UPDATES FROM TAX GURU

Discount can not be treated as brokerage or commission u/s. 194H in the absence of existence the relationship of principal and agent

We have carefully considered the submissions of the rival parties and perused the material available on record. We find that the facts are not in dispute. Under section 194H of the Act any person not being an individual or a Hindu undivided family...

RBI circular on submission of certificate from Statutory Auditor to the Bank on NBFC Audit

In terms of Para No. 15 of Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank)...

Circular on Classification of Textile quilted products like Quilts, Quilted bed spreads, etc for excise duty

Reference has been received from Trade seeking clarification regarding classification of Quilts and Quilted bed spreads. These are ready to use products. The process of manufacture of these products is that between two layers of fabrics, a layer of...

Affidavit must for gift in kind, over Rs. 50,000, from relatives

From now on, when you get a gift in kind, valued at more than Rs. 50,000, from your parents or other relatives, make sure you have a sworn affidavit declaring the donor your kin.The Central Board of Direct Taxes has ruled that any such gift will be...

Fee for use of satellite is "royalty" under Act & DTAA

The assessee, a foreign company, was engaged in operating geostationary telecommunication satellites with transponder capacity which were provided to telecasting companies in India for a fee. Related posts:Fee for use of satellite is royalty under...

No "succession of business" u/s 170 even on 100% sale of shares

Even if it is accepted that by a transfer of shares u/s 2(47), there is a transfer in the right to use the capital assets of the company, still s. 170 is not attracted because there is no "transfer of business". A company is a juristic person and...