Intimation regarding Outstanding TDS demand on account of Short Payments from FY 2007-08 onwards - CPC (TDS)

CPC (TDS) has recently issued a demand on account of short payments from Financial Year 2007-08 onwards.  This is a intimation to all Tax Deductors and TDS Deductee.  The details of this intimation is as under :

Whether depreciation on part of expenditure incurred on issue of shares which was later capitalised by assessee can be claimed u/s 32 - NO: HC

THE issue before the Bench is - Whether depreciation on part of expenditure incurred on the issue of shares which was later capitalised by the assessee can be claimed for deduction u/s 32. No is the verdict of the High Court.

Facts of the case

The assessee company is engaged in the business of manufacture and sale including leasing of

Provisions of rule 2(A) of the services tax

S.V. Jiwani vs. commissioner of central Excise & S.T. [2014] 35 S.T.R. 351 (Tri. – Ahmd.)

Provisions of rule 2(A) of the services tax (determination of value ) rules, 2006 applicable only when value cannot be determined u/s.67(1)(2)(3) of the finance act and rule 3(1) of the works contract (composition scheme for payment of services tax ) rules, 2007 is optional.

CBDT issued Instructions related to Non- migration of PANs due to pending Refund Caging

Recently, CBDT has issued an instruction for CsIT related to non-migration of PANs due to Pending Refund caging on 13th March, 2015 under section 139A of the Income Tax Act, 1961.

In view of the issues discussed above, the following instructions are issued:

Last month for Tax Return, updated Tax Return Utility Free Download for A.Y. 2014-15

Recently CBDT Schema of Income Tax Return Forms has updated ITR Utility for Asstt. Year 2014-15 which developed in Excel and JAVA to submit Income Tax Return at the year end month i.e. March-2015.  The both utilities are available from ITR-1 to ITR-7 for all Taxpayee.  The Department of Income has provides this free downloadable Income Tax e-Filing utility.  The both utilities can be run on Windows 7.0 or above and latest Linux operating systems, where Java Runtime Environment Version 7 Update 13 (jre 1.7 is also known as jre version 7) or above is installed.

Whether sum paid by non-resident for restraining assessee from engaging in a particular business that may jeopardise its principal shareholding in a JVC is to be treated as goodwill u/s 55(2) - NO: High Court

THE issue before the Bench is - Whether payment made by a foreign company consequent to a non-competition agreement for purpose of restraining the assessee from engaging in a particular business that will jeopardize its principal shareholding in a JVC of assessee & the foreign company, can be treated as goodwill u/s 55(2)(a)(ii). NO is the answer.

Facts of the case

The assessee is an individual. He has rich experience and proficiency in design, development

Six Important Verdicts Of ITAT On Core Issues

Deepi Arora vs. ITO (ITAT Mumbai)

Though u/s 80-IA(5), the profits of the eligible unit has to be computed on the ‘stand alone’ principle, in a case where the assessee also has non-business income, the brought forward unabsorbed depreciation u/s. 32(2) has to be set off against the eligible profits before computing s. 80-IA deduction

Finance Bill 2015: Critique Of Proposed Amendment To S. 2(15)

Section 2(15) of the Income-tax Act 1961 defines charitable purposes as under:-

2(15) ‘charitable purpose’ includes relief of the poor, education, medical relief, preservation of environment (including water heads, forests and wildlife) and preservations of monuments or places of or objects of artistic or historical interest and the advancement of any other object of general public utility:

Delhi High Court Reverses Special Bench Verdict On Transfer Pricing Of AMP Expenditure

Sony Ericsson Mobile Communications India Pvt. Ltd vs. CIT (Delhi High Court)

Transfer Pricing: The “bright line test” has no statutory mandate and a broad-brush approach is not mandated or prescribed. Parameters specified in paragraph 17.4 of Special Bench verdict in L. G. Electronics are not binding on the assessed or the Revenue. Matter remanded to the Tribunal for de novo consideration because the legal standards or ratio accepted and applied by the Tribunal was erroneous

India publishes rules for implementing roll back of Advance Pricing Agreement

The Finance (No 2) Act, 2014 amended the Indian Tax Law (ITL) to permit roll

back of Advance Pricing Agreements (APAs) for a maximum period of four prior

years with effect from 1 October 2014, subject to such conditions, procedure

Revised Auditor’s Report [SA 700 (R) / SA 705 / SA706]

This time we all have to prepare Audit Report in a Revised Format. In the recent times, there has been an increased focus on role of auditor due to some wrong and some ‘right’ reasons.

Audit consists of 3 major activities:

1) Conduct of the audit (using SAs)

2) Ensuring compliance of AS

Loan and Advances to Employees

Ministry of Corporate Affairs on 10^th March 2015 came out with a general circular 04/2015 regarding clarification with regard to Section 185 and 186 of the Companies Act 2013 on subject of loan and advances to employees.

Two Imp Verdicts On Controversial Issues

M/s Yash Society vs. CCIT (Bombay High Court)

S. 10(23C)(via): Institution consistently generating surplus, utilizing the surplus to buy assets, spending meager amount on treatment of poor patients is not existing “solely for philanthropic purpose” and “not for the purpose of profits”. Fact that exemption has been allowed in the past does n

Whether valuation of any property given on rent by assessee to licensee, is required to be included in total wealth, even if such licencee and assessee treat each other as separate entities - YES: Supreme Court

THE issue before the Bench is - Whether valuation of any property given on rent by an assessee company to its licensee, is required to be included in the total wealth of the assessee, if such licensee and assessee, though under same management, treat each other as separate entities. And the verdict goes against the assessee.

Faccts of the case

Following bhayana builders’ free supply of materials by the service recipient is not includible in the gross value of taxable services. Interest is not chargeable when CENVET credit is reversed before utilization.

Gurmehar construction vs. commissioner of central excise, Raipur [2014] 36 STR 545(Tri. - Del.)

 

karnataka budget Highlights.

TAX PROPOSALS

Goods and Services Tax:

Necessary steps to prepare Trade and Industry and department for smooth transition to Goods and Services Tax (GST) System. Commercial Taxes:

Revenue collection target fixed at Rs.46,250 crores for 2015-16. Value Added Tax:

Norms/guidelines to be followed by Audit Commissionerates in Central Excise and Service tax audits

This Tax Alert summarizes on changes in norms/guidelines to be followed by Audit Commissionerates in Central Excise and Service tax audits vide Circular no 995/2/2015 dated 27 February 2015.

 

Interest on Excess Refund granted to the Taxpayer.

At times it may so happen that the taxpayer is granted excess refund. Section 234D provides for levy of interest on excess refund granted to the taxpayer. In this part you can gain knowledge about various provisions relating to interest on excess refund granted to the taxpayer.

Intellectual property rights

Intellectual property refers to creations of the mind: inventions, literary and artistic works, and symbols, names, and images used in commerce. Intellectual property is divided into two categories:

<!--[if !supportLists]--> 1)      <!--[endif]-->Industrial Property includes patents for inventions, trademarks, industrial designs and geographical indications.

<!--[if !supportLists]--> 2)      <!--[endif]-->Copyright includes literary works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms, and those of broadcasters in their radio and television programs.

Intellectual property rights

All resigned No sign

This is a comical situation under soap opera script but it must have been a practical situation in India. And yes, many dealers of “company retail market” face this situation daily. Sellers want a cut off point beyond which they do not want any liability for any single moment and buyer will take charge on very next moment after the resignation of seller. This cut – off point on time scale is a possible legal defence from all past or future sins. Under Companies Act 1956, dealers has no fine tuned

Samarth sevab – Havi trust vs. commr. Of c. ex., Aurangabad [2014] 36 STR 83 (Tri. - Mum.)

 

Activity of harvesting and transporting sugarcane does not amount to provision of supply of manpower services. Demand cannot be confirmed on the basis of wrong understanding of the appellants or any other person i.e. merely because the appellants had agreed that the activity to be classified as supply of manpower

TIN-NSDL updates Taxpayer's Corner for Payment/e-Payment.

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Recently TIN-NSDL has been updated Taxpayer's Corner for Payment/e-Payment of Tax as TDS, TCS, Self Assessment etc.  The Taxpayers, deductors or collectors can pay direct taxes through Authorised Bank branches either physically, through ATM or through internet.  The details of Type of Challans to be used for tax payments as under :

ITNS 280 :  For depositing Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.

RBI directs for Sukany Smridhhi Account's Transactions reports to Banks

We forward herewith a copy of the Government of India Notification No. G.S.R.863(E) dated December 02, 2014 regarding the Sukanya Samriddhi Account for necessary action at your end. The Government of India, vide this Notification, has notified the Sukanya Samriddhi Account Rules, 2014, which came into force with effect from December 02, 2014.

Whether Income tax Act contains any specific provisions which vest power in authorities to grant stay or permit assessee to pay tax in instalments - NO: HC

THE issue before the Bench is - Whether Income tax Act contains any specific provisions which vest power in authorities to grant stay or permit assessee to pay tax in instalments. NO is the answer.

Facts of the case

The assessee company is engaged in the business of fabric care & personal care. The assessee had filed its return for A.Y 2010-11 declaring a total income of Rs.NIL, after claiming loss of Rs.26,12,03,142/-. While making assessment u/s 143, a notice u/s 143(2) & 142(1) was issued

Rule 6 of CCR, 2004 - New explanation to create new complications

ONE of the major changes made by the Finance Minister in the recent budget is equating the non-excisable goods to exempted goods for the purpose of Rule 6 of the Cenvat Credit Rules ('Credit Rules'). This is made by inserting a new explanation 1 under rule 6(1) which is as follows:

List of Agreements/MoUs signed between India and Mauritius during the visit of the Prime Minister to Mauritius

S.No.	Agreement/MoU	Details/Scope	Signatory from India	Signatory from Mauritius

Understanding rectification of mistake under section 154 of Income tax act with latest case laws.

The Income-tax Authority, may amend his own order u/s 154(1), if there is a mistake apparent from records.

The A.O. is empowered to rectify any order of assessment or refund or any other order passed by him. The A.O. is also empowered to amend intimation or deemed intimation

CBDT authorizes CIT(E) to act as prescribed authority u/s 10(23C) with effect from Nov 15, 2014

SECTION 10(23C)(vi)/(via) OF THE INCOME-TAX ACT, 1961 - EXEMPTIONS - UNIVERSITY/EDUCATIONAL INSTITUTIONS/HOSPITALS - PRESCRIBED AUTHORITY - SUPERSESSION OF NOTIFICATION NO. 76/2014[F.No. 153/41/2007-TPL]/SO 3027(E), DATED 1-12-2014

NOTIFICATION NO. 20/2015 [F.NO. 196/26/2014-ITA.I], DATED 5-3-2015

In pursuance of the provisions contained in sub-clauses (vi) and (via) of clause (23C) of section 10

REPORT ON ANNUAL GENERAL MEETING

This is new feature of Indian Corporate Law. Section 121 of the companies Act 2013 simply says that every listed public company shall prepare a report on each annual general meeting including the confirmation to the effect that the meeting was convened, held and conducted as per the provisions of this Act and the rules made there under. The company shall file with the Registrar a copy of the report within thirty days of the conclusion of the annual general meeting.
Rule 31 of the Companies (Management and Administration) Rules 2014 goes into details.

Whether mere acceptance of proof of commission payments, agreements between parties and affidavits, by AO, will debar him from questioning whether expenses claimed u/s 37 are allowable - NO: Supreme Court

THE issue before the Bench is - Whether mere acceptance of proof of commission payments, agreements between the parties and affidavits, by the AO, will debar him from questioning whether expenses claimed u/s 37 are allowable. NO is the verdict of the Apex Court.

Facts of the case

The assessee company is engaged in the business of manufacturing and sale of beer and other a

Whether, for purpose of Sec 14A read with Rule 8D, there can be a situation where disallowance of expenditure can swallow entire tax exempt income - NO: HC

THE issue before the Bench is - Whether, for the purpose of Sec 14A read with Rule 8D, there can be a situation where disallowance of expenditure can entirely swallow the entire tax exempt income. NO is the answer.

Facts of the case

The assessee is engaged in diverse investment activities and in the course of its business derives income from rent, sale of investments, dividend and interest. For AY 2009-10, it

Real Estate Transactions- Accounting and Taxation aspect

Tax Planning- how far legitimate:

Case of IRC V Duke of Westminister (1936) AC 1 (House of Lords)

CIT V A Raman & Co (1968) 67 ITR 11 (SC)

Mc Dowell & Col (1985) 154 ITR 148 SC Held colourable device cannot be part of tax planning

Azadi Bachao Andolan (2003)  263 ITR 706 SC

Position of a land owner:

Understanding section 145 of Income tax with latest case laws.

 

 

1. Section 145 of the Income Tax Act 1961, lays down that income chargeable under the head “Profit and gains of business or profession” or “Income from other sources” shall, subject to the accounting standards notified by the Central Government in the Official Gazette, be computed in accordance with either cash or mercantile system of

Form 16 shows Deduction of TDS but, 26AS not, what to do ?

This is the Financial Year End month and thus every Taxpayee wants to match Tax Credit Statement (Form 26AS) before submission of Annual Income Tax Return to Assessing Officer, Income Tax

If tax credit statement not match by the Taxpayee, it is more difficult comply paid Tax/TDS which are deducted by Deductor or Employee as well as in case if the Tax payee get refund that time

Whether initiation of Sec 153C proceedings against company which no longer exists on account of its merger with another company is bad in law - YES: ITAT

THE issue before the Bench is - Whether initiation of Sec 153C proceedings against company which no longer exists on account of its merger with another company is bad in law. YES is the answer.

Facts of the case

A Search & Seizure operation u/s 132 of the Act was carried out in the case of Sh. B. K.

New ‘Diverted profits tax’ in the UK & Implications for Indian MNCs

The UK is introducing a new tax that is proposed to be effective from 1 April 2015 – the ‘Diverted Profits tax’ (DPT).  The DPT represents the UK's domestic measures on BEPS Action 7 (Avoidance of PEs) and BEPS Action 9 (Transfer Pricing issues relating to risks and capital).  A number of other countries have indicated that they might look to introduce similar rules.  Some of the key aspects of the DPT are as follows:  

 

Understanding income tax assessment u/s 143 with latest case laws:

 

 

An encounter with the Income Tax Department is usually fraught with stress to say the least. But hearing from the IT department need not always be a bad thing. Sometimes, you might be pleasantly surprised with news of some extra cash (with late fees) being refunded to you!

Did you receive communication on Arrear Demand Notice u/s 245 from Income Tax Department?

Have you got a Notice/Intimation under Section (u/s) 245 of Income Tax Act 1961 from Income Tax department? Even after paying 30% of your income as taxes to the government, they are still sending notices. It’s frustrating isn’t it? But, what can be done sir? When a notice is received, one has to patiently understand the contents, reasons and respond. In the recent past, Notice u/s 245 is most talked about. Almost all the taxpayers have received this notice.

Understanding Income Tax Notice under section 143(1)

When is the Income tax notice under Section 143(1) – Letter of Intimation served?
Three types of notices can be sent under section 143 (1)

1. Intimation where the notice is to be simply considered as final assessment of your returns since the CPC or assessing officer has found the return filed by you to be matching with his computation under section 143 (1).
2. A refund notice ,where Income tax refunds you for extra tax paid, then  you can look forward to the cheque.
3. Demand Notice where the officer’s computation shows shortfall in your tax payment. The notice will ask you to pay up the tax due within 30 days.

Four Important Verdicts On S. 14A/ Rule 8D, JV Agreement + Development Agreement Transfer

CIT vs. Taikisha Engineering India Ltd (Delhi High Court)

S. 14A + Rule 8D: No disallowance can be made if AO does not record satisfication with reference to accounts that assessee's claim is improper. However, if Rule 8D applies, assessee's claim that interest is not disallowable on ground of "own funds" is not acceptable

The decisions relied upon by the Tribunal in the case of Tin Box Co. 260 ITR 637 (Del), Reliance Utilities and

Latest Clarification about deactivation of DSC for Filing of e-Form DIR-11 and DIR-12.

Recently, Ministry of Corporate Affairs has been issued a General Circular No. 03/2015 regarding Clarification relating to filing of e-Form DIR-11 and DIR-12 under the Companies Act, 2013.  This circular clarify that the difficulties faced by stakeholders due to deactivation of Digital signature certificate for filing of e-form DIR-11 and DIR-12.  The details of this General Circular is as under :

General Circular No.03/201S

Relaxation in Penalty for non-payment/short-payment of service tax provision in Finance Act

The Budget 2015 has the intention of the government to align the penal provisions as contained in the Excise and Service tax laws. The penalty section 11AC of the Excise has been substituted and similar changes have been made in the section 76 and 78 of the Finance Act.

Clubbing of Income under the Income Tax Act, 1961

Clubbing of Income under the Income Tax Act, 1961

Clubbing of income means Income of other person included in assessee’s total income, for example: Income of husband which is shown to be the income of his wife is clubbed in the income of Husband and is taxable in the hands of the husband. Under the Income Tax Act a person has to pay taxes on his income. A person cannot transfer his income or an asset which is his one of source of his income to some other person or in other words we can say that a person cannot divert his income to any other person and says that it is not his income. If he do so the income

Whether 'customer base' acquired on account of transfer of business ownership of a company, is eligible for benefit of depreciation u/s 32(1)(ii) - YES: ITAT

THE issue before the Bench is - Whether "customer base" acquired by an assessee on account of transfer of business ownership of a company, is eligible for the benefit of depreciation u/s 32(1)(ii). YES is the answer of the Tribunal.

Facts of the case

The assessee company is engaged in the business of trading in two wheeler brake systems and components. For the year under consideration, the assessee had furnished the return declaring

Promptness in payment of services tax, reflections of transactions in balance sheet and revenue neutrality were evidences of a bonafide case for non-levy of penalty u/ss.77 and 78 of the finance act, 1994.

Calderys India refractories ltd. Vs. C.C.E., Aurangabad [ 2014] 36 STR 102 (Tri.- Mum.)

 

FACTS :

The appellants on detection paid services tax with interest immediately and filed a letter with the department stating that since services tax with interest was paid and since the non-payments was unintentional, no penalties should be levied on them.

Consumer Complaints and Grievances

What do we do when we face some issue with Banks, Mutual Funds, Credit Card company, Insurance Company and so on? The first thing we do is to file a complain with them for our problems and then we wait for their answer. What if we are not satisfied with there reply and want more justice.
We can then lodge a complain with their regulators Ombudsman and grievance cells. Let us see this in more detail.

HAPPY HOLI

Withdrawal of CENVAT Credit of EC & SHE Cess-many unanswered questions

WITH the singlemost recurring reference in the budget speech of the Finance Minister being to "GST", the underlying theme in the present budget has been to set the stage for GST. One such change which is made in the light of forthcoming GST is the withdrawal of Education Cess ("EC") and Secondary and Higher Education Cess ("SHEC") on excise duty with effect from 01.03.2015. As a parallel change, EC and SHEC on service tax have also been withdrawn. However, this will come into force once the enhanced rate of service tax of 14% becomes

Finance Bill, 2015 - Clarifications on Taxability of Indirect Transfer

WORLD cup fever is on and it was expected that Finance Minister would hit a massive six on the Budget Day. Till date,reactions to his first full year budget is a mixed one. But there is lot to cheer for foreign investors, be it indirect transfer, Minimum Alternate Tax on Foreign Institutional Investors or tax rate on royalties and fees for technical services. In subsequent paragraphs we are discussing budget proposals on provisions in respect of indirect transfers.

In the backdrop of the decision of the Supreme Court in the Vodafone case, Finance Act, 2012

Business income of a resident in India, attributable to the PE outside India not exempt from tax in India under Article 7 of the DTAA

Facts
 Telecommunications Consultants India Ltd, („taxpayer‟) is a public sector undertaking was engaged in business of providing full range of consultancy, design and engineering services in all the fields of telecommunication in India as well as abroad.
 For the assessment years 2005-06 and 2006-07 the taxpayer has executed projects in Oman, Mauritius, Netherlands and Tanzania. The income arising from these projects had not been included in the taxable income in India by the taxpayer on the ground that the same are exempted from the tax

Whether if CIT fails to either accept or refuse approval u.s 12AA within six months, registration would be deemed as granted - NO: HC Larger Bench

THE issue before the Bench is - Whether if CIT fails to either accept or refuse approval u.s 12AA within six months, registration would be deemed as granted. NO is the answer.

Facts of the case

The assessee was created by an enactment of UP urban planning and development Act for the objects of planning, Development and Improvement of cities, towns and villages for general public utility. Assessee applied for registration u/s 12A but the same was not disposed of within the time prescribed u/s 12AA(2). Assessee claimed exemption u/s 11 & 12 and exercised the

Whether income from 'deposits in current account' can be construed as trading receipt even if such deposits are admitted by Director of assessee-company as unexplained - NO: HC

THE issue before the Bench is - Whether income from "deposits in the current account" in Indian Overseas Bank can be treated as trading receipt, even if such deposits are accepted by the Directors of the Company as unexplained. NO is the answer.

Facts of the case

The assessee is a public limited company dealing in medical equipments. It is a joint venture company with Electronics Corporation of Tamil Nadu Limited (ELCOT) holding shares in the

Slow – down in realty sector held to be a reasonable cause for invocation of section 80 of the finance act, 1994.

Toyota Construction pvt. Ltd. Vs. commr.of c. ex., Daman [2014] 36 STR 199 (Tri.- Ahmd.)

 

 

Facts:

The appellants filed services tax returns; however, there was a delay in payments of services tax. The department demanded interest and penalty on the same. An appeal was filed with the contention that since there was a slow-down in realty

Special Income Tax Rates under section 115

 

SN	Section	Description	Rate of Income tax	Remarks
1	111A	Tax on short term – equity shares/ business trust – subject to STT	15%	STCG allowed to be reduced by CH VIA deductions.
2	112	Tax on Long term Capital gain Tax on equity LTCG without indexation	20% 10%	STCG allowed to be reduced by CH VIA deductions.

Capital gain or no gain: Taxation for NRIs

Just as you understand the investment options for NRIs in India, it is equally important to know the relevant tax implications. Capital gains are related to capital assets. Whether it would be categorized as long-term or short-term gain depends on the tenure for which you hold the investment. For investments in shares, debentures, mutual funds, bonds or UTI units, the capital gain is a short-term gain if the asset is held for not more than 12 months. In case of other capital assets like jewelry, paintings or immovable property, the asset should be possessed for not more than 36 months from the date of its acquisition to qualify for a short-term capital gain. Capital gains from assets held for longer periods are categorized as long-term capital gains.
 

Non-residents to file India tax returns if they have transactions with India.

I. Introduction

There is sometimes a misconception that a non-resident is required to file a tax return in India only if it has a taxable presence in India in the form of a permanent establishment (PE), and that it is not necessary to file a return if the income derived by the non-resident is either exempt from tax under an applicable tax treaty or if an Indian payer has withheld tax on the income. Two rulings issued by the Authority for Advance Rulings (AAR) in 2012 have sparked a fresh debate on the filing requirement. This

Budget impact on Non-residents

THIS article discusses some of the important Income Tax proposals made in the Finance Bill, 2015 applicable to non-residents. The amendments discussed below are proposed to be effective from 1 April 2015 unless stated otherwise.

Deferral of General Anti-Avoidance Rule

T

Whether when the JV constituents are already taxed at maximum marginal rate, AOP would again be liable to be taxed - NO: HC

THE issue before the Bench is - Whether when the JV constituents are already taxed at maximum marginal rate, the AOP would again be liable to be taxed. NO is the answer.

Facts of the case

The assessee is a joint venture (JV) between M/s Oriental Structural Engineers P. Ltd, New Delhi and M/s KMC Construction Ltd. Hyderabad, which was formed to undertake projects awarded by

Whether assessee is entitled to claim interest u/s 244A on excess self-assessment tax paid u/s 140A - NO: HC

THE issue before the HC is - Whether an assessee is entitled to claim interest u/s 244A on the excess self-assessment tax paid u/s 140A. NO is the answer.

Facts of the case

The assessee is a Government of India undertaking established under the Ministry of Petroleum and Natural Gases, primarily engaged in providing engineering and technical consultancy services and execution of contracts on turn-key basis, predominantly in the oil/gas/hydrocarbon sectors. The assessee had filed its return for A.Y 2006-2007 declaring income of Rs.2,40,13,53,030/-, subsequently followed by revised return declaring income of

Non- Refundable registration fees for e-commerce forms part of value of taxable services livable to services tax.

Commissioner of services tax, Mumbai vs. diotech India ltd.  [2014] 36 STR 96 (tri.-mum.)

 

 

Facts:

The respondents were in the business of providing website and e-learning in electronic form and were also engaged in trading of consumer goods and branded goods and were

Important points in Budget 2015.

Direct Tax. – Corporate

01. Surcharge on tax increased by 2%.    

New tax rates

Corporate Tax	34.608/ 33.063/ 30.9
MAT	21.342/ 20.289/  19.055
DDT	20.358
Buy bay tax	23.072
Foreign Company	43.26 /  42.024/ 41.2

 

E Book – Comprehensive ICAI Budget Publication

 

The Direct Taxes Committee of ICAI jointly with Indirect Taxes Committee of the ICAI has come out with E Book on clause wise comprehensive analysis of Tax Proposals of Union Budget 2015  to enable our members and stakeholders in line with ICAI’s well earned position as the Partner in Nation Building. 
The E book is being hosted on the ICAI Website namely www.icai.org at around 6.00 p.m. on March 2. The same can be downloaded by clicking at http://download1505.mediafire.com/ezbw7fa6nvcg/76dw29xsixzx70q/ICAI_Budget.pdf
 

Amendment in Source rule in respect of interest received by Non resident.

The provisions of section 5 of the Act provide for scope of total income for the purposes of its chargeability to tax. In case of a non-resident person, the chargeability of income in India is on the basis of source rule under which certain categories of income are deemed to accrue or arise in India. The existing provisions of section 9 provide for the circumstances under which income is deemed to accrue or arise in India. Section 9(1) (v) relates specifically to the interest income. The said clause

Whether assessee is entitled to claim interest u/s 244A on excess self-assessment tax paid u/s 140A - NO: HC

THE issue before the HC is - Whether an assessee is entitled to claim interest u/s 244A on the excess self-assessment tax paid u/s 140A. NO is the answer.

Facts of the case

The assessee is a Government of India undertaking established under the Ministry of Petroleum and Natural Gases, primarily engaged in providing engineering and technical consultancy

Simplification of Registration Procedures in Service Tax- S.Tax Registration within 2 Days:-

 

Central Board of Excise and Customs specifies the following documentation, time limits and procedure with respect to filing of registration applications for single premises, which shall come into effect from 1-3-2015.

Promptness in making payment could be considered to be reasonable cause to waive pen-alty u/s. 80 of the finance act, 1994.

36 STR 78 (Tri-bang) Access Equipments vs. comm. Of cus. & c. ex. Hyderabad – IV  [2014]

Facts:

The appellant contended that he was under a bonafide belief that services tax was

Budget 2015 - Hit on Construction Sector - Service Tax.

BY withdrawal of certain important exemptions available for the construction sector, this sector has been hit hard. The exemptions, which are marked in red below are being withdrawn with effect from 01.04.2015.

12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of -

Budget 2015 – Service tax – New chart for Abatement & Reverse Charge

 

We know that the rate of abatement and applicability of RCM (Reverse Charge Mechanism) play an important role while making payment of service tax to vendor and payment of service tax under RCM. In the article we have compiled all the provisions and notifications applicable for Abatement on service tax and Reverse charge mechanism. It would be beneficial for all those who are dealing with processing of vendor bills in relation to service tax and is liable to pay service tax under RCM. 

Section 80 deductions for salaried people.

The Income Tax Act provides that on determination of the gross total income of an assessee after considering income from all the heads, certain deductions therefrom may be allowed. These deductions detailed in chapter VIA of the Income Tax Act must be distinguished from the exemptions provides in Section 10 of the Act. While the former are to be reduced from the gross total income, the latter do not form part of the income at all.

­TDS RATE CHART FINANCIAL YEAR 2015-16 (ASSESSMENT YEAR 16-17)

 Please note that, the below-mentioned rates may get changed in case there are any amendment before the budget approved by President of India.

 

TAXBYMANISH

 

 

The Rate Chart for the Financial Year 2015-16 i.e. Assessment Year 2016-17 is tabulated below.

Important points in Budget 2015. - Direct Tax. – Corporate

 

01. Surcharge on tax increased by 2%.    

New tax rates

Corporate Tax	34.608/ 33.063/ 30.9
MAT	21.342/ 20.289/  19.055
DDT	20.358
Buy bay tax	23.072
Foreign Company	43.26 /  42.024/ 41.2

 

Definition of Resident company redefined in Finance bill, 2015

THE scope of a corporate being included in the definition of a resident as per section 6 has been enlarged.
As per the changes in the provisions of section 6 of the Income Tax Act, 1961 a company shall be said to be resident in India, in any previous year, if -

(i) it is an Indian company, and
(ii) its place of business of effective management, at any time in that year, is in India.

Recovery of credit taken wrongly but not utilized is possible now - First accrued is first utilized - new Rule 14 of CCR, 2004

TAKE a look at the new rule 14 brought by notification 6/2015-CE(NT) dated 01.03.2015.

It reads -

14. Recovery of CENVAT credit wrongly taken or erroneously refunded. -

Major changes proposed in Section 11 AC - No penalty for normal period cases if duty is paid along with interest within 30 days from Show Cause Notice

SECTION 11AC of the Central Excise Act, 1944 is going to be substituted proposing major changes in quantum of penalty to be imposed in Central Excise cases.

As per the new provisions:

For non suppression cases:

Service tax exemption availed by non-resident Commission Agent to Indian exporter withdrawan

NEW DELHI, FEB 28, 2015: TO move towards the proposed GST regime, Mr Arun Jaitley today abolished the Education Cess regime and hiked the Service tax rate from 12% to 14%. The new service tax rate shall subsume the ‘Education Cess' and ‘Secondary and Higher Education Cess'. Additionally the Service Tax Negative List has been reviewed to include Service Tax to be levied on the service provided by way of access to amusement. Service Tax to be levied on service by way of carrying out any processes as job work for production or manufacture of alcoholic liquor for human consumption. All service provided by the Government

What happens to Education Cess credit lying in balance?

THE Finance Minister in his Budget speech declared that the education cesses have been subsumed in basic excise duty and the duty rate is now 12.5%. This will relieve many assessees from the difficulty of keeping accounts and depositing duty under different accounting codes. But, what happens to the credit of education cess and SHE cess lying in balance of CENVAT

'Substantial value' from assets located in India - when does Sec 9 get triggered? - Finance Bill provides an answer

THE Finance Bill, 2015 has taken a substantial step ahead of the last amendment in Section 9 vide Finance Act, 2012 by proposing several changes to address the grey areas which could be potent grounds for conflicting interpretations and future litigations. For addressing these issues, several Explanations have been proposed to be added to Section 9.

Amendments related to provisions onnTDS & TCS in Budget 2015.

Under Chapter XVII-B of the Act, a person is required to deduct tax on certain specified payment at the specified rate if the payment exceeds the specified threshold. The person deducting tax (‘the deductor’) is required to file a quarterly Tax Deduction at Source (TDS) statement containing the details of deduction of tax made during the quarter by the prescribed due date. Similarly, under Chapter XVII-BB of the Act, a person is required to collect tax on certain specified receipts at the

Special depreciation allowance for AP & Telengana.

Section 94 of the Andhra Pradesh Reorganisation Act, 2014 inter alia provides that the Central Government shall take appropriate fiscal measures, including offer of tax incentives to the State of Andhra Pradesh and the State of Telangana, to promote industrialization and economic growth in both the States.

Manufacturing sector plays significant role in the economic growth of any region. Therefore, in order to encourage the setting up of industrial undertakings in the backward areas of the State of Andhra