Various ready-to-cook snack mixes are taxable at higher rate of 13.5% under Karnataka VAT Act

CST & VAT: Karnataka VAT - Vegit-Aloo Hara Bara Kebab, Vegit-Aloo Veg Cutlet, Vegit-Aloo Yummy Cheese Balls, Vegit-Aloo Mazedar Bonda and Vegit-Aloo Jatpat Tikki, which are generally known as Vegit Snack Mix, would fall under residuary entry of VAT Act and were not covered by Entry No. 3 of Third Schedule

Assessee has to reply to sec. 148 notice even if jurisdiction of AO is disputed, Supreme Court dismi

IT/ILT: SLP dismissed against order of High Court where it was held that even if existence of PE of petitioner non-resident company within jurisdiction of Assessing Officer was in dispute, if petitioner had not made aware Assessing Officer that no income chargeable to tax had escaped assessment and had merely told him that he had no jurisdiction to issue reassessment notices, it did not act strictly in accordance with law

Collection of tax from an Indian resident to be suspended during pendency of MAP proceedings invoked

IT/ILT : Section 90 of the Income-Tax Act, 1961 – Double Taxation Agreement – India-Uk Convention for Avoidance of Double Taxation and Prevention of Fiscal Evasion – Suspension of Collection of Taxes during Mutual Agreement Procedure (MAP)

Mark-up earned on sale isn't chargeable to service tax even when same is wrongly booked as 'commissi

Service Tax : Where assessee : (a) bought goods on payment of VAT, and (b) sold same to foreign company after adding mark-up of 3 per cent, said transaction was one of 'purchase and sale' and not commission agent's services, even if mark-up is wrongly booked as commission and assessee's seller directly sends goods to foreign company

No reassessment to disallow sec. 35D deduction which was allowed after scrutiny assessment; SLP dism

IT : SLP dismissed against High Court ruling that where for several years deduction for amortization of GDR issue expenses under section 35D had already been allowed, that too after scrutiny assessment, same could not be disallowed in current year by reopening

Assessee has to reply to sec. 148 notice even if jurisdiction of AO is disputed, SC rules dismissing

IT/ILT: SLP dismissed against order of High Court where it was held that even if existence of PE of petitioner non-resident company within jurisdiction of Assessing Officer was in dispute, if petitioner had not made aware Assessing Officer that no income chargeable to tax had escaped assessment and had merely told him that he had no jurisdiction to issue reassessment notices, it did not act strictly in accordance with law

New norms on lending against shares by large NBFCs aren't applicable for unlisted shares

NBFCs : LENDING Against Shares - Clarification on Applicability of Circular DNBS (PD).CC.NO.408/03.10.001/2014-15, DATED 21-8-2014

Service-tax continues to be levied at 12.36% until date of enforcement of new rate would be notified

ST LAWS : Finance Bill, 2015 – New Service Tax Rate – Clarification on Coming into Effect of New Service Tax Rate

RBI proposes ban on outsourcing of internal audit and KYC norms by NBFCs; releases draft guidelines

NBFCs : Draft guidelines on managing risk and code of conduct in outsourcing of financial services by NBFCs

MCA allows listed Cos to follow Schedule XIII of old Act even for remuneration tenure beyond April 1

COMPANIES ACT, 1956/COMPANIES ACT, 2013 : Section 197, Read with Schedule VI, of the Companies Act, 2013 and Schedule XIII of the Companies Act, 1956 – Managerial Remineration – Clarification on Payment for Period as Approved by Company in Accordance with Provisions of Earlier Act

Goods used for fabrication of structures to support machines are eligible for credit

Cenvat Credit : MS Rod, Sheet, MS Channel, MS Plate, Flat etc. used for fabrication of structurals to support various machines like crusher, kiln, hoopers etc. are eligible for capital goods credit as 'components, parts and accessories

Pune ITAT allows depreciation on Goodwill following verdict of Apex Court in Smifs Securities

IT : Where under share sale and purchase agreement assessee purchased 51 per cent shareholding of company 'M' while assigned debts of Rs. 1.35 crores to 'M' for Re. 1 only and subsequently recovered amount was shown and taxed in hand of company 'M', original loss of Rs. 1,34,99,999 was in fact compensation paid to company 'M' for surrendering their 51 per cent share; hence, a capital expenditure

Department can't collect tax at time of inspection without passing assessment order

CST & VAT : Tamil Nadu VAT - Where Assessing Authority at time of inspection of business premises had collected two cheques of a certain amount from assessee, without assessment order or without giving an opportunity of personal hearing, there could not be collection of tax at time of inspection

HC sets aside order transferring jurisdiction of assessee as it was made without hearing to assessee

IT : Where revenue authorities transferred assessee's jurisdiction from one place to another without serving it a notice or affording an opportunity of hearing, order so passed being in violation of provisions of section 127(2), deserved to be set aside

AO to examine whether Co. was entitled to investment allowance on transfer of machinery under amalga

IT: Where, under scheme of arrangement, 9 out of 13 industrial units held by respondent company were transferred to three newly formed companies, scheme would be covered under expression 'otherwise transferred' in sub-section (5) of section 32A, hence benefit of investment allowance was rightly withdrawn

ITAT rejects entities with high related party transactions and functional differences in comparable

IT/ILT : Addition made to assessee's ALP in respect of rendering advisory and support services to its AE for development of business in petroleum, natural gas etc. was not sustainable as some of comparables selected by TPO were improper on account of related party transactions and functional difference etc.

Ex-parte assessment upheld as assessee didn't produce books even after getting several opportunities

CST & VAT : Odisha VAT - Where Assessing Officer initiated reassessment proceedings against assessee and issued on it a notice under section 43 and asked it to appear before him with books of account, since despite a number of opportunities being allowed to produce books of account assessee did not produce same, Assessing Officer was fully justified in passing assessment order ex parte