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Updates Of the Day 1.ICAI clarification on use of CA Logo and ICAI Emblem inside a rounded triangle with white background is permissible to be used by the members. 2.RBI issued a direction to all Scheduled Commercial Banks (excluding Regional Rural Banks) on implementation of the Gold Monetization Scheme, 2015. 3.Service tax department clarification dated 23rd October, 2015: Mere transfer of title in immovable property is exempted from service tax after issue of occupancy certificate but before issue of completion certificate. 4.Shipping Company in UAE owned by the shareholders in Switzerland could not be said to have been created for the purpose of availing India - UAE tax treaty benefits. [ITO vs MUR Shipping DMC Co., UAE [Rajkot ITAT] 5.Section 147 can be invoked only if AO has reason to believe that taxable income has escaped assessment. [Oriental Insurance Company vs. CIT (Delhi High Court)] 6.E-file TDS statement for the quarter ended on 30th Sept., 2015 by 31st Oct., 2015...

Metallic scrap recyclers in India are in a fix over the sudden change in the nomenclature of some types of metallic scrap by the global industry body Institute of Scrap Recycling Industries ( ISRI). This, at a time when finished products are available at cheap rates due to dumping, resulting in a fall in scrap demand for recycling. Washington- based ISRI, which represents 1,600 scrap recycling companies worldwide, amended its specifications and incorporated radio- mixed hard/ soft scrap lead, which consists of clean lead solid and lead shots free of other materials. Also, relay — lead covered copper cable — has been added to the existing categories of metallic scrap for trading on bilateral basis — negotiations between buyers and sellers. Earlier, these scrap varieties of nonferrous metal scrap were allowed to trade freely. The change in scrap trading specifications has come at a time when the scrap recycling industry in India is facing reduced demand from consumer industries...

The Reserve Bank of India ( RBI) will soon notify a sovereign gold bond scheme. This follows the notification of a gold monetisation scheme last week. The government will launch three new schemes: Apart from bonds, the others pertain to gold monetisation and selling of gold coins. The launch would be “ on or before November 9,” Saurabh Garg, joint secretary in the Union finance ministry, said while addressing a workshop organised by the Indian Institute of ManagementAhmedabad’s gold policy centre. For gold bonds with a sovereign guarantee, a government circular had earlier said investors would have to deposit cash, to be calculated in terms of the price and the quantity of gold one wants to invest. During maturity, money would be paid keeping in mind the prevailing gold prices; interest would be paid every year. Earlier, the scheme was scheduled to be launched on November 4. Now, it is said it will be launched on November 5 so that by Dhanteras, all bank branches and post offices...

The Securities and Exchange Board of India (Sebi) is planning to issue fresh guidelines for credit rating agencies, amid instances of lack of disclosures and conflict of interest between such agencies and issuers. The regulator might also prescribe rules for fund houses to avoid concentration risks in a single debt security. The move is aimed at avoiding a repeat of recent crises such as the Amtek Auto default, which hit investors of JP Morgan Mutual Fund. “What we have started looking at is why it is that in certain cases, in which papers were being rated investment grade, the rating was suddenly suspended? Maybe, there was genuine reason. I am not questioning it but that has to be explained to investors and the public at large. We felt that was not being done. We had a meeting with rating agencies and explained our concern to them,” Sebi Chairman U K Sinha said on the sidelines of an annual capital market summit organised by the Federation of Indian Chambers of Commerce and Indus...

These need to be declared under income from business and profession ‘Section 28 of the Income- Tax Act lays down what is taxed as business income and includes the value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession’ Be cautious of the expensive gifts you receive at workplace during the festival season. While most don’t declare gifts received at work, some of them could be taxable. Though people don’t disclose non- cash gifts as nothing is recorded in the book of accounts, such gifts are taxable, says Vikram Ramchand, CIO and co- founder of Makemyreturns. com. For example, if a sales and marketing manager receives agift from an advertising company or an employee in the administrative department gets a gift from a vendor, they are supposed to disclose it in their income tax returns and pay relevant tax. The same goes for professionals such doctors, lawyers, and chartered accountants. Such gifts are con...

The Special Investigation Team (SIT) on black money on Tuesday informed the Supreme Court that it has recently filed its fourth probe report in a sealed cover with the apex court registry. A bench comprising Chief Justice HL Dattu and justice Arun Mishra considered the statement of senior advocate Dushyant Dave, appearing for the SIT, on this issue and said that it will hear the matter in January. The court, on September 3, had told the SIT to submit its fresh report on the progress of its probe and had also asked the Centre to apprise it about the steps taken to implement SIT’s recommendations to bring back illegal money stashed in foreign banks. Earlier, noted jurist Ram Jethmalani on whose petition the SIT was constituted, had accused the National Democratic Alliance (NDA) government and the previous United Progressive Alliance (UPA) dispensation of failure to bring back black money kept abroad. He had also attacked the SIT, saying it is “loaded with people who are loyal to ...

Amco Power allowed to accrue tax losses; move to benefit cos making acquisitions & restructuring In what could benefit companies making acquisitions and internal restructuring, a recent Supreme Court judgement has given clarity on whether tax losses could be allowed in the event of a change of shareholding beyond 51%. A problem that many Indian companies faced was the uncertainty on whether the buyer in a transaction -acquisition or restructuring of a group company -can add tax losses. The income tax depart ment's view was that tax losses caused by the seller cannot be added as cost to the transaction. This was struck down by the SC. In a case involving Amco Power Systems, the SC has allowed the company to accrue tax losses. Industry trackers said the whole debate was around Section 79 of the Income Tax Act, where the dispute was whether tax losses could be carried forward. “This decision will...

Panel to give suggestions by Jan 31 to help incorporate those in Budget FY17 The finance ministry on Tuesday set up a 10member committee to review the Income- Tax Act to avoid litigation and improve ease of doing business, after solving past minimum alternate tax ( MAT) cases and easing transfer pricing norms. The announcement came on a day when a World Bank report showed only marginal improvement in India’s ranking in terms of ease of doing business. The panel has been asked to submit a preliminary report by January 31, so that some of its recommendations could be incorporated in Budget 2016- 17. “We have constituted a committee to simplify the provisions of the I- T Act... This committee will be conducting a study from time to time. As and when it keeps giving a bundle of suggestions with regard to simplification, we will examine those… for those found acceptable, we will try and simplify the provisions of the I- T Act,” Finance Minister Arun Jaitley told reporters here. Th...