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.)
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
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.
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.
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.
The Trade and Economic Relations Committee held its 17th meeting on the 29th April 2011 under the chairmanship of the Prime Minister. The committee reviewed the status of the India-European Union Bilateral Trade and Investment Agreement and discussed the various issues involved in the negotiations. It was observed that concern has been raised by various quarters about the Indian stand on issues on Intellectual Property Rights, especially in the context of the Indian Pharma products. The Prime Minister firmly directed that the Indian side shall not take on any obligation beyond TRIPS/ Domestic Law.
Over the years, the CBI has evolved into the premier investigating agency of the country. There is a loud clamour for the investigation to be handed over to the CBI, whenever there is a gruesome crime, a complex case, a politically sensitive matter or large-scale fraud. Such requests come from all parts of the country and from governments of different persuasions. It is quite common for High Courts, and even the Supreme Court, to entrust cases considered complex or sensitive to the CBI for investigation. Over the years the CBI has acquitted itself well as an independent, professional and competent investigating agency. It has set benchmarks for other investigating outfits in the country to emulate. But there is room for improvement. I would urge the officers of the CBI to strive tirelessly to set even higher standards of work.
Filing Statements in XBRL and Implications: As you may be aware that the Ministry of Corporate Affairs has released a circular mandating certain class of companies in phase one for filing financial statements for the year ending 31st March, 2011, in XBRL formats, creating a new professional opportunity for all members, as we can help our clients in tagging the financial statements with the taxonomy and filing the instance documents so created with the MCA. Though the circular covers only a small class of companies, it is expected that some more will be covered in the next phase and eventually all companies will come under it, thereby giving an opportunity to professionals for XBRL filings for all its clients. Training programmes for the purpose shall be organised by the Institute, where XBRL India will provide the technical inputs, and the training schedule will be hosted on the Institute website. I am sure that our members will take the circular in right spirit and prepare themselves for such opportunities.
In a major top-level management restructuring, India’s second largest software firm Infosys today named veteran banker K V Kamath as the new chairman to succeed founder N R Narayana Murthy, who retires in August. The over USD 6-billion Infosys Technologies has also appointed current CEO S Gopalakrishnan as the Executive co-Chairman and promoted COO S D Shibulal as CEO and MD.
Schedule I provides for exemption in respect of sales of aforesaid goods where such goods are purchased on or after the 1st May 2011. Schedule II provides for exemption in respect of sales of aforesaid goods which were purchased on or before the 30th April 2011.
