VAT on pre-owned cars under PVAT is on a dealer of pre-owned cars only and not on every person17 comments Saturday, October 15, 2011Recently Punjab Govt has imposed VAT on sale of pre owned cars by a dealer vide notification No. S.O. /P.A. 8/2005/S.8/2011 . the relevant extract of the notification is being produced herebelow:
In the said schedule ‘E’, after serial No.9, and the entries relating thereto the following shall be added, namely:- VAT to be levied on Sugar and textiles from April, 2012-News0 commentsCome April, and you may have to pay more for sugar and textiles. All the States have arrived at a consensus to levy the Value Added Tax (VAT) on these two items from April 1, 2012. The Centre had allowed them to levy it from April 1, 2006 in lieu of additional excise duty (AED) on sugar and textiles. But some States withdrew the tax after opposition by the traders. At present only Andhra Pradesh imposes the local tax on both sugar and textiles, while Delhi levies on textiles only. In works contract of constructing national highway purchase of consumables like Diesel, LDO, Furnace oil against C form can be made3 comments Friday, October 14, 2011Rajsthan High court has held in Commercial Tax Officer, Sirohi Vs. Agarwal J.V that a works contractor, for construction of national highway, can purchase diesel., LDO, Furnace oil and other materials against C form. In this case it was argued on behalf of the Department that the pre-condition for availing the benefit under C- Form is that the purchaser must use the goods inter alia for manufacturing or processing; but, this is not the case of the respondent. More so, the respondent is work contractor. Mobile Phones are taxable @ 5.5% in Punjab-Order u/s 85 of PVAT Act, 20050 commentsBefore Sh. A. Venu Prasad IAS, Excise & Taxation Commissioner, Punjab. Name of the Applicant M/s Ingram Micro India Ltd., B-XX-1275, Krishna Nagar, Ghumar Mandi, Ludhiana. Subject: Application U/s 85 of the PVAT Act. Govt planning to allow reopening of income tax returns of past 16 years0 comments Sunday, October 9, 2011Government plans to allow reopening of income tax returns of past 16 years of suspected assessees, as against 6 years at present. The move is aimed at strengthening the mechanism to investigate black money cases.
A Finance Ministry official said in New Delhi that extending the period of reopening returns is to unearth undisclosed income and to empower tax officials to go deeper into the income and expenditure details of suspected persons and business firms. The government is likely to amend the Income Tax Act of 1961 which allows tax officials to reassess tax returns only upto the past six years now. As per the above news if the amendment is carried in the Income Tax Act so as to increase the period of reassessment from 6 Years to 16 years then the assessees will have to keep the record of last 16 years and they could be questioned about the income they have earned upto 16 years ago. Innocent purchaser cannot be disallowed ITC for non payment of tax by seller-Landmark Judgement by P&H HC0 comments Wednesday, October 5, 2011The Punjab & Haryana High court has delivered a landmark judgement namely Gheru Lal Bal Chand Vs. State of Haryana and another on 23/09/2011 disposing off 26 writ petitions challenging the constitutional vires of section 8(3) of Haryana Value Added Tax Act, 2003 and Rule 20(1) and 20(4) of Haryana VAT Rules and the consequent assessment orders. The Common issue involved in these writ petitions was with regard to denial of Input Tax Credit by the Assessing Authority on the ground that the dealers from whom the petitioners have purchased goods, have not deposited full tax in the State Treasury. The purchasers-petitioners have not been held entitled for deduction of Input Tax Credit in terms of the provisions of Section 8(3) of the Haryana Value Added Tax Act, 2003. Procedure for e-payment of Excise duty and Service tax0 comments Saturday, October 1, 2011I am sharing herebelow the procedure for e-payment of excise duty and service tax for the assessees concerned. The first thing required for e-payment is the net banking, if you have it then visit the following link and follow the procedure provided below thereafter:
ELECTRONIC ACCOUNTING SYSTEM IN EXCISE AND SERVICE TAX Govt. is considering adding some new categories of AIR transactions0 comments Thursday, September 29, 2011As per the Income Tax Act, specified entities are required to furnish AIRs of specified financial transactions recorded by them in a financial year to the income tax authority. The income tax department can detect tax evasion by verifying AIR information with the return filed by a person.
Secondary market transactions of Rs 10 lakh or more in a year, insurance premium of above Rs 1 lakh, debit card payments above Rs 2 lakh, fixed deposits and recurring deposits of over Rs 10 lakh each, and cash deposits of Rs 20 lakh in current accounts are likely to be added to the AIR list, which currently comprises eight items. High-value sales and purchases of property are taken as two items. VAT on rice and VAT TDS on works contracts hiked to 5% in Punjab-News0 comments Wednesday, September 28, 2011The Punjab Cabinet today gave approval to enhance the rate of VAT on rice from 4 to 5 per cent while it slashed the VAT on Sevian (Vercelli) from 12.5 per cent to 5 per cent.
Stating this here today, an official spokesman said the Cabinet also approved to convert the Punjab Value Added Tax (Fourth Amendment) Ordinance, 2011 and Punjab Value Added Tax (Third Amendment) Ordinance, 2011 into Acts in the coming session of the Punjab Vidhan Sabha. The (Third amendment) ordinance deals with provisions introduced relating to advance payment of VAT. Punjab VAT-Nakku and Kinni made tax free and tax on pre-owned cars being imposed0 commentsThe Government of Punjab has made Nakku and Kinni the by-products of rice as tax free items by including them in schedule A of the Punjab VAT Act, 2005. It should be noted that Nakku and Kinni except when used by distillieries were taxable @ 5%, but now both the items have been made tax free without any condition. Tax on pre-owned cars have also been imposed at the rate of 3000 per car if the engine capacity doesnot exceed 1000cc and 5000 in other cases. The relevant notification is being produced herebelow: No penalty u/s 271B, If the audit report is obtained within the due date, but return is filed after the due date.0 commentsI have had a discussion lately on the topic whether penalty u/s 271B is imposable in case the audit report u/s 44AB is obtained within the due date of filing the ITR u/s 139 but the ITR is filed after such due date? I have tried to examine such situation out of my Legal conscience as follows:
The due date for filing Income Tax Return for corporate and those assessees who are required to get their accounts audited is 30th september every year. The Due date for furnishing Audit report u/s 44AB to the Income Tax Department is also 30th september every year. F forms misplaced by the department-revisional proceedings on the ground that F forms not available on file, are bad in law0 comments Tuesday, September 27, 2011Punjab VAT Tribunal has held in an important case namely Mahavir Vanaspati Company Vs State of Punjab revision No 13 of 2010 (2011) 17 STM (JS) 278 decided on December 23, 2010 that starting of revisional proceedings on the ground that F forms were not available on the files were bad in law and petitioner could not be held liable to pay CST on the ground that the consignment sales were to be treated as inter-state sales for want of F forms or due to registration of the Consignees firms cancelled or those firms not filing regular returns in those States or paying tax.
No Penalty for loan taken in violation of section 269SS to meet business exigency0 comments Thursday, September 22, 2011Kolkata ITAT has held in the following case that loan taken in violation of section 269SS for payment made to meet business exigency like payment of salary to the employees forms a reasonable cause u/s 273B, hence no penalty can be levied in such case. It should be noted that if there is reasonable cause u/s 273B for violation of section 269SS or 269T then no penalty can be levied thereof. Reasonable cause means the reasons beyond the control of the assessee. Dishonour of electronic funds transfer for insufficiency of funds in the bank account is also an offence0 comments Wednesday, September 21, 2011Reserve Bank of India has issued a clarification regarding dishonour of electronic funds transfer for insufficiency of funds in the bank account. It has been clarifed that dishonour of electronic funds transfer for insufficiency of funds in the bank account is also an offence u/s 25(5) of Payment and Settlement Systems Act, 2007, punishable with two years and twice the amount of electronic funds transfer instruction, or both for dishonour of such electronic funds transfer on par with the penalties stipulated for dishounour of cheques under the Negotiable Instruments Act, 1881. Notice u/s 148 in the name of dead person is invalid-notice u/s 148 issued within limitation period but served after such period is valid-ITAT Agra0 comments Monday, September 19, 2011I have found the following Judgement as very useful one as in this case the ITAT after considering a lot of Judgements has finally decided two matters. One is that notice u/s 148 issued within the limitation period but served on the assessee after limitation period is valid one and secondly the issuance of notice u/s 148 of Income Tax Act in the name of a dead person is invalid and hence the proceedings started on basis of that notice are also invalid. Understanding applicability of VAT or CST on inter-state works contracts0 comments Sunday, September 18, 2011In this article an attempt has been made to clarify the position in regard to the levy of VAT or CST on inter-state works contracts. The State Governments have the power under entry 54 of the State List of the Seventh Schedule to the Constitution of India, to levy tax on the sale and purchase of goods within the jurisdiction of such States. In works contracts there is a deemed sales of the goods incorporated in such contracts to the contractee, hence the tax on such deemed sales of goods can also be levied by States if such deemed sales happen within the jurisdiction of the States. Sale of SIM card is not liable for sales tax-Supreme Court0 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.
Bad debts to be allowed in the current year-no need to prove them irrecoverable0 commentsITAT 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. Disallowance u/s 40A(2)(b) without proper enquiry is not justified-Delhi ITAT0 comments Friday, September 16, 2011ITAT Delhi has held in DCIT Vs M.G.S. Hospitalities that if no proper enquiry has been made by the AO as regard to fair market value of goods and services then no disallowance u/s 40A(2)(b) is justified. It should be noted that section 40A(2) deals with the disallowance of expenditure paid to relatives or other persons as mentioned u/s 40A(2)(b), if such expenditure as claimed by assessee is found to be unreasonable considering the fair market value of goods and services involved in such expenditure and other factors.
Exemption u/s 54F to HUF not to be disallowed if property is purchased from HUF account and with HUF's PAN but is in the name of individuals0 commentsI have find the follwoing judgment of Bombay High Court as an important one. In this case the exemption u/s 54F of Income Tax Act, 1961 to HUF was denied by AO on the ground that the residential property was purchased in the name of individuals instead of HUF. However the Tribunal held that since the property was purchased from the HUF Account and the purchase documents records the PAN of the HUF and the income from the property was also assessed in the hands of HUF, hence the exemption u/s 54F to HUF cannot be denied. The High Court accepted the version of Tribunal and thereby dismissed the appeal of revenue.
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