"08 July 2015" Archive

Taxation of Inherited or house received as gift

Every person who owns a property is taxed under the head Income from House property on annual basis. The basis of taxation is annual value of the property which in turn is derived from the rent received or reasonable rent for which the property is expected to be let. In respect of the only one self occupied house property, the annual valu...

Posted Under: Income Tax |

Summary of ICAI Proposed New Syllabus

As you are aware, ICAI has recently approved the new syllabi for CA Course, focusing on the industry and practical requirement. The syllabus is likely to be effective from 2016, subject to the Central Government approval. Kindly note, as clarified by the Institute, the existing scheme would not be immediately discontinued post notificatio...

Posted Under: Income Tax |

Manufacture Under Central Excise Act

Supplier of Raw Material is not a manufacturer- A raw material supplier is not a manufacturer since s/he/it does not carry out any manufacturing activities. Where a company outsources a job to a 3rd party (job worker) for converting a raw material into an excisable product, the 3rd party, and not the company, is considered as the manufact...

Posted Under: Income Tax |

Digital India Programme in Modi Style

Prime Minister Narendra Modi opened the digital India week on 1 July . The programme is launced at the Indira Gandhi Indoor Stadium. The function at Indira Gandhi was not less than corporate product launch, It had all the glitz of money, multimedia, videos, tall promises....

Posted Under: Income Tax |

TDS on Work Contract (WCT TDS) – MVAT

A works contract is an agreement which is a mixture of service or labour and transfer of goods. Under a works contract the contractor agrees to do certain job in execution whereof, certain goods are transferred to the contractee. Thus, an agreement of building construction, manufacture, processing, fabrication, erection, installation, re...

Posted Under: Income Tax | ,

Valuation Under Works Contract Service

Primary Condition for classifying the service under works contract is that the contract shall involve transfer of property in goods in executing such contract which should be leviable to tax as sale of goods. The contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, impro...

Posted Under: Income Tax |

CBEC issues guidelines for detailed manual scrutiny of ST-3 Returns w.e.f. August 1, 2015

CBEC vide Circular No. 113/07/2009-ST dated April 23, 2009 had laid down the procedure for carrying out detailed scrutiny of Service Tax Returns (ST-3 Returns) and had circulated a Return Scrutiny Manual for Service tax. ...

Posted Under: Income Tax |

If assessee admits undisclosed income, substantiate manner & paid taxes on undisclosed income no penalty u/s 271AAA can be levied

SPS Steel & Power Ltd. Vs ACIT (ITAT Kolkata)

Both assessee and revenue are in appeal against the action of deletion of penalty u/s 271AAA. CIT (A) has deleted part of penalty levied but another part of the penalty was retained by him. Assessee is in appeal against the retention order and revenue is against the deletion of penalty....

Reopening not permissible beyond 4 years where AO failed to consider material produced before him

CIT Vs Arvind Remedies Ltd. (Madras High Court)

Provision of section 147 states that revenue can reopen an assessment within four years, from the end of the relevant assessment year in which return was filed, if any income escaped from assessment. If revenue wants to reopen an assessment after the expiry of four years prescribed then there must be failure on part of assessee to disclos...

Interest income earned by assessee on money in bank related to business income is allowed u/s 80IA

CIT Vs J. M. Joshi (Bombay High Court)

Whether tribunal was right in allowing appeal of the assessee holding that the interest income earned by the assessee on fixed deposits with the bank and other interest income are eligible for deduction u/s 80IA....

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