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Showing posts from November, 2014

RBI on ECB-FD

RBI allows ECB borrowers to park ECB proceeds in fixed deposits for 6 months pending their utilizationNovember 24, 2014 EXTERNAL COMMERCIAL BORROWINGS (ECB) POLICY - PARKING OF ECB PROCEEDS A.P. (DIR Series 2014-15) Circular No. 39, DATED 21-11-2014Attention of Authorized Dealer Category - I (AD Category- I) banks is invited to A.P. (DIR Series) Circular No. 52 dated November 23, 2011 relating to parking of proceeds of External Commercial Borrowings (ECB).2. At present, eligible ECB borrowers are required to bring ECB proceeds, meant for Rupee expenditure in India for permitted end uses, such as, local sourcing of capital goods, on-lending to Self-Help Groups or for micro credit, payment for spectrum allocation, etc., immediately for credit to their Rupee accounts with AD Category - I banks in India.3. With a view to providing greater flexibility to the ECB borrowers in structuring draw down of ECB proceeds and utilisation of the same for permitted end uses, it has been d…

CA institute officials under lens

CA institute officials under lens
Debasish Konar,Nov 22, 2014, 12.00AM IST
KOLKATA: Enforcement directorate is going to summon some senior officials of the Institute of Chartered Accountants of India (ICAI) as the institute had failed to initiate action against the chartered accountants (CAs) involved in chit fund scams. The accused CAs had vouched false audit reports.When the SFIO (Serious Fraud Investigation Office) had been analyzing the audit reports of the Ponzi firms, the fabricated reports made by these CAs had led them nowhere.ED, while probing the Saradha scam, found that the CAs had given false statements while making the audit reports. The agency found that a number of these CAs were directly involved in the scam. Not only the CAs involved with Saradha, but CAs involved with other chit funds were also found submitting false reports.ED's special director Yogesh Gupta, who is himself a CA, wrote to the ethical committee of the institute complain about these unethical CAs.…

GST Highlights

Highlights of New Proposed Goods & Service Tax (GST) 1. The basic principal governing behind GST is to have single Taxation System for Goods and Services 
across the country. Currently Indian economy has various taxes on Goods and services such as VAT, 
Service Tax, Excise, Entertainment Tax, Luxury Tax Etc. now in the new Proposal of GST; we will be 
having only two taxes on all goods and Services as follows: 
a. State Level GST(SGST) 
b. Central Level GST (CGST) 
2. In case of Central GST, following Taxes will be subsumed with CGST which are at presently levied 
separately on goods and services by Central government: 
a. Central Excise Duty 
b. Additional Excise Duty 
c. The Excise Duty levied under Medicinal and toiletries preparation Act 
d. Service Tax 
e. Additional Custom Duty (CVD) 
f. Special Additional Duty 
g. Surcharge 
h. Education Cess and Secondary and Higher Secondary education Cess 
3. In case of State GST, following taxes will be subsumed with SGST; which are pri…

Circular on Re-Credit of Cenvat

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE AND CUSTOMS
CIRCULAR NO 990/14/2014-CX-8, Dated: November 19, 2014To, Principal Chief Commissioners/Chief Commissioners of Central Excise (All)
Principal Chief Commissioners/Chief Commissioners of Central Excise of Central Excise & Customs (All)
Director General, Directorate General of Central Excise Intelligence
Principal Commissioners/Commissioners of Central Excise (All)
Principal Commissioners/Commissioners of Central Excise & customs (All)
Web-master, CBEC Madam/Sir, Sub: Clarification regarding availment of CENVAT credit after six months-reg. Attention is invited to the Notification of the Government of India in the Ministry of Finance, Department of Revenue No. 21/2014-CE (NT) dated 11.07.2014, vide which, inter alia, amendment was made in Rule 4(1) and 4(7) of CENVAT Credit Rules, 2004 (CCR, 2004) to prescribe that manufacturer o…

TP Case of Shell

HC decides TP issue of undervaluation of shares in favour of shell; follows ratio of Vodafone's caseNovember 19, 2014On November 18, 2014 the Bombay High Court held in favour of Shell India on the issue of applicability of Transfer Pricing provisions in case of issue of shares. In this regard, the High relied upon decision in the case of Vodafone India Services (P.) Ltd. v. Union of India [2014] 50 taxmann.com 300 (Bombay). It held that Transfer Pricing provisions would not be applicable on alleged undervaluation of shares issued to foreign parent company, as there was no income arising there from. The High Court deleted the Transfer Pricing adjustment and the consequential interest in respect of alleged undervaluation of shares issued by Shell India.Previously, the Bombay High Court on October 10, 2014 in the case of Vodafone India Services (Supra)held that issue of shares by assessee to its non-resident AE at a price below the fair market value would not give rise to…

Section 80C- Bank term Deposit Limit increased to Rs. 1.50 Lakh

Section 80C- Bank term Deposit Limit increased to Rs. 1.50 LakhNOTIFICATION NO.  63/2014, Dated: November 13, 2014.S.O. 2906(E). In exercise of the powers conferred by clause (xxi) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendments to the the Bank Term Deposit Scheme, 2006, namely:-1. (1) This scheme may be called the Bank Term Deposit (Amendment) Scheme, 2014. (2) It shall come into force on the date of its publication in the Official Gazette.2. In the Bank Term Deposit Scheme, 2006, in para 3, in clause (1), for the words "one lakh rupees" , the words "one hundred and fifty thousand rupees" shall be substituted.[F.No.142/09/2014-TPL](Raman Chopra)
Director (TPL-II)
Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii),vide number S.O. 1220(E) dated the 28th July, 2006 and subsequently amended by notifica…

FD in Court- NO TDS

No TDS liability of bank under sec. 194A on interest accrued on FD made by litigant on directions of CourtNovember 13, 2014[2014] 51 taxmann.com 253 (Delhi) IT: Where litigant deposit FD with the bank on directions of Court, he ceased to have any control or proprietary right over those funds. Although FD was drawn in the name of the Registrar General, he was neither the recipient of the amount credited to that account nor the interest accruing thereon. There was no assessee to whom interest income from the FD could be ascribed, thus, bank was not liable to deduct tax under section 194A on interest accrued on such FD.Facts:(a)The petitioner ('UCO Bank') accepted a Fixed Deposit ('FD') made by litigant as per directives of the Court. The bank did not deduct tax on accrued interest on such FD as it was in name of Register General of Court as custodian and the actual beneficiaries were not known, as the matter was sub-judice. (b) Thus, the issue that a…

POA- Capital Gains

CAPITAL GAINS
In favour of: Assessee

Capital gains on sale of property cannot be assessed in the hands of power of attorney holder, when no consideration was paid to the actual owner at the time of execution of the power of attorney and the assessee had acted merely as an agent, since there was no transfer to or enabling enjoyment of property in favour of agent in any manner so as to attract Section 2(47)(vi).

High Court Of Madras
Commissioner Of Income Tax Vs C. Sugumaran : (2014) 90 CCH 0173 ChenHC
Decided On: Nov 03, 2014

NBFC-Revised Regulatory Framework

RBI tightens norms for NBFCsIn a bid to bring non-banking financial company (NBFC) norms in line with those of banks, the Reserve Bank of India (RBI) unleashed tighter rules for NBFCs. According to the new guidelines, NBFCs will require higher minimum capital, have less time to declare bad loans, and a board-approved fit and proper criteria for director appointments.The new norms, which will be implemented in a phased manner, are made applicable for NBFCs that manage funds worth Rs 500 crore and for those that accept public deposits. The central bank will also start granting fresh NBFC licences.

3 CB CD utility

FYI - CBDT on 06-11-2014 released Revised Form 3CA-3CD & Form 3CB-3CD filing utility along with updated Schema. Revised Utility is is now available for e-Filing.Download Revised Utility updated on 06th November for Tax Audit Report for AY 2014-15.

CBDT to I-T officers: make proper tax assessments

The Central Board of Direct Taxes (CBDT) has directed supervisory officers to play a more proactive role in ensuring that high-pitched assessments without proper basis are not made by the Income-Tax Department. Also, such officers should ensure that lengthy questionnaires or summons without due application of mind are avoided, CBDT said in a circular to its field officers. This instruction is seen as yet another effort on part of the CBDT in moving towards a non-adversarial tax regime. Though less than one per cent of returns filed are selected for scrutiny, this area of work has often drawn adversarial comments. Supervisory officers have now been directed to ensure inspections and reviews are undertaken in accordance with guidelines issued. This must be done to enable capacity building within the department and accountability of the officers. The CBDT has highlighted that enquiries arising in limited scrutiny cases selected on the basis of AIR/CIB/26AS information will …

CPE requirement for 2014-2016

CPE HOURS REQUIREMENTS FOR THE BLOCK PERIOD OF 3 YEARS (1-1-2014 TO 31-12-2016) TO BE COMPLIED WITH BY DIFFERENT CATEGORIES OF MEMBERS
A. All the members (aged less than 60 years) who are holding Certificate of Practice (except all those members who are residing abroad) are required to:  a) Complete at least 90 CPE credit hours in a rolling period of three-years.  b) Complete minimum 20 CPE credit hours of structured learning in each calendar year. C) Out of the 90 CPE Credit Hours as mentioned above, 30 CPE credit hours can be completed either through Structured or Unstructured learning (as per Member’s choice).  B. All the members (aged less than 60 years) who are not holding Certificate of Practice and all the members who are residing abroad (whether holding Certificate of Practice or not) are required to:  (a) Complete at least 45 CPE credit hours either structured or unstructured learning (as per Member’s choice) in rolling period of three-years  b) Complete minimum 10 CPE credit hour…

Non Submission of C Form-Interest

Interest chargeable from 'Return Date' on Form "C" non-production, not 'Assessment' under CST ActHC quashes Tribunal order, interest chargeable from the date of furnishing monthly returns in case of default in furnishing 'C' Form declarations claiming concessional rate under Central Sales Tax (CST) Act; Tribunal misread SC judgement in J. K. Synthetics wherein liability to pay tax and interest thereon was held to arise only after adjudication and not earlier to it; In instant case, assessee aware of liability on inter-state sale, hence tax paid pursuant to assessment order ought have been paid alongwith return, as prescribed under CST Act; Having failed to do so, State deprived of revenue and hence, interest payable from the date when assessee became liable to pay tax to compensate the delay; Rejects assessee's contention that no interest payable absent provision in CST Act, Sec 9(2B) r/w Sec 36 & 37 of Karnataka VAT Act makes it v…

Interest U/s 234 A Stayed

Madras High Court Stays Clause 7 of CBDT Order dated 26-09-2014 regarding Extension of ITR Due Date AY 2014-15 with Levy of Interest u/s 234AEarlier on 26-09-2014 CBDT, following the direction of the Gujarat High Court had extended the due date for Income Tax Returns (ITR) filing from 30th September, 2014 to 30th November, 2014 for assessee covered under tax audit us 44AB of Income Tax Act, 1961. However, the clause 7 of CBDT order dated 26-09-2014 provided that assessee shall have to pay interest under section 234A for the period of the extension granted. Clause 7 of CBDT Order is reproduced hereunder: 7. There shall be no extension of the "due date" for the purposes of Explanation 1 to section 234A (Interest for defaults in furnishing return) of the Act and the assessees shall remain liable for payment of interest as per the provisions of section 234A of the Act.Now, it is reported that the Madras High Court has granted a stay on the operation of the clause 7 …