Due date for efiling of service tax returns for the period April-Sept 2011 further extended to 6.01.2012

0 comments Thursday, December 29, 2011

F. No. 137/99/2011 – Service Tax
Government of India 
Ministry of Finance 
Department of Revenue 
Central Board of Excise and Customs,
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New Delhi, the 29th December 2011
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Import of Milk and Milk products from China further prohibited

0 comments Tuesday, December 27, 2011
Central Government has extended the prohibtion date till 24.06.2012 for importing Milk and Milk Products (including chocolates and chocolate products  and candies/ confectionary/ food preparations with milk or milk solids as an ingredient) from China. Warlier such prohibtion was imposed by a notification dated 03.01.2011. 


I think the govt has taken the right step. we all know the quality of products imported into India from China. Such eatable products, if their quality is doubtable, must be barred. The step taken is in the right direction.  
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No penalty u/s 76 or 78, if there is bonafide mistake in calculation of service tax-Delhi HC

0 comments Saturday, December 24, 2011
Delhi High court has held in an important following case that if the assessee makes a bonafide mistake in  calculation of service tax then no penalty u/s 76 or 78 can be levied, as it constitutes a reasonable cause for the faliure to deposit due tax.

In this case the defence was that it was paying service tax  as per its bona fide understanding that the service tax was to be paid on the commission retained by the appellant. It was pleaded that the matter of calculation was not clear to it. Therefore, it had been filing its service tax returns on the basis of the commission retained by it and the correct method of computing the service tax was pointed out by the visiting team of the department. Therefore, the allegation of suppression, mis-statement were wrongly attributed to it.
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ITR not to be treated invalid, merely because ITR-V is not received at CPC, if no faliure on the part of assessee-Bombay HC

0 comments Friday, December 23, 2011
Bombay High Court has given an important decision in Crawford Bayley & Company Vs. Union of India & Others wherein it has been held that where the assessee has bonafidely sent ITR-V form to CPC by ordinary post, but it has not been received there with CPC, the return of Income cannot become invalid on this ground. The assessing officer can allow the assessee to file ITR-V u/s 139(9) of Income Tax Act, 1961, if assessment has not been completed as yet.
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CBEC's order regarding documents required for service tax registration

0 comments Friday, December 16, 2011
CBEC has issued an order under Rule 4(1A) of Service Tax Rules, 1994 stating certain documents whioch are rtequired to be produced along with the service tax registration. These documents are:

Copy of PAN
Proof of residence
Constitution of the applicant
Power of attorney in respect of authorised person(s)
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Stay of disputed income tax demands-some important points

0 comments Sunday, December 4, 2011
In scrutiny assessments it is sometimes seen that huge demands are created against the assessee by framing high pitched assessments due to difference in opinion on interpretation of law or interpretation of facts or due to the fact that AO is not satisfied with the explanations offered by the assessee in regard to loan creditors or cash credits or gifts etc.
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Sales to sez unit exempted as zero rated sale and rate of tax deduction on works contractors enhanced to 5% in Punjab

0 comments Friday, December 2, 2011
Section 17 of PVAT Act, 2005 which defines export sales within the scope of section 5 of CST Act i.e export sales as zero rated sales, has been amended so as to add sub-section 2 of section 17 which provides that sale to a unit or developer in special economic zone and inter-unit transaction of goods within SEZ as also a zero rated sales. No output tax is payable on such zero rated sales.
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No reversal of ITC on sale lower than purchase price in pursuance of administered prices of oil companies-Rule 21 of PVAT Rules amended

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Rule 21 of Punjab VAT Rules 2005 has been amended so as to provide a new proviso to Rule 21(2-A) which provides that input tax credit will not be reversed by the taxable person where the sale is effected at lower price than the purchase price in pursuance of the administered prices of oil companies, that is to say Indian Oil Corporation, BPCL, HPCL and HPCL Mittal Energy limited.
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