Income from other source credited to P & L A/C cannot be discarded for computing partner's remuneration0 comments Wednesday, November 28, 2012
FACTS:
The assessee-firm derived its income
from profession as an advocate. In the profit and loss account, the
assessee-firm credited certain amount received as licence fee and compensation
for use of shared facilities.
In the course of assessment, the
Assessing Officer opined that since the aforesaid income was not a professional
income, the same could not form part of 'book profit' for computation of
allowable remuneration to partners under section 40(b).
The Commissioner (Appeals) upheld the
assessment order. Crucial date of sale for issuing C forms0 comments Sunday, November 25, 2012
Many a times I have received a query from different parts of the country that what is the crucial date of sale to be taken while issuing of C forms under CST Act, 1956 i.e whether date of invoice or the date on which goods are received by the purchasing dealer? C form is a form for the concessional rate of CST on the inter-state sale of goods and is issued by purchasing dealer in one State to the selling dealer in another State for the inter-state sales transactions done during the period of three months i.e a quartar. Public Notice for exporters of paddy/rice-is it contempt of court?0 comments Saturday, November 24, 2012
Excise & Taxation Department, Punjab has issued a public notice for Exporters of Paddy/Basmati Paddy/Rice directing them to pay the purchase tax on purchase of paddy even if the rice manufactured out of it is exported. It has been further directed in the public notice that dealers exporting rice/paddy should pay purhase tax on the paddy and then they may claim refund afterwards of such purchase tax paid when rice are exported. Punjab VAT-Circular and Public notice on works contracts0 comments Wednesday, November 21, 2012
Punjab circular – Works contract –
TDS Deposit guideline
Circular no.01/VAT-1/2012/TD/ Dated 9-11-2012
1. The
tentative draft paragraph titled "Taxation on works contracts under
PVAT" intended for inclusion in Comptroller & Auditor General of India
Audit report (Revenue Receipts) of Punjab government for year 2011-12 has highlighted
the deficiencies in compliance to provisions of Punjab VAT Act, 2005 by various
Departments of State government.
Advocates of Punjab & Haryana to submit form with photographs to Bar Council for updation0 comments Saturday, November 17, 2012
Bar Council of Punjab & Haryana is updating its Roll of Advocates enrolled with it. Hence a direction has been issued to all Advocates of Punjab & Haryana for submission of information in the form annexed with the letter issued as produced herebelow. The letter as well as the application form is being produced herebelow for all concerned readers of the blog.
Read On
Discount after the sale is also a trade discount if given in regular practice of trade0 comments
Supreme Court In IFB Industuries Limited vs State of Kerala has held that trade discounts doesnot mean only those discounts which are given on invoice but discounts given after the sale in accordance with the regular practice of trade is also a trade discount and the deduction of the same should be allowed for determining taxable turnover for the purpose of sales tax/VAT.
In this case a division bench of the Kerala High Court has held that unless the discount was shown in the invoice itself, it would not qualify for deduction and further that any discount that was given by means of credit note issued subsequent to the sale of the article was in reality an incentive and not trade discounteligible for exemption under rule 9(a) of the Rules.
Meaning of expression "Similarly Placed Person" in context of Entry Tax Deferment in Punjab0 comments Wednesday, November 14, 2012
As we know the Punjab Tax on Entry of Goods into Local Areas Act, 2000 was stayed by Punjab & Haryana High Court in Bhushan Power & Steel Limited vs State of Punjab in CWP 15378 of 2008. Thereafter a lot of writ petitions were filed challenging the said act on similar grounds as was in Bhushan Power & Steel case, whereby the Hon'ble High Court in CWP 18609 of 2011 passed the following order" "Learned counsel for the petitioners placing reliance upon an order passed by this Court in C.M. No. 2467 of 2011 in C.W.P. No. 15378 of 2008 Bhushan Power & Steel Limited v. The State of Punjab and others, on 28.3.2011 submitted that as the petitioners in these writ petitions are also similarly placed, interim order in the same terms be passed in the present petitions. Worship of Hindu Gods is not “religious activity for the purpose of section 80G0 comments Thursday, November 8, 2012
Nagpur
ITAT has held in Shiv Mandir Devsttan Panch Committee Sanstan vs. CIT that “Hinduism” is not a religion &
worship of Hindu Gods is not “religious purpose” while deciding the application
for granting of certificate u/s 80G of Income Tax Act.
It is notable that certificate u/s
80G is granted to those organizations only who are established for charitable
purposes and Explanation 3 to section 80G provides that charitable purpose
doesnot include a purpose which is of religious nature
Time limit for filing ITR-V forms for A.Ys. 2010-11 and 2011-12 extended to 31-12-20120 comments Thursday, November 1, 2012
Notification NO. 1/2012 under CPR Scheme 2011 [F. No. DIT(S)-III/ITR-V Extension/2012-13], Dated 23-10-2012
In exercise of its powers under clause (ii) of Para 14 read with clause (7) of Para 4 of the 'Centralized Processing of Returns Scheme, 2011', issued vide C
B D T Notification No. SO 16(E) dated 4.1.2012, the Director General of
Income Tax (System) hereby extends the time limit for filing ITR-V
forms relating to Income Tax Returns filed electronically (without
digital signature Certificate) for A.Y. 2010-11 (filed during F.Y.
2011-12) and for A.Y. 2011-12 (filed on or after 1st April, 2011). These
ITR-V forms can now be filed upto 31st December, 2012 or within a
period of 120 days from the date of uploading of the electronic return
data, whichever is later. This direction is issued to mitigate the
hardship and grievance of the tax payers who have been prevented by
reasonable causes to file the ITR-V in time.
VAT-20 (annual statement) in Punjab to be online w.e.f 01-11-20120 comments Tuesday, October 30, 2012Excise & Taxation Department, Punjab has made online filing of VAT-20 (annual statement) under Punjab VAT Act, 2005, for the year 2011-12, mandatory w.e.f 01-11-2012. A public notice to this effect has been issued.
The online utility for filing VAT-20 is not available as yet, therefore it is stated in the public notice that the annual return will now be filed from 1st December 2012 to 31st December 2012.
No seizure of Jewellery upto 500 grams claimed to be of married lady0 comments Monday, October 29, 2012
We have duly considered the rival contentions and gone through the record
carefully. In the judgement of Hon'ble Gujarat
High Court relied upon by the assessee, the scope of the circular bearing no.
1916 has been considered. It is true that this circular was issued by the Board
guiding its officials not to seize gold jewellery, if it is found to the extent
of 500 grams and claimed to be of a married lady. Similarly, to the extent of
250 grams claimed to be belonging of a unmarried lady and 100 grams claimed to
be belonging of male member, than no seizure is to be affected. No TDS u/s 194C when transportation done by supplier0 comments Friday, October 19, 2012
SECTION 194C OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - PAYMENTS TO CONTRACTORS & SUB-CONTRACTORS - DEDUCTION OF TAX AT SOURCE ON PAYMENT OF GAS TRANSPORTATION CHARGES BY THE PURCHASER OF NATURAL GAS TO THE SELLER OF GAS
CIRCULAR NO. 9/2012 [F. NO. 275/11/2012-IT(B)], DATED 17-10-2012
Representations have been received from various sections of the Industry on the difficulties faced in the matter of Tax Deduction at Source on Gas Transportation Charges paid by the purchasers of Natural gas to the sellers of gas. Works contract service after negative list-Part II(reverse charge)0 comments Wednesday, October 17, 2012
In the previous article(see previous article here) some aspects of works
contract service were discussed. In this continuing article an attempt has been
made to discuss the reverse charge mechanism in works contract service.
What is
reverse charge: Before
jumping to the reverse charge mechanism in works contract service, it is
important to understand what is reverse charge. Normally service tax is payable by the service
provider after charging/collecting the same from the service receiver.
Again two challan forms for VAT payment under Punjab VAT Act, 20050 comments Monday, October 15, 2012
It
is for the information of all concerned readers of blog that for VAT payment
under Punjab VAT Act, 2005 two challans are required to be filled up. One is
VAT-2 and other is VAT-2A. Earlier only one consolidated challan i.e VAT-2 was
introduced in suppression of the three challans i.e VAT-2, VAT-2A and VAT-2B
w.e.f 14-12-2011. It was a relief for the common taxpayer after the
introduction of one consolidated challan in form VAT-2.
AO must apply his mind before disposing off stay application0 comments
Delhi High Court in an important case namely Virgin Mobile India (P.) Ltd. v. Assistant Commissioner of Income tax has held that while disposing off the stay application of an assessee the assesseing officer must apply his mind and should dispose not outrightly reject the stay application without reasons.
It is generally seen that stay applications are rejected by assessing officers in a mechanical manner. Even no reasons are given while disposing off the stay applications. The AOs while disposing off stay applications just try to safeguard the interests of revenue and they dont try to see the hardship being caused to assessees if the stay application is rejected. This judgement is a good one to cite before AOs during the hearing of stay applications.
Due date of Service tax return for April-June-2012 extended to 25-11-20120 comments
Due date for filing of service tax returns for the period 01-04-2012 to 30-06-2012 has been extended from 25-10-2012 to 25-11-2012.
Rule 7 of the Service Tax Rules, 1994 - Returns - Extension of time to file return in form ST3
ORDER NO. 3/2012 [F.No.137/99/2011-ST], dated 15-10-2012
Works contract service after negative list-Part 11 comments Sunday, October 14, 2012
Service
portion in the execution of a works contract has been declared as service u/s
66E after the introduction of negative list. That means works contract service per
se is not a service but it is a service because it has been declared to be a service u/s 66E. Here an attempt has been
made to elaborate on the works contract service after the introduction of
negative list.
No penalty u/s 51 of PVAT Act when there is voluntary reporting and no Punjab Tax involved0 comments Friday, October 12, 2012
Punjab & Haryana High court in State of Punjab vs ABB
Limited has upheld the order of Tribunal to the effect that when there is
voluntary reporting at the ICC when goods were imported into the State of
Punjab hence there was no tax of Punjab was involved, therefore no penalty u/s
51 of Punjab VAT Act could be levied.
Held: Tribunal concluded that there was no error on the part of
the respondent-dealer as full sales tax on the transaction being inter state
sale had been paid and the element of tax in Punjab State
was not involved. It was also noticed that there was voluntary reporting at ICC
and the goods were accompanied by proper and genuine documents complete in all
respects. Also payments for the transactions were made through the banking
channels i.e. by cheques and were not kept out of the books of account.
Direction regarding collection of processing fee under Punjab VAT Act0 comments Sunday, October 7, 2012
OFFICE OF THE EXCISE
& TAXATION COMMISSIONER,
To,
All the Deputy Excise
& Taxation Commissioners (Divisions),
and
all AETC's (District Incharge) in the state.
No. DETC-VAT-2012/2
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Income from other source credited to P & L A/C cannot be discarded for computing partner's remunerationWednesday, November 28, 2012
FACTS:
The assessee-firm derived its income
from profession as an advocate. In the profit and loss account, the
assessee-firm credited certain amount received as licence fee and compensation
for use of shared facilities.
In the course of assessment, the
Assessing Officer opined that since the aforesaid income was not a professional
income, the same could not form part of 'book profit' for computation of
allowable remuneration to partners under section 40(b).
The Commissioner (Appeals) upheld the
assessment order. Crucial date of sale for issuing C formsSunday, November 25, 2012
Many a times I have received a query from different parts of the country that what is the crucial date of sale to be taken while issuing of C forms under CST Act, 1956 i.e whether date of invoice or the date on which goods are received by the purchasing dealer? C form is a form for the concessional rate of CST on the inter-state sale of goods and is issued by purchasing dealer in one State to the selling dealer in another State for the inter-state sales transactions done during the period of three months i.e a quartar. Public Notice for exporters of paddy/rice-is it contempt of court?Saturday, November 24, 2012
Excise & Taxation Department, Punjab has issued a public notice for Exporters of Paddy/Basmati Paddy/Rice directing them to pay the purchase tax on purchase of paddy even if the rice manufactured out of it is exported. It has been further directed in the public notice that dealers exporting rice/paddy should pay purhase tax on the paddy and then they may claim refund afterwards of such purchase tax paid when rice are exported. Punjab VAT-Circular and Public notice on works contractsWednesday, November 21, 2012
Punjab circular – Works contract –
TDS Deposit guideline
Circular no.01/VAT-1/2012/TD/ Dated 9-11-2012
1. The
tentative draft paragraph titled "Taxation on works contracts under
PVAT" intended for inclusion in Comptroller & Auditor General of India
Audit report (Revenue Receipts) of Punjab government for year 2011-12 has highlighted
the deficiencies in compliance to provisions of Punjab VAT Act, 2005 by various
Departments of State government.
Advocates of Punjab & Haryana to submit form with photographs to Bar Council for updationSaturday, November 17, 2012
Bar Council of Punjab & Haryana is updating its Roll of Advocates enrolled with it. Hence a direction has been issued to all Advocates of Punjab & Haryana for submission of information in the form annexed with the letter issued as produced herebelow. The letter as well as the application form is being produced herebelow for all concerned readers of the blog. VAT-20 for year 2011-12 can be filed manually till 20-11-2012Friday, November 16, 2012Discount after the sale is also a trade discount if given in regular practice of trade
Supreme Court In IFB Industuries Limited vs State of Kerala has held that trade discounts doesnot mean only those discounts which are given on invoice but discounts given after the sale in accordance with the regular practice of trade is also a trade discount and the deduction of the same should be allowed for determining taxable turnover for the purpose of sales tax/VAT.
In this case a division bench of the Kerala High Court has held that unless the discount was shown in the invoice itself, it would not qualify for deduction and further that any discount that was given by means of credit note issued subsequent to the sale of the article was in reality an incentive and not trade discounteligible for exemption under rule 9(a) of the Rules.
Meaning of expression "Similarly Placed Person" in context of Entry Tax Deferment in PunjabWednesday, November 14, 2012
As we know the Punjab Tax on Entry of Goods into Local Areas Act, 2000 was stayed by Punjab & Haryana High Court in Bhushan Power & Steel Limited vs State of Punjab in CWP 15378 of 2008. Thereafter a lot of writ petitions were filed challenging the said act on similar grounds as was in Bhushan Power & Steel case, whereby the Hon'ble High Court in CWP 18609 of 2011 passed the following order" "Learned counsel for the petitioners placing reliance upon an order passed by this Court in C.M. No. 2467 of 2011 in C.W.P. No. 15378 of 2008 Bhushan Power & Steel Limited v. The State of Punjab and others, on 28.3.2011 submitted that as the petitioners in these writ petitions are also similarly placed, interim order in the same terms be passed in the present petitions. Worship of Hindu Gods is not “religious activity for the purpose of section 80GThursday, November 8, 2012
Nagpur
ITAT has held in Shiv Mandir Devsttan Panch Committee Sanstan vs. CIT that “Hinduism” is not a religion &
worship of Hindu Gods is not “religious purpose” while deciding the application
for granting of certificate u/s 80G of Income Tax Act.
It is notable that certificate u/s
80G is granted to those organizations only who are established for charitable
purposes and Explanation 3 to section 80G provides that charitable purpose
doesnot include a purpose which is of religious nature
Time limit for filing ITR-V forms for A.Ys. 2010-11 and 2011-12 extended to 31-12-2012Thursday, November 1, 2012
Notification NO. 1/2012 under CPR Scheme 2011 [F. No. DIT(S)-III/ITR-V Extension/2012-13], Dated 23-10-2012
In exercise of its powers under clause (ii) of Para 14 read with clause (7) of Para 4 of the 'Centralized Processing of Returns Scheme, 2011', issued vide C
B D T Notification No. SO 16(E) dated 4.1.2012, the Director General of
Income Tax (System) hereby extends the time limit for filing ITR-V
forms relating to Income Tax Returns filed electronically (without
digital signature Certificate) for A.Y. 2010-11 (filed during F.Y.
2011-12) and for A.Y. 2011-12 (filed on or after 1st April, 2011). These
ITR-V forms can now be filed upto 31st December, 2012 or within a
period of 120 days from the date of uploading of the electronic return
data, whichever is later. This direction is issued to mitigate the
hardship and grievance of the tax payers who have been prevented by
reasonable causes to file the ITR-V in time.
VAT-20 (annual statement) in Punjab to be online w.e.f 01-11-2012Tuesday, October 30, 2012Excise & Taxation Department, Punjab has made online filing of VAT-20 (annual statement) under Punjab VAT Act, 2005, for the year 2011-12, mandatory w.e.f 01-11-2012. A public notice to this effect has been issued.
The online utility for filing VAT-20 is not available as yet, therefore it is stated in the public notice that the annual return will now be filed from 1st December 2012 to 31st December 2012.
No seizure of Jewellery upto 500 grams claimed to be of married ladyMonday, October 29, 2012
We have duly considered the rival contentions and gone through the record
carefully. In the judgement of Hon'ble Gujarat
High Court relied upon by the assessee, the scope of the circular bearing no.
1916 has been considered. It is true that this circular was issued by the Board
guiding its officials not to seize gold jewellery, if it is found to the extent
of 500 grams and claimed to be of a married lady. Similarly, to the extent of
250 grams claimed to be belonging of a unmarried lady and 100 grams claimed to
be belonging of male member, than no seizure is to be affected. No TDS u/s 194C when transportation done by supplierFriday, October 19, 2012
SECTION 194C OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - PAYMENTS TO CONTRACTORS & SUB-CONTRACTORS - DEDUCTION OF TAX AT SOURCE ON PAYMENT OF GAS TRANSPORTATION CHARGES BY THE PURCHASER OF NATURAL GAS TO THE SELLER OF GAS
CIRCULAR NO. 9/2012 [F. NO. 275/11/2012-IT(B)], DATED 17-10-2012
Representations have been received from various sections of the Industry on the difficulties faced in the matter of Tax Deduction at Source on Gas Transportation Charges paid by the purchasers of Natural gas to the sellers of gas. Works contract service after negative list-Part II(reverse charge)Wednesday, October 17, 2012
In the previous article(see previous article here) some aspects of works
contract service were discussed. In this continuing article an attempt has been
made to discuss the reverse charge mechanism in works contract service.
What is
reverse charge: Before
jumping to the reverse charge mechanism in works contract service, it is
important to understand what is reverse charge. Normally service tax is payable by the service
provider after charging/collecting the same from the service receiver.
Again two challan forms for VAT payment under Punjab VAT Act, 2005Monday, October 15, 2012
It
is for the information of all concerned readers of blog that for VAT payment
under Punjab VAT Act, 2005 two challans are required to be filled up. One is
VAT-2 and other is VAT-2A. Earlier only one consolidated challan i.e VAT-2 was
introduced in suppression of the three challans i.e VAT-2, VAT-2A and VAT-2B
w.e.f 14-12-2011. It was a relief for the common taxpayer after the
introduction of one consolidated challan in form VAT-2.
AO must apply his mind before disposing off stay application
Delhi High Court in an important case namely Virgin Mobile India (P.) Ltd. v. Assistant Commissioner of Income tax has held that while disposing off the stay application of an assessee the assesseing officer must apply his mind and should dispose not outrightly reject the stay application without reasons.
It is generally seen that stay applications are rejected by assessing officers in a mechanical manner. Even no reasons are given while disposing off the stay applications. The AOs while disposing off stay applications just try to safeguard the interests of revenue and they dont try to see the hardship being caused to assessees if the stay application is rejected. This judgement is a good one to cite before AOs during the hearing of stay applications.
Due date of Service tax return for April-June-2012 extended to 25-11-2012
Due date for filing of service tax returns for the period 01-04-2012 to 30-06-2012 has been extended from 25-10-2012 to 25-11-2012.
Rule 7 of the Service Tax Rules, 1994 - Returns - Extension of time to file return in form ST3
ORDER NO. 3/2012 [F.No.137/99/2011-ST], dated 15-10-2012
Works contract service after negative list-Part 1Sunday, October 14, 2012
Service
portion in the execution of a works contract has been declared as service u/s
66E after the introduction of negative list. That means works contract service per
se is not a service but it is a service because it has been declared to be a service u/s 66E. Here an attempt has been
made to elaborate on the works contract service after the introduction of
negative list.
No penalty u/s 51 of PVAT Act when there is voluntary reporting and no Punjab Tax involvedFriday, October 12, 2012
Punjab & Haryana High court in State of Punjab vs ABB
Limited has upheld the order of Tribunal to the effect that when there is
voluntary reporting at the ICC when goods were imported into the State of
Punjab hence there was no tax of Punjab was involved, therefore no penalty u/s
51 of Punjab VAT Act could be levied.
Held: Tribunal concluded that there was no error on the part of
the respondent-dealer as full sales tax on the transaction being inter state
sale had been paid and the element of tax in Punjab State
was not involved. It was also noticed that there was voluntary reporting at ICC
and the goods were accompanied by proper and genuine documents complete in all
respects. Also payments for the transactions were made through the banking
channels i.e. by cheques and were not kept out of the books of account.
Direction regarding collection of processing fee under Punjab VAT ActSunday, October 7, 2012
OFFICE OF THE EXCISE
& TAXATION COMMISSIONER,
To,
All the Deputy Excise
& Taxation Commissioners (Divisions),
and
all AETC's (District Incharge) in the state.
No. DETC-VAT-2012/2
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