Daily Updates and News

INCOME TAX ACT

DEDUCTION OF TAX AT SOURCE - COMPENSATION FOR ACQUISITION OF PROPERTY

Conditions precedent : Where payment for purchase of immovable property was made before introduction of section 194LA mandating TDS on such payment, sale certificate presented for registration after introduction of section 194LA was required to be registered without proof of TDS - [2016] 66 taxmann.com 279 (Karnataka)

SECTION 222

COLLECTION OF TAX AT SOURCE - CERTIFICATE PROCEEDINGS

Application to set aside sale : Where in tax recovery proceeding, subsequent to auction, respondent debtors deposited a major portion of amount specified in proclamation of sale within prescribed period for setting aside sale instead of depositing entire amount as specified in rule 60 of Second Schedule to IT Act, 1961, within prescribed period but deposited thereafter, sale could not be set aside - [2016] 66 taxmann.com 272 (Gujarat)

SECTION 244A

REFUNDS - INTEREST ON

Rectification of mistakes : Interest allowed to assessee under section 244A(1)(b) on refund of excess payment on self assessment of tax could not be withdrawn under section 154 as Explanation to section 244A(1)(b) does not bar payment of interest upon refund of excess payment on self assessment - [2016] 66 taxmann.com 276 (Calcutta)

NEGOTIABLE INSTRUMENTS ACT, 1881

SECTION 138

DISHONOUR OF CHEQUE FOR INSUFFICIENCY ETC., OF FUNDS IN ACCOUNT

For maintaining prosecution against a partner under section 141, arraigning of partnership firm as an accused is imperative - [2016] 66 taxmann.com 328 (Bombay)

SERVICE TAX

SECTION 65(105)(zzzza)

TAXABLE SERVICES - WORKS CONTRACT SERVICES

Where assessee has paid service tax on full contract price of a works contract and availed credit of inputs and services and there is no revenue loss to department, department cannot seek to deny credit relying upon valuation rule 2A - [2016] 66 taxmann.com 329 (Bombay)

CENTRAL EXCISE ACT

APPEALS - ORDERS OF - APPELLATE TRIBUNAL

If there was sufficient cause for assessee's non-appearance, then, assessee may file an application for recall of ex parte order passed by Tribunal on merits - [2016] 66 taxmann.com 290 (Allahabad)

CENVAT CREDIT RULES

RULE 3

CENVAT CREDIT - GENERAL

Where, for period prior to 1-4-2011, Tribunal directed credit reversal on 'full sales value' of trading activity observing that formula introduced from 1-4-2011 was intended to encourage trading vis-à-vis manufacturing, High Court set aside said observations and directed Tribunal to decide matter afresh - [2016] 66 taxmann.com 332 (Bombay)

STATUTES

DIRECT TAX LAWS

Income-tax (Third Amendment) Rules, 2016 – Substitution of Rule 45 and Form No.35 - NOTIFICATION NO. SO 637(E) [NO.11/2016 (F.NO.149/150/2015-TPL)], DATED 1-3-2016

Clarification about changes made in tax treatment for Recognised Provident Fund & NPS - PRESS NOTE, DATED 1-3-2016

Section 45, read with section 28(i), of the Income-tax Act, 1961 – Capital Gains, chargeable as – Issue of taxability of surplus on sale of shares and securities – Capital Gains or Business Income – Instructions in order to reduce litigation - CIRCULAR NO.6/2016 [F.NO.225/12/2016-ITA-II], DATED 29-2-2016

Section 194C, read with section 194J, of the Income-tax Act, 1961 – Deduction of tax at source - Contractors/ Sub-contractors, payments to - Tax Deduction at Source (TDS) on payments by broadcasters or television channels to production houses for production of content or programme for telecasting - CIRCULAR NO.4/2016 [F.NO.275/07/2016-IT(B)], DATED 29-2-2016

Section 220 of the Income-tax Act, 1961 – Collection and Recovery of tax - When tax payable and when assessee deemed in default - Amendment of Instruction No.1914, Dated 21-3-1996 to provide for guidelines for stay of demand at first appeal stage - OFFICE MEMORANDUM [F.NO.404/72/93-ITCC], DATED 29-2-2014

CORPORATE LAWS

Master Circular – Basel III capital regulations – Revision - CIRCULAR DBR.NO.BP.BC.83/21.06.201/2015-16, DATED 1-3-2016

Accepted and implemented recommendations of TARC (Relating to both CBDT and CBEC) - PRESS RELEASE, DATED 1-3-2016

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

Central Excise Act, 1944 - Certificate evidencing payment of Central Excise Duty – Benefit of Circular No.620/11/2002-CX, Dated 20-2-2002 Extended to entire Industry as a matter of trade facilitation - CIRCULAR NO.1017/5/2016-CX, DATED 29-2-2016

Withdrawal from prosecution in Central Excise Cases older than 15 Years involving duty less THAN Rupees Five Lakhs - CIRCULAR NO.1018/6/2016-CX, DATED 29-2-2016

Change in Rate of Interest on Goods Warehoused For Export, When Cleared to DTA - CIRCULAR NO.1019/7/2016-CX, DATED 29-2-2016

Registration of two or more Premises as one registration in Central Excise - CIRCULAR NO.1016/4/2016-CX, DATED 29-2-2016 Thanks & Regards, Meetesh Shiroya