| Write back of provision of bad debts, not previously allowed as deduction, is not taxable The taxpayer was a banking company. In the current appeal, the Revenue's grievance was that the CIT(A) had erred in directing that the written back "provision of bad-debts" was not taxable as "business income" especial y when a deduction of a sum... 
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| Royalty paid for certain rights, which are not in the nature of "make available," can be charged to revenue account The taxpayer was a wholly owned subsidiary of Denso Thermal Systems, Italy. The taxpayer was engaged in the business of manufacturing certain automobile products and selling the same in India and abroad. For the impugned assessment year, the...    |
| If certain activities are not realy services but more in the nature of stewardship/shareholder activities, the amounts cannot be taxed in India in the absence of a permanent establishment (PE) The applicant is a US-based manufacturer engaged in manufacturing of engineering goods and is also an R&D-based service provider. It entered a cost al ocation agreement with its India-based group company. The applicant raises invoices on the...    |
| Reimbursement of custom duty by a non resident entity is not taxable u/s 44BB The taxpayer was a company incorporated under Hong Kong laws. It filed its return of income declaring total income of INR196 million. AO noticed that the taxpayer had not offered for tax the amount received toward reimbursement of expenses, which...    |
| Over 30,000 tax litigations pending in ITAT, Most of them filed by department Over 30,000 tax litigations are pending in the Income Tax Appelate Tribunals across the country, though most of these appeals are filed by the tax department and not the assessees, Minister of State for Finance S S Palanimanickam said in the Lok...    |
| SEBI circular on dealings between a client and a stock broker (trading members included) This is in continuation of circulars (a) No. SMD/SED/CIR/93/23321 dated November 18, 1993 specifying the norms for regulation of transactions between clients and brokers, (b) No. SEBI/MIRSD/DPS-1/Cir-31/2004 dated August 26, 2004 specifying the...    |
| Custom circular Rescinding Notification No. 62/2009-Customs, dated the 15th June, 2009 In exercise of the powers conferred by sub-sections (1) and (2) of section 9A of the Customs Tariff Act, 1975 (51 of 1975), read with rules 13, 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped...    |
| Regarding anti dumping duty on ceramic glazed tiles other than vitrified tiles originating in or exported from China PR Whereas, in the matter of import of ceramic glazed tiles other than vitrified tiles where at least one of the sides (length or width) exceeds 17 inches or 431.80 millimeters (mm) or 43.18 centimeters (cm) or 1.4167 feet (hereinafter referred to as...    |
| Circular Amending Notification No. 20/2006-Customs, dated 1st March, 2006 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment...    |
| Circular No. 824/1/2006-CX-Clarification regarding prospective implementation of orders Attention is invited to Board's Circular No. 824 /1 /2006-CX dated 16 th January, 2006 on the aforesaid subject. It has been reported that some of the Commissionerates have taken a view that once an order has been passed on issues like...    |
| Circular Regarding levy of service tax on'business auxiliary service' Whereas the Central Government is satisfied that a practice was generally prevalent regarding levy of service tax ( including non-levy thereof ), under section 66 of the Finance Act, 1994 ( 32 of 1994) (hereinafter referred to as the Finance Act),...    |
| RBI circular on Credit Information Companies (Regulation) Act, 2005 The Government had in exercise of powers conferred by Section 35 of the Act issued (Removal of Difficulties) Order, 2008 dated January 24, 2008 extending the last date for taking membership of at least one credit information company by credit...    |
| Marketing/Distribution of Mutual Fund/Insurance Products by Urban Cooperative Banks Please refer to our circulars UBD.No.BPD.PCB.Cir9/09.11.200/2003-04 dated August 18, 2003 and UBD.PCB. Cir.No.42/09.11.200/2006-07 dated May 7, 2007 permitting Urban Cooperative Banks (UCBs) to undertake insurance business as corporate agent and/or ...    |
| Changes to the Indian exchange regulations relating to the receipt and remittance of remuneration outside India Payment of salary outside India to employees of a foreign company who are on secondment to an office, branch, subsidiary or joint venture in India (Indian entity) of the foreign company. The remittance of salary received by foreign nationals whilst...    |
| Is rotation of auditors an answer to Satyam episode? The question whether there should be a system of rotation of statutory auditors introduced to avoid repetition of Satyam episode has been raised in some quarters. In the past, the Government had tried to introduce this system by proposing amendments...    |
| Changing of law through issuance of circulars Till today the law on the subject of repairing and maintenance of roads and other infrastructural facilities was clear in the minds of all stakeholders (barring a few service tax commissionerates). There was this discussion that maintenance and/or...    |
| Section 50C of the Income tax Act — a tool to tackle menace of black money The Government has been rightly concerned about the component of black money in real estate transactions and consequent evasion of tax. With a view to curb the said menace and to tax the unaccounted money, the Government has time and again made...    |
| Independent Directors — Corporate governance in challenging times While in most of the countries in the world, the top executives are trying to survive their jobs and positions and while this is the first time when maximum CEOs are hated by their shareholders, the independent Directors are trying to run away from...    |
| Worldwide Tax Trends Treatment of Tax Losses In the current times where several MNCs are facing the issue of operating losses (the term 'operating losses' for the purpose of this article denotes business losses) in various jurisdictions, it becomes imperative for them to evaluate the...    |
| Corporate Governance and agency theory 'Corporate Governance' — these words have been hitting the headlines of financial magazines for quite some years, particularly post Enron, and in India they have once again triggered debates post Satyam scam. Satyam — this word would no longer be...    |
| Are MAT companies liable to advance tax? Currently companies are required to pay MAT tax if the tax payable under normal provisions of the Act is lower than 10% (15% w.e.f. A.Y. 2010-11) of the book profit as defined u/s.115JB of the Act. An issue which arises is whether an assessee liable...    |
| Code of Ethics- Disciplinary Mechanism of ICAI-Part II In the first part, I discussed the broad para-meters such as — the importance of Code of Ethics (COE), important statistics about the disciplinary cases, reasons for delays in disposal, procedure adopted by the Council prior to the CA Amendment Act,...    |
| Code of Ethics- Disciplinary Mechanism of ICAI- Part I We are currently in the diamond jubilee year of our Republic as well as of our Institute. The motto of our nation is Satyameva Jayate (Truth alone triumphs). We can only dream of poetic justice of truth winning over untruth. In this Kaliyug, real...    |
| Role of morality and estoppel in the delivery of justice Intended or not, an influence, or a dis-proportionate bearing of supplementary factors on the process of legal adjudication could result in a deviation from the set precedents of judicial thought. One such concept discussed here is Morality, as...    |
| Liability of Partners of Limited Liability Partnerships (LLP) — is it Limited? The Limited Liability Partnership Act, 2008 ('the LLP Act') was brought into force with effect from 31st March 2009 to permit formation of Limited Liability Partnerships ('LLPs') in India. The main focus of the LLP Act is to permit a partnership...    |
| HR Management in the Accounting Practice As employers, we all want people who have the right attitude and appropriate and adequate skill sets to work for us. We would like to have a work environment in which our people enjoy working. We want our people to be committed to the Firm. And of...    |
| Carry forward and set off of MAT credit u/s.115JAA and Allowability in the hands of amalgamated company The reasons in support of and also against the issue under consideration have been set out above. The reasons in support of the argument that, amalgamated company can claim MAT credit of amalgamating company after merger, appears to be reasonable....    |
| Provident Fund contribution for International Workers The Government of India has recently made fundamental changes in the Employees Provident Fund Scheme, 1952 and the Employees Pension Scheme, 1995 (collectively referred to as Indian Provident Fund schemes) which will impact the expatriates and the...    |
| Sue the accountant The role of modern day accounting professionals has come a long way, from a core accounting function to that of being viewed as a corporate gatekeeper. Today's professionals are not just auditors, certifying routine book of accounts, but also on the...    |
| Basel II – Standardized Approach The 1988 Basel Capital Accord ("Basel I") has been implemented as the capital adequacy standard for banks and has been adopted by more than 100 countries successfully. The fundamental objectives of the Accord were to strengthen the soundness and...    |
| Enforcement Directorate conducted searches at the premises of Realtor Emmar MGF The Enforcement Directorate on Thursday conducted searches on the premises of realtor Emmar MGF in connection with the multi-crore illegal Hawala and investment case involving former Jharkhand Chief Minister Madhu Koda.The search followed the ED...    |
| FM likely to retain EET (exempt-exempt-tax) principle proposed in the Direct Tax Code The finance ministry is likely to retain the EET (exempt-exempt-tax) principle proposed in the Direct Tax Code on the lump sum amount a salaried taxpayer will receive from his investment in savings schemes such as the Public Provident Fund and other...    |
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ICAI president communication on derogatory mails Posted: 03 Dec 2009 05:38 PM PST email that was widely circulated in the name of the ICAI employees, maligning the Institute, the Council & the President in office. The email had grabbed a lot of attention as the communiqué was floated in the name of the employees and since... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]] 
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| Law Courses through Distance / Online Learning Posted: 03 Dec 2009 05:26 PM PST 'Distance Learning' as quoted by Dr. S B Mujumdar, Founder, Symbiosis International University is, "the education of the 21st century. The traditional method of teaching in a classroom called 'brick & mortar' education has failed to reach... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]] 
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| Salman Khan acquitted of tax evasion charges made against him Posted: 02 Dec 2009 07:03 PM PST According to Express India the Bombay High Court has dismissed a case which was filed by the Income Tax Department against the actor.The case accused Khan of declaring his income for the year 1999-2000 as Rs 2,95,09,771 when he had actually earned...    |
| Expenses incurred towards training cannot be termed as fee for technical services We have considered the rival submissions carefully in the light of the relevant material on record as well as the decision cited by the parties. After careful perusal of various authorities relied on either side would show that they are quite...    |
| CBI recovered cash, FDRs and jewellery worth nearly Rs 1 crore from the residence of Vasudevan During the last one week's investigation into the bribery case against Company Law Board (CLB) member R Vasudevan, the Central Bureau of Investigation (CBI) has purportedly found that Vasudevan had made enough ill-gotten money. In fresh raids, the...    |
| A study on Patent infringement Law in India A Patent confers the exclusive right on the Patentee to make, distribute or sell the invention in India. This exclusive right is for 20 years. After 20 years, that invention becomes a public Domain. An infringement would be when any of three rights... 
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| Few tips to Prevent Income Tax Raids One should not keep any unaccounted or undisclosed money, property or income popularly known as black money. If such a disclosure is made before its detection by the Income Tax Department, the chances of being trapped in a tax raid are minimized. A...    |
| Corporate governance meaning and Principals Corporate governance (CG) is one of the most talked about topics in business, indeed in society, today. Google search revealed 513 news citations during a single week in June 2006. Most academics, business professionals, and lay observers would...    |
| Can a CESTAT Member who has not completed probation can be relived from his duty without assigning any reason? RECENTLY the President of India was pleased to discharge Hon'ble member of the CESTAT Mr. PK Das, just a day before he was to complete his three year probation period. Can a Member of the Tribunal be sent home just like that? The answer,...    |
| SEBI Circular on Limitation period for filing of Arbitration reference Based on the recommendations of the SMAC, it has now been decided that the limitation period of six months shall be computed from the end of the quarter during which the disputed transaction( s) were executed. Along with the exclusion mentioned...    |
| IRDA seek exemption of Third Party Administrators (TPAs) from Tax Deducted at Source (TDS) The Insurance Regulatory and Development Authority (IRDA) has asked the Income-Tax Department and the Central Board of Direct Taxes (CBDT) to consider exemption of Third Party Administrators (TPAs) from Tax Deducted at Source (TDS). According to a...    |
| Satyam Directors say that CBI report on Satyam fraud may not necessarily present financial position and liabilities of the company Mahindra Satyam on Wednesday said its financials are not necessarily, even as investors were roiled by reports that the accounting fraud in the company could be double the initial estimate of Rs 7,800 crore. "The company wishes to point out to...    |
| Post-Satyam Scam Forensic auditing on increase to track fraud Even as India's federal investigating agency last week stunningly doubled to US$3.02 billion the amount of money involved in the Satyam Computer Services scam exposed early this year, a tribe of forensic auditors is emerging to upgrade the country's...    |
| CBI accused internal auditor with "willful suppression of auditing irregularities" India's notorious Satyam Computer Services scandal has taken a turn for the worse, with the country's Central Bureau of Investigation (CBI) laying new charges against 10 defendants regarding fake invoices, inflated revenues, unauthorised loans and...    |
| Provisioning Coverage for Advances – Second Quarter Review of Monetary Policy for the Year 2009-10 At present, the provisioning requirements for NPAs range between 10 per cent and 100 per cent of the outstanding amount, depending on the age of the NPAs and the security available. Banks can also make additional specific provisions subject to a...    |
| RBI circular on Credit Information Companies (Regulation) Act, 2005 As you are aware, the Credit Information Companies (Regulation) Act, 2005 has been operationalised with effect from December 14, 2006. In terms of Section 15(1) of the Act, every credit institution has to become member of at least one credit...    |
| Establishment of Connectivity with both depositories NSDL and CDSL Establishment of Connectivity with both depositories NSDL and CDSL –Companies eligible for shifting from Trade for Trade Settlement (TFTS) to normal Rolling Settlement Related posts:Issue of No Objection Certificate for release of 1% of issue...    |
| Financial Inclusion by Extension of Banking Services – Use of Business Correspondents (BCs) Banks are permitted to appoint the following entities as BCs, in addition to the entities presently permitted: (i) Individual kirana/medical /fair price shop owners (ii) Individual Public Call Office (PCO) operators (iii) Agents of Small Savings...    |
| Debatable issues are not "mistakes apparent from the record" u/s 154 The assessee filed a revision petition u/s 264 in which it claimed that the subsidy received by it from the government was a capital receipt and not chargeable to tax in view of P.J. Chemicals Ltd 210 ITR 830 (SC). The Petition was allowed by the...    |
| No capital gains in a business reorganization if consideration not determinable. Transfer pricing law does not apply if there is no income The applicant, a USA company, held shares in an Indian company. As part of a bankruptcy reorganization process, the shares in the Indian company together with other non-Indian assets & liabilities were transferred to other USA companies. The...    |
| Observance of ICAI Election Code of Conduct on the Date of Polling In terms of the Election Code of Conduct evolved by the Council of the Institute of Chartered Accountants of India and the subsequent instructions, by way of an Announcement, issued by the Returning Officer, under the Chartered Accountants (Election...    |
| Appointments in Competition Commission of India Competition Commission of India has invited applications from experienced professionals in Law, Economics and Financial Analysis fields for direct recruitment to various posts of the level of Deputy Director, Joint Director, Director and Advisor in...    |
| Finance Act, 2003, which deleted second proviso to section 43B, will operate retrospectively w.e.f. 1-4-1988 S. 43B (b) provides that any sum payable by way of contribution to a provident fund etc shall be allowed as a deduction only in the year of payment. The second proviso to s. 43B provided that the sums referred to in s. 43B (b) would not be allowed...    |
| Johnny and Service Tax Refund Part – VI In this unbroken series of articles on the issues relating to the problems faced by exporters under refund claim mechanism we herein are unveiling the VI th part of the same. Herein we are uncovering the problems existing in the Service tax refund...    |
| Partial and Full Partition of Hindu Undivided Family (HUF) and Income Tax provisions Partition is the severance of the status of Joint Hindu Family, known as Hindu Undivided Family under tax laws.Under Hindu Law once the status of Hindu Family is put to an end, there is notional division of properties among the members and the joint...    |
| Low dividend or no dividend by a Company cannot be termed as oppression of minority shareholders It is well established position that Articles of a Company are constituent document and are binding on the Company and its Directors. As aforesaid, the intention of Article 57 is that the share capital of the Company remains within the close knit...    |
| Prerequisites for issue of valid notice for reopening of assessment under the Income Tax Act, 1961 In the case of Mayawati v. CIT [2009] 222 CTR 117 (Delhi), it is nowhere mentioned that for drawing the presumption u/s 27 of the General Clauses Act, there is necessity of acknowledgment due. Related posts:Reopening notice even if served after...    |
| All overseas payments are subject to withholding tax, whether or not the income is taxable : Karnataka High Court Due to recent ruling of Karnataka High Court order, all overseas payments will now be subject to withholding tax, whether or not the income is taxable. Not only is this in dramatic contrast to previous High Court decisions, it's also a judgment...  |