Monthly Archives: October 2015

PRUDENTIAL NORMS ON CHANGE IN OWNERSHIP OF BORROWING ENTITIES

By | October 10, 2015
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PRUDENTIAL NORMS ON CHANGE IN OWNERSHIP OF BORROWING ENTITIES (OUTSIDE STRATEGIC DEBT RESTRUCTURING SCHEME) CIRCULAR DBR.BP.BC.NO.41/21.04.048/2015-16, DATED 24-9-2015 Please refer to our circular DBR.BP.BC.No.101/21.04.132/2014-15 dated June 8, 2015 on “Strategic Debt Restructuring Scheme (SDR)”, in terms of which certain exemptions from extant asset classification norms of the Reserve Bank of India were provided to banks… Read More »

Category: RBI

Works contract tax deducted by clients is an allowable business expenses

By | October 10, 2015
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Whether amount of works contract tax, deducted by various clients of assessee company while making payments to it, was an allowable business expenditure under section 37(1) even though assessee was not able to claim refund of it from respective State Sales Tax Departments ? Held Yes IN THE ITAT BANGALORE BENCH ‘A’ Tellabs India (P.)… Read More »

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

By | October 9, 2015
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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
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Clubbing of Income

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
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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
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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
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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
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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
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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
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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 »