Background The Central Board of Direct Taxes (“CBDT”) has issued notifications amending the rules in relation to compliance procedures as follows: • Forms for furnishing information to the income-tax department by a person responsible for making payments to a non-resident / foreign company. • Withholding tax or tax deducted at source (“TDS”) / tax collected […]
A recent notification issued by the Central Board of Direct Taxes (CDBT), the apex body on direct tax matters, is likely to widen the tax base by bringing in even small service providers. That is because the notification, which will be effective from April 1, says that the TDS form should contain the Permanent Account […]
Apex accounting body ICAI has raised objections to the recommendations of the Rakesh Mohan Committee on more autonomy to the Accounting Standards Board, an arm of the regulator, saying that the panel hasn’t suggested anything that is already not in place. “The composition of the Accounting Standards Board (ASB) is fairly broad-based and ensures participation […]
The legal consultants Handoo and Handoo have become the first Limited Liability Partnership firm of India, a new form of business structure where the partners’ liability is limited to the extent of their stake, introduced by the governemnt from April 1. Delhi-based R K Handoo and Associates is the first LLP that has opted for the LLP form of entity. […]
Where the assessee-employer obtained expatriate-employees from a foreign company and the said employees, continuing to be employees of the foreign company, received salary and allowance in their home country in foreign currency and the question arose whether the assessee was obliged to deduct tax thereon at source u/s 192 and the High Court held that the assessee was not obliged to deduct tax at source
9. The plain reading of the above clause (iv) of 35(1) reveals that the deduction shall be admissible u/s 35(2) when any expenditure is capital in nature; Such capital expenditure is incurred on the scientific research; that scientific research must be related to the business; and that business must have been carried on by the assessee. Further, said clause presumes that there exist two distinct activities
5.6 The scheme of section 80-IB indicates that what is being aimed at is to prevent exemption to those industrial undertaking which are formed by the splitting up or by reconstruction or by transfer to a new business of plant or machinery of the old business. The transfer, in this context, must mean a transfer of plant or machinery which is essential for formation of new industrial undertaking
6.1 The proceedings under section 271(1) (C) can be initiated only if the A.O or the first Appellate authority is satisfied in the course of any proceedings under the Act. If he is satisfied as per clause (c) that any person has concealed the particulars of his income or has furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty the sum mentioned
13. To appreciate the above rival contentions, it would be worthwhile to refer to relevant provisions of the Act i.e. section 48 and section 55(2) respectively. Section 48 provides for the computation of capital gains. The key factors to be taken into account while computing the capital gains are (1) the full value of consideration for transfer (ii) the cost of acquisition of the capital asset and the cost of improvement
The services rendered and the work undertaken by the applicant-Australia n company in terms of the Agreement for Basic Engineering and Procurement services fall within the scope of `royalties’ as defined in Article XII(3) of the DTAA between India and Australia and the receipts are taxable in India by virtue of Article XII(2); under the Income-tax Act too, they are so taxable
