Ever Since the rate of excise duty on fabric under Additional Duties of Excise (Goods of Special Importance)(AED-GSI) Act, 1957 was lowered to NIL % w.e.f._01-03-2006 it was widely perceived by the Textile Industry (Fabric) that the levy of state VAT on fabric is now just a matter of time, particularly when this AED levy on fabric was in lieu of state sales tax (VAT). However, the State Government just could not levy VAT on Fabric because though the rate of AED-GSI was lowered to NIL%, the items of fabric continue to remain listed in the Schedule to the AED-GSI ACT. What is the importance of this listing in Schedule to the AED-GSI Act 1957 ?.
CBEC vide Circular No. 138/07/2011-ST dated 6 May 2011 has yet again clarified that a Sub-contractor providing its services has to be classified under the taxable service category which gives the most specific description and not to the taxable service category which gives a general description and accordingly services provided by the Sub-contractor would be subject to service tax. It may be noted that exemption to a Sub-contractor would still be available if the service provided by them is classified under the taxable service category i.e. WCS, notwithstanding that services are provided to the Main-contractor or to the project.
Data of the rate charged to unrelated parties should be available. 01. Transfer Pricing provisions are not attracted in the case of transfer of the shares of the company when due to DTAA provisions, capital gain on such shares are not taxable. 02. TNM method requires comparison of net profit margins realized by an enterprise from an international transaction and not comparison of operating margins of enterprises as a whole.
A tax tribunal has ruled that service tax will apply on the proposed GMR-led joint venture in Special Economic Zone to provide maintenance, repair and overhauling (MRO) facilities to domestic and foreign airlines. The ruling was given by the Authority of Advance Rulings (AAR) on an application filed by the MAS-GMR Aerospace Engineering Company, a joint venture of GMR, Hyderabad International Airport Limited, Hyderabad and Malaysian Aerospace Engineering, SDN-BHD, Malaysia.
The Ministry of Corporate Affairs (MCA) has ordered a probe into market research agency Speak Asia after media reports unearthed shady workings of the firm. Speak Asia has been under the scanner for alleged using false high profile client names to benefit itself.
The government today vide circular no. Circular No.142/11/2011 – ST dated 18th May 2011, said that SEZ unit and developers would require the sanction of Unit Approval Committee for availing benefits of service tax refund. Besides, developers and units would also have to furnish original invoices for claiming benefits, the Department of Revenue said in a circular.
Mohammad Ahmad & Anr. Versus Atma Ram Chauhan & Ors. One half of the lis between landlord and tenant would not reach courts, if tenant agrees to pay the present prevalent market rate of rent of the tenanted premises to the landlord. In that case landlord would also be satisfied that he is getting adequate, just and proper return on the property. But the trend in the litigation between landlord and tenant shows otherwise. Tenant is happy in paying the meagre amount of rent fixed years ago and landlord continues to find out various grounds under the Rent Acts, to evict him some how or the other. This case appears to be another classic example of the aforesaid scenario.
In order to facilitate investors, Mutual Funds should provide an option to the investors to receive allotment of Mutual Fund units in their demat account while subscribing to any scheme (open ended/close ended/Interval). Therefore Mutual Funds/AMCs are advised to invariably provide an option to the investors to mention demat account details in the subscription form, in case they desire to hold units in demat form.
Tax sleuths unearthed central excise and service tax evasion amounting to over Rs 5,500 crore in the 2010-11 financial year, even as pressure mounted on the government to crack down on black money.
Pursuant to a Writ Petition challenging the imposition of service tax on lawyers and the prayer seeking interim relief by way of ‘restraining the Respondents from giving effect to directly or indirectly or acting upon the impugned provisions or collecting any service tax on the assistance provided as an officer of the Court by an advocate’,
