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Archive: 01 January 2012

Posts in 01 January 2012

Would the payments made by a company to BSNL/ MTNL for the services provided through interconnect / port / access / toll be treated as “fees for technical services” to attract the provisions of tax deduction at source under section 194J?

January 1, 2012 13643 Views 0 comment Print

CIT v. Bharti Cellular Ltd. & Hutchison Essar Telecom Ltd. (SC) – On this issue, the Delhi High Court had held that the services rendered in relation to interconnection, port access did not involve any human interface and, therefore, the services could not be regarded as “technical services” as contemplated under section 194J. The expression “technical service” would have reference to only technical service rendered by a human. It would not include any service provided by machines or robots. The Delhi High Court, therefore, concluded that interconnect charges/port access charges could not be regarded as fees for technical services, and hence, TDS provisions under section 194J were not attracted.

Can EPABX and mobile phones be treated as computers to be entitled to higher depreciation at 60%?

January 1, 2012 16919 Views 3 comments Print

Federal Bank Ltd. v. ACIT (2011) 332 ITR 319 (Kerala High Court) – On this issue, the High Court held that the rate of depreciation of 60% is available to computers and there is no ground to treat the communication equipment as computers. Hence, EPABX and mobile phones are not computers and therefore, are not entitled to higher depreciation at 60%.

Addition U/s. 69B can be made in the absence of documentary evidence in respect of the purchase and sale of Property

January 1, 2012 934 Views 0 comment Print

ITO vs. Sh. Ashok Kumar Kesarwani (ITAT Delhi) – Impugned addition in this regard were made by the Assessing Officer as the assessee has failed to provide the necessary documentary evidence with regard to the transactions. We find that Ld. Commissioner of Income Tax (Appeals) has granted relief to the assessee without elaborately discussing the subject and without referring to the cogent material in this regard. In our considered opinion, interest of justice will be served, if the matter is remitted to the file of the Assessing Officer to consider the issue afresh. Assessee is directed to provide the necessary details to the Assessing Officer in this regard. Accordingly, the issue stands remitted to the file of the Assessing Officer .

Rule 8D applicable from AY 2008-2009, however direct / indirect expenses to earn exempt Income has to be disallowed U/s. 14A

January 1, 2012 1525 Views 0 comment Print

CIT Vs. Galileo India Pvt Ltd (Delhi HC) – Rule 8D has been held to be prospective in nature and applicable from assessment year 2008-09 by this Court in Maxopp Investment Ltd. v. CIT, New Delhi in ITA No.687/2009 dated 18.11.2011. However, in the said decision it has been observed that direct and indirect expenses have to be disallowed under Section 14A, when an assessee earns exempt income.

India to sign DTAA with Macau

January 1, 2012 979 Views 0 comment Print

CBDT Chairman M C Joshi leaves for Macau today to ink a double taxation avoidance agreement , a move to facilitate the exchange of tax-related and banking information between the two and prevent tax evasion. Macau is one of the most well-known offshore financial centres and tax havens worldwide.

ICAI warns against misuse of question papers, suggested answers, revisionary test papers, supplementary study material, result etc pertaining to CA examination

January 1, 2012 3282 Views 0 comment Print

For the sake of information and academic guidance of students, specified material like question papers, suggested answers, revisionary test papers, supplementary study material, result etc pertaining to CA examinations are being published and hosted in the website www.icai.org from time to time, by the Institute of Chartered Accountants of India.

Last date for filing Refund Application in Form 501 and Due date for submission of Monthly Return for the month of November 2011 extended till 7th January 2012

January 1, 2012 16440 Views 8 comments Print

Maharashtra Value Added Tax – Last date for filing Refund Application in Form 501 and Due date for submission of Monthly Return for the month of November 2011 extended till 7th January 2012

Foreign individuals can invest directly in public issues

January 1, 2012 1085 Views 0 comment Print

In a major policy decision, the Central Government has decided to allow Qualified Foreign Investors (QFIs) to directly invest in Indian equity market in order to widen the class of investors, attract more foreign funds, and reduce market volatility and to deepen the Indian capital market. QFIs have been already permitted to have direct access to Indian Mutual Funds schemes pursuant to the Budget announcement 2011-12. Today’s decision is a next logical step in the direction.

SBI Interest Rates on 1st April, 2011- For perquisite valuation

January 1, 2012 11697 Views 0 comment Print

State Bank of India: Interest Rates on 1st April, 2011- For the purpose of computing perquisite valuation Interest rates as on 1st April, 2011 on various loans in Personal Segment advances are as under –

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