Interest on I-T refund not taxable at concessional rate of 10% as per Treaty if NR has PE in India

IT/ILT : Interest earned by a non-resident on income-tax refund is not taxable in India at concessional rate of 10% as per India-France treaty if such non-resident has a PE in India

Can Tribunal extend period of stay beyond 365 days, Ahmedabad ITAT says 'Yes'

IT : Tribunal can extend period of stay beyond 365 days

TP provisions nowhere authorize TPO to disallow any exp. on mere imprudence behind such exp., ITAT s

IT/ILT: Where assessee had paid only cost price to its AE and justified same by providing a valuation report as per external CUP, in absence of any counter report by TPO, assessee's valuation to be accepted and transaction to be held at ALP

Allowing use of passive infrastructure and mobile tower sites to be deemed as a service and not as s

CST & VAT : Providing passive infrastructure along with mobile tower site and maintenance services to various mobile operators on sharing basis doesn't amount to transfer of right to use such infrastructure; it is not a deemed sale but a service liable to service tax.

Cap gains can't be evaded due to non-receipt of consideration if transfer fulfils Companies Act requ

IT : Where pursuant to sale agreement assessee transferred certain shares owned by it to a company, in view of fact that said transactions were duly recorded in books of account and, moreover, other requirements of Companies Act, 1956 were also complied with, it amounted to transfer within meaning of section 2(47)

New Mechanism To Replace Pscs In Oil And Gas Sector On The Anvil

Date : 11 Dec 2013

Following the recommendations of the Rangarajan panel and that by the Comptroller and Auditor General (CAG), the Petroleum and Natural Gas Ministry on Wednesday said it is preparing a proposal to replace the present profit sharing mechanism under the production sharing contracts (PSCs) with a revenue sharing mechanism for the oil and gas industry in the country.

Speaking at the 12th Petro India conference here organised by the Observer Research Foundation (ORF), Joint Secretary (Petroleum) Aramane Giridhar said the government is introducing a simple mechanism to replace the present PSCs. “The new guidelines will come out in a few weeks. The PSC has to go. It is not good. The players in the sector should have freedom to take appropriate decisions without waiting for approvals from the regulator,’’ he added.

Mr. Giridhar said there no fair market in the natural gas because of the infrastructural deficit. “Some people say market should be allowed to fix the price, but what kind of market are we talking about,’’ he asked.

Petroleum Secretary Vivek Rae said while there is nothing wrong in the PSC system, one of the problems is in the lack of flexibility. “There is nothing wrong in the production sharing contracts, but we have to fix the rigidity and called for adopting international petroleum industry standards and practices in the country.

He said there was an urgent need to expand gas pipelines across the country, noting that while India has achieved only around 13,000 Km in India, China has already done over 55,000 Km. “There is no need for any more legislation as the sector is already over-legislated but still under-governed. There is also a need to expand CNG network as it is better not only in terms of environment friendliness but also from import advantages,’’ he said.

ORF Director Sanjay Joshi said while China has managed to tie up with diverse long term pipeline supplies from Central Asia, Myanmar and Russia, but India, despite being surrounded by some of the most gas prolific countries, is yet to build its first transnational gas pipeline.

Source : thehindu.com

Co. can't be restrained from holding EGM where shareholders have right to vote in democratic manner,

CL : A company cannot be restrained from holding and convening an EOGM where shareholders have right to exercise their vote in a democratic manner

Fabricating an evidence to evade tax proves to be a costly affair; 1 lakh penalty slapped

IT : Exemplary cost should be imposed where assessee had produced fabricated evidence to evade payment of legitimate taxes

Exemption u/s 11 denied to trust on its failure to file form for accumulation of unspent sum before

IT: In order to claim benefit of section 11, it is mandatory to give intimation to assessing authority in Form 10 at any time before finalization of assessment proceedings

No denial of credit to recipient merely on wrong payment of duty by supplier

Cenvat Credit : Officers having charge over recipient of inputs cannot be allowed jurisdiction to determine whether each of suppliers have rightly paid excise duty or not because if this is allowed it would lead to chaos; hence, denial of credit to recipient of inputs on ground that supplier need not have paid duty was without jurisdiction

Relief for assessees submitting inflated stock statement for bank overdraft; HC rejects concealment

IT : No penalty can be levied merely on basis of inflated stock statement given to bank for purpose of availing overdraft facilities

CBEC's circular comes into force prospectively; rules HC

Excise & Customs : Circular/Instruction issued by CBEC changing classification of goods comes into force on date of issuance thereof and is applicable prospectively

Slub yarns aren't normal yarns; are classifiable under heading 56.06

Excise & Customs : Blended yarn made of viscose fibre and polyester fibre with special mechanical stimulation creating an effect of thick and thin features in yarns while spinning to impart slub effect, known as 'slub' yarn, is classifiable under Heading 55.06