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Archive: 08 November 2012

Posts in 08 November 2012

Prior to 18-4-2006 service tax can be paid out of Cenvat credit on GTA services

November 8, 2012 687 Views 0 comment Print

Perusal of para 2.4.2 of CBEC’s Excise Manual of Supplementary Instructions shows that there is no legal bar to the utilisation of Cenvat credit for the purpose of payment of service tax on the GTA services. Apart from the above, even as per Rule 3(4)(e) of the Cenvat Credit Rules, 2004, the Cenvat credit may be utilized for payment of service tax on any output service.

Get your Post dated cheques (Dated After 31.12.2012) replaced

November 8, 2012 1866 Views 0 comment Print

The Reserve Bank today asked non- banking financial companies (NBFCs) to replace post-dated cheques issued to them by customers with new standardised cheques with improved security features.

Extraordinary profits cannot lead to conclusion that there is an arrangement between parties

November 8, 2012 1237 Views 0 comment Print

Tribunal has considered the entire evidence and on facts come to the conclusion that the profits earned by Kandla division of the respondent-assessee is not abnormally high due to any arrangement between the respondent-assessee and its German Principal. The Tribunal correctly held that extraordinary profits cannot lead to the conclusion that this is an arrangement between the parties.

Appeal disposed of on merits but without a speaking order, cannot be sustained

November 8, 2012 1676 Views 0 comment Print

After going through the order of CIT(A), We find that CIT(A) has passed a non-speaking order by following the decision of ITAT in the case of Multiplan India (Pvt.) Ltd. (supra). We are of the view that where appeal has been disposed of even though on merits without a speaking order, the order of CIT(A) cannot be sustained.

No Exemption u/s.10(23C) to educational institute if It earns huge profits

November 8, 2012 5735 Views 0 comment Print

The language used in section 10(23C)(iiiad)speaks about existence of solely for educational purposes and not for the purposes of profit if the annual receipts do not exceed the prescribed limit. However, if the aforesaid chart/income is analysed, we find that a huge abnormal profit has been created/earned by the assessee and the amounts are definitely beyond the prescribed limit.

‘In personam’ rights such as non-compete fees cannot be treated as depreciable intangible assets

November 8, 2012 1062 Views 0 comment Print

However, in the case of a non-competition agreement or covenant, the advantage is a restricted one, in point of time. It does not necessarily – and not in the facts of this case, confer any exclusive right to carry-on the primary business activity.

Quoting of wrong registration number on Service Tax Payment Challan is a rectifiable technical error

November 8, 2012 2879 Views 0 comment Print

Inasmuch as the department has received the amount due from the appellant quoting of wrong registration number in the concerned challans is only a technical error which can be rectified at the department’s end itself.

Reimbursement of expense cannot be treated as loan or deposit to attract Section 269SS or 269T

November 8, 2012 4713 Views 0 comment Print

In the present case, both, the Commissioner (Appeals) as well as the Tribunal have found that the transactions in question are neither in the nature of loans or deposits. Under the circumstances, the provisions of sections 269SS and 269T of the Act would not be applicable. Consequently, the question of contravention of such provisions attracting penalty under sections 271D and 271E of the Act would also not arise. Under the circumstances, no infirmity can be found in the impugned order of the Tribunal so as to give rise to a question of law, much less, a substantial question of law so as to warrant interference.

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