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Showing posts from February, 2014

Karnataka HC gives interim stay on Sec 234E demand recovery

Karnataka HC gives interim stay on Sec 234E demand recoveryHigh court's relief for employers, businessmen from paying penal fees for not filing TDS
 In a big relief for several employers and businessmen, the Karnataka high court has stayed for four weeks the operation of series of demand notices sent by the Income Tax department asking them to pay penal fees in relation to non-filing of TDS statements.

Justice Jawad Rahim passed an interim order to this affect while asking Income Tax department andministry of financeto file their replies.
Several employers as well as assessees under TAN have moved the court challenging the penal provisions under newly inserted section 234E of the Income Tax Act , 1961 connected to filing of TDS returns by employers. "The incorporation of Section 234E to the IT Act with effect from July 1,2012 has at one stroke ,deleted all the favorable and beneficial sections- an appeal under section 246(1)(l)(ii) of the Act and also waiver of pe…

Amendment to CENVAT Credit Rules

Central Govt Notifies CENVAT Credit (Third Amendment) Rules, 2014 w.e.f April 1, 2014
Amends Rule 7 pertaining to credit distribution by input service distributor; Accordingly, service tax credit attributable to service used by one or more units exclusively engaged in exempted goods manufacture / exempted service rendition, shall be barred from distribution; Further, credit of service used wholly by a unit shall be distributed only to that unit; Pro rata distribution of service tax credit shall be based on turnover of units using said service during relevant period to total turnover of all its units operational in current year, during said relevant period; As per new Explanation 3, "relevant period" means (i) preceding financial year, where assessee's turnover available for that year, or (ii) where such details unavailable for some / all units , last quarter for which turnover details of all units available (previous to month / quarter for which credit distrib…

Case Law on Gold to Daughter

IN THE INCOME TAX APP ELLATE TRIBUNAL, KOLKATA 'B' BENCH, KOLKATA

Coram : Shri Abraham P. George (Accountant Member) and Shri George Mathan (Judicial Member) I.T .A. No. : 1400/Kol./ 2011 Assessment year : 2007-2008
Shri Harish Kumar Manikant Goda Vs Income Tax Officer
Appearances by: Shri Subash Agarwal, Advocate, for the assessee Shri P.B. Pramanick, JCIT, Sr. D.R, for the Department Date of concluding the hearing : February 14, 2014 Date of pronouncing the order : February 19, 2014 ORDER Per Abraham P. Geroge :
1. In this appeal, assessee assails an addition of Rs.3,62,100/- which was scaled down by ld. Commissioner of Income Tax (Appeals)-XIX, Kolkata to Rs.2,68,150/-.
2. Facts apropos are that assessee is an individual , had filed his return for the impugned assessment year declaring income of Rs.1,69,635/-. It seems that return was originally subject only to a processing under section 143(1) of the Act. The assessment was reopened under section 147 of the Act. Reason …

CBDT on Promotions

CBDT Order Promoting CsIT/ DsIT to Chief Commissioners of Income-tax Vide Order No. 36 of 2014 dated 20.02.2014 the CBDT has promoted officers in the grade of Commissioner / Director of Income Tax to the grade of Chief Commissioner of Income Tax (CCIT) in the Pay Band of Rs. 67,000 – 79,000with immediate effect and actually from the date of assumption of charge of the post and until further orders. The CBDT has also directed the postings of the said promotees
CBDT Order Promoting Addl. CsIT/ DsIT to Commissioners of Income-tax Vide Order No. 32 of 2014 dated 20.02.2014 the CBDT has promoted several officers in the grade of Additional Commissioner / Additional Director of Income Tax are hereby promoted to the grade of Commissioner of Income Tax (CIT) in the Pay Band 4 – Rs. 37,400-67,000 + Grade Pay of Rs. 10,000/- with immediate effect and actually from the date of assumption of charge of the post and until further orders

Highlights of Interim Budget 2014

Excise Duty The Excise Duty on all goods falling under Chapter 84 & 85 of the Schedule to the Central Excise Tariff Act is reduced from 12 percent to 10 percent for the period upto 30.06.20 14. The rates can be reviewed at the time of regular Budget.To give relief to the Automobile Industry, which is registering unprecended negative growth, the excise duty is reduced for the period up to30.06.2014 as follows:·Small Cars, Motorcycle, Scooters  and Commercial Vehicles       -    from 12 % to 8% ·SUVs -   from 30% to 24% ·Large and Mid-segment Cars  – from 27/24% to 24/20% It is also proposed to make appropriate reductions in the excise duties on chassis and trailors – The rates can be reviewed at the time of regular BudgetTo encourage domestic production of mobile handsets, the excise duties for all categories of mobile handsets is restructured. The rates will be 6% with CENVAT credit or 1 percent without CENVAT credit.Service Tax The loading and un-loading, packing, storage and warehous…

MCA Clarification on Sec 185

MCA issues clarification on section 185 of the Companies Act 2013 MCA after receiving number of representations on the. applicability of Section 185 of the Companies Act, 2013 with reference to loans made, guarantee given or security provided under Section 372A of the Companies Act, 1956, has come out with necessary clarification vide circular No. 3/2014 dated 14th Feb 2014, which will definitely provide much needed relief to corporates. It is clarified that in order to maintain harmony with regard to applicability of Section 372A of the Companies Act, 1956 till the same is repealed and Section 186 of the Companies Act, 2013 is notified, any guarantee given or security provided by a holding company in respect of loans made by a bank or financial institution to its wholly owned subsidiary company, exemption as provided in clause (d) of sub-section (8) of Section 372A of the Companies Act, 1956 shall be applicable. This clarification will, however, …

CBDT Circular On Application Of Section 14A And Rule 8D

CBDT Circular On Application Of Section 14A And Rule 8D The CBDT has issued Circular No. 5 of 2014 dated 11.02.2014 in which the issue as to whether disallowance under section 14A and Rule 8D can be made in cases where the corresponding exempt income has not been earned during the financial year has been considered in great detail.

TN CM on Rice is not an Agriculture Produce-ST

Service Tax - Rice Not an Agricultural Produce - Jayalalithaa Slams Union Government

INan acidic letter to the Prime Minister, Tamil Nadu Chief Minister Jayalalithaa said, "I write to bring to your attention an invidious, discriminatory and completely unjust situation that has arisen as a result of an extremely insensitive and regressive interpretation of certain provisions of the Service Tax legislation, which has made the services like storage and handling associated with Rice liable to levy of Service Tax." DDT had covered this issue in detail inDDT 2275 - 20.01.2014, where in it was mentioned, "So, your rice is going to be costlier because the Finance Ministry thinks that rice is not an agricultural produce. The Finance Ministry officials who interpreted this legality of what rice should be thankful that the tea boy who is waiting to become PM is not aware of this clarification (yet) - what an effective point it would make in his election speeches!" DDT…

CBDT Circular On Payment Of Dividend Distribution Tax By Mutual Funds

CBDT Circular On Payment Of Dividend Distribution Tax By Mutual FundsThe CBDT has issued Circular No. 6 of 2014 dated 11.02.2014 in which the issue as to whether mutual funds/specified companies are required to pay additional income-tax under sub-section(2) to section 115R of the Act not only on income distributed by way of dividend but also on payments made at the time of redemption/repurchase of units as well as at the time of allotment of bonus units to existing investors has been considered in great detail
By-VMVSR

J. Jayalalitha liable for prosecution for non-filing of I-T return

SC : J. Jayalalitha liable for prosecution for non-filing of I-T return
IT : J. Jayalalitha liable for prosecution for non-filing of return • Pendency of the appellate proceedings is not a relevant factor for not initiating prosecution proceedings under section 276CC of the Act. Section 276CC contemplates that an offence is committed on the non-filing of the return and it is totally unrelated to the pendency of assessment proceedings except for second part of the offence for determination of the sentence of the offence, the department may resort to best judgment assessment or otherwise to past years to determine the extent of the breach. • The contention that no prosecution could be initiated till the culmination of assessment proceedings, especially in a case where the appellant had not filed the return as per section 139(1) of the Act or following the notices issued under section 142 or section 148 does not arise. • The declaration or statement made in the individual retur…

No ST on Authorised Person

Press Information Bureau
Government of India
Ministry of Finance
04-February-2014 16:20 IST No Service Tax Required to be Paid on Services Provided by An Authorised Person or Sub-Brokers to the Member of a Commodity Exchange in Respect of Such Taxable Service
on which the Service Tax was not Being Levied During the Period Commencing from The 10th Day of September 2004 and Ending with the 30th Day of June 2012 in Accordance with the Prevalent Practice

In exercise of the powers conferred by section 11C of the Central Excise Act, 1944 (1 of 1944), read with section 83 of the Finance Act, the Central Government hereby directs that the service tax payable on the services provided by an authorised person or sub-broker to the member of a recognised association or a registered association, in relation to a forward contract, shall not be required to be paid in respect of such taxable service on which the service tax was not being levied during the period commencing from the 10th day of Septem…

Supreme Court-NCLT

Supreme Court seeks Centre's response on plea against new Companies Act
·The Supreme Court today sought the Centre's response on a petition seeking to declare as ultra vires of the Constitution some of the provisions of the new Companies Act that aims to create the National Company Law Tribunal (NCLT) and the Appellate Tribunal.
·A bench headed by Justice A K Patnaik issued notice for January 27 to ministries of Law and Corporate Affairs on the petition filed Madras Bar Association which also sought to strike down provisions of the new Act "designed to provide post retirement employment to numerous civil servants with the ostensible purpose of creating a specialised tribunal dealing with corporate laws".
·The petition said the provisions of the new Act are "unconstitutional" and violative of the basic structure of the Constitution. "The present tribunal is also structured in such a way that no advocate or chartered accountant would be willing to be select…

Case Law on Reverse Charge

Service Tax - Reverse Charge liability paid by Service Provider, should not be demanded again from Service Recipient
We are sharing with you an important judgement of the Hon’ble Mumbai CESTAT, in the case of Umasons Auto Compo Pvt. Ltd. Vs. Commissioner of Central Excise & Customs, Aurangabad [2014 - TIOL – 126 – CESTAT - MUM] on following issue:

Issue: Whether Service Tax can be demanded again from the Service Recipient under reverse charge, where the same has been paid by the Service Provider and accepted by the Department?
Facts & Background:
M/s Umasons Auto Compo Pvt. Ltd. (“the Appellant” or “the assessee”) was receiving Goods Transport Agency (“GTA”) service from GTA service provider for which they were paying Service Tax to the provider of GTA service. The provider of GTA service deposited the amount of Service Tax to the Department, which was duly accepted by them. Subsequently, the Appellant has availed Cenvat credit of the amount of Service Tax so paid …

CBDT Circular On Extension Of Due Date For Filing Refund Claims

CBDT Circular On Extension Of Due Date For Filing Refund Claims February 11th, 2014 The CBDT has issued Circuar 04/2014 dated 10.02.2014 pointing out that a large number of returns have become non-est as ITR-V was not furnished within the due date. As a result the refund claims have not been processed. In order to mitigate the hardships of taxpayers pertaining to non-receipt of tax refunds, the CBDT has extended u/s 119(2)(a) the date for filing ITR-V for AYs 2009-10, 2010-11 and 2011-12 to 31.03.2014. The time-frame under the second proviso to s. 143(1) for issuing the Intimation has been extended to 6 months from the end of the month in which ITR-V is received.

Tax Audit Limit Increased to 60

Tax Audit Limit Increased From 45 to 60 for audits conducted during the financial year 2014-15 and onwards. - (11-02-2014)
In view of the enhancement of professional competence of members to perform quality services in an IT-enabled environment, the Council of the Institute at its 331st meeting held from 10th to 12th February, 2014 has decided to increase the "specified number of tax audit assignments" for practicing Chartered Accountants, as an individual or as a partner in a firm , from 45 to 60. The said limit will be effective for the audits conducted during the financial year 2014-15 and onwards. Accordingly, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008 stands amended from 1.4.2014 as under:-

In the Council General Guidelines, 2008, the Council Guidelines No.1-CA(7)/02/2008, dated 8th August,2008, in Chapter VI "Tax Audit assignments under Section 44AB of the Income-tax Act, 1961 ", in Explanation given in Para 6.1, in sub-pa…

AP High Court grants Stays on Audit by CAG of private Company

AP High Court grants Stays on Audit by CAG of private CompanyPRAYER – to issue a writ order or direction more particularly one nature of Writ of Mandamus declaring the impugned letter dated 09.07.2013 of the 3rd respondent proposing the visit of the officers of the 1st respondent to petitioner premises is highly illegal, improper, unjust, arbitrary, violation of principles of natural justice and violation of fundamental rights and to pass.HIGH COURT OF ANDHRA PRADESH AT HYDERABADWPMP.NO:26799 of  2013INWP.NO:21872 of   2013M/s. Aditya Housing & Infrastructure Development Company Pvt LtdV/s.1   The Comptroller & Auditor General of India, New Delhi
2   TheAccountantGeneral (Commercial and Receipt Audit), Saifabad,Andhra Pradesh, Hyderabad.
3   The Assistant Audit Officer, RACE (Head Quarters) O/o.theAccountant     General (C&RA), Saifabad, Hyderabad STAY ORDERPetition under Section 151 of C.P.C. praying that in the circumstances stated in the affidavit filed in th…

Change in Definition of "Governmental Authority"

Change in Definition of “Governmental Authority”
Ministry of Finance amends definition of 'governmental authority' under Mega Exemption Notification No. 25/2012-ST dated June 20, 2012; As per amendment, 'Governmental Authority' means board / authority set up either by Act of Parliament / State Legislature or established by Govt, with 90% equity control; Earlier, such authority was required to be set by Govt and Act of Parliament / State Legislature : Finance Ministry Notification.
By VMVSR


[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India Ministry of Finance (Department of Revenue)
Notification No. 02/2014 - Service Tax
New Delhi, 30thJanuary, 2014
G.S.R....(E).­­- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amend…