Clarification on Rollback provisions of APA
19 June, 2015
Advance Pricing Agreement (‘APA’) Scheme was introduced in the statute in 2012, which authorizes the CBDT to enter into agreement with the taxpayers, prescribing the arm’s length price (ALP) for international transaction which have been undertaken (which are continuous in nature) and those to be entered into between related parties in t...
EOUs – FTP provisions incorporated in Excise notifications
15 June, 2015
Notification Nos. 22/2003-C.E. and 23/2003-C.E. have been amended by Notification No. 28/2015-C.E., dated 15-5-2015 to reflect the new Foreign Trade Policy 2015-20 notified by the Ministry of Commerce on 1st of April. Some of the important changes are,
EOUs have been allowed to return, without payment of duty, capital goods tra...
Transfer Pricing – Applicability to third party transactions
11 June, 2015
To come within the ambit of transfer pricing, there has to be an international transaction. The two requirements of international transaction are that there must be a transaction between associated enterprises and either or both parties should be non-residents (prior to the amendment by Finance Act, 2014). In an interesting decision [Novo ...
ADD – Inclusion of non-cooperating producers in Domestic industry
8 June, 2015
European Union’s Court of Justice has upheld the investigation authority’s conclusion of including non-cooperating domestic manufacturers in the definition of domestic industry for the purpose of injury analysis. Further, noting that provisions under Article 4(1) of the EU’s Basic Regulations [Definition of ‘domestic industry&...
WTO reviews India’s trade policy
8 June, 2015
India’s trade policy is under review by the WTO for the sixth time. According to the report by the WTO’s Secretariat, though India continued its efforts to liberalize and facilitate trade, its tariff structure remains complex. It further states that the trade regime is less predictable as constantly notifications are being issued by DGFT ...
ITAT can extend stay beyond 365 days
22 May, 2015
Does the Income Tax Appellate Tribunal (ITAT) have power to extend stay beyond 365 days? The Delhi High Court in Pepsi Foods Pvt. Ltd v. ACIT, WP(C )1334/2015 decided on 19-5-2015 held that when the delay in disposing of the appeal is not attributable to the assessee, the Tribunal has the power to grant extension of stay beyond 365 days.
Manufacture & excise – Supreme Court lays down guidelines
22 May, 2015
Supreme Court of India has recently delivered three important judgments relating to the question as to whether the process followed by the assessee amounts to ‘manufacture’ for the purpose of imposition of Central Excise duty, which is levied in India on manufactured goods.
No ‘manufacture’ in sterilization of syring...
New Service Tax rate of 14% applicable from 1st June, 2015
22nd May, 2015
Service Tax levied in India on all services, except a few as listed in the negative list of services, will be applicable at the rate of 14%, instead of 12%, with effect from 1st of June, 2015. However, both the Education Cesses, i.e. Education Cess and Secondary & Higher Education Cess, have been abolished, from such date in respect of all the services.
Finance Act, 2015 comes into force
18 May, 2015
Finance Bill, 2015 has received President’s Assent and Finance Act, 2015 (20 of 2015) is in force from 14 May, 2015.
Major amendments include amendment to Section 28 of the Customs Act, 1962 to provide for non-imposition of penalty if duty with interest is paid within 30 days of receipt of show cause notice. The new provisions, relevant in case o...
Transfer of right to use trademark – Liability under Maharashtra Sales Tax
16 April, 2015
Bombay High Court has held that the amount received by the assessee on transfer of right to use the trademark would be liable to be taxed under “Maharashtra Sales Tax on the Transfer of the Right to use any Goods for any Purposes Act, 1985”. The assessee (Tata Sons Ltd.) had entered into a ‘Brand Equity and Business Promotion Agreement’ which provided detailed guidelines for us...
New service tax rate not yet in force – CBEC clarifies
16 April, 2015
CBEC has clarified by Circular No. 183/02/2015-S.T., dated 10-4-2015 that the new rate of service tax i.e. 14% shall come into effect from a date to be notified by the Central Government after the enactment of the Finance Bill, 2015. This date for new rate will be notified in due course after enactment.
It has been further clarified that no change has been made in Rule 2C of ...
India announces new Foreign Trade Policy
1 April, 2015
With the aim of doubling India’s export of merchandise and services by the year 2020, the Indian Commerce and Industry Ministry has today (1-4-2015) announced the new Foreign Trade Policy 2015-2020 (FTP).
According to the FTP statement, the Policy seeks to accelerate exports through various schemes intended to exempt and remit indirect taxes on inputs physically incorporated i...
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