"04 March 2013" Archive

Much awaited relief for Mutual Funds with clarification on taxation of Securitisation Trusts

The Financial minister’s proposal to exempt Securitisation Trusts from taxation is likely to revive the interest of Mutual Funds in the Securitisation business, which was on a standstill recently due to the notices thrashed by the income tax authorities seeking to tax the Securitisation Trusts....

Read More
Posted Under: Income Tax |

RGESS –Small change is worth Big Changes

The RGESS that was launched in F.Y.2012-2013 and notified under section 80CCG has started its operations and there are few details related to tax benefits that an Individual will have to consider to grab the full benefit of this scheme. Here are some of them:...

Read More
Posted Under: Income Tax |

Rationalization of Abatement Regarding Construction w.e.f. 1st March, 2013

Homes and flats with a carpet area of 2,000 sq.ft. or more or of a value of Rs. 1 crore or more are high-end constructions where the component of ‘service’ is greater. Hence, I propose to reduce the rate of abatement for this class of buildings from 75 percent to 70 percent. Existing exemptions from service tax for low cost housing ...

Read More
Posted Under: Income Tax |

Taxing technology – a roadblock to development?

An important amendment proposed in the Finance Bill, 2013 (Finance Bill) is the increase in tax rate for royalty and Fees for Technical Services (FTS) payable to non-residents to 25% (against the current tax rate of 10%) as one of the measures for additional resource mobilization. As indicated in the Finance Minister’s speech, the purpo...

Read More
Posted Under: Income Tax |

Service Tax – Sec. 73(2A) – Revenue To Follow ‘Something Is Better Than Nothing’

Section 73 of the Finance Act, 1994 relates to the issue of show cause notice and confirmation of demand. Under existing provisions where the appellate authority finds that the demand is confirmable on merits, however, extended period is not invokable, then the entire demand raised in the show cause notice is quashed. ...

Read More
Posted Under: Income Tax |

Service Tax on parking – Positive or Negative

Even if you are taking an accident victim to hospital, you will have to pay service tax before getting him admitted to hospital. This statement has come true by virtue of the budget, 2013 as announced by hon’ble finance minister on 28.02.2013. ...

Read More
Posted Under: Income Tax |

Service tax on Transportation of Food Stuff – Critical reasoning of Notification no. 03/2013 ST dated 01.03.2013

In previous budget, service tax law was shifted to negative list regime. Mega exemption notification no. 25/2012 ST dated 20.6.2012 was issued to prescribe the list of exempted services. In the current year budget, nominal changes have been done in this list. One such change has been done in the serial no. 21 of this notification which ex...

Read More
Posted Under: Income Tax |

Service Tax on Restaurant: A Small Amendment Makes a Broader Scope of Service Tax

Under negative list regime, the service tax was introduced on restaurants, eating joints and mess which have licence to serve the liquor and facility of central heating or Air conditioning at any time during the previous year. However, this budget has removed the condition regarding the licence to serve the liquor....

Read More
Posted Under: Income Tax |

Excise – Sub-Section 7A to Section 11A – Loopholes Inbuilt

Section 11A of the Central Excise Act, 1944 prescribes the issuance of show cause notice and other related provisions. In this section, sub-section 7A is inserted by Budget, 2013 to cover the cases of recurring nature where the show cause notices are issued on the exactly same grounds and allegations from time to time to the same assessee...

Read More
Posted Under: Income Tax |

Income-tax on buyback of shares by unlisted companies

Under the existing provisions of the income-tax law, transfer of shares in an Indian company by a shareholder (which includes buy-back of shares under section 77A of the Companies Act, 1956) is subject to tax under the head capital gains. ...

Read More
Posted Under: Income Tax |