Buyback - A closed door?

Share buyback has been one of the most favored routes of the MNC’s for repatriating profits from their Indian arm. With government of India proposing to tax buyback of unlisted equity shares as dividend in the finance bill 2013, literally one could imagine all the MNC rushing to run past the door that is closing on them. A per the double tax avoidance treaty that India has with Mauritius and...

Highlights in Cenvat Credit Rules

Earlier pre-budget articles in this column had addressed the various expectations with respect to CENVAT credit on capital goods, disparity in various provisions of the Central Excise Act and in service tax law. Compared to these expectations, Budget 2011 has made some very radical changes to various provisions of the CENVAT Credit Rules 2004 (Credit Rules). These amendments have been made effective...

Budget 2011 - Service Tax

A text of the Amendments in Service tax is reproduced Below 184. The actual collections of Service Tax do not reflect the full potential of this sector. While retaining the standard rate of service tax at 10 per cent, I seek to achieve a closer fit between the present service tax regime and its GST successor by: - Bringing in a few new services into the tax net to expand the tax base while ensuring...

Key Points - Budget 2011

Policy   Focus on - Moderate taxes and easier collections DTC - Government committed to DTC introduction from 1 April 2012 – Inputs from Parliamentary Standing Committee to be incorporated soon in the bill Tax free bonds of Rs 30,000 crores for infrastructure sector Focus on E-Governance through Online tax returns, online payment of taxes, tax refunds, TDS  returns Separate online...

Why people dont like Term Insurance and why they are wrong

Why people don't like Term Insurance is the question , The answer is simple, because you don't get anything if you survive the whole tenure and hence the amount paid as premium is wasted , this is claimed by millions . Fair enough . The first thing is , these people do not understand or appreciate the Importance of Life Insurance . Now lets see this situation from a different angle . Assume you get...

Renting of Immovable property

Delhi High Court in Home Solutions Retail India Ltd (latest decision post Shubh Steels): It was argued that Section 65(105)(zzzz) of the Act cannot really cover mere renting of immovable property in the net of service tax. It is averred that in the earlier definition of the said provision words used in relation of renting of immovable property were 'for use in the course or furtherance of business...

All About SIP's

How must I start investing via a SIP? Do I need a demat account? The maximum I can invest is Rs 2,000. Please suggest an equity fund. An SIP is the most convenient and efficient way to invest in a mutual fund. SIP is an acronym for Systematic Investment Plan. That means you invest fixed amounts at pre-determined periods in your mutual fund. Depending on the net asset value (NAV) on the date of your...

China cuts rare earth export quotas

China cuts rare earth export quotas China cut its first batch of rare earth export quotas for next year by more than one-tenth, in the face of a threat by the United States to complain to the World Trade Organization over the export limits. China's Commerce Ministry allotted 14,446 metric tons of quotas to 31 companies, which was 11.4...