SC ruling on CVD exemption

We are pleased to release a Tax Alert on the decision of the Supreme Court wherein the issue before the Court was whether the assessee was entitled to exemption from payment of additional duty of customs (CVD) in terms of Notification no. 6/2002-CE dated 1 March 2002, which provides exemption from payment of Excise duty on certain excisable goods, subject to the fulfilment of the specified conditions.The condition which was applicable to the goods imported by the assessee was that, no CENVAT credit should be availed on inputs or capital goods used in the manufacture of these goods.

Relying on the decisions given by the Supreme Court in the cases of Thermax Pvt. Ltd vs. Collector of Customs (Bombay), New Customs House; Hyderabad Industries Ltd. vs. UoI and Aidek Tourism Services Pvt. Ltd.vs. Commissioner of Customs, New Delhi, it was held that the assessee was entitled to exemption from payment of CVD in terms of Notification no. 6/2002.

The ambiguity has been set at rest by the Supreme Court, thus paving way for benefit of lower CVD, which can be extended to the import of various products which are eligible for concessional rate of Excise duty through an exemption notification. This would certainly benefit the importers of such goods.

law related to superannuation

Part B

Approved superannuation funds⁴⁵

[See sections 2(6), 10(13), 10(25)(iii), 36(1)(iv), ⁴⁶87(1)(e), 192(5), ⁴⁷[206]]

Definitions.

1. In this Part, unless the context otherwise requires, "employer", "employee", "contribution" and "salary" have, in relation to superannuation funds, the meanings assigned to those expressions in rule

Whether summon order passed on basis of criminal complaint is liable to be quashed, when Department had not disclosed vital information to Court which was received from assessee at time of filing complaint - YES: HC

THE issue before the Bench is - Whether a summon order passed on the basis of criminal complaint filed by the Department is liable to be quashed, when the Department had not disclosed vital information to the Court which was received from the assessee at the time of filing the complaint. And the verdict goes against the Revenue.

What is Super Annuation

A lot of employees do not care to check there Superannuation amount , or they are not even aware that it exists. Knowing the amount of your superannuation can be helpful , because then you know that you have that much saving and hence when you plan your investments , you can factor in this information and take better decisions . This small amount make big chunks of your portfolio .

Five Latest Judgements Of The ITAT On Important Controversies

ITO vs. JKD Capital & Finlease Ltd (ITAT Delhi)

S. 275(1)(a): For penalty proceedings initiated on issues unrelated to assessment of income (such as for s. 269SS/ 269T & TDS defaults), time limit runs from date of initiation of penalty proceedings and not from date of CIT(A)'s order

Full credit availed on capital goods

Bombay Paints Ltd vs. Commissioner of Central Excise, Mumbai-II (2015-TIOL-142-CESTAT-MUM)

Full credit availed on capital goods in the first year itself instead of 50%, at the most liable for interest, seeking reversal of credit and imposition of penalty is not warranted.

SUBSIDIARIES AND CONSOLIDATION OF ACCOUNTS

Where a company has any subsidiary, the company shall prepare a consolidated financial statement of the company and of all subsidiaries in the same form and manner as that of its own.  The consolidated financial statement shall also be laid before the annual general meeting along with own financial statement.

The company shall also attach along with its financial statement, a separate statement containing the salient features of the financial statement of its subsidiaries.

Under this section, the word subsidiary shall include associate company and joint venture.

PAN application in Form INC-7 for Companies - (5th Amendment) CBDT

Recently CBDT has issued a notification about application of PAN for Companies intending incorporation can now apply for PAN in Form INC-7 prescribed under Companies Act, 2013.

 

How to avoid Late/Short Payment/deductions and Late filing Defaults ?

One can avoid defaults in the TDS statements, by way of adherence to the following basic principles:

• Timely Payment of total taxes deducted/ collected
• Correct Reporting with regard to PANs, Tax Rate and Challans
• Complete Reporting for all Deductees
• Timely filing of TDS Statements

Whether merely based on some loose papers and cash seized it can be inferred that assessee trust collected capitation fee for admission of students under management quota - NO: HC

THE issue before the Bench is - Whether merely on the basis of some loose papers and cash seized it can be presumed that for all the assessment years the assessee received capitation fee for admission of students in the management quota. NO is the answer.

Facts of the case

Supreme Court rules that benefit granted to excisable goods covered under exemption notification with a condition not to avail CENVAT credit, can also be extended to imports for payment of CVD

 

This Tax Alert on the decision of the Supreme Court wherein the issue before the Court was whether the assessee was entitled to exemption from payment of additional duty of customs (CVD) in terms of Notification no. 6/2002-CE dated 1 March 2002, which provides exemption from payment of Excise duty on certain excisable goods, subject to the fulfilment of the specified conditions.The condition which was applicable to the goods imported by the assessee was that, no CENVAT credit should be availed on inputs or capital goods used in the manufacture of these goods.

How to get your PAN Card details updated?

The permanent account number (PAN) card, issued by the income tax authorities, is now widely used in financial transactions and is the single most convenient proof for identity. So, it may be useful to keep the PAN card updated to reflect your current details. The tax information network (TIN), operated by the National Securities Depository Limited (NSDL), provides this service. This facility

Healthy Practices for Error-Free TDS Returns

Healthy practices for error – free TDS returns has been given below:

1. Deduction/ Collection of Tax at Correct Rates.
2. Timely Deposit of Tax Deducted at Source.

Before Due Date of Weath Tax Return Filing, if Self-assessment Tax paid may exempt from Interest liability.

CHANGEABILITY OF INTEREST UNDER SECTION 17B OF THE WEALTH TAX ACT, 1957 ON SELF ASSESSMENT TAX PAID BEFORE THE DUE DATE OF FILING OF RETURN OF NET WEALTH

Before a day CBDT has issued a circular No. 5/2015 regarding Changeability of Interest u/s. 17B of the Wealth-Tax Act, 1957, on self assessment tax paid before the due date of filing of return of net wealth.

Effective Yield on Tax free Return

Sub – section (7) of Section 186 of the Companies Act 2013 , no loan shall be given under this section at a rate of interest lower than the prevailing yield of one year, three-year, five-year or ten-year Government Security closest to the tenor of the loan.

Rate of interest here directly linked to yield of government securities here. A tax-free bond gives higher yield compare to taxable bond at similar rate of interest.

Five Latest Judgements Of The High Court And ITAT On Important Issues

Nivi Trading Limited vs. UOI (Bombay High Court)

S. 147: Reopening (even of s. 143(1) assessment) on the ground that a specific aspect requires verification is not permissible

In the present case, the AO does not state that any income chargeable to tax has escaped assessment. All that the Revenue desires is verification of certain details and pertaining to the gift. That is not founded on the belief that any income which is chargeable to tax has escaped assessment and hence, such verification is necessary. That belief is not recorded and which alone would enable the Assessing Officer to proceed

 

CBDT circular clarifies that investors are not liable to capital gains tax on rollover of fixed maturity plan

The Central Board of Direct taxes (CBDT), the apex administrative body for taxation in India, recently issued Circular No. 6 of 2015 (dated 9 April 2015), clarifying that rollover of fixed maturity plan (FMP) in accordance with the applicable SEBI (Mutual Funds) Regulations, 1996 (Regulations) will not amount to transfer under the provisions of the Income Tax Laws (ITL) and investors will not be liable to capital gains tax at the time of exercising their option to continue in the same mutual fund scheme.

This alert highlights the above CBDT Circular.

This is a welcome clarification from the CBDT and it addresses the concern which had arisen on account of rollover proposed by AMCs of debt oriented mutual funds post the amendment in the ITL in July 2014 whereby the holding period for the units of FMP to turn long term was extended from 12 months to 36 months. The CBDT Circular being clarificatory in nature would also apply to rollover option exercised by the investors in the past. This clarification is in line with the intent of the present Government to provide certainty and stability of tax regime in India.

Delhi HC upholds Tribunal ruling - TPO not empowered to restructure transaction; Agreed commercial terms to be respected in determining arm's length interest rate charged, Indian PLR not applicable for foreign currency loans

Facts

On the much debated issue of the manner of determination of the arm’s length interest rate for outbound loans denominated in foreign currency, the first High Court (HC) judgement has been delivered by the Delhi HC in the case of Cotton Naturals (I) Private Limited¹ (taxpayer). While doing so, the HC has reconfirmed certain established principles and also provided direction on tax authorities’ powers to restructure transactions and interpretation of global guidance in this regard.

Whether when discrepancies are found in claim of assessee that in a short span of time it moved wind mills from one location to another and installed them, depreciation can be denied - YES: HC

THE issue before the Bench is - Whether when discrepancies are found in the claim of the assessee that in a short span of time it moved the wind mills from one location to another and installed them, depreciation can be disallowed. YES is the answer.

The assessee is a firm carrying on the business of construction of building and land development. It had filed a return of income on 27th October, 2006 in respect of AY 2006-07, declaring total loss of Rs.30,51,480/-. The assessee claimed 50% depreciation on this windmill

Notification No. 11 / 2015 – Service Tax - Regarding implementation of Service Export from India Scheme (SEIS) under FTP 2015-2020

Notification No. 11 / 2015 – Service Tax - Regarding implementation of Service Export from India Scheme (SEIS) under FTP 2015-2020

 New Delhi, the   8^th April, 2015.

 G.S.R. 274 (E). In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the said Act), the