"January, 2009" Archive

Levy of service tax on educational institutions- regarding

Circular No. 107/01/2009 – ST (28/01/2009)

Circular No. 107/01/2009 – ST   New Delhi, dated 28th January 2009 F.No137/23/2007- CX.4 Government of India , Ministry of Finance , Department of Revenue , Central Board of Excise and Customs Subject: Levy of service tax on educational institutions- regarding Various educational institutions impart training and conduct courses in dif...

Read More

Income Tax Department ignored Raju's diversion of funds

The income-tax department appears to have turned a blind eye seven years ago to diversion of funds from Satyam to members of the Raju family. A deputy director of investigation in IT found fixed deposits worth Rs 19.5 crore in banks on which tax had not been deducted at source....

Read More
Posted Under: Service Tax |

CBEC draws Supreme Court ire over faulty notices to tax defaulter

While the Central Board of Direct Taxes recently got a go -ahead from the Supreme Court for its showcause notice to Vodafone, the Central Board of Excise and Customs (CBEC) has displeased the apex court by providing insufficient details in its showcause notices sent to defaulting assessees. The Supreme Court has dismissed the case. Taking...

Read More
Posted Under: Service Tax |

Joint audits and inspections by the ICAI/DCA are critical if the system has to work

The Satyam affair has shaken the country’s audit profession and regulatory authorities to its roots. Investors have suffered in a big way and Indian business has lost some of its sheen. Has there been a systemic failure or is Satyam just a big exception? Has the macro-structure of the audit procedure not evolved in a […]...

Read More
Posted Under: Service Tax |

Chargeability of interest income to tax when same is only technically accrued

Brahamputra Capital & Financial Services Ltd. Vs ITO (ITAT Delhi)

8. We have carefully deliberated on the rival contentions raised by the learned AR and DR. The controversy here revolves around chargeability of interest income to the tax which even though technically accrued as per the mercantile-system of accounting being followed by the assessee, but the same was not accounted for as income in view of...

Read More

PROVISIONS OF SECTION 194H OF IT ACT WOULD NOT BE ATTRACTED ON DISCOUNTS GIVEN

6.We have considered the rival submissions. A perusal of the agreement entered into by the assessee to the concessionaires clearly shows that the concessionaires are duty bound to use the premises and the equipment as belonging to the assessee. The agreements also clearly show that the control over the shops is with the company. The token...

Read More
Posted Under: Service Tax |

Why ICAI stays quiet on PwC?

PriceWaterhouse partners S Gopalakrishnan and Srinivas Talluri have been arrested in the Satyam scam but the Institute of Chartered Accountants of India (ICAI), citing lack of evidence, has taken no action yet. Well, is this regulator effective enough or a mere a rubber stamp for CAs?...

Read More
Posted Under: Service Tax |

CAs have given false certificates to evade taxes in India by NRI & Foreigners

After the Satyam scam, the role of chartered accountants (CAs) has come into focus again. This time the Income Tax (I-T) Department has found that CAs have given false certificates, enabling Non-Resident Indians (NRIs) and foreign nationals to evade taxes in India. The government agency has informed the Institute of  Chartered Accountant...

Read More
Posted Under: Service Tax |

Service Tax Circular on applicability of service tax on activities carried out by builders / promoters / developers

Construction of building complexes, having more than twelve residential units is subject to service tax under the category of „Construction of Complex Services.? In the past, various views have been expressed on the applicability of the service tax in cases where an agreement of sale is entered into between the builder and the buyer of ...

Read More
Posted Under: Service Tax |

Wake up call for Chartered Accountants

Satyam’s Auditors Arrested – Who’s Next? Participate In Signature Campaign Now Based on confessions of fraud made by the promoters of Satyam and its CFO, the Andhra Pradesh Police arrested the two members of the Institute of Chartered Accountants of India, who signed the Audit Report and put them behind bars along with commo...

Read More
Posted Under: Service Tax |

Featured Posts