India Taxes- Due Date Alert for the month April 2015

 

 

No	Due Date	Related to	Compliance to be made
1	30.4.2015	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 March 2015. ·        Deposit TDS from Salaries  deducted during the month of March 2015 •   Deposit TCS for collections made under section 206C including sale of scrap during the month of March 2015, if any •    Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of March 2015, if any
2	20.4.2015	VAT	Payment of VAT & filing of monthly return for the month of March 2015
3	20.4.2015	STPI	Filing of Softex Form for the month ended March 2015
4	25.04.2015	Service Tax	Filing of Service tax from October  to March  2015

Bonus Stripping – Sec 94(8)

It provides that the loss, if any arising to a person on account of purchase or sale of original units shall be ignored for the purpose of determining the taxable income of the person, if all the following conditions are satisfied –
i.            The person buys or acquires any units within a period of 3 months prior to the record date.
ii.            He is allotted additional units without any payment on the basis of holding of such units on such date.

FAQ - FORM 26AS

 

1.What is Form 26AS?

Form 26AS is a consolidated tax statement issued under Rule 31 AB of Income Tax Rules to PAN holders. This statement, with respect to a financial year, will include details of:
a) tax deducted at source (TDS);
b) tax collected at source (TCS); and
c) advance tax/self assessment tax/regular assessment tax etc., deposited in the bank by the taxpayers (PAN holders).
Form 26AS will be prepared only with respect to Financial Year 05-06 onwards.
d) Paid refund received during the financial year.

Circular: Deposits under earlier Act

“Ease of doing business” certainly is a joke invoked once again by the Government on eve of closing of financial year 2014 – 15. Even a fast track professional cannot study implication and advice companies about. This became bigger prank when it is meant to give relief to private companies with lesser resources. As one senior company secretary comments, “This clarification is being given on 30th March, 2015 when many companies have either repaid or have filed petitions with the CLB for extension of time to repay the deposits”. Another professional summarise it as “too little, too late”.

Before reading this well intended circulars, circumstance show this now may help intentional defaulters as law abiding corporate already following some process with almost no scope of reversibility.

Four Imp Judgements

Plus Paper Food Pac Ltd vs. ITO (Bombay High Court)

S. 147/ 148: If the recorded reasons show contradiction and inconsistency it means necessary satisfaction in terms of the statutory provision has not been recorded at all. The Court cannot be called upon to indulge in guess work or speculate as to which reason has enabled the AO to act in terms of s. 147

Whether if assessee-club sells complimentary liquor for a price, such activity is to be construed as commercial in nature - YES: ITAT

THE issue before the Bench is - Whether the value of complimentary liquors has to be assessed as income of the assessee, if the assessee has failed to furnish the details of persons who consumed the complimentary liquor and such liquor has been sold at a price. YES is the answer.

Facts of the case

The assessee is a mutual association. During assessment, the AO observed that the assessee had claimed certain receipts as exempt from taxation under mutuality principles. The AO noticed

TAXBYMANISH NOW ON NATIONAL NEWS WEBSITE.

PROVISONS RELATING TO AUDITOR

 

PROVISIONS ON AUDITORS

UNDER COMPANIES ACT, 2013

IA. Duties and Liabilities of an Auditor:

An auditor is ‘watch dog’ not a ‘blood hound’. Like a dog should bark and chase when something found wrong. Same like that duty of auditor is to verification and detection, but he must go deep if suspicion arises.

E-Payment Time Extended

Sub: E-Payment Time Extended

Service Tax payment made after 8:00 p.m. is considered as payment made on the next date. However, CBEC has confirmed through circular that payment made upto midnight of 31st March, 2015 will be consider as payment made within due date.

This is for your information.                                                

Construction Services - Flats allotted to landowner are to be valued based on value of similar flats allotted to outsiders

Southern Properties & Promoters v. Commissioner of Central Excise,(Service Tax), Coimbatore*([2015] 49 GST 695 (Chennai – CESTAT)

 

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FACT:

 Assessee entered into a joint venture agreement with a land owner for construction of 72 flats, out of which : (a) 48 flats belonged to assessee and  service tax was paid thereon; (b) 24 flats belonged to landowner but no service tax was paid thereon- Department demanded service tax on 24 flats based on normal price charged for similar 48 flats, applying rule 3(a) – Assessee argued that  value of flat was equal to consideration by way of land received from landowner under section 67(1)(ii).

HELD:

Prima facie, assessee’s contention was not tenable – since consideration received for service is not wholly or partly consisting of money ; therefore, rule 3 would be invoked – As per rule 3(a), value would be equal to consideration charged by service provider to provide similar service to any other person – Since, in this case, tax was assessed on basis of value  of the similar flats; therefore, tax was determined properly after allowing applicable abatement s – Hence, pre- deposit was ordered.

MCA CIRCULAR NO. 5/ 2015 DATED 30.03.2015

One of the major issues in Companies Act 2013 viz Deposits received from Shareholders by Private Companies, for which lots of representations made by ICAI and others finally gets a part relief i.e. Deposits accepted till 31-3-2014 will be outside the ambit. Hope like this many more irritants in the Act for which Representations have been made will be addressed.

 

No change in Service Tax Rate from 1st April 2015

Sub: Service Tax Rate 12.36%

The proposed 14% Service Tax rate will be implemented from a date to be notified after enactment of the Finance Bill, 2015. The exact date of which will be known after the Finance Bill gets assent of the Hon’ble President of India.

High Court has held that mandatory pre-deposit of 7.5% not required for hearing appeal before Tribunal, if the dispute has arisen prior to August 2014

We are pleased to release a Tax Alert on the recent decision of the Kerala High Court in M/s Muthoot Finance Limited v. (1) Union of India; (2) Commissioner of Central Excise; TS-98-HC-2015(KER)-ST.

Service cannot form a part of 'sale price' u/s 2(25) of the Maharashtra Value Added Tax Act, 2002

We are pleased to release a Tax Alert on the decision of Maharashtra Sales Tax Tribunal in the case of M/s Sujata Printers vs State of Maharashtra and M/s. B.L. Kashyap and Sons Ltd v. State of Maharashtra [2015-VIL-06-MSTT].

Whether insertion of Explanation to Sec 80-IB(9) vide Finance Act, 2009 with retro effect explaining the meaning of term 'undertaking' is unconstitutional and ultra vires to Article 14 of Constitution - YES: HC

THE issue before the Bench is - Whether the insertion of Explanation to Section 80-IB(9) of the Income Tax Act, 1961 by Finance (No.2) Act, 2009 with retrospective effect from 1.4.2000 explaining the meaning of the term "undertaking" is unconstitutional and ultra vires to Article 14 of the Constitution of India. YES is the answer.

Facts of the case

Service tax return for october to march 15 notified.

Service Tax Return (ST-3) for October 2014 to March 2015 period will be made available from 01.04.2015 for e-filing by the assesses in both offline and online version. The last date for filing the returns for the said period is 25th April 2015. The assesses can file return online or use the offline utility by downloading the latest version from http://acesdownload.nic.in/ or from 'DOWNLOADS' Section of ACES website. For details on how to file the returns in ACES or any further information/assistance, you may visit www.aces.gov.in or contact your jurisdictional Service Tax Officer. Please file your returns in ACES well in advance to avoid rush and inconvenience at the last moment.

Sections applicable to Private Companies under new company act.

As 99 sections of Companies Act, 2013 already notified and more to follow in the near future, it’s time for private companies in India to get started with the understanding of the Act and the possible implications, it can have on the functioning of their Companies, more so when we know that the new Act is rigid on private companies. The new Act holds a lot for such companies, in terms of difficulty in transacting related party

Indian E – voting Rules 2015

Indian E – voting Rules were under criticism from various quarters of corporate world since. Their application has been postponed some point of time. Now, the Rule 20 of the Companies (Management and Administration) Rules 2014 has been substituted by the Companies (Management and administration) amendment Rules, 2015. We have discussed, original Rules related voting through electronic Means .

These rules will come into force from the date of publication of these rules in official gazette i.e.

Highlights of Tamil Nadu Budget 2015-16.

In order to boost the manufacturing sector bogged down by negative sentiments, the State Government has come forward with some relief in electricity tax, and reversal on Input Tax credit when stocks are moved out of State in pursuance of stock transfer, interstate sales etc., in the budget presented on 25.03.2015 in the TN State Assembly. There are already cases pending before the

SC over-rides decision of AP HC, holds transfer of "auction purchased goods " by branch to HO in another State not to be an inter-state trade

 


 

This Tax Alert summarizes the decision of the Supreme Court in the case of Commissioner of Commercial Taxes, Hyderabad v. Desai Beedi Company.

Service cannot form a part of 'sale price' u/s 2(25) of the Maharashtra Value Added Tax Act, 2002

 

This Tax Alert summarizes the decision of the Maharashtra Sales Tax Tribunal in the case of M/s Sujata Printers vs State of Maharashtra and M/s. B.L. Kashyap and Sons Ltd v. State of Maharashtra. 

 

Employing expatriate employees of group concerns to work in India and paying their social security benefits to the companies abroad is not liable to tax under Manpower Recruitment/Supply Service.

CCE vs Computer Science Corporation India (p) Ltd. (2014) 52 taxmann.com 256(Allahabad)

 

FACTS:

The assessee, a part of group of companies situated in US,UK and Singapore etc. hired certain expatriate employees overseas. Some employees were transferred from group companies to the assessee in India. A letter of employment was

Latest e-TDS/TCS RPU Utility from Fin. Year 2007-2008

Finally NSDL has provde JAVA base Utility Ver. 1.0 as CBDT Income Tax Return Utility to TDS Deductors for Preparing TDS/TCS Quarterly Statement from Financial Year 2007-2008 and on-wards.  This new latest e-TDS/TCS Return Preparation Utility is fully based on JAVA Plate-form (RPU Ver. 1.0). Apart from this new utility, we already working with RPU utility ver. 4.5 and 4.2 for preparation of e-TDS/TCS Return.  This new RPU JAVA Base Utility is very simple with following Key features :

Whether Sec 50C will have any application when WDV is computed in terms of Sec 43(6) - NO: ITAT

The assessee concern is a cotton merchant, whose business is seasonal in nature. It had incurred certain direct nature expenditures, which were disallowed u/s 14A r/w rule 8D(2)(i), by the AO. The expenses incurred also includes interest on borrowings, in relation to income/s not forming part of the total income. AO found no purchases of yarn for the months of July to October, 2008, while that for the months of June and November, 2008 were also, at a little over

Income Tax Department - Defaulters - Name and Shame

THE Income tax department yesterday published a list of 18 names of persons and companies who are tax defaulters of more than Rs. 10 crores. The Department wants these defaulters to pay the taxes immediately. As per the list, all the defaulters are either not traceable or do not have assets. The very first name in the list is of a company, which SEBI found not traceable in 2005 - that too after investigation for five years. And this missing company owes Rs. 75 crores. Maybe the Government hopes that the company will see this information in the Department's website hidden in an obscure corner and will feel ashamed and rush to the nearest bank to pay off this Rs. 75 Crores. There is also a dead man in the list of the Department. Of course they hope to collect the tax due of Rs. 38 crores from his son.

 

List of Defaulters

Scope of Exemption to G T A Service-Rs.750/- Per consignee and Rs.1500/-per consignment Explained

(mad)-cce vs. Suibramania Siva co op sugar Mills Ltd. (2014)52 taxmann.com 339

 

FACTS:

The assessee availed the services of goods transport agency in respect of transport of sugarcane into the factory and paid service tax on freight Inward that exceeded Rs 1500/- but did not pay service tax on the amount of freight that

“Maintenance and Repairs Contract”- Agreement & invoice providing bifurcation of material portion and service portion. –service tax applicable only on service portion

CCE vs Goverdhan Transformer Udyog (p) ltd. (2014) 52 Taxmann. Com 377 (Allahabad)

.

FACTS:

The assessee   provided management, maintenance and repairs service for the repairs service for the repair of old and damaged transformers. Whether transformer oil, HV/LV oil and spare parts which are goods incorporated into the transformers belonging to the customer should be considered for the purpose

Acche Din! NAMO Cracks Whip On Income-Tax Dept For Harassing Taxpayers

 

Prime Minister Narendra Modi a.k.a NAMO has come to the rescue of beleaguered taxpayers. According to a terse note dated 26th March 2015 addressed by Hon’ble Ms. Anita Kapur, Chairperson of the CBDT, to the Income-tax department, she and the Revenue Secretary had a conference with NAMO regarding the status of public grievances against the department. At the

CBDT circular clarifies overseas dividend not covered by indirect transfer provisions of the ITL

The Central Board of Direct taxes (CBDT), the apex administrative body for taxation in India, recently issued Circular 4 of 2015 (dated 26 March 2015), clarifying that declaration of dividend outside India by a foreign company would not be taxable in India under the indirect transfer provisions of the Indian Tax Laws (ITL) since such declaration and payment of dividend does not have an effect of transfer of any underlying asset located in India.

We are pleased to release an alert which highlights the above CBDT Circular.

Central Action Plan for the First Quarter TDS Statement for the Asstt. Year 2016-17.

Recently CBDT has issued a letter to all CCITs about Action Plan for 1st Quarter i.e. April, 2015 to June, 2015 of the Financial Year 2015-16.  The CBDT exhibit the Interim Action Plan for the First Quarter of Financial Year 2015-16.  In this action Plan key result for Assessment Units (including Central Charges, Int'I Taxation, TDS and Exemptions is takes place.  The CBDT further states about

Whether when a project fulfils criteria for being approved as housing project, in that case, deduction u/s 80IB(10) cannot be denied, merely on basis that assessee had obtained separate plan permits for various blocks - YES: HC

THE issue before the Bench is - Whether when a project fulfils criteria for being approved as housing project, in that case, deduction u/s 80IB(10) cannot be denied, merely on basis that assessee had obtained separate plan permits for various housing blocks. And the verdict goes against the Revenue.

India’s Delhi High Court rules on transfer pricing aspects relating to development & enhancement of marketing intangibles

India’s Delhi High Court rules on transfer pricing aspects relating to development & enhancement of marketing intangibles

 

mportant Judgement Of Supreme Court On 'Matching Concept' And Deferred Revenue Expenditure

Taparia Tools Ltd vs. JCIT (Supreme Court)

S. 36(1)(iii)/ 37(1): Normally revenue expenditure incurred in a particular year has to be allowed in that year and if the assessee claims that expenditure in that year, the Department cannot deny the same. Fact that assessee has deferred the expenditure in the books of account is irrelevant. However, if the assessee himself wants to spread the expenditure over a period of ensuing years, it can be allowed only if the principle of 'Matching Concept' is satisfied

Important Judgement Of Supreme Court On Retrospective Amendment To S. 143(1A)

CIT vs. Sati Oil Udyog Ltd (Supreme Court)

S. 143(1A): As the object of s. 143 (1A) is to prevent tax evasion, it can apply only to tax evaders and not to honest assessees. The burden of proving that the assessee stated a lesser amount in the return in an attempt to evade tax is on the revenue

The object of Section 143 (1A) is the prevention of tax evasion. Read literally, both honest asessees and tax evaders are caught within its net. We feel that since the provision has the deterrent effect of preventing tax evasion, it should be made to apply only to tax evaders. Section 143 (1A) can only be invoked where it is found on facts that the lesser amount stated in the return filed by the assessee is a result of an attempt to evade tax lawfully payable by the assessee. The burden of proving that the assessee has so attempted to evade tax is on the revenue

Mumbai Tribunal rules on legality and taxability of certain gift transactions by corporates (KDA Enterprises)

We are pleased to release a Tax Alert which summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (Tribunal), in the case of KDA Enterprises Pvt. Ltd. (Taxpayer), on the issue of possibility of an Indian company making a transaction of a gift and the tax consequences in the hands of the recipient Taxpayer. In this case, the Taxpayer received, as gift from four companies (Donors), their entitlement to receive dividends

Delhi Tribunal Larger Bench decision on taxability of service element in works contract prior to 1.6.2007

We are pleased to release a Tax Alert on the decision of the five member Larger Bench of the Delhi Tribunal [2015-VIL-147-CESTAT-DEL-ST-LB], regarding the taxability of service element in works contract prior to 1 June 2007.

Larger Bench of the High Court has held that mens rea is not relevant for imposition of penalty for failure to comply with statutory civil obligation

We are pleased to release a Tax Alert on the Larger Bench decision of the Rajasthan High Court; [TS-87-2015-(RAJ)-VAT]. The issue in question was regarding relevance of mens rea for purpose of determining liability for penalty in terms of section  78(5) of Rajasthan Sales Tax Act, 1994 (RST Act).

Supreme Court rules on year of deductibility of debenture interest paid upfront

This Tax Alert summarizes a recent ruling of the Supreme Court (SC), in the case of Taparia Tools Ltd. (Taxpayer), wherein the issue was whether a taxpayer can be permitted full deduction under the provisions of the Indian Tax Laws (ITL) for upfront payment of debenture interest, though such payment has been amortised over the tenure of the debenture in the books of account. The SC, based on the facts, held that since the Taxpayer had claimed deduction for the full amount of upfront interest payment, the same should be allowed in the year of payment and should not be spread over the term of the debentures. The SC reiterated that there is no concept of deferred revenue expenditure under the ITL. Furthermore, the SC also ruled that the treatment given in the books of account is not an estoppel against the statute to claim deduction.

Five Important Judgements On Core And Controversial Issues

ACIT (Agr. IT) vs. Netley ‘B’ Estate (Supreme Court)

While an amendment to overrule a judgement is not valid, it is permissible to retrospectively alter the character of the levy so as to save it from illegality

In exercising legislative power, the legislature by mere declaration, without anything more, cannot directly overrule, revise or override a judicial decision. It can render judicial decision ineffective by enacting valid law on the topic within its legislative field fundamentally altering or changing its character retrospectively

S. 263 :Commissioner-Revision of orders prejudicial to revenue –Non mentioning in the assessment order cannot be held to be erroneous

. [S.43A, 80IA, 115JB, 143(3)]

The assessee was a company engaged in generation of power.After verifying the books of account and

information submitted by the assessee, the AO completed the assessment under section 143(3) after

allowing deduction under section 80-IA while accepting the book profit under section 115JB.

AO in course of scrutiny proceeding conducted detailed enquiry assessee also submitted its

explanation explaining why it should not be treated as income. Since in view of decision of Supreme

S.254(1): Appellate Tribunal-Stay- Order of Tribunal granting stay of 50 per cent of amount demanded did not require any interference

.[S. 5, 6, 9(1)( vi), 90,201(1), 201(1A)]

Assessee company was engaged in business of providing telecom services to its subscribers in India.

It entered into agreements with non-resident telecom operators (NTOs) for providing bandwidth and

interconnect capacity outside India. AO opined that payments made in consideration of said services

Book on assessment procedure

Dear Patron,

The book on assessment procedure launched today. The cost of the book is Rs. 500/-. Please place your order at taxbymanish@yahoo.com.  The contents of the book is given below.

SN	Contents	Page Number
1	Understanding income tax assessment u/s 143 with latest case laws	3-11
2	Understanding section 145 of Income tax with latest case laws	12-41
3	Understanding Re-assessment with latest case laws	42-51
4	Understanding rectification of mistake under section 154 of Income tax act with latest case laws.	52-61
5	Understanding process of obtaining lower rate of TDS certificate u/s 197	62-71
6	Understanding stay application under Income tax with latest case laws	72-89
7	Understanding tax on interest payable under section 234 with latest case laws	90-94
8	Understanding  interest on refund under section 244A with latest income tax case laws	95-107
9	Understanding Income Tax Settlement Commission with latest case laws	108-126
10	Understanding Advance Ruling under Income tax with latest case laws	127-141
11	Understanding CIT appeal under income tax	142-148
12	Understanding ITAT appeal under income tax	149-178
13	Understanding High Court Appeal under Income Tax with latest case laws	179-187
14	Understanding section 263 & 264 of Income tax act with latest case laws	188-197
15	Understanding Penalty under Income tax with latest case laws	198-207

S.220: Collection and recovery-Stay of Demand-Writ- Prima facie case, balance of convenience

 

The assessee was a wholly owned subsidiary of DHPL and all the shares of DHPL were held by

Shroff group. For purpose of restructuring the group organization, certain equity shares in companies

Whether loan & advances made by a company to its shareholder from profit reserve account, would fall within the purview of Sec 2(22)(e), if such company is not in business of money lending - YES: HC

THE issue before the Bench is - Whether loan & advances made by a company to its shareholder from the profit reserve account, would fall within the purview of Section 2(22)(e), if such company is not in the business of money lending. YES is the answer.

Facts of the case

The assessee is an individual. He had filed his return for A.Y 2009-2010, declaring an income of Rs.24.33,877/-, which was processed u/s 143(1). The case was selected for scrutiny and a