Budget 2011-2012 highlights, PE II, PCE, IPCE, CA, Exam, Results, new answer sheet format, New Income Tax Slab Rates, Revised DTC Discussion Paper, Saral 2 Form, Perquisites Notification No. 94/2009, sec 80C, ITR Forms, Indian Union Budget 10

Govt clarifies the policy on Capital goods transfer in SEZs

October 29th, 2010

The government today clarified the policy concerning the transfer of used capital goods into special economic zones (SEZ) from outside of the enclaves, stating that a company can shift the equipment to set up units into the SEZs. However, the value of such second-hand goods should not exceed (20 per cent) to avail of the tax benefits.

This comes after a spate of incidents happened concerning some of the large-scale information technology (IT) companies such as Wipro, Mphasis and Geometric. In some of these cases, the development commissioner (DC), in charge of the SEZs, permitted the transfer of the goods from the STPI (Software Technology Parks of India) unit to SEZ and issued a letter of approval, which was later cancelled.

“There are no provisions in the SEZ Act/Rules preventing such a transfer of goods. The only deterrent for transfer of such goods is not getting the exemption under the Income Tax Act when the value of the

Small investors not ploughing back in stocks

October 29th, 2010

After cashing out of the recent stock market rally, investors aren’t ploughing their money into just initial public offerings (IPOs), bonds or real estate. The feel-good factor has prompted many of them to splurge on luxury cars, exclusive holidays and designer brands.

Sample this: luxury car manufacturers BMW, Mercedes and Audi have seen a significant increase in sales in the second quarter, according to Society of Indian Automobile Manufacturers data. BMW doubled sales to 1,701 cars in the previous quarter, while Mercedes and Audi reported 70 and 60 per cent sales increases, respectively.

“The stock market is a major enabler for pushing sales,” said Debashish Mitra, head of sales & marketing at Mercedes-Benz in India. The company recently introduced the R Class, priced at Rs 60 lakh, thanks to

Company FDs, be cautious on fraud FDs

October 29th, 2010

Inflation is in the double-digit territory and bank FDs are, at best, fetching merely 7-8 percent interest per annum. So, the real return from bank deposits is negative, which has led to lot of people making a beeline for company FDs that offer a slightly higher return than bank FDs. Company FDs have seen a renewed interest and higher flows from investors in the past one month.

The Sensex has moved from 8000 to 19000, unexpected windfall for many investors, making them a bit nervous about the future course of the market in the process. This has prompted some investors to book profits and invest the money in safe and simple products like company FDs.

The problem with company FDs is the presence of dubious players who enter the market time and again.

Ikea proposes India govt to allow 100% FDI in retail to set shop

October 29th, 2010

Shishir Bhate, Swedish home furnishing retail giant Ikea, which had put on hold its $1-billion India investment plans in 2009, wants to take a relook at India’s retail growth story if the government allows 100 per cent foreign direct investment in multi-brand retail, said Union Commerce and Industry Minister Anand Sharma on board the prime minister’s aircraft on way to Hanoi from Kuala Lumpur.

The minister said that “Ikea’s proposal for allowing 100 per cent FDI in multi-brand retailing was under the government’s consideration.”

The $31-billion company, which sources around 30 per cent of its global consumption from India, had also criticised the Indian government for not opening foreign direct investment in single brand retailing, especially for companies whose presence in India would not affect the mom-and-pop stores.

India allows 51 per cent FDI in single brand retail but the foreign company must have an Indian partner.

RBI Reference Rate for US $ and Euro – 29th October 2010

October 29th, 2010

The Reserve Bank of India’s Reference Rate on October 29, 2010

for the US Dollar is Rs. 44.54

for Euro is Rs. 61.81

The corresponding rates for the previous day (October 28, 2010) were Rs. 44.49 and Rs. 61.56 respectively.

Week 25th to 30th October ’10 Highlights

October 29th, 2010

ICAI

Contribution to the Question Bank of CPT

The Common Proficiency Test (CPT) is an entry level test meant for 10+2 students to the Chartered Accountancy Profession having multiple choice objective questions. The level of knowledge expected is basic knowledge with the objective to develop conceptual understanding of the subject concerned. With a view to augment the Question Bank in the Subjects of …

ICAI President Amarjit Chopra’s Message – November 2010

Dear All, “India stands at a crucial stage. All across the globe there is interest in India as an emerging global power… We have to be able to compete with the finest minds in the world. In this, education occupies a crucial position,” so said Hon’ble President of India Smt. Pratibha Devisingh Patil recently. I …

Income Tax

Delhi ITAT: Tax payable on import of all software

Tax is payable on import of all software, even if the sale does not involve exercise of copyright, according to a Delhi tax tribunal order in a case relating to Microsoft. While the order, passed on October 28, is significant in terms of the liability to withhold tax from payments made while importing software, …

Results of delay in filing income tax returns

The penalty for late filing is actually not much. But it is important that the details are all there and without error As we all know, the last date for filing the tax return is July 31. What if you were

Govt clarifies the policy on Capital goods transfer in SEZs

Small investors not ploughing back in stocks

Company FDs, be cautious on fraud FDs

Ikea proposes India govt to allow 100% FDI in retail to set shop

RBI Reference Rate for US $ and Euro – 29th October 2010

The Reserve Bank of India’s Reference Rate on October 29, 2010

for the US Dollar is Rs. 44.54

for Euro is Rs. 61.81

Week 25th to 30th October ’10 Highlights

Contribution to the Question Bank of CPT

ICAI President Amarjit Chopra’s Message – November 2010

Delhi ITAT: Tax payable on import of all software

Results of delay in filing income tax returns

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