CORPORATE TAX UPDATE FOR THE MONTH
Corporate tax Update for the Month :
Company Law:
Query: Is sitting fees payable to a director who participates in a meeting through video conferencing?
Answer: Yes, sitting fee is payable to a director who participates in a meeting through any of two modes viz. in person or through video conferencing or any other audio visual means.
Rule 4 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 provides that such sum would be as may be decided by the Board of directors which shall not exceed one lakh rupees per meeting of the Board or the committee.
Indirect Taxes:
CENVAT Credit – No evidence could be brought on record that the main appellant and its Director were aware that inputs received was as a result of an activity not amounting to manufacture. The demand issued is clearly time barred as extended period is not imposable in this case and no penalties can be imposed upon the appellant
CENVAT Credit – removal of capital goods after use – removal of cylinders/rollers which are used in printing of packaging materials – demand is restricted to the extent on the value arrived after allowing depreciation.
Duty demand / Reversal of cenvat credit – Bagasse is only an agricultural waste and residue which itself is not the result of any process. – cannot be treated as falling within the definition of Section 2(f) of the Act and the absence of manufacture there cannot be any excise duty
Direct taxes:
Addition made on account of excise duty not included in the closing stock of the finished goods – Though there might be levy under section 3 of the Excise Act, yet neither the rate nor the value would be determinable till the point of time of removal of the excisable goods from the factory premises .
Provision for transit breakages – There is no reasonable scientific method adopted by the Assessees to estimate the transit breakages so as to justify creating of provision for such breakages.The provision would, in the circumstances, be a provision for a contingent liability and, therefore, in terms of the AS 29 ought not be recognized.
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
**********************************************************
If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.
Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.