corporate and professional update april 7, 2016

CORPORATE AND PROFESSIONAL UPDATE APRIL 7, 2016

DIRECT TAX:

• Income Tax: Where action of assessee-company to make advances to group companies at a lower rate of interest than interest rate at which assessee-company borrowed such funds, was not shown to be in any manner actuated by business expediency, disallowance of differential interest was justified – [2016] (Gujarat)
• TDS u/s 194J – Tribunal was justified in law in holding that the amounts paid to the doctors is not in the nature of salary and liable for deduction of tax at source as required under section 194J as Professional fees even when assessee engaged the doctors as consultants- (CIT TDS, BANGALORE AND ITO TDS, BANGALORE Versus M/s TELERADIOLOGY SOLUTIONS PVT LTD – 2016- KARNATAKA HIGH COURT)
• Income Tax: Where assessee, a UK based company, entered into agreement with BCCI for capturing and delivering of live audio and visual coverage of cricket matches, since assessee’s did not retain ownership of program content, payment received for rendering aforesaid services was to be taxed as business profits and not as royalty – [2016] (Mumbai – Trib.) CBDT releases e-filing vault: new facility to add higher security to e-filing accounts of taxpayers, press release dated 04-04-2016.

INDIRECT TAX :

• Service Tax: Date of filing refund claim is first date of filing of refund claim; therefore, when claim was first filed on 7-1-2011 but was returned for re-submission and was finally re-submitted with relevant documents in November 2011, date of filing of refund claim would be 7-1-2011 – [2016] (Chennai – CESTAT)
• EXCISE : Where Appellate Tribunal directed assessee to approach Committee on Dispute (Cod) constituted under Supreme Court to raise its grievance but subsequently Apex Court set aside constitution of Cod as it was not at all functional, Tribunal, when approached by assessee again by filing application should have revisited matter and afforded opportunity to assessee to be heard on merit – [2016]  (Rajasthan)
• VAT and Sales : Where Assessing Authority passed reassessment order on assessee and subsequently taking view that reassessment order was prejudicial to interest of revenue, he issued on assessee a notice under section 41(1) proposing to rectify reassessment order, it was Revisional Authority, who was vested with such power to reopen proceedings – [2016] (Karnataka)

KEY DATES :

• Payment of TDS u/s 194IA deducted on purchase of property/TCS collected in March: 07/04/2016
• Submission of Forms received in March to IT Commissioner: 07/04/2016- Form No. 27C(TCS).

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