/ Company Law Compliances

CORPORATE AND PROFESSIONAL UPDATE NOV 15, 2015

CORPORATE AND PROFESSIONAL  UPDATE

  1. IT: In case of legal fees, only when legal matter is over and assessee advocate decides on quantum of fees, it becomes income in hands of advocate and entire advance amount that includes pocket payments would not bear any particular characterization for purpose of treating it as income
  • IT: Where Assessing Officer did not record any finding that any expenditure incurred by assessee was attributable to earning exempt income, disallowance under section 14A was to be deleted
    [2015]  324 (Delhi) CIT v. Om Prakash Khaitan
  • IT: Commission earned by agents on sale of SIM cards/vouchers aren’t liable to service-tax
  • Service Tax : Commission earned by authorised agents of BSNL on sale of SIM cards/vouchers of BSNL is not chargeable to service tax [2015] 295 (Madras) Commissioner of Central Excise v. Bharat Cell
  • IT: Payment of hoarding charges are liable to sec. 194C TDS and not sec. 194-I TDS
  • IT : Where assessee, engaged in business of advertising and marketing communication services, availed services of creative consultants, it was required to deduct tax at source under section 194J while making payments to them
  • IT : Where assessee made payments of hoarding charges to different parties, it was required to deduct tax at source under section 194C [2015] 279 (Mumbai – Trib.) Ogilvy & Mather (P.) Ltd. v. Income-tax Officer
  1. Service Tax : Training/Course fee shared in ratio of 25:75 between assessee and centres providing training, is akin to revenue sharing model for training services and therefore, 25 per cent retained by assessee cannot be taxed under franchise services[2015]  312 (Mumbai – CESTAT) Centre for Development of Advance Computing v. Commissioner of Central Excise
  1. Panel on Bankruptcy laws proposes 180 days time-limit for completion of insolvency process
  1. Negotiable Instruments Act: Accused convicted for cheque bouncing as he failed to rebut belief that cheque was issued for legally enforceable debt [2015]  322 (Madras) India Steel & Alloys v. Venkatesa Industrial Suppliers
  1. Karnataka VAT: Owner of ‘Kingfisher Brand’ entered into contracts with Contract Bottling Units (BUs) for manufacturing of beer. It had transferred know-how for manufacturing beer. BUs had the right to use the brand name only on behalf of assessee and they did not acquire any right over such brand name belonging to the assessee. Thus, sum received from BUs as brand franchise fees could not be treated as royalty and was not liable to sales tax. [2015] 41 (Karnataka)State of Karnataka v. United Breweries Ltd.
  1. Frequently Asked Questions on Sovereign Gold Bond Scheme 2015 : PM to launch four Gold related schemes TODAY.

Can I gift the bonds to a relative or friend on some occasion?

The bond can be gifted/transferable to a relative/friend/anybody who fulfills the eligibility criteria. The Bonds shall be transferable in accordance with the provisions of the Government Securities Act 2006 and the Government Securities Regulations 2007 before maturity by execution of an instrument of transfer which is available with the issuing agents.

Can I use these securities as collateral for loans?

Yes, these securities are eligible to be used as collateral for loans from banks, financial Institutions and Non-Banking Financial Companies (NBFC). The Loan to Value ratio will be same as applicable to ordinary gold loan mandated by the RBI from time to time.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact:info@caindelhiindia.com or call at 011-23343333

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