Service Tax : Where employee of foreign holding is deputed to Indian subsidiary for a particular period and during that period, employee was treated as 'employee' of Indian subsidiary, salary paid to such employee by Indian subsidiary cannot be charged to service tax in view of employer-employee relationship under section 65B(44)(b)
Tuesday 15 December 2015
No excise duty on adding salt to fish for freezing purposes as same doesn't amount to cooking
Excise & Customs : Mere addition of salt, Vitamin C, etc. to 'fish' for chilling/freezing purposes would not make it 'cooked food or food preparation'; same would continue to be 'frozen fish' and not liable to duty
AO can't reopen case at behest of audit party without any independent belief
IT : Where Assessing Officer had considered issue relating to taxability of interest in detail at time of assessment, action of reopening solely at behest of audit party without any independent belief while recording reasons would surely make reassessment vulnerable
SC decided not to interfere with tribunal's remand back order
Excise & Customs : Where Tribunal had merely remanded matter, there was no need for Supreme Court to interfere; however, scope of remand was extended to entire period covered by notice
Govt. lays down criterion to decide ST liability of apparel exports on services of garments fabricat
ST LAWS : Applicability of Service Tax on Services Received by Apparel Exporters in Relation to Fabrication of Garments
Due date to file reconciliation return under DVAT further extended to Jan. 15, 2016
VAT : Extension for Filing of Reconciliation Return for Year 2014-15
ALP of AMP exp. to be determined as per Sony Erricson's case if assessee was a manufacturer and not
IT/ILT : Approach to be adopted in case of manufacturer and a distributor for working out expenditure on AMP is different, hence, assessee being full-fledged manufacturer guidelines as culled out by High Court in case of 'Sony Ericsson' Mobile Communications India (P.) Ltd. v. CIT [2015] 374 ITR 118/231 Taxman 113/55 taxmann.com 240 (Delhi) were to be followed
Yoga/sports clubs won't be liable to pay service tax for providing services to its members
Service Tax : Consideration received by sports/yoga club and housing society from their members for activities for benefit of members, would not fall under service tax as per principle of mutuality and cannot be taxed under Club or Association's Services
Goods lying in warehouse beyond permitted period are liable to custom duty with interest and penalty
Customs : Goods lying in warehouse beyond permitted period are dutiable as per section 72 based on rate of duty prevalent on date of expiry of warehousing period; judgment in Kesoram Rayon v. Collector of Customs 1996 taxmann.com 254 (SC) is correctly decided and does not require reference to larger Bench
ITAT can extend stay beyond 365 days if delay in disposal of appeal isn't attributable to assessee
IT : Tribunal has power to extend stay beyond period of 365 days as stipulated in section 254(2A) provided delay in disposal of appeal is not attributable to assessee
Director in non-remunerative & non-executive position cannot be said to hold a place of profit
CL : Being a director in a non-remunerative and non-executive position in other companies does not amount to being in employment of those companies or holding a place of profit in those companies
Business which isn't insignificant as compared to whole business deemed as substantial business unde
IT : Where assessee took a loan as a shareholder from company in its ordinary course of business and lending of money constituted a substantial part of business of company, said loan could not be treated as deemed dividend
Hearing chance has to be given to assessee before dealing with issues not raised in appeal
CST & VAT: West Bengal VAT - Where Appellate Authority apart from dealing with four issues raised by assessee, suo motu dealt with two new issues and without issuing any notice disallowed input tax credit and TDS already allowed by Assessing Authority, it was mandatory to provide assessee opportunity of being heard before passing order affecting it adversely
Income arising to ‘Western Union’ from money transfer services isn’t taxable in India
IT/ILT : 'Western Union' isn't liable to pay any tax in India for transferring money to India for their American clients even if it appoints agents in India to provide those services and setS-up a liaison office to interact with such agents
Assessee can't take benefit of mistake where AO asks to deposit 25% of penalty instead of 25% of ser
Service Tax : Assessee could not be allowed to take benefit of mistake on part of Adjudicating Authority ordering deposit of 25 per cent of penalty along with service-tax and interest because such amount of penalty should be read as 25 per cent of service tax
Co. with rights of branded products and high risk profit not comparable with software development se
IT/ILT: In case of assessee rendering software development services to its AE, a company having giantness in terms of risk profile, nature of services, number of employees and ownership of branded products, could not be accepted as valid comparable while determining ALP
Assessee not allowed to raise a new plea as order was already passed by ITAT in pursuance of HC's di
IT: SLP dismissed against High Court's ruling that where Tribunal pursuant to directions issued by High Court, disposed of assessee's appeal by applying amended provisions of section 115JB, assessee could not challenge said order of Tribunal taking a new plea that section 115JB was inapplicable in its case
'Commerce Ministry Working Out Policy Initiatives To Revitalise Sezs'
NEW DELHI: The Commerce Ministry is working out policy initiatives to revitalise the special economic zones (SEZs), Commerce Secretary Rita Teaotia today said.
"What we are doing today is really to see if we can emerge with some clear cut policy directions which we intend to place before the government for a decision. So this is really a firming up of some of the issues," Teaotia told reporters here.
The secretary today met several representatives of SEZs to discuss problems being faced by them.
When asked about the meeting, she said: "meeting with SEZ is a continuous exercise to try and identify what are the issues, what could be a way forward for the troubled situation of some of the SEZ units".
The government should not withdraw any tax incentives from special economic zones as it might adversely impact exports and job creation, EPCES, a trade promotion body, today said.
Export Promotion Council for EOUs and SEZs (EPCES) said that imposition of Minimum Alternate Tax (MAT) has adversely impacted the growth of SEZs.
During April-September this fiscal, exports from these zones stood at Rs 2.21 lakh crore as against Rs 4.63 lakh crore in 2014-15.
During the first half of this fiscal, these zones generated jobs for 15.44 lakh people.
Service tax credit can be used to pay National Calamity Contingent Duty on mobile handsets
Cenvat Credit : As per fourth proviso to Rule 3(4), only use of credit of 'any other duty viz. duties of excise' is barred for payment of 'NCCD on mobile', use of credit of service tax for said purpose is not barred; hence, service tax credit can be used to pay 'NCCD on mobile handsets'
Delhi HC upholds personal penalty on Asstt. Commissioner for his involvement in drawback fraud
Excise & Customs : Where it was found that lower customs authorities had allowed 'old clothes' to be exported as 'new clothes' under claim of drawback only at instructions of Assistant Commissioner (Exports), personal penalty was rightly levied on Assistant Commissioner (Exports) for his complicity in 'drawback fraud'
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