Capital gain tax on Transfer of redevelopment rights?
Dec 17, 2009 Income Tax Case Laws
Background
- As per the Development Control Regulations of the Municipal Corporation of Greater Bombay, 1991 (‘DCR’), in the case of redevelopment of existing buildings, an additional FSI is granted tothe land owner.
- The additional FSI can be utilised in the following manner:
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Tags: acquisition capital, capital asset, capital assets, co op housing, fsi, housing society, income tax act, income tax act 1961, independent developer, negotiable instrument, section 55, society ltd, tax implications, tribunal decisions
Transfer Pricing Management fees : Are you following the best practices? Part I
Dec 8, 2009 Income Tax
1.0 Introduction : One of the most widely contested issues by Indian tax authorities during a transfer pricing audit is the amount paid for intra-group services to group companies often referred to as management or intra-group fees/charges. In fact, compensation for intra-group services has been one of the important transfer pricing challenges globally for taxpayer and authorities alike.
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Tags: company affairs, group companies, group company, group fees, group management, group services, indian group, indian perspective, indirect tax, inter company, management fee, management fees, multinational enterprise, regulatory issues, tax authorities, tax implications, tax jurisdiction, tax levies
Convergence with IRFS only after addressing concerns of the industry
Nov 27, 2009 Accounting
Making clear its commitment to converge Indian accounting norms with International Financial Reporting Standards (IFRS) by 2011, the government on Wednesday said all concerns of the industry would be addressed before convergence takes place. “We stand by our commitment to converge the Indian accounting norms with the IFRS and have synchronised the views of all stakeholders,” corporate affairs ministry secretary R Bandyopadhay said at a CII event.
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Tags: Accounting, affairs ministry, chartered accountants of india, corporate affairs, financial reporting standards, IFRS, institute of chartered accountants, institute of chartered accountants of india, insurance, INTERNATIONAL FINANCIAL REPORTING STANDARDS, irfs, ministry secretary, rbi act, syllabus, tax act, tax implications
Tax implications of ‘employee secondment’ contracts : ITAT Bangalore
Mar 13, 2009 Income Tax, Income Tax Case Laws
IDS Software Solutions vs. ITO (ITAT Bangalore)
Where the assessee entered into a ‘secondment agreement’ with a US Company and obtained the services of an employee and the question arose whether the reimbursement by the assessee to the US Company of the salary paid by the US Company was chargeable to tax as “fees for technical services” HELD:
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Tags: emoluments, Employee secondment contracts, itat, secondment agreement, software solutions, tax implications, technical person
Ramalinga Raju had 50 bank accounts in 2002
Jan 18, 2009 Satyam
The Income Tax (I-T) department has recalled a 2002 investigation report against the promoters of Satyam that had details of a probe conducted by I-T sleuths on family members and associates of B Ramalinga Raju in Hyderabad.
Not believing the confession of Raju that the company was left with no cash, and with investigations pointing to forgery of books of account to show bank balances and profits , the authorities are taking a relook at the six-year-old probe that had unearthed more than 50 bank accounts in the name of Raju’s family members and alleged fronts.
Sources said that the authorities in the finance ministry don’t rule out the possibility that Rajus could have allegedly indulged in insider trading in the shares of his company using these front
entities and bank accounts. In 2002, the Rajus’ admissibility to the 50-odd bank accounts having more than Rs 20 crore as deposits had yielded the department a handsome tax bounty.
Other records available with the Tax department have also been recalled to look into the finances of Satyam and its group companies. The department will have a fresh look into the tax implications after the reconstructed and authenticated accounts are made available to it by the government-appointe d auditors KPMG and Deloitte, sources said.
Tax sleuths are also set to examine the accounts of the other group companies of Satyam Computers, especially the real estate and infrastructure firms floated by the Rajus. The fact that the promoters of the beleaguered IT company have landholdings of more than 7,000 acres in and around Hyderabad raises suspicion of a possible diversion of money.
Maytas Infrastructure, run by Satyam founder’s elder son B Teja Raju, had bagged projects worth more than Rs 30,000 crore in Andhra Pradesh, Maharashtra and some other states. The controversial Rs 12,000 crore Hyderabad Metro project was also awarded to Maytas amid allegations of favouritism.
Known for their proximity to many politicians, the Raju-floated Maytas had also cornered several infrastructure projects in the Marathwada and Vidarbha regions of Maharashtra.
On Wednesday, the politburo of the CPM issued a statement calling for examination of the entire business operations of Maytas Infra Ltd and Maytas Properties Ltd, the two real estate and infrastructure development companies owned by the Satyam promoters.
The CPM politburo pointed out how the government overlooked a warning sounded out by Delhi Metro Rail Corporation MD E Sreedharan in September 2008 on the “hidden agenda of the developer to grab hundreds of acres of public land for its commercial exploitation in guise of the metro project”.
Tags: accountants, Auditor, b ramalinga raju, books of account, confession, Finance, finance ministry, Insider Trading, KPMG, MAYTAS, PWC, ramalinga, Satyam, tax implications