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Reimbursement of salary costs of seconded personnel – whether is in the nature of fees for technical services u/s 9(1)(vii) – TDS u/s 195 – all the payment made by the assessee to non-resident on account of FTS or royalty a chargeable to tax irrespective of any profit element in the said payment or not- (M/s Food world Supermarkets Ltd. Versus The Dy. Director of Income-tax, (International Taxation) Circle-I (1), Bangalore, ITAT BANGALORE).
The AO cannot treat a transaction as bogus only on the basis of suspicion or surmise. He has to bring material on record to support his finding that there has been collusion/connivance between the broker and the assessee for the introduction of its unaccounted money.
A transaction of purchase and sale of shares, supported by Contract Notes and Demat statements and Account Payee Cheques cannot be treated as bogus- (DCIT vs. Sunita Khemka (ITAT Kolkata).
Notification No. 52/2003-Customs dated 31-03-2003 is further amended so as to enable EOUs to become eligible for duty exemption on raw materials/parts consumed in the manufacture of certain specified ships/vessels and cleared to DTA, even if such ships/vessels are exempt from basic customs duty and central excise/CV duty.
Notification No. 22/2003-CE dated 31-03-2003 is further amended so as to enable EOUs to become eligible for duty exemption on raw materials/parts consumed in the manufacture of certain specified ships/vessels and cleared to DTA, even if such ships/vessels are exempt from basic customs duty and central excise/CV duty.
Notification No. 12/2012-CE dated 17.3.2012 is further amended so as to provide an exemption from excise duty on all raw material and parts for use in the manufacture of certain specified ships/vessels subject to actual user condition and also removing the requirement of manufacturing of ships/vessels in a custom bonded warehouse under the provisions of Section 65 of the Customs Act, 1962 for availing duty benefits.
Notification No. 12/2012-Customs dated 17.3.2012 is further amended so as to provide an exemption from customs duties on all raw material and parts for use in the manufacture of certain specified ships/vessels subject to actual user condition and also removing the requirement of manufacturing of ships/vessels in a custom bonded warehouse under the provisions of Section 65 of the Customs Act, 1962 for availing duty benefits.
Imposition of penalty under Section 112(b) of Customs Act – Import of old and second-hand textile machinery more than 10 years old – Restriction of 10 years old was removed later same is of no consequence as appellant has intentionally manipulated the documents – Penalty imposed not on the higher side- (Rajul Shah Versus Commissioner of Customs (I) , Nhava Sheva, CESTAT MUMBAI).
Mis-declaration under Transfer of Residence Scheme abetment by car dealer – appellant have venially violated the provisions hence penalty imposed on him under provision of Section 112(a) & (b) of Customs Act is excessive- (M/s Shri Nalin Choksey Versus Commissioner of Customs (Imp) , Mumbai, CESTAT MUMBAI).
It is seeked to amend Notification No. 10/2008 – Customs, dated 15th January 2008, so as to deepen the tariff concessions in respect of specified goods under the Comprehensive Economic Co-operation Agreement (CECA) between India and Singapore, when imported from Singapore.
It is notified that the Form DP-1 shall be submitted online by all the dealers latest by 31/12/2015. The form shall be filed by dealers registered up to 31/10/2015.
Construction of residential quarters for staff – Residential Complex or Commercial complex service – staff quarters constructed by the respondent are not covered under the definition of Construction of complex under Section 65(30a) ibid and therefore the activity does not attract Service tax- (Commissioner of Central Excise, Aurangabad Versus Mall Enterprises, CESTAT MUMBAI).
Levy of penalty for delayed payment of service tax – no show cause notice could be issued for imposition of penalty when service tax alongwith interest is paid before issuance of show cause notice- (M/s. IPF Vikram India Ltd. Versus CCE, Chandigarh, CESTAT NEW DELHI).
Query: M was appointed as director at the Annual General Meeting of a company held in September 2013 and he carried on his duties and functions as a director. In the month of August 2014, it was found out that there were certain irregularities in his appointment, and in August 2014, his appointment was declared invalid.
But Mr. M continued to act as a director even after August 2014 Please clarify, whether the acts done by Mr. MTP are valid and binding upon the company?
Answer: In accordance with section 176 of the Companies Act, 2013 acts done by a person as a director shall be deemed to be valid, notwithstanding that it may afterward be discovered that his appointment was invalid by reason of any defect or disqualification or had terminated by virtue of any provision contained in this Act or in the articles of the company.
In view of the above provisions of section 176 of the Companies Act, 2013, the acts done by Mr. M up to the date of the irregularity in his appointment coming to the notice of the company will be deemed as valid and binding on the Company.
Query: In one of our companies, a director goes abroad for a period of more than 3 months and an alternate director has been appointed in his place under section 161(2).
Now, we have to convene Board meeting in next week. So, our query is -whom should the notice of Board meeting be given to the “original director” or to the “alternate director”? Please advice.
Answer: According to section 173(3), a meeting of the Board may be called by giving at least a 7 days’ notice in writing to every director to his registered address with the company and such notice shall be sent by hand delivery or by post or by electronic means.
There is no legal precedence whether the notice of the meeting is to be sent to the original director or the alternate director. But as a matter of prudence, the notice of the meeting may be served to both the alternate director as well as the original director who is for the time being outside India.
Transfer cover: When a bank in India adds its confirmation to a foreign Letter of Credit, it binds itself to honor the drafts drawn by the beneficiary of the Letter of Credit without any recourse to him provided such drafts are drawn strictly in accordance with the terms of the Letter of Credit.
The confirming bank will suffer a loss if the foreign bank fails to reimburse it with the amount paid to the exporter. This may happen due to the insolvency or default of the opening bank or due to certain political risks such as war, transfer delays or moratorium, which may delay or prevent the transfer of funds to the bank in India. The Transfer Cover seeks to safeguard banks in India against losses arising out of such risks.
Transfer Cover is issued, at the option of the bank to cover either political risks alone, or both political and commercial risks. Loss due to political risks is covered up to 90% and loss due to commercial risks up to 75%.
Applicable premium rates: The premium rates depend on the country of export and the tenor of L/C.
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: singh@carajput.com or call at 9555555480
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