"November, 2010" Archive - Page 5

I-T dept introduces new number for taxpayers for tax filing

Taxpayers will now have to procure a 'new number' for filing returns and making any communication with the Income Tax department. The unique Document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on "every" inc...

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Posted Under: Income Tax |

Govt tightens PF norms for overseas workers in India

India has tightened norms for withdrawal of provident fund by overseas workers employed in the country, prohibiting them from taking back this money until they are 58 years old or are incapacitated. "An international worker may withdraw the full amo...

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Posted Under: Income Tax |

LIC's new premium crosses Rs 50,000 crore during Apr-Oct

The new premiums of country's largest insurer Life Insurance Corporation (LIC) has breached the Rs 50,000-crore mark during April-October period this year, an increase of 66 per cent from the corresponding period last fiscal. In the first seven month...

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Posted Under: Income Tax |

Consideration for strategic consulting services cannot be considered as Fees for Technical Services or Royalty prior to amendment to India-Switzerland

Recently, the Mumbai Tribunal held that the consideration received by the taxpayer for providing strategic consulting services cannot be considered as Fees for Technical Services (FTS) or Royalty within the provisions of the India-Switzerland tax treaty (See Note 1 at the bottom)....

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Posted Under: Income Tax |

Supply of software is not transfer of copyright but only transfer of copyrighted article and such payment is not Royalty under India-Israel tax treaty

DDIT Vs. TII Team Telecom International Ltd. (ITAT Mumbai)

Mumbai bench of the Income-tax Appellate Tribunal held that the supply of software does not amount to any transfer of copyright but only transfer of copyrighted article. Further, payment received for sale of copyrighted article does not amount to income from royalty within the meaning of the India-Israel tax treaty. Further, the Tribunal ...

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Payment received for sale of copyright article does not amount to royalty under the India – USA tax treaty

The Dy Director of Income Tax Vs Alcatel USA International Mktg Inc. (ITAT Mumbai)

Recently, the Mumbai bench of the Income-tax Appellate Tribunal held that the payment received by the taxpayer company towards the sale of copyright article does not amount to royalty within the provisions of Article 12(3) of the India-USA tax treaty (tax treaty)....

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Losses on un-matured forward contracts cannot be considered as notional or contingent

Bharat Earth Movers Vs Commissioner Of Income Tax (Supreme Court of India)

In this case Special Bench of the Income-tax Appellate Tribunal dealt with the issue of allowability of losses on account of unmatured forward contracts in foreign exchange entered into by the taxpayer. The Special Bench while dismissing the contentions of the tax department held that the loss on unmatured forward contracts is in the n...

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Rules 6(2) and 6(3) of Cenvat Credit Rules 2002 not applicable when assessee is engaged in ‘trading activity’ and providing ‘output services’- Cestat

Orion Appliances Ltd. Vs. CST (CESTAT Ahemdabad)

Since the inception of Cenvat Credit Rules, there has been a debate on the application of Cenvat Credit Rules viz a viz trading activity. The Cenvat Credit Rules do not have any provision to govern a situation where common ‘inputs’/‘input services’ are used by an assessee engaged in providing output service/ manufacturing dutiable...

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Delhi Tribunal seeks to examine board meetings, etc. to decide place of management

M/s SMR Investments Limited Vs. DDIT (ITAT Delhi)

Recently, the Delhi bench of the Income-tax Appellate Tribunal dealt with the issue of taxability on sale of shares under India-Mauritius tax treaty (tax treaty). The Tribunal asked for either third party evidence or evidence by any government agency either situated in Mauritius or in India to be brought on record to substantiate taxpayer...

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Rejection of application by AO for lower or nil withholding is an ‘order’ eligible for revision by CIT

Larsen & Toubro Ltd. & Anr. Vs. ACIT (Bombay High Court)

The Bombay High Court held that expression “order” for the purposes of section 264 of the Income-tax Act, 1961 (the Act) has a wide connotation. The words used under section 264(1) of the Act are ‘any order other than order under section 263’. Hence, the rejection of an application by the Assessing Officer (AO) for lower withholdi...

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