Recently, an opinion was sought from me by a client regarding TDS implications under Chapter XVII-B of the Income-Tax Act, 1961 (the Act), in respect of merchant service fees payable in the course of settlement of credit card transactions for the purchase of goods / services. In the aforesaid transactions, the functions of the relevant entities may be briefly discussed as follows :
Notification No.5/2012-Income Tax S.O…………(E).- In exercise of the powers conferred by section 285 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
(i) The policy recommends production of Concentrate of Poppy Straw (CPS) in India by a company or body corporate. This would enable India to retain its status of a traditional supplier of Opiate Raw Material (ORM) to the rest of world, while remaining competitive. (ii) The consumption of poppy straw by addicts will be gradually reduced and finally stopped in a time frame decided by the States.
The Quality Review Board has been reconstituted by the Ministry of Corporate Affairs.
The government is expected to keep 22 services in the negative list and impose 10 per cent tax on the rest, sources said, adding that services for the purpose would be defined as all kinds of economic activities, barring goods, money and immovable property.
The Act stipulates that certain persons are totally barred from accepting any foreign contribution. The term ‘foreign contribution’ is defined in Clause (h) of Section 2 of the Act to mean the donation, delivery or transfer made by a foreign source of any article (not being an article of gift for personal use, the market value of which is not more than the specified amount), currency (whether Indian or foreign) or any security. The following are the persons prohibited from accepting foreign contribution:
This has reference to your application for the multipurpose panel for the year 2011-12. The Bank Branch Auditors panel for the year 2010-11, prepared thereof alongwith the Unique Code Number is hosted at http://www.meficai.org/ucn.jsp , for your ready reference. You can visit the the link and check your unique code number. Know your Unique Code Number
Come next financial year, the PAN card is likely to become the most potent tool for the Income Tax Department to unearth black money, tax evasion and instances of criminal financing in the country.A recent directive of the Central Board of Direct Taxes (CBDT) to the I-T Dept has asked its officials to launch a special drive against those who have “not furnished their PAN (Permanent Account Number)” while entering into high value transactions.
CIT v. Synopsys International Old Ltd(Karnataka High Court) – Payment for shrink wrapped software/off-the shelf software amounts to ‘royalty’ within the meaning of Section 9(1)(vi) of the Income-tax Act, 1961 as well as under Article 12 of the India-Ireland tax treaty.
M/s. Kenton Leisure Services, P. Ltd. Vs. DCIT (ITAT Cochin) – It was held that lease rental income arising from agreements for letting on lease hostel premises along with provision and maintenance of various facilities and amenities would be taxable under the head ‘Income from Business’ as against ‘Income from House Property’.The characterisation of lease rental income as ‘Income from Business’ comes as a relief to taxpayers who lease out property along with provision of facilities / amenities. However, this issue is fact specific and it would be important for taxpayers to bear the above principles in mind while determining the taxability of such revenue streams.
