Point of Taxation Rules – Applicability of New or Old rate of Service Tax

Point of Taxation Rules – Applicability of New or Old rate of Service Tax Posted: 16 May 2012 08:30 PM PDT CENTRAL Board of Excise and Customs (CBEC) has issued clarification vides Circular No. 158/9/ 2012–ST dated. 8th May, 2012 on the rate of service tax applicable wherein invoices were raised before 1st April 2012 and the payments shall be after 1st April 2012 in case of the 8 specified services... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Some More Tax Sops As Budget Passed Posted: 16 May 2012 08:29 PM PDT The Union Budget 2012-13 and the Finance Bill, 2012 has been passed by the Lok Sabha and is likely to be passed by Rajya Sabha this week and then become a statute on President's assent. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] TDS on exempt incomes (especially agricultural income) Posted: 16 May 2012 08:25 PM PDT It is obvious that the TDS provisions are going to be expanded day by day even in the direct Tax Code era. In the process to recover more and more tax through this mode of recovery, in many cases tax is also deducted from incomes which are expressly exempt. Many cases are wandering the corridors of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Guidance Paper on Draft Place of Provision of Services Rules, 2012 Posted: 16 May 2012 08:25 PM PDT The Finance Minister has introduced the Finance Bill, 2012 proposing, inter alia, taxation of services based on a negative list. This announcement involves a paradigm shift by moving away from taxation of specified description of services to a new system of taxation of all services except those... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Adhoc disallowance should not be made for expenses which can not be inflated Posted: 16 May 2012 08:21 PM PDT As far as difference in foreign exchange is concerned, it is to be computed based on straight formula. Similarly, depreciation could also be verified from details available on the record. Considering all these aspects, we set aside this issue to the file of the Assessing Officer for readjudication. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Few tips to Prevent Income Tax Raids Posted: 16 May 2012 08:20 PM PDT One should not keep any unaccounted or undisclosed money, property or income popularly known as black money. If such a disclosure is made before its detection by the Income Tax Department, the chances of being trapped in a tax raid are minimized. A tax raid may also be conducted against a person in... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Double Tax Avoidance Agreements & Taxation Posted: 16 May 2012 08:20 PM PDT The Double Tax Avoidance Agreement (DTAA) is essentially a bilateral agreement entered into between two countries. The basic objective is to promote and foster economic trade and investment between two Countries by avoiding double taxation. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Deductions allowable against Income from House Property Posted: 16 May 2012 08:19 PM PDT Sec. 24 has been amended w.e.f. 01-04-2002. Before the amendment, various categories of expenditure like collection charges, insurance premium, ground rent, land revenue, etc., were allowable, but after the amendment, only two types of deductions are possible, namely, 30% of the total annual value... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Procedure for Online Registration of TAN Posted: 16 May 2012 08:18 PM PDT The income tax department has asked all deductors to register their TAN on NSDL web site. Once registered, the deductors will be provided User ID and password for authenticated access. Benefit of registration- The access will result in the following benefits to the deductors. View of status of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Service Tax Exemptions Under New Negative List Regime Posted: 16 May 2012 08:15 PM PDT Under the present system there are 88 exemption notifications. The need for exemptions is not obliterated with the introduction of negative list. While some existing exemptions have been built into the negative list, others, wherever necessary, have been retained as exemptions. In addition new... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Declared Services under Service Tax & Tax Provisions Posted: 16 May 2012 08:02 PM PDT In the definition of 'service' contained in clause (44) of section 65B of the Act it has been stated that service includes a declared service. The phrase 'declared service' is also defined in the said section as an activity carried out by a person for another for consideration and specified in... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] PAN Meaning, Significance, who can apply & Procedure Posted: 16 May 2012 07:51 PM PDT Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (e.g. individual, firm, company etc.) is issued a unique PAN. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] MVAT – Input Credit – No set off without any tax being received into the Government Treasury Posted: 16 May 2012 06:44 PM PDT The Sales Tax Department will identify the Defaulters namely, registered selling dealers who have not paid the full amount of tax due in the Government Treasury either by not filling their returns at all or by filing returns but not paying the full tax due or where returns are filed but sales to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Offence u/s.138 of Negotiable Instruments Act can be compounded at the discretion of Complainant Posted: 16 May 2012 12:50 PM PDT The word 'compromise' itself signifies an agreement between the two parties to compound the offence. If the parties do not agree to compound the offence, the Court has to proceed with the complaint. It is different thing that the Court on considering the offer of payment of cheque amount plus cost... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] CIT (A) should consider additional evidence before passing the order Posted: 16 May 2012 12:40 PM PDT On appeal, the assessee filed the details, which are required by the AO, before the CIT(A), but the CIT(A) rejected the same. We find that under the similar circumstances in AY 2005-06 and 2006-07, the CIT(A) admitted the additional evidence and details filed by the assessee and remanded the matter... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] If Section 263 order not survive then assessment order in pursuance to such order cannot survive too Posted: 16 May 2012 11:10 AM PDT Hon'ble Jurisdictional High Court modified the order of the ITAT and, instead of order under Section 263 having been quashed by the ITAT, set aside the matter back to the file of the CIT for passing the fresh order under Section 263. However, the fact remains that at present the order under Section... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Rent to be charged as 'Income from other sources' if not chargeable to income tax as profit and gains of business or profession Posted: 16 May 2012 11:10 AM PDT Major source of income credited by the assessee company in the profit and loss account is Other Income of Rs. 3,00,000/- and Rent of Rs. 1,49,000/-. The assessee had not carried out any business activity in the current year nor the assessee has produced any evidences in support of its argument that... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Depreciation allowed on capital expenditure on account of payment of customs duty Posted: 16 May 2012 11:00 AM PDT Directions issued by the Customs Department, the payment of customs duty has been made though the same has been shown as advance or a note has been appended in the accounts for contingent liability. Therefore, in our view the Assessee has made the payment of customs duty only when the liability has... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Section 205A & 205C of Companies Act 1956 are not violative of Article 14 of Constitution Posted: 16 May 2012 10:50 AM PDT Reading of the judgment dated 07.7.2011 rendered in the earlier writ petition, it becomes clear that the petitioner had challenged the vires of Section 205A and 205C on the ground that these provisions were arbitrary and violative of Article 14 of the Constitution. It was also argued that these... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Stay against Income Tax Demand if Assessee not produced his Present financial position? Posted: 16 May 2012 10:35 AM PDT These two stay applications are connected and issues are similar. These stay applications are preferred by assessees on the issue whether the long term capital gains and short term capital gains offered should be treated as business income or profession. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Confession of co-accused u/s. 108 Customs Act not admissible if he is not jointly tried with Petitioner Posted: 16 May 2012 10:30 AM PDT A confession of the co-accused is admissible only under Section 30 of the Evidence Act. One of the essential requirements of the said provision is that the two accused should be tried jointly. Since the confession of the co-accused is not admissible as he is not being jointly tried with the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Appeal dismissed for Non-Prosecution can be recalled on pray for recall Posted: 16 May 2012 10:20 AM PDT There was no communication or information as to why the revenue chose to remain absent on that date. The Tribunal on the basis of inherent powers, treated the appeal filed by the revenue as un-admitted in view of the provisions of Rule 19 of the Appellate Tribunal Rules, 1963. The assessee, if so... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] In the absence of cooperation from Assessee CIT (A) can adjudicate appeal on merits Posted: 16 May 2012 10:00 AM PDT We have carefully considered the rival submissions in the light of the material placed before us. We have also gone through the order passed by the learned CIT (A). It is observed that learned CIT (A) has dismissed the appeal filed by the assessee in limine without considering the merits of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Assessee entitled to depreciation @ 60% on the computer & computer peripherals Posted: 16 May 2012 09:50 AM PDT The return of income in the present case was filed at a loss of Rs.19,03,733/-. The only addition made to that loss is regarding depreciation claimed on computers which is granted by the Assessing Officer @15% as against the claim of the assessee of 60% and excess depreciation claimed by the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] NSE byelaws, rules and regulations would prevail over the Limitation Act, 1963 Posted: 16 May 2012 09:40 AM PDT NSE byelaws, rules and regulations would have statutory force. These statutory byelaws were brought into effect with the approval of the Securities Exchange Board of India ('SEBI') under Section 9 of the Securities Contract (Regulation) Act, 1956. The said bye-laws would prevail over the Limitation... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] ITO to Undergo 3 Years Imprisonment in Disproportionate Assets Case Posted: 16 May 2012 12:26 AM PDT The Special Judge for CBI Cases, Bhopal has convicted Shri S.K.Soni, the then Income Tax Officer, Bhopal U/s 13(2) r/w 13(1)(e) of PC Act and sentenced him to undergo three years Rigorous Imprisonment with a fine of Rs.35 lakh in disproportionate assets case. A case was registered on 13/09/1999... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] View Online e-TDS / TCS statement submitted with status Posted: 16 May 2012 12:24 AM PDT A facility to register TAN online is available on the TIN website (www.tin-nsdl. com). The Income Tax Department requires all deductors to register their TANs online. Authenticated access (through user ID and password) will be provided to registered deductors. Registration is free. An... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Return of income is the only document where assessee can furnish his income details Posted: 16 May 2012 12:23 AM PDT Hon'ble Supreme Court in the case of CIT vs Reliance Petro Products Pvt. Ltd reported in 322 ITR 0158(SC). has clearly held that the return of income is the only document where the assessee can furnish his particulars of income, where as in the instant appeal, the appellant company has not... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Increase in Number of Tax Payers Posted: 15 May 2012 09:15 PM PDT The number of effective income tax assesses as well as the number of registered Central Excise and Service Tax assesses during the years 2006-07 to 2010-11 are as under: [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Preventive Measures to Control Crime Against Women Posted: 15 May 2012 09:03 PM PDT Ministry of Home Affairs has sent a detailed advisory to all State Governments/UTs, wherein they have been, inter-alia, advised to adopt appropriate measures for swift and salutary punishment to the persons found guilty of violence against women and children, improve the quality of investigations,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] File applications for 58 SEZ ports codes – Policy Circular No.64 (RE-2010) /2009-14 Posted: 15 May 2012 09:02 PM PDT Policy Circular No.64 (RE-2010) /2009-14 Director General (Systems) have accorded SEZ port codes to the following 58 SEZs which have been uploaded on DGFT's website [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Amendment in the conditions and modalities for registration of contracts with DGFT for export of sugar Posted: 15 May 2012 09:00 PM PDT Policy Circular No. 63 (RE-2010)/2009-14 (i) The application for issue of RC can be for an amount upto a maximum quantity of 25,000 MT (Twenty five thousand metric tons). Earlier this limit was 10,000 MT per RC. [Please refer Para 3 of Policy Circular No. 62(RE-2010)/2009-14 dated 14.05.2012]. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Tariff Value – Hike in Brass Scrap; Decrease for Gold and Silver Posted: 15 May 2012 09:00 PM PDT The Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance has issued a Notification No. 42/2012-Customs (N.T.) dated May 15, 2012 and thereby notifying change in tariff value of Brass Scrap (all grades), Poppy Seeds, Gold and Silver as shown in the tables below: [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Conversion of EEFC balances into rupee balances will only be applicable to available balances in EEFC account Posted: 15 May 2012 07:14 PM PDT A.P. (DIR Series) Circular No. 128 Based on various queries received from Authorised Dealers, it is clarified that the conversion of the EEFC balances into rupee balances will only be applicable to available balances in the EEFC account which may be arrived at by netting off earmarked amounts on... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Amends Handling of Cargo in Customs Areas Regulations, 2009 (notification No. 26 / 2009 -Customs (N.T.), dated the 17th March, 2009) Posted: 15 May 2012 07:11 PM PDT Notification No. 43/ 2012-Customs (N.T.) 1. (1) These regulations may be called the Handling of Cargo in Customs Areas (Amendment) Regulations, 2012. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Handling of Cargo in Customs... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Transfers of ITAT Members (May 2012) Posted: 15 May 2012 03:59 PM PDT Vide Order dated 11.5.2012 passed in Pursuance of the consultations of the collegiums of the Income tax Appellate Tribunal consisting of the President and two senior-most Vice-Presidents, the following Members of the Income Tax Appellate Tribunal have been transferred, [[ This is a content summary only. Visit my website for full links, other content, and more! ]] If facts are same then ITAT has to its follow its earlier decision Posted: 15 May 2012 01:28 PM PDT The assessee is a company engaged in management consultancy, implementation of internal controls, system audits, arranging finance from financial institutions and financing and advisory services in the capital markets. It is also doing NBFC business and is a Non-banking Finance Company registered... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Merely because there was no evidence of denial or rebuttal, the plaintiff's case could not be held to have been proved Posted: 15 May 2012 11:49 AM PDT High Court was legally justified in setting aside the judgement and decree of the trial court and allowing the appeal to the limited extent of remanding the matter to the trial court for a de-novo trial after permitting the defendant-respondent to file the written statement. The appeal consequently... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]