While Computing ALP with CUP method TPO cannot ignore negative deviations

While Computing ALP with CUP method TPO cannot ignore negative deviations

Posted: 25 Jun 2012 08:58 PM PDT

Profitability if considered without considering the positive deviations would lead to impossible profitability positions, which is not what is contemplated under the provisions of 92C. In the circumstances, the Assessing Officer is directed to re-compute the ALP by taking into consideration both...

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Input Service (Tax) Distribution under Service Tax Act

Posted: 25 Jun 2012 08:41 PM PDT

Provision of the above rules was simple and did not restrict transfer of entire Cenvat Credit to a single unit. This made it easier for Regional office / Head office registered under ISD to transfer the credit under a single Invoice to a particular unit. The said rules have now been amended,...

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Exemption from filing of Income-tax Return for Salaried

Posted: 25 Jun 2012 08:40 PM PDT

FAQ on Exemption from filing of Income-tax Return for Salaried having total income not exceeding Rs. 5,00,000 The primary objective of this notification is to exempt those salaried taxpayers from the requirement of filing income-tax returns, who have (i) total income not exceeding Rs. 5,00,000, and...

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Application U/s. 12AA/80G cannot be rejected without giving sufficient opportunity

Posted: 25 Jun 2012 08:39 PM PDT

In the instant case The CIT has not indicated the nature of information not furnished and without considering the documents filed by the applicant along with applications for registration u/s 12AA/80G has rejected assessee's claim solely on the ground that applicant could not file most of the...

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Keep Investing, Even in Slowdown

Posted: 25 Jun 2012 08:38 PM PDT

Economic slow down is ruling the world today, including India. While slow down brings with it retardation in economic growth, lower investments, increase in prices, lesser demand & production and reduced employment opportunities, the current slow down comes with tagged inflation which is...

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Income Tax dept to set up special 'tax kiosks' & Mobile Vans

Posted: 25 Jun 2012 08:37 PM PDT

As a taxpayer friendly initiative, the Department has decided to set up Tax Kiosks at various places within CCIT regions. The Tax Kiosk would be a temporary structure set up for 1-2 days in a residential area such as apartment blocks in association with RWAs, large offices and other central...

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Sec.14A No disallowance if there is no tax-free income

Posted: 25 Jun 2012 08:37 PM PDT

Whether on the facts and in the circumstance of the case and in law the Hon'ble Tribunal was right in deleting the disallowance made by the Assessing Officer of interest paid by the Assessee Company on borrowed funds amounting to Rs.241.10 lakhs overlooking the fact that the borrowed funds were...

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Confirmation statement not required to assess undisclosed income

Posted: 25 Jun 2012 08:36 PM PDT

High Court Show Anguish Over step taken by Central Government to take steps to prevent generation and circulation of black money. The approach of the first appellate authority as well as the Tribunal was absolutely contrary to the scheme of block assessment under Chapter XIVB which can be made...

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Entry Tax under Punjab Value Added Tax Act, 2005

Posted: 25 Jun 2012 08:35 PM PDT

Entry tax is leviable on all persons including taxable person registered under the Punjab Value Added Tax Act, 2005 on entry of goods into the state of Punjab for the notified goods of which the list alongwith rates of entry tax is mentioned below in table.

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Service tax on commission paid for sale of final products eligible for Input Credit

Posted: 25 Jun 2012 08:35 PM PDT

Even after the deletion of expression activities related to business from the definition of input services, the credit of Service tax paid on the sales promotion activities and on the services of sales of dutiable goods on commission basis would be admissible as credit. As such, it is the...

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Works Contract Tax under Punjab Value Added Tax Act, 2005

Posted: 25 Jun 2012 08:34 PM PDT

It is an effort to compile all the provisions related to Works Contract under the Punjab Value Added Tax Act, 2005 beside this the provisions related to lumpsum scheme, taxability on Interstate purchases for goods used in the execution of works contract, tax deduction, Constitutional validity of...

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MCA imposes fees on fling of Form 1,23B, 24A, 36, 61, 62, 65,

Posted: 25 Jun 2012 08:33 PM PDT

Imposing fees on certain e-forms filed with ROC, RD or MCA (HQ) under MCA-21 where at present no fee is prescribed - General Circular No. 14/2012, dated 21-6-2012 - The Ministry of Corporate Affairs has decided that fees shall be applicable on the following forms at the rates indicated in the table...

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Members cannot be appointed part-time to Fema Tribunal

Posted: 25 Jun 2012 06:39 PM PDT

Rule 2 (1) (b) provides the qualification to be a Member. Needless to say, the same is in total accord with the Act. The first proviso to Rule 5 introduces part time Member. We have held that the said proviso, as far as it introduces the concept of part time Member, is contrary to the provision...

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Interest Paid to the extent amounts are diverted to sister/other concerns on interest free basis not allowable

Posted: 25 Jun 2012 06:15 PM PDT

Since the assessee failed to establish nexus of use of borrowed funds for the purpose of business to claim deduction under section 36(1)(iii) of the Act, there is no escape from the finding that interest being paid by the assessee to the extent the amounts are diverted to sister concerns or other...

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Merely because assessee incurred a loss on onshore activities it cannot be said that price was deliberately low to avoid taxability

Posted: 24 Jun 2012 09:38 PM PDT

In our considered view, this is a very important aspect of the matter inasmuch as if the assessee has incurred a loss on its entire project, whether onshore or offshore, the mere fact that the assessee has incurred a loss on onshore activities cannot be reason enough to show, or even indicate, that...

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Appeal filed first appellate authority after 3 Months before from order-in-original is time barred

Posted: 24 Jun 2012 09:30 PM PDT

It is seen from the records that the first appellate authority has rejected the appeal filed by the appellant on the question of limitation. It is undisputed that the appellant had received the order in original on 28.8.2010 and the appellant had a right to file an appeal within three months from...

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FAQs on Competition Commission of India (CCI)

Posted: 24 Jun 2012 09:24 PM PDT

What is competition in the market? • In common parlance, competition in the market means sellers striving independently for buyers' patronage to maximize profit (or other business objectives). • A buyer prefers to buy a product at a price that maximizes his benefits whereas the seller prefers to...

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If Value of material supplied included in gross value of construction service, benefit of abatement must be given

Posted: 24 Jun 2012 09:05 PM PDT

Adjudicating authority seeks to include the value of free supplied materials received by the appellant in the gross value of the services rendered by the appellant. It is seen that after inclusion of gross value, the adjudicating authority has not given the benefit of Notification No. 15/2004,...

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FII Investments in Government Securities and Long-Term Infrastructure Bonds Rationalized

Posted: 24 Jun 2012 08:56 PM PDT

Government Securities: . Currently FIIs are allowed to invest US$5 billion in Government Securities that have residual maturity of over five years. It has now been modified to reduce the residual maturity to three years. 2. An additional window of US$5 billion would be available for FII investment...

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Foreign investment in India by SEBI registered FIIs in Government securities and SEBI registered FIIs and QFIs in infrastructure debt

Posted: 24 Jun 2012 08:53 PM PDT

Government Securities -i) The limit of USD 15 billion for FII investment in Government securities stands enhanced with immediate effect by USD 5 billion to USD 20 billion. It has also been decided to rationalize the conditions governing the investments under this scheme by making the residual...

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RBI announces Further Liberalisation Measures for Capital Account Transactions

Posted: 24 Jun 2012 08:52 PM PDT

It has been decided to allow Indian companies in manufacturing and infrastructure sector and having foreign exchange earnings to avail of external commercial borrowing (ECB) for repayment of outstanding Rupee loans towards capital expenditure and/or fresh Rupee capital expenditure under the...

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ECB – Repayment of Rupee loans – Liberalisation Measures for Indian companies in manufacturing & infrastructure sector

Posted: 24 Jun 2012 08:49 PM PDT

it has been decided to allow Indian companies to avail of ECBs for repayment of Rupee loan(s) availed of from the domestic banking system and / or for fresh Rupee capital expenditure, under the approval route, subject to them satisfying the following conditions:- Only companies in the...

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Impact of monetary policy actions on inflation is modest and subject to lags

Posted: 24 Jun 2012 07:59 PM PDT

The paper Monetary Transmission Mechanism in India: A Quarterly Model examines the impact of monetary policy actions on growth and inflation. Given the volatility emanating from the agricultural sector, the paper models both overall growth and overall inflation as well as non-agricultural growth...

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IRDA launches Consumer Education Website

Posted: 24 Jun 2012 07:56 PM PDT

IRDA has launched its Consumer Education Website, which provides useful information for the benefit of policyholders and prospects. The sections include tips on buying insurance, standard claim procedures/documentations, Dos and Don'ts for a policyholder, general alerts, dealing with...

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