TaxGuru.in : Legal & Tax Updates 02.03.2011

TaxGuru.in : Legal & Tax Updates  Over 2.8 crore bogus ration cards deleted from list Posted: 01 Mar 2011 06:30 PM PST In a nationwide crackdown on bogus ration card holders, over 2.8 crore ineligible ration cards have been deleted from July 2006 till now in different parts of the country, Parliament was informed today. Maximum 59.67 lakh bogus ration cards were... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Boards of 25 Central Public Sector Enterprises (CPSEs) do not have Requisite Number of Independent Directors Posted: 01 Mar 2011 06:09 PM PST As per the Clause 49 of the Equity Listing Agreement, all the listed entities including listed Central Public Sector Enterprises (CPSEs) are required to appoint requisite number of Independent Directors on their Boards. Where the Chairman of the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Two exemption Notifications- litigation inbuilt Posted: 01 Mar 2011 05:25 PM PST The hon'ble Finance Minister of India has introduced the Finance Bill, 2011 on 25.2.2011. This bill has withdrawn a no. of exemptions given to various tariff items. By this bill, a no. of entries that attracted the NIL rate of duty in tariff has... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Changing Levy of import duty on Stainless Steel Scrap Posted: 01 Mar 2011 05:20 PM PST The rate of customs duty on the import of Stainless Steel Scrap under exemption Notification No. 21/2002-Cus dated 01.03.2002 has always been surrounded by controversies. There has been an amendment in the rate of duty on the import of SS scrap in... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Change in Rate of Service Tax on Money Changers Posted: 01 Mar 2011 05:13 PM PST With effect from 16.05.2008, the services pertaining to purchase or sale of foreign currency, including money changing was brought under service tax. The authorised dealers in foreign exchange or authorized changers were also covered. The Authorised... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-12 – Ceiling rate on Declared goods u/s 15 of CST Act proposed to increase to 5 Percent Posted: 01 Mar 2011 05:08 PM PST It has been proposed in the Budget 2011-12 to increase the ceiling of 4% on declared goods under section 15 of CST Act to 5%. Currently State Governments cannot levy VAT more than 4% on declared goods. [[ This is a content summary only. Visit www.taxguru.in for full article ]] MCA Notified Ind-AS – Key Issues and Differences with IASB IFRS Posted: 01 Mar 2011 04:41 PM PST The Ministry of Corporate Affair (MCA) has notified 35 Indian IFRS standards (known as "Ind-AS'), without announcing the applicability date. In its press release, the MCA has stated that Ind-AS will be applied in a phased manner, to ensure smooth... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Change in Service Tax Refund Scheme Posted: 01 Mar 2011 04:28 PM PST The scheme of refund of service tax paid on specified services which were utilised for export of goods was given effect in 2007 vide Notification No. 41/2007-ST dated 06.10.2007. The exemption was granted by way of refund. However, announcing the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Changes proposed for introducing Goods and Service Tax (GST) Posted: 01 Mar 2011 04:12 PM PST steps proposed to be taken for introduction of GST by the Finance Minister are establishment of a strong IT infrastructure. It was also announced that significant progress on the GST network (GSTN) has been made. The key business processes of... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Income Tax – Major Highlights of Union Budget – 2011-12 Posted: 01 Mar 2011 04:00 PM PST The following are the major Highlights of the Union Budget 2011-12 presented by the Hon'ble Finance Minister Mr. Pranab Mukherjee in the Parliament on Monday (i.e. Feb. 28th 2011). Direct Tax Code (DTC) is proposed to be introduced from April 1st... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Union Budget 2011-12 – ICAI View Posted: 01 Mar 2011 10:00 AM PST The Union Finance Minister has presented the budget for 2011-12 in the backdrop of growth of GDP @ 8.6% in 2010-11, contributed by a growth of 5.4% in agriculture, 8.1% in industry and 9.6% in services. The Minister shared that the economy has shown... [[ This is a content summary only. Visit www.taxguru.in for full article ]] The ICSI welcomes sustainable growth oriented Union Budget 2011-12 Posted: 01 Mar 2011 09:55 AM PST Budget to help broad based rebound in agriculture and continued momentum in Manufacturing Sector. CS Anil Murarka, President, ICSI. Budget reflects financial translation of the policy initiatives of the government towards inclusive growth. CS N K... [[ This is a content summary only. Visit www.taxguru.in for full article ]] ICAI President's Message – March 2011 Posted: 01 Mar 2011 09:54 AM PST In accordance with the decision of the Council and the suggestions of NACAS, the Indian Accounting Standard on Agriculture is being redrafted. We decided to make amendment in existing AS 11 on the lines of Indian Accounting Standard (Ind AS 21),... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Summary of Chapter wise Changes in Custom Duty Posted: 01 Mar 2011 09:41 AM PST As a measure of rationalization of duty structure the rates of 2% and 3% are being unified with the median rate of 2.5%. Accordingly basic customs duty on all goods currently attracting 2% has been increased to 2.5% and basic customs duty on those... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Investment linked deduction in respect of specified businesses Posted: 01 Mar 2011 09:40 AM PST Under the existing provisions of section 35AD of the Income-tax Act, investment-linked tax incentive is provided by way of allowing hundred per cent. deduction in respect of any expenditure of capital nature (other than on land, goodwill and... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Collection of information on requests received from tax authorities outside India Posted: 01 Mar 2011 09:30 AM PST Under the existing provisions of section 131(1) of the Income-tax Act, certain income-tax authorities have been conferred the same powers as are available to a Civil Court while trying a suit in respect of discovery and inspection, enforcing the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Taxation of certain foreign dividends at a reduced rate Posted: 01 Mar 2011 09:28 AM PST Under the existing provisions of the Income-tax Act, dividend received from foreign companies is taxable in the hands of the resident shareholder at his applicable marginal rate of tax. Therefore, in case of Indian companies which receive foreign... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Toolbox of counter measures in respect of transactions with persons located in a notified jurisdictional area Posted: 01 Mar 2011 09:26 AM PST In order to discourage transactions by a resident assessee with persons located in any country or jurisdiction which does not effectively exchange information with India, anti-avoidance measures have been proposed in the Income-tax Act. [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Rationalisation of provisions relating to Transfer Pricing Posted: 01 Mar 2011 09:25 AM PST A. Section 92C of the Income-tax Act provides the procedure for computation of the Arm's Length Price (ALP). The section provides the methods of computing the ALP and mandates that the most appropriate method should be chosen to compute ALP. It is... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Sunset of tax holiday for certain undertakings engaged in commercial production of mineral oil Posted: 01 Mar 2011 09:23 AM PST Under the existing provisions of section 80-IB(9) of the Income-tax Act, a seven-year profit-linked deduction of hundred per cent. is available to an undertaking, if it fulfils any of the following, namely:-(i) is located in North-Eastern... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Extension of sunset clause for tax holiday for power sector Posted: 01 Mar 2011 09:20 AM PST Under the existing provisions of section 80-IA(4)(iv) of the Income-tax Act, a deduction of profits and gains is allowed to an undertaking which, (a) is set up for the generation and distribution of power if it begins to generate power at any... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Provisions relating to Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) in case of Special Economic Zones Posted: 01 Mar 2011 09:20 AM PST Under the existing provisions of section 10AA of the Income-tax Act, a deduction of hundred per cent. is allowed in respect of profits and gains derived by a unit located in a Special Economic Zone (SEZ) from the export of articles or things or... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Deduction for investment in long-term infrastructure bonds Posted: 01 Mar 2011 09:19 AM PST Under the existing provisions of section 80CCF of the Income-tax Act, a sum of Rs. 20,000 (over and above the existing limit of Rs. 1 lakh available under section BOCCE for tax savings) is allowed as deduction in computing the total income of an... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Tax benefits for New Pension System (NPS) Posted: 01 Mar 2011 09:18 AM PST Section 80CCD of the Income-tax Act provides, inter al/a, a deduction in respect of contributions made by an employee as well as an employer to the New Pension System (NPS) account on behalf of the employee. In view of the provisions of section... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Weighted deduction for contribution made for approved scientific research programme Posted: 01 Mar 2011 09:14 AM PST Under the existing provisions of section 35(2AA) of the Income-tax Act, weighted deduction to the extent of 175 per cent. is allowed for any sum paid to a National Laboratory or a university or an Indian Institute of Technology (IIT) or a specified... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Alternate Minimum Tax for Limited Liability Partnership (LLP) Posted: 01 Mar 2011 09:11 AM PST The Limited Liability Partnership Act, 2008 (LLP) has come into effect in 2009. The LLP has features of both a body corporate as well as a traditional partnership. The Income-tax Act provides for the same taxation regime for a limited liability... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-Rationalisation of Tax on Income distributed to unit holders Posted: 01 Mar 2011 09:10 AM PST Under the existing provisions contained in section 115R(2) of the Income-tax Act, a Mutual Fund is liable to pay additional income-tax on the amount of income distributed to its unit holders. It is proposed to levy additional income-tax at a higher... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Exemption to a class or classes of persons from furnishing a return of income Posted: 01 Mar 2011 09:08 AM PST Under the existing provisions contained in section 139(1) of the Income-tax Act, every person, if his total income during the previous year exceeds the maximum amount which is not chargeable to income-tax, is required to furnish a return of his... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Notification for processing of returns in Centralised Processing Centres Posted: 01 Mar 2011 09:06 AM PST Under the existing provisions of section 143(1 B) of the Income-tax Act, the Central Government may, for the purpose of giving effect to the scheme made under section 143(1A), by notification in the Official Gazette, direct that any of the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Extension of time limit for assessments in case of exchange of information Posted: 01 Mar 2011 09:05 AM PST Section 153 of the Income-tax Act provides for the time limits for completion of assessments and reassessments. In Explanation 'I to section 153 of the Income-tax Act, certain periods specified therein are to be excluded while computing the period... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Modification in the conditions for filing an application before the Settlement Commission Posted: 01 Mar 2011 09:04 AM PST The existing provisions contained in the proviso to section 245C(1) allow an application to be made before the Settlement Commission if,—(i) the proceedings have been initiated against the applicant under section 153A or under section 153C... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Power of the Settlement Commission to rectify its orders Posted: 01 Mar 2011 06:27 AM PST The existing provisions of section 245D(4) of the Income-tax Act provide that the Settlement Commission may pass an order, as it thinks fit, on the matters covered by the applications received by it, after giving an opportunity of being heard to the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Omission of the requirement of quoting of Document Identification Number Posted: 01 Mar 2011 05:54 AM PST Under the existing provisions contained in section 282B of the Income-tax Act, every income-tax authority shall, on or after the 1st day of July, 2011, allot a computer-generated Document Identification Number in respect of every notice, order,... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Reporting of activities of liaison offices Posted: 01 Mar 2011 05:51 AM PST Foreign companies or firms or associations of individuals operate in India through a branch or a liaison office after approval by Reserve Bank of India. The branch constitutes a permanent establishment of the foreign entity and is, therefore,... [[ This is a content summary only. Visit www.taxguru.in for full article ]] File Your FIR online in Delhi Posted: 01 Mar 2011 05:03 AM PST The Delhi Police, in compliance of the directions of Hon'ble Delhi High Court in Writ Petition (Crl.) No. 468/2010 "Court on Its Own Motion Versus State" dated 06.12.2010, has implemented the system of uploading and viewing the FIRs registered in... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Recognition to Provident Funds– Extension of time limit for obtaining exemption from Employees Provident Fund Organisation (EPFO) Posted: 01 Mar 2011 04:48 AM PST Rule 4 in Part A of the Fourth Schedule to the Income-tax Act provides for conditions which are required to be satisfied by a Provident Fund for receiving or retaining recognition under the Income-tax Act. One of the requirements of rule 4 [clause... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Major proposals about Service Tax Posted: 01 Mar 2011 04:23 AM PST Services provided by air-conditioned restaurants having a license to serve alcoholic beverages in relation to serving of food and/or beverages. Short-term accommodation provided by a hotel, inn, guesthouse, club or campsite, or any other similar... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Major proposals about Central Excise duty Posted: 01 Mar 2011 04:13 AM PST Budget 2011- Major proposals about Central Excise duty Note: Changes come into effect immediately unless otherwise specified.Major proposals about Central Excise duty are the following: A. General:The First Schedule to the Central Excise Tariff Act,... [[ This is a content summary only. Visit www.taxguru.in for full article ]] 3 National Institutes will conduct Study on Black Money in The Country Posted: 01 Mar 2011 03:59 AM PST The Government has decided to get a fresh study conducted on unaccounted income/ wealth both inside and outside the country brining out the nature of activities engendering money laundering and its ramifications on national security. The proposal... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Indian Economy on Higher Growth Path; Resilient to Both External and Domestic Shocks-FM Posted: 01 Mar 2011 03:58 AM PST Indian Economy on Higher Growth Path; Resilient to Both External and Domestic Shocks:FM. Increase in International Crude Oil and Other Commodity Prices is a Matter of Concern. Emphasizes Need to Step up Investment in Agriculture Sector Both by... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Impact of Rising Fuel Prices on Economy Posted: 01 Mar 2011 03:55 AM PST The WPI inflation in mineral oils increased to 16.7 per cent in January 2011 from 7.9 per cent in the corresponding period last year. This is mainly because of the rise in crude oil prices (Brent) in international market, which rose to US $96 per... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 -2012-Central Excise – Amendments in Cenvat Credit Rules, 2004 Posted: 01 Mar 2011 03:03 AM PST Several amendments have been carried out in the provisions of the Cenvat Credit Rules (CCR), 2004. The basic thrust of these changes is to broad base and simplify definitions to reduce disputes and to achieve a more realistic attribution when common... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-2012- Central Excise – Important Legislative Amendments Posted: 01 Mar 2011 03:01 AM PST The provisions of sections 11A relating to the recovery of duty not levied, short levied, not paid, short paid or erroneously refunded have been redrafted with a view to improve the sequence in which provisions occur and simplify their language.... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-2012 – Central Excise – Relief Measures Posted: 01 Mar 2011 03:00 AM PST Air-conditioning equipment, panels and refrigeration panels for installation of cold-chain infrastructure for preservation, storage or transport of agricultural produce and apiary, horticultural, dairy, poultry, aquatic & marine produce and... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-2012 – Central Excise – Withdrawal of exemptions/ concessions Posted: 01 Mar 2011 02:47 AM PST A number of exemptions from Central Excise duty (about 130 exemption entries) are being withdrawn. These include some cases where the rate of duty is Nil by tariff. A nominal duty of 1% ad valorem is being imposed on these items with the condition... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-2012 – Central Excise – Rate structure for goods, other than petroleum Posted: 01 Mar 2011 02:46 AM PST The standard rate of Central Excise duty for non-POL products has been maintained at 10%. The merit rate of excise duty (CENVAT) for non-petroleum goods has been increased from 4% to 5%. The increased rate would apply to all such goods that hitherto... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011-2012 – Central Excise – Prescribes Effective Rate of duty Posted: 01 Mar 2011 02:43 AM PST Unless otherwise stated, all changes in rates of duty take effect from the midnight of 28th February/1st March, 2011. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 57(a)(i), 57 (b) and 70(a)(i)... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Brief Notes on all amendments in Custom Duty Act and Tariff Act Posted: 01 Mar 2011 02:31 AM PST The First Schedule to the Customs Tariff Act, 1975 is being amended vide Clause 57 of the Bill to give effect to the tariff changes relating to the Union Customs Duties. The basic customs duty rates of 2%, 2.5% and 3% are being unified at the median... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – SEZ Refunds Posted: 01 Mar 2011 02:10 AM PST Notification No. 17/2011-ST has been issued superceding notification 9/2009-ST dated 03.03.2009. The new notification has the following unique features: (a) Criteria for the determination of "wholly consumed" services have been laid down in the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Relief to Small scale sector Posted: 01 Mar 2011 02:09 AM PST Finance minister has announced in his budget speech that individual and sole proprietor assessees with a turnover upto Rs 60 lakhs shall not be subject to audit. Interest rate for all assessees (including firms and corporates) upto a turnover of Rs... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Exemptions Posted: 01 Mar 2011 02:08 AM PST Exemption from service tax is being provided to „Works contract service‟ when rendered for the construction of residential complexes or completion and finishing services of a new complex under Jawaharlal Nehru Urban Renewable Mission (JNURM) and... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Amendments to Cenvat Credit Rules, 2004 Posted: 01 Mar 2011 02:06 AM PST Important changes in Cenvat Rules, 2004 . Obligation of manufacturer and provider of services . Addition of Services under section 66A in rule 3 . [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Amendments to Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 Posted: 01 Mar 2011 02:04 AM PST A new sub-rule (2A) is being added in rule 3 in the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 vide Notification 1/2011-ST so as to restrict the Cenvat credit to 40% of the tax paid on services relating to erection,... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Amendments to Service Tax (Determination of Value) Rules, 2006 Posted: 01 Mar 2011 02:02 AM PST A new rule (2B) has been inserted vide Notification 2/2011-ST to prescribe the value of service rendered in relation to money changing. The details are explained at Annexure B. This amendment shall come into force on 01.04.2011. [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Amendments to Taxation of Services (Provided from Outside India and Received in India) Rules, 2006 Posted: 01 Mar 2011 01:59 AM PST Corresponding changes, as indicated in respect of Export of Services Rules, 2005, have been carried out by way of rearrangement of the stated services under respective sub- clauses of rule 3 of the Taxation of Services (Provided from Outside India... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Amendments to Export of Services Rules, 2005 Posted: 01 Mar 2011 01:56 AM PST Globally the taxation of services across different taxing jurisdictions is increasingly moving towards destination-based levy in respect of B2B services while origin-based levy is largely applicable to B2C services. In tune with this practice,... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Point of Taxation Rules, 2011 Posted: 01 Mar 2011 01:51 AM PST Point of Taxation Rules, 2011 have been framed vide notification 18/2011-ST and made effective from 01.04.2011. These rules determine the point in time when the services shall be deemed to be provided. The general rule will be that the time of... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Service Tax Rules, 1994 Posted: 01 Mar 2011 01:34 AM PST A number of changes have been made in the Service Tax Rules to align the provisions consequent to the introduction of Point of Taxation Rules, 2011. A new rule 5B has been introduced to provide that the applicable rate of tax shall be the rate... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Compliance Mechanism Posted: 01 Mar 2011 01:29 AM PST The maximum penalty for delay in filing of return under section 70 is proposed to be increased from Rs.2,000/- to Rs.20,000/-. However, the existing rate of penalty is being retained under rule 7C of the Service Tax Rules, 1994. The maximum penalty... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Alteration or expansion in the scope of existing services Posted: 01 Mar 2011 01:22 AM PST Amendment in following service vide budget 2011Life Insurance Service, Authorized Service Station, Commercial Training or Coaching Service, Club or Association Service, Business Support Service, Services by legal professionals , [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 – Service Tax – Proposed New Services Posted: 01 Mar 2011 01:18 AM PST The following two new services have been proposed:(i) Services by air-conditioned restaurants having license to serve liquor; and (ii) Short-term accommodation in hotels/inns/clubs/guest houses etc. [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- GST Constitution Amendment Bill this session Posted: 28 Feb 2011 08:21 PM PST Finance Minister Pranab Mukherjee today said the Government proposes to introduce the Constitution Amendment Bill in the current session to pave the way for introduction of the long-awaited Goods and Services Tax (GST) regime. "I propose to... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Companies Bill to be presented in Parliament this Budget session Posted: 28 Feb 2011 08:19 PM PST The Companies Bill 2009, which seeks to replace a half-a-century-old Act, will be presented in Parliament in the ongoing Budget session, Finance Minister Pranab Mukherjee today said. The new Companies Bill, which was tabled in the backdrop of the Rs... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Govt imposes 18.5 pc MAT on SEZ developers, units Posted: 28 Feb 2011 08:14 PM PST The government today proposed to levy Minimum Alternate Tax (MAT) of 18.5 per cent on the book profits of Special Economic Zone developers and units, which was termed as a 'setback' by the players. Both the developers as well as units in the tax... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Govt extends tax holiday for power sector by 1 more year Posted: 28 Feb 2011 08:13 PM PST With a view to encourage power generation and reduce transmission and distribution losses Finance Minister Pranab Mukherjee today extended the tax holiday for the power sector by one more year till March 31, 2012. The extension of tax break is part... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011 -Nothing cheering for IT sector; no extension to STPI Posted: 28 Feb 2011 08:11 PM PST The 2011-12 Budget has failed to bring cheer to the Indian IT sector as Finance Minister Pranab Mukherjee did not make any major announcements to boost the segment. IT companies were batting for reduced tax rates and continuation of sops under the... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- High service tax on life policy to lower returns Posted: 28 Feb 2011 08:10 PM PST The government today proposed to increase the service tax on life insurance policies to 1.5 per cent from 1 per cent, a move that would increase the premium cost for policyholders. "It is being provided that tax shall be charged in the portion of... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- FM proposes new simplified tax return form 'Sugam' Posted: 28 Feb 2011 08:09 PM PST To reduce compliance burden of small taxpayers, Finance Minister Pranab Mukherjee today proposed to introduce a new simplified income tax return form 'Sugam'. "I propose to introduce a new simplified return form 'Sugam' to reduce the compliance... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Branded garments to cost upto 15 Percent more on excise duty Posted: 28 Feb 2011 08:06 PM PST The cost of branded garments and made-up textiles will go up by 10-15 per cent with imposition of excise duties as proposed in the Budget. Readymade garments and made-up textiles are currently under optional excise duty regime. But Finance Minister... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Exporters to do self-assessment of their duty liabilities Posted: 28 Feb 2011 08:05 PM PST Exporters will be allowed to do self-assessment of their duty liabilities before the customs authorities, besides getting service tax refunds through a hassle-free mechanism. "To quicken the clearance of the cargo by customs authorities and further... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- FM halves dividend tax on earnings from overseas arms Posted: 28 Feb 2011 08:04 PM PST Looking at improving investment climate for corporates, Finance Minister Pranab Mukherjee today proposed halving tax on dividends received by an Indian company from its foreign subsidiary to 15 per cent. "It has been represented that the taxation of... [[ This is a content summary only. Visit www.taxguru.in for full article ]] Budget 2011- Overseas entities can invest directly in Mutual Funds Posted: 28 Feb 2011 08:03 PM PST Foreign entities will now be able to invest directly in mutual funds, which will increase the fund flow into capital markets. The fund houses will have to ensure know-your-customer (KYC) norms before seeking investment from overseas investors,... [[ This is a content summary only. Visit www.taxguru.in for full article ]]