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Home e-Newsletters Index Year 2016 April Day 16 - Saturday

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TMI Tax Updates - e-Newsletter
April 16, 2016

Case Laws in this Newsletter:

Income Tax Customs Service Tax Central Excise CST, VAT & Sales Tax Wealth tax Indian Laws



Highlights / Catch Notes

    Income Tax

  • No reason to denial of claim u/s 80IC on the ground of filing the return belatedly - AT

  • Computing MAT liability under the provisions of sec.115JB, deduction u/s 80HHC shall be allowed after setting off losses suffered on export of trading goods - AT

  • Degree of burden under section 68 upon the assessee is to prima facie prove the nature of credit and then source which has to be proved by showing the identity, creditworthiness and genuineness of the transaction - AT

  • TDS credit - there is no requirement in the law that the assessee itself should execute the works and it is not possible for any person, leave alone, a legal entity like a consortium, to physically execute mammoth contracts running into cores on its own - AT

  • Where the assessee has own and borrowed funds, a presumption can be made that advances for non-business purposes have been made out of the own funds and that the borrowed funds have not been used for this purpose - Deduction u/s 36(1)(iii)allowed - AT

  • No justification to disallow the claim in respect of long term capital gain merely on the basis of information received from DDIT - AT

  • If a person pays commission to the non-resident no TDS deduced from the payment - AT

  • Assessee cannot be held to be liable to deduct tax at source from the Pay Channel Charges - AT

  • Amounts received by the assessee from various producers towards advances cannot be assessed as income of the assessee. - AT

  • Customs

  • Once the Department had agreed to a second test report without reserving any right to rely upon the first test report, it is not open to the Department to contend that the second test report ought to be dumped - HC

  • Indian Laws

  • Person who commits an offence under Section 138 of the N.I. Act is a company, the company as well as other person in charge of or responsible to the company for the conduct of the business of the company at the time of commission of the offence is deemed to be guilty of the offence - SC

  • Wealth-tax

  • Warehouse utilized for business purposes by the assessee hence exempt u/s 2(ea)(i)(3) of the Wealth Tax Act - AT

  • Service Tax

  • On basis of which documents can CENVAT Credit be availed in respect of services provided by Government or a local authority. - CENVAT Credit may be availed on the basis of challan evidencing payment of Service Tax by the Service recipient

  • When and how will the allottee of the right to use natural resource be entitled to take CENVAT Credit of Service Tax paid for such assignment of right. - See para 14 of the circular

  • Whether Service Tax is payable on the interest charged by Government or a local authority where the payment for assignment of natural resources is allowed to be made under deferred payment option. - Yes

  • Whether Service Tax is leviable on spectrum user charges and license fee payable after 1.4.2016 for the year 2015-16. - the same have been specifically exempted

  • How to determine the date on which payment in respect of any service provided by Government or a local authority becomes due for determination of point of taxation - The date on which such payment becomes due shall be determined on the basis of invoice, bill, challan, or any other document issued by the Government or a local authority demanding such payment

  • When does the liability to pay Service Tax arise upon assignment of right to use natural resource where the payment of auction price is made in 10 (or any number of) yearly (or periodic) instalments under deferred payment option for rights assigned after 1.4.2016.? - the date on which any payment, including deferred payments, in respect of such assignment becomes due or when such payment is made, whichever is earlier.

  • Whether Service Tax is payable on yearly installments due after 1.4.2016 in respect of spectrum assigned before 1.4.2016? - Exempted with specific conditions - The exemption shall apply only to Service Tax payable on one time charge, payable in full upfront or in installments, for assignment of right to use any natural resource and not to any periodic payment required to be made by the assignee, such as Spectrum User Charges, license fee in respect of spectrum, or monthly payments with respect to the coal extracted from the coal mine or royalty payable on extracted coal which shall be taxable.

  • Services provided by Government, a local authority or a governmental authority by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution shall be exempted.

  • Services in the nature of change of land use, commercial building approval, utility services provided by Government or a local authority shall be exempted.

  • Services in the nature of allocation of natural resources by Government or a local authority to individual farmers shall be exempted - Such allocations/auctions to categories of persons other than individual farmers would be leviable to Service Tax.

  • Services provided by Government or a local authority where the gross amount charged for such service does not exceed ₹ 5000/-have been exempted

  • Services provided by the Government or a local authority by way of (i) registration required under the law; - (ii) testing, , calibration, safety check or certification relating to protection or safety of workers, consumers or public at large, required under the law, have been exempted

  • Services provided in lieu of fee charged by Government or a local authority shall be liable to service tax (with certain exceptions)

  • Fines and liquidated damages payable to Government or a local authority for non-performance of contract entered into with Government or local authority have been exempted from service tax

  • Services provided by Government or a local authority to business entities - fines and penalty chargeable by Government or a local authority imposed for violation of a statute, bye-laws, rules or regulations are not leviable to Service Tax.

  • Services provided by Government or a local authority - Taxes, cesses or duties levied are not consideration for any particular service as such and hence not leviable to Service Tax.

  • Services provided by Government or a local authority to another Government or a local authority shall be exempted

  • Services provided by Government or a local authority to an individual who may be carrying out a profession or business. - Services by way of grant of passport, visa, driving license, birth or death certificates have been exempted - Circular

  • Commissioner (A) has no power to remand the matter back to Original Authority for de-novo adjudication in terms of Section 35A(3) of Central Excise Act, 1944 w.e.f. 11.05.2011 - AT

  • BAS - Commission received - Notional surplus earned from purchases and sale of space and not by acting for a client who has space or slot on a vessel comes under principal-to-principal transactions, not addressable u/s 65(19) - AT

  • Issuance of two show cause notice for the same period is not permissible in law as there cannot be double assessment for the period - HC

  • Notice must contain particulars of facts and circumstance in support of an allegation of willfull suppression of material facts with intent to evade payment of service tax as mere ipse dixit is not sufficient - Extended period of limitation cannot be invoked - HC

  • Maintainability of Writ petition - as per law an authority cannot confer on itself jurisdiction to do a particular thing by wrongly assuming the existence of a certain set of facts, existence whereof is a sine qua non for exercise of jurisdiction by such authority - Petition non maintainable - HC

  • Central Excise

  • Classification - Brass granules - If copper predominates by weight, the brass granules has to be treated as copper granules - AT

  • Service tax paid on Group Personal Accident Insurance (GPA) policy, General Insurance, Repair and Maintenance of Vehicles used for providing the taxable service, Vehicle Insurance Charges, Worksmen Compensation Insurance (WC) Policy and Outdoor catering service are entitled for Cenvat credit - AT

  • Cenvat credit - Goods not received in the factory - As per Rule, the onus of establishing that the goods have been received in the factory is on the person who has taken the credit - AT

  • VAT

  • Benefit of exemption notification - Essential requirement for claiming exemption under N/N FD.11.CET.93(3) dated 31.03.1993, a unit should fall within the ambit of “new industrial unit” - SC


News


Case Laws:

  • Income Tax

  • 2016 (4) TMI 572
  • 2016 (4) TMI 571
  • 2016 (4) TMI 570
  • 2016 (4) TMI 569
  • 2016 (4) TMI 568
  • 2016 (4) TMI 567
  • 2016 (4) TMI 566
  • 2016 (4) TMI 565
  • 2016 (4) TMI 564
  • 2016 (4) TMI 563
  • 2016 (4) TMI 562
  • 2016 (4) TMI 561
  • 2016 (4) TMI 560
  • 2016 (4) TMI 559
  • 2016 (4) TMI 558
  • 2016 (4) TMI 557
  • 2016 (4) TMI 556
  • 2016 (4) TMI 555
  • 2016 (4) TMI 554
  • 2016 (4) TMI 553
  • 2016 (4) TMI 552
  • 2016 (4) TMI 551
  • Customs

  • 2016 (4) TMI 539
  • 2016 (4) TMI 538
  • 2016 (4) TMI 537
  • 2016 (4) TMI 536
  • Service Tax

  • 2016 (4) TMI 549
  • 2016 (4) TMI 548
  • 2016 (4) TMI 547
  • 2016 (4) TMI 546
  • 2016 (4) TMI 545
  • Central Excise

  • 2016 (4) TMI 544
  • 2016 (4) TMI 543
  • 2016 (4) TMI 542
  • 2016 (4) TMI 541
  • 2016 (4) TMI 540
  • CST, VAT & Sales Tax

  • 2016 (4) TMI 535
  • 2016 (4) TMI 534
  • 2016 (4) TMI 533
  • Wealth tax

  • 2016 (4) TMI 550
  • Indian Laws

  • 2016 (4) TMI 532
 

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