Decision of the Mumbai Bench of the Tribunal in the case of Homi K. Bhabha Vs. ITO was brought to our notice by the learned DR wherein it was held that Portfolio Management Scheme fees is not deductible against capital gains. The decision of the Pune Bench of the Tribunal in the case of KRA Holding & Trading was not followed by the Mumbai Bench in the above cited decision.
Tomorrow to Mark 50 Years of Achievements under the Customs Act 1962 The Union Minister of Communication & Information Technology Shri Kapil Sibal will release tomorrow a commemorative Postage Stamp on Indian Customs to commemorate 50 years of achievements under the Customs Act, 1962. Shri S.S. Palanimanickam, Minister of State for Finance (Revenue and Disinvestment) will be the Guest of Honour and release a Coffee Table Book on Indian Customs on this occasion.
It is very clear that the assessee consciously split up the payments in whole of the year, which is impracticable, illogical as noted above and it was done just to circumvent the provisions of law. There was no justification for the assessee to split up the transactions of crores of rupees in small payments of Rs. 15,000/- to Rs. 20,000/- everyday. Whatever plea was taken before the authorities below was not supported by any evidence.
In order to make the Income Tax Return filing experience even more convenient, the Income Tax Department has started two more taxpayer friendly initiatives ‘Register for Home Visit’ and ‘Online Tax Help’. To avail these facilities, a taxpayer must visit the website www.trpscheme.com and take help of trained professionals either online or at their homes. The taxpayer can choose between ‘online help’ or ‘home visit’.
Taxpayers, who hold foreign bank accounts or properties, will now have to furnish details of their foreign assets which include information like country name, address of the bank, name mentioned in the account and peak balance during the year etc.
Exemptions and beneficial amendments are always prone to litigation – whether it is due to ambiguous language or due to creative interpretational skills of Revenue officers. Whatever be the reason, the departmental authorities are always less interested in extending the benefit of exemptions to the assessees. One such beneficial provision is being inserted in the negative list which exempts the processes that amount to manufacture or production from the levy under service tax. This piece of diction is about probable litigation on this item of negative list.
As per provisions in Taxation of Services (Provided from Outside India and Received in India), Rules 2006 the question whether the service in question is imported is decided with reference to location of the recipient of service for service specified under section 65(105)(r) but is decided with reference to place of performance for service specified at section 65(105)(y). That is to say if the impugned service is classified as Management Consultancy, service tax is payable in the instant case but if it was classifiable as service of Market Research Agency then tax was not payable for the reason that the service is performed entirely outside India.
The decisions of the Tribunal in the case of CCE v. Future Polyesters Ltd. [Final Order No. 782 of 2011, dated 8-7-2011] is clearly to the effect that most of the impugned activities would not fall under the definition of Management Consultancy service. Though compliance with laws is part of the responsibilities of management such responsibility per se cannot bring it into the ambit of the words ‘in connection with the management of any organization’ used in section 65 (105)(r) and section 65(65) to tax such services
It is no longer, res integra that in a contract for providing service of the type involved in this case the service component and value of materials can be separated. Notification 12/2003-ST also recognises this principle. The only dispute that remains is whether value of materials sold “can be segregated based just on the value on which VAT is paid.
As observed by the lower authorities, according to Clause 2(f), the claim has to be filed within 1 year from the date of export of goods. As already observed, this becomes a statutory requirement and a substantive requirement and therefore, the Tribunal, being a creature of law, cannot go beyond the provisions of law and statutes and give relief.
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