11 June, 2015
To come within the ambit of transfer pricing, there has to be an international transaction. The two requirements of international transaction are that there must be a transaction between associated enterprises and either or both parties should be non-residents (prior to the amendment by Finance Act, 2014). In an interesting decision [Novo ...
22 May, 2015
Does the Income Tax Appellate Tribunal (ITAT) have power to extend stay beyond 365 days? The Delhi High Court in Pepsi Foods Pvt. Ltd v. ACIT, WP(C )1334/2015 decided on 19-5-2015 held that when the delay in disposing of the appeal is not attributable to the assessee, the Tribunal has the power to grant extension of stay beyond 365 days.
22nd May, 2015
Service Tax levied in India on all services, except a few as listed in the negative list of services, will be applicable at the rate of 14%, instead of 12%, with effect from 1st of June, 2015. However, both the Education Cesses, i.e. Education Cess and Secondary & Higher Education Cess, have been abolished, from such date in respect of all the services.
18 May, 2015
Finance Bill, 2015 has received President’s Assent and Finance Act, 2015 (20 of 2015) is in force from 14 May, 2015.
Major amendments include amendment to Section 28 of the Customs Act, 1962 to provide for non-imposition of penalty if duty with interest is paid within 30 days of receipt of show cause notice. The new provisions, relevant in case o...
12th July, 2013
The Kerala High Court has, on 3-7-2013, struck down the levy of service tax on restaurants and on service of providing short term accommodation. It was held that the levy is beyond the legislative competence of the Indian Parliament, as the sub-clauses (zzzzv) and (zzzzw) to Clause 105 of Section 65 of the Finance Act, 1994 as amended by the Finance Act 2011 are covered by Ent...
15th May, 2013
An amnesty scheme ‘Voluntary Compliance Encouragement Scheme’ has become operational from 10th May, 2013 consequent to issuance of related rules. The Central Board of Excise & Customs has issued Notification No. 10/2013-S.T., dated 13-5-2013 framing the Service Tax Voluntary Compliance Encouragement Rules, 2013.
No penalty or prosecution
The scheme, part of Budget 2013 p...
By Rajat Juneja
Multi-national enterprises (MNEs) do make monthly provision for various expenses in their ERP system at the end of each month. This might be a nearer approximation of the expenditure to be incurred. It is a method of generating a debit entry in the accounting system for an expendi...
By Dipa Devani
The term ‘service’ is defined under Section 65(44) of the Finance Act, 1994 (“the Finance Act”) as under:
Service means any activity carried out by a person for another for consideration, and includes a declared service, but shall not include-
(a) An activity which constitute merely-
(i) A transfer of title in goods or immovable property, by way of sale, gift or in an...
By Chaitanya Bhatt
Section 66E(b) of the Finance Act, 1994 enacted pursuant to the introduction of the negative list regime with effect from 1-7-2012 reads as under:
“SECTION 66E. Declared services. — The following shall constitute declared services, namely :—
(b) construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sal...
By Shweta Kathuria
Rule 7 of the Cenvat Credit Rules [‘Credit Rules’ for short] relating to distribution of credit by an Input Service Distributor (“ISD”) has always been a problem area of the Credit Rules. Ever since the inception of this concept, it has always been surrounded by doubts and confusions. To understand the issues, let us first understand the concept of ISD. This concept was fir...
By Dr. G. Gokul Kishore
As the D-day nears, the voices get shriller. Most of them, obviously, are interest groups who are recognised as key players in policy-making process. The prayers and petitions echo the stereotypes one has been hearing for many years. Tax-payers with evergreen agenda of reduction in rates, industry with mercurial entrepreneurship pleading for sops and support from the S...
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