Re: UPDATES FROM TAX GURU (in this message: 18 new items)

On Wed, Dec 16, 2009 at 9:31 AM, LEGAL & FINANCIAL UPDATES FROM TAX GURU <info@taxguru.in> wrote:

UPDATES FROM TAX GURU (in this message: 18 new items)

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• Replacement of Parts, Machines etc., in a production System – Tax Implications
• Expenditure related to exempt income to be disallowed even if assessee has not earned any tax-free income
• Gains on sale of shares allotted under cashless ESOP plan not taxable as capital gains
• Tax paid by employer on behalf of employee is a non-monetary perquisite subject to single grossing up
• Penalty should not be imposed if full disclosure of the facts of the case made by the Assessee
• Payment made to foreign company for outright purchase of plant and know-how cannot be considered as 'Royalty'
• Tenant given the power to select own builder in case of redevelopment
• Sales Tax Has Precedence Over Bank Mortgage
• Confirmation of particulars for compilation of firms data as on 1st January, 2010 and Information for Firm Constitution Certificate
• ICAI president awarded with the honorary membership of the Certified Practising Accountant of Australia
• e-704 frequently asked questions
• MAT will be eased for infrastructure companies in new DTC
• Indian company giving bank guarantee on loan taken by its subsidiary abroad will have to pay tax
• Government rewritten corporate governance rules and tighten norms for CAs
• GST unlikely to be introduced on April 1, 2010 as Constitutional amendment may take another five months
• Date for Completion of CPE Hours for the Calendar year 2009 extended
• ICWAI decided to increase cost accounting standards significantly within the next one year
• Even capital profits have to be added to "book profits" for s. 115JB

Replacement of Parts, Machines etc., in a production System – Tax Implications Posted: 15 Dec 2009 07:24 PM PST It is quite common for the Revenue to treat such expenditure as capital in nature and administer depreciation allowance, only. An assessee would always put forth his argument that such replacement cost is only to maintain the existing level of... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Expenditure related to exempt income to be disallowed even if assessee has not earned any tax-free income Posted: 15 Dec 2009 07:04 PM PST Special Bench of the Income Tax Appellate Tribunal, New Delhi in the case of Cheminvest Ltd. (ITA Nos.87Del//2008, 4788/Del/2007 and 233/Ahd/ 2006) holds that expenditure relating to exempt income to be disallowed even if assessee has not earned... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Gains on sale of shares allotted under cashless ESOP plan not taxable as capital gains Posted: 15 Dec 2009 06:46 PM PST The Income-Tax Appellate Tribunal, Mumbai in the case of Mr. Bomi S. Billimoria vs. A.C Cir 23(1), Mumbai (ITA No.2120/Mum/1998) held that in case no payment has been made for acquiring shares under Employee Stock Option Plan, the gain on sale of... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Tax paid by employer on behalf of employee is a non-monetary perquisite subject to single grossing up Posted: 15 Dec 2009 06:07 PM PST The Income-tax Appellate Tribunal, Delhi in the case of Triton Holdings Ltd. vs Dy. Director of Income Tax, Deharadun (ITA Nos. 2541 to 2559/Del/2009) held that the tax paid by employer on the behalf of employees should be considered as a... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Penalty should not be imposed if full disclosure of the facts of the case made by the Assessee Posted: 15 Dec 2009 05:56 PM PST The Delhi Bench of the Income - tax Appellate Tribunal (Delhi Tribunal), in the case of Vertex Customer Services (India) Pvt. Ltd. (the taxpayer) held that exclusion of provision of doubtful debts from the operating expenses being a debatable issue... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Payment made to foreign company for outright purchase of plant and know-how cannot be considered as 'Royalty' Posted: 15 Dec 2009 05:33 PM PST Recently, the Himachal Pradesh High Court in the case of CIT v. Maggronic Devices Pvt. Ltd. [2009-TIOL-568-HC-HP-IT] held that payment made by the taxpayer to a Singapore company for outright purchase of plant and product knowhow cannot be... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Tenant given the power to select own builder in case of redevelopment Posted: 15 Dec 2009 09:37 AM PST An amendment in the Development Control Regulation 33 (9) pertaining to cluster redevelopment has given tenants of old, cessed buildings in the island city the right to select their own builder. However, the ultimate power to sanction such schemes... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Sales Tax Has Precedence Over Bank Mortgage Posted: 15 Dec 2009 09:27 AM PST Despite valiant attempt on the part of learned counsel for the appellant to convince us that in view of some observations in Dena Bank Vs. Bhikhabhai Prabhudas Parekh & Co. & Ors., 2000(5) SCC 694, the issue raised in the present appeal... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Confirmation of particulars for compilation of firms data as on 1st January, 2010 and Information for Firm Constitution Certificate Posted: 15 Dec 2009 09:15 AM PST The Institute compiles data of firms as on 1st January every year based on the particulars as provided by the firms duly confirmed/updated/modified. The exercise for compilation of the data of the firms as on 1st January, 2010 is being... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

ICAI president awarded with the honorary membership of the Certified Practising Accountant of Australia Posted: 15 Dec 2009 09:08 AM PST CA. Uttam Prakash Agarwal, President, the Institute of Chartered Accountants of India (ICAI), has been awarded with the honorary membership of the Certified Practising Accountant of Australia by Prof. Richard Petty, President, CPA Australia Ltd. CPA... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

e-704 frequently asked questions Posted: 15 Dec 2009 09:06 AM PST What is Audit Report in Form 704? Ans : It is a report under section 61 of MVAT ACT, 2002 to be submitted by eligible dealer within 10 months of the end of a particular financial year. Related posts:Frequently Asked Questions and Answers on Goods... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

MAT will be eased for infrastructure companies in new DTC Posted: 15 Dec 2009 08:35 AM PST The government is likely to ease the incidence of minimum alternate tax, or MAT, on infrastructure companies. The department of revenue plans to change the proposed direct tax code to exempt these companies from MAT for the first few years since... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Indian company giving bank guarantee on loan taken by its subsidiary abroad will have to pay tax Posted: 15 Dec 2009 08:30 AM PST An Indian company that provides a bank guarantee (BG) against a loan taken by a subsidiary abroad will now have to pay tax here for standing guarantee for its associate, irrespective of whether or not it has received a commission from the latter for... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Government rewritten corporate governance rules and tighten norms for CAs Posted: 15 Dec 2009 08:26 AM PST The mammoth fraud at IT major Satyam, involving over Rs 14,000 crore as per CBI, proved to be the most brazen swindling act, forcing the government to re-write corporate governance rules during 2009 and tighten the norms for chartered accountants.... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

GST unlikely to be introduced on April 1, 2010 as Constitutional amendment may take another five months Posted: 15 Dec 2009 08:22 AM PST In spite of the optimism shown by Asim Dasgupta, chairman of the empowered committee of state finance ministers, the much-anticipated goods and services tax (GST) is unlikely to be introduced on April 1, 2010. The process of Constitutional amendment... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Date for Completion of CPE Hours for the Calendar year 2009 extended Posted: 15 Dec 2009 08:17 AM PST Announcement regarding extension of date for completion of the mandated CPE hours requirements for the calendar year 2009 in respect of structured learning, for members holding certificate of practice: Related posts:ICAI extended due date for... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

ICWAI decided to increase cost accounting standards significantly within the next one year Posted: 15 Dec 2009 08:15 AM PST Issue of Cost Accounting Standards (CAS) is a pioneering initiative by the Institute of Cost and Works Accountants of India. The first CAS (CAS-1) was issued by the institute in the year 2002. The Preface to CostAccounting Standards issued by the... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Even capital profits have to be added to "book profits" for s. 115JB Posted: 15 Dec 2009 08:07 AM PST The assessee earned a capital profit of Rs. 10.38 crores on sale of rights to immovable property. The said profit was directly credited to the capital reserves in the balance sheet instead of being routed through the Profit & loss account. The... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

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