Adjustment of service tax paid under wrong accounting code is to be allowed0 comments Thursday, February 23, 2012Ahemdabad CESTAT has held in the following case that adjustment of service tax paid under wrong accounting code is to be allowed. In this case assessee was manufacturing a 'diesel generating set'. Besides that it was also providing maintenance of diesel generating sets to its clients. Before taking service tax registration under 'management, maintenance or repair' service, it paid service tax under wrong service tax code relating to 'erection, commissioning or installation' service. PVAT-Three cheques required to be deposited alongwith new VAT-2 form while making payment of VAT by cheque0 commentsRecently a new single challan form namely VAT-2 has been introduced for payment of VAT in Punjab. This form has replaced the earlier three challan forms i.e VAT-2, VAT-2A and VAT-2B. Now for depositing VAT, Punjab Municipal Fund(PMF) and Punjab Municipal Infrastructure Development Fund(PMIDF) only one challan form i.e VAT-2 is required to be filled up.
No Service Tax on Toll collected for user of roads-Clarification of CBEC0 commentsCBEC has clarified in the following circular that Toll collected by SPV for users of roads under an agreement between NHAI or State Authority and concessionaire under PPP or BOT/Operate-transfer model is exempt from service tax. It has been clarified that TOLL is a subject of State List under Constitution hence is not liable to service tax. However if Toll is collected by an independent entity engaged by SPV and for which purpose any commission/charges is paid to such agency by SPV then such commission/charges will be liable to service tax under Business Auxiliary Service. Foreign Lawyers cannot practice in India-Madras High Court0 commentsMadras High Court has held in A.K.Balaji Vs. GOI has held that foreign Lawyers cannot practice law in India but are entitled to visit India for short periods to advice on foreign law & conduct international commercial arbitration Calculation of cost of indexation in case of gifted or inherited capital asset0 comments Tuesday, February 21, 2012Bombay High Court has held in following case that benefit of indexation shall be available from the year when previous owner acquired a capital asset in case such capital asset is acquired under a gift or will. In this case assessee acquired the capital asset under a gift. The donor acquired the capital asset on 29-01-1993 whereas the capital asset was gifted to the assessee on 01-02-2003 and the assessee sold such capital asset on 30-06-2003. Clarification of CBEC-Commitment charges recovered by banks liable to service tax0 comments Sunday, February 19, 2012CBEC has issued following clarification relating to taxability of commitment charges recovered by banks for keeping available the undistributed balance of a loan committment, under the Banking and Financial service. It has been clarified that commitment charges charged by banks is liable to service tax as these are not in the form of interest but they are directly linked to the provision of service provided by the banks under the Banking and Financial Service covered by section 65(105)(zm) of Finance Act, 1994. CBDT exempts salaried persons upto 5 lakh income from return filing in A.Y 2012-130 commentsNOTIFICATION NO 9/2012, Dated: February 17, 2012 In exercise of the power conferred by sub-section (IC) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2012-13, namely:- Consideration deemed to be received u/s 50C cannot be treated as consideration actually received0 comments Tuesday, February 14, 2012Legal fiction created by section 50C is limited to purposes of section 48 alone and does not displace legal fiction created by sections 69, 69A and 69B, this is a verdict which Chandigarh ITAT has given in the following case. The Tribunal in this case has held that a legal fiction u/s 50C cannot be so extended to create another legal fiction to effect that consideration deemed to be so received would also be deemed to generate cash/funds for making investments or meeting expenses, or otherwise displace legal fiction created by sections 69, 69A and 69B. ETO(Mobile Wing) of any district can check goods u/s 51 of PVAT Act anywhere in State of Punjab0 comments Sunday, February 12, 2012Section 51 of Punjab VAT Act, 2005 deals with the establishment of Information collection centres or check posts and inspection of goods in transit. Amongst other officials.Excise and Taxation officer(Mobile wing) have been given power u/s 3 of PVAT Act, 2005 to act as designated officer u/s 51. Which means that such Mobile wing officer can levy penalty and make inspection of goods in transit u/s 51 of Punjab VAT Act, 2005. In every district there is a separate Mobile Wing. In such case the question arises in mind do the powers u/s 51 of ETOs(MW) extend only to their respective districts to which they are posted or it extends to the whole of State of Service tax on construction services-clarification by CBEC0 commentsCBEC has issued following clarifications regarding service tax on construction services covered under clause zzq and zzzh of section 65 of Finance Act, 1994 i.e services in relation to commercial or industrial construction service and service in relation to construction of complex. No penalty where service tax along with interest and late fee deposited before issue of SCN0 comments Saturday, February 11, 2012Mumbai CESTAT has held in the following case that where assessee had paid service tax along with interest and penalty for late filing of return before issue of SCN, no penalty could be imposed on it.
Facts: In this case The assessee was engaged in providing maintenance or repair services. During relevant period though the assessee had collected service tax from service recipients but deposited same with the revenue belatedly along with interest. Besides that it also paid fees for late filing of return. Subsequent thereto, the Assistant Commissioner issued show-cause notice, and on adjudication of same, imposed penalties under sections 76, 77 and 78. The Commissioner (Appeals) upheld said order. Time barred assessment is void ab-initio,no need to deposit 25% u/s 62(5) under PVAT Act, 20050 commentsPunjab VAT Tribunal is a very important case namely Baba Ji Rice Mills, vs. State of Punjab (2012) 41 PHT 197 (PVT) has held that once the case is hit by point of limitation, payment of 25% of the additional demand not essentially to be adjudicated.
It is notable here that as per section 62(5) of Punjab VAT Act, 2005 prior payment of 25% of additional demand is mandatory before any appeal is being heard. No reassessment in the absence of new material even in case of intimation u/s 143(1)(a)0 comments Friday, February 10, 2012Mumbai ITAT has held in a very important following case that when only intimation u/s 143(1) is being issued and no assessment is framed u/s 143(3) even then reaaseessment u/s 147/148 shall be invalid in the absesnce of new material. In this case The AO accepted the ROI filed by the assessee u/s 143(1). He thereafter issued a notice u/s 148 on the ground that the assessee had claimed a deduction for ERP software and that although only 20% of the said expenses was debited to the P&L A/c, the entire amount was claimed as a deduction. The assessee claimed that the reopening was not valid as there was no “new material” in the AO’s possession. Income from licence of property is income from other source and not from house property0 comments Thursday, February 9, 2012I find the following judgement of Karnataka High Court to be an important one, wherein it has been held that income from licence of property should be treated as income under the head other source and not under house property, hence sharing for the readers of the blog. FACTS Under license agreement, the assessee granted license of the scheduled property to the licensee, which, in consideration, agreed to part with 25 per cent of room income collected from the room guests to the assessee. The assessee had shown the said income under the head 'other sources' and had claimed expenses. The Assessing Officer, however, treated that income as income from house property. The Commissioner (Appeals) allowed the assessee's appeal holding that having regard to the terms of the agreement and the facts and circumstances of the case the assessee had rightly shown the income derived under the licensing agreement as income from other sources and the Assessing Officer was not justified in treating the said income as income from house property. The Tribunal confirmed the order of the Commissioner (Appeals). Assessment order without signature of Assessing Officer is invalid1 commentsSection 292B of Income tax Act, 1961 provides that Return of income, etc., not to be invalid on certain grounds.—No return of income, assessment, notice, summons or other proceeding furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act. Thus if there is any mistake or omission or defect in any assessment, notice return, etc, then such notice assessment, return etc will not become invalid merely by such omission, defect or mistake. Word 'individual' used in clause (b) of proviso to section 56(2)(vi) includes only bride or bridegroom0 commentsFacts: During the previous year relevant to the assessment year 2007-08, the assessee on the occasion of the marriage of his daughter received a certain amount through cheques from NRI friends and relatives as shaguns/gifts. The Assessing Officer having noticed (i) that the said amount had been received on the occasion of assessee's daughter marriage and not on the marriage of the assessee, and (ii) that the cheques were in the name of the assessee and the same were credited by the assessee to his bank account, invoked the provisions of section 56(2)(vi) and treated the aggregate gifts exceeding Rs. 50,000 as the assessee's income from other sources. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer. CBEC circular-Meaning of Gross Amount in works contract services under composite scheme0 comments Wednesday, February 8, 2012CBEC has issued the following circular explaining the applicability of Explanation to Rule 3(1) of the Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 w.e.f 07/07/2009 only. The said circular explains that Gross Receipts for the purpose of composite scheme would include free of cost goods and services supplied only in those works contracts execution of which has commenced w.e.f 07/07/2009 only. In respect of other works contracts whose execution has started before 07/07/2009 would not be effected by the said explanation. No Interest charged in assessment order, no interest could be charged in notice of demand0 commentsWhen Assessing officer did not levy any interest in the assessment order, no interest could be charged in the notice of demand issued under Section 156 of the Act, this has been held by Uttrakhand High Court in an important following case. Facts: In this case the Assessing Officer in an order u/s 143(3)/148 wrote"Initiate penalty proceedings under section 271(1)(c) for not offering the above income of taxation. Penalty proceedings under section 271B are also initiated as the assessee’s business turnover exceeds Rs. 40 lakhs and accounts are not audited as per section 44AB issue demand notice and challan.” Sale at duty free shops is outside India, not liable to VAT-Supreme Court0 comments Tuesday, February 7, 2012Supreme Court of India has held in a very important following case that duty free shops are deemed to be outside India and hence sales effected in these duty free shops is sales outside India and during the cource of Import and hence is covered u/s 5 of Central Sales Tax Act, 1961 and hence outside the perview of State Government to levy VAT. Facts: M/s Hotel Ashoka, is managed by India Tourism Development Corporation Limited (hereinafter referred to as `the Corporation’). The Corporation is having its duty free shops at all major International Airports in India. At the said duty free shops, the appellant sells several articles including liquor to foreigners and also to Indians, who are going abroad or coming to India by air. We are concerned with a duty free shops situated at an International Airport at Bengaluru. The appellant is registered as a dealer under the Act as well as under the Central Sales Tax Act, 1956 (hereinafter referred to as `the Central Act’). In the return filed under the Act as well as under the Central Act for the relevant period, the appellant had stated that though liquor, cigarettes, perfumes and food articles were sold at the duty free shops at the Bengaluru International Airport, no tax was payable by the appellant as the goods which had been sold at the duty free shops were sold directly to the passengers and even the delivery of goods at the duty free shops was made before importing the goods or before the goods had crossed the customs frontiers of India. The Appellant contended no tax can be levied under the Act or under the Central Act when the goods are sold in the course of import or before the goods have crossed the customs frontier of India as per the provisions of Section 5 of the Central Act and so far as the Act is concerned, no tax can be levied, if the sale takes place before the goods crosses the customs frontiers of India as no State can tax the sale or purchase of goods which are outside the concerned State i.e. the State of Karnataka in the instant case, as per the provisions of Article 286 of the Constitution of India. Inspite of the above stand of the appellant, the assessing authority directed to pay a sum of Rs.4,20,70,900/- by way of sales tax. Aggreived by it the writ petition was filed before single bench of Karnataka High Court which was dismissed stating that the appellant should exhaust alternative remedy of filing appeal. On further appeal to division bench of the High Court the same was dismissed upholding the decision of single Judge. On Appeal to Supreme Court it was held as under: It is an admitted fact that the goods which had been brought from foreign countries by the appellant had been kept in bonded warehouses and they were transferred to duty free shops situated at International Airport of Bengaluru as and when the stock of goods lying at the duty free shops was exhausted. It is also an admitted fact that the appellant had executed bonds and the goods, which had been brought from foreign countries, had been kept in bonded warehouses by the appellant. When the goods are kept in the bonded warehouses, it cannot be said that the said goods had crossed the customs frontiers. The goods are not cleared from the customs till they are brought in India by crossing the customs frontiers. When the goods are lying in the bonded warehouses, they are deemed to have been kept outside the customs frontiers of the country and as stated by the learned senior counsel appearing for the appellant, the appellant was selling the goods from the duty free shops owned by it at Bengaluru International Airport before the said goods had crossed the customs frontiers.(Para 18) Upon perusal of the aforestated provision of Section 5 of the Central Act, it is clear that a sale or purchase of goods shall be deemed to take place in the course of import of the goods into the territory of India only if sale or purchase takes place before the goods have crossed the customs frontiers of India. Looking to the aforestated legal position, it cannot be disputed that the goods sold at the duty free shops, owned by the appellant, would be said to have been sold before the goods crossed the customs frontiers of India, as it is not in dispute that the duty free shops of the appellant situated at the International Airport of Bengaluru are beyond the customs frontiers of India i.e. they are not within the customs frontiers of India. If this is the factual and legal position, in our opinion, looking to the provisions of Article 286 of the Constitution, the State of Karnataka has no right to tax any such transaction which takes place at the duty free shops owned by the appellant which are not within the customs frontiers of India. (Para 30)They(Revenue)again submitted that `in the course of import’ means `the transaction ought to have taken place beyond the territories of India and not within the geographical territory of India’. We do not agree with the said submission. When any transaction takes place outside the customs frontiers of India, the transaction would be said to have taken place outside India. Though the transaction might take place within India but technically, looking to the provisions of Section 2(11) of the Customs Act and Article 286 of the Constitution, the said transaction would be said to have taken place outside India. In other words, it cannot be said that the goods are imported into the territory of India till the goods or the documents of title to the goods are brought into India. Admittedly, in the instant case, the goods had not been brought into the customs frontiers of India before the transaction of sales had taken place and, therefore, in our opinion, the transactions had taken place beyond or outside the custom frontiers of India. No penalty for non/wrong quoting of PAN of deductees in TDS return, if corrected afterwards in revised return0 comments Monday, February 6, 2012Chandigarh ITAT has held in an important case namely ITO(TDS), Panchkula Vs. Bharat Electronics Ltd.(2012) 47 I.T.Reps 167(ITAT-Chd) that no penalty u/s 272B for wrong quoting of PAN shall be leviable on the deductor when such deductor had quoted invalid PAN in 64 cases out of 645 deductees, which default was corrected by the assessee on coming to know of it and filed revised return with correct PAN after verifying the same from the deductees.
Refunds 2011-12-TDS credit to be allowed if mismatching in TDS doesnot exceed Rs. one lac0 comments Saturday, February 4, 2012Section 143 of the Income-tax Act, 1961 –Assessment – General – Processing of returns of assessment year 2011-12 – Steps to clear backlog Instruction No. 01/2012 [F.NO.225/34/2011-ITA.II], dated 2-2-2012 The issue of processing of returns for the Asst. Year 2011-12 and giving credit for TDS has been considered by the Board. In order to clear backlog of returns, the following decisions have been taken: Analysis-Date of Issue of notice u/s 143(2) is relevant, not the date of service of notice-P&H HC0 comments Friday, February 3, 2012The Punjab & Haryana High Court has in held in the following case that the notice u/s 143(2) shall be deemed to be served on the assessee within time if the notice is issued by the revenue within time. The Hon’ble High court considered the word serve in the proviso to section 143(2) as meaning the date of issue of notice. It is notable here that notice u/s 143(2) of Income Tax Act, 1961 should be served within six months from the end of assessment year to which the notice belongs. Specification of remuneration to partners in partnership deed is necessary-P&H HC0 comments Thursday, February 2, 2012Charitable Trusts-Manner of Application of funds are outside the purview of CIT while examining application for registration u/s 12AA.0 comments Wednesday, February 1, 2012Punjab & Haryana High Court has held in the following case that while granting registration u/s 12AA to Charitable Trusts, Commissioner should examine genuinness of the objectives of the trust so as to grant registration u/s 12AA, rather than the manner of application of funds by the trust. The application of funds by the Trust has to be seen after the return is filed by the trust. It is also held that the quantum of activities undertaken by the trust after its creation cannot be a basis for examining registration application under section 12AA. Due date for submittimg ITR-V for A.Y 2011-12 extended to 31.03.2012 or 120 days whichever is later0 commentsCBDT has extended the due date of submitting ITR-V form to Bangalore for the A.Y. 2011-12 to 31-03-2012 or 120 days whichever is later. ITR-V form is required to be submitted by ordinary or speed post to Bangalore CPC after efiling the return without digital signature, within 120 days of efiling the return
Subscribe to:
Posts
(
Atom
)
Featured PostTCS to apply only on cash portion of sales transaction CBDT clarifiesWelcome clarification by CBDT on TCS on Cash Sale. CBDT vide Circular No. 23/2016 dt. 24 June 2016 has clarified on FAQs of stakeholde... 
AddThisShareThisGet updates via email, just subscribe below and click on activation link afterwards in your emailCategory
Right consultancy at right time avoids unnecessary litigation.
Popular Posts
FollowersAbout Me
FeedjitBlog Archive
WARNING
Nobody is permitted to copy or publish the articles existing on this blog on any website or on any other media without my express permission. Total PageviewsDisclaimer
No one is responsible for any claims if somebody finds that the information/opinions provided in this blog is incorrect and the blog is meant only to share knowledge and exchange views in a meaningful manner.
Useful Links
Powered by Blogger.
|
Popular Posts
Subscribe To
Posts
All Comments
|
