Supreme Court questioned Chartered Accountant's Role in Tribunal

0 comments Friday, July 25, 2014
The Supreme Court on Wednesday reacted sharply to the Centre's stand that the purpose behind creation of National Tax Tribunal (NTT) was to associate domain experts in deciding taxation disputes as it was often felt that judges lacked expertise in specialized fields. 
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Due date of Q1 returns of year 2014-15 finally extended, WS-7 to be optional

0 comments Thursday, July 24, 2014
Public Notice
Kind Attention: Dealers/Lawyers/Chartered Accountants/Other Stakeholders

 In the light of a large number of representations received from lawyers and trade bodies that it is difficult for them to work out the stock as required to be filled in WS-7 and in many cases the balance sheet/stock as of 31.3.2014 are not ready yet, the following changes have been made in VAT-15 for the 1st Quarter of 2014-15:
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Earnest money forfeited to be taxable as income-no more a capital receipt

0 comments Monday, July 21, 2014
It has been proposed to insert a new clause in section 56(2) to provide that any advance received on transfer of capital assets shall be chargeable to tax under head 'income from other sources', if such sum is forfeited and the negotiations do not result in transfer of capital assets. A consequential amendment is also proposed to section 2(24) to include such income in the definition of the term 'income'.
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Benefits of section 11 & 12 to be available retrospectively, in prior pending assessments

Under the existing provisions of aforesaid section 12A, conditions to be fulfilled by a trust or an institution before it can claim exemption have been provided under sections 11 and 12 of the Act. It is provided that before any benefit of exemption is claimed, the trust or institution should apply for registration under section 12AA and only after such registration has been granted such trust or institution shall be eligible to claim the benefit of such exemption. In case of trusts or institutions which apply for registration after the 1st day of June, 2007, the registration shall be effective only for the assessment years following the financial year in which application has been made.
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Amendments in section 54, 54F and 54EC influenced by judicial rullings

0 comments Sunday, July 20, 2014
The Finance Bill, 2014 proposes to restrict the benefits under sections 54 and 54F for investment in purchase or construction of one residential house in India. Following two changes are proposed in section 54F:

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Deductor to be deemed as assesee in deafult only in respect of actual tax liability of Non-Resident

0 comments Wednesday, July 2, 2014
CBDT in its instruction No. 2/2014 [F No. 500/33/2013-FTD-l], Dated 26-02-2014 issued in view of the judicial develpments in the cases of GE India Technology P Ltd. vs CIT [2010] 7 and Transmission corporation of AP Ltd v. CIT [1999] 105 Taxmann 742 decided by Supreme Court, has stated that a person who fails to deduct tax on payments made to non-residents, will be held as assessee in default only to the extent of tax actualy payable by such NRI and not in respect of TDS on the whole of amount.
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Lawyers want a share in tax audit pie

0 comments Saturday, June 28, 2014
Opening up a money-spinning career proposition for lawyers in the country, the Bar Council of India (BCI) has written to the Union ministry of finance and tax authorities such as Central Board of Direct Taxes (CBDT) that lawyers must be authorised to sign and furnish tax audit certificates/reports, which has been hitherto the bastion of chartered accountants. 
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Disallowance of input tax credit on the ground that seller is bogus or cancelled dealer-part II

0 comments Sunday, June 15, 2014
Another situation which in many of the cases under the Punjab VAT, which dealers are facing is the disallowance of input tax credit on the ground that the registration of seller of the goods has been cancelled or normally it is stated in the assessment orders that the person from whom goods have been purchased is a cancelled dealer.
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Disallowance of input tax credit on the ground that seller is bogus or cancelled dealer

0 comments Tuesday, June 10, 2014
The system of VAT was introduced in the sales tax law to bring more transparency, efficiency, to remove tax cascading etc. The difficulties which may arise in any system comes to picture only when the system is practically implemented. 
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Constitutional validity of section 39-A of Punjab VAT Act, 2005

0 comments Saturday, May 17, 2014
As per section 39A of Punjab VAT Act, 2005, the Punjab VAT Refund Fund has been constituted and the amount of tax collected as Advance Tax under Section 6(7) shall be credited directly into the said Fund. It has been provided that the Fund shall be maintained and operated by the Department of Excise and Taxation in such manner as may be prescribed. It has also been provided that after allowing the refund claims from the Fund, the balance amount shall be deposited in the Consolidated Fund of the State as may be prescribed. 
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CBDT's clarification on allowance of depericiation in BOT contracts

0 comments Wednesday, April 30, 2014
CIRCULAR NO. 9/2014 [F.NO.225/182/2013/ITA.II], DATED 23-4-2014
It has come to the notice of the Board that disputes have arisen as to whether the expenditure incurred on development and construction of infrastructural facilities like roads/highways on Build-Operate-Transfer ('BOT') basis with right to collect toll is entitled for depreciation under section 32(1)(ii) of the Act or the same can be amortized by treating it as an allowable business expenditure under the relevant provisions of the Income-tax Act, 1961 ('Act').
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Input Tax Credit w.e.f 01.04.2014 under Punjab VAT Act, 2005

2 comments Monday, April 28, 2014
Input tax credit is a concession granted by the State Government against the output tax liability on the sale or purchase of goods within the State jurisdiction. To avail such concession one has to fullfill the conditions imposed by the statue subject to which such concession is available.

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Advance tax on five new items levied under Punjab VAT Act, 2005

0 comments Sunday, April 6, 2014
Punjab Government has levied Advance VAT on 5 new items w.e.f 07.03.2014 these items are as follows:
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Further amendments in items taxable at single stage under Punjab VAT

0 comments Tuesday, April 1, 2014
Notification No. S.O. 23/P.A.8/2005/S.8/2014.- Dated 25th March, 2014

Whereas the State Government is satisfied that circumstances exist, which render it necessary to take immediate action in public interest;

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Supreme Court vacated stay on section 62(5) of Punjab VAT Act, 2005

0 comments Friday, March 14, 2014
Supreme Court of India in Amrit Banaspati Company Limited vs State of Punjab WP(c) 69 of 2013 has vacated stay on implementation and operation of section 62(5) of Punjab VAT Act, 2005, which was granted on 31.01.2014.

However the Supreme Court has stated in its order that there  shall not be any coercive steps for recovery of the amount in question. 

The record of proceedings in the said case is available on supreme court website which is made available herebelow for all concerned.
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Representation to Punjab Govt. on restriction of ITC on iron and steel under Punjab VAT

0 comments Thursday, February 27, 2014

I had prepeared representation on behalf of Iron and steel industry in Punjab, which has been filed with the Punjab Government for withdrawl of latest notification dated 01.02.2014 regarding restriction of input tax credit on iron and steel goods to only two stages and also on closing stock as existing on the date of reduction of tax from 4.95% to 2.75% on iron and steel goods.

The representation covers the difficulties faced by the industry due to the above notification and some light has also been thrown on the constitutional validity of amendment covered under the said notification.
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Implications of newly added Rule 21(8) of Punjab VAT Rules, 2005

0 comments Sunday, February 16, 2014
Recently Rule 21(8) of Punjab VAT Rules 2005 was introduced which provided that where some goods as input or output are lying in stock of a taxable person and where rate of tax is reduced from a particular date, then from that date, input tax credit shall be admissible to the taxable person on sale of goods lying in stock or on using the goods as input for manufacturing taxable goods, at the reduced rate.
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Rahat for small traders in small towns-Punjab Small Traders Rahat Scheme, 2014

0 comments Friday, February 14, 2014
Punjab Government u/s 8-A of the Punjab VAT Act, 2005 has legislated Punjab Small Traders Rahat Scheme, 2014. This scheme has been legislated for the retailers of small towns which falls in the Class-II and Class-III categories notified seperately for this purpose.
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Punjab & Haryana High Court also stays section 62(5) of Punjab VAT Act, 2005

0 comments Wednesday, February 12, 2014
Recently Supreme Court in Amrit Banaspati Company Pvt Ltd vs State of Punjab WP(c) No. 69 of 2014 has stayed the implementaion and operation of section 62(5) of Punjab VAT Act, 2005 which provides for pre-deposit of 25% of additional demand before entertainment of any appeal.
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Outstanding creditors cannot be added to income u/s 41(1) even if such creditors are non traceable

0 comments Tuesday, February 11, 2014
 Section 41(1) of the Act would apply in a case where there has been remission or cessation of liability during the year under consideration subject to the conditions contained in the statute being fulfilled. Additionally, such cessation or remission has to be during the previous year relevant to the assessment year under consideration.
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