IT: Where assessee contractor in order to execute its work orders had engaged services of labourers through Jamadar, same could not partake nature of sub-contract in absence of any obligation or responsibility being fastened upon said Jamadar or labourers, hence, there was no requirement to deduct tax at source out of such payments
Monday 16 February 2015
No penalty for incomplete import declaration form if goods were found recorded in books of accounts
CST & VAT: UP VAT - Merely because column 6 (providing for bill/cash memo/challan/tax invoice No. & date) of Form 38 was found blank, penalty could not be levied when goods were found recorded in books of account and there was no intention to evade tax
HC denies sec. 54F/54B relief to mother for buying properties in name of her married daughters
IT : Assessee is not entitled to sections 54F and 54B relief in respect of properties acquired in name of her married daughters
Fee for providing assistance for borrowed service was business profits in absence of FTS clause in I
IT/ILT : Consideration received from providing assistance in the form of borrowed service to associated enterprise was business income in absence of FTS clause in India-Greece DTAA
Sum received on redemption of stock appreciation rights under ESOP was taxable as cap gains and not
IT: Amount received by assessee on redemption of Stock Appreciation Rights received under ESOP was to be taxed as capital gain and not as perquisite under section 17(2)(iii)
Issue of applicability of suitable method for TP study was remanded to ITAT following order of prece
IT: Following order of Tribunal for preceding year, issue of application of most appropriate method for computation of arm's length price was restored back to Tribunal for fresh consideration
No reassessment to deny sec. 54 relief alleging sale of agricultural land, as such sale was otherwis
IT : Where Assessing Officer completed assessment under section 143(3) allowing assessee's claim for deduction under section 54, subsequently he could not initiate reassessment proceedings taking a view that property transferred by assessee was agriculture land and, thus, deduction in question was wrongly allowed
ITAT allowed sec. 24 interest deduction as borrowed funds were used for construction of house proper
IT: Interest paid on funds borrowed for construction of property would be allowed as deduction under section 24
Insurance/banking Cos allowed to acquire securities in normal course without complying with investme
COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Removal of Difficulties) Order, 2015 – Amendment in Section 2 and Section 186 of the Companies Act, 2013
HC order release of goods on furnishing of bond as factual findings could be unearthed in adjudicati
CST & VAT: Kerala VAT - Where actual factual particulars could be unearthed only in course of adjudication proceedings, detained goods was to be released on furnishing simple bond without sureties
Issues of levying simultaneous penalties for failure to pay ST and act of suppression were referred
Service Tax : Issue 'whether penalty under sections 76 and 78 is imposable simultaneously on assessee for period prior to 10-5-2008 or not' stands referred to Larger Bench
Refusal of ITAT to admit a claim in block assessment won’t invite sec.150 to re-open assessment beyo
IT: In absence of any ascribed incriminating material found during search, Assessing Officer could not resort to reassessment beyond period of limitation as provided under section 150
Mere wrong exclusion of comparables in earlier year won't debar assessee from including it in later
IT/ILT: Where a particular company was wrongly excluded by assessee in determining ALP of an international transaction for an earlier year, same could not debar him from including it in list of comparables in succeeding year, if it was actually comparable
Compliant couldn't accuse developer of unfair trade if it itself didn’t follow terms of allotment of
MRTP: Where complainants had failed to abide by general conditions and terms and conditions of allotment of land, they had disentitled themselves from contending that respondent development corporation was guilty of restrictive/unfair trade practice
Assessee wasn't entitled to input tax credit as it hadn't filed returns within prescribed time
CST & VAT : Karnataka VAT - Where assessee had not filed returns for relevant period within time prescribed, it would not be entitled to benefit of input tax credit under section 10
Investment norms not applicable on insurance/banking Cos acquiring securities in normal course of bu
COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Removal of Difficulties) Order, 2015 – Amendment in Section 2 and Section 186 of the Companies Act, 2013
Traders Can Quickly Get Export, Import Number To Start Biz
Seeking to streamline the procedure, the Commerce Ministry has put in place an online system for instant generation of import-export code on submission of documents.
The move would help companies or an individual wanting to enter the trade sector. Import-Export Code (IEC) is needed for shipments.
"This is a major step towards improving ease of doing business in the country. If all the documents are in place, a trader would get the code in a few minutes. Otherwise, if there is a problem, an automatic email or an sms would be generated and it will be sent to the concerned person," a senior official in the DGFT said.
Earlier it used to take weeks to six months to get this code, the official added. On February 1, the Directorate General of Foreign Trade (DGFT) made it mandatory to submit online applications for IEC. Within a week, the DGFT has got over 2,500 applications for IEC code.
Federation of Indian Export Organisations (FIEO) said that the move would help in reducing transaction costs for both exporters and importers.
The online submission system would also help the DGFT office to save lakhs of rupees which were spent on renting godowns to store these applications. The Delhi office of DGFT used to get about 60,000 applications per year and one application consists of about 20 pages.
The DGFT has set a checklist for its officials through which they can easily process an IEC application. For example to check PAN and DIN details, officials can verify it from the website of Income Tax Department and Ministry of Corporate Affair's website respectively.
"The new IEC system will reduce time in grant of IEC as applications with all details and attachments will be cleared quickly. The verification of document has been provided online with authorities like CBDT, MOCA etc which will reduce transaction time," FIEO President Rafeeque Ahmed said.
The Commerce Ministry is intensely engaged with different departments, including revenue and shipping, to reduce paper work in a bid to cut transaction cost for exporters and improve the ease of doing business.
The DGFT, under the Commerce Ministry has prepared a report suggesting various ways to improve India's ranking in the World Bank's report of ease of doing business, reduce transactions cost for exporters and boost outward shipments.
The ministry aims at reducing the number of mandatory documents from nine to three (bill of lading, invoice and shipping bill) for exports, and from ten to four for imports.
The government is aiming to improve India's overall ranking in ease of doing business index to 50th position in the next two years from the current 142nd.
Source: business-standard.com
General Motors To Launch Chevrolet Trailblazer This Year, Spin In 2016
General Motors India on Monday announced that it will introduce the Chevrolet Trailblazer, an SUV, in 2015 and the Chevrolet Spin, an MPV, in 2016.
The company last week concluded its annual general meeting to share its business plan with dealers.
The company's President and MD Arvind Saxena said facelifts for existing car lines would continue.
The company is targeting export of 19,000 units to over 30 markets, especially Mexico and Chile, Saxena said.
The company had started exports to Chile in September 2014. Saxena added that the export target for 2016 is 40,000 units.
Source:thehindubusinessline.com
Aluminium Companies Export More As Home Market Slows Down
Hindalco Industries and Vedanta Resources, India's two largest aluminium producers, have stepped up exports amid increasing capacity and poor domestic demand.
Exports of primary aluminium from the country surged 65% in the first half of the current fiscal, according to the Centre for Monitoring Indian Economy, as demand slowed down at home due to a sluggish Economy, while overseas markets offered a better opportunity to Indian producers.
Hindalco has exported as much as half of its produce during this financial year, compared to less than a fifth last year, while Vedanta Resources exported about 40% of its output in India against about 30% in 2013-14. "If we find it is better, economical and makes sense to export, we will-...better than holding onto the stock," said Hindalco's managing director Debnarayan Bhattacharya. "We build capacity keeping in mind that you should be in the position to export. Otherwise you are making an assumption that may or may not come true," he said.
Kumar Mangalam Birla-led Hindalco is exporting aluminium produced at its new plants in Madhya Pradesh and Odisha that are being ramped up. Hindalco expects to produce 1.3 million tonnes (mt) of aluminium by the end of next financial year if coal auctions planned by the government go as per schedule. The company's larger rival Vedanta Resources, which is also in expansion phase, expects to produce 2.3 mt of aluminium by the end of 2016-17.
While India's aluminium production is expected to grow to about 4 mt in the next two years, it will be able to consume this amount only by 2020, according to a senior official with Vedanta Resources. This will leave producers with a huge overcapacity that is likely to hit prices unless it is used for exports. "Most of Indian capacity expansion has happened only in the last one year and will continue in the next two years. So, in this period, a lot of exports will be happening," said Puneet Jagatramka, head of central procurement and marketing at Sesa Sterlite Aluminium.
Source:economictimes.indiatimes.com
India Containerized Shredded Scrap Import Prices Plummet To $282 A Ton
The containerized shredded scrap prices for Indian imports plummeted by $25 a ton to $282 a ton CFR Nhava Sheva port last week as local scrap and sponge iron alongside Chinese and Russian semi-finished material continued to put pressure on scrap imports.
According to TSI, finished steel prices continue to fall while demand is yet to pick up. Despite the large price fall this week most market participants expect to see a further drop in March before we reach the bottom and imports begin to flow a little freer.
With the Indian steel ministry having submitted a proposal to the Finance ministry for the reorganisation of steel and raw material duties, rumours abound as to whether the 2.5% duty on imported scrap will remain for much longer.
Source:metal.com
No invocation of extended period when penalty was set aside on finding non-suppression of facts by a
Excise & Customs : Question of suppression of material facts is germane to both issues i.e., invocation of extended period of limitation and levy of penalty; hence, Tribunal order upholding extended period while setting aside penalty was remanded back
Flavouring and Perfumery compounds are taxable at 4% under Bombay Sales Tax Act
CST & VAT : Bombay VAT - Flavouring compound and Perfumery compound sold by assessee were covered under Entry No. 19 of Part I of Schedule C of Bombay Sales Tax Act
No business income arises from cutting of trees of spontaneous growth and using them for own purpose
IT: There can be no business income from cutting trees of spontaneous growth in tea graden and using wood for own consumption
No denial of registration to lessor merely due to pending dues against lessee, says Madras High Cour
Excise & Customs : Where assessee had leased its factory and Department, having recognized lessees as such, had granted them registration and subsequently, assessee restarts business and seeks registration, registration cannot prima facie be denied to assessee-lessor merely because there are pending dues pertaining to lessee
Allotment of flats under self financing scheme of DDA has to be deemed as construction of house for
IT : In view of CBDT Circular No. 471, dated 15-10-1986 cases of allotment of flats under self financing scheme are to be treated as cases of construction for purpose of capital gains entitling benefit under section 54F
HC quashed winding up plea against respondent as it earned profits and was ready to pay overdue bill
CL: Where respondent-company was ready to make payment of outstanding bills and was earning profits by running a hospital, winding up petition against it was to be dismissed
Police rightly allowed to probe corruption charges against tax officer as it didn't cause prejudice
Prevention of Corruption: Where no case of prejudice or miscarriage of justice by reason of investigation by Sub-Inspector of Police was made out, permission granted by Magistrate to investigate complaint against income-tax authority by Sub-inspector was allowable
Subscribe to:
Posts (Atom)