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Updates Of the Day 1.RBI issued Master Circular on Guarantees, Co-Acceptances and Letters of Credit Vide RBI/2015-16/6DCBR.BPD. (PCB) MC No.8/09.27.000/2015-16. 2.Government increases custom duty on ghee, butter & butter oil to 40% Notification No. 49/2015. 3.Basmati Rice satisfying both length and component parameters can only be exported- [Commissoner of Customs vs. Orion Enterprises] (Delhi High Court). 4.Statements of witnesses are made basis of demand, not allowing assessee to cross-examine witnesses, is a serious flaw which makes order nullity. Supreme Court: [Andaman Timber Ind vs, Comm of Central Excise, Kolkata.] 5.CBEC allowed 70% abatement on services ancillary to Goods Transport Agency (GTA) Circular No. 186/5/2015 dated 5-10-2015. 6.Society not eligible for deduction U/s. 80P if its income is not from collective disposal of labour of its member: [Nileswar Range Kallu Chethu Vyavasaya Thozhilali Sahakarana Sangham vs. CIT, High court of Kerla.] 7.Profit from sal

Germany, France, Switzerland, Singapore, Mauritius and the British Virgin Islands are among those that are providing info or will soon start doing so India has found global allies in its fight against black money. Germany, France, Switzerland, Singapore, Mauritius and the British Virgin Islands are among those that are providing information, or will soon start doing so, on assets held by Indians, helping the Narendra Modi government in its campaign to crack down on unaccounted wealth. “We are able to pierce through multiple layers... as a number of tax jurisdictions are now helping with data flow,“ said a finance ministry official. The freer exchange of financial information, thanks to accords such as the Foreign Account Tax Compliance Act (Fatca) with the US, will help identify tax evaders who didn't come clean during the grace period that ended September 30. Singapore, which has strong business links with India, is passing on data. Mauritius, which has signed a global infor

The International Monetary Fund (IMF) on Tuesday marginally lowered its 2015-16 growth forecast for India, which will still remain the world’s fastest growing major economy, and expressed optimism about its future prospects. IMF now expects the Indian economy to grow 7.3% this year, lower than the 7.5% it projected in July. It expects growth to accelerate to 7.5% the following year. That will cement India’s position as the fastest growing major economy, ahead of China, which the IMF expects will grow 6.8% this year, followed by 6.3% in the next. IMF also lowered its global growth forecast by 0.2 percentage points to 3.1%, citing an uneven recovery as well as increasing downside risks to the growth outlook for emerging market economies that are grappling with declining commodity prices, depreciating currencies and growing volatility in financial markets. The Washington-based multilateral institution attributed the lowering of India’s growth forecast to the weakening of global

For foreign portfolio investors (FPIs), the Reserve Bank of India (RBI) will be increasing the investment limit in governmnet securities to Rs. 1,79,500 crore by January 1,from the existing Rs. 1,53,500 crore. For state development loans(SDLs), the limit will be enhanced to Rs.7,000 crore by January 1; currently it is nill. Easing norms for foreign ownership of government of government debt, the Reserve Bank of India (RBI) on Tuesday announced higher investment limits in rupee terms in government securities by FPIs with a view to bringing in an additional Rs.1.2 ;akh crore by March 2018. Business Standard, New Delhi, 7th Oct. 2015

A government- appointed high level panel has recommended uniform tax treatment for all corporate social responsibility activities carried out under the new Companies Act and also suggested leniency towards non- compliant firms in the first two- three years of this law. Business Standard, New Delhi, 7th Oct. 2015

Ahead of the winter session of Parliament, the government appears to be hopeful of introducing the goods and services tax ( GST) from the next financial year. This is despite the fact that the Congress is yet to express support for the Constitution amendment Bill for the new indirect tax regime in its present form. “We have introduced the GST Bill in Parliament and hope to roll it out in 2016,” Prime Minister Narendra Modi said at an event organised by Nasscom in Bengaluru on Tuesday. The event was attended by industry captains such as Kumar Mangalam Birla, A M Naik, Azim Premji, G M Rao, Chanda Kochhar and Shikha Sharma. The PM was sharing the stage with visiting German Chancellor Angela Merkel. Meanwhile, addressing students and faculty at Columbia University in the US, Finance Minister Jaitley said GST would be the government’s priority. From the US, the Finance Minister will travel to Lima, Peru, to attend the World Bank- International Monetary Fund meeting. The GST Bill is