"12 June 2017" Archive

GST on Reverse Charge basis is not applicable on all transaction between Registered and Unregistered person

Checking tax leakage has always been a crucial task for any tax enforcement authority. Goods and Service Tax (GST) law has been structured not only to bring a new Indirect Tax code in the country, but to also embolden the revenue authorities in their war against tax evasion. One such provision is section 9(4) of the Central Goods And Serv...

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Payment for technical know-how- Capital or revenue expenditure?

Honda Siel Cars India Ltd Vs CIT (Supreme Court of India)

The issue that a particular expenditure incurred by assessee is a capital expenditure or a revenue one has remained controversial. The facts & circumstances of each case differ. However, the decisions of Hon’ble Supreme Court of India in this respect guide in resolving the issue....

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1st July July is not feasible for introduction of GST: BCAS

As appears from the news paper reports, it looks like, that the Government is in a hurry to implement GST with immediate effect. The proposed date, 1st July 2017, is not far away....

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Benefits of Goods and Services Tax (GST)

GST stands for Goods and Services Tax, which will be levied on the supply of goods or services or both in India. GST will subsume a number of existing indirect taxes being levied by the Center and State Governments, including Central Excise duty, Service Tax, VAT, Purchase Tax, Central Sales Tax, Entry Tax, Local Body Taxes, Octroi, Luxur...

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Revision of Safe Harbour Rules: A Positive Thought!

In India, new transfer pricing rules were introduced in 2002. Since then, the number of cases identified for audit and the transfer pricing adjustments locked up in disputes have increased tremendously. In order to reduce the increasing number of transfer pricing audits and prolonged disputes...

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No deemed dividend U/s. 2(22)(e) on trade advances in the nature of commercial transactions: CBDT

Circular No. 19/2017-Income Tax (12/06/2017)

Section 2(22) clause (e) of the Income Tax Act, 1961 (the Act) provides that dividend includes any payment by a company, not being a company in which the public are substantially interested, of any sum by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares...

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Section 194I not applicable on remittance of Passenger Service Fees: CBDT

Circular No. 21/2017-Income Tax (12/06/2017)

A dispute arose on applicability of the provisions of section 194-I of the Act, on payment of Passenger Service Fees (PSF) by an Airline to an Airport Operator. The Honourable High Court of Bombay in CIT vs. Jet Airways (India) Ltd.' declined to admit the ground relating to applicability of provisions of section 194-I of the Act on PSF ch...

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Adjustment of Seized cash against advance tax- Explanation 2 to Section 132B is prospective in nature: CBDT

Circular No. 20/2017-Income Tax (12/06/2017)

Dispute arose between the Department and the assessees with regard to adjustment of such seized/requisitioned cash against advance tax liability etc. Several Courts held that on an application made by the assessee, the seized money is to be adjusted against the advance tax liability of the assessee. ...

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GST Council lowers rates for 66 items, increases limit for Composition Levy

The all-powerful GST Council headed by the Honble Finance Minister, Mr. Arun Jaitley met for the sixteenth time with an agenda to review the rates on basis of representation made by the Industries & Traders & take up pending Draft Rules. Ahead of this meeting, we have moved one step more closure towards GST rollout from July 1, 2017 as en...

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No disallowance for interest paid to NBFC without TDS deduction, considered by NBFC in their Income

Shri Azmath Ulla Vs ACIT (ITAT Bangalore)

Having held that the second proviso to section 40(a)(ia) shall have retrospective effect the question arises that if the recipients of interest in question have already considered the same for computing their income offered to tax then the dis allowance u/s. 40(a)(ia) is not attracted....

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