sometimes the amendments to these provisos bring utter confusion which shivers a particular industry to which the notification relates. This is the exact situation of the textile sector which is being shivered by the recent amendments made in the proviso to notification no. 30/2004-CE dated 9.7.2004. Similar amendments have been made in two more notifications – 1/2011-CE & 12/2012-CE covering a number of other industries too. In this article, an effort has been made to analyze these three amendments and their impact on the industry as a whole.
GST is levied at every stage of the production distribution chain with applicable set off in respect of the tax remitted at previous stages. It is basically a tax on final consumption. GST is to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level.
It cannot be said that the land owned by the assessee was a vacant land. The character of the land has changed and it was no more plot of the land. Urban land, no doubt, is subject to the tax under the Wealth Tax Act, but, in our opinion, it will cover only the vacant land.
ITAT Chandigarh held in the case M/s Himlayan Expressway Limited vs. ITO that it is clear that the borrowed funds were not required by the assessee for business purposes. Therefore, the same funds were surplus funds in nature for that period which was utilized for making term deposits on which the assessee earned the interest.
In the modern income-tax regime the ‘individual’ status is proving to be better option to assessees keeping in view the tax-saving instruments & tedious/ TDS provisions of income-tax & structure of tax as well as statutory provisions and laws like Indian Companies Act, 2013.
In the present case the Hon’ble High court while deciding two vital issues held that the estoppels does not apply against a statute and Mere expansion of the Existing Units can’t be termed as a separate undertaking in order to claim deductions under section 10A.
In the present case HC held that standby maintenance charges are not technical services within the meaning of section 9(1)(vii). On the issue of Restoration Activities High court held that amount received from restoration activities cannot be termed as business income as the large portion of the cable Network was outside the Jurisdiction of Territorial waters of India.
Even though the excise duty was for manufacturing activity that occurred earlier, the liability to pay such additional duty did not exist in the previous years and as a result, could not have been claimed by the assessee as expenditure in the concerned previous years.
In the present facts of the Case, the Hon’ble tribunal held that businessman is the best Judge to find out what is the best for his business and to whom he should employ as the Commercial Expediency is only known to him.
In the present facts of the case the Hon’ble High Court held that as the assessee have not taken substantial risks and was a mediator in the international transactions. Hence, Transactional Net Margin Method is a right method instead of Profit Split method.
