LETTER [F. NO.137/35/2011 – SERVICE TAX], DATED 13-7-2011 Representation has been received seeking clarification on applicability of service tax under Manpower Recruitment and Supply Service in respect of employees sent on deputation by ONGC to Directorate General of Hydrocarbons (DGHC). The matter has been examined and it is clarified that activity of ONGC for providing its staff on deputation to DGHC for a remuneration in the form of reimbursement from DGHC, is chargeable to service tax under ‘Manpower Recruitment or Supply Agency’s Service’ in terms of section 65(105)(k) of the Finance Act. As per section 65(68) of the Finance Act, Manpower Recruitment or Supply Agency means any person engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to any other person.
Notification No. 49 / 2011-Customs (N.T.), n exercise of the powers conferred by sub-rule (1) of rule 3 of the Customs Tariff (Identification, Assessment And Collection Of Countervailing Duty On Subsidized Articles And For Determination Of Injury) Rules, 1995, and in supersession of Notification of the Government of India, in the Ministry of Finance, Department of Revenue, No. 3/95-Customs (N.T.) dated 1st January, 1995, published in the Gazette of India, Extraordinary Part II, Section 3, Sub-section (i) vide G.S.R. 3(E) dated the 1st January, 1995, except as respects things done or omitted to be done before such supersession, the Central Government hereby appoints the person not below the rank of Joint Secretary to the Government of India, Department of Commerce, Ministry of Commerce and Industry, as designated authority for the purposes of the said rules.
Present writ petition has been filed by the petitioner-assessee under Articles 226 and 227 of the Constitution of India praying for the following reliefs.
Yum Restaurants India Pvt. Ltd. v. ACIT (ITAT Delhi) -Since the taxpayer had applied filters in its TP report to reject persistent loss makers, the Tribunal questioned the basis of the taxpayer’s contention that other loss making comparables should not be rejected. Merely because a company is incurring losses, it would not lose its status as a comparable. Declaration of loss is an incidental of business which is at par with the profit.
ITA No.174 of 2011 has been preferred by the assessee under section 260A of the Income Tax Act, 1961 against the order of ITAT Delhi “C” Bench in ITA No. 2656/Delhi/2008 dated 10.7.2009 for the assessment year 2002-03 raising following substantial questions of law
Tech Mahindra Limited v. DCIT (ITAT Mumbai ) -ITAT held that the arm’s length price in case of interest on extended credit period allowed to an Associated Enterprise (AE) based in USA shall be determined on the basis of USD London Inter Bank Offer Rate (LIBOR) instead of applying the rate of interest pertaining to EURO denominated loan charged to AE based in Germany since the AE was based in USA.
Retirement fund manager EPFO will seek the legal opinion on implementation of the order of the MP High Court throughout the country under which employers and employees will be required to increase their contributions to the provident fund. ‘We will seek legal opinion and also the opinion of Ministry of Law and Justice Ministry, through Labour Ministry, on the MP High Court order throughout the country,’ Central Provident Fund Commissioner Samirendra Chatterjee said.
Rationale of Equity Caps -The FDI equity caps in a sector essentially reflect the levels of control that a foreign direct Investor is permitted to exercise in a company operating within that sector. The FDI policy incorporates equity caps at broadly four levels- 26%, 49%, 51% and 74%[2]. These caps reflect the ownership/ control levels in a company, under the Companies Act, 1956. Thus, for example, any equity holding greater than 25% gives a right to block a ‘special resolution’. 49% equity represents a level just short of ownership. 51% signifies ownership and a right to pass all ordinary resolutions. 74% equity cap on FDI means that the Indian equity holders, acting in unison, can block a special resolution.
Cargo Handling Private Workers Pool Vs. DCIT (ITAT Vizag)- Since the Income tax Appellate Tribunal is exercising judicial functions, it is now settled that it has all powers of Court, i.e. it can issue summons and exercise all the powers vested in the Income tax authorities under section 131 of the Income tax Act. Hence any proceeding before the Income tax Appellate Tribunal shall be deemed to be judicial proceedings.
In this appeal preferred under section 260A of the Income-tax Act, 1961 (for brevity ‘the Act’) assailing the order dated 13-2-2009 passed by the Income-tax Appellate Tribunal, Delhi Bench “B”, New Delhi (for short ‘the tribunal’) in ITA No. 2299/Del/2007 pertaining to the assessment year 2001-02 the revenue has raised the following substantial question of law.
