CORPORATE AND PROFESSIONAL UPDATE MAY 7, 2016
TODAYS UPDATE
Direct Tax:
CBDT, vide order dated 2nd May, 2016 has given direction to field formation, with a view to avoid disputes/Litigation and to maintain uniform approach that the income arising from transfer of unlisted shares, irrespective of period of holding, would be taxable under the head ‘Capital Gain’ except in certain circumstances where the Assessing Officer would examine the issue and take appropriate view.
Now Electronic Verification Code can be generated by pre validation of your bank account on the E- Filling website. Punjab National Bank is the first bank to launch this facility which will facilitate its customer, who may have not net banking account, to e-verify their return. Others banks are expeRcted to launch this facility.
Condonation of delay – Held that – Ignorance of law is no excuse. See Swadeshi Cotton Mills Co. Ltd. vs. Government of UP (1972 (11) TMI 78 – SUPREME COURT OF INDIA) BR BR The appellant has not made out any ground for condonation of delay of 997 days before the Tribunal. We see no error in the order passed by the Tribunal. Accordingly, the appeal fails and stands dismissed. (M/s SPPORTHI SADAN CONVENT Versus THE COMMISSIONER OF INCOME TAX, BELAGAVI AND THE ASSISTANT COMMISSION OF INCOME TAX, CIRCLE –2, BELGAVI) – 2016 (5) TMI 191 – ITAT DELHI
TRANSFER PRICING – INTERNATIONAL TRANSACTION – AMP expenditure : In case there is no arrangement and agreement between assessee-company and its foreign AE to incur AMP expenditure to promote brand value of its products on behalf of foreign AE, merely because assessee-company incurred more expenditure on AMP as compared to expenditure incurred by comparable companies, it cannot be inferred that there existed international transaction – [2016] 68 taxmann.com 311 (Bangalore – Trib.)
Indirect Tax:
HC disposes of assessee’s petition, but does not rule on merits of the issue of whether assessee, a licensee in respect of advertisement display sites at the Delhi Airport & , who paid service tax, would be liable to pay Delhi VAT advertisement revenues; HC further states that “merely, because the advertisements were displayed on the Sites, it would not necessarily lead to the conclusion that they had acquired the right to use the Sites”; HC however directs the authorities to examine the contracts and facts and determine VAT applicability, without insisting on pre-deposit of any amount; HC however rejects assessee’s stand and holds that service tax payment not determinative of the true nature of the transaction and VAT authorities cannot be precluded from independently examining the transactions : Delhi HC- [TS-180-HC-2016(DEL)-VAT]
Determination of assessable value of goods imported – Agent agreement between the respondent and its associates – Adjudicating authority held that the value of the goods which are imported by the respondent needs to be loaded by an amount paid as commission to them. Revenue submitted that identical goods from the same supplier was charged higher price and relied upon Rule 9 of Customs Valuation Rules. Also there cannot be two different prices /value for identical goods which are imported at or about the same time. – Held that – it is seen that Revenue is not able to dislodge the factual finding of the first appellate authority. Also it is recorded that the first appellate authority has considered the entire facts of the case and also considered the case laws relied upon by the respondent-assessee . (Commissi oner of Customs (Import) , Mumbai Versus M/s Exxon Mobil Company India Pvt. Ltd.) – 2016 (5) TMI 188 – CESTAT MUMBAI
CENVAT allowed on fabrication of capital goods – CESTAT. [CCE & ST, Raipur Vs. M/s. Mahamaya Steel Industries Ltd. (CESTAT New Delhi)].
Corroborative evidence should be correlated to prove clandestine clearance. [Shri Avinash M Baliga & Others Vs. Commissioner of Central Excise (CESTAT – New Delhi)].
TWO HIGH COURTS- Same Decision, Issue seems to b settled Banks selling hypothecated vehicles are treated as dealers under Tamil Nadu VAT Act
CST & VAT: Tamil Nadu VAT – Where assessee, a bank, made advance to a customer for purchase of vehicle and held hypothecation of vehicle in its favour and later it repossessed hypothecated vehicle from defaulting customer and sold same through public auction, ssessee would come within definition of term ‘dealer'[2016] 68 taxmann.com 358 (Madras) HDFC Bank Ltd. v. State of Tamil Nadu
Amount received by bank from sale of hypothecated goods is liable to sales tax under Delhi VAT
CST & VAT: Delhi VAT – Where assessee, a bank, made advances to customers for purchase of cars and said cars were hypothecated to bank as security and upon default in repaying loan bank had right to repossess car and brought it to sale, disposal of repossessed cars by bank constituted ‘sale'[2016] 68 taxmann.com 296 (Delhi) Citi Bank v. Commissioner of Sales Tax
If partnership firm has been penalized, no separate penalty can be levied on its partners & dummy units[2016] 68 taxmann.com 362 (Ahmedabad – CESTAT) Sharp Engineers v. Commissioner of Central Excise
Key Dates:
Submission of Forms received in April to IT Commissioner in Form No. 27C(TCS) -07/05/2016
Payment of TDS/TCS deducted/collected in April through Challan No. ITNS-281,Form 26QB(Purchase of property)-07/05/2016
Last date of E-payment of service tax foe April by companies vide Challan No. GAR-7 -06/05/2016
Bhagavad Gita says: “If you do not fight for what you want, don’t cry for what you lost. Nothing depends on luck, everything depends on work because even luck has to work.”
Ideas shape the course of history. -John Maynard Keynes
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