TDS on Salary Payments to Non Residents & Expatriates

TDS on Salary Payments to Non Residents & Expatriates Posted: 05 Feb 2012 06:26 PM PST 1. As per Section 192 of the IT Act, any person responsible for paying any amount under the head salaries is required to deduct tax at source at the time of payment. This section unlike some other provisions, does not distinguish between payment of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012 may bring more services in tax net with introduction of negative list Posted: 05 Feb 2012 06:20 PM PST The government is expected to keep 22 services in the negative list and impose 10 per cent tax on the rest, sources said, adding that services for the purpose would be defined as all kinds of economic activities, barring goods, money and immovable... [[ This is a content summary only. Visit www.taxguru.in for full article.]] PAn likely to become most potent tool to unearth black money, tax evasion Posted: 05 Feb 2012 10:52 AM PST Come next financial year, the PAN card is likely to become the most potent tool for the Income Tax Department to unearth black money, tax evasion and instances of criminal financing in the country.A recent directive of the Central Board of Direct... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Payment for shrink wrapped software/ off-the-shelf software amounts to 'royalty' Posted: 05 Feb 2012 02:29 AM PST CIT v. Synopsys International Old Ltd(Karnataka High Court) - Payment for shrink wrapped software/off-the­ shelf software amounts to 'royalty' within the meaning of Section 9(1)(vi) of the Income-tax Act, 1961 as well as under Article 12 of the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Taxability of Income from Leasing of Hotel with provision and maintenance of various facilities and amenities Posted: 05 Feb 2012 02:07 AM PST M/s. Kenton Leisure Services, P. Ltd. Vs. DCIT (ITAT Cochin) - It was held that lease rental income arising from agreements for letting on lease hostel premises along with provision and maintenance of various facilities and amenities would be... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Receipt of retention money by furnishing bank guarantee not chargeable to tax as it accrues only on a successful completion of a contract Posted: 05 Feb 2012 01:43 AM PST ADIT Vs. Ballast Nadam Dredging (ITAT Mumbai) - It was held that retention money withheld by the contractee pending completion of contract work does not accrue to the assessee/contractor in the year in which the amount is retained. We also observe... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Consideration for transfer of limited right to use the know-how taxed as royalty income Posted: 05 Feb 2012 01:19 AM PST Atlas Copco AB of Sweden v. CIT (Bombay High Court) - It was held that Amount received by the taxpayer was on account of right to use the know-how for a specified period and there was no outright transfer of know-how. Therefore, amount received was... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Expression 'consultancy' service involves giving of an advice or advisory services by a professional – AAR Posted: 04 Feb 2012 09:33 PM PST In Re Shell Technology India Private Limited (AAR) - It cannot be denied that the Applicant receives services in the form of general finance advice, Taxation advice, legal advice, advice on Information Technology, media advice, assistance in... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Income-tax Authorities have no jurisdiction to tax payment made outside for supplies taking place outside the country Posted: 04 Feb 2012 08:53 PM PST In Re SEPCO III Electric Power Construction (AAR) - The applicant is a company incorporated under the laws of China on 26.3.2009. The applicant, among other things, is a supplier of equipments for Electric Power Projects. On 26.3.2009, the applicant... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Business income accruing or arising to the applicant can be taxed in India only in respect of such operations carried out in India – AAR Posted: 04 Feb 2012 08:36 PM PST CTCI Overseas Corporation Ltd. In Re (AAR) - In the present case, though the applicant has a business connection in India, it has not carried out any part of the business relating to offshore supplies in India. Under the deeming provision of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Mandatory death penalty unconstitutional – Supreme Court Posted: 04 Feb 2012 08:10 PM PST The Supreme Court has ruled that mandatory death penalty for an offender under the Arms Act was unconstitutional as it violated fundamental rights guaranteed to a citizen.A bench of Justices Asok Kumar Ganguly (since retd) and J S Khehar said... [[ This is a content summary only. Visit www.taxguru.in for full article.]] International Taxation – Witholding Tax Rates and provisions Posted: 04 Feb 2012 08:05 PM PST 195. [(1)Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this Act (not being income chargeable under the head "Salaries" shall, at... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Merely because appellant did not make debit of the CENVAT Credit and did not make proper entries in the ST-3 return, confirmation of service tax demand not justifiable Posted: 04 Feb 2012 08:03 PM PST In this case, the Service Tax demand has been confirmed on the ground that the service tax payable has not been debited in the CENVAT Credit account and it has not been reflected in the ST 3 return. In view of the fact that even in the cases of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Fabrication does not amount to manufacture, service tax is not leviable Posted: 04 Feb 2012 08:02 PM PST Tribunal had considered the Larger Bench decision of the Tribunal in the case of Mahindra & Mahindra Limited 2005 ((190) ELT 301 before coming to the conclusion that when fabrication does not amount to manufacture, service tax is not... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Notification 32/2004-ST does not require consignment-wise declaration on consignment notes or prescribe any format for filing the declaration Posted: 04 Feb 2012 08:01 PM PST 3. As the respondents did not submit the required declaration in proper format, Revenue entertained a view that they were not entitled to the 75% abatement in terms of Notification No. 32/04-ST. Accordingly, proceedings were initiated against them... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Need for more research in investor education- SEBI Chairman Posted: 03 Feb 2012 08:19 PM PST Inaugurating the Conference, Mr. U K Sinha, Chairman, SEBI called for more research in the field of investor education. He also said that the various financial regulators in India and the Government of India are working together in the formulation... [[ This is a content summary only. Visit www.taxguru.in for full article.]] SC Sympathy in bounced cheque case Posted: 03 Feb 2012 08:19 PM PST B. Chandramathi Vs. N. Prakash (SC) - Appellant is about 51 years of age. She is a poor widow who is eking out a living for herself and her family by making jowar rotis and selling them. She is the only earning member of her family. She has two...