CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 29, 2016

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 29, 2016

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DIRECT TAX

  • Income Tax: Disallowance being 1/10th Global Depository Receipts – whether the GDR is nothing but increase in the capital and expenses relating to the same is capital in nature? – Section 35D(2)(iv) categorically deals with the expenses in connection with the issue, or public subscription of shares and debentures of the Company. – grievance of the AO is ill conceived – Tri
  • Income Tax: Interest accruing on FDRs treated as income from other sources – since the assessee is not having any other source of income de horse this business undertaking which was not set up, interest income earned by the assessee till 31/03/2011 cannot be brought to tax – to be reduced from the cost of project – Tri
  • Income Tax: Reopening of assessment – receipt of accommodation entries – without forming a prima facie opinion, on the basis of such material that income has escaped assessment the AO can not assume valid jurisdiction to initiate proceedings and to issue notice u/s 147/148 – Notice u/s 148 quashed – Tri

INDIRECT TAX             

  • Service Tax: Transport of passengers on domestic routes through its helicopters – the contracts were invariably between the appellant and the charter parties who hired appellant’s helicopters for the purpose of transporting passengers. – prima facie services clearly fall within the ambit of STGU – Tri
  • Service Tax: Eligibility for refund of accumulated CENVAT credit – Rule 5 of CCR – there was no taxability of any service provided by respondent prior to registration. Accordingly, input credit was not possible to be utilized for which that was accumulated. – credits were accumulated prior to registration – No refund can be granted – Tri
  • Central Excise: SSI Exemption – Clubbing of clearance value of the proprietaryship firm with the private limited company -, it is evident from the records that there was no manufacturing activity in other units – clubbing upheld – Tri
  • Customs: Seeking conversion of free shipping bills to Drawback shipping bills – a power given by Sec 149 of the Customs Act 1962 to the officers under a statute can not be curtailed by a Circular issued by CBEC – Tri
  • VAT and Sales Tax: Adequate rebut of Legal presumption – Deemed sale drawn by the authorities under Section 46(15)(d) of the AGST Act – the authorities have failed to discharge the obligation – HC

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

CORPORATE AND PROFESSIONAL UPDATE DATED MARCH 22,2016

CORPORATE AND PROFESSIONAL UPDATE  DATED MARCH 22,2016

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DIRECT TAX

  • Income Tax: Wherever under the DTAA’s. Make available clause is found, then as there is no imparting, the payment in question is not ‘FTS’ under the Treaty and when there is no ‘FTS’ clause in the treaties, the payment falls under Article 7 of the Treaty and is business income. – Tri
  • Income tax ; TDS u/s 192 or 194J : The difference between this clause in two types of agreements itself goes to prove that doctors who are engaged on retainer ship basis are not the servants of the assessee since they are allowed to do whatever they want except joining the similar business while other doctors who are on the pay roll of the assessee are debarred from doing any other activity apart from that of the assessee- (The A.C.I.T. (TDS) , Chandigarh Versus M/s Fortis Healthcare Ltd. – 2016 (3) TMI 629 – ITAT CHANDIGARH)

INDIRECT TAX               

  • Service Tax: Exemption from service tax on construction service provided in case of religious use but not to charitable purpose – clause 13(c) of Notification No. 25/2012-ST, dated 20.6.2012 – in the absence of petitioner’s demonstration that  enactment/provision /notification  is arbitrary, discriminatory or violative of Article 14 of the Constitution of India, it cannot be declared to be un constitutional. – HC
  • Service Tax: The appellants are eligible for refund under Rule 5 of CCR read with Notfn No.12/2003 as amended on the input services i.e. Company Secretary Service, Chartered Accountant service , Security service, Legal Consultancy service, ITS service, GTA service – Tri
  • Service Tax: When the assesse is not disputing his liability for discharging the statutory obligations and has paid the entire tax alongwith the interest and 25% of the penalty and there after discharging his obligations as a tax payer, in view of the provisions of Section 73(4A) the proceeding should be deemed to have been concluded – Tri
  • Service Tax: Imposition of penalties for the period 2007-08 to 2010-11 – Sections 76 & 78 of the Finance Act, 1994 – if the show cause notices are issued after the date of amendment, penalties under Section 76 and 78 simultaneously cannot be imposed and hence setting aside the penalty under Section 76 is uninterferable – Tri
  • Service Tax: Liability of tax on extended warranty service between October 2005 and September 2010 – Mere coverage by the extended warranty scheme does not, of itself, create an intention to use the service of the dealer. – Tri
  • Central Excise: Valuation of goods sold through dealers – inclusion of the expenditure incurred by the wholesale dealers in the assessable value of the goods sold by the appellant to such wholesale dealers – Not to be included – Tri
  • Central Excise: Eligibility of quantity discount – as cash discount is something which is “known” at or prior to the clearance of the goods, being contained in the agreement of sale between the assessee and its buyers, and must therefore be deducted from the sale price in order to arrive at the value of excisable goods “at the time of removal”. – Tri
  • VAT and Sales Tax: Principles of natural justice – it was the assessee, who invited the attention of the Tribunal to the balance sheet – the Tribunal is entitled to come to its own conclusion from what was produced. It is not part of the principles of natural justice to expect the Tribunal to confront the person producing the document with what is found by the Tribunal – HC

MCA UPDATES

  • Companies Law: If contract expressly bars award of interest pendente lite, the same cannot be awarded by the Arbitrator. – the bar to award interest on delayed payment by itself will not be readily inferred as express bar to award interest pendente lite by the Arbitral Tribunal, as ouster of power of Arbitrator has to be considered on various relevant aspects – SC

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