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Archive: April, 2011

Posts in April, 2011

Live Course on Appeal, Pleading & Drafting under GST by CA Sachin Jain

May 15, 2024 6501 Views 0 comment Print

oin us for an immersive live course led by renowned expert CA Sachin Jain, as we delve into the intricacies of appeal, pleading, and drafting under GST.

To qualify u/s. 194J, payment for technical services should be a consideration for acquiring or using technical know-how

April 30, 2011 880 Views 0 comment Print

Payments made to NSICT were for container movement and there were no professional or technical services involved in the movements of containers. The contention was restricted only to the technical services and not towards managerial or consultancy services. AO has not pressed the later part of the Expl. 2, which deals with provision of services of technical or other personnel. The expression other personnel in this provision must fall within the category of services of technical personnel. It cannot be considered as any personnel unrelated to the managerial, technical or consultancy services.NSICT personnel, may not have possessed some technical expertise, and hence cannot be considered as other personnel. • Both the `managerial‟ and `consultancy‟ services are possible with human endeavor, the word technical‟ should also be seen in the same light. • There should be direct and live link between payment and receipt/use of technical services/information

Guwahati High Court stays notification levying service tax on lawyers

April 30, 2011 870 Views 0 comment Print

The Bar Association of Gauhati has filed a Writ Petition in the Gauhati High Court to challenge the levy of service-tax on “Legal Consultancy Services”. The High Court has on 29th April 2011 said the matter requires in-depth scrutiny and directed that service-tax would not be recovered till the next date of hearing being 25th May 2011. Guwahati High Court’s Interim Order dated 29.04.11 staying service-tax on lawyers. Service Tax on Individual lawyers stayed by Delhi High Court

Rural households in India paid over Rs 470cr bribe for basic services

April 30, 2011 567 Views 0 comment Print

Ranging from Re one to Rs 950, rural households in the country could have paid a whopping Rs 471.8 crore last year as bribe to avail basic facilities such as ration, health, education and water supply, says a study. The ‘India Corruption Study 2010 report prepared by Centre for Media Studies (CMS), a survey of 9,960 households in 12 states, says on an average a rural household could have paid Rs 164 as bribe for availing these facilities in a year.

New Validation regarding TDS transactions not exceeding / exceeding threshold limit in quarterly e-TDS/TCS statement pertaining to FY 2010-11 and onwards

April 30, 2011 2287 Views 0 comment Print

A. Procedure for preparation of return. Deductors’ Manual for Quarterly Correction Returns B. Data structure (File Format) For statements pertaining to FY 2010-11 and onwards File Format for Form 24Q (1st, 2nd & 3rd Quarters). File Format for Form 24Q (4th Quarter).

Infrastructure claims paid to franchisees vs. Rent u/s 194I

April 30, 2011 600 Views 0 comment Print

Held that the agreement was in fact a franchisee agreement and it could not be said that the rent was being paid by the assessee company to the licensee franchisee. There was no payment of rent by the assessee company to the licensees/franchisees and hence the provisions of section 194I cannot be made applicable. CIT vs. NIIT Ltd. (184 Taxman 472) (Del.)

TDS on Commission and Supplementary Commission received by travel agents

April 30, 2011 3430 Views 0 comment Print

It was held that tax should be deducted at source under Section 1 94H on amount available to agents being difference between airfare fixed by Airlines and price at which agents are enabled to sell tickets. Around the World Travels & Tours Pvt. Ltd. vs. UOI (141 Taxman 53) (Mad.)

Section 194H – Whether difference between commercial price and published price can be classified as commission or not?

April 30, 2011 2924 Views 0 comment Print

CIT v. Qatar Airways (332 ITR 253) – The agents of the assessee (airline) were entitled to sell tickets at any price between the fixed commercial price and the published price. As a result the assessee would have no information regarding the final rates at which tickets were sold. It would be impracticable and unreasonable to accept the assessee to collect feedback from its numerous agents on the prices at which tickets are sold. Thus, it was held that the difference between the commercial price and the published price could neither be considered as commission or brokerage in the hands of the agents and hence was not liable to TDS

Do facilities provided by hotels –fall under the term “carrying out work”

April 30, 2011 1151 Views 0 comment Print

The word “carrying out work” u/s 194C is limited to any work which on being carried out culminates into a product or result (reliance was placed on the decision of the SC in case of Associated Cements). Circular 681 dated 3 March 1994 to the extent it applies to a customer availing the services of a hotel, should be held contrary to section 194C. The word work has to be understood in the limited sense and would extend only to the service contracts specifically included in (the then) Explanation III to section 194C.

Do hire charges with respect to hire equipment automatically call for TDS u/s 194C?

April 30, 2011 1970 Views 0 comment Print

In the absence of any such acceptable material, the conclusion of the AO in treating the hiring of equipment as one falling under the category of sub-contract for provision of labour or the conclusion of the CIT(A) that at least 10% of the total payment would have been incurred by way of labour charges by the respective owners, cannot be accepted. Section 194I came to provide for TDS on respect of machinery/ equipments only with effect from 1.6.2007 and not applicable to his case since it relates to AY 2005-06.

Whether hire of trucks without contract for carriage is covered under Sec 194C?

April 30, 2011 1532 Views 0 comment Print

There is no material on record brought by the AO to prove that there was any written or oral agreement between the assessee and the transporter for carriage of goods. There is no material to establish that any payment exceeded the prescribed limits during the financial year. As per the decision of the HC in case of United Rice Mill Ltd (322 ITR 594) laid down that Section 194C cannot be invoked to hold the assessee liable for deduction of tax only on the assumption that assessee was having agreement with the parties through whom transportation of goods was carried out.

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