"01 May 2013" Archive

Input service distributer may distribute credit of service tax paid prior to registration as ISD

Dagger Forst Tools Ltd. Vs Commissioner of Central Excise, Mumbai-I (CESTAT Mumbai)

Input service distribution is a facility granted to a manufacturer/service provider who operates from a number of premises. There is no restriction under the CENVAT Credit Rules, 2004, with regard to the period for availing CENVAT credit of service tax paid. In other words, a manufacturer/input service provider can avail CENVAT credit of ...

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Mere facilitation services with regard to the selection of awardees isn’t a technical service

Harvard Medical International Inc. Vs. Dy. Commissioner Income Tax (ITAT Mumbai)

From a plain reading of the above clauses, it is seen that the Assessee is not doing any service which falls within the definition of "FIS" as contemplated in Para-4 of Article-12. We agree with the findings of the learned Commissioner (Appeals) that these are merely facilitation services with regard to the selection of awareness for Wock...

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In case of divisible contract no service tax on material value

R.K. Industries Vs Commissioner of Central Excise (CESTAT Delhi)

It was opined in those orders that insofar as supplies of material are concerned, such materials shall not be liable to service tax because Finance Act, 1994 is not a Commodity Taxation Law. Contract covering taxable service have been directed to be taxed. ...

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SEARCH REPORT -A Basic Tool for Inspection of Company’s Records in Hands of Stakeholders Specially Banks

Now a day, Banks are more emphasizing on demanding Search Repots from Limited Companies while opening of Bank Accounts or giving the Loan to such Companies. The need for Search Reports arises to keep themselves (Banks) safe and to ensure that the company is not the defaulting one or having not the defaulting directors and to know the comp...

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Posted Under: Service Tax |

Amendment to Sec. 206-C dealing with TCS on Sale of Bullion or Jewellery in Cash – Clarification

Currently, sale in cash of bullion (excluding coin or any other article weighing 10 grams or less) in excess of Rs 2 lakh or jewellery in excess of Rs.5 lakh is subject to Tax Collection at Source (TCS) @ 1%. As coins were neither included in bullion nor in jewellery, therefore, coins, even when amounting to more than Rs. 2 lakh in value,...

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Posted Under: Service Tax |

Whether the amount of liabilities taken over in case of slump purchase are to be considered for reaching at the amount of assets taken over for the value of purchase consideration ?

Commissioner of Income Tax Vs Aradhana Drinks & Beverages Pvt. Ltd. (Delhi High Court)

The Seller shall transfer to the Buyer all the rights, interest and benefits that the Seller has in the Leased Assets at closing to and in favour of the Buyer on the same terms and conditions as enjoyed by the Seller in respect of such Leased Assets and shall be responsible to get all requisite paper work/ documentation executed by the co...

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Whether assessee consequent upon a scheme of demerger eligible for writing of bad debts related to earlier years before the take over from holding company?

Commissioner of Income Tax- VI Vs Times Business Solution Ltd. (Delhi High Court)

The assessee company consequent upon a scheme of demerger as per the provisions of The Companies Act took over entire business (web portal) owned by the holding company. The assessee has written off the bad debts related to the previous years before the takeover of the business from the holding company....

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Balance needs to be maintained between the principle of consistency and the rule of res judicata

M/s.Onward Technologies Limited Vs. The Dy.Commissioner of Income-tax (OSD) Range 8(1), Mumbai. (ITAT Mumbai)

The contention of the assessee that the authorities cannot go beyond the overall profit of the group of AEs in determining the ALP of the international transaction is also not acceptable because it will constitute a new method/ yardstick for determining the ALP. The transfer pricing adjustments made in India may result in the overall prof...

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Reopening not valid if reasons silent on quantum of escaped tax

Mahesh Kumar Gupta Vs Commissioner Of Income Tax & Another (Allahabad High Court)

For the reasons given above, we find sufficient force in the argument of the learned counsel for the petitioner that on the basis of the reasons recorded by the Assessing Officer, the initiation of the reassessment proceedings relevant to the Assessment Year 2000-2001 by means of the notice dated 23.3.2007 after more than four years is cl...

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Payment made for violation of byelaws of stock exchange is allowable expense

HSBC Securities & Capital Markets (India) Pvt. Ltd Vs. ACIT (ITAT Mumbai)

Ground No.2 is on the issue of penalty levied by the Stock Exchange. The claim is an amount of Rs. 1,15,663/- on account of payment made to the stock exchange for violation of byelaws of the Stock Exchange. Assessee submitted that the Stock Exchanges are not statutory authorities and therefore, violation of their byelaws could not be cons...

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