Fwd: TaxGuru : “Whether, merely because Mumbai office is also involved in the business, the Hyderabad Unit cannot claim Sec 80IB benefits for manufacture of jewellery through various karigars spread across various locations?” plus 35 more

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From: TaxGuru.in - Daily Tax and Corporate Law Update <info@taxguru.in>
Date: Thu, Jul 14, 2011 at 10:12 AM
Subject: TaxGuru : "Whether, merely because Mumbai office is also involved in the business, the Hyderabad Unit cannot claim Sec 80IB benefits for manufacture of jewellery through various karigars spread across various locations?" plus 35 more
To: palashbiswaskl@gmail.com

TaxGuru : "Whether, merely because Mumbai office is also involved in the business, the Hyderabad Unit cannot claim Sec 80IB benefits for manufacture of jewellery through various karigars spread across various locations?" plus 35 more

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• Whether, merely because Mumbai office is also involved in the business, the Hyderabad Unit cannot claim Sec 80IB benefits for manufacture of jewellery through various karigars spread across various locations?
• If a business liability is definite, the deduction should be allowed, although the liability may be quantified and discharged at a future date
• No addition can be made under s 28(iv) in the absence of any business or profession relationships.
• Commission received by a foreign company for assistance in arranging cargo transportation taxable in India on account of 'business connection'
• Transfer pricing – Operating profit of different STP units rendering identical services to related parties should not be considered on a stand-alone basis for computing ALP
• Invocation of s 263 unjustified where Commissioner intended to substitute his own view in place of that of the Assessing Officer without pointing out as to how the action of the Assessing Officer is erroneous in law or on facts
• Transfer Pricing – As other income of the assessee is excluded from the net profit, the other income of comparable companies should also be excluded from their net profit and the full data of the comparables should also be provided to the assessee
• Expression 'contractor' does not include within its fold a subcontractor carrying out any work in pursuance of a subcontract with a sub subcontractor in AY 2006–2007
• Service tax is leviable on Flying Training School & Aircraft Maintenance Engineering Institutes
• CBDT allows Mahindra Satyam to file revised returns
• Terms of Reference of The Task Force on Direct Transfer of Subsidies Extended
• CBI arrests an Inspector of Central Excise in a bribery case
• Salman Khursheed Assumes Charge as Law & Justice Minister
• Result of CA final and CPT are likely to be declared on Tuesday,the 19th July, 2011
• ICAI Conclave with Trade Officials of Foreign Missions/Embassies
• Result of the ISA Assessment Test held on 18th June, 2011 is likely to be declared tentatively on 19th July, 2011
• Moily Says Corporate governance, new companies act top priorities
• Modification of SIONs A-2913 and A-263 under Chemical & Allied Products Group
• Think twice before choosing Lump sum payment of tax in Works contracts under PVAT Act
• RBI's Master Circular dated 1-7-2011 on Non-Banking Financial Companies Auditor's Report (Reserve Bank) Directions, 2008
• RBI's Master Circular dated 1-7-2011 on Allied activities – entry into insurance business, issue of credit card and marketing and distribution of certain products
• RBI's Master Circular dated 1-7-2011 on Guidelines for Issue of Commercial Paper
• RBI's Master Circular dated 1-7-2011 on Future approach towards monitoring of frauds in NBFCs
• RBI's Master Circular dated 1-7-2011 on Guidelines for Issue of Certificates of Deposit
• RBI's Master Circular dated 1-7-2011 on Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007
• RBI's Master Circular dated 1-7-2011 on Returns to be submitted by NBFCs
• RBI'S Master Circular dated 1-7-2011 on Regulatory Framework for Core Investment Companies (CICs)
• RBI's Master Circular dated 1-7-2011 on Mortgage Guarantee Company (Reserve Bank) Guidelines, 2008
• RBI's Master Circular dated 1-7-2011 on Miscellaneous Instructions to All Non-Banking Financial Companies
• RBI's Master Circular dated 1-7-2011 on Nomination facility in Relief / Savings Bonds
• RBI's Master Circular dated 1-7-2011 on Appointment & delisting of Brokers and Payment of Brokerage on Relief/Savings Bonds
• RBI – Lending to Priority Sector –Reporting Data on Priority Sector Advances
• SARFAESI : RBI's Master Circular dated 1-7-2011 on Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003
• Retail Electronic Payment Systems –NEFT / NECS / RECS / ECS – Levy of Processing Charges- Collection & Settlement of Inter-bank Charges
• Insurance – Servicing of Health Insurance Schemes offered by Bodies other than Insurance Companies – Draft Circular
• Insurance – Submission of Business Information related to Policies, premium, claims and Offices of General Insurance Companies

Whether, merely because Mumbai office is also involved in the business, the Hyderabad Unit cannot claim Sec 80IB benefits for manufacture of jewellery through various karigars spread across various locations? Posted: 13 Jul 2011 09:16 PM PDT Addl. CIT v Tribhovandas Bhimji Zaveri (ITAT Mumbai)- Whether, merely because Mumbai office is also involved in the business, the Hyderabad Unit cannot claim Sec 80IB benefits for manufacture of jewellery through various karigars spread across... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

If a business liability is definite, the deduction should be allowed, although the liability may be quantified and discharged at a future date Posted: 13 Jul 2011 09:08 PM PDT CIT v Alembic Glass Industries Limited (High Court of Gujarat) - The law is settled - if a business liability has definitely arisen in the accounting year, the deduction should be allowed although the liability may have to be quantified and... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

No addition can be made under s 28(iv) in the absence of any business or profession relationships. Posted: 13 Jul 2011 09:02 PM PDT DCIT, Mumbai Vs M/s Kaizen Commercial Pvt Ltd (ITAT Mumbai) Whether merely because a telecom Company has got licence and has bright future, it can be presumed that contemporaneous value of share, irrespective of it's negative net worth on the day... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Commission received by a foreign company for assistance in arranging cargo transportation taxable in India on account of 'business connection' Posted: 13 Jul 2011 08:56 PM PDT ADIT v ACM Shipping India Ltd. (ITAT Mumbai) - The taxpayer was wholly or almost wholly securing orders only for ACM UK. The freight invoice issued by the carriers show that the commission was paid by the Indian exporter to the taxpayer directly on... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Transfer pricing – Operating profit of different STP units rendering identical services to related parties should not be considered on a stand-alone basis for computing ALP Posted: 13 Jul 2011 08:50 PM PDT ACIT v Birla Soft Ltd. (ITAT, Delhi) -It would be wrong to consider different STP units of the taxpayer on a standalone basis, for the purpose of transfer pricing analysis, wherein the services provided by the units are same/similar and to same... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Invocation of s 263 unjustified where Commissioner intended to substitute his own view in place of that of the Assessing Officer without pointing out as to how the action of the Assessing Officer is erroneous in law or on facts Posted: 13 Jul 2011 08:44 PM PDT Satara Cattle Feed Industries (P) Ltd. v ACIT (ITAT Pune) - The invocation of s 263 is unjustified if the AO has applied mind to the shortfall in income returned after considering the declaration of additional income during the survey in absence of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Transfer Pricing – As other income of the assessee is excluded from the net profit, the other income of comparable companies should also be excluded from their net profit and the full data of the comparables should also be provided to the assessee Posted: 13 Jul 2011 08:36 PM PDT Kem Tron Technology (P) Ltd. v CIT (ITAT Ahmedabad) - As the assessee's major sales in international market related to associate enterprise section 93E was applicable and a report in Form 3CEB was duly filed along with the return of income by the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Expression 'contractor' does not include within its fold a subcontractor carrying out any work in pursuance of a subcontract with a sub subcontractor in AY 2006–2007 Posted: 13 Jul 2011 08:30 PM PDT HCC-L&T Purulia Joint Venture v JCIT (ITAT Mumbai) In the present case we are concerned with A.Y 2006-07 and, therefore, payments by a subcontractor to sub sub-contractor would not be covered under the provisions of section 194C(2) of the Act.... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Service tax is leviable on Flying Training School & Aircraft Maintenance Engineering Institutes Posted: 13 Jul 2011 06:30 PM PDT LETTER [F. NO. 137/132/2010 - SERVICE TAX], DATED 11-5-2011 - Representations have been received seeking clarification regarding leviability of service tax on the Flying Training Institutes providing training for obtaining Commercial Pilot Licence... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

CBDT allows Mahindra Satyam to file revised returns Posted: 13 Jul 2011 06:23 PM PDT The Central Board of Direct Taxes (CBDT) is believed to have turned down the request of Mahindra Satyam to fully adjust taxes paid by its erstwhile owner Ramalinga Raju on fictitious income. Tech Mahindra had acquired Satyam Computer, after a... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Terms of Reference of The Task Force on Direct Transfer of Subsidies Extended Posted: 13 Jul 2011 06:11 PM PDT The Ministry of Finance has decided to extend the terms of reference of the Task force which was constituted under the Chairmanship of Shri Nandan Nilekani, Chairman, Unique Identification Authority of India (UIDAI) to recommend and implement a... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

CBI arrests an Inspector of Central Excise in a bribery case Posted: 13 Jul 2011 06:02 PM PDT The Central Bureau of Investigation has arrested an Inspector of Central Excise, Ernakulam(Kerala) for demanding and accepting a bribe of Rs.15,000/- from the complainant. A case was registered against the Inspector of Central Excise U/s 7 of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Salman Khursheed Assumes Charge as Law & Justice Minister Posted: 13 Jul 2011 05:50 PM PDT Shri Salman Khursheed assumed charge of office as Minister of Law & Justice today. Speaking on the occasion, the Minister said that his priority would be to continue with the important work and reforms being done by his predecessor. [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Result of CA final and CPT are likely to be declared on Tuesday,the 19th July, 2011 Posted: 13 Jul 2011 05:47 PM PDT The results of the Chartered Accountants Final Examination held in May, 2011 and Common Proficiency Test (CPT) held in June, 2011 are likely to be declared on Tuesday, the 19th July, 2011 around 2:00 PM and the same as well as the merit list... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

ICAI Conclave with Trade Officials of Foreign Missions/Embassies Posted: 13 Jul 2011 05:41 PM PDT The ICAI today organized a conclave as a drive to provide an interface between various user groups in the emerging global economic scenario and considering the developing relationship that India has with its trading partners. The Conclave witnessed... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Result of the ISA Assessment Test held on 18th June, 2011 is likely to be declared tentatively on 19th July, 2011 Posted: 13 Jul 2011 05:37 PM PDT The result of the Information Systems Audit [ISA] Assessment Test held on 18th June, 2011 is likely to be declared tentatively on 19th July, 2011 around 2.00 PM at the Institute's office at New Delhi. [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Moily Says Corporate governance, new companies act top priorities Posted: 13 Jul 2011 05:35 PM PDT Corporate Affairs Minister M. Veerappa Moily took charge of his new portfolio here early Wednesday and said the passage of a new bill to replace the 55-year-old Companies Act and issues of corporate governance were his top priorities. Moily also... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Modification of SIONs A-2913 and A-263 under Chemical & Allied Products Group Posted: 13 Jul 2011 06:32 AM PDT PUBLIC NOTICE NO. 64/(RE-2010)2009-2014, (i) Description of the export product under these two SIONs have been modified. (ii) There is no other change. The number of inputs, their description & quantity permitted remains the same. The... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Think twice before choosing Lump sum payment of tax in Works contracts under PVAT Act Posted: 13 Jul 2011 02:28 AM PDT If you want to choose lump sum scheme for payment of tax in works contracts without maintaining any books of accounts under Punjab VAT Act, 2005, you should think twice before choosing it. Proviso to section 8(2-A) of Punjab VAT Act and Rule 15(6)... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Non-Banking Financial Companies Auditor's Report (Reserve Bank) Directions, 2008 Posted: 12 Jul 2011 11:06 PM PDT CIRCULAR NO. DNBS (PD) CC NO. 226/03.02.001/2011-12 Auditors to submit additional Report to the Board of Directors - In addition to the Report made by the auditor under section 227 of the Companies Act, 1956 (1 of 1956) on the accounts of a... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Allied activities – entry into insurance business, issue of credit card and marketing and distribution of certain products Posted: 12 Jul 2011 10:59 PM PDT CIRCULAR NO. DNBS (PD) CC NO. 233/03.10.001/2011-12 Entry into insurance business - In the statement of Monetary and Credit Policy for the year 2000-2001 announced by our Governor on April 27, 2000 it was indicated, inter alia, that the guidelines... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Guidelines for Issue of Commercial Paper Posted: 12 Jul 2011 10:56 PM PDT CIRCULAR NO. IDMD.PCD. 4 /14.01.02/2011-12 Commercial Paper (CP) is an unsecured money market instrument issued in the form of a promissory note. CP, as a privately placed instrument, was introduced in India in 1990 with a view to enable highly... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Future approach towards monitoring of frauds in NBFCs Posted: 12 Jul 2011 10:50 PM PDT CIRCULAR NO. DNBS.PD.CC. NO.229/03.10.042/2011-12, 1.1 Incidence of frauds in NBFCs is a matter of concern. While the primary responsibility for preventing frauds lies with NBFCs themselves, a reporting system for frauds is prescribed in the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Guidelines for Issue of Certificates of Deposit Posted: 12 Jul 2011 10:49 PM PDT CIRCULAR NO. IDMD.PCD.5/14.01.03/2011-12, Certificate of Deposit (CD) is a negotiable money market instrument and issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 Posted: 12 Jul 2011 10:24 PM PDT CIRCULAR NO. DNBS (PD) CC NO. 224/03.02.001/2011-12, The Reserve Bank of India, having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Bank to regulate the credit system to the advantage of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Returns to be submitted by NBFCs Posted: 12 Jul 2011 10:20 PM PDT MASTER CIRCULAR – RETURNS TO BE SUBMITTED BY NBFCs CIRCULAR NO. DNBS.PD.CC. NO.227/03.10.042/2011-12, DATED 1-7-2011 In order to have all current instructions in one place, the Reserve Bank of India has issued master circulars to NBFCs on... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI'S Master Circular dated 1-7-2011 on Regulatory Framework for Core Investment Companies (CICs) Posted: 12 Jul 2011 10:12 PM PDT CIRCULAR NO. DNBS (PD) CC NO. 237/03.02.001/2011-12, The Bank had announced in the Annual Policy 2010-11 that companies which have their assets predominantly as investments in shares for holding stake in group companies but not for trading, and also... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Mortgage Guarantee Company (Reserve Bank) Guidelines, 2008 Posted: 12 Jul 2011 10:04 PM PDT CIRCULAR NO. DNBS (PD-MGC) C.C. NO. 8/23.11.01/2011-12, DATED 1-7-2011 The Reserve Bank of India, in terms of Notification No. DNBS (MGC) 1 /CGM (PK)- 2008, dated January 15, 2008, issued in terms of section 45-I(f)(iii) of the Reserve Bank of India... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Miscellaneous Instructions to All Non-Banking Financial Companies Posted: 12 Jul 2011 09:57 PM PDT RBI's Master Circular dated 1-7-2011 on Miscellaneous Instructions to All Non-Banking Financial Companies It was decided to introduce an ALM System for the Non-Banking Financial Companies (NBFCs), as part of their overall system for effective risk... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Nomination facility in Relief / Savings Bonds Posted: 12 Jul 2011 09:35 PM PDT MASTER CIRCULAR NO. DGBA.CDD NO. H – 9022/13.01.299 / 2011-12, DATED 1-7-2011 A sole holder or all the joint holders (investors) of a Relief/Savings Bond other than in the form of promissory note or bearer bond may nominate one or more persons who... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI's Master Circular dated 1-7-2011 on Appointment & delisting of Brokers and Payment of Brokerage on Relief/Savings Bonds Posted: 12 Jul 2011 09:33 PM PDT MASTER CIRCULAR NO. DGBA.CDD NO. H – 9020/13.01.299/2011-12, DATED 1-7-2011 Procedure for enrollment/registration of brokers - Agency Banks may follow a simple procedure for enrollment/registration of brokers. The broker seeking... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

RBI – Lending to Priority Sector –Reporting Data on Priority Sector Advances Posted: 12 Jul 2011 09:32 PM PDT RPCD.CO.Plan.BC.11 /04.09.01/2011-12 Accordingly, we advise you to furnish data on priority sector advances in the revised format to Rural Planning and Credit Department, Central Office, Statistics Division, 10th Floor, New Central Office Building,... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

SARFAESI : RBI's Master Circular dated 1-7-2011 on Securitisation Companies and Reconstruction Companies (Reserve Bank) Guidelines and Directions, 2003 Posted: 12 Jul 2011 09:31 PM PDT CIRCULAR NO. DNBS (PD) CC. NO. 25/SCRC/26.03.001/2011-2012, DATED 1-7-2011 The Reserve Bank of India, having considered it necessary in the public interest, and being satisfied that, for the purpose of enabling the Reserve Bank to regulate the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Retail Electronic Payment Systems –NEFT / NECS / RECS / ECS – Levy of Processing Charges- Collection & Settlement of Inter-bank Charges Posted: 12 Jul 2011 09:31 PM PDT DPSS (CO) EPPD No./ 94 / 04.03.01/ 2011-12 On a review, it has been decided that Clearing Houses / Processing Centres will now calculate and settle the charges payable as prescribed in the circular. Under the revised arrangement, the charges payable... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Insurance – Servicing of Health Insurance Schemes offered by Bodies other than Insurance Companies – Draft Circular Posted: 12 Jul 2011 09:28 PM PDT CIRCULAR NO. IRDA/NL/CIR/HLTH/160/07/2011, DATED 11-7-2011 The Authority intends to modify the Circular No.031/IRDA/TPA/05, dated 16th December, 2005. Accordingly, the Authority has prepared the Exposure Draft. In this regard, comments/suggestions... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Insurance – Submission of Business Information related to Policies, premium, claims and Offices of General Insurance Companies Posted: 12 Jul 2011 09:26 PM PDT CIRCULAR NO. IRDA/NL/CIR/MISC/159/07/2011, DATED 8-7-2011 Please refer to Circular 40/NL/IRDA/08-09, dated 3rd March, 2009 wherein, the Authority has mandated all non-life Insurance Companies to submit quarterly and yearly business information. In... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

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