General Circular on Deferment from payment of Entry Tax in Punjab issued by Punjab Govt.0 comments Monday, May 2, 2011As we know the Hon’ble Punjab & Haryana High Court has already stayed the levy of entry tax in Punjab in the case of M/s Bhushan Steel v State of Punjab case on 28-03-2011 and also in other similar writ petitions challenging the levy of entry tax in Punjab on 08-04-2011. But the interim stay were applicable only to the persons who have filed writ petitions and the relief regarding deferment from payment of entry tax was available only to the concerned persons who have filed writ petitions in the High court as a result it was giving rise to filing of more and more writ petitions on the similar issue resulting in multiplicity of litigation in the High Court. Hence in the order of 08-04-2011 the Hon’ble High court expressed its opinion as follows: Penalties, Interest under PVAT Act, CST Act and pre deposit of 25% u/s 62(5) of PVAT Act can be adjusted from excess ITC0 comments Sunday, May 1, 2011Section 15 of PVAT Act 2005 deals with the Net Tax Payable by a taxable person. Sub section 1 of Section 15 provides that the output tax under PVAT Act shall be adjusted from the Input Tax Credit for determining Net Tax Payable by a taxable Person. If any excess ITC is still left then it is to be adjusted from the CST liability under CST Act 1956 at the option of the taxable person as per section 15(2) of PVAT Act. Download order of Guahati High court providing stay on service tax on lawyers0 comments Saturday, April 30, 2011Service Tax on lawyers is also stayed by Gauhati High Court. The Court has held that the matter needs indepth scrutiny hence the levy is stayed. The interim order can be downloaded by clicking the link at below: Share | Service Tax On Lawyers Stayed By Delhi High Court0 comments Friday, April 29, 2011NEWS The Delhi Bar Association has filed a Writ Petition in the Delhi High Court being WP No. 2792 of 2011 to challenge the levy of service-tax on “Legal Consultancy Services”. The High Court has today (29th April 2011) issued notice on the Writ Petition and stayed the application of the impugned provision till the next date of hearing being 23rd May 2011. Share | Another Important judgment of Mumbai ITAT - S. 50C applies to immovable depreciable assets being land and building or both0 comments Thursday, April 28, 2011ITO vs United Marine Academy(Mumbai ITAT) Brief Facts: The assessee sold an office building for Rs. 49.43 lakhs. As the WDV of the said building was also Rs. 49.43 lakhs, no STCG was offered to tax. The AO held that as the stamp duty valuation of the building was Rs. 76.49 lakhs, the consideration had to be taken at that figure u/s 50C. The AO also held that the entire block of assets had not ceased to exist. On appeal, the CIT (A) reversed the AO on the ground that the deeming provisions of s. 50 & s. 50C operate in distinct fields and s. 50C could not apply to depreciable assets. It was also held that the block of assets had ceased to exist. Procedure for regulating refund of excess amount of TDS deducted and/or paid0 commentsCIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)] DATED 27-4-2011The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980. 2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible. Failure to voluntarily apply s. 50C does not attract penalty u/s 271(1)(c)0 commentsThe ITAT Mumbai has given an important decision on levy of penalty u/s 271(1)(c) of Income Tax Act when a person fails to declare capital gain as per the deeming fiction of section 50C, I find this Judgment very useful and sharing it for the benefit of all concerneds. Surcharge on Declared goods other than Wheat and Paddy is confirmed by Punjab Government0 comments Wednesday, April 20, 2011I had given a clarification two days back in an article that surchage is also applicable on declared goods other than Paddy and wheat, since the ceiling rate of tax was enhanced from 4% to 5% by the Central govt in the Budget of 2011-12. Entry Tax on sugar in Punjab is withdrawn0 comments Tuesday, April 19, 2011Entry tax on sugar imported from outside the State of Punjab which was levied in pursuance of provisions of section 3-A of the Punjab Tax on Entry of Goods into Local Areas Act, 2000 @ 4% vide notification No No.S.O.59/P.A.9/2000/S.3-A/2007 dated 15-07-2007, has now been withdrawn by the Government of Punjab. Declared Goods except wheat and paddy will be taxable @ 4.4% under PVAT Act w.e.f 08/04/20110 comments Monday, April 18, 2011Ceiling rate on declared goods have been enhanced from 4% to 5% by Central Govt in the Budget of 2011-12. Which follows that rate of tax on declared goods cannot exceed 5%. Rate of tax on paddy and wheat has been enhanced by the Punjab Govt from 4% to 5% by including these goods in schedule B of PVAT Act 2005. Download Sehaj and Sugam forms and Acknowledgment for A.Y 2011-120 commentsThe most awaited Sehaj and Sugam Forms and Acknowledgment for A.Y 2011-12 are available for download now. These forms can be downloaded here at below links:
Wheat and Paddy made taxable @ 5% under Punjab VAT Act 20050 commentsWheat and Paddy which are declared goods under CST Act 1956, have been added to schedule B of Punjab VAT Act 2005. The goods contained in schedule B of PVAT act 2005 are taxable @ 5%. An additional surcharge @ 10% is also applicable. But such surcharge will not be applicable on wheat and paddy since these goods are declared goods as per section 14 of CST Act 1956. CBDT's circular No 739 dated 25-03-1996 on section 40(b)(v) is invalid- HP High Court0 comments Monday, April 11, 2011Himachal Pardesh High court in an important recent Judgment namely M/s Durga Dass Devki Nandan.V Income-tax Officer, Palampur decided on 11-03-2011 has held the circular No 739 dated 25-03-1996 of CBDT as invalid. The said circular is on the issue of availability of deduction to a partnership firm in relation to remuneration available to partners of a firm u/s 40(b)(v) of Income Tax Act 1961. The said circular stated that the deduction u/s 40(b)(v) will be available only if the remuneration to partners is authorized by the partnership deed by way of specification of amount of remuneration therein or by way of quantification of remuneration. Finance bill 2011 enacted into Finance Act 2011 on 08-04-20112 comments Saturday, April 9, 2011Finance Bill 2011 has been enacted as Finance Act 2011 on 08-04-2011. Finance Bill turns into Finance Act as and when it receives the assent of President of India. The assent has been given on 08-04-2011. This date is important to know various impliactions of the provisions of Finance bill. Share | Remand of penalty orders in appeal whether justified?0 comments Friday, April 8, 2011Meaning of Remand:When an appellate court sends an appealed case back to the trial court for further action, the case is said to be remanded. This usually happens if the trial judge has made an error which requires a new trial or hearing. Welcome amendment: 75% of VAT Refund under PVAT Act to be allowed on furnishing of Indemnity bond0 comments Sunday, March 27, 2011Section 39 of Punjab VAT Act 2005 deals with refund of tax. Some welcome changes have been made in said section by adding a new sub section 1-A to the said section which provides for provisional allowing of 75% of amount of refund claimed under PVAT Act subject to furnishing of indemnity bond in prescribed format and subject to such terms and conditions as may be prescribed. GST Constitution ammendment bill as introduced in Loksabha0 comments Tuesday, March 22, 2011GST : The Constitution (One Hundred and Fifteenth Amendment) Bill, 2011* [BILL NO. 22 OF 2011] A Bill further to amend the Constitution of India Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows :— Short title and commencement 1. (1) This Act may be called the Constitution (One Hundred and Fifteenth Amendment) Act, 2011. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Deductions from works contracts while payment of tax in lump sum scheme under Punjab VAT Act 20050 comments Sunday, March 20, 2011The deductions which are allowable while opting to pay VAT on taxable turnover involved in works contracts in lump sum scheme under Punjab VAT Act 2005 have been prescribed by adding a sub rule 6 to rule 15 of PVAT Rules. There was no lumpsum scheme for payment of VAT on taxable turnover involved in works contracts under PVAT Act 2005 untill sub section 2-A to section 8 was added by an ordinance dated 21-10-2010. Section 8(2-A) runs as under: Scope of scrutiny assessment in AIR cases under Income Tax Act 19610 comments Thursday, March 17, 2011Income Tax Department nowadays selects almost all cases for scrutiny assessment under section 143(2) of Income Tax Act 1961 based upon AIR(Annual Information Return) transactions or through CASS. It is sometimes seen that when a case is selected for scrutiny assessment on the basis of AIR transactions, assessing officer also sometime tend to make additions on grounds other than AIR transactions like on the basis of inadequate withdrawls etc or on the basis of estimated additions.
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General Circular on Deferment from payment of Entry Tax in Punjab issued by Punjab Govt.Monday, May 2, 2011As we know the Hon’ble Punjab & Haryana High Court has already stayed the levy of entry tax in Punjab in the case of M/s Bhushan Steel v State of Punjab case on 28-03-2011 and also in other similar writ petitions challenging the levy of entry tax in Punjab on 08-04-2011. But the interim stay were applicable only to the persons who have filed writ petitions and the relief regarding deferment from payment of entry tax was available only to the concerned persons who have filed writ petitions in the High court as a result it was giving rise to filing of more and more writ petitions on the similar issue resulting in multiplicity of litigation in the High Court. Hence in the order of 08-04-2011 the Hon’ble High court expressed its opinion as follows: Penalties, Interest under PVAT Act, CST Act and pre deposit of 25% u/s 62(5) of PVAT Act can be adjusted from excess ITCSunday, May 1, 2011Section 15 of PVAT Act 2005 deals with the Net Tax Payable by a taxable person. Sub section 1 of Section 15 provides that the output tax under PVAT Act shall be adjusted from the Input Tax Credit for determining Net Tax Payable by a taxable Person. If any excess ITC is still left then it is to be adjusted from the CST liability under CST Act 1956 at the option of the taxable person as per section 15(2) of PVAT Act. Download order of Guahati High court providing stay on service tax on lawyersSaturday, April 30, 2011Service Tax on lawyers is also stayed by Gauhati High Court. The Court has held that the matter needs indepth scrutiny hence the levy is stayed. The interim order can be downloaded by clicking the link at below: Share | Service Tax On Lawyers Stayed By Delhi High CourtFriday, April 29, 2011NEWS The Delhi Bar Association has filed a Writ Petition in the Delhi High Court being WP No. 2792 of 2011 to challenge the levy of service-tax on “Legal Consultancy Services”. The High Court has today (29th April 2011) issued notice on the Writ Petition and stayed the application of the impugned provision till the next date of hearing being 23rd May 2011. Share | Another Important judgment of Mumbai ITAT - S. 50C applies to immovable depreciable assets being land and building or bothThursday, April 28, 2011ITO vs United Marine Academy(Mumbai ITAT) Brief Facts: The assessee sold an office building for Rs. 49.43 lakhs. As the WDV of the said building was also Rs. 49.43 lakhs, no STCG was offered to tax. The AO held that as the stamp duty valuation of the building was Rs. 76.49 lakhs, the consideration had to be taken at that figure u/s 50C. The AO also held that the entire block of assets had not ceased to exist. On appeal, the CIT (A) reversed the AO on the ground that the deeming provisions of s. 50 & s. 50C operate in distinct fields and s. 50C could not apply to depreciable assets. It was also held that the block of assets had ceased to exist. Procedure for regulating refund of excess amount of TDS deducted and/or paidCIRCULAR NO. 2/2011 [F.NO. 385/25/2010-IT(B)] DATED 27-4-2011The procedure for regulating refund of amount paid by the deductor in excess of the tax deducted at source (TDS) and/or deductible is governed by Board circular No. 285, dated 21-10-1980. 2. Subsequent to issue of circular No. 285, new sections have been inserted under Chapter XVII-B of the Income-tax Act, 1961. References have been received by the Board regarding inclusion of these sections also for the purpose of issue of refund of excess amount of the TDS deducted/deductible. Failure to voluntarily apply s. 50C does not attract penalty u/s 271(1)(c)The ITAT Mumbai has given an important decision on levy of penalty u/s 271(1)(c) of Income Tax Act when a person fails to declare capital gain as per the deeming fiction of section 50C, I find this Judgment very useful and sharing it for the benefit of all concerneds. Surcharge on Declared goods other than Wheat and Paddy is confirmed by Punjab GovernmentWednesday, April 20, 2011I had given a clarification two days back in an article that surchage is also applicable on declared goods other than Paddy and wheat, since the ceiling rate of tax was enhanced from 4% to 5% by the Central govt in the Budget of 2011-12. Entry Tax on sugar in Punjab is withdrawnTuesday, April 19, 2011Entry tax on sugar imported from outside the State of Punjab which was levied in pursuance of provisions of section 3-A of the Punjab Tax on Entry of Goods into Local Areas Act, 2000 @ 4% vide notification No No.S.O.59/P.A.9/2000/S.3-A/2007 dated 15-07-2007, has now been withdrawn by the Government of Punjab. Declared Goods except wheat and paddy will be taxable @ 4.4% under PVAT Act w.e.f 08/04/2011Monday, April 18, 2011Ceiling rate on declared goods have been enhanced from 4% to 5% by Central Govt in the Budget of 2011-12. Which follows that rate of tax on declared goods cannot exceed 5%. Rate of tax on paddy and wheat has been enhanced by the Punjab Govt from 4% to 5% by including these goods in schedule B of PVAT Act 2005. Download Sehaj and Sugam forms and Acknowledgment for A.Y 2011-12The most awaited Sehaj and Sugam Forms and Acknowledgment for A.Y 2011-12 are available for download now. These forms can be downloaded here at below links:
Wheat and Paddy made taxable @ 5% under Punjab VAT Act 2005Wheat and Paddy which are declared goods under CST Act 1956, have been added to schedule B of Punjab VAT Act 2005. The goods contained in schedule B of PVAT act 2005 are taxable @ 5%. An additional surcharge @ 10% is also applicable. But such surcharge will not be applicable on wheat and paddy since these goods are declared goods as per section 14 of CST Act 1956. CBDT's circular No 739 dated 25-03-1996 on section 40(b)(v) is invalid- HP High CourtMonday, April 11, 2011Himachal Pardesh High court in an important recent Judgment namely M/s Durga Dass Devki Nandan.V Income-tax Officer, Palampur decided on 11-03-2011 has held the circular No 739 dated 25-03-1996 of CBDT as invalid. The said circular is on the issue of availability of deduction to a partnership firm in relation to remuneration available to partners of a firm u/s 40(b)(v) of Income Tax Act 1961. The said circular stated that the deduction u/s 40(b)(v) will be available only if the remuneration to partners is authorized by the partnership deed by way of specification of amount of remuneration therein or by way of quantification of remuneration. Finance bill 2011 enacted into Finance Act 2011 on 08-04-2011Saturday, April 9, 2011Finance Bill 2011 has been enacted as Finance Act 2011 on 08-04-2011. Finance Bill turns into Finance Act as and when it receives the assent of President of India. The assent has been given on 08-04-2011. This date is important to know various impliactions of the provisions of Finance bill. Share | Remand of penalty orders in appeal whether justified?Friday, April 8, 2011Meaning of Remand:When an appellate court sends an appealed case back to the trial court for further action, the case is said to be remanded. This usually happens if the trial judge has made an error which requires a new trial or hearing. Entry tax in Punjab declared ultravires by P&H High courtWednesday, April 6, 2011Welcome amendment: 75% of VAT Refund under PVAT Act to be allowed on furnishing of Indemnity bondSunday, March 27, 2011Section 39 of Punjab VAT Act 2005 deals with refund of tax. Some welcome changes have been made in said section by adding a new sub section 1-A to the said section which provides for provisional allowing of 75% of amount of refund claimed under PVAT Act subject to furnishing of indemnity bond in prescribed format and subject to such terms and conditions as may be prescribed. GST Constitution ammendment bill as introduced in LoksabhaTuesday, March 22, 2011GST : The Constitution (One Hundred and Fifteenth Amendment) Bill, 2011* [BILL NO. 22 OF 2011] A Bill further to amend the Constitution of India Be it enacted by Parliament in the Sixty-second Year of the Republic of India as follows :— Short title and commencement 1. (1) This Act may be called the Constitution (One Hundred and Fifteenth Amendment) Act, 2011. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Deductions from works contracts while payment of tax in lump sum scheme under Punjab VAT Act 2005Sunday, March 20, 2011The deductions which are allowable while opting to pay VAT on taxable turnover involved in works contracts in lump sum scheme under Punjab VAT Act 2005 have been prescribed by adding a sub rule 6 to rule 15 of PVAT Rules. There was no lumpsum scheme for payment of VAT on taxable turnover involved in works contracts under PVAT Act 2005 untill sub section 2-A to section 8 was added by an ordinance dated 21-10-2010. Section 8(2-A) runs as under: Scope of scrutiny assessment in AIR cases under Income Tax Act 1961Thursday, March 17, 2011Income Tax Department nowadays selects almost all cases for scrutiny assessment under section 143(2) of Income Tax Act 1961 based upon AIR(Annual Information Return) transactions or through CASS. It is sometimes seen that when a case is selected for scrutiny assessment on the basis of AIR transactions, assessing officer also sometime tend to make additions on grounds other than AIR transactions like on the basis of inadequate withdrawls etc or on the basis of estimated additions.
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