In terms of section 9(1)(ii) income chargeable under the head “salaries” under section 15 shall be deemed to accrue or arise in India if it is earned in India, i.e., if the services under the agreement of employment are or were rendered in India. In the instant case, the employment services were entirely rendered outside India. Hence, the salary is not earned for rendering services in India. Therefore, salary for the entire year is not taxable.
From the above circular, it would be clear that the amendment bringing self generated intangible assets such as trademark to capital gains tax only with effect from Assessments Year 2002-03 onwards. In this case, we are concerned with Assessment Year 1999-2000 and therefore, the amendment would not have any effect.
If cost of asset not doubted in earlier years, it can’t be held as sham if sold to parent co. at nil profit Transfer of shares held as investments by subsidiary to overseas parent co. at cost of acquisition is not a sham nor colourable device
The assessee has been rendering income from the business and the failure on the part of the taxing authorities to have discovered undisclosed income on the basis of search carried out cannot be finalized for the purpose of satisfying the search operation by estimating a meager higher amount as rate of return of NP which NP rate is variable on the basis of claim of expenditure allowable u/ss.30 to 37 of the I.T. Act.
In the case of Idea Mobile Communication Ltd. v. CCE&C [2011] 32 STT 262/12 taxmann.com 307 (SC), the Apex Court has confirmed the view taken by the High Court wherein it was held that a transaction of selling of SIM card to the subscriber is also a part of the ‘service’ rendered by the service provider to the subscriber. The contention of the assessee that the amount paid as sales tax be considered as sufficient compliance of section 35F of the Central Excise Act, read with section 83 of the Finance Act could not be accepted. As the Tribunal has no power to adjust such payments as the same is created under the special Act, i.e., Customs Act, Finance Act and Central Excise Act. Therefore, the Tribunal has no power to adjust the payment of sales tax against service tax. As discussed above, the assessee had failed to make out a case for 100 per cent waiver of pre-deposit.
We find that when a person was allowed to act as sub broker, he was initially allowed to issue even a contract note to his clients. Moreover, such sub broker could receive payments from clients and make payments to clients from his accounts. This position was changed vide Circular No. 9 (SEBI/MRD/MIRSD/DPS-1/CIR-31/2004) dated 26th August, 2004 as noted by the AO. But by this change assessee could still act as a remisier and the only restriction is that now he cannot issue the contract note for any transaction which has to be issued by the main broker. Even the payments were to be received and made by the main broker. However, assessee still remained entitled to his commission which was to be shared by the main broker with such remisier. Therefore, the assessee even after the change of regulation could have still acted and could have shared the commission with the main broker i.e. Sharekhan or he could have changed his broker or even he could have himself become a member of the stock exchange because he had a large client basis. Simply because assessee preferred to sell his business along with tangible assets would not mean that the agreement would become that of an agency. It still remained an agreement between a principal to principal. Therefore, in our opinion, it is a clear case of sale of assets and the Ld. CIT(A) has correctly decided the issue and accordingly we confirm his order.
Once the payment of service tax had been made by service provider to Treasury, assessee may not be denied the benefit of Cenvat credit, subject to appropriate examination of the allegation in the show-cause notice and proving use of the service in accordance with law. The original authority had to be satisfied that requirement of rule 9(5) of the Cenvat Credit Rules was fulfilled and service-tax paid was relating to input service that was ultimately used in manufacture of excisable goods. If he was satisfied that there was nexus, dependability, integrity, indispensability and inevitability, there may not be a difficulty to consider the claim of the assessee.
The Ministry has constituted an Expert Group to study the legislative and regulatory architecture of The Societies Registration Act, 1860 governing the functioning of societies in India and also to study the ground situation with respect to the operation of the said Act so as to identify the regulatory gaps and oversight mechanism with a view to formulate a Model Law on the subject. The Expert Group has submitted its report to the Ministry on 5.07.2012 proposing a legislation titled as ‘Multi-state Societies Registration Bill, 2012’. The Report and the proposed Bill has been uploaded for ready access at the website of the Ministry of Corporate Affairs viz. www.mca.gov.in.
The objective of the Guidance Note issued by ICAI is to provide guidance to the practitioners in certification of XBRL formatted statements in terms of the requirements of the Ministry’s General Circular No. 57/ 2011 dated July 28, 2011 read with MCA’s General Circular No. 43/2011 dated July 07, 2011. These Circulars require that besides signing by signatories as specified under section 215 of the Companies Act, 1956, the financial statements prepared in XBRL mode for filing on MCA-21 portal would also need to be certified by, inter alia, a Chartered Accountant. The financial statements referred here would mean the balance sheet, the profit and loss account, the cash flow statements and the related notes to account.
In very broad terms, audit risk is the risk of a material misstatement of a financial statement item that is or should be included in the audited financial statements of an entity. In this regard, a financial statement item includes any related notes to the financial statements.
