The Empowered Committee of State Finance Ministers unveiled the First Discussion paper on Goods and Service Tax in India on 10th November 2009. This discussion paper provides us with broad contours of dual GST to be implemented in India.
From the above, it can be clearly seen that there is no blanket restriction on the powers of the Tribunal to enhance the assessment but the restriction on enhancement is in light of the judge – made law, or to put it differently, in light of the ratio decidendi of the binding judicial pronouncements. Further this view has been confirmed by various judicial pronouncements viz., Pathikonda Balasubha Setty (Decd.) Vs. CIT 1967 – 65 – ITR- 252 (Mys), and in the latest Supreme Court judgment in the case of MCorp Global Pvt. Ltd. Vs. Commissioner of Income Tax, Ghaziabad 2009-(222)-CTR -0110 -SC.
Give the known challenges, every central bank has to move in the direction of taking right steps that it may feel as appropriate despite lack of consensus on many critical issues, without waiting for the global system to move. It would be wrong, however, as noted by Mr. Stephen Roach, to presume that “best global policies are the sum of the best national policies”.
Section 14A was introduced in the Income Tax Act, 1961 by the Finance Act 2001 with retrospective effect from 1st April 1962. The intent of introducing this section was reiteration of the well settled legal principle that when an assessee incurs any expenditure in relation to income which is not liable to tax under the Act, he would ideally not be allowed the benefit of claiming such expenditure. The need for introduction of this section had arisen to negate the decision of Supreme Court in Rajasthan State Warehousing Corporation vs. CIT [2000] ITR 450.
As per well settled law and also according to canons of taxation only that expenditure which is relatable to taxable income should be deducted in computing the total income. Expenditure which has a bearing on exempt income should not be considered in the computation of total income as otherwise this would result in double advantage to the assessee.
Background of the Circular:- CENVAT Credit Rules, 2004 (‘CCR’) permit availment of credit of excise duty on inputs and service tax on input services used for manufacture of dutiable goods or providing output services. In order to zero-rate the exports, Rule 5 of CCR provides that such accumulated credit can be refunded to the exporter subject to conditions provided in Notification No. 5/2006-CE (NT) dated 14.03.2006 (‘subject notification’).
Risk Revisited :-When you invested, you did so with certain expectations about the performance of the company, the prospects of income from and/or the capital growth of the securities that you now hold, the corporate benefits that may accrue to you etc. While making that investment decision, you should have, obviously, taken note of and duly evaluated the attendant risks that go with such expectations.
To promote transparency in the financial transactions done by the Gram Panchayats in the state, the Orissa government has decided to rope in the services of the Chartered Accountants (CAs) for compilation of data at the grassroot level. The state government with technical assistance of the National Informatics Centre (NIC) has developed a software for the purpose.
Responding to the widespread feeling that banks do not set their lending rates in a scientific and transparent manner, the Reserve Bank of India is in the last stages of the consultative process to introduce a new system. The proposed system will replace the existing system of benchmark prime lending rates (BPLR) with base rates. The formula for calculating the base rate will take into account the cost of deposits, cost of complying with CRR and SLR requirements, and the need to retain a profit margin.
The Government of Punjab has recently imposed Entry Tax on 12 new items under section 3A of Punjab Tax on Entry of Goods into Local Areas Act, 2000 (Punjab Act No.9 of 2000). The List of which has already been provided in the articles published earlier.
