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Feb 2, 2013

Circulars Imposing Higher Service tax Rate On CAs / Advocates & Others is Ultra Vires

Circulars Imposing Higher Service tax Rate On CAs / Advocates & Others is Ultra Vires

The question before us is what would be the rate of tax where (a) the service is provided by the chartered accountants prior to 01.04.2012; (b) the invoice is issued by the chartered accountants prior to 01.04.2012 but (c) the payment is received after 01.04.2012.

Client confidentiality privilege – Only for lawyers & not for accountants – UK SC

The long-awaited decision in the Prudential case was handed down by the UK Supreme Court on the morning of Wednesday 23 January. R (on the application of Prudential plc and another) (Appellants) v Special Commissioner of Income Tax and another (Respondents) was heard by a full panel of seven law...

Income Tax Refund for AY 2012-13 – CPC issues directives

Kind attention is drawn to the above mentioned subject. For the A.Y. 2012-13 e-filed returns cases till 22nd Jan. 2013, where refund is likely to be > = Rs. 10 lakhs are 28,444 in number, which are currently pending for processing at CPC. These ITRs are categorized as under :

Reassessment not justified if assessee had proved its stand during original assessment

In the present case, we find that the whole issue is with regard to the method of production and the manner in which electricity is generated. The entire process of generation of electricity, both by the gas turbine unit and the steam turbine unit, has been explained by the petitioner in great...

Reopening of assessment on the basis of investigation report is valid

As regards the challenge to the reopening of proceedings is concerned, the Court is satisfied that the notice under Section 147 reflected due application of mind to objective material furnished to the AO, i.e. by way of Investigation Report which could have given rise to a bonafide belief,...

Validity of Assessment U/s. 153A can't be challenged on hardship ground

Section 153A of the Act was introduced by the Finance Act, 2003 w.e.f. 01.06.2003 and it provides for assessment in the case of search or requisition. It is mandatory for the assessing officer, whenever there is a search under section 132, to issue notice to the person searched requiring him to...

Stitching charges from Local sales, not eligible for exemption u/s. 10B

A reading of second proviso to section 10B of the Act thus clearly shows what is contemplated as deemed profits and gains derived from the export of articles or things for the purpose of Section 10B(1) of the Act. Thus, whenever local sales of articles or things does not exceed 25% of the total...

Sale transaction through banking channels can't be doubted for non-submission of ID proof of buyers

The CIT (A) after considering entire evidence of record found that purchase and sale transactions were proved. He further found that payment of the sale price was made to the assessee through bank channel and not in cash as such the transactions are actual transactions and not a fictitious...

Taxability of refundable membership deposits under 'club or association service'

We have not found prima facie case for the appellant insofar as the demand of service tax on life membership fees is concerned. Though it has been claimed that such fees are refundable as per the by-laws of the appellant, the claim is yet to be substantiated. We have not been shown a copy of [...]

S. 40A(3) Cash Payment allowable if necessary to ensure smooth functioning of business

The assessee engages itself in executing catering contracts for Railways in respect of two trains. In those trains, its personnel are deployed for sale of small articles of daily necessity and use to the passengers. Per force, the payments received by them are necessarily in cash. These amounts are...

ST paid on commission on sale of final product is eligible for input service credit

It is well settled that the assessee is entitled to take CENVAT credit of service tax paid by them on the services availed by them in the course of business of manufacturing as held by the Hon'ble High Court of Bombay in the case of CCE v. Ultratech Cement Ltd. [2010] 29 STT 244 (Bom.).

Firm or 'firm name' is merely a compendious description of all the partners collectively

Decision of the Appellate Tribunal that the firm has failed to take reasonable steps for realizing the export proceeds is a finding based on facts viz: (a) that the appellants continued to export despite continuous defaults made by the said party in clearing the outstanding; (b) that the importer...

Charges under FERA provisions can be framed on the basis of statement of co-accused

In the case at hand, there is a recovery of foreign currency from the co-accused. The relationship of employer and employee has been admitted both by the Petitioner and the co-accused. The statement of the co-accused and the other documents seized show that the co-accused was acting on the behest...

Legal formulations cannot be divorced from the fact situation of the case

The question which falls for consideration in this matter is not of petitioners suffering prejudice or not by grant of impugned Approval but is whether it results in failure of justice. It is in this context, grant of post decisional hearing assumes importance. Apex Court in Canara Bank v. V.K....

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