Service tax on legal services under reverse charge mechanism stayed by Delhi High Court0 comments Tuesday, September 25, 2012
Service Tax on Legal services under reverse charge mechanism was imposed by Central Government w.e.f 01-07-2012. Thereby recepient of service, if its a business entity was made liable to pay service tax on the legal services received. C forms can be issued for purchase of goods used in telecommunication even if such goods not resold0 comments Sunday, September 23, 2012Andhra Pardesh High Court in a very important judgement namely Indus Towers Limited vs Commercial Tax officer has held that C forms can be issued for the purchase of goods used in the telecommunication network even if such goods are not resold. The Hon'ble High Court held as under: Income tax and TDS rate on interest income of Non-resident reduced to 5%5 comments
Interest Income
of a Non-Resident Investor will now be taxed at the reduced rate of 5 per
cent instead of the existing rate of 20 per cent and withhold Tax on
such Income has also been reduced to 5 per cent
Section 194LC of the Income-tax Act, 1961 – Income by way of Interest from Indian Company – Approval of loan agreements/long term infrastructure bonds and rate of interest for the purpose of Section 194LC
CST (Punjab) Rules amended-Statutory forms under CST to be online0 comments Saturday, September 22, 2012
Rule 7 of Central Sales Tax (Punjab) Rules has been amended to provide for the issuance of online statutory forms i.e C, F, H, E-I, E-II and I forms under Central Sales Tax Act, 1956. The rules provide for compulsory filing of returns in the Form-1 and VAT-18 and VAT-19 by every dealer registered under CST Act.
Entry Tax in Punjab increased by 0.5% w.e.f 18-09-20120 comments Tuesday, September 18, 2012
Entry Tax rates has been enhanced by the Excise & Taxation Department, Punjab by 0.5% on all the goods w.e.f 18-09-2012. This increase has been made and also was expected after the increase in the VAT rates by 0.5% on almost all the goods under Punjab VAT Act, 2005.
However no notification confirming the increase in entry tax rates is available as yet but a public notice to this effect has been issued which confirms the increase in the rates of entry tax rates w.e.f 18-09-2012.
Read On
Scrutiny, audit, assessment processes under Punjab VAT to be handed over to external agencies0 comments Saturday, September 15, 2012Excise & Taxation Department, Punjab is looking forward to handover the scrutiny, audit and assessment process in the hands of some external agency for a limited period of 8 months to 1 year till the time the new system i.e. Compuerisation of Tax Information System (COTIS) is fully implemented.
Transactions through MCX stock exchange are non-speculative after 01-04-20060 commentsMumbai ITAT has held that the transactions carried out through MCX Stock Exchange after 1st April 2006, would be eligible for being treated as non-speculation within the meaning of clause (d) of proviso to section 43(5). It is held by ITAT in this case as follows : No TDS on discount given to Stamp Vendors for purchasing stamps in bulk quantity0 comments Tuesday, September 11, 2012The assessee, an association of stamp vendors, bought stamps from the State Govt. at a discount. The department claimed that the stamp vendors were “agents” of the State Govt. and that the said discount was “commission or brokerage” and the State Govt. ought to deduct TDS u/s 194H. The assessee filed a Writ Petition to challenge the department’s action. The Gujarat High Court upheld the assessee’s plea that (a) title in the stamps passed to the vendors and that they were not “agents” of the State Govt. but were transacting on a “principal to principal” basis and (b) the discount available to the stamp vendors was not “commission or brokerage” so as to fall within s. 194H. On appeal by the department to the Supreme Court, HELD dismissing the appeal: Lower/Nil rate of tax deduction certificate for works contractors under Punjab VAT Act, 20050 comments
It is ussualy seen that works contractors registered under
Punjab VAT Act, 2005 have always refund to claim from the Excise & Taxation
department due to the fact that their final tax liability is much lower/Nil
than the tax deductions made u/s 27 of Punjab VAT Act, 2005. It results in
blocking of their working capital till the time they get refund from the
Department.The solution to it is to resort to section 27(10) of Punjab VAT Act,
2005.
The relevant provisions of PVAT Act 2005 and certain relevant judgements have been discussed herebelow in this regard
Processing fee levied on all VAT dealers, luxury tax, lump sum tax on brick klins doubled in Punjab0 comments Wednesday, September 5, 2012Excise & taxation Department, Punjab has levied processing fee of Rs. 800 on every taxable dealer (i.e Person having VAT registration) in Punjab under a new Rule 40-A of Punjab VAT Rules, 2005. This rule provides as under: "Every taxable person shall pay annual processing fee of Rs. Eight Hundred only during the month of October alongwith the filing of quarterly return. This processing fee is in lieu of operation, maintenance and upgradation of such facilities and services as electronic issuance of statutory forms, e-filing of returns, e-payment of taxes and such other online and offline services being rendered or proposed to be rendered by the Excise and Taxation Department." House lacking basic amenities does not qualify for exemption u/s 540 commentsIn the instant case, in order to examine the entitlement of the assessee for exemption under section 54, it is to be seen whether the assessee had constructed residential house within three years of the transfer of his property. For doing so, the meaning of the term ‘house’ is to be explored. The term ‘house’ has not been given any statutory definition and, thus, has to be assigned meaning as understood in common parlance. As per dictionary, it means abode, a dwelling place or building for human habitation. A building, in order to be habitable by a human being, is ordinarily required to have minimum facilities of washroom, kitchen, electricity, sewerage, etc. Powers u/s 8(3) of PVAT Act should be exercised in exceptional circumstances0 comments Monday, September 3, 2012
Section 8(3) of Punjab VAT Act, 2005 provides that a prior 15 days notice is required to be issued by notification of intention to amend the schedules, before any schedules are amended. However the State Government may also dispense with the requirement of issuance of the prior notice if the circumstances so exist. Section 8(3) runs as under: Notifications relating to VAT increase by 0.5% in Punjab0 comments
Punjab Government has increased the VAT rate by 0.5% on almost all goods under Punjab VAT Act, 2005 for which a public notice was issued earlier in the newspapers. Now the official notifications are available and sharing the same herebelow for the benefit of all concerneds. VAT rate in Punjab increased by 0.5% w.e.f 03-09-20120 comments Sunday, September 2, 2012Punjab Government has increased the rate of VAT on all goods in Punjab by 0.5% under the Punjab VAT Act, 2005 w.e.f 03-09-2012. Thus the rate of tax on all the goods stand increased by 0.5% w.e.f 03-09-2012. For example in case of goods mentioned under Schedule B rate of tax would be now @ 5.5% and after adding surcharge @ 10% the rate of tax would be 6.05%. Punjab's traders may move HC against processing fee, e-TRIP0 comments Saturday, September 1, 2012
Traders in Punjab are mulling approaching the High Court against the state government's decision to levy new processing fee and e-TRIP system. "We are going to have a meeting soon in which the trading community and various industry associations will participate to collectively decide about next course of action which may also include approaching the (Punjab and Haryana) High Court, having protest rallies against the processing fee and e-TRIP," Punjab Pradesh Beopar Mandal, President, Amrit Lal Jain told PTI today. "We are already in touch with prominent High Court lawyers to give their opinion on how to go about against processing fee and e-TRIP," Mandal’s Secretary, Mohinder Aggarwal said.
Clarification-service tax on vocational education/training course0 comments Wednesday, August 29, 2012Circular No. 164/15/2012-ST, New Delhi, 28th August, 2012 Subject: service tax – vocational education/training course — regarding. Clarification has been sought in respect of levy of service tax on certain vocational education/training/ skill development courses (VEC) offered by the Government (Central Government or State Government) or local authority themselves or by an entity independently established by the Government under the law, as a society or any other similar body. Doctor's remuneration to suffer TDS u/s 192 and not 194J, if he is governed by service rules of employer0 comments Sunday, August 26, 2012
ITAT Ahemdabad in DCIT vs Wockhardt Hospitals Ltd. has held that Where assessee-hospital engaged some doctors on fixed monthly remuneration, and doctors were governed by its service rules, remuneration paid was taxable as 'salaries' and liable for deduction of tax under section 192. In this case the assessee-company was running hospital with branches. It had engaged services of some doctors and was deducting TDS from payments made to them under section 194J. According to the assessee, the doctors were appointed as consultants whose remuneration was liable for TDS under section 194J and there was no employer and employee relationship. The Assessing Officer, however, treated the relationship between the doctors and the assessee as one of employer and employee and held that said payments were liable to TDS under section 192. The Commissioner (Appeals) allowed the assessee's appeal. On the revenue's appeal it was held as under: No reopening in the absense of tangible material even when only intimation u/s 143(1) was issued originaly0 comments Friday, August 24, 2012Gujrat High Court in Inductotherm (India) Pvt. Ltd. vs CIT has held that reopening of aseessment u/s 147/148 would be invalid when no new material has come before the AO even when no assessment u/s 143(3) was framed earlier but only an intimation u/s 143(1)(a) was issued. In this case: For AY 2002-03, the AO issued an Intimation u/s 143(1) accepting the return. Subsequently, based on objections raised by the audit, he issued a s. 148 notice to reopen the assessment. The AO set out four issues in the recorded reasons and for two he stated that the reopening was to “verify” the expenditure. The assessee filed a Writ Petition to challenge the reopening inter alia on the ground that there was no reason to believe that income had escaped assessment. E-trip in Punjab-is it valid?0 comments Monday, August 20, 2012Excise and Taxation Department, Punjab has made it mandatory to furnish information regarding intra-state movement of goods (within Punjab) by all persons making sales of Rs. 3 Lakh or above in a single transaction except in the case of Iron and Steel where this threshold shall be Rs. 2 Lakh instead of Rs. 3 Lakh and above.
This mandatory uploading of intra-state transaction has been made compulsory by merely a public notice.
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