Monthly Archives: October 2015

Delhi Govt ordering tariff audit of discoms by CAG quashed by HC

By | October 31, 2015

Direction of Delhi Govt ordering tariff audit of discoms by CAG quashed as the opportunity given to discoms to represent against the proposal for audit was not a “reasonable opportunity” within the meaning of section 20(3) of the CAG Act as the opportunity was given without disclosing the public interest in which audit of DISCOMS… Read More »

Compulsory acquisition under Section194LA does not include land acquired under agreement

By | October 31, 2015

Whether acquisition of land under an agreement by Karnataka Industrial Area Development Board (a state Government Undertaking) with landowners under the Karnataka Industrial Areas Development Act, 1966 (‘KIA Act’) would be deemed as compulsory acquisition within the meaning of Section 194LA?” Held Section 194LA applies only when there is a compulsory acquisition under law. Under… Read More »

No Search proceddings under Section 153C due to seizure of CA Hard disk containing Income tax return data of Client

By | October 31, 2015

HIGH COURT OF DELHI Commissioner of Income-tax.-7 v. RRJ Securities Ltd. DR. S.MURALIDHAR AND VIBHU BAKHRU, JJ. IT APPEAL NOS. 164,175,176 & 177 OF 2015 OCTOBER  30, 2015 N.P. Sahni Senior Standing Counsel and Nitin Gulati Junior Standing Counsel for the Appellant. Kapil Goyal and V.M. Chaurasia for the Respondent. JUDGMENT Vibhu Bakhru, J –… Read More »

Stock market Glossary

By | October 31, 2015

Account closure (depositor account) The closure of beneficiary and pool accounts by the investor and the clearing member or at the discretion of the participant, if the client has defaulted in its obligations towards the participant. Accounts Payable A current liability showing the amounts due to others within a period of one year when such… Read More »

FAQ’s on delisting of Equity Shares

By | October 31, 2015

FREQUENTLY ASKED QUESTIONS ON SEBI (DELISITING OF EQUITY SHARES) REGULATIONS, 2009 These FAQs offer only a simplistic explanation/clarification of terms/concepts related to the SEBI (Delisting of Equity Shares) Regulations, 2009 [“Delisting Regulations, 2009”]. Any such explanation/clarification that is provided herein should not be regarded as an interpretation of law nor be treated as a binding… Read More »

FAQ on Issue of Capital and Disclosure Requirements

By | October 31, 2015

 FREQUENTLY ASKED QUESTIONs SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 dated August 26, 2013 Q.1.What is the applicability of SEBI (Issue of Capital and Disclosure Requirements) (Second Amendment) Regulations, 2013 notified on August 26, 2013? Ans.1.The said amendments are applicable for the preferential issuances where notice for the general meeting for… Read More »

AO could not issue reassessment Notice if he did not have jurisdiction over assessee

By | October 31, 2015

Assessment year 2010-11 Facts of the case: One of income-tax officers was designated to collect AIR information and to make necessary enqury .Designated officer having received information from AIR, issued notice under section 148 to assessee . He also made an attempt to frame assessment over assessee .When assessee raised objection about his jurisdiction over… Read More »

Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013

By | October 30, 2015

Auditing and Assurance Standards Board Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013 The Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India has today issued the Guidance Note on Reporting on Fraud under Section 143(12) of the Companies Act, 2013. For the benefit of… Read More »

Packaged,readymade, off the shelf software are liable only to VAT

By | October 30, 2015

 High Court of Karnataka Finance Department of Karnataka Department vs IBM India Private Limited, STRP No. 215/2011  18th September 2015, Following aspects in respect of sale and development of customized software has been held with regard to their taxability: 1.The packaged, readymade, off the shelf software are pure goods liable only to VAT. 2. The… Read More »

No addition of sundry creditors while making assessment under section 44AF

By | October 30, 2015

No addition can be made in respect of sundry creditors while making assessment under section 44AF IN THE ITAT PANAJI BENCH Good Luck Kinetic v. Income-tax Officer, Ward -2, Margao GEORGE MATHAN, JUDICIAL MEMBER AND N.K. BILLAIYA, ACCOUNTANT MEMBER IT APPEAL NO. 26 (PNJ.) OF 2013 [ASSESSMENT YEAR 2006-07] JUNE  15, 2015 A perusal of… Read More »

Advances paid for purchase of Machinery amount to utilization u/s 54G

By | October 30, 2015

Advances paid for purpose of purchase and/or acquisition of plant/machinery, and land/building amount to utilization by assessee of capital gains under section 54G SUPREME COURT OF INDIA Fibre Boards (P.) Ltd. v. Commissioner of Income-tax, Bangalore A.K. SIKRI AND ROHINTON FALI NARIMAN, JJ. CIVIL APPEAL NOS. 5525 – 5526 OF 2005 AUGUST  11, 2015  A… Read More »

Assessee can claim Section 10A even though he claimed Section 80HHE in earilier Assessment Year

By | October 30, 2015

PR. Commissioner of Income Tax Vs. E-funds International India Pvt. Ltd., I.T.A. No. 607/2015, Date of Order: 06.10.2015, High Court of Delhi Whether AO is correct while not allowing deduction under Section 10A to the Assessee either for the same or any subsequent assessment year where assessee had claimed deduction under Section 80HHE of the… Read More »

Framework for Revitalising Distressed Assets in the Economy

By | October 30, 2015

Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy – Review of the Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action Plan (CAP) RBI/2015-16/214 DNBR.CC.PD.No. 070/03.10.01/2015-16 October 29, 2015 To All Non-Banking Financial Companies (NBFCs) Madam/ Sir, Early Recognition of Financial… Read More »

Subscription to National Pension System by Non Resident Indians

By | October 30, 2015

RBI/2015-16/216 A.P. (DIR Series) Circular No. 24 October 29, 2015 To, All Authorised Dealer Category – I Banks Madam/Sir Subscription to National Pension System by Non-Resident Indians (NRIs) Attention of Authorised Dealers Category – I (AD Category – I) banks is invited to the Foreign Exchange Management (Transfer or Issue of Security by a Person… Read More »

Short Selling allowed by RBI between CSGL account holder (custodian) and its gilt account holder (GAH)

By | October 30, 2015

RBI/2015-16/217 FMRD.DIRD.5/14.03.007/2015-16 October 29, 2015 All market participants Dear Sir/Madam Secondary Market Transactions in Government Securities – Short Selling This has reference to circular IDMD.No.03/11.01.01(B)/2005-06 dated February 28, 2006, as updated vide circulars IDMD.No/11.01.01(B)/2006-07 dated January 31, 2007, IDMD.DOD.No.3165 /11.01.01(B)/ 2007-08 dated January 1, 2008, IDMD.PCD.14/14.03.07/2011-12 dated December 28, 2011, IDMD.PCD.21 /14.03.07/2011-12 dated June 21,… Read More »

Change in name on account of marriage or otherwise

By | October 30, 2015

Amendment to Prevention of Money Laundering (Maintenance of Records) Rules, 2005 – Submitting ‘Officially Valid Documents’ – Change in name on account of marriage or otherwise RBI/2015-16/213 DBR. AML.BC. No. 46/14.01.001/2015-16 October 29, 2015 The Chairpersons/ CEOs of all Scheduled Commercial Banks/ Regional Rural Banks/ Local Area Banks/ All India Financial Institutions/ all NBFCs/ All… Read More »

Education Cess and SHE allowed to be utilized for service tax payment

By | October 30, 2015

Education Cess and Secondary and Higher Education Cess paid on inputs or capital goods received in the premises of the provider of output service on or after the 1st day of June, 2015 can be utilized for payment of service tax on any output service [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART… Read More »

FAQ on Options on USD INR Spot Rate

By | October 30, 2015

What are Currency Options? Currency Options are contracts that grant the buyer of the option the right, but not the obligation, to buy or sell underlying currency at a specified exchange rate during a specified period of time. For this right, the buyer pays premium to the seller of the option. What is the need… Read More »

FAQ on 10 Year notional coupon bearing Security Futures of Government of India

By | October 30, 2015

 Q1. What is Interest Rate Futures? A. Interest Rate Futures means a standarised interest rate derivative contract traded on a recognized stock exchange to buy and sell a notional security or any other interest bearing instrument or an index of such instruments or interest rates at a specified future date, at a price determined at… Read More »

FAQ on Equity and Currency Derivatives

By | October 29, 2015

 Q1 What are Derivatives? The term “Derivative” indicates that it has no independent value, i.e. its value is entirely “derived” from the value of the underlying asset. The underlying asset can be securities, commodities, bullion, currency, live stock or anything else. In other words, Derivative means a forward, future, option or any other hybrid contract… Read More »

Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s

By | October 29, 2015

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 19th October, 2015 Insurance Regulatory Development Authority of India (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) Regulations, 2015 F.No.IRDAI/Reg/17/107/2015.—In exercise of the powers conferred by Section 3 read with 114A of the Insurance Act, 1938, and sections 14 read with… Read More »

Acquisition of Surrender and Paid Up Values under Life Insurance Policies

By | October 29, 2015

INSURANCE REGULATORY AND DEVELOPMENT  AUTHORITY OF INDIA NOTIFICATION Hyderabad, the 16th September, 2015 Insurance Regulatory and Development Authority of India (Acquisition of Surrender and Paid Up Values) Regulations, 2015 F. No. IRDAI/Reg/15/105/2015.—In exercise of the powers conferred under Section 114 (A) of the Insurance Act, 1938 read with Section 26 of Insurance Regulatory and Development… Read More »

Target Plus Scheme to reduce benefit to exporter retrospectively Ulta virus : supreme Court

By | October 29, 2015

Notification No. 48/2005 dated February 20, 2006 and Notification No. 8/2006 dated June 12, 2006 amending ‘Target Plus Scheme’ under EXIM Policy/Foreign Trade Policy 2004-2009 to restrict/reduce benefit to exporter retrospectively from 1-4-2005 were ultra vires, as already accrued benefit cannot be taken away by retrospective amendment; therefore, the said notifications were read down to… Read More »

SEBI ISSUED REGULATION FOR DISCLOSURES IN ABRIDGED PROSPECTUS

By | October 29, 2015

THE GAZETTE OF INDIA EXTRAORDINARY PART – III – SECTION 4 PUBLISHED BY AUTHORITY NEW DELHI, OCTOBER 27, 2015 SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 27th of October, 2015 SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) (SEVENTH AMENDMENT) REGULATIONS, 2015 No. SEBI/ LAD-NRO/GN/2015-16/025 ─ In exercise of… Read More »

Taxation of income from off shore Rupee Denominated Bonds

By | October 29, 2015

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes PRESS RELEASE New Delhi, 29 th October, 2015 Subject: Taxation of income from off shore Rupee Denominated Bonds-reg. The Reserve Bank of India has recently permitted Indian corporates to issue rupee denominated bonds outside India. The matter of taxation of income… Read More »

Home Department to take action against erring investigating Officers for prosecuting innocent person: Supreme Court

By | October 29, 2015

Supreme Court of India  State of Gujarat v. Kishanbhai Etc.  [Criminal Appeal No. 1485 of 2008], 7th January, 2014 The Court held that “every acquittal should ordinarily lead to the inference,that an innocent person was wrongfully prosecuted” and it is “therefore, essential that every State should put in place a procedural mechanism, which would ensure… Read More »

DNA Test Report accepted by Supreme Court to determine fatherhood of child

By | October 29, 2015

Supreme Court of India Nandlal Wasudeo Badwaik v. Lata Nandlal Badwaik  & Anr  [Criminal Appeal No.24 of 2014], 6th January, 2014 The Court was confronted with a complex situation in which the DNA test report was in conflict with the presumption of conclusive proof of legitimacy of the child under Section 112 of the Evidence… Read More »

FAQ’s before invetment in public Issues and Rights Issues

By | October 28, 2015

Investment in public Issues/ rights issues  SEBI.Gov.in (a) Where can I get application forms for applying/ bidding for the shares? Application forms for applying/bidding for shares are available with all syndicate members, collection centers, the brokers to the issue and the bankers to the issue. In case you intend to apply through new process introduced… Read More »

How to read Offer Document ?

By | October 28, 2015

Guide to understand an Offer Document This sub section attempts to inform the structure of presentation of the content in an offer document. The basic objective is to help the reader to navigate through the content of an offer document. (a) Cover Page Under this head full contact details of the Issuer Company, lead managers… Read More »

Understanding Book Building

By | October 28, 2015

Understanding Book Building (SEBI FAQ) (a) What is book Building? Book building is a process of price discovery. The issuer discloses a price band or floor price before opening of the issue of the securities offered. On the basis of the demands received at various price levels within the price band specified by the issuer,… Read More »

Applicability of provisions of Section 45 of Insurance Act in various scenarios

By | October 28, 2015

To all the Life Insurers Ref:IRDA/Life/GDL/MISC/186/10/2015      Date:28-10-2015 Applicability of provisions of Section 45 of Insurance Act 1938 in various scenarios After amendment to Section 45 of Insurance Act 1938 , we have been receiving queries from the Life Insurers with regard to the application of new provisions in various scenarios that can arise… Read More »

Point of Sales Person for Soliciting and marketing insurance policies : IRDA Guidlines

By | October 28, 2015

GUIDELINES ON POINT OF SALES PERSON CIRCULAR NO. IRDA/INT/GDL/ORD/183/10/2015, DATED 26-10-2015 The Authority has observed that there are number of persons who are involved in undertaking simple and routine activities pertaining to solicitation and marketing of insurance policies. For e.g. bulk of products in motor insurance, travel insurance, personal accident insurance, etc. require very little… Read More »

e Sahyog pilot project of the Income-tax Department

By | October 28, 2015

Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes PRESS RELEASE New Delhi, 27th October, 2015 Subject:Finance Minister launches the“ e Sahyog ” pilot project of the Income-tax Department. The Income-tax Department is committed to the ‘Digital India’ initiative of the Government of India.The Finance Minister today launched an “ e… Read More »

Extension of last date of filing of AOC 4, AOC 4 XBRL and MGT 7

By | October 28, 2015

General Circular N o.14/2075 F.01/34/2073-CL.V No. Government of India Ministry of Corporate Affairs **** 5th Floor, A wing, Shastri Bhawan Dr. Rajendra Prasad Road, New Delhi Dated: 28th October, 2015 To All Regional Directors, All Registrar of Companies, All stakeholders Subiect: Relaxation of,additional fees and extension of last date of liling of AOC 4,  … Read More »

GOV.IN domain registration guidelines

By | October 28, 2015

F. No.L-13/14/2014-IGD Department of Electronics and Information Technology Internet Governance Division 6, CGO Complex, Electronics Niketan, New Delhi – 110003. Dated: 06-04-2015 Subject: Guidelines for allocation of registration under GOV.IN domain. Ref: Office Order vide No. 7(3)/04-CC&BT dated zo” November, 2004 Background: Department of Electronics and Information Technology (hereby referred to as the “Department”) on zo”… Read More »

Cenvat Credit not allowed if on amount of Service charges recovered from employees

By | October 28, 2015

No cenvat credit should be allowed on amount attributable to service charges which was collected from its employees CESTAT, MUMBAI BENCH Castrol India Ltd. v. Commissioner of Central Excise, Raigad RAMESH NAIR, JUDICIAL MEMBER ORDER NO. A/1529/2015/SMB APPEAL NO. E/86150/2013-MUM. JUNE  15, 2015 Haren M. Gandhi, Manager Indirect Taxes for the Appellant. Ashutosh Nath, Asstt.… Read More »

Section 80 No penalty if no mala fide intension for non payment of service tax

By | October 28, 2015

Facts of the Case :- The appellant entered in royalty agreement with M/s. Shree Arvind Finishers, Ichalkaranji for using the goodwill “Finished by Shri. Arvind processors Pvt. Ltd” for which they were receiving an amount as per the said agreement., The appellant was under bona fide belief that since the VAT has been paid on the… Read More »

Apprentice is a trainee and not an employee : Supreme court

By | October 27, 2015

Supreme Court of India CIVIL APPELLATE JURISDICTION New India Assurance Company Limited v Abhilash Jewellery CIVIL APPEAL NO(s). 7972 OF 2002 [III (2009) CPJ 2 (SC)] Date of Decision: 22.01.2009 Issue :- The complainant/respondent, who had taken a jeweller’s block policy, lodged a claim with the opposite party insurer for loss of gold ornaments. The… Read More »

How Share certificate is to be signed

By | October 27, 2015

 Companies (Share Capital and Debentures) Second Amendment Rules, 2015. – Provision specifying the manner in which share certificate are required to be signed modified vide Notification F. No. 1/31/2013-CL-V-Part – Dated: May 29, 2015 –Kindly provide the new procedure under this section . Yes, Rule 5(3) of the Companies (Share Capital & Debentures) Rules, 2015… Read More »

5 Guidance Notes Withdrawn by ICAI

By | October 27, 2015

The Institute of Chartered Accountants of India has decided to withdraw 5 Guidance Notes on different accounting aspects. The list of the Guidance notes which have been withdraws are as follows:-   1. Guidance Note on Accounting for Depreciation in Companies   2. Guidance Note on Treatment of Reserve Created on Revaluation of Fixed Assets… Read More »

Additional amount Paid to Purchaser on cancellation of Flat is not interest under section 2(28A) hence No TDS

By | October 27, 2015

On cancellation of booking of apartment if excess refund is made to old purchaser after taking advance from new purchaser, such excess payment could not be qualified to be interest as defined under section 2(28A); The amount refunded to the purchasers represents the consideration the purchasers paid towards the undivided shares in the property agreed… Read More »

Relaxation in Proposed place of effective management (POEM)

By | October 27, 2015

Foreign companies with Indian shareholders won’t have to pay taxes here for their worldwide income unless they are managed from India on an everyday basis. If these foreign companies are managed from outside India, whether or not they are promoted by resident Indians, they will have to pay taxes in India only for the income… Read More »