IT : Clause (va) of section 28 of the Act taxes a sum received for a restrictive covenant in relation to a business, but not a profession. Compensation attributable to a negative/restrictive covenant is a capital receipt and as the same does not fall within the ambit of section 28(va), it is not taxable
Tuesday 24 November 2015
Co. engaged in clinical research isn't comparable with a software development service provider
IT/ILT : In case of assessee-company engaged in rendering software development services to its AE, companies having functional dissimilarities or having related party transactions in excess of 15 per cent of revenue, could not be accepted as comparables while determining ALP
Due date for filing of Form DP-1 under DVAT further extended to Dec 31, 2015
VAT : Online Submission of Information in Form DP-1 – Extension of Date Thereof
Supply of ID smart cards to transport dept. couldn't be treated as sale; not liable to Karnataka VAT
CST & VAT: Karnataka VAT - Where assessee in terms of an agreement entered with a transport department prepared ID smart cards as desired by it and supplied them to it after lamination, since smart cards were not commodities saleable in open market, supply of smart cards to transport department could not be held as sale
HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's
IT: HC sets aside block assessment as seized material was destroyed in fire that took place at revenue's office
Battery and its parts to be deemed as parts of motor vehicle for levying Rajasthan VAT: HC
CST & VAT : Rajasthan VAT- Battery and its parts which were primarily used for installation/fitting in a motor-vehicle would be deemed as parts of motor vehicle for levying VAT
Tribunal doesn't have powers to stay prosecution proceedings
IT : Section 254 does not confer power upon Tribunal to stay consideration of a notice calling upon assessee to show cause why prosecution be not launched against it under section 276C
Forex gain or loss not excludible from operating revenue while computing operating margin for TP stu
IT/ILT : A software product company cannot be compared to software development service provider
Madras HC dismissed appeal without going into its merits due to low tax-effect
IT: Where tax effect in appeal filed by revenue before High Court was less than Rs. 4 lakhs and revenue's case did not fall within exceptions specified inInstruction No. 1979, dated 27-3-2000, impugned appeal was not maintainable
Time-limit to file refund claim to be counted from date of realization of export proceeds and not fr
Cenvat Credit: In case of service exporter, time-limit of 1 year for filing refund claim of cenvat credit will be computed from date of realization of export proceeds
Rupee Recovers From Two-Month Low, Rises 13 Paises Against Us Dollar
The rupee recovered from over two-month low by rising 13 paise to 66.34 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.
Forex dealers said besides selling of the American unit by exporters and banks, weakness in the dollar against some currencies overseas also supported the rupee.
They said, however, a lower opening in the domestic equity market capped the rupee’s gain.
Yesterday, the rupee had lost 28 paise to close at more than 2-month low of 66.47 against the US dollar on fresh month-end demand for the American currency from importers and
banks amidst volatile equity markets.
Meanwhile, the benchmark BSE Sensex fell by 115.48 points or 0.44 per cent to 25,703.86 in early trade.
Source:- newsworldindia.in
Holding period of capital asset shall not include period for which it was held as stock in trade
IT : Where stock in trade is converted into capital asset, the holding period for the purposes of classifying it as long-term or short-term capital asset shall be reckoned excluding the period for which it was held as stock-in-trade prior to conversion
Assessee eligible to get refund of advance FBT when it got status of trust with retro-effect
IT: Where assessee, for assessment year 2006-07, paid fringe benefit tax in advance and subsequently it was granted registration under section 12AA with retrospective effect from 1-4-2005 and thereupon it moved an application on 31-8-2007 for refund of aforesaid amount of fringe benefit tax, Assessing Officer was to be directed to process application of assessee in accordance with law
Govt. reviews FDI policy on various sectors; defines term 'manufacture'
FDI/FEMA/ILT : Review Of Foreign Direct Investment (FDI) Policy On Various Sectors – Amendments In Consolidated FDI Policy Circular Of 2015 Effective From 12-5-2015
Directorate of income-tax, HRD seeks info of domestic consultants engaged by Ministries for more tha
IT : Information Of Domestic Consultants Engaged By Ministries/Departments For More Than Six Months
IRDA asks insurers to disclose investment return details in advertisements of life insurance product
INSURANCE : Benefit Illustration(S) in Advertisements of Life Insurance Products
Mumbai ITAT denies to treat news distributor of 'Reuters' as its PE in India
IT/ILT : Where assessee, a UK based company, engaged in business of providing news and financial information world-wide, entered into distribution agreement with RIPL in India, since RIPL was not habitually exercising its authority to negotiate and to conclude contracts on behalf of assessee, it could be concluded that assessee did not have PE in India and, consequently, distribution fee received by it could not be brought to tax in India
Arrangement fees paid to foreign banks to finance international acquisition is liable to service-tax
Service Tax : Arrangement/Agency fees paid to foreign banks/Mandated Lead Managers for providing finance (and/or coordinating in providing finance) for international acquisitions is liable to service tax under reverse charge in hands of Indian borrower under 'Banking and Other Financial Services'
Disclosure obligation in takeover code is on promoter’s group and not on every promoter in that grou
SEBI : The obligation to make yearly disclosure under regulation 8(2) and regulation 30(2) of the Takeover Regulations framed by SEBI in the year 1997 & 2011 respectively is on the promoter/ promoter group. If the promoters of a listed company are individual promoters then the obligation is on the individual promoters and in case there is a 'promoter group' then the promoter group is required to make yearly disclosure.
Advertising agency is liable to pay service tax on commission received on newspapers
Service Tax : Even if sale of advertisement space in print media is not liable to service tax, commission received by advertising agency from newspapers is liable to service tax under advertising agency's services
Virginia Firm Signs Deal For Export Of Apples To India
With Virginia looking to boost its trade with India, a firm from the US state has signed a deal for the export of apples to the country.
"I am pleased to announce this new sale of Crown's 2015 apple crop into the highly competitive Indian produce market," Virginia Governor Terry McAuliffe said in a statement.
"After opening the Indian apple market for Virginia producers last year, it was important that we continue that momentum and push hard to expand those sales," he said adding that export deals like this one will play a vital role in generating additional revenue and jobs for the State.
A MoU on the export of apples was signed between officials of Crown Orchard Company and IG International in Mumbai in the presence of McAuliffe.
"We have focused on India as an important strategic market for Virginia agricultural and forestry products since launching the export growth initiative in 2011," said Todd Haymore, Secretary of Agriculture and Forestry.
"Virginia has emerged as the second largest apple exporting state to India, and we are working continuously to drive more sales and make new introductions between our producers and Indian apple importers," he said.
In 2014, Virginia exported about apples worth $1.6 million to India, up from zero in late 2011, when Virginia opened its representative trade office.
As of September of this year, Virginia has exported apples worth $1.2 million in to India.
Exports to India in 2014 represented more than half of the state's total apple exports worldwide, while the year-to-date sales as of September to India account for more than 60 per cent of this year's total apple exports.
"Virginia apples are already earning a solid reputation amongst Indian produce buyers for their high quality, sweet flavour and overall value," said Tarun Arora, CEO of IG International.
"Apples are in high demand in India, and I am pleased to have found a great new source for quality apples in Virginia and the Crown Orchard Company," he said.
Source:- economictimes.indiatimes.com
Imports To Push The Price Of Rubber Further Down
The gap between production and consumption of natural rubber in the country is likely to touch 5 lakh tonnes this fiscal given the pace at which the production has been dropping with plummeting prices.
The current level of prices at Rs 108.50 a kg is at a seven-year low and is expected to push down the production of the commodity further. Already, the production is down by 15% over last year. The total natural rubber production had dropped 15% to 6.55 lakh tonnes in 2014-15.
The various stakeholders in the rubber sector predict the production to reach around 5.50 lakh tonnes this year, with some forecasting further drop. At the same time, the consumption is expected to go over 1 million tonnes.
"Our production is now grossly insufficient to meet the consumption and irrespective of whether prices are low or high, we will have to import. The centre should come out with measures to protect the interest of consumers to the extent of rubber imported to bridge the gap," said Rajiv Budhraja, director general of Automotive Tyre Manufacturers' Association (Atma).
The natural rubber imports reached an all-time-high of 414,606 tonnes last year. With the increase of the import duty by 5% to 25%, there has been a fall in imports till October this year by 11%. But considering that the international prices of rubber are Rs 27 to Rs 30 below the Indian price, the imports are set to rise in the coming months.
"Those who are tapping rubber now are getting a poor yield as there has been no proper maintenance of the rubber trees with price fall. Gradually, from selfsufficiency we are turning into a rubber import dependent country," pointed out a major rubber dealer Biju John.
The market intervention measures by the government to provide succour to the growers through a subsidy have not yielded much dividends. As Kerala accounts for about 90% of the rubber grown in the country, the state government is implementing a Rs 300-crore package to small growers so as to pay them a fixed price of Rs 150 per kg with the difference between the current price and fixed price as subsidy.
Source:- economictimes.indiatimes.com
Mizoram Bans Sale & Import Of Particular Turmeric Powder
Mizoram Health and Family Welfare department has banned the sale and import of reddish turmeric powder from neighbouring Myanmar after the State Public Health Laboratory found the powder "unsafe".
State Commissioner of Food Safety Dr K.
Ropari recently issued a notification banning the turmeric powder, locally called 'Aisen'.
The notification said the 'Aisen' sample was sent to the State Public Health Laboratory in Guwahati where it was found that the turmeric powder is unsafe.
The colour used in manufacture of the 'Aisen' was in violation of the Food Safety and Standards Act, 2006 and Rules and Regulations, 2011, the notification said, adding that it was found to be sub-standard.
While turmeric powder is generally called 'Aieng' in the local dialect, this particular product is called 'Aisen' due to reddish hues and widely used in hotels, restaurants and also at homes.
It is also used for making pickles.
Source:- niticentral.com
A software developer can't be compared with a software development service
IT/ILT: Where companies having revenues from software sales or software products development or being engaged in research or providing KPO services or product designing/engineering services, could not be compared to assessee providing software development services; further company in which extraordinary events took place could not be comparable
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