"14 July 2009" Archive

Service tax credit cannot be taken when service tax has not been shown to have been paid by service provider

Ahmednagar Merchants Co-operative Bank Ltd. Vs CCE (CESTAT Mumbai)

Service tax credit cannot be taken when service tax has not been shown to have been paid by service provider; once it is found that Cenvat credit was irregularly availed by the assessee and by implication to that extent the service tax on the output service was short paid, it has to be recovered under Rule 14 of the Cenvat Credit Rules, 2...

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No VDIS for tax evaders : Finance Minister

Government has no plans to bring a new amnesty scheme for tax evaders and wants to amend the Indo-Mauritius tax treaty to curb its abuse by companies, the Rajya Sabha was informed on Tuesday. VDS schemes in the past offered amnesty to people declaring black money and paying tax. But VDS schemes cannot be hugely successful […]...

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Posted Under: Service Tax |

Declaration of Nidhi Companies as per section 620A of the Companies Act 1956

Notification No. G.S.R. 522(E) (14/07/2009)

In exercise of the powers conferredby sub-sections (1) and (2) of section 620A of theCompanies Act, ...

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Notice u/s. 148(1) of IT Act when a valid return was pending assessment

Kailash Auto Finance Ltd. Vs ACIT (ITAT Lucknow 'A' Bench)

16. The term 'pending' means 'undecided1 i.e something which is not concluded. An action is considered as pending from the time of commencement of the proceedings. Thus, a legal proceeding is pending as soon as commenced and until it is concluded. As per Advanced Law Lexicon, third Edition of 2005, page 3521/3522, following are the defini...

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Deduction u/s 80-IB of IT Act in respect of housing project and its allowability

Vandana Properties Vs ACIT (ITAT Mumbai 'F' Bench)

10. The first issue is to be decided before us is the interpretation of the phrase "Housing Project" which is contemplated in Section 80IB (10) of the Act. There is no definition of the term `Housing Project' given either in the Section 80IB or in the Act itself. But so far as Section 80HHBA which provides for a deduction in respect of pr...

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Valuation of residential accommodation provided by PSU to its employees

Canara Bank Vs ITO (ITAT Nagpur)

48. Section 17(2)(ii) as it stood prior to amendment in 2007 did not contain any 'deeming clause' to deem rent paid less than 10% or 7.5% as a concession or that the employees is deemed to have received that concession. An employer may provide residential accommodation to his employees for several reasons. It is also possible that for mak...

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PWC may be blacklisted in India

The Institute of Chartered Accountants of India could likely consider recommending blacklisting of Price Waterhouse, which would bar the global audit firm from carrying out auditing in India. As the institute can only recommend, its decision can be challenged in court. The institute may state its decision by the month end, say people fa...

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Posted Under: Service Tax |

Amendment Proposed in union budget 2009-10 in rules related to refund of custom duty on imported goods found to be defective

The Finance Bill proposes introduction of Section 26A in the Customs Act, 1962, so as to comply with the standards under the International Convention on the Simplification and Harmonisation of Customs Procedure (Revised Kyoto Convention). It seeks to provide for refund of import duty paid at the time of clearance of imported goods, capabl...

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Posted Under: Service Tax |

Retrospective Recovery of custom duty and interest from exporters proposed in budget by amending DFIA notifications

The proposal for retrospective amendment of the DFIA notification (no. 40/2006-Cus. dated 1.5.2006) intends to recover duty and interest from exporters who had stayed within the law and obtained certain benefits, which the government very well knew to be legitimate but later on claimed to be unintended. The DFIA scheme drafted by the comm...

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Posted Under: Service Tax |