Exclusion of ‘Input Service’ Under Definition of ‘Input Service’ under Rule 2(l) (C) of CENVAT Credit Rules, 2004

Exclusion of 'Input Service' Under Definition of 'Input Service' under Rule 2(l) (C) of CENVAT Credit Rules, 2004 Posted: 18 Nov 2012 11:24 AM PST With the ultimate aim of maximising service tax revenue collection, the government tried to minimise the opportunity of taking CENVAT Credit and for this noble cause, definition of 'Input Service' in CENVAT Credit Rules, 2004 (all rules mentioned herebelow refers to rules of CENVAT Credit Rules,... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Commercial property renting by bank is not a banking activity Posted: 18 Nov 2012 10:55 AM PST Business of the taxpayer is banking and the business connection between the tenant and taxpayer has nothing to do with banking operation carried on by the taxpayer. Further, the Kerala High Court in Kottayam District Co-operative Bank Ltd. v. CIT [1991] 188 ITR 568 has also taken a similar view.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Anonymous donations not to be taxed in case of wholly religious trusts Posted: 18 Nov 2012 10:48 AM PST With a view to prevent channelisation of unaccounted money to these institutions by way of anonymous donations, a new section 115BBC has been inserted to provide that any income of a wholly charitable trust or institution by way of any anonymous donation shall be included in its total income and... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Penalty cannot be imposed for admitted tax liability if merits of case are in favour of Assessee Posted: 18 Nov 2012 10:43 AM PST Penalty has been imposed under Rule 15 of CENVAT Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. On perusal of the records, I find that the appellant has reversed the CENVAT Credit which has been pointed out as erroneously taken in August and September 2008 itself. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Hiring of bullock-carts not liable to service tax Posted: 18 Nov 2012 10:37 AM PST The issue is whether giving bullock-carts on consideration amounts to supply of tangible goods service. As per the definition of tangible goods service it includes machinery, equipment and appliances. Bullock-carts prima facie cannot be considered as machinery, equipment or appliances. In view of... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Reimbursable expenditure not subject to rigour of section 40a(ia) if not claimed as expense Posted: 18 Nov 2012 09:52 AM PST Even though the privity of contract may be between the assessee (whose obligation it is for the transportation of goods) and the transporter, rather, irrespective of whether the contract is between the assessee and the transporter or the principal and the transporter - the payment in either case... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Nature of profit from sale of shares depends on intention of acquisition of shares irrespective of its treatment in books Posted: 18 Nov 2012 09:27 AM PST There is no material that shares and securities purchased in the year under consideration and classified as investment in books were actually intended to be held as long term investment. Profits realised by the sale of shares may be capital gain, if the seller is an ordinary investor changing his... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Penalty imposed by SEBI without providing statutory opportunities to appellant is breach of principles of natural justice Posted: 18 Nov 2012 09:15 AM PST Since every case is to be judged in the facts and circumstances of that case, one cannot hold the view that denial of inspection sought for by the appellant can be brushed aside on the ground of lack of prejudice or conclusion based on facts already considered in other orders relating to the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] If company did not dispute claim of creditor-bank, winding up petition against company is to be admitted Posted: 18 Nov 2012 08:54 AM PST A creditor can maintain a winding up petition if he complies with the provisions of Sections 433, 434 and 439 of the said Act of 1956. In the present case, the respondent-Bank was admittedly a creditor of the company. The company did not dispute such relationship. The company did not dispute... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Whole Time Director not supposed to be ignorant of irregularities in financials Posted: 18 Nov 2012 08:47 AM PST On a consideration of the facts on record, it has to be concluded that the appellants have not acted in compliance with the statutory requirements of the director of a company. The director of a company is expected to exercise due care and diligence in the approval of documents brought on the table... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Service tax Demand invalid if Different classification by Department during different times and stages Posted: 18 Nov 2012 08:43 AM PST A perusal of the impugned orders clearly evidences the lack of clarity and understanding on the part of the department. The activity of live telecast of the horse race has been classified as 'broad casting services' during one part of the period and during another period, the very same activity is... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Share qualification required to maintain petition u/s. 397 & 398 Posted: 18 Nov 2012 07:47 AM PST A petition complaining of oppression may be carried under section 397 by any member of the concerned company, subject to the numerical qualification as stipulated in section 399. Similarly, a petition complaining of mismanagement of the affairs of a company may be brought under section 398 by any... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Circumstances for Approval of Assessment After 3 years under Punjab VAT Act Posted: 18 Nov 2012 12:38 AM PST Assessment plays vital role under the Punjab Value Added Tax Act, 2005 and the period for framing an assessment is 3 years from the date of filing of an annual statement i.e. 20th of November but the power conferred to extend the period for framing an assessment after the 3 years has its own... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Can Tribunal grant stay beyond 365 days? Posted: 18 Nov 2012 12:20 AM PST CA Hiral Raja Section 254(2A) of the Income Tax Act states that the Appellate Tribunal, where it is possible, may hear and decide the appeal within a period of four years from the end of the financial year in which such appeal is filed. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Education Loans – Banks not to insist Service area approach Posted: 17 Nov 2012 11:10 PM PST We have been receiving a number of complaints where students have been refused educational loan as the residence of the borrower does not fall under the bank's service area. In this connection, we advise that Service area norms are to be followed only in the case of Government sponsored schemes as... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Vodafone makes no provision for Hutch deal tax claim Posted: 17 Nov 2012 11:03 PM PST British telecom giant Vodafone has decided against making a provision in its balance sheet for the over Rs 11,000 tax claim made by Indian authorities for its 2007 deal to acquire stake in Hutchison-Essar. "The Group did not carry a provision for the litigation or in respect of the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Appropriate Action Taken on Information Received from France – Govt. Posted: 17 Nov 2012 10:07 PM PST Information received from the Government of France has been analysed and investigations into the information have been undertaken by the different jurisdictional authorities under the Income-tax Act, 1961. Investigations in the matter are under progress including with the foreign tax authorities to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] No info with CBDT of persons having a/c in Swiss Banks Posted: 17 Nov 2012 10:04 PM PST Central Board of Direct Taxes has said it does not have any information about names and addresses of Indians who have reportedly stashed money in Swiss banks.  The CBDT, a part of Department of Revenue in the Finance Ministry, said this when the matter came before the CIC where Information... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] DGFT – Bank Guarantee to be executed by surety Bank (Guarantor) Posted: 17 Nov 2012 09:18 PM PST PUBLIC NOTICE No. 29 (RE-2012)/2009-14- The Bank Guarantee / Legal Agreement is to be executed by the surety Bank (Guarantor)/ importer/exporter (party) on a non-judicial stamp paper an amount as may be prescribed by the concerned State Government under the Indian Stamp Act, 1899 or State act, as... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Corrigendum to List of Companies authorized to issue tax-free bonds Posted: 17 Nov 2012 09:13 PM PST SECTION 10(15), ITEM (h) OF SUB-CLAUSE (iv) OF THE INCOME-TAX ACT, 1961 – EXEMPTIONS – INTEREST ON BONDS/DEBENTURES – SPECIFIED COMPANIES AUTHORIZED TO ISSUE TAX-FREE, SECUReD, REDEEMABLE, NON-CONVERTIBLE BONDS DURING F.Y. 2012-13 – CORRIGENDUM NOTIFICATION no. 50/2012-IT... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Duration of each contract is to be taken into consideration separately for determining whether or not any PE was constituted Posted: 17 Nov 2012 09:03 PM PST Duration in respect of first contract is only 8 months and 11 days, which is less than 9 months as per Article 5 of the Indo-Mauritius DTAA to constitute permanent establishment. The duration of second contract as per the above table is only 10 days and the third contract is 3 months and 14 days.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] AO should consider document provided by forest authority for determining FMV of trees as on 1-4-1981 Posted: 17 Nov 2012 08:57 PM PST Insofar as eucalyptus and other trees are concerned, the cost of acquisition on the basis of the judgment of the Kerala High Court made in Pullengode Rubbers & Produce Co. Ltd. case, (supra) the capital gain was worked out at 30% of the sale proceeds. The Assessing Officer rejected the... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Every entity has a right to carry on its objectives in the manner it best considers Posted: 17 Nov 2012 08:54 PM PST Subsequent reversal of a transaction among group entities isn't colourable device, if effect carried in ledgers (a)  Assessee is a charitable institution, there is no change in it's objects. It carried on educational institutions and intended to further its objects by opening new... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Indo–Myanmar Border Trade – Amendment & Addition in Existing list of tradable items Posted: 17 Nov 2012 11:18 AM PST PUBLIC NOTICE NO. 30 (RE-2012)/2009-2014 i. Existing arrangements for import/export of commodities/items under Indo Myanmar Border have been revised; and ii. 22 new commodities/items have been added to the existing list of 40 tradable items and all the 62 commodities/items consolidated. [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Rate of exchange of conversion of each of foreign currency WEF 17.11.2012 Posted: 15 Nov 2012 10:29 PM PST Notification No. 99/2012 - Customs (N.T.) Central Board of Excise and Customs hereby determines that the rate of exchange of conversion of each of the foreign currency specified in column (2) of each of Schedule I and Schedule II annexed hereto into Indian currency or vice versa shall, with effect... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Participation of mutual funds in Credit Default Swaps Market as Users (Protection Buyers) & in repo, in corporate debt securities Posted: 14 Nov 2012 10:08 PM PST CIRCULAR NO. IMD/DF/23/2012, DATED 15-11-2012 A. CDS – mutual funds as users (protection buyers) 1. The Reserve Bank of India (RBI), vide notification No. IDMD.PCD.No.5053/14.03.04/2010-11 dated May 23, 2011, has issued the 'Guidelines on Credit Default Swaps for Corporate Bonds'.... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] Notification No.98/2012-CUSTOMS (N. T.) Dated- 14th, November, 2012 Posted: 13 Nov 2012 10:19 PM PST Notification No.98/2012-CUSTOMS (N. T.),  New Delhi, 14th, November, 2012 S.O. ____ (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise & Customs, being satisfied that it is necessary and expedient so to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] +