Representation prepared on behalf of Jalandhar Sales Tax Bar on the issue of retention of ITC on closing stock

0 comments Sunday, September 28, 2014
I along with the President of Jalandhar Taxation Bar  have prepared and written a representation on behalf of Jalandhar Taxation Bar submitted to AETC, Jalandhar II, DETC, Jalandhar Division, ETC, Punjab and Additional ETC, Punjab. This representation is mainly on the issue of retention of ITC on closing stock in case of exporters by the Designated Officers at Jalandhar relying upon section 18(2) of Punjab VAT Act, 2005.
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CAs/CSs are not capable of arguing/ deciding Substantial Questions Of Law

0 comments Thursday, September 25, 2014
The Full Bench of the Supreme Court had to consider whether the National Tax Tribunals Act, 2005, which sought to take away the jurisdiction of the High Courts in tax matters was constitutional. The Full Bench has struck down the entire Act as being unconstitutional on the ground that though “tribunalization” has been allowed subject to safeguards, the NTT Act “crosses the boundary” and “encroaches the exclusive domain” of the High Courts. 
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Paper Board notified for the purpose of E-ICC and E-Trip-some interesting analysis

0 comments Friday, September 12, 2014
The Punjab Excise and Taxation Department has notified Paper Board sold by manufacturers in the State of Punjab for the purpose of E-ICC and E-TRIP under Rule 64-A and Rule 64-B of Punjab VAT Rules, 2005.
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Punjab monthly VAT return Form 16 can now be filed online

0 comments Wednesday, September 10, 2014
The Punjab Excise and Taxation Department has issued a public notice, stating the filing of the monthly return of VAT-16, with effect from September 1, can be done online.
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No reversal of ITC on closing stock of iron and steel goods is warranted under rule 21(8) of Punjab VAT Rules.

0 comments Wednesday, August 27, 2014
Recently while filing the fourth quarter return of year 2013-14, the Excise and Taxation Department, Punjab asked for the closing stock of Iron and steel goods lying in stock of dealers as on 29.01.2014 for the purpose of making reversal on such stock at the rate of 2.20% of the available Input tax credit on such closing stock. The reason for such action was the newly added rule 21(8) in Punjab VAT Rules, 2005, which was introduced w.e.f. 01.02.2014.
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Allahabad High Court Bars Non-Advocates From VAT Practice

0 comments Saturday, August 9, 2014
The Tax Lawyers Association filed a Writ Petition claiming that Rule 73 read with Rule 79(2)(f) of the U.P. Value Added Tax Rules 2008 which permits outsiders to practice in the field of Law before the VAT Authorities under the VAT Act is ultra vires section 33 of the Advocates Act 1961 which provides that only Advocates are entitled to practice before any Court or authority.
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Deputy CM orders withdrawal of amendment in first proviso to section 13(1) of PVAT Act, 2005

0 comments Tuesday, July 29, 2014
Punjab deputy chief minister Sukhbir Singh Badal on Tuesday ordered withdrawal of the amendment made in the first proviso to section 13 (1) of the Punjab VAT Act, 2005 for availing input tax credit and asked the excise and taxation department to draft an ordinance in this regard and present it for approval in the next meeting of the state cabinet.
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Reasoned orders and principle of fairness in administrative actions-a need of the hour

0 comments Monday, July 28, 2014
It is the general tendency of the adminstrative authorities more so of the tax authorities to pass non-speaking orders or to pass orders in violation of principle of fairness and rules of natural justice, without giving any opportunity of being heard to the effected person. The authorities in many case pass orders in gross violation of rules of natural justice.
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Capital asset can be deemed to be transferred by mere agreement to sell for the purpose of exemption u/s 54

0 comments Sunday, July 27, 2014
Where assessee having executed an agreement to sell in respect of a house property, purchased a new residential property within one year from date of agreement to sell, in view of fact that subsequently sale deed could not be executed within prescribed time for reason that assessee had been prevented from dealing with said residential house by an order of a competent court, a valid 'transfer' took place within meaning of section 2(47) by executing agreement to sell and, consequently, relief under section 54 was to be granted to assessee in respect of purchase of new residential property.
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Inncorrect or erroneous claim under VAT does not attract penalty proceedings

Madhya Pradesh High Court in Super Traders v Additional Commissioner of Commercial Taxes has held that incorrect or erroneous claim not sustainable under VAT law would not make a case of concealment of taxable item, therefore penalty is not leviable in such case.
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Changes made by Finance (No. 2) Bill, 2014 as passed by the Lok Sabha


1. Unlisted securities and units of MF transferred between 1-4-2014 and 10-7-2014 shall be deemed to be long-term capital assets, if held for more than 12 months:
It is proposed that unlisted shares and units of a mutual fund (other than Equity oriented mutual fund) shall be categorized as long-term capital assets only if they are held for more than 36 months. The existing provision requires holding them for a period of more than 12 months so as to categorize them as long-term capital assets.
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Interest on loan taken against FDRs held allowable as it was incurred exclusively to keep intact income from FDRs

IT: In order to protect interest earnings from fixed deposits and to meet her financial needs, when an assessee raises a loan against the fixed deposits, so as to keep the source of earning intact, the expenditure so incurred in wholly and exclusively to earn fixed deposit interest income has to be allowed as deduction
IT: Once the assessee claims that the actual market value of the land or building is less than stamp duty valuation adopted by the authorities, it is incumbent upon the Assessing Officer to refer the valuation of said land of building to the Departmental Valuation Officer
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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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