Taxability of waiver of loan taken for acquiring capital asset

Taxability of waiver of loan taken for acquiring capital asset Posted: 08 Jul 2012 07:30 AM PDT It is settled law that if the loan is taken for acquiring the capital asset, waiver thereof would not amount to any income exigible to tax. On the other hand, if this loan was for trading purpose and was treated as such from the very beginning in the books of account, the waiver thereof may result... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Operational Issues Arising Under Reverse Charge Mechanism Scheme of Service Tax Posted: 08 Jul 2012 07:24 AM PDT Service tax is supposed to be paid by the service provider (SP). However, in some of the cases like import of services, payment to transporter for transport of goods by road, etc., the liability to pay tax has been cast on the service recipient (SR). Budget 2012 has made large number of changes in... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Clarification on Point of Taxation for Works Contract Services & open issues Posted: 08 Jul 2012 07:11 AM PDT Query:- What is the option open to the Assessee following Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007 which is rescinded vide Notification No. 35/2012-ST dated 20-6-2012, w.e.f 1-7-2012. Answer:- Change in the manner of payment of tax from... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reverse Charge Mechanism under New Service Tax Regime Posted: 08 Jul 2012 06:57 AM PDT CA Rajender Handa S. No. Service Provider Service Recipient Proportion of Tax by Ser. Provider Proportion of Tax by Ser. Receiver 1. Insurance Agent Person Carrying on Insurance Business Nil 100% 2. GTA in respect of Transport of Goods by road Consignor or Consignee (Person liable to pay... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Limited Liability Partnership – Synopsis, Swot Analysis, Formation Process etc. Posted: 08 Jul 2012 06:43 AM PDT Partnership: Partnership (regulated by Partnership Act, 1932) is one of the preferred business vehicles by entrepreneurs in India. In-fact, India is one of a country which recognizes partnership as a taxable entity (assessee) under the Income Tax Act, 1961. Less stringent regulations, low... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reasonability of interest paid to persons covered under section 40A(2)(b) Posted: 08 Jul 2012 05:30 AM PDT DCIT v. Sports Station (India) (P.) Ltd. As is apparent from the impugned order, the Assessing Officer did not bring any material on record for holding that the payment of interest at the rate of 15 per cent per annum to unsecured creditors was excessive and how interest at the rate of 12 per cent... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S. 80-IB deduction can't be denied for Common statutory registration, accounts or power connection Posted: 08 Jul 2012 04:20 AM PDT After reading statutory provisions as contained in section 80IB(1), 80IB(2) & 80IB(4) of the Act, we find that provisions do not provide in any way separate registration or maintenance of separate records for claiming deduction u/s 80IB of the Act. The requirement under section 80IB(1),... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Empanelment with PNB for Concurrent Audit of Branches Posted: 08 Jul 2012 04:18 AM PDT 1. Punjab National Bank invites applications on the undernoted prescribed format from practicing firms of Chartered Accountants in India who fulfills the eligibility criteria as mentioned hereunder and are willing to have their Firms empanelled as Concurrent Auditor in the Bank and for conducting... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Violation of statutory provisions do not change nature of agricultural income Posted: 08 Jul 2012 03:44 AM PDT With regard to the assessee's claim for exemption under section 10(1) of the Act in respect of agricultural income, the only aspect that clinches the nature of the agricultural income is whether agricultural operations were carried out or not. Once it was established that such agricultural... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Why High Courts are now burdened with DRT/SARFAESI matters? Posted: 08 Jul 2012 02:26 AM PDT After the constitution of Debt Recovery Tribunals (DRT) and Debt Recovery Appellate Tribunals (DRAT) under The Recovery of Debts due to Banks and Financial Institutions Act, 1993 and after conferring the authority to entertain appeals from the aggrieved persons under section 17 of SARFAESI Act,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reporting Guidelines for Foreign Investments in India Posted: 08 Jul 2012 02:14 AM PDT 1. Reporting of FDI for fresh issuance of shares: (i) Reporting of inflow:(a) The actual inflows on account of such issuance of shares shall be reported by the AD branch in the R-returns in the normal course.(b) An Indian company receiving investment from outside India for issuing shares /... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Approaching DRAT in SARFAESI matters appears to be very costly? Posted: 08 Jul 2012 12:01 AM PDT Under the provisions of 'Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act' in short), the Bank can invoke the process of recovery of money on its own without any adjudicatory process. The Banks can proceed with the enforcement of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Motor cars expenses not related to in-house research & development is is not eligible for weighted deduction u/s. 35(2AB) Posted: 07 Jul 2012 11:39 PM PDT The capital expenditure incurred by the assessee on purchase of motor cars could not be considered as expenditure incurred by the assessee on in-house research & development and, therefore, the same was not eligible for weighted deduction under section 35(2AB). Similarly, capitalized interest... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] ICAI to increase stipend for CA Articles Posted: 07 Jul 2012 11:03 PM PDT A minimum stipend offered to the CA aspirants doing articleship at CA firms will be hiked by 2.5 times to 3 times, president of the Institute of Chartered Accountants of India(ICAI) Jayesh Shah announced here today. Talking to newsmen on the sidelines of a conference of CA students, Shah said the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Automatic Form 16 with 12BA for F.Y. 2012-13 & A.Y. 2013-14 Posted: 07 Jul 2012 10:39 PM PDT Automatic Form 16 with 12BA for Financial Year 2012-13 & Assessment Year 2013-14 in Excel Format Download Automatic Form 16 Utility [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Just because benefits of research may have enduring benefit, expenditure cannot be considered as capital in nature Posted: 07 Jul 2012 09:20 PM PDT There is no dispute with the fact that assessee has commenced business activity during the year. As seen from the nature of the expenditure claim by assessee under the head research expenses, the entire expenditure pertains to use of raw material, freight and other expenditure which are in revenue... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Mere taking of a claim, which is not sustainable in law, will not amount to furnishing inaccurate particulars Posted: 07 Jul 2012 09:05 PM PDT Where there is no finding that any details supplied by the assessee in its return are found to be incorrect or erroneous or false there is no question of inviting the penalty under section 271(1)(c). A mere taking of a claim, which is not sustainable in law, by itself, will not amount to furnishing... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Revised procedure & documents required in respect of Single/Centralized Registration Posted: 07 Jul 2012 09:00 PM PDT Trade Notice 16 dated 18.06.2012. As per this notification, now applicant is required to submit only one address proof and detail of only one major bank account for service tax registration while earlier they were required to submit two address proofs for business address and to submit detail of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Appointment of CA / CA Firms for assessing Operational Risk with Maharashtra State Co.operative Bank Limited Mumbai Posted: 07 Jul 2012 08:59 PM PDT We invite sealed quotation for appointment of C.A. firms for identification of 'Operational Risk' of our Banking transactions. Basically, Bank is an Apex Co-operative Bank providing finance & allied services to DCCBs, Co-operative Sugar Factories, Co-operative Spinning Mills, Urban... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S. 41(1) not applies if Assessee not claimed trading liability as deduction in earlier years in computing business income Posted: 07 Jul 2012 08:50 PM PDT Hon'ble Delhi High Court in the case of Vardhman Overseas Ltd. (supra) has observed that section 41(1) has been incorporated in the Act to cover a particular facts situation. Section applies where a trading liability was allowed as a deduction in earlier years in computing the business income of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] S. 35D covers only expenditure which are specifically mentioned therein & nothing beyond Posted: 07 Jul 2012 08:31 PM PDT CIT V. Ashok Leyland Ltd. Expenditure incurred in connection with the issue of shares and debentures of the company to public subscription, which qualify for consideration under Section 35D, are underwriting commission, brokerage and charges for drafting, typing, printing and advertisement of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Risk management and inter-bank dealings – Master Circular No.5 /2012-13 Posted: 07 Jul 2012 08:08 PM PDT MASTER CIRCULAR NO.5 /2012-13, DATED 2-7-2012 Foreign Exchange Derivative Contracts, Overseas Commodity & Freight Hedging, Rupee Accounts of Non-Resident Banks, Inter-Bank Foreign Exchange Dealings, etc. are governed by the provisions in Notification No. FEMA 1/2000-RB, Regulation 4(2) of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Establishment of Liaison/Branch/Project Offices in India by Foreign Entities -Master Circular No. 7/2012-13, Posted: 07 Jul 2012 07:58 PM PDT Master Circular No. 7/2012-13, dated 2-7-2012 Establishment of Branch/Liaison/Project Offices in India is regulated in terms of section 6(6) of Foreign Exchange Management Act, 1999 read with Notification No. FEMA 22/ 2000-RB dated May 3, 2000 as amended from time to time. 2. This Master Circular... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]