Week 9th to 14th August ’10 Highlights
ICAI
Payment of Annual MembershipCertifacte of Practice Fee for the Year 2010-11
The annual Membership and Certificate of Practice fees (if member holds certificate of practice) became due and payable on 1st April, 2010. Circulars advising members to pay the membership certificate of practice fee were sent to individual members in the month of April, 2010 and published in May, 2010 issue of the Journal. Attention of all …
CA lobby not letting ICWAI change name
Trouble seems to be brewing between the apex accounting body of chartered accountants, the Indian Chartered Accountants Institute (ICAI) and the Institute of Costs and Works accountants of India (ICWAI). The ICAI has declared an open war against the proposal of name change of ICWAI toInstitute of Costs and Management Accountants of India (ICMAI). …
ICAI gears up for IFRS implement in India
The Institute of Chartered Accountants of India (ICAI) has launched an initiative to train chartered accountants in India so that the International Financial Reporting Standards (IFRS) could be put in use in the country by 2014, said G Ramaswamy, Vice-President of ICAI in a press conference here on Sunday. The IFRS will be implemented in …
Income Tax
S. 14A applies where shares are held as investment and the only benefit derived is dividend
CIT vs. Leena Ramachandran (Kerala High Court) S. 14A applies where shares are held as investment and the only benefit derived is dividend. S. 36(1)(iii) deduction allowable if shares held as stock-in-trade The assessee borrowed funds to acquire controlling interest shares in a company with which she claimed to have business dealings. The interest on …
Rule 8D is not retrospective and applies from AY 2008-09
Godrej & Boyce vs. DCIT (Bombay High Court) Rule 8D r.w. S. 14A (2) is not arbitrary or unreasonable but can be applied only if assessee’s method not satisfactory. Rule 8D is not retrospective and applies from AY 2008-09. For earlier years, disallowance has to be worked out on “reasonable basis” us 14A (1) In …
No Pan for over 100 diplomats resulting in non submission of TDS return by MEA
The Ministry of External Affairs is in the soup for not filing e-TDS (tax deduction at source) for the past few years and at fault are over 100 diplomats who have not given their PAN numbers to the ministry. Sources said the Income Tax (I-T) Department has taken up the matter with the MEA, and …
Eleven Aayakar Seva Kendras to be Set-up in 2010-11
The Government has decided to set up Aayakar Seva Kendra at following 11 locations during the current financial year 2010-11: S.No. State Location 1. Orissa Bhubaneswar 2. Tamilnadu Coimbatore 3. Gujarat Gandhinagar and Surat 4. Assam Guwahati 5. Madhya Pradesh Indore 6. West Bengal Kolkata and Chinsurah 8. Jharkhand Ranchi 9. Rajasthan Udaipur …
S. 147 reopening for rectifying s. 154 mistakes is invalid
Hindustan Unilever vs. DCIT (Bombay High Court) The AO issued a notice us 148 to reopen the assessment within 4 years from the end of the assessment year. There were four recorded reasons and one of them was that the AO had committed a computational error in the assessment order by deducting the wrong figure …
No MAT for foreign firms without permanent office
The purpose behind the introduction of provisions relating to MAT (Minimum Alternate Tax; Section 115JB) was to levy some tax on the “Zero Tax Companies“. The government felt a number of companies with huge profits were avoiding payment of income tax by adjusting their profits against allowances permitted under the Income-tax Act. To circumvent this …
No major changes in Direct Tax Code bill
The government may not introduce too many changes in the Bill on the Direct Taxes Code, except in a few contentious areas such as taxation of special economic zones, capital gains and unit-linked insurance plans. The Bill is likely to be placed in Parliament towards the end of the ongoing monsoon session. A major part …
Are Parents liable to tax for minor’s income?
The gain would be taxable under the capital gains head. It would be a short-term capital asset if the paintings are held for up to 36 months and a long-term capital asset otherwise. In case of long-term capital gains, the benefit of indexation would be available on the cost of acquisition of such paintings.
18 Indians, Rs 44 cr untaxed money uncovered in LGT Bank
The Finance Ministry today said it has uncovered around Rs 44 crore of untaxed money parked by 18 Indian nationals with LGT Bank in the European tax haven of Liechtenstein and have raised a tax demand of Rs 24 crore. “Assessments have been made against total 18 individual cases involving total assessed income of Rs …
IT dept worried with 50% TDS data mismatch cases
Tax deducted at source (TDS) has become a problematic issue with theincome tax department as in more than 50% TDS refund cases it is facing an uphill task in matching the data provided in the assessee’s income taxreturns with the TDS deductor’s information available with the NSDL. And the mismatch is resulting in …
Assocham: Increase in capital gains tax will work in economy’s interest
The government should increase the capital gains tax to 30 per cent from the current 20 per cent to retain foreign investments in the economy for a longer duration, industry body Assocham said. “The time has come when India needs to increase capital gains tax on securities traded into Indian capital markets on FIIs investments …
RBI
Now NBFCs can trade in currency futures
The Reserve Bank of India (RBI) today allowed non-banking finance companies (NBFCs) to trade in currency futures, giving them the opportunity to hedge their risks against exchange rate volatilities. However, these entities will trade in these instruments only for hedging their forex exposures, the apex bank said in a notification. “It has been decided that …
RBI: Discussion paper on new banking licenses
The Reserve Bank of India on Wednesday brought out a discussion paper on giving out new banking licenses to business houses and non-banking finance companies, and regulations for the same to foster greater competition. “The Reserve Bank is considering providing licenses to a limited number of new banks. A larger number of banks would foster …
SEBI
SEBI sets Arbitration Norms
Market regulator tells bourses to streamline process for redressal of disputes. The Securities and Exchange Board of India (Sebi) has asked stock exchanges to streamline the mechanism for arbitration of disputes between a client and a member across various market segments. Exchanges have been directed to maintain a panel of arbitrators, with their number commensurate …
SEBI lowers single FII investment ceiling in govt & corporate debt
With the debt market attracting foreign institutional investors in droves, market regulator SEBI today drastically reduced the amount that a single such entity can invest in government and corporate papers. According to a circular issued today, SEBI has lowered the ceiling on investment by a single FII in government debt to Rs 100 crore from …
GST
GST Bill: Centre may drop veto
Veto to all the states or no veto power to anyone Amid opposition from the states, the Centre may smoke the peace pipe by dropping the contentious provision in the Constitutional Amendment Bill on a Goods and Services Tax (GST) that proposed to arm the Union finance minister with veto power. The Bill is being …
Centre, states GST panel to meet on 18 Aug to discuss GST Amendment Bill
Finance Minister Pranab Mukherjee is likely to meet the state GST panel on August 18 to discuss the revised draft of Constitution Amendment Bill so as to allay fears of states on providing veto powers to the Centre. Sources said the revised draft will change the structure of the GST Council, which was apprehended by …
Service Tax
No service tax on underwriting commission of primary dealers
The Finance Ministry has clarified that underwriting commission received by primary dealers while dealing in Government securities will not attract any service tax. This is because Government securities are not securities of a body corporate. Service tax is applicable on underwriting commission only for dealing in securities of a body corporate, the Revenue Department said …
Taxation of services in India – ‘POTR’
Taxation of services in India has been a learning experience for not only the tax payers but also the tax administrators. The gradual expansion of the list of taxable services from an initial five to more than one hundred and fifteen has posed its own challenges. This has been compounded as a result of the …
Audit
IFRS & Small and Medium Enterprises
There is no proposal to make small and medium enterprises adoptInternational Financial Reporting Standards (IFRS), the Lok Sabha was informed today. “In view of the complicated and high cost nature of compliance with IFRS, it is not suitable for small and medium enterprises at present,” Minister of State for Micro, Small and Medium Enterprises …
Indirect Tax
Indirect Tax collections for April-July up 46 per cent
Indirect tax collection increased by 46.2 per cent during the first four months of this financial year, boosted by a sharp jump in the collection of custom duties. Total revenue collections were to the tune of Rs.96,223 crore during April-July 2010. The maximum growth was in customs collections which increased more than 70 per cent …
General
ULIP renewal commission may go up
Insurers want to encourage persistency in agents. To address concerns on persistency and recovery of acquisition costs after the stiff regulations on unit-linked insurance plans (Ulips), insurance companies are going to raise the commission they pay on renewal premium by up to 100 per cent. Surrender charges have now been capped from the second year.
Source >>> https://www.forum4finance.com/
Link >>> https://www.forum4finance.com/2010/08/14/week-9th-to-14th-august-10-highlights/
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