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Income Tax
Capital gains made from immovable property in Malaysia is not taxable in India under DTAT- Review petition filed after about three years dismissed on limitation as well as merits – Supreme Court
In 2004, the Supreme Court in COMMISSIONER OF INCOME TAX Vs PVAL KULANDAGAN CHETTIAR (DEAD) THROUGH LRS - held that Capital gains made from immovable property in Malaysia is not taxable in India under DTAT. The CIT was aggrieved but not well within time. He filed a review petition after a lapse of 1027 days. Maybe it was the height of hope that the Commissioner believed that a delay of more than a thousand days will be condoned and that too without explaining the delay. Even on merits, the Supreme Court did not find any ground to entertain the petition and dismissed the same.
Who will bear the costs of such frivolous litigation?
Tax paid by employer on behalf of expatriate employees - Is it taxable perquisite? - Tribunal says it is 'pay' and same is defined as 'salary' under Rule 3 of Income Tax
LET's begin with the presumption that you are a salaried employee and your employer pays the tax on your behalf. Now the bone of contention is that whether the income tax paid on your behalf by your employer is a part of your 'salary' under Rule 3 of the Income Tax Rules? Can it be called a perquisite taxable under Sec 17(2)? While deciding the case against the Japanese major M/s Mitsubishi Corporation, the Tribunal has held that the tax payment by the employer is nothing but 'pay' which is defined as 'salary' under Rule 3 of the Income Tax. And it further added that the dictionary meaning of the word "pay" includes all periodical payments for services rendered and, therefore, the words "salary" and "pay" would include tax paid by the employer on behalf of the employee within their ambit.
Service Tax
ST paid on outward transportation - Liquid Oxygen, Nitrogen and medicinal gas delivered in transport vehicles maintained at sub-zero temp - Cenvat Credit prima facie doubtful - Tribunal orders pre-deposit
IN the case of India Cements Ltd. [] the issue was whether Cenvat credit can be taken on the Service Tax paid on goods transport services availed by the appellants for the transport of the final products from the place of removal to the place of destination viz., the buyers premises, for payment of duty on final products, treating the above services as 'Input Service '.
After elaborately going through definition of Input Services given in Rule 2(1) of the CCR, 2004, the Tribunal came to the conclusion that the transportation from the factory to the destination of the buyer becomes an 'outward transportation' & accordingly in terms of Rule 2(1)(ii) [First limb], this service becomes an 'Input Service' meaning to say that credit was available. The decision of the Commissioner of Customs and Central Excise, Tirupati in denying Cenvat credit on the Service tax paid in respect of outward transportation from the place of removal to the buyer's premises was, therefore, held to be incorrect.
However, since this view was at variance with the interpretation carried by the co-ordinate Bench of Tribunal in the case of Gujarat Ambuja Cement [], the matter was referred to the Larger Bench for resolving the issue.
Now can the Tribunal order pre-deposit when the matter is sub-judice before the Larger Bench? But then in this case, the above decisions were not apparently brought to the notice of the Tribunal.
Moral: If you want to win cases log on to TIOL!
Central Excise
Manufacturer is entitled to Cenvat Credit of Sugar Cess paid on the imported raw sugar – CESTAT
WHY sugar cess should be denied in the first place? Let us have a look at the relevant provisions of the Cenvat Credit Rules. Rule 3 specifies various duties which the manufacturer or the Service provider can take as input credit. The list includes the CVD paid on the imported goods equivalent to duties specified under clauses (i), (ii), (iii), (iv), (v), (vi) and (via) of Rule 3(1). These seven types are respectively, Excise duty ( under first and second schedules of the CE Tariff) AED under Textiles and Textile articles Act, AED under Goods of special importance Act, NCCD, Education Cess and Secondary Education Cess.
Until tomorrow with more DDT
Have a nice day.
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