Scope of prima facie adjustments u/s 143(1) of Income Tax Act enhanced

2 comments Saturday, May 28, 2016
The Finance Act, 2016 has made a very important amendment to section 143(1) of Income Tax Act, 1961, whereby the scope of prima facie adjustments u/s 143(1) has been enhanced while processing the returns. The following four sub-cluases and two provisos to the clause (a) of Section 143(1) have been added to allow for the following adjustments also while processing the returns:

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No entry tax on sugar in Punjab till date

0 comments Wednesday, May 18, 2016
There has been a lot of confusion off late about the levy of entry tax on import of sugar from outside the State of Punjab. The Excise and Taxation Department has been recovering entry tax on sugar imported from outside the state of Punjab.

The new entry tax law legislated by Punjab Government I.e. Punjab Development of trade commerce and Industries (Validation) Act is under challenge before the Punjab & Haryana High Court in CWP no 26998 of 2015. In the said Writ petition while passing an interim order on 27.04.2016 not only the stay on recovery of entry tax on sugar levied under an earlier ordinance I.e Ordinance no 1 of 2015 has been continued by the Hon'ble High Court but also it has been conceded by the Government councel in the court that no notification for leving  entry tax on sugar under new law (i.e validation Act) has been issued till date.

Thus it is very much clear that no entry tax is leviable on sugar imported from outside State of Punjab till date. Hence any recovery made in this regard at the check post by the Department is illegal.
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No local VAT on goods purchased inter-state or in the cource of import in works contracts-SC

1 comments Tuesday, May 3, 2016
The Hon’ble Supreme Court delivering very important judgment with regard to taxability of inter-state works contract. In the case of Commissioner, Delhi VAT  vs ABB Ltd., it has been held that in case the goods are purchased from other States or are imported from outside the country for the purpose of only using in the works contract, then the transaction would be covered under the Central Sales Tax Act and not liable to tax under local VAT act. 
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