Wednesday, 4 November 2015

SEBI releases format for quarterly holding pattern of Indian Depository Receipts

SEBI : Format for Quarterly Holding Pattern, Disclosure Norms for Corporate Governance Report and Manner for Compliance with Two-Way Fungibility of Indian Depository Receipts (IDRS)

SEBI prescribes format of Business Responsibility Report under new listing norms

SEBI : Format for Business Responsibility Report (BRR)

Sum paid to foreign AE for secondment of high level managers is taxable as 'FTS'

IT/ILT : Where secondees under secondment agreement with foreign parent co are not ordinary employees but those in high level managerial/executive positions and draw salaries from foreign parent co, the amount paid to foreign parent under secondment agreement is FTS under Expalnation 2 to sec 9(1)(vii) in view of the fact that secondees were deputed because of their expertise and managerial skills in the field. Further, FTS or royalty paid to non-resident attracts tax u/s 44D on gross amount irr

Unclaimed auction proceeds retained by warehouse can't treated as warehousing charges

Service Tax : Unclaimed auction proceeds, retained by a warehouse from out of sale proceeds of auctioned goods, cannot be taxed under Storage & Warehousing services

Order passed against shipping Co. under sec. 172 is covered by Scheme of DRP provisions

IT/ILT : An order computing the taxable income is essentially an assessment order, therefore, any order passed under section 172(4) is also an assessment order. Since Assessing Officer failed to pass draft assessment order under section 172(4) as required under the DRP provisions contained under section 144C, Assessing Officers's order was null and void. Order under section 172(4) is an 'assessment order' so as to make DRP provisions under section 144C applicable.

Imported Catalyst can't be treated as raw material to deny benefit of concessional duty

Excise & Customs : Catalyst, which is not consumed in manufacture, cannot be regarded as 'raw material'; hence, concessional duty conditional upon use of 'domestic raw materials' cannot be denied merely because of use of imported catalyst

RBI issues operational guidelines for Sovereign Gold Bonds Scheme

IT/BANKING : Sovereign Gold Bonds, 2015-16 – Operational Guidelines

Accused convicted for cheque bouncing as he failed to rebut belief that cheque was issued for legall

Negotiable Instruments Act: Accused convicted for cheque bouncing as he failed to rebut belief that cheque was issued for legally enforceable debt

Payment made for taking legal advice for purchase of business division is a capital exp.

IT : Where assessee purchased business division of another concern which also included payment to non-compete fee restraining seller from carrying on similar business for three years, said payment was to be regarded as capital expenditure

Case remanded to larger bench to decide applicability of sec. 172 on demurrage charges paid to shipp

IT: In view of difference of opinion between orders passed by co-ordinate Benches of Tribunal regarding applicability of section 172 in respect of demurrage paid to non-resident shipping company, matter was to be referred to Larger Bench for consideration

Imported Catalyst can't be treated as raw material for availing benefit of concessional duty

Excise & Customs : Catalyst, which is not consumed in manufacture, cannot be regarded as 'raw material'; hence, concessional duty conditional upon use of 'domestic raw materials' cannot be denied merely because of use of imported catalyst

SEBI prescribes format of voting results of AGM under listing norms

SEBI : Format for Voting Results

IRDA advises insurers to timely comply with awards passed by Consumer Courts and insurance ombudsman

INSURANCE : Non-Compliance Of Award Of Insurance Ombudsman Or Order Of Mact Or Consumer Fora

No VAT on brand franchisee fee without transfer of effective control over Kingfisher brand

Karnataka VAT: Owner of 'Kingfisher Brand' entered into contracts with Contract Bottling Units (BUs) for manufacturing of beer. It had transferred know-how for manufacturing beer. BUs had the right to use the brand name only on behalf of assessee and they did not acquire any right over such brand name belonging to the assessee. Thus, sum received from BUs as brand franchise fees could not be treated as royalty and was not liable to sales tax

Capital gains couldn't be treated as business profits due to insertion sec. 111A providing for reduc

IT : Where assessee's claim of short term capital gain arising from sale of shares had been accepted in earlier years, mere fact that during relevant period certain benefits were given to investor in securities by insertion of provisions of section 111A, could not be a ground to treat assessee a trader in shares and thereby bring amount in question to tax as business income

Value of flats allotted under JDA to be computed on basis of construction cost and not on basis of t

IT: Value of flats allotted under JDA to be computed on basis of construction cost and not on basis of total project cost

Govt. issues common form for registering under ESIC, EPFO and other Labour Laws

CORPORATE LAWS : Unified Registration For 5 Labour Acts (ESIC, EPFO, BOCW, CLA & ISMW)

Commission earned by agents on sale of SIM cards/vouchers aren't liable to service-tax

Service Tax : Commission earned by authorised agents of BSNL on sale of SIM cards/vouchers of BSNL is not chargeable to service tax

PM to launch four Gold related schemes on November 5, 2015

IT : Prime Minister To Launch Gold Related Schemes On 5-11-2015

SSI can simultaneously avail exemption for unbranded clearances and pay duty on branded clearances

Central Excise : Clearances made with other's brand : (i) are governed by normal provisions of Act, (ii) are liable to duty with benefit of Cenvat credit; and (iii) are outside scope of SSI-exemption notification; and, therefore, mere taking of Cenvat Credit thereon cannot lead to denial of SSI-exemption on unbranded clearances

SSI can simultaneously avail exemption for unbranded clearances and pay duty on branded clearances w

Central Excise : Clearances made with other's brand : (i) are governed by normal provisions of Act, (ii) are liable to duty with benefit of Cenvat credit; and (iii) are outside scope of SSI-exemption notification; and, therefore, mere taking of Cenvat Credit thereon cannot lead to denial of SSI-exemption on unbranded clearances

No disallowance of interest if assessee had given interest free advances to AE out of its own funds

IT: Where no loan from any bank had been raised by assessee for advancing loans to its sister concerns as funds so advanced were generated from assessee's own revenues, interest could not be disallowed under section 36(1)(iii)

Mere supervising of movement of Coal from collieries to factory can't be held as C&F services

Service Tax : Merely supervising loading/handling of coal and movement from collieries to client's factories, without any role in clearance of coal from collieries, cannot amount to 'Clearing and Forwarding Services'; hence, not liable to service tax