S. 271(1)(c) penalty is valid even if claim is disclosed and as per CA certificate

CIT vs. HCIL Kalindee ARSSPL (Delhi High Court)

The assessees claimed deduction u/s 80IA on the ground that it has executed an eligible infrastructure project. A copy of Form No.3CB, 3CD and Form No.10CCB was filed with the return in support of the claim. In the assessment order, the AO denied 80-IA deduction on the ground that the assessee had not executed the work but had given a sub-contract to another party and that it was not eligible u/s 80-IA(13). The assessee accepted the denial of the claim. The AO levied penalty u/s 271(1)(c) for filing inaccurate particulars of income which was upheld by the CIT(A). The Tribunal relied on Reliance Petroproducts 322 ITR 158 (SC) and deleted the penalty on the ground that the claim for deduction u/s 801A was on the basis of a certificate of the CA, was bona fide and all the material facts relevant thereto had been furnished. On appeal by the department to the High Court, HELD reversing the Tribunal:

Department’s practice of not giving prompt & full credit for TDS condemned

Vaghjibhai S. Bishnoi vs. ITO (Gujarat High Court)

The assessee filed a return of income in which he claimed a refund of Rs. 2.11 lakhs. An intimation u/s 143(1) was issued by the CPC Bangalore in which credit for certain TDS certificates was omitted to be given. The assessee filed a rectification application u/s 154 before the AO which was not acted upon. The assessee filed a writ petition to challenge the neglect of the AO to give proper TDS credit. Before the High Court the AO argued inter alia that as the details of the e-return had not been transferred to him by the CPC, he was not authorized to accede to any request of the assessee. It was also claimed that the assessee had not filed full details relating to the claim. HELD by the High Court allowing the Petition:

Check Online Refund Status after 7 days of e-Filing of Return for Asstt. Year 2014-15

Taxpayee/Assessee can check the status of refund after 5-7 days from the date of e-filing of Income Tax Return has been accepted by Income Tax Department with OLTAs. The refund of Asstt. Year 2014-15 taxpayee can check after you receive confirmation of acceptance through OnLine Taxes. 'Refund paid' status is also being reflected in the 'Tax Credit Statements' in Form 26AS.

Deemed income and tax on buy back of shares - ultra virse

Tax on companies in event of buy back of own shares- provision is not to impose tax on income , the provision is ultravirse the Constitution of India and the purposes of the Income-tax Act, 1961. Links and references Statutory provisions The Constitution of India Article 246 read with Union List entries 82 and 85 , Article 366 clauses ndash 1, 6, 8, 28 and 29. Sections 2 (24 (x) , 4, 115QA , 115QB and 115QC (Chapter XII-DA) of the Income-tax Act, 1961. Other article on related subject SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTION OF INCOME written by Shri Mr. M. GOVINDARAJAN In earlier article referred to above Learned author Mr. M. GOVINDARAJAN has

Companies Bill 2012 passed in Rajya Sabha

The Companies Bill 2012 was introduced in the Rajya Sabha on 6 August 2013.
The Bill aims at protecting the interest of employees and small investors. Earlier, the Bill was passed by the Lok Sabha on 18 December 2012.
Highlights of the Bill•
The new legislation, which would replace the nearly 50-year-old Companies Act of 1956 and would encourage the companies to undertake social welfare voluntarily instead of imposing the social responsibility.•
The proposed legislation would ensure setting up of special courts for speedy trial and stronger steps for transparent corporate governance practices and curb corporate misdoings.•
The new law would require companies that meet certain set of criteria, to spend at least two percent of their average profits in the last three years towards Corporate Social Responsibility (CSR) activities.•
In case, entities are unable to comply with the CSR rules, they would be needed to give explanations. Otherwise, they would face action, including penalty.
• The amended legislation also limits the number of companies an auditor can serve to 20 besides bringing more clarity on criminal liability of auditors.India’s first Companies Act was made way back in 1919 in colonial times. After independence, a new Companies Act came into force in 1956. Since then the act has been amended 25 times.
The new Companies Bill 2012 was passed by the Lok Sabha in 2012. -

For more details, refer the link below.
http://taxbymanish.blogspot.in/2012/12/highlights-of-companies-bill-2011.html

http://taxbymanish.blogspot.in/2013/01/salient-features-of-companies-bill-2012.html

Incentives of SEZ unit.

Customs and Excise

• SEZ Units are free to import from the domestic sources without paying any duty on capital goods, raw materials, consumables, spare, packing materials, office equipment, DG sets, etc. for implementation of their project in the zone without any license or specific approval. Good which are imported duty free could be utilized over the approval period of 5 years.
• Sales to DTA (Domestic Tariff Area) by SEZ units is always regarded as import and is subject to all normal import duties, including Countervailing Duty, SAD, etc.
• SEZ Units are free from the periodic examination by Customs of export and import cargo.
• SEZ units may sub-contract a part of their production through units in DTA/SEZ/EOU/EPZ with the permission of the customs authorities. Sub-contracting may also be permitted for

Excess Charges and taxes in restaurants!

It is Friday evening. You are in a restaurant. You had nice full course dinner with soup, main course, followed by dessert. You checked the prices before and ordered. However, when the bill came, you

Rajasthan HC rules no withholding on service tax payable on professional/technical fees

 

This tax alert summarizes a recent ruling of the Rajasthan High Court (HC), in the case of Rajasthan Urban Infrastructure Development Project (Taxpayer), on the question of whether tax is required to be withheld on service tax payable on professional/technical fees payable to consultants.

Whether when the word 'manufacture' has not been defined, common parlance meaning can be resorted to and Sec 10B benefits cannot be denied - YES: HC

THE issues before the Bench are - Whether the activities of moulding, cleaning, grading and undertaking a detailed line of processing for exporting dried plants and potpourri involves any manufacturing; Whether deduction u/s 10B can be claimed, when the final product was created through an irreversible process giving rise to a product commercially different from the raw materials; Whether in the absence of specific definition of manufacture in section 10B, common

Revised Form 15CA & Form 15CB

This is to inform you that the CBDT has amended Rule 37BB of the Income Tax Rule, 1962 vide Notification No. 58/2013 dated 5th August, 2013. The format of Form 15CA & Form 15CB has been amended.

Now, Form 15CB shall not be required in the following cases:

1) if the amount of payment does not exceed INR 50,000 & the aggregate of such payments made during the financial year does not exceed INR 2,50,000;

2) if the payment is not chargeable to tax and is of the nature specified in column (3) of the specified list. The specified list has been mentioned below:

Sl. No.	Purpose code as per RBI	Nature of payment
(1)	(2)	(3)
1	S0001	Indian investment abroad -in equity capital (shares)
2	S0002	Indian investment abroad -in debt securities
3	S0003	Indian investment abroad -in branches and wholly owned subsidiaries
4	S0004	Indian investment abroad -in subsidiaries and associates
5	S0005	Indian investment abroad -in real estate
6	S0011	Loans extended to Non-Residents
7	S0101	Advance payment against imports
8	S0102	Payment towards imports-settlement of invoice
9	S0103	Imports by diplomatic missions
10	S0201	Payments for surplus freight or passenger fare by foreign shipping companies operating in India.
11	S0202	Payment for operating expenses of Indian shipping companies operating abroad.
12	S0203	Freight on imports - Shipping companies
13	S0204	Freight on exports - Shipping companies
14	S0206	Booking of passages abroad - Shipping companies
15	S0208	Operating expenses of Indian Airlines companies operating abroad
16	S0209	Freight on imports - Airlines companies
17	S0212	Booking of passages abroad - Airlines companies
18	S0213	Payments on account of stevedoring, demurrage, port handling charges etc.
19	S0301	Remittance towards business travel.
20	S0302	Travel under basic travel quota (BTQ)
21	S0303	Travel for pilgrimage
22	S0304	Travel for medical treatment
23	S0305	Travel for education (including fees, hostel expenses etc.)
24	S0401	Postal services
25	S0501	Construction of projects abroad by Indian companies including import of goods at project site
26	S0601	Payments for life insurance premium
27	S0602	Freight insurance - relating to import and export of goods
28	S0603	Other general insurance premium
29	S1011	Payments for maintenance of offices abroad
30	S1201	Maintenance of Indian embassies abroad
31	S1202	Remittances by foreign embassies in India
32	S1301	Remittance by non-residents towards family maintenance and savings
33	S1302	Remittance towards personal gifts and donations
34	S1303	Remittance towards donations to religious and charitable institutions abroad
35	S1304	Remittance towards grants and donations to other governments and charitable institutions established by the governments.
36	S1305	Contributions or donations by the Government to international institutions
37	S1306	Remittance towards payment or refund of taxes.
38	S1501	Refunds or rebates or reduction in invoice value on account of exports
39	S1503	Payments by residents for international bidding".

Further, Income Taxauthority may require the authorised dealer to furnish the signed printout referred to in sub-rule (2) for the purposes of any proceedings under the Act.

The said notification has been attached herewith for your perusal.

Transfer Pricing: Law on adjustment for notional interest on interest-free loan & excess credit period to AE explained

Micro Inks Ltd vs. ACIT (ITAT Ahmedabad)

The assessee advanced an interest-free loan to its wholly owned subsidiary called Micro USA. It claimed that the said loan was in the form of equity capital and was advanced to meet the business needs of the subsidiary and that no interest was required to be computed thereon. The assessee also extended credit of 165 days to the said subsidiary in respect of the goods supplied by it which it claimed to be in the normal course of business. The TPO held that the assessee ought to have charged interest on the loans advanced by it and that the credit period should not have exceeded 120 days. He computed notional interest at the rate of 11% on the loan and excess credit period and made an adjustment. The CIT(A) upheld the adjustment in principle though he reduced the interest to LIBOR. On cross appeals, HELD by the Tribunal:

HOW TO REVISE E TDS RETURN IN TAX PORTAL

If an assessee has filed his income tax return and subsequently found any omission or wrong statement therein, he can re-file/revise the return with necessary modification. This re-filing of the income tax return is referred to as Revised Return. The process for revising the return is very simple. Please remember that the process outlined below is applicable if you had filed the original return online.

Compulsory Scrutiny Criteria for F.Y. 2013-14 / A.Y. 2014-15

INSTRUCTION NO. 10/2013, Dated: August 5, 2013

Subject: Procedure and criteria for selection of scrutiny cases under compulsory manual during the financial-year 2013-2014-regd.

In supersession of earlier instructions on the above subject, the Board hereby lays down the following procedure and criteria for manual selection of returns/cases for scrutiny during the financial-year 2013-2017:

2. The targets for completion of scrutiny assessments and strategy of framing quality assessments as contained in Central Action plan document for Financial Year 2013-2014 has to be complied with. It

PAY TDS ON TIME OTHERWISE FACE PROSECUTION

Tax Deductors Who Default In Depositing TDS by Due Date Shall be Liable for Prosecution: CBDT

It has come to the notice of Income Tax Department that many times the tax deductors, after deducting TDS from specified payments, are deliberately not depositing the taxes so deducted in Government account and continue to deploy the funds so retained for business purposes or for personal use. Such retention of Government dues beyond the due date is an offence liable for prosecution under Section 276B of the Income Tax Act, 1961. The defaulter, if convicted, can be sentenced to Rigorous Imprisonment (RI) for a term which can extend upto seven years.
The TDS units of Income Tax Department have been taking up prosecution proceedings in suitable cases where TDS has been retained beyond the due date. The Central Board of Direct Taxes has partly modified existing guidelines for identification of cases for launching prosecution. As per the revised guidelines, the criterion of minimum retention period of 12 months has been dispensed with. For the benefit of public at large, it is now clarified that defaulters, who have retained the TDS deducted and failed to deposit the same in Government account within due date, shall be liable for prosecution, irrespective of the period of retention.
However, the offence u/s 276B of the Income Tax Act can be compounded by Chief Commissioner having jurisdiction on the case, either before or after the launching of prosecution proceedings. In the recent past, several defaulters have submitted petitions for compounding of such offences and compounding orders have also been passed by the Competent Authority in suitable cases

Employee Stock Options granted by foreign employer is liable to tax in proportion to the period of services rendered in India: Delhi Tribunal

 

The Delhi Bench of the Income Tax Appellate Tribunal (“ITAT”) has delivered an important ruling in the case of Robert Arthur Keltz (“the taxpayer”). The ITAT has held that only that portion of employee stock options would be liable to tax as a perquisite in India which is relatable to the services rendered by the taxpayer in India, and not pertaining to the whole grant period.

Transfer Pricing: Scope in the context of expenditure (royalty payment) explained

Reebok India Co vs. ACIT (ITAT Delhi)

The assessee paid royalty at the rate of 5% to its associated enterprise and claimed that the same was at arm’s length basis by applying the CUP method. The TPO and DRP determined the ALP of the royalty at Nil on the basis that (a) the approval given by the Government for payment of royalty did not automatically mean that the transaction was at arm’s length; (b) the assessee had not furnished a cost benefit analysis, (c) the technology had in fact not helped the assessee in earning better margins. It was held that as the technology had not contributed to the assessee’s profitability and there was no commercial benefit received, no independent enterprise would have make payment for royalty for the technology and so its ALP had to be determined at Nil. On appeal by the assessee to the Tribunal, HELD reversing the TPO & DRP:

Transfer Pricing: Foreign associated enterprise can be taken as ‘Tested Party’

General Motors India Pvt. Ltd vs. DCIT (ITAT Ahmedabad)

The assessee bought CKD Kits from General Motor Daewoo Auto & Technology (GMDAT), a foreign associated enterprise. The assessee claimed that to determine whether the transactions were at arm’s length, GMDAT had to be selected as the tested party on the ground that the functions and risks of the assessee are more complex in nature and that numerous adjustments would have to be made if the assessee were taken as the selected part. The TPO & DRP rejected the assessee’s contention on the basis that (a) a foreign entity could not be a tested party, (b) GMDAT is a complex entity owing valuable intangibles & (c) the data for comparability of GMDAT is not available. On appeal by the assessee to the Tribunal, HELD:

What happen when Deadline ends? Taxpayee know more.

Tax payers, auditors and tax masters go extremely busy filing taxes and working on refunds in July. July 31 is usually the cut-off for filing your returns, which is set by the Central Board of Direct Taxes (CBDT). This year, the deadline has been extended till August 5, which is today.

Do I need to file my returns? What are the criteria to file the returns? Is it mandatory for all the taxpayers to file the returns in the same assessment year? What happens if I miss to file the returns on or before July 31?

Whether trade discount is nothing but Commission and same is liable to TDS u/s 194H - NO: High Court

THE issues before the Bench are - Whether trade discount is nothing but Commission and the same is liable to TDS u/s 194H and Whether discount offered to licensed stamp vendors by the State Government is Commission and TDS obligation arises in such a case. And the verdict goes in favour of the assessee.

Facts of the case

The assessee, the Chief Treasury Officer, Agra, has questioned the legality and validity of the

Whether expression 'wholly and exclusively' appearing in Sec 37 does not mean necessarily - YES: HC

THE issues before the Bench are - Whether when an expenditure is claimed to have been incurred by an assessee for promotion of his business, there is a legal obligation to prove that the expenditure was necessary for promotion of his business; Whether for the allowability of an expenditure u/s 37, it is relevant as to whether the benefit, expected to be accrued out of an expenditure incurred, is to accrue immediately or after a lapse of time, whether directly or indirectly; Whether the expression "wholly and exclusively", appearing in Section 37, does not mean necessarily; Whether expenditure incurred on foreign visits by directors and garden managers for promoting the sales of tea can be questioned, merely because the assessee has appointed a selling agent abroad and Whether expenditure incurred in connection with the travels of the wives of the tea estate managers can be allowed, when it is customary in the European countries for the wives to accompany their husbands. And the verdict goes against the Revenue.

Process to Fill ST-3 Offline Return Utility for October 2012 to March 2013 and thereafter

1. Introduction

This excel utility can be used only for the ST3-Return to be filed for the period/s, October 2012 to March 2013 and thereafter. Assessee can file the return for one or more than one service offered from one or more than one premises as well.

The excel utility can be used for creating a new file in XML format for e-filing of your returns. The e-filing Excel Utility is an Excel Workbook that consists of one worksheet.

e-filing consists of two sub-processes: firstly, generation of XML file of the ST3 Return and secondly uploading of generated xml file into ACES application.

Additional info to be furnished by Non Resident with TRC to claim treaty benefits

NOTIFICATION NO 57/2013, Dated: August 1, 2013

In exercise of the powers conferred by section 90 and section 90A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (11th Amendment) Rules, 2013.

(2) They shall be deemed to have come into force with effect from the 1st day of April, 2013.

2. In the Income-tax Rules, 1962,-

(a) in rule 21AB, for sub-rules (1) and (2), the following sub-rules shall be substituted namely:-

Guidance Note on Accounting for Depreciation in Companies

¹

Introduction
1. The Council of the Institute of Chartered Accountants of India has issued Accounting Standard (AS) 6 on 'Depreciation Accounting'. This standard lays down general principles of accounting for depreciation applicable to all entities. As such, the Standard is applicable to companies also in

Whether expression 'wholly and exclusively' appearing in Sec 37 does not mean necessarily - YES: HC

THE issues before the Bench are - Whether when an expenditure is claimed to have been incurred by an assessee for promotion of his business, there is a legal obligation to prove that the expenditure was necessary for promotion of his business; Whether for the allowability of an expenditure u/s 37, it is relevant as to whether the benefit, expected to be accrued out of an expenditure incurred, is to accrue immediately or after a lapse of time, whether directly or indirectly; Whether the expression "wholly and exclusively", appearing in Section 37, does not mean necessarily; Whether expenditure incurred on foreign visits by directors and garden

EPFO introduces system to facilitate online submission of transfer claims by Members

 

EPFO introduces a new system to facilitate online submission of transfer claims by Members with an objective to make the transfer process transparent, efficient and comfortable for your employees. You are urged to bring this facility to the notice of all your employees which is available on EPFO’s Member portal. A member has an option to submit his claim either through his present employer or the previous one.

FDI further liberalised: the last shot at retail?

The Indian economy is under pressure, the rupee is close to 62 and the Government must be seen to act. It is in this backdrop that we must look at last evening's Cabinet pronouncements. The Union Cabinet has confirmed the sectoral cap changes across sectors that were announced last week. It also released what we believe is the last set of clarifications from this pre-election Government on the multi brand retail side.

How do I write off a fixed asset?

A fixed asset is written off when it is determined that there is no further use for the asset, or if the asset is sold off or otherwise disposed of. A write off involves removing all traces of the fixed asset from the balance sheet, so that the fixed asset account and accumulated depreciation account are reduced.

Rule 8D applicable on Shares held as Stock in Trade

DCIT vs. Damani Estates & Finance Pvt. Ltd (ITAT Mumbai)

S. 14A/ Rule 8D: Scope in the context of shares held as stock-in-trade explained

In AY 2008-08, the assessee, a trader cum investor in shares, offered Rs. 10 lakhs as disallowance u/s 14A. It claimed that the amount invested in shares was funded by its own, non-interest bearing funds and that there was no direct expenditure relatable to the investments. The AO applied Rule 8D and computed the disallowance at Rs. 1.40 crore. On appeal, the CIT(A) upheld the stand of the assessee as to the quantum of the disallowance. On appeal by the department, the Tribunal had to consider (i) whether s. 14A applies to shares held as stock-in-trade?, (ii) whether it could be said that the

SPECIAL PROVISION FOR PAYMENT OF TAX BY CERTAIN COMPANIES UNDER SECTION 115 JB:

To read the complete article, please click the link below:

http://taxbymanish.blogspot.in/2011/10/i-special-provision-for-payment-of-tax.html

 

Accounting For Lease: Operating and Capital Lease

In a lease arrangement, the owner-lessor agrees to rent an asset (machinery, equipment, land, or building) to the tenant-lessee for a set number of periods at a fixed rental fee per period. Leases can be broadly classified as either operating leases or capital leases. If the lease agreement transfers a material ownership interest from the lessor to the lessee, it is a capital lease. If not, it is an operating lease. Material ownership interests, operating leases, capital leases, and sales-leaseback arrangements are the subjects of this chapter and will be discussed in detail in the following pages.

Service tax case law update - July 2013

1. Services:

 

Advertising Service:

 

1.1  CCE, Chandigarh vs. Facinate Advertising & Marketing 2013 (31) STR 77 (Tri-Del.)

 

The Tribunal in this case held that, incentive received for appreciating performance is not liable to tax as the same is not known whether payable or not while providing service. It is further held that, there

JAGO GRAHAK JAGO

	(please click display images below, from your email window to view the images...)
Consumer Velocity @ NCH Toll Free No. : 1800-11-4000(The monthly newsletter from National Consumer Helpline, Project of Union Ministry of Consumer Affairs, Food and Public Distribution)
Issue No : 16 Month : July 2013
CONSUMER VELOCITY @ NCH

S. 14A/ Rule 8D: Interest expenditure has to be netted against interest income and only the difference, if any, can be considered for disallowance

ITO vs. Karnavati Petrochmem Pvt. Ltd (ITAT Ahmedabad)

In AY 2008-09, the assessee invested Rs. 95 lakhs in shares on which it earned Rs. 300 as dividend. The AO applied Rule 8D and made a disallowance of Rs. 15 lakhs. The assessee claimed that no expenditure had been incurred to earn the dividend income on the basis that while the interest expense was Rs. 1.83 crore, the interest income was Rs. 1.86 crore and there was a net surplus interest income of Rs. 3.79 lakh. The CIT(A) held that the AO had not established a nexus between the expenditure incurred and the tax free income and that as the assessee had net positive interest income, there could be no disallowance of the interest expenditure u/s 14A read with Rule 8D. He sustained the disallowance at 0.5% of the average investment. On appeal by the department HELD dismissing the appeal:

S. 40(a)(ia) disallowance applies only to amounts “payable” as of 31st March and not to amounts already “paid” during the year. Merilyn Shipping (SB) approved

CIT vs. Vector Shipping Services (P) Ltd (Allahabad High Court)

The assessee engaged Mercator Lines Ltd to perform ship management work on behalf of the assessee for which it paid an amount of Rs. 1.17 crore. The assessee claimed that the amount paid by it to Mercator was a ‘reimbursement of salaries’ and that as Mercator had deducted TDS on the payments made by it to the employees, the assessee was not required to deduct TDS. The AO disagreed and disallowed the entire payment u/s 40(a)(ia). The Tribunal upheld the assessee’s claim and held that no TDS was required to be deducted on a reimbursement. It also relied on Merilyn Shipping and Transport Ltd 136 ITD 23 (SB) where it was held that s. 40(a)(ia) applied only to amounts that were “payable” as at the end of the year and not to amounts that had already been “paid” during the year. On appeal by the department, HELD dismissing the appeal:

ESOP to expatriate employee of foreign company not chargeable for period he was outside India even if ESOP was vested and exercised in India

ACIT vs. Robert Arthur Keltz (ITAT Delhi)

The assessee, an employee of M/s UTIO, USA, was granted “employee stock options” of 34000 shares on 9.01.2004 when he was outside India. The assessee was deputed to the India liaison office on 01.04.2006 and the stock options vested on 09.01.2007 when he was in India. The assessee exercised the stock options on 01.02.2007, when he was still in India. The AO held that as the assessee was in India on the date of vesting and exercise of the stock options, the entire benefit thereof was assessable as a perquisite in his hands. However, the CIT(A) held that as the employee had been in India for only for a part of the time of the vesting period, only a proportionate stock option benefit, which is attributable to the period spent in India accrued to the employee and was chargeable to tax in India. On appeal by the department to the Tribunal HELD:

Update on the withdrawal / substitution of TP circulars for R&D centres

Background

· The Prime Minister’s office (“PMO”) in a press release on July 30, 2012 stated that a Committee to review taxation of Development Centres and the IT sector was constituted under the chairmanship of Mr N Rangachary (“Rangachary Committee”). The press release in a way defined the term “R&D centres” or “development centres”, which are frequently referred terms in the various CBDT circulars that were issued subsequently. Accordingly, the development centres were Indian captive centres of Multinational companies (“MNCs”) carrying out activities such as product development, analytical work, software development in a variety of fields including IT software, IT hardware, pharmaceutical R&D, other automobile R&D and scientific R&D.

Government of India notifies maximum rate of interest on rupee denominated bonds for concessional rate of tax to FIIs/QFIs

 

Finance Act, 2013 inserted a new provision in the Indian Tax Laws, with effect from 1 June 2013, to provide that the tax rate on interest payable to Foreign Institutional Investors (FIIs) or Qualified Foreign Investors (QFIs) on rupee denominated bonds of an Indian company or Government security will be 5% (plus applicable surcharge and cess) on gross basis. The concessional rate applies to interest which is payable between 1 June 2013 and 31 May 2015.

CBDT Circular on setting-off losses of tax holiday units

 

The Central Board of Direct Taxes (‘CBDT’) has issued Circular No 07/2013 dated July 16, 2013 (‘the Circular’) wherein it has been clarified that losses if any, are required to be set-off against the profits of a STP/EOU/SEZ unit (‘eligible unit’), before the deduction under section 10A/10B of the Income Tax Act, 1961 (‘the Act’) is allowed.

Whether income earned from betting placed on live telecast of horse race falls within the purview of royalty, and hence, is liable to TDS - NO: ITAT

THE issues before the Bench are - Whether income earned from betting placed on live telecast of horse race falls within the purview of royalty, and thus, is liable to TDS provisions and Whether live telecast of such events amounts to creation of any 'work' as defined u/s 2(y) of the Act. And the verdict goes against the Revenue.

Facts of the case

Whether if advance received on sale of property prior to its registration is invested in specified assets, Sec 54EC benefits are available on such investment - YES: ITAT

THE issues before the Bench are - Whether earnest money or advance money received on sale of property will qualify for exemption u/s 54EC if the assessee invests such earnest money in specified assets before the date of transfer of the asset; Whether the AO can make an addition on the basis of the Stamp duty valuation; Whether value adopted or assessed by any authority of the State Government for the purpose of payment of stamp duty in respect of land or building cannot be taken as sale consideration received for the purpose of section 48 and Whether for the purpose of section 49(i)(ii), where the capital asset became the property of the assessee under a gift or will the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous owner or the assessee. And the verdict partly goes in favour of the assessee.

Facts of the case

TROUBLE SHOOTING GUIDE FOR PROBLEMS IN ACCESSING WWW.INCOMETAXINDIAEFILING.GOV.IN

 

Since ICAI was reported of the difficulties being faced while uploading the income tax returns in the e-filing website, the matter was taken up with appropriate authorities. The authorities have shared a Trouble Shooting guide for problems in accessing the www.incometaxindiaefiling.gov.in with us with a request to spread the message. Members interested may please click on the link below.

TROUBLE SHOOTING GUIDE

Considering the difficulties being faced ICAI has also requested CBDT to extend the due date of e-filing return of income by at least 30 days

Alternate Minimum Tax (AMT) For Other Than Corporate Assessee – From A.Y. 2013-14 .-Section 115JC TO 115 JF

 

Meaning- Alternate minimum tax means the Amount of tax computed on the adjusted total income.AMT is a way collecting the minimum tax from the tax payers. Assessee shall be liable to pay tax on such income at a rate eighteen and one-half per cent (18.5%).It is not an additional tax levied on the taxpayer.

Before the Assessment year 2013-14, this Section 115JC was applicable only on Limited Liability Partnership. Now from the assessment year 2013-14 this section has been amended and covers all

Income Tax Department to accept Returns on Saturday & Sunday i.e. 3rd and 4th August too

Special counters for filing returns of Income from 31st July,2013 to 5th August,2013, New Delhi

F.No. 225/117/2013/ITA.II
Government of IndiaMinistry of FinanceDepartment of Revenue
Central Board of Direct Taxes

North-Block, ITA.II Division

New Delhi, the 31^st of July, 2013

To
All CCIT (CCA)
Sir/Madam,
Subject: Opening of special counters for filing returns of Income-regd:-

In view of extension of due date for filing of return of Income from 31^st July, 2013 to 5^th August, 2013 vide CBDT’s order under section 119 of IT Act in F.No 225/117/2013/ITA.II dated 31.07.2013, I am directed to request that special arrangements be made for accepting the returns of income from 01.08.2013 to 05.08.2013 (including ^3rd and 4^th August, being Saturday and Sunday, respectively) to facilitate the tax payers to file their returns.

(Richa Rastogi)

Under Secretary (ITA.II)