Sunday, 31 May 2015

INCOME TAX RETURN FILING DATE EXTEND TO AUGUST 31, 2015 + NEW ITR FORMS NOTIFIED.


The Finance Ministry has notified revised Income Tax Return (ITR) forms. These forms will be used to file return for the assessment year 2015-16 (for income earned during fiscal year 2014-15). It has also been proposed to extend the last date for filing returns to August 31 as against normal practice of July 31.

India Taxes- Due Date Alert for the month June 2015


 

 

 

Sr No
Due Date
Related to
Compliance to be made
1
06.06.2015
Service Tax
Payment of Service Tax for the Month of May 2015. Please also make payment for use of service under reverse charge mechanism
2
07.06.2015
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 May 2015.
· Deposit TDS from Salaries deducted during the month of May 2015
• Deposit TCS for collections made under section 206C including sale of scrap during the month of May 2015, if any
• Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of May 2015, if any
3
15.06.2015
Income Tax
Payment of first instalment of advance tax (15%) for corporate
4
20.06.2015
VAT
Payment of VAT & filing of monthly return for the month of May 2015
5
21.06.2015
STPI
Filing of Softex Form for the month ended May 2015
6
30.06.2015
VAT
Filing of Annual return in hard copy (Karnataka VAT

Saturday, 30 May 2015

Services in respect of business exhibitions conducted abroad

K.G.Denim Ltd. V/s Commissioner Of Service Tax, Salem. [2015] 37 STR 616 (Tri.-Chennai)
Services in respect of business exhibitions conducted abroad and testing done abroad should be considered to be provision of services outside India.
FACTS:
Whether there was any service tax liability on the appellant as a recipient of service in respect of business exhibitions conducted abroad and in respect of technical inspection & certification services done abroad for which payments are made to parties located abroad?
HELD:
Both these services should be considered to be within India if service provider was located abroad and service was provided in India. Since these services were provided outside India, no service tax liability arose in the case.

Imp Verdicts On Eligibility Of S. 80-IC Dedn To Substantial Expansion + S. 40(a)(i) TDS Disallowance Etc


Hycron Electronics vs. ITO (ITAT Chandigarh)


S. 80-IC: The benefit of “substantial expansion” is applicable to units which were in existence at the time of announcement of scheme i.e. in AY 2004-05. Assesses who installed new units during this period and are now going for substantial expansion are not eligible to claim deduction u/s 80IC

If interpretation given by the assessee is to be accepted, the provision would become discriminatory for two classes of undertakings i .e. new units and old units. Because the old units would be entitled to 100% deduct ion on expansion for first five years and 25% thereafter whereas the new units would become entitled to deduction for 100% for first five years and again @ 100% on substantial expansion. Such discriminatory intention cannot be imputed to the Legislature.

 

Calcutta High Court rules on deduction of unpaid electricity duty collected as an agent of Government



 

This Tax alert summarizes a recent ruling of the Calcutta High Court (HC) in the case of CESC Ltd. (Taxpayer) on the issue of whether deduction for unpaid electricity duty payable to the State Government by the Taxpayer, which is engaged in the business of generation and distribution of electricity, was covered by a specific provision in the Indian Tax Laws (ITL) which permits deduction for ”tax, duty, cess or fee, by whatever name called, under any law for the time being in force” on actual payment thereof.

Friday, 29 May 2015

Three Simple Steps for Tax Deductors to follow and Important Information regarding TDS Certificates.

Below are the three simple steps for Tax Deductors to follow in case of TDS and TCS:

1. Deduct

Due Date to issue TDS Certificates (Form-16 or 16A) is 30th & 31st May, 2015 Respectively to avoid Penalties.

As per the circular of CBDT, due date to issue TDS certificates i.e. Form-16 or Form-16A is 30th May or 31st May, 2015 for the Financial Year 2014-15 to avoid penalties.

Last date for issuance of TDS certificates for Q4 of Fin.Year 2014-15 are as under:

Whether any sum transferred to reserve fund is to be treated as business expenditure either under Ss 28 or 37 - NO: HC

THE issue before the Bench is - Whether any amount transferred to reserve fund is to be treated as business expenditure and allowed deduction u/s 28/37 of the Act. NO is the answer.
Facts of the case
The assessee is co-operative body. It is the sole marketing agency for the products produced by different milk co-operative member unions of the state of Gujarat and for those of other states marketing their products under the brand name of Amul. The product range is mostly milk and

If one senior officer interpreted the law in a manner favourable to the assessee the assessee

IFB Industries Ltd. Vs. Commissioner of Central Excise Chandigrarh. [2015]37 STR 52 ( Tri. Del )
If one senior officer interpreted the law in a manner favourable to the assessee the assessee connoted be said to have malafide intension for invoking the extended period of limitation.
FACTS:

Discounts and Incentives received by advertising agency


Grey Worldwide Pvt. Ltd v/s Commissioner of service Tax. [2015] 37 STR 597 (tri-Mumbai)
Discounts and Incentives received by advertising agency are not towards provision of services and therefore should not be levied to service tax.
FACTS:
The appellant, an Advertising agency placed advertisements in print/ electronics media on

Thursday, 28 May 2015

Foreign tax Credit.

Interaction of two tax systems, each belonging to a different country, at times results in double taxation of income – economic double taxation or juridical double taxation.

Economic double taxation takes place when the same income is taxed in the hands of more than one person. Juridical double taxation takes place when the same income is taxed in the hands of the same person in more than one jurisdiction. Economic double taxation is typically resolved through bilateral negotiations whereas juridical double taxation is addressed in treaties, typically, through the tax credits article.

ITAT Hauls Up CA For Seeking To Intimidate It By Using 'Highly Derogatory, Defamatory And Contemptuous' Language


Mundra Woolen Mills (P) Ltd vs. ACIT (ITAT Delhi)


The severity of accusations and fury emerging from their language is highly derogatory, defamatory and contemptuous, sent with a scheme and clear intention to intimidate judicial officers to desist from passing an unfavorable order

Last date of filing form 49C by Liasion office of Non resident is May 30, 2015.

Furnishing of annual statement to tax department in relation to Liaison Offices of non-residents

The Central Board of Direct Taxes has prescribed Form 49C to be submitted by a non-resident having an liaison office (LO) in India. The annual statement in Form 49C is to be submitted in electronic form within 60days from the end of financial year ending on 31 March, 2012.

Furnishing of annual statement to tax department in relation to Liaison Offices of non-residents

The Central Board of Direct Taxes has prescribed Form 49C to be submitted by a non-resident having an liaison office (LO) in India. The annual statement in Form 49C is to be submitted in electronic form within 60days from the end of financial year ending on 31 March, 2012.
One may note that,
  • The annual statement seeks to collect extensive details about activities of the non-resident from India or their operation in India.
  • The non-residents would be required to obtain and file a large volume of information relating to their operations from or in India.
  • The non-residents would be required to document the role played by their LO in the overall operations since the tax authorities may use the information from the annual statement to ascertain the taxability of the non-residents in India.

Whether any interest liability arises during pendency of application before Settlement Commission - NO: HC


THE issue before the Bench is - Whether any interest liability arises during pendency of application before Settlement Commission. NO is the answer.
Facts of the case
The assessees involved are individual. A search took place in the premises of one K.C.Group, where besides cash of Rs. 2,16,500/- and stock to the tune of Rs. 53,21,218/-, certain documents and books of accounts were seized. Notice u/s 158BC was served on the assessee, responding to which, assessees filed return for the block period ending 5.10.2001 on 10.12.2002, disclosing Nil income. Thereafter, they applied u/s 245D(1) to the settlement commission and disclosed Rs. 10 lakhs in the hands of each of the four persons i.e. a total of Rs.

Wednesday, 27 May 2015

Clubbing of Income


Its all in the family’ It may seem ordinary to invest money for a non earning spouse by way of fixed deposits, or other income earning assets or to set up bank accounts, mutual funds or other investments for children to provide for their needs in future. Usually, you are only taxed for your own income, but under certain special circumstances some incomes are ‘clubbed’ along with your income and you may be liable to pay tax on such clubbed income.

The intention here is to make sure there is no tax that escapes, in case an individual is moving assets or incomes in the family. In a situation where you have incurred a loss, such loss (wherever allowed to be adjusted against an income) is also not allowed to be transferred to anyone and will be ‘clubbed’ to your income.

Simple Comparison of IND AS with Tax accounting Standard


.

Topic
ICD (Tax acing Std)
Indian GAAP
New IND AS
Mark to market loss
Shall not be recognized.
Allowed to be recognized.
No specific directions but based on prudent test, allowed.
Prior period loss
Not covered
Separate disclosure
Re-statement of profit of earlier period.
Construction contract Inventory
Out of scope of inventory
Included in inventory
Included in inventory

Why Should Foreign Taxpayers Entitled To DTAA Benefit Be Subjected To Higher Rate Of TDS U/s 206AA?

In the light of the judgement of the ITAT Pune in Serum Institute, Chirag Wadhwa argues that the approach of the department that even foreign entities entitled to the benefit of the DTAA should be subjected to a higher rate of TDS u/s 206AA for failure to quote the PAN is impractical and hinders the process of an effective and efficient taxation regime. He urges the department to take a holistic approach of the matter and ensure that while the noble object of detecting tax evasion is achieved, taxpayers are not put to unnecessary harassment

ITAT Laments Ineptness Of Dept + Imp Verdicts On S. 40(a)(ia)/ 197A TDS Etc


Ballabh Das Agarwal vs. ITO (ITAT Kolkata)

S. 40(a)(ia) second proviso was inserted by FA 2012 to rectify the unintended consequence of disallowance in the hands of the payer even if the payee has paid tax. It is curative and retrospective in operation. Assessee's claim of having obtained declarations u/s 197A from the payees should not be disbelieved without evidence. Assessee is not expected to go into the correctness of the declarations filed by the payees
T

How to download Form 16/16A from TRACES ? FAQs.

Recently, we observed that many TDS Deductors can't download TDS Certificate i.e. Form-16 or Form-16A from TRACES only due to not understanding the procedure.  Therefore, TRACES can placed some questions to solve that difficulties, which are as under :

Things to note before you deduct TDS from 1st June.

Amendments in our Indian Tax Laws… these days we encounter it very frequently. Till the time we understand the law properly… law changes. Though coping up with the amendments is very difficult but now, it has become an integral part of our tax life.   images

Whether settlement application u/s 245C would turn invalid if notice u/s 148 has already been served upon assessee before filing of such application - YES: HC

THE issue before the Bench is - Whether settlement application filed by an assessee u/s 245C would turn invalid, in case notice u/s 148 has already been served upon the assessee before filing of such application. YES is the answer.
Facts of the case
The assessee is a firm. During the A.Y 2010-11, a scrutiny assessment was undertaken, in which it was noticed that the assessee had purchased materials/goods from various parties. Some parties, whose names appeared in the list, were suspicious and it was alleged that they h

Indian agent, Facilitating transfer of money from abroad to person situated in India, provides services to service receiver outside India though the beneficiary of services is in India.


Wall street Finance Ltd Vs. Commissioner of Service Tax Mumbai. [2015] 37 STR 642 ( Tri- Mumbai )
 
FACTS :                                                           
The appellant was engaged by M/s. Western Union as   agent for transfer of money from abroad to persons situated in India. The Department was of the view that since service were rendered in India service tax was payable on the commission received.

Tuesday, 26 May 2015

Decoding Secretarial Standards – Scope and Definitions

EARLIER I have raised some issues related to issuance of secretarial standards. As these are curable technical issues. I continue my study of these Secretarial Standards.
In this post, I will discuss scope of the Secretarial Standards namely SS – 1 and SS – 2 issued by Institute of Company Secretaries of India and interesting definitions.

CBDT issues Circular for Early & Satisfactory Resolution of Taxpayers’ Grievances

The Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand which may be inaccurate due to non-reporting or delayed reporting of TDS by deductors leading to mismatch between the claim and data available with the Department, non-posting of challans, non-disposal of rectification applications, incorrect details of income or pre-paid taxes reported by taxpayer etc.

 

Whether losses suffered by Sec 80IA unit can be set off against profit from manufacturing unit not covered under provisions of Sec 80IA - YES: HC

THE issue before the Bench is - Whether the loss incurred in business of power generation which is entitled to deduction under section 80IA can be set off against business income from manufacturing unit ignoring the provision of section 80-IA(5). YES is the answer.
Facts of the case
The assessee company is engaged in the business of manufacture of material handling equipment and generation of power. It had installed windmills and that was a unit eligible for deduction u/s 80-IA. The other unit of the assessee was not entitled for any such deduction. The

Services in relation to distribution or transmission of electricity were exempt from service

Kedar Construction v/s Commissioner of Central Excise , Kolhapur. [2015]37 STR 631 ( Tri. Mumbai )
Services in relation to distribution or transmission of electricity were exempt from service tax vide notification No.45/2010- ST dated 20th July 2010.
FACTS:
The Appellants rendered commercial or industrial construction service to Maharashtra state

Monday, 25 May 2015

Updated New ITR Form ITR-1, ITR-2, ITR-4S with Acknowledgment and New Instructions for Asstt. Year 2015-16

Income Tax Department has been released New Income Tax Return Form ITR-1, ITR-2, ITR-4S vide Notification 41/2015 dated 15.04.2015 in ".PDF" format for offline Income Tax Return Filing and by this Notification CBDT mandates e-filing for Individuals & HUFs who are claiming Income Tax Refund and for ordinarily residents earning overseas income.

Whether lumpsum commission or one time payment made to Director of company does not attract mischief of Sec 40(c) - YES: HC

THE issue before the Bench is - Whether a lumpsum comission or one time payment made to the Director of a company does not attract the mischief of Sec 40(c). YES is the answer.
Facts of the case
The assessee during the relevent year, had paid commission and salary to two of its directors, namely A.K. Jaiswal and M.K. Jaiswal. Upon verification of returns filed by assessee, the AO after applying Section 40[c][iii] held that the said commission amount to a reasonable figure was

CPC (TDS)'s provision for "Correction of Potential Errors" in Original TDS statements before Computation of Final Defaults


029/2015

Date of communication : 24/05/2015

Dear Deductor (TAN - XXXXXXXXXX),

As you may be aware, Centralized Processing Cell (TDS) intimates you of possible PAN Errors and

Sunday, 24 May 2015

Challenges in new tax accounting standards


.

01.                        Taxpayer not provided any time to adjust with the new system. It applied immediately.

02.                        Advance tax for FY 2015-16 required to be computed on the basis of profit under TAS.

Saturday, 23 May 2015

Under VCES, there is no provision whereby designated authority

Indokem Ltd. V/s The Union of India and ORS [2015-TIOL-633-HC-MUM-ST]
Under VCES, there is no provision whereby designated authority can undertake the task of bifurcating or computing the liability by showing a disparity in the figures of ST-3 returns and the declaration made.

The right of appeal that is vested

Muthoot Finance Ltd vs. Union of India, Commissioner of Central Excise Customs and Service Tax. [2015-TIOL-632-HC-KERALA –ST]
The right of appeal that is vested is to be governed by the law prevailing on the date of institution of the suit or proceeding and not by the law that prevailed  on the dare of its decision or on the date of filing of the appeal.

CBDT prescribes draft scheme for use of "Arm's Length Range" and "Multiple Year Data"



For almost a decade, the corporate community and transfer pricing (TP) professionals had been relentlessly putting forth pre-budget recommendations for introduction of the range concept (instead of the stringent arithmetic mean), and for allowing the use of multiple year data.

Friday, 22 May 2015

TECHNICAL FAULT IN ISSUANCE OF SECRETARIAL STANDARD

Section 118(10) of the Companies Act, 2013 made it mandatory for every company to observe Secretarial Standards on general and board meetings. According to sub – section 118(10), these two Secretarial Standards shall be “specified” by the Institute of Company Secretaries of India and “approved” as such by the Central Government.
This sub – section does not confer any power to the Institute of company Secretaries of India to

Internal Auditor

Internal Audit is one most important tool for better Corporate Governance in any company. This is not a post – mortem like statutory audit, but may provide real time analysis and processing of transactions through watchful eyes.
According to Section 138 of the Companies Act, 2013 , “Such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who shall either be a chartered

High Level Committee To Probe MAT Taxation Of Foreign Companies & FIIs Formed

The Ministry of Finance has issued a press release stating that a High Level Committee (HLC) Headed by Justice A.P. Shah on Direct Tax Matters has been constituted. The Committee consists of leading tax experts. The Committee is required to examine the matter relating to levy of MAT on FIIs for the period prior to 01.04.2015 among others. The Committee has been requested to give its recommendations on the above issue expeditiously

Important CBDT Circular Sets Out Procedure For Speedy Resolution Of Taxpayer’s Grievances Regarding Outstanding Tax Demands

The CBDT has issued Circular No. 8 of 2015 dated 14.05.2015 setting out the detailed procedure that has to be followed by taxpayers in response to an arrear demand from the AO. The Ministry of Finance has also issued a press release stating that the said Circular is because the Income Tax Department has taken note of grievances of taxpayers arising on account of outstanding tax demand

CBDT Circular Regarding TDS From Income Of Organisations Exempt From Tax

The CBDT has issued Circular No. 07 dated 23.04.2015 stating that the CBDT has decided that since corporations covered under Section 10(26888) satisfy the two conditions of Circular No. 4/2002 i.e. unconditional exemption of income under Section 10 and no statutory liability to file return of income under Section 139, any corporation whose income is exempted under Section 10(26BBB) of

GTA services received amounts to output services- service tax payable under reverse charge could be paid by utilising CENVAT credit balance.

Commissioner of central Excise & Customs vs. Panchmahal Steel Ltd. [2015] 54 taxmann.com 151 (Gujarat ) –
 CENVAT Credit : Rule 3(4(e) provides that CENVAT Credit may be utilised for payment of service tax on any output service –GTA services received amounts to output services- service tax payable under reverse charge could be paid by utilising CENVAT credit balance.
FACTS:

Indian Govt. rolls out draft scheme for "range concept", multiple year data; Seeks comments


The CBDT has issued a draft scheme (attached) introducing the Arm’s length range where 9 or more comparables are used, and mandatory use of multiple year data (3 years, and if data not available for one year, 2 years is permitted).

Supreme Court approves the formation of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT)

This alert summarizes the provisions upheld by the Supreme Court (‘SC’) towards formation of NCLT and  NCLAT and the impact of key changes due to the Companies Act, 2013 (‘Cos Act, 2013’) vis-a-vis. the existing provisions of corporate restructuring through schemes of arrangement under a High Court process as per the Companies Act, 1956 (‘Cos Act, 1956’).

SC thrusts full claim of depreciation allowance even though taxpayer did not opt for unabsorbed depreciation allowance (pre AY 2002-03) - Seshasayee

We are pleased to release a Tax Alert which summarizes a recent ruling of the Supreme Court (SC) in the case of Seshasayee Paper & Boards Ltd. (Taxpayer) on the issue of whether, in the assessments pertaining to years prior to amendment in assessment year (AY) 2002-03, the Taxpayer could claim only current depreciation, while refraining from claiming unabsorbed depreciation.  

T

Thursday, 21 May 2015

ICAI issues a guidance note on accounting for derivative contracts


There has been some lack of guidance on the accounting for derivative contracts and hedging activities. In order to bring uniformity of practice in accounting for derivative contracts by various entities in India, on 12 May 2015, the ICAI issued a guidance note of accounting for derivative contracts (guidance note). 

 

Whether insertion of expression 'even if delay in disposing of appeal is not attributable to assessee' by virtue of Finance Act, 2008, is violative of non-discrimination clause of Article 14 of Constitution - YES: HC

THE issue before the Bench is - Whether insertion of the expression "even if the delay in disposing of the appeal is not attributable to the assessee" by virtue of the Finance Act, 2008, is violative of the non-discrimination clause of Article 14 of the Constitution of India. YES is the answer.
Facts of the case
The assessees in the present appeal had challenged the constitutional validity of third proviso to

New ITAT Rules For Filing Appeals And Seeking Adjournment

 


Income Tax Appellate Tribunal
4th Floor, Prathishtha Bhavan, 101 Maharshi Karwe Marg,
Mumbai – 400 020
20th May, 2015.

SC rules restriction on extent of commercial area in housing project imposed w. e. f. 1 April 2005 in profit-linked incentive deduction would not apply to project approved and commenced before 1 April 2005

We are pleased to release a Tax Alert which summarizes a recent ruling of the Supreme Court (SC) in the case of  Sarkar Builders (Taxpayer) where, in the context of profit-linked incentive deduction for housing project, the SC held that amendment introduced w. e. f. 1 April 2005 restricting commercial area which could form part of housing project cannot apply retroactively to housing projects which were approved by local

New Service tax rate of 14% effective from 1 June 2015

We are pleased to release a Tax Alert which gives an update on various Notifications under Service tax and Central Excise issued by the Central Government, prescribing a specified date for certain provisions of the Finance Act 2015 (No.20 of 2015) to take effect from.

Key amendments which will be effective from 1 June 2015 are as follows:

exempts taxable services provided under the Power System Development Fund Scheme

Notification No. 17/2015-Service Tax

G.S.R. (E). - In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts taxable services provided under the Power System Development Fund Scheme of the Ministry of Power (hereinafter referred to as the Scheme), from the whole of the service tax leviable thereon under section 66B of the said

No. 15/2015-Service Tax No. 16/2015-Service Tax

No. 15/2015-Service Tax
G.S.R.….(E).- In exercise of the powers conferred by sub-section (1) read with sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby appoints the 1st day of June, 2015 as the date on which the provisions of sub-clauses (a), (b)

Wednesday, 20 May 2015

HOW TO HANDLE ISSUES RELATING TO CHANGE IN SERVICE TAX RATE

Among other changes... the most important that has been made effective w.e.f. 01.06.2015 is the Enhancement of Service Tax Rate (from 12.36% including cesses to 14% i.e. no more cesses to be added).
 

Managerial Remuneration-Draft Application Guide

please find the Link of  Exposure Draft on Application of Managerial Remuneration under the Companies Act, 2013 (Issued by ICAI on May 18, 2015)

Please click on the link below to view and download the same.

Input services up to port of export are eligible for availment of CENVAT Credit since port is "place of removal" in case of exports.

Ballarpur Industries Ltd. vs. Commr. Of C. Ex., Pune-Ill 2014 (36) STR 1122 (Tri.-Mumbai)
 
 
Since issue of CENVAT Credit is highly disputed and subject to different interpretations by various Courts, penalties cannot be levied.
FACTS:

Service tax Notification 13/2015 & notification 14/2015

No. 13/2015-Service Tax

G.S.R. ---(E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the

Whether conversion of gram dal into besan amounts to manufacture and assessee is eligible for Sec 80IB(4) benefits - YES: HC

THE issue before the Bench is - Whether converting gram Dal into Besan amounts to manufacturing process and assesse would be entitled to the deduction under Section 80IB(4). YES is the answer.
Facts of the case

A) The
assessee is engaged in manufacturing of various food products like soya nuggests, besan, vermicelli and instant daliya. It commenced commercial production on 19.03.1999 as per the certificate granted by the Department of Industries. For the assessment year 2000-01 to 2004-05, the assessee filed returns of income claiming the entire profits as deduction under

Bombay HC confirms powers of the legislature to determine measure of tax; upholds stage-wise taxability under Rule 58 of MVAT Rules




 

This Tax Alert summarizes a recent decision of the Bombay High Court (HC) in the case Confederation of Real Estates Developers Association of India v. State of Maharashtra and Commissioner of Sales Tax, Maharashtra.

 

Draft Gold Monetization Scheme


The government on Tuesday released the draft guidelines for its ambitious gold monetization scheme that aims to cut down gold imports in the country. The guidelines have been notified nearly three months after the scheme was announced by Finance Minister Arun Jaitley in the Union Budget.

Tuesday, 19 May 2015

Service Tax of 14% instead of 12.36 % will be applicable from June 1 2015

Finance Ministry has informed that the date of the proposed service tax hike is applicable from June 1, 2015. The Union Budget had announced hike in service tax rate hike to 14% from 12.36%. However, no decisions have yet been taken on the levy of Swachh Bharat Cess. It was announced in the Budget that a Swachh Bharat Cess Upto 2% will be levied

Four Important Judgements Of The Supreme Court On Crucial Issues


CIT vs. Sarkar Builders (Supreme Court)


S. 80-IB(10): Restriction on extent of commercial area in “housing project” imposed w.e.f. 1.4.2005 does not apply to housing projects approved before 1.4.2005 even though completed after 1.4.2005

Can it be said that in order to avail the benefit in the assessment years after 1.4.2005, balconies should be removed though these were permitted earlier? Holding so would lead to absurd results as one cannot expect

Restriction On Power Of ITAT To Stay Demand Beyond 365 Days Struck Down As Unconstitutional


The Third Proviso which restricts the power of the ITAT to grant stay beyond 365 days “even if the delay in disposing of the appeal is not attributable to the assessee” is arbitrary, unreasonable and discriminatory. It is struck down as violative of Article 14. The ITAT has the power to extend stay even beyond 365 days

While it could be argued that the condition that the stay order could be extended beyond a period of 180 days

Supreme Court rules on scope of statutory dues allowable as deduction on actual payment (Travancore Sugars)


We are pleased to release a Tax Alert which summarizes a recent ruling of the Supreme Court (SC) in the case of Travancore Sugars & Chemicals Ltd.  (Taxpayer) on the issue whether provision for vend fees payable by the Taxpayer to State Government is allowable as deduction on actual payment basis pursuant to a specific provision in Indian Tax Laws (ITL) which permits deduction for ‘tax, duty, cess or fee, by whatever name called, under any law for the time being in force’ on actual payment thereof.

Income Tax Rules for Non Resident Indians

income tax rules
Residential Status is an important aspect when it comes to taxation. The Income Tax Act has laid down the definition for determining the residential status of an assesse, and as per that, the income tax rules and rates for tax deduction are determined.
Basically an individual can be a resident or a non-resident.  Income tax rules for the

Legal aspects for NRIs selling property in India

The recent times have seen an interesting new trend in the whole NRI property debacle - NRIs from North America and Europe coming to India to sell their purchased or inherited real estate after they obtain citizenship in these countries. This is not a trend that has been extensively examined, but it makes perfect sense. Holding on to real estate is not always feasible if one is unable to manage them. Also read: Bandra Kurla Complex emerging as a hub for consulates This is especially true if the NRIs in question do not visit India frequently and are not open to renting out their properties. They

Whether when assessee pays a lumpsum amount to transferor of marketing network, depreciation cannot be denied on alleged ground that it was an arrangement for right to use such a network - YES: HC

THE issue before the Bench is - Whether when the assessee pays a lumpsum amount to the transferor of a marketing network, depreciation cannot be denied on the alleged ground that it was an arrangement for right to use such a network. YES is the answer.
Facts of the case
The assessee is a telecom company. It had acquired shares of M/s Siemens Telecom Ltd. ('STL'), for which consideration paid by the assessee, included the sum of Rs.9 Crores for the

Interest to accrue till the date of debit in CENVAT Credit Account notwithstanding balance lying in CENVAT Credit Account on due date.

Commissioner of Service Tax, Mumbai v/s. Toyo Engineering Corporation Ltd.  [2015] (37) STR 238 (Tri.-Mum.)
 
FACTS:
The respondents discharged service tax liability by way of utilization of CENVAT Credit. However, debit in CENVAT Credit account was done belatedly. The department demanded

Monday, 18 May 2015

Don't misuse Forms 15G, 15H to avoid TDS

Imprisonment and fines await those who wrongly file the two forms to avoid tax on interest income.

Getting a tax refund can be cumbersome as delays by the Income Tax Department are common. It makes sense to plan your taxes at the beginning of the year, to avoid overpayment and the refund process. Submitting investment declaration with your employer on time and filling form 15G15H will save you half the hassles. However, you cannot randomly submit forms 15G and 15H.

Whether when unabsorbed depreciation of earlier years is carried forward it loses its identity by getting merged with current year depreciation when it comes to claiming the same - YES: Supreme Court

THE bone of contention before the Apex Court is - Whether when unabsorbed depreciation of earlier years is carried forward it loses its identity by getting merged with the current year depreciation when it comes to claiming the same. YES is the answer.
Facts of the case
The assessee company is engaged in the business of manufacturing paper. It had filed its return for the Assessment Year 1991-92 declaring its income as 'Nil'. In fact, the income for that year after showing exemptions, deductions and additions, which were to be made in terms of Sections 28 onward relating to computation of the business income, was arrived at 2,87,15,912.