Fwd: TaxGuru : “Determining the characterisation of an entity before the selection of most appropriate method is critical” plus 15 more

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From: TaxGuru.in - Daily Tax and Corporate Law Update <info@taxguru.in>
Date: Mon, Jul 18, 2011 at 3:56 PM
Subject: TaxGuru : "Determining the characterisation of an entity before the selection of most appropriate method is critical" plus 15 more
To: palashbiswaskl@gmail.com

TaxGuru : "Determining the characterisation of an entity before the selection of most appropriate method is critical" plus 15 more

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• Determining the characterisation of an entity before the selection of most appropriate method is critical
• When a payment is compensatory in nature and not related to any deposit/debt/loan, then such a payment is out of ambits of provisions of section 194A
• Payment made for online banner advertisement on the portal of a foreign company not taxable as royalty
• As a goodwill gesture govt allows duty-free import of vegetable, fruits from Dhaka
• Govt plan to cover more services under service tax net
• 300 Political Parties not Filed IT Return, EC asks CBDT to issue notices
• Black money – Indians had deposits of about $2.5 billion in swiss banks
• Activity of 'assembling' amounts to manufacturing for relief u/s 80IB, employment of temporary workers enough to claim relief
• Lease rentals earned by a developer of Software Technology Park should be treated as business income
• Essential to prove involvement in physical activities of erection and commissioning of power project to be taxed under special provisions
• India Enters into Social Security Agreement with the French Republic
• Supply of spares used in prospecting for, or extraction or production of mineral oils in turnkey contract – whether eligible for presumptive taxation
• Payment made under non-compete agreement is capital expenditure and not result into acquisition of any intangible asset and could not be eligible for depreciation allowance and could not be claimed as deferred revenue expenditure
• Transfer of a 'specific sale contract with a client' is covered under the expression 'right to manufacture, produce or process any article or thing' under Section 55(2)(a) of the Income-tax Act, 1961 and hence taxable as capital gains
• Assessee not entitled to waiver of interest under s 234B and 234C on account of the non-adjustment of seized cash by the department against the tax liability
• Cooperative bank entitled to claim exemption u/s. 80P(2)(a)(i) in respect of income derived out of investments made from the voluntary reserves

Determining the characterisation of an entity before the selection of most appropriate method is critical Posted: 17 Jul 2011 08:15 PM PDT Fulford (India) Ltd v. DCIT (ITAT Mumbai) - The Tribunal made specific reference to the noting of the DRP in its order viz., that the assessee may be justified in claiming that own researched medicine should fetch higher profit margin, may be... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

When a payment is compensatory in nature and not related to any deposit/debt/loan, then such a payment is out of ambits of provisions of section 194A Posted: 17 Jul 2011 08:01 PM PDT ITO v. Parag Mahasukhlal Shah (ITAT Ahemdabad) If a payment is compensatory in nature and not related to any deposit/debt/loan, then such a payment is out of the ambits of the provisions of section 194A of the Income-tax Act. To buttress this legal... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Payment made for online banner advertisement on the portal of a foreign company not taxable as royalty Posted: 17 Jul 2011 07:49 PM PDT Yahoo India P. Ltd v. DCIT (ITAT Mumbai) -Payment made by assessee-company to Yahoo, a Hong Kong company, for hiring its services for uploading and display of banner advertisement of Department of Tourism of India on its portal was not in nature of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

As a goodwill gesture govt allows duty-free import of vegetable, fruits from Dhaka Posted: 17 Jul 2011 07:02 PM PDT Ahead of Prime Minister Manmohan Singh's visit to Bangladesh, India, in a goodwill gesture, has allowed zero duty import of vegetables, spices and garments from the neighbouring country, with immediate effect vide Notification No. 60/2011-Customs ... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Govt plan to cover more services under service tax net Posted: 17 Jul 2011 06:53 PM PDT The Finance Ministry plans to bring more professions in the services sector under the tax net, a senior bureaucrat said here on Monday. He was speaking at a service tax-related event organised by the Associated Chambers of Commerce and Industry of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

300 Political Parties not Filed IT Return, EC asks CBDT to issue notices Posted: 17 Jul 2011 06:50 PM PDT A country-wide probe conducted by the Income Tax department has found that close to 300 registered political parties have never filed their tax returns and the Election Commission has now asked the department to issue notices to them. The probe,... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Black money – Indians had deposits of about $2.5 billion in swiss banks Posted: 17 Jul 2011 06:47 PM PDT The Swiss National Bank, the central bank of Switzerland, has estimated that Indian clients had deposits of about $2.5 billion in banks in the European nation in 2010. This is just a fraction of the $1.5-trillion figure that had been projected by... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Activity of 'assembling' amounts to manufacturing for relief u/s 80IB, employment of temporary workers enough to claim relief Posted: 17 Jul 2011 06:35 PM PDT Chiranjjeevi Wind Energy Ltd. v. ACIT (ITAT Chennai)- Income Tax – Section 80IB(2)(iv) – Determination of whether a business activity of "assembling" amounts to manufacturing for relief u/s 80IB - whether employment of temporary workers is enough to... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Lease rentals earned by a developer of Software Technology Park should be treated as business income Posted: 17 Jul 2011 01:11 AM PDT DCIT v. Golflink Software Park P Ltd. (ITAT Bangalore) - The taxpayer was not only letting out its building for rent, but also carried on a complex commercial activity of setting up a software technology park in which various amenities and fit-outs... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Essential to prove involvement in physical activities of erection and commissioning of power project to be taxed under special provisions Posted: 17 Jul 2011 12:13 AM PDT Voith Siemens Hydro Kraftwerkstechnik GMBH & Co KG Vs. DDIT (ITAT Delhi)- The Tribunal observed that even though in the contract between the taxpayer and OHPC, the term "supervision" has been given a specific meaning, the conduct of the... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

India Enters into Social Security Agreement with the French Republic Posted: 17 Jul 2011 12:10 AM PDT The Government of India has entered into an Agreement on Social Security with the French Republic. Following the principles of reciprocity this agreement is intended to benefit the employees and employers of both India as well as France. The... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Supply of spares used in prospecting for, or extraction or production of mineral oils in turnkey contract – whether eligible for presumptive taxation Posted: 17 Jul 2011 12:04 AM PDT G&T Resources (Europe) Ltd. v. DDIT (ITAT Delhi)- The receipts for supply of spare parts used in prospecting for, or extraction or production of mineral oils in the turnkey contract are eligible for presumptive taxation under section 44BB of... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Payment made under non-compete agreement is capital expenditure and not result into acquisition of any intangible asset and could not be eligible for depreciation allowance and could not be claimed as deferred revenue expenditure Posted: 16 Jul 2011 11:41 PM PDT M/s Sharp Business Systems (India) Ltd. vs. DCIT (ITT Delhi)- The Tribunal held that payment made to ward off competition, under a covenant of non-compete, was to get established in the market and to acquire the market as per the facts of the case.... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Transfer of a 'specific sale contract with a client' is covered under the expression 'right to manufacture, produce or process any article or thing' under Section 55(2)(a) of the Income-tax Act, 1961 and hence taxable as capital gains Posted: 16 Jul 2011 11:29 PM PDT M/s Prajna Technologies & Services Private Limited vs. DCIT (ITAT Hyderabad) - Observing the nature of business, the taxpayer never sold the right to carry on the business of its software development or its right to carry on any business. It... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Assessee not entitled to waiver of interest under s 234B and 234C on account of the non-adjustment of seized cash by the department against the tax liability Posted: 16 Jul 2011 11:23 PM PDT Manharbhai Muljibhai Kakadia Vs UoI (Gujrat HC at Ahemdabad) Whether the assessee is entitled to waiver of interest u/s 234B & 234C relying on the circular dated 23.05.2006 in which waiver is given on account of non-adjustment of seized cash by... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

Cooperative bank entitled to claim exemption u/s. 80P(2)(a)(i) in respect of income derived out of investments made from the voluntary reserves Posted: 16 Jul 2011 10:31 PM PDT CIT v Andhra Pradesh State Co-op Bank Ltd (High Court of Andhra Pradesh)- The Senior Counsel for the revenue brought to our notice the decision of Uttarakhand High Court in Nainital District Cooperative Bank's case (supra) wherein it was held that... [[ This is a content summary only. Visit www.taxguru.in for full article ]]

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