CBDT ALLOWS ONE TIME RELAXATION FOR VERIFICATION OF ITR

CBDT Circular dated on 13th July 2020: CBTD allows to verify previous ITR one time relaxation for verification for the FY 2014-15 TO FY 2018-19  by September 2020

www.carajput.com;CBDT: INCOME TAX

www.carajput.com; CBDT: INCOME TAX

The tax return filer effectively makes a declaration by reviewing the tax return that the information contained in the return are correct.

Normally, the tax return must be checked within 120 days of the filing of the income tax return or any extended date announced by the tax department.

The procedure for filing income tax returns is not complete until the tax return is checked. The return will not be processed by the tax department until, and until confirmed. If not confirmed, the return is invalid.

1) By circular no. 3/2020 of 13 July 2020, CBDT offered one more-time opportunity for taxpayers whose income tax returns had been filed electronically but were awaiting verification.

2) Now any taxpayer whose ITR is pending for verification can verify their ITR by 30 September 2020 or before that date.

3) It is possible to check ITR for the duration 2014-15 to FY 2018-19 via this one-time relaxation scheme

4) All these checked ITRs are to be issued by 31 December 2020 or before.

5) ITRs may be checked by EVC or by a properly signed hard copy being sent to CPC Bangalore.

Note: if any lawsuits against taxpayers have been launched in view of the fact that the taxpayer has not filed a report for that year then the value of relaxation can not be used

Benefits:-

  • In the event of failure to acknowledge return, AO may initiate proceeding u / s 144 as such returns filed are deemed invalid.
  • The carryforward of loss can get permitted, ThanksRajput Jain & Associates

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

Essential key concepts Gift Taxation: Income Tax

Essential Key concepts Taxation on gifts

www.carajput.com; Income Tax (Gift taxation)

www.carajput.com; Income Tax (Gift taxation)

Gifts up to Rs 50,000 per year are exempt from tax in India. In addition, donations from particular relatives, such as parents, spouses, and siblings, are also exempt from tax. Gifts are taxable in other cases. The gift tax in India falls under the Income Tax Act as there is no specific gift tax after the Gift Tax Act of 1958 was enacted in 1998.

In India, gifts are given on a number of occasions, such as celebrations such as Diwali, Holi, or the occasion of marriage, to express love for our loved ones. Nevertheless, gifts are now also used for tax planning reasons as, in multiple given to a specific, any amount of gifts received is exempt from tax. Some people whose gifts they got in their ITR claim that they’re still gifts obtained out of love and affection.

Even so, it’s not the right way, since donations are tax-exempt only in such specific circumstances or where they are obtained by particular persons. Non-disclosure of gifts could result in penalties of between 50 and 200 percent of the tax payable on the income attempted to be avoided.

  1. Gifts received from the employer

There are occasions when employers give the employee a present on a special occasion or to boost their productivity, or because they do well. An employee shall be liable for gifts received from the employer only if the value of such gift is equal to or greater than Rs. 5,000. Gifts below Rs. 5,000 in value within the financial year shall be excluded from vat. These gifts shall be taxable as perquisites under the Head of Salary Income.

  1. Gifts received from any other person;

Section 56(2)x) of the Income Tax Act, 1961 deals with the taxability of gifts received by a person, except the employer, throughout the year. This provision shall apply regardless of the status of the resident or of the class of assessee. The donor or donor can be an individual, a partnership business, LLP, a corporation, AOP, BOI, a cooperative society, or an artificial legal body, whether resident or non-resident.

Previous gifts from a resident to a non-resident are, even then, claimed to be non-taxable in India as the recipient used to claim that income does not accrue or arise in India. In order to make sure that the receipt of gifts is also taxed in the hands of non-residents, Section 9 has been amended by the Finance Act (No. 2), 2019, to provide that income is considered to have accrued or to have arisen in India as a result of the payment of gifts (exceeding Rs. 50,000) without adequate consideration by a resident to a non-resident. It does not provide proof of the taxability of the gift of the estate as referred to in Section 56(2)(x), inter-alias, immovable property, gold, securities, etc.

Therefore, after the amendment, it may be inferred that gifts in the nature of money in the hands of non-residents provided by resident persons would be paid in their hands, even though gifts of any other manner are also beyond the control of the Income Tax Act.

2.1. Gifts received in cash form

Where even a person receives any amount of money without consideration and the total value of that sum exceeds Rs. 50,000, the total aggregate value of that sum shall be taxed on the basis of capital income from other sources. For the determination of the threshold, the aggregate amount of receipt from different sources and persons throughout the year shall be considered.

2.2. Gifts obtained in the form of real estate

Immovable property received by the assessee for the year, either without consideration or for lack of consideration, shall be deemed to have been income in his hands and to have been taxable in that year if the receipt is within a period of time.

  • If the immovable property is received without consideration as well as the stamp duty value of the property reaches Rs. 50,000, the stamp duty value of the immovable property shall be liable to tax.
  • If an immovable property is obtained for payment far less than the stamp duty value, the discrepancy between the stamp duty value and the compensation shall be taxable if the difference meets the above two limits: Rs . 50,000; or 10% of the consideration

For all cases, the cap of Rs. 50,000 shall be reviewed for each transaction and not for all transactions as a whole.

2.3. Gifts received in the form of Movable Goods

Movable property as described in the Act shall include any property in the form of shares and stocks, jewels, historical artifacts, sketches, portraits, sculptures, any work of art, or bullion. In which the transaction includes any other movable property, such as car furniture, the excess consideration for the fair market value shall not be taxed. In this case, the deemed income shall be calculated as follows given way :

If any property is obtained without regard and the total fair market value of it reaches Rs. 50,000, the entire fair market value of such property shall be paid.

3. Gifts Exempt

I Upon the occurrence of a specified incident
  • On the occasion of marriage of an individual
  • By will or by means of inheritance
  • Considering the death of the payer or of the donor.
II Due to the status of the Doner
  • The gift is to be accepted from any specified relative;
  • Gifts obtained by any local authority;
  • Gifts earned from any fund or foundation or university or other educational institution or hospital or medical institution or from any trust or institution referred to in Section 10(23C);
  • Gift received from any trust or institution registered under section 12A/12AA/12AB[2];
  • Gift obtained by an person from a trust formed or established exclusively for the benefit of the relative of the recipient.
III. Owing to the position of the Donee
  • Gifts shall be handled by any trust or institution registered under section 12A/12AA/12AB2;
  • a certain fund or trust or institution, or any university or other educational institution, or any hospital or medical institution referred to in Section 10(23C)(iv)/(v)/(vi)/(via).
IV Due to transactions not considered to be a transfer
  • Any distribution of capital assets to the full or partial division of the HUF[Section 47(i)]
  • the transfer of capital assets by an Indian parent company to its subsidiary company;
  • Transfer of a capital asset to a merger, demerger or company reorganization scheme such that the requirements laid down in Section 47(vi) to Section 47(vii) are fulfilled.
V Other class of persons who have been notified
  • Immovable property acquired by a citizen of an illegitimate colony in the NCT of Delhi, pursuant to the requirement that such transaction must be regularized by the Central Government on the basis of the most current power of attorney, the selling document, the will, etc.
  1. The first and only manner to save the tax via a gift

The alternative tax can be saved is by offering gifts to your parents or legitimate guardians or to a kid who is a major. Nonetheless, when you contribute the sum, your taxable income stays the same. However, the interest they earn from other products by continuing to invest these funds becomes their own income. So, presuming that their income is lower, you can rest in peace knowing that the money is not going to be taxed.

Previously, so when long-term capital gains (LTCG) tax was effective, gift money can also be invested in a mutual fund or stock for 1 year and used as tax-free income. However, it is not feasible now as the LTCG tax has been reintroduced with effect from 1 April 2018.

  1. Are gifts, both in cash and kind, taxable?

Actually, all sorts of donations, including dollars, jewelry, real estate, paintings, or some other valuables, are taxable. However, if the amount of cash or the value of the gift in kind is less than Rs 50,000, the same amount would not be taxable.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

INCOME TAX UPDATES ON 28th December 2018

Income Tax Updates:

www.carajput.com; Income Tax

www.carajput.com; Income Tax

  • The Government has increased the interest income exemption limit on bank and post office deposits from Rs. 10,000 to Rs. 50,000. TDS (Tax Deducted at Source) for senior citizens will not be trigged if interest income is up to Rs. 50,000.
  •  Dividend distribution tax on dividends from equity mutual funds which were earlier tax-free, attracted tax at the rate of 10%. Remember that dividends from equity mutual funds are tax-free in the hands of investors. But dividends from equity mutual funds are paid after deducting a dividend distribution tax (DDT) of 11.648% (including cess), which reduces the in-hand return for investors.
  • 1st April onwards a new long term capital gains (LTCG) regime on equity instruments – listed shares or equity – oriented mutual funds – came into effect. Earlier such gains on equity were exempt from tax. Now investors have to pay 10% tax on gains exceeding Rs 1 Lakh a year. Equity holding beyond a year is considered long term.
  • Rs 40,000 standard deduction, one need not provide any documents and proof. A salaried individual or pensioner can claim standard deduction up to Rs 40,000 from his/her income.
  • The Government has raised the percentage of cess on income tax from 3% to 4% for individual taxpayers on the amount of income tax payable.
  • It is allowed to withdraw up to 40% of the total corpus without any tax at the time of maturity or closure of the account for the employees who are continuously contributing to the National Pension System (NPS).
  • Now senior citizen can avail deduction of up to Rs 50,000 for health insurance premium under section 80D. Earlier the limit was Rs 30,000. Also, the deduction available for payment towards medical treatment of specified disease has been hiked to Rs 1 Lakh for senior citizens.
  • In case of premium for health insurance for multiple years has been paid in one year, the deduction shall be allowed on proportionate basis for the number for years for which the benefit of health insurance is provided.

Case Laws:         

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Madras High Court:

CIT, Chennai vs. M/S Tamilnadu Industrial Investment Corporation Ltd.

Entitlement to deduction of provision made in respect of doubtful and loss assets u/s 36(1) (viia) (c) – Assessee did not have any positive profits to set it off from – scope of amendment – claim of the Assessee allowed – the proper method of interpreting the proviso is to give life to the proviso and the intention behind the insertion of the proviso:

ITAT Delhi:

ACIT, Central Circle- 30, New Delhi Vs. Ankush Saluja, Archana Saluja And Saluja Construction Co. Ltd.

Assessment u/s 153A – Addition u/s 68 – nowhere it is the case of Revenue that the aforesaid additions made in the Assessment Order were based on any incriminating material found in the course of search U/s 132 of I.T. Act. – No additions can be made

ITAT Delhi:

M/S Sony India pvt Ltd Vs. The ADDL. C.I.T, Range – 9, New Delhi

Transfer pricing – ALP – Since the operating profit margin of the appellant company is better than those of the comparable, it can be safely concluded that the Assessee has been suitably remunerated and no further adjustment is required to bench mark the AMP expenses.

ITAT Ahmadabad:

ITO, Ward-3 (3) (1) Surat. Vs. Shri Ghanshyambhai Laljibhai Lukhi

Addition on account of suppression of production – Rate of net profit – For determination of total production, all products and raw-material cannot be clubbed together to arrive at standard or a uniform quantity, because the Assesse is manufacturing different products having different recipe with common raw-material.

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 21,2016

CORPORATE AND PROFESSIONAL UPDATE  DATED MARCH 21,2016

Untitled25A

DIRECT TAX

  • Income Tax: Where assessee-NBFC provided security in form of cash collateral for loans purchased by purchaser-bank but did not book said amount as its income, levy of concealment penalty was justified – [2016] 67 163 (Chennai – Trib.)
  • Income Tax: Where assessee received gifts from two persons on behalf of his daughters on the occasion of their marriage since said gifts were made by demand drafts and genuineness of same was confirmed by a bank in which person making gifts had their accounts, impugned addition made under section 69A was to be set aside – [2016] 67  168 (Punjab & Haryana)
  • Income Tax: Substitution of ‘full value of the consideration received’ with ‘stamp value’ in terms of section 50C, is applicable in hands of the seller of a property who has to compute capital gains under section 48 pursuant to the transfer of a capital asset in nature of land or building or both; same cannot be extended in case of the purchaser to estimate undisclosed investment – [2016] 67  166 (Kolkata – Trib.)
  • Income Tax: Where assessee, a joint venture, executing civil contract works, having received a contract by Irrigation Department of State Government, assigned same to one of its constituents on back to back basis, since income from the contract entered into with State Government was assessable only in hands of assessee and not in hands of sub-contractor, credit for tax deducted at source from bills of the assessee was required to be given to assessee alone and same could not be denied by invoking Rule 37BA(2)(i) of Income-tax Rules, 1962, on ground that no real work was carried on by assessee – [2016] 67 224 (Andhra Pradesh)

INDIRECT TAX          

  • Service Tax: Where assessee-bank was utilizing services rendered by SWIFT essentially to transmit financial messages internationally, such services amounted to a taxable service classifiable under the category of banking and other financial services and were liable to service tax – [2016] 67 162 (Mumbai – CESTAT)
  • Service Tax: Helping vehicle-buyers to avail registration with RTO under Motor Vehicle Act does not amount to Business Auxiliary or Business Support Services; hence, the differential amount earned over and above actual RTO registration fees cannot be charged to service tax – [2016] 67  174 (Mumbai – CESTAT)
  • Service Tax: For appeal filed prior to 6-8-2014, if assessee’s appeal is dismissed for pre-deposit default, Tribunal may restore such appeal, if sufficient compliance is shown later; more so, when, on merits, case is prima facie in favor of assessee – [2016] 67 173 (Madras)
  • Excise Duty: Where certain percentage of expenses incurred on advertisement by dealers was reimbursed by assessee manufacturer because these advertisements indirectly helped assessee, reimbursed amount would not form part of trading transaction value
  • Excise Duty; EXPORT – WITHOUT PAYMENT OF DUTY : Having filed export applications with department, assessee cannot later claim that ‘applications were filed in anticipation of export order and goods in question were never manufactured’; assessee must show proof of export within 6 months or else, bear duty with interest and penalty – [2016] 67  171

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480 Continue reading

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 18,2016

CORPORATE AND PROFESSIONAL UPDATE  DATED MARCH 18,2016

Untitled7DIRECT TAX

  • Income Tax: Addition u/s 56(2)(viia) – deemed gift – Since the transaction of sale and purchase of shares is between related parties and both the companies are companies in which the public are not substantially interested, AO was justified in examining the applicability of the provisions of section 56(2)(viia) to the transaction of transfer of shares. – Tri
  • Income Tax: Exemption u/s. 11 – helping aspiring members/members in preparing for CISA and CISM certification conducted by the parent body, ISACA, USA – assessee cannot be considered to be an “educational trust” within the meaning of section 2(15) – it is not entitled for exemption u/s. 11 and this income of the assessee is to be assessed as business income under the head AOP – Tri
  • Income Tax: Challenge to the authority of ITO to issue notices u/s 148 – the petitioning assessee was precluded by Section 124(3)(b) from questioning the authority of the assessing officer who had issued the notices u/s 148 – HC
  • Income Tax: Eligibility of deduction under section 80IB – unreasonable profits earned. – For making a comparative analysis, apples are to be compared with apples and not with oranges. – Tri
  • Income Tax: Deduction u/s 80IC – the counsel for the assessee was of the bonafide belief that along with the claim of 80IC and 80I deduction, the Form 10CCB was not required since the accounts of the assessee are audited as per the statute. The assessee cannot be penalized for the bonafide mistake of the counsel – Tri

INDIRECT TAX            

  • Service Tax: Cenvat credit – Internet service, web-hosting service and content service is wholly attributable to the activity of rendering taxable output service. Thus, the demand attributable to these input services is set aside. – Tri
  • Central Excise: Liability to pay duty on clearance of structural scrap – duty demand alleging suppression of facts – When there is no clearance of inputs or capital goods as such, question of reversal of CENVAT credit availed on such items does not arise – Tri
  • Central Excise: 100% EOU – whether the benefit of Central Excise (Removal of goods at concessional rate of duty for manufacture of Excisable goods) Rules, 2001 is available to 100% EOU – Held Yes – Tri
  • Central Excise: Ineligibility for the SSI benefit – determination of turnover – the amount which has been deducted from their account by the buyers for its delay in execution in contracts is not correct and the proposition needs to be rejected – Tri
  • Customs: Levy of anti-dumping duty – Software downloaded electronically – Absence of mechanism to levy and collect duty – no duty can be levied and collected on software downloaded electronically – Tri
  • Customs: Proper authority for issuing show cause notice – Whether DRI is or not – comparison with the price of such imports cannot cause any prejudice to the appellant because it can be nobody’s case that the price would be higher for imports of larger quantities of such goods. – Tri
  • Customs: Classification – the classification has been determined on the basis of the length of the flock fibres being between 0.45 limited to 0.5 mm which was never contested and on the basis of the HSN Explanatory Notes on classification which are standard and internationally accepted for the purpose of determining the classification of goods. Thus, Revenue has discharged its burden of proof while determining the classification. – Tri
  • Customs: Valuation – inclusion of royalty – Legality of Commissioner (Appeals) order – There was no discussions either on facts or on legal issues in his impugned order and also it had not examined in detail the agreements and amendment agreements but merely endorses the respondent’s view without any discussion – Tri
  • Customs: Rejection of declared price – when the price of similar or identical goods are same price and it was accepted by the Customs in all major Custom Houses, there is no justification for taking recourse to Rule (8) of CVR and to adopt the price of Country of Exportation. – Tri
  • Customs: Refund claim in terms of Section 27 of the Customs Act – Rejected being time barred – Anti-dumping duty paid on PVC film – limitation prescribed under Section 27 would not be applicable to the refund of excess anti-dumping duty paid in terms of the provisional notifications, which attained finality subsequently. – Tri

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480 Continue reading

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 13, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 13, 2016

Untitled95A

DIRECT TAX

  • TDS u/s 194J or 194C – payments made to various TV channels – section 194J is attracted to the facts of the instant case. Merely because in earlier years this issue was not examined and the assessee’s contention got accepted without verification, cannot give license to it claim in the later years that the correctly applicable section be put under carpet
  • TDS – granting of any license to use the software amounts to ‘royalty’ and the provisions of sec.9(1)(vi) are applicable – assessee is in default u/s.201(1)/201(1A) for non-deduction of TDS
  • Principals of mutuality – Contribution by the members of a Group Housing Society – work is done by the society for and on behalf of that member – there is no question of any income – Not taxable
  • Revision u/s 263 – Directions of the Ld.CIT given to the AO to verify the unsecured creditors, unsecured loans, the AO in his fresh assessment order passed u/s 143(3) r.w.s.263 of the Act, did not draw any adverse inference. This direction of the Ld.CIT was in the nature of directing rowing enquiries. – Revision is bad in law.
  • TDS u/s 195 – Addition u/s 40(a)(ia) – no liability for deduction of tax at source arose under Section 195 in the case of mobilization and demobilization costs reimbursed to a non-resident, not being taxable in India, hence disallowance under Section 40(a)(ia) did not arise.
  • TDS u/s 195 – Addition u/s 40(a)(ia) – no liability for deduction of tax at source arose under Section 195 in the case of mobilization and demobilization costs reimbursed to a non-resident, not being taxable in India, hence disallowance under Section 40(a)(ia) did not arise.
  • Addition u/s 68 – Notice u/s 133(6) is issued by the AO could not be served on the share applicants and Inspector’s report also shows that this companies do not exists at the given address, we are of the view that no fault can be found against the assessee for this.

INDIRECT TAX

  • ST- Refund claim – As the service was rendered to self and service tax was paid thereon, burden can only passed on to self and passing on the burden to self is not tantamount to passing it to any other person. Therefore, the appellant is not hit by the doctrine of unjust enrichment
  • ST­-Refund of Cenvat credit – input services – When the premises was occupied by the appellant and day-to-day repairs and maintenance are carried out in that premises then obviously, the said services i.e. repair, maintenance, electricity are received and used by the tenant only i.e. the appellant and not by the landlord – refund allowed
  • ST-Cenvat Credit – Amount towards Exempted service wrongly shown in ST-3 return – In the absence of identification of the exempted service provided by the appellant and in the wake of the assertion of the appellant that it had not provided any exempted services during the relevant period, the demand cannot be sustained
  • ST-Whether services of cutting, drilling, punching, bending and notching of material on job work basis, in the factory of the principal, provided by the respondent falls under the category of Manpower Recruitment or Supply Agency Services
  • Central Excise-Classification of PVC Doors and Windows – The process involved before fixing the windows or doors is a simple assembly at site as the profiles beadings and other items required are as per the specific dimensions of various windows or doors. We find that applying the Rule 2 (a) of the interpretation Rules, it is clear that the unassembled windows and doors, even incomplete or unfinished are to be classified with reference to goods which are complete or finished – under heading 3925.20
  • Central Excise- Penalty under section 11AC – clearance against the dummy challan – clandestine removal – Penalty was not confirmed under any other provision nor also invoked in the show cause notice. Accordingly, confirmation of penalty cannot be sustained.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480 Continue reading

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 9, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 9, 2016

29

DIRECT TAX

IT: There cannot be a notice for re-assessment inasmuch as the question of re-assessment arises only when there is an assessment in the first instance – M/s Standard Chartered Finance Ltd. Vs. CIT, Bangalore & Anr (2016 (3) TMI 150 – Supreme Court)
IT – VDS’ 2016: Cases where notices have been issued or search has taken place or individuals against whom Govt. has prior information from another Country won’t be eligible for scheme.
INCOME ACCRUEL OF INTREST :Where assessee was following mercantile system of accounting, once interest amount had been credited to assessee and tax had also been deducted by payer, assessee could not take plea of not offering it as income on ground that he had not actually received same – [2016]  (Mumbai – Trib.)
• CBDT notifies 15% depreciation allowance on Oil Wells. Notification 13/2016.

INDIRECT TAX

ST: Management Maintenance and Repair Services – Whether notional interest to be taken as value of service – prima facie case is against the appellant since Notional interest is to be included in the value of services – Satya Prakash Builders Pvt. Ltd. Vs. CCE&ST, Jaipur-I (2016 (3) TMI 137 – CESTAT New Delhi
• 6% Tax on online advertisement / Google Tax, Such provisions are applicable from 1st June, 2016.The levy clearly is targeted to tax various online advertisements companies like YouTube , Google , Facebook , Twitter etc.

OTHER UPDATES

Bank Branch Statutory Audit: Banks have received the lists from RBI and commenced sending emails to the prospective Auditors.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 6,2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 6,2016

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Taxability of Dividend in the hands of Shareholders- Union Budget 2016

Taxation of dividends has seen several twists and turns over the years. In order to reduce cost of collection and curb tax evasion through non-reporting of dividends by shareholders, Government had introduced section 115-O in the Income-tax code through Finance Act, 1997. The section presently provides for 15% tax on dividends distributed by a domestic company. After considering grossing up, surcharge and cess, the effective rate of dividend distribution tax (‘DDT’) stands at approximately 20%.

Finance Bill, 2016 has introduced a concept of progressive taxation of dividends. Proposed section 115BBDA seeks to tax dividends in excess of INR 1 Million @ 10% (plus surcharge and cess) in the hands of individuals, HUFs, partnership firms and LLPs resident in India.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5,2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 5,2016

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Direct Tax

  • TRANSFER PRICING – COMPUTATION OF ARM’S LENGTH PRICE: Where assessee had benchmarked its international transactions on TNMM basis and TPO had neither disputed assessee’s claim that TNMM was most appropriate method, nor comparables selected by assessee, it was not open for TPO to reject benchmarking done by assessee and make adhoc ALP additions in value of international transactions – [2016]  16 (Mumbai – Trib.)
  • ON BORROWED CAPITAL: Where assessee paid interest on borrowed capital which was used for acquisition of windmill for extension of existing business of generation of electricity through windmill, interest could not be allowed till capital asset acquired by assessee was put to use – [2016] INTEREST 277 (Chennai – Trib.)
  • UTILIZATION OF CAPITAL GAINS : Where assessee purchased a vacant site but couldn’t complete construction of house within prescribed period of three years to avail exemption from capital gain, whole of capital gain was liable to be taxed in previous year in which period of three years expired from date of sale of original asset

Indirect Tax

  • Following activities undertaken by the applicant would not amount to manufacture or deemed manufacture under Section 2(f) of the Central Excise Act 1944 namely; Inspection testing and installing batteries Cleaning lint brushing and deodorizing Touching up and re-stitching Filing debundling and jewellery correction Activities related to spectacles and frames Folding hanging and ironing Polishing shinning and coating Tagging Freebies Protective stickering Placing the products in original box Inserting warranty card Inserting moisture absorbing tablets Inserting books mark and Replacing shoe laces- (/s Amazon Seller Services Private Limited, Bangalore Versus The Commissioner of Central Excise, Thane-I – 2016 (3) TMI 69 – AUTHORITY FOR ADVANCE RULINGS).
  • Claim of interest on delayed Refund – delay in grant of refund – relevant date to be computed from the date of application of refund or from the date of rectification of defect in the refund application – The adjudicatory process by no stretch of imagination can be carried on beyond three months. It is required to be concluded within three months – Interest allowed from the date of application- (Union of India & Others Versus M/s Hamdard (Waqf) Laboratories – 2016 (3) TMI 68 – SUPREME COURT)

MCA Updates

SHARES – POWER OF COMPANY TO PURCHASE ITS OWN SECURITIES: In law, petitioner is entitled to buy back its own shares by means of a scheme under section 391 read with sections 100 – 104 of the Companies Act, 1956 , scheme cannot be said to be a colourable device to evade income tax, it is a legally permissible procedure which petitioner is entitled to follow to buy back its shares

Key Dates

E-Payment of Service Tax for Feb by companies: 06/03/2016

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 9555555480

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)