<DIRECT TAX LAWS>

n  E-payment of taxes made mandatory - Press Release dated 23-1-2008

n  Income-tax (Second Amendment) Rules, 2008 - Amendment in rule 40C; insertion of rule 40D - Notification No. 11/2008, dated 18-1-2008

n  Merely because an employment related income/benefit cannot be taxed under head 'income from salaries', such a benefit cannot go outside ambit of taxable income and such an income can be taxed under head 'income from other sources' - Sumit Bhattacharya v. Assistant Commissioner of Income-tax [IT Appeal No. 238(Mum.) of 2005]

n  In case of redemption of stock appreciation rights redemption amount being dependent on market price of shares which can move in any direction at any time, income arises only when stock appreciation right is redeemed - Sumit Bhattacharya v. Assistant Commissioner of Income-tax [IT Appeal No. 238(Mum.) of 2005]

<SECURITIES LAWS>

n  Trading and settlement of trades in dematerialized scrips - Circular No. SEBI/MRD/SE/DEP/CIR- 01/2008, dated 22-1-2008

<FEMA>

n  Exim Bank's Line of Credit (LOC) of USD 5 million to Nigerian Export-Import Bank - A.P. (DIR Series) Circular No. 24, dated 23-1-2008

<SERVICE TAX>

n  Export of service - In case of international courier service, consignment has to be delivered abroad and in light of rule 3(2), such service is to be considered as performed outside India and, thus, there cannot be any service tax liability in terms of rule 4, as such a service is deemed to be exported - TNT India (P.) Ltd. v. Commissioner of Service Tax [Appeal No. ST/332/2006]

- Fact that service provider and service recipient are in India is not relevant while considering whether there is export of service in light of deeming provision in rule 3(2) - TNT India (P.) Ltd. v. Commissioner of Service Tax [Appeal No. ST/332/2006]

- Clarification dated 3-10-2005 issued by Ministry with regard to international courier agency is contrary to rule 3(2) - TNT India (P.) Ltd. v. Commissioner of Service Tax [Appeal No. ST/332/2006]

<DAILY CASE LAW REPORTER>

n  Delhi High Court on section 5 of Income-tax Act, 1961 - Abdul Majid Paramjit Singh v. Commissioner of Income tax [INCOME TAX REFERENCE NO. 438 OF 1985]

n  Cochin ITAT on section 17 of Wealth-tax Act, 1957 - C.K. Govindankutty Nair v. Wealth-tax Officer [WT APPEAL NOS. 1,2 AND 3 (Coch.) OF 2004]

n  Supreme Court on section 261 of Income-tax Act, 1961 - CIT v. Malegaon Sahakari Sakhar Karkhana Ltd. [CIVIL APPEAL NOS. 4595-4606 OF 2007]

n  Mumbai ITAT on section 11 of Income-tax Act, 1961 - Cotton Textiles Export Promotion Council v. Income-tax Officer (Exemptions)  [IT Appeal Nos. 6456 & 6576 (Mum.) of 2004]

n  Delhi High Court on section 17(2) of Income-tax Act, 1961 - Commissioner of Income-tax (TDS) v. Delhi Public School [IT APPEAL NO. 1117 OF 2007]

n  Delhi ITAT on section 119 of Income-tax Act, 1961 - Income-tax Officer v. Virender Kumar [IT APPEAL NO. 1451 (DELHI) OF 2006]

n  Ahmedabad ITAT on section 158 of Income-tax Act, 1961 - Dy. Commissioner of Income-tax v. Jayshree M. Pethani

n  Delhi High Court on section 29 of Foreign Exchange Regulation Act, 1973 - Union of India v. ABN Amro Bank [Crl. A. No. 380 of 2003]

n  Karnataka High Court on section 391 of Companies Act, 1956 - B.S. Kyatanagoudar v. Maharashtra Apex Corporation Ltd. [O.S.A. No. 4 of 2005]

n  Bombay High Court on section 34 of Arbitration and Conciliation Act, 1996 - Delta Distilleries Ltd. v. Shaw Wallace & Co. Ltd. [Arbitration Petition No. 377 of 2007]

<NEWS>

n E-filing of tax returns now mandatory

n E-payment of taxes made mandatory for corporates

n Online tax paying for two more categories

n Merchant bankers to value ESOPs by foreign companies

n RBI to cut interest rates : FICCI

n SBI's merger with associate bank may be put on hold

n Left renews demand for increase in STT

n Industry seeks interest rate cuts from RBI

n 'GST regime may mitigate the tax cost'

<A PREVIEW OF LATEST ISSUES OF TAXMANN'S JOURNALS>