jargon, these two terms are not the same. Agreement is a vital element for a contract to become valid, but it's not a contract in itself. The enforceability of an agreement makes it a Contract. It is said that, every [...] Related posts: SC: International arbitration awards can be challenged in the Indian courts of law The Supreme Court has ruled that international arbitration awards are not immune... Interpretation of double tax avoidance agreements November, 06th 2007 The Central Government has signed with several countries,... Development agreements are NOT joint ventures: Supreme Court Faqir Chand Gulati vs. Uppal (Supreme Court) (i) A development agreement is... Towards a Greener Environment Carbon Credit – For Environmental Management Environmental Management: Environmental management is not merely managing the environment but it's the management of human interaction with; and impact upon the environment in order to conserve the environment for mankind's sake. Managing environment is the biggest issue these days which is being faced by everyone everywhere across the globe. Initially, the Environmental Law was perceived [...] Related posts: I-T dept considering tax imposition on carbon credits The Income-Tax department is mulling tax on carbon credit trade, estimated to... Accounting guidelines on carbon credits effective from July 1 : ICAI Accounting guidelines on carbon credits will come into force from July 1.... LICs MAIDEN HEALTH INSURANCE PRODUCT SOON Life Insurance Corporation of India will file its maiden health insurance product... Co-Relating Economics and Law This article makes an attempt of co-relating or linking Economics and Law – an out of the world unestablished & rare combination/concept as you may term it. Sanjay and Deepak co-incidentally met in a restaurant some months after they completed their graduation in Commerce. And a conversation started… Sanjay: Hey, Deepak! How's you buddy? How's life? Deepak: Hey, [...] Related posts: INVESTING IN HEDGE FUND Hedging means managing risk.. A fund manager employs a particular hedging technique... New Form 15CA & 15CB relating to remittance of payments to a non-resident or to a foreign company & CA Certificate Currently, remittances to non-residents are allowed by banks if the person making... Banks don't want CAs to appear before Debt Recovery Tribunal (DRT) Citing a need for legal knowledge and skills, banks have shot down... RBI named 7 MLM companies involved in operating ponzi schemes Coming down heavily on shady operations of fraudulent multi-level marketing companies, Reserve Bank of India has alerted banks to be careful while opening accounts of the marketing/trading agencies. Many such firms pose as MLM agencies for consumer goods and services and manage to mobilise large amount of deposits from the unsuspecting public with promises of ridiculously [...] Related posts: Companies should deduct TDS on director loans The Supreme Court has ruled that the companies have statutory obligation to... RBI ask banks to clear local cheques within a day and of outstation cheques within 14 days Banks were told by the Reserve Bank of India  on Tuesday to ensure... RBI circular on Collection of Account Payee Cheques – Prohibition on Crediting Proceeds to Third Party Account RBI/2009-10/ 148 —RPCD.CO.RF.BC. No.18 /07.38.03/2009- 10 Dated: September  7, 2009 All State Co-operative... State Governments finally agrees to GST States have finally reached a consensus on having two basic rates under the Goods and Services Tax, slated to be rolled out on April 1, 2010. There will be one standard rate of taxation and another low rate of taxation for essential commodities. "A consensus has been reached between state finance ministers regarding the two basic [...] Related posts: Icai offered free consultancy service to the Orissa state government A delegation of the Public Finance Committee of the Institute of Chartered... GST critical for economic reforms: Finance Minister Asking the state finance ministers to resolve the pending issues expeditiously, the... Reduced rate of CST would be effective from 1-5-2008 Finance Minister Mr. P Chidambram has informed the parliament during his budget... E-COMMUNICATION – A Serious Thing CS. Monika Bhardwaj, B.Com (Hons.), ACS, LL.B (I), Gurgaon This article aims to highlight that communications done through electronic mode are now recognized by Indian Law and hold true as an 'evidence' as well as 'contractual liability'. Internet and electronic communications has now become an integral part of our day to day life, from SMS [...] Related posts: IT department can now track down fraudulent electronic transactions Tax evasion in Mumbai may now become more difficult as taxpayers will... ICAI Communication to members providing Articles Training to Articled Assistants Dear Sir(s)/Madam, The Council of the Institute appointed a Working Group to... ICAI approves three new Standards on Internal Audits The Institute of Chartered Accountants of India (ICAI) has approved three new... ICWAI council approved CAS 7 & CAS 8 Central Council of the ICWAI has approved on 12th September 2009 the Cost Accounting Standards on Employee Cost (CAS-7) and Cost of Utilities (CAS-8). The same have been hosted on the website of the ICWAI. 1. Final Cost Accounting Standard on Employee Cost (CAS-7). http://www.icwai. org/icwai/ docs/CASB/ CAS7.pdf 2. Final Cost Accounting Standard on Cost of Utilities (CAS-8). http://www.icwai. org/icwai/ [...] Related posts: ICWAI urges government for more regulatory powers Shri Salman Khurshid, Minister for Corporate Affairs, has expressed confidence that under... ICWAI recommended compulsory cost audit of all companies It may now become compulsory for all big and medium manufacturing companies... ICWAI made 6 Cost Accounting Standards mandatory w.e.f. period commencing on or after 1st April 2010 The Council of the ICWAI at its 251st Meeting held on 12-13... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 17.09.2009

UPDATES FROM TAX GURU RBI Press Release on Restrictive practices while accepting bank notes September 14, 2009 Restrictive practices while accepting bank notes It has come to the notice of the Reserve Bank of India that certain establishments are adopting restrictive practices such as not accepting notes of certain denominations or series... Government would come up with a roadmap to help companies to adopt IFRS The government today said it would come up with a roadmap in November to help companies to adopt International Financial Reporting Standards (IFRS) which will become operational from 2011. The government will take the concerned regulatory agencies... KPMG accountant jailed A "spineless" director at leading accountancy firm, KPMG, was jailed for four years after trying to buy his second wife's happiness with £550,000 stolen from his employer.  Andrew Wetherall, 49, branded as "spineless" by the judge, spent years.... income Tax raided NCP leader having stake in Sunil Hitech The Income Tax Department today conducted raids at various places, including the residence of NCP leader Sudamati Gutte whose family has a large industrial base. According to sources, raids were carried out at more than 35 places in the district,... Acquirer has a right to protect his investment/business from competition by a seller of the business In a blow to the Securities and Exchange Board of India (Sebi), the Securities Appellate Tribunal (SAT) has set aside the former's ruling in the case of Tata Tea, wherein Sebi had asked the company to pay non-compete fees to all shareholders of... New Companies Bill 2009 likely to provide more power to SFIO The New Companies Bill 2009, which seeks to replace the existing Companies Act of 1956, has already factored in the lessons from the Satyam incident and would look at strengthening the role of Serious Fraud Investigation Office (SFIO) in order to... RBI circular on Finance for Housing Projects –Disclosure of Information on Mortgage of Property Refrence No. RBI/2009-10/ 155 ,Circular No. RPCD.CO.RRB. BC.No. 21 /03.05.33/2009- 10,  Dated: September 14, 2009, Issued to : Chairman, All Regional Rural Banks Dear Sir, Finance for Housing Projects – Incorporating clause in the terms and... Dual Listing meaning, problem & reasons for the same I recently heard that MTN will ask for Dual listing if Merger or takeover deal between Bharti and MTN happens. I wondered what this is all about as we haven't witnessed such listing in India in past and neither I found  any provisions of dual... Income Tax department recovered documents of tax evasion worth crores of rupees Income Tax department today recovered documents of tax evasion worth crores of rupees during a survey at a software company in Sitapura industrial area here. Teams of Mumbai, Kanpur and Pune directorate of IT department in coordination with the... Resigned Members & Members who retired before 3.6.2009 can practice before the ITAT CASE LAW DETAILS Decided by: Income Tax Appellate Tribunal, Delhi Bench "B" New Delhi (Special Bench).  In the case of: M/s Concept Creations vs. ACIT, Appeal No.: ITA No. 3370/Del/08 (Asstt. Yr: 2005-06), Order dated: – 15-09-2009. SUMMARY OF... ICAI asked for suggestions/views/comments on Companies Bill, 2009 Dear Member, Sub: Companies Bill, 2009 As you are aware, the Companies Bill, 2009 has been introduced in Lok Sabha on 3rd August, 2009. The new Bill proposes to open up new avenues for the professionals especially Chartered Accountants and at... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 16.09.2009

UPDATES FROM TAX GURU Intention of landlord material factor in deciding head of income derived by a landlord from hirers of his office space SUMMARY OF CASE LAW Intention of the landlord is a material factor in deciding the issue as to whether charging of services to be provided in terms of the agreements with the tenants is business income or not; if it is found that main intention is... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Future option income (F&O) can not be set off against speculation Loss Posted: 15 Sep 2009 08:22 PM PDT SUMMARY OF CASE LAW F&O transactions are not speculative transactions and thus, the income from such transactions cannot be set off against the speculation loss. CASE LAW DETAILS Decided by: ITAT, `E' BENCH, MUMBAI,  In The case of:... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] No addition can be made on the basis of mere statement recorded during survey Posted: 15 Sep 2009 08:17 PM PDT SUMMARY OF CASE LAW Merely on the basis of statement having been recorded, no addition can be made unless the same can be corroborated by any material either found during the course of survey or subsequently brought on record by the department while... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] HUF can't claim deduction u/s. 54F for property purchased by Individual in his individual capacity Posted: 15 Sep 2009 08:14 PM PDT CASE LAW DETAILS Decided by: HIGH COURT OF DELHI,  In The case of: VIPIN MALIK (HUF) v. CIT,  Appeal No.:,  ITA NO. 1241/2007, Decided on: AUGUST 7, 2009 RELEVENT PARAGRAPH The appellant/assessee, which is a HUF, sold its agricultural land for... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Depreciation on discarded machinery allowable, if used for business purposes in earlier years Posted: 15 Sep 2009 08:06 PM PDT SUMMARY OF CASE LAW The expression "used for the purpose of the business" as found in section 32 of IT Act, 1961 when used with respect to discarded machinery would mean that the user in the business is not in the relevant financial year... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Writ petition can be dismissed even if the alternative remedy is available to the petitioner under SEBI Act, 1992 Posted: 15 Sep 2009 08:01 PM PDT SUMMARY OF CASE LAW It cannot be laid down as a proposition of law that once a petition is admitted, it could never be dismissed on the ground of alternative remedy; therefore, the High Court can entertain the plea whether the writ is maintainable... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] SCODA proposed disclosure of audited balance sheet on a half-yearly basis by listed companies Posted: 15 Sep 2009 07:03 PM PDT Presently, all registered companies in India are required, inter-alia, under section 210 of the Companies Act, 1956 to lay down before its share holders, during its annual general meeting, a balance sheet, providing a statement of assets and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Discussion paper on proposals relating to amendments to the Listing Agreement Posted: 15 Sep 2009 06:57 PM PDT 1. Background SEBI Committee on Disclosures and Accounting Standards (SCODA) is the standing Committee of SEBI that advises on matters relating to disclosures and accounting standards. As part of a review of the extant norms relating to disclosure... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] SEBI Committee recommended mandatory rotation of Partner doing audit of listed company Posted: 15 Sep 2009 06:34 PM PDT SEBI Committee on Disclosures and Accounting Standards (SCODA) has recommended mandatory rotation — every five years — of the partners of the audit firms signing the accounts of a listed company. This is to ensure that the statutory auditors are... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] All-in-one PC maintenance tool for free Posted: 15 Sep 2009 06:28 PM PDT Windows OS that we use day-in and day-out needs to be maintained regularly for optimum performance. If not done regularly, the experience would be similar to driving a two wheeler without any maintenance. I was looking for a hassle free freeware... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 15.09.2009

UPDATES FROM TAX GURU Common reasons for non receipt of confirmation or rejection of your IT Return After filing returns online and posting it to the newly set-up Bangalore processing centre, if you haven't got an email receipt from the income-tax department, your returns could have been rejected. The I-T department email receipt may not... TPAs may deduct tax from hospital bills paid for treatment of subscribers in cashless systems THIRD Party Administrators (TPAs), which process health insurance claims and make payments to hospitals for treatment of subscribers in cashless systems, may soon have to deduct tax from the payments they make to hospitals. The apex direct tax body,... Taxability of Pick-Up and drop facility provided by employers? PICK-UP and drop transport facility provided by employers is not a perquisite and hence not liable to tax, according to a recent ruling by a tax tribunal.  In a decision that has implications for the sectors such as BPO and IT, the Mumbai Income-Tax... CIBIL frequently asked questions (FAQ) and answers Q.1 What is CIBIL? CIBIL – India's first credit information bureau- is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its Members in the form of... Interest under section 234A, B and C are mandatory in nature and no discretion is vested in the Assessing Officer SUMMARY OF CASE LAW After the amendment to the provisions in the statute by Direct Tax Laws (Amendment) Act, 1987 with effect from 1-4-1987 interest payable under section 234A, B and C are mandatory in nature and no discretion is vested in the... What is to be assessed as income from lottery is only the actual income received and not any notional income SUMMARY OF CASE LAW What is assessable as income from winnings from lottery is real income and not notional income or income declared in the lottery as prize money. CASE LAW DETAILS Decided by: HIGH COURT OF KERALA,  In The case of: M. K. Raghu v.... If Assessee able to cure the defect in the Return then it will be valid return otherwise it will be invalid SUMMARY OF CASE LAW The signing of return by an unauthorized person cannot invalidate the return, but would make the return defective; when a defective return is filed, the Assessing Officer is obliged to give chance to the assessee to rectify the... Complain to SEBI must contain person sought to be arraigned was in charge of the affairs of the company SUMMARY OF CASE LAW Mere allegations contained in a line or two against the directors without specifying the violative act committed by any of the directors would not suffice to make the directors offenders so as to summon them for the offences... Voluntary retirement compensation and chargeability to tax if payment is stretched over a period of years SUMMARY OF CASE LAW Benefit in lieu of salary payable to an employee opting for voluntary retirement is exempted from being charged to tax to the extent of Rs. 5 lakhs by reason of section 10(10C); even if the payment is stretched over a period of... Assessee entitled to Cenvat credit on inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory SUMMARY OF CASE LAW The definition of "input" brings within its fold, inputs used for generation of electricity or steam, provided such electricity or steam is used within the factory of production for manufacture of final products or... Cashless ESOP benefits are not taxable : ITAT Mumbai CASE LAW DETAILS Decided by: ITAT Mumbai,   In The case of: Bomi S. Billimoria vs. ACIT ,  Appeal No.:,  ITA NO. 2120/MUM/1998 (Assessment Year 1993-94), Date of Order: 30th June 2009. SUMMARY OF CASE LAW The assessee, an employee of Johnson &... Govt. Launched website of Copyright Office providing facility of on-line filing of copyright applications Shri Kapil Sibal, Union Minister of Human Resource Development launched a new Portal of the Copyright Office which includes a facility of on-line filing of copyright applications, here today. Also present on the occasion were Shri R.P. Agrawal,... ICAI president written Letter to RBI regarding Procedure for allocation of Central Statutory Audits of Public Sector Banks PD/A-32/2009 9th September, 2009 Smt. Usha Thorat Deputy Governor Reserve Bank of India Central Office Building 18th Floor, Shahid Bhagat Singh Road Mumbai-400 001. Madam, Sub: Procedure for allocation of Central Statutory Audits of Public Sector... ICAI denies news item entitled "ICICI Bank's Rs. 10K-cr bad loans under lens" Published in ET We are producing below the  clarification in regard to the above published on ICAIs website. 13th September, 2009 The Editor. The Economics Times, Times House, 7, Bahadur Shah Zafar Marg, New Delhi – 110002 This has reference to the lead news item... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 14.09.2009

UPDATES FROM TAX GURU ICAI requested RBI to re-audit bad home loans sold to ARCIL by ICICI bank for irregularities THE INSTITUTE of Chartered Accountants of India (ICAI) has raised questions about ICICI Bank's home loans business and has sought a fresh central bank audit of a two-year-old sale deal of dud loans, after a Mumbai-based chartered accountant spotted... e-payment of stamp duty in forms of ROC and frequently asked questions (FAQ) In furtherance of e-governance initiatives, provisions regarding stamp duty applicable on filing of e-forms have been amended and stakeholders shall have facility to pay stamp duty in electronic manner also. As of now, this process shall cover Form... Assessing officer not having reason to believe that the seized cash represented the undisclosed income and rejection of application for release of the same CASE LAW DETAILS Decided by: High Court of Punjab & Haryana,  In The case of: Rajinder Kumar Verma v. Union of India Adarsh Kumar Goel and L.N. Mittal, JJ., Appeal No.: C.W.P. No. 18727 of 2007, Decided on: November 11, 2008 RELEVENT... Assessee can not claim Indexation benefit on Indira Vikas Patra (IVP) on receipt of payment of the same SUMMARY OF CASE LAW Repayment of the deposited amount with interest on maturity by the Post Office cannot be treated as consideration for transfer of  Indira Vikas patra (IVP) by the holder for the purpose of section 48. CASE LAW DETAILS Decided by:... Assessee maintaining books of accounts only can claim deductions, allowances and rebates provided in-the Statute SUMMARY OF CASE LAW Admissibility of claim of further deduction in a case where assessee has not maintained books of accounts and has returned his professional income on estimation basis. CASE LAW DETAILS Decided by: HIGH COURT OF KERALA, In The... TRO may enquire in respect of benami property for recovering the outstanding demand of the assessee SUMMARY OF CASE LAW The limited scope of enquiry of the TRO while proceeding to exercise his jurisdiction under Rule 11 may be akin to the scope of enquiry under Order XXI Rule 58 of the Code of Civil Procedure, 1908 (as it stood prior to 1976... Status of private limited company if shareholders exceed 50 and importance of records of ROC SUMMARY OF CASE LAW Supreme Court inter alia on prerequisites for conversion of a private company into a public company – It is not the records of the Registrar of Companies which determines the status of a company but the definition of a... All about Deduction under Section 80G of the Income Tax Act, 1961 for donation INSPITE of all the contributions made to social causes, there is a huge gap between the demand of money from the needy and the amount donated by philanthropists. This probably, is the reason why the Government has given tax benefits on donations.... ICAI announced Last date for Application for permission to vote by post ELECTION – 2009 : PERMISSION TO VOTE BY POST Last date for request of application complete in all respect is 1st October, 2009. Application is to be made in prescribed form of "Application for permission to vote by post". The said form is enclosed... ICWAI to be renamed as Institute of Cost and Management Accountants of India (ICMAI) Cost accounting body The Institute of Cost and Works Accountants of India (ICWAI) will soon be known as "Institute of Cost and Management Accountants of India (ICMAI)" with the government agreeing for a change of name of the body. "The... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 13.09.2009

UPDATES FROM TAX GURU (in this message: 2 new items) Comparison between SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 vis-à-vis the SEBI (Disclosure and Investor Protection) Guidelines, 2000 Posted: 12 Sep 2009 07:18 PM PDT A comparison between Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 vis-à-vis the SEBI (Disclosure and Investor Protection) Guidelines, 2000 The Securities and Exchange Board of India is... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Property Law: Frequently Asked question (FAQ) Posted: 12 Sep 2009 06:50 PM PDT 1. Question: What is "property"? Answer: Property implies a bundle of rights over a thing. The scope of such rights is variable and can extend to excluding everyone else from interfering with his enjoyment of that thing. 2. Question: Can "trade... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 12.09.2009 (Deduction U/s 80E)

UPDATES FROM TAX GURU Deduction under section 80E for Interest on education Loan taken for self and relatives Have you taken an education loan to support higher studies of yourself or of your spouse, Children or for the student of whom you are legal guardian and you are not aware of the tax benefits that you are entitled to. Then here is a guide that will... ICWAI urges government for more regulatory powers Shri Salman Khurshid, Minister for Corporate Affairs, has expressed confidence that under the present scenario, the Cost and Management Accounting professionals can play a major role in government initiative to control the inflation and make... Rescission of Notification No. 28/2009 – Service Tax, dated 31-8-2009 Notification No. 36/2009-Service Tax, dated 9-9-2009 In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied... Income Tax (IT) raid at HDIL , admitted tax evasion of more than 300 crore The Income Tax (I-T) department has raided 12 Housing Development and Infrastructure (HDIL) premises, reports CNBC-TV18 quoting sources. The raided premises include residences of two HDIL directors. HDIL's shares dropped 3.85% on the Bombay Stock... SEBI appointed committee recommended limiting the period for participation by QIBs in the IPO to 2 or 3 days THE Securities and Exchange Board of India (Sebi)-appointed primary market advisory committee (PMAC), which met on Thursday, has recommended limiting the period for participation by qualified institutional buyers (QIBs) in the subscription process... Stock Exchange card is not an intangible asset eligible for depreciation U/s. 32 (1) of the Income Tax Act 1961 In A judgment that could have a bearing on the tax outgo of many stock brokers, the Bombay High Court on Friday ruled that depreciation cannot be claimed on stock exchange membership cards, while calculating tax liabilities. The I-T Department's... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 11.09.2009

UPDATES FROM TAX GURU (in this message: 10 new items) Renting of Immovable Property Renting of Immovable Property – Delhi High Court Decision The Division Bench of the Delhi High Court comprising of Justice Badar  Durrez Ahmed and  Justice  Rajiv Shikader gave  a milestone  judgment  on  18th  April, 2009, in the case of Home... No addition could be made solely on the basis of material found in the possession of third party SUMMARY OF CASE LAW There must be a direct nexus between the material found in the course of search at the assessee's premises as well as other material gathered by the Assessing Officer from extraneous sources; if there is no such nexus then... Allowability of expenses towards penalty and damages in compensatory nature SUMMARY OF CASE LAW The payment which is punitive, is not allowable and in case the payment is compensatory, then the payment to the extent the same is of compensatory nature is to be allowed. CASE LAW DETAILS Decided by: ITAT, BANGALORE BENCH... Deduction U/s. 80HHF available on sale not on Production or mere allotment SUMMARY OF CASE LAW Deduction under section 80HHF does not hinge upon production of film software, but it essentially involves the element of export or transfer by any means of film software, outside India; mere allotment of IEC does not ipso facto... Liability can not be added to income just because they are old or not proved genuine SUMMARY OF CASE LAW Section 41(1) concerns with only trading liability and not with any other type of liability; every liability standing in the balance sheet cannot be presumed to be a trading liability; where the assessee has not written off a... Allowability of depreciation on non-compete fee u/s. 32 of the Income Tax Act, 1961 CASE LAW DETAILS Decided by: ITAT, BENCH `C', CHENNAI,In The case of: Srivatsan Surveyors Pvt. Ltd. v. ITO,Appeal No.: ITA No. 1899 (Mds.)/2007, Decided on: December 12, 2008 RELEVENT PARAGRAPH 3. We have heard the rival submissions in... Principle of mutuality applicable when there is complete identity between the contributors and the participators CASE LAW DETAILS Decided by: ITAT, MUMBAI BENCHES `E', MUMBAI, In The case of: The Jai Hind Co-op Housing Society Ltd. V.ITO, Appeal No.: ITA NO. 88/Mum/2006,  Decided on: December 17, 2008 RELEVENT PARAGRAPH 7. We have the rival submissions... Notice of Non-functioning ITAT Mumbai Benches for the period from 14.09.09 to 17.09.09 Notice of Non-functioning Benches from period of 14.09.09 to 17.09.09 The Following Benches will Not function during the period from 14.09.2009 to 17.09.2009"H", "I", "K", & "WT"The cases are... Scheme for Filing of Statutory Documents and other Transactions by Companies in Electronic Mode [PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART – II, SECTION 3, SUB-SECTION (ii)] Government of India, Ministry of Corporate Affairs, New Delhi Notification  Dated : 7th September, 2009. S.O. 2276 (E) – In exercise of the powers conferred... Empanelment with ROC for Technical Scrutiny of Balance Sheets & Format of Agreement Circular Issued by: – Government of India, Ministry of Corporate Affairs, Office of Registrar of Companies. Issued to: Local Chapter, ICAI/ICSI/ICWAI Sub: - Panel for outsourcing of work of Technical Scrutiny of Balance Sheets. This... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 10.09.2009

UPDATES FROM TAX GURU Generate Audit Report in 3CD form with Tally.ERP 9 – Auditors' Edition Tally.ERP 9 – Auditors' Edition provides you, as a CA, the facility to print Form 3CD with the required Annexure, to file Tax Audit returns under section 44AB. Using Tally.ERP 9 – Auditors' Edition, you can now directly print Form 3CD. You can... Cost Inflation Index for Financial Year 2009-10 and Assessment year 2010-11 notified NOTIFICATION NO : 67/2009, Dated: September 9, 2009 In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the... Evidence gathered during a 1992 I-T raid at premises of Bhupen and Milan Dalal goes missing The accused, Bhupen Dalal (l) and his son Milan. As per standard procedure, the cupboard had been kept in one of their offices by Income Tax officials. Seventeen years since they started their investigations against Big Bull Harshad Mehta's... Kerala rolled out e-payment facility for VAT dealers Having achieved 100 per cent e-filing of returns, the State Government has taken the next logical step of introducing 'e-payment' to all its registered VAT dealers. e-payment has been made mandatory for all TIN dealers from September 1. It was... RBI circular on Collection of Account Payee Cheques – Prohibition on Crediting Proceeds to Third Party Account RBI/2009-10/ 148 —RPCD.CO.RF.BC. No.18 /07.38.03/2009- 10 Dated: September  7, 2009 All State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) Dear Sir, Collection of Account Payee Cheques – Prohibition on... Recognition can not be denied U/s. 80G (5) only on the ground that the particulars of donors are not provided by Institution or fund SUMMARY OF CASE LAW There is no provision either in the Act or in the Rules made thereunder to refuse recognition under section 80G(5) or continuation thereof only on the ground that the particulars of donors are not provided by Institution or... Agricultural land which is gifted cannot be taxed as income from other sources SUMMARY OF CASE LAW If agricultural land cannot be considered as "any sum of money"; provisions of section 56(2)(v) cannot be applied. CASE LAW DETAILS Decided by: ITAT, JAIPUR BENCH `A' JAIPUR,In The case of: ITO  v Komal... Payment made in cash for purchase from local producers either directly or through their agents and disallowance of expense u/s. 40A(3) SUMMARY OF CASE LAW Where the assessee purchased raw hides/skins for the purposes of manufacturing leather and leather products from local producers either directly or through their agents, the payment made in cash for such purchase would be covered... Revision under section 263 of IT Act, 1961 is not reassessment SUMMARY OF CASE LAW In the revision proceedings, the CIT cannot travel beyond the reasons given by him for revision in the show cause notice. CASE LAW DETAILS Decided by: ITAT, `G' BENCH, MUMBAI,In The case of: Geometric Software Solutions... Issue decided on merit cannot be construed as decided on the basis of mistake apparent from the record SUMMARY OF CASE LAW The issue decided on merit after appreciation of the facts of the case cannot be construed as suffering from patent, self-evident, glaring and mistake apparent from the record as contemplated under section 254(2). CASE LAW... Eligibility of deduction under section 80P on Profit to society from storing of trading goods SUMMARY OF CASE LAW Where the assessee-society was storing the controlled commodities in its godowns as part of its own trading stock, it was not entitled to claim deduction for the margin of profit between issue price and sale price of the... AZS Media Group launched world's first Islamic search engine Across the world Muslims will be able to surf the Web without accidentally encountering explicit material, after a Dutch company launched the world's first Islamic search engine Monday. The search engine, ImHalal.com, or "I am Halal," works by... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 09.09.2009

UPDATES FROM TAX GURU Checklist/Procedure for Conversion of Partnership firm into a company Conversion of Firm under Part IX  of the Companies Act, 1956 :- The firm may be converted into a company by following the provisions of Part IX of the Companies Act, 1956. Sections 565 to 581 deal with conversion of firms into a company under the... Taxation of Limited Liability Partnership (LLPS) in India Limited liability partnership (LLP) is essentially a partnership constituted in corporate form which has a separate legal identity distinct from its partners. Its primary advantage is the benefit of limited liability, a feature not prevalent in... Expenses incurred by a company in relation to advertising and promoting a brand owned by it would be eligible for input tax credits In a recent landmark judgement in Coca Cola India Pvt. Ltd. vs. Commissioner of Central Excise (2009-VIL-06-HC-BOM-ST), the Mumbai High Court has interpreted the relevant provisions of service tax law in a broad and inclusive manner in order to hold... IRDA issued norms for transfer of Agents between insurance companies Insurance policy holders will now have no difficulty if their agents suddenly switch from one insurer to another, which results in lack of service. The insurers will now have to enter into an agreement with their agents/corporate agents for... Requirement and procedure for obtaining commencement of business certificate Certificate of Commencement of Business: Procedural Analysis The date of incorporation of a company may not be the date of commencement of business. A private company and a public limited company not having share capital are not required to comply... Service tax exemption to five more export promotion councils The Finance Ministry has extended service tax exemption to five more export promotion councils (EPCs). With this move, the total number of EPCs that could avail themselves of service tax exemption has gone up to 27 across the country. Budget 2009-10... Department filed appeal in high court against pharma companies not deducting TDS on contract manufacturing Drug firms outsourcing finished products for domestic as well as export markets are under the income-tax (I-T) scanner. The I-T department has dragged around half a dozen leading drug makers, including Novartis Healthcare Pvt. Ltd, Elder... Oil & gas service providers not been provided benefit of presumptive taxation in DTC Under the existing provisions of Section 44BB of the Act, which has non-obstante clause overriding the other provisions of the Act, non-resident service providers to oil & gas industry enjoy a tax regime wherein 10% of the gross receipts are... Roc issued New Version of many online filing forms New version of Form 15, 1INV, 21, 23, 23AA, 23C, 24, 25B, 25C, 3, 32, 35A, 37, 39, 4C, CAR, DDB, 24AB, 23AAC, 65, 63, DD-C, 23AAA, Form I- Application for appointment of sole selling agent, Form of annual return of a foreign company having a share... With Regards, Sandeep Kanoi My Website: http://www.taxguru.in/ Subscribe for Free Income Tax Updates   Enter your email address: Delivered by FeedBurner ↑ Grab this Headline Animator

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UPDATES FROM TAX GURU 08.09.2009

UPDATES FROM TAX GURU IT department facing criticism for showing national flag in its advertisement A Mumbai-based social worker has threatened to press charges against the I-T department for placing ads in various newspapers, which allegedly disrespect the national flag. According to Sundeep Sharma , the advertisement, which urges people to pay... Government considering a proposal to raise the tax exemption limit for transport allowance to Rs 3,200 a month from Rs 800 The government is considering a proposal to raise the tax exemption limit for transport allowance to Rs 3,200 a month from Rs 800 follows a similar hike for government servants under the Sixth Pay Commission award. It is likely to find adoption in... IT dept not happy with stripping of CBDT power to issue certain orders, instructions, directions and circulars in DTC THE new direct tax code, launched with much fanfare by finance minister Pranab Mukherjee and his predecessor P Chidambaram recently, is up against a bureaucratic wall with the Indian Revenue Service (IRS) brigade complaining that it will reduce this... Meaning of Shariah index and reasons for the creation of such indices Meaning:- A SHARIAH Index in an index of companies that are found to be compliant with the Islamic canonical law or the Shariah. Most Shariah indices which have been created so far have been based on an existing or an underlying index, whose... Acquisition of unlisted foreign companies by Indian corporates will be scrutnised by Income Tax Department Acquisition of unlisted foreign companies by Indian corporates has come under the scanner of income-tax (I-T) authorities who plan to scrutinise the deals to ensure they are not being structured to evade tax. Deals involving equity swaps are... ICWAI recommended compulsory cost audit of all companies It may now become compulsory for all big and medium manufacturing companies to get their cost accounts audited, if an expert group's recommendation on the same is accepted by the government. The 13-member expert group comprising... Provisions contained in Companies Bill, 2009 related to the profession of Company Secretaries 1.  Key Managerial Personnel (Clause 178) (a)  Definition As per clause 178, every company belonging to such class or description of companies as may be prescribed shall have Whole-Time Key Managerial Personnel (KMP). A Company Secretary is a... Management in India not sufficient ground to deny exemption from tax to a company based outside India Having an effective management in India is not a sufficient ground to deny exemption from capital gains tax to a company that is based in Mauritius, ruled a Delhi bench of the Income-Tax Appellate Tribunal (ITAT). The ITAT held that under the... Government planning confiscation of assets of tax defaulters The government will arm income-tax officials with details about assets of individuals whose tax payments are pending, a move aimed at meeting the Rs 13,153-crore target for arrears collection this fiscal. With tax arrears of Rs 2,13,646 crore due... ICAI announced Constitution of Committee on Electoral Reforms September, 07th 2009 , The President of the Institute has constituted a Committee on Electoral Reforms, comprising of the following members, to suggest electoral reforms, based on the experience gained in the elections held under the Chartered... CBDT ordered scrutiny of certain type of receipts, Companies deferring TDS transfers & others The interest paid on delayed compensation to land owners by companies or entities engaged in the creation of Special Economic Zones, industrial parks and infrastructure developments,and payments by electricity distribution companies to transmission... LLP act provides lot of benefit to foreign investors A company incorporated outside India is entitled to become partner in LLP. The LLP Act also provides that a "Foreign Limited Liability Partnership" can also establish a place of business in India.A careful study of the LLP Act will reveal that an... Income Tax gazetted officers and employees threatened to strike work on September 9 The Income Tax gazetted officers and employees under the umbrella of Joint Council of Action have threatened to strike work on September 9, to protest delay in implementation of a 11-point charter of demands, pending with the Central Board of Direct... ICAI not submitted its report on Satyam even after seven month of fraud Corporate Affairs Minister Salman Khurshid has said he would exert pressure on the Institute of Chartered Accountants of India for a final report on the multi-crore Satyam  fraud, although the accounting regulator said it has submitted one in... For s. 47(v), share capital of the subsidiary need not be "held" in the name of the holding company CASE LAW DETAILS Decided by: Delhi High Court, In The case of: The Commissioner of Income Tax (Appellant) Vs. M/s.Papilion Investments Pvt. Ltd.  (Respondent), Appeal No.: 4 SOT 304 (Mumbai), Decided on: 28Th August 2009. SUMMARY OF CASE LAW S. 47... With Regards, Sandeep Kanoi My Website: http://www.taxguru.in/ Subscribe for Free Income Tax Updates

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UPDATES FROM TAX GURU 07.09.2009

UPDATES FROM TAX GURU Section 145A have disabled the assessee from frequently changing the method of valuation of the stocks CASE LAW DETAILS Decided by: ITAT, DELHI BENCH `A' : New Delhi,  In The case of: Ananta Raj  proteins Ltd. v. DCIT , Appeal No.: ITA No. 890 & 891/D/2007, Decided on: June 30, 2009 RELEVENT PARAGRAPH 13. It may be mentioned that... Treatment of profit on sale of shares when Assessee hold shares for more then 12 months SUMMARY OF CASE LAW Even after holding the shares for more than 12 months and showing such intention from the conduct, the Assessing Officer cannot replace his opinion for that of the assessee in holding that the shares are held as stock-in-trade... Taxability as perquisite of Transport facility provided to an employee from his residence to office and vice- versa SUMMARY OF CASE LAW Transport facility provided to an employee from his residence to office and office to residence is not a perquisite within the meaning of section 17(2) of IT Act, 1961. CASE LAW DETAILS Decided by: ITAT, MUMBAI BENCH `G',... For proving a gift to be genuine Assessee need to prove existence of natural love and affection SUMMARY OF CASE LAW For proving a gift to be genuine, the assessee-donee is required to prove the existence of natural love and affection between the donor and donee, voluntary nature of the gift and the occasion for giving gifts; for a gift to be... Allowability of deduction u/s 33AC to the Assessee using ships/barges owned by the third party SUMMARY OF CASE LAW The ships include barges; the ships/barges owned by the third party when operated in the assessee's business, the assessee is entitled to the deduction under section 33AC. CASE LAW DETAILS Decided by: ITAT, `C' BENCH... Circular on Power to grant exemption from Service tax Section 93 of the Finance Act, 1994 – Power to grant exemption from Service tax – Amendment in Notification No. 16/2009 – Service Tax, Dated 7-7-2009 Notification No. 35/2009-Service Tax, dated 3-9-2009 In exercise of the powers conferred by... CA student can submit there details on white paper instead of Examination form Announcement – CA Examinations to be held in November 2009 – (05-09-2009) The Students desirous of applying for admission to CA Final, Final (New Course), PE-II, PCE and IPCE/ATC Examinations to be held in November 2009 may please note... Opportunity to Newly Qualified CAs to participate in Campus Placement Programme Opportunity to Newly Qualified CAs to participate in Campus Placement Programme Aug-Sep,2009 at Smaller Centre upto 13.09.2009 12:00 Midnight Campus Placement Programme- August-September 2009 For The Newly Qualified Chartered Accountants Important... P.S.G. & Sons Charities for the unit P.S.G. College of Technology, Coimbator approved under section 35 (1)(ii) of the Income tax Act NOTIFICATION NO. 64/2009, DATED 1-9-2009 It is hereby notified for general information that the organization P.S.G. & Sons Charities for the unit P.S.G. College of Technology, Coimbatore, has been approved by the Central Government for the... Centre for Development of Advanced Computing, Pune approved under clause (ii) of sub-section (1) of section 35 of the Income tax Act, 1961 NOTIFICATION NO. 63/2009, DATED 31-8-2009 It is hereby notified for general information that the organization Centre for Development of Advanced Computing, Pune has been approved by the Central Government for the purpose of clause (ii) of... RBI circular on extension of last date under Agricultural Debt Waiver and Debt Relief Scheme, 2008 RBI/2009-10/145 UBD.BPD.PCB.Cir.No 8 /13.05.006/2009-10 Dated: September 3, 2009 The Chief Executive Officer, All Primary (Urban) Co-operative Banks Dear Sir/Madam, Budget Announcement 2009-10-Extension of last date under One Time Settlement Scheme... RBI circular to Stand-alone Primary Dealers – Enhancement of Minimum Net Owned Funds RBI/2009-10/144 IDMD.PDRD.No. 1097/ 03.64.00/2009-10 Dated: September 2, 2009 All Stand-alone Primary Dealers Dear Sir, Stand-alone Primary Dealers – Enhancement of Minimum Net Owned Funds A reference is invited to our Master Circular... RBI circular on Stand-alone Primary Dealers – Increase in Call/Notice Money Borrowing Limit RBI/2009-10/143 IDMD.PDRD.No. 1096/ 03.64.00/2009-10 Dated: September 2, 2009 All Stand-alone Primary Dealers Dear Sir, Stand-alone Primary Dealers – Increase in Call/Notice Money Borrowing Limit Please refer to our Master Circular... RBI circular on display of information regarding Local Level Committees RBI/2009-10/142 DBOD.No.Leg.BC. 37 /09.07.005/2009-10 Dated: September 2, 2009 All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Display of information regarding Local Level Committees set up under the National Trust for the Welfare of... RBI circular on Payment of interest on Savings Bank Account on a Daily Product Basis – UCBs RBI/2009-10/140 UBD (PCB) BPD Cir No. 7 /13.01.000/2009-10 September 01, 2009 Chief Executive Officer of All Primary (urban) Cooperative Banks Dear Sir/ Madam Payment of interest on Savings Bank Account on a Daily Product Basis – UCBs. Please refer... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 06.09.2009

UPDATES FROM TAX GURU  All about Deduction U/s 80D for Mediclaim Premium available to Individual, HUF and Senior Citizens Posted: 05 Sep 2009 09:07 PM PDT Deduction in respect of Medical Insurance Premium (Mediclaim) paid to keep in force insurance by individual either on his own health or on the health of spouse, dependent parents and children or HUF on the health of any members of the family. A... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Download Examination form for CPT, PE -II, PCE, IPCE and CA final Examination conducted by ICAI Posted: 05 Sep 2009 01:05 AM PDT Those who are looking to fill examination form for the CPT, PE -II, PCE, IPCE and CA final Examination conducted by ICAI can now download the form from the following website http://icaiexam.icai.org/ . Last date of submission of online application... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 05.09.2009

UPDATES FROM TAX GURU  Supreme Court and CBDT deliver a headblow to the Assessee Engaged in Propelling Growth of the Nation The SUPREME COURT vide its order Dated – August 31, 2009 in the case of M/s Liberty India Versus Commissioner of Income Tax was requested to determine the following question:- "Whether profit from Duty Entitlement Passbook Scheme (DEPB) and... Swiss bank may share detail of tax evaders with India India and Switzerland will soon start negotiations to enlarge the scope of their bilateral double taxation treaty to allow sharing of details of bank accounts of people accused of tax evasion, visiting Swiss Vice-President and Minister of Economic... Clarification on FDI into a SSI & MSE and in Industrial Undertaking manufacturing items reserved for SSII MSE Press Note No. 6 (2009), dated 4-9-2009 1.0 FDI into SSIIMSE 1.1 A Small Scale industrial undertaking (SSI) was defined in terms of: (i) investment in fixed assets in plant and machinery and (ii) equity participation (both domestic and foreign) in... SEBI issued circular on Allocation methodology of debt investment limits to FIIs Cir No. IMD/FII & C/40/2009  Dated : September 04, 2009 Sub: Allocation methodology of debt investment limits to FIIs Allocation through bidding process 1. Please refer to SEBI circular IMD/FII & C/ 37/2009 dated February 06, 2009 IMD/FII... Amendments to Equity Listing Agreement-SEBI CIRCULAR NO. CFD/DIL/LA/2009/3/2, DATED 3-2-2009 1.0 It has been decided to amend certain clauses in the Equity Listing Agreement to enhance disclosures regarding shareholding of promoters and promoter group. Accordingly, this circular is issued in... Amendments to SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 The Securities and Exchange Board of India (Sebi) has allowed pricing of employee stock options (ESOPs) on the Black-Scholes model or a Binomial model. This model uses an option-racing model that takes into account, as of the grant date, the... Sub-brokers likely to be exempted from the requirement of registering with SEBI Sub-brokers in the stock market are likely to be exempted from the requirement of registering with the capital market regulator before starting their operations as per a proposal under consideration of the finance ministry and the Securities and... Many countries looking to hike hike personal income tax rates The governments around the world may consider funding their increasing deficits by hiking personal income tax rates, though India may not be one among those, with the tax rates in the country nearly constant over the last seven years. The highest... Government working to rationalise state and central level-taxes on petrol and diesel The government is taking steps to rationalise various central and state level-taxes on auto fuels, a oil ministry spokesman said. Taxes and duties are as high as over 51% and 23% on petrol and diesel, respectively in Delhi. "As part of UPA... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 04.10.2009

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... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 03.09.2009

UPDATES FROM TAX GURU PCE & top two rank holders for PE-II held in June-2009 The Institute of Chartered Accountants of India (ICAI) today announced the results of Professional Competence Exam (PCE) and Professional Education Examination (PE-II) held in June-2009. The results were made online in the morning for the exams... ICAI election – 2009 – Availability of List of Voters In pursuance of sub-rules (3) and (5) of rule 6 of the Chartered Accountants (Election to the Council) Rules, 2006 specified under the Chartered Accountants Act, 1949 read with regulation 134 of the Chartered Accountants Regulations, 1988, it is... MRTP Act repealed and is replaced by the Competition Act, 2002, with effect from September 1, 2009 The Ministry of Corporate Affairs, Government of India has issued a Notification dated 28th August 2009, whereby the most controversial the Monopolies and Restrictive Trade Practices Act, 1969 ("the MRTP Act") stands repealed and is replaced by the... Circular on Powers of adjudication of the officers of Customs Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise & Customs, North Block, New Delhi Circular No. 23/2009-Customs, Dated : 1st September, 2009 Sir / Madam, I am directed to invite your attention to the... Dos and Don'ts for printing and submitting of ITR-V (Acknowledgment) to ITD-CPC Bangalore 1. Please use Ink Jet /Laser printer to print the ITR-V Form. 2. The ITR-V Form should be printed only in black ink. 3. Do not use any other ink option to print ITR V. 4. Use of Dot Matrix printer should be avoided. 5. Ensure that print out is clear... Penalty paid in the normal course of business is allowed in calculation of tax liabilities The Income-Tax Appellate Tribunal (ITAT) has held that any expenditure, which is viewed as an offence or is prohibited by law, but is of a commercial nature incurred in the normal course of business, can be treated as an outgo at the time of... CBDT introduced software to provide automatic alerts for scrutiny assessment The Central Board of Direct Taxes (CBDT) has introduced a new software programme, called '360 degree profiling', which would provide automatic alerts for scrutiny assessment of an individual or a company to the income tax department, based on its... DEPB and Duty Drawback are not eligible for deduction u/s 80-IB Decided by: Supreme Court of India, In The case of: M/s Liberty India versus Commissioner of Income Tax, Appeal No.: Civil Appeal No. of 2009 (arising out of S.L.P.(C) No. 5827/07), Decided on: August 31, 2009 SUMMARY OF CASE LAW The assessee... Amendment in the notification No. 1/2006- Service Tax, dated the 1st March, 2006 – Transport of goods in containers by rail New Delhi, the 1st September, 2009- Notification No. 34/2009-Service Tax In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in... Notification on Exempt Services in relation to transport of goods by rail Finance ministry has rolled back the proposal to impose a 10.3% service tax on goods transported by the railways. Budget 2009-10 had proposed a 10% service tax on goods carried by the railways, 'in order to provide a level-playing field in the goods... Exempt Services in relation to the manufacture of pharmaceutical products, medicines, perfumery, cosmetics or toilet preparations containing alcohol Posted: 02 Sep 2009 06:31 PM PDT New Delhi, the 1st September, 2009. Notification No. 32/2009-Service Tax G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the... Notification on Exempt Services in relation to sale or purchase of securities listed on a registered stock exchange by a sub-broker The government on Wednesday( 02.09.2009 )  exempted business auxiliary services provided by sub-brokers to stock brokers, or by anybody to someone engaged in manufacturing of excisable items like pharmaceuticals, medicines and perfumes from paying... ICAI presidents message to CA community on the XBRL, IFRS, Direct Tax Code, Satyam, Companies Bill, 2009 etc Dear CA Pariwar, The enthusiasm of our members and students throughout the country in celebrating our Diamond Jubilee Year has indeed been overwhelming and I would also like to take this opportunity to extend my heartfelt gratitude to all our... Modifications in the e-TDS/TCS data structure and new File Validation Utility applicable from October 1, 2009 The data structure of quarterly e-TDS / TCS statements has been modified by the Income Tax Department to incorporate certain additional fields and validations to further improve the data quality. New data structure (File format changes highlighted)... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 02.09.2009

UPDATES FROM TAX GURU  SC will decide on applicability of TDS on payments made to state-owned BSNL and MTNL for interconnectivity by private players THE Supreme Court will decide whether private telecom operators are liable to deduct TDS for the payments made to the state-owned BSNL and MTNL for interconnectivity. A bench comprising Justice SH Kapadia and Justice Aftab Alam on Friday issued... RBI issued circular, relaxing existing norms on Investment Portfolio of Primary Dealers RBI/2009-10/ 136  (IDMD.PDRD.No. 1050/ 03.64.00/2009- 10) Dated: August 31, 2009 All Standalone Primary Dealers Dear Sir, Investment Portfolio of Primary Dealers - Relaxation in the existing norms 1. Please refer to our Master Circular... CBDT advised to deduct TDS on second installment of arrears under the Sixth Central Pay Commission award The second installment of arrears under the Sixth Central Pay Commission award will not only put more money in the pockets of Government employees, but may also bolster direct tax collections. Sensing a good tax mop-up opportunity from this large... Notification on Compulsory E- Filing of Form-101 related to MVAT registration COMMISSIONER OF SALES TAX, MAHARASHTRA STATE Vikrikar Bhavan, Mazgaon, Mumbai 400 010, dated the 26th August 2009 NOTIFICATION Maharashtra Value Added Tax Act, 2002, No. VAT/AMD-1009/ IB/Adm-6.—In exercise of the powers conferred by sub-rule... Circular on Grant of refund under MVAT Act to specified category of dealers – Modifications/clarifications Trade Circular No.  24 T of 2009,    No. : – ACST/VAT 01/ Refunds/ Mumbai, Dt :  29th August 2009 Subject: -  Grant  of  refund  under  MVAT  Act  to  specified category of dealers – Modifications/clarifications Gentlemen /Sir /Madam, 1.... Trade advance given to give effect to a commercial transaction can not be treated as deemed dividend SUMMARY OF CASE LAW Section 2(22) of the Income-tax Act, 1961 – Deemed dividend – Assessment year 1996-97 – Whether word `advance', which appears in company of word `loan' in section 2(22)(e), can only mean such advance... Identification of donor and receipt of gift by cheque not sufficient to prove genuineness of gift CASE LAW DETAILS Decided by: HIGH COURT OF PUNJAB AND HARYANA,  In The case of: Yash Pal Goel v. Commissioner of Income-tax (Appeals), Chandigarh,  Appeal No.: [2009] 181 TAXMAN 175 (PUNJ. & HAR.) , IT APPEAL NO. 389 OF 2008 ( Decided on:... Replacement expenditure is neither current repairs nor revenue : SC In The case of: CIT vs. Sri Mangayarkarasi Mills (Supreme Court) RELEVENT PARAGRAPH The assessee incurred expenditure on replacement of machinery in a textile mill and claimed the same as revenue expenditure on the ground that it was merely for... Section 55A of the Income-tax Act, 1961 related Capital gains and Reference to Valuation Officer