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The profit margin from the international transaction with the A.E. has to be seen in relation to the uncontrolled transaction with the independent parties. What is to be compared is the international transactions of the assessee with its related parties and not for its entire transaction with non-related parties also. Therefore, ALP has to be seen only with regard to international transaction with A.Es and not on the entire turnover/sales.
Service Tax dispute: S.S. Construction vs Commissioner of Central Excise. Remanded for reconsideration. Balance-sheet vs ST-3 Returns. Get details on TaxGuru.in.
I am happy to inform you that a long-awaited initiative to curb the misuse of membership numbers of our members in the tax audit reports has finally been taken. The new e-filing system launched by the CBDT (Central Board of Direct Taxes) has opened a window for chartered accountants to register and upload certain specified reports required to be furnished by chartered accountants including tax audit report.
A plain reading of provisions of section 35DDA, it is clear that compliance with the conditions of rule 2BA is mandatory only to avail exemption under section 10(10C) by the employees but said rule is not relevant to deduction under section 35DDA.
For the purpose of Section 40(b)(v) read with Explanation there cannot be separate method of accounting for ascertaining net profit and/or book-profit. In other words, according to the said Explanation ‘book profit’ means the net profit as shown in the profit and loss account including income from other sources not the profit computed under the head profit and gains of business or profession.
Competition can be defined as a process wherein cost efficient production is achieved in a structure having reasonable number of players (producers and consumers) with simple entry and exit procedures and where exists a close substitution between products of different players in a given industry.
As submitted by the learned counsel in respect of FOB exports, the place of removal has to be treated as the Port. Further input service definition is an inclusive definition of services used by the manufacturer directly or indirectly in or in relation to manufacture and clearance and also relating to business activities and specified categories would be admissible.
Working given by the TPO shows that it is earning 7% commission, whereas as per the industry policy as decided by the AAAI the service on media agency earns commission of 2.5%. On that reason also, since it is an extreme case of earning 7% commission (in our view it is wrongly considered), on the principles that the extreme profit companies are to be excluded, this company cannot be considered as comparable for the purpose of arriving at the average mean.
Learned counsel was specifically asked whether he is in a position to produce, or has produced at any stage, evidences for services having been rendered by the persons, who have been paid the commission. While learned Counsel referred to the fact that these incomes are duly disclosed in the hands of the recipient that the same commission was allowed deduction in the other years, he was not in a position to produce any evidence for services rendered, nor such evidence was produced before the authorities below.
The modus operandi of the appellants, which we have briefly stated herein before, is crystal clear. They were not purchasing and selling immovable properties. They were only holding ‘General Power of Attorney’ of the property owners and, in that capacity, selling the property to M/s Sahara India .
