Saturday, December 31, 2011

Refund of service tax to exporters through the Indian Customs EDI System (ICES)


Service Tax Refund (STR) was made available to exporters (other than SEZ Units/Developers) on specified services used for export of goods covered in Notification 17/2009-ST dated 07.07.2009 (as amended) subject to certain conditions.

Now, the Government has introduced a simplified scheme for electronic refunds of service tax to exporters vide Circular No. 149/18/2011-ST dated 16.12.2011 on the lines of duty drawback.  In the new scheme, exporters will have to either opt for electronic refund through ICES system, which is based on the 'schedule of rates' or go for refund on the basis of documents, by approaching the Central Excise/Service Tax formations.

To obtain benefit under the new electronic STR scheme, which is based on the 'schedule of rates', an exporter should :


have a bank account and also a central excise registration or service tax code number and the same should be registered with Customs ICES 1.5 using 'Annexure –A' Form;
declare his option to avail STR on the electronic shipping bill while presenting the same to the proper officer of Customs.  In the 'schedule of rates', to be notified shortly, rates are specified for goods of a class or description.
express his option by mentioning in the shipping bill, chapter/sub-heading number, as applicable to the export goods declared in the shipping bill.  This chapter/sub-heading number should tally with RITC code mentioned in the Shipping Bill against the export goods.   

Eligible refund amount of service tax paid on the specified services used for export of goods declared in the shipping bill will be calculated electronically by the ICES system, by applying the rate specified in the schedule against the said goods, as a percentage of the FOB value.  Minimum STR will be Rupees Fifty for an electronic shipping bill.

Exporters who opt for claiming STR on the basis of documents, through the Central Excise/Service Tax field formations should declare chapter/subheading number as 9801 in the electronic Shipping Bill. 

[Circular No. 149/18/2011 ST dated 16.12.2011]

Settlement commission


Power of review or rectification of its own order is not available to Settlement Commission, held by ChenHC in Agarshans v The Income Tax Settlement Commission and Others — In favour of: The revenue.

The proceedings before the Settlement Commission relates to the settlement of liability and not the determination of liability.

A writ petition is not maintainable against the order of the Settlement Commission, unless the reasoning is abusive or contrary to the provisions of law and is prejudicial to the interest of the assessee.

Decided on: 22 November 2011.

Income


Collection of contingency deposit against payment of sales tax forms part of assessee’s income, held by ChenHC in CIT v Sundaram Finance Limited — In favour of: The revenue (partly).

Depreciation — As and when the assets are installed at the place of the lessee, it could be presumed that they had been used but the lessee is entitled to claim depreciation even when the assets had not yet been put to use.

Decided on: 8 December 2011.

Reassessment


Reopening of assessment on question which was examined in the original assessment proceedings is illegal — held by DelHC in CIT v Expeditors International India Pvt Ltd — In favour of: The assessee.

The assessee can object to the reopening in the appellate proceedings and it is not mandatory that a writ petition should be filed by him.

Additional ground — If the facts and material available with the Tribunal give rise to a pure question of law, then the Tribunal ought not to have any difficulty in entertaining the additional ground.

Decided on: 8 December 2011.

Registration under s 12AA



Merely because assessee was publishing newspapers in regional, national and English languages by establishing necessary facilities for the same, it cannot be made a ground to deny registration under s 12AA where no fault was found with genuineness of the trust — held by ChenHC in DIT v Vallal M D Seshadri Trust — In favour of: The assessee.

A charitable institution, if it is otherwise charitable, cannot be denied registration merely because it had made amendments to its objects in the trust deed.

As far as the amendment made to the trust deed is concerned, it is not the concern of the assessing authority, and only the civil court is empowered to decide the said issue, and in any event that cannot be the reason for denying the charitable nature of the institution, if it is otherwise charitable.

Decided on: 13 December 2011.

Wednesday, December 28, 2011

Return



Filing — If assessee rectifies defect in return even after expiry of fifteen days or further period allowed, but before assessment is made, AO may condone delay and treat return as valid return, held by MumHC in Crawford Bayley & Co v Union of India & Ors — In favour of: The assessee.

The problem has arisen in the present case since for AY 2009–2010 arrangements were not made by the Income Tax Department for the verification of returns uploaded electronically by digital signature. Such an arrangement has now been made from AY 2011–2012.

The Income Tax Department, though, made a provision for the electronic filing of returns; the ITR­V Form containing the due verification of the return of the assessee was required to be remitted only by ordinary post. The assessee has furnished adequate material before the Court in support of its contention that having filed the return electronically, it had also submitted the ITR­V form by ordinary post. The assessee has done so on 5 April 2010, 18 May 2010 and 18 November 2010. The communication issued by the Income Tax Department that the return was not filed is thoroughly misconceived. The order of assessment for AY 2009–2010 has still not been passed. Hence, the provisions of s 139(9) can be fulfilled by permitting the assessee to file a verification of the return before the Assessing Officer within a period of one week from today.

Decided on: 1 December 2011.

Search and seizure



Quashing of warrant of authorisation — In absence of any relevant material with authorities, which would have enabled them to have “a reason to believe” that action under s 132(1) of Act was essential, warrant of authorisation for conducting search is liable to be quashed and consequently notice under s 153A is also bad in law, held by MumHC in Spacewood Furnishers (P) Ltd and Others v DGIT and Others — In favour of: The assessee.

The satisfaction note contemplated under s 132(1) must be based upon contemporaneous material.

Decided on: 9 December 2011.

Business Expenditure



Disallowance under s 14A — Matter remitted to consider issue of disallowance since assessee failed to discharge onus placed upon him in establishing that borrowed funds had indeed been utilised for purpose of their business purposes nor had assessee proved that aforesaid investment had been made in shares out of their own interest-free funds, held by DelTrib in DCIT v Jay Pee Ventures (P) Ltd — In favour of: Others.

Depreciation — Printer, scanner, etc, form integral part of computer system, thus entitled to depreciation at 60%.

Decided on: 7 October 2011.

Deduction under s 80-IB



Filing of an audit report in Form 10CCB for claiming a deduction under s 80-IB.

Cash credits — Where the identity and creditworthiness of the companies who had allegedly paid the share application money and the genuineness of the transaction had not been proved, the AO was justified in making an addition under s 68, as held by MadHC in CIT v AKS Alloys (P) Ltd — In favour of: The assessee.

Decided on: 14 December 2011.

Depreciation



Benefit of s 32 is available only to owner of asset — Since assessee was not owner of machinery, he is not entitled to claim depreciation on machinery bought by it on hire purchase basis and leased by him to third party, held by DelHC in Sai Industries Ltd v ACIT — In favour of: The revenue.

Appeal — High Court, in exercise of powers under s 260A, does not have power to re-examine or re-appreciate facts as first appellate forum/Tribunal, which has jurisdiction to determine and decide questions of fact and law.

Decided on: 28 November 2011.

Exemption under s 10A



The method of headcount followed by the assessee cannot be discarded merely because there can be more than one method of apportioning the common expenses between the STP and non-STP domestic units, particularly when the same has been followed consistently by the assessee in the past and has also been accepted by the department, as held by DelHC in CIT v EHPT India P Ltd — In favour of: The assessee; ITA Nos 1172, 1194/2008.

Appeal — The order of the Tribunal, based on proper reasons and settled principles of law, taking note of all the facts and relevant circumstances of the case, is not liable to be interfered with in an appeal under s 260A.

Exemption under s 10(23C)



Merely because some students have challenged the admission in the medical college run by the trust and the High court declaring certain admissions as illegal would not come in the assessee’s claim for an exemption under s 10(23C), particularly when the SLP against such an order is pending before the Apex Court and where the assessee has been granted an exemption in subsequent years, as held by RajHC in Geetanjali University Trust v CCIT and Anr — In favour of: The assessee; SB Civil Writ Petition No 11799/2010.

Decided on: 24 November 2011.

Business expenditure




The expenditure incurred on maintenance and repair on the personal property cannot be set-off and allowed as business expenditure under s 37, as held by DelHC in Mira Kulkarni v ACIT — In favour of: The revenue; ITA 199/2010.

Where the assessee failed to show that expenses incurred were wholly and exclusively for the purposes of the hotel business, the same cannot be allowed under s 37(1).

Personal expenses cannot be allowed as an expense and have to be specifically excluded, as they are not deductible.


The appellant is an individual and a part owner of a property situated at Anand Kashi Farms, a portion of which is being used as a hotel, pursuant to an agreement with Neemrana Hotels Private Limited. The assessee alleged that it had incurred expenditure which was relevant for the maintenance and running of the hotel and claimed a deduction under s 37.

The assessee could not produce evidence and material to substantiate her claim that she had incurred expenditure which was relevant for the maintenance and running of the hotel. The Tribunal has specifically recorded that 75% of the property was in the personal use of the appellant and the expenditure incurred on maintenance and repair on the personal property cannot be set-off and allowed as business expenditure under s 37 of the Act. Further, the reply given by M/s Neemrana Hotels Private Limited (NHPL), the other party to the agreement, clearly and categorically stated that as per the agreement, they were liable to carry out repair and maintenance of the property used for the hotel, the property was jointly used by both parties, as per the enclosed map, and open spaces were used by the appellant to grow agricultural produce. It was further stated that no new construction was carried out during the financial year 2002–2003, which is relevant to the assessment in question. In case the appellant wanted to take a contrary stand and explain the said reply, it could have obtained necessary clarification from NHPL and filed it before the authorities. NHPL is the business partner of the appellant. Thus, the Tribunal was justified in disallowing the assessee’s claim of business expenditure.

Decided on: 16 December 2011.

Refund




If an issue is decided in favour of the assessee giving rise to a refund in an earlier year, that refund cannot be adjusted under s 245 on account of the demand on the same issue in a subsequent year, as held by DelHC in Maruti Suzuki India Limited v Dy CIT — In favour of: The assessee; Writ Petition (Civil) No 2252/2011.

The word “recovery” is comprehensive and includes both coercive steps to recover the demand and the adjustment of a refund to recover the demand. An adjustment under s 245 of the Act is a form/method of recovery.

The conduct and action of the revenue in recovering the disputed tax in respect of additions on issues already covered against them by earlier orders of the ITAT or CIT (Appeals) is unjustified and contrary to law. Accordingly, directions were issued to refund tax.


Recovery — Section 220(6) has no application to a case where an appeal is filed before the Tribunal, though the Tribunal has inherent power to grant the stay.

Decided on: 25 November 2011.

Section 194C vis-à-vis s 194-I





The contract for transportation in respect of chartering a helicopter/aircraft does not attract TDS under s 194-I and TDS is liable to be deducted under s 194C, as held by MumTrib in SKIL Infrastructure Ltd v ITO — In favour of: The assessee.

When the running and maintenance expenditure of a vehicle is borne by the transport service providers and the assessee does not enjoy control over the vehicle, the contract is merely for availing of transportation services and is not covered by s 194-I.

Decided on: 31 October 2011.

Appeal




Findings of facts which do not give rise to a substantial question of law are not liable to be interfered with in an appeal under s 260A, as held by PHHC in CIT, Ludhiana v Ashok Kumar Dhir — In favour of: The assessee; ITA No 598 of 2010 (O&M).

Undisclosed income — Unexplained investment — Where the Commissioner has recorded findings of facts that the five persons in whose name the investment was alleged to be made were genuine partners, an addition made on account of an unexplained investment is unsustainable.

Decided on: 8 December 2011.

Exemption under s 10(23C)




The assessee, Delhi Music Society, teaching and promoting all forms of music and dance, western, Indian or any other, is entitled to an exemption under s 10(23C), as held by DelHC in Delhi Music Society v Director General of Income Tax — In favour of: The assessee; WP (C) No 4726/2011.

An educational institution, to be eligible for an exemption under s 10(23C), is not required to be affiliated to any university or any board.

The word “education” is not only confined to scholastic instructions. Other forms of education are also included under the word “education”.

Decided on: 16 December 2011.

Notification F.No. 1-10-2011-NS-II dated 25 November 2011 & Notification F.No. 1-12-2011-NS-II, dated 25 November 2011


Notification F.No. 1-10-2011-NS-II dated 25 November 2011
It is notified for general information that the sale of Kisan Vikas Patras shall be discontinued
with effect from the close of business on Wednesday, the 30th November, 2011.


Notification F.No. 1-12-2011-NS-II, dated 25 November 2011

In exercise of the powers conferred by clause (1) of article 283 of the Constitution, the President
hereby makes the following further amendments in the National Small Savings Fund (Custody
and Investment) Rules, 2001, namely:-


1. (1) These rules may be called the National Small Savings Fund (Custody and Investment)
Amendment Rules, 2011.
(2) They shall come into force on the 1st day of December 2011.

2. In the National Small Savings Fund (Custody and Investment) Rules, 2001, in rule 9,-
(a) In sub-rule (1),-
(i) after the words "State Government Securities", the words "or in any other
instrument" shall be inserted;
(ii) proviso shall be omitted;
(b) For sub-rule (10), the following shall be substituted, namely:-
"(10) The amount received on maturity of the investments shall be invested in the
Central Government and State Government securities. Such securities shall be
issued in accordance with the provision contained in sub-rule (3). Suitable
accounting entries as mentioned in sub-rule (5) and sub-rule (6) shall be made by
the Chief Controller of Accounts, Ministry of Finance".

Thursday, December 8, 2011

Pressure mounts on RBI to cut CRR in December review


With the liquidity situation becoming tighter and inflation on the decline, the financial markets are expecting a reduction in the cash reserve ratio (CRR) — portion of bank deposits kept with the RBI — by the Reserve Bank of India to ease the money crunch in the banking system. The CRR has been left unchanged at 6 per cent since May 2010. However, the policy rates have been raised 13 times during the same period with the central bank last raising the repo rate by 25 basis points to 8.50 per cent in October 2011. As the last date for payment of advance tax is due on December 15, pressure is mounting on the RBI to cut CRR by 25-50 basis points in its mid-quarter monetary policy review on December 16. In a bid to tide over the tight liquidity situation, the RBI on Monday announced that it will purchase government securities worth Rs 10,000 crore on Thursday through Open Market Operations (OMO).

Source : Indian Express

MMRDA gets Rs55cr tax notice


The cash-strapped agency, Mumbai Metropolitan Region Development Authority (MMRDA), has come under the scanner of the income tax (I-T) department over acquisition of government land and subsequent rehabilitation of the project-affected persons (PAPs). The I-T department has deemed these two activities as taxable and slapped a Rs55 crore notice on the planning agency. The agency had acquired the said land and built houses on it, which it later gave to those people who were displaced because of its ongoing infrastructure projects in the city. "We have received a tax notice from the I-T department which wants us to pay the tax deducted at source (TDS) for the government land that we had acquired and also for the houses, which we had constructed and later gave to the project-affected people," metropolitan commissioner Rahul Asthana said on Tuesday.

Source : Hindustan Times

Direct tax code to come into force in April 2012: Pranab Mukherjee


Finance Minister Pranab Mukherjee on Wednesday expressed the hope that the Direct Taxes Code ( DTC), which seeks to modernise tax laws in the country, will come into force from April 1, 2012. "The proposed Direct Taxes Code brings together the policy initiatives on direct taxes. It is slated to come into force from the next financial year," he said while addressing an international conference on 'Tax and Equality'. In a bid to modernise the tax system, the government has proposed to replace the Income Tax Act, 1961, with a new legislation. With regard to indirect tax reforms, the minister said, "We are moving toward an economy-wide, generalised value-added tax system of Goods and Service Taxes (GST) at all levels in the country."

Source : Economic Times

Powers of Tribunal


The President of the ITAT has no power or authority to write the ACRs of the Members, as held by ChenHC in Uttam Bir Singh Bedi v UOI and Others — In favour of: The assessee; Writ Petition No 7715 of 2010 and MP No 3 of 2010.

The post of Vice President is a promotional post to that of the Member of the Tribunal.

Decided on: 30 November 2011.

Income from house property


Annual Letting Value (ALV) for purpose of s 23 — Once the property is outside the purview of the Delhi Rent Control Act, 1958, the ALV of the property cannot be determined with reference to the standard rent determinable under the Delhi Rent Control Act and rateable value, if correctly determined under the municipal law, can be taken as the ALV under s 23(1)(a) as held by DelHC in CIT v Fizz Drinks Ltd — In favour of: Others; ITA No 412/2005.

Notional interest on interest-free security cannot be taken as determinable factor to arrive at fair rent.

The matter was remitted to the AO to determine the ALV of the property, considering the decision of the Full Bench in the case of Commissioner of Income Tax v Moni Kumar Subba.

Decided on: 23 November 2011.

Business receipt


Capital receipt — High Court directed to decide issue whether sales tax subsidy is a capital receipt as held by SCI in CIT v Reliance Industries Ltd — In favour of: The revenue; Civil Appeal Nos 7769–7770, 7771 of 2011.

Dividend income — High Court directed to decide whether estimated expenditure for earning dividend income cannot be subject to disallowance while computing book profits as well as under the normal provisions of the Income-tax Act.

Decided on: 9 September 2011.

Friday, December 2, 2011

‘Foreign healthcare services companies not liable for tax’


Foreign healthcare services firms are not liable for tax in India as payments for such services cannot be construed as royalty, according to a ruling by a Mumbai tax tribunal. The order by the Income Tax Appellate Tribunal (ITAT) was in response to the income tax department's position that foreign healthcare services firms are giving services such as providing technical skills, right to use logos, etc. Thus the payment they get from Indian companies is "royalty" that is taxable in the country.

Source : economictimes.indiatimes.com

Banks can now open branches in Tier 2 cities without RBI nod


The Reserve Bank relaxed branch authorisation policy, allowing banks to open administrative office or service branch in cities with population of over 50,000 but less than 1 lakh without its approval. "Now that general permission to banks has been extended for opening of branches in Tier 2 centres, domestic scheduled commercial banks (other than RRBs) will be allowed to open administrative offices and central processing centres (CPCs) or service branches in Tier 2 centre (with population 50,000 to 99,999 as per Census 2001)," the RBI said in a notification.

Source : economictimes.indiatimes.com

Private debt placements fall to Rs 1.02 lakh crore in H1-FY12


A high interest rate regime seems to be affecting the companies' appetite for raising capital through private placement of debt securities or bonds, as the quantum of such funds dropped by 12 per cent in the first half of the current fiscal. According to data compiled by Prime Database, Indian firms mopped-up Rs 1,02,590 crore through 96 debt private placements during April-September period of current fiscal, down from Rs 1,16,524 crore mobilised in the year-ago period.

Source : Economic Times

Rupee fell record 7% in November


The rupee suffered the worst fall in 16 years in November, plunging nearly seven per cent and hitting a record low, as persistent dollar demand from importers and portfolio outflows due to global risk aversion pounded the local unit. The rupee continues to face further depreciation threats on the back of a gaping current account deficit and slowing growth. The worst performer among its Asian peers, the rupee has lost 6.7 per cent during the month, taking its fall so far in 2011 to 14.37 per cent. On Wednesday, it closed at 52.20/21 per dollar, 0.35 per cent weaker than Tuesday's close, recovering from the day's low of 52.42 after China cut its banks' reserve requirement ratio by 50 basis points, which aided global risk appetite.

Source : Business Standard

Capital gains


For the purposes of s 2(47), in property matters, a transfer shall be deemed to be effected on the date on which the sales deed was registered and the capital gain was liable from the date of registration of the sales deed, as held by DelTrib in ACIT v Bishan Lal [HUF] and Anr — In favour of: The revenue.

Interest under 234A, 234B and 234C — The charging of interest under s 234A, 234B and 234C is mandatory in nature.

If the AO has charged interest in the ITN-150 while computing tax, the assessee’s contention that the AO did not charge interest specifically in the body of the order is not maintainable.

Appeal — The CIT(A) had jurisdiction under s 246A to decide the appeal relating to the levy of interest.

Where the revenue has raised a substantial question of law, the monetary limit for filing the appeal before the Tribunal will not be applicable.

Decided on: 30 August 2011.

Registration under s 12AA


Charitable trust — The principles laid down for excluding the income from consideration under s 10(23)(C) or ss 11 and 12 are not applicable while considering the application for registration under s 12AA — as held by PHHC in CIT v Surya Educational & Charitable Trust and Anr — In favour of: The assessee.

The Commissioner is empowered to examine the genuineness of the objects of the Trust, but not the income of the Trust, for charitable or religious purposes while granting Registration under s 12AA.

The Trust or the Institution in not required to start all its envisaged activities in the first year itself for the grant of Registration under s 12AA.

Decided on: 5 October 2011.

Income Tax relief to World Cup devoid of merit says Parliament Panel


The Parliament’s standing committee on finance has said the Rs 45 crore tax exemption extended to the International Cricket Council (ICC) for the World Cup was “unjustified and devoid of merit”. The committee also said that it is not convinced about the tenability of the tax exemption given to the ICC as the World Cup had received huge sponsorships and was patronised by the corporate sector in a big way.

The reports also said that the leniency of the IT department allowed the BCCI to enrich its coffers at the expense of the exchequer. The report also said the it was quite evident that the IT department has been rather inconsistent in bringing BCCI into the taxability net. The committee said that the department should consider levying penalty and interest while collecting tax from the BCCI.


[Source: The Times of India]

PIB Press Release, Setting up of Biotechnology Industry Research Assistance Council


The Union Cabinet today approved the setting up of "Biotechnology Industry Research
Assistance Council (BIRAC)" as 'not-for-profit' section 25 company with a vision to
stimulate, foster and enhance the strategic research and innovation capabilities of the Indian
biotech industry particularly SME's, to make India globally competitive in biotech innovation
and entrepreneurship and to create affordable products and services.

BIRAC will operate with a core budget for its regular activities and recurring expenses for
human resources and operational cost with an initial outlay of Rs.70 crore for two years.

BIRAC is being set up as a separate body for supporting product innovation and providing
required infrastructure and services at different stages of the value chain for promoting
innovation and product development.

BIRAC will provide funding/investment for
• Early and late stage, including Small Business Innovation Research Initiative (SBIRI),
Biotechnology Industry Partnership Programme (BIPP) and Ignition grant.
• Technology transfer and acquisition in national priority areas
• Technology development - incubators, parks

It will also provide support services such as IP facilitation, legal and contracts, regulatory and
clinical trail facilitation; mentoring and capacity building.

The company would function as the Government's, inter-phase agency for supporting
industry -academia interaction, which will service as a single window for the emerging
biotech industry through which they can acquire knowledge, access world class RandD
infrastructure, access rate limiting serious technologies and seek technical problem solving
help regulatory advice.


Background:
The proposal for setting up of an innovation support organisation - Biotechnology Industry
Research Assistance Council (BIRAC) will address the felt need in the government system
for providing a comprehensive enabling environment and technology related service package
to promote, nurture and support medium and high level innovation in biotech research. This
would be particularly useful for small and medium size companies, and also support and
facilitate creation of new start-ups.

Reassessment



The requirement of “new material” coming in possession of the AO as a prerequisite for the reassessment is applicable only where he made an assessment earlier — as held by MumTrib in ACIT v Maersk Global Service Center (India) P Ltd — In favour of: The assessee.

Transfer pricing — Arm’s length principle — If the TPO wants to exclude any of such comparables given by assessee, he has to justify the exclusion by adducing cogent reasons in absence of same, a presumption has to be drawn that those cases are comparable.

The Departmental Representative, while arguing the appeal, cannot improve the order of the AO/TPO by contending that the TPO was wrong in accepting a particular claim of the assessee.

Decided on: 9 November 2011.

Direct Tax Notification, Dated: 25-11-2011 [F.No. 1-12-2011-NS-II]




Notification regarding authorised Standardised Agency System (SAS) and Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) for canvassing/securing investments in the small savings schemes

The Central Government hereby notifies that the authorised Standardised Agency System
(SAS) and Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents for
canvassing/securing investments in the small savings schemes as per the terms of agreement
executed by them under the Standardised Agency System (SAS) and Mahila Pradhan
Kshetriya Bachat Yojana (MPKBY) will be paid commission at the rate indicated below:

(A) Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) Rate
(i) Five-Year Recurring Deposit Account - 4%
(B) Standardised Agency System (SAS)
(i) One-Year Time Deposit - 0.5%
(ii) Two-Year and 3-Year Time Deposit - 0.5%
(iii) Five-Year Time Deposit - 0.5%
(iv) Monthly Income Account Scheme - 0.5%
(v) Five/Six-Year National Savings Certificate (VIII-Issue) - 0.5%
(vi) Ten-Year National Savings Certificate (IX-lssue) - 0.5%

2. Payment of commission on Public Provident Scheme (1%) and Senior Citizens Savings
Scheme (0.5%) shall be discontinued.

3. Incentive, if any, paid by State/Union Territory Governments shall be reduced from
commission paid by the Central Government.

4. These instructions shall take effect from the 1st day of December, 2011.

PIB Press Release, Dated: 26-11-2011



India and Nepal to Sign Revised Double Taxation Avoidance Agreement; Finance Minister to Leave for a Day’s Visit to Nepal Tomorrow

Double Taxation Avoidance Agreement (DTAA) between India and Nepal will be signed
tomorrow by the Finance Ministers of both the countries in Kathmandu. This Agreement
(DTAA) would replace an earlier Agreement between two countries which was signed way
back in 1987. The Union Finance Minister Shri Pranab Mukherjee will be visiting Nepal on a
day's visit tomorrow at the invitation of the Finance Minister of Nepal Shri Barshaman Pun
'Ananta'. During his visit, the Finance Minister Shri Mukherjee will also call on the Rt
Hon'ble President and Rt Hon'ble Prime Minister of Nepal.
During the visit, the two Finance Ministers will also exchange views on the further
development of bilateral relations and review the progress on implementation of the action
plan agreed upon during the last visit of the Prime Minister of Nepal to India on October 21,
2011.

Notification, Dated: 25-11-2011 [F.No. 1/9/2011-NS-II]

Section 3 of the Public Provident Fund Act, 1968 (23 of 1958) — Amendment to the Public Provident Fund Scheme, 1968

Section 3 of the Public Provident Fund Act, 1968 (23 of 1958) - Amendment to the
Public Provident Fund Scheme, 1968

In exercise of the powers conferred by sub-section (4) of section 3 of the Public Provident
Fund Act, 1968 (23 of 1958), the Central Government hereby makes the following further
amendment to the Public Provident Fund Scheme, 1968, namely :-

1. (1) This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2011.
(2) It shall come into force on the 1st day of December 2011.

2. In the Public Provident Fund Scheme, 1968, -
(i) in paragraph 3, in sub-paragraph (1), for the letters and figures “Rs 70,000/-”, the letters
and figures “Rs 1,00,000 shall be substituted;

(ii) in paragraph 11, in sub-paragraph (2), for the words “one per cent, per annum”, the words
“two per cent, per annum” shall be substituted;

(iii) in Form-A, in paragraph (iv), for the letters and figures “Rs 70,000/-”, the letters and
figures “Rs 1,00,000 shall be substituted.

 
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Farm House Plots for Sale


11000 Sq.ft. developed / under development farm house plots for Sale at Morgaon (Supa) near Morgaon Ganesh Temple only for Rs.15 Lacs.... Contact; Atul Karnawat on 9823479955 or Saideep Bagrecha on 7757888883 / 9823979955