TaxGuru.in : Legal & Tax Updates 23.03.2011

TaxGuru.in : Legal & Tax Updates

Link to LEGAL & FINANCIAL  UPDATES FROM TAX GURU

Even if income is assessed by estimation on GP rate disallowance u/s. 40A(3) can be made

Posted: 22 Mar 2011 08:44 PM PDT


The argument that if income is assessed by estimation on GP rate, no other disallowance can be made is not of universal application. If expenditure which is legally not permissible has been taken into account that can certainly be disallowed even...

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How to get your PAN Card details updated?

Posted: 22 Mar 2011 07:51 PM PDT


The permanent account number (PAN) card, issued by the income tax authorities, is now widely used in financial transactions and is the single most convenient proof for identity. So, it may be useful to keep the PAN card updated to reflect your...

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Revised Schedule VI – New concepts, disclosure requirements, key changes, implications, critical issues and Format

Posted: 22 Mar 2011 07:13 PM PDT


The revised Schedule VI introduces many new concepts and disclosure requirements and also does away with several statutory disclosure requirements. The practical application of the revised schedule throws up a number of questions, the answers to...

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Download Google's Cloud Connect Toolbar to save MS Office work automatically

Posted: 22 Mar 2011 06:57 PM PDT


Each time you open a new Word file in Microsoft Word, from now on, there won't be any need to save your work every few seconds, for fear of losing all your data with a power cut or a computer hang. Google's newly launched Cloud Connect toolbar for...

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Former I-T commissioner gets 3-yr rigourous imprisonment

Posted: 22 Mar 2011 05:30 PM PDT


Mumbai: A special court on Monday convicted a former I-T commissioner and his wife for amassing assets disproportionate to their known source of income. Finding Vishwanath Shrivastava guilty of the charges against him, special judge N P Dhote...

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Income-tax – Creation of the Directorate of Income-tax (Expenditure Budget), Central Board of Direct Taxes, Department of Revenue, Ministry of Finance with immediate effect

Posted: 22 Mar 2011 10:34 AM PDT


The Directorate of Income-tax (Expenditure Budget) will act as the Nodal Authority in respect of all Budget matters for the Grant No. 42 Direct Taxes and will perform all work related to the management of Expenditure Budget under this grant which...

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CBDT chief for quick payment of IT refunds

Posted: 22 Mar 2011 10:27 AM PDT


Despite repeated appeals made to all the members of the income tax family, & despite the hard work put in by most of them, processing of refund cases is depressingly behind schedule. At the moment around 1.35 lac Returns are processed every...

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Finance Minister's Reply to the Discussion on the Finance Bill 2011-12 in Lok Sabha

Posted: 22 Mar 2011 10:10 AM PDT


In my proposals for the Direct Taxes, for the year 2011-12, I had proposed to provide lower tax rate of 15 per cent on dividends received by Indian companies from foreign subsidiary companies in which the Indian company holds more than 50 per cent...

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Basic Custom Duty Reduced from 30 Per Cent to 5 Per Cent on Raw Silk AD Valorem

Posted: 22 Mar 2011 09:57 AM PDT


The Union Finance Minister also announced the basic reduction of custom duty on raw silk (not thrown) from 30 per cent to 5 per cent ad valorem. This was done to augment domestic availability for weavers, both in the handloom and the power loom...

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Excise Duty on Readymade Garments- The magic figure of exempted turnover of Rs. 8.90 Crore

Posted: 22 Mar 2011 09:39 AM PDT


While initiating debate on the Finance Bill-2011 the Finance Minister said that the garment traders had criticised the proposed 10 per cent excise duty on readymade garments saying it would hurt the small business. He added. 1) "To address this...

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ED to summon Kalmadi, others for violation of forex rules

Posted: 22 Mar 2011 06:33 AM PDT


The Enforcement Directorate is likely to summon sacked CWG Organising Committee Chairman Suresh Kalmadi and some other officials for alleged violations of forex rules during last year''s Commonwealth Games. According to sources, the ED will issue...

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Finance Bill, 2011 – As Introduced in Lok Sabha

Posted: 22 Mar 2011 05:25 AM PDT


LIST NO.1- LOK SABHA FINANCE BILL, 2011 (As Introduced in Lok Sabha) Notice of Amendments Dated: March 21, 2011. Amendment of section 40A- insert ' 7A In section 40A of the Income tax Act, in sub-section (9), after the words, brackets and figures...

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Govt approves 6 per cent hike in dearness allowance

Posted: 22 Mar 2011 05:14 AM PDT


In a bid to provide relief from high inflation, the government today increased dearness allowance (DA) by 6 per cent to 51 per cent, benefiting over 50 lakh central government employees and 38 lakh pensioners.

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FM announces relief for readymade garment sector

Posted: 22 Mar 2011 04:45 AM PDT


Under the revised norms, 10% excise would be levied on 45% of the tariff value of retail price on branded readymade garments as against 60% proposed in the Budget. Finance Minister Pranab Mukherjee on Tuesday eased some of the pressure on the...

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GST – Govt moves ahead, introduces Bill in Lok Sabha

Posted: 22 Mar 2011 04:37 AM PDT


The government today introduced a Constitution Amendment Bill in the Lok Sabha with a view to create a common market for goods and services and replace the existing indirect taxation regime with a uniform Goods and Services Tax (GST) system.

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FM withdraws proposal for service tax on AC Hospitals and Diagonistic services

Posted: 22 Mar 2011 04:35 AM PDT


Bowing to demand from all quarters, Finance Minister Pranab Mukherjee today announced withdrawal of the proposed 5 per cent service tax on airconditioned hospitals with more than 25 beds and on diagonistic services.

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Establishment of Connectivity with both depositories NSDL and CDSL – Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement – December 2010 & January 2011

Posted: 22 Mar 2011 04:30 AM PDT


The stock exchanges may consider shifting the trading in these securities to normal Rolling Settlement subject to the following: a) At least 50% of other than promoter holdings as per clause 35 of Listing Agreement are in dematerialized mode...

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Law, not equity must prevail, SC

Posted: 22 Mar 2011 02:45 AM PDT


The Supreme Court has ruled that law should prevail over equity and that judges should not legislate as it would be violative of the basic democratic principles. A bench of justices Markandeya Katju and Gyan Sudha Mishra in a recent judgement said...

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Rs 616.53 cr tax notice to Mahindra Satyam- I-T department freezes account

Posted: 22 Mar 2011 02:05 AM PDT


The Income Tax Department has issued a notice to Mahindra Satyam, the new brand identity of Satyam Computer Services Ltd, to pay Rs 616.53 crore in taxes, the company said in a stock exchange filing today.

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Breaking News Budget 2011 Related to Service tax on Healthcare and Excise Duty on Readymade Garments

Posted: 22 Mar 2011 12:48 AM PDT


Breaking News Budget 2011 Related to Service tax on Healthcare and Excise Duty on Readymade Garments. 1) Abatement on readymade garments increased from 40% to 55%. 2) Service tax on Health care services withdrawn

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Reconciliation of transactions at ATMs failure – Time limit Complaints resolution with banks

Posted: 22 Mar 2011 12:15 AM PDT


All authorized ATM Networks provider/operator are advised to submit the quarterly data pertaining to resolution of complaints between ATM network operator and banks in the following excel format. The quarterly data should reach us within a month on...

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How to Value Capital asset introduced as stock-in-trade in business?

Posted: 22 Mar 2011 12:15 AM PDT


When a partnership firm is dissolved and the erstwhile partner receives stock, it is a capital asset in his hands. When that asset is introduced into a business as stock, it gets converted into stock-in-trade. The value of this stock will have to be...

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Reconciliation of transactions at ATMs failure – Time limit

Posted: 22 Mar 2011 12:10 AM PDT


Please refer to our circular DPSS/No.101/02.10.02/2009-2010 dated July 17, 2009 on the captioned subject, wherein banks were advised to submit the quarterly review of ATM transactions. 2. In continuation of the above circular banks are advised to...

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'Made in India' products to get preferential status in New Telecom Policy 2011

Posted: 22 Mar 2011 12:00 AM PDT


In order to boost manufacturing of indigenous equipment, the Centre may extend preferential status to 'Made in India' products in the New Telecom Policy, 2011 (NTP'11). "Broader telecom policy will include measures appropriate to encourage domestic...

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Bill for mandatory hallmarking of more items cleared

Posted: 21 Mar 2011 11:38 PM PDT


The government today cleared the Bureau of Indian Standards (Amendment) Bill, 2011 paving the way for introduction of mandatory hallmarking of more products including gold. At present, about 77 items including cement, mineral water and milk products...

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Service tax on Port Services by Other Ports (Minor Ports)

Posted: 21 Mar 2011 11:10 PM PDT


"Port service" means any service rendered within a port or other port, in any manner. "Taxable service" means any service provided or to be provided to any person, by any other person, in relation to port services in other port, in any manner.

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Service tax on Technical Inspection and Certification Services

Posted: 21 Mar 2011 11:05 PM PDT


Technical Inspection and Certification Services means any service provided or to be provided to any person, by a technical inspection and certification agency, in relation to technical inspection and certification. "Technical Inspection and...

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Service Tax on Internet Telecommunication Services

Posted: 21 Mar 2011 11:00 PM PDT


Internet Telecommunication Services means any service provided or to be provided to any person, by any other person, in relation to internet telecommunication service; "Internet" means a global information system which is logically linked together...

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Service tax on Manpower Recruitment or Supply Agency's Services

Posted: 21 Mar 2011 10:58 PM PDT


Manpower Recruitment or Supply Agency's Services means any service provided or to be provided to any person, by a manpower recruitment or supply agency in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner;...

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Service tax on Internet Cafe Services

Posted: 21 Mar 2011 10:52 PM PDT


Internet Cafe Services means any service provided or to be provided to any person, by an internet cafe in relation to access of internet; "Internet Cafe" means a commercial establishment providing facility for assessing internet;

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Service tax on Sponsorship Service

Posted: 21 Mar 2011 10:46 PM PDT


Sponsorship Service means any service provided or to be provided to any person, by any other person receiving sponsorship, in relation to such sponsorship, in any manner; "Sponsorship" includes naming an event after the sponsor, displaying the...

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Legislative Assembly passes Delhi Value Added Tax (Amendment) Act, 2011

Posted: 21 Mar 2011 10:19 PM PDT


The Delhi Legislative Assembly on Monday passed by voice vote the Delhi Value Added Tax (Amendment) Act, 2011. The purpose of the ammendment is to give extension for one more year which will be up to March 31st of March next year. Earlier the date...

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New bank licences norms after amending Banking Act

Posted: 21 Mar 2011 09:48 PM PDT


Corporates looking to enter the banking business will have wait for some more time, as the government is considering amendment of the Banking Regulation Act and Banking Laws Act before finalising the guidelines for giving new licences. The final...

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