tag:blogger.com,1999:blog-36545510383925766082024-02-19T10:27:47.651+05:30Articles - Icwa PortalStudy.... Learn..... Share.....Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.comBlogger72125tag:blogger.com,1999:blog-3654551038392576608.post-9687813514063100492014-07-19T18:19:00.000+05:302014-07-19T18:19:00.894+05:30Central Council of Cost Accountants of India resigns<div dir="ltr" style="text-align: left;" trbidi="on">
Read more at: <a href="http://economictimes.indiatimes.com/industry/services/consultancy-/-audit/central-council-of-cost-accountants-of-india-resigns/articleshow/38643293.cms" target="_blank">http://economictimes.indiatimes.com/industry/services/consultancy-/-audit/central-council-of-cost-accountants-of-india-resigns/articleshow/38643293.cms</a><br />
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<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">MUMBAI/KOLKATA: The row over the Cost Audit Rules introduced under the Companies Act has reached a flash point as the entire central council of the Institute of Cost Accountants of India (ICAI) submitted its resignation to Finance Minister Arun Jaitley, who also has the charge of the corporate affairs ministry.</span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">The cost-audit mechanism-which is designed to establish the link between cost of inputs such as raw materials, labour and power and price of a product - can effectively </span><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">counter profiteering and crony capitalism, according to the practicing professionals. </span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br />
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">But the new Companies Act curtailed the profession's scope, by removing a number of industries from its purview and raising the net-worth threshold for a company to be audited for cost to Rs 500 crore from Rs 5 crore. The institute had claimed that the Ministry of Corporate Affairs (MCA) had kept it away from consultation while formulating the rules. It is now hoping for a respite as the finance minister, busy with the Union budget exercise currently, assured to meet its representatives over th .. </span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br />
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">We were able to meet the Hon-'ble Minister briefly... He has asked his office to arrange a meeting with MCA officials and institute members by next weekend," said Suresh Chandra Mohanty, president of ICMAI. The council's members submitted their resignations on Wednesday.</span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">Although MCA officials say a consultative mechanism of stakeholders was constituted and feedback of stakeholders was considered for framing these rules, the institute maintains it was never informed. </span><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">"These rules were imposed upon us without consulting. No rules committee was officially notified, and our representations were ignored," said Mohanty. MCA officials didn't respond to emails seeking comment.The institute has been demanding to put the Companies (Cost Records and Audit) Rules 2014 in abeyance until the issues are resolved and allow the Cost Rules introduced in 2011 and 2012 to continue, but to no avail.</span><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;"> </span><br />
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<span style="background-color: white; font-family: Arial, Helvetica, sans-serif;">The cost institute hasn't been able to generate support from fellow professional institutions. A central council member of the Institute of Chartered Accountants of India, S Santhanakrishnan, said: "The Companies Act 2013 cannot be an employment guarantee scheme. Cost accounting profession can easily establish its relevance by their intrinsic worth." </span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></div>
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<span style="background-color: white; font-family: Arial, Helvetica, sans-serif;">He further added: "Why can't we focus on cost accounting rather than cost audit. The industry is keen to know the cost details but is not comfortable sharing the same with the public. For example, cost audit of an outsourcing business will only disclose all the cost incurred and will reduce business opportunity for the firm and therefore, for the country." V Murali, another central council member of Institute of Chartered Accountants, said the mass resignation would only weaken the bargaining </span><span style="background-color: white; font-family: Arial, Helvetica, sans-serif;">power of the Institute of Cost Accountants of India.</span></div>
<br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">FICCI believes the new cost rules are progressive. Hence it is disappointing that, while not wishing to align with contemporary realities, detractors in the profession are quick to allege unknown "influencers" in an effort to create ambiguity and suspicion. One reasonably expects mature voices in the profession to come forward and decry misinformation and pressure, to avoid creating a negative atmosphere. </span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /><br /><div>
<span style="background-color: white; font-family: Arial, Helvetica, sans-serif; font-size: 12px;">A former president of Institute of Company Secretaries of India, however, expressed his sympathy with cost audit professionals. "The entire Rule making process by MCA was not what it ought to have been in terms of transparency and procedure," this person said, asking not to be named. "Even the ICSI members were surprised with the final rules applicable to their services, which had curtailed their scope substantially ." But the government later restored the balance for the profession, he said. </span><br style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" /></div>
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Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com1tag:blogger.com,1999:blog-3654551038392576608.post-90285760938199351512014-06-22T18:18:00.000+05:302014-06-22T18:18:38.531+05:30New EPFO Notification & Supreme court ruling<div dir="ltr" style="text-align: left;" trbidi="on">
Courtesy : http://wealth18.com/<br />
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As per new EPFO Notification, Employees earning upto Rs 15,000 a month will come under the<br />
Employees’ Provident Fund (EPF) net.<br />
Government has approved hike in the threshold for mandatory PF savings from Rs 6,500 a<br />
month to Rs 15,000.<br />
Though the Manmohan Singh government had approved the hike in the EPF threshold this<br />
February after years of deliberations, the change couldn’t be notified before the election code of<br />
conduct kicked in.<br />
The Employees’ Provident Fund Organisation or EPFO oversees the retirement savings of over 8<br />
crore members at present and the number could go up sharply as those earning between Rs<br />
6,500 and Rs 15,000 will come under its fold once the new rules are notified and implemented.<br />
The EPFO’s present ceiling for statutory contributions is a mere Rs 6,500 per month – lower than<br />
the minimum wage prescribed across the country.<br />
On May 27, 2014, the Employee Provident Fund Office issued a circular permitting Companies<br />
to limit its PF contributions against the required salary ceiling limit of INR 6,500 per month.<br />
Earlier, such PF contributions was calculated as 12% of Basic Salary. Now salary ceiling limit<br />
will be Rs 15000 for such contributions.<br />
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Read News :<br />
http://wealth18.com/epf-threshold-raised-from-rs-6500-to-rs-15000/<br />
http://wealth18.com/employer-can-cap-pf-contribution-limit-to-rs-6500-basic-salary-new-epfo-notification/</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0India20.593684 78.962880000000041-8.580994 37.654286000000042 49.768361999999996 120.27147400000004tag:blogger.com,1999:blog-3654551038392576608.post-91950126932056175072014-06-20T12:55:00.000+05:302014-06-20T12:55:18.734+05:30IFAC publishes The Societal Importance of Cost Accounting Standards Issued by the Institute<div dir="ltr" style="text-align: left;" trbidi="on">
Reference Link : http://www.ifac.org/<br />
<a href="http://www.ifac.org/global-knowledge-gateway/performance-financial-management/societal-importance-cost-accounting-standa#" target="_blank">Click to follow reference link</a><br />
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The Societal Importance of Cost Accounting Standards Issued by the Institute of Cost Accountants of India</h1>
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by Rakesh Singh, Chairman, Cost Accounting Standards Board, Institute of Cost Accountants of India | June 17, 2014 | <a href="http://www.ifac.org/global-knowledge-gateway/performance-financial-management/societal-importance-cost-accounting-standa#comments" style="box-sizing: border-box; color: #5999b8; line-height: inherit; text-decoration: none;">1 <img alt="" height="11" src="http://www.ifac.org/sites/all/themes/ifac-rf/images/icon-comment-on.jpg" style="border: 0px; box-sizing: border-box; height: auto; max-width: 100%; padding: 0px;" width="14" /></a></div>
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IFAC’s <a href="http://www.ifac.org/about-ifac/organization-overview" style="box-sizing: border-box; color: #5999b8; line-height: inherit; text-decoration: none;">mission statement</a> gives due emphasis to the public interest and recognizes that a fundamental way to protect this public interest is to develop, promote, and enforce internationally recognized standards as a means of ensuring the credibility of information upon which investors and other stakeholders depend. IFAC, therefore, strives to serve the public interest through the facilitation of the development of standards in auditing, education, ethics, and public sector financial reporting by:</div>
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<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">advocating for transparency and convergence in financial reporting; and</li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">implementing a membership compliance program.</li>
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IFAC also provides <a href="http://www.ifac.org/publications-resources?publication-type=20&source=36&language=87&keyword=Search+Publications&x=78&y=11" style="box-sizing: border-box; color: #5999b8; line-height: inherit; text-decoration: none;">International Good Practice Guidance</a> for professional accountants in business.</div>
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In line with this framework, and even prior to the foundation of IFAC, professional and regulatory bodies all over the world develop accounting standards based on generally accepted principles and practices followed in their countries. These have been enforced through law, promoted by a regulatory mechanism, or voluntarily followed by all business entities. Standards help to ensure uniformity and consistency in the preparation and reporting of various financial statements.</div>
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Post-World War II, all economies, irrespective of their economic structure, started to lay much greater emphasis on cost accounting principles and ensured that all business organizations follow them, at the very least when dealing with the state. Cost accounting was developed as a separate discipline in accountancy, and promoted efficiency in resource utilization. Gradually, new skills developed in this field and it slowly attained a prime position in any organization’s functioning.</div>
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IFAC’s International Good Practice Guidance, <a href="https://www.ifac.org/publications-resources/evaluating-and-improving-costing-organizations-0" style="box-sizing: border-box; color: #5999b8; line-height: inherit; text-decoration: none;"><em style="box-sizing: border-box; line-height: inherit;">Evaluating and Improving Costing in Organizations</em></a>, highlights the importance of cost accounting to organizations:</div>
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<em style="box-sizing: border-box; line-height: inherit;">The creation, operation, alteration, and cessation of every action and function in an organization, whether within the private, public, or voluntary sector—all incur costs. Costing—the accumulating and assigning of costs to the organization’s various activities—enables the organization’s cost structure to be understood, explained, and improved.</em></div>
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The guidance recognizes the importance of costing in assessing organizational performance in terms of shareholder and stakeholder value. It informs how profits and value are created, and how efficiently and effectively operational processes transform input into output. It includes product, process, and resource-related information covering the organization and its value chain. Costing information provides feedback on past performance but should also be used effectively to motivate future performance.</div>
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In India, the Cost Accounting Records Rules set by the government for 44 industries deal with the various items of cost and the way in which they have to be reported in the Cost Statement in accordance with the cost accounting principles. Since there were no generally accepted cost accounting principles, these were left to be understood by each company or by each cost accountant, as they understand or with reference to the explanations given in various textbooks on the subject.</div>
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This led to adoption of practices with a lack of uniformity in preparation and presentation of cost statements. To promote uniformity, there was an urgent need to integrate, harmonize, and standardize the cost accounting principles and practices. Therefore, the Generally Accepted Cost Accounting Principles have been clearly defined and well documented in the form of the Cost Accounting Standards.</div>
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The Cost Accounting Standards:</div>
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<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">provide a structured approach to measurement of costs in manufacturing process or service industry;</li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">integrate, harmonize, and standardize cost accounting principles and practices;</li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">provide guidance to users to achieve uniformity and consistency in classification, measurement, assignment, and allocation of costs to products and services;</li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">arrive at the basis of computing the cost of product, activity, or service where required by legal or regulatory bodies;</li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">enable practicing members to make use of Cost Accounting Standards in the attestation of General Purpose Cost statements; and</li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; line-height: 14.5600004196167px; margin: 0px; padding: 0px 0px 8px;">assist in clear and uniform understanding of all the related issues by various user organizations, government bodies, regulators, research agencies, and academic institutions.</li>
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Facilitating and promoting uniformity and consistency not only helps in better understanding (e.g., clear and in a uniform manner) of all the related issues by companies and/or by the professional fraternity, but it also helps various user organizations, government bodies, regulators, research agencies, and academic institutions. Clearly defined and well-documented Generally Accepted Cost Accounting Principles govern a highly professional job that can only be done by the concerned professional bodies and individuals in India.</div>
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Precisely for these reasons, various national level institutes have issued or are in the process of issuing standards in areas under their domain. For example, the Institute of Chartered Accountants of India issues financial accounting and auditing standards; Institute of Company Secretaries of India issues secretarial standards; and the Institute of Cost Accountants of India issues cost accounting and audit standards. The Institute of Cost Accountants of India has assigned topmost priority for issuing all required cost accounting standards. These are prepared in consultation with all stakeholders.</div>
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The Cost Accounting Standards are principles based, deal with the principles of costing, and provide guidance on the preparation of General Purpose Cost Statements, which require attestation by the cost accounting profession, wherever applicable. The <a href="http://www.casbicwai.org/casb/index.asp" style="box-sizing: border-box; color: #5999b8; line-height: inherit; text-decoration: none;" target="_blank">Cost Accounting Standards Board</a> (CASB) should also keep in focus the Generally Accepted Cost Accounting Principles and codify them so that with the passage of time, an accepted framework of can evolve and remain capable of adoption by all users of the standards, including industries, professionals, and other stakeholders.</div>
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The Cost Accounting Standards framework has been adopted by the CASB with the following structure:</div>
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<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Introduction:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> brief details about the topic and its role in the cost statements</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Objectives:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> basic objective that necessitated the standard</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Scope:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> scope of applicability</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Definitions:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> terminology used in the standard</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Principles of Measurement:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> principles behind the ascertainment, measurement, determination, and categorization of elements of cost</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Assignment of Costs:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> basis of assignment of costs to the product or service and the generally accepted cost accounting principles behind such assignment</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Presentation:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> essence of the standard and the prescriptive nature to be followed for any certification requirement</span></li>
<li style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px;"><strong style="box-sizing: border-box; font-size: 1em; line-height: inherit;">Disclosure:</strong><span style="box-sizing: border-box; font-size: 1em; margin: -15px 0px 0px;"> specific disclosures required in the presentation to provide clarity</span></li>
</ol>
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The CASB has identified 39 areas for developing the CASs, which include the 22 standards so far. Of these, 21 areas relate to components of cost and the remaining 18 areas are on cost accounting methodologies. These areas are broadly in line with the Cost Accounting Records Rules already framed by the government and in vogue for different industries. </div>
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<strong style="box-sizing: border-box; line-height: inherit;">CAS No.</strong></div>
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<strong style="box-sizing: border-box; line-height: inherit;">Title of Cost Accounting Standard</strong></div>
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CAS 1</div>
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Classification of Cost</div>
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CAS 2</div>
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Capacity Determination</div>
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CAS 3</div>
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Overheads</div>
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CAS 4</div>
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Cost of Production for Captive Consumption</div>
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CAS 5</div>
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Average (equalized) Cost of Transportation</div>
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CAS 6</div>
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Material Cost</div>
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CAS 7</div>
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Employee Cost</div>
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CAS 8</div>
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Cost of Utilities</div>
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CAS 9</div>
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Packing Material Cost</div>
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CAS 10</div>
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Direct Expenses</div>
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CAS 11</div>
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Administrative Overheads</div>
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CAS 12</div>
</td><td style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px; vertical-align: top;" width="87%"><div style="border: 0px; box-sizing: border-box; direction: ltr; font-family: inherit; font-size: 1em; line-height: 14.5600004196167px; padding: 0px 0px 10px; text-rendering: optimizelegibility;">
Repairs And Maintenance Cost</div>
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CAS 13</div>
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Cost of Service Cost Centre</div>
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CAS 14</div>
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Pollution Control Cost*</div>
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CAS 15</div>
</td><td style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px; vertical-align: top;" width="87%"><div style="border: 0px; box-sizing: border-box; direction: ltr; font-family: inherit; font-size: 1em; line-height: 14.5600004196167px; padding: 0px 0px 10px; text-rendering: optimizelegibility;">
Selling and Distribution Overheads</div>
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CAS 16</div>
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Depreciation and Amortisation</div>
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CAS 17</div>
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Interest and Financing Charges.</div>
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CAS 18</div>
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Research and Development Costs</div>
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CAS 19</div>
</td><td style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px; vertical-align: top;" width="87%"><div style="border: 0px; box-sizing: border-box; direction: ltr; font-family: inherit; font-size: 1em; line-height: 14.5600004196167px; padding: 0px 0px 10px; text-rendering: optimizelegibility;">
Joint Costs</div>
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CAS 20</div>
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Royalty and Technical Know-How Fee</div>
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CAS 21</div>
</td><td style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px; vertical-align: top;" width="87%"><div style="border: 0px; box-sizing: border-box; direction: ltr; font-family: inherit; font-size: 1em; line-height: 14.5600004196167px; padding: 0px 0px 10px; text-rendering: optimizelegibility;">
Quality Control</div>
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CAS 22</div>
</td><td style="box-sizing: border-box; direction: ltr; font-size: 1em; margin: 0px; padding: 0px; vertical-align: top;" width="87%"><div style="border: 0px; box-sizing: border-box; direction: ltr; font-family: inherit; font-size: 1em; line-height: 14.5600004196167px; padding: 0px 0px 10px; text-rendering: optimizelegibility;">
Manufacturing Cost</div>
<div>
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</tbody></table>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com1India20.593684 78.962880000000041-8.580994 37.654286000000042 49.768361999999996 120.27147400000004tag:blogger.com,1999:blog-3654551038392576608.post-68405414667799623182013-08-28T13:05:00.000+05:302013-08-28T13:05:34.182+05:30COST AUDIT AND ROLE OF COST ACCOUNTANTS IN COMPANIES BILL, 2012<div dir="ltr" style="text-align: left;" trbidi="on">
THE INSTITUTE OF COST ACCOUNTANTS OF INDIA<br />
CMA Bhavan, 3, Institutional Area, Lodi Road New Delhi-110003<br />
PRESS RELEASE<br />
Ph. 91-11 24622156-58<br />
Fax-91-11-43583642<br />
Email: info@icmai.in<br />
New Delhi, August 14, 2013<br />
COST AUDIT AND ROLE OF COST ACCOUNTANTS IN COMPANIES BILL, 2012<br />
CMA Suresh Chandra Mohanty, President, Institute of Cost Accountants of India, congratulated the<br />
Hon’ble Union Minister of Corporate Affairs, Shri Sachin Pilot ji and his team for their unstinted efforts in<br />
reforming the corporate legislation in tune with global reality and the Indian economy. The new<br />
legislation will ensure impetus for the growth momentum as the Bill focuses to enhance transparency,<br />
compliance, self-reporting, regulatory and disclosure with fewer regulations.<br />
CMA Mohanty strongly refuted the apprehensions in the media that the companies opposed cost audit<br />
citing compliance cost and data theft which have been appropriately addressed even in the new<br />
mechanism in force since 2011 and as the objects and reasons in the Companies (Amendment) Bill, 1956<br />
for maintenance of cost records and audit thereof to make efficient audit possible, effective utilization of<br />
available material and labour and to prevent fraud and dishonesty in the corporate sector have more<br />
relevance in the present competitive business environment.<br />
While referring to the press reports on the subject, he said that it is quite natural that given the choice,<br />
industry does not need any audit, including financial and secretarial audit. In fact, in many countries there<br />
is no statutory financial audit for companies up to a threshold limit. But, the Indian economic and<br />
business environment is quite different and one size does not fit all. Different types of audits mandated<br />
under law have withstood the test of economic upheavals thru scams and other corporate frauds from<br />
which our country was protected. When some lone exceptions happened, the Govt. has acted fast in<br />
further strengthening the audit mechanism.<br />
He added that the Ministry of Corporate Affairs’ mandates to make available certified corporate<br />
information to various stakeholders within and outside Government. While in case of financial audit, the<br />
stakeholders are primarily outside the Government, in case of cost audit and secretarial audit, majority of<br />
them are used by regulators in the national interest. The later audits provide the much needed<br />
certification and assurance to the users of such information in the public interest. Since this information<br />
can be used as a check back mechanism for the regulatory authorities, it is quite natural that the industry<br />
may have some reservations. It is common all over the world to see any regulations as an impediment to<br />
business. The Government and Regulators often require confirmation on the information passed on from<br />
the assesse and have relied upon audit and assurance mechanism both in direct and indirect taxes to flag<br />
major revenue leakages. The judgment of the Hon’ble Supreme Court in the Fiat case relating to excise<br />
duty, the relevance of costing and the reliability of the cost data has become the backbone for<br />
assessments in the case of Central Excise in the entire manufacturing sector. He said that a professional body which have specific mandate under the statute is not competent enough<br />
to comment on the specialized area of other professional institute as each profession has its expertise in<br />
its respective fields.<br />
CMA Mohanty further refuted strongly the issue of compliance costs which has been put forward right<br />
from 1970s. While it may be true in the past even for financial records, in the current highly connected<br />
and wired world of corporate, the information is available almost free with the sunk costs in IT<br />
Infrastructure backbone and the maintenance of integrated system of accounting. The confidentiality<br />
issue has been fully addressed on the cost data submitted as a part of regulations and there is no<br />
relevance to sing the same tune as in 1970s. The cost of compliance for Cost Audit is very negligible<br />
compared to other audits and the socio-economic benefits for the economy.<br />
The President further pointed out that the professionals in service or practice are taking care of the<br />
assurance issues from within the industry and audit issues from the practice side. The industry consists of<br />
professionals and their survival in the face of global trade threats are due to the strong regulatory<br />
mechanism existing within the country which ring fence them from corporate raiders from across the<br />
world. What is considered to be “costs”, are really investments which provide the insurance mechanism<br />
for the Government to act as and when needed to ensure the welfare of the citizens in the country and<br />
improve the efficiency in the use of the country’s scarce natural resources ensuring sustainability and<br />
inclusive growth.<br />
The Institute has been working continuously to strengthen the cost competitiveness of Indian industry by<br />
inculcating cost management focus through propagating best practices in cost management and cost<br />
accounting / auditing. The initiatives have been made to provide low-cost accounting services to firms<br />
operating in the MSME sector and voluntary organizations by building accounting capabilities at the<br />
school level across the country and by creating a cadre of Accounting Technicians.<br />
He appealed to the press and media to make a reference to the President of the Institute at<br />
(president@icmai.in) to obtain any correct and factual information relating to key issues of the<br />
profession.<br />
=========== </div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-31158407265090202132013-06-23T23:12:00.001+05:302013-06-23T23:12:58.537+05:30Commodity Transaction Tax (Chapter VII) effective from 1ST July 2013<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">GOVERNMENT OF INDIA</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">MINISTRY OF FINANCE</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">(DEPARTMENT OF REVENUE)</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">NOTIFICATION 45/2013</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">New Delhi, the 19 June, 2013</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">S.O. 1768 (E).- In exercise of the powers conferred by sub-section (2) of section 115 of the Finance Act, 2013 (17 of 2013), the Central Government hereby appoints the 1st day of July, 2013 as the date on which Chapter VII of the said Act shall come into force.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">It will be levied at the rate of 0.01 percent on all commodity derivative contracts other than those relating to 23 specified agricultural commodities.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">The 23 agricultural commodities on which CTT will not apply as regards their futures contracts are almond, barley, cardamom, castor seed, channa, copra, coriander, cottonseed and cotton.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">The other agricultural commodities that will not come under CTT net are guar seed, isabgol seed, jeera, kapas, maize feed, pepper, potato, mustard seed, raw jute, red chilli, soyabean, soyameal, turmeric and wheat.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">Processed agricultural items including sugar, soya oil and guar gum will attract CTT on their futures contracts.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">The Finance Minister, P. Chidambaram, had in budget 2013-14 said that CTT will be applcable on non-agricultural commodities at the rate of 0.01 per cent.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">There are 22 commodity bourses in the country with six operating at national level. All of them deal only in commodities futures contracts. More than 80 per cent of turnover comes from non-agricultural commodities.</span><br style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;" /><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;">The CTT to be levied from </span><span class="aBn" data-term="goog_1713895436" style="background-color: white; border-bottom-color: rgb(204, 204, 204); border-bottom-style: dashed; border-bottom-width: 1px; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px; position: relative; top: -2px; z-index: 0;" tabindex="0"><span class="aQJ" style="position: relative; top: 2px; z-index: -1;">July 1</span></span><span style="background-color: white; color: #222222; font-family: 'lucida grande', tahoma, verdana, arial, sans-serif; font-size: 13px;"> will have to be borne by the seller of the derivative contract.</span></div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com1India20.593684 78.962880000000041-8.5815185000000014 37.654286000000042 49.7688865 120.27147400000004tag:blogger.com,1999:blog-3654551038392576608.post-63703475787493399172013-04-26T00:46:00.000+05:302013-04-26T00:46:00.429+05:30Recent Judgement of Supreme Court on Trade Discounts<div dir="ltr" style="text-align: left;" trbidi="on">
<strong style="font-family: 'Times New Roman'; text-align: justify;"><span style="font-size: x-large;">Recent Judgment of Supreme Court on Trade discounts </span></strong><br />
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<strong>(M/s. IFB Industries Ltd. Vs. State of Kerala</strong> (<strong>Supreme Court)</strong></div>
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<strong>Background</strong></div>
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A Division bench of the Kerala High Court, in the case of M/s IFB industries Ltd has held that unless the discount was shown in the invoice itself, it would not qualify for deduction and further that any discount that was given by means of credit note issued subsequent to the sale of the article was in reality an incentive and not trade discount eligible for exemption under rule 9(a) of the Rules.</div>
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Similarly in the case of India Cements also division bench of Kerala High court rejected the claim of the company for deduction of many kinds of trade discounts</div>
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<strong>Both M/s. IFB Industries Ltd</strong> and M/s India Cements Ltd have challenged the decision of division bench of the Kerala High Court in the Supreme court.</div>
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The Supreme court in the appeals filed by both the above parties observed that discount in order to qualify for exemption under Rule 9(a) two conditions must be satisfied. Firstly the discount given must be in accordance with the regular practice in the trade and secondly, the accounts should show that the purchaser had paid only the sum originally charged less the discount. There is nothing in Rule 9(a) which indicates that discount in order to qualify for exemption must be shown in the invoice itself.</div>
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An attempt has been made to examine the meaning of terms turnover, incentive, cash discount and trade discount in the article while analyzing the implication judgment of Supreme court.</div>
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<strong>What is a trade discount?</strong></div>
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Trade discount is given by the wholesaler to retailer on printed price for encouraging bulk purchase of an item and to earn profit by selling the goods at printed price. Trade discount can be cash discount mentioned on the invoice or an in the form of an incentive passed after certain period of sale. The main advantage of trade discount is that a trader/manufacturer can always fix his printed price and charge different prices for different types of customers by allowing discount on the face of invoices. The other advantage is that taxing authorities will easily allow discount allowed to the customers as it is reflected in the invoice itself. This also obviates the passing of journal entry to record trade discount.</div>
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<strong>Distinction between cash discount and Trade discount:</strong></div>
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Supreme court in the case of <strong>Deputy Commissioner of Sales Tax (Law) Board of Revenue(Taxes) v. M/s Advani Oerlikon (P) Ltd., (1980) 1 SCC 360</strong> made a distinction between cash discount and trade discount. Cash discount is given when the purchaser makes payment promptly or within the period of credit allowed. A trade discount on the other hand is a deduction from the catalogue price of goods allowed by wholesalers to retailers engaged in the trade. This allowance enables the retailer to sell the goods at the catalogue price and yet make a reasonable margin of profit after taking into account his business expense.</div>
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<strong>What is trade practice?</strong></div>
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It is important to understand the meaning of trade practice. Normally cash discounts are mentioned on the face of the invoices and no tax is charged on the trade margin/discount allowed. In this case there is no problem as the taxing authority can not dispute this entry. Moreover the trader or manufacturer will have to claim the discounts allowed in the monthly returns as taxable turnover does not cover discounts or trade margins given to the customers. However the problem arises with respect to certain incentives given by manufacturers and wholesalers to dealers on reaching targets set by them. These incentives can be arrived at only after the sales take place. Here comes the problem as such incentives are given through credit notes. Trade practice is the practice generally followed by the traders who are in same business or industries which produce similar goods.</div>
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<strong>Analysis of Judgment of Supreme court</strong></div>
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Now it would be easier to understand the judgment of Supreme court in the case of <strong>M/s IFB Industries Ltd. Vs State of Kerala</strong>. The main question that was examined by the Supreme court in IFB's case is that whether incentives given through credit notes are outside the scope of Rule 9 (a) of the Kerala General Sales tax Rules.</div>
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Supreme court after examining definition of Turnover u/s 2(xxvii) of the Kerala General Sales Tax Act,1963 came to the conclusion that the definition of "turnover" recognizes discounts other than cash discount and it is abundantly clear from the explanation which provides that cash or other discounts and amount refunded in respect of articles returned by customers shall not be included in the turn over.</div>
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For better understanding of the readers, the relevant definition of "turnover" is quoted below:</div>
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Definition of Turnover u/s 2(xxvii) of the Kerala General Sales Tax Act, 1963.</div>
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"Turnover" means the aggregate amount for which goods are either bought or sold, supplied or distributed by a dealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred payment or other valuable consideration."</div>
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Explanation 2(ii) is as follows:-</div>
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"Explanation 2 – Subject to such conditions and restrictions, if any, as may be prescribed in this behalf,- (i) xxx (ii) <strong>any cash or other discount on the price allowed in respect of any sale and any amount refunded in respect of articles returned by customers shall not be included in the turnover."</strong> (emphasis added on bold words)</div>
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Supreme court set aside the orders of the Kerala High court and directed that the Assessing Authority shall not reject the claim for exemption of the amounts of trade discount solely on the ground that the discount amounts were not shown in the sale invoices.</div>
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Readers may note that Supreme court also referred to some its earlier decisions and set aside the judgment of Kerala High court. The following are the judgments that were referred.</div>
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<strong>1. Deputy Commissioner of Sales Tax (Law) Board of Revenue(Taxes) v. M/s Advani Oorlikon (P) Ltd., (1980) 1 SCC 360</strong>(In this case it is held that any trade discount must also be allowed as a deduction for determining the sale price although Central Sales tax mentioned only cash discount as allowable deduction from sale price)</div>
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<strong>2. Deputy Commissioner of Sales Tax(Law)Board of Revenue (Taxes), Ernakulam v. Motor Industries Co, Ernakulam,(1983) 2 SCC 108,</strong>( In this case it is held that as per Rule 9 (1) of KGSTR exemption was allowable on trade discount given not only in accordance with the regular practice in the trade but also in accordance with the terms of the contract or agreement entered into a particular case.</div>
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<strong>3. Kalpana Lamps and Components Ltd. v. State of Kerala, (2006) 143 STC 666,</strong> (in this case the Bench of Kerala High court held that if there has been a consistent practice of giving special discounts in the trade it has to be accepted by the assessing authorities.</div>
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<strong>Conclusion:</strong> This judgment certainly gives a scope to fight for trade discounts such as incentives, special discounts allowed but not shown on the face of the invoice. However the principles laid down by the Supreme court as to the consistent trade practice and terms of contract must be kept in mind to avail the benefit of this judgment.</div>
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<strong><em>G S Rao, Chief Manager (Legal),OCL India Ltd</em></strong></div>
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Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0India20.593684 78.962880000000041-8.5680234999999989 37.654286000000042 49.7553915 120.27147400000004tag:blogger.com,1999:blog-3654551038392576608.post-86627392582444820212013-02-28T01:31:00.000+05:302013-02-28T01:31:42.075+05:30about provident fund<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="margin: 0px; padding: 0px;"><em style="margin: 0px; padding: 0px;"><u style="margin: 0px; padding: 0px;"><a href="http://taxguru.in/corporate-law/procedure-for-registration-withdrawal-transfer-of-provident-fund.html" style="color: #004080; margin: 0px; outline: none; padding: 0px; text-decoration: none;" target="_blank" title="Permanent Link to Procedure for Registration, Withdrawal & Transfer Of Provident Fund">Procedure for Registration, Withdrawal & Transfer Of Provident Fund</a></u></em></span></div>
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">Provident Fund is a Social Security Benefit to employees. During an employee's productive life he along with his employer contribute monthly to a PF Fund which then serves as a nest on retirement for his/her old age. This act is an important piece of Labour Welfare legislation enacted by the Parliament to provide social security benefits to the workers. At present, the Act and the Schemes framed there under provide for three types of benefits –</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Contributory Provident Fund</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Pensionary benefits to the employees / family members</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Insurance cover to the members of the Provident Fund.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Applicability</u></strong><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">Company which have employee strength of 20 or more are required to be registered with PF Department. The strength of 20 includes contract employees like housekeeping, security or other contractual workers in the business. Those establishments which do not have the prescribed number of employees but willing to register themselves to provide the benefits of Provident Fund to their employees can register voluntarily with the Regional Provident Fund Office. Registration has to be done within One month from the date of reaching 20 employees. Any delay may result in a penalty.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Eligibility</u></strong><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">An employee at the time of joining the employment and getting wages up to Rs. 6,500/- is required to become a member. In this act, Wages means and includes Basic + Dearness Allowances, Cash value of food concession and retaining allowances, if any. He/she is eligible for membership of fund from the very first date of joining a covered establishment.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Employee Contribution</u></strong><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">Provident fund contribution is recovered @ 12% of wages from employees who earn up to a maximum wage of Rs.6,500/- p.m. However, employees can contribute more than this statutory maximum which will be considered as Voluntary Contribution.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Voluntary Contribution</u></strong><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">- An employee can contribute voluntarily over and above the stipulated rate of PF contribution by opting for Voluntary PF scheme at any rate as he she desires i.e up to 100% of Wages.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">- However, the contribution to VPF should be a certain % of wages and not a fixed amount.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">- But the employer is not bound to contribute at the enhanced rate.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">- It is suggested that the enhancement can be done at the beginning of the financial year for comfort level of calculation.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Employer Contribution</u></strong><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">- Employer is also required to contribute towards provident fund; the deduction rate is same as employee's contribution i.e. 12% of the wages.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">- Of this 12%, 3.67% goes to Provident Fund and the balance of 8.33% goes to Pension Fund.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">The employer is required to pay the contribution recovered from employees into the provident fund account on or before 15th of the following month, for example, if the contribution is deducted for the month of October 2008, it should be remitted on or before 15th of November 2008.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Procedure for PF registration</u></strong><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">The following forms are to be filed for registering the establishment:</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">1. A Detailed Application for termed as " Performa for coverage"</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">2. Form 5 A with Annexure I</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Information required for filling up forms</u></strong><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">1. Name of The Company</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">2. Postal Address, Telephone No and Email Address</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">3. Details of Director/ Managing Director/ Partners – Address, Ph. No, email ID</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">4. Details of Authorized Signatory (in case whose is signing in the place of Director)</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">5. Nature and Date of Commencement of Business</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">6. Date of Joining of Employees, Father Name, DOB</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">7. Salary, PF Statement and Bank Account Details of the Company</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Documents required for filling up the Forms</u></strong><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">1. Incorporation Certificate of Company in case of private limited company and Certificate ofRegistration of Firm in case of Partnership Firm.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">2. MOA & AOA in case of Private Limited Company and Partnership Deed in case of Partnership Firm.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">3. Rental Agreement/ Lease Agreement of Company</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">4. Company/ Firm PAN Card</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">5. Address Proof of Director/Partners – Lease / Rental Agreement</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">6. ID Proof of Director/ Partners – Pan Card / Election Card/ Passport/ Driving License</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">7. List of Directors/ Partners</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">8. Registration copies with other Departments like. VAT, PT, Labour dept.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">9. First Invoice raised from the company/ Firm</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">10. True copy of Board resolution empowering company representatives as Authorised signatories</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">Once documents are filed the PF Authorities carry out a physical inspection of the premises and verify all original documents. On satisfaction, the business is granted with a PF allotment letter.</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Withdrawal of Provident Fund and Pension Fund</u></strong><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o A member is eligible to apply for withdrawing his provident fund and pension fund only after 2 months from the date of resignation, provided that he / she is not employed during the said 2 months.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o The member should submit Form 19 to withdraw his provident fund dues on leaving service/retirement/termination.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o To claim pension, the member is required to submit Form 10 C.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o The member needs to fill in Forms 19 and 10C and get it signed from the previous employer and submit it to the provident fund office (in many cases, the employer will themselves help by submitting the forms).</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Normally, it takes about 40 days to have the monies credited to the bank account of the member after submission of the relevant forms.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">On many occasions, members face problems in withdrawing the provident fund monies. Some of the normal reasons for the problems are quoted here below:</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Mismatch of Signature of the employer/ Member</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Mismatch of Signature of the member</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Mismatch of Provident Fund Account number of the member</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Incorrect bank account details furnished by the member</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Incorrect address given by member</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Mismatch of date of joining / resignation</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Communication from PF department while processing the request would not have reached the employer</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Failure of employer to remit the PF amount recovered from members to PF Account</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Member might have changed his / her official name and the same has not been informed to the provident fund office</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Change in Authorised Signatory of the employer when the application is in process</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Transfer of Provident Fund monies from previous employer to current employer</u></strong><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">A resigned employee who joins another company is left with an option of transferring the PF monies from his previous PF account to the current PF account, by filling the Form 13.</span><br />
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<u style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;">Form 13</u><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o When an employee joins new company and he wishes to transfer his previous company provident fund amount, he should inform the HR department or Accounts department of the new company.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o The employer will issue Form 13, in which the member has to fill the details of previous company like – name, address, provident fund account number and address of the provident fund office where the account was held.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o On form 13, the signature of the previous employer is not required.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Once he fills the required details and submit it to the current employer, the current employer will forward it to the provident fund office for transferring process.</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o The time taken for transferring the fund from one account to other account normally takes about 40 days from date of submission.</span><br />
<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Problem during Transfer of Monies</u></strong><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">In the case of transfer and when the previous employer is an exempt establishment (which means, having own PF trust), the procedures is that the current employer should forward the transfer form (Form 13) to the previous employer who will process a cheque (after validation) in favour of PF office of the current employer and it will be sent to the current employer. It becomes the responsibility of the current employer to submit the cheque along with a request letter to the PF office for transferring the monies. Here, the normal problems that might occur are:</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o previous employer might have changed their address</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">o Documents lost in transit / do not reach the concerned department</span><br />
<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">delay in processing the application for reasons like tedious internal processing procedures, processing person is on vacation / busy on some other assignments, signatory not available etc</span><br />
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<strong style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;"><u style="margin: 0px; padding: 0px;">Advances from PF Account</u></strong><br />
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<span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;">The members are eligible to withdraw monies as advances from their PF Account for purposes like marriage, education, medical treatment etc, subject to the prescribed conditions as mentioned here below. Note that the said advance is totally tax-free and interest-free.</span><br />
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<span class="HOEnZb">Dipak Kumar<br style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; margin: 0px; padding: 0px; text-align: justify;" /> <span style="color: #4d4d4d; font-family: 'Lucida Grande',Verdana,'Lucida Sans Regular','Lucida Sans Unicode',Arial,sans-serif; font-size: 12px; line-height: 10.666666984558105px; text-align: justify;"> </span></span></div>
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Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-46191238663763127462012-12-06T12:14:00.000+05:302012-12-06T12:50:36.407+05:30DON'T S IN CA/CWA/CS EXAMS<div dir="ltr" style="text-align: left;" trbidi="on">
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Posted By : N.RAVEENDRANATH KAUSHIK</div>
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REFERENCE - N.RAVEENDRANATH KAUSHIK</div>
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<b><span style="font-size: 14pt;">Don’ts in CA/CWA/CS Professional Exams</span></b></div>
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<span style="color: black; font-size: 13.5pt;">As
exams are near and all of you are busy with preparation, I would like to share
with you some of the points which you should be very careful at time of exams.
It is not the efforts in form of time, references, preparation etc which you do
before exams which is important but, how you manage and utilize 3 hours of
exam time is very much important. Most of you might have not practiced the way
you need to appear for the exams; you don’t set alarms and do mock exams to
test yourself as to how to utilize time and make good presentation of answers.
Remember, you are writing one of the competitive accounting professional exams
recognized across the globe and which opens yourself to one of the greatest
challenging careers. You need to be serious and also studious both at time of
preparing and writing answers in exam. Since, time limit now is very short and
it is not time to work more towards preparation, I would like to share with you
some of the points which most of students often do in exams which they are not
suppose to do and that may lead to poor results.</span></div>
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<span style="color: black; font-size: 13.5pt;">1.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Always don’t underestimate yourself</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– What ever your preparation may be don’t
underestimate yourself. Be always confident and don’t go with what has happened
in the past.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">2.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t strain yourself physically and mentally</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">– Presence of mind and physical fitness is
very important as you need to be very much attentive and confident for 3 hours.
So, don’t strain yourself too much both physically and mentally before and
during the examination time.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">3.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t discuss your performance with your friends –</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">Every day after writing exams, access
yourself and don’t discuss your performance with any of your friends.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">4.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t compromise on sleep and practice balanced diet -</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">Always remember before and during the
exams have good sleep at least for 5 hours daily and have a good timely meal
and a balanced diet.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">5.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t yield your ears to rumors -</span></b><span class="apple-converted-space"><u><span style="color: black; font-size: 13.5pt;"> </span></u></span><span style="color: black; font-size: 13.5pt;">Many of the students have shared with me
different sort of rumors like change in question paper pattern, important
questions etc. before the exams but, my advice is that don’t yield your ears to
such rumors. Professional exams are conducted by institute with high
professional standard and if any changes are there then please refer the
official website of the institutes for the information.<span class="apple-converted-space"><u> </u></span> </span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">6.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ever be late to the examination hall –</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">Always be 15 minutes before schedule time
in examination hall. You get sufficient time in searching for your registration
number, hearing to the important instructions, making yourself comfortable and
removing stress to some extent before the exams.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">7.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t carry pens, pencils and calculators with out being checked
earlier -</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">Always carries spare pens, pencil and good
quality calculators to the examination. Check it before you leave for exams.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">8.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t start writing immediately on the answer book</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– After you get the answer books please
check whether the papers in the answer books are neat, stapled, ruled lines are
drawn properly, number of pages etc. See, whether on the front sheet all fields
for which you need to give information is provided or not.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">9.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t change your handwriting and pens every now and then</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– Many students quite often change their
colour of ink while writing answers, this is not advisable unless if it is for
the reason that you need to change the pen. Please get the signature of
invigilator for any change in colour of ink. Also, make sure that your
handwriting is uniform all over the answer book.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">10.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t start the answers immediately after getting the question
paper -</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">Spend some time in looking at the
questions and understanding the questions, make proper choose of questions
which you are familiar and confident to answer and read all the instructions
given on the question paper. Question paper is usually set for 2 hours 35 minutes
and you need to spend at least 15 minutes to read and understand the question
and 10 minutes to finally revise your answers at the end.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">11.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ever leave the compulsory question unanswered</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– If the question paper says that one of
the questions is compulsory, make sure that you don’t leave that particular
question unanswered at any cost.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">12.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t waste too much of time in remembering the answers</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">– If you are struck with any particular
question or adjustments or case laws then don’t waste time in remembering it,
leave some space and start answering the other questions and when ever you
remember, you can still come back and complete it .</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">13.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ever continue answers for new questions in the same page</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">– When you have answered a question and if
there is some 3/4<sup>th</sup><span class="apple-converted-space"> </span>page
still left, then don’t continue your next question answer there itself. Always
start your answers for next questions in new page.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">14.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ignore the instructions stated in the question paper</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">– If the question states clearly –
workings form part of answers, make necessary assumptions where ever required,
don’t do unwanted discussion etc then, please read the instructions and act
accordingly.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">15.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ever start your answers with working</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">– In case of problem related questions,
always remember that while starting the answer don’t start with workings. What
it is asked for in the question should come first and working should be part of
answer. For eg. If in accounts the question asks to prepare a balance sheet.
the you need to show the balance sheet first and then under working notes
mention the various working which you did for getting balance sheet figures.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">16.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t violate rules and principles set by profession –</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">Since, you are writing professional exams
always remember you should not violate any rules, principles, guidelines put
forth by the institute or accounting profession. Your answers should not
violate the basic rules and principles put forth by the profession and
institute. For eg. Presentation of Balance sheet, one should follow the
principles as to how assets are listed (priority wise).</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">17.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ever do incomplete presentation - </span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">For example if the question asks to pass
journal entries or prepare a process accounts, then clearly mention in whose
books accounts are prepared, company name, date, debit, credit, amount etc
clearly. In case of journal entry don’t forget to give narrations at end of
each entry.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">18.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t forget to mark your answers with relevant question number</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– Most of the students does this mistake,
they don’t write clearly and legibly the question numbers and subparts of
question number for which the answers pertain to. Remember one thing, you are
writing answers for examiners to understand and take little extra care to win
the examiner to your side with good and neat presentation.<span class="apple-converted-space"> </span><u> </u></span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">19.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t use too much marker and highlighter to mark your answers in
your answer books –</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">It is good to use highlighter wherever it
is important. Too much use of the highlighter and markers may not be liked by
the examiner and so avoid using too much of it. Also, use only light and
pleasant colours while highlighting.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">20.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t compromise on quality of answers -</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">It is always quality of answers which is
more important in professional exams. So restrict your answers to simple points
and try to justify your answers with good quality rather then quantity. Quote
case laws, section, rules, standards etc where ever it is necessary.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">21.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t write answers for your purpose of understanding</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– Always keep in mind that you are writing
answers to convince the examiner and not for yourself. So, keeping examiner in
mind, try to answer questions with good presentation, relevant and clear
information and with good quality.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">22.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t ever leave the front page of the answer book without filling
the question numbers which you have answered</span></b><span class="apple-converted-space"><span style="color: black; font-size: 13.5pt;"> </span></span><span style="color: black; font-size: 13.5pt;">– Especially in case of CA students, make
sure that you fill the relevant question numbers which you have answered on the
front page of answer books. Make sure you enter correctly your role numbers –
in words and figures where ever necessary and subject code properly on the
first page.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">23.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t be careless while tying tag to the additional sheet</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">- In case you borrow additional sheet
don’t forget to tie the tag properly and cross check the same at the time of
revising your answers at the end.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">24.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Don’t worry about the exams after you come out of the examination
hall</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">– After coming out of exam don’t start
self assessment and get in to discussion with your friends on the answers to
each and every question. Even at home don’t refer notes or solutions for the
questions to which you have already answered. Start a fresh and concentrate
only on next exams and prepare for it.</span></div>
<div class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; tab-stops: list .5in; text-align: justify; text-indent: -.25in;">
<span style="color: black; font-size: 13.5pt;">25.<span style="font: 7pt "Times New Roman";">
</span></span><b><span style="color: black; font-size: 13.5pt;">Doesn’t be pessimist always be optimist and see good side of life
-</span></b><span class="apple-converted-space"><b><span style="color: black; font-size: 13.5pt;"> </span></b></span><span style="color: black; font-size: 13.5pt;">Exams are process of evaluation of what you know and what you
don’t know. It is not last in life and if I fail that doesn’t mean that I don’t
know anything and I am unfit to do any work. I can still come up by improving
the grey areas. Always be optimist and put the efforts and finally can reap the
benefit of success. So, don’t loose hopes in case if you couldn’t fair well in
one paper. There are still hopes to get exemption in rest of the paper and can
carry forward for next year.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="color: black; font-size: 13.5pt;"> These were
some of the tips which I thought of sharing with you peoples who are very
confident going for exams in few days from now. All of you are born with one or
other strong attitudes and skills capitalize the same and work towards
the goals and it is sure that all of you will achieve the success in your life.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="color: black; font-size: 13.5pt;"> Wishing
you all the best and hoping to meet you as my professional friends in next few
years.</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="font-size: medium;"></span><br />
<div style="text-align: center;">
<span style="font-size: medium;"><br /></span></div>
<div style="text-align: center;">
<span style="font-size: medium;">Wishing you all the best and hoping to meet you as my</span></div>
<div style="text-align: center;">
<span style="font-size: medium;">professional friends in comming years.</span></div>
<br />
<span style="color: black; font-size: 13.5pt;"><br /></span>
<br />
<span style="color: black; font-size: 13.5pt;">Thanks and
regards,</span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<br /></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<b><span style="color: black; font-size: 13.5pt;">CMA
Raveendranath Kaushik</span></b><span style="color: black; font-size: 13.5pt;"></span></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<i><span style="color: black; font-size: 10pt;">MA, MPhil,
MBA, PG Tax Law, AICWA</span></i><span style="color: black; font-size: 13.5pt;"></span><br />
<i>more articles on www.cmakaushik.blogspot.com</i></div>
<div class="MsoNormal" style="mso-margin-bottom-alt: auto; mso-margin-top-alt: auto; text-align: justify;">
<span style="color: black; font-size: 13.5pt;"><a href="mailto:rk.rkaushik@gmail.com">rk.rkaushik@gmail.com</a></span></div>
<div class="MsoNormal">
<br /></div>
<br /></div>
<div>
regards,</div>
-- <br />
<div>
<span style="color: #cc0000;">CMA N.Raveendranath Kaushik</span></div>
<div>
<i><span style="font-family: arial,helvetica,sans-serif; font-size: xx-small;">MA,MPhil,MBA,PG Tax Laws,AICWA</span></i></div>
<div>
</div>
<div>
<i><span style="font-size: xx-small;">------------------------------------------------</span></i></div>
<div>
<i><span style="font-size: xx-small;"><b>Partner</b></span></i></div>
<div>
<i><span style="font-size: xx-small;">Accounts Point</span></i></div>
</div>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com1tag:blogger.com,1999:blog-3654551038392576608.post-61337613042904336912012-11-22T00:46:00.003+05:302012-11-22T00:46:56.278+05:30Government flags concerns about cost auditing at companies<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="mod-economictimesarticletext mod-articletext" id="mod-a-body-first-para">
<br />
NEW DELHI: Taking a tough stance against shortcomings in the auditing
procedures of a large number of companies, the government has said that
the corporates and their 'cost auditors' are not doing their job
seriously.<br />
To address the issue and ensure highest quality standards, the <a href="http://economictimes.indiatimes.com/topic/Ministry%20of%20Corporate%20Affairs">Ministry of Corporate Affairs</a>
has proposed a minimum fee structure for cost audit and related
services and capping of compliance reports to be filed by the cost
auditors.</div>
<div class="float" style="clear: both; height: 1px; line-height: 1px;">
<img alt="" height="1" src="http://articles.economictimes.indiatimes.com/images/pixel.gif" width="1" /></div>
'Cost audit' refers to an auditing procedure for assessing the
operational efficiencies and resource management of a company. It helps
in ascertaining whether a company's production, marketing, sales and
other business activities are being done in a cost-effective manner or
not.<br />
"Examination of cost audit reports of previous few years
show that in large number of cases, the quality of such reports are not
satisfactory/up to the expected level," the Ministry said in a
communication on Tuesday.<br />
The Ministry said that similar such shortcomings have been observed by many other government agencies.<br />
"This poses a serious problem with regulators and other user agencies
in the government who uses these reports as key inputs in their decision
making process," the circular said.<br />
According to the Ministry,
it has been observed that in majority of such cases, the company and the
cost auditor have not taken the job seriously.<br />
"One of the key
reasons appears to be very low audit fee which is not commensurate with
the size of the company and nature of its activities.<br />
"Though it
may not be proper to draw such direct correlation between quality of
services rendered with that of fees paid, but such a hypothesis cannot
be ignored," it said.<br />
To ensure the highest level of quality
standards, the Ministry has advised companies and cost auditors to
follow the minimum fee structure suggested by the <a href="http://economictimes.indiatimes.com/topic/Institute%20of%20Cost%20Accountants%20of%20India">Institute of Cost Accountants of India</a> for cost audit and non-audit services.<br />
"While there is no law governing the audit fee payable by the companies
(or charged by the auditors), there appears some justification in
creating a sense of discipline among the entities so as to ensure that
cost audit mechanism instituted by law fulfills its intended purpose,"
the circular said.<br />
Such a fee structure for cost audit and compliance would be prepared by the Institute and the Ministry.<br />
Looking to curb concentration of compliance certificates, the Ministry
has proposed to fix a limit of 50 compliance reports for each practising
cost accountant or for each partner of a firm of cost accountants.<br />
All the changes are proposed to be made effective from the financial year starting on or after January 1, 2013.<br />
The Ministry has sought comments on these proposals till November 25.<br />
<br />
<br />
<div style="text-align: right;">
Reference : http://economictimes.indiatimes.com/</div>
<div style="text-align: right;">
Link to post : http://articles.economictimes.indiatimes.com/2012-11-07/news/34971146_1_cost-audit-cost-accountants-fee-structure </div>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-26075879885936104112012-11-02T17:45:00.000+05:302012-11-02T17:45:17.375+05:30The Institute has signed an MOU with CMJ University established in Meghalaya states<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div class="gmail_quote">
<table align="left" border="0" cellpadding="0" cellspacing="0" style="width: 100%px;"><tbody>
<tr> <td>Salient features of the MOU signed between the Institute of Cost Accountants of India and CMJ University, Shilong. </td> </tr>
<tr> <td scope="col"><img alt="" height="1" src="http://www.icwai.org/icwainew/images/blank.gif" width="1" /></td></tr>
<tr> <td valign="top"><br /></td> </tr>
<tr> <td height="343" valign="top" width="659"><ol>
<li> Hold jointly workshops, seminars, continuing education and training programs for practicing professionals and corporate executives on themes of topical and professional interest on equal surplus / deficit sharing basis. </li>
<li> Regularly exchange Journals published by the parties hereto on a complimentary basis, with liberty to reproduce in each other's publications such portion which may be of interest subject to acknowledging the source. </li>
<li> Regularly exchange course materials, case studies, research publications and other academic and research inputs. </li>
<li> Undertake joint research projects which are mutually beneficial. </li>
<li> Reciprocate participation in National and International conferences organized by the parties hereto. </li>
<li> Extend help and co-operation in developing curriculum of academic and continuing education programs, on such terms as may be mutually agreed to, including Joint Meeting of Curriculum Development Committees. </li>
<li> Develop jointly study material under Distance Education Program, on such terms as may be mutually decided. </li>
<li> CMJ University to recognize membership of the ICAI, as equivalent to Masters Degree for the purpose of pursuing Ph. D in commerce and allied disciplines. </li>
<li> ICAI agrees to open its Representative Office at the Campus of CMJ University for the enrolment of students for Cost Accountancy Course and to provide other services to students of ICAI including setting up of Study Centre. </li>
<li> Exchange of faculties as may be mutually agreed to subject to convenience of the parties thereto. </li>
<li> Organize program jointly for training the trainers for mutual benefit and advantage. </li>
<li> Any other matter of mutual interest including sharing of facilities like infrastructure, library, reading room etc. as may be mutually agreed. </li>
</ol>
</td></tr>
</tbody></table>
<span class="HOEnZb"><span style="color: #888888;"><br clear="all" /></span></span></div>
<br /></div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-27085746445325172692012-11-01T00:37:00.000+05:302012-11-01T00:37:53.430+05:30Amendments to Capital Gains Accounts Scheme, 2012:<div dir="ltr" style="text-align: left;" trbidi="on">
Amendments to Capital Gains Accounts Scheme, 2012:<br />
<br />
NOTIFICATION NO 44/2012, Dated: October 25, 2012<br />
In exercise of the powers conferred by sub-section (2) of section 54, sub-section (2) of section 54B sub-section (2) of section 54D sub-section (4) of section 54F sub-section (2) of section 54G and sub-section (2) of section 54GB of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following Scheme to amend the Capital Gains Account Scheme, 1988, namely:-<br />
1.(a) This Scheme may be called the Capital Gains Accounts (First Amendment) Scheme, 2012.<br />
(b) It shall come into force on the date of its publication in the Official Gazette.<br />
2. In the Capital Gains Accounts Scheme, 1988 (hereinafter referred to as the said Scheme), in the opening paragraph, for the words, brackets, figure and letter and sub-section (2) of section 54G", the words, brackets, figures and letters, "sub-section (2) of section 54G and sub-section (2) of section 54GB" shall be substituted.<br />
3. In sub-paragraph (3) of paragraph 1 of the said Scheme, for the word, figure and letter "or 54G", the word, figures and letters, "54G or 54GB" shall be substituted.<br />
4. In clause (f) of paragraph 2 of the said Scheme, for the word, figures and letter "or 54G", the figure, letter and words, "54G or an eligible company as referred to in section 54GB" shall be substituted.<br />
5. In paragraph 3 of the said Scheme, after the words, figures and letter "or section 54G", the words, figures and letters "or section 54GB" shall be inserted.<br />
6. In sub-paragraph (4) of paragraph 4 of the said Scheme, after the words "the depositor", the words, figures and letters or the eligible assesse as referred to in section 54GB" shall be inserted.<br />
7. In sub-paragraph (1) of paragraph 10 of the said Scheme, after the word, figures and letter "section 54G", the words, brackets, figures and letter "or sub-section (2) of section 54GB" shall be inserted.<br />
8. In paragraph 13 of the said Scheme.-<br />
(a) in sub-paragraph (1), after the words "If a depositor", the words, figures and letter, "other than an eligible company as referred to in section 54GB" shall be inserted;<br />
(b) after sub-paragraph (1), the following sub-paragraph shall be inserted namely:-<br />
"(1A) If a depositor, being an eligible company, referred to in section 54GB, desires to close its account, then, -<br />
(i) it shall make a joint application signed by the eligible assesse referred to in section 54GB;<br />
(ii) the application shall be made with the approval of the Assessing Officer having jurisdiction over the eligible assesse referred to in section 54GB; and<br />
(iii) such application shall be made in Form G to the deposit office or as near thereto as possible.<br />
and the deposit office shall pay the amount of balance including interest accrued, to the credit In the account of the depositor by means of crediting such amount to any bank account of the depositor.".<br />
9. In Form A to the said Scheme.-<br />
(a) for the figures, letter and words "54G of the Act", the figures, letters and words "54G/54GB of the Act" shall be substituted.<br />
(b) after item 7, the words, figures, letters and brackets Signature/Thumb impression of the eligible assesse as referred to in section 54GB of the Act [applicable in case of section 54GB only", shall be inserted.<br />
10. In Form C to the said Scheme, in item 2, after the word, figures and letter "section 54G", the word, figures and letter / "section 54GB" shall be inserted.<br />
11. In Form G to the said Scheme,-<br />
(a) after item 6, the words, figures, letters and brackets "Signature/Thumb impression of the eligible assesse as referred to in section 54GB of the Act [applicable in case of section 54GB only)", shall be inserted.<br />
(b) in the notes, after item 2, the following, item shall be inserted, namely:-<br />
<br />
"3. In case the account to be closed pertains to an eligible company as referred to in section 54GB, the form shall also be signed by the eligible assesse referred to in the said section.".<br />
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-79343798193494309912012-10-29T13:38:00.000+05:302012-10-29T13:38:03.873+05:30Public Notice on Foreign Trade Policy<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div class="gmail_quote">
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";">Reference Links : </span><a href="http://www.icwai.org/" target="_blank"><span style="font-family: "Arial","sans-serif";">www.icwai.org</span></a><span style="font-family: "Arial","sans-serif";"></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif";"> </span><a href="http://members.icwai.org/members/docs/Public-Notice-dated-11-Oct-2012.pdf" target="_blank">http://members.icwai.org/members/docs/Public-Notice-dated-11-Oct-2012.pdf</a><b><span style="font-family: "Arial","sans-serif";"></span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<br /></div>
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-family: "Arial","sans-serif"; font-size: 7.0pt;">10/12/12 <a href="http://164.100.9.245/Exim/2000/PN/PN12/pn2212.htm" target="_blank">164.100.9.245/Exim/2000/PN/PN12/pn2212.htm</a></span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<br /></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">TO BE PUBLISHED IN THE GAZETTED OF INDIA EXTRAORDINARY</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">(PART-I, SECTION-I)</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">GOVERNMENT OF INDIA</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">MINISTRY OF COMMERCE AND INDUSTRY</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">DEPARTMENT OF COMMERCE</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">PUBLIC NOTICE No. 22(RE-2012)/2009-14</span></div>
<div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center; text-autospace: none;">
<span style="font-size: 12.0pt;">NEW DELHI THE 11</span><span style="font-size: 9.5pt;">TH </span><span style="font-size: 12.0pt;">October, 2012</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-size: 13.0pt;">Subject:- Certification of various documents by Cost Accountants under Handbook of Procedure Vol.I and Appendices under Foreign Trade Policy.</span></div>
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<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none; text-indent: .5in;">
<span style="font-size: 13.0pt;">In exercise of powers conferred under Para 2.4 of the Foreign Trade Policy, 2009-14, the Director General of Foreign Trade hereby makes the following amendments in the Handbook of Procedure Vol.I and Appendices 2009-2014 in public interest:</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none; text-indent: .5in;">
<br /></div>
<div style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-size: 13.0pt;">1.<span style="font: 7.0pt "Times New Roman";"> </span></span><span style="font-size: 13.0pt;">Wherever the term "Chartered Accountant" appears, it would deem to mean and include "Cost Accountant" also. Similarly, wherever the term "FCA" has been used in respect of a Chartered Accountant, it would deem to mean and include the term "FCMA" in respect of a Cost Accountant.</span></div>
<div style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-size: 13.0pt;">2.<span style="font: 7.0pt "Times New Roman";"> </span></span><span style="font-size: 13.0pt;">The words "CA Number" shall be substituted to read as "Membership Number".</span></div>
<div style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: none;">
<span style="font-size: 13.0pt;">3.<span style="font: 7.0pt "Times New Roman";"> </span></span><span style="font-size: 13.0pt;">The words "Cost and Works Accountant" shall be substituted to read as "Cost Accountant". </span></div>
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<br /></div>
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<span style="font-size: 13.0pt;">Effect of this Public Notice:- Under the EXIM Policy and Procedure, wherever certification by a Chartered Accountant was required, the exporters would be able to get certification done by a Cost Accountant also.</span></div>
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<br /></div>
<div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right; text-autospace: none;">
<span style="font-size: 13.0pt;">Sd/-</span></div>
<div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right; text-autospace: none;">
<span style="font-size: 13.0pt;">(Anup K.Pujari)</span></div>
<div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right; text-autospace: none;">
<span style="font-size: 13.0pt;">Director General of Foreign Trade</span></div>
<div align="right" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: right; text-autospace: none;">
<span style="font-size: 13.0pt;">E-mail: <a href="mailto:dgft@nic.in" target="_blank">dgft@nic.in</a></span></div>
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="font-size: 13.0pt; line-height: 115%;">(F.No.01/94/180/468-Appendices/AM12/PC 4)</span></div>
<span class="HOEnZb"><span style="color: #888888;"> </span></span></div>
<br /></div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-38666062549686103062012-10-18T12:45:00.004+05:302012-10-18T12:45:29.179+05:30Applicability of Revised Schedule VI from Examinations to be held in December 2012 and onwards<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<div class="gmail_quote">
Reference links<br />
<a href="http://www.icwai.org/" target="_blank">www.icwai.org</a><br />
<a href="http://icwai.org/icwainew/docs/updates/Clarification-for-applicability-of-Revised-Schedule-VI.pdf" target="_blank">http://icwai.org/icwainew/docs/updates/Clarification-for-applicability-of-Revised-Schedule-VI.pdf</a><br />
<br />
Ref: DOS/8/2012-13: Dated: 10/10/2012 <br />
<br />
CLARIFICATION <br />
<br />
<b><u>Sub: Applicability of Revised Schedule VI from Examinations to be held in December 2012 and onwards <br /> </u></b>The Directorate had been receiving enquiries relating to applicability of Revised Schedule VI in Examinations of the Institute to be held in December 2012. All concerned were informed that the same would be applicable. It is observed that there is some confusion which has aroused due to some clarifications provided earlier. <br />
<br />
Hence, it is stated for general information that the Revised Schedule VI shall be applicable from December 2012 Examination onwards (until further notification/clarification on this issue) of the Institute for the following papers: <br />
<br />
Group I: Paper 5: Financial Accounting (already uploaded in website) <br />
Group IV: Paper 16: Advanced Financial Accounting & Reporting (to be uploaded by 19th October, 2012) <br />
<br />
Students are advised to visit the website of the Institute under "Students-download" section for making reference to "Additional Reading Materials on Revised Schedule VI" (check website from 19th October,2012) and "Revisionary Test Paper – for December 2012 Examination" <br />
<br />
<br />
R.N.Pal <br />
Sr.Director (Directorate of Studies) </div>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-6683137772412496812012-10-18T12:45:00.001+05:302012-10-18T12:45:11.519+05:30Re-examination schedule in Gujarat Dec-2012<div dir="ltr" style="text-align: left;" trbidi="on">
Dear All,<br />
Due to Elections, the institute has changed exam schedule in Gujarat.<br />
Please check out dates below.<br />
also find attachment.<br />
<br />
Ref.No.Ex/12/2012 October 9, 2012<br />
<br />
ANNOUNCEMENT<br />
<br />
On 3rd October 2012 the Election Commission of India had notified the schedule of Gujarat State Assembly Elections, 2012.<br />
The notification had stated that there will be 2 (Two) phases of Assembly Elections for Gujarat State Assembly Election<br />
2012. For the first phase, the date of polling will be 13.12.2012 (Thursday) and the 2nd phase polling will be held on<br />
17.12.2012 (Monday).<br />
<br />
In view of the above, the Institute has rescheduled its December 2012 examination for Gujarat State only as per following :<br />
<br />
<br />
<table align="left" border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 6.75pt; margin-right: 6.75pt; width: 680px;"> <tbody>
<tr style="height: 61.7pt;"> <td style="border: solid windowtext 1.0pt; height: 61.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: black;">Examination Centre </span></b></div>
</td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 61.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: black;">Original date of Examination </span></b></div>
</td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 61.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: black;">Revised date of Examination </span></b></div>
</td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 61.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: black;">Intermediate 9.30 A.M. to 12.30 P.M. </span></b></div>
</td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 61.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: black;">Final 2.00 P.M. to 5.00 P.M. </span></b></div>
</td> <td style="border-left: none; border: solid windowtext 1.0pt; height: 61.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<b><span style="color: black;">Foundation 2.00 P.M. to 5.00 P.M. </span></b></div>
</td> </tr>
<tr style="height: 32.5pt;"> <td style="border-top: none; border: solid windowtext 1.0pt; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Surat Centre Code -117 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">13.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">23.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Applied Direct Taxation </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Indirect & Direct Tax Management </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">NIL </span></div>
</td> </tr>
<tr style="height: 32.5pt;"> <td style="border-top: none; border: solid windowtext 1.0pt; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Vapi Centre Code -129 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">13.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">23.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Applied Direct Taxation </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Indirect & Direct Tax Management </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 32.5pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">NIL </span></div>
</td> </tr>
<tr style="height: 48.7pt;"> <td style="border-top: none; border: solid windowtext 1.0pt; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Adipur-Kachchh Centre Code -134 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">17.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">23.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Applied Indirect Taxation </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Business Valuation Management </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Business Mathematics & Statistics Fundamentals </span></div>
</td> </tr>
<tr style="height: 48.7pt;"> <td style="border-top: none; border: solid windowtext 1.0pt; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Ahmedabad Centre Code -101, 132 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">17.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">23.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Applied Indirect Taxation </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Business Valuation Management </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Business Mathematics & Statistics Fundamentals </span></div>
</td> </tr>
<tr style="height: 48.7pt;"> <td style="border-top: none; border: solid windowtext 1.0pt; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Baroda Centre Code -103 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">17.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">23.12.2012 </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Applied Indirect Taxation </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Business Valuation Management </span></div>
</td> <td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 48.7pt; padding: 0in 5.4pt 0in 5.4pt; width: 85.0pt;" width="113"><div align="center" class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: center;">
<span style="color: black;">Business Mathematics & Statistics Fundamentals </span></div>
</td> </tr>
</tbody></table>
<br clear="all" />
<br />
<br />
Scheduled date and Subject of Examination except above two days as per Time Table and Programme – December 2012 of<br />
above centres in Gujarat will remain unchanged.<br />
<br />
The Examination Time Table and Programme – December 2012 for all other Centres in India and Overseas will remain<br />
unchanged.<br />
<br />
A. Das<br />
Director (Examination)<br />
<br />
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-1063446439057063942012-10-06T12:01:00.000+05:302012-10-06T12:01:15.786+05:30President’s Communiqué - October 2012<div dir="ltr" style="text-align: left;" trbidi="on">
<div align="center" style="-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; color: #333333; font-family: Arial; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">
<b><i>President’s Communiqué - October 2012</i></b></div>
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<tr><td valign="top" width="30%"><img alt="" hspace="10" src="http://www.icwai.org/icwainew/images/Icwai-new-design-images/RKS.JPG" style="float: left;" title="" vspace="10" /></td><td valign="top"><div align="left" style="font-weight: bold;">
"You miss 100% of the shots you don’t take."</div>
<div align="right" style="font-weight: bold;">
---- Wayne Gretzky</div>
</td></tr>
</tbody></table>
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Dear Professional Colleagues,</div>
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The concept of sustainable development and ethical business practices have been an integral part of our culture and ethos from time immemorial. The very first entry in our accounting books is<span class="Apple-converted-space"> </span><b>"Subh Labh"</b>. This practice of starting with "Subh" which delineates the "Labh" that follows, is what the world has started talking now in terms of sustainable development and integrated reporting framework. The objectives of sustainable development includes meeting of the needs of the present without compromising the abilities of the future generations to meet their own needs.</div>
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The CMA Professionals have an important role to play in this area with their specialized domain knowledge. The cost reporting framework aims at highlighting the optimization of resources on a PPP (Planet, People and Profit) philosophy. The role we, from the emerging economy can play has been recognized through our membership of the Accounting Body Network (ABN) of Prince of Wales Foundation Accounting for Sustainability (A4S). On the domestic front, the Institute has been actively associated with the Global Reporting Initiative and has been working very closely with the Ministry of Corporate Affairs (MCA) on the Integrated Reporting initiatives and the Voluntary Business Responsibility Guidelines.</div>
<div align="justify" class="bodytext" style="-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; color: #333333; font-family: Arial; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; padding-bottom: 3px; padding-top: 3px; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">
Our efforts have been duly recognized by International Federation of Accountants (IFAC) where we are likely to be getting the Chair on Sustainability. This honour has rarely been given to any accounting body outside Europe and USA.</div>
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<b>Infrastructure Initiatives</b></div>
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While setting up the agenda for the current year we promised to focus on infrastructure, visibility and competency building measures. I am happy to inform you that the Institute is scaling up its activities in these priority areas and results are visible in the working of each Directorate and Department. To show the progress the Institute has made during the last month, I am now giving you a brief of activities of the Directorates and Departments of the Institute.</div>
<div align="justify" class="bodytext" style="-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; color: #333333; font-family: Arial; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; padding-bottom: 3px; padding-top: 3px; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">
Aurangabad Chapter’s acquired new property and the registration work completed. Jaipur chapter purchased land admeasuring 3000 sq.mtrs which will help in creating good infrastructure facility for the benefit of members and students.</div>
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Initiated action for purchase of land at strategic locations at Jaipur for a State of Art facility for Centre of Excellence</div>
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<b>IT Backbone Initiatives</b></div>
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<b>Information Technology Department – XBRL Taxonomy</b></div>
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I am glad to inform the members that the XBRL taxonomy and the Business Rules for the Cost Audit Report and Compliance Report have been finalized in consultation with the Ministry of Corporate Affairs. The taxonomy as well as Business Rules can be downloaded from the website of the Institute as well as the XBRL section of the website of MCA. With this our institute has taken the global leadership position in cost taxonomy.</div>
<div align="justify" class="bodytext" style="-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; color: #333333; font-family: Arial; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; padding-bottom: 3px; padding-top: 3px; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">
The Institute is also organizing a number of awareness programmes on the Final Costing Taxonomy for the members across the country to familiarize them with the XBRL concepts and providing practical guidelines on creation of XBRL instance documents of the Cost Audit Report and Compliance Report. Members are requested to attend these programmes at their convenient locations and utilize the opportunity to gain deeper insight into the filings in XBRL mode.</div>
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<b>Online Membership Module:</b></div>
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Online membership module has been upgraded to self-monitor CEP hours. Members can now see their CEP status online. Further modifications are being carried out to make it more user friendly.</div>
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<b>Online Examination Form</b></div>
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Continuing on the drive to automate the activities of the Institute, the Examination Department of the Institute has hosted the Online Examination Application Form for the December 2012 term along with the Payment Gateway using debit / credit card. This is done for the first time in the history of the Institute and the step will help the students to apply for the exams by the click of the mouse.</div>
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<b>Professional Development Activities</b></div>
<ul align="justify" style="-webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px; color: #333333; font-family: Arial; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;">
<li class="bodytext" style="color: #333333; font-family: Arial; font-size: 12px; padding-bottom: 3px; padding-top: 3px;"><b>Tamil Nadu VAT (Third Amendment) Act, 2012</b><br />In the President’s Communiqué for the month of July 2012, my predecessor CMA M. Gopalakrishnan had informed about the recognition of cost accountants by Tamil Nadu for their VAT Audit. Tamil Nadu Government has now notified on 30th August 2012, Form 16-A and Form WW whereby every registered dealer liable to get his accounts audited inter alia by Cost Accountants, as per sub-section (1) of Section 63-A under the Act, and shall furnish the audit report in Form-WW.</li>
<li class="bodytext" style="color: #333333; font-family: Arial; font-size: 12px; padding-bottom: 3px; padding-top: 3px;"><b>Exposure Draft Guidance Note on Performance Appraisal Report (Form-III)</b><br />I am happy to inform the members that the Institute has exposed the revised Exposure Draft Guidance Note on Performance Appraisal Report (Form III), which is hosted on the Institute’s website for comments/suggestions from members and Industry.</li>
<li align="justify" class="bodytext" style="color: #333333; font-family: Arial; font-size: 12px; padding-bottom: 3px; padding-top: 3px;"><b>Advanced Studies:<span class="Apple-converted-space"> </span></b><br />The Directorate of Advanced studies at Hyderabad Centre of Excellence (HEC) has embarked on Marketing of the Flagship Programs, targeting the Batches commencing January 2013. The Directorate had interactions with few Top Executives of Companies. Seminars, Road shows are being proposed to propagate the various programs of HCE.<span class="Apple-converted-space"> </span><br />The First Batch of Enterprise Performance Management and Appraisal Systems (EPMAS) is into its eighth week. The Examination in Paper – I of the course has recently been completed.</li>
</ul>
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Besides the above, the HCE has organized / conducted the following Programs. A Seminar on "Developing Cost Statements - A Practical Approach" on 8th September 2012 wherein CMA D Zitendra Rao addressed the audience at a half day work shop on “Integrity at Work” in collaboration with Chartered Institute for Securities & Investment Was conducted on 14th September. Mr. Kevin Moore, Director CISI addressed and Mr. CSV Ahalada Rao, Director, B5 Consulting Pvt Ltd addressed on Corporate Governance.</div>
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<b>International Affairs</b></div>
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The delegation of the Institute visited Kathmandu, Nepal during 14th to 15th September, 2012 to attend SAFA Events, Meetings and International Conference organized by the Institute of Chartered Accountants of Nepal. I along with CMA T.C.A. Srinivasa Prasad, CMA S.R. Bhargave, CMA H.K. Goel, Council Members and Institute Officials attended the meetings and the conference. During these meetings it was discussed to promote interaction through videoconferencing and webinars to bring awareness in the SAARC region about the activities of member countries. The need for the uniform legislation in the member body countries was also felt by the members.</div>
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The Delegation Comprising CMA Sanjay Gupta, CMA. TCA Srinivasa Prasad, Council Members along with the Officials of the Institute attended the Global Reporting Initiative - GRI's South Asia conference: Sustainability Reporting for a Sustainable Economy on 26th September 2012. Dr. M. Veerappa Moily, Hon’ble Union Minister of Corporate Affairs and Power, was the Chief Guest of the Conference and Mr. Naved Masood, Secretary, Ministry of Corporate Affairs, Government of India was the Guest of Honour in the conference.</div>
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<b>Training Programs</b></div>
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A Seminar on "Cost Accounting Records Rules and Cost Audit Report Rules" was organized by the CEP – 1 directorate at Bhubaneswar on 14th September 2012. The Seminar was well received by the Industry, Corporate and practicing professionals. The Institute also organized two programs at Puducherry on `Issues in Direct Taxation, TDS and Tax Planning’ and `Risk Based internal Audit for Corporate Governance’.</div>
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It is a matter of pleasure for all of us that for the first time an International Program is being organized for Indian Railways for IRAS Officers on the topic `Finance and Accounts’ held at Delhi (NCR), London and Paris.</div>
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Considering the mandate by Ministry of Corporate Affairs, series of awareness programmes on "Filing of Cost Audit and Compliance Report in XBRL (eXtensible Business Reporting Language)” was organized by CEP-2 Directorate across country covering Delhi, Chennai, Mumbai, Lucknow, Kolkata, Coimbatore and Bhubaneswar during the month. For successful implementation of the mandate, our Regional Councils and Chapters have also taken up this drive very seriously in training the members at large and organized programmes at NIRC, Pune, Ahmedabad, Aurangabad, Surat, Baroda, Jamshedpur, Chandigarh and so on. There was overwhelming response and active participation by members.</div>
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I would like to extend sincere thanks to Ministry of Corporate Affairs, Shri B.B. Goyal (Advisor Cost) Cost Audit Branch and Dr. Pankaj Srivasatava, Director for guidance and enlightening the members with this new mechanism of XBRL under new framework of Cost Audit and Compliance Report. The Department will continue with series of programmes and more programmes for professional relevance and importance.</div>
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I am glad to inform that Online CEP module has been developed to facilitate our members to view the updated status of CEP Credit Hours awarded to them by the Institute for the programmes organised by Head Office, Regional Councils and Chapters. Members can view their CEP Credit Hours on our website under Online Membership Application System.</div>
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<b>CAT Directorate Initiatives</b></div>
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CAT Directorate has geared up to conduct the first on-line Examination of CAT Competency Level II in the month of December 2012 and the mock on-line test will be made open to the students in the first week of October,2012 enabling the CAT Students to familiarize with the pattern of the on-line examination</div>
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<b>Campus Placement Initiatives</b></div>
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On 29 Sept 2012 your Institute organized first-ever "Live and Inter-active Orientation Programme on Campus Placement" through Gyan Darshan TV for the June 2012 final qualified CMAs. This programme was well received by the students and many students across the country participated and interacted with the panel and benefited in knowing about Campus Placement programme scheduled during October, 2012.</div>
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<b>Human Resource Department</b></div>
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The HR Department of the Institute organized a training on "Principles of Management" on 11th September, 2012 at Headquarters, Kolkata, which was facilitated by CMA T.C.A. Srinivasa Prasad and participated by the officials (Deputy Director and above) of the Institute.</div>
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In order to motivate the work force of the Institute an internal process of promotional activity from the designation of Senior Officer till deputy Director was organized by the Executive Committee at Headquarters, Kolkata on 28th August 2012.</div>
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<b>Partnership with FISME</b></div>
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On 24th September 2012, I alongwith CMA Amit Apte, Council Member, met Shri V.K. Agarwal, President, FISME at Lucknow. We discussed many issues relating to the expectation of the Industry from the Institute and the areas where the Institute could play a vital role to the overall growth strategies of Small and Medium Enterprises in the country. This meeting has further strengthened the relationship between the Institute and FISME.</div>
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I wish all the members and their family on the occasion of Gandhi Jayanti, Durga Puja, Dussehra, Id-uz-Zuha (Bakr-id) and Laxmi Puja.</div>
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With warm regards,</div>
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<br /></div>
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(CMA Rakesh Singh)</div>
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1st October 2012</div>
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<br /></div>
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<br /></div>
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Reference Link : www.icwai.org </div>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-72450175386505047472012-10-05T23:45:00.000+05:302012-10-05T23:45:14.085+05:30Official amendments to the Pension Fund Regulatory and Development Authority Bill, 2011<div dir="ltr" style="text-align: left;" trbidi="on">
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Press Information Bureau<br />Government of India<br />Ministry of Finance<br /><div style="font-size: 14px; font-weight: lighter; text-align: right;">
04-October-2012 20:41 IST</div>
</div>
<div style="font-weight: bold; text-align: center;">
Official amendments to the Pension Fund
Regulatory and Development Authority Bill, 2011<br /></div>
The Union
Cabinet today approved the introduction of certain official amendments
to the Pension Fund Regulatory and Development Authority Bill, 2011.
These official amendments have been necessitated in view of the
recommendations of the Standing Committee on Finance which has examined
the Bill. Based on the recommendations of the Standing Committee on
Finance, the Government has decided to accept the following:<br /><br />1.
that the subscriber seeking minimum assured returns shall be allowed to
opt for investing his funds in such schemes providing minimum assured
returns as may be notified by the Authority;<br /><br />2. withdrawals not
exceeding 25 per cent of the contribution made by subscriber will be
permitted from the individual pension account subject to the conditions,
such as, purpose, frequency and limits, as may be specified by
regulations by the Pension Fund Regulatory
Authority and Development Authority (PFRDA)<br /><br />3. the foreign
investment ceiling in the pension sector at 26 per cent or such
percentage as may be approved for the Insurance Sector, whichever is
higher may be incorporated in the present legislation;<br /><br />4. to
establish a vibrant Pension Advisory Committee with representation from
all major stakeholders to advise PFRDA on important matters of framing
of regulations under the PFRDA Act.<br /><br />5. the membership of the PFRDA will be confined to professionals having expertise in economics, finance or law only.<br /><br />The
New Pension Scheme (NPS) has been made mandatory for all the Central
Government employees (except Armed Forces) entering service with effect
from 1.1.2004. 27 State / UT Governments have notified NPS for their
employees. NPS has been launched for all citizens of the country
including unorgnised sector workers, on voluntary basis, with effect
from 1st May,
2009. Further, to encourage people from the unorganised sector to
voluntarily save for their retirement, Government has launched the
co-contributory pension scheme titled "Swavalamban Scheme" in the Budget
of 2010-11. As on 7th September, 2012 the number of subscribers under
NPS is 37.45 lakh with a corpus of Rs. 20535.00 crore.<br /><br />In order
to effectively invest and manage such huge funds belonging to a large
number of subscribers and to ensure the integrity of the NPS, creation
of a statutory PFRDA with well defined powers, duties and
responsibilities is considered absolutely necessary and would benefit
all NPS subscribers.<br /><br />The official amendments to the Bill will be moved in the next session of the Parliament.<br /><br />Background:<br /><br />The following recommendations of the SCF have not been accepted:<br /><br />•
As regards the recommendation of SCF for compulsory insurance of the
funds of subscribers by pension
fund managers, a provision has already been made in the PFRDA Bill, to
protect the interest of the subscribers by ensuring safety of
contribution of subscribers and also by keeping the operational costs in
check,<br /><br />• As regards the selection of pension fund managers in
such a manner that one third of all such fund managers are from the
public sector, since a provision has already been made in the PFRDA Bill
that at least one of the pensions fund shall be from the public sector
which sets a floor, the ceiling can be any number based on objective
criteria.<br /><br />The Pension Fund Regulatory and Development Authority
Bill, 2005 was initially introduced in the Lok Sabha in March, 2005 to
provide for a statutory PFRDA. However, since the Bill and the official
amendments, based on the recommendations of the Standing Committee on
Finance, could not be considered by the Lok Sabha, and the Bill lapsed
on dissolution of the 14th Lok Sabha. The
Government had announced in the Budget 2011-12 that the revised PFRDA
Bill would be moved in Parliament. Accordingly, the PFRDA Bill, 2011 was
introduced in the Lok Sabha on the 24th March, 2011 to provide for a
statutory regulatory body, the Pension Fund Regulatory and Development
Authority (PFRDA) under the provisions of the Bill. The legislation
sought to empower FRDA to regulate the New Pension System (NPS). The
PFRDA Bill, 2011 was referred to the Standing Committee on Finance on
the 29th March, 2011 for examination and report thereon. The Standing
Committee on Finance gave its Report on 30th August, 2011. Based on the
recommendations of Standing Committee, a Cabinet Note, to introduce
additional recommendations of the Standing committee on Finance was
moved on 19th December, 2011. Since the PFRDA Bill, 2011 was deferred in
the Winter Session of the Lok Sabha, therefore the Cabinet Note was
withdrawn.<br /><br /><center>
***</center>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-59562243026118624952012-10-05T23:43:00.001+05:302012-10-05T23:43:26.922+05:30Official amendments to the Forward Contracts (Regulation) Amendment Bill, 2010<div dir="ltr" style="text-align: left;" trbidi="on">
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Press Information Bureau<br />Government of India<br />Ministry of Consumer Affairs, Food & Public Distribution<br /><div style="font-size: 14px; font-weight: lighter; text-align: right;">
04-October-2012 20:40 IST</div>
</div>
<div style="font-weight: bold; text-align: center;">
Official amendments to the Forward Contracts (Regulation) Amendment Bill, 2010.<br /></div>
The
Union Cabinet today approved the proposal to move official amendments
to the Forwards Contracts (Regulation) Amendment Bill, 2010 (the Bill,
2010), based upon the recommendations of the Parliamentary Standing
Committee of the Ministry of Consumer Affairs, Food & Public
Distribution in its 15th Report, in the next session of Parliament.<br /><br />After
the Bill is passed and enacted by Parliament, Forward Market Commission
(FMC) as a regulator will get autonomy and power to regulate the market
effectively. New products like 'options' will be allowed in the
commodity market. This will benefit various stakeholders including
farmers to take benefit of 'price discovery and 'price risk management'.
The Bill would enhance public accountability of the Regulator by
providing for an Appellate Authority.<br /><br />The recommendations of the
Committee
with regard to definition of the "Commodity Derivative" in Clause 3,
establishment and constitution of Forward Markets Commission in Clause
4, term of office of the Chairman and every other whole time members in
Clause 5, accounts and audit in Clause 9, penalties for contravention of
certain provisions of Chapter IV in Clause 25 of the Bill, 2010 have
been accepted and are proposed to be incorporated as official
amendments. The amendment in Clause 25 will require consequential
amendment in Clause 26, which is also proposed to be included in the
official amendments.<br /><br />Background:<br /><br />The Forward Contracts
(Regulation) Act provides for the regulation of commodity futures
markets in India and the establishment of the Forward Markets Commission
(FMC). While the markets have been liberalized with effect from April,
2003 and modern institutional structures are in the process of being
evolved, yet the market regulator, FMC is largely
functioning in its traditional format.<br /><br />Many of the existing
provisions of the Forward Contracts (Regulation) Act need changes to
strengthen and reinforce legal provisions to meet the requirements of
changing environment. In order to amend further the Forward
Contracts(Regulation) Act, the Bill, 2010 was introduced in the Lok
Sabha on 6.12.2010. The Bill, 2010 went through examination by the
Committee which submitted its 15th Report on 22nd December, 2011.<br /><br /><center>
***</center>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-51414584147706385882012-09-02T01:29:00.000+05:302012-09-02T01:29:08.550+05:30No need of CC for CWA examinations<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
Dear Sir,</div>
<div>
</div>
<div>
Recently a member of WIRC, ICWAI provided me with a notification published in the Official Gazzete dated 25th May 2012 wherein in Point No. 8 it is stated that "In regulation 30 under the heading 2, "Conditions for appearance in the Examination", clause (a) shall be omitted". <br />
<br />
Now Clause (a) of the said regulation speaks about obtaining a valid Coaching completion for appearing in the <a href="http://www.blogger.com/blogger.g?blogID=3654551038392576608">examination.</a> I mailed <a href="mailto:postal@icwai-wirc.org">postal@icwai-wirc.org</a> inquiring if the CC availment is must for students appearing in December eamination and the reply I got was </div>
<div>
"Dear Sir, <br />
Yes, hereafter NO CC required, but Computer training & GD you have to compelte, <br />
WIRC of ICAI"</div>
<div>
</div>
<div>
For your reference I am attaching the notification dated 25-05-2012 and another notification speaking about REGULATION 30 HEADING 2 CLAUSE (a).</div>
<div>
</div>
<div>
For your assurance kindly analyze and confirm the same at your end also and then post it in your blogs so that maximum students will be aware of the notification as the ICWAI website do not state anything about this and even the official dont want to comment anything.</div>
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</div>
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I can even forward my mail conversation with <a href="mailto:postal@icwai-wirc.org">postal@icwai-wirc.org</a> if required.</div>
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</div>
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Please do the needful</div>
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</div>
<div>
Regards</div>
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</div>
</div>
Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-2600042608274027272012-07-06T23:42:00.000+05:302012-07-06T23:42:02.362+05:30CCI imposes penalty of more than Eight Crores on Multi System Operators Group (Fast Way Group)<div dir="ltr" style="text-align: left;" trbidi="on">
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Press Information Bureau<br />
Government of India<br />
Ministry of Corporate Affairs<br />
<div style="font-size: 14px; font-weight: lighter; text-align: right;">
03-July-2012 15:06 IST</div>
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<div style="font-weight: bold; text-align: center;">
CCI imposes penalty of more than Eight Crores on Multi System Operators Group (Fast Way Group)</div>
The Competition Commission of India has found Fast Way Group abusing its dominance in the cable TV service in the territory of Punjab and Chandigarh in violation of the provisions of the Competition Act, 2002. The order was passed pursuant to investigation carried out by the Director General upon information filed by M/s Kansan News Private Limited a broadcaster of a news and current affairs TV channel known as 'Day and Night News' and operating in the states of Punjab, Haryana, Himachal Pradesh and Union Territory of Chandigarh.<br />
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The Commission has imposed penalty on the Group entities, namely, - M/s Fast Way Transmission Pvt. Ltd. M/s Hathway Sukhamrit Cable & Datacom Pvt. Ltd. and M/s Creative Cable Network Pvt. Ltd. at the rate of 6% of their average turnover for the last three preceding financial years. The penalty so worked out amounts to Rs. 80,401,141 (Rs. Eight crores four lakhs one thousand one hundred forty one only).<br />
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The Commission held that the Fast Way Group is having more than 85% of the total subscribers in Punjab and Chandigarh and due to this fact not only every broadcaster including the informant is dependent upon their network, the consumers of cable TV in Punjab &Chandigarh also have huge dependency on the Fast Way Group. They do not have any effective substitute to switch over to the other network. Abusing its market power the Fast Way Group has denied the Informant the opportunity for transmission of it channel on its network and thereby has effectively denied it access to the market.<br />
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The contravening Multi Service Operators has been directed to deposit the penalty amount within 90 days. The Commission has also directed that the contravening entities should 'cease and desist' from indulging in anti-competitive practices which have the effect of denial of market access as discussed in the order.<br />
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The order of CCI has been passed in r/o Case No.36/2011 and a copy of the order has been uploaded on the website of CCI at <a href="http://www.cci.gov.in/" target="_blank">www.cci.gov.in</a> </div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com3tag:blogger.com,1999:blog-3654551038392576608.post-63658800516564211362012-06-24T13:09:00.001+05:302012-06-24T13:09:25.301+05:30DTAA between India & Norway<div dir="ltr" style="text-align: left;" trbidi="on">
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SECTION 90 OF THE INCOME-TAX ACT, 1961 - DOUBLE TAXATION AGREEMENT - AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH FOREIGN COUNTRIES - NORWAY</div>
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NOTIFICATION NO. 24/2012 [<a href="http://f.no/">F.NO</a>. 505/3A/81-FTD-I], DATED 19-6-2012</div>
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Whereas an Agreement between the Republic of India and the Kingdom of Norway for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital was signed at New Delhi on the 2nd day of February, 2011;</div>
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And whereas, the date of entry into force of the said Protocol is the 20th day of December, 2011, being the date of later of the notifications of satisfaction of all legal requirements and procedures as required by the respective laws for entry into force of the Agreement, in accordance with Paragraph 2 of Article 31 of the said Agreement;</div>
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And whereas, sub-paragraph (<i style="margin: 0px; outline: none; padding: 0px;">a</i>) of Paragraph 3 of Article 31 of the said Agreement provides that the provisions of the said Agreement shall have effect in India in respect of income derived or capital owned in any fiscal year beginning on or after the first day of April next following the calendar year in which the Agreement entered into force;</div>
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Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that all the provisions of the said Agreement, as set out in the Annexure hereto, shall be given effect to in the Union of India. In respect of income and on Capital arising in any fiscal year beginning on or after the 1st day of April, 2012.</div>
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AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE KINGDOM OF NORWAY FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL</div>
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The Government of the Republic of India and the Government of the Kingdom of Norway, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital and with a view to promoting economic cooperation between the two countries, have agreed as follows:</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 1</i> : <b style="margin: 0px; outline: none; padding: 0px;">PERSONS COVERED</b> -</span></div>
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This Agreement shall apply to persons who are residents of one or both of the Contracting States.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 2</i> : <b style="margin: 0px; outline: none; padding: 0px;">TAXES COVERED</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political sub-divisions or local authorities, irrespective of the manner in which they are levied.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, and taxes on the total amounts of wages or salaries paid by enterprises.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The existing taxes to which the Agreement shall apply are in particular:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) in India:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the income tax, including any surcharge thereon; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) the tax on capital (the wealth tax), including any surcharge thereon (hereinafter referred to as "Indian tax");</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in the case of Norway:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the tax on general income;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) the tax on personal income;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">iii</i>) the special tax on petroleum income;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">iv</i>) the resource rent tax on income from production of hydroelectric power;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">v</i>) the withholding tax on dividends;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">vi</i>) the withholding tax on pensions;.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">vii</i>) the tax on remuneration to non-resident artistes, etc.;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">viii</i>) the tax on capital (the wealth tax)</div>
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(hereinafter referred to as "Norwegian tax").</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 3</i> : <b style="margin: 0px; outline: none; padding: 0px;">GENERAL DEFINITIONS</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> For the purposes of this Agreement, unless the context otherwise requires:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) the term "India" means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in "Which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the term "Norway" means the Kingdom of Norway, and includes the land territory, internal waters, the territorial sea and the area beyond the territorial sea where the Kingdom of Norway, according to Norwegian legislation and in accordance with international law, may exercise her rights with respect to the seabed and subsoil and their natural resources; the term does not comprise Svalbard, Jan Mayen and the Norwegian dependencies outside Europe;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) the terms "a Contracting State" and "the other Contracting State" mean India or Norway, as the context requires;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">e</i>) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">f</i>) the term " enterprise" applies to the carrying on of any business;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">g</i>) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">h</i>) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the term "competent authority" means:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) in India: the Finance Minister, Government of India, or its authorised representative;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) in Norway: the Minister of Finance or the Minister's authorised representative;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">j</i>) the term "national", in relation to a Contracting State, means:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) any individual possessing the nationality of that Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">k</i>) the term "tax" means Indian or Norwegian tax, as the context requires, but shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Agreement applies or which represents a penalty or fine imposed relating to those taxes;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">1</i>) the term "fiscal year" means:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) in the case of India: the financial year beginning on the 1st day of April;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) in the case of Norway: the calendar year.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> As regards the application of the Agreement at any time by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 4</i> : <b style="margin: 0px; outline: none; padding: 0px;">RESIDENT</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof, provided, however, that:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) this term, does not include any person who is liable to tax in that State in respect only of income from sources in that State; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in the case of income derived or paid by a partnership, estate, or trust, this term applies only to the extent that the income derived by such partnership, estate, or trust is subject to tax in that state as the income of a resident, either in its hands or in the hands of its partners or beneficiaries.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall endeavour to settle the question by mutual agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated. If the State in which its place of effective management is situated cannot be determined, then the competent authorities of the Contracting States shall endeavour to settle the question by mutual agreement.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 5</i> : <b style="margin: 0px; outline: none; padding: 0px;">PERMANENT ESTABLISHMENT</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1. </i>For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2. </i>The term "permanent establishment" includes especially:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) a place of management;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) a branch;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) an office;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) a factory;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">e</i>) a workshop;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">f</i>) a sales outlet;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">g</i>) a warehouse in relation to a person providing storage facilities for others;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">h</i>) a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3. </i>The term "permanent establishment" also encompasses:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than three months together with other such sites, projects or activities, if any;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating to more than six months within any 12-months' period.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">e</i>) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">f</i>) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.</div>
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However, the provisions of sub-paragraphs a) to e) shall not be applicable where the enterprise maintains any other fixed place of business in the other Contracting State for any purposes other than the purposes specified in the said sub-paragraphs.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, if such a person:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) has and habitually exercises in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) habitually secures orders in the first-mentioned State, wholly or almost wholly for the enterprise itself or for the enterprise and other enterprises controlling, controlled by, or subject to the same common control as, that enterprise.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 7 applies.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7.</i> An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise or on behalf of that enterprise and other enterprises controlling, controlled by, or subject to the same common control as, that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph unless the enterprise can demonstrate that the transactions between the said enterprise and the agent are under arm's length conditions.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">8.</i> The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 6</i> : <b style="margin: 0px; outline: none; padding: 0px;">INCOME FROM IMMOVABLE PROPERTY</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1. </i>Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property (including livestock and equipment used in agriculture and forestry), rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 7</i> : <b style="margin: 0px; outline: none; padding: 0px;">BUSINESS PROFITS</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> In determining the profits of a permanent establishment, there shall be, allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, in accordance with the provisions of and subject to the limitations of the tax laws of that State. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges for specific services performed or for management, or, except in the case of banking enterprises, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7.</i> Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 8</i> : <b style="margin: 0px; outline: none; padding: 0px;">SHIPPING AND AIR TRANSPORT</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Profits derived by a transportation enterprise which is a resident of a Contracting State from the use, maintenance, or rental of containers (including trailers and other equipment for the transport of containers) used for the transport of goods or merchandise in international traffic shall be taxable only in that Contracting State, except insofar as those containers or trailers and related equipments are used for transport solely between places within the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> For the purposes of this Article interest, on investments directly connected with the operation of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft if they are integral to the carrying on of such business, and the provisions of Article 11 shall not apply in relation to such interest.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The provisions of paragraph 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> The provisions of paragraphs 1 and 2 shall apply to profits derived by the joint Norwegian, Danish and Swedish air transport consortium Scandinavian Airlines System (SAS), but only insofar as profits derived by SAS Norge AS, the Norwegian partner of the Scandinavian Airlines System (SAS), are in proportion to its share in that organization.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 9</i> : <b style="margin: 0px; outline: none; padding: 0px;">ASSOCIATED ENTERPRISE</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;"></i><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Where</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,</div>
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and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State may make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 10</i> : <b style="margin: 0px; outline: none; padding: 0px;">DIVIDENDS</b> - </span><span style="background-color: #993300; margin: 0px; padding: 0px;"><span style="color: #993300; margin: 0px; padding: 0px;"></span></span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends.</div>
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This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The term "dividends" as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident and income treated as dividends under the taxation laws of the Contracting State of which the company making the distribution is a resident.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 11</i> : <b style="margin: 0px; outline: none; padding: 0px;">INTEREST - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Notwithstanding the provisions of paragraph 2, any such interest referred to in paragraph 1 shall be taxable only in the Contracting State of which the recipient is a resident, if such resident is the beneficial owner of the interest and if such interest is paid to the Government of a Contracting State, or a political sub-division or a local authority thereof:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) In the case of Norway, the term Government encompasses:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the Central Bank of Norway;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) the Government Pension Fund;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">iii</i>) the Norwegian Guarantee Institute for Export Credits;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">iv</i>) Norfund,</div>
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to the extent they are wholly owned and controlled by the Government of Norway.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) In the case of India, the term Government encompasses:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the Reserve Bank of India;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) the Export-Import Bank of India and the National Housing Bank to the extent they are wholly owned and controlled by the Government of India or the Reserve Bank of India.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) to any other institution as may be agreed upon from time to time between the competent authorities of the Contracting States through exchange of letters.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The term "interest" as used in this Article means income from debt claims of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation law of the Contracting State in which the income arises. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall apply.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7.</i> Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 12</i> : <b style="margin: 0px; outline: none; padding: 0px;">ROYALTIES AND FEES FOR TECHNICAL SERVICES </b></span><b style="margin: 0px; outline: none; padding: 0px;">- </b></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Royalties or fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> However, such royalties or fees for technical services may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the beneficial owner of the royalties or fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties or fees for technical services.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3. </i>(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films or films or tapes used for television or radio broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) The term "fees for technical services" as used in this Article means payments of any kind, other than those mentioned in Articles 14 and 15 of this Agreement, as consideration for managerial or technical or consultancy services, including the provision of services of technical or other personnel.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties or fees for technical services are paid is effectively connected with such perrmanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority, or a resident of that State. Where, however, the person paying the royalties or fees for technical services whether he is a resident of a Contracting State or not, has in a Contracting Stale a permanent establishment or a fixed base in connection with which the liability to pay the royalties or fees for technical services was incurred, and such royalties or fees for technical services are borne by such permanent establishment or fixed base, then such royalties or fees for technical services shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties or fees for technical services, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 13</i> : <b style="margin: 0px; outline: none; padding: 0px;">CAPITAL GAINS - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. Gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the alienator is a resident.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Gains from the alienation of shares in a company which is a resident of a Contracting State may be taxed in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Gains from the alienation of any property, other than that referred to in the preceding paragraphs, shall be taxable only in the Contracting State of which the alienator is a resident.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 14 : </i><b style="margin: 0px; outline: none; padding: 0px;">INDEPENDENT PERSONAL SERVICES -</b></span><b style="margin: 0px; outline: none; padding: 0px;"> </b></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Income derived by an individual who is a resident of a Contracting State from the performance of professional services or other independent activities of a similar character shall be taxable only in that State except in the following circumstances when such income may also be taxed in the other Contracting State:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any period of 12 months; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.</div>
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2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, surgeons, dentists and accountants.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 15</i> : <b style="margin: 0px; outline: none; padding: 0px;">DEPENDENT PERSONAL SERVICES - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1. </i>Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State and whose activity does not consist of hiring out of labour, and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State. Where a resident of a Contracting States derives remuneration in respect of an employment exercised aboard an aircraft operated in international traffic by the Scandinavian Airlines System (SAS) consortium, such remuneration shall be taxable only in that Contracting State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 16</i> : <b style="margin: 0px; outline: none; padding: 0px;">DIRECTORS' FEES - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b>Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or of a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 17</i> : <b style="margin: 0px; outline: none; padding: 0px;">ARTISTES AND SPORTSPERSONS - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from personal activities as such exercised in the other Contracting State, may be taxed that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3. </i>The provisions of paragraphs 1 and 2, shall not apply to income from activities performed in a Contracting State by entertainers or sportspersons if the activities are substantially supported by public funds of one or both of the Contracting States or of political sub-divisions or local authorities thereof. In such a case, the income shall be taxable only in the Contracting State of which the entertainer or sportsperson is a resident.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 18</i>:<b style="margin: 0px; outline: none; padding: 0px;">NON-GOVERNMENT PENSIONS, ANNUITIES AND ALIMONY</b></span><b style="margin: 0px; outline: none; padding: 0px;"> </b></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Any pension, other than a pension referred to in Article 19, or any annuity derived by a resident of a Contracting State from sources within the other Contracting State shall be taxable only in the first-mentioned Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2. </i>The term "pension" means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The term "annuity" means a stated sum payable to an individual periodically at stated times during his life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Alimony received by a resident of a Contracting State and paid by a resident of the other Contracting State shall be exempt from tax in the first-mentioned State to the extent such payments are not deductible for tax purposes in the other Contracting State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 19 - </i><b style="margin: 0px; outline: none; padding: 0px;">GOVERNMENT SERVICE - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> (<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) is a national of that State; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) did not become a resident of that State solely for the purpose of rendering the services.</div>
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2. (<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Any pension paid by, or out of funds created by, a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) However, such pension shall be taxable only in the other Contracting State if:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the individual is a resident of, and a national of, that other State; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) such pension is exempt from tax in the first-mentioned State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration and to pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or a local authority thereof.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 20 : </i><b style="margin: 0px; outline: none; padding: 0px;">STUDENTS - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> A student who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other Contracting State solely for the purpose of his education or training, shall besides grants, loans and scholarships be exempt from tax in that other State on payments made to him by persons residing outside that other State for the purposes of his maintenance, education or training, and shall in addition be entitled during such education or training to the same exemptions, reliefs, or reductions in respect of taxes available to residents of the State he is visiting.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2. </i>The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken, but in no event shall any individual have the benefits of this Article, for more than six consecutive years from the date of his first arrival in that other State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 21</i> : <b style="margin: 0px; outline: none; padding: 0px;">OFFSHORE ACTIVITIES - </b></span></div>
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<b style="margin: 0px; outline: none; padding: 0px;"></b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> The provisions of this Article shall apply notwithstanding any other provision of this Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> A person who is a resident of a Contracting State and carries on activities offshore in the other Contracting State in connection with the exploration or exploitation of the seabed or subsoil or their natural resources situated in that other State shall, subject to paragraphs 3 and 4 of this Article, be deemed in relation to those activities to be carrying on business in that other State through a permanent establishment or fixed base situated therein.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The provisions of paragraph 2 shall not apply where the activities are carried on for a period not exceeding 30 days in the aggregate in any twelve months period commencing or ending in the fiscal year concerned. However, for the purposes of this paragraph :</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) where an enterprise of a Contracting State carrying on offshore activities in the other Contracting State is associated with another enterprise carrying on substantially similar offshore activities there, the former enterprise shall be deemed to be carrying on all such activities of the latter enterprise, with the exception of activities which are carried on at the same time as its own activities; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) two enterprises shall be deemed to be associated if one is controlled directly or indirectly by the other, or both are controlled directly or indirectly by a third person or persons;</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Profits derived by an enterprise of a Contracting State from the transportation of supplies or personnel to or from a location, or between locations, where activities in connection with the exploration or exploitation of the seabed or subsoil or their natural resources are being carried on in the other Contracting State, or from the operation of tugboats and other vessels auxiliary to such activities, shall be taxable only in the Contracting State of which the enterprise is a resident.</div>
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Notwithstanding the provisions of this paragraph, profits derived from such operation may also be taxed in the Contracting State in which the operation is carried on; but the tax so charged shall not exceed 50 per cent of the tax otherwise imposed by the domestic law of that State. For the purposes of this paragraph, the amount of such profits subject to tax in India shall not exceed 7.5 per cent of the sums receivable.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> (a) Subject to sub-paragraph (<i style="margin: 0px; outline: none; padding: 0px;">b</i>) of this paragraph, salaries, wages and similar remuneration derived by a resident of a Contracting State in respect of an employment connected with the exploration or exploitation of the seabed or subsoil" or their natural resources situated in the other Contracting State, to the extent that the duties are performed offshore in that other State, may be taxed in that other State. However, such remuneration shall be taxable only in the first-mentioned State if the employment is carried on offshore for an employer who is not a resident of the other State and provided that the employment is carried on for a period or periods not exceeding in the aggregate 30 days in any twelve-month period commencing or ending in the fiscal year concerned.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) Salaries, wages and similar remuneration derived by a resident of a Contracting State in respect of an employment exercised aboard a ship or aircraft engaged in the transportation of supplies or personnel to or from a location, or between locations, where activities connected with the exploration or exploitation of the seabed or subsoil or their natural resources are being carried on in the other Contracting State, or in respect of an employment exercised aboard tugboats or other vessels operated auxiliary to such activities, may be taxed, in the Contracting State of which the enterprise carrying on such activities is a resident.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 22</i> : <b style="margin: 0px; outline: none; padding: 0px;">OTHER INCOME</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing articles of this Agreement and arising in the other Contracting State may also be taxed in that other State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 23</i> : <b style="margin: 0px; outline: none; padding: 0px;">CAPITAL</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State, and by movable property pertaining to the operation of such ships and aircraft, shall be taxable only in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> All other elements of capital of a resident of a Contracting State shall be taxable only in that State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 24</i> : <b style="margin: 0px; outline: none; padding: 0px;">METHODS FOR ELIMINATION OF DOUBLE TAXATION</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> The laws in force in either of the Contracting States shall continue to govern the taxation of income and capital in the respective Contracting States except where express provisions to the contrary are made in this Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Double taxation shall be eliminated as follows:</div>
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(A) In India:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Where a resident of India derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Norway, India shall allow:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Norway on that income;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Norway on that capital;</div>
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Such deduction shall not, however, exceed that portion of the income tax or capital tax as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in Norway.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) Where in accordance with any provision of the Agreement income derived or capital owned by a resident of India is exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.</div>
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(B) In Norway:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Where a resident of Norway derives income or owns elements of capital which, in accordance with the provisions of this Agreement, may be taxed in India, Norway shall allow:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in India on that income;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in India on elements of capital;</div>
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Such deduction in either case shall not, however, exceed that part of the income tax or capital tax as computed before the deduction is given, which is attributable, as the case may be, to the income or the same elements of capital which may be taxed in India.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) Where in accordance with any provision of the Agreement, income derived or capital owned by a resident of Norway is exempt from tax in Norway, Norway may nevertheless include such income or capital in the tax base, but shall allow as a deduction from the Norwegian tax on income or capital that part of the income tax or capital tax, as the case may be, which is attributable to the income derived from India or the capital owned in India.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 25</i> : <b style="margin: 0px; outline: none; padding: 0px;">NON-DISCRIMINATION</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. This provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first mentioned State at a rate of tax which is not more than 10 percentage points higher than that imposed on the profits of a similar company of the first mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7 of this Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 26</i> : <b style="margin: 0px; outline: none; padding: 0px;">MUTUAL AGREEMENT PROCEDURE</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes Under paragraph 1 of Article 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The competent authorities of the Contracting States may communicate with each other directly, for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 27</i> : <b style="margin: 0px; outline: none; padding: 0px;">EXCHANGE OF INFORMATION</b> - </span></div>
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<span style="color: #993300; margin: 0px; padding: 0px;"></span><i style="margin: 0px; outline: none; padding: 0px;">1.</i> The competent authorities of the Contracting States shall exchange such information (including documents or certified copies of the documents) as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1 or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorizes such use.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) to supply information (including documents or certified copies of the documents) which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3, but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 28</i> : <b style="margin: 0px; outline: none; padding: 0px;">ASSISTANCE IN THE COLLECTION OF TAXES</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by Articles 1 and 2. The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The term "revenue claim" as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to this Agreement or any other instrument to which the Contracting States are parties, as well as interest, administrative penalties, fine and costs of collection or conservancy related to such amount.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State. That other State shall take measures of conservancy in respect of that revenue claim in accordance with the provisions of its laws as if the revenue claim were a revenue claim of that other State even if, at the time when such measures are applied, the revenue claim is not enforceable in the first-mentioned State or is owed by a person who has a right to prevent its collection.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim under the laws of that State by reason of its nature as such. In addition, a revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue claim under the laws of the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall only be brought before the courts or administrative bodies of that State. Nothing in this Article shall be construed as creating or providing any right to such proceedings before any court or administrative body of the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7.</i> Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to be :</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) in the case of a request under paragraph 3, a revenue claim of the first-mentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in the case of a request under paragraph 4, a revenue claim of the first-mentioned State in respect of which that State may, under its laws, take measures of conservancy with a view to ensure its collection,</div>
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the competent authority of the first-mentioned State shall promptly notify the competent authority of the other State of that fact and, at the option of the other State, the first-mentioned State shall either suspend or withdraw its request.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">8.</i> In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) to carry out measures which would be contrary to public policy (ordre public);</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practice;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the benefit to be derived by the other Contracting State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 29</i> : <b style="margin: 0px; outline: none; padding: 0px;">LIMITATION OF BENEFITS</b> -</span></div>
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Benefits of this Agreement shall not be available to a resident of a Contracting State, or with respect to any transaction undertaken by such a resident, if the main purpose or one of the main purposes of the creation or existence of such a resident or of the transaction undertaken by him, was to obtain the benefits under this Agreement that would not otherwise be available.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 30</i> :<b style="margin: 0px; outline: none; padding: 0px;">MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Insofar as, due to fiscal privileges granted to members of diplomatic missions and consular posts under the general rules of international law or under the provisions of special international agreements, income is not subject to tax in the receiving State, the right to tax shall be reserved to the sending State.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 31</i> : <b style="margin: 0px; outline: none; padding: 0px;">ENTRY INTO FORCE</b> - </span></div>
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<i style="margin: 0px; outline: none; padding: 0px;">1.</i> The Contracting States shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respective laws for the entry into force of this Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> This Agreement shall enter into force on the date of the later of the notifications referred to in paragraph 1 of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The provisions of this Agreement shall have effect:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) in India: in respect of income derived or capital owned in any fiscal year beginning on or after the first day of April next following the calendar year in which the Agreement enters into force; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in Norway: in respect of taxes on income or capital relating to the calendar year (including accounting periods beginning in any such year) next following that in which the Agreement enters into force and subsequent years.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The Convention between the Kingdom of Norway and the Republic of India for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital, signed on 31st December, 1986, shall terminate and cease to have effect in respect of taxes on income and on capital to which the present Agreement applies in accordance with the provisions of paragraph 1 of this Article.</div>
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<span style="color: #993300; margin: 0px; padding: 0px;"><i style="margin: 0px; outline: none; padding: 0px;">Article 32</i> : <b style="margin: 0px; outline: none; padding: 0px;">TERMINATION</b> -</span></div>
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This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Agreement. In such event, the Agreement shall cease to have effect:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) in India, in respect of income derived or capital owned in any fiscal year on or after the first day of April next following the calendar year in which the notice is given;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in Norway: in respect of taxes on income or on capital relating to the calendar year (including accounting periods beginning in such year) next following that in which the notice is given;</div>
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IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Agreement.</div>
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DONE in duplicate at New Delhi on this Second day of February 2011, each in the Hindi, Norwegian and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.</div>
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-- <br />
Regards:<br />
<b><span style="background-color: white; color: #3333ff;"><span style="font-family: comic sans ms,sans-serif;">Dipak Kumar</span></span></b></div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com1tag:blogger.com,1999:blog-3654551038392576608.post-75975749083010616612012-06-24T13:08:00.000+05:302012-06-24T13:08:41.917+05:30DOUBLE TAXATION AGREEMENT - AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH FOREIGN COUNTRIES - NEPAL<div dir="ltr" style="text-align: left;" trbidi="on">
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SECTION 90 OF THE INCOME-TAX ACT, 1961 - DOUBLE TAXATION AGREEMENT - AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH FOREIGN COUNTRIES - NEPAL</div>
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NOTIFICATION NO. 20/2012 [F.NO.503/03/2005-FTD-II], DATED 12-6-2012</div>
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WHEREAS the annexed Agreement between the Government of the Republic of India and the Government of Nepal for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the "Agreement") was signed in Kathmandu, Nepal on the 27th day of November, 2011.</div>
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WHEREAS the said Agreement entered into force on the 16th day of March, 2012, being the date of the later of the notifications after completion of the procedures as required by the laws of the respective countries for the entry into force of the Agreement, in accordance with the provisions of paragraph 2 of article 30 of the Agreement.</div>
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WHEREAS the provisions of the said Agreement shall have effect in India, in respect of income derived in any fiscal year beginning on or after the 1st day of April, 2013 in accordance with the provisions of paragraph 3 of article 30 of the Agreement.</div>
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NOW, THEREFORE, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Agreement annexed hereto shall be given effect to in the Union of India with effect from the 1st day of April, 2013.</div>
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AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF NEPAL FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME</div>
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The Government of the Republic of India and the Government of Nepal, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation between the two countries, have agreed as follows:</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 1</i><b style="margin: 0px; outline: none; padding: 0px;"> : PERSONS COVERED - </b>This Agreement shall apply to persons who are residents of one or both of the Contracting States.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 2</i> : <b style="margin: 0px; outline: none; padding: 0px;">TAXES COVERED - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political sub-divisions or local authorities, irrespective of the manner in which they are levied.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The existing taxes to which the Agreement shall apply are in particular:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) in India, the income tax, including any surcharge thereon;</div>
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(hereinafter referred to as "Indian tax");</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in Nepal, income tax imposed under the Income. Tax Act, 2058 B.S.</div>
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(2002 A.D.);</div>
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(hereinafter referred to as "Nepalese tax").</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4. </i>The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their tax laws.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 3</i><b style="margin: 0px; outline: none; padding: 0px;"> : GENERAL DEFINITIONS - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> For the purposes of this Agreement, unless the context otherwise requires:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) the term "India" means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the term "Nepal" means the Territory of Nepal.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the tax laws in force in the respective Contracting States;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">e</i>) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">f</i>) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">g</i>) the term "competent authority" means:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) in India: the Finance Minister, Government of India, or his authorized representative;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) in Nepal: the Minister of Finance or his authorized representative;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">h</i>) the term "national" means:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) any individual possessing the nationality of a Contracting State; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) the terms "Contracting State" and "the other Contracting State" mean the Republic of India or Nepal as the context requires:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">j</i>) the term "tax" means" Indian tax or Nepalese tax, as the context requires, but shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Agreement applies or which represents a penalty or fine imposed relating to those taxes;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">k</i>) The term "fiscal year" means:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) in the case of India: the financial year beginning on the 1st day of April;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) in the case of Nepal: financial year beginning in mid-July(corresponding to 1st day of Shrawan month of the Nepalese B.S.).</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies and any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 4</i><b style="margin: 0px; outline: none; padding: 0px;"> : RESIDENT - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature, and also includes that State and any political sub-division or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2</i>. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3. </i>Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated. If the State in which its place of effective management is situated cannot be determined, then the competent authorities of the Contracting States shall settle the question by mutual agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 5 : </i><b style="margin: 0px; outline: none; padding: 0px;">PERMANENT ESTABLISHMENT - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2. </i>The term "permanent establishment" includes especially:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) a place of management;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) a branch;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) an office;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) a factory;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">e</i>) a workshop;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">f</i>) a sales outlet;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">g</i>) a warehouse in relation to a person providing storage facilities for others;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">h</i>) a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) a mine., an oil or gas well, a quarry or any other place of extraction of natural resources.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. The term permanent establishment also encompasses:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) A building site or construction, installation or assembly project or supervisory activities in connection therewith but only if such site, project or activities last more than 183 days.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) The furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for the same or connected project) within "the country for a period or periods aggregating more than 90 days within any 12-month period.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4. </i>Notwithstanding the preceding provisions of this Article the term "permanent establishment" - shall be deemed not to include:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) the use of facilities solely for the purpose of storage, or display of goods or merchandise belonging to the enterprise;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, or display;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information for the enterprise;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">e</i>) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">f</i>) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (<i style="margin: 0px; outline: none; padding: 0px;">a</i>) to (<i style="margin: 0px; outline: none; padding: 0px;">e</i>), provided that the overall activity of the fixed place, of business resulting from this combination is of a preparatory or auxiliary character.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5</i>. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, if such a person:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) has and habitually exercises in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) has no such authority, but habitually maintains' in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) habitually secures orders in the first-mentioned State, wholly or almost wholly for the enterprise itself.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6</i>. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 7 applies.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7.</i> An enterprise of a contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise,, he will not be considered an agent of an independent status within the meaning of this paragraph.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">8.</i> The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 6</i><b style="margin: 0px; outline: none; padding: 0px;"> : INCOME FROM IMMOVABLE PROPERTY - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2</i>. The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. The provisions of paragraph 1 shall apply to income derived from the direct use, letting or use in any other form of immovable property.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4</i>. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 7</i> <b style="margin: 0px; outline: none; padding: 0px;">: BUSINESS PROFITS - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2</i>. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, in accordance with the provisions of and subject to the limitations of the tax laws of that State. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges for specific services performed or for management, or, except in the case of banking enterprises, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise than toward reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4</i>. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however be such that the result shall be in accordance with the principles contained in this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5</i>. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6</i>. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7</i>. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 8</i> <b style="margin: 0px; outline: none; padding: 0px;">: SHIPPING AND AIR TRANSPORT - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2</i>. Profits derived by a transportation enterprise which is a resident of a Contracting State from the use/maintenance, or rental of containers (including trailers and other equipment for the transport of containers) used for the transport of goods or merchandise in international traffic which is supplementary, or incidental to operation of its ships or aircraft in international traffic shall be taxable only in that Contracting State unless the containers are used solely within the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. For the purposes of this Article interest on investments directly connected with the operation of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft if they are integral to the carrying on of such business, and the provisions of Article 11 shall not apply in relation to such interest.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4</i>. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 9</i><b style="margin: 0px; outline: none; padding: 0px;"> : ASSOCIATED ENTERPRISES - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. Where:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the same persons participate directly or indirectly in the management control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Where, a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard' shall be had to the other provisions of the Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 10</i><b style="margin: 0px; outline: none; padding: 0px;"> : DIVIDENDS - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2. </i>However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) 5 per cent of the gross amount of dividends if the beneficial owner is a company which owns at least 10 per cent of the shares of the company paying the dividends;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) 10 per cent of the gross amount of dividends in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. The term "dividends" as used in this article means income from shares, or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5</i>. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 11 </i><b style="margin: 0px; outline: none; padding: 0px;">: INTEREST - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2</i>. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State, provided that it is derived and beneficially owned by:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) (<i style="margin: 0px; outline: none; padding: 0px;">i</i>) in the case of India, the Reserve Bank of India, and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) in the case of Nepal, the Nepal Rashtra Bank ; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the Government, a political sub-division or a local authority of the other Contracting State; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) any other institution as may be agreed upon from time to time between the Competent authorities of the Contracting States through exchange of letters.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4</i>. The term "interest" as used in this Article means income from debt claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5</i>. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such cases the provisions of article 7 or article 14, as the case may be, shall apply.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6</i>. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7</i>. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this 'Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 12</i><b style="margin: 0px; outline: none; padding: 0px;"> : ROYALTIES - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2</i>. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 15 per cent of the gross amount of the royalties.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3</i>. The term "royalties" as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or tapes used for television or radio broadcasting, any patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4</i>. The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the royalties being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such cases the provisions of article 7 or article 14, as the case may be, shall apply.</div>
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5.(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State [itself, a political sub-division, a local authority, or a resident of that State]. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) Where under sub-paragraph (<i style="margin: 0px; outline: none; padding: 0px;">a</i>) royalties do not arise in one of the Contracting States, and the royalties relate to the use of, or the right to use, the right or property, in one of the Contracting States, the royalties shall be deemed to arise in that Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6</i>. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 13</i><b style="margin: 0px; outline: none; padding: 0px;"> : CAPITAL GAINS - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State of which the alienator is a resident.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Gains from the alienation of shares other than those mentioned in paragraph 4 in a company which is a resident of a Contracting State may be taxed in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4 and 5 shall be taxable only in the Contracting State of which the alienator is a resident.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 14</i><b style="margin: 0px; outline: none; padding: 0px;"> : INDEPENDENT PERSONAL SERVICES - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Income derived by an individual who is a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State except in the following circumstances when such income may also be taxed in the other Contracting State:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any period of 12-months; in that case only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, surgeons, dentists and accountants.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 15</i> : <b style="margin: 0px; outline: none; padding: 0px;">DEPENDENT PERSONAL SERVICES</b> - <i style="margin: 0px; outline: none; padding: 0px;">1.</i> Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in. the other Contracting State shall be taxable only in the first-mentioned State if:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, by an enterprise of a Contracting State may be taxed in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 16</i><b style="margin: 0px; outline: none; padding: 0px;"> : DIRECTORS'FEES - </b>Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors of a company which is a resident of the other Contracting State may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 17</i> : <b style="margin: 0px; outline: none; padding: 0px;">ARTISTES AND SPORTSPERSONS - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, that income may notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The provisions of paragraphs 1 and 2, shall not apply to income from activities performed in a Contracting State by entertainers or sportspersons if the activities are substantially supported by public funds of one or both of the Contracting States or of political sub-divisions or local authorities thereof. In such a case, the income shall be taxable only in the Contracting State of which the entertainer or sportsperson is a resident.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 18</i> : <b style="margin: 0px; outline: none; padding: 0px;">PENSIONS</b> - Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 19</i> : <b style="margin: 0px; outline: none; padding: 0px;">GOVERNMENT SERVICE</b> - <i style="margin: 0px; outline: none; padding: 0px;">1.7 </i>(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) is a national of that State; or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) did not become a resident of that State solely for the purpose of rendering the services.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> (<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Any pension paid by, or out of funds created by, a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The provisions of articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration and to pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or a local authority thereof.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 20</i><b style="margin: 0px; outline: none; padding: 0px;"> : PROFESSORS, TEACHERS AND RESAERCH SCHOLARS - </b><i style="margin: 0px; outline: none; padding: 0px;">1</i>. A professor, teacher or research scholar who is or was a resident of the Contracting State immediately before visiting the other Contracting State for the purpose of teaching or engaging in research, or both, at a university, college or other similar approved institution in that other Contracting State shall be exempt from tax in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date of his first arrival in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> This Article shall apply to income from research only if such research is undertaken by the individual in the public interest and not primarily for the benefit of some private person or persons.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> For the purposes of this Article, an individual shall be deemed to be a resident of a Contracting State if he is resident in that State in the fiscal year in which he visits the other Contracting State or in the immediately preceding fiscal year.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> For the purpose of paragraph 1 "approved institution" means an institution which has been approved in this regard by the competent authority of the concerned Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 21</i><b style="margin: 0px; outline: none; padding: 0px;"> : STUDENTS - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> A student who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other Contracting State solely for the purpose of his education or training shall, besides grants, loans and scholarships, be exempt from tax in that other contracting State on:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) payments made to him by persons residing outside that other State for the purposes of his maintenance, education or training; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) remuneration which he derives from an employment which he exercises in the other Contracting State if the employment is directly related to his studies.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken, but in no event shall any individual have the benefits of this Article, for more than six consecutive years from the date of his first arrival for the purposes of his education or training in that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 22</i><b style="margin: 0px; outline: none; padding: 0px;"> : OTHER INCOME - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Items of income of a resident of a Contracting State, wherever arising, not dealt within the foregoing Articles of this Agreement shall be taxable only in that State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.</div>
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<b style="margin: 0px; outline: none; padding: 0px;">3.</b> Notwithstanding the provisions of paragraph 1, if a resident of a Contracting State derives income from sources within the other Contracting Sate in form of lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any nature whatsoever, such income may be taxed in the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 23</i><b style="margin: 0px; outline: none; padding: 0px;"> : METHODS FOR ELIMINATION OF DOUBLE TAXATION - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> The laws in force in either of the Contracting States shall continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Double Taxation shall be eliminated as follows:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">i</i>) In India:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Nepal, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Nepal.</div>
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Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Nepal.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) Where in accordance with any provision of the Agreement income derived by a resident of India is exempt from tax in India may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">ii</i>) in Nepal:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) Where a resident of Nepal derives income which, in accordance with the provisions of this Agreement, may be taxed in India, Nepal shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in India.</div>
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Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in India.</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) Where in accordance with any provision of the Agreement income derived by a resident of Nepal is exempt from tax in Nepal, Nepal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 24</i> : <b style="margin: 0px; outline: none; padding: 0px;">NON-DISCRIMINATION</b> - <i style="margin: 0px; outline: none; padding: 0px;">1.</i> Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. This provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> Except where the provisions of paragraph 1 of Article 9. paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> Enterprises of a Contracting State, the capital of which is wholly or party owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to an taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> The provisions of this Article shall apply to taxes covered by this Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 25</i><b style="margin: 0px; outline: none; padding: 0px;"> : MUTUAL AGREEMENT PROCEDURE - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time-limits in the domestic law of the Contracting States.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs. The competent authorities, through consultations, shall develop appropriate bilateral procedures, conditions, methods, and techniques for the implementation of the mutual agreement procedure provided for in this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 26</i> : <b style="margin: 0px; outline: none; padding: 0px;">EXCHANGE OF INFORMATION</b> - <i style="margin: 0px; outline: none; padding: 0px;">1.</i> The competent authorities of the Contracting States shall exchange such information, including documents or certified copies thereof, as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of domestic laws concerning taxes of every kind and description imposed on behalf or of their political sub-divisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that Contracting State and shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorizes such use.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:'</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) To supply information including documents and certified copies thereof which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) To supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (order public).</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 27</i> : <b style="margin: 0px; outline: none; padding: 0px;">ASSISTANCE IN THE COLLECTION OF TAXES</b> - <i style="margin: 0px; outline: none; padding: 0px;">1.</i> The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by Articles 1 and 2. The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> The term "revenue claim" as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of the Contracting States, or of their political sub-divisions or local authorities, insofar as the taxation thereunder is not contrary to this Agreement or any other Instrument to which the Contracting States are parties, as well as interests administrative penalties and costs of collection or conservancy related to such amount.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i> When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State. That other State shall take measures of conservancy in respect of that revenue claim in accordance with the provisions of its laws as if the revenue claim were a revenue claim of that other State even if, at the time when such measures are applied, the revenue claim is not enforceable in the first-mentioned State or is owed by a person who has a right to prevent its collection.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">5.</i> Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time-limits or accorded any priority applicable to a revenue claim under the laws of that State by reason of its nature as such. In addition, a revenue; claim accepted by a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue claim under the laws of the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">6.</i> Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall only be brought before the courts or administrative bodies of that State. Nothing in this Article shall be construed as creating or providing any right to such proceedings before any court or administrative body of the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">7.</i> Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to be -</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) in the case of a request under paragraph 3, a revenue claim of the first-mentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, or</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) in the case of a request under paragraph 4, a revenue claim of the first-mentioned State in respect of which that State may, under its laws, take measures of conservancy with a view to ensure its collection.</div>
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the competent authority of the first-mentioned State shall promptly notify the competent authority of the other State of that fact and, at the option of the other State, the first-mentioned State shall either suspend or withdraw its request.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">8.</i> In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) to carry out measures which would be contrary to public policy (order public);</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">c</i>) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practice;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">d</i>) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the benefit to be derived by the other Contracting State.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 28</i><b style="margin: 0px; outline: none; padding: 0px;"> : LIMITATION OF BENEFITS - </b>A resident of a Contracting State shall not be entitled to the benefits of this Agreement if its affairs were arranged in such a manner as if it was the main purpose or one of the main purposes to take the benefits of this Agreement. The case of legal entities not having bona fide business activities shall be covered by the provisions of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 29</i> : <b style="margin: 0px; outline: none; padding: 0px;">MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS</b> - Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 30</i><b style="margin: 0px; outline: none; padding: 0px;"> : ENTRY INTO FORCE - </b><i style="margin: 0px; outline: none; padding: 0px;">1.</i> The Contracting States shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respective laws for the entry into force of this Agreement;</div>
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<i style="margin: 0px; outline: none; padding: 0px;">2.</i> This Agreement shall enter into force on the date of the notifications referred to in paragraph 1 of this Article.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">3.</i>. The provisions of this Agreement shall have effect:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) In India, in respect of income derived in any fiscal year beginning on or after the first day of April next following the calendar year in which the Agreement enters into force; and</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) In Nepal in respect of income derived in any fiscal year beginning on or after the mid-July (corresponding to 1st day of Shrawan month of the Nepalese B.S.) next following the calendar year in which the Agreement enters into force.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">4.</i> The Agreement between the Government of the Republic of India and His Majesty's Government of Nepal for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income signed at Kathmandu on the 8th day of January, 1987 shall cease to have effect when the provisions of this Agreement become effective in accordance with the provisions of paragraph 3, provided that any action or proceeding already initiated prior to the coming into force of this Agreement shall be dealt with in accordance with the Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income signed at Kathmandu on January 8, 1987.</div>
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<i style="margin: 0px; outline: none; padding: 0px;">Article 31</i> : <b style="margin: 0px; outline: none; padding: 0px;">TERMINATION</b> - This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Agreement. In such event the Agreement shall cease to have effect:</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">a</i>) In India in respect of income derived in any fiscal year on or after the first day of April next following the calendar year in which the notice is given;</div>
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(<i style="margin: 0px; outline: none; padding: 0px;">b</i>) In Nepal, in respect of income derived in any fiscal year on or after the mid-July (corresponding to 1st day of Shrawan month of the Nepalese B.S.) next following the calendar year in which the notice is given.</div>
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IN WITNESS WHEREOF the undersigned, duly authorized thereto have signed this Agreement.</div>
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DONE in duplicate at Kathmandu on this 27th day of November, 2011, each in the Hindi, Nepali and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.</div>
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<b style="margin: 0px; outline: none; padding: 0px;">PROTOCOL</b></div>
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At the moment of signing of the Agreement this day concluded between the Government of the Republic of India and the Government of Nepal for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have .agreed upon the following provisions which shall be an integral part of the Agreement:</div>
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<b style="margin: 0px; outline: none; padding: 0px;">1.</b> It is understood that if the domestic law of a Contracting States is more beneficial to resident of the other Contracting State than the provision of this Agreement, then the provisions of the domestic law of the first mentioned State shall apply to the extent they are more beneficial to such a resident.</div>
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<b style="margin: 0px; outline: none; padding: 0px;">2.</b> With reference to Article 12:</div>
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In respect to Article. 12 (Royalties) if under any Agreement Convention or Protocol between Nepal and a third State, Nepal limits its taxation at source on royalties to a rate lower or a scope more restricted than the rate or scope provided for in this Agreement on Royalties, then as from the date on which the relevant Nepal Agreement or Convention or protocol enters into force, the same rate of scope as provided for in that Agreement or Convention or Protocol on Royalties shall also apply under this Agreement.</div>
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IN WITNESS WHEREOF the undersigned, duly authorized thereto have signed this Agreement.</div>
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DONE in duplicate; at Kathmandu on this 27th day of November, 2011, each in the Hindi, Nepali and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.</div>
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<br /></div>
-- <br />
Regards:<br />
<b><span style="background-color: white; color: #3333ff;"><span style="font-family: comic sans ms,sans-serif;">Dipak Kumar</span></span></b><br />
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<span style="color: #3333ff; font-family: comic sans ms,sans-serif;"><b><br /></b></span></div>
<br /></div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-90971644649038745912012-05-24T16:40:00.000+05:302012-05-24T16:40:41.909+05:30Rupee depreciation good for earnings, bad for markets: BoAML<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Gil Sans,Helvetica;"><span style="color: #333333;">Source: <a href="http://profit.ndtv.com/">profit.ndtv.com</a> </span></span><br />
<b><span style="font-family: Gil Sans,Helvetica;"><br />rupee, RBI, dollar, Sensex, earnings, current account deficit </span></b><br />
<br />
Indian markets have been subdued ever since foreign inflows dried up. The rupee too has started inching towards previous lows. Corporates have struggled to deliver in the March quarter and early results indicate continued pressure on margins.<br />
<br />
<br />
NDTV Profit spoke to <b>Jyotivardhan Jaipuria</b>, head of research at Bank of America - Merrill Lynch on a wide ranging issues.<br />
<br />
<b>Edited excerpts</b>:<br />
<br />
<br />
<b>Current account deficit a worry</b>: We saw good amount of flows in the first quarter of this year but they have flattened out in April. The balance of payment was negative in the first quarter.<br />
<br />
<b>Rupee weakness to continue</b>: Forex reserves have been flat over the last five years. As a percentage of GDP, the forex reserves are not as strong as they were earlier. Currently, India has forex reserves worth eight months of import. So fundamentally, the Reserve Bank cannot intervene very easily. The RBI will prevent a sharp depreciation the rupee but the firepower is not as it was four to five years back.<br />
<br />
<br />
<b>RBI action on rupee</b>: What the RBI can do is to let the rupee appreciate or depreciate in line with other global currencies. They will not fight the dollar movement but they might prevent any sharp depreciation in the rupee.<br />
<br />
<br />
<b>Rupee versus earnings</b>: A depreciating rupee is good for earnings. 5% depreciation in rupee helps Sensex earnings by 3% but a depreciating rupee is historically negative for markets because it offsets gains of foreign investors.<br />
<br />
<br />
<b>FY13 earnings</b>: March quarter earnings have disappointed on the margins. FY13 earnings are likely to be downgraded. FY13 Sensex earnings per share are likely to be 1,280 but eventually it will fall to 1,200. Expect 5% downgrade to FY13 earnings.<br />
<br />
<b>Outlook on IT stocks</b>: A lot of companies are facing a slowdown. The IT industry will continue to grow but at a much slower pace than it used to. Valuations of IT stocks have compressed to reflect the earnings slowdown. Over the next few years, they will trade in a band of 15-20 times. However, IT stocks will continue to be a hedge against rupee weakness.</div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0tag:blogger.com,1999:blog-3654551038392576608.post-70508548023687787992012-05-15T01:31:00.000+05:302012-05-15T01:31:16.686+05:30IMPORTANT TOPICS FROM PORTFOLIO MANAGEMENT<div dir="ltr" style="text-align: left;" trbidi="on">
<br /><br />1. Return on security <br /><br />2. Expected return on security (when probability is given) <br /><br />3. Average return on security (when prob. Not given) <br /><br />4. Return on portfolio/Average return on portfolio <br /><br />5. Standard deviation of security <br /><br />6. Standard deviation of portfolio <br /><br />7. Coefficient of variation <br /><br />8. Variance of security <br /><br />9. Co-variance between two securities <br /><br />10. Correlation coefficient <br /><br />11. Beta of a portfolio <br /><br />12. Market Beta <br /><br />13. Systematic risk <br /><br />14. Unsystematic risk <br /><br />15. Portfolio risk (considering Sys Risk and Un Sys. Risk) <br /><br />16. Capital Assets Pricing Model(CAPM) <br /><br />17. Arbitrage pricing theory model(APTM) <br /><br />18. Security market line <br /><br />19. Characteristic line <br /><br />20. Capital market line <br /><br />21. Calculation of optimum weight to minimize portfolio risk <br /><br />22. Beta of a firm/Assets Beta/ Project Beta <br /><br />23. Measures for evaluation the performance of portfolio or mutual fund <br /><blockquote class="tr_bq">
o Sharpe ratio <br /><br />o Treynor ratio <br /><br />o Jensen’s Alpha/ Defferential return. </blockquote>
<br />24. Modern portfolio theory/Harry markowitz model/Rule of dominance in case of Portfolio/mean variance <br /><br />Analysis.</div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com2tag:blogger.com,1999:blog-3654551038392576608.post-85081221744760584502012-05-11T23:41:00.001+05:302012-05-11T23:41:27.183+05:30Clarification on service-tax payable where invoice raised before 01.4.2012:<div dir="ltr" style="text-align: left;" trbidi="on">
Clarification on service-tax payable where invoice raised before 01.4.2012:<br />
Circular No. 158/9/2012 –ST<br />
Dated : 8th May 2012<br />
Subject: – Clarification on Rate of Tax – regarding.<br />
<br />
1. The rate of service tax has been restored to 12% w.e.f. 1st April 2012. Representations have been received requesting clarification on the rate of tax applicable wherein invoices were raised before 1st April 2012 and the payments shall be after 1st April 2012. Clarification has been requested in case of the 8 specified services provided by individuals or proprietary firms or partnership firms, to which Rule 7 of Point of Taxation Rules 2011 was applicable and services on which tax is paid under reverse charge.<br />
2. The rate of service tax prevalent on the date when the point of taxation occurs is rate of service tax applicable on any taxable service. In case of the 8 specified services and services wherein tax is required to be paid on reverse charge by the service receiver the point of taxation is the date of payment. Circular No 154/5/2012 – ST dated 28th March 2012 has also clarified the same. Thus in case of such 8 specified services provided by individuals or proprietary firms or partnership firms and in case of services wherein tax is required to be paid on reverse charge by the service receiver, if the payment is received or made, as the case maybe, on or after 1st April 2012, the service tax needs to be paid @12%.<br />
3. The invoices issued before 1st April 2012 may reflect the previous rate of tax (10% and cess). In case of need, supplementary invoices may be issued to reflect the new rate of tax (12% and cess) and recover the differential amount. In case of reverse charge the service receiver pays the tax and takes the credit on the basis of the tax payment challan. Cenvat credit can be availed on such supplementary invoices and tax payment challans, subject to other restrictions and conditions as provided in the Cenvat Credit Rules 2004.<br />
4. Trade Notice/Public Notice may be issued to the field formations accordingly.<br />
<br /></div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com2tag:blogger.com,1999:blog-3654551038392576608.post-29078303082916258142012-05-11T23:41:00.000+05:302012-05-11T23:41:10.059+05:30Analysis of changes made by Lok Sabha in Finance Bill, 2012<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="background-color: #ffcccc; color: #cc0000;">ANALYSIS OF CHANGES MADE BY LOK SABHA IN FINANCE BILL, 2012</span></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(1) SHARE PREMIUM IN EXCESS OF THE FAIR MARKET VALUE TO BE TREATED AS INCOME [SEC. 2(24)(XVI)]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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Finance Bill, 2012 proposed to insert a new clause (viib) in Section 56(2) wef assessment year 2013-14. The proposed clause is applicable, if:</div>
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(a) Shares (equity shares or preference shares) are issued by a closely held company to a resident person; and</div>
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(b) Shares are issued at a price which exceeds the fair market value of such shares. In other words, shares are issued at a premium.</div>
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If above conditions are satisfied, the aggregate consideration received from issue of such shares as exceeds its fair market value shall be chargeable to tax in the hands of issuer-company. However, <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">no consequential amendment</b></i> was made to Section 2(24) (meaning of "Income"), so as to include the excess of consideration received over the fair market value of shares within the scope of "Income".</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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In view of above, a new clause (xvi) shall be inserted in Section 2(24) wef April 1, 2013 to provide that any consideration received for issue of shares, as exceeds the fair-market value of the shares referred to in Section 56(2)(viib), shall be treated as 'Income'.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(2) INCOME OF PRASAR BHARATI TO BE EXEMPT FROM TAX [SEC. 10(23BBH)]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No provision was proposed in Finance Bill, 2012 to exempt the income of Prasar Bharati</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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A new clause (23BBH) shall be inserted in Section 10 to exempt the income of Prasar Bharati (Broadcasting Corporation of India) wef assessment year 2013-14.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(3) SHARE PREMIUM IN EXCESS OF THE FAIR MARKET VALUE NOT TO BE TREATED AS INCOME IF SHARES ARE ISSUED BY A COMPANY FROM NOTIFIED CLASSES OF PERSONS [SEC. 56(2)(viib)]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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Finance Bill, 2012 proposed to insert a new clause (viib) in Section 56(2) wef assessment year 2013-14. The clause is applicable, if:</div>
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(a) Shares (equity shares or preference shares) are issued by a closely held company to a resident person; and</div>
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(b) Shares are issued at a price which exceeds the fair value of such shares. In other words, shares are issued at a premium.</div>
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If above conditions are satisfied, the aggregate consideration received from issue of such shares as exceeds its fair market value shall be chargeable to tax in the hands of issuer-company.</div>
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However, the said new clause provisions shall not apply where the consideration for issue of shares is received by a Venture Capital Undertaking from a Venture Capital Company or a Venture Capital Fund.</div>
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The company receiving the consideration for issue of shares shall be provided an opportunity to substantiate its claim regarding the fair market value of the shares.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The exemption from above provision is extended to those issuer-companies as well which belong to a class or classes of persons as may be notified by the Central Government in this behalf.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(4) DEDUCTION FOR INVESTMENT MADE UNDER ANY EQUITY SAVING SCHEME [SEC. 80CCG]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No provision was proposed in Finance Bill, 2012 to provide for deduction in respect of investment made under any equity saving scheme.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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Newly inserted Section 80CCG provides deduction wef assessment year 2013-14 in respect of investment made under notified equity saving scheme. The deduction under this section is available if following conditions are satisfied:</div>
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(a) The assessee is a resident individual (may be ordinarily resident or not ordinarily resident)</div>
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(b) His gross total income does not exceed Rs. 10 lakhs;</div>
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(c) He has acquired listed shares in accordance with a notified scheme;</div>
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(d) The assessee is a new retail investor as specified in the above notified scheme;</div>
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(e) The investor is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme;</div>
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(f) The assessee satisfies any other condition as may be prescribed.</div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Amount of deduction –</i>The amount of deduction is at 50% of amount invested in equity shares. However, the amount of deduction under this provision cannot exceed Rs. 25,000. If any deduction is claimed by a taxpayer under this section in any year, he shall not be entitled to any deduction under this section for any subsequent year.</div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Withdrawal of deduction –</i> If the assessee, after claiming the aforesaid deduction, fails to satisfy the above conditions, the deduction originally allowed shall be deemed to be the income of the assessee of the year in which default is committed.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(5) APPLICABILITY OF GAAR PROVISIONS DEFERRED BY ONE YEAR [SEC. 95 TO SEC.102]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed insertion of New Chapter X-A consisting of new sections 95, 96, 97, 98, 99, 100, 101 and 102 relating to General Anti-Avoidance Rules. The Finance Bill proposed applicability of provisions of GAAR <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">with effect from April 01, 2013.</i></div>
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The provisions of the new section 95 provide that an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement and consequences in relation to tax of such a declaration can be determined.</div>
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Section 96 provides the definition and conditions under which an arrangement can be declared to be an impermissible avoidance agreement. The section also provides for circumstances under which an arrangement shall be presumed to be entered into or carried out for main purpose for obtaining tax benefit.</div>
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Section 97 provides for circumstances under which an arrangement shall be deemed to lack commercial substance.</div>
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Section 98 provides for method of determination of consequences in relation to tax of an arrangement after it is declared to be an impermissible avoidance arrangement. It provides for certain illustrative but not exhaustive methods for determination of tax consequences.</div>
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Section 99 provides that for determining tax benefits for the purpose of the newly inserted Chapter X-A parties who are connected may be treated as one and same person; accommodating party may be disregarded; any arrangement may be treated as one and the same person and an arrangement may be looked through.</div>
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Section 100 provides that provisions of newly inserted Chapter-XA can be applied in alternative to or in addition to any other basis of determination of tax liability.</div>
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Section 101 provides for power to prescribe guidelines for application of provisions of newly inserted Chapter-XA.</div>
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Section 102 provides definition of certain terms relevant for newly inserted Chapter X-A.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Lok Sabha passed the aforesaid provisions in respect of GAAR (except clause 96), however, <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">with effect from April 01, 2014</i></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(6) ONUS OF PROOF IN GAAR PROVISIONS ARE SHIFTED FROM ASSESSEE TO REVENUE [SEC. 96]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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Finance Bill, 2012 proposed that "<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">An arrangement which results in any tax benefit shall be presumed to have been entered into, or carried out, for the main purpose of obtaining a tax benefit unless the person obtaining the tax benefit proves that obtaining the tax benefit was not the main purpose of the arrangement.</i>" In other words, the proposed provisions of GAAR put the entire onus on assessee to prove that the main purpose of present arrangement of transaction is not to obtain the tax benefits.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Lok Sabha omitted above clause from the provisions of GAAR. Now the onus to prove that the main purpose of present arrangement is to obtain the tax benefits would be on revenue.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(7) CHANGE IN THE MEANING OF 'ARRANGEMENT DEEMED TO LACK COMMERCIAL SUBSTANCE" [SEC. 97]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed that "<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">An arrangement shall be deemed to lack commercial substance if:</i></div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(a) …</i></div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(b) …</i></div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(c) it involves the location of an asset or of a transaction or of the place of residence of any party which would not have been so located for any substantial commercial purpose other than obtaining a tax benefit (but for the provisions of this Chapter) for a party.</i>"</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha provides that "<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">An arrangement shall be deemed to lack commercial substance if:</i></div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(a) …</i></div>
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<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(b) …</i></div>
<div class="indent1" style="background-color: white; font-family: 'Times New Roman'; font-size: 12pt; margin-bottom: 4pt; margin-left: 10mm; margin-right: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: justify;">
<i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(c) it involves the location of an asset or of a transaction or of the place of residence of any party which is without any substantial commercial purpose other than obtaining a tax benefit (but for the provisions of this Chapter) for a party.</i>"</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(8) TAXABILITY OF LTCG FROM UNLISTED SECURITIES IN THE HANDS OF NON-RESIDENT AND FOREIGN COMPANY AT 10% WITHOUT INDEXATION [SEC. 112]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No provision was proposed in Finance Bill, 2012 to provide for taxability of long-term capital gain ("LTCG") at concessional rate of 10% if such LTCG is arising to a non-resident assessee or a foreign company from transfer of unlisted securities.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Lok Sabha introduced Sec. 112 wef from the assessment year 2013-14. After the amendment LTCG will be taxable at the rate of 10% if the following conditions are satisfied:</div>
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(a) Taxpayer is a non-resident (not being a company) or a foreign company;</div>
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(b) LTCG arises on transfer of unlisted securities (i.e. unlisted shares, unlisted debentures, etc.)</div>
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(c) LTCG is calculated without giving effect to the first proviso to Sec. 48 (under this proviso capital gain is calculated in foreign currency if few conditions are satisfied)</div>
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(d) Capital gain is calculated without applying indexation provisions.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(9) OPTION TO INSURANCE, BANKING AND ELECTRICITY COMPANIES TO PREPARE FINANCIAL STATEMENTS AS PER REGULATORY ACT OR SCHEDULE VI FOR PURPOSE OF MAT [SEC. 115JB]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No provision was proposed in Finance Bill, 2012 to provide an option to the insurance, banking or electricity generation companies to prepare financial statements either in accordance with the provisions of Schedule VI to the Companies Act or in accordance with the provisions of Act governing such companies.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by Lok Sabha inserted a new <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Explanation</i> 3 to Sec. 115JB to provide an option to the insurance or banking company or any company engaged in the generation or supply of electricity (or any other class of company for which a form of profit and loss account has been specified in or under the Act governing such class of company), to prepare profit and loss account either in accordance with the provisions of:</div>
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(a) Schedule VI to the Companies Act; or</div>
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(b) In accordance with the provisions of the Act governing such companies.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(10) NON-APPLICABILITY OF MAT PROVISIONS TO A COMPANY ENGAGED IN THE BUSINESS OF LIFE INSURANCE [SEC. 115JB]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No exemption to companies engaged in life insurance business was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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A new sub-section (5A) is inserted in Section 115JB wef assessment year 2001-02 to provide that provisions of MAT will not be applicable to any income accruing or arising to a company from life insurance business as referred to in section 115B.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(11) SPECIAL PROVISION FOR CONVERSION OF INDIAN BRANCH OF A FOREIGN BANK INTO A SUBSIDIARY COMPANY [SEC. 115JG]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No such provision was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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Newly inserted Section 115JG (wef the assessment year 2013-14) lays down special provisions relation to conversion of Indian branch of a foreign bank into a subsidiary Indian Company. Special provisions are provided under this section:</div>
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These provisions are given below:</div>
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(a) The Reserve Bank of India will frame a scheme for the purpose of conversion of an Indian branch of a foreign bank into an Indian subsidiary company of the foreign company.</div>
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(b) If the conversion takes place in accordance with the scheme framed by RBI and subject to the conditions notified by the Central Government, the capital gain arising on such conversion shall not be chargeable to tax.</div>
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(c) In the above case, the provisions of the Act relating to treatment of unabsorbed depreciation, set off or carry forward of losses, tax credit in respect of tax paid on deemed income relating to certain companies and the computation of income in the case of the foreign company and the Indian subsidiary company, shall apply with such exceptions, modifications and adaptations as may be specified in that notification.</div>
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(d) If there is a failure to comply with any condition specified in the RBI schemes or notification of the Government, normal provisions of the Act will apply without giving effect to the aforesaid exemption.</div>
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(e) Where such default is committed after claiming capital gain exemption, the benefit of exemption will be taken back by re-computing the income of the assessee under section 154 of the previous year in which conversion took place. The time-limit of 4 year under section 154(7) shall be determined from the end of the year in which the default is committed.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(12) EXEMPTION FROM APPLICABILITY OF TDS ON INCOME PAID TO VENTURE CAPITAL FUND, ETC., CONTINUED [SEC. 115U]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The provisions of section 115U currently allow an opportunity of indefinite deferral of taxation in the hands of investor. With a view to rationalize the above position and to align it with the true intent of a pass-through status, sections 10(23FB) and 115U have been proposed to amended from April 1, 2013 (i.e., assessment year 2013-14 onwards) to provide the following:</div>
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(a) The Venture Capital Undertaking shall have same meaning as provided in relevant SEBI regulations and there would be no sectoral restriction;</div>
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(b) Income accruing to Venture Capital Fund (VCF) or Venture Capital Company (VCC) shall be taxable in the hands of investor on accrual basis with no deferral;</div>
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(c) The exemption from applicability of TDS provisions on income credited or paid by VCF/VCC to investors <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">shall be withdrawn</i>.</div>
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The Finance Bill, 2012 proposed to withdraw the exemption, from applicability of TDS provisions, in respect of income credited or paid to Venture Capital Fund or Venture Capital Company.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Lok Sabha continued the exemption, of applicability of TDS provisions, in respect of income credited or paid to Venture Capital Fund or Venture Capital Company.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(13) PROVISION FOR MANDATORY FILING OF RETURN OF INCOME, IF FINANCIAL INTEREST LOCATED OUTSIDE INDIA, EXTENDED TO ORDINARILY RESIDENT ONLY [SEC. 139]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed mandatory filing of return of income by <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">every resident</i> person, if he/it is having:</div>
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(a) any asset (including financial interest in any entity) located outside India; or</div>
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(b) signing authority in any account located outside India.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha provides that the furnishing of return of income under section 139 would be mandatory if the following conditions are satisfied:</div>
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(a) the person is resident in India <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(but other than not ordinarily resident)</i>, and</div>
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(b) he or it has:</div>
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(i) any asset (including financial interest in any entity) located outside India; or</div>
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(ii) signing authority in any account located outside India.</div>
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If the above two conditions are satisfied, furnishing of return by such person has become mandatory irrespective of the fact whether the person has taxable income or not. The above <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">provisions are not applicable if the concerned person is non-resident or if he/it is resident but not ordinarily resident in India for the relevant assessment year</i>.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(14) PROVISIONS FOR MAKING REFERENCE TO CIT TO INVOKE GAAR DEFERRED BY ONE YEAR [SEC. 144BA]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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Finance Bill, 2012 proposed to insert a new Section 144BA relating to reference to CIT to invoke provisions of GAAR with effect from April 01, 2013</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Lok Sabha passed the aforesaid provision, however, <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">with effect from April 01, 2014</i></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(15) CONSTITUTION OF APPROVING PANEL [SEC. 144BA]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed that the Board shall, for the purposes of this section, constitute an Approving Panel consisting of not less than three members being the Income tax authorities of the rank of Commissioner and above.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha provides that the Board shall, for the purposes of this section constitute an approving panel consisting of not less than three members, being:</div>
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(a) income tax authorities not below the rank of Commissioner, and</div>
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(b) an officer of the Indian Legal Service not below the rank of Joint Secretary to the Government of India.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(16) WITHDRAWAL OF PROVISION FOR DEDUCTION OF TAX AT SOURCE FROM CONSIDERATION PAID FOR PURCHASE OF AN IMMOVABLE PROPERTY [SEC. 194LAA]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill proposed insertion of a new Section 194LAA for deduction of tax at source from payment of any consideration for purchase of an immovable property.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha deleted the insertion of aforesaid section.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(17) EXTENDING THE PROVISIONS OF TDS ON 'INTEREST ON BORROWING' TO BORROWING MADE BY ISSUE OF LONG-TERM INFRASTRUCTURE BONDS [SEC. 194LC]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed insertion of a new Section 194LC for deduction of tax at source from payment of any interest on money borrowed in foreign currency under <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">a loan agreement</i>.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill as passed by the Lok Sabha provides deduction of tax at source from payment of any interest on money borrowed in foreign currency under <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">a loan agreement as well as by way of long-term infrastructure bonds.</i></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(18) EXTENDING THE PROVISIONS OF TDS ON INTEREST ON BORROWING TO EVERY INDIAN COMPANY [SEC. 194LC]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed a new section 194LC for deduction of tax at source by specified companies only from payment of any interest on money borrowed in foreign currency. "Specified company" means an Indian company engaged in the business of:</div>
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(a) generation or distribution or transmission of power; or</div>
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(b) operation of aircraft; or</div>
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(c) manufacture or production of fertilizers; or</div>
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(d) construction of road including toll road or bridge; or</div>
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(e) construction of port including inland port; or</div>
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(f) construction of ships in a shipyard; or</div>
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(g) construction of dam; or</div>
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(h) developing and building a housing project as referred to in sub-clause (vii) of clause (c) of sub-section (8) of section 35AD.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill as passed by the Lok Sabha provides that <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">every Indian company</i> is required to deduct tax at source from payment of any interest on money borrowed in foreign currency under a loan agreement as well as by way of long-term infrastructure bonds.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(19) NO TDS FROM SPECIFIED PAYMENT TO NOTIFIED INSTITUTIONS / ASSOCIATIONS [SEC. 197A]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No such provision was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha inserts a new sub-section (1F) in Section 197A to provide that tax will not be deducted at source from a specified payment to a notified institution, association or body or class of institutions, associations or bodies.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(20) NO COLLECTION OF TAX FROM BUYER IF GOODS ARE PURCHASED FOR GENERATION OF POWER [SEC. 206C]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No such provision was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha amends Section 206C(1A) with effect from July 1, 2012. After the amendment, no tax will be collected at source from a resident buyer who purchases goods for the purpose of generation of power. For this purpose, a declaration will be given in Form No. 27C to the seller.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(21) QUALIFYING LIMIT TO TRIGGER COLLECTION OF TAX ON PURCHASE OF JEWELLERY INCREASED [SEC. 206C]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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The Finance Bill, 2012 proposed collection of tax at source if <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">sale consideration of bullion/jewellery exceeds Rs. 2,00,000</i> and out of total sale consideration any amount is received in cash.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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As per the Finance Bill, 2012 as passed by the Lok Sabha, with effect from July 1, 2012, sale of bullion/jewellery will be subject to TCS provisions, <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">if sale consideration of bullion (excluding any coin/article weighing 10 grams or less) exceeds Rs. 2,00,000 or sale consideration of jewellery exceeds Rs. 5,00,000</i> and out of sale consideration any amount is received in cash.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(22) AMENDMENT TO SECTION 220 [SEC. 220]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No such provision was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha amends Section 220 (wef July 1, 2012) to provide that when interest is charged under section 201(1A) on the amount specified in the intimation issued under section 200A(1), then no interest will be charged for the same amount for the same period under section 220(2)</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(23) AMENDMENT TO THE SCHEME OF AUTHORITY FOR ADVANCE RULING IN CASE OF GAAR[SEC. 245N AND 245R]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No such provision was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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The Finance Bill, 2012 as passed by the Lok Sabha amends Sections 245N and 245R wef April 1, 2013. After the amendment any person (resident or non-resident) may make an application to AAR for determination by it whether an arrangement, which is proposed to be undertaken by him/it, is an impermissible avoidance agreement as referred to in Chapter X-A or not.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">(24) EXTENSION OF TIME LIMIT TO PROCESS APPLICATION FOR RECOGNITION OF EPF ORGANISATION [RULE 4, SCHEDULE IV]</b></div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012</b></div>
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No such provision was proposed in Finance Bill, 2012.</div>
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<b style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Finance Bill, 2012 as passed by Lok Sabha</b></div>
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Rule 4 in Part A of the Fourth Schedule provides for conditions which are required to be satisfied by a Provident Fund for receiving or retaining the status of "recognized provident fund". One of the requirements of rule 4 [clause (ea)] is that the establishment shall obtain exemption under section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF & MP Act).</div>
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The first proviso to rule 3(1), <i style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; outline-color: initial; outline-style: none; outline-width: initial; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">inter alia</i>, specifies that in a case where recognition has been accorded to any provident fund on or before March 31, 2006, and such provident fund does not satisfy the conditions set out in clause (ea) of rule 4 on or before March 31, 2012 and any other conditions which the Board may specify by rules in this behalf, the recognition to such fund shall be withdrawn.</div>
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In order to provide further time to the Employees' Provident Fund Organization (EPFO) to process the applications made by establishments seeking exemption under section 17 of the EPF & MP Act, the time-limit has been extended from March 31, 2012 to March 31, 2013.</div>
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Regards:<br />
<span style="color: #3333ff;"><b><span style="background-color: white;"><span style="font-family: comic sans ms,sans-serif;">Dipak Kumar</span></span></b></span><br />
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<br /></div>Studenthttp://www.blogger.com/profile/15760882945347900226noreply@blogger.com0