NRO deposit is “foreign exchange asset” subject to TDS @20 per cent

the Appellate Tribunal was right in holding that the second reassessment proceedings were not validly initiated and thereby quashing the reassessment proceedings-the proceedings initiated by the AO for the second time under Section 147 is barred by limitation-even the proviso to Section 147 does not come into play on the facts of the case-AIT-2010-373-HC Even if the goods belong to same entry, manufacture does take place if new identifiable/marketable goods known in market emerge due to operation conducted-the process of ironing applied to the stiched brassieres prior to their packing was a process incidental to the completion of the brassieres as a manufactured product-process of purification and filtration being incidental or ancillary to the manufacture of a marketable product, the Respondent was entitled to Modvat credit on the inputs involved-AIT-2010-370-HC Larger Bench of CESTAT rules the Tribunal has ample power to condone the delay in filing the appeal including the one filed under section 35 E (4)-AIT-2010-372-CESTAT Corruption in IRS takes its toll-Deputy Commissioner of Income Tax Dhananjay Kumar arrested by CBI in Mumbai-Joint Commissioner of Customs & Excise Hemant Kothikar also arrested by CBI FM directs expediting of Cadre Restructuring in CBDT & CBEC Tariff Value for import of Brass Scrap is 3924-Customs Non-Tariff Notification No. 78 Chief Justice of Gauhati High Court Justice Ranjan Gogoi to be Chief Justice of Punjab & Haryana High Court Anti-dumping duty on imports of Acrylic Fibre originating in, or exported from Japan and Belarus-Customs Tariff Notification No.85 Prescribing SION for new product “Propylene” under Chemical & Allied Products Group-DGFT PN 7 Inclusion of Finished Leather in the Focus Product Scheme of FTP-DGFT PN 6 Exchange Rate for imported goods is Rs 47.25 per US Dollar and Rs 60.35 per EURO-Exchange Rate for export goods is Rs 46.30 per US Dollar and Rs 58.70 per EURO-Customs Non-Tariff Notification No. 77-Click on Exchange Rate for details Anti Dumping Duty under the Notification No.15/2007 is not applicable to Spandex Yarn (Elastomeric yarn)-Customs Circular No.30 Import of goods under Notification No.13/2010 for Commonwealth Games, 2010-Customs Circular No.31 Larger Bench of CESTAT rules charges towards pre-delivery inspection and after-sale-service by dealers from buyers of the cars to be included in the assessable value of cars for payment of excise duty-AIT-2010-366-CESTAT merely because there was non accounting of goods, penalty was technical and inference of clandestine removal was not called for-AIT-2010-365-HC ITAT rules provision for doubtful debts and provision for standard debts are to be taken into consideration for computation of book profit u/s. 115JB of the IT Act-AIT-2010-361-ITAT HC rules slitting of aluminum foils into customized width, mounting the same on the printing machine and thereafter printing the necessary text thereon is covered for 80IB benefit as it falls within the ambit of the term “produce”-AIT-2010-363-HC Definitive Anti-dumping duty imposed on imports of Coumarin, originating in, or exported from China-Customs Tariff Notification No. 82 Special Bench of ITAT Ruling-where a forward contract is entered into by the assessee to sell the foreign currency at an agreed price at a future date falling beyond the last date of accounting period, the loss is incurred to the assessee on account of evaluation of the contract on the last date of the accounting period i.e. before the date of maturity of the forward contract-AIT-2010-355-ITAT-SB

JUDGMENTS

CENTRAL EXCISE

CUSTOMS

exchange rate

SERVICE TAX

INCOME TAX

VAT

FINANCE ACTS

FINANCE BILLS

EOU STPI

SEZ

DGFT

RBI

NTT

RESOURCES

Email | Print

NRO deposit is “foreign exchange asset” subject to TDS @20 per cent

AIT News Network

NEW DELHI. Authority for Advance Rulings(Income-Tax) vide a ruling dated 3^rd March 2008 AIT-2008-80-AAR has ruled that the NRO deposit to be made by the applicant with convertible foreign exchange in a banking company which is not a private company, shall be treated as 'foreign exchange asset' under clause (b) of Section 115C of the Income Tax Act. Further, income by way of interest earned from the said NRO deposit shall be treated as 'investment income' under clause (c) of Section 115C and shall be liable to be taxed at the rate of twenty per cent under section 115E; and the banks paying interest on the NRO deposit of the applicant are required to deduct tax at source at the rate of twenty per cent.

The applicant, left India on 23 April, 2007 and is living in the Kingdom of Saudi Arabia. As he has spent more than 182 days outside India, he has claimed the status of a non-resident individual for the financial year 2007-08, corresponding to the assessment year 2008-09. He proposes to open a Non-resident Ordinary deposit (NRO account) with banks in India with the help of remittances from Saudi Arabia.

The applicant sought advance ruling of this Authority on the following questions:-

(i) Whether the non-resident ordinary (NRO) deposit acquired with convertible foreign exchange can be treated as a 'foreign exchange asset' under section 115C of the Income-tax Act, 1961?

(ii) Whether the interest on such NRO deposits can be treated as 'investment income' under sec. 115C of the Income-tax Act, 1961 and liable to be taxed at 20% only under sec. 115E?

(iii) At what rate tax is required to be deducted at source by the person responsible for paying such interest?

(iv) Whether form 15G can be accepted by the Banks?

(Click here for full text of Ruling AIT-2008-80-AAR)

· Authority rules on data recovered and re-imported in different media

· Imports for Power Projects exempt from Additional duty: Advance Ruling

· Salary paid by Infosys to non-resident employee taxable: AAR

· 10 per cent tax on sale of original and bonus shares by Foreign Resident

· Profit from Portfolio Investment not business income

· No capital gains on amalgamation of the wholly owned subsidiary foreign company with its parent company

· Non resident agents rendering services outside India & getting payment outside India liable to income tax in India : Advance Ruling

· Authority Settles Tax on Capital gains by Real Estate Developers

· Profits of dealings with HO by MNCs branch taxable