{"id":763,"date":"2015-12-09T05:47:10","date_gmt":"2015-12-09T05:47:10","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=763"},"modified":"2023-08-16T11:50:49","modified_gmt":"2023-08-16T06:20:49","slug":"corporate-and-professional-update-december-8-2015","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-8-2015\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE DECEMBER 8, 2015"},"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-69e749b4e2b75\" 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-69e749b4e2b75\"  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-december-8-2015\/#Corporate_and_Professional_Update_December_8_2015\" title=\"Corporate and Professional Update December 8, 2015\">Corporate and Professional Update December 8, 2015<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-8-2015\/#INCOME_TAX_ACT\" title=\"INCOME TAX ACT\">INCOME TAX ACT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-8-2015\/#_SERVICE_TAX\" title=\"\u00a0SERVICE TAX\">\u00a0SERVICE TAX<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-8-2015\/#CST_VAT\" title=\"CST &amp; VAT\">CST &amp; VAT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-update-december-8-2015\/#_STATUTES\" title=\"\u00a0STATUTES\">\u00a0STATUTES<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Corporate_and_Professional_Update_December_8_2015\"><\/span><span style=\"color: #000080;\"><strong>Corporate and Professional Update December 8, 2015<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled28A.png\" rel=\"attachment wp-att-1553\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1553\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled28A-300x181.png\" alt=\"Untitled28A\" width=\"608\" height=\"367\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled28A-300x181.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/Untitled28A.png 552w\" sizes=\"(max-width: 608px) 100vw, 608px\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"INCOME_TAX_ACT\"><\/span><span style=\"color: #3366ff;\"><strong>INCOME TAX ACT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 10A<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>FREE TRADE ZONE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #993300;\"><strong>Computation of deduction :\u00a0<\/strong><\/span>An assessee cannot include notional interest on surplus funds as income in computation of profits and gains derived by its undertaking from export of articles or things, for purpose of claiming exemption under section 10A &#8211;\u00a0<em>[2015] 119 (Delhi)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 28(va)<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>BUSINESS INCOME &#8211; NON-COMPETE FEE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Clause (va) of section 28 of the Act taxes a sum received for a restrictive covenant in relation to a business, but not a profession. Compensation attributable to a negative\/restrictive covenant is a capital receipt and as the same does not fall within the ambit of section 28(va), it is not taxable &#8211;\u00a0<em>[2015] 293 (Delhi &#8211; Trib.)<\/em><\/p>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 37(1)<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>BUSINESS EXPENDITURE \u2013 ALLOWABILITY OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Once it is established that there is nexus between the expenditure and the purpose of business (which need not necessarily be the business of the assessee itself), the revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and to decide how much is reasonable expenditure having regard to the circumstances of the case &#8211;\u00a0<em>[2015] 308 (SC)<\/em><\/p>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 50C<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>CAPITAL GAINS<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Additional Evidence <\/span><\/strong>p<strong><span style=\"color: #993300;\">:<\/span>\u00a0<\/strong>Stam duty value won&#8217;t apply if value of property adversely affected due to its usage for industrial purposes only &#8211;\u00a0<em>[2015] 139 (Hyderabad &#8211; Trib.)<\/em><\/p>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 92C<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>TRANSFER PRICING &#8211; COMPUTATION OF ARM&#8217;S LENGTH PRICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Comparables and adjustments :<\/span>\u00a0<\/strong>In case of assessee-company engaged in rendering software development services to its AE, companies having functional dissimilarities or having related party transactions in excess of 15 per cent of revenue, could not be accepted as comparables while determining ALP &#8211;\u00a0<em>[2015] 105 (Bangalore &#8211; Trib.)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #993300;\"><strong>Comparables and adjustments &#8211; CUP v. TNMM :\u00a0<\/strong><\/span>Where earlier draft assessment order was not dealt on merits, but set aside only on ground of violation of principles of natural justice, there was nothing wrong in adopting comparables selected by TPO in earlier order by revenue in determining arm&#8217;s length price in international transaction of assessee &#8211;\u00a0<em>[2015] 117 (Madras)<\/em><\/p>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 153A<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>SEARCH AND SEIZURE- ASSESSMENT IN CASE OF<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Conditions precedent:<\/span>\u00a0<\/strong>HC sets aside block assessment as seized material was destroyed in fire that took place at revenue&#8217;s office &#8211;\u00a0<em>[2015] 137 (Delhi)<\/em><\/p>\n<p><span style=\"color: #00ccff;\"><em>\u00a0<\/em><strong>ASSESSMENT &#8211; IN CASE OF SEARCH, ETC. <\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span style=\"color: #993300;\">Conditions precedent :<\/span>\u00a0<\/strong>Where Authorised Officer conducted search under section 132 upon assessee and thereafter Assessing Officer framed assessment under section 143(3) read with section 153A, whereby he treated amount of gifts received by assessee from two individuals an unexplained cash credit and added same in his income, since there was nothing on record to suggest that gifts were ingenuine, impugned addition was beyond scope and ambit of an assessment envisaged under section 153A &#8211;\u00a0<em>[2015] 118 (Mumbai &#8211; Trib.)<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"_SERVICE_TAX\"><\/span><span style=\"color: #3366ff;\"><strong>\u00a0<\/strong><strong>SERVICE TAX<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 65(31)<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>TAXABLE SERVICES &#8211; CONSULTING ENGINEER&#8217;S SERVICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Despite contract giving break-up of price for materials as well as services separately, if contract is treated as &#8216;turnkey contract&#8217;\/&#8217;works contract&#8217;, no service tax is payable on service portion thereof prior to 1-6-2007 &#8211;\u00a0<em>[2015] 134 (Mumbai &#8211; CESTAT)<\/em><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #ff6600;\"><strong>SECTION 65(68)<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>TAXABLE SERVICES &#8211; MANPOWER RECRUITMENT OR SUPPLY AGENCY&#8217;S SERVICES<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">In case of manpower supply to shipping companies, service tax is payable under &#8216;manpower supply services&#8217; on value inclusive of service charges and wages of labour &#8211;\u00a0<em>[2015] 133 (Mumbai &#8211; CESTAT)<\/em><\/p>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 73<\/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 &#8211; SCOPE OF SHOW-CAUSE NOTICE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Show-cause notice is foundation of demand and order-in-original and subsequent orders passed by appellate authorities under statute would be confined to show cause notice; hence, department cannot challenge order of Tribunal on grounds not mentioned in notice\/adjudication order &#8211;\u00a0<em>[2015] 135 (Gujarat)<\/em><strong>\u00a0<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"CST_VAT\"><\/span><span style=\"color: #3366ff;\"><strong>CST &amp; VAT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #ff6600;\"><strong>SECTION 2(29) OF KARNATAKA VALUE ADDED TAX ACT, 2003<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>SALE<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Where assessee in terms of an agreement entered with a transport department prepared ID smart cards as desired by it and supplied them to it after lamination, since smart cards were not commodities saleable in open market, supply of smart cards to transport department could not be held as sale &#8211;\u00a0<em>[2015] 128 (Karnataka)<\/em><\/p>\n<p><span style=\"color: #3366ff;\"><strong><span style=\"color: #ff6600;\"><em>\u00a0<\/em>SECTION 8 OF RAJASTHAN VALUE ADDED TAX ACT, 200<\/span>3<\/strong><\/span><\/p>\n<p><span style=\"color: #00ccff;\"><strong>EXEMPTION OF TAX<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Assessee could claim input tax credit of raw material used in manufacturing of Asbestos Cement Sheets when assessee was specifically exempted from paying VAT due to exemption notification. &#8211;\u00a0<em>[2015] . 307 (SC)<\/em><strong>\u00a0\u00a0\u00a0\u00a0<\/strong><\/p>\n<p>More read:<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/learn\/new-tds-deduction-provision-prevent-cash-transactions-of-more-than-1-crore-section-194n.html\">New TDS deduction No cash transactions exceeding 1 Crore -Section 194N<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/learn\/nsdl-extension-of-qtr-tdstcs-statement-filing-dates-for-4-quarter-of-fy-201920-until-30-june.html\">Extention of TDS\/TCS statement filing Date<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/basic-understanding-on-tds-on-payments-to-resident-contractors-professionals-section-194m-form-26qd-and-form-16d\/\">TDS payment to resident contractors<\/a><strong style=\"text-align: justify;\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"_STATUTES\"><\/span><span style=\"color: #3366ff;\"><strong>\u00a0STATUTES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"color: #00ccff;\"><strong>CORPORATE LAWS<\/strong><\/span><\/p>\n<p>Sovereign Gold Bonds, 2015-16 \u2013 Shifting of issue date thereof &#8211;\u00a0<em>CIRCULAR IDMD.CDD.NO.1157\/14.04.050\/2015-16, DATED 24-11-2015<\/em><\/p>\n<p><span style=\"color: #00ccff;\"><em>\u00a0<\/em><strong>INDIRECT TAX LAWS (ST.\/EX.\/CUS. &amp; (CST &amp; VAT)<\/strong><\/span><\/p>\n<p>Online submission of information in Form DP-1 \u2013 Extension of date thereof &#8211;\u00a0<em>NOTIFICATION NO.F.3(352)POLICY\/VAT\/2013\/1062-73, DATED 23-11-2015<\/em><\/p>\n<p style=\"text-align: justify;\">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\u00a0endeavors. For query or help, contact:\u00a0<a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Corporate and Professional Update December 8, 2015 INCOME TAX ACT SECTION 10A FREE TRADE ZONE Computation of deduction :\u00a0An assessee cannot include notional interest on surplus funds as income in computation of profits and gains derived by its undertaking from export of articles or things, for purpose of claiming exemption under section 10A &#8211;\u00a0[2015] 119 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,4],"tags":[3308,3922,3920,3919,3918,3917,3921],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/763"}],"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=763"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/763\/revisions"}],"predecessor-version":[{"id":25277,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/763\/revisions\/25277"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}