Re: UPDATES FROM TAX GURU (in this message: 28 new items)

On Mon, Nov 23, 2009 at 9:36 AM, LEGAL & FINANCIAL UPDATES FROM TAX GURU <info@taxguru.in> wrote:

UPDATES FROM TAX GURU (in this message: 28 new items)

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• Income tax raid on real estate developers, hoteliers, politicians
• Scope for rectifying Income Tax assessments limited: SC
• Vodafone seek time to reply Income Tax Department notice
• Tax profit on sell of license by new mobile operators at high rate
• Government considering proposal to impose a new tax on vehicle with low fuel efficiency
• Tax arrears increased to 2 Lakh crore
• Labour Ministry opposed the move to bring EPFO activities under service tax net
• Date of reckoning for limitation period provided u/s 154(7) of Income Tax Act, 1961
• Payment made for supply of technical know-how services for setting up cellular telecom services is capital expenditure
• Directing special audit without opportunity of being heard to the assessee is merely an irregularity and not an illegality
• Block of residential unit cannot be construed to be separate project for the purposes of section 80-1B
• Where a DTA is converted into an EOU, the exemption u/s 10B is admissible on getting approval as 100% EOU
• Allowability of exemption u/s 10(22) of IT Act, 1961 to a State-controlled Educational Society/Board
• Advance in ordinary course of business cannot be considered as deemed dividend U/s. 2(22)(e) of IT Act, 1961
• Payments for technical services are to be treated as "fees for technical services" under Article 13(4) of Indo-French DTAA
• Annual Letting Value of house property under section 23(1)(a) of Income Tax Act, 1961
• Advance Ruling on taxability of an American company, having no PE in India, for technology transfer to an Indian company against consideration
• Deduction under section 80-1A is not dependent upon the assessee claiming or not claiming depreciation
• Section 240 of the IT Act, 1961 cast obligation on the revenue to effect the refund
• Amount disbursed by chit Fund Company to its members from their contribution cannot be treated as interest
• Taxability of a South Korean Company on basis of its Local office in India
• Allowance or deduction not made as per IT Act, 1961 will not come under sweep of section 41(1)
• AO can make addition on ground other then on which he reopened the Assessment
• Government exempt biris, matches and reinforced cement concrete pipes manufacturers from submission of the Annual Installed Capacity Statement
• Change your mobile operators without change of Number for Rs. 19
• CBI raided seven places of former Income Tax commissioner
• Direct Tax Code (DTC) may give a fillip to long-term life policies
• Johnny and Service Tax Refund Part – III

Income tax raid on real estate developers, hoteliers, politicians Posted: 22 Nov 2009 07:30 PM PST In a major operation against alleged tax evasion, officials of the Department of Income Tax carried out simultaneous raids at 20 offices and residences of four industrialists, including a Congress leader, and scrutinised their property details here... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Scope for rectifying Income Tax assessments limited: SC Posted: 22 Nov 2009 07:22 PM PST The Supreme Court (SC) last week set aside the judgement of the division bench of the Madras high court in a case raising the question of the power of the Income Tax authorities to 'rectify mistakes' in assessment under Section 154 of the Income Tax... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Vodafone seek time to reply Income Tax Department notice Posted: 22 Nov 2009 07:15 PM PST On October 30, 2009, the Income-Tax Department issued a notice to Vodafone International Holdings BV (VIH BV) over its 11.2-billion dollar purchase of Hutchison Telecom's Indian operations (Vodafone Essar) in 2007. "Vodafone International Holdings... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Tax profit on sell of license by new mobile operators at high rate Posted: 22 Nov 2009 07:10 PM PST The Member of Parliament and former owner of BPL Mobile, Mr Rajeev Chandrasekhar, has written to the Prime Minister suggesting the Government should impose a windfall (Extra) tax on new mobile players if they sold their licences. Related... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Government considering proposal to impose a new tax on vehicle with low fuel efficiency Posted: 22 Nov 2009 07:04 PM PST It could soon be a tough road ahead for vehicles with low fuel efficiency. The Government is considering a proposal to introduce a new tax on such vehicles to ensure that they are phased out. This tax could be a deterrent against manufacture of... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Tax arrears increased to 2 Lakh crore Posted: 22 Nov 2009 07:00 PM PST The total tax arrears have galloped to nearly Rs 2 lakh crore till September 30, 2009, an amount sufficient to fund at least half of the government's budget deficit for the current financial year. But, surprisingly, the government has said that it... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Labour Ministry opposed the move to bring EPFO activities under service tax net Posted: 22 Nov 2009 06:52 PM PST The finance and labour ministries have locked horns over the issue of bringing retirement fund manager EPFO under the service tax net. The Central Board of Excise and Customs has slapped a notice for recovery of service tax on Employees' Provident... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Date of reckoning for limitation period provided u/s 154(7) of Income Tax Act, 1961 Posted: 22 Nov 2009 07:39 AM PST Once an appeal against the order passed by an authority is preferred and is decided by the appellate authority, the order of the said authority merges into the order of the appellate authority; with this merger, order of the original authority... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Payment made for supply of technical know-how services for setting up cellular telecom services is capital expenditure Posted: 22 Nov 2009 07:37 AM PST The payment for technical know-how obtained to establish or set-up the business of providing telecommunication services or to erect or install network, microwave sites, microwave stations, microwave towers and base stations etc. has to be held as... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Directing special audit without opportunity of being heard to the assessee is merely an irregularity and not an illegality Posted: 22 Nov 2009 07:24 AM PST An order under section 142(2A) of the Income Tax Act, 1961, directing the assessee to get the accounts audited by an accountant nominated in this behalf by the Chief Commissioner or the Commissioner and to furnish a report of such audit, does entail... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Block of residential unit cannot be construed to be separate project for the purposes of section 80-1B Posted: 22 Nov 2009 07:19 AM PST For enabling the benefit of section 80-IB it has become a condition precedent that housing projects in places other than Delhi and Mumbai should not exceed the built-up area of 1500 sft.; a block of residential unit cannot be construed to be a... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Where a DTA is converted into an EOU, the exemption u/s 10B is admissible on getting approval as 100% EOU Posted: 22 Nov 2009 07:15 AM PST The principal of accrual of profit does not come in the way of allocation of profit in the two periods; deduction under different sections can be allowed on different profits, if the same are admissible. Related posts:Forex from overseas film... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Allowability of exemption u/s 10(22) of IT Act, 1961 to a State-controlled Educational Society/Board Posted: 22 Nov 2009 07:10 AM PST As per the letter of the Central Government dated 9-7-1973, all State-controlled Educational Committee(s) /Board(s) have been constituted to implement the Educational policy of the States(s), consequently, they should be treated as Educational... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Advance in ordinary course of business cannot be considered as deemed dividend U/s. 2(22)(e) of IT Act, 1961 Posted: 22 Nov 2009 07:03 AM PST Once it is held that the business transactions do not fall within section 2(22)(e), one need not to go further to section 2(22)(e)(ii) to take away the basic meaning, intent and purport of the main part of section 2(22)(e). Related posts:Trade... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Payments for technical services are to be treated as "fees for technical services" under Article 13(4) of Indo-French DTAA Posted: 22 Nov 2009 06:38 AM PST For the purposes of paragraph 2 of this Article, and subject to paragraph 5 of this Article, the term "fees for technical services" means payments of any kind to any person in consideration for the rendering of any technical or consultancy services... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Annual Letting Value of house property under section 23(1)(a) of Income Tax Act, 1961 Posted: 22 Nov 2009 06:32 AM PST In respect of properties where restriction under Rent Control Act is not applicable, the annual letting value has got to be determined after taking into consideration various factors and the standard rent or Municipal valuation may be adjusted after... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Advance Ruling on taxability of an American company, having no PE in India, for technology transfer to an Indian company against consideration Posted: 22 Nov 2009 06:28 AM PST It cannot be doubted that the technology/know- how transfer that is contemplated by clause 2 of the `Technology Transfer Agreement' between the parties gets covered by more than one sub-clause of Explanation 2 to section 9(1)(vi) of the Income-tax... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Deduction under section 80-1A is not dependent upon the assessee claiming or not claiming depreciation Posted: 22 Nov 2009 06:20 AM PST The quantum of deduction under section 80-1A is not dependent upon the assessee claiming or not claiming depreciation, because, under section 80-1A the quantum of deduction has to be determined by computing total income from business after deducting... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Section 240 of the IT Act, 1961 cast obligation on the revenue to effect the refund Posted: 22 Nov 2009 06:15 AM PST Refund on appeal, etc. – Where, as a result of any order passed in appeal or other proceeding under this Act, refund of any amount becomes due to the assessee, the Assessing Officer shall, except as otherwise provided in this Act, refund the amount... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Amount disbursed by chit Fund Company to its members from their contribution cannot be treated as interest Posted: 22 Nov 2009 05:44 AM PST The amount disbursed by a chit fund company to the members from their contribution cannot be treated as `interest'; as the payments made/disbursed to the subscribers/ members are not `interest', therefore, the question of deducting any tax at source... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Taxability of a South Korean Company on basis of its Local office in India Posted: 22 Nov 2009 05:39 AM PST If the LO is having decision making authority on behalf of the HO and also empowered to conclude the contract and to secure purchase orders. Then considering the activities carried on LO is to be treated as permanent establishment and will not be... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Allowance or deduction not made as per IT Act, 1961 will not come under sweep of section 41(1) Posted: 22 Nov 2009 05:34 AM PST unless an allowance or deduction has been made as per Income Tax Act and records, the same will not come under the sweep of Section 41(1). A return treated as non est and `invalid' can by no stretch of imagination be treated as allowance or... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

AO can make addition on ground other then on which he reopened the Assessment Posted: 22 Nov 2009 05:30 AM PST It is within the power of the AO not to add that particular item based on which the AO has formed a belief that income has escaped assessment; when the AO is satisfied that there was no reason for an addition on the matter based on which the notice... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Government exempt biris, matches and reinforced cement concrete pipes manufacturers from submission of the Annual Installed Capacity Statement Posted: 22 Nov 2009 05:16 AM PST In exercise of the powers conferred under clause (b) of sub rule (2A) of Rule 12 of the Central Excise Rules, 2002, the Central Government being satisfied that it is necessary and expedient in the public interest so to do, hereby exempts the... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Change your mobile operators without change of Number for Rs. 19 Posted: 22 Nov 2009 05:08 AM PST The Telecom Regulatory Authority of India (Trai) today fixed at Rs 19 the reference rate for portability fee -- charged from users for changing operator while retaining the number. Related posts:Your Mobile Phone will be Banned in 2009 if it... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

CBI raided seven places of former Income Tax commissioner Posted: 22 Nov 2009 04:45 AM PST The anti-corruption wing of Central Bureau of Investigation (CBI) conducted seven raids, including four in Vidarbha, after they arrested a retired income tax officer in Mumbai for his alleged involvement in raising fund for his NGO misusing his... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Direct Tax Code (DTC) may give a fillip to long-term life policies Posted: 22 Nov 2009 04:32 AM PST Long-term life insurance policies are expected to grow in popularity if the EET (exempt exempt tax) regime under the proposed Direct Tax Code comes into force by 2011.According to Mr G.V. Nageswara Rao, Managing Director and CEO, IDBI Fortis Life... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

Johnny and Service Tax Refund Part – III Posted: 21 Nov 2009 09:07 PM PST In continuation of the series of previous two articles, elaborating the difficulties in getting the refund claim under GTA service and Port services, we in this article are attempting to present the problems existing in the Service tax refund... [[ This is a content summary only. Visit my website www.taxguru.in for full article ]]

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