Service tax is a tax on service. This is not tax on profession, trade. Calling or employment but is in respect of service rendered . If there is no service, there is no tax. As per Websterâs Concise Dictionary âserviceâ means a useful result or product of labor, which is not a tangible commodity. Thus basically service is a value addition that can be perceived but cannot be seen, as itâs tangible. However, usage of some goods during the course of rendering the service would not mean that there is no âserviceâ .It is the predominant factor in each case, which is to be studied to arrive at a conclusion. Service tax  is a  tax levied on  service providers in  India, except the State of  Jammu and Kashmir. Service Tax, introduced from the financial year 1994-95 now covers as many as 41 services within its ambit. Service sector, which has Continue reading
Legal Framework
Meaning of Life Insurance and Types of Life Insurance Policies
Life insurance is popularly referred to as life assurance. In the case of life insurance, the underwriter agrees to pay the assured or his heirs, a certain sum of money on death or on the happening of an event dependent upon human life in consideration of premiums paid by the assured. Section 2(11) of the Insurance Act, 1938 defines Life Insurance business as follows: âLife Insurance Businessâ is the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life and any contract which is subject to the payment of premiums for a term dependent on human life and shall be deemed to include: The granting of disability and double or triple indemnity accident benefits if so provided in the contract of insurance. The granting Continue reading
Functions of Life Insurance Corporation of India (LIC)
Life insurance business in India was being transacted by private companies until 1956. As a result of the long felt need and in the interest of insuring public, the life insurance business was nationalized in 1956. The nationalization resulted in the establishment of Life Insurance Corporation of India (LIC) by an act of the Parliament. The Corporation was formed and began to function on September 1, 1956 by taking over 170 companies and 75 provident societies. The entire initial capital of Rs.5 crore was contributed by the government of India. The objective of nationalization was described by the then finance minister, C. D. Deshmukh as âto see that the gospel of insurance is spread as far and wide as possible so that we reach beyond the more advanced urban areas well into the hither to neglected rural areas.â The Corporation is a body corporate having perpetual succession with a common Continue reading
The Money Laundering Act, 2002
The Money Laundering Act, 2002 was enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto. The terms used in the Act are defined as under: (1) âintermediaryâ means a stock-broker, sub-broker, share transfer agent, banker to an issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager, investment adviser and any other intermediary associated with securities market and registered under section 12 of the Securities and Exchange Board of India Act, 1992. (2) âproceeds of crimeâ means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located; The term Money Laundering has been defined in Section 3 of the Act as Whosoever directly or Continue reading
Income Tax Act, 1961
âDomestic companyâ means an Indian company, or any other company which, in respect of its income liable to tax under this Act, has made the prescribed arrangements for the declaration and payment, within India, of the dividends (including dividends on preference shares) payable out of such income, as per Section 2(22A). Dividend, according to Section 2(22) includes- (a) any distribution by a company of accumulated profits, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of the assets of the company; (b) any distribution to its shareholders by a company of debentures, debenture-stock, or deposit certificates in any form, whether with or without interest, and any distribution to its preference shareholders of shares by way of bonus, to the extent to which the company possesses accumulated profits, whether capitalised or not; (c) any distribution made to the shareholders Continue reading
The Depositories Act, 1996
The Depositories Act, 1996 was enacted to provide for regulation of depositories in securities and for matters connected therewith or incidental thereto. It came into force from 20th September, 1995. The terms used in The Depositories Act,1996 are defined as under: (1) âBeneficial ownerâ means a person whose name is recorded as such with a depository. (2) âDepositoryâ means a company, formed and registered under the Companies Act, 1956 and which has been granted a certificate of registration under sub-section (1A) of section 12 of the SEBI Act, 1992. (3) âIssuerâ means any person making an issue of securities. (4) âParticipantâ means a person registered as such under sub-section (1A) of section 12 of the SEBI Act, 1992. (5) âRegistered ownerâ means a depository whose name is entered as such in the register of the issuer. Agreement between depository and participant A depository shall enter into an agreement in the Continue reading