LEGAL & FINANCIAL UPDATES

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

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

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

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

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

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

1. Mumbai ITAT rules deductibility of PE expenses under India- Mauritius Tax Treaty
2. Clarification on changes in profession tax rates
3. Cashless hospitalisation schemes offered by insurance companies comes under the income-tax net
4. Salary of Rs 14 lakhs in 1997 to employee of charitable Trust held to be unreasonable
5. 71 additional Special Courts to clear backlog of CBI case
6. Brokers oppose move to extend trading hours
7. Convergence with IRFS only after addressing concerns of the industry
8. Governments have no plan to further liberalize FDI in retail sector
9. GJEPC suggested changes in proposed Direct Tax Code (DTC)
10. RBI plans to set up working group to revisit the draft guidelines on credit default swaps (CDS)
11. IBF criticised HRD ministry’s proposed amendments to the Copyright Act
12. GST rate may be 12% instead of most believed 16%
13. RBI Circular on Up-gradation of RTGS System to Windows 2008
14. 20 year old undergraduate fetch the offer of 32 lakhs per Annum
15. British engineers found new way to stop computer viruses in their tracks
16. IT department to recover 1000 crore from infrastructure development companies
17. Clarification on calculation of NFE as per Rule 53 of the SEZ Rules, 2006
18. Convergence of G-20 on Modalities at WTO
19. Crude Oil my touch $100 Per Barell

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

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

1. RBI will ask banks to provide details of their direct and indirect exposure to Dubai
2. Convergence to IFRS by April 2011 as India is signatory to IFRS
3. Success of transition to GST will depend on alignment with Indirect taxes
4. Dubai crisis will not have much impact on our economy: Pranab Mukherjee
5. Burden to determine “actual cost” of assets in accordance with law is on Assessing officer
6. Applicability of Interest u/s 234B or 234C on taxable profit/book profit computed under section 115JA
7. Receipt through banking channel not sufficient to prove genuineness of a gift
8. Rent income from subleasing can not be taxed under the head `income from business’
9. AO not empowered to select head of income for computation of permissible deductions u/s 40(b)
10. Taxability of ESOP up to 31.03.2000
11. I-T relief for welfare contributions
12. Life insurance policy and Protection to policyholders
13. Need for Life Insurance
14. History of General Insurance, Reform in the sector, General Insurance Products, Non –Life Insurance companies and IRDA
15. Mere Expression Of Regret Cannot Be Interpreted As Admission Of Guilt
16. 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
17. Compliance to be insured by ICAI election candidates , their authorised representatives and by members of ICAI
18. Procedure for seeking clarification on policy issues relating to SEZ Act and Rules from Department of Commerce
19. Guidelines for consideration of proposals for authorized operations by the BoA
20. Circular on Setting up Private/Public bonded warehouse for diamonds and gemstones for import and re-export therefrom
21. Exchange Rate notification for Import / Export of goods with effect from 1st November, 2009
22. RBI circular on Auction of Government of India Dated Securities
23. Memorandum of Instructions for Opening and Maintenance of Rupee /Foreign Currency Vostro Accounts of Non-resident Exchange Houses
24. High Level Committee to Review Lead Bank Scheme – Providing banking services in every village having population of over 2000 by March 2011
25. Circular on Augmentation of capital funds by issue of Long Term Deposits
26. Practical guide to documentation for audit ,peer review, Financial Review and other assurance services
27. Internal Audit of treasury

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

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

1. Low dividend or no dividend by a Company cannot be termed as oppression of minority shareholders
2. Prerequisites for issue of valid notice for reopening of assessment under the Income Tax Act, 1961
3. Review of website on Power Graphics
4. All overseas payments are subject to withholding tax, whether or not the income is taxable : Karnataka High Court
5. Assocham asked to raise the tax exemption limit for Individuals to 4 lakh and for senior citizens to 5 lakh
6. Code on corporate governance in a year’s time
7. Government nominated Members of the Dispute Resolution Panel (DRP) on recommendations of the DGIT
8. Merger of State Bank of Indore with State Bank of India (SBI)
9. Investors can buy and sell mutual funds units like shares from 07th December 2009
10. Govt. may provide Interest subsidy on education loan to student from weaker section for moratorium period
11. Banks may seek time beyond the March 2011 to shift to IFRS
12. RBI rejected appointment of auditing firm PwC as auditors for commercial banks
13. Unlicenced moneylenders can’t recover their money by using legal ways
14. Introduction of new entries in the Drawback Schedule and clarification on certain issues
15. RBI Circular on Up-gradation of PDO-NDS application to Windows 2008
16. Amendment in Notification No 103/2008-Customs (N.T.), dated the 29th August, 2008 – Determines the rates of drawback as specified in the Schedule
17. 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
18. CBDT issues clarification on procedure for remittances abroad by diplomatic missions
19. Safeguard the Constitution and its values – Mukul Wasnik
20. ICAI president message on Environment Audit, Social Audit, KYC norms, GST, Corporate Forum, ICAI Elections, etc.
21. IASB Exposure Draft of Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters
22. ICAI changed examination center in Mumbai for CPT exam to be held in December 2009
23. 17 FDI proposal worth Rs. 4500 crore cleared by Govt. on recommendation of FIPB

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