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Amnesty Scheme under CER, 1944 and Cenvat Credit Rules – Clarifications woefully needed; Service Tax – Renting of Immovable Property – A fresh stir of litigations; Is it fair to bring Health Care Sector and Hospitals under service tax net? Housing Sector: Period for Sec 80IB benefits extended from four to five years; Commercial area also extended to 5000 sq ft; Budget targets cine industry through Service Tax ; Clean Energy Cess on Coals – FM puts 'Polluter Pays' Principle into practice; Commercial training or Coaching service – Will attempt to overturn Tribunal judgments succeed? Finance Bill amends Sections 44BB & 44DA but purpose is not served! Taxation of IT software: Confusion persists! FM tries to alienate elements of 'tedium' from TDS - a welcome proposal, indeed! Tax Deduction at Source on payment of interest on time deposits under Section 194A of the Income Tax Act, 1961 by banks following Core-Branch Banking Solutions (CBS) software; India's exports grows by 11.5% in January; Total turnover of CPSEs grew by 15.4 % during 2008-09; Exim Bank's Line of Credit of USD 25 million to the Government of the Democratic Republic of Congo ; Amendment in Para 3.17.11 of FTP 2009-14; |
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| Dear Member, Sending the following files: |
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BUDGET ANALYSIS Amnesty Scheme under CER, 1944 and Cenvat Credit Rules – Clarifications woefully needed; Service Tax – Renting of Immovable Property – A fresh stir of litigations; Is it fair to bring Health Care Sector and Hospitals under service tax net? Housing Sector: Period for Sec 80IB benefits extended from four to five years; Commercial area also extended to 5000 sq ft; Budget targets cine industry through Service Tax ; Clean Energy Cess on Coals – FM puts 'Polluter Pays' Principle into practice; Commercial training or Coaching service – Will attempt to overturn Tribunal judgments succeed? Finance Bill amends Sections 44BB & 44DA but purpose is not served! Taxation of IT software: Confusion persists! FM tries to alienate elements of 'tedium' from TDS - a welcome proposal, indeed! TIOL COMMENTARY Board takes serious note of delay in processing refund claims of exporters of goods and services – Adopts Legislative route to provide relief – Circular blushes into notification; RBI CIRCULAR Exim Bank's Line of Credit of USD 25 million to the Government of the Democratic Republic of Congo ; MIXED BUZZ India's exports grows by 11.5% in January; Total turnover of CPSEs grew by 15.4 % during 2008-09; |
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CIRCULAR Tax Deduction at Source on payment of interest on time deposits under Section 194A of the Income Tax Act, 1961 by banks following Core-Branch Banking Solutions (CBS) software; CASE LAWS 2010-TIOL-09-ARA-IT.pdf + ara story.pdf KSPG Netherlands Holding B V (Dated : February 25, 2010) Income tax - Sec 9(1)(iv), 115-O, 10(34), 45, 47(iv)(b) - India-Netherlands DTAA - Article 13.5 - Applicant is an incorporated company in Netherlands - has a wholly-owned subsidiary Pierburg India - Applicant and its subsidary are part of a well known German automobile group Kolbenschmidt Pierburg Group - Applicant makes huge investments in the Indian subsidiary - in return, hope to receive dividends - applicant may realise capital gains on sale of part of its share in the Indian subsidiary to non-resident - subsidiary may also consider a buyback of its shares - Initially, Pierburg GmbH was the holding company of Pierburg India - sold the entire shareholding of Pierburg India to the applicant - Applicant seeks advance rulings on:ADVANCE RULING; CIT, Mumbai Vs M/s ABG Heavy Industrires Limited (Dated : February 15, 2010) Income tax - Sec 80IA, 80IA(4) - Assessee is awarded a contract for leasing of container handling cranes at JNPT - as per contract, assessee deploys rail mounted quay side cranes at the terminal which handles loading, unloading and storage of containers - claims Sec 80IA benefits allowed to companies engaged in development of infrastructure - AO disallows by holding that the assessee is merely engaged in the business of supplying, installing, testing, commissioning and maintaining cranes at the Port and is not in the business of developing, maintaining and operating a Port - CIT(A) and Tribunal disagree with the AO - held, the subsequent amendment of Section 80IA (4A) of the Act clarifies that the provision would apply to an enterprise engaged in (i) developing; or (ii) operating and maintaining; or (iii) developing, operating and maintaining an infrastructure facility and it is reflective of a position which was always construed to hold the field. Before the amendment that was brought about by Parliament by Finance Act of 2001, the consistent line of circulars of the Board postulated the same position. The amendment made by Parliament to Section 80IA (4) of the Act set the matter beyond any controversy by stipulating that the three conditions for development, operation and maintenance were not intended to be cumulative in nature. Revenue's appeal dismissed.:BOMBAY HIGH COURT; CIT Vs Oriental Structural Engineers P Ltd (Dated : February 11, 2010) Income tax - Sec 40A(2) - Assessee is a joint venture of two partners - enters into agreement with its partners that whatever work is obtained by it from the National Highway Authority of India, the same will be executed by the partners - Assessee pays out about 98.5% of the receipt to the partners - incurs certain expenditure on account of service tax, audit fee etc and claims the same as loss - Revenue disallows part of expenditure u/s 40A(2) on the ground of being excessive - CIT(A) and Tribunal disagree with the AO - held, since the Tribunal has given clear finding that there is nothing to suggest excessive expensiture, there is no substantial question of law involved - Revenue's appeal dismissed :DELHI HIGH COURT; |
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CCE, Coimbatore Vs Elgi Ultra Industries Ltd (Dated: November 11, 2009) Service Tax – Goods Transport Agency service – service tax on the goods directly supplied to the job worker by principal manufacturer – since the job-worker is the consignee who has already paid the service tax, demand on the supplier manufacturer is not sustainable – no reason to interfere with the Commissioner (Appeals) order. :CHENNAI CESTAT;
CENTRAL EXCISE SECTION M/s Sakthi Industries Vs CCE, Chennai (Dated: November 11, 2009) Central Excise – refund – unjust enrichment – amounts initially collected from the customers have been subsequently given back by way of credit notes – in view of the decisions of High Courts of Rajasthan and Karnataka, matter remanded.:CHENNAI CESTAT; M/s Madras Vanaspati Ltd Vs CCE, Pondicherry (Dated: November 20, 2009) Central Excise – CENVAT Credit – manufacture of dutiable and exempted goods - payment of 10% under Rule 6 of the CENVAT Credit Rules – in the case of manufacture of a dutiable product and a by-product, the provisions of Rule 6 are not attracted and there is no requirement of reversal of 10% amount :CHENNAI CESTAT;
CUSTOMS SECTION NOTIFICATION Amendment in Para 3.17.11 of FTP 2009-14; CASE LAWS M/s Konaseema Eps Oakwell Power Ltd Vs CC, Visakhapatnam (Dated: October 30, 2009) Customs – Project Imports – A s long as there is no dispute with regard to eligibility of imported goods for concessional rate under Project Import Regulations, belated filing of reconciliation statement as per Regulation 7 only a procedural violation – Prima facie case for staying of impugned order :BANGALORE CESTAT; |
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