"12 December 2009" Archive

Do principles governing company law differ from settled principles of law?

Understanding settled principles of law is very very important while presenting or pursuing a case before a Court of law, Board or any Tribunal. Keeping into mind the object of the enactment, the subject, the societal scenario etc. our Courts settled certain principles and the same are to be followed by all Courts or Tribunals unless over...

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Posted Under: Company Law |

Service Tax on Legal Services – Some Controversial Issues

services provided by Chartered Accountants, Cost Accountants and Company Secretaries as well as by engineering and management consultants are presently charged to Service Tax. Although there is a school of thought that legal consultants do not provide any service to their client, I hold my distinguished predecessor in high esteem and disa...

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Posted Under: Company Law |

Section 56(2) Deemed Gifts & transfer of movable & immovable property

Until the amendment made by the Finance (No.2) Act, 2009, the gifts were taxed only on receipt of sum of money; i.e., cash or cheque or bank draft in excess of Rs.50,000 in a year by any individual or HUF. Now, gifts of immovable and certain movable properties will also be subject to tax if these are received without consideration or at i...

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Posted Under: Company Law |

Issues arising out of & Implications of A & G Projects Judgment – The way out

Under entry 92A of List I of the VII Schedule to the Constitution of India, the Parliament of India has the exclusive right to impose tax on sale or purchase of goods other than newspapers where such sale or purchase takes place in the course of inter-State trade and commerce. Article 269 of the Constitution of India authorises the Parlia...

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Posted Under: Company Law |

Critical Analysis of Inter-State Works Contract

After amendment to the constitution by inserting Article 366(29A) providing definition of the term “taxes on sale or purchase of goods” to include deemed sales, States were empowered to levy tax on sale or purchase of goods involved in execution of works contracts. However, the power of States to levy tax on deemed sales including wor...

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Posted Under: Company Law |

Opinion – Levy of VAT on Transfer of Assets

The transaction involves a global acquisition of a banking business by the Purchaser from the Seller. Consequent thereto, all assets and liabilities in India will be acquired by the Purchaser from the Seller. The acquisition of the assets and liabilities in India will either be through: (a) slump sale process, in which the undertaking as ...

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Posted Under: Company Law |

Can karta of HUF sell ancestral immovable property with out the consent of other members, Right and relief to buyer?

Question:- A Karta of a HUF makes an agreement with another person to sell an ancestral immovable property for a consideration. His married sons refuse to execute the sale deed in the last minute saying that the sale consideration is nowhere near the market price, their interests are therefore very much affected and the Karta has misled t...

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Posted Under: Company Law |

Sales in transit meaning, procedure, case Laws & Provisions

Q.1 Please explain the scheme of “in transit sale” covered by section 6(2) of CST Act, 1956? Ans.: Section 3(a) of CST Act,1956 defines the interstate sale/purchase transaction. Section 3(b) defines the interstate sale effected by transfer of documents of title to goods. When the goods are in movement from one State to other. The whol...

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Posted Under: Company Law |

Use of residential premises for professional/business/office purposes

Can residential premises be used for professional or business office purposes? It is generally believed that only a part of the flat can be used for professional purposes and that no part of the flat can be used for business office purposes. However the decided case laws on the subject speak otherwise....

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Posted Under: Company Law |

Government asked CBDT to put MIS system to track and recover Income tax arrears

Income-tax arrears against assessees — of Rs 2,01,276 crore as on March 31, 2009 — have once again become an issue, as Parliament’s standing committee on finance has asked the Department of Revenue and the Central Board of Direct Taxes (CBDT) to put in place a Management Information System (MIS) within three months for collating and...

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Posted Under: Company Law |