Monday, 30 June 2014

India Taxes- Due Date Alert for the month July 2014




Sr No
Due Date
Related to
Compliance to be made
1
05.07.2014
Service Tax
Payment of Service Tax for the Month of June 2014
2
07.07.2014
TDS/TCS
(Income Tax)
· Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of June 2014.
· Deposit TDS from Salaries deducted during the month of June 2014
• Deposit TCS for collections made under section 206C including sale of scrap during the month of June 2014, if any
• Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of June 2014, if any
3
15.07.2014
TDS/TCS
(Income Tax)
Furnish quarterly statement of tax deducted at source (TDS) and tax collected at source (TCS) for the quarter ended June 2014 in Form 24Q / 26Q / 27Q / 27EQ.
4
20.07.2014
VAT
Payment of VAT & filing of monthly return for the month of June 2014
5
30.07.2014
TDS/TCS
(Income Tax)
Issue of TDS Certificate - Non Salary for Q1 FY 2014-15
6
31.07. 2014
Income Tax
Filing of return of income tax by non –corporate assesses
7
21.07.2014
STPI
Filing of Softex Form for the month ended June 2014

New Way of Getting Income Tax Refund


If your refunds, rectifications, other matters like not getting orders to give effect to the Appellate orders, etc. are pending since long, reminders not bringing any results, you may make application under the RTI Act to the Commissioner of Income-tax (CIT), under whose jurisdiction you are assessed to tax. The CIT has to dispose  your applicationwithin thirty days of the receipt of the request (S. 7 of the RTI Act). In other words, normally you will get your work

Latest RPU Ver. 4.0 replaced with FVU 4.3 and 2.139 Ver. w.e.f. 28.06.2014

The Income Tax Department(NSDL-TIN) has released New FVU Ver. 4.3 for TDS/TCS Return Preparation Utility and new File Validation Utilities w.e.f. 28.06.2014 for quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards with additional features which is as below:

Whether when original assessment was completed after scrutiny, AO has powers to resort to re-assessment on basis of Lokayukta's and Newspaper Reports on alleged suppression of sales - YES: ITAT

THE issue before the Bench is - Whether when the original assessment was completed after a scrutiny, the AO has the powers to resort to re-assessment on the basis of Lokayukta's and Newspaper Reports on alleged suppression of sales. And the answer favours the Revenue.
Facts of the case
Assessee, a public sector undertaking, is engaged in the business of mineral exploration and extraction. Assessee filed its returns for the impugned assessment years and the assessment was

S. 254(2): Pendency of an appeal filed in the High Court u/s 260A bars the hearing of a MA filed u/s 254(2) even if the appeal is not admitted

RW Promotions Pvt. Ltd vs. ACIT (ITAT Mumbai)

The assessee has moved an instant Miscellaneous Application (MA) against the order of the !TAT. At the time of hearing, the AR for the assessee-appellant informed that the assessee has filed an appeal u/s 260A before the Hon’ble Bombay High Court, but is yet to be admitted. Since the appeal has

S. 50/ 112: Though gains on depreciable assets held for more than 3 years have to be treated as STCG u/s 50, the gains have to be taxed at the rate applicable to a LTCG

Smita Conductors Ltd vs. DCIT (ITAT Mumbai)

The assessee’s stand that s. 50C does not apply to depreciable assets is not acceptable in view of United Marine Academy130 ITD 113(Mum) (SB). As regards the rate of tax, s. 50, which deems the capital gains as short-term capital gain is only for the purposes of sections 48 and 49 which relate to computation of capital gain. The deeming provisions have to be restricted only

Due date for service tax - VCES for second installment - 30th June, 2014

Please note that due date for second and final installment for payment in respect of Voluntary Compliance Encouragement scheme (VCES) is on 30th June, 2014

If you make payment after 30th June, 2014 then service tax will be with interest payable under VCES

Whether service tax paid for insurance of company's vehicles used by senior officials of the company for official work and for commuting between residence and factory eligible CENVAT Credit?

DCM Engineering Product vs. commissioner. of C. Ex. & S.T., Chandigarh – II (2014(33)S.T.R. 522 (Tri – Del.)



Facts:
The appellant, a manufacturer of Iron Castings had a factory in a remote area. They provided vehicles to their senior officials to commute between residence and factory. The appellant availed CENVAT Credit of service tax paid on insurance of such vehicles. Taking a view that there is no nexus between such insurance services and manufacturing activity, the department denied CENVAT Credit on insurance services.

Whether the exporter-manufacturer is entitled to CENVAT Credit in respect of cargo handling service under rule of Cenvat Credit Rules, 2004 (CCR) being input service used up to "place of removal."

Central Excise vs. Inductotherm India (P.) Ltd[2014] 43 taxmann .com 34 (Gujarat)



Facts:
The assessee, manufacturer - exporter claimed CENVAT credit in respect of cargo handling services. The department denied the credit on the ground that, in absence of express mention of such service in the definition Clause in Rule 2(1) of CCR, the same cannot be termed as "input service". Both the Commissioner (Appeals) and the Tribunal held in favour of the assessee. Before the High Court, Revenue contended that cargo handling

Friday, 27 June 2014

DON'T FORGET TO CLAIM: interest on Bank Savings exempt upto Rs. 10K

Interest from bank savings account is taxable, even though there is no tax deduction at source (TDS). The good news is that since 2012-13 under Section 80TTA interest up to Rs10,000 in one financial year is exempt from tax. It means that if you have an average balance of Rs2.5 lakh in your savings account during a financial year (on which most banks give interest @4% pa), the interest would be tax free. This average would be lower, if you had savings account with banks offering higher interest rates. Yes Bank offers 6% for balances up to Rs1 lakh and 7% for balances above Rs1 lakh. You can avoid the minimum balance requirement of Rs10,000 for Yes Bank Savings Advantage account by opening an FD of Rs50,000.

TAX PLANNING FOR MINORS



With effect from Assessment Year 1993-94, the income arising or accruing to minor child is clubbed with the income of his parent having higher income with the following exceptions -
(i)Income accruing or arising to the minor child on account of any manual work done by him, or Income accruing or arising from activity involving application of his skill, talent or specialised knowledge and experience. The child dancers, singers, dramatist, artistes performing for TV, Radio & Films, Computer operating children may be included in such categories. The wage earning or self employed children will also come in the purview of these categories.
(ii)With effect from Assessment Year 1995-96, income of a minor child who is suffering from a disability mentioned in Section 80U of the Income Tax Act, is also not required to be clubbed with the income of parents.

New ITR-1 (Sahaj) in Excel and ITR-5 with Java Utility released by IT for Asstt. Year 2014-15.

Now, it is a time to file Annual Income Tax Return for Asstt. Year 2014-15 by e-filing or paper return. If taxpayee may delay to file Income Tax Return, may face the consequences arising on behalf of them as per Income Tax Law binding for Asstt. Year 2014-15.

POSTAL BALLOT

Section 110 of the Companies Act, 2013 creates legal backing for postal ballot.
A company shall transact businesses notified by Central Government through postal ballot only not in general meeting.
A company may transact any business through postal ballot except –
(i) ordinary business in an annual general meeting; and
(ii) business in respect of which directors or auditors have a right to be heard at any meeting.
A resolution passed through postal ballot shall be deemed to have been passed at a general meeting.

Whether when assessee fails to declare salary income on which TDS was deducted, same is to be treated as 'undisclosed income' - YES: HC

THE issue before the Bench is - Whether non-disclosure of income by not filing return of income on which the TDS is deducted, can be treated as “undisclosed income” within the meaning thereof in Section 158B(b) under Chapter XIV-B. And the answer goes against the assessee.
Facts of the case
The assessee, an individual, is a salaried employee working as Works Manager with M/s. Khemani

Thursday, 26 June 2014

How to file income-tax returns online

Most of us are so busy in our daily activities that we hardly get time to take care of our finances. We also find it difficult to submit our income-tax returns before the due date. In order to meet the deadline of filing our income-tax return, most of us hire the services of a chartered accountant or tax consultant. However, no one knows your finances and income better than you — so why let anyone else file your tax returns?

Scrutiny of Poll Process



Section 109 of the Companies Act 2013 deals with provisions related to demand for Poll in a general meeting.
Where a poll is to be taken, the chairman of the meeting shall appoint necessary number of person to scrutinise the poll process and vote given on the poll and to report thereon. [Section 109(5)]
Rule 21 of the Companies (Management and Administration) Rules 2014 deals with “manner in which the Chairman of meeting shall get the poll process scrutinised and report thereon”.

Easy Chart To Compute Accrued Interest on NSC & KVP!


National Saving Certificate (VIII) is issued for 6 years. Premature withdrawl is not allowed.No TDS at the time of encashment.Can be purchased on Minor’s name , but an NRI is not eligible to purchase NSC.It is available in denomination of Rs100,Rs500,Rs 1000, Rs 5000 & Rs 10,000.

Whether principle of apportionment embedded in Sec 14A will apply when no cost was incurred for exempt income & primary object of investment was to acquire controlling stake in Group Concern and not to earn any income - NO: ITAT

THE issues before the Bench are - Whether principle of apportionment embedded in section 14A has any application when no expenditure has been incurred in relation to the exempt income and the primary object of investment was to acquire controlling stake in the group concern and not earning any income out of investment and Whether depreciation has to be allowed on written down value (WDV) after reducing the actual depreciation allowed in the earlier years. And the verdict favours the assessee.
Facts of the case

Concessional Excise duty rates for automobiles, consumer goods and capital goods extended till 31 December 2014

Notification No.06/2014 dated 25-06-2014


Seeks to amend notification No. 12/2012- Central Excise dated 17.03.2012 – 06/2014 – Dated 25-6-2014 – Central Excise – Tariff

Wednesday, 25 June 2014

Understanding Forex Trading Signals and How They Work

One thing that you need to be aware of when you are engaged in trading on the forex market is that there are two key components necessary from the very beginning --- a combination of a winning equity management strategy and a well planned forex trading system. The absence of these two factors will ultimately spell disaster for the investor or trader. Another key feature is that you need to have access to what are called "signals."

Refresh your Tax knowledge

Given below the link of 23 topics which will enable yourself to refresh your tax knowledge.

Enjoy reading and sharing the knowledge.

VOTING THROUGH ELECTRONIC MEANS

The Central Government got freehand under Section 108 of the Companies Act, 2013 which simply reads, “The Central Government may prescribe the class or classes of companies and manner in which a member may exercise his right to vote by the electronic means.”
The Rule 20 of the Companies (Management and Administration) Rules 2014 has all power to administer voting through electronic means.

e-Filing of Wealth Tax Return mandatory except Individual and HUF not liable for Tax Audit - Amendment Rules, 2014

Income Tax Department has amended Wealth Tax Rule with Return Form i.e. "Form-BB" for Wealth Tax Return vide notification Dated 23rd June, 2014, which is mandatory to file except Individual and HUF those who are not liable for Tax Audit. Income Tax Department has been made some major changes regarding e-filing of wealth tax return as under.

Commission paid to foreign agents - NO TDS



ITAT Chennai Bench recently held that assessee is not liable to deduct tax at source for making payment to its foreign agents for rendering services abroad, if the foreign agent does not have a permanent establishment in India and the service rendered is not in the nature of technical service.

Whether premium paid on insurance policy designed under Unit Linked Investment Plan can be claimed as business expenditure u/s 37 - NO: ITAT

THE issues before the bench are: Whether expenditure incurred on Term Insurance Plan under Keyman Insurance Cover is eligible for deduction u/s 37, even if the assessee firm proves that the said amount has been spent wholly and exclusively for the purposes of the business as per provisions of section 37; Whether in case the insurance companies otherwise invest the funds available with them in debt/stock etc, deduction of the amount invested can be claimed as revenue expenditure; Whether the nature of investment can be a deciding factor in determining the allowability of the premium paid; Whether when the policies are taken from Unit Linked Investment Plan it becomes investment plan, premium of which has been put into growth fund

Tuesday, 24 June 2014

Taxation on sale of Agricultural Land

·         As per section 45 of the Income tax act, 1961 (ACT) , transfer of any capital asset is subject to tax under the head capital gain.
   
·         Capital gain has been defined under section 2(14) of  ACT and same exclude the Agricultural land .  

Taxation Rule of NRI

Here are some exemptions and tax-saving tips that non-resident Indians can avail of

Juggling finances in one country is bad enough; having to do it in two can be baffling . When it comes to filing taxes, NRIs find themselves in this unenviable position as the Income tax rules for NRIs are different from those that are valid for residents. Here's a quick guide to NRI taxation.

Taxes applicable:

PROXIES

Section 105 of the Companies Act 2013 frames law regarding proxies. We have Rule 19 of the Companies (Management and Administration) Rules 2014 to supplement provisions relating to proxies.
Any member of a company entitled to attend and vote at a meeting of the company shall be entitled to appoint another person as a proxy to attend and vote at the meeting on his behalf. [Section 105(1)]
A member of a company registered under section 8 shall not be entitled to appoint any other person as his proxy unless such other person is also a member of such company. [Rule 19(1)]

Updated ITR-1 (Sugam), ITR-2, ITR-3, ITR-4 & ITR-4S (Sahaj) with Excel & Java Utility for Asstt. Year 2014-15.

Income Tax Department has updated an Annual Income Tax Return Forms i.e. ITR-1 (Sugam), ITR-2, ITR-3, ITR-4 and ITR-4S (Sahaj) with Java and Excel Utility for Asstt. Year 2014-15. Earlier ITR-1, ITR-2, ITR-3, ITR-4 and ITR-4S are also released in java based utility. Taxpayee can download any or both format of utilities of ITR-2 for the assessment year 2014-15.

Whether provisions of Sec 153C allow the AO to invoke it casually and need not record any satisfaction - NO: Bombay HC

THE issue before the Bench is - Whether the provisions of Sec 153C allow the AO to invoke it casually and need not record any satisfaction. And the answer goes against the Revenue.
Facts of the case
The assessee is a company. Before High Court, the Revenue's counsel had submitted that section 153C had been brought on the statute book so as to enable assessment of the income of any other person. It was submitted that this section opens with a nonobstante clause and enables

Recent case laws in respect of section 14A dis allowance.

One of the disputes before the tax authorities had been as to whether disallowance u/s 14A could be made in the absence of exempted income not forming part of the Total income u/s 10 of the Act. The special bench of the Tribunal, in the case of Cheminvest Ltd.-v-ITO 121 ITD 318, had held that expenditure incurred in acquiring the shares either by way of investment or stock in trade could be disallowed even if no dividend was received on such shares. This legal position is no more good law in view of certain decisions of high courts discussed hereafter:


S. 201/ 201(iA): The payer is not liable for TDS default if the Dept does not that the tax could not be recovered from the recipient

Allahabad Bank vs. ITO (ITAT Agra)

The assessee, a bank, was held liable u/s 201(1) and 201(1A) r.w.s. 194 A for failure to withholding TDS on interest paid by it to customers on deposits placed by them with the assessee. The assessee claimed that it could not be treated as an assessee-in-default as no steps had been taken to determine whether the recipients of the interest had paid tax thereon. HELD by the Tribunal allowing the appeal:

Whether, accumulated CENVAT Credit of one unit can be utilised for discharging duty liability of another unit?

CCE vs. Rajshree Sugars & Chemicals ltd. [2014] 43 taxmann.com 257 (Madras)



Facts:
The assessee, a manufacturer in sugar was running two units viz. the sugar unit and the distillery unit situated in the same premises adjacent to each other. The assessee had obtained separate registration certificates in respect of both the units, although both units are under one management. The by-products arising on the manufacture of sugar in the sugar unit, namely, molasses was again used by the assessee in the manufacture of Ethyl Alcohol in the distillery unit. The assessee cleared molasses on payment of duty and

Monday, 23 June 2014

Delhi Tribunal rules on existence of PE and on profit attribution to the PE (Nortel Networks)

We are pleased to release a tax alert which summarizes a recent ruling of the Delhi Income Tax Appellate Tribunal (Tribunal) in the case of Nortel Networks India International Inc. (Taxpayer) on whether the Taxpayer had a permanent establishment (PE) in India under the provisions of the India-US Double Taxation Avoidance Agreement (DTAA) on account of a contract with an Indian customer for supply, installation and commissioning of equipment, and the extent of profits attributable to the PE, if any.
The 

NOTICE OF THE MEETING

According to Section 101 of the Companies Act, 2013 a General meeting of a company may be called by giving not less than clear twenty – one days’ notice either in writing (i.e. in paper form) or through electronic mode.
If consent is given in writing or by electronic mode by not less than ninety – five percent of members entitled to vote at such meeting, a general meeting may be called after giving a notice of a shorter period, which is

Important announcement for Tax payers for updating contact details in e-Filing Portal.

Income-Tax Department uses the registered contact details (Mobile number & E-mail ID) for all communications related to e-Filing. It is mandatory that all tax payers must have a valid contact details registered in e-Filing portal.

Mandatory One Mobile Number or One Email ID for ITR e-filing Login Account

Income-Tax Department has issued a Press Release regarding contact details (Mobile number & E-mail ID) for Taxpayee on e-Filing Login Account. It is mandatory that all tax payers must have a valid contact details i.e. one mobile number or one email address registered in e-Filing portal. The Press Released is as under:

Press release
Dated 19.06.14

One mobile number or email ID can be used for a maximum of 4 user accounts as the Primary Contact- Mobile Number and Email ID in e-Filing. This is to ensure that family members (not exceeding 4 separate

Whether trading addition on account of low Gross Profit is justifiable where assessee is engaged in jobwork and GP rate depended on nature of jobwork assigned only by the Principal - NO: ITAT

 THE issues before the bench are - Whether trading addition on account of low Gross Profit is justifiable where the assessee is engaged in the job work and the GP rate depended on the nature of job work assigned only by the Principal and Whether addition on account of freight and octroi expenses is justified where the expenditure was claimed by the assessee on purchase of consumable and store material. And the answer favours the assessee.
Facts of the case

Proviso to s. 2(15) which denies exemption to a charitable institution carrying on commercial activities does not apply to institutions carrying out relief to the poor, education or medical relief but applies only to those carrying out “advancement of any other object of general public utility”

DIT (E) vs. Ahmedabad Management Association (Gujarat High Court)

(iii) On the issue of the Proviso to s. 2(15), the same has been explained in Circular No.11/2008 dated 19/12/2008. From the said Circular it appears that the newly inserted proviso to s. 2(15) of the Act will apply to entities whose purpose is advancement of any other object of general public utility i.e. fourth limb of definition of ‘charitable purpose’ contained in s. 2(15) and hence such entities will not be eligible for exemption u/s 11 or u/s 10(23C) of the Act if they carry on commercial activities. The Proviso will not apply in respect of the first three limbs of s. 2(15) i.e. relief to the poor; education or medical relief. Thus, where the purpose of a trust or institution is relief of the poor; education or medical relief, it will constitute ‘charitable purpose’ even if it incidentally involves the carrying on of the commercial activities.

S. 50C: If the stamp duty valuation is higher than the consideration received, the AO must refer the valuation to the DVO even if there is no request by the assessee

Sunil Kumar Agarwal vs. CIT (Calcutta High Court)

No inference can be made that the assessee has accepted the price fixed by the District Sub Registrar for stamp duty purposes as the fair market value of the property because the assessee has nothing to do in the matter. Stamp duty is payable by the purchaser & it is for the purchaser to either accept it or dispute it. The assessee could not, on the basis of the price fixed by the Sub-Registrar, have claimed anything more than the agreed consideration of a sum of Rs.10 lakhs which, according to the assessee, was the highest prevailing

TYPES OF FINANCIAL ANALYSIS


Financial statements are analysed by different parties for different purposed. The analysis is done from different angles. Accordingly, we can classify financial statement analysis into different categories as follows:
1.       On the basis of concerned parties
According to different parties concerned with the operation of the company, the financial statement analysis can be of two types:
·         External Analysis 
·          Internal Analysis

Saturday, 21 June 2014

How to Make Best Use of Section 80C


Most of the Income Tax payee try to save tax by saving under Section 80C of the Income Tax Act.  However, it is important to know the Section in toto so that one can make best use of the options available for exemption under income tax Act.   One important point to note here is that one can not only save tax by undertaking the specified investments, but some expenditure which you normally incur can also give you the tax exemptions.  Here are some tips for you : -

EXTRAORDINARY GENERAL MEETING BY REQUISTIONISTS

Section 100 of the Companies Act, 2013 lay down law related to Extra – ordinary general meeting called on requisition of members. Rule 17 of the Companies (Management and Administration) Rules 2014 supplements provisions of Section 100 of the Act.
The Board shall, at the requisition made by,—
(a) in the case of a company having a share capital, such number of members who hold, on the date of the receipt of the requisition, not less than one-tenth of such of the paid-up share capital of the company as on that date carries the right of voting;
(b) in the case of a company not having a share capital, such number of members who have, on the date of

Compete solutions to Late Payment and Late Deduction of TDS/TCS.

What should I do in case of Late Payment / Late Deduction intimation received?
The default amount will have to be deposited through challan no 281 by ticking minor head ’400′. Download conso file from TRACES for filing correction and update the challan detail. While filing correction, fill up interest amount in column no. 403 in Form 26Q, column no. 304 in Form 24Q, column no. 705 in Form

Whether CBEC Circulars/Instructions which are administrative in nature are binding on the department?



Comm. Of C. Ex & Cust. Ahmedabad – III vs. Fine Care Biosystems (2014 (33) STR 621 (Guj)

Facts:
The department preferred an appeal against an Order of CESTAT. The issue involved was the demand of refund of Rs. 89,476/- sanctioned by the Tribunal under Rule 5 of the CENVAT Credit Rules, 2004.
The department filed this appeal challenging the order passed by the CESTAT and on 25-02-2010 by way of an order the High Court formulated questions on the issue. The

Whether, reimbursement of expenses paid by Principal to C&F Agent on actual basis are includible in the value of clearing and forwarding service?



CST vs. Sangamitra Service Agency [2014] 43 taxmann.com 363 (Madras)

Facts:
The issue before the High Court was, whether various charges towards freight, labour, electricity, telephone etc, which were reimbursed by the principal to the C & F Agent on the basis of actual, were required to be added to the value of the taxable service in relation to the clearing and forwarding services provided by a C&F agent of the Principal.

Friday, 20 June 2014

What is Gold ETF


gold taxGold ETF means Gold Exchange Traded Fund . In simple terms , it is a mutual fund for gold , like the mutual fund  which invests in shares on your behalf.  This mutual fund- i.e Gold ETF – buy gold and safe keep it on your behalf.When you want to sell , you can sell it on the recognised stock exchange . If you want to get the gold in physical form, you can also get it .
Which are Indian mutual fund managing Gold ETF ?
In India , on the date , there are ten GOLD ETF listed on  National Stock Exchange  which is the only stock exchange where Gold ETF are traded  right now. All the usual big players of mutual fund industry are also managing Gold ETF. Here is the list of listed Gold ETF as on 07/01/2011

Reasons to reject the correction in challan detail by TDS-CPC

Rejection reasons pertaining to challan details are as follows:

Challan detail record on which correction has been filed does not exist in regular / previous statement

  • In a correction statement, verification keys from challan data should match with the corresponding fields in regular statement
  • Verification keys for Non Nil Statement – Last transfer voucher number, Last Bank-Branch Code / Form 24G Receipt Number, Last date of transfer voucher / bank Challan, Last deposit amount as per challan
  • Verification keys for Nil challan – Last date of transfer voucher number / bank challan, last total deposit amount as per challan

PRESERVATION, INSPECTION AND COPY OF REGISTERS AND RETURNS

Section 94 of the Companies Act, 2013 prescribes the registers and their indices and the copies of all the returns shall be open for inspection by any member, debenture-holder, other security holder or beneficial owner, during business hours without payment of any fees and by any other person on payment of fees.
Rule 14 of the Companies (Management and Administration) Rules 2014 deals in detail. The registers and indices maintained pursuant to section 88 and copies of returns prepared pursuant to section 92, shall be open for inspection during business hours, at reasonable time on every working day as the board may decide, by any member, debenture holder, other security holder or beneficial owner without payment of fee. The reasonable time is a period of not less than two hours on every working day shall be considered by the company.
The inspection may also be made by any other person on payment of fee as may be specified in the articles of association of the company but not exceeding fifty rupees for each inspection.

Whether when assessee which works for cause of trade & industry was granted registration u/s 12A, it loses eligibility for Sec 80G benefits merely because a copy of registration is not available - NO: ITAT

THE issue before the Bench is - Whether when the assessee-association involved in taking up the cause of trade and industry has been granted registration u/s 12A, it loses eligibility for Sec 80G benefits merely because a copy of registration is not available with it and even Revenue is not able to trace its file. And the answer favours the Association.
Facts of the case
The assessee is an association undertaking various activities, seminars, medical relief, awareness programmes and also activities of general public utility without any profit motive. It had applied for registration u/s 12A and the same was claimed by the assessee to had been granted to the

Thursday, 19 June 2014

How to File Income Tax Return for AY 2014-15 ( FY 2013-14)


The below process is only for the taxpayer who is having salary and bank Interest Income. In case Tax payer is having any other source of income, the below –mentioned process is not applicable to him. Further, please note that all person having receipt of taxable income of more than Rs. 2 Lakhs are now mandatory require to file their tax return online.

SAVE TAX ON LOSS FROM SHARE

By reading the title of the post you will be thinking that there is no tax on long term capital gain on shares then what is the relation between tax saving and long term capital loss?
But after reading the next few lines you will definitely understand the trick(tax planning tip).The trick is legitimate method to save the tax.

RETURN OF CHANGES IN SHAREHOLDINGS

According to Section 93 of the Companies Act, 2013, every listed company shall file a return with the Registrar with respect to change in the number of shares held by promoters and top ten shareholders of such company, within fifteen days of the change.
According to Rule 13 of the Companies (Management and Administration) Rules 2014, Every listed company shall file with the Registrar, a return in Form MGT – 10 along with the fee with respect to changes

Whether when Search leads to papers relating to sale & purchase of land outside books and same is admitted by MD in his statement, any addition with respect to unexplained investments is legally sustainable - YES: ITAT

THE issue before the Bench is - Whether when the Search conducted by the Revenue leads to papers relating to sale and purchase of land outside the books and the same is admitted by the Managing Director in his statement, any addition with respect to unexplained investments is legally sustainable. And the verdict goes against the assessee.
Facts of the case
A) The assessee-company is engaged in real estate and construction business. During the year, company purchased land and sold plots after undertaking development works. There were search

Circumstances leading to formation of PE and estimation of profit attributable therto under Rule 10 explained. Even foreign assessees are liable for interest u/s 234B

Nortel Networks India International Inc vs. DDIT (ITAT Delhi)

Nortel Networks India Pvt. Ltd, an Indian company, entered into a contract with Reliance Infocom for supply, installation, testing, commissioning of hardware equipment. Immediately thereafter, the Indian company assigned the supply part of the contract to the assessee, a USA company, without any consideration. The Indian company retained the other obligations of the

S. 153A: Addition in a search assessment for a AY which is not pending can be made only if incriminating material is found during search

Sanjay Aggarwal vs. DCIT (ITAT Delhi)

The Tribunal had to consider whether in a case where a search is conducted u/s 132 but no incriminating evidence is found, the AO could make an addition u/s 153A of the Act. The assessee relied on All Cargo Global Logistics 137 ITD 287 (SB) (Mum) & Pratibha Industries 141 ITD 151 (Mum) in support of

Wednesday, 18 June 2014

All about Form 26AS, Pan Ledger & Tax Credit Statement - FAQs

What is Form 26AS?
It is a form issued under Rule 31AB, wherein the following information in relation to a PAN is published:
  • TDS – Part A & A1 of Form 26AS
  • TCS – Part B of Form 26AS
  • Details of tax paid other than TDS / TCS – Part C of Form 26AS
  • Details of Refund – Part D of Form 26AS
  • Details of AIR transactions – Part E of Form 26AS

New ITR-1 (Sahaj) Free Download (Excel Base) for Asstt. Year 2014-15

Now a time to submit Annual Income Tax Return for Asstt. Year 2014-15 without delay. If ITR submission delay due to any other caused Assessee may face the consequies arising on behalf of it as per Income Tax Law binding for Asstt. Year 2014-15. Due to this "Excelhub" prepared "Excel Base Utility for Indiviuals/Salaried Employee, those who submit Income Tax Return in Form ITR-1 for Asstt. Year 2014-15 in easy way. A new ITR-1 (Sahaj) Excel Base Software as per amended rules and circulars issued by Income Tax Department on 17.04.13. ITR-1 (Sahaj) is Developed by www.excelhub.blogspot.com.

CLOSURE OF REGISTER OF MEMBERS ETC

A company may close its register of members or debenture – holders and other security holders according to Section 91 of the Companies Act, 2013. Rule 10 of the Companies (Management and Administration) Rules 2014 prescribes related procedures.
A company may close the register of members or the register of debenture – holders or the register of other security holders for any period or periods not exceeding in the aggregate forty-five days in each

WHAT IS FORENSIC ACCOUNTING?

Simply put, forensic accounting is accounting that is suitable for legal review, offering the highest level of assurance, and including the now generally accepted connotation of having been arrived at in a scientific fashion. That is, forensic accounting is sufficiently thorough and complete so that an accountant, in his/her considered independent professional judgement, can deliver a finding as to accounts, inventories, or the presentation thereof that is of such quality that it would be sustainable in some adversarial legal proceeding, or within some judicial or administrative review. Findings are based upon the scientific detection and interpretation of the evidences of phenomena introduced into the books and records of an accounting system (expansively defined) and the effects of such phenomena upon the accounts, inventories, or the presentation thereof. (Alternatively, if there is no impact on an accounting system, there is no accounting

THE issues before the Bench are - Whether production of steam can be construed as generation of power and Sec 80IA benefits cannot be denied even if such steam is utilised for internal manufacturing process and Whether market value of the goods transferred in cases, where provisions of section 80-IA(8) are applicable, has to be determined having regard to the price charged in uncontrolled transaction. And the verdict goes in favour of the assessee.

THE issues before the Bench are - Whether production of steam can be construed as generation of power and Sec 80IA benefits cannot be denied even if such steam is utilised for internal manufacturing process and Whether market value of the goods transferred in cases, where provisions of section 80-IA(8) are applicable, has to be determined having regard to the price charged in uncontrolled transaction. And the verdict goes in favour of the assessee.
Facts of the case

S. 40(a)(ia): If an amount is made taxable by a retrospective amendment, the payer cannot be held liable to deduct TDS on a payment made earlier and to suffer disallowance u/s 40(a)(ia)

Kerala Vision Ltd vs. ACIT (ITAT Cochin)
In view of the retrospective insertion of Explanation 6 by the Finance Act, 2012, the payment made by the assessee as “Pay Channel Charges” constitutes “royalty” as defined in clause (i) of Explanation 2 to s. 9(1) of the Act. However, as the decision of the assessee not to deduct TDS was supported by Asia Sat, the assessee cannot be held to be liable to deduct tax at source by relying on the subsequent amendments made in the Act with retrospective effect (Channel Guide 139 ITD 49 (Mum), Sonata Information Technology & Infotech Enterprises followed)

S. 263: The CIT can revise an assessment only if he can show unmistakably that the order of the AO is unsustainable. Fact that the AO has passed a non-speaking order does not mean that he has not applied his mind

CIT vs. J. L. Morrison (India) Ltd (Calcutta High Court)
 
(i) If the AO has taken a possible view, it cannot be said that the view taken by him is erroneous nor the order of the AO in that case can be set aside in revision. It has to be shown unmistakably that the order of the AO is unsustainable. Anything short of that would not clothe the CIT with jurisdiction to exercise power u/s 263 of the Act

Tuesday, 17 June 2014

Green Shoe Option


This is a post listing price stabilizing mechanism, by which the company intends to ensure that the shares price on the Stock exchanges does not fall below the issue price.
The term “Green shoe option” derived its name from the company in US which excercised this mechanism for the first time.
The Securities and Exchange Board of India (SEBI) guidelines permit exercise of the greenshoe option by a company making a public issue. A pre-issue contract is required to be entered into for this purpose with an existing shareholder — often

Notification by MCA in respect of obtaining PAN by Non Resident Director.

To read the circular click the link below.


http://www.mca.gov.in/Ministry/pdf/Circular_16_2014.pdf

Recent Direct Tax case laws update

Subsequent commercial-use cannot disentitle Sec 54F exemption if building constructed for residential-purpose: Relevant factor to judge is whether construction is made for residential house or commercial purpose, merely because building used as a school cannot change nature and character of building from residential to commercial; Also holds that law is settled that ‘a residential house’ does not mean a single residential house; Sec 54F exemption entitled even where assessee constructs or receives a number of flats adjacent to each other or in different floor of same building; Relies on jurisdictional HC ruling in Syed Ali Adil. [N. Revati v. ITO (ITA 67/Hyd/2013) (Hyd ITAT) dated 2 April 2014]

Whether when assessee, a lyricist by profession, has both professional and residential setup in same apartment, sums spent on installation of LIFT can be claimed as revenue expenditure - Only Partly: ITAT

THE issues before the Bench are - Whether a lift installed by an assessee in the premises of the society apartment can be claimed as revenue expenditure, considering the person has both professional and residential set up in the same apartment; Whether the entire amount of such expenditure can be allowed as business expenditure when the advantage and facility of the new lift is not restricted exclusively for the professional activity of the assessee, but also enjoyed by assessee as well as family members of the assessee – Whether it is a relevant criterion for the purpose of considering the allowability of expenditure that the lift is also being used by other

ITAT issues strictures against AO & CIT & fines them for filing a frivolous appeal

ITO vs. Growel Energy Co. Ltd (ITAT Mumbai)
 
The department filed an appeal before the Tribunal raising several grounds relating to s. 69C etc. The CIT(A) had allowed relief to the assessee on the ground that as the expenses were duly recorded in the books and there was no dispute as to their genuineness, s. 69C had no application. HELD by the Tribunal dismissing the appeal:

Monday, 16 June 2014

Non Compete fees – Taxability issues



 
The question whether a particular receipt has been a revenue receipt or a capital receipt has constantly been inviting the attention of tax payers, the law makers, the tax advisors and the Courts. The controversy around this concept has been there in the taxing laws, occupying a long list of litigation judgment by various Courts. Before going ahead for discussion on this issue one has to look and understand the exact meaning of a capital receipt and a revenue receipt.
 

Updated Income Tax Return Forms ITR-1, ITR-2, ITR-3 and ITR-4S for Asstt. Year 2014-15

Latest updated Income Tax Return Form ITR-1, ITR-2, ITR-3 and ITR-4S has released by CBDT.

An assessee required to furnish a report of audit specified under section 10AA, section 44DA, section 50B or section 115VW of the Act, shall furnish the said report of audit and the return of Income electronically for AY 2014-15 and onwards [Refer Notification No: 28/2014 dated 30/05/2014].

Whether extending financial assistance or scholarship, to students for educational purpose would fall within connotation of 'education' - YES: ITAT

THE issues before the Bench are - Whether without bringing something positive on record to distinguish the facts of earlier year and current year, it can be argued that the assessee has changed its nature of charitable activities and Whether extending financial assistance or scholarship, to students for their educational purpose would fall within the connotation of "education". And the verdict goes in favour of the assessee.
Facts of the case