"17 March 2012" Archive - Page 2

Budget 2012 – New Paradigm in Service Tax

In 2012 budget, there has been a paradigm shift in the Service Tax Laws. The shift is affecting all businesses- whether they are in manufacturing, service providing, NGOs, Trading or even Government departments. Even individuals are not immune from payment of service tax if their revenue is above the exemption limit- i.e. 10 lakhs. Thus i...

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Posted Under: Service Tax |

For Determination of Arm’s Length Price 5% tolerance band not standard deduction

Section 92C of the Act provides for computation of arms lengths price. Sub-section (1) of this section provides the set of methods for determination of arms length price and mandates application of the most appropriate method for determination of arms length price (ALP). Sub-Section (2) of section 92C provides that where more than one pri...

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Posted Under: Service Tax |

Transfer Pricing Regulations made applicable to domestic transactions if value exceeds Rs. 5 Cr.

It is, therefore, proposed to amend the Act to provide applicability of transfer pricing regulations (including procedural and penalty provisions) to transactions between related resident parties for the purposes of computation of income, disallowance of expenses etc. as required under provisions of sections 40A, 80-IA, 10AA, 80A, section...

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Posted Under: Service Tax |

Examination by Transfer Pricing Officer of international transactions not reported by Assessee

It is proposed to amend the section 92CA of the Act retrospectively to empower Transfer Pricing Officer (TPO) to determine Arm’s Length Price of an international transaction noticed by him in the course of proceedings before him, even if the said transaction was not referred to him by the Assessing Officer, provided that such internatio...

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Posted Under: Service Tax |

Extension of time limit for completion of assessment or reassessment where information sought under DTAA

During the course of assessment proceedings, in the case of an assessee having income or assets outside India, information is being sought from the tax authorities situated outside India, while completing an assessment. Under the provisions of section 90 or section 90A of the Income-tax Act, information can be exchanged with the foreign t...

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Posted Under: Service Tax |

Tax Residence Certificate must for claiming relief under DTAA and for issue of Form 15CB

Section 90 of the Income Tax Act empowers the Central Government to enter into an agreement with the Government of any foreign country or specified territory outside India for the purpose of –(i) granting relief in respect of avoidance of double taxation, (ii) exchange of information and (iii) recovery of taxes. ...

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Posted Under: Service Tax |

Meaning assigned to a term used in Double Taxation Avoidance Agreement (DTAA)

Section 90 of the Act, empowers the Central Government to enter into an agreement with foreign countries or specified territories for the purpose of granting reliefs particularly in respect of double taxation. Under this power, the Central Government has entered into various treaties commonly known as Double Taxation Avoidance Agreements ...

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Posted Under: Service Tax |

Tax & Witholding Rate increased to 20% for non-resident entertainer, sports person etc.

Section 115BBA of the Income Tax Act provides a concessionary tax regime in the case of income of sports persons who are non-citizen and non-resident. The provision covers income received by way of participation in any game or sport, advertising or contribution of article in any newspaper etc. The income of such sportsmen is taxed at the ...

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Posted Under: Service Tax |

Budget 2012 – Customs, Central Excise & Service Tax Notifications

NA (17/03/2012)

We have uploaded below all the notifications, Circulars issued by CBEC Post Budget 2012-13 related to amendment in Central Excise Duty (Tariff and Non Tariff), Custom Duty (Tariff and Non Tariff), Service Tax, Clean Energy Cess, Medicinal and Toilet Preparations....

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Job Work, Advocate, Man power Supply, Transport etc. Service Receiver made liable to pay service tax

Notification No. 15/2012-Service Tax (17/03/2012)

Service Tax The taxable services,— (A) (i) provided or agreed to be provided by an insurance agent to any person carrying on the insurance business; (ii) provided or agreed to be provided by a goods transport agency in respect of transportation of goods by road, where the consignor or the consignee is,— (a) any factory registered unde...

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