Whether service receiver is liable to remit service tax to service provider, even in the absence of Clause to that effect in theagreement?

Bhagwati Security Services (Regd.) vs. UOl, BSNL [2014] 45 taxmann.com 217 (Allahabad)

FACTS

Petitioners entered into agreement with respondent No.2, i.e., BSNL

टैक्स-फ्री इनकम के 6 तरीके

इनकम टैक्स की चोरी गैरकानूनी है, लेकिन इससे बचना नहीं। यहां बता रहे हैं कुछ ऐसे तरीके जिनसे आप कानूनी तौर पर अपने इन्वेस्टमेंट पर हुई आमदनी पर टैक्स चुकाने से बच सकते हैं :

1. नॉन-वर्किंग वाइफ के जरिए इन्वेस्टमेंट 
अगर आप अपनी वाइफ को कुछ रकम गिफ्ट करते हैं, तो उस पर कोई टैक्स नहीं लगता। हालांकि, अगर इस पैसे को इन्वेस्ट किया जाता है, तो यह आपकी इनकम में जुड़ जाएगा। सेक्शन 60 के तहत यह प्रविजन टैक्स चोरी रोकने के लिए है। अगर आपकी इनकम पर टैक्स लगता है, तो क्या वाइफ के नाम पर इन्वेस्टमेंट से फायदा होगा? हां। यह सिर्फ पहली बार आपकी इनकम में जुड़ती है।

Failure to deduct TDS or pay TDS then Assess in Default u/s. 201

If the deductor fails to deduct TDS or fails to pay TDS then he shall be considered as Assesse in default u/s 220 & 221 for interest & penalty.

This section applies only in case of default in PAYMENT and not delay in PAYMENT.

Whether five independent flats in multi-storey construction can be considered as single residential unit for purpose of claiming exemption u/s 54F - YES: HC

THE issue before the Bench is - Whether five independent flats in a multi-storey construction can be considered as a single residential unit for the purpose of claiming exemption u/s 54F, without considering the intention of the legislature to restrict the reinvestment to only one more residential unit under Section 54F and Whether the phrase "a residential house" can be assumed in plural connotation for the purpose of reinvestment of capital gain for claiming exemption under Section 54F. And the verdict favours the assessee.

Whether when there is no willingness on part of developer to perform his part of contract, it will still be treated as transfer of capital asset u/s 2(47)(v) - NO: ITAT

THE issue before the Bench is - Whether when there is no willingness on part of the developer to perform his part of the contract, it will still be treated as a transfer of capital asset u/s 2(47)(v). NO is the answer.

Facts of the case

The assessee company is engaged in real estate business. It had filed its return, declaring income at Rs. 2,97,79,960. A search was conducted and consequently a notice u/s 153A was issued. In response to the said notice, assessee filed his return showing the same income as was declared

Whether mere taking of CENVAT credit facility without actually using it, would carry interest as well as penalty prior to 17-03-2012

CCE vs. Strategic Engineering (p.) Ltd. [2014] 45 taxmann.com 541 (Madras)

?

FACTS

The respondent was a manufacturer of fibre glass and some other products. During the relevant period (prior to amendment in Rule14 of CCR w.eJ.17-03-2012), the respondent took CENVAT credit facilities erroneously and also reversed the same beforeutilisation. The question of law raised before the High Court was, whether a mere taking of CENVAT credit facility without actually using it, would carry interest as well as penalty

Carry Forward of Business Losses

-

Introduction

It is an inherent feature of a tax system that collects tax on profits but does not provide full

relief for losses (i.e. does not pay out an equivalent ‘negative tax’ on negative profits) that

provision needs to be made to allow unrelieved losses to be carried over and offset against

past and future profits if manifest inequity is to be avoided1. A rational system of taxation

has to take due cognizance of losses suffered by a taxpayer. That’s why there are specific

Is activity of teaching by non-affiliated colleges taxable under "commercial training or coaching service"?

Union ofIndia vs. Kasaragod District Parallel College Association ( 2014 (34)_STR 3~7 (Ker.)

FACTS

Association of Parallel Colleges filed a writ petition challenging constitutional validity of levy of service tax treating parallel colleges as "commercial training and coaching centers." The learned Single Judge had held that provisions of the Act authorising levy of service taxon Parallel Colleges was arbitrary and vocative of Article 14 of The Constitution of India, also that there was no difference betweenregular colleges and Parallel Colleges. It was also clarified that the judgment was rendered on peculiar facts of the case which wasapplicable only to the petitioners and the section was not declared as unconstitutional. 

FILE NIL TDS RETURN ONLINE

This article is applicable to all persons having the TAN No. (for TDS deduction purposes)

Currently, if there is no TDS to be deducted, no action is taken in terms of filing TDS return for the particular quarter.

Due to this practice of non-intimation, the Income Tax department has been finding it diificult to differentiate between the following two types of deductors.

DEPOSITS BY NIDHI COMPANIES

In this post we will discuss deposits accepted Nidhi companies.

Branches [Rule 10]

A Nidhi may open branches, only if it has earned net profits after tax continuously during the preceding three financial years.

A Nidhi may open up to three branches within the district.

If a Nidhi proposes to open more than three branches within the district or any branch outside the district, it shall obtain the prior permission of the Regional Director and intimation is to be given to the Registrar about

Whether, for the purpose of taxation, cost of acquisition of tenancy right is to be taken as NIL in case of enhanced compensation - YES: HC

THE issue before the Bench is - Whether, for the purpose of taxation, cost of acquisition of tenancy right is to be taken as NIL in case of enhanced compensation. And the answer of the High Court is YES.

Facts of the case

The assessee, Late G S Bapna, was wife of Late Kesar Singh, who was a sub-lessee to M/s Delhi Pottery Works (P) Ltd. During the relevant year under consideration, the Govt. of India had transferred 24.1 acres of Arkpur village land in favour of Delhi Pottery through registered lease deed dated 19th Mar, 1924. Subsequently, 19.1 acres out of this land was sub-leased by Delhi

Understanding section 80-IA & IB with latest case laws. Part – IV.

The section is most important sections for infrastructure development companies and manufacturing units as because of this section only, they able to reduce their tax burden and hence accordingly require a detailed  knowledge on this.  In past we had discuss the subject in

TAX AUDIT – CHANGES IN FORM 3CD August, 2014

• TAX AUDIT – CHANGES IN FORM 3CD August, 2014 
• Due Date has been extended On 20th August, 2014, The CBDT has extended the due date for tax audits to 30th November by issuing a notification u/s. 119 Question mark over due date for filing return of income u/s. 139(1) Notification refers only to 44AB and not 139(1)

Shipping business of non-residents.

Applicable section – Section 172 Shipping business of non-residents. 172.     (1) The provisions of this section shall, notwithstanding anything contained in the other provisions of this Act, apply for the purpose of the levy and recovery of tax in the case of any ship, belonging to or chartered by a non-resident, which carries passengers, livestock, mail or goods shipped at a port in India .

CBDT Notifies Norms For Compulsory Scrutiny Of Cases In FY 2014-15

The CBDT has issued Instruction No. 6 of 2014 dated 02.09.2014 and announced the procedure and criteria for compulsory manual selection of cases for scrutiny for FY 2014-15. The guidelines appear to have been issued pursuant to the direction of the Delhi High Court in Joginder Pal Gulati vs. OSD – CPIO

http://www.itatonline.org/info/?dl_id=1625

NIDHI COMPANIES

“Nidhi” means a company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit, and which complies with such rules as are prescribed by the Central Government for regulation of such class of companies. [Section 406 of the Companies Act 2013]

Law relating to Nidhi Companies is the Nidhi Rules 2014. These rules apply to –

Whether donation would become part of corpus where Resolution of donor company stated that shares would be transferred to trust and gift would be towards its corpus - YES: HC

THE issue before the Bench is - Whether donation would become a part of the corpus where the resolution of the donor company stated that the shares would be transferred to the assessee trust and the gift would be towards corpus of the trust. And the verdict favours the assessee.

Facts of the case

INSPECTION, INVESTIGATION AND INQUIRY RULES

While discussing Section 211 of the Companies Act 2013 earlier here, the Central Government shall establish Serious Fraud Investigation Office to investigate fraud related to companies.

Rule 3 of the Companies (Inspection, Investigation and Inquiry) Rules 2014 supplement Section 211(2) of the Act.

Appointment of persons having expertise in various fields [Rule 3]

Whether when assessee, a manufacturer of beer, advances loan to sister concern for setting up new line of business, such assistance can be characterised as expenditure incurred exclusively for business - NO: HC

THE issue before the Bench is - Whether when assessee being a manufacturer of beer and liquor, advances loan to sister concern for setting up a new line of business, such assistance can be characterised as expenditure incurred wholly and exclusively for business of assessee. And the verdict goes against the assessee.

Facts of the case

The assessee is a public limited company carrying on the business of manufacture and sale of beer and liquor. The case of the asessee is that it established a subsidiary company M/s.U.B.Resorts Ltd. which was also incorporated as a company and registered with the Registrar

TAX PLANNING THROUGH HUF

	HINDU UNDIVIDED FAMILY (HUF), AS A TAXABLE ENTITY, CAN BE USED AS A TOOL IN TAX PLANNING :
	In spite of the efforts of the legislature to render this tool as ineffective as possible by the spate of the amendments in the past, it has not lost all its efficacy. Indeed it cannot, for as long as Hindu society is governed by Hindu Law, a Hindu would have the right to own separate property as an individual, as a member of a bigger HUF of his father and the smaller HUF of his own. He can, have properties over which he has substantial control, distributed over the said taxable entities .The properties of the said three entities and consequently their income can further be distributed in a manner most beneficial to him by partition of the families.

International Workers joining on or after 1 September 2014 not covered under the Pension Scheme

 

This is a follow up to our previous  Alert dated 28 August 2014 on the amendments to the Indian social security schemes (Provident Fund Scheme, Pension Scheme and Deposit Linked Insurance Scheme). These amendments are effective 1 September 2014.

Under the amended Pension Scheme, an employee who is not an existing member of the Pension Scheme will not be eligible to become member of the Pension Scheme if his / her monthly salary exceeds INR 15,000 (USD 208).

This amendment is also applicable for International Workers.

Thus, an International Worker assigned to India on or after 1 September 2014 will only be required to become member of the Provident Fund Scheme and will not be required to become member of the Pension Scheme. For such an International Worker, the entire employer and employee share of contributions (24% of monthly salary) will be allocated to the Provident Fund Scheme.

Join Ministry of Finance, government of India on Facebook.

Join Ministry of Finance, government of India on Facebook.

https://www.facebook.com/pages/Ministry-of-Finance-Government-of-India/172154416195975

Whether provisions of Sec 43A will apply even if FCNR loan is taken not for acquisition of capital assets but to repay debentures - NO: HC

THE issue before the Bench is - Whether provisions of Sec 43A will apply even if FCNR loan is taken not for acquisition of capital assets but to repay debentures. And NO is the answer of the High Court.

Facts of the case

The assessee Climate Systems Pvt Ltd had issued 15% unsecured redeemable non-convertible debentures carrying interest @15% per annum. In order to repay the debentures, the assessee borrowed money. The loan was taken against Foreign Currency Non-Resident Loan Account [FCNR(B) Loan]. The advantage was that the loan was availed at a lower rate of interest as

Tax Planning through WILL

'Will' is one of the most important and material document of a person's wish to be carried out after his death. It is the only document, which in its totality comes into operation after the death of the testator. It is not only that a person may devise his moveable or immovable properties by means of a WILL but a person can also legally provide for other matters which are within his domain, just as a person governed under the Hindu Law can confer by means of a will a valid power to his widow to adopt a son to him. The

Appeal against Order of Adjudicating Officer

Any person aggrieved by an order made by the adjudicating officer may prefer an appeal to the Regional Director having jurisdiction in the matter. [Section 454(5)]

Every appeal under sub-section (5) shall be filed within sixty days from the date on which the copy of the order made by the adjudicating officer is received by the aggrieved person and shall be in such form, manner and be accompanied by such fees as may be prescribed. [Section 454(6)]

CBDT sets up a Committee to deal with retroactive “indirect transfer” taxation

This Tax Alert summarizes a recent Order issued by the income tax administrative body, the Central Board of Direct Taxes (CBDT). The CBDT has set up a Committee to decide on cases relating to “indirect transfer” provisions of the Indian Tax Laws (ITL). For all transactions of “indirect transfer” falling prior to 1 April 2012, and where no action has been initiated as on 28 August 2014, the Tax Authority would need to make a reference to and obtain prior approval of the Committee. The Committee will accord an opportunity to the taxpayer to present its case and will endeavor to take a decision within 60 days of the reference. The Tax Authority needs to

The MCA amends norms relating to useful life and residual value; clarifies certain aspects of capitalisation of costs

The Ministry of Corporate Affairs (MCA) vide notification dated 29 August 2014, has made certain amendments to the schedule II which deals with useful lives to compute depreciation under the Companies Act, 2013 (the Act). The amendments shall come into effect from the date of publication in the Official Gazette.

Through general circular dated 27 August 2014, the MCA has issued clarifications regarding capitalisation of costs incurred during extended delay in commercial production (for reasons beyond the developer's control), whether capitalisation of power plants should be unit-wise or project-wise, and applicability of accounting standard on Accounting for fixed assets (AS 10) and Borrowing costs (AS 16) on ‘cost plus project' or 'competitive bid project’.

Our First Notes provides an overview of amendments to the schedule II and the MCA clarification regarding the capitalisation of borrowing costs in the power sector. For the text of the amendments to schedule II issued by the MCA, please click here, and for the text of the MCA clarification,

Delhi Tribunal rules secured lender taking possession of mortgaged assets under SARFAESI Act does not result in “transfer”

This Tax Alert summarizes a recent ruling of the Delhi Tribunal (ITAT) in the case of Rajasthan Petro Synthetics Ltd. (Taxpayer) on the issue whether taking over physical possession of assets by secured lender under the SARFAESI Act amounts to transfer in the hands of the borrower.

Understanding Speculation Profit/ loss with latest case laws: Part – II.

Earlier we had discuss the concept of taxation of speculation/ profit loss in detail. The link of the same is given below:

http://taxbymanish.blogspot.com/2014/05/understanding-speculation-profit-loss.html

Given below we provided additional information’s in respect of taxation of speculation/ profit loss.

Section 43(5) v Section Explanation to section 73

India Taxes- Due Date Alert for the month September 2014

India Taxes- Due Date Alert for the month September 2014

 

Sr No	Due Date	Related to	Compliance to be made
1	05.09.2014	Service Tax	Payment of Service Tax for the Month of August 2014
2	07.09.2014	TDS/TCS (Income Tax)	·        Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of August 2014. ·        Deposit TDS from Salaries  deducted during the month of August 2014 •   Deposit TCS for collections made under section 206C including sale of scrap during the month of August 2014, if any •    Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of August 2014, if any
3	15.09.2014	Income Tax	Payment of second instalment of advance tax (45%) for corporate
4	20.09.2014	STPI	Filing of monthly softex forms
5	20.09.2014	VAT	Payment of VAT & filing of monthly return for the month of August 2014
6	30.09.2014	Income Tax	Income Tax  and Wealth Tax Return filing along with tax audit report excluding Transfer pricing

TDS Applicability on Custom House Agent & Principal Payment.

TDS applicable under Head of Custom House Agent Bill on Status of Agent, which are as under:

U/s. 194C - Shipping Line Charges, Stamp Duty, Insurance etc.,
U/s. 194J - Survey and
U/s. 194C - CFS Charges, Cargo Transportation, Uploading Charges etc.

Condition 1 : If CHA Service Charges & Reimbursement Charges Bill Are Separate.

If Bill is Separate then TDS is not applicable to CHA but if we lift the veil because of "CHA is agent only" then expense addressed to Principal Company, then This Principal Co. is liable to deduct TDS on these

Demand u/s. 143(1) by Income Tax Department and Rectification thereof u/s. 154.

Income Tax Return filing season for certain class of assessees including individuals not falling under tax audit provisions has just been over and by now the Income Tax Department (the Department) has already started processing of these returns. In fact, return filing and processing thereof are an ongoing process for different class of assessees.

At times, income tax payers get intimation of demand from the Department u/s 143(1).

Following is the text of section 143(1) of the Income Tax Act, 1961;

“Where a return has been made u/s 139, or in response to a notice under sub-section (1) of section 142, such return shall

CPC (TDS) reminder for filing, where TDS has been paid, however, Quarterly TDS Statements are not filed.

As per the records of the Centralized Processing Cell (TDS), you have made payments for Tax Deducted, however, no TDS Statements have been filed for any Quarter in FY 2013-14 as yet. In this regard, your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.

MISCELLANEOUS RULES

In this post, we will discuss three miscellaneous rules from the Companies (Miscellaneous) Rules 2014. Rule 9 and 10 are originally in these Rules. Rule 11 is inserted with effect from 17^th July 2014.

Fees for application to Central Government

For the purposes of sub-section (2) of section 459, every application which may be, or is required to be,

Company Law Settlement Scheme 2014

The Central Government issued the Company Law Settlement Scheme 2014 [CLSS-2014] in exercise of power conferred under Section 403 and 460 of the Companies Act, 2014.

Scheme aims to support companies to complete annual filing or got declare themselves dormant.

The Scheme shall be in force from 15^th August 2014 to 15^th October 2014. Under the scheme any

Second Amendment to Companies MBP Rules

On 14^th August 2014, Ministry of Corporate Affairs came out with its second amendment to the Companies (Meeting of Board and its Powers) Rules 2014. These Rules come into effect from the date of publication of these amendment Rules in official Gazette which is 14^th August 2014.

ADJUDICATION OF PENALTIES

The Central Government may by an order published in the Official Gazette appoint Adjudicating Officers for adjudicating penalty under this Act. [Section 454(1)]

The Central Government may appoint any of its officers, not below the rank of Registrar, as adjudicating

Whether when company's name and products are being advertised or financial results being published, there is any rationale for segregating such expenditure Unit-wise - NO: ITAT

THE issue before the Bench is - Whether when company's name and products are being advertised or financial results being published, there is any rationale for segregating such expenditure Unit-wise. And the answer is NO.

Facts of the case

A) The assessee concern has raised a ground with regard to the allocation of certain expenses to the assessee's Dehradun Unit, exigible to deduction u/.80-IC, viz. advertisement expenses, legal and professional expenses, audit expenses. It was in the business of manufacture of rectifiers, transformers, devices, thyristors, etc. for telecommunication, railways and defence departments, operating through different units, of which only the Dehradun unit was an eligible undertaking

Increase in statutory salary ceiling from INR 6,500 to INR 15,000 per month for coverage and contributions for local employees under the Indian social security schemes

 

On 10 July 2014, while presenting the Budget 2014, the Finance Minister of India proposed to increase the statutory salary ceiling from INR 6,500 (USD 108) to INR 15,000 (USD 250) per month under the Indian social security schemes (Provident Fund Scheme, Pension Scheme and Deposit Linked Insurance Scheme) and fix minimum monthly pension benefit at INR 1,000.

Delhi High Court rules 50% as the benchmark to evaluate ‘substantial value’ on taxation of indirect transfers

 

This Tax Alert summarizes a ruling of the Delhi High Court (HC) in a batch of cases, with the lead case being that of Copal Research Limited, Mauritius (Taxpayer) on the issue of taxability of direct/ indirect transfer of shares in certain Indian companies. In a series of transactions, shares of India and US entities were transferred by Mauritius companies. The Taxpayer had approached the Authority for Advance Rulings (AAR) which ruled, among other things, that the transaction would not be taxable in India. Against this ruling, the Tax Authority filed a writ petition in HC whereby, HC was required to evaluate implications under the Indirect Transfer Provision

Dormant Companies

The Companies (Miscellaneous) Rules 2014, for the purposes of sub-section (1) of section 455, a company may make an application in Form MSC-1 along with such fee as provided in the Companies (Registration Offices and Fees) Rules, 2014 to the Registrar for obtaining the status of a Dormant Company in accordance with the provisions of section 455 after passing a special resolution to this effect in the general meeting of the company or after issuing a notice to all the shareholders of the company for this purpose and obtaining consent of at least 3/4^th shareholders (in value). [Rule 3 of the Companies (Miscellaneous) Rules 2014]

How to select TP Valuation Methods.

Factors determine the Most Appropriate method (MAM) rule 10C(2).

·         

       Nature and class of international transactions.

·         Class of associated enterprises and functions performed.

·         Availability and reliability of data

·        

Intangible asset : A Transfer Pricing Appraisal !

THE layman description of intangible asset is understood as distinct from a physical and visible asset. The investors and the stakeholders add on the attribute of future benefits that will be valued for the stake repatriation. Corporate national and international are demanding a common language for identifying and valuing intangible assets.

With Indian Inc in the global ground for takeovers and mergers, intangible assets valuation is becoming captive with the Indian corporate.

Indian economy had the real flavour of intangible assets when India turned out to be an outsourcing hub of the world.

S. 80-IB: An “industrial undertaking” can be formed by taking P&M on hire. Not necessary for the assessee to “own” the P&M. Dept’s tendency to try to unsettle matters strongly disapproved

CIT vs. Jyoti Prakash Dutta (Bombay High Court)

The assessee, a film producer, claimed deduction u/s 80-IB in respect of the profits from his film called ‘Border’. The AO, relying on Textile Machinery Corp 107 ITR 195, denied the claim for deduction on the ground that as the assessee did not own any plant & machinery, he was not an “industrial undertaking” u/s 80-IB(2)(ii). However, the CIT(A) & Tribunal allowed the assessee’s claim. On appeal by the department, HELD dismissing the appeal:

Income generated from sale of carbon credits won't be eligible for sec. 80-IA relief

Where assessee deputed some of its employees to AE to render services of commercial value, TPO was justified in making addition to assessee's ALP holding that a markup of 5 per cent should have been charged in addition to reimbursement of salary expenses by AE

Income on sale of Certified Emission Reduction/carbon credit which is admittedly a benefit arising out of business of assessee, would fall within definition of 'income' under section 2(24)(vd) and, thus, it is chargeable to tax

Even though income on sale of Certified Emission Reduction/carbon credit would form part of profit and gains of business, yet it cannot be treated as

so long as activity is service and even if it is not taxable, it has to be considered as an exempted service - it is not necessary that service should be taxable and an exemption notification exempting from levy of service should have been issued: CESTAT

DURING the period from 10/2005 to March 2008, the appellants had paid service tax due from them by utilizing more than 20% of the credit available. Taking a view that appellants were also providing cargo handling service in respect of exported goods which is not taxable and the same is treated as exempted service and therefore in the absence of separate records for common inputs, the appellant could not have utilized more than 20% of the tax payable from CENVAT credit account, proceedings have been initiated. Such Proceedings have culminated in confirmation of demand for service tax paid from CENVAT credit account during the relevant

Whether registration to a Trust u/s 12AA can be refused merely because it earned some income from housing projects but applied the same towards charitable objectives - NO: HC

THE issue before the Bench is - Whether a trust can be denied registration u/s 12AA when it has earned income from housing projects, but applied them towards charitable objectives. And the verdict goes against the Revenue.

Facts of the case

The assessee applied for the registration u/s 12A. The assessee stated that they are in the process of obtaining permission from various government organisations to have a Heritage Park

Understanding section 10A with latest case laws : Part – IV.

Section 10A is now only effective only for SEZ units and now become obsolete sections for other EOU units STPI etc. However, the  exemption is still disputed at various levels for the company and hence there is necessity to have knowledge of the section.  Earlier we had discuss the same in details and for your reference the link is given below.

recent notification on applicability of service tax on radio taxi and advertisement

1.      Notification No. 18 /2014-ST – dated 25^th August, 2014 - Seeks to notify the date on which Clauses A, B, C of the section 114 of the Finance (No.2) Act 2014 becomes effective.

(i)     Clause A & B of Finance Act, 2014 for Services of radio taxi and services of advertisement other than selling of space for advertisements in print media, such services should be taxable from 1st October, 2014.

All about TDS / TCS Return Statements - FAQs.

Who is required to file e-TDS / e-TCS statement?
As per Income Tax Act, 1961, all corporate and government deductors / collectors are mandatorily required to file their TDS / TCS statements on electronic media (i.e. e-TDS / TCS statements). However, deductors / collectors other than corporate / government can file either in physical or in electronic form.

Whether provisions of Sec 41(1) come into play only when there is cessation of a liability - YES: ITAT

THE issue before the Bench is - Whether provisions of Sec 41(1) come into play only when there is cessation of a liability. And the answer is YES.

Facts of the case

Assessee derives income from construction of civil work of commercial and residential buildings. AO found that there are sundry creditors amounting to Rs.25.92 crores as on 31st March, 2009. It observed that in respect of four creditors, no transaction took place since 1.4.2008 to 31.03.2011. In respect of 19 creditors, notice was issued u/s 133(6) which return back as

Karnataka HC rules that sourcing support activities carried on by a foreign company is entitled to “purchase exclusion” provision

We are pleased to release a Tax Alert which summarizes a recent ruling of the Karnataka High Court (HC) in the case of Mondial Orient Ltd. (Taxpayer) on the issue of whether benefit of purchase exclusion provision i.e., the exclusion provided in the Indian Tax Laws (ITL) for purchase of merchandise for the purpose of export out of India, is available for sourcing support activities of the Taxpayer in India. Having regard to the facts of the case, the HC

India’s Delhi Tribunal rules on TP issues regarding AMP expenses, software support services and CAPM risk adjustments

We are pleased to release a Tax Alert which summarizes a recent ruling of India’s Delhi Income-tax Appellate Tribunal (Tribunal). The Taxpayer in this case is engaged in the distribution of telecom equipment mobile phones and provision of telecom services in India. The Taxpayer’s Associated Enterprise (AE) is the legal owner of the trademarks and brand name (collectively referred to as marketing Intangible Property or Marketing IP) under which the products are distributed. The Taxpayer also provides software development services and marketing and administrative support services to its AEs.

Understanding section 43B disallowance with latest case laws: Part – II.

In past we had discuss the concept of disallowance under section 43 . The link of same is given below:

http://taxbymanish.blogspot.com/2012/04/understanding-section-43-with-latest.html

However, found that taxpayer still find difficult before tax-officer in respect of expenses allowed on cash basis and hence given below more latest case laws in respect of 43B.

§  Provision of excise duty payable on payment basis irrespective of method of accounting followed. Refer, CIT v. Simbhaoli Industries P. Ltd, 365 ITR 173.

Understanding applicability of VAT or CST on inter-state works contracts

In this article an attempt has been made to clarify the position in regard to the levy of VAT or CST on inter-state works contracts.

The State Governments have the power under entry 54 of the State List of the Seventh Schedule to the Constitution of India, to levy tax on the sale and purchase of goods within the jurisdiction of such States. In works contracts there is a deemed sales of the goods incorporated in such contracts  to the contractee,

Short Payment of Default TDS close by using Online Correction Facility

CPC (TDS) advisory for closure of Short Payment Defaults using Online Correction facility before allowing Conso Files

As you may be aware that at the time of filing TDS statements, it is mandatory to quote the challan particulars through which TDS payments have been made. The TDS forms prescribe quoting of such challans and the underlying deductee transactions corresponding to such challans.

REGISTERING COMPANIES AUTHORISED TO REGISTER

Part – I of Chapter XXI deals with companies authorizes to register under this Companies Act, 2013.

Any company formed under any law for the time being in force duly constituted according to law and consisting of seven or more members may at any time register under this Act as a company. This registration shall not be invalid by reason only that it has taken place with a view to the companies being wound up. We have discussed these provisions of Section 366 of the Companies Act, 2013 .

The Companies (Authorised to Registered) Rules 2014 supplement the provisions of the Companies Act

Whether even if investments made by assessee earn no income, expenditure incurred on such investments is liable to disallowed under Rule 8D(2) - NO: ITAT

THE issue before the Bench is - Whether even if investments made by assessee earn no income, expenditure incurred on such investments is liable to disallowed under Rule 8D(2). And the tribunal's answer is NO.

Facts of the case

The assessee is a non-banking financing company engaged in the business of investing in micro-

Myths about Income Tax Return Filing

Myth 1: TDS has already been deducted by the employer, so there is no need to file the Income Tax Return
Fact: Even if the entire tax has been deducted at source by the employer and there is no more tax liability, you still need to file your tax return.
Payment of income tax and filing of income tax returns are two different set of liabilities and are independent

REGISTRATION OF CHARGES RULES

For registration of charge as provided in subsection (1) of Section 77, Section 78 and Section 79, the particulars of the charge together with a copy of the instrument, if any, creating or modifying the charge in Form CHG – 1 (for other than Debentures) or Form CHG – 9 (for debentures), as the case may be, duly signed by the company and the charge holder and filed with the Registrar within a period of thirty days of the date of creation or modification of charge along with the fee. [Rule 3(1) of the Companies (Registration of Charges) Rules 2014]

Whether Sec 80IB benefits are not to be denied merely because ownership of the Undertaking changes from proprietorship to partnership firm - YES: HC

THE issues before the Bench are - Whether Sec 80IB benefits are not to be denied merely because the ownership of the Undertaking changes from proprietorship to partnership firm; Whether on conversion of a proprietorship firm into a partnership firm, there is any transfer of plant and machinery to the new firm and Whether in that case there is only a transfer of industrial undertaking as a whole along with assets and liabilities. And the verdict goes in favour of the assessee.

Service tax being destination based consumption tax, services received outside India by branches of an Indian company outside India not liable for service tax uls. 66A of the Finance Act, 1994

kpit Cummins Infosystems Ltd. vs. Commissioner of central Excise, Pune – I (2013 –TICO –1568 –CESTAT – mum)

Facts:

The overseas branches of the appellant provided services abroad and remitted the consideration for the bills raised by them to its Indian head office after deducting the expenditure incurred. Further, the appellant also had permanent establishments abroad by way of personnel located in the offices of their various clients and so remitted certain amount for the expenditure incurred by them for providing various services. The department

Prospectus of Letter of Offer for IDRs:

The prospectus or letter of offer shall, inter alia, contain the following particulars, namely:-

General information-

• Name and address of the registered office of the company;
• name and address of the Domestic Depository, the Overseas Custodian Bank with the address of its office in India, the Merchant Banker, the underwriter to the issue and any other intermediary which

Understanding about Letters of Credit

Letters of Credit

Purpose The purpose of this document is to provide a general understanding of letters of credit, their use and application. The topics covered are the following:

UNDERSTANDING DISALLOWANCE UNDER SECTION 40 OF INCOME TAX ACT, 1961 WITH LATEST CASE LAWS. Part – II.

Earlier in the part 1  we had discuss in length about various disallowances under section 40 of the Income tax act 1961.  You can refer the same here at

http://taxbymanish.blogspot.com/2011/12/understanding-disallowance-under.html

However, out of this Disallowance for  non deduction of TDS under section 40(a)(i)   I still find a challenge for tax payers and accordingly provided few more recent judgements which may enable you with more knowledge  about section 40(a)(i) disallowances.

e-Filing Form 3CA-3CD & 3CB-3CD (Revised) in JAVA Utility Free Download For Asstt. Year 2014-15.

The posting had been move to another website. Please click the link below to get the access of the same.   


https://taxofindia.wordpress.com/2015/11/28/e-filing-form-3ca-3cd-3cb-3cd-revised-in-java-utility-free-download-for-asstt-year-2014-15/ 

APPLICATION AND PROCEEDS OF IDRs

In earlier post here, we discussed, eligibility and procedure related to issue of Indian Depository Receipt. In this post, we will discuss application for IDRs, its proceeds and Transfer of Indian Depository Receipts.

Application for IDRs

No application form for the securities of the issuing company shall be issued unless the form is accompanied by a memorandum containing the salient features of prospectus in the specified form.

Whether if money is routed indirectly from firm to assessee's account in garb of gifts, same is to be taxed in hands of donor as unexplained income - YES: HC

THE issues before the Bench are - Whether if the assessee has not availed opportunity of being heard as provided by the A.O, the burden shifts on the assessee to prove its bonafide on the basis of the statement made by the donor and whether in case the money is routed indirectly from the firm to the assessee's account under the garb of the gifts, the same is taxable in the hands of donor as unexplained income. And the verdict goes against the assessee.

Facts of the case