N K GOEL AND BROS.

                          Applicable from           June 07, 2013 Compliance of Section Section 67A of the Finance Act, 1994 read with explanation to Section 14 of the Customs Act, 1962 What to do? Rate of exchange for calculation of gross value of taxable service would be the rate, as determined by CBEC for the conversion of foreign currency into Indian currency or vice versa,   applicable on the date on which taxable service has been provided or agreed to be provided. How? CBEC from time to time issues Notification to notify rate of exchange determined by it. Please find enclosed herewith the Notification No. 59/2013 dated June 06, 2013 containing the Rates of Exchange applicable from June 07, 2013...

COST INFLATION INDEX FOR FY 2013-14 The cost inflation index for the financial year 2013-14 has been notified by notification no. 40 dated 6th of June 2013 at 939 .  What is Cost Inflation Index (CII) It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to 75 per cent of average rise in the consumer price index (CPI) for urban non-manual employees for the immediately preceding previous year.Therefore, if we consider that price of a capital asset has risen in tandem with base price rise, then if one want to sell an asset and replace it, the cost allowed even after indexation will be lesser than the price payable for new asset. However, in case of many capital asset the price rise is lesser than market price and in many cases it is higher. How does CII help in capital gains...