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 SUMMARY OF CASE LAW Whether by invoking section 55A, Assessing Officer can disturb sale consideration – Held, no - Whether for invoking section 55A there has to be a claim made by assessee, before Assessing Officer can record opinion either... Surchage, Education Cess and applicability on TDS related to A.Y. 2010-11 (F.Y. 2009-10)? 1.      Surcharge: No Surcharge on TDS in case of payment is made to Resident or Domestic Company No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company 2.5% Surcharge on TDS if the recipient is a foreign company... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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