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Updates Of the Day 1.Transshipment of goods without charging duty: The fact that the goods cleared under transshipment permit are required for the intended purpose is clear from the facts that the essentiality certificate has been issued. Whether it is issued under Notification No. 17/2001 or 21/2002 is immaterial, benefit of notification cannot be denied – Tribunal. [M/s Frontier Aban Drilling (India) Ltd. vs Commissioner of Customs, Mumbai - 2016 (2) TMI 358 - CESTAT MUMBAI] 2.Import of medical equipment: As per the technical definition "Gastro Intestinal Video Endoscope", it is nothing but Gastroscope using video technology. The present equipment is based on wireless capsule and which covers not only throat but also entire gastro intestinal tract. Benefit of exemption allowed. – Tribunal. [Commissioner of Customs (Airport) Chennai vs Vishal Surgical Equipment Co. (P) Ltd. - 2016 (2) TMI 356 - CESTAT CHENNAI] 3.Admissibility of credit of service tax paid on input servi

In a bid to speed up recovery of money in the Rs.5,574crore NSEL payment case, government has decided on immediate auction of non-encumbered properties while urging the markets regulator the Securities and Exchange Board of India (Sebi) to take action against defaulting brokers. At a meeting chaired by Economic Affairs Secretary Shaktikanta Das, the Maharashtra government has been asked to take immediate action for auctioning the properties which do not have any encumbrance or have approval of the court. The Maharashtra government has also been asked to actively pursue with the MPID court to obtain early orders for auctioning of the remaining attached properties and also appoint a senior advocate for the same. The meeting reviewed the action taken and progress made on the recommendations made by the Special Team of Secretaries (STS) to ensure that there is no systemic impact of the NSEL crisis. The Ministry of Corporate Affairs has been advised to decide on the draft order of the prop

The asset quality review process of the Reserve Bank of India will take a toll on some banks, Deputy Governor SS Mundra has said. “If you look at the results which are coming in, you will find them as a mix kind of outcome,“ Mundra said at the first Banking Conclave organised by the Confederation of Indian Industry (CII). “That essentially reflects at what point of time the individual bank has started on this journey. If a bank has started on this journey a little earlier, probably the reflection is there in the result.“ He also said that all banks were on board and were adhering to the road map laid by the banking regulator. RBI had recently asked banks to clean up their balance sheets by March 2017 and provision for those losses before the end of the current fiscal year. Mundra added that RBI would consider whether the steep bad loan numbers would trigger its restrictions on lending activities. “PCA (prompt corrective action) is a comprehensive framework, which is trend over a perio

As if the mental harassment of delayed delivery of a house is not bad enough, you could also be losing 85% of the tax benefit on your home loan, for no fault of yours.A tax deduction of Rs 2 lakh per year is allowed against payment of interest on home lo ans, if the house is acquired within three years of taking the loan. In case the possession happens after three years, the permissible deduction falls to just Rs 30,000 a year -a reduction of 85%. In the past couple of years, most home deliveries have been delayed beyond three years from time of purchase, making the buyers ineligible for the tax deduction—a fact they would have not known at the time of taking the home loan. Given the stress in the real estate sector, most builders are now committing deliveries after four years of booking, so home buyers lose out on a big chunk of the potential tax deduction. For people in the top inco me tax bracket of 30% (annual taxable income of Rs 5 lakh or more) the benefit resulting from this pr

The wait for entry of new participants and instruments on the commodity futures market is likely to get longer. At an event here, P K Bindish, chief general manger at the regulatory body, the Securities and Exchange Board of India ( Sebi), said: “ We want the commodity futures market to bring risk management at par with the equity market before allowing new instruments and a new set of participants for hedging on commexes.” This implies Sebi might not allow instruments like options and indices to trade on a commodity exchange till these mitigation facilities are in place. While the commexes claim to already have a strong risk management system already in place, the recent suspension of castor seed futures by the National Commodity & Derivatives Exchange ( NCDEX) has restirred the issue. And, before the castor issue, NCDEX had to impose nearly a 100 per cent margin in chana ( chickpea) trade. Sebi chairman U K Sinha had said last September at the time of absorbing the erstwhile

RBI/2015-16/315 DBR.BP.BC.No.76/21.07.001/2015-16 February 11, 2016 All Scheduled Commercial Banks (excluding Regional Rural Banks) Madam / Dear Sir, Implementation of Indian Accounting Standards (Ind AS) The Ministry of Corporate Affairs (MCA), Government of India has notified the Companies (Indian Accounting Standards) Rules, 2015 on February 16, 2015. A reference is also invited to the Press Release dated January 18, 2016 issued by the MCA outlining the roadmap for implementation of International Financial Reporting Standards (IFRS) converged Indian Accounting Standards for banks, non-banking financial companies, select All India Term Lending and Refinancing Institutions and insurance entities. 2. In this connection, it is advised that scheduled commercial banks (excluding RRBs) shall follow the Indian Accounting Standards as notified under the Companies (Indian Accounting Standards) Rules, 2015, subject to any guideline or direction issued by the Reserve Bank in this

Updates Of the Day 1.Banks shall comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter. RBI/2015-16/315 DBR.BP.BC.No.76/21.07.001/2015-16 2.RBI extends the Date for withdrawal of Pre-2005 series banknotes to June 30, 2016. 3.Expense on gifts to doctors allowed being not prohibited in law, CBDT circular only applicable A.Y. 2013-14 onwards [Syncom Formulations (I) Ltd. vs. DCIT (ITAT Mumbai), ITA No.6429 & 6428 /Mum/2012 & ITA No.11/Mum/2012, AY 2010-11 & 2011-12] 4.Assessment completed by AO relying on estimations cannot be remanded back by CIT to reverify some aspects of estimation relied on.[Sri Surakshitha Homes vs. ITO (ITAT Hyderabad), IT Appeal No.-784/2013] 5.No Penalty for non disclosure of manner of income, if same was not asked during statement recorded u/s/ 132(4).[DCIT vs. Shri Rajiv Chopra (ITAT Chandi