LEGAL & FINANCIAL UPDATES

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Procedure for Online Registration of TANs
IT officer released on bail , joined back office
IT department conducted Searches and Seizure in various states
Lenovo removed wrong maps from laptops of Income tax department
Joint committees at states level will be formed for inputs on the proposed GST
CBEC slapped Rs. 1200 crore penalty notice on EPFO for evading service tax
RBI asked bank and financial institutions to report suspicious deals within 7 days
Securities Appellate Tribunal set aside charges of insider trading against former MD of Tata Finance
RBI Circular on Money changing activities–Suspicious Transaction Reporting Format, Prevention of Money-Laundering Act
Mumbai ITAT rules on taxability of waiver of loan
Increase in Registration Fees is unconstitutional and without any reasons
Notification imposing stamp duty on brokers working in Maharashtra and having office in other states
RBI advisory asked banks to limit their mutual fund (MF) exposure
GST unlikely to be implemented from 1st April, 2010
ICSI proposes 7-Company cap on maximum number of directorship in listed companies
Govt may introduce Governance code for unlisted companies
Confiscation of goods cleared for home consumption
Mens Rea in Taxation Offences
Vigilant system to track corporate frauds
Exposure draft of XBRL (eXtensible Business Reporting Language) Banking Taxonomy
TDS rates changed for rent and contracts with effect from October 01, 2009

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Johnny and Service Tax Refund Part – IV
ICAI Announced – e-Learning course on Transfer Pricing
Special Economic Zone Authority Rules, 2009 Notified

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Income tax raid on real estate developers, hoteliers, politicians
Scope for rectifying Income Tax assessments limited: SC
Vodafone seek time to reply Income Tax Department notice
Tax profit on sell of license by new mobile operators at high rate
Government considering proposal to impose a new tax on vehicle with low fuel efficiency
Tax arrears increased to 2 Lakh crore
Labour Ministry opposed the move to bring EPFO activities under service tax net
Date of reckoning for limitation period provided u/s 154(7) of Income Tax Act, 1961
Payment made for supply of technical know-how services for setting up cellular telecom services is capital expenditure
Directing special audit without opportunity of being heard to the assessee is merely an irregularity and not an illegality
Block of residential unit cannot be construed to be separate project for the purposes of section 80-1B
Where a DTA is converted into an EOU, the exemption u/s 10B is admissible on getting approval as 100% EOU
Allowability of exemption u/s 10(22) of IT Act, 1961 to a State-controlled Educational Society/Board
Advance in ordinary course of business cannot be considered as deemed dividend U/s. 2(22)(e) of IT Act, 1961
Payments for technical services are to be treated as ”fees for technical services” under Article 13(4) of Indo-French DTAA
Annual Letting Value of house property under section 23(1)(a) of Income Tax Act, 1961
Advance Ruling on taxability of an American company, having no PE in India, for technology transfer to an Indian company against consideration
Deduction under section 80-1A is not dependent upon the assessee claiming or not claiming depreciation
Section 240 of the IT Act, 1961 cast obligation on the revenue to effect the refund
Amount disbursed by chit Fund Company to its members from their contribution cannot be treated as interest
Taxability of a South Korean Company on basis of its Local office in India
Allowance or deduction not made as per IT Act, 1961 will not come under sweep of section 41(1)
AO can make addition on ground other then on which he reopened the Assessment
Government exempt biris, matches and reinforced cement concrete pipes manufacturers from submission of the Annual Installed Capacity Statement
Change your mobile operators without change of Number for Rs. 19
CBI raided seven places of former Income Tax commissioner
Direct Tax Code (DTC) may give a fillip to long-term life policies

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Applicability of penalty u/s. section 269T of IT Act, 1961, when payment was made in cash but not exceeded Rs.20,000/- on a single day
A.O. can rectify the intimation u/s 143(1) only to determine tax payable by assessee or any refund due to the assessee
Penalty u/s 271(1)(c) can not be levied on ground of disallowance of deduction u/s 80HHC of IT Act, 1961
Contractor not eligible for deduction u/s. 80-IA
Confirmation of addition by tribunal does not mean concealment of income or inaccurate furnishing of particulars of income
When CIT cannot exercise jurisdiction u/s 263 of Income Tax Act, 1961
Allowability of interest expenditure on borrowed funds
Company wise list of 70 cases handled by SFIO with Present status of investigation
Assocham asked Centre to bring uniformity in entertainment tax rates
Government may expand the scope of the existing tax refund scheme to Gold jewellery, glass art ware and handicraft exporters
GST unnecessary criticism and genuine concerns
CBI arrested Satyam’s Internal Auditor
Questions we should ask to ICAI candidate seeking our vote: BCAS President
Notification on Income-tax (Dispute Resolution Panel) Rules, 2009
Exposure Draft on Financial Instruments: Amortised Cost and Impairment

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Income Tax department reopened Assessment of Indian Nationals on info from German Bank
RBI appointed Dr. Subir Gokarn as Deputy Governor
PWC asked for clarity on taxation rules regarding payments made for acquiring spectrum
DIPP not in favour of unregulated investment in sectors with foreign investment caps
Sorting / Processing of Notes – Installation of Note Sorting Machines
Important Aspects of New VAT Audit Form -704
Dispute resolution panels will allow MNCs to sort out their tax disputes in faster and cost effective manner
Clarification on calculation of NFE as per Rule 53 of the SEZ Rules, 2006
MVAT Circular on Clarification regarding levy of tax on cutting of transportation charges
Notification on Applicability of TDS u/s. 194J of IT Act’ 1961 in the case of transactions by the TPAs with Hospitals etc
Experts view on FM statement on Tax treaty renegotiation with 77 countries
MVAT Notification on sales made to the diplomatic authorities and international bodies or organisations
RBI guideline on Fair Practice Code for Lenders and EMI calculation methods
MCA will provide training to its staff to check corporate frauds
ICAI president communication regarding Election Code of Conduct
ITAT gets four new VPs; R V Easwar becomes Sr Vice President; posted to Mumbai
CLB chairman arrested by CBI for accepting bribe
CBDT notified Constitution of DRPs in eight cities
Income-tax department sent notices to six Mumbai-based third party administrators (TPAs) to Pay TDS for last two years

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Deductibility of interest on funds borrowed for acquiring controlling interest
IT seizures up 4.5 times in Gujarat in comparison to last year
RBI Directions for opening and operation of Accounts and settlement of payments for electronic payment transactions involving intermediaries
Getting Occupation Certificate (OC) a builder’s duty
Company Law Board (CLB) will get a fresh set of members soon
GST registration will be through uniform PAN-linked business identification number
Consitution will be amended to introduce GST
State governments to monitor violation of FDI regulation in retail sector
Competition Act may include imprisionment provision
Finance Ministry started the process of pre-Budget consultations
Govt will no reinvestigations matters handled by arrested CLB member R Vasudevan
Appointments of Hon’ble Sr. Vice President and Vice Presidents to ITAT
Deduction U/s. 80HHC allowable while computing book profit even if there are no normal profits
PricewaterhouseCoopers wins the “India Tax Firm of the Year” Award
NSE will allow brokers to buy and sell mutual funds through its terminals
Banks are instructed to accept cheques written in regional languages
CDSL launched e-Voting System for Corporates
Finmin set up working committee to review existing policy on foreign portfolio investment

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Mumbai ITAT rules deductibility of PE expenses under India- Mauritius Tax Treaty
Clarification on changes in profession tax rates
Cashless hospitalisation schemes offered by insurance companies comes under the income-tax net
Salary of Rs 14 lakhs in 1997 to employee of charitable Trust held to be unreasonable
71 additional Special Courts to clear backlog of CBI case
Brokers oppose move to extend trading hours
Convergence with IRFS only after addressing concerns of the industry
Governments have no plan to further liberalize FDI in retail sector
GJEPC suggested changes in proposed Direct Tax Code (DTC)
RBI plans to set up working group to revisit the draft guidelines on credit default swaps (CDS)
IBF criticised HRD ministry’s proposed amendments to the Copyright Act
GST rate may be 12% instead of most believed 16%
RBI Circular on Up-gradation of RTGS System to Windows 2008
20 year old undergraduate fetch the offer of 32 lakhs per Annum
British engineers found new way to stop computer viruses in their tracks
IT department to recover 1000 crore from infrastructure development companies
Clarification on calculation of NFE as per Rule 53 of the SEZ Rules, 2006
Convergence of G-20 on Modalities at WTO
Crude Oil my touch $100 Per Barell

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

DTC likely be tabled in Parliament only in Budget Session
Government planning to discuss M&A clauses with Competition Commission of India (CCI)
Insurance Council opposed DTC proposal to tax withdrawal of insurance fund
Proposal to pay salary to independent directors subject to attendance of 70% Board meetings
ICWAI to drive adoption of cost accounting standards in SAARC region
Interest on funds borrowed for acquiring controlling stake in a company not allowable
Bankruptcy of the America is now certain
SEBI relaxed norms for security, or the asset cover, required for issuing secured bonds
Govt. will launch portal for online registration of birth
Government allowed ICWAI to change its name to ICMAI
Introduction of New Mutual Fund Service System (MFSS)
Revised norms for execution of Bank Guarantee under specified Export Promotion Schemes

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

SEBI circular on simplified Debt Listing Agreement for Debt Securities – Amendments
Deloitte will treble its India headcount
Justice Dilip Raosaheb Deshmukh took charge as new Chairman of CLB
Before you choose avenues for tax saving -series II
Tax saving habit–a change is required series-1
Indian banking makes us jealous
Where us economy is heading?
Cheap Money Debt
Convoluted Turbulenlence of Japan
U.S. foreclosure threatens-world market
India in Gulf’s ladder of investments

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

RBI will ask banks to provide details of their direct and indirect exposure to Dubai
Convergence to IFRS by April 2011 as India is signatory to IFRS
Success of transition to GST will depend on alignment with Indirect taxes
Dubai crisis will not have much impact on our economy: Pranab Mukherjee
Burden to determine “actual cost” of assets in accordance with law is on Assessing officer
Applicability of Interest u/s 234B or 234C on taxable profit/book profit computed under section 115JA
Receipt through banking channel not sufficient to prove genuineness of a gift
Rent income from subleasing can not be taxed under the head `income from business’
AO not empowered to select head of income for computation of permissible deductions u/s 40(b)
Taxability of ESOP up to 31.03.2000
I-T relief for welfare contributions
Life insurance policy and Protection to policyholders
Need for Life Insurance
History of General Insurance, Reform in the sector, General Insurance Products, Non –Life Insurance companies and IRDA
Mere Expression Of Regret Cannot Be Interpreted As Admission Of Guilt
KYC Norms/AML Standards/Combating Financing of Terrorism/Obligation of Authorised Persons under PMLA, 2002, as amended by PMLA (Amendment) Act, 2009- Money Changing Activities
Compliance to be insured by ICAI election candidates , their authorised representatives and by members of ICAI
Procedure for seeking clarification on policy issues relating to SEZ Act and Rules from Department of Commerce
Guidelines for consideration of proposals for authorized operations by the BoA
Circular on Setting up Private/Public bonded warehouse for diamonds and gemstones for import and re-export therefrom
Exchange Rate notification for Import / Export of goods with effect from 1st November, 2009
RBI circular on Auction of Government of India Dated Securities
Memorandum of Instructions for Opening and Maintenance of Rupee /Foreign Currency Vostro Accounts of Non-resident Exchange Houses
High Level Committee to Review Lead Bank Scheme – Providing banking services in every village having population of over 2000 by March 2011
Circular on Augmentation of capital funds by issue of Long Term Deposits
Practical guide to documentation for audit ,peer review, Financial Review and other assurance services
Internal Audit of treasury

Rahul Bansal (Finalist) (35929 Points)
Replied 01 December 2009

Allowability of depreciation on a plant which was ready for use but not used
Determination of nature of fees received by a foreign company from its Indian branch
Reimbursable expenses is not includible in value of taxable services
Under the Revised Copyright Act one song may cost 1.50 lakh to Broadcasters
Commissioners associated with transfer pricing orders will not be part of the alternate dispute resolution panel
RBI unlikely to hike the exposure limit to a single corporate group
Memorandum of instructions for ICAI election 2009 to the central and regional councils
Dubai World meaning, reason for crisis, current scenario, effect on financial Market and banks
Finmin rejected petroleum ministry’s proposal to give income tax breaks to first 7 Nelp rounds
Dispute Resolution Panel (DRP) to resolve tax disputes of the foreign companies expeditiously
Government decided to crackdown on defaulters of self-assessment tax
CII recommended no client should exceed 10% business of audit firm
Findings of ICAI in Satyam scam case given by Minister of Corporate Affairs in the Rajya Sabha
ICAI request to Members in Industry serving in Non conventional Areas
KPMG to represent banks who lent money to Dubai World
KPMG named India’s indirect tax firm of the year
Remittances to non-residents under section 195 of the Income-tax Act –remittances of Consular receipts – clarification
SEBI circular on Amendments in Simplified Debt Listing Agreement for Debt Securities
Issue of No Objection Certificate for release of 1% of issue amount
Happy thanksgiving to Indian GDP
Funds behind Indian Browsers

Rahul Bansal (Finalist) (35929 Points)
Replied 02 December 2009

Low dividend or no dividend by a Company cannot be termed as oppression of minority shareholders Prerequisites for issue of valid notice for reopening of assessment under the Income Tax Act, 1961 Review of website on Power Graphics All overseas payments are subject to withholding tax, whether or not the income is taxable : Karnataka High Court Assocham asked to raise the tax exemption limit for Individuals to 4 lakh and for senior citizens to 5 lakh Code on corporate governance in a year’s time Government nominated Members of the Dispute Resolution Panel (DRP) on recommendations of the DGIT Merger of State Bank of Indore with State Bank of India (SBI) Investors can buy and sell mutual funds units like shares from 07th December 2009 Govt. may provide Interest subsidy on education loan to student from weaker section for moratorium period Banks may seek time beyond the March 2011 to shift to IFRS RBI rejected appointment of auditing firm PwC as auditors for commercial banks Unlicenced moneylenders can’t recover their money by using legal ways Introduction of new entries in the Drawback Schedule and clarification on certain issues RBI Circular on Up-gradation of PDO-NDS application to Windows 2008 Amendment in Notification No 103/2008-Customs (N.T.), dated the 29th August, 2008 – Determines the rates of drawback as specified in the Schedule KYC Norms/ AML Standards/Combating Financing of Terrorism/Obligation of Authorised Persons under PMLA, 2002, as amended by PML (Amendment) Act, 2009- Cross Border Inward Remittance under MTSS CBDT issues clarification on procedure for remittances abroad by diplomatic missions Safeguard the Constitution and its values – Mukul Wasnik ICAI president message on Environment Audit, Social Audit, KYC norms, GST, Corporate Forum, ICAI Elections, etc. IASB Exposure Draft of Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters ICAI changed examination center in Mumbai for CPT exam to be held in December 2009 17 FDI proposal worth Rs. 4500 crore cleared by Govt. on recommendation of FIPB

Rahul Bansal (Finalist) (35929 Points)
Replied 02 December 2009

Low dividend or no dividend by a Company cannot be termed as oppression of minority shareholders
Prerequisites for issue of valid notice for reopening of assessment under the Income Tax Act, 1961
Review of website on Power Graphics
All overseas payments are subject to withholding tax, whether or not the income is taxable : Karnataka High Court
Assocham asked to raise the tax exemption limit for Individuals to 4 lakh and for senior citizens to 5 lakh
Code on corporate governance in a year’s time
Government nominated Members of the Dispute Resolution Panel (DRP) on recommendations of the DGIT
Merger of State Bank of Indore with State Bank of India (SBI)
Investors can buy and sell mutual funds units like shares from 07th December 2009
Govt. may provide Interest subsidy on education loan to student from weaker section for moratorium period
Banks may seek time beyond the March 2011 to shift to IFRS
RBI rejected appointment of auditing firm PwC as auditors for commercial banks
Unlicenced moneylenders can’t recover their money by using legal ways
Introduction of new entries in the Drawback Schedule and clarification on certain issues
RBI Circular on Up-gradation of PDO-NDS application to Windows 2008
Amendment in Notification No 103/2008-Customs (N.T.), dated the 29th August, 2008 – Determines the rates of drawback as specified in the Schedule
KYC Norms/ AML Standards/Combating Financing of Terrorism/Obligation of Authorised Persons under PMLA, 2002, as amended by PML (Amendment) Act, 2009- Cross Border Inward Remittance under MTSS
CBDT issues clarification on procedure for remittances abroad by diplomatic missions
Safeguard the Constitution and its values – Mukul Wasnik
ICAI president message on Environment Audit, Social Audit, KYC norms, GST, Corporate Forum, ICAI Elections, etc.
IASB Exposure Draft of Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters
ICAI changed examination center in Mumbai for CPT exam to be held in December 2009
17 FDI proposal worth Rs. 4500 crore cleared by Govt. on recommendation of FIPB

Rahul Bansal (Finalist) (35929 Points)
Replied 03 December 2009

Expenses incurred towards training cannot be termed as fee for technical services
CBI recovered cash, FDRs and jewellery worth nearly Rs 1 crore from the residence of Vasudevan
A study on Patent infringement Law in India
Few tips to Prevent Income Tax Raids
Corporate governance meaning and Principals
Can a CESTAT Member who has not completed probation can be relived from his duty without assigning any reason?
SEBI Circular on Limitation period for filing of Arbitration reference
IRDA seek exemption of Third Party Administrators (TPAs) from Tax Deducted at Source (TDS)
Satyam Directors say that CBI report on Satym fraud may not necessarily present financial position and liabilities of the company
Post-Satyam Scam Forensic auditing on increase to track fraud
CBI accused internal auditor with “willful suppression of auditing irregularities”
Provisioning Coverage for Advances – Second Quarter Review of Monetary Policy for the Year 2009-10
RBI circular on Credit Information Companies (Regulation) Act, 2005
Establishment of Connectivity with both depositories NSDL and CDSL
Financial Inclusion by Extension of Banking Services – Use of Business Correspondents (BCs)
Debatable issues are not “mistakes apparent from the record” u/s 154
No capital gains in a business reorganization if consideration not determinable. Transfer pricing law does not apply if there is no income
Observance of ICAI Election Code of Conduct on the Date of Polling
Appointments in Competition Commission of India
Finance Act, 2003, which deleted second proviso to section 43B, will operate retrospectively w.e.f. 1-4-1988
Johnny and Service Tax Refund Part – VI
Partial and Full Partition of Hindu Undivided Family (HUF) and Income Tax provisions