ICAI
Panel rejects renaming of ICWAI to ICMAI
Renaming is not a simple exercise in the world of cost accountants. The parliamentary standing committee on finance headed by former finance minister Yashwant Sinha has rejected the demand of the Institute of Cost and Works Accountants of India (ICWAI) to rename it as Institute of Cost and Management Accountants of India (ICMAI). In the …
For Attention of members carrying out tax audit us 44AB of the I-T Act,1961
Attention of members is invited towards the changes in the Guidance Note on tax Audit under section 44AB of the Income-tax Act, 1961 approved subsequent to the publication of the Supplementary Guidance Note, issued by the erstwhile Fiscal Laws Committee, as a part of the 
publication “Guidance Note on Audit of Fringe Benefits under the …
ICAI invites Suggestions on the Direct Taxes Code Bill, 2010
As you are kindly aware that the Direct Taxes Code Bill, 2010 has been introduced in the Parliament on 30thAugust, 2010. The Direct Taxes Committee of ICAI requests you to kindly send your valuable suggestions on the same. Kindly forward your valuable suggestions at dtc2010@icai.org
Income Tax
Vodafone’s plea in tax case not accepted by Bombay HC
The Bombay High Court ruled India’s tax department has jurisdiction over tax bills in cross-border mergers, dismissing a petition by Britain’s Vodafone, setting a precedent for overseas firms looking to buy into Indian companies. Vodafone, fighting a tax bill in India from its 2007 purchase of Hutchison Whampoa Ltd’s mobile business in the country, had …
BSE Card is an “intangible asset” and eligible for depreciation us 32(1)(ii)
Techno Shares & Stocks vs. CIT (Supreme Court) S. 32 (1), as amended w.e.f. 1.4.1998 allows depreciation on “intangible assets” being, inter alia, “licenses … or any other business or commercial rights of similar nature”. The Tribunal took the view that a BSE card was an “intangible asset” eligible for depreciation. On appeal by the …
FM meets IT officials on increasing number of tax evasion cases
Finance Minister Pranab Mukherjee held a closed-door meeting with officials of the Income Tax department in Mumbai in view of the increasing number of tax evasion cases being reported from the financial metropolis. The meet assumes significance as the Mumbai unit of the I-T department is handling probe into high-value cases of tax evasion including …
Time limit for filing ITR-V for assessment year 2009-10 extended
The Central Board of Direct Taxes (CBDT) has decided to extend the time limit for filing ITR-V forms relating to income-tax returns for A.Y. 2009-10 filed electronically (without digital signature) on or after 1st April 2009. These ITR-V forms can now be filed up to 31st December 2010 or within a period of 120 days …
S. 115JB “book profits” have to be reduced by deduction “eligible” us. 80HHC & not “actual” deduction
Ajanta Pharma vs. CIT (Supreme Court) In respect of AY 2001-2002, the assessee claimed that though s. 80HHC (1B) limited the deduction to 80% of the profits eligible for deduction us 80HHC, this limitation did not apply for purposes of “book profits” us 115JB and that 100% of the 80HHC profits were deductible. The Tribunal …
SC grants partial relief to foreign companies on TDS
The issue relates to the obligation of the payer to deduct and deposit TDS in relation to remittances made to foreign parties. Granting partial relief to foreign companies operating in the country, the Supreme Court today reversed the judgment of the Karnataka High Court that there was an obligation in each and every case of …
TDS obligation us 195(1) arises if payment is chargeable to tax
TDS obligation us 195(1) arises only if the payment is chargeable to tax in the hands of non-resident recipient GE India Technology Centre vs. CIT (Supreme Court) The assessee, an Indian company, made remittance to a foreign company for purchase of software. The assessee took the view that the payment was not chargeable to tax …
DTC
Relief for property owners in DTC Bill
The Direct tax Code Bill 2010 (DTC), which was recently introduced at the Parliament, has given relief to the property owners on two major account, firstly, no deemed taxation for House Property and secondly, deduction for interest for self occupied house property.’ While, the concept of deemed taxation of more than one house property has …
With DTC the House property tax regime is set to change
Indians typically consider house property as an important source of investment for long-term returns. However, with the Direct Taxes Code (DTC), 2010, proposing significant changes in the way house property income would be subject to tax, it becomes imperative for investors to take note of the changes and plan their investment decisions accordingly. Rental Income …
DTC a cause for worry for FIIs
The Direct Taxes Code, which was recently tabled in the Parliament has as one of its noble objectives, reducing the uncertainty and litigation for the foreign investors. However, the recent version of the Bill may have just done the opposite for the Foreign Institutional Investors (FIIs). One hopes that some of these proposals are unintended …
New Tax Code: Baby steps in tax reform
The Bill on the direct taxes code (DTC) placed in Parliament is very much on expected lines. The wide-ranging proposals to broaden the base in the first discussion paper have been diluted in the revised paper which is broadly reflected in the Bill. The only major difference is in the treatment of capital gains. The …
Company Law
Companies bill likely to become law by fiscal-end
The government on Tuesday excuded confidence that the new Company Law, which promises greater shareholder democracy and stricter corporate governance norms will be enacted by the end of this fiscal. The Companies Bill 2009, which seeks to replace the half-a-century-old Act, was introduced in the Lok Sabha in August last year. “We were determined on …
Parliament panel calls for clearer roles of independent directors
The Parliamentary Standing Committee on Finance, which has reviewed the Companies Bill 2009, has called for clearly-defined roles and responsibilities of independent directors, along with a standardised process of appointment. The observation came in response to the Ministry of Corporate Affairs’ submissions in the wake of the Satyam Computer accounting scam, where its founder and …
Service Tax
Govt may lose over Rs 500 crore in service tax disputes this year
The government may lose over Rs 500 crore in service tax this year, as its decision to impose tax on eight new services and amend some existing ones has been challenged in three cases — copyright, immovable property and health check-up services provided by insurance companies. This is about half of the total revenue it …
GST
In GST regime foodgrain may cost more
Prices of food grains, especially wheat and rice, may go up in the proposed Goods and Services Tax (GST) regime. At present, about half the states do not levy Value Added Tax (VAT) on wheat and rice, though they are allowed to tax these food grains at 4 per cent. In GST, these items may …
SEBI
NSE to start mobile trading from Oct
With a view to reach out to more customers, the National Stock Exchange (NSE) is gearing up to launch mobile trading through nearly 800 registered brokers in early October, an NSE official said. Currently, only about 10-15 big brokers who have the infrastructure offer mobile trading but at very high costs. “For the first time …
General
PSU to finalise Uniform rate for cashless claims in a week
Public sector insurance companies and large hospitals will finalise a uniform rate structure for cashless treatment scheme within a week, said chairman of a state-owned insurer. “Within a week we will be able to arrive at the package rates of the big corporate hospitals. (They) have given us their own rates (and) based on that …
