{"id":1383,"date":"2016-01-14T14:23:53","date_gmt":"2016-01-14T08:53:53","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=1383"},"modified":"2021-12-17T13:24:05","modified_gmt":"2021-12-17T07:54:05","slug":"corporate-and-professional-update-january-10-2016-2","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/","title":{"rendered":"corporate and professional update january 6, 2016"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea966062ad3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea966062ad3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_6_2016\" title=\"CORPORATE AND PROFESSIONAL UPDATE JANUARY 6, 2016\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 6, 2016<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\">INCOME TAX ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#COMPETITION_ACT\" title=\"COMPETITION ACT\">COMPETITION ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#SERVICE_TAX\" title=\"SERVICE TAX\">SERVICE TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#CENTRAL_EXCISE_ACT\" title=\"CENTRAL EXCISE ACT\">CENTRAL EXCISE ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#CST_VAT\" title=\"CST &amp; VAT\">CST &amp; VAT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#CENVAT_CREDIT_RULES\" title=\"CENVAT CREDIT RULES\">CENVAT CREDIT RULES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-january-10-2016-2\/#STATUTES\" title=\"STATUTES\">STATUTES<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled52A.png\" rel=\"attachment wp-att-1481\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1481\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled52A-300x222.png\" alt=\"Untitled52A\" width=\"820\" height=\"607\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled52A-300x222.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2016\/01\/Untitled52A.png 494w\" sizes=\"(max-width: 820px) 100vw, 820px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CORPORATE_AND_PROFESSIONAL_UPDATE_JANUARY_6_2016\"><\/span><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE JANUARY 6, 2016<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"INCOME_TAX_ACT\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\"><span style=\"color: #0000ff;\"><strong>INCOME TAX ACT<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 2(15)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CHARITABLE PURPOSE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #800000;\"><strong>Object of general public utility :\u00a0<\/strong><\/span>Where assessee-society was providing latest information and training to those persons who were already in relevant field of advertising communication, etc. and in such process if certain persons became super-specialists in particular field and institution was charging fee, case would not fall under proviso to section 2(15)<\/p>\n<p>Read our articles: \u00a0<a href=\"https:\/\/carajput.com\/blog\/relevant-parts-of-the-honorable-fm-press-conference\/\">Top Taxation Relaxation to MSMS<\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 37(1)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>BUSINESS EXPENDITURE &#8211; ALLOWABILITY OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Commission :<\/span>\u00a0<\/strong>Foreign export commission paid through <a href=\"https:\/\/carajput.com\/blog\/tag\/co-origination-of-loans-by-banks-and-nbfcs\/\">banking<\/a> channels to foreign commission agent, who sold assesse&#8217;s product in foreign countries, could not be disallowed as unverifiable<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 80-IA<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>DEDUCTIONS &#8211; PROFITS AND GAINS FROM INFRASTRUCTURE UNDERTAKINGS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The use of non-obstante clause in section 80-IA(2A) would show that tax holiday to undertaking providing telecommunication services is in respect of &#8220;profits of eligible business&#8221; and not restricted to &#8220;<a href=\"https:\/\/carajput.com\/blog\/tag\/business-purpose-pgbp\/\">profits derived from eligible business&#8221; as mentioned in section 80-IA(1)<\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM\u2019S LENGTH PRICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Export of commodities to AE at the same price at which those were purchased from local market did not call for transfer pricing adjustment if transaction was made by assessee to retain the status of Star Export House<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/Comparables \u2013 Illustration <\/span>:\u00a0<\/strong>Leading provider of business process outsourcing service cannot be compared to company rendering technical support services by its own<\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Comparables and adjustments\/Adjustments &#8211; Risk adjustment :<\/span>\u00a0<\/strong>Where an assessee, a captive service provider does not assume any risk or takes lesser risk as compared to comparable company which undertakes higher risks, it is entitled to some risk adjustments<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 145<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>METHOD OF ACCOUNTING<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #800000;\">Rejection of accounts :<\/span>\u00a0<\/strong>Books of account were rejected, where majority of purchases were found to be not verifiable<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPETITION_ACT\"><\/span><span style=\"color: #0000ff;\"><strong>COMPETITION ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 4<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>PROHIBITION OF ABUSE OF DOMINANT POSITION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where OP, distributor of natural gas, invoked &#8216;pay for if not taken&#8217; liability under gas sales agreement (GSA) with informant, conduct of OP was not abusive as GSA was entered into by parties after thorough negotiation<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"SERVICE_TAX\"><\/span><a href=\"https:\/\/carajput.com\/services-tax-registration.php\"><span style=\"color: #0000ff;\"><strong>SERVICE TAX<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65(64)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>MANAGEMENT, MAINTENANCE OR REPAIR SERVICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Since there was difference of opinion between two members of Tribunal as to whether services provided by assessee engaged in exporting software consultancy, development of software, maintenance or repair of software and management consultancy in relation to ERP software implementation were taxable under head &#8216;management maintenance or repair&#8217; service or &#8216;consulting engineers&#8217; service and to what extent same was taxable, matter was to be referred to Third Member<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 67<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>VALUATION OF TAXABLE SERVICES \u2013 EXCLUSIONS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Interest was excluded from &#8216;taxable value&#8217; vide Explanation 1(viii) to section 67 from 10-9-2004; since insertion of said Explanation had removed an anomaly that existed earlier, it should be treated as clarificatory in nature and retrospective from 16-8-2002<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENTRAL_EXCISE_ACT\"><\/span><a href=\"https:\/\/carajput.com\/services-excise-registration.php\"><span style=\"color: #0000ff;\"><strong>CENTRAL EXCISE ACT<\/strong><\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 3<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CHARGE\/LEVY<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Toilet preparations containing alcohol are subject to excise duty under Medicinal and Toilet Preparations (Excise Duties) Act, 1955 and said duty is collected by States; duty cannot be demanded thereon under Central Excise Act<\/p>\n<p style=\"text-align: justify;\">In case clearance by EOU to job-workers in DTA, local sale price in India cannot be regarded as &#8216;customs value&#8217; under proviso to section 3(1) of Central Excise Act, 1944; value is to be determined as per customs law<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 11A<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>RECOVERY &#8211; OF DUTY OR TAX NOT LEVIED\/PAID OR SHORT-LEVIED\/PAID OR ERRONEOUSLY REFUNDED<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">When first notice had merely raised issue of exemption, second notice raised upon new facts regarding valuation, can validly invoke extended period of limitation<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CST_VAT\"><\/span><span style=\"color: #0000ff;\"><strong>CST &amp; <a href=\"https:\/\/carajput.com\/services-vat.php\">VAT<\/a><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 8 OF CENTRAL SALES TAX ACT, 1956<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>RATE OF TAX &#8211; CONCESSIONAL RATE OF TAX<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee, a works contractor, applied for inclusion of construction equipment, plant, machinery and tools used in process of execution of works contract in certificate of registration under Central Sales Tax Act, said items were eligible for inclusion<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"CENVAT_CREDIT_RULES\"><\/span><span style=\"color: #0000ff;\"><strong>CENVAT CREDIT RULES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 2(l)<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; INPUT SERVICE &#8211; CAB SERVICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Cab services utilised by a BPO company for transportation of its employees to and from work place and their homes, are eligible for input service credit<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 3<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; REMOVAL OF INPUTS\/CAPITAL GOODS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">No cenvat reversal can be demanded on exchange of inputs with associate\/related companies, as demand is revenue neutral; however, for infraction of procedural rule 3(5) of CENVAT Credit Rules, 2004, penalty is leviable<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>RULE 9<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #00ccff;\"><strong>CENVAT CREDIT &#8211; DOCUMENTS ON WHICH CREDIT MAY BE TAKEN<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Non-mentioning of registration number of service provider cannot be ground to deny input service credit for those services which are eligible<\/p>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"STATUTES\"><\/span><span style=\"color: #0000ff;\"><strong>STATUTES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>DIRECT TAX LAWS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Section 115JB, read with sections 115JA and 271(1)(c), of the Income-tax Act, 1961 \u2013 Minimum Alternate Tax \u2013 Penalty under section 271(1)(c) wherein Additions\/ Disallowances made under normal provisions of the said Act but Tax levied under MAT provisions under sections 115JB \/115JC, for Cases prior to Assessment Year 2016-17<\/p>\n<p style=\"text-align: justify;\">Section 153C, read with section 158BD, of the Income-tax Act, 1961 \u2013 Search and Seizure \u2013 Assessment of income in case of other person \u2013 Recording of Satisfaction note under section 158BD\/153C of said Act<\/p>\n<p style=\"text-align: justify;\">Income-tax (Twenty Second Amendment) Rules, 2015 \u2013 Substitution of rules 114B, 114C, 114D, 114E, Form No.60, 61 and 61A xes, Tax assistant Group C posts, Recruitment Rules, 2015<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE JANUARY 6, 2016 INCOME TAX ACT SECTION 2(15) CHARITABLE PURPOSE Object of general public utility :\u00a0Where assessee-society was providing latest information and training to those persons who were already in relevant field of advertising communication, etc. and in such process if certain persons became super-specialists in particular field and institution was &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172,9,4,1],"tags":[3359,9083,9066,9082,2601,9038],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1383"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=1383"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1383\/revisions"}],"predecessor-version":[{"id":20047,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/1383\/revisions\/20047"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=1383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=1383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=1383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}