Daily Updates and News

INCOME TAX ACT

SECTION 32

DEPRECIATION - RATE/ALLOWANCE OF

Additional depreciation : If plant and machinery eligible for additional depreciation under section 32(1)(iia) is put to use for less than 180 days in said financial year and, therefore, only 50 per cent of additional depreciation can be claimed in that year, balance 50 per cent can be availed in subsequent year - [2016] 66 taxmann.com 4 (Karnataka)

SECTION 244A

REFUNDS – INTEREST ON

Where TDS u/s 195 becomes refundable to resident deductor on account on non-resident payee waiving the payment and the resident deductor delays filing the refund application to the Department(files it 18 months after the date of waiver by non-resident), he will be entitled to interest on refund u/s 244-A only from the date of filing the refund claim only and not from date of deposit of TDS as law favours the vigilant only and not those who slumber and Department cannot be made liable for interest for any period prior to the date on which facts giving rise to refund are brought to the Department's notice - [2016] 66 taxmann.com 50 (Bombay)

CST & VAT

SECTION 5 OF KARNATAKA VALUE ADDED TAX ACT, 2003

TAX, IMPOSITION OF – EXEMPTION

Procedure for grant of exemption had undergone a sea change after 1.4.2005 and condition of ineligibility of unit, if it collects tax, had been done away with - [2016] 66 taxmann.com 5 (Karnataka)

STATUTES

CORPORATE LAWS

Settlement of Export/Import transactions in currencies not having a Direct Exchange Rate - A.P. (DIR SERIES 2015-16) CIRCULAR NO.42, DATED 4-2-2016

INDIRECT TAX LAWS (ST/CE. & CUS./CST & VAT)

Cenvat Credit (Second Amendment) Rules, 2016 – Amendment in Rules 2 and 3 - NOTIFICATION NO.2/2016-C.E. (N.T.), DATED 3-2-2016

Section 5A of the Central Excise Act, 1944 - Power to grant exemption from duty of excise - Omnibus general exemption to goods specified in Chapters 1 to 98 of Tariff – Refund of excise duty on purchase of cars by physically handicapped persons - CIRCULAR NO.1015/3/2016-CX, DATED 3-2-2016 Thanks & Regards, Meetesh Shiroya