Archive for May, 2008

The CBDT, as a measure to reduce litigation, revised the monetary limits for filing appeals by the Department before Income Tax Appellate Tribunals, High Courts and Supreme Court. Accordingly, appeals would henceforth be filed in the ITAT only if the tax effect exceeded Rs.2,00,000, in the high court only if the tax effect exceeded Rs.4,00,000 and in the Supreme Court only if the tax effect exceeded Rs.10,00,000. However, it clarified that these monetary limits would not.. Full Article

After much bickering with states, the finance ministry today reduced the central sales tax (CST) rate on inter-state sales from 3 per cent to 2 per cent with effect from June 1.The ministry notified the rate-cut to the states despite differences on compensating them for losses of about Rs 13,000 crore in 2008-09 because of the cut. CST was cut from 4 per cent to 3 per cent on April 1, 2007. It was to be reduced to 2 per cent on April 1, 2008, and phased out by March 2010.. Full Article

The circular, dated August 1, 2006, aforementioned, is binding on the department and this circular makes it more than abundantly clear that when a builder, promoter or developer undertakes construction activity for its own self, then, in such cases, in the absence of relationship of ‘service provider’ and ‘service recipient’, the question of providing ‘taxable service’ to any person by any other person does not arise at all. Full Article

Foreign nationals working in India will be exempt from fringe benefit tax (FBT) on the cost of transportation from their residence to the workplace, according to a Supreme Court ruling. Responding to a petition filed by an Australian firm, R&D Falcon (A) PTY, the apex court overruled an earlier decision by the Authority for Advance Ruling (AAR), a quasi judicial body for resolving tax disputes involving foreigners. Full Article

CIT vs. Divine Leasing & Finance (SC) - The amount of share application money received by a Company from alleged bogus shareholders cannot be regarded as undisclosed income under S. 68 of I. T. Act for the simple reason that if the names of the alleged bogus shareholders are given to the AO, then the Department is free to proceed to re-open their individual assessments in accordance with law. Full Article

H and R Johnson (India) Limited,Versus Union of India - Under the given circumstances of the case and particularly the purport of Rule 22 (2) of the Anti-Dumping Rules and the proviso thereto, the initiation of a new shipper review cannot be with retrospective effect in the case of a first time exporter. Full Article

Kay Polyplast Limited Vs. Additional Commissioner of Income Tax (Jodhpur High Court) There is a million dollar circumstance to show, that before rejecting the books of accounts, learned Assessing officer did not take into account, other relevant attending circumstances, including the consistent wastage percentage, shown by the assessee, and the same having been accepted by [...] Full Article

INDUSTRY and business chambers are liable to pay service tax. The Central Board of Excise and Customs on Thursday clarified that the trade associations falls within the scope for ‘clubs and association services’. The clarification comes close on the heels of Confederation of Indian Industries (CII) getting a show cause notice from the service tax department for Rs 32 71 crore. Full Article