Romancing the Taxation...DCIT VS HERO MOTORS LIMITED

                                                                   DCIT VS HERO MOTORS LIMITED

Fees paid to ROC for increase in Authorised capital (The same was held in GIC VS CIT in connection with bonus issue).

Romancing the Taxation... Double Taxation avoidance agreement with Latvia and India

Agreement for Avoidance of double taxation and prevention of fiscal evasion with foreign countries - Latvia - 12/2014 - Dated 5-3-2014 - Income Tax

Whereas, an Agreement was entered into between the Government of the Republic of India and the Government of the Republic of Latvia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income which was signed at New Delhi on the 18th day of September, 2013 (hereinafter referred to as the said Agreement);

An whereas, sub-paragraph (a) of paragraph 3 of Article 30 of the said Agreement provides that the provisions of the said Agreement shall have effect in India in respect of income derived in any fiscal year beginning on or after the first day of April next following the calendar year in which the said Agreement enters into force;

Now, therefore, in exercise of the powers conferred by section 90 of the Income- tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of said Agreement between the Government of the Republic of India and the Government of the Republic of Latvia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, as set out in the Annexure hereto, shall be given effect to in the Union of India with effect from the l^stday of April, 2014.

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

Romancing The Taxation... Railway Budget Highlight 14-15

Railway Minister Mallikarjun Kharge presented the interim Rail Budget in Parliament on Wednesday, amidst uproar over the Telengana Bill and was forced to cut short his speech. The minister said 17 new premium trains and 38 new express trains will be introduced. He left passenger fares and freight rates unchanged. The budget is for the first four months of the of the fiscal year 2014-15 that begins in April. Mr Kharge's maiden budget comes just months away from the general elections.

Here are the highlights from his speech:

• No increase in passenger fares or freight charges
• To introduce 38 new express trains.
• To introduce 17 new premium trains
• To introduce 10 new passenger trains
• Premium air-conditioned special train in Delhi-Mumbai sector with shorter advance reservation period and dynamically varying premium over tatkal fare
• More high-speed trains to be launched
• Passenger rail service to Katra and Vaishnodevi to start shortly
• Arunachal Pradesh, Meghalaya on railway map 2014
• Initiatives for freight corridors on eastern & western routes is an innovation in rail transport in India and will reduce transport time by half
• Railways completed 2207 kilometres of new lines against a target of 2000 km
• Electrification of 4556 km completed
• Three new rail factories now functional
• FY15 annual plan at Rs. 64,300 crore
• IRFC, the financing arm of Railways to borrow Rs. 12,800 crore from market
• Railways operating ratio, measure of expenses as a percentage of revenue, for 2013-14 at 90.8 per cent
• FY15 freight loading target 1101 MT
• FDI being enabled for rail infrastructure

Romancing Thr Taxation....... New exemption Amendment to Sec.10(17A) order dated 28 Jan 2014

Romancing The Taxation....  New exemption Amendment to Sec.10(17A) order dated 28 Jan 2014

As per Section 10(17A)(ii) CG by way of a order dated 28th Jan 2014, hereby approves any payment mode, whether in cash or kind, as a rewrd by CG or SG to the medal winner of
1. Olympics Games. or
2.Common Wealth Games. or
3. Asian Games
w.e.f. 28th Jan, 2014, Income is exempt.

Romancing The Taxation.... Change in Process of Allotment of PAN dated 24/1/2013

The procedure for PAN allotment process will undergo a change w.e.f.

03.02.2014. From this date onwards, every PAN applicant has to submit self-

attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of

Birth (DOB) documents and also produce original documents of such

POI/POA/DOB documents, for verification at the counter of PAN Facilitation

Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date

of Birth (DOB) documents attached with PAN application form, will be verified

vis a vis their original documents at the time of submission of PAN application at

PAN Facilitation Centre. Original documents shall not be retained by the PAN

Facilitation Centres and will be returned back to the applicant after verification.

Romancing the Taxation... New case Law on Transfer of shares by non resident

Romancing the Taxation
Transfer of shares of a listed Indian  company by a nonresident without  consideration is not liable to tax in
India .
DIT v. Goodyear Tire and Rubber Company  

Romancing The Taxation... Clarification on TDS

Clarification on TDS

TDS provisions won't get attracted on payer if it made payments without claiming them as expenditures.Once assessee has not claimed expenditure or reimbursement of expenses, assessee is not liable to deduct tax at source