IT: Where assessee was following mercantile system of accounting and debited interest payable on loan advanced by State Government in books of account but no interest was ever paid by assessee, assessee was entitled for deduction under section 36(1)(iii)
Friday 31 January 2014
No ST on dealers of SIM cards on commission earned by them if entire face value was taxed in hands o
Service Tax : A dealer/distributor of SIM cards/recharge vouchers is not liable to service tax on discount/commission earned by him when, undisputedly, entire amount including such discount/commission had been taxed in hands of telecom company
Tribunal is supposed to analyze legal provision, it can't remand matter despite availability of all
IT: When all materials which were necessary for deciding issues on need of TDS on reinsurance paid to non-resident reinsurers were there before Tribunal, Tribunal was not justified in ordering remand
Sec. 221 penalty to be levied only if assessee defaulted in payment of taxes and not interest: HC
IT : Where assessee was in default in making payment of interest, no penalty under section 221(1) could be levied
Upholding a similar issue by HC in earlier assessment years isn't a good argument to dismiss an appe
IT: Where assessee challenged maintainability of appeal filed by revenue against deletion of addition made under section 68 contending that order of Tribunal on said issue in earlier assessment years had been upheld by High Court, in view of fact that Court did not have occasion to consider orders of Tribunal in those years, assessee's objection was to be set aside and appeal was to be admitted for disposal on merits
Indian Rupee Closes 12 Paise Down At 62.68 Against Us Dollar, Fiscal Deficit Weighs
Falling for the second day, the Indian rupee today weakened by 12 paise against dollar to end at 62.68 weighed down by demand for the American currency from importers and data showing fiscal deficit crossed 95 per cent of the annual target during April-December.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced firm at 62.40 a dollar from previous close of 62.56 and moved in a range of 62.35 and 62.77. Amid fears of outflows after the US Federal Reserve further cut its stimulus by USD 10 billion, the Indian rupee concluded at 62.68, a fall of 12 paise or 0.20 per cent. The Controller General of Accounts said the fiscal deficit touched Rs 5,16,390 crore or 95.2 per cent of the annual target during April-December.
The government had fixed the fiscal deficit target-- the gap between expenditure and revenue -- at Rs 5,42,499 crore or 4.8 per cent of the GDP in Budget 2013-14.
Yesterday, Indian rupee dipped by 15 paise or 0.24 per cent.The dollar index was up by 0.13 per cent against a basket of six major global rivals today.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "The rupee continued to trade weak for the second consecutive day. It opened on a strong note but during the day lost all its gain taking cues from dollar index.
"The dollar traded strong as tapering has already started and asset purchases are expected to end in 2014. Trading range for the USD/INR pair is expected to be within 62.00 to 63.50." For the week, Indian rupee depreciated by two paise. In January, it slid 88 paise against the dollar.Meanwhile, forward dollar premiums declined on fresh payments by exporters.
The BSE Sensex six-month forward dollar premium payable in July moved down to 252-254 paise from 253-255 paise previously. Far forward contracts maturing in January also dropped to 494-496 paise from 497-499 paise.The RBI fixed the reference rate for the dollar at 62.4768 and for the euro at 84.6022.The rupee fell back slightly to 103.14 against the pound from 103.09 while declined further to 61.27 per 100 Japanese yen.
Source:- financialexpress.com
Case remanded as CIT(A) decided taxability of sums paid to NR without examining its PE in India
IT/ILT: Where Commissioner (Appeals) decided a question which was not emerging out from assessment order and relevant issue whether recipients had permanent establishment or not, was not looked into, matter needed re-adjudication
PSUs are also liable to comply with pre-deposit requirement; HC upheld pre-deposit order on ONGC
CST & VAT : There is no proposition of law that in case an assessee is Public Sector Undertaking, there shall be a total waiver of pre-deposit; hence, such undertakings are also liable to make pre-deposit, pending appeal, in accordance with law
CA found guilty of misconduct on facts and in conformity with ICAI Act was not to be interfered: HC
Chartered Accountants Act: Where findings of council of ICAI that respondent-chartered accountant was guilty of misconduct were based on material on record and were not contrary to law, same were to be upheld
Due date of DVAT Audit extended to 28-2-2014
GST : VAT/CST : Sections 49 And 70 Of The Delhi Value Added Tax Act, 2004, Read With Rule 42a Of The Delhi Value Added Tax Rules, 2005 - Vat Audit - Time-Limit For Submission Of Vat Audit Report For The Year 2012-13 In Form Ar-1 Extended To 28-2-2014, From Earlier Time-Limit Of 31-1-2014
ST Mega Exemption - Governmental authority may be established by Government
GST : Section 93 of The Finance Act, 1994 - Exemptions - Service Tax - General - Definition of 'Governmental Authority' Expanded to Include Authority or Board or Any Other Body Established by Government With 90% or More Participation by Way of Equity or Control to Carry out Function Entrusted to Municipality
Gold, Silver Tumble On Heavy Selling, Global Cues
Gold tumbled by Rs 310 to Rs 30,290 per ten grams in the national capital on Friday on heavy sell-off by stockists and a weak global trend.Silver also declined by Rs 900 to Rs 43,600 per kg on poor offtake by industrial units and coin makers amid a steep fall in international markets.
A similar weakening trend was also witnessed in Mumbai, as gold of 99.9 and 99.5 per cent purity fell by Rs 160 each to Rs 30,100 and Rs 29,950 per ten grams, respectively. Also, silver plunged by Rs 600 to Rs 44,450 per kg.
Traders said heavy selling by stockists, sparked by a weak global trend as faster economic growth signals more monetary stimulus cuts in future, mainly pulled down metal prices.
Gold in New York, which normally sets price trend at the domestic front, plunged by 1.94 per cent to $ 1,243.10 an ounce and silver by 2.92 per cent to $ 19.14 an ounce.
Besides, strengthening of the rupee against the American currency, which makes the import of the dollar-priced precious metals cheaper, further dampened the sentiment, they said.
At the domestic front, gold of 99.9 and 99.5 per cent purity suffered a setback of Rs 310 each to Rs 30,290 and Rs 30,090 per ten grams, respectively. Sovereign held steady at Rs 25,250 per piece of eight grams.In a similar fashion, silver ready dropped by Rs 900 to Rs 43,600 per kg and weekly-based delivery by Rs 885 to Rs 43,315 per kg.Silver coins held steady at Rs 86,000 for buying and Rs 87,000 for selling of 100 pieces
Source:- thehindu.com
Training in journalism, media, films, etc., is vocational training; exempt from service-tax
Service Tax : Training in fields like journalism, media management, drama, films, T.V. and Radio anchoring etc. amounts to 'vocation training' and is exempt from service tax and assessee cannot be asked to prove that one or some or all of students of assessee-institute obtained employment or have pursued self employment after completion of training
Interest received from builder due to non-delivery of flat not a capital receipt; taxable as other s
IT: On builder's failure to deliver flat by a specified date, compensatory interest received by assessee on refund of deposit amount was assessable as interest income under section 56
Turkey Can Double Iran Gas Imports If Price Agreed: Minister
Turkey could double the amount of natural gas it imports from Iran if the two countries can agree on a price, Turkish Energy Minister Taner Yildiz said, a day after a visit to the Islamic republic, Hurriyet Daily News reports.
In an interview with Reuters, the minister said natural gas purchases from the Islamic republic was a key topic during Prime Minister Recep Tayyip Erdogan’s visit, but added that the two sides were still far from agreeing on a price.
“We have discussed how we could increase our imports to 20 billion cubic meters and the price mechanism needed for that,” Yildiz said, adding that Turkey had insisted on a reduction in the gas price.
Iran has responded by offering to sell more gas to energy-hungry Turkey and the offer is being considered, he said. “We have not found their price offer satisfactory at this stage,” he added.
“Obviously, without the price being agreed upon, we can’t sign such a deal. Our teams will continue to work on this,” Yildiz said.
Turkey has long maintained that Iranian gas prices are too high. Turkey’s state-owned Petroleum Pipeline Corporation (BOTAS) applied to an international court of arbitration in 2012 over the gas price in a case that is still pending.
Turkey depends on imports for almost all of its natural gas needs, which are expected to reach 52 billion cubic meters this year.
The $60 billion energy bill Turkey has to fund annually has been the biggest driver of its ballooning current account deficit and is seen as the main weakness of the economy.
“We have also discussed a barter system with Iran, through which we could swap various goods with energy imports,” Yildiz said, without giving further details.
During the interview, Yildiz also said Turkey would stand by a consensus reached in December 2013 between Ankara, Baghdad and Arbil to seek Baghdad’s permission, but not its blessing, in exporting Iraqi Kurdistan’s oil.
“Before the Baghdad trip, we were asked if we could say we will not be exporting any oil without Baghdad’s approval. We responded saying ‘No, we cannot,’” Yildiz said.
Yildiz traveled to meet Iraqi Deputy Prime Minister Hussain al-Shahristani in early December, en route to Arbil. His presence at an Arbil oil conference signaled Turkey’s determination in its ambitions in Iraqi Kurdistan.The minister said during his visit intense talks were held among the three parties to identify a wording that would suit them all.“And that’s how that consensus text was established. It was not set up only by Turkey. We stand by that text,” he said
Source:- panarmenian.net
Petition on same ground by different shareholders rejected as CLB had rightly disposed off previous
CL: Where in a previous petition, earlier order of CLB had been decided and became final on same acts of oppression and mismanagement, same could not be reagitated by petitioners for reconsideration by CLB
Can an asset bought for one concern to be added in block of another concern Case remanded to apply A
IT: Where assessee owned three proprietary concerns and during year he sold factory building of a concern and out of sale consideration he purchased another office premises, which fell into same block of assets, in name of another proprietary concern and further he sought adjustment of said block of assets, Assessing Officer was directed to apply ratio of decision of Delhi High Court in case of CIT v. Ansal Properties & Infrastructure Ltd. [2012] 207 Taxman 61/20 taxmann.com 770 and compute WDV
Prior to 8-5-2010, sponsorship of Deccan Chargers tantamounted to sponsorship of sports event; not l
Service Tax : Sponsorship of IPL team deccan chargers amounts to sponsorship service in relation to sports event and is not liable to service tax prior to 8-5-2010
Gratuity and other terminal benefits paid to employees on their termination are allowable as revenue
IT: Entire expenses incurred on gratuity and other terminal benefits at time of retirement of employee are arevenue in nature allowable in year of retirement
HC rejects significant plea not raised earlier; allows sec. 80-IA relief before adjusting losses of
IT : Review cannot raise alltogether new plea, viz, eligible unit under section 80-IA and non-eligible unit are same, before High Court
Disallowance of expense rightly deleted as no discrepancy was pointed out by auditor in such exp.
IT: Where accounts of assessee were audited by department auditors as well as by Accountant General and Assessing Officer while disallowing expense, had not pointed out to which expenditure was of capital nature, if disallowance made by Assessing Officer was without any basis and was to be deleted
SC : J. Jayalalitha liable for prosecution for non-filing of I-T return
IT : J. Jayalalitha liable for prosecution for non-filing of return
SC relied on ratio of Mitsubishi that filing of return doesn’t attract bar on advance ruling; set as
IT/ILT : SC relied on ratio of Mitsubishi that ‘filing of return doesn’t attracts bar on advance ruling’; sets aside two orders. The assessee, Sin Ocean Shipping ASA Norway, filed the instant SLP seeking to set-aside the orders passed by AAR [GTB invest ASA, In re [2012] 18 taxmann.com 262 (AAR- New Delhi)] and High Court [NETAPP B.V. v. AAR [2012] 24 taxmann.com 174 (Delhi)
CESTAT sets aside penalty as uncertainty was prevailing over liability to pay service tax
Service Tax : Where there was confusion as to liability to pay service tax and assessee, located in remote area, could not have been advised by local authorities as well as could not have known by himself about liability, penalties were liable to be set aside under section 80
CII of year of acquisition by predecessor is relevant in case of sale of gifted asset; Manjula Shah’
IT: Where assessee inherited certain property which was originally acquired prior to 1-4-1981, while computing capital gain, cost of acquisition with reference to cost inflation index for year 1981 had to be taken into consideration
Legal notice not issued within 30 days from date of receipt of info of dishonour of cheque is time b
Negotiable Instrument Act: Legal Notice has to be issued within 30 days of receipt of information of dishonour of cheque
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