CA Terminal: 01/15/16

Friday 15 January 2016

LIBOR is the best rate to benchmark loan transaction with AE

IT/ILT: Where amount of loan or borrowing were recovered after stipulated credit period, such recovery of dues in international transaction with its associated enterprises was to be benchmarked by applying CUP method of international bank rates

Govt. again hikes excise duty on petrol and diesel by Rs.0.75 and Rs. 2 per litre respectively

EXCISE/NT : Section 5A of the Central Excise Act, 1944 - Amendment in Notification No.12/2012-C.E., dated 1-3-2012

Assessee couldn't suo-moto take credit of duty if it was paid during pending adjudication

Cenvat Credit: Where assessee has paid duty pending adjudication using credit balance, said payment is payment of 'duty' and not mere 'deposit'; therefore, said payment cannot be taken as suo motu credit, same has to be claimed as refund under section 11B

Govt. to issue second tranche of Sovereign gold bonds from Jan 18, 2016

IT : Sovereign Gold Bond Scheme, 2016

RBI notifies new Foreign Exchange Management (Export of Goods and Services) Regulations

FEMA/ILT/INDIAN ACTS & RULES : FEM (Export of Goods & Services) Regulations, 2015

SC admits SLP to decide whether Tribunal has jurisdiction to examine search authorizations

IT: SLP granted against High Court's ruling that Tribunal has power to look into a validity of a search for purpose of determining jurisdiction for making a block assessment

Cost of acquisition of an inherited property would be the cost of acquisition in hands of previous o

IT : Where assessee acquired tenancy rights on death of his father, cost of acquisition of such rights would be deemed to be cost for which assessee's father acquired it and if such cost could not be ascertained, cost of acquisition to assessee's father would be fair market value on date of acquisition

No VAT on offshore supply of gas even if there is a process for sweetening of gas within state: HC

CST & VAT: Central Sales Tax - Where assessee had produced natural gas at Panna-Mukta oil/gas fields and after measuring same at oil fields delivered it to one 'O' for transportation to buyer at Hazira (Gujarat) and thereupon 'O' transported said gas along with others gas through its pipeline, which passed through a processing plant at Hazira, and thereafter buyer took possession of gas as processed in processing plant from transporter 'O', sale of gas by assessee to buyer had taken place at oil

No wealth-tax on urban land if same is occupied by a under constructed building

IT : In terms of clause (ii) of Explanation 1(b) to section 2(ea)(v), benefit of exemption in respect of urban vacant land is available only when building is fully constructed with approval of appropriate authority and not when construction activity has merely started

CBDT notifies forms for accumulation of income by a trust

IT/ILT/INDIAN ACTS & RULES : Income-Tax (First Amendment) Rules, 2016 – Substitution Of Rule 17 & Form 10 And Insertion Of Form 9A

Co-operative society not to be held as co-operative bank if it failed to satisfy basic conditions of

IT: Where assessee, a co-operative society, did not satisfy all three basic conditions mentioned in section 5(ccv) of Banking Regulation Act, to become primary co-operative bank, it could not be held as a co-operative bank under section 80P(4) so as to deny deduction under section 80P

Govt. notifies norms on appointment of Chairperson and members of Investor Education and Protection

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Investor Education And Protection Fund (Appointment Of Chairperson And Members, Holding Of Meetings And Provisions For Offices And Officers) Rules, 2016

Now CBDT would issue refunds up to Rs. 5,000 without adjustment of outstanding tax liability

IT : Section 237 Of The Income-Tax Act, 1961 – Refunds – Issue Of Refunds Up To Rs.5,000/- And Refunds In Cases Where Outstanding Arrear Is Up To Rs.5,000/- In Non-Cass Cases For Assessment Years 2013-14 And 2014-15

Norms relating to formation of authority to administer Investor Education Fund comes into force wef.

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Section 1 Of The Companies Act, 2013 – Act – Enforcement Of – Notified Date On Which Provisions Of Sub-Sections (5), (6) And (7) Of Section 125 Of Said Act Shall Come Into Force

No VAT on offshore supply of natural gas even if some processing made within state: HC

Stamp duty paid to increase authorised capital is capital expenditure

IT : Contracts for derivatives in foreign currency are commodity as defined under section 43(5), underlying assets being foreign currency and, hence, are entitled for exemption from being treated as speculative, provided all other conditions as stipulated under section 43(5) are complied with

ITAT lays down test to decide TDS liability of diagnostic lab on discount given to hospitals

IT : Liability of assessee Diagnostic laboratory to deduct TDS u/s 194H from discounts paid to hospitals/labs in respect of diagnostic testing charges received by it depends (a) as to how the hospitals/laboratories have approached the assessee, i.e. whether on the specific instruction of the patient or on its own. (b) whether the laboratories/hospitals are dedicated to the assessee only or not, i.e., whether they have such kind of business link with the competitors of the assessee or not.

Mobile phone and courier services used for business purposes are eligible for credit

Cenvat Credit : Mobile phone services availed for mobile phones allotted to senior executives for assessee-company work are eligible for input service credit, where connections and bills are in name of assessee-company

No pre-emptive purchase order under sec. 269UD if only leasehold rights of property were transferred

IT : Where 'V' Engineering, holding leasehold right in plot of land, entered into development agreement with assessee a developer, said transfer of rights in land did not amount to any sale, exchange or lease of such land under provisions of Chapter XXC, because 'V' Engineering itself was only a lessee and, therefore, pre-emptive purchase order passed under section 269UD in respect of land in question was to be set aside

RBI unveils structure for credit information reporting in respect of Self Help Group members

BANKING : Credit Information Reporting In Respect Of Self Help Group (SHG) Members

Remand order passed in context of rebate of excise duty on exported goods is beyond CESTAT's jurisdi

Excise & Customs: Remand order in context of rebate of excise duty on exported goods will be beyond jurisdiction of Tribunal to entertain appeal

Co. rendering agency services to its foreign Head Office had to allocate exp. on basis of GP ratio i

IT/ILT : In case of assessee, rendering agency and distribution services to its Head Office located abroad, allocation of expenses had to be done on basis of ratio of gross profit and not in proportion of turnover

Now banks can offer all products and services through ATMs

BANKING : Relaxations In Branch Authorisation Policy – Off Site ATMs

RBI permits Banks to offer all products and services through ATMs