uniformity

The income from investment activity was offered as capital gains while the income from dealing activity was offered as business income. This position was accepted by the AO in the earlier years. In AY 2005-06, the AO took a different view and held that even the shares held on investment account had to be assessed as business income. The Tribunal allowed the assessee’s appeal (see 122 TTJ (Mum) 87). On appeal by the Revenue, HELD dismissing the appeal: Full Article

Background: Certain dealers/persons approach the departmental authorities for the issue of "Tax Clearance Certificates" in respect of various taxes. At present, the tax clearance certificates are being issued by the VAT Recovery officers at most of the locations. It has been noticed that uniformity is not seen in the process adopted for issuing of such certificates and the proforma of such certificates is also noticed to be not in a standard format. Full Article

The model legislation for the introduction of goods and services tax (GST) will have a provision for registration of individuals and companies which pay the tax.The registration will be done through a uniform PAN-linked business identification number. The Department of Revenue in the Ministry of Finance had recently sent a proposal to state governments for making the 10-digit permanent account number (PAN) the starting point for registering GST payees. Full Article

“Entertainment industry is anticipated to grow at a rate of nearly 10 per cent for the next five years and would reach a level of Rs 1,000 billion…(however) uneven entertainment tax which is already in excess would curb its growth,” the industry body said. While entertainment is one of the basic needs of life, the entertainment tax levied on release of films in cinema halls is highly uneven across various states and is in excess of 30-40 per cent, the chamber said. Full Article