Daily Archives: October 9, 2015

RBI allows use of Nostro a/c of commercial banks of Asian Clearing Union members for settling trade payments

By | October 9, 2015

RBI/2015-16/203 October 08, 2015 A. P. (DIR Series) Circular No. 21 To All Authorised Dealer Category-I banks Madam / Sir, Memorandum of Procedure for channeling transactions through Asian Clearing Union (ACU) Attention of Authorised Dealer Category-I banks is invited to the Memorandum containing detailed procedural instructions for channeling transactions through the Asian Clearing Union (ACU) (Memorandum… Read More »

RBI allows booking of forward contracts upto USD 1,000,000 by residents on simple declaration basis

By | October 9, 2015

Booking of Forward Contracts – Liberalisation As announced in the Fourth Bi-monthly Monetary Policy Statement (para. no. 39) on September 29, 2015, with a view to further liberalising the existing hedging facilities, it has been decided to allow all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures, to book foreign… Read More »

J&K HC rules: SARFAESI can not be enforced

By | October 9, 2015

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 cannot be enforced in the State of J&K • The provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI ) can be availed of by the banks, which originate from the State of… Read More »

Mandatory electronic filing for appeals and revisions under Chhattisgarh VAT

By | October 9, 2015

Appeals and revisions under Chhattisgarh VAT now can be filed electronically as per following Amendment :- CHHATISGARH VALUE ADDED TAX RULES, 2006 – AMENDMENT IN RULES 57 AND 63 NOTIFICATION NO.F-10-33/2015/CT/V(59), DATED 22-8-2015 In exercise of the powers conferred by section 71 of the Crihattisgarh Value Added Tax Act, 2005 (No. 2 of 2005), the… Read More »

Trace a tax defaulter and get reward from CBDT

By | October 9, 2015

The CBDT has unveiled new guidelines for tracing tax defaulters. New guidelines have been notified for granting reward to the informants providing credible information of whereabouts or assets of tax defaulters. Credible information means information which ultimately results in recovery of taxes, penalties, interest or other amount from the defaulter.   When guidelines will be… Read More »

Companies having related party transactions above 15% of turnover could not be chosen as comparables

By | October 9, 2015

Whether in case of assessee, rendering software development services to its AE, companies developing their own software products could not be accepted as comparables while determining ALP  Held, yes Whether where turnover of assessee-company was Rs. 20.88 crores, companies having turnover in excess of Rs. 200 crores could not be accepted as comparables Held, yes… Read More »

Application under section 10(23C) can not be rejected on failure to file Audit Report

By | October 9, 2015

Furnishing of Audit Report in Form No. 10BB may be necessary for seeking approval under section 10(23C); however, mere failure to file Audit Report along with application under section 10(23C) would not result in rejection if the assessee furnishes the said report subsequently, prior to the rejection of the application Further, for purposes of granting… Read More »

Bombay HC rules in favour of Vodafone, quashes transfer pricing demand of 3700 crores

By | October 9, 2015

The disputed issue in the instant case of ‘Vodafone’ related to tax implication on the sale of its call centre business to Hutchison’s India entity and assignment of call option to Vodafone International BV in 2007-08. The Tribunal in case ofVodafone India Services (P.) Ltd. v. ACIT [2014] 52 taxmann.com 241 (Mumbai – Trib.) had… Read More »

e facility to view Outstanding Tax Demand computation sheet for demand raised by AO

By | October 9, 2015

Income tax Department enables e facility to view Income tax and computation sheet for demand raised by Assessing Officer  Earlier when a taxpayer submitted an objection to an Outstanding Tax Demand appearing in his case in “My Account”on e-filing portal of Income-tax Department, he was not able to view anything further except his own objection.… Read More »

No section 14A disallowance when assessee had not shown any exempt income

By | October 9, 2015

Where assessee had not shown any income under head ‘exempt income’ for which it claimed expenditure, disallowance under section 14A was not justified IN THE ITAT MUMBAI BENCH ‘E’ SM Energy Teknik and Electronics Ltd. v. Deputy Commissioner of Income-tax JOGINDER SINGH, JUDICIAL MEMBER AND RAJENDRA, ACCOUNTANT MEMBER IT APPEAL NOS. 1859 & 1495 (MUM.)… Read More »

Subscription fee of golf club paid by Company for director and his family was not allowable expense

By | October 9, 2015

During year, assessee company paid subscription fee for membership of director and his family members to a golf club and claimed deduction of same as revenue expenditure . Assessing Officer treated expenditure as personal expenditure of director and disallowed same Held :- subscription fee paid on behalf of director could not be allowed as expenditure… Read More »

Regrouping of figures in audited balance sheet not permissible after its submission to Income tax Department

By | October 9, 2015

It is inconceivable that after an audited balance sheet of a company for a financial year is signed by its Directors and statutory Auditors, and submitted to the statutory authorities, including Registrar of Companies (RoC) and income tax authorities, figures in such balance sheet for closing stock of shares can simply be altered subsequently by… Read More »