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May 16, 2012
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Iron ore export regulation emphasized: no ban proposed, exports discouraged by higher duty and freight, Bellary exports restricted.
Current policy applies a 30% ad-valorem export duty on iron ore (except pellets) and there is no proposal to ban exports; exports are discouraged through higher export tariffs and increased railway freight. Regulatory measures beyond fiscal tools may harm mining development; stockpiling fines creates environmental hazards and raises domestic lumpy ore costs. Judicial suspension of mining and export from Bellary District has been ordered until further notice.
May 16, 2012
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Import dependence on edible oils and pulses prompts production-focused policy measures to reduce reliance on imports.
Import dependence on key agricultural commodities is highlighted, with edible oils and pulses identified as the principal imported items. The release emphasises policy measures to reduce import reliance by increasing domestic production of oilseeds and pulses under the Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM), and discloses commodity-wise import values supplied by the Directorate General of Commercial Intelligence and Statistics in response to a parliamentary written question.
May 16, 2012
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Net Foreign Exchange obligation requires SEZ units to achieve cumulative positive NFE, or face penal action.
Two SEZs in Nagaland have approval with one notified but not operational. Under Rule 6, approval is valid for three years subject to implementation steps and possible extension by the Board of Approval. SEZ units and developers must achieve Net Foreign Exchange (NFE) earnings cumulatively for five years from production commencement; failure to meet the NFE obligation attracts penal action under the Foreign Trade (Development and Regulation) Act, 1992. The Development Commissioner monitors SEZ units and developers per the SEZ Act, 2005 and Rules.
May 16, 2012
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SEZ designation for gems and jewellery requires operation under Letters of Approval with monitoring and penal consequences.
A number of SEZs have been approved and several formally notified as Gems & Jewellery SEZs; units may operate only as authorised in their Letters of Approval, are monitored annually by the Unit Approval Committee, and face penal action for violations under the SEZ statutory regime and foreign trade regulation. The annex lists developers and locations and distinguishes SEZs established prior to the SEZ legislation from those approved under it.
May 14, 2012
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Financial assistance under APEDA supports exporters via scheme-based grants with monitored implementation and full plan fund utilization.
APEDA extends Financial Assistance to eligible registered exporters through five plan schemes: Market Development, Quality Development, Infrastructure Development, Research and Development, and Transport Assistance. The Government reviews APEDA's performance and each scheme periodically-particularly during Annual Plan formulation and budget cycles-and examines component-wise physical and financial achievement reports against targets. APEDA has fully utilized its plan funds during the referenced period, with scheme monitoring and ministerial scrutiny serving as the principal oversight mechanisms.
May 14, 2012
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Transaction cost reduction through implemented export facilitation measures lowers ongoing export compliance and operational burdens.
Implementation of Task Force recommendations reduced export transaction burdens by adopting infrastructure and procedural reforms: 23 of 44 recommendations were implemented, producing ongoing reductions in export transaction costs and altering the regulatory and administrative environment governing export transactions.
May 14, 2012
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Deemed export review: inter-departmental committee solicited industry suggestions and is considering representations before policy supplement.
An inter-departmental committee chaired by the DGFT was established to review the Deemed Export Scheme, invited submissions from Trade Bodies and Export Promotion Councils, received representations from forty-three bodies, and held an interactive session with representatives of nineteen organizations; those suggestions are under consideration. The Foreign Trade Policy is issued for a multi-year period with annual supplements, and the current year's supplement had not been announced.
May 14, 2012
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Price sharing formula mandates allocation of made-tea sale proceeds between growers and factories under Tea Board regulation.
The Tea Board under the Tea Act administers sectoral development by regulating cultivation, sale and export, and by registering and licensing participants in the trade. It promotes quality improvement, scientific and economic research, and marketing domestically and abroad, while discharging worker welfare duties and compiling sector statistics. The Board enforces a Price Sharing Formula to allocate proceeds of made tea sales between growers and factories and implements plan schemes to operationalize these measures.
May 14, 2012
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Transaction cost reduction in exports drives procedural simplification and broader EDI integration to improve transparency and timelines.
The Task Force estimated export transaction costs at about seven to ten percent of export value and issued 44 recommendations, of which 23 have been implemented producing recurring savings. Consultations covered six export sectors and multiple export chain functions. Measures to reduce costs focus on procedural simplification, expanded and strengthened Electronic Data Interface linkages among Customs, banks and export promotion councils, and prescribed timelines for disposal of authorisations in the Handbook of Procedures.
May 14, 2012
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De-licensing of dry cell industry allows full automatic-route foreign investment while production shows marginal decline.
The dry cell sector is de-licensed and eligible for foreign direct investment on the automatic route, allowing full foreign participation; imports have substantially decreased while domestic production has shown a marginal decline, attributed to rising input costs, increased retail prices, and consumer shifts to more energy-efficient products, a context relevant to policies aimed at enhancing domestic production and attracting investment.
May 14, 2012
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Export facilitation for gold and silver jewellery expands duty drawback and eases carriage and re import rules to support trade.
The Government announced export facilitation and sector-development measures for the gold and silver jewellery industry, including duty drawback rates for jewellery exports, increased personal carriage allowances and extended re import periods for exhibition participants, permission for authorised persons of EOU jewellery units to carry gold in primary form subject to regulatory guidelines, and establishment of a skill council to upgrade sector skills.
May 14, 2012
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Export incentive schemes provide duty credit benefits with focused market targeting and compliance monitoring enforcing penalties.
Status Holders, Special Bonus Benefit and Special Focus Market Schemes grant duty credit incentives tied to export performance and destination; the Special Focus Market benefit is additional to existing focus-market credits. A Monitoring Committee supervises financial outgo and scheme expansion. Identified misuse risks include forged documents, mis-declaration, diversion to the domestic market and invoice manipulation. Where irregularities are found via monitoring or intelligence, penal measures are taken under the Foreign Trade (Development & Regulation) Act and rules, including suspension or cancellation of IEC, fiscal penalties with penal interest, and action under customs law.
May 14, 2012
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Import of Essential Commodities reports commodity-wise trade data and identifies shortages and price drivers with official statistics disclosure.
Import of essential commodities is reported through a commodity-wise schedule for three periods, explaining imports result from domestic shortages or higher domestic prices and noting that detailed country-wise trade statistics are published on trade statistics CDs supplied to the parliamentary library; the annexure lists import values for staples, oils, fertilizers, petroleum and chemicals with provisional figures for the latest period and annual totals.
May 14, 2012
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Import prohibitions and mandatory compliance requirements restrict hazardous waste and certain consumer and industrial imports, with tariff liberalisation for priority sectors.
Import restrictions prohibit hazardous waste and substances contaminated with such waste and prohibit import of beef and products containing beef; various food items, cement, bottled water, alcoholic beverages, livestock and livestock products, metallic waste and scrap, generator sets, cigarettes and tobacco products are subject to mandatory compliance requirements prior to import. India narrowed its SAFTA sensitive list substantially and granted zero basic customs duty on items removed from that list, targeting priority sectors such as cotton, jute, textiles, machinery, transport equipment and pharmaceuticals.
May 14, 2012
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Inspection and quarantine certificate requirement restricts aquatic exports without confirmation, prompting Indian export authority engagement.
China requires inspection and quarantine certificates for imported aquatic products to be confirmed by its inspection authority effective 1 June 2012; India's export inspection agency has taken up the matter with Chinese authorities. The annexure provides market-level and item-wise export quantities and values for aquatic/marine products from India for 2008-09 through 2011-12 (provisional), detailing major destination markets and product categories that may be affected by the certification requirement.
May 14, 2012
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Export performance shows rebound and continued growth in goods and services, disclosed via parliamentary data release.
Press release reporting national export figures for goods and services across three financial years, with merchandise and services export values and year on year growth rates for 2009 10, 2010 11 and 2011 12 (provisional or period specific), sourced to DGCI&S and BOP (RBI), and disclosed via a written parliamentary reply by the Minister of State for Commerce & Industry.
May 14, 2012
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Excise duty on synthetic fibers remains increased despite industry representations for a fibre-neutral optional duty proposal.
The Union Budget 2012-13 raised the excise duty on synthetic fibers from ten percent to twelve percent; the Government received post budget representations requesting reduction and an optional excise duty to achieve a fibre neutral policy, but the Finance Bill proposals were not changed, while state-wise production and export statistics for textiles and yarns are published and the National Textile Policy 2000 is affirmed.
May 14, 2012
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Minimum Support Price policy for raw jute secures farmer income and governs government procurement and market intervention.
The Government's support for jute combines the Minimum Support Price mechanism with the Jute Technology Mission's four Mini Missions and complementary measures (seed distribution, technology transfer, market linkage, industrial modernization, training, export promotion, and compulsory jute packaging). Jute Corporation of India acts as the nodal procurement agency, buying raw jute at MSP without quantity ceiling when prices fall to MSP and making commercial purchases at market rates for indented supplies. MSP is fixed annually on CACP recommendations considering production costs and demand-supply factors.
May 14, 2012
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Import concessions for reeling machinery aimed at reducing production costs and strengthening domestic silk competitiveness.
The Government reported a decline then partial recovery in cocoon prices linked to raw silk market movements and reliance on imports to fill the domestic raw silk shortfall. Policy responses include concessional customs duty for imported modern automatic and dupion reeling machines with accessories, strengthened extension support, seed and host plant development, productivity enhancement measures, reinforcement of the Centrally Sponsored Catalytic Development Programme, and a proposal to establish an Institute for Silk and Biomaterial Technology within the Central Silk Board campus in Bangalore.
May 12, 2012
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Exemption from excise duty for specified jewellery and tariff-heading goods announced under statutory excise powers.
Exemption from excise duty is declared for specified articles of jewellery and goods within the referenced tariff heading by exercise of the power under section 5A of the Central Excise Act, 1944, effected through Notification No. 23/2012-Central Excise and tied to descriptions in the First Schedule to the Central Excise Tariff Act, 1985.

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