CA Online

Draft aviation policy proposes incentives to cut cost of flying; levy to help raise Rs.1,500 crore a year, compensate airlines for losses on flights to cities that have little or no air connectivity The government has proposed a 2% levy on domestic and international plane tickets to subsidize airlines so that they connect small and remote cities, and enable millions more to travel by air in the world’s fastest growing aviation market. A draft aviation policy unveiled on Friday said the levy, which would be imposed with effect from 1 April 2016, would help raise Rs.1,500 crore a year. The proceeds will help compensate airlines for losses on flights to cities that have little or no air connectivity. HT Mint, New Delhi, 31st Oct. 2015 

The Reserve Bank of India (RBI) will start issuing sovereign gold bonds on November 26, 2015, with a tenor of eight years and an interest rate of 2.75 per cent, the finance ministry said in a statement. The bonds will be open for public subscription from November 5- 20, it added. “Government of India, in consultation with RBI, has decided to issue sovereign gold bonds. The bonds will be sold through banks and designated post offices. The borrowing through issuance of the bond will form part of market borrowing programme of government of India,” the ministry said. According to Sudheesh Nambiath, lead analyst ( precious metals demand), GFMS Thomson Reuters, South Asia and UAE, the scheme has been planned well, keeping longterm investors’ interest in mind. “ The pricing mechanism is attractive, giving time for decision making to invest at appropriate price levels. Investor response is going to be phenomenal given that it is agood alternative to holding physical gold at home, given

Updates Of the Day 1.Congratulations to Hon'ble CA. Manoj Fadnis, President, ICAI who have been elected as Deputy President, CAPA. 2.Supreme Court has directed RBI to no fresh permission/ renewal of permission shall be granted by RBI/AD banks respectively till the policy is reviewed. 3.Adjustment of cenvat credit of education cess and secondary and higher education cess now allowed with the payment of service Tax.Notification no. 22/2015 dated 29.10.2015. 4.New MCA Form AOC 4 CFS would be available for filing w.e.f 1st Nov 2015 with new versions of form AOC 4 (XBRL) and AOC 4. 5.Date for filing of DVAT Form 09 has been extended upto 15.12.2015 vide circular No. 28 dated 30.10.2015. 6.It is mandatory to issue notice under section 143(2) subsequently to return filed under section 148 of the Income Tax Act, 1961. [PR. CIT vs. Shri Jai Shiv Shankar Traders Private Limited., (Delhi High Court) 7.Hamdard eligible for exemption under section 10(23C) (iv) for business held in trust