Tax planning has once again come to the fore as a subject of discussion after the Vodafone judgement. In the case of Vodafone International Holdings BV versus Union of India, the Supreme Court gave a judgment on 20th January, 2012, in which in para 67 it has been said that &ldquo; whether a transaction is used principally as a colourable device for the distribution of earnings, profits and gains, is determined by a review of all the facts and circumstances surrounding the transaction... It is in the above cases that the principle of lifting the corporate veil or the doctrine of substance over form or the concept of beneficial ownership or the concept of alter ego arises&rdquo;. Applying this test the Supreme Court concluded that &ldquo;the Offshore Transaction herein is a bonafide structured FDI investment into India which fell outside India&rsquo;s territorial tax jurisdiction and hence not taxable.

Tax planning in the context of verdict

Business Standard

The introduction of GST is now nearer than ever. The Budget 2012 should, therefore, take positive steps towards making the path of GST smoother. GST is a combination of comprehensive service tax and comprehensive goods tax. The Comprehensive service tax is expected to come in this Budget. So the next step towards that end is the introduction of comprehensive goods tax (excise tax) with a negative list of goods (not to be taxed).

What should be done for advancement of GST?

&ldquo;Occupy the Wall Street&rdquo; in the USA and similar protests in other countries in recent times show the people's perception about the economic set up that it is unjust and is skewed against the poorer class. These upheavals are no less against the the tax system also which is a key element in the economic set up . Indeed the whole world is burdened with GST, thanks to the motivation supplied by the IMF. Only exception is the USA.

'Regressivity' of VAT-GST can be remedied at great cost

Small Scale exemption for Central Excise Duty has been there for long but in 1994-budget and thereafter restrictions have been imposed on availing the exemption. The effect is if a small scale firm uses the brand name of another company, the exemption meant for small scale will not be admissible. This was done mainly to curtail the usage at that time by big firms to outsource their supplies through small scale and together muster a very huge amount of goods for further sale without paying duty at any stage.

Budget should clear the air on similarity of brand names

If you intend to import chewing gum, be prepared to pay 45% duty of customs, which is 15% more than other confectioneries. If you want to import male donkey you have to pay 25% but the female donkey can be imported for 30%.

Budget must not ignore reforms in customs

Amid reports claiming that Delhi's tableau has missed the cut for next year's Republic Day parade, AAP national convenor Arvind Kejriwal on Sunday accused the Centre of playing politics over the issue.
Kejriwal also slammed the BJP, saying Delhi being the national capital, its tableau should be included in the Republic Day parade every year.
"I want to ask them -- why is Delhi's tableau being excluded once again this year? Why are the people of Delhi being prevented from participating in the Republic Day celebrations," Kejriwal asked at a press conference.
Claiming that Delhi's tableau has been missing the cut for several years now, Kejriwal said, "What kind of politics is this? Why is there so much hatred towards Delhi and its people? If these leaders hold such animosity, why should the people of Delhi vote for them?"
Notably, Assembly elections in Delhi are due in February.
Hitting back at the AAP chief, Delhi BJP President Virendra Sachdeva claimed Kejriwal shows his "true colo

KEJRIWAL

Three managers were dismissed for the violations, and a police report was filed against them

Singapore Post

Demonstration of seed germination in outer space, a robotic arm to catch a tethered debris there, and testing of green propulsion systems are some of the experiments planned on the POEM-4 -- the fourth stage of ISRO's PSLV rocket that remains in orbit after launching a satellite.
The PSLV-C60 mission, slated for an yearend launch, is scheduled to place the twin satellites 'Chaser and Target' to demonstrate the space docking technologies that are crucial for building India's space station.
The PSLV Orbital Experiment Module (POEM) will carry 24 experiments -- 14 from various ISRO labs and 10 from private universities and start-ups -- to demonstrate various technologies in space.
ISRO plans to grow eight cowpea seeds from seed germination and plant sustenance until the two-leaf stage in a closed-box environment with active thermal control as part of the Compact Research Module for Orbital Plant Studies (CROPS) developed by the Vikram Sarabhai Space Centre.
The Amity Plant Experimenta

ISRO

In an interview with Russian TV and radio outlet VGTRK, Putin said, "It is possible to do everything if there is desire. We have never abandoned this desire"

Putin, Russian President, Vladimir Putin

Pope Francis called for a ceasefire on all war fronts in his Sunday Angelus prayer ahead of Christmas, condemning the cruelty of bombing schools and hospitals in Ukraine and Gaza.
Let the weapons fall silent and let the Christmas carols ring out! Francis said, delivering his Sunday blessing from indoors due to a cold and as a precaution ahead of a busy Christmas period.
Let us pray that at Christmas there will be a ceasefire on all war fronts, in Ukraine, in the Holy Land, throughout the Middle East and throughout the world, the pope said.
Francis recalled, as he often does, the battered Ukraine that continues to be hit by attacks on cities, which sometimes damage schools, hospitals and churches.
He also expressed his pain thinking of Gaza, of such cruelty, to the machine-gunning of children, to the bombing of schools and hospitals ... How much cruelty!
Francis on Saturday also criticised Israel's actions in Gaza and said that his envoy had been unable to enter the territory becau

Pope Francis

GST Council addresses disaster levy, clarifies tax exemptions, and revises ITC norms, while deferring insurance premium GST cut and key rate rationalisation decisions

GST council meeting

After two weeks of buying, FPIs turned net sellers in Indian equities this week, with a net withdrawal of Rs 976 crore amid a strengthening US dollar and steady rise in US 10-year bond yields, impacting investor sentiment.
Foreign Portfolio Investors (FPIs) began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions (December 16-20).
However, the trend reversed in the latter half of the week, with FPIs offloading equities worth over Rs 4,102 crore in the subsequent three sessions. This resulted in an overall net outflow of Rs 976 crore during the week, data from National Securities Depository Limited showed.
Despite this short-term reversal, the broader December trend remains positive. FPIs have infused Rs 21,789 crore into Indian equities so far this month, reflecting continued confidence in India's economic growth potential and its resilient markets.
FPIs adopted a cautious approach due to the US Fed meeting and uncertainty about 

Foreign portfolio investor exodus: Financial sector bears the brunt, FPI

Fundraising via IPOs in India hit another landmark as economic growth, favourable market conditions and improvements in the regulatory framework helped companies raise a record Rs 1.6 lakh crore in 2024, while the pipeline for the next year holds out bigger promise.
This exceptional year not only reflected the confidence of issuers but also highlighted investors' eagerness to seize listing-day gains or back companies with strong long-term growth potential.
The year was marked by Hyundai Motor India's historic IPO, the largest in the country's history, which raised Rs 27,870 crore.
Companies of varying market capitalisations -- large, mid, and small -- tapped into the IPO route in 2024, with the average issue size rising significantly from Rs 867 crore in 2023 to over Rs 1,700 crore in 2024.
The exceptional vibrancy of the IPO market was evident, with December alone seeing at least 15 launches.
"Rising retail participation, strong domestic inflows and active participation by FPIs (

ipo market listing share market

The accumulated losses of state public sector enterprises (PSEs) rose from Rs 3,953.70 crore in 2020-21 to Rs 4,778.70 crore in 2022-23, while the profit earned by 13 SPSEs stood at Rs 20.21 crore as on September 30, 2023, according to a report by the Comptroller and Auditor General (CAG) on finances tabled in the Assembly on Saturday.
The net worth of nine out of these 14 PSEs has been completely eroded by losses and their worth was (-) Rs 1,932 crore against an equity investment of Rs 2,085.59 crore, while three PSEs have outstanding government loans amounting Rs 3,132 crore, the report said.
Himachal Pradesh State Electricity Board topped the list of loss making enterprises with accumulated losses of Rs 1,809.61 crore, followed by Himachal Pradesh Road Corporation at Rs 1707.12 crore, HP Power Corporation at Rs 552 crore, Himachal Pradesh Power Transmission Corporation at Rs 395.91 crore, HP Financial Corporation at Rs 180.97 crore, State Forest Corporation at Rs 113.04 crore, HPM

The Centre may overshoot the Rs 56,260 crore target for dividend receipts from central public-sector enterprises (CPSEs) set for FY25 and is likely to end up getting around Rs 65,000 crore this financial year, according to a senior government officia

A 50-year-old doctor from Saudi Arabia, who has been living in Germany since 2006, is the prime suspect in the Christmas market attack in Magdeburg, which killed five people

Germany police

The Central government has released Rs 47,225 crore to the states and union territories under the Smart Cities Mission till November 15 and out of which Rs 44,626 crore has been utilised, the Lok Sabha was informed on Thursday.
In a written reply to a question, Union Minister of State for Housing and Urban Affairs Tokhan Sahu said the work orders have been issued till November 15 in 8,066 crore amounting to Rs 1,64,669 crore, of which 7,352 projects (i.e. 91 per cent of total projects) amounting to Rs 1,47,366 crore have been completed under the mission.
The Ministry of Housing and Urban Affairs (HUA) has a multi-level review structure to expedite the progress of projects under the Smart Cities Mission, said Sahu, adding mission implementation at the state level is monitored by the state level high powered steering committee chaired by the chief secretary.
At the national level, the implementation is monitored by an apex committee headed by the HUA secretary, the minister said.
The

smart city, urban, security, Surveillance, cctv cameras, population

The second edition of the Bharat Mobility Global Expo, scheduled to be held at three different venues in the National Capital and Great Noida, is expected to see more than three times footfalls this year compared to the inaugural version year, Engineering Exports Promotion Council (EEPC) said here on Thursday.
It is also expecting a higher participation from the exhibitors.
The council also said that Prime Minister Narendra Modi may inaugurate the six-day Bharat Mobility Global Expo 2025.
To be spread across more than 2,00,000 sq metres with concurrent shows, featuring automobile, auto component and construction equipment segments, among others, across three venues -- Bharat Mandapam in New Delhi, Yashobhoomi in Dwarka (West Delhi) and the India Expo Centre & Mart in Greater Noida, the mega event is likely to see half-a-million visitors this year compared to 1.5 lakh visitors at the 2024 edition, EEPC Chairman Pankaj Chadha told reporters here.
"The Bharat Mobility Expo 2025 ...

Bharat Mobility Global Expo 2024 (Photo: bharat-mobility.com)

Markets regulator Sebi has decided to defer the ESG disclosure deadline for value chain partners of listed companies by one year until FY26, giving more time to them to comply with the Business Responsibility and Sustainability Reporting (BRSR) requirements.
Until then, environmental, social and governance (ESG) reporting will remain voluntary instead of the current "comply-and-explain" approach.
The proposal, approved by Sebi's board on Wednesday, is aimed at enhancing ease of doing business for listed companies and their value chain partners in meeting BRSR requirement.
The Sebi's board approved several relaxations and updates for ESG disclosures.
These include "deferring ESG disclosures for value chain", as well as "assessment or assurance" thereof, by one year. Hence, ESG disclosures for value chain shall apply from FY26 (as against the current requirement of FY 2024-25) and "assessment or assurance" thereof shall be applicable from FY 2026-27 (as against the current requiremen

SEBI

Increase in tax on electric vehicles will make it difficult for the electrification journey of the Indian automotive industry, Kia India Managing Director and CEO Gwanggu Lee said on Thursday.
The company, which unveiled its new company SUV Syros, is looking at around 17 per cent sales growth next year at 3 lakh units as compared to 2.55 units expected this year.
A big burden for EVs is still the high price, Lee told PTI here in an interaction.
"So without any tax incentive from the government it is very difficult," he said when asked about the impact on possible increase in tax on EVs.
New EVs at present attract 5 per cent GST.
There has been speculation that the GST rate on used EVs, currently taxed at 12 per cent, may be reclassified into the higher 18 per cent tax slab.
Kia India currently sells two EV models -- EV6 with price starting at Rs 60.96 lakh and EV9 tagged at Rs 1.3 crore.
Lee cited the example of Canada where sales of EVs crashed when the incentives on EVs were .

Electric vehicles, EVs, Electric car

ChatGPT is now available on WhatsApp. OnePlus 13r launching in India on Jan 7. Vivo X200 series sale starts. Sennheiser Profile Wireless microphones launched. Nothing OS 3.0 roll out

Tech Wrap December 19

Congress calls FIR against Rahul Gandhi over Parliament scuffle a 'badge of honour', alleging BJP's vendetta and diversionary tactics to counter his protest against Amit Shah's Ambedkar remarks

Rahul Gandhi, Rahul, congress leader

The I-T department probes Rs 7,500 crore spent on lavish weddings, targeting Jaipur planners and fake billing networks linked to foreign destination events and cash transactions

weddings, marriage

The latest Economic Survey said, India has to find the right balance between importing goods from China and importing capital (FDI) from China

How policymakers are split over attracting Chinese investment into India

The Banning of Unregulated Lending Activities Bill calls for the CBI to handle probes in cases spanning multiple states or UTs

The Centre, in collaboration with states, has proposed to classify unregulated lending as a cognizable and non-bailable offence, with penalties including imprisonment of up to 10 years. The finance ministry has invited feedback by February 13 from st

Sukumar Mukhopadhyay

Sukumar Mukhopadhyay

Page 6 - Sukumar Mukhopadhyay

Tax planning in the context of verdict

What should be done for advancement of GST?

'Regressivity' of VAT-GST can be remedied at great cost

Budget should clear the air on similarity of brand names

Budget must not ignore reforms in customs

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Kejriwal slams Centre after Delhi tableau excluded from Republic Day parade

Singapore Post fires CEO, senior executives after whistleblowing report

ISRO's POEM-4 to test seed germination, debris capture, green fuel in space

Russia never abandoned desire to normalise ties with US, says Putin

Pope Francis calls for ceasefire on all fronts in prayer ahead of Christmas

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55th GST Council takes key decisions, defers rate cuts on insurance premium

FPIs pull out Rs 976 crore from Indian equities amid rising dollar

IPO boom: Record Rs 1.6 trn raised in 2024; bigger gains expected in 2025

Losses of Himachal's 30 PSEs rose from Rs 3,953 cr to Rs 4,778 cr: CAG

Who is the Saudi-born suspect behind Germany Christmas market attack?