Sale of SIM card is not liable for sales tax-Supreme Court

0 comments Saturday, September 17, 2011
  The Supreme Court has held that SIM card cannot be subjected to sales tax. In this case the apellant was paying service tax on activation charges but not on the value of SIM card for which Sales Tax Department charged sales tax. The matter ultimately reached the High Court where it was held that the full amount is chargeable to service tax and no element of sales tax is involved therein. On further appeal, Supreme Court upheld the order of High Court.
Read On

Bad debts to be allowed in the current year-no need to prove them irrecoverable

0 comments
ITAT Mumbai has held that  claim of bad debts will be allowed in the year of written off of such debts. Hon’ble Supreme Court in the case of TRF Ltd. Vs. CIT 323 ITR 397 wherein it has been held that after the amendment of section 36(1)(vii) of the I.T. Act, 1961 w.e.f. April 1, 1989, in order to obtain a deduction in relation to bad debts, it is not necessary for the assessee to establish that the debt, in fact, has become irrecoverable.
Read On
Subscribe to: Posts ( Atom )