• NATIONAL NEWS

India Signs Double Taxation Avoidance treaty with Tanzania

India and Tanzania has signed a double taxation avoidance treaty for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 27th May 2011 at Dar es Salaam. Prime minister, Manmohan Singh at the joint press conference said, "India, on its part, is ready to partner Tanzania in its nation-building efforts. We will focus on areas like agriculture, small and medium industries, health care and human resource development".

Ministry of Commerce Affairs modifies the instruction regarding payment of MCA fees in electronic mode

MCA has instructed that from 29th May, 2011, the payment of less than Rs. 50,000/- through electronic mode will be permissible in the "Investor Education and Protection Fund" through "Pay Misc. Fee functionality".

Double Taxation Avoidance Agreement (DTAA) signed between India and Ethiopia

India signed a Double Taxation Avoidance Agreement (DTAA) with the Federal Democratic Republic of Ethiopia for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 25th May 2011 at Addis Ababa. "The DTAA provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state. Profits of a construction, assembly or installation projects will be taxed in the state of source if the project continues in that state for more than 183 days," Union Finance Ministry said in a statement today.

Power of recall by a no-confidence motion is integral in the process of democracy: SC

The Apex court has disapproved a Punjab law abolishing the elected panchayat member's right to remove the sarpanch through a no-confidence motion saying that the self-governing bodies of the country must have the trust & confidence of people. While allowing the state to withdraw its appeal the vacation bench stated, ""If at all we believe in the tenets of the Father of Nation, the self-governing bodies of the country must have the trust and confidence of people."

Draft Food Security Bill proposes to direct states to pay cash if they fail to provide grain

Draft food security bill proposes to make it mandatory for states to pay a security allowances to targeted sections in case of failure to supply food grain. Also, proposes for a radical overhaul of the public distribution system by providing incentives to independent agencies that procure food grains.

Interim stay on Service Tax on legal Services to remain in force till 6.9.2011

In a matter challenging ST levy on legal services, the Delhi High Court while granting time to Parties to file counter and rejoinder affidavits has adjourned the matter for 6th September, 2011 with direction that interim stay shall remain in force till this next date of hearing.

Panel to strengthen laws to curb generation of black money and facilitate its recovery

Government has announced the setting up of a panel to examine tightening of laws to check the growth of black money and suggest ways to declare the illegally generated money as national wealth. The panel will also examine "the existing legal and administrative framework to deal with the menace of generation of black money through illegal means including, declaring wealth generated illegally as national asset.

LLP of chartered accountants not to be treated as 'body corporate' for the purpose of S.226(3)(a):MCA

MCA has clarified that the Limited Liability Partnership of chartered accountants will not be treated as 'body corporate' for the limited purpose of S.226(3)(a) of the Companies Act, 1956

Service tax exemption to processing of tobacco & raw cashew for or on behalf of client

CBEC has clarified that agricultural produce namely tobacco or raw cashew, which are subject to client processing retains their essential characteristics at output stage & are covered by expression 'in relation to agriculture' appearing in notification 14/2004-ST entitling it to exemption.

SC to challenge a CIC order allowing litigants to raise queries on logic behind judgments

The Apex court has challenged a CIC order allowing litigants to raise queries on logic behind judgments contending that CIC failed to appreciate that an RTI applicant cannot seek reason on why a particular order is passed. How could the Supreme Court provide information under RTI on why a particular order or judgment was passed that went beyond the reasoning and logic given in that order or judgment, the SC asked.

Report of the RBI working group paves way for introduction of Financial Holding Company structure

To ensure that banking continues to be core activity, report of the RBI working group has suggested introduction of Financial Holding Company structure for all new entrants to the banking and insurance industries with central bank as the prime regulator.

Keeping mistress amounts to inflicting mental cruelty to wife: Bom HC

Bombay HC has held that keeping a mistress amounts to inflicting mental cruelty on wife and the provisions of section 498 A of IPC can be invoked for the offence concerning mental cruelty due to illicit relations with another woman."In the opinion of this court, the trial court has rightly appreciated the evidence of prosecution witnesses inasmuch as the proof of the offence concerning mental cruelty due to illicit relations of (Ratan) with another woman," said Justice Joshi

Set up panel to negotiate and fix a settled price before land acquisition: SC

The Apex Court has suggested the government to negotiate with farmers before acquiring land for development purposes saying that in large number of cases, the anguish and dispute is over the compensation and litigation could have been avoided by fixing a reasonable compensation for land.A vacation bench comprising Justices G S Singhvi and C K Prasad said: "In large number of cases, the anguish and dispute is over the compensation. If the governments would have formulated a reasonable compensation, then litigation could be avoided". "Instead of resorting to public purpose for acquiring land and prolonging litigation, the government can negotiate the compensation. We know, we've travelled beyond the legal arguments, but you need to think it over," SC said.

• INTERNATIONAL NEWS

South Tyneside Council wins case over Twitter accounts

The South Tyneside Council won the legal battle to force an international social network site to hand over details of accounts allegedly used by one of its own elected members. USA-based microblogging site Twitter has now been ordered by the Superior Court of California to hand over details of five accounts. A spokesman for the council said: "I can confirm Twitter has released information to our lawyers, and that this is currently being analysed by technical experts"."The council has a duty of care to protect its employees and, as this blog contains damaging claims about council officers, the legal action was taken to identify those responsible."

Close Watch On Illegal Rugby World Cup Revenue

The Newzeland Government is keeping a close watch on sure ticket scalpers and sellers of pirated jerseys pay tax on any illegal Rugby World Cup-related revenue. The Inland Revenue Department confirmed that ticket scalpers and sellers of unauthorised merchandise related to the World Cup will be liable for tax on their illegal gains. An IRD spokesman said the department's approach to enforcing the tax obligations on scalpers was "as for anything else we do for the hidden economy". "We've got ways of keeping an eye on ways people are generating money and we do expect them to pay tax on it."

Photo Tagging Patent granted to Facebook

Facebook has been granted Photo taggin Patent. Facebook had filed for patent on photo tagging on 11th October 2006 as it had anticipated photo tagging feature to be worth . The patent (US7945653) titled "Tagging digital media" was invented by Mark Zuckerberg, CEO of Facebook, Aaron Sittig and Scott Marlette, designer and engineer respectively.

U.K has released Report on future of Intellectual Property Rights in the Country

The independent review committee set up in Novemebr ,2010 by Prime Minister David Cameron chaired by Prof. Ian Hargraves released the Report titled Digital Opportunity, A Review of Intellectual Property and Growth on 18thMay 2011. The report found that the UK's intellectual property framework, particularly copyright, is obstructing innovation and growth.