"03 February 2016" Archive

Procedure, Formats and Standards for ensuring secured transmission of electronic communication to taxpayer

Notification No. 2/2016 (03/02/2016)

Notification No. 2/2016 a. The email address of the assessee to be used for the purpose of electronic communication shall be as specified in Sub-Clause (b)(i) or(ii) or(iii) of Sub Rule 2 of Rule 127 of Income Tax Rules 1962. b. The assessee may furnish a letter to the Assessing Officer (hereinafter referred to as "AO") providing any othe...

Read More

Rebate of Swachh Bharat Cess paid on all services, used in providing services exported

Notification No. 03/2016-Service Tax (03/02/2016)

Notification No. 03/2016-Service Tax - Seeks to amend notification No. 39/2012- ST, dated the 20th June, 2012 so as to provide for rebate of Swachh Bharat Cess paid on all services, used in providing services exported in terms of rule 6A of the Service Tax Rules....

Read More

Refund of Swachh Bharat Cess paid on specified services used in a SEZ

Notification No. 02/2016-Service Tax (03/02/2016)

Notification No. 02/2016-Service Tax (ba) the SEZ Unit or the Developer shall be entitled to- i. refund of the Swachh Bharat Cess paid on the specified services on which ab-initio exemption is admissible but not claimed; and ii. the refund of amount as determined by multiplying total service tax distributed to it in terms of clause (a)...

Read More

Reg. Refund of service tax on services used beyond factory for export of goods

Notification No. 01/2016-Service Tax (03/02/2016)

Notification No. 01/2016-Service Tax Seeks to amend notification No. 41/2012- ST, dated the 29th June, 2012 so as to allow refund of service tax on services used beyond the factory or any other place or premises of production or manufacture of the said goods for the export of the said goods and to increase the refund amount commensurate t...

Read More

Foreign Technicians in India : Liability to tax

Of late, the issue regarding the taxability of the remuneration and living allowance, etc. payable to a foreign technician on deputation in India under a Technical Collaboration or Assistance Agreement, has become quite controversial. At the root of this controversy, are the provisions of S. 9(1)(ii) of the Income-Tax Act, 1961 (the Act)....

Read More
Posted Under: Income Tax |

Sale of a capital asset converted into stock-in-trade: Tax-treatment

In business there are occasions when a capital asset is converted into stock-in-trade and stock-in-trade is converted into capital asset. There may also be occasions when an asset ceases to be a stock-in-trade. In this context, section 45(2) of the Income-Tax Act, 1961 (the Act) is relevant. For the sake of ready reference, section 45(2) ...

Read More
Posted Under: Income Tax | ,

Reimbursement of Re-location expenses: A Perquisite

Recently, I was approached by a multi-national company for an opinion regarding tax-treatment of the expenses reimbursed by the company on the re-location of an employee from his present location to the place of employment with the company. Of late, a number of multi-national companies and other big Indian companies have, by way of incent...

Read More
Posted Under: Income Tax | ,

Taxability of Income governed by Principle of Mutuality

There are a number of entities, the income / surplus of which is governed by the principle of mutuality and therefore, such income / surplus is not liable to income-tax. In other words, any surplus in the case of mutual concerns is exempt from income-tax and therefore, it would not form part of the gross total income of such mutual concer...

Read More
Posted Under: Income Tax |

Export of material/equipment under bond, without payment of Central Excise duty, for Kholongchhu Hydro-Electric Project (KHEP) in Bhutan allowed

Notification No. 03/2016-Central Excise (N.T.) (03/02/2016)

Notification No. 3/2016-Central Excise (N.T.) Seeks to amend Notification No. 45/2001 - CE (NT) dated 26th June, 2001, as amended, to allow export of material/equipment under bond, without payment of Central Excise duty, for Kholongchhu Hydro-Electric Project (KHEP) in Bhutan...

Read More

Taxation of Joint Venture Business

Presently we have been witnessing a very different trend in relation to the real-estate development. Earlier, a builder would go for outright purchase of a piece of land from the land-lord and develop the same at his own cost and risk. The scenario in this regard is undergoing a change. The land-lord also desires to have a share in the pr...

Read More
Posted Under: Income Tax |