CORPORATE AND PROFESSIONAL UPDATE APRIL 1, 2016

CORPORATE AND PROFESSIONAL UPDATE APRIL 1, 2016

DIRECT TAX

• Income Tax: Fee for technical services : Where assessee-foreign company provided data processing support service to Indian bank and it was argued that no technical services were rendered in India whereas only processing of data was done and that too at Hong Kong and therefore, payment made by bank could not be taxed in India, since matter was remitted by co-ordinate bench of Tribunal in assessee’s own case for earlier assessment year having similar issue, matter for present assessment year had to be remanded – [2016] 67 taxmann 277 (Mumbai – Trib.
• Income Tax: Computation of : Where assessee did not disclose income from house property in respect of his six immovable properties, Assessing Officer could not make addition to assessee’s income merely on basis of notional rent on cost of properties without computing income in accordance with provisions of sections 22 and 23 – [2016] 67 taxmann 269 (Mumbai – Trib.)
• Income Tax : Immovable property : Where assessee sold two flats during relevant year acquired out of his undisclosed income, since said amount had already been added to assessee’s income earlier in block assessment proceedings, Assessing Officer could not make addition again under section 68 in respect of sale consideration in question – [2016] 67 taxmann 269 (Mumbai – Trib.)

 INDIRECT TAX

• Service Tax : There is no distinction between ‘providers of education’ and ‘commercial coaching or training institution’; hence, even providing of computer education online is covered with commercial coaching or training and liable to tax.
• Excise & Customs-Unjust enrichment applies to : (a) ‘captive consumption’ of, as well as (b) ‘indirect passing on of burden of duty’, as well as (c) duty paid under protest; hence, mere payment of duty under protest on captively consumed goods does not rule out unjust enrichment 2016] 67 taxmann.com 314 (Madras)

Key Dates

• MCA notifies CARO, 2016, applicable for FY beginning on or after April 1, 2015.

REGARDS

INDIA FINANCIAL CONSULTANCY PRIVATE LIMITED

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