"December, 2015" Archive

Reimbursement of salary cost of high level managerial personal can be treated as FTS

M/s Food world Supermarkets Ltd. Vs Deputy Director of Income Tax (ITAT Bangalore)

Food world Supermarkets Ltd. vs.DCIT- ITAT Bangalore observed that the 5 seconded employees were not ordinary employees or workers but they were deputed at the high level managerial/executive positions which showed that they were deputed because of expertise and managerial skills in the field. ...

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Delegating of powers to RDs U/s. 208 of Companies Act, 2013

Notiofication No. S.O. (E) (31/12/2015)

n exercise of the powers conferred by section 458 of the Companies Act, 2013 (18 of 2013) the Central Government hereby delegates to the Regional Directors at Mumbai, Kolkata, Chennai, Delhi, Ahmedabad, Hyderabad and Shillong, the power vested in it under section 208 of the said Act for receiving the report from the Registrar (having juri...

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Delhi VAT- DP-1 to be submitted online by all dealers latest by 31/01/2016

No.F.3(352)Policy/VAT/2013/1210-21 (31/12/2015)

In partial modification of Notification No.F.3(352)Policy/VAT/2013/1062-73 dated 23/11/2015 regarding submission of information online in Form DP-1, I, Sanjeev Khirwar, Commissioner, Value Added Tax, Government of National Capital Territory of Delhi, in exercise of the powers conferred on me by sub-section(1) read with sub­section (2) an...

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Printing of Newspaper amounts to production & manufacture

M/s. Rajasthan Patrikia Pvt. Ltd. Vs ACIT (ITAT Jaipur)

Rajasthan Patrikia Pvt. Ltd. vs. ACIT- ITAT Jaipur held that newspapers and periodicals are distinct commodity than the paper, printing ink and other ingredients used therein. Since a new commercial product comes into existence...

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Notification No. 27/2015-Central Excise (N.T.) Dated- 31st December, 2015

Notification No. 27/2015-Central Excise (N.T.) [G.S.R. 1028(E)] (31/12/2015)

Notification No. 27/2015-Central Excise (N.T.) In the CENVAT Credit Rules, 2004, in rule 9, in sub-rule (1), in clause (d), after the words “ Foreign Post Office, the words or, as the case may be, an Authorized Courier, registered with the Principal Commissioner of Customs or the Commissioner of Customs in-charge of the customs airport, ...

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Surveillance on determination of Place of Effective Management

It is imperative to understand the sense behind introducing the concept of Place of Effective Management (hereinafter refereed as POEM first, before embarking determination aspect of Place of Effective Management. POEM is not a new concept at all; it is an internationally recognised test for determination of residence of a company incorpo...

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Posted Under: Income Tax |

CBDT December excellent moves shall have a morale boosting effect on Tax Practice

In the month of December, CBDT has shown some excellent moves towards a flow less tax assessment regime. The moves are encouraging and laudable. It clearly establishes that CBDT has finally decided to take on the obstacles in the field of assessment proceedings. This is also adorable at the part of the Finance Ministry to roll down the an...

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Posted Under: Income Tax |

Notification No. 150/2015-Customs (N.T.) Dated- 31st December, 2015

Notification No. 150/2015-Customs (N.T.) (31/12/2015)

Notification No. 150/2015-CUSTOMS (N. T.) Gold, in any form, in respect of which the benefit of entries at serial number 321 and 323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed- 345 per 10 grams...

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SEBI issues list of 221 Companies issuing Shares/ Debentures in Violation of Law

PR No. 298/2015 (31/12/2015)

Some unlisted companies are luring retail investors by issuing securities including non-convertible and convertible debentures/ non-convertible and convertible preference shares/ equity shares in the garb of private placement, without complying with the provisions of Companies Act, 1956 read with the Companies Act, 2013, SEBI (Issu...

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Addition made on account of third party evidence without establishing identity of Assessee not valid

Prabhat Chandra S Jain Vs ACIT (ITAT Pune)

In case of Prabhat Chandra S Jain Vs. ACIT Pune bench of ITAT have held that where it is not established that name PC Jain of Mumbai written in the said document was in fact the assessee before us and in the absence of any evidence having been found to establish that the assessee...

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Capital gain arises/accrued outside India can’t be clubbed in hands of NRI assessee

Shri Rajendra Pathak Vs ACIT (Int. Tax) (ITAT Jaipur)

In case of Shri Rajendra Pathak Vs. ACIT Jaipur Bench of ITAT have held that sale proceeds cannot be clubbed in the hands of the assessee as capital asset/capital gain arises/accrued outside India. Assessee got shares on the basis of work performance by his employe in London....

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ITAT remitted the matter to AO where no verification of documents filed under rule 46A was sought

ITO Vs Smt. Manjusha (ITAT Delhi)

The return of income was filed on 31.10.2005 at an income of Rs. 4,04,020/- for AY 2005-06. During the course of assessment proceedings, the AO took note of the fact that the assessee and his wife purchased property at front and rear side of portion at ground floor for a consideration of 40 Lakh each and 3,20,000 was paid as stamp duty o...

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In case of share capital identity, genuineness and creditworthiness of the cash creditor is to be proved by assessee

DCIT Vs M/s. Soni Hospital Pvt. Ltd. (ITAT Jaipur)

In the case of DCIT Vs. M/s. Soni Hospital Pvt. Ltd. Jaipur bench of ITAT have held that that in case of share capital, the creditworthiness along with genuineness of transaction, identity of person is also required to be proved by the assessee....

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Consultation paper for guidelines for public issue of units of Real Estate Investment Trusts

NA (31/12/2015)

SEBI REIT Regulations were notified on 26th September, 2014, thereby providing a regulatory framework for registration and regulation of REITs in India. The Regulations, inter alia, provide that ‘The Board may specify by issue of guidelines or circulars, any other requirements, as it deems fit, pertaining to issue and allotment of units...

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DRP cannot absolve from its duty without going into merits of contention of assessee while deciding comparability

M/s. Equant Solutions India Pvt. Ltd. Vs ACIT (ITAT Delhi)

In the case of M/s. Equant Solutions India Pvt. Ltd. Vs. ACIT Delhi Bench of ITAT remanded back the matter and held that DRP has not met the contention of the assessee in respect of inclusion/exclusion of comparable in its order....

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Receipts having no nexus with educational activities, not to be considered in Annual credit receipts u/s 10(23C)(iiiad)

ACIT Vs M/s Public Rose Shiksha Samiti (ITAT Jaipur)

ITAT Jaipur held In the case of ACIT vs. M/s Public Rose Shiksha Samiti that on verification of the total receipt mentioned by the Assessing Officer , there was a transaction of sale of land for Rs. 47,90,000/-. The Hon’ble Madras High Court has considered the issue of annual receipts...

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Onus to prove that debts are irrecoverable gets satisfied, once bad debts w/off in books of accounts

M/s Indu Nissan Oxo Chemical Inds. Ltd. Vs DCIT (ITAT Ahmedabad)

ITAT Ahmedabad held In the case of M/s Indu Nissan Oxo Chemical Inds. Ltd. vs. DCIT that the Hon’ble Apex Court in the case of TRF Ltd. vs. CIT reported at (2010) 323 ITR 397(SC) has held that this position in law is well-settled. After 1st April, 1989...

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Disallowance of expenses on adhoc basis without finding any personal use by chairman of trust, not sustainable

DCIT Vs M/s Indo Soviet Friendship (ITAT Chandigarh)

ITAT Chandigarh held In the case of DCIT vs. M/s Indo Soviet Friendship that the Assessing Officer has not brought any material on record as to how he has given his finding that the cars have been purchased for the benefit of the Chairman....

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Interest on delayed payment in connection of acquisition of property is allowed u/s 24 (b)

Wel Intertrade Pvt. Ltd. Vs ITO (ITAT Delhi)

ITAT Delhi held In the case of Wel Intertrade Pvt. Ltd. vs. ITO that there is no dispute that for purchasing the property at Munirka for a consideration of Rs.9,37,33,600, the assessee had taken loan from HDFC Bank for Rs.6.50 crores on which the authorities below have allowed the interest paid by the assessee....

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TP: Companies in production & sale of software products cannot be compared with those in development of software on contract basis

Avaya India (P) Ltd. Vs ACIT (ITAT Delhi)

ITAT Delhi held In the case of Avaya India (P) Ltd. vs ACIT that a perusal of the annual report of company reveals that the said company has made income from sale of license to the tune of more than Rs.1 crore,...

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Mere Collaboration agreement with Builder & subsequent receipt of Property and Sale cannot be termed as business

Shanti Banerjee (deceased) by LRs. Vs DCIT (Delhi High Court)

The facts of the case are that the Assessee, (who died during the pendency of this appeal and is substituted by her legal representatives) was a housewife, having no source of income other than the pension of her deceased husband. The Assessee was the owner of property No. F-23, Hauz Khas, New Delhi wherein she was residing since 1956....

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Assessee need not prove genuineness and credit worthiness of sub-creditor

CIT Vs Shiv Dhooti Pearls & Investment Ltd. (Delhi High Court)

CIT Vs. Shiv Dhooti Pearls & Investment Ltd. (Delhi High Court) Assessee has indeed discharged its onus of proving the creditworthiness and genuineness of the lender (TIL). There was no requirement in law for the Assessee to prove the genuineness and credit worthiness of the sub- creditor, which is in this case was TCL....

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Income Tax Prosecution can be launched if Assessee aged below 70 years at the time of commission of offence

Pradip Burman Vs Income Tax Office (Delhi High Court)

While hearing an appeal filed by Dabur India Ltd Promoter Pradip Burman in Black Money case related to undisclosed Bank Account maintained Outside India, Delhi High Court held that prosecution can be launched against him as at the time of commission of alleged offence...

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Compensation for loss of income-generating asset is not revenue in nature

CIT Vs Sharda Sinha (Delhi High Court)

CIT Vs. Sharda Sinha (Delhi High Court) The Court concurs with the conclusion of the CIT (A) that the sum paid to the Assessee was to compensate for the abrupt loss of source of income and that the termination of contract had fatally injured the appellant's only source of income for the last 20 years. ...

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Reassessment for taxing Royalty at higher rate due to change in opinion not valid

Discovery Asia Inc. Vs Assistant Director Of Income Tax (Delhi High Court)

The assessment under Section 143(3) was originally done on 19.12.2008. The notice under Section 148, which is impugned herein, has been issued beyond the period of four years from the end of the relevant assessment year. ...

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Arbitration and Conciliation (Amendment) Act, 2015

NO. 3 OF 2016 (31/12/2015)

in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been...

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Reg. Penalty in cases where despite addition tax payable under MAT Provisions is higher than under Normal Provisions

Circular No. 25/2015 - Income Tax (31/12/2015)

CIRCULAR NO. 25/2015 Penalty u/s 271(1)(c) wherein additions/disallowances made under normal provisions of the Income Tax Act, 1961 but tax levied under MAT provisions u/s 115JB/115JC, for cases prior to A.Y. 2016-17-reg.- Section 115JB of the Act is a special provision for levy of Minimum Alternate Tax on Companies, inserted by Finance A...

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Recording of satisfaction note U/s. 158BD/153C of the Act- reg.

Circular No. 24/2015 - Income Tax (31/12/2015)

CIRCULAR NO. 24/2015 Several High Courts have held that the provisions of section 153C of the Act are substantially similar/pari-materia to the provisions of section 158BD of the Act and therefore, the above guidelines of the Hon'ble SC, apply to proceedings u/s 153C of the IT Act, for the purposes of assessment of income of other than th...

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Restructuring of Maharashtra Sales Tax Department

Trade Circular No. 20 T of 2015 (31/12/2015)

The department had adopted functional organization structure as required for VAT administration. The functional organization led to creation of various flinctional divisions to look after a particular functional aspect in respect of a dealer. In view of the same various compliance related issues of dealers Were handled by different functi...

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Roadmap for opening brick and mortar branches in villages with population more than 5000 without a bank branch of a scheduled commercial bank

RBI/2015-16/277 FIDD.CO.LBS.BC.No. 82 /02.01.001/2015-16 (31/12/2015)

You are aware that SLBC Convenor banks were advised vide circular RPCD.CO.LBS.BC. No. 86/02.01.001/2011-12 dated June 19, 2012 to prepare a roadmap to provide banking services in all unbanked villages with population less than 2000 through a combination of business correspondents (BCs) and branches. Banks were also advised to ensure that ...

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New Numbering Format for Patent Applications & Examination Request wef 01.01.2016

OFFICE ORDER NO. 74 OF 2015 (31/12/2015)

The new numbering system for patent applications shall have 12 characters fixed length numeric standard Patent Application Format , applicable to all the Patent Offices in India and shall include identifiers of Year of filing, Jurisdiction, type of application and application number as per Annexure-1...

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Extension of Credit Facilities to Overseas Step-down Subsidiaries of Indian Corporates

RBI/2015-16/279 DBR.IBD.BC.No.68/23.37.001/2015-16 (31/12/2015)

(i) Banks may extend funded and/or non-funded credit facilities to the step-down subsidiaries of Indian companies including to those beyond the first level, to finance the projects undertaken abroad. (ii) The immediate overseas subsidiary of the Indian company must be directly controlled by the Indian parent company through any of the mod...

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Discontinuation of the requirement for Paper to Follow (P2F) for Central Government cheques under Cheque Truncation System

RBI/2015-16/278 DGBA.GAD.No. 2036/42.01.035/2015-16 (31/12/2015)

With a view to enhancing efficiency in cheque clearing, Reserve Bank has introduced Cheque Truncation System (CTS) for clearance of cheques, facilitating the presentation and payment of cheques without their physical movement. Taking this initiative forward, it has now been decided in consultation with the Office of the Controller General...

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Investment by Gold ETFs in Gold Monetisation Scheme of Banks

Circular No. CIR/IMD/DF/11/2015 (31/12/2015)

As per RBI notification dated October 22, 2015, the Gold Monetisation Scheme, 2015 (GMS) will replace the Gold Deposit Scheme, 1999 (GDS). However, the deposits outstanding under the GDS will be allowed to run till maturity unless these are withdrawn by the depositors prematurely....

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Procedure to deal with cases prior to April 01, 2014 involving offer/ allotment of securities to more than 49 up to 200 investors in a financial year

Circular No. CIR/CFD/DIL3/18/2015 (31/12/2015)

Prior to April 01, 2014, offers of securities - shares and debentures - by companies to more than 49 persons were deemed to be public offers. SEBI has initiated penal action on receipt of specific complaints against the companies offering such securities without complying with the relevant provisions of the Companies Act, 1956 and applica...

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Notification No.61/2015-Customs Dated- 30th December, 2015

Notification No.61/2015-Customs (30/12/2015)

Notification No.61/2015-Customs Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No.12/2012-Customs, dated the 17th March, 2012, published in the Gazette...

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Notification No. 60/2015-Customs dated 30th December, 2015

Notification No. 60/2015-Customs (30/12/2015)

Notification No. 60/2015 - Customs Seeks to amend notification No. 152/2009-Customs dated 31.12.2009 so as to provide deeper tariff concessions in respect of specified goods imported from Korea RP under the India-Korea Comprehensive Economic Partnership Agreement (CEPA) w.e.f. 01.01.2016....

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Notification No. 59/2015- Customs dated 30th December, 2015

Notification No. 59/2015-customs (30/12/2015)

Notification No. 59/2015 - CustomsSeeks to amend notification No. 53/2011-Customs dated 01st July, 2011 so as to provide deeper tariff concessions in respect of specified goods imported from Malaysia under the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA) w.e.f. 01.01.2016....

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Notification No. 58/2015-Customs dated 30th December, 2015

Notification No. 58/2015 - Customs (30/12/2015)

Notification No. 58/2015 - Customs Seeks to further amend notification No. 46/2011-Customs dated 01.06.2011 so as to provide deeper tariff concessions in respect of specified goods when imported from ASEAN countries under the India-ASEAN Free Trade Agreement w.e.f. 01.01.2016...

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Electronic filing of first appeal before CIT(Appeals) Mandatory: CBDT

It is the endeavour of the Income tax Department to digitise various functions of the Department for providing efficient taxpayer services. As another significant step in this direction, electronic filing of appeal before CIT(Appeals) is being made mandatory for persons who are required to file the return of income electronically....

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Posted Under: Income Tax | ,

GST- Proposed Input tax credit methodology

Goods & Service tax (GST), the mile stone tax reform since independence of India is on its way to implementation journey and proposed GST bill is under discussion everywhere. This is very crucial stage to understand the various methodologies proposed in the GST bill....

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Posted Under: Income Tax |

Applicability Of Indian Accounting Standards

1. Any company may comply with the Indian Accounting Standards (hereinafter referred to as the IndAS) for financial statements for accounting periods beginning on or after 1stApril, 2015, with the comparatives for the periods ending on 31st March, 2015, or thereafter...

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Posted Under: Income Tax |

CBI Register disproportionate assets case against Director (Investigation), Settlement Commission, Chennai

The Central Bureau of Investigation has registered a case u/s.109 of IPC r/w 13 (2) r/w 13 (1)(e) of PC Act 1988 against then Commissioner of Income Tax (IRS – 88 Batch), presently posted as Director (Investigation), Settlement Commission, Chennai and 8 others including his family members & certain benami property holders, on the alleg...

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Posted Under: Income Tax |

Bankruptcy Bill 2015 to bring unified Insolvency & Bankruptcy Code

The Government, on Monday, December 21, 2015, introduced the Insolvency and Bankruptcy Bill, 2015 (the Bankruptcy Bill), proposing to enact a single bankruptcy code setting deadlines for processing insolvency cases. Once enacted, not only will it improve the ease of doing business in India, it will also ensure better debt recovery for cre...

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Posted Under: Income Tax |

Exemption u/s 10A available on undisclosed income surrendered during survey proceeding u/s 133A

M/s Bridal Jewellery Mfg. Co. Vs ITO (ITAT Delhi)

M/s Bridal Jewellery Mfg. Co.Vs. ITO (ITAT Delhi) In the present case, it is an admitted fact that the assessee was engaged in the manufacturing of jewellery, during the process of manufacturing on behalf of the customers...

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Extension of Due Date for Filing Annual Returns to 30.01.2016 for Tamil Nadu and Puducherry

General Circular No. 16/2015 (30/12/2015)

Relaxation of additional fees and extension of last date of in filing of forms MGT-7 (Annual Return) and AOC-4 (Financial Statement) under the Companies Act, 2013- State of Tamil Nadu and UT of Puducherry - reg....

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Only Investments in respect of which income is exempt to be considered in working of disallowance U/s. 14A

Sesa Resources Ltd. Vs ACIT (ITAT Panaji)

The ITAT bench of Panaji in the case of Sesa Resources Limited held that the disallowance under Sec 14A read with rule 8D can be made only in respect of investments which are earning income exempt from tax and not the total investments....

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No Penalty if assessee's activity is held to be not liable to Service tax

Jubilant Agri & Consumer Products Ltd. Vs Customs, Excise & Service Tax Appellate Tribunal (Allahabad High Court)

Penalty is levied only when any Service tax has not been paid by reason of fraud, etc., hence, when assessee's activity is held to be not liable to Service tax, question of imposition of penalty cannot arise- Jubilant Agri & Consumer Products Ltd. Vs. Customs, Excise & Service Tax Appellate Tribunal [2015 (64) taxmann.com 35 (Allahabad)]...

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Posted Under: Income Tax |

Lawmakers Let Another Gst Opportunity Go Abegging With Washout Of Winter Session

GST has been missing several deadlines in the past. Perhaps, the only major reform both India and the World were looking at from the Parliament’s winter session was the passage of the 122ndConstitutional Amendment Bill, 2014 (122nd CAB or GST Bill), which promised to bring in the biggest indirect tax reform in the Country ever happened....

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Posted Under: Income Tax |

Inputs / Capital goods used in R&D and Quality Control Laboratory for input testing, final product samples eligible for Cenvat credit

Sabic Innovative Plastics (P.) Ltd. Vs Commissioner of Central Excise & Service Tax (CESTAT Ahmedabad)

Subic Innovative Plastics (P.) Ltd. (the Appellant) had taken Cenvat credit on inputs and capital goods used in Research and Development (R&D) and Quality Control Laboratory situated in the factory premises. ...

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Excise dues payable by old Company cannot be recovered from assessee when assessee purchased only assets of old Company

Jaiprakash Associates Ltd. Vs Union of India (Allahabad High Court)

Liability of past Excise dues payable by old Company could neither be fastened nor be recovered from assessee when the assessee had only purchased assets of old Company, which was ordered to be wound up and had not taken over their running business- Jaiprakash Associates Ltd. Vs. Union of India [2015 (64) taxmann.com 20 (Allahabad)]...

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Posted Under: Income Tax |

Pre-delivery inspection charges and after sales service charges not includible in assessable value

Commissioner of Central Excise, Mysore Vs TVS Motors Company Ltd. (Supreme Court of India)

SC overruled the CESTAT Larger Bench decision in Maruti Suzuki case and held that pre-delivery inspection charges and after sales service charges are not to be included in assessable value- Commissioner of Central Excise, Mysore Vs. TVS Motors Company Ltd. [2015 (12) TMI 874 - SUPREME COURT]...

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Penalty cannot be imposed if provision(s) for imposition of penalty for wrong availment of Cenvat credit has not been invoked in SCN

Commissioner of Service Tax, Mumbai Vs Hazira Marine Engg. & Const. Mgmt. P. Ltd. (CESTAT Mumbai)

The Hon’ble CESTAT, Mumbai held that when the Department has not invoked the provisions for imposition of penalties under relevant Section(s), therefore, the argument put forth by the Department for imposition of penalty under the Credit Rules is unsustainable....

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Posted Under: Income Tax |

Refund allowable where Service tax is paid twice by Appellant due to clerical error

Tikaula Sugar Mills Ltd. Vs CCE, Meerut-I (CESTAT Delhi)

Refund is allowable where Service tax is paid twice by the Appellant due to clerical error and the same is proved by supporting documents- Tikaula Sugar Mills Ltd. Vs. CCE, Meerut-I [2015 (12) TMI 884 - CESTAT NEW DELHI]...

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Rent-a-cab services to SEZ Unit for transportation of its staff to and from their residence is exempt from Service Tax

ORIX Auto Infrastructure Services Ltd. Vs Commissioner of Service Tax (CESTAT Mumbai)

Rent-a-cab services provided to a unit located in SEZ for transportation of employees to and from their residences located outside SEZ, are eligible for exemption from Service tax- ORIX Auto Infrastructure Services Ltd. Vs. Commissioner of Service Tax [2015 (64) taxmann.com 21 (Mumbai - CESTAT)]...

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Posted Under: Income Tax |

In case service tax not been charged, consideration received has to regarded as cum-tax value

Commissioner of Service Tax, Mumbai-I Vs Bluechip Corporate Investment Centre Ltd. (CESTAT Mumbai)

Where Service tax is not charged separately on pretext that services are not taxable, consideration so received has to regarded as cum-tax value and in event of demand, Service tax must be worked out accordingly- Commissioner of Service Tax, Mumbai-I Vs. Bluechip Corporate Investment Centre Ltd....

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Posted Under: Income Tax |

Inclusion in assessable value of reimbursement received for third party inspection charges undertaken at buyers instance

Central Cables Ltd. Vs Commissioner of Central Excise (CESTAT Mumbai)

Additional amount received as reimbursement towards third party inspection charges undertaken at the instance of the buyer is not includable in the assessable value- Central Cables Ltd. Vs. Commissioner of Central Excise, Mumbai [2015 (12) TMI 256 - CESTAT MUMBAI]...

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Posted Under: Income Tax |

In absence of any specific provision in statute, duty/penalty liability of Company cannot be recovered from assets of its director

Krishan Kumar Vs Union of India and Anothers

Krishan Kumar (the Petitioner) is at present non-working director of Spectec Building Products Pvt. Ltd. (the Company). The Department has alleged that the Company was indulging in clandestine removal and undervaluation of goods manufactured by it and thereby...

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Posted Under: Income Tax |

100% EOUs cav claim Customs exemption on clearance made to Domestic Tariff Area

Commissioner of Central Excise, Daman Vs Sahajanand Technology (P.) Ltd.(Supreme Court of India)

Sahajanand Technologies Pvt. Ltd (the Respondent) being a 100% EOU made DTA sales by supplying goods to the EPCG licence holder, DTA sales. In terms of the Section 3 of Excise Act, such sales were liable for the payment of Excise duty equal to the amount of Customs duty leviable in terms of Section 12 of the Custom Act...

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Posted Under: Income Tax |

Right given by Exemption Notification cannot be taken away by issue of Departmental Circulars

Commissioner of Customs, Ahmedabad Vs M.B. Enterprise (CESTAT Ahmedabad)

Sanctioning of 4% of SAD refunds by way of re-credit in the respective licenses after June 30, 2013 is proper – A right given under an Exemption Notification cannot be taken away by issue of the Departmental Circulars- Commissioner of Customs, Ahmedabad Vs. M.B. Enterprise [2015 (12) TMI 578 - CESTAT Ahmedabad]...

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Posted Under: Income Tax |

Ground not raised before Commissioner (Appeals) cannot be raised before Tribunal by department

CC (Sea-Imp.), Chennai Vs Kwang Sung Brake India Pvt. Ltd. (CESTAT Chennai)

The Department is not allowed to raise new grounds of appeal before the Tribunal, which were not raised before the Commissioner (Appeals)-CC (Sea-Imp.), Chennai Vs. Kwang Sung Brake India Pvt. Ltd. [2015 (12) TMI 585 - CESTAT Chennai]...

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Posted Under: Income Tax |

Business Consultancy and Software Implementation services cannot be considered as ‘sale’

State of Karnataka Vs IBM India (P) Ltd. India (Karnataka High Court)

Where assessee was engaged in development and sale of software etc., activities of Business Consultancy services and Software Implementation services, which have been subject to Service tax, cannot be considered as ‘sale...

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Posted Under: Income Tax |

Despite common godown, transaction would be Inter-state sales if movement of goods is from one State to other as per purchase order

State of Tamil Nadu Vs Annamalaiar Mills Ltd. (Madras High Court)

Transaction would be Inter-state sales where movement of goods is from one State to another in terms of purchase order, even if goods are supplied to common godown of buyer and seller- State of Tamil Nadu Vs. Annamalaiar Mills Ltd. [(2015) 63 taxmann.com 234 (Madras)]...

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Posted Under: Income Tax |

Validity of Reopening on the basis of plea that full CST was collected from customers

J.K. Tyre & Industries Ltd. Vs State of Rajasthan (Rajasthan High Court)

Where assessee was allowed partial exemption from CST in terms of Exemption Notification, reopening of assessments on plea that full CST was collected from customers is not justified- J.K. Tyre & Industries Ltd. Vs. State of Rajasthan [(2015) 63 taxmann.com 233 (Rajasthan)]...

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Posted Under: Income Tax |

How to differentiate between Job Work and Manpower Supply service

It came to the notice of the Central Board of Excise and Customs (CBEC or the Board) that certain field formations are taking a view that Service tax is payable on services received by the apparel exporters from third party undertaking job work on the premise that the services received by apparel exporters is of manpower supply service, w...

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Posted Under: Income Tax |

MVAT: Set-off in respect of certain goods covered under Schedule D of Act ( Rule 52B)

Notification No. VAT. 1515/CR-158/Taxation-1 (30/12/2015)

1. (1) These rules may be called the Maharashtra Value Added Tax (Third Amendment) Rules, 2015.— (2) They shall come into force on 1st January 2016. 2. In the Maharashtra Value Added Tax Rules, 2005, after rule 52A, the following rule shall be added namely :‑...

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Revised rules & Forms related to Quoting of PAN wef 01.01.2016

Notification No. 95/2015 (30/12/2015)

Notification No. 95/2015 In exercise of the powers conferred by section 139A, section 271FAA and section 285BA, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-...

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All about CA Examinations

1.1 Chartered Accountants examinations are held as per the provisions of the Chartered Accountants Regulations, 1988, framed under Chartered Accountants Act, 1949. 1.2 Affairs relating to Chartered Accountancy examinations are managed by the Examination Committee, a Standing Committee of the Council of the Institute of Chartered Accounta...

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Posted Under: Income Tax |

Internal Financial Controls over Financial Reporting

Audit of ‘Internal Financial controls (hereinafter to be referred as ‘IFC’) over Financial Reporting’ is a reasonably advanced reporting concept for India. In India though there were no such requirements earlier, however, similar reporting requirements existed globally such as section 404 of Sarbanes Oxley Act, 2002 of USA....

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Posted Under: Income Tax |

Condonation of delay in Creation/Modification/Satisfaction of Charge

Process for Approval of Central Government (Regional Director) where the instrument creating or modifying a charge is not filed within a period of 300 days from the date of its creation or modification and where the satisfaction of the charge is not filed within 30 days from the date on which such payment of satisfaction....

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Posted Under: Income Tax |

Omnibus Approval for Related Party Transaction under Companies Act, 2013

In case of Companies Act, is the board required to approve all related party transactions from audit committee? [1]The Companies Act 2013 prescribes that a company needs approval of the audit committee on all related party transactions and subsequent modifications thereto. Section 177(4) (iv). [2]Provided that the Audit Committee may make...

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Posted Under: Income Tax |

Foreign Exchange Management (Insurance) Regulations, 2015

Notification No. FEMA.12R/2015-RB (29/12/2015)

G.S.R. 1007(E).—In exercise of the powers conferred by sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supercession of its Notification No. FEMA.12/2000-RB, dated May 3, 2000, as amended from time to time, the Reserve Bank of India makes the following Regulations with respect to the holdin...

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Notification No. 149/2015 – Customs (N.T.) dated the 29th December, 2015

Notification No. 149/2015-Customs (N.T.) (29/12/2015)

Notification No. 149/2015 - Customs (N.T.) Central Government hereby rescinds the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002, published by Notification No. 34/2002-NT-CUSTOMS, dated the 11th June, 2002 in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 420 (E), dat...

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Notification No. 148/2015-Customs (N.T.) Dated- 29th December, 2015

Notification No. 148/2015-Customs (N.T.) (29/12/2015)

Notification No. 148/ 2015-Customs (N.T.) Central Board of Excise and Customs, hereby makes following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.12/97-CUSTOMS (N.T.), dated the 2nd April, 1997, published in the Gazette of India, Extraordinary, Part II, Section 3...

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FAQs on Central Excise/Service Tax Audit

In terms of revised selection methodology prescribed vide Circular No. 995/2/2015-CX dated 27th Feb, 2015, which has come into effect from 01st July, 2015, an annual schedule for audit would be drawn based on the risk evaluation method prescribed by the Directorate General of Audit. The risk assessment function will be jointly handled by ...

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Posted Under: Income Tax |

The Negotiable Instruments (Amendment) Act, 2015

NO. 26 OF 2015 (29/12/2015)

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 29th December, 2015 The following Act of Parliament received the assent of the President on the 26th December, 2015, and is hereby published for general information:— THE NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2015 NO. 26 OF 2015 [26th December, 2015.] An Act further t...

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Section 14A disallowance only for Expenses not directly relatable to exempt or taxable Income

Pr. CIT Vs Bharti Overseas Pvt. Ltd. (Delhi High Court)

. CIT Vs. Bharti Overseas Pvt. Ltd. (Delhi High Court) As far as Rule 8D (2) (i) is concerned, the AO has necessarily to record that he is not satisfied with the correctness of the claim of the expenditure made by the Assessee in relation to the income which does not form part of the total income....

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Migration from one phase to another would not result in transfer of license awarded in Phase I

Digital Radio (Delhi) Broadcasting Ltd. Vs ACIT (ITAT Delhi)

The ITAT Delhi in the case of Digital Radio Broadcasting Ltd. held that the migration from one phase to another phase cannot be considered as transfer of license awarded under phase I particularly when the license agreement restrict any type of transfer or assignment of license or rights thereunder....

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Penalty u/s 271(1)(c) cannot be imposed where declaration of income is bonafide & no irregularities found by AO

Ami Estates Pvt. Ltd. Vs DCIT (ITAT Mumbai)

ITAT Mumbai held In the case of Ami Estates Pvt. Ltd. vs. DCIT that the assessee has explained one to one nexus namely cash funds received from sale of Bangalore property, and its utilization for Pune property. ...

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Delhi VAT: Clarification on Registration of e-commerce Dealers

CIRCULAR NO 33 OF 2015-16 (29/12/2015)

CIRCULAR NO 33 OF 2015-16 This department had issued a Notification No. 3(515)/Policy/VAT/ 2015/330-341 dated 26/06/15 prescribing the return to be filed by the persons engaged in providing facility of electronic shopping (commonly known as e-commerce) through their web portals. These entities were required to provide details of dealers u...

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Hurdles in Extension of Due Dates of Filing of ITR & Tax Audits- Suggestions

SUGGESTIONS FOR UNION BUDGET 2016-17 - FOR AMENDING SECTION 140A & 234A OF INCOME TAX ACT FOR REMOVAL OF HURDLES IN EASY EXTENSION OF DUE DATES OF FILING OF INCOME TAX RETURNS AND TAX AUDITS...

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Posted Under: Income Tax | ,

No GST on Petrol and Petroleum Products

Advocate Anandaday Misshra As on date, there will be no levy of GST on Petrol and other petroleum products. Chief Economic Advisor Mr. Arvind Subramanian, on this Sunday, stated that Petrol and other petroleum product shall be outside the ambit of Goods And Services Tax (GST) regime after its roll out. At the same time it must be note...

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Posted Under: Income Tax |

Expenses on News/TV programs/Film rights not having enduring benefit allowed as revenue expenditure

Zee Media Corporation Limited Vs DCIT (ITAT Mumbai)

ITAT Mumbai held In the case of Zee Media Corporation Limited vs. DCIT that regarding the nature of the news items purchased, we find it is in the common knowledge of every citizen that the news items do not have enduring benefit....

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Mere voluntary disclosure after survey proceedings cannot tantamount to bonafide action

Nirmal Kumar Bardia Vs DCIT (ITAT Jaipur)

ITAT Jaipur held In the case of Nirmal Kumar Bardia vs. DCIT that argument of the assessee that the assessee had disclosed salary received from RMC Gems Thai Co. Ltd., Bangkok voluntarily has not substantiated with any evidence....

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Revenue cannot be aggregated for determining ALP of software development services for two different sectors

M/s. OSI Systems Pvt. Ltd. Vs DCIT (ITAT Hyderabad)

ITAT Hyderabad held In the case of M/s. OSI Systems Pvt. Ltd. vs. DCIT that it may be a fact that software development services is a very wide term and takes within its ambit, whole software development services....

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Issue Questionnaire with First Notice in scrutiny cases: CBDT

Instruction No. 19/2015 (29/12/2015)

Instruction No. 19/2015 Instances have come to the notice of the Board that in cases selected under scrutiny, while issuing the first notice, Assessing Officers do not convey the specific compliance requirements like production of accounts, furnishing of documents, information, evidences, submission of other requisite particulars etc...

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Clarification on Scope of scrutiny in cases selected through CASS

Instruction No. 20/2015 (29/12/2015)

The Central Board of Direct Taxes ('CBDT') , vide Instruction No. 7/2014 dated 26 09.2014 had clarified the extent of enquiry in certain category of cases specified therein , which are selected for scrutiny through CASS . Further clarifications have been sought regarding the scope and applicability of the aforesaid Instruction to cases be...

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Internet of Things for Efficient Strategic Cost Management

Cost Accountants and Cost Management goes in diverse ways where the former struggles and the latter is crowned with success. New dimensions and segments have evolved in cost management but the professionals are facing higher levels of difficulties. Strategic cost management has taken new heights in designing the business structures under ...

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Posted Under: Income Tax |

Foreign Exchange Management (Realisation, Repatriation and Surrender of Foreign Exchange) Regulations, 2015

Notification No. FEMA 9 (R)/2015-RB (29/12/2015)

G.S.R. 1005(E).—1 In exercise of the powers conferred by Section 8, sub-section (6) of Section 10, clause (c) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 9/ 2000-RB dated May 3, 2000, as amended from time to time the Reserve Bank makes the follo...

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Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015

Notification No. FEMA 11(R)/2015-RB (29/12/2015)

G.S.R. 1006(E).—In exercise of the powers conferred by clause (a) and clause (e) of Section 9, clause (d) and clause (g) of sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 11/ 2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank of...

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TP adjustment for intra group services not sustainable where receipt of services & its benefits are beyond any doubt

M/s. Gillette India Ltd. Vs ACIT (ITAT Jaipur)

ITAT Jaipur held In the case of M/s. Gillette India Ltd. vs. ACIT that the services availed are intra-group services in the nature of Accounting and Financial Reporting Services, Employee services etc. . These are routinely outsourced by no. of companies in India and other countries because of their economic...

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RBI notifies debit cards, ATM cards etc. which can be used to create a financial liability

Notification No. FEMA 15(R)/ 2015–RB (29/12/2015)

G.S.R. 1008(E).—In pursuance of clause (h) of Section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 15/ 2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank notifies debit cards, ATM cards or any other instrument by whatever name called that can be used to ...

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Post Office (Postal Orders/Money Orders)

Notification No. FEMA 18(R)/2015–RB (29/12/2015)

NOTIFICATION Mumbai, the 29th December, 2015 No. FEMA 18(R)/2015–RB Post Office (Postal Orders/Money Orders) G.S.R. 1009(E).— In pursuance of clause (a) of Section 3 of Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 18/ 2000-RB dated May 3, 2000, as amended from time to time, the Reser...

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Foreign Exchange Management (Export and import of currency) Regulations, 2015

Notification No. FEMA 6 (R) /RB-2015 (29/12/2015)

G.S.R. 1004(E).—In exercise of the powers conferred by clause (g) of sub-section (3) of Section 6, sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), and in supersession of Notification No. FEMA 6/2000-RB dated May 3, 2000, as amended from time to time, the Reserve Bank makes the following regulatio...

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Digital Signature mandatory from 01.01.2016 for filing Customs documents through Remote EDI System

Registration Module : To capture the Digital Signature and update the KYC details a new Registration module is likely to be started. Please visit the New Registration Advisory and New Registration Demo under downloads section on ICEGATE home page. Digital Signature : Use of Digital Signature for filing of documents through ICEGATE has bee...

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Posted Under: Income Tax |

Kelkar Committee Report on Revisiting & Revitalising PPP Model

Report of the Committee on Revisiting and Revitalising Public Private Partnership Model (Chairman: Dr V. Kelkar)- As part of the government's efforts to revitalize private investment, a detailed review of risks in PPPs was considered essential to rebalance the allocation of risks, while in no way diluting the essence of a PPP structure. B...

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Posted Under: Income Tax |

TDS U/s. 194A of the Act on interest on fixed deposit made on direction of Courts-regd

Circular No. 23/2015-Income Tax (28/12/2015)

Circular No. 23/2015 Section 194A of Income Tax Act, 1961 stipulates deductions of tax at source (TDS) on interest other than interest on securities if the aggregate of amount of such interest credited or paid to the account of the payee during the financial year exceeds the specified amount ....

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No LPG subsidy if Taxable Income Exceeds Rs. Ten lakh

While many consumers have given up subsidy voluntarily, it is felt that consumers in the higher income bracket should get LPG cylinders at the market price. Therefore, the Government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs ...

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Posted Under: Income Tax | ,

ICAI- Restoration of Membership of the Institute

You are invited to apply for restoration of membership by submitting Form No. 9 and update the particulars wherever necessary, if any, in case your name has been removed from the Register of Members due to non-payment of requisite fee before the due date. ...

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Posted Under: Income Tax |

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