Tax
Payment By Indian Entity To Its AE Abroad Is Not 'FTS' If Technical Skill Is Not Made Available By AE: Bangalore ITAT
The Bangalore ITAT held that payment made by Assessee (Indian entity) to its foreign AE (Parent entity) for obtaining administrative services will not be taxable as FTS/FIS in India in terms of Indo USA DTAA, in absence of 'make available' clause in the agreement between both the parties. Article 12(4) of India USA DTAA states that 'fees for included services' means payments of any kind to any person in consideration for the rendering of any technical or consultancy services (including...
Purchaser Is Eligible To Claim Depreciation On Excess Amount Paid Over & Above Net Asset Value Of Seller's Business: Bangalore ITAT
The Bangalore ITAT held that once the Department has accepted the capital gain offered by the seller upon transfer of its business, then said transaction cannot be doubted in the hands of purchaser. The ITAT held so after finding that the AO not established that the main purpose of transfer of such asset was reduction of liability to income tax by claiming extra depreciation on enhanced cost. Hence, the ITAT allowed the depreciation on goodwill claimed by assessee company upon ...
Employer Can't Claim Benefit Of Sec 36(1)(Va) If He Fails To Deposit Employees' Contribution To PF Within Due Date: Kolkata ITAT
The Kolkata ITAT held that delayed deposit of amount collected towards employees' contribution to PF renders claim of deduction u/s 36(1)(va) ineligible. Section 36(1)(va) of Income tax Act states that if the amount received towards employees' contribution to PF is not deposited by the employer in the respective welfare account within the due date, then the same will be treated like income from business/profession. The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi...
Non Service Of Hearing Notice Invalidates Ex-Parte Order: Kolkata ITAT
Finding that the hearing notices were not duly served by the CIT(A) or the AO and resultantly the assessment order was passed ex-parte, the Kolkata ITAT directed the assessee to furnish its correct address before the competent authority. The Bench of Sanjay Garg (Judicial Member) and Sanjay Awasthi (Accountant Member) observed that “the assessee has further changed its address and the assessee is required to duly brought to the knowledge of the Assessing Officer/CIT(A) regarding the...
Raising Issue Of Non-Service Of Bills At Appellate Stage Not Permissible; Calcutta High Court Upholds 50% Interest Waiver On Property Tax
The Calcutta High Court, while dismissing the appeal of the assessee, upheld the 50% waiver of the interest on property tax.The bench of Justice Joymalya Bagchi and Justice Gaurang Kanth has observed that the bills claiming enhanced property tax had not been raised during the arrears period are wholly unfounded, and the appellant ought not to be permitted to raise them at the appellate stage.The appellant is one of the owners of the premises. In 1998, the property tax on the premises was fixed...
Discrepancies Between Dates Of Creation And Signing Assessment Order; Bombay High Court Quashes MVAT Order Passed Beyond 4 Years
The Bombay High Court, while noting the discrepancies between the dates of creation and signing of the assessment order, quashed the Maharashtra Value Added Tax Act (MVAT) Order, which was passed beyond the limitation period of 4 years.The bench of Justice K.R. Shriram and Justice Jitendra Jain has observed that the return related to 1st April 2015 to 31st March 2016 and, therefore, a four-year period would expire on 31st March 2020, and the digital signature on the order served on the...
CBIC Clarification On Amount Of Premium For Taxable Life Insurance Policies Is Not Included In Taxable Value
The Central Board of Indirect Taxes and Customs (CBIC) has issued the clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value.The Board has received the representations from the trade and field formations seeking clarification on the issue as to whether the amount of insurance premium, which is not included in the taxable value as per Rule 32(4) of Central Goods and Services Tax...
CBIC Issues Clarification On Availability Of ITC On Ducts And Manholes Used In Network Of OFCs
The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on availability of input tax credit on ducts and manholes used in network of optical fiber cables (OFCs) in terms of section 17(5) of the CGST Act, 2017.The board has received representations from Cellular Operators Association of India (COAI) submitting that input tax credit (ITC) is being denied by some tax authorities on ducts and manholes used in network of optical fiber cables (OFCs) on the ground that it is...
CBIC Clarification On Taxability Of Salvage Wreck Value In Claim Assessment Of Motor Vehicles
The Central Board of Indirect Taxes and Customs (CBIC) has clarified on the taxability of salvage/wreck value earmarked in claim assessment of damage caused to motor vehicles.The Board has received the representations from the trade and field formations seeking clarification as to whether in case of motor vehicle insurance, GST is payable by the insurance company on salvage/ wreckage value earmarked in the claim assessment of the damage caused to the motor vehicle.The insurance companies, which...
CBIC Clarification On GST Liability & ITC Availability On Warranty/Extended Warranty
The Central Board of Indirect Taxes and Customs (CBIC) has issued the clarification in respect of GST liability and input tax credit (ITC) availability in cases involving Warranty/ Extended Warranty, in furtherance to Circular No. 195/07/2023-GST dated 17.07.2023.Circular No. 195/07/2023-GST dated 17.07.2023 clarified certain issues regarding GST liability and availability of input tax credit (ITC) in respect of warranty replacement of parts and repair services during warranty period. The Board...
Road Construction & Maintenance Service By NHAI; CBIC Clarification On Time Of Supply
The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on time of supply in respect of supply of services of construction of road and maintenance thereof of National Highway Projects of National Highways Authority of India (NHAI) in Hybrid Annuity Mode (HAM) model.The Board has received the representations from the trade and the field formations seeking clarification regarding the time of supply in respect of supply of services of construction of road and maintenance...
CBIC Clarifies Taxability Of ESOP/ESPP/RSU By Company To Employees Through Its Overseas Holding Company
The Central Board of Indirect Taxes and Customs (CBIC) has issued the clarification on the taxability of Employee Stock Ownership Plan (ESOP)/ESPP/RSU provided by a company to its employees through its overseas holding company.The Board has received the representations from the trade and field formations seeking clarification regarding the taxability of Employee Stock Option (ESOP)/Employee Stock Purchase Plan (ESPP)/ Restricted Stock Unit (RSU) provided by a company to its employees.It has been...