Cross-Border Movement of Personnel -Service PE Issues
The increase in foreign investments in Indian economy has led to significant cross border movement of personnel. Cross-border movement of personnel has its own exposures. Presence of personnel of fore |
Beat the VAT; Say `Fryum' is Papad
Interesting questions often come up in judicial courts world wide, simply because no one can define everything and, if defined, sometimes it has its inherent imperfections. But, for this, a lot of tax |
Royalty and Fees for Technical Services: Treatment in DTAAs and the Indian Income-tax Act, 1961
At its core, this article concerns itself with the interaction between tax treaties and domestic law, and whether Indian law presents a case of treaty override, the discussion being restricted to the |
Global Economic Crisis and Innovative Cost-Control Techniques: An Assessment.
The goal of any cost system is to provide relevant and timely information to management. This information supports better management of corporate resources in production or provisions of services and |
Section 206AA of Income-tax Act, 1961 � Whether a Nightmare for Non-Residents?
(Contributed by the Committee on International Taxation of the ICAI.
Comments can be sent to citax@icai.org)
Background Currently, tax department is issuing more than 7.5 million permanent |
Depreciation for Infrastructure Companies
Depreciation is an important component for Profit After Tax (PAT), especially in capital intensive industry. Infrastructure development is one of the top priorities in developing countries and India i |
Can Government Retain MAT Credit after Expiry of Period Laid Down in Section 115JAA of Income-tax Act, 1961?
Section 115JAA provides for tax credit in respect of tax paid on deemed income in terms of the Sections 115JA and 115JB. However, it provides for certain period during which the tax-credit adjustment |
Taxation of Services Received from Outside India: Import of Services
Legislative History (Prior to Finance Act, 2006) Explanation to Section 65(105) The Finance Act, 2005 had inserted the following explanation to the Section 65(105) w.e.f. 16.06.2005: Explanation � For |
Financial Stability and Development Council
CA. Srinivas Yanamandra
(The author is a member of the Institute.He can be reached at eboard@icai.org)
As a part of the wall-fencing against any possible financial crisis in the country, th |
Private Equity- An Overview
Meaning of Private Equity (PE) Private equity refers to the manner of raising funds largely by investment in the company's securities, through a negotiated process. Investments are made in private |
Taxability Under Central Sales Tax Act on Interstate Transfer of Goods for Job Work
Section 6A of the Central Sales Tax Act, 1956 provides for a presumption of sale of goods in case of movement of goods from principal to agent and vice versa and also when goods moves from one busines |
Money Laundering and Financing of Terrorism �
Money laundering happens in almost every country in the world and the most common modus operandi typically involves transferring money through several countries in order to obscure its origins. Acc |
Behavioural Finance: A Road Less Travelled
Behavioural ?nance, with its roots in the psychological study of human decision making, is a relatively new and evolving subject in the ?eld of ?nance. In brief, behavioural ?nance is the study of inv |
Economic Indicators
Note: Readers are Invited to contribute write-ups or any relevant and interesting piece of information for this feature at eboard@icai.org. |
Evolving Take-Out Finance Scheme �- A Funding Device for Infrastructure Projects
In order to sustain high economic growth, India requires large investments in areas like roads, ports, power, and telecom, etc. Traditionally, government has been the sole financier of infrastructure |
Corporate Governance in Central Public Sector Enterprises
Recently, leading national newspapers reported that the Cabinet Secretary to the Government of India has reviewed the effectiveness of the corporate governance in the Central Public Sector Enterprises |
Capital vs. Revenue Expenditure -A Journey to Unending Controversy
In the Income-tax Act 1961, the term capital and revenue expenditure has not been defined anywhere. In section 37(1) of the act, which is a residuary provision, it is laid down that any expenditure in |
No Discretion is Available Under Section 80 of Finance Act, 1994 to
Impose Lesser Penalty
Penal Provisions Section 76 of the Finance Act, 1994 provides that any person, liable to pay service tax in accordance with the provisions of Section 68 or the rules made there under this Chapter, |
Taxation Aspects of Trading in Currency Derivatives
The importance of currency derivatives was soon recognised when with liberalisation of the capital accounts, as also continued development of the financial and capital markets, it was felt that wider |
Business Auxiliary vs. Support Services -� Similarities and Differences
By bringing the Business Auxiliary Services under Service tax net it was thought that now all services which are not specified under any other clause would be liable under this clause.
However, int |
Economic Indicators
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Valuation Practices in Emerging Markets: Issues Involved in Various Areas
Emerging Economies are those countries which restructure themselves in "Global Economy sense" and offer numerous opportunities in wealth and value generation, trade prospects, technology transfers and |
Currency Futures: An Insight
Prologue A currency future is a derivative contract to buy or sell one currency against the other currency on a specified future date at the price agreed on the day of contract. At the outset, the |
Overview of the Foreign Exchange Market
It was Chicago Mercantile Exchange which started currency futures for the first time in the world way back in 1972. Other developed countries followed the suit. In India, there is an active OTC market |
Economic Indicators
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Leveraging Activity-Based Costing to Enhance Enterprise Value
With the economic global crisis still continuing to some extent, companies worldwide have been experiencing severe revenue and cost pressures, declining market value and liquidity crunch. The Internat |
Amendment to Definition of 'Book Profits' in Sections 115JA & 115JB by Finance (No.2) Act, 2009 � Im
The Finance (No.2) Act, 2009 has recently amended the definition of "Book Profits" in explanation to Section 115JA and 115JB of Income-tax Act, 1961 ("Act"). This amendment will have a drastic impact |
Non-Receipt of Journal
This is for the information of Members/students/subscribers who fail to receive The Chartered Accountant journal despatched to them either due to unintimated change of address or postal y after you ch |
Treatment of Interest on Borrowings in Financial Accounting and Income Tax
The treatment of interest on borrowings in financial accounting and taxation basically remain the same with the only difference in its application in taxation. This treatment is decided on the basis o |
Economic Indicators
Note: Readers are invited to contribute write-ups or any relevant and interesting piece of information for this feature at eboard@icai.org. |
Issues in Relation to Section 2(22)(e) of the Income-tax Act, 1961
Issue One 1. What is "substantial" for item (ii) of the exceptions to section 2(22)(e) of the Income-tax Act, 1961 (the Act)?
An inclusive definition of the term "dividend" has been given i |
Corporate Governance: Points to Ponder
It was believed that Indian companies were insulated from scams like Enron and Worldcom but Satyam has proved it wrong. The Satyam episode has brought `corporate governance' at centre stage and has re |
Double Taxation in Indirect Tax Law Analysing the Challenge Through the SIM Card Case Study
The Supreme Court, in the celebrated case of Bharat Sanchar Nigam Ltd. (BSNL) vs. Union of India, held that the nature of transactions by which mobile phone connections are enjoyed do not warrant levy |
Good Service Tax
misapplied the guidelines for determining the sales tax liability on SIM cards, set in the judgment.
According to the guidelines set therein, the Supreme Court had held that intention of the partie |
Broadening Access to Finance: New Dimensions of Development Banking In India
'Financial Inclusion' has become a buzz word in the contemporary socio-economic environment of India. Poverty reduction and social cohesion can only be achieved by providing the poor and vulnerable gr |
