Service Tax : Fees collected by a Municipal Corporation for granting written permission for conducting business of advertisement agency was a part of functions imposed on Corporation under legislation and is not liable to service tax
Tuesday 27 May 2014
Union Cabinet nods to constitution of SIT on black monies stashed abroad
IT/ILT : Constitution of Special Investigating Team (SIT) to Implement Decision of Supreme Court on Large Amounts of Money Stashed Abroad
Provisions for bad debt to be added back to calculate book profits; reassessment upheld on basis of
IT: In view of retrospective amendment brought by Finance (No.2) Act, 2009 in section 115JB, Assessing Officer was justified in initiating reassessment proceedings taking a view that assessee was required to add 'provision for bad and doubtful debts' to net profit while computing book profits under section 115JB
HC raps Tribunal for setting aside that part of AO’s order which wasn’t subject matter of appeal
CST & VAT : Where against a particular portion of assessment order, assessee filed appeal before Tribunal, in terms of sub-section (6) of section 73 of Gujarat Value Added Tax Act, 2003, Tribunal could not have set aside that portion of assessment order which was in favour of it assessee and was not subject matter of appeal before it
Replacement of damaged good in lieu of payment of overdue sum couldn’t be an unfair trade practice,
MRTP : Where respondent was ready to replace damaged pipe supplied by it to complainant but was insisting on payment due, no unfair trade practice was followed by respondent
TPO couldn’t reject TP method chosen by assessee on basis of theoretical assertions without any obje
IT/ILT: Where assessee had given a methodology for working of ALP on selection of CPM and RPM method supported by appropriate comparables, working could only be dislodged by TPO on basis of cogent reasons and objective findings
India Rubber Squeeze Is Rival Suppliers’ Gain
Asian rubber producers are shipping more of their stockpiles to India—an unlikely destination given it’s already well-supplied and ranks as the world’s fifth-largest producer of natural rubber.
But Indian buyers are skipping local rubber in favor of these imports from Thailand, Vietnam and Malaysia because the imports are up to 15% cheaper, even with a 20% tax imposed by Delhi.
Global rubber prices have sunk 25% this year because the market, valued at more than $30 billion a year, is awash in surplus supplies from Southeast Asia. Indian farmers, watching local prices hurtle below production costs, have reacted by holding back stocks.
“Farmers don’t want to release the material until prices move up,” said George Valy, president of the Indian Rubber Dealers’ Federation.
That opens the way for imports, which are meeting nearly half of India’s monthly rubber demand of 80,000 tons, up from about a quarter a year ago.
For buyers, the drop in prices is a boon. Tire makers are stocking up, said an industry official who did not want to be identified.
That would be welcome news for Thailand, the world’s largest natural rubber producer, which plans to unload a stockpile of 220,000 metric tons on international markets. It’s struggling with an overhang of supply that’s denting farmers income there too.
Indian rubber prices have firmed up marginally as local supplies have dried up, rising over the past fortnight to 150 rupees ($2.56) a kilogram— but that’s not enough to tempt local farmers to release more stocks.
Indian rubber producers usually tap some of their trees in May before the arrival of annual monsoon rains stops production, but this year hardly anybody has ventured forward.
Aside from low prices, one of the reasons that farmers have not tapped their trees is that yields are low. They are hoping for better output after the rainy season finishes in September.
Source:- blogs.wsj.com
Vice-Presidents of ITAT is to be appointed on basis of merits without considering seniority of candi
IT : Vice-President of ITAT is to be appointed on merits as per under Rule 7C of ITAT Members (Recruitment and conditions of service rules), 1963 rather on basis of seniority of candidates
HC allows sec. 80-IA relief as same issue was held in favour of assessee in earlier year
IT : Where Tribunal allowed assessee's claim for deduction under section 80-IA relying upon order passed in assessee's own case relating to earlier assessment year, in view of fact that appeal filed against said order had been dismissed, impugned order allowing assessee's claim in assessment year in question also deserved to be upheld
Maintenance of catering services at client’s premises would be deemed as ‘outdoor catering’ liable t
Service Tax : An assessee engaged in running and maintenance of canteen or guest houses or engaged in catering at premises belonging to clients, is an outdoor caterer and liable to service tax
Interest on borrowing used for investment in shares was deductible if such shares didn’t yield any d
IT : Interest paid on money borrowed for investment even in shares which had not yet yielded any dividend, was admissible under section 57(iii)
Duty paid defective goods would entitle assessee to Cenvat credit as these were used for further man
Excise & Customs : Where goods cleared from factory on payment of duty are received back in factory on account of being defective and are used in further manufacture, they are eligible for credit as 'input'
No denial of Sec. 10(23C) relief on mere generation of incidental surplus by educational institution
IT : Increase in the fees for generating surplus would not by itself exclude the petitioner from the ambit of section 10(23C)(vi) of the Act. Generation of profit or surplus by an organization cannot be construed to mean that the purpose of the organization is generation of profit/surplus, as long as the surpluses generated are accumulated /utilized only for educational purposes. The same would not disable the institution from claiming exemption under section 10(23C)(vi) of the Act.
ITAT can't decide if an ex-member of ITAT can be debarred from practicing before it
IT : ITAT cannot decide on vires of Rule 13 E of the Income Tax Appellate Tribunal Members (Recruitment and Conditions of Service) Rules, 1963 So question as to whether Shri Deepak R. Shah, advocate and ex-Accountant Member of the Income-tax Appellate Tribunal, is debarred from practicing before the Income Tax Appellate Tribunal, not answered.
Interest accrued under ‘Deferred Payment Plan’ couldn’t escape tax net by crediting it to suspense a
IT : Where pursuant to directions of State Government, assessee sold three properties under 'Deferred Payment Plan' in terms of which purchaser was under obligation to pay interest on unpaid amount in accordance with schedule of payment, interest income so received was chargeable to tax
ITAT refused to remand a case to enquire into existence of PE in India as indeed it wasn’t a dispute
IT/ILT : Where in course of appellate proceedings before Tribunal, revenue raised a plea that issue as to whether assessee had a PE in India or not had to be verified and for that reason matter was to be remitted back to Assessing Officer, in view of fact that neither Assessing Officer nor DRP disputed claim of assessee that it had a PE in India, plea raised by revenue was to be rejected
Sum received by dealer from manufacturer in form of credit notes for replaced spare parts was liable
CST & VAT : Where assessee purchased cars from manufacturer and sold same to local customers at sale price which included cost of warranty and further it supplied spare parts to customers free of cost covered by warranty and returned defective parts to manufacturer and thereupon manufacturer issued credit notes to assessee reimbursing it for cost of parts so supplied, consideration paid by manufacturer to assessee by way of credit notes represented sale price of spare parts which were replaced a
Recovery of forex currency and proof for illegal transactions, both are necessary to affirm violatio
FERA: Mere fact that Indian currency was recovered did not establish violation of FERA as it was to be shown that said money was related to illegal transactions falling within ambit of FERA
Signing of development agreement couldn’t trigger capital gains tax unless developer discharged his
IT : Where assessee entered into a development agreement of land with a developer in terms of which developer had to develop property according to approved plan and deliver a part of constructed area to assessee, in view of fact that developer had not done anything to discharge obligations cast on it, capital gains could not be brought to tax in year under appeal merely on basis of signing of development agreement
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