TAX BY MANISH

Saturday, 28 January 2017

India Taxes- Due Date Alert for the month February 2017

No	Due Date	Related to	Compliance to be made
1	05.2.2017	Service Tax	Payment of Service Tax for the Month of January 2017
2	07.2.2017	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 January 2017. · Deposit TDS from Salaries deducted during the month of January 2017 • Deposit TCS for collections made under section 206C including sale of scrap during the month of January 2017, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of January 2017, if any
3	20.2.2017	VAT	Payment of VAT & filing of monthly return for the month of January 2017
4	20.2.2017	STPI	Filing of Softex Form for the month ended January 2017

Whether additions can be made on account of investment merely on basis of statement of original owners, in absence of evidences to show transfer of sale consideration - NO: HC

THE ISSUE IS - Whether an addition can be made on account of investment in property, merely on basis of statement of the original owners, when there is no evidence to show transfer of any sale consideration. NO is the verdict.

How to Reduce E TDS Demand

In case you are received notices from Income tax department in respect of TDS demand, then please contact us for the immediate solution. Our contact email id is taxbymanish@yahoo.com and contact number is 8970769696.

HAPPY REPUBLIC DAY

Sachin Tendulkar wins capital gains case; ITAT rules merely because he availed services of Portfolio Manager, gains from share transactions do not become business income

THE issue before the Bench is - Whether the mere fact that assessee has availed services of a Portfolio Manager, is sufficient to consider gains arising out of transactions entered into by him as business income. NO is the answer.

Facts of the case

The assessee, an Individual, had shown in his return long term capital gains and loss on sale of shares. Further, short term capital gains and short term capital loss were also shown in the return filed. The AO noted that assessee had been disclosing capital gain from sale of shares every year in past and that purchase/sale of shares and units of mutual funds was managed by Portfolio Managers. It had also noted that assessee had engaged the services of Portfolio Managers to carry out the transactions of sale-purchase of shares for which huge amount of PMS charges were paid. According to AO, it was not an ordinary thing for a normal investor. Thus, AO issued show cause notice to assessee asking him to explain as to why profits on sale of shares/ unit should not be treated as 'business income’ as against the

SC : Loose paper-sheets "irrelevant, inadmissible" evidence; Rejects investigation plea in Sahara/Birla case

SC dismisses petition filed by Shanti Bhushan & Prashant Bhushan, seeking constitution of Special Investigation Team, directing investigation of the allegedly incriminating material seized in CBI/tax department raids conducted on Birla & Sahara group of companies; Mr. Bhushan argued that during the raids, e-mails and excel sheets were found that showed payment of cash to several important 'public' figures; Apex Court cites ratio in V.C. Shukla/Jain Hawala diaries case, wherein the court held that entires in loose papers/sheets are irrelevant and not admissible under Sec. 34 of Evidence Act and only where entries are in books of accounts/regularly kept, those are admissible; Further cites V.C. Shukla ratio to drive home the point that entires in books of account alone shall not constitute sufficient evidence to implicate a person since the same is only "corroborative" evidence; SC observes that the judiciary ought to be cautious while ordering investigation against any important constitutional functionary/officers in the absence of "prima facie reliable/legally cognizable material" which are not supported by 'other circumstances'; Holds that "..... In case we do so, the investigation can be ordered as against any person whosoever high in integrity on the basis of irrelevant or inadmissible entry falsely made, by any unscrupulous person or business house that too not kept in regular books of accounts but on random papers at any given point of time."; As for Sahara raids, SC refers to Settlement Commission order dated November 11, 2016 wherein the Commission recorded a finding that transactions noted in the documents were not genuine and did not attach any evidentiary value to the pen drive, hard disk, computer loose papers, computer printouts; SC concludes " ... it would not be legally justified, safe, just and proper to direct investigation, keeping in view principles laid down in the cases of Bhajan Lal and V.C. Shukla.":SC

CBEC proposes Master Circular on SCN, Adjudication & Recovery; Invites comments by Feb 15

CBEC proposes Master Circular on Show Cause Notice, Adjudication and Recovery, consolidating 85 Circulars of Central Excise; Said Master Circular intends to compile relevant legal and statutory provisions on the subject, and seeks comments / suggestions by February 15; Draft Master Circular is divided into 4 parts wherein Part I deals with Show Cause Notice related issues, Part II deals with issues related to Adjudication proceedings, Part III deals with closure of proceedings and recovery of duty, while Part IV deals with miscellaneous issues (such as service of decisions, orders, summons, de novo adjudication, and refund of pre-deposit); Master Circular lays down inter alia structure of Show Cause Notice – (a) introduction of the case, (b) legal frame work, (c) factual statement & appreciation of evidences, (d) discussion, facts and legal framework, (e) discussion on limitation, (f) calculation of duty and other amounts due, (g) statement of charges, and (h) authority to adjudicate, and reiterates that once the amount is paid, no coercive action shall be taken for recovery of balance amount during pendency of appeal proceedings before appellate authorities; Circular also states that refund of pre-deposit need not be subjected to process of duty refund u/s 11B of Central Excise Act, and same shall be paid with interest irrespective of whether the appellate order is proposed to be challenged by Dept. or not; Lists down the 82 Circulars which shall stand rescinded and 3 Circulars that would remain operative : CBEC

HC : ‘Swad’ candy manufactured using prescribed formulae, taxable as ayurvedic medicine, not confectionery

HC holds ‘Swad’ candy as an ayurvedic medicine and not confectionary, thereby taxable at 6% under Rajasthan Sales Tax Act; Rejects Revenue contention that since ‘Swad’ candy is freely available at shops other that medical stores, it cannot be said to be a medicine and hence, taxable at 10%; States that any drug for prevention of disease or disorder in human beings or animals, and manufactured exclusively in accordance with the formulae prescribed in authoritative books, can be said to fall within the definition of a “drug”; Applying common parlance test and taking note of the ingredients, HC states that ‘Swad’ cannot be said to be a toffee, as one takes the same in case of a stomach disorder or for digestion purposes; States that “merely because it is available in a tea stall or a betel shop or other various places where confectionery items are sold, does not change the character of an item”, while noting that no evidence or authoritative material has been put on record by Revenue so that it can be said to be a confectionery item and not a drug : Rajasthan HC

IMP ITAT Judgements

ACIT vs. Veer Gems (ITAT Ahmedabad)

S. 92A Transfer Pricing: Important law explained on meaning of expression "associated enterprise". The mere fact that an enterprise has de facto participation in the capital, management or control over the other enterprise does not make the two enterprises "associated enterprises" so as to subject their transactions to the rigors of transfer pricing law

HC : MODVAT credit reversible when final product cleared under purchaser's duty remission claim

HC directs reversal of input credit against clearance of aluminium castings under claim of duty remission by buyer for use in specific industrial process, in terms of Chapter X r/w Rule 57C of Central Excise Rules 1944; Notes Adjudicating Authority’s finding that assessee was reversing credit initially but resorted to jugglery subsequently, and since goods cleared under Chapter X procedure had not suffered any duty payment, MODVAT credit was reversible; Rejects assessee’s contention that choice of buyer to either claim MODVAT credit of duty paid or claim remission doesn’t make the goods exempt or chargeable to nil rate of duty; Relies on Kirloskar Oil Engines decision wherein it was held that MODVAT Credit in respect of inputs, which have been used in manufacture of final product that is fully exempted from whole of excise duty, is not available; States that since assessee had cleared goods without payment of duty, the case was covered by aforesaid decision, thus credit taken on aluminium ingots (inputs) was incorrect : Bombay HC

HC: Upholds deletion of unexplained income u/s 68 absent intensive investigation by AO

Delhi HC dismisses Revenue’s appeal for AY 2001-02, upholds deletion of sums brought to tax by the AO u/s 68; Notes that the assessee had furnished large amounts of materials (including PAN and ITR) before the AO to evidence the genuineness of identity/ transactions and creditworthiness of the share applicants/creditors, further notes that the AO had conducted the “perfunctory” inquiry by deputing an inspector to the premises; Thus accepts assessee’s plea that absence of these parties, after 7/8 years, ipso facto couldn’t have led the AO to conclude that the parties were fictitious or non-existent; Opines that the AO should have carried out a more intensive investigation into the records to actually discern the volume of trade/commerce of the parties and their inability, if any, to invest the amounts; Separately on noting that the approval granted by the CIT(A) was done “in a ritualistic and formal rather than meaningful, which is the rationale for the safeguard of an approval by a higher ranking officer” holds that the CIT did not in fact record satisfaction u/s 151 for reopening assessment u/s 147/148

Monday, 9 January 2017

CBEC prescribes registration & online tax payment procedure for non-taxable OIDAR service providers

CBEC prescribes procedure for registration & online payment of service tax in respect of online information & database access or retrieval services rendered by non-taxable territory assessees; Such assessees are required to fill and submit Form ST-1A, whereupon Registration Certificate in Form ST-2A shall be generated automatically; For payment purposes, taxpayer / assessee must have internet banking account in one of 7 prescribed foreign banks which include BNP Paribas, HSBC, Standard Chartered and Bank of America; Payment shall be routed through replica of EASIEST e-Payment portal, where assessee needs to select following Accounting Codes – 0153 for service tax on OIDAR, 0154 for interest and 1333 for penalties thereon, 1509 for payment of KKC, 1510 and 1512 for interest and penalties thereon respectively, and 1493 for SBC, 1494 for interest and 1496 for penalties thereon; Using the EASIEST web portal, assessee can view / download GAR-7 challan evidencing payment of service taxes : CBEC

Friday, 30 December 2016

CALENDAR 2017

https://taxofindia.wordpress.com/2016/12/30/calendar-2017/

Please click to download the 2017 calendar.

Whether annual value of every second property owned by individual, which remained vacant, would be assessable u/s 23 - YES: HC

THE ISSUE IS - Whether the annual value of every second property owned by an individual, which admittedly remained vacant throughout the year would be assessable u/s 23(1)(a). YES IS THE VERDICT.

Harmonised System Nomenclature 2017 for imports / exports effective from January 1, says CBEC

CBEC notifies implementation of changes from WCO Harmonized System Nomenclature 2012 version to 2017 version w.e.f. January 1, 2017; New version, as notified vide Sections 141 and 146 of Finance Act 2016, includes 233 sets of amendments, divided as follows - agricultural sector 85, chemical sector 45, wood sector 13, textile sector 15, base metal sector 6, machinery sector 25, transport sector 18, and other sectors 26; Directs importers, exporters and CHAs to ensure classification of goods in accordance with HSN 2017 while filing Customs declarations for goods to be imported / exported from January 1st; Customs RES software providers shall also equip their RES packages in line with new version for smooth implementation : CBEC

CESTAT : Affirms taxation of catering services rendered by Co.'s co-operative society to employee-members

CESTAT affirms taxation of catering services provided by assessee, a registered cooperative society, from the premises of L&T to its employees u/s 65(105)(zzt) of Finance Act; Notes that L&T has statutory obligation under Factories Act to provide culinary service and in this regard, established a cooperative society comprising of employees as also company itself for operating the canteen, and consideration for meal was paid in tandem by consumer and employer; Whether food articles were provided free of cost or at subsidized rates or at market prices, was a matter of labour-employer negotiations and it was clear that without the concurrence of L&T, assessee could neither engage in activity of running canteen nor decide rates of food articles or composition of individuals to be served; Holding assessee as ‘service provider’, CESTAT found that it operates from campus of L&T, thereby satisfying all requirements of taxability u/s 65(105)(zzt); Relies on coordinate bench ruling in Alfa Laval (India) Ltd Employees Co-operative Consumers Society case while rejecting assessee’s claim of mutuality, opines that society and its membership was not germane to contract between L&T and assessee for engaging latter as caterer : Mumbai CESTAT

Questions ITAT's 'mechanical adherence' to Galileo ruling on 15% profit attribution

Delhi HC allows Revenue’s appeal challenging ITAT order attributing 15% of assessee’s (USA based limited partnership concern, engaged in online airline booking services) income to India relying on co-ordinate bench ruling in Galileo International Inc; ITAT had held that assessee's operations in India constituted a PE under Article 5 of India-USA DTAA while attributing 15% income to Indian operations; Observing that Revenue's challenge is to ITAT's "mechanical adherence" to attribution rate of 15% in Galileo ruling, HC notes that "the AO had based his conclusions and determined the income based upon figures furnished by the assessee, as is apparent from a plain reading of the order"; Thus, rules that the ITAT “ought not to have disturbed that order, without a finding” and accordingly directs ITAT to render specific findings on the questions urged before it:HC

ITAT : Rejects exclusion of strategic investments in Sec 14A-disallowance computation, reverses CIT(A) order

Mumbai ITAT rules against taxpayer & reverses CIT(A), denies relief from Sec 14A in respect of strategic investment made by assessee (a cooperative bank) in its subsidiary company; Observes that the statute does not grant any exemption to strategic investments which are capable of yielding exempt income for arriving at Sec. 14A disallowance; Thus holds that any investment including strategic investments in subsidiary company as well as in other securities which are capable of yielding tax-free income (by way of dividend) shall be included for the purpose of computing disallowance u/s 14A; Relies on Karnataka HC ruling in United Breweries, Bombay HC rulings in Reliance Utilities and HDFC Bank Ltd. and coordinate bench ruling in Uma Polymers Ltd. ; Separately holds that assessee being a cooperative society is not subject to Sec. 40A(2) disallowance in respect of payment towards software and data entry services to its related enterprise, relies on Bombay HC ruling in Manjara Shetkari Saharakari Karkhana Ltd. in this regard:ITAT

CESTAT: Disallows credit of 'outward freight' not included in assessable value; HC ratios inapplicable

CESTAT disallows CENVAT credit of tax paid on outward freight not forming part of ‘assessable value’ of manufactured goods; According to CESTAT, accepting assessee’s contention that value of service claimed as "input service" is not includible in assessable value, would result in availment of undue privilege of credit balance by paying lower tax and retention of tax recovered from customer, which is clearly not intent of CENVAT Credit Rules (CCR); CCR do not purport to be an exemption mechanism, but rather govern the manner in which a fund of ‘non-money’ is acknowledged as means of discharging tax/duty obligation and regulates its operation: Stating that, “foundation of Cenvat Credit Rules, 2004 is inherent relationship with tax liability for without a tax liability on output goods or services, the Rules are merely academic”, CESTAT holds that quantum of credit is linked to ingredients that constitute value for tax liability; Rejects assessee’s reliance on various HC rulings such as ABB Ltd. and Parth Poly Woven Pvt Ltd, stating that they do not pertain to determination of dispute whether credit availed was in confirmity with CENVAT Credit scheme, and on other hand, relies on decision of Maharashtra Scooters Ltd. to conclude that tax paid on outward freight is unavailable to offset duty liability on output goods : Mumbai CESTAT

CBDT issues further clarifications on Direct Tax Dispute Resolution Scheme, 2016

The Circular addresses some of the ambiguities and concerns of taxpayers in connection with the Scheme. Most clarifications, issued at the fag end of the Scheme period, largely highlight the limitations of the Scheme as to the ineligibility of penalty dispute in relation to tax withholding defaults and search assessment cases, and the requirement to withdraw writ petition challenging the constitutional validity of retrospective amendment.

Allahabad HC provides interim stay on levy of entry tax on e-commerce transactions post Constitutional amendment

This Tax Alert gives an update on the recent decision of the Allahabad High Court (HC) wherein a writ petition was filed challenging the legality of the levy and collection of Entry tax on goods brought into local areas of Uttar Pradesh (UP) through online purchase and e-commerce transaction.

The Tribune Trust vs. CIT (P&H High Court)

S. 2(15)/11: Impact of the amendment to the definition of "charitable purpose" in s. 2(15) by insertion of a proviso by the Finance Act, 2008 and whether it supersedes the verdicts in Loka Shikshana Trust 101 ITR 234 (SC), Surat Art Silk Cloth Mfrs. Association 121 ITR 1 (SC) etc explained

Whether CNG in its compressed form having distinct identity from that of natural gas, which acquires trait of 'manufacture', is eligible for deduction u/s 80IA - YES: HC

THE ISSUE IS - Whether when it is clear that compressed natural gas in its compressed form has a distinct identity and character and use, which acquires the trait of 'manufacture', in such case deduction u/s 80IA cannot be denied. YES IS THE VERDICT.

SC: Admits SLP against HC-ruling holding Jindal Group's transaction as colourable device

SC admits assessee’s (Abhinandan Investment Ltd., a Jindal group company) SLP against Delhi HC ruling for AY 1992-93 wherein HC had held that the transaction of renunciation of rights for subscribing to partly convertible debentures (‘PCDs’) of JISCO (another Jindal Group company) was a colourable device to contrive artificial loss; Assessee had renounced rights in PCDs in favour of another group company (‘JSL’) at a significantly lower price than the market value resulting in a significant loss, such loss set-off claim was denied by the HC by regarding it as only a notional loss; Taking note of peculiar facts whereby assessee sold JSL shares during relevant year resulting in substantial capital gains, and at the same time undertaking a transaction of renunciation of rights resulting in huge losses, HC had opined that “In order to avoid paying the tax, the investment companies including the Assessee entered into transactions for renunciation of rights with related companies of the same group. These incestuous transactions were for no other business purpose but to contrive a loss in the hands of..assessee who had incurred a tax liability on account of the gains made”; Relying on SC ruling in Azadi Bachao Andolan and Vodafone International Holding BV, HC had held that “in order to examine whether a transaction is a device or a subterfuge the answer to the question whether the transaction has any reasonable business purpose would be a vital consideration”; HC has thus ruled that the transactions were implemented by the assessee for no commercial purpose but to create a tax loss while ensuring that the rights remained within the Jindal Group

ITAT: Payments by SMS-provider to telecom-operator towards connectivity charges not royalty; Sec. 194J inapplicable

Mumbai ITAT reverses CIT(A)’s order for AY 2011-12, payments made by assessee (a bulk SMS provider) to domestic telecom operator towards connectivity charges not taxable as royalty within the meaning of Sec. 194J; Revenue held that TDS u/s 194J was applicable on payments on the ground that transmission of bulk SMS was pursuant to “use of equipment” of the telecom operator in view of explanation 6 to Sec. 9(1)(vi) [bought with retrospective effect by Finance Act, 2012], as against TDS u/s 194C applied by the assessee and thus regarded assessee as "assessee in default" for short-deduction of TDS; Notes that the payee created customers account and provided IP address, user name and password to the assessee, also notes that the assessee integrated such details in its application for transmitting bulk messages to the telecom operator; Further notes that the payments received by the assessee from its customers, including the IT Department were subject to TDS u/s 194C and that assessee neither had any access/control over any of the connectivity facilities/ server/network of the telecom operator; Thus rules that agreement entered into between the assessee and the telecom operator was in the nature of works contract as “it was kind of standard connectivity facility which has been provided by Telecom Operator and nothing else”:ITAT

The ruling was delivered by ITAT bench of Shri. Amit Shukla and Shri. Ashwani Taneja.

Mr. Mihir Naniwadekar argued on behalf of the assessee while Revenue was represented by Mr. Prakash Mane.

ITAT: Allows depreciation on goodwill claimed during assessment sans filing revised return

Ahmedabad ITAT dismisses Revenue’s appeal for AY 2010-11, allows depreciation on ‘goodwill’ claimed by the assessee – company during the course of assessment proceedings vide a revised computation of income without filing revised return of income; Notes that pursuant to the scheme of arrangement approved by Gujarat HC in AY 2008-09, assessee had acquired the consumer products division and other related intangible assets of the such business which was accounted for as “goodwill” in its books of accounts; Pursuant to subsequent SC ruling in Smifs Securities Ltd., assessee claimed depreciation on goodwill arising on amalgamation which was denied by the AO on the ground that assessee did not file revised return of income to make a “rightful” claim; ITAT follows Bombay HC ruling in Pruthvi Brokers and Shareholders wherein it was held that the AO is bound to entertain rightful claim of deduction made otherwise than by filing a revised return of income; Separately applying the principle of consistency also allows depreciation on non-compete fees, relies on coordinate bench ruling Medicorp Technologies Pvt. Ltd. and Pune ITAT ruling in Serum Institute of India Ltd., also takes note of Revenue’s reliance on Delhi HC ruling in Sharp Business System:ITAT

The ruling was delivered by ITAT Bench of Shri. R.P Tolani and Shri. Manish Borad.

Mr. M. M. Patel with Jigar M. Patal argued on behalf of the assessee while Revenue was represented by Mr. R.I Patel.

ITAT : Allows indexation benefit on long-term capital gains for working MAT liability u/s 115JB

Bangalore ITAT allows assessee’s (a Government undertaking) appeal for AY 2008-09, holds that long term capital gains (‘LTCG’) arrived at by reducing indexed cost of acquisition from asset’s sale proceeds to be considered for computing MAT liability u/s 115JB; Observes that clause (ii) to Explanation to Sec. 115JB provides that amount of income u/s 10 [other than provisions of Sec. 10(38)/ 11/ 12], credited to P&L a/c shall be reduced from book profits for MAT computation; Further observes that the term 'any income’ used in Sec. 10(38) refers to only the amount of LTCG as computed u/s 48 which provides for computation of capital gains after the reduction of cost of acquisition; Thus rules that the “benefit of indexation of cost of acquisition should be given to the assessee while computing long term capital gain for the purpose of section 115J8 of the Act”, relies on SC ruling in Ajantha Pharma and coordinate bench ruling in M.S.R & Sons Investments Ltd.; Separately on noting that the assessee was set-up for infrastructure development allows contribution to Chief Minister's Relief Fund (towards development and reconstruction of infrastructure facility in Karnataka) as business expenditure u/s 37 , relies on SC ruling in Sri Venkata Satyanarayana Rice Mill Contractors Co. in this regard:ITAT

Vodafone-like Sec 9 retrospective amendment cases covered by Direct Tax Dispute Resolution Scheme, 2016

CBDT issues 8 FAQs on the Direct Tax Dispute Resolution Scheme, 2016 (‘Scheme’); CBDT clarifies that assessee would be eligible to opt for the Scheme in case where an

CBDT Directive Reg Reporting Cash Transactions Under Rule 114E Of Income-Tax Rules, 1962

The CBDT has issued a Press Release dated 22nd December 2016 in which it has provided important clarification regarding the requirement to report cash transactions under Rule 114E of the Income–tax Rules, 1962.

Format of a reply of Income Tax Notice.

Case Notice Reply 142(1) - My actual reply for notice under section 142(1)

To the audience ,Note a few particulars
Assesse - Individual FY 2010 11 AY - 2012 13 Received a notice under section 142(1)
----Just to let you know that notices under section 143(2) and 142(1) are notices send by the assessing officer to assess true income for the assee if he is not satisfied of the income declaration by the assesse

Saturday, 17 December 2016

Whether after amendments vide FAs, 2000 & 2003, colour of Section 10A changed from exemption to provision of deduction - YES: SC

THE question before the Apex Court is - Whether after amendments vide FAs, 2000 & 2003 the colour of Section 10A changed from exemption to provision of deduction. YES is the verdict.

The broad questions before the Apex Court are:

HC : E-commerce sales envisaging goods movement from one state to another, constitutes 'inter-state sales'

HC grants relief to WS Retail, sale of mobile phones, computer spare parts and personal healthcare products via online portal, qualify as an ‘inter-state sale’, not liable to local sales tax / VAT; Notes assessee’s contention that for purpose of delivery of goods within Union Territory of Puducherry, assessee installed a delivery hub in Puducherry - E-Kart logistics, which acts as a sorting

Lays down law on loss set-off for Sec 10A/10B units in Yokogawa case

SC rules upon issue of set-off of losses of Sec. 10A/10B units, non- eligible units while computing benefit allowable u/s 10A/10B in Yokogawa India and other cases; Holds that Sec. 10A/10B, post amendment by Finance Act, 2000 w.e.f. April 1, 2001, is a 'deduction provision' and not an 'exemption provision' even though it appears in Chapter III dealing

PROSECUTIONS" Under Income Tax Act

There are some lapses on the part of the assessee which are punishable through the courts. Whenever Income-tax department feels that a particular person has committed a particular offence, a wrongful act or he is guilty of a crime, the department will initiate the proceedings before a magistrate. The proceedings, before the magistrate shall be heard under the Criminal Procedure Code and onus to prove the guilt before the magistrate shall fall, upon the department. The assesee is considered to be an innocent person unless proved otherwise. Punishment given by the department is of monetary nature whereas for some specific offences punishment can be in the shape of imprisonment. But for that, the income-tax authorities have to launch the proceedings in a court of law The following are cases where the person commits offence under the Act, making the guilty persons liable to be punished by the court.

HC : Reverses AAR, Formula One Championship circuit constitutes fixed-place PE

Delhi HC reverses AAR order in the case of Formula One World Championship Ltd. (‘FOWC’ / ‘assessee’, a UK tax resident Company), holds that assessee constituted a fixed place PE in India under Article 5(1) of India-UK DTAA through the international

Whether disallowance of prior period expenditure is jutified, when same was accepted and allowed for previous years in case of other assessee's - NO:HC

THE ISSUE IS - Whether disallowance of prior period expenditure is jutified, when the same was accepted and allowed for previous years in case of other assessee's. NO IS THE VERDICT.

Facts of the case:

Whether Section 50C can have retrospective application in case of transfer of property prior to Oct 01, 2009 - NO: ITAT

THE ISSUE IS - Whether Section 50C of I-T Act can have retrospective application in case of transfer of a property, if the transfer was made prior to Oct 01, 2009. NO IS THE ANSWER.

Facts of the case:

Latest e-Hand Book on Revised GST Law

The Central Government is targeting to implementation the new indirect tax system w.e.f. April 1st, 2017, its called GST.

"The revised drafts of the Model GST Law, iGST Law, GST Compensation Law have been uploaded on our website (Central Board of Excise and Customs). These laws will be considered by the GST Council on December 2-3 and finalized,"

The revised drafts of three Goods and Service Tax laws have been released after incorporating suggestions from stakeholders, the government said on Saturday. These will now be placed before the Goods and Services Tax Council in its next meeting on December 2 and 3.

Revised GST law containing :

Revised Model CGST /SGST Law
Revised IGST Law
GST Compensation Cess Law
GST Rules for registration, payment, return, refund and invoices.

To Download Latest Free e-Handbook on Revised GST Law Click Here

Sunday, 27 November 2016

Tax Notices

In case you are in receipt of any tax notices and you are looking for professional assistance please contact us for the same via e mail at taxbymanish@yahoo.com.

Few Important Points on Revised GST Model Law.

Right from the beginning of talks relating to GST, we all were hoping that with the introduction of GST, there will be “One Nation, one Tax” or at least “One Nation, Few Rates”. But the actual scenario is quite different. GST Council has already decided that there will be 4 rate slab i.e. 5%, 12%, 18%, and 28%. In addition to this there will be a new cess with the name “GST Compensation Cess” for first 5 years on some specified items. Now since government has come out with relevant draft law on this 26^th day of November, 2016, let’s understand this new levy of cess.

CBEC releases revised version of GST Model Law and new draft of State Compensation law

The Draft GST model law was released on June 14, 2016.On Nov. 26, 2016 the CBEC has released the revised version of draft GST model law after considering the suggestions of the stakeholders. It has also released the draft law for compensating the States. The Central Govt. would compensate the States for the revenue loss in the first five years of GST implementation.

Shell Global Solutions International BV vs. DDIT (ITAT Ahmedabad)

Interplay between Article 9 of the DTAA and Transfer Pricing law in the Act explained. While Article 9 is an enabling provision, the TP mechanism under the domestic law is the machinery provision. There is no occasion to read Article 9 as confined to enabling ALP adjustment in respect of only domestic entities. The mere fact that the OECD Commentary etc give examples related to economic double taxation situations does not imply that the Article 9 (1) cannot be applied to other situations

Important Case Laws Relating To Taxability Of Black Money (Demonetisation) & Levy Of Penalty Thereon

1. S. 4: Income – Chargeable as – Assessee’s books actually showing a cash balance of above Rs.38,000 as on the day immediately preceding the date of demonetisation. – In the absence of material before the Tribunal, it could not have held that only 22 out of 28 high denomination notes

Maharashtra Govt. releases 2013-14 Computerized Desk Audit reports; No Mate's receipt for containerized

MVAT:

Maharashtra Govt. releases Computerized Desk Audit (CDA) reports for the period 2013-14 after analyzing electronic data pertaining to e-Returns, audit reports in Form e-704 and annexures thereof uploaded by all dealers; Dealers can submit compliance electronically; Audit parameters, related tax liability and facility for entering interest payments have been made available to the dealer; Compliance should be made on or before December 20, 2016

Tax Due Date Reminder - December 2016

Sr No	Due Date	Related to	Compliance to be made
1	06.12.2016	Service Tax	Payment of Service Tax for the Month of November 2016
2	07.12.2016	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 November 2016. · Deposit TDS from Salaries deducted during the month of November 2016 • Deposit TCS for collections made under section 206C including sale of scrap during the month of November 2016, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of November 2016, if any
3	20.12.2016	VAT	Payment of VAT & filing of monthly return for the month of November 2016 ( TN, KAR & TEL).
4	15.12.2016	Income tax	Payment of Advance tax for the Corporate and Non Corporate assesses –Amount not less than 75% and 60% of advance tax respectively.

IBBI Notifies Insolvency Professionals Regulations 2016

I am pleased to share that the Insolvency and Bankruptcy Board of India has notified the following regulations on 23/11/2016: The same shall come into force from 29/11/2016.

Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations, 2016

http://www.mca.gov.in/Ministry/pdf/IBBIRegulation_25112016.pdf

The above regulations also consists of stipulations pertaining to Registration of Insolvency Professionals (Members of ICAI/ICSI/ICMA/Bar Council etc) and Insolvency Examinations.

For viewing and downloading the complete set of notifications pertaining to the Insolvency and Bankruptcy Code, 2016 till date, one may use the following link:

http://www.mca.gov.in/MinistryV2/insolvency+and+bankruptcy+code.html

Friday, 28 October 2016

HAPPY DHANTERAS

Saturday, 15 October 2016

Assistance required for handling Income Tax Notice.

In case you are in receipt of any income tax notice and you are looking for any assistance to deal with income tax department in this respect, then you can avail our professional services in this regard. Please sent your request to taxbymanish@yahoo.com or call us at 81053-69696.

Assistance required for handling Income Tax Notice.

Sunday, 18 September 2016

Assistance in handling Income tax notice

Monday, 15 August 2016

TAXBYMANISH NOW HAVING 2 MILLION HITS

Dear Patron

Jai Hind.

Its just before the 5 year ago, on the Independence day only, a revolution was being started to share the knowledge on tax in the name of TAXBYMANISH.BLOGSPOT.IN and today because of your kind support and love the effort started 5 years ago had crossed 2 Million Hits. The blog now is having more than 6000 post and being accessed all over the world and able to assist tax professionals with updating tax knowledge.

The blog now continuing its tax knowledge sharing services now in fresh and advance portal at https://taxofindia.wordpress.com/ and within a short span of time having thousands of followers. You too can register your email at the portal to get daily tax alert which will keep you updated with tax knowledge.

Also we are thankful to all of you for your kind response towards all the E- books published by us in the last couple of years. The books published by us are very much assisting tax professionals in their routine compliance and advisory work. In case you want e book of our publication, please drop an email at taxbymanish@yahoo.com.

We once again thankful to you for your blessings and support which help us to reach such a milestone.

Jai Hind.

HAPPY INDEPENDENCE DAY.

Thursday, 23 June 2016

CELEBRATING 700TH POST OF TAX OF INDIA.

https://taxofindia.wordpress.com/2016/06/23/arrest-of-tax-defaulters-cbdt-clarifies/

Saturday, 28 January 2017

Thursday, 26 January 2017

Saturday, 21 January 2017