Taxation - Corporate Law Reporter

Amendment in Central Excise rules – insertion of new entries

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. 16/2013-Central Excise New Delhi, the 8th May, 2013 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of theCentral Excise Act, 1944 (1 of 1944), the Central… Read More

Amendment of Service Tax Rules – substitution of entries

[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.09/2013 - Service Tax New Delhi, the 8th May, 2013 G.S.R....(E). In exercise of the powers conferred by sub-section (1) of section 93 of theFinance Act, 1994 (32 of 1994), the Central Government,… Read More

Taxability of goods involved in Horticulture contracts

IN THE OFFICE OF COMMISSIONER DEPARTMENT OF TRADE AND TAXES GOVERNMENT OF N.C.T. OF DELHI VYAPAR BHAWAN, NEW DELHI No.180/CDVAT/2007/Review/111-116 M/s Shreejee Peekay International, 101, CSC, DDA Market, Pushpanjali, Delhi-110092 ORDER Dated:25-4-2013 Present for the Applicant : None Present for the Department : Sh. T.C. Sharma, Departmental Representative During the course of training of staff, … Read More

Rate of tax on Patang Charkhi, Patang Dor & Patang Manjha

IN THE OFFICE OF COMMISSIONER DEPARTMENT OF TRADE AND TAXES GOVERNMENT OF N.C.T. OF DELHI VYAPAR BHAWAN, NEW DELHI No.328/CDVAT/2013/104 Dated: 25-04-2013 Hathkargha Laghu Patang Udyog Samiti (Regd.), 1902, Bazar Lal Kuan, Delhi-110006 ORDER Present for the Applicant : Sh. R.S. Negi, Advocate Present for the Department : Sh. T.C. Sharma, Departmental Representative The above named applicant… Read More

Delhi VAT – Embassy Exemption on purchases

(TO BE PUBLISHED IN PART IV OF THE DELHI GAZETTE EXTRAORDINARY) GOVERNMENT OF NATIONA CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE & TAXES VYAPAR BHAWAN : I.P.ESTATE: NEW DELHI -110 002 No.F.5(54)/Policy-II/VAT/2012-13/149-161 Dated:06/05/2013 NOTIFICATION No.F.5(54)/Policy-II/VAT/2012-13/ : WHEREAS the Ministry of External Affairs, Government of India, in accordance with the principle of reciprocity have requested the Government of… Read More

Section 144C(8) entitles DRP to enhance disallowance by questioning existence of transaction

CLR Editorial Notes: In this case, the assessee had entered into an international transactions with its Associated Enterprise by way of payment of management fees, reimbursement of tender cost and payment of R&D expenses and had claimed that the transactions were done at Arms Length. The Transfer Pricing Officer & Assesing Officer did not dispute… Read More

Income received from rentals from business centre is to be considered a business income

CLR Editorial Notes: This case refers to an appeal filed by the assessee, which was directed against an order passed by Commissioner (Appeals)-V, Mumbai, for the quantum of assessment passed under section 143(3) of the Income Tax Act, 1961 (for short the Act) for assessment year 2007-08. The appeal was filed on the following grounds:- The CIT(A) erred in confirming the… Read More

Foreign Associate Enterprise cannot be the tested party & Transfer pricing can exceed overall group profits

CLR Editorial Notes: The Tribunal had to consider the following important transfer pricing issues in this case: (i) whether the foreign Associated Enterprise can be taken as as the tested party & if the sale price received by the foreign AEs from the services ultimately sold to customers is equal to that charged by the… Read More

“Ignorance of law” not cause enough for failure to pay service tax

CLR Editorial Notes: This appeal was filed by the owner of a Hotel, who was sent a show-cause notice that demanded an amount in service tax from the assessee for the period from September 2004 to December 2006 in respect of outdoor catering service. On a perusal of the records, it was found that the appellant was… Read More

Amount transferred as inheritance to beneficiary as per a Will, is not considered income

CLR Editorial Notes: This case refers to an appeal made by the Revenue Department directed against an order passed by the Income Tax Appellate Tribunal pertaining to an assessment done in the year 2006-07. The appeal said that the CIT (A) erred in law and on facts in deleting the additional tax in the assessment on account of… Read More

Govt approves “The Institute of Research & Development” in the category of ‘University, College or Other Institution’

NOTIFICATION NO. 33/2013 DATED: 29/04/2013 It is hereby notified for general information that "The Institute of Research & Development" under Gujarat Forensic Sciences University, Gandhi Nagar, (PAN-AAALG1981A) has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E of the Income-tax Rules,… Read More

“Comparability” & “tolerance band” adjustments u/s 92C – Important Principles Explained

CLR Editorial Notes: The Tribunal had to consider the following transfer pricing issues: (i) whether the use of multi-year data for determining ALP is permissible? (ii) Whether +/-5% adjustment is a standard deduction? (iii) Whether companies with minor differences can be treated as non-comparable? (iv) Whether a company with turnover 20 times that of the assessee can be said to be comparable?… Read More

Turnover filter & comparisons – Important principles explained

CLR Editorial Notes: The Tribunal had to consider the following important transfer pricing issues: (i) whether a one-time and extraordinary item of expenditure (ESOP cost) debited to the assessee™s P&L A/c has to be excluded while comparing the margins, (ii) whether for the purpose of comparison of margins, the consolidated results of comparables having profit… Read More