CBDT in a fix over the application of one safe harbour rate to all sectors

The Central Board of Direct Taxes (CBDT) is in a fix over the application of one safe harbour rate to all sectors. A committee, formed last month to frame safe harbour rules as announced in the 2009-10 Budget to minimise transfer pricing disputes, has estimated that there is a huge difference in the margins of companies which would come under the ambit of safe harbour.

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e-704 frequently asked questions

Department of Sales Tax, Government of Maharashtra

Q 1. : What is Audit Report in Form 704?

Ans : It is a report under section 61 of MVAT ACT, 2002 to be submitted by eligible dealer within 10 months of the end of a particular financial year.

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Joint committees at states level will be formed for inputs on the proposed GST

The Empowered Committee of State Finance Ministers will form joint committees at the level of the states for inputs on the proposed goods and services tax before its planned introduction next year.“A joint committee at the level of the states will be made and that will be a part of the exercise for preparation to implement GST. The committee will be made along with other representatives of state associations and industry associations,” chairman of the empowered committee Asim Dasgupta said after a meeting with the Confederation of All India Traders.

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Interpretation of Accounting Standard’s issued by ICAI in brief

Accounting Standard Interpretation (ASI) 1

Substantial Period of Time

Accounting Standard (AS) 16, Borrowing Costs

Issue

  1. Accounting Standard (AS) 16, Borrowing Costs, defines the term ‘qualifying asset’ as “an asset that necessarily takes a substantial period of time to get ready for its intended use or sale”.

  2. The issue is what is the meaning of the expression ‘substantial period of time’ for the purpose of this definition.

Consensus

  1. The issue as to what constitutes a substantial period of time primarily depends on the facts and circumstances of each case. However, ordinarily, a period of twelve months is considered as substantial period of time unless a shorter or longer period can be justified on the basis of facts and circumstances of the case. In estimating the period, time which an asset takes, technologically and commercially, to get it ready for its intended use or sale should be considered.

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