New Valuation methods of unquoted shares u/s. 56

New Valuation methods of unquoted shares u/s. 56

Posted: 30 Nov 2012 07:25 PM PST

Notification No. 52/2012 - For section 56, value of unquoted shares can optionally be taken as value determined by either DFCF or as per revised method - Income-tax (Fifteenth Amendment) Rules, 2012 - Amendment in Rules 11U and 11UA

Registration of CAs in New e-filing Website

Posted: 30 Nov 2012 07:24 PM PST

I am happy to inform you that a long-awaited initiative to curb the misuse of membership numbers of our members in the tax audit reports has finally been taken. The new e-filing system launched by the CBDT (Central Board of Direct Taxes) has opened a window for chartered accountants to register and...

To claim deduction u/s. 35DDA for VRS , compliance with rule 2BA not mandatory

Posted: 30 Nov 2012 07:19 PM PST

A plain reading of provisions of section 35DDA, it is clear that compliance with the conditions of rule 2BA is mandatory only to avail exemption under section 10(10C) by the employees but said rule is not relevant to deduction under section 35DDA.

Income from other sources to be included for computing book profit for Remuneration to partners

Posted: 30 Nov 2012 07:15 PM PST

For the purpose of Section 40(b)(v) read with Explanation there cannot be separate method of accounting for ascertaining net profit and/or book-profit. In other words, according to the said Explanation 'book profit' means the net profit as shown in the profit and loss account including income from...

S. 54F Amount withdrawn from CGAS taxable in the year of withdrawal

Posted: 30 Nov 2012 07:15 PM PST

Last proviso to section 54F clearly mentions that when amounts deposited under Capital Gains Account Scheme were not utilised wholly or partly for the purchase or construction within the period specified, then such amount would be charged as income of the previous year in which the period of three...

Competition & Consumers Protection Laws in India

Posted: 30 Nov 2012 05:21 PM PST

Competition can be defined as a process wherein cost efficient production is achieved in a structure having reasonable number of players (producers and consumers) with simple entry and exit procedures and where exists a close substitution between products of different players in a given industry.

In case of export, place of removal is to be taken as port of export

Posted: 30 Nov 2012 10:59 AM PST

As submitted by the learned counsel in respect of FOB exports, the place of removal has to be treated as the Port. Further input service definition is an inclusive definition of services used by the manufacturer directly or indirectly in or in relation to manufacture and clearance and also relating...

To Claim Commission Expense there should be evidence that services been rendered

Posted: 30 Nov 2012 10:52 AM PST

Learned counsel was specifically asked whether he is in a position to produce, or has produced at any stage, evidences for services having been rendered by the persons, who have been paid the commission. While learned Counsel referred to the fact that these incomes are duly disclosed in the hands...

Refund of service tax paid despite eligibility for exemption can't be denied

Posted: 30 Nov 2012 10:42 AM PST

The disputed amount has not been realized as service tax from the person to whom service is provided. It is also to be noted that appellant had not filed a service tax return and the amount deposited in that tax account of the Government becomes payment towards service tax only when return is...

Making of Natural Fragrance by mixing and steaming different floral/distilled oil, is manufacturing activity

Posted: 30 Nov 2012 10:39 AM PST

The brief facts of the case are that assessee has filed its return of income on 20th September, 2008 for assessment year 2008-09 declaring nil income after claiming deduction of Rs. 332,29,787 under sec. 80-IC of the Act. Similarly in assessment year 2009-10, the assessee filed its return of income...

EPFO launches e-Passbook service

Posted: 30 Nov 2012 08:29 AM PST

Over 50 million PF subscribers can now access their accounts online as retirement fund body EPFO launched its e-Passbook service today. Active subscribers whose electronic challan-cum-return is already uploaded, can download their e-Passbook every month under the service launched by the...

Guidelines for Disciplinary Proceedings Against Delinquent Govt. Servants

Posted: 30 Nov 2012 08:16 AM PST

Instructions have been issued in the past for expeditious disposal of disciplinary proceedings against delinquent government servants. However, it has been observed that disciplinary proceedings are generally taking a long time which defeats the very purpose of initiating the said proceedings.

Taxation of Gift- Under Income Tax

Posted: 30 Nov 2012 08:00 AM PST

A receipt of sum of money or property* without consideration chargeable to tax under S. 56(2)(VII) if the following condition are satisfied. 1. Individual or HUF 2. Received on or after 01.10.2009 3. Sum of money or property falls in any of the following category 4. It does not fall under exempted...

ICAI President's Message – December 2012

Posted: 29 Nov 2012 11:05 PM PST

Dear Friends, To begin with, let me first convey, on behalf of our accounting fraternity, heartiest congratulations to the Hon'ble Shri Sachin Pilot for taking over as new Union Minister of Corporate Affairs (Independent Charge). Known for his youthful, energetic and dynamic working style, his...

Procedure and conditions for registration of contracts for export of cotton

Posted: 29 Nov 2012 05:21 PM PST

The Procedure and conditions for export of cotton has been modified. Maximum limit for obtaining RC has been increased to 30,000 bales. Multiple RCs can be applied within this eligibility. RAs Ludhiana, Rajkot and Vishakhapatnam have also been designated for issue of RCs for export of cotton. RC...

GAAR to be effective from Assessment year 2014-15

GAAR to be effective from Assessment year 2014-15

Posted: 29 Nov 2012 04:43 PM PST

General Anti-Avoidance Rules The GAAR (General Anti-Avoidance Rule) provisions have not been put on hold. The Finance Act, 2012 had provided that these provisions shall be effective from the 1st day of April, 2014 and apply to Assessment year 2014-15 onwards.

Provisions Relating To Limited Liability Partnership (LLP)

Posted: 29 Nov 2012 04:03 AM PST

- Meaning of Limited Liability Partnership Understanding Limited Liability Partnership in Brief. - Features of Limited Liability Partnership The Limited Liability Partnership Act 2008 Partners. - Designated Partners. - Limitation of Liability. - Forming a Limited Liability Partnership Forms and...

SEBI Revises Norms with Regard to Exchange Traded Funds

Posted: 28 Nov 2012 08:43 PM PST

SEBI Revises Norms with Regard to Exchange Traded Funds to bring Efficiency in Margining of Index Exchange Traded Funds (ETFS) and Facilitate Efficient use of Margin Capital by Market Participants The Securities and Exchange Board of India (SEBI) has revised the norms for calculating the margins...

Clarification with regard to goods specified in the certificate of registration obtaining declaration/certificates under Central Sales Tax Act, 1956

Posted: 28 Nov 2012 05:06 AM PST

Section 8 of the Central Sales Tax Act, 1956 provides for the rate of tax on sales in the course of inter-State Trade and commerce. Further, sub¬section (1) of section 8 states that every dealer, who in the course of inter-State trade or commerce, sells to a registered dealer the class or classes...

MVAT – Cancellation of assessment order u/s. 23(11)

Posted: 28 Nov 2012 04:26 AM PST

Trade Cir. No.21T of 2012 The section 23 of the MVAT Act, 2002 provides for the assessment of tax under different contingencies. 2. Sub-section (11) of section 23 provides that, (1) where a dealer has been assessed under sub-section (2), (3) or (4) and if he makes an application in Form-316 to the...

Service Tax on Renting of Immovable Property – Section 66E(A)

Service Tax on Real Estate – A Practical Perspective (PART – B)

Posted: 28 Nov 2012 06:51 PM PST

Article discusses Abatement/Valuation, Reverse Charge in Construction Activity along with different models applicable to Real estate Industry i.e. Tripartite Model, and Joint Development Model with case laws.

Service Tax on Renting of Immovable Property – Section 66E(A)

Posted: 28 Nov 2012 09:52 AM PST

Renting has been defined w.e.f. 1.7.2012 in section 65B(41) as allowing, permitting or granting access, entry, occupation, usage or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes...

No Misconduct by CA if arbitrator of client accepts controversial balance sheet

Posted: 28 Nov 2012 09:27 AM PST

Considering the fact that the dispute between the partners in respect of the accounts of the said firm was referred to the arbitrator who was an independent person and the said arbitrator looking to the entire evidence has accepted the balance-sheet audited by the 1st Respondent as correct, we see...

'No concession no perquisite' is for employee and not for employer for TDS Deduction – SC

Posted: 28 Nov 2012 09:07 AM PST

Scheme of the Act provides that after the employer deducts from the salary of the employee the tax and pays the same to the Central Government, a Tax Deduction Certificate is furnished to the employee and it is for the employee to claim before the Assessing Officer in the assessment proceedings and...

Service tax can be demanded only if residential complex comprises more than 12 residential units

Posted: 28 Nov 2012 07:09 AM PST

Hon'ble Supreme Court and the Hon'ble Supreme Court has dismissed the appeal filed as reported at 2012 (25) J514 (SC). So we consider that this matter is no longer res integra and service tax can be demanded under section 65(105)(zzzh) only if the building concerned has more than 12 residential...

Foreign travel expenditure on Pleasure Trip not allowable

Posted: 28 Nov 2012 03:06 AM PST

The main issue is with regard to allowability of foreign travel expenditure. The assessee claimed foreign travel expenditure at Rs. 20,35,971. As the assessee not furnished details of expenditure relating to business and pleasure trips, the Assessing Officer disallowed 80% of foreign travel...

Proceedings u/s. 147 not to initiated to examine as to whether there is escapement of income

Posted: 27 Nov 2012 11:27 PM PST

Reverting to the facts of the instant case, it is seen that insofar as the second reason is concerned, the Assessing Officer initiated reassessment proceedings with a view to 'examine' whether the assessee had accumulated reserve. Obviously, the scope of section 147 cannot encompass such an action...

Foreign gift may be treated as undisclosed income on the basis of Confession before FERA Authorities

Posted: 27 Nov 2012 10:36 PM PST

In the present case, the evidence in the form of confirmatory letters, deed of gifts etc. were found during the course of search. The authorities on examination of the confirmatory letters and surrounding circumstances reached a prima facie view that the gifts were not genuine. A notice dated...

Service in relation to IPL sponsorship not liable to service tax for period prior to 1-7-2010

Posted: 27 Nov 2012 09:12 PM PST

As per Section 65(105)(zzzn) the activity undertaken by the applicant is a sponsorship activity but same is specifically exempt if same is undertaken in relation to sponsorship of the sports events. The above said activity came into taxable event with effect from 1.7.2010 when an exemption for...

Manpower Supply Service not include deputation of employees for onsite development of software

Posted: 27 Nov 2012 09:08 PM PST

Activities of the appellant may not deserve to be considered as 'supply of manpower' but as rendering of 'information technology software service' and in the light of the stay granted in the case of ASM Technologies Ltd. (supra), the appellants are eligible for waiver of pre-deposit. As regards,...

Jurisdictional AO may verify position & take such action as may be warranted in law u/s. 172(7)

Posted: 27 Nov 2012 08:41 PM PST

Jurisdictional AO may verify the position and take such action as may be warranted in law in terms of section 172(7) to ensure that the income of the assessee from the various voyages does not escape assessment as per the normal provisions of the I-T Act.

ITAT set aside disallowance u/s. 14A as Assessee not provided complete details of expenses

Posted: 27 Nov 2012 08:28 PM PST

 In the instant case, the assessee denied incurring any expenditure for earning income, which did not form part of total income during the course of assessment proceedings even when huge investments were made by the assessee in the shares for having controlling interest . In terms of the aforesaid...

Services not in the course of business of manufacturing are not entitled to input credit

Posted: 27 Nov 2012 08:17 PM PST

After examining the records, I am of the view that the services in relation to Convention services, Memberships of Clubs & Association Services, Health Club & Fitness Centre Services and House Keeping services are not entitled for input service credit.

Service Tax Rules- Mostly used in practice

Service Tax Rules- Mostly used in practice

Posted: 27 Nov 2012 07:01 PM PST

RULE 4: REGISTRATION - Three categories of person liable to get themselves registered under service tax namely:-a. Service Provider of taxable services under section 69(1) b. Person responsible for making payment of service tax as specified in Rule 2 (1) (d) read with section 68. They shall also...

Conflict of Service Tax & Tax Deducted at Source

Posted: 27 Nov 2012 06:17 PM PST

Conflicts are what make legislation difficult to understand and subject to multiple views. Though we are always seeking for decision from judiciary to guide us in clear manner but the same might come much later than what we expect. There exists conflict for a transaction under various legal...

Rajiv Gandhi Equity Savings Scheme, 2012 -Section 80CCG – Notification

Posted: 27 Nov 2012 05:46 PM PST

Rajiv Gandhi Equity Savings Scheme, 2012 shall apply for claiming deduction in the computation of total income of the assessment year relevant to a previous year on account of investment in eligible securities under sub-section (1) of section 80CCG of the Income-tax Act, 1961. Notification No....

ICAI clarifies on Nagpur land Deal

Posted: 27 Nov 2012 05:30 PM PST

This Statement of Facts as regards Centre of Excellence (COE) project at Nagpur is being issued for the general information of members in view of the ongoing discussion in public domain.

No contravention of Rule 46A if CIT(A) sends document submitted by Assessee for Remand Report

Posted: 27 Nov 2012 10:49 AM PST

There is no cogency in the ground raised by the Revenue that Ld. Commissioner of Income Tax (A) has not duly afforded adequate opportunity to the Assessing Officer to consider the submissions and evidences filed before him at the appellate stage. The Ld. Commissioner of Income Tax (A) has duly sent...

India – Uzbekistan Protocol – Articles 1 to 4 and 6 wef 2013-14 & Article 5 from 20-7-2012

Posted: 27 Nov 2012 10:47 AM PST

Notification No. 49/2012 Whereas the annexed Protocol amending the Agreement between the Government of the Republic of India and the Government of the Republic of Uzbekistan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital

Amount paid for violation of laws not allowable despite Compounding

Amount paid for violation of laws not allowable despite Compounding

Posted: 26 Nov 2012 06:50 PM PST

Now coming to the other aspect on the basis of which the AO disallowed the claim as to whether or not expenditure incurred as a result of compounding of violation of municipal laws & Environmental laws falls within the ambit of aforesaid explanation to sec. 37(1) of the Act, Hon'ble Karnataka...

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Penalty can't be deleted on transaction treated as sham

Posted: 26 Nov 2012 06:17 PM PST

If we take the view that a claim which is wholly untenable in law and has absolutely no foundation on which it could be made, the assessee would not be liable to imposition of penalty, even if he was not acting bonafide while making a claim of this nature, that would give a licence to unscrupulous...

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No Penalty on voluntary admission of Assessee of taxing the income @ 8%

Posted: 26 Nov 2012 06:07 PM PST

Whether the disclosure/admission of Assessee of taxing the income @ 8% when faced with detailed enquiry is a voluntary surrender and not liable for penalty under section 271(1)(c) of the Act?"

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Payment for relinquishment of fabricated tenancy rights could not be considered in computing capital gain

Posted: 26 Nov 2012 05:05 PM PST

 The Tribunal recorded that amount of Rs. 15, 00, 000/- paid by the assessee to the Bank cannot be stated to be incurred wholly and exclusively for the purpose of the sale. The Tribunal further recorded that the amount shown as compensation for termination of tenancy rights is in fact not related...

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Commission paid to overseas agents for export sales is an input service

Posted: 26 Nov 2012 04:39 PM PST

Overseas commission agent services promotes the assessee's business activities and adds to Revenue earning by manufacture and sale of incremental quantity, activity may have nexus to such sales and Service Tax paid on such services has to be held as includable in the definition of inputs services.

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Penalty for delay in payment of service tax for no willful default can be waived

Posted: 26 Nov 2012 03:33 PM PST

Once the cause of default is not traced, it is not possible to determine whether that was reasonable or not. There is no whisper about deliberate breach of law by the appellant which normally is consideration while invoking penalty provision. Penalty being not automatically leviable and also no...

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Crucial date of sale for issuing C forms

Posted: 25 Nov 2012 07:48 PM PST

C form is a form for the concessional rate of CST on the inter-state sale of goods and is issued by purchasing dealer in one State to the selling dealer in another State for the inter-state sales transactions done during the period of three months i.e a quarter.

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