Leaf No : 16
Month : July
Year : 2011
editor’s desk

Greetings from Team SA!

The word ‘Outsourcing’ simply means “acquiring a product or service rather than producing it yourself”. The boom in outsourcing in India in various fields is mainly on principle of availability of wide labour pool for relatively low rate. Though Medical transcription, Business Process Outsourcing (BPO), and Knowledge Process Outsourcing (KPO) are most popular domains in this field, there is no dearth of demand and supply for ‘outsourced surrogacy’. ‘Outsourced surrogacy’ otherwise known as ‘Commercial Surrogacy’ or ‘International surrogacy’ is the phenomenon of ‘renting a womb’. India, mainly for its low cost factor, is a much favoured destination for hiring wombs.

The industry is so well organised and systemised that there is an uprise in the number of clinics providing assisted reproductive technologies. The foreign parties desiring to have a baby through surrogacy are commonly referred as commissioning parties. The commissioning parties would get in touch with the Clinics, who would arrange a suitable surrogate carrier. The clinics choose the carrier through what is almost like a ‘fertility reality show’ where various candidates with required qualifications (as age between 18 and 40, at least one child of their own, good medical condition) are shortlisted. The surrogate candidate is impregnated through the process of In Vitro Fertilisation (IVF) of sperm and egg of commissioning parties....

... read more

ask sa ...

A distinguished client from a major corporate house asked:

1. Can the Central Excise officers summon our Managing Director?

2. If so, can an advocate accompany him ? 

...  Click here for answer


"swamy associates" mourns the mumbai -terror victims and condemns the brutality.

genie in aladdin’s lamp

# CESTAT holds that the compensation paid to dealers/distributors where manufacturer effecting sales directly is in nature of consideration towards promotion of business of manufacturer and not a sales commission...Click here for copy of the decision

# CESTAT holds that the debentures are not goods, hence sale, promotion or marketing of same is not taxable under BAS...Click here for copy of the decision

# CESTAT holds that there is no need to determine taxability of free supplies under construction service if services are classifiable under Works Contract...Click here for copy of the decision

# No permission from Customs department required for clearance of cargo from Port Trust holds Calcutta High Court...Click here for copy of the judgement

# Seized goods cannot be detained indefinitely without valid order of detention under Section 110 of Customs Act, 1962 holds Calcutta High Court...S.J.Fabrics vs UOI - 2011 (268) ELT 475 (Cal).

# Bombay High Court quashes the circular imposing condition of nexus between input and final product under Target Plus Scheme...Click here for copy of the judgement

# CESTAT holds that the clearance of retail packs to job worker for repacking to assorted packs to be valued based on MRP under Section 4A...Click here for copy of the decision

# CESTAT holds that the clearance of goods to EOUs are to be treated as deemed exports and hence refund of unutilised credit can be claimed under Rule 5 of Cenvat Credit Rules, 2004 and such refund claim can be filed annually instead of once in quarter...Click here for copy of the decision

before parting ...         -jk

latest news

 2011 - 12 tax collection may cross ten lakh crores - FM increases revenue targets by 10%.

 Board notifies "proper officers" to overcome the SC ruling in the case of Sayed Ali - Empowers DRI / DGCEI to issue show cause notices... Click here for copy of the Notification

 Bihar Finance Minister and Deputy CM, Mr. Sushil Modi, has been elected as the new Chairman of the Empowered Committee of State Finance Ministers on GST in place of Dr. Asim Dasgupta.

 Senior Advocate Mr. Rohinton Fali Nariman is the new Solicitor General of India.



 Kerala HC grants interim stay against coercive steps for recovery of service tax on restaurants and short term accommodation service for a period of two months.

 Madras HC grants stay on legal consultancy services including registration requirement.

 CDBT notifies digital signature mandatory for e filing of income tax returns.

 Simplified procedure for onlineincorporation of Companies notified...MOC General Circular No. 49/2011 dated 25.07.2011

vat spot

# Tamilnadu increases VAT rates from 4% to 5% and 12.5% to 14.5%.

# Apex Court rules that the stainless steel wire does not fall under category of “tools, alloys and special steels of any of the above categories” under Setion 14 (iv)(ix) of Central Sales Tax Act, 1956...Bansal Wire Industries Limited vs. State of UP 2011 269 ELT 145 S.C

circulars & notifications


# New ER - 1 form for excise manufacturers notified... Click here for copy of the form

# Form ER - 8 notified for manufacturers of goods attracting 1% duty...Click here for copy of the Notification

# Exemption from excise duty on food preparations prepared or served in hotels ... Click here for copy of the Notifiction

# Additional conditions specified for excise & customs duty exemptions to ultra power projects... Click here for Notifications No. 35/2011-CE & 65/2011-Cus both dated 21.07.2011

# Rules of Origin notified for imports from Malaysia - Concessional rates notified for import of specific items... Click here for copy of the Notification

# Time limit for utilisation of recredited SAD in DEPB extended up to 15.09.2011...Click here for copy of the Circular

# Circular issued for strict implementation of hazardous waste rules to control dumping of e-waste to India...Click here for copy of the Circular

# New instructions issued regarding customs clearance at Airport... Click here for copy of the Instruction

# Exemption to club or association services provided by association of Dyeing units relating to common effluent treatment facility...Click here for copy of the Notification

# Board clarifies "completion of service" under POT Rules 2011 & Service Tax Rules 1994...Click here for copy of the clarification




# DGFT issues notice on procedure relating to export of drugs and pharmaceuticals .. 59(RE-2010)/2009-2014, Dated : June 30, 2011 & 60(RE-2010)/2009-2014, Dated : June 30, 2011


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