TDS on transport contractors :-Finance Act 2009 has made an important change in respect of applicability of TDS on transport contractors. Section 194C has been replaced and the following two sub sections provide for non deduction of TDS on transport contractors.
Where on account of the transfer of an employee from one place to another, he is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with reference to only one such accommodation which has the lower value for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodation.
The term ‘input service’ (under Cenvat Credit Rules, 2004) has gone through its share of litigations and interpretations, with the trade knocking the doors of judiciary for much needed relief and justice. It is in the interest of the department and India Inc to bring in suitable amendments in the definition of input service, which could put an end to the litigations on this count.
The issue before the SB was that, while computing the amounts eligible for tax holiday under the Indian Tax Law (ITL), whether the losses of an undertaking of the Taxpayer which is not eligible for tax holiday (Non-eligible Undertaking), are required to be set off against the profits of another undertaking of the Taxpayer which is eligible for tax holiday (Eligible Undertaking)
The greatest advantage of new GST regime is that it addresses fully the concern of tax cascading. Presently tax cascading is found in both- central and state taxes as the exempt sectors of economy (trade, oil etc) are not allowed to claim any cenvat credit of indirect taxes. It neither happens in excise duty nor in state value added tax. Also, on inter state sales, central sale tax (CST) is collected by the origin state for which no credit is allowed by any Government.
Central Information Commission (CIC) has opined that non-disclosure of feedback on probe in tax evasion complaints filed by whistle-blowers will dissuade them from giving any future information. Acknowledging that the investigation wing of the income tax department was exempted from the purview of RTI act, the CIC said such blanket ban
The high court had said that the provision of Section 25B of the Income Tax Act is clarificatory in nature and should be given retrospective effect. The apex court, however, said, such findings of the high court was uncalled for after hearing the plea of Dowager Maharani Residential Accommodation Welfare Amenities Trust.
Promulgation of the Daman and Diu Civil Courts (Amendment) Regulation, 2009 to amend the Goa, Daman and Diu Civil Courts Act, 1965, as in force in the Union Territory of Daman and Diu.
In June 2000, an expert group headed by NIPFP director M Govinda Rao observed that the ‘selective approach to taxation of services is undesirable for this violates neutrality in taxation, leads to inadequate coverage in addition to raising several avoidable procedural and legal complications’. The group recommended that the Centre should move towards a ‘general and comprehensive extension of the tax to cover all services with a small and clearly defined exemption list’.
Under section 8(1) of the Central Sales Tax Act 1956 an Interstate sale to a registered dealer can be made at the concessional rate of Central sales tax i.e. @2% existing at this time. But for claiming concessional rate of CST the seller needs to produce a declaration in the prescribed form duly filed and signed by the registered dealer in a prescribed form obtained from a prescribed authority.
