Mar 31, 2014

How RTI can help to choose where to invest

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How RTI can help to choose where to invest
 The Right to Information ( RTI) Act was implemented in India nine years ago. The Bill was introduced in 2004’ s winter session of Parliament and passed in June 2005. RTI remains a potent legal weapon to fight opacity in public offices and politicians continue to fear it. In the last winter session, a Parliamentary standing committee, while supporting passage of an amendment in the Act, concluded political parties should be kept out of the ambit. The RTI (Amendment) Bill, 2013, seeks to insert an explanation in Section 2, which states any association or body of individuals registered or recognised as a political party under the Representation of the People Act, 1951, will not be considered a public authority.

While many people have successfully used RTI to get information on their applications for ration cards or passports, there are mixed views on what extent RTI can benefit a layman.

Individuals face many issues with money matters. How can investors make the best use of RTI? Says Pune- based RTI activist Vivek Velankar: “ On the investment side, there are many private sector companies.
Unfortunately, they do not fall under the purview of RTI directly. Only public sector companies come under it.” Private companies can be tracked under RTI through the regulators like Reserve Bank of India (RBI), Securities and Exchange Board of India ( Sebi), and Insurance Regulatory and Development Authority of India ( Irda).

Regulators can provide only the information acompany is bound to furnish. At the same time, not all this information can be shared with you. The Act, under Sections 8and 9, exempts certain categories of information from disclosures.

The fee for an RTI application to a central government authority is Rs. 10, to be paid through demand draft or cheque or by post. The charge for providing the information is Rs. 2 for each page created/ copied, actual charge of a larger size paper copy, actual cost for samples and, for inspection of records, no fee for the first hour,Rs. 5 for each 15 minutes, thereafter. To provide information under Section 7( 5) of the Act, it will charge Rs. 50 per diskette or floppy. For information provided in printed form at the price fixed for such publication or Rs. 2 per page of photocopy for extracts from the publication.

If a financial institution or a regulator can provide the required information, it will do so within 30 days of receiving the application.

Here’s how you can use RTI with various financial institutions: EPF: There have been many instances of employers not depositing the contributions towards Employee Provident Fund ( EPF) deducted from an employee’s salary. Employees can file an RTI application with the Employee Provident Fund Organisation (EPFO) to check. An EPF account balance can be checked online.

Those who have transferred EPF balances know the pain of doing so. It is hard to track the balance transfers. RTI can help in checking the status. Even withdrawals from an EPF account can be tracked through RTI. Real estate: RTI activist Bhaskar Prabhu of Mumbai’s Mahiti Adhikar Manch says individuals looking to buy a house in a realty project can use RTI. Eighty per cent of Mumbai flats do not have an Occupation Certificate ( OC), without which you cannot enter a flat. “ Individuals can ask for the Information of Disapproval ( IoD), under which one can know the requisites the builder needs for the project, which of the documents he has, which ones are yet to be furnished, if the permission from local authority is in place, if the project is in the builder’s name or not, if the land title is clear or not, floor planning of the construction, fire safety planning and so on,” he says.

Here, you will need to check with the local authority under which the project falls —municipal corporation, collector, gram panchayat. Accordingly, the RTI application should be addressed, says Prabhu.

Banks: Sometimes, bank staff can be non-cooperative. If you feel so, RTI can help you secure information about customer service norms, its service and the terms and conditions.

Second, banks might allow you to open an account or locker only if you make a deposit or buy a insurance policy. You can question banks on such unjust rules. Or, when you think a bank has gone against its own terms and conditions. Assume you are shopping for the cheapest home loan and a bank is not helping with the required information.

You can find the interest rates, prepayment norms and other documentation issues through RTI.

However, this is only applicable to nationalised banks directly. For private sector banks, go through RBI.
Insurance: There are only five public sector insurance companies — Life Insurance Corporation of India ( LIC), New India Assurance, United India Insurance, Oriental India Insurance and National Insurance. These can be approached directly; the private insurers will have to be approached through Irda.

“There isn’t exact transparency on where traditional insurance plans invest. Policyholders can question LIC on that,” says Velankar. You can also check on the charges of investing in traditional and unit linked plans. Claim status can also be checked, if delayed.

Most banks are listed and declare financial details. So do even the unlisted insurance companies, through their bank promoters.

You can ask for more financial details from these institutions, if required. Income tax: According to experts, if all the information provided while filing the return was correct, and the refund hasn’t come, one can check the status with an RTI application.

Only an assessee can make an application for knowing the status of his/ her tax income tax refund.
Experts suggest this route if you have not received your refund for at least a year. RTI is an interim step before you knock at the Ombudsman’s door.

Mar 30, 2014

PF trusts need to file e-return: EPFO

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PF trusts need to file e-return: EPFO
Retirement living fund body EPFO has managed to get mandatory for non-public provident fund trusts to file their returns online every month from April in 2010 to improve the monitoring of such employers.

"(private PF trusts) are required to file e-return. It is mandatory return from April 1, 2014 onwards... all such recent establishments (trusts) ought to compulsorily file e-return seeing that on March thirty-one, 2014 (for all seasons 2013-14) and after that at regular monthly intervals, " a good order of Staff Provident Fund Company for field employees said.

Private PF trusts tend to be formed by businesses that manage the cash and accounts of these workers themselves. The members of such trusts enjoy tax and other advantages at par using EPFO subscribers. There are over 3, 000 such trusts that are regulated by the particular EPFO.

According to some senior official, the purpose of making e-return obligatory for private PF trusts will be another step in direction of digitisation of records of such trusts to increase their monitoring.

Inside the e-return, the trusts will provide information about employment within their organisation, contribution in direction of social security schemes, investments of funds, audit, financial statement and financial health from the trust.

The official said how the move would improve monitoring from the PF trusts and at last help the EPFO present permanent account range to members of such trusts.

The EPFO has chose to provide permanent account number to their over 5 crore subscribers from October in 2010. Permanent or wide-spread account number (UAN) will probably facilitate subscribers to avoid filing PF account transfer claims upon changing jobs.

Right after getting UAN, a subscriber wouldn't be issued brand-new PF account number on joining brand-new employer.


It is supposed to provide great reduction to those staff in organised segment who frequently transform jobs, particularly, inside construction sector.

IT amendments can't be ignored with DTAA treaty

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IT amendments can't be ignored with DTAA treaty
The scope and effect of the legislation cannot be curtailed by the DTAA, if after it comes into force an Act of Parliament is passed which contains contrary provision - This issue could have been discussed further had the petitioner questioned the legality of the Finance Act, 2012 inserting Explanations 5 and 6 in section 9(1)(vi) of the Act - The Tribunal had rightly directed deposit of 50 per cent of tax liability on the grounds urged by the petitioner seeking grant of interim stay

Facts:

(1) The assessee, engaged in business of providing telecom services to its subscribers in India, entered into agreements with non-resident telecom operators ('NTOs') for providing bandwidth and inter-connects capacity outside India.

(2) It also entered into a capacity transfer agreement with 'Belgacom' (a tax resident of Belgium) for acquisition of capacity over the Europe-India gateway (EIG) cable system.

(3) Assessee argued that the payments to NTOs and Belgacom couldn't be termed as 'royalty' under the provisions of Income-tax Act.

(4) Accordingly, it filed the instant writ with the High Court against the impugned order of Tribunal granting limited stay on recovery of tax.

The High Court held in favour of revenue as under:

(1) section 9(1)(vi) makes it clear that payments for rendering any services in connection with activities referred to in clauses (iv) and (v) of the Explanation 2 to section 9(1)(vi) would attract the definition of 'Royalty.'

(2) Explanations 5 and 6 to section 9(1)(vi) inserted by the Finance Act, 2012 provide that royalty includes consideration in respect of any right, property orinformation. As these Explanations are in the book of statute, unless they are declared ultra vires or their legality is tested, it is indispensable for the Assessing Officer to apply these Explanations while determining tax liability under the Act;

(3) The petitioner had not questioned the validity of the said amendments in this writ. Thus, the Assessing Officer was bound to apply such provisions in determining the taxability of the payments made by the petitioner to the NTOs;

(4) The scope and effect of the legislation can't be curtailed by the DTAA if after its entry into force an Act of Parliament is passed which contains contrary provision. The DTAA is entered into pursuant to the power conferred upon the Government under section 90;

(5) Thus, a detailed discussion was required as to whether section 90(2) was of such nature so as to nullify all Acts of the Parliament which create tax liability under the Act? This issue could be debated further had the petitioner questioned the legality of the Finance Act, 2012, inserting Explanations 5 and 6in section 9(1)(vi) of the Act;

(6) Any observation made on the above issues would not be construed as an expression of opinion on merit in view of the fact that all these issues are sub judice in the two appeals filed before the Tribunal. Thus, it needed to be examined whether the petitioner had made out a case for grant of stay in its entirety.

(7) There was no material placed before the Court to show that the petitioner would suffer irreparable hardship and injuries to his favour due to order of Tribunal granting limited stay on recovery of tax. The Tribunal had answered the grounds urged by the petitioner seeking grant of interim stay and had reached the logical conclusion by directing the petitioner to deposit 50% of the tax liability. The order of the Tribunal could not be interfered with.

Contrary views have emerged from certain verdicts of High Court on the issue as to whether retrospective amendments in the Income-tax Act could override the provisions of treaty which can be settled by the Supreme Court only. In case of DIT v. Nokia Networks OY [2012] 25 taxmann.com 225 and Sanofi Pasteur Holding SA v. Department of Revenue, Ministry of Finance [2013] 30 taxmann.com 222 (Andhra Pradesh) the High Courts have held that the provisions of retrospective amendments can't override the provisions of treaty.

Mar 29, 2014

IT department issue an important notice to non-filers of IT return

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IT department issue an important notice to non-filers of IT return
Income tax department issued an important notice for non-filers of income tax return through website incometaxindisefiling.gov.in. Full notice is as under.

In 2013, Income Tax Department issued letters to 12,19,832 non-filers who had done high value transactions.

In 2014, Income Tax Department has identified additional 22,09,464 non-filers who have done high value transactions. You may be one of them. Act Now! 

Log on to e-filing portal at https://incometaxindiaefiling.gov.in 
If you are not registered with the e-filing portal, use the ‘Register Yourself’ link to register.

You can view ‘Information Summary’ under the ‘Compliance’ module and submit whether it pertains to you or any other person you know.

If you have already filed the return, you should submit the details under ‘Filing of Income Tax Return’. If not, you should pay your taxes and file the return.

You can keep a print out of submitted response for record.

Inflation bond investment limit doubled to Rs. 10 Lakh

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Inflation bond investment limit doubled to Rs. 10 Lakh
The   Reserve Bank of India (RBI) features said the investment limit from the inflation indexed bonds for people has been doubled to Rs 10 lakh.

Also, the limit with regard to institutions like HUF (Hindu undivided family), Charitable Trusts, Education Endowments and similar institutions which are non profit in nature has been increased from Rs 5 lakh to help Rs 25 lakh per annum, the central bank said.

The subscription to the Inflation Indexed Nationwide Savings Securities-Cumulative will certainly close on March 31.

RBI throughout consultation with federal government had launched the particular bond in November. Earlier, the attachment was open with regard to subscription during November 23-31, but had been later extended to help March 31.

Monthly interest on the bonds is linked with Consumer Price Directory (CPI).


These securities will be issued available as Bonds Ledger Consideration (BLA).

Mar 28, 2014

CBDT will simplify e-filing norms

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CBDT will simplify e-filing norms
E-filing of Tax returns will end up being further simplified by the Central Board of Direct Taxes (CBDT) which said it can be encouraged by the increasing volume of taxpayers taking the web based route.

The e-filing of returns this financial year saw the jump of 40 per cent with 25, 647 crore online returns being filed till March 22 in contrast with over 1. 80 crore e-returns filed by taxpayers through the corresponding period this past year.

"We are seeking to further simplify the e-filing procedures. Let's see what most can we do. We are progressing extremely fast on this difficulty, " CBDT Chairman 3rd there R K tewari informed reporters here.

Tewari said that e-filing is catching up even amongst those people who are not stipulated to file their returns furthermore of e-filing.

The percent formula of such taxpayers was near 66 percent, he said.

A total of 52 per cent people, Tewari explained, chose to data file their e-returns following office hours which ensures that people are filing their tax returns at the leisure of these homes and other places through laptops or pcs.

Belting out several figures, the Chairman explained the Central Processing Centre (CPC) on the department in Bengaluru, that receives I-T returns, is processing 2. 80 lakh returns per month and till January 28 (financial yr 2013-14) six crore returns are processed.

The volume of days taken to totally process the e-returns, the officer said, in addition has come down via 70 to 61 days.


"A overall of Rs 7, 700 crore demand have been collected through the CPC, " this individual said.

Mar 27, 2014

Book closure date for financial year 2013-14 is April 15 2014

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Book closure date for financial year 2013-14 is April 15 2014
Government of India decided that the book closure date for financial year 2013-14 is April 15 2014. Reserve bank of India issued a note dated 27 March 2014 regarding this issue. Full note is as under.

Please refer to Circular DGBA.GAD.No.H - 5353/42.01.029/2012-13 dated March 14, 2013 advising the procedure to be followed for reporting and accounting of collection of Direct Taxes (CBDT) and Indirect Taxes (CBEC) and transactions of Departmentalized Ministries at the Receiving/Nodal/Focal Point branches of your bank for the Financial Year 2012-13.

2. The Government of India has decided that the date of closure of Residual Transactions for the month of March 2014 be fixed as April 15, 2014 for the Financial Year 2013-14. Accordingly, you may close the relative books of account on April 15, 2014.

3. In view of the ensuing closing of Government Accounts for the financial year 2013-14, you may please reiterate the instructions to your branches regarding introduction of special messenger arrangements at your receiving branches. Receiving branches not situated locally should also adopt special arrangements such as courier service etc. for passing on challans/scrolls etc. to the Nodal/Focal Point branches so that all payments and collections made on behalf of Government towards the end of March are accounted for in the same financial year.

4. As regards reporting of March 2014 transactions by Nodal/Focal Point branches in April, the branches may be advised to follow the procedure as outlined in the Annex. To sum up, the Nodal/Focal Point branches will be required to prepare separate sets of scrolls, one pertaining to March Residual Transactions and another for April Transactions during the first 15 days of April 2014. The Nodal/Focal Point branches should also ensure that the accounts for all transactions (revenues/tax collections/payments) are effected at the receiving branches upto March 31, 2014 in the accounts for the current financial year itself and are not mixed up with the transactions of April 2014. Also, while reporting transactions pertaining to March 2014 up to April 15, 2014, the transactions of April 2014 should not be mixed up with “March Residual Transactions."

5. The procedure now followed for reporting and accounting of transactions of Non-Civil Ministries viz. Defence, Posts, Railways and Telecommunications (which was revised with effect from October 1, 1993), is similar to the procedure for reporting and accounting of transactions of Departmentalised Ministries. The special arrangements for reporting March transactions by receiving branches to Nodal/Focal Point branches and the procedure for reporting March 2014 transactions in April 2014 by Nodal/Focal Point branches as indicated in paragraphs 3 and 4 above are also applicable to the reporting of transactions of Non-Civil Ministries. The branches of your bank handling the Non-Civil Ministries transactions, if any, may, therefore, be advised to follow the above procedure.

6. We shall be glad if you will please issue necessary instructions in the matter to your branches concerned immediately.

CBDT new guidelines for approval of agriculture project u/s 35CCC

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CBDT new guidelines for approval of agriculture project u/s 35CCC
In exercise of the powers conferred by section 295 read with section 35CCC of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (3rd Amendment) Rules, 2014.

(2) They shall come into force on the date of their publication in the Official Gazette.
2.In the Income-tax Rules, 1962,—

(a) for rule 6AAD, the following rule shall be substituted, namely:—
"6AAD. Guidelines for approval of agricultural extension project under section 35CCC.—(1) The agricultural extension project shall be considered for notification if it fulfils all of the following conditions, namely :—

(i) the project shall be undertaken by an assessee for training, education and guidance of farmers;

(ii) the project shall have prior approval of the Ministry of Agriculture, Government of India; and

(iii) an expenditure (not being expenditure in the nature of cost of any land or building) exceeding the amount of twenty-five lakh rupees is expected to be incurred for the project.

(2) Before undertaking any agricultural extension project, an assessee shall make an application in Form No. 3C-0 to the Member (IT), Central Board of Direct Taxes for notification of such project under sub-section (1) of section 35CCC.

(3) The application referred to in sub-rule (2) shall be accompanied by the following, namely :—

(a) a detailed note on the agricultural extension project to be undertaken by the assessee;

(b) details of the expenditure expected to be incurred on the project and expected date of completion of the project; and

(c) a letter approving the project and specifying the amount of expenditure expected to be incurred on the project from the Ministry of Agriculture, Government of India.

(4) Where any defect is noticed in the application referred to in sub-rule (2) or a relevant document is not attached thereto, the Central Board of Direct Taxes shall, before the expiry of one month from the date of receipt of the application in its office, intimate the defect to the applicant for its rectification.

(5) The applicant shall remove the defect within a period of fifteen days from the date of such intimation or within such further period as may be extended by the Central Board of Direct Taxes, on an application made in this behalf by the applicant, so however, that the total period for removal of defect does not exceed thirty days, and if the applicant fails to remove the defect within such period as allowed, the Central Board of Direct Taxes shall pass an order treating the application as invalid.

(6) If the application form is complete in all respects, the Central Board of Direct Taxes shall, within a period of one month from the end of the month in which it receives the application form complete in all respects, issue under sub-section (1) of section 35CCC, a notification in Form No. 3CP to be published in Official Gazette specifying the agricultural extension project, subject to the conditions mentioned in rule 6AAE or such other conditions, as it may deem fit, to be effective for such period not exceeding three assessment years.

(7) The assessee, may, atleast two months before the expiry of the effective period of the notification issued under sub-rule (6), make an application to the Central Board of Direct Taxes for notification of such project for a further period.

(8) The Central Board of Direct Taxes shall, after receiving the application under sub-rule (7), call for a report from the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the case regarding the activities of the agricultural extension project during the period of notification and fulfillment of conditions mentioned in rule 6AAE and any other conditions subject to which the agricultural extension project was notified under sub-rule (6).

(9) On being satisfied with the report received under sub-rule (8) on the agricultural extension project, the Central Board of Direct Taxes may, within a period of three months from the end of the month in which it receives application referred to in sub-rule (7), notify the said project for a further period not exceeding three assessment years.

(10) A copy of the notification issued under sub-rule (6) or, as the case may be, under sub-rule (9) shall be sent to the applicant, the Ministry of Agriculture, Government of India, the Commissioner of Income-tax or the Director of Income-tax, as the case may be, the Department of Agriculture of the concerned State and the Agricultural Technology Management Agency of the concerned District.

(11) The Central Board of Direct Taxes may, on being satisfied that the assessee has ceased its activities, or that its activities are not genuine or that its activities are not being carried out in accordance with all or any of the relevant provisions of the Act or this rule or rule 6AAE, or its activities are not being carried out in accordance with all or any of the conditions subject to which the notification was issued, pass an order for rescission of the notification issued under sub-rule (6) or sub-rule (9).

(12) Before any order is passed treating the application as invalid or rejecting it or rescinding the notification, an opportunity of being heard in the matter shall be given to the assessee.

(13) A copy of the order invalidating or rejecting the application or rescinding the notification shall be sent to the applicant, the Ministry of Agriculture, Government of India, the Commissioner of Income-tax or the Director of Income-tax, as the case may be, the Department of Agriculture of the concerned State and Agricultural Technology Management Agency of the concerned district.";

(b) in rule 6AAE —
(i) in sub-rule (2), for the words, brackets, figures and letters "notification issued under sub-rule (10) or sub-rule (11) of rule 6AAD", the words, brackets, figures and letters "notification issued under sub-rule (6) or sub-rule (9) of rule 6AAD" shall be substituted;

(ii) in sub-rule (7), for the words, brackets, figures and letters "for appropriate action as per the provisions of sub-rule (13) of rule 6AAD", the words, brackets, figures and letters "for appropriate action as per the provisions of sub-rule (11) of rule 6AAD" shall be substituted.

Mar 26, 2014

Special counters at banks will remain open till 8pm on 29 and 31 March 2014

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Special counters at banks will remain open till 8pm on 29 and 31 March 2014
Reserve bank of India guides banks to arrange a special counter for taxpayers and remain open it till 8Pm on 29 and 31 March 2014. 

 We have been requested by the Government of India and some State Governments to facilitate collection and accounting of government transactions (such as receipts of taxes and revenue) for the current financial year (2013-14) up to March 31, 2014 keeping in view the likely rush of tax-payers towards the end of March 2014. Accordingly, it has been decided that all agency banks shall keep the counters of their designated branches conducting government business open for extended hours till 8.00 P.M. on Saturday, March 29 and Monday, March 31, 2014 at locations where March 31, 2014 has not been declared as a public holiday.

2. Further, on Sunday, March 30, 2014 and on Monday, March 31, 2014 (at places where holiday has been declared), agency banks may keep select branches open as a regular working day for transacting government business at key locations identified by them, based on volume of transactions. All electronic transactions would however continue till midnight on March 31, 2014. Banks may give due publicity about availability of banking facility for government business on these days.

3. As regards conduct of extended clearing sessions / operations on these dates, separate guidelines are being issued by our Department of Payment and Settlement Systems, Central Office, Mumbai.

Income tax office remain open on 29, 30 and 31 March 2014

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Income tax office remain open on 29, 30 and 31 March 2014
Income tax offices will remain open on 29, 30 and 31 March 2014 for the financial year 2013-14 closing on 31 March 2014. Income tax department issued a order dated 24 March 2014 regarding this issue. 

Also there may a special arrangement for opening additional receipt counter for filing income tax return or other related work.

India UK DTAA new interplay

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India UK DTAA new interplay
 Where special provision 'sends subject back to general provision', it is the general provision that applies

• The well-settled rule of generalia specialibus non derogant means that the special provision overrides the general provisions. If there is a particular subject which is governed both by a special provision as well as a general provision, then it is the special provision which will take the subject within its fold to the exclusion of the general provision. However, it is not the end of the road. If such original special provision again takes the particular subject, on fulfillment of certain conditions, back to the general provision or any other special provision, then it is such general or any other special provision which will rule that particular subject. In such a situation, by which the original special provision sent the subject back to the general provision or any other special provision, the subject will be governed by the general or such other special provision.

• A cursory look at para 1 of Article 7 of the India-UK treaty ('DTAA') manifests that the profits of an enterprise of a Contracting State shall be taxable only in the State of residence 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, then the profits of the enterprise may be taxed in the other State but only so much of them as are directly or indirectly attributable to that permanent establishment. In our context, it means that if the UK enterprise carries on business in India through its permanent establishment situated in India, then the income earned by such UK enterprise from business carried on through such PE in India is chargeable to tax in India within the meaning of para 1 of Article.

• The effect of para 9 of Article 7 is that if 'Business profits' include an item of income which falls under any of the specific Articles of the DTAA, such as Royalties and fees for technical services under Article 13, then such income shall be excluded from the 'Business Profits' under Article 7 and come up for consideration under such specific Articles such as Article 13. But when any para of Article 13 sends the subject back to Article 7, then it shall be administered by the mandate of Article 7 to the exclusion of Article 13.

• Para 6 of article 13 of DTAA provides that the provisions of paragraphs 1 and 2 of Article 13 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 and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 (Business profits) of this Convention, as the case may be, shall apply.

• The nutshell is that once Article 7 has excluded royalty or fees for technical services to be considered under Article 13 but para 6 of Article 13 has sent the matter back to Article 7, it is the mandate of Article 7 which shall apply on the amount excluded by para 6 of Article 13.

Mar 4, 2014

Do and Don't list for pre 2005 notes

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Do and Don't list for pre 2005 notes
 DOs
1. Banks should sensitize the members of public that the pre-2005 notes would continue to be legal tender. Banks should endeavour to organize note exchange melas in semi-urban/rural areas.

2. All denominations of banknotes issued prior to 2005 series have to be exchanged.

3. These notes must be freely accepted and exchanged by all bank branches from all members of public, whether customers or non-customers.

4. The process of exchange at bank branches should be started forthwith and undertaken as per the convenience of members of public.

5. The exchange of notes should be done free of cost.

6. The value of such notes may be credited in customers’ account, if desired.

7. The value of such notes payable shall be in terms of the RBI, Note Refund Rules, 2009.

DON’T
1. Banks should not place any restriction on the number of banknotes to be exchanged by a member of the public.

2. Banks should not issue pre-2005 series notes over the counter or through ATMs.

3. Currency chest branches should not refuse pre -2005 banknotes from their linked branches.