Govt gives nod to hike in Insulin prices by 10%;

OECD urges businesses to step up fight against bribery;

Sahar Airport Customs arrests Zambian lady with 5.42 kg cocaine;

Mr Sanjay Kumar Mishra of 1984 Batch is new Joint Secretary (FT & TR-I) in CBDT;

Budget - revenue foregone - large corporates bear less tax burden than smaller corporates (See 'The Cob(Web) Column);

Clean Energy Cess: Did the FM err? (See 'DDT' Column)

Change in Export of Services Rules, 2005 Ð Has Budget provided permanent solution?;

Refund of accumulated cenvat credit to exporters Ð amending notification without amending rule 5 would not deliver results ;

Levy of duty on diapers, sanitary napkins -All is not well' ;

Abort Coal Cess & review all energy taxes ;

Budget 2010 - The tale of Wish-List and Reality ;

Corporate tax mop-up leapfrogs by 11% between Apr-Feb this fiscal; Total direct taxes collections grow by 7.5% during same period;

CBEC Chairman hints at lowering service tax rate on air travel;

Govt eases ban on export of non-basmati rice to Lanka + Nepal ;

BUDGET ANALYSIS

budget_news_68.pdf

Refund of accumulated cenvat credit to exporters – amending notification without amending rule 5 would not deliver results;

budget_news_67.pdf

Levy of duty on diapers, sanitary napkins – ‘All is not well';

budget_news_66.pdf

Change in Export of Services Rules, 2005 – Has Budget provided permanent solution?

budget_news_65.pdf

Budget 2010 - The tale of Wish-List and Reality;

TIOL COMMENTARY

ddt 4 mar.pdf

Income Tax - Allotment of Document Identification Number - Further postponed;

cobweb.pdf

Budget - revenue foregone - Large corporates bear less tax burden than 'small brothers'!

edit.pdf

Abort Coal Cess & review all energy taxes;

RBI CIRCULAR

rbi_notification.pdf

Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Amendment Rules, 2009 - Obligation of Banks/Financial Institutions;

MIXED BUZZ

mbuzz1355.pdf

Investor Education: MCA to double funds for media campaign;

mbuzz1354.pdf

Govt gives nod to hike in Insulin prices by 10%;

mbuzz1353.pdf

OECD calls on businesses to step up fight against bribery;

2010-TIOL-10-ARA-IT + ara story.pdf

Joint Stock Company Foreign Economic Association 'Technopromexport', (Dated : February 25, 2010)

The terms of contract and the documents go to show that the transaction of offshore plant and equipment was completed in the high seas and the property in goods passed to the NTPC outside India. As per clause 31 of General Conditions of Contract the ownership of plant and equipment supplied under the ownership contract No. 4520 shall pass on to NTPC upon lading on the ship and upon endorsement of the dispatch documents in favour of the NTPC. The consideration of sale of offshore was remitted to the applicant directly outside India by means of establishing L/C. Hence no portion of consideration for offshore supply was received or could be deemed to have been received in India and therefore not liable to tax. Further no income accrues or arises in India to the applicant attracting income-tax.

Held: no portion of consideration is received by the applicant in India. Further, no income accrues or arises in India to the applicant as all the transactions took place outside India. The materials were shipped outside India, the title and property passed outside India (on high seas) and the payment was received outside India and therefore the applicant is not liable to pay income-tax in India.: ADVANCE RULING;

2010-TIOL-155-HC-DEL-IT.pdf

CIT Vs Ilpea Paramount (P) Ltd (Dated : February 18, 2010)

Income tax - Sec 115JA - AO makes additions for provision for doubtful debts, provision for doubtful advances and provision for gratuity - Tribunal deletes the additions - held, in view of retrospective amendment in Sec 115JA vide Finance (No 2) Act, 2009 where clause (g) has been inserted in the Explanation contained in Sec 115JA(2), the sum set aside for provision for diminution in the value of any asset is not allowable - in view of the apex court decision in HCL Comnet Systems & Services ( 2008-TIOL-182-SC-IT ) the provisions for doubtful debt and advances are nothing but provision for diminution in the value of asset covered under Clause (g) of the said Explanation - Revenue's appeal allowed :DELHI HIGH COURT;

2010-TIOL-154-HC-DEL-IT.pdf

CIT Vs M/s Delhi Press Samachar Patra (P) Ltd (Dated : February 17, 2010)

Income tax - Sec 31(i) - Assessee has a press building which is used for business purpose - deals in printing and publicatin of magazines - the building was constructed in 1975 - repairs were carried out from time to time and the same was claimed as deduction during various AYs - assessee carries out major repair work and treats the same as current repairs - AO and CIT(A) treat the same as capital expenditure - Tribunal allows the assessee's appeal - held, there is no evidence which supports the Revenue's plea that a part of the building was demolished and a new structure was erected - since it is a case of current repairs, deduction is allowable - Revenue's appeal dismissed :DELHI HIGH COURT;

2010-TIOL-153-HC-AHM-IT.pdf

CIT Vs Advaitya Products Pvt Ltd (Dated : February 15, 2010)

Income tax - Sec 40A(2)(b) - Assessee is accused by the AO that it has been diverting profits through its flagship company to avoid paying tax - Assessee buys chemicals from the market and sells the same to its sister concern at a marginal profit - flagshi company in turn sells the same at a higher profit and claims adjustments against unabsorebed losses and depreciation - CIT(A) takes the view that the AO cannot dictate a businessman how to do business - there is nothing incriminating against the assessee - Tribunal agrees with the CIT(A) - held, in view of the Tribunal's detailed findings that the assessee is a marginal player in the market and its flagship company manufactures only a few of total product porfolio it sells, there is nothing to suggest that the assessee is diverting profits to avoid paying tax - Revenue's appeal dismissed:GUJARAT HIGH COURT;

SERVICE TAX SECTION

2010-TIOL-343-CESTAT-BANG.pdf

M/s Bhel-Ge Turbine Service Pvt Ltd Vs CCE, Hyderabad (Dated: December 4, 2009)

Service Tax – Availment of credit on common inputs used for providing taxable services and activity of trading in parts – For the purpose of interpreting Rule 6 (3) (c) of CCR, 2004 exempted services as mentioned in Clause 2(e) of CCR would cover only services which are notified and not those services on which no service tax is leviable under Section 66 of Finance Act, 1994 – Reversal of credit attributable to common inputs sufficient to consider the matter and dispose it on merits – Pre-deposit of balance amount waived and stay granted :BANGALORE CESTAT;

2010-TIOL-342-CESTAT-DEL.pdf

CCE, Indore Vs M/s Detective & Security Service (Dated: December 17, 2009)

In view of separate registration taken and granted by departmental authorities, short payment of service tax at Trivandrum office cannot be dealt with C.Ex. officers at Indore - appellate order is set aside and the matter remanded to adjudicating authority to segregate service tax liability relating to different jurisdictions and adjudicate the matter relating to his jurisdiction.:DELHI CESTAT;