| INCOME TAX ACT |
| SECTION 2(47) |
| CAPITAL GAINS – TRANSFER |
Immovable property : Where
agreement to sale was entered in 2001 and part consideration was
received and later sale deed was executed in April 2003, transfer of
property could be said to have taken place in 2001 -[2016] 65 taxmann.com 142 (Allahabad)
|
| SECTION 4 |
| INCOME - CHARGEABLE AS |
Compensation : Compensation
paid to assessee, a journalist, by a foreign publisher upon termination
of contract for performance of authorship/professional services for a
continuous period of 23 years, was to be regarded as capital receipt not
liable to tax - [2016] 65 taxmann.com 153 (Delhi)
|
| SECTION 12AA |
| CHARITABLE OR RELIGIOUS TRUST - REGISTRATION PROCEDURE |
Cancellation of : Commissioner
is empowered to cancel registration granted to a society under section
12A from assessment year 2011-12 onwards, he cannot assume such power
for earlier assessment years - [2016] 65 taxmann.com 239 (Chandigarh - Trib.)
|
| SECTION 55 |
| CAPITAL GAINS - COST OF ACQUISITION |
Trademark : Where
assessee, during assessment year 1996-97, in terms of a settlement
agreement entered into between it and an international company 'S', had
transferred its trademark to 'S' for certain consideration, transfer of
trademark was liable to tax under section 55(2)(a) only from 1-4-2002
and not in assessment year in question -[2016] 65 taxmann.com 253 (Karnataka)
|
| SECTION 92C |
| TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE |
Comparables and adjustments/Adjustments - Administrative expenses : Where
in support of genuineness of payments of administrative/corporate
charges made to AE, assessee brought on record some additional evidence
in course of appellate proceedings, matter was to be remanded back for
disposal afresh in light of evidence so produced - [2016] 65 taxmann.com 264 (Delhi - Trib.)
|
Comparables and adjustments/Comparables – General : In
case of assessee rendering BPO services to its AE, companies having
functional difference, failing to satisfy employee cost filter and
company in whose case extraordinary event of amalgamation took place,
could not be accepted as valid comparables while determining ALP. - [2016] 65 taxmann.com 258 (Bangalore - Trib.)
|
| SECTION 201 |
| DEDUCTION OF TAX AT SOURCE - CONSEQUENCE OF FAILURE TO DEDUCT OR PAY |
Assessee-in-default : Where
recipient, to whom assessee-bank paid interest without deducting tax at
source, had shown such interest income in its return of income but had
not paid tax thereon claiming same to be exempt, assessee could not be
treated as assessee-in-default - [2016] 65 taxmann.com 219 (Panaji - Trib.)
|
| SECTION 245C |
| SETTLEMENT COMMISSION - APPLICATION FOR SETTLEMENT OF CASES |
Validity of : Where
assessee had not paid self assessment tax in return of income under
sections 153A and 143(2), application for settlement was not valid - [2016] 65 taxmann.com 263 (Madhya Pradesh)
|
| COMPANIES ACT |
| SECTION 456 |
| WINDING UP - CUSTODY OF COMPANY’S PROPERTY |
Powers
under Companies Act cannot be wielded by Company Judge to interfere
with proceedings by a secured creditor who has opted to stay outside
winding up process to realize its secured interests as per provisions of
SARFAESI Act - [2015] 64 taxmann.com 394 (SC)
|
| SECTION 167 OF COMPANIES ACT, 2013 |
| DIRECTOR - VACATION OF OFFICE BY |
Section
167(3) cannot be interpreted as entitling each and every promoter of a
company, upon contingencies mentioned therein having occurred, to
appoint a Director; appointment has to be made by following procedure
elsewhere provided in statute for appointment of a Director - [2016] 65 taxmann.com 252 (Delhi)
|
| SERVICE TAX |
| SECTION 65(12) |
| TAXABLE SERVICES - BANKING AND OTHER FINANCIAL SERVICES |
Processing
fee paid to foreign banks for arranging External Commercial Borrowings,
is liable to service tax under reverse charge under Banking and other
Financial Services - [2016] 65 taxmann.com 203 (Chennai - CESTAT)
|
| SECTION 65B(44) |
| SERVICE - EXCLUSION OF SERVICES PROVIDED BY AN EMPLOYEE TO EMPLOYER |
Perquisite
extended by employer by way of car provided for personal and official
use to employees, against payment equal to cost incurred by employer,
does not amount to service under section 65B(44)(b), as it is in course
of employment and therefore, excluded from scope of service - [2016] 65 taxmann.com 259 (AAR - New Delhi)
|
| CENTRAL EXCISE ACT |
| SECTION 3A |
| CHARGE/LEVY - EXCISE DUTY BASED ON PRODUCTION CAPACITY |
In
case of production capacity based duty, intimation of temporary
stoppage of production may be sent via Fax and abatement for
non-production cannot be denied on ground that Fax report is not clear
- [2016] 65 taxmann.com 262 (New Delhi - CESTAT)
|
| SECTION 4A |
| VALUATION UNDER CENTRAL EXCISE - RETAIL SALE PRICE/MRP BASED |
In
case of promo packs where excess quantity is supplied in same pack,
duty is payable based on MRP declared and department cannot seek to
re-determine MRP pro rata based on quantity when assessee has not
recovered anything beyond price charged - [2016] 65 taxmann.com 261 (Kolkata - CESTAT)
|
| SECTION 11 |
| LEVY AND COLLECTION OF DUTY - RECOVERY OF SUMS DUE TO GOVERNMENT |
Excise dues couldn't be recovered from buyer if he hadn't purchased a property from tax defaulter - [2016] 65 taxmann.com 256 (Mumbai - CESTAT)
|
| CENVAT CREDIT RULES |
| RULE 2(l) |
| CENVAT CREDIT - INPUT SERVICE - GARDENING SERVICE |
When
assessee-manufacturer of cement was required to plant trees to prevent
pollution in its factory area and paid service tax for such maintenance,
it was entitled to input service credit - [2016] 65 taxmann.com 257 (Chennai - CESTAT)
|
| STATUTES |
| DIRECT TAX LAWS |
Section
90 of the Income-tax Act, 1961 - Double Taxation Agreement - Resolution
of more than 100 Cases of Transfer Pricing disputes with USA under
Mutual Agreement Procedure (MAP) - PRESS RELEASE, DATED 28-1-2016
|
| CORPORATE LAWS |
FEM (Foreign Currency Accounts by A Person Resident in India) Regulations, 2015 - NOTIFICATION [NO.FEMA 10(R)/2015-RB]/GSR 96(E), DATED 21-1-2016
|
FEM (Acquisition and Transfer of Immovable Property Outside India) Regulations, 2015 - NOTIFICATION [NO.FEMA 7(R)/2015-RB]/GSR 95(E), DATED 21-1-2016
Thanks & Regards,
Meetesh Shiroya
|
Friday, 29 January 2016
Daily Updates and News
Daily Updates and News
Direct Taxes
http://www.business-standard.
FDI quality improves substantially with PM Narendra Modi's Make in India push
http://economictimes.
http://economictimes.
I-T Department resolves over 100 transfer pricing cases of US companies
Indian
tax authorities have resolved more than 100 cases of transfer prices
with their US counterpart, involving companies from IT and ITeS sectors,
in a move expected to give a boost to investment flows into the
country.The Central Board of Direct Taxes (CBDT) has said resolution of
such issues follows the framework agreement signed with the US revenue
authorities in January last year as part of the Mutual Agreement
Procedure (MAP). The framework will cover about 200 transfer pricing
[….] Read more at:
200 SEZs likely to be exempt from 18.5% MAT
Enterprises
operating from over 200 Special Economic Zones (SEZs) in the country
are likely to be exempted from the minimum alternative tax (MAT) of 18.5
per cent on their book profits. The Union commerce ministry is
understood to have made a strong case for removing MAT on SEZ units on
the ground that giving this tax benefit would revive domestic
manufacturing and provide the much-needed boost to exports, declining in
each of the last 13 months. In addition, the commerce ministry has
[….] Read more at:
Indirect Taxes
Government unlikely to heed industry’s demand to cut high-grade iron ore duty
The
government is unlikely to entertain the mineral sector’s plea to cut
export duty on high-grade iron ore to nil from 30% now in the Budget, as
it feels that the important steel-making raw material should be
preserved for future use, even as it might lower export duty on
low-grade ores to zero from 10% as these ores do not find much
application within. The government had, with effect from April last
year, reduced export duty on ore containing less than 58% iron to 10%
from 30% earlier [….] Read more at:
SEBI
Sebi asks NCDEX why it suspended castor seeds futures
The
Securities and Exchange Board of India (Sebi) has asked
National Commodity & Derivatives Exchange (NCDEX) for a full report
explaining why it suspended futures in castor seed, one of the
agriculture-centric exchange’s most liquid contracts. Sebi has asked the
exchange to explain what had happened in castor seed segment and what
actions are being taken. Sebi is also investigating trading in other
agricultural commodities including coriander, said a source. Castor seed
volu [….] Read more at:
Advanced Enzyme Tech files IPO papers with Sebi
Advanced
Enzyme Technologies has filed draft papers with capital markets
regulator Sebi to float an initial public offering. This is the
company's second attempt to hit the capital markets. As per the fresh
draft red herring prospectus (DRHP) filed with capital markets watchdog,
the IPO comprises fresh issue of shares aggregating up to Rs 60 crore
and an offer for sale of up to 44,73,470 scrips by the existing
shareholders. Advanced Enzyme is engaged in the research and
development [….] Read more at:
BSE seeks Sebi nod to proceed with IPO
BSE
Ltd, the country's second-largest exchange in terms of volume, has
written to market regulator Securities and Exchange Board of India
(Sebi) about its proposed initial public offering (IPO). "You are
requested to provide your approval permitting BSE to proceed with the
IPO and listing of BSE's shares on a recognized stock exchange," Nehal
Vora, chief regulatory officer, BSE has written to Sebi in a
communication dated January 22, 2016. The letter comes after Seb [….]
Read more at:
Manufacturing companies utilising less capacity: RBI
Capacity
utilisation recorded a decline in the second quarter of 2015-16 over
the previous quarter and the year-ago quarter, the Reserve Bank of India
(RBI)'s Order Books, Inventories and Capacity Utilisation Survey
(OBICUS) survey of manufacturing companies said. The capacity
utilisation for the second quarter was at 70.6 per cent, against 71.3
per cent in the first quarter and 73.6 per cent in the second quarter of
financial year 2014-15. Average new orders witnessed a marginal
[….] Read more at:
PC Jeweller gains on RBI nod to hike FII limit to 49%
Shares
of PC Jeweller was up nearly 2% at Rs 423 on the Bombay Stock Exchange
after the company said that the Reserve Bank of India has approved
increase in investment limit by foreign institutional investors/foreign
portfolio investors. The RBI has informed that FIIs and registered FPIs
can now invest up to 49% of the paid-up capital of the company under the
portfolio investment scheme, the company said in a release. The stock
opened at Rs 428 and touched a high of Rs 433. At 12:25pm [….] Read more at:
RBI sets rupee reference rate at 67.87 against US dollar
The
Reserve Bank of India today fixed the reference rate of the rupee at
67.87 against the US dollar and 74.06 for the euro. These rates were
67.08 and 74.06, respectively, yesterday. According to an RBI
statement, the exchange rates for the pound and the yen against the
rupee were quoted at 97.75 and 56.26 per 100 yens, respectively, based
on reference rates for the dollar and cross-currency quotes at noon. The SDR-rupee rate will be based on this rate, the statement added. [….] Read more at:
Government, RBI in talks to allow more free ATM transactions
The
government is in discussions with the Reserve Bank of India (RBI) to
allow more free ATM transactions for certain types of accounts as part
of its drive to deepen financial inclusion through the spread of
cash-vending machines. Post offices, of which there are about 1.55 lakh
across India, will soon have ATMs. These will be a combination of the
postal department's own machines and third-party ATMs. Right now there
is a restriction on the number of ATM transactions you can do every m
[….] Read more at:
RBI rejects 91-day treasury bids
The Reserve Bank of India (RBI) on Wednesday
chose not to buy anything from the Rs 9,000 crore scheduled to be
raised through 91-day treasury bills, as a cash surplus government did
not want to offer higher interest rate for the short-term money. The
government's cash balance with RBI was at Rs 1.42 lakh crore as on
January 25, much higher than what the government maintains on a regular
basis. However, the higher cash balance has also ensured that banking
liquidity has dried up a [….] Read more at:
Raghuram Rajan seen buying extra $4 billion of India bonds after outflows
Reserve
Bank of India (RBI) governor Raghuram Rajan is seen ramping up bond
purchases as foreigners dumping emerging-market assets push short-term
money rates to the highest since May. The central bank began buying debt
last month after a gap of almost two years and has injected a total of
Rs.20,000 crore via open market operations on 8 December
and 21 January. The RBI will purchase an additional $4 billion of
rupee-denominated notes this quarter, according to the median estimate
[….] Read more at:
Miscellaneous Laws/News
Regulation hurdle delays life insurance product clearances
The
domestic insurance industry is concerned about the slowing speed of
product clearance in the life insurance segment. Market players believe
that around 80-100 products are pending with the Insurance Regulatory
and Development Authority of India (Irdai) since past few months for
their approval. While market players feel that, products should get fast
approval so that it can reach more and more investors, insurance
regulator believes that, delay in clearing proposal might [….] Read
more at:
FDI quality improves substantially with PM Narendra Modi's Make in India push
The
quality of foreign direct investment (FDI) coming into the country has
improved substantially, according to Reserve Bank of India data.Much of
this FDI materialised in the September 2014-November 2015 period after
Prime Minister Narendra Modi launched the Make in India campaign and
bettered portfolio inflows during the preceding 15 months. This is more
than triple the amount of net portfolio inflows of $14.3 billion in the
same period. An analysis of the monthly trend [….] Read more at:
Centre doing a rethink on multi-brand retail FDI
The
government is reviewing its decision to put in abeyance the policy
allowing FDI in multi-brand retail, with most BJP-ruled states
supporting the opening up of the sector, reports fe Bureau in New Delhi.
Senior government functionaries said that in keeping with the policy of
liberalising FDI, multi-brand retailing could also see more FDI flows
soon. The Modi government had retained the previous UPA regime’s
decision allowing foreign retailers to open multi-brand stores with 51%
in its [….] Read more at:
Oil sector contracts to have 10% domestic purchase clause
To promote local manufacturing under the Make in India drive, the government on Wednesday
announced a 10 per cent purchase preference for local content in all
petroleum sector contracts. The tweak in the existing tender guidelines
would aid increasing the share of domestically manufactured components
in projects awarded by firms such as Oil and Natural Gas Corporation
(ONGC) and GAIL. Under the new scheme, separate thresholds for local
content would be pre-define [….] Read more at:
Economy & News
Indian onion exports rise after minimum export price removal
Onion
exports have rose substantially in last one month after the central
government removed export restrictions on the bulb. The country has
exported 1.50 lakh tonne onions during last one month after the minimum
export price (MEP) was removed on December 24.
Removal of MEP has made Indian onion most competitive in the export
market, beating traditional rivals like Pakistan and Egypt and even
China. Indian onion is being exported to the Far East, the Middle East,
Sri Lanka. Ind [….] Read more at:
Commerce Ministry reduces number of documents for import-export code
To
facilitate ease of doing business and lessen paperwork, the Commerce
Ministry has decided to reduce the number of mandatory documents for
taking import-export code to two. Import-Export Code (IEC) is required
for shipments. "Only two documents are required to be uploaded
/submitted along with the digital photograph while applying for IEC,"
the Directorate General of Foreign Trade (DGFT) said in a notification.
Earlier, several documents including complete details of the entity
seeking [….] Read more at:
Anti-dumping duty imposed on Chinese mulberry silk
Government
has imposed $1.85 per kg anti-dumping duty on mulberry raw silk
originating from China to protect domestic industry from cheap inbound
shipments. The government has also extended the anti-dumping duty on
import of melamine from China for five years. According to a
notification, the anti-dumping duty on melamine from China would
continue at $331.10 per tonne. In a separate notification, it imposed an
anti-dumping duty of $1.85 per kg on mulberry raw silk from [….]
Read more at:
Mumbai Port to build passenger jetty at Kanhoji Angre Island
To
promote light house tourism at Kanhoji Angre Island, the government is
building a passenger jetty there to facilitate visitors. "The passenger
jetty being constructed by Mumbai Port Trust at a cost of Rs 16 crore is
a part of the project for development of Kanhoji Angre Island as a
tourist destination," Shipping Ministry said in a statement. Road
Transport, Highways and Shipping Minister Nitin Gadkari had recently
laid the foundation stone for construction of a passenger jetty at
Kanhoji [….] Read more at:
India's 2015-16 wheat output may surpass last year's level
The
country's wheat production in 2015-16 is expected to surpass last
year's level of 88.94 million tonnes on favourable cold weather
conditions despite low acreage, Agriculture Minister Radha Mohan Singh
said today. Though total area sown to wheat this year is slightly lower
than 2014-15 crop year (July-June) but the crop yields are expected to
get a boost as India Meteorological Department (IMD) has forecast stable
weather till March, he said. Last year, wheat output had declined
[….] Read more at:
Thanks & Regards,
Meetesh Shiroya
Thursday, 28 January 2016
Daily Updates and News
| INCOME TAX ACT | |||||||
| SECTION 2(22) | |||||||
| DEEMED DIVIDEND | |||||||
Loans or advances to shareholders : Where
assessee was a shareholder in a company holding 41 per cent of shares
and during year he and his son and daughter had overdrawn certain amount
from said company and Assessing Officer treating said amount as deemed
dividend under section 2(22)(e) added same in income of assessee, since
both son and daughter were not shareholders in company and during year
company got only negative accumulated profits, provisions of section
2(22)(e) could not be invoked - [2016] 65 taxmann.com 255 (Kolkata - Trib.)
| |||||||
| SECTION 28(i) | |||||||
| BUSINESS INCOME - YEAR IN WHICH TAXABLE | |||||||
Upfront payments : Where
assessee-port received non-refundable upfront premium from various
parties for permitting them to develop various facilities such as
docking of ships, loading and unloading of containers on land provided
by it for a period of 30 years, entire amount of premium was to be
brought to tax in assessment year in question itself - [2016] 65 taxmann.com 210 (Bangalore - Trib.)
| |||||||
| SECTION 37(1) | |||||||
| BUSINESS EXPENDITURE - YEAR IN WHICH DEDUCTIBLE | |||||||
Audit fees : Where
assessee made contain provision in its profit and loss account in
respect of accounting and auditing charges, matter was to be remanded
back to Assessing Officer with direction to verify whether assessee was
following practice of recognizing expenditure of audit fee pertaining to
each year irrespective of actual payment and, if yes, then, it should
not be disallowed for year under consideration - [2016] 65 taxmann.com 210 (Bangalore - Trib.)
| |||||||
| SECTION 55 | |||||||
| CAPITAL GAINS - COST OF ACQUISITION | |||||||
Trademark : Where
assessee, during assessment year 1996-97, in terms of a settlement
agreement entered into between it and an international company 'S', had
transferred its trademark to 'S' for certain consideration, transfer of
trademark was liable to tax under section 55(2)(a) only from 1-4-2002
and not in assessment year in question -[2016] 65 taxmann.com 253 (Karnataka)
| |||||||
| SECTION 69A | |||||||
| UNEXPLAINED MONEYS | |||||||
Reopening of assessment : Where
at time of making assessment, assessee disclosed all material facts
relating to income assessable under section 69A, Assessing Officer could
not initiate reassessment proceedings after expiry of four years from
relevant year taking a view that addition under section 69A was deemed
income of assessee and, thus, brought forward business loss and
depreciation could not be set off against said income -[2016] 65 taxmann.com 221 (Madras)
| |||||||
| SECTION 80-IC | |||||||
| DEDUCTION - SPECIAL PROVISION IN RESPECT OF CERTAIN UNDERTAKINGS, OR ENTERPRISES IN CERTAIN SPECIAL CATEGORY STATES | |||||||
Manufacturing : Where
end product is outcome of combination of employment of man and machine
and after raw material goes through various processes, and is known
commercially different article/thing/product, it is a manufacturing
activity entitled for deduction under section 80-IC - [2016] 65 taxmann.com 191 (Mumbai - Trib.)
| |||||||
| SECTION 92C | |||||||
| TRANSFER PRICING - COMPUTATION OF ARMS LENGTH PRICE | |||||||
Where
assessee claimed that copyright infringement settlement expenses paid
to AE was to be allowed as deduction from operating cost of transactions
entered into with said AE, it was to be concluded that unless
expenditure was found to be not relating to normal business operations
of assessee company, it could not be directed to be excluded from
operating cost of assessee. Since all facts relating to issue in dispute
were not on record i.e., whether infringement of copyright was with
regard to international transactions and whether it formed part of
operating expenditure or not, matter was to be remanded back to TPO/AO
for disposal afresh - [2016] 65 taxmann.com 306 (Hyderabad - Trib.)
| |||||||
Comparables and adjustments/Adjustments – Interest : Domestic
prime lending rate would have no applicability and it is LIBOR rate
which has to be considered while determining arm's length interest rate
in respect of an International transaction - [2016] 65 taxmann.com 240 (Hyderabad - Trib.)
| |||||||
Comparables and adjustments/Adjustments - Corporate guarantee : It
would be appropriate to charge corporate guarantee fee at 0.50 per cent
where assessee, through a common facilities agreement in connection
with overseas acquisition of subsidiary companies, had provided
corporate guarantee in favour of its AE - [2016] 65 taxmann.com 240 (Hyderabad - Trib.)
| |||||||
Comparables and adjustments/Adjustments – General : Adjustment
arising out of Arm's Length Price (ALP) has to be restricted to only
International Transactions with Associated Enterprise instead of entire
turnover of assessee - [2016] 65 taxmann.com 155 (Bombay)
| |||||||
Comparables and adjustment/Comparables – Illustrations : A
company, though in almost similar line of business functionally, ceases
to be comparable, because of adoption of a different business model as
per which activities are mostly outsourced - [2016] 65 taxmann.com 241 (Delhi - Trib.)
| |||||||
| SECTION 147 | |||||||
| INCOME ESCAPING ASSESSMENT – GENERAL | |||||||
Computation of limitation period : Proviso
to section 147 does not use expression 'assessment' or 'reassessment'
and, therefore, starting point for period of limitation cannot be date
of assessment or revised assessment or reassessment - [2016] 65 taxmann.com 221 (Madras)
| |||||||
| SECTION 148 | |||||||
| INCOME ESCAPING ASSESSMENT - ISSUE OF NOTICE FOR | |||||||
Recording of reasons : Justification
for reopening of assessment has to be tested only on strength of order
recording reasons for reopening under section 148(2) - [2016] 65 taxmann.com 221 (Madras)
| |||||||
| SECTION 192 | |||||||
| DEDUCTION OF TAX AT SOURCE - SALARY | |||||||
Assessee-employer
deducted TDS as per section 192 in respect of salary of the employees
who failed to furnish their correct PAN. - [2016] 65 taxmann.com 292 (Visakhapatnam - Trib.)
| |||||||
| SECTION 271(1)(c) | |||||||
| PENALTY - FOR CONCEALMENT OF INCOME | |||||||
Estimation of income : Where
Assessing Officer framed assessment of assessee for assessment year
2007-08 under section 144 and after rejecting account books adopted net
profit rate of 8 per cent, which was reduced by Tribunal to 7 per cent,
and in mean time Assessing Officer also levied penalty under section
271(1)(c), since assessee was an existing assessee and it did not file
return for above assessment year and Assessing Officer and Tribunal
adopted different estimates, no penalty under section 271(1)(c) was
leviable upon assessee - [2016] 65 taxmann.com 248 (Chandigarh - Trib.)
| |||||||
| COMPANIES ACT | |||||||
| SECTION 10F | |||||||
| COMPANY LAW BOARD - APPEALS AGAINST THE ORDERS OF | |||||||
Where
CLB dismissed interim relief sought by petitioner in petition alleging
irregularity in election process of director and appeals against said
order were dismissed, review petitions filed were to be dismissed as no
new grounds had been made out and points agitated were already negated
by Court in its earlier order - [2016] 65 taxmann.com 305 (Madras)
| |||||||
| SECTION 433 | |||||||
| WINDING UP - CIRCUMSTANCES IN WHICH A COMPANY MAY BE WOUND UP | |||||||
Where
liability regarding payment of salary as claimed by petitioner in
winding up petition was disputed by respondent-company on various
grounds, company could not be ordered to be wound up under section
433(e) -[2016] 65 taxmann.com 260 (Rajasthan)
| |||||||
| SERVICE TAX | |||||||
| SECTION 65(19) | |||||||
| TAXABLE SERVICES - BUSINESS AUXILIARY SERVICE | |||||||
Where
assessee-bank acted as 'agency bank'/'receiving office' for sale of
bonds issued by RBI, brokerage/commission earned would be taxable under
head 'business auxiliary service'; as no custodial services were
rendered, same could not be categorised as 'banking or other financial
service' - [2016] 65 taxmann.com 242 (Mumbai - CESTAT)
| |||||||
Professional
tea tasters engaged in: (a) fixing value of tea, (b) completion of
negotiation between buyer and exporter and finalization of contract; (c)
assisting in grading and standardization of tea; (d) monitoring
shipment; (e) verifying shipment documents, port regulations and other
formalities for export; (f) collecting sale proceeds, etc., are not
'commission agent'; however, commission/consideration earned by them is
liable to service tax under Business Auxiliary Services. - [2016] 65 taxmann.com 205 (Chennai - CESTAT)
| |||||||
| SECTION 65(25b) | |||||||
| TAXABLE SERVICES - COMMERCIAL OR INDUSTRIAL CONSTRUCTION SERVICES | |||||||
Interior
services such as wooden and metal partition, plastering, painting,
civil work, joinery items, floor and wall tiling, etc. in respect of
buildings or civil structures are 'completion and finishing services'
and not eligible for abatement; however, materials will not form part of
value of services as per Not. 12/2003-ST - [2016] 65 taxmann.com 251 (New Delhi - CESTAT)
| |||||||
| SECTION 65(30a) | |||||||
| TAXABLE SERVICES - CONSTRUCTION OF COMPLEX SERVICES - STAY ORDER | |||||||
Where
assessee was constructing independent residential buildings, which were
not connected in plinth, had separate boundary wall, entrance and
separate electricity and water connection, then, in absence of any
common facilities, it could not prima facie be regarded as Construction
of Complex service. - [2016] 65 taxmann.com 195 (New Delhi - CESTAT)
| |||||||
| SECTION 65(64) | |||||||
| TAXABLE SERVICES - MANAGEMENT, MAINTENANCE OR REPAIR SERVICES | |||||||
Providing
technical engineers/software personnel to others amounts to manpower
supply services and liable to service tax accordingly; it cannot be
regarded as 'Information Technology Software Services' - [2016] 65 taxmann.com 198 (Chennai - CESTAT)
| |||||||
| SECTION 76 | |||||||
| PENALTY – GENERAL | |||||||
After
issuance of Order-in-Original (OIO), adjudicating authority becomes
functus officio; therefore, if penalty is not levied in OIO, he cannot
issue addendum to said OIO to impose penalty without any notice to
assessee -[2016] 65 taxmann.com 204 (New Delhi - CESTAT)
| |||||||
| SECTION 86 | |||||||
| APPEALS - MAINTAINABILITY OF - APPELLATE TRIBUNAL | |||||||
When
pre-deposit order has been passed by Commissioner (Appeals) based on an
incorrect fact, then, Commissioner (Appeals) has power to rectify said
mistake apparent from record and, consequently, modify pre-deposit
order. - [2016] 65 taxmann.com 195 (New Delhi - CESTAT)
| |||||||
|
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