No VAT on duty free shops

The Supreme Court in the case of Hotel Ashoka Vs ACCT (2012 -TMI – 209720) held that VAT is not payable on sale of goods by duty free shops at international airports since such transactions take place beyond/outside the custom frontiers of India. It is to be noted that Section 5 of Central Sales Tax Act exempts the sale of goods by transfer of document to title to goods before the goods have crossed the customs frontiers of India.

 The authorities contended that such sales can only be claimed to be VAT exempt, if it is effected by transfer of documents of title to goods and not by giving physical possession of goods to customers. The apex court did not agree to this proposition and held otherwise. The decision comes as a relief to several such duty free shops as it puts the issue, which was being picked up by several States, to rest.

USEFULNESS

Courier import and exports

Custom department has issued a circular about courier import and export. In this circular custom department gives the clarification and regulation of courier import and export. Custom department gives this explanation with circular no. 05 dated 23-02-2012. Full circular is as under.

custom

SEBI announces standardised lot size for Derivative future and option

Securities and exchange board of India (SEBI) has announced standardized lot size for initial public offer. There was no rule or less clarity about the lot of IPO as the applicant need to make calculations of the lot and amount subscription. So SEBI move to announce the lot size of shares according to the price is very vital.

ipo , sebi , sebi circular

Leviability of service tax on toll fees

Service tax department has examined the leviability of service tax on toll fees and issued a circular about this fees. Under the circular no. 152 dated 22-02-2012 of service tax, the department has cleared as service tax will attract on tolls fees or not. Full circular is as under.

SERVICE TAX

Excel based mutual fund calculator

Mutual fund is the trust of the persons who wish to invest their money in this trusted organization

Mutual fund is the trust of the persons who wish to invest their money in this trusted organization. They invest this money to different sectors such as share market, real estate and whatever sector which they see grooming.In mutual fund the fund organization hires a lot of qualified and expereniced staff and they diversify people money to differents sectors to maximize the return

EXCEL CALCULATOR

Receipt of advance payment for export of goods beyond one year

Reserve bank of India has issued a circular about export of goods and services and advance payment for goods involving shipment beyond one year. RBI has issued a circular no. 81 dated 21-02-2012 about export of goods and services. Full circular is as under.

import export , import export code number , rbi

Excise exemption in Himachal Pradesh and Uttaranchal

Central excise department gives clarification about excise exemption in Himachal Pradesh and Uttaranchal. The exemption in these states are for 10 years to new units and excise department also fix the cut off date for excise exemption. Excise department has issued a clarification with a circular no. 960 dated 17-02-2012 about excise exemption. Full circular is as under.

central excise , INDUSTRIAL POLICY , SEZ

Clarification regarding purchasing an immovable property in India

Reserve Bank of India has made a clarification regarding purchasing an immovable property in India. RBI has made this clarification for non residents, who are established in India and need to purchase a property. There is a reporting system introduces by RBI, the buyer need to report the RBI, in maximum 90 days from the day of purchase. Full clarification is as under.

banking , rbi

Revised softex procedure for export of goods and services in India

Reserve bank of India has revised the procedure for export of goods and services in India. RBI has made it simple to export the goods or services in India in softex procedure. RBI has isued a circular no. 80 dated 15-02-2012 regarding new procedure which is softex procedure for export of goods and services to India. Full circular is as under.

import export code number , rbi

Form 16 is Income Tax Return for Salaried Person Income Below 5 Lakhs

Finance Minister Mr. Pranab Mukarjee said on 24-05-2011 that no need to file income tax return for salaried person whose income is from salary and not from other sources, income 5 lakhs or below. But the question was that how the income tax return will be filed. Whether the employer file the return on there behalf or some other arrangement will take place.

INCOME TAX

Meaning of gross amount in service tax

Service tax department has clarified the gross amount in service tax department. Service tax department has issued a circular no. 150 dated 08-02-2012. In this circular service tax department cleared the gross amount explanation and includes and excludes. Full circular is as under.

SERVICE TAX

Changes in the verification of TAN account

Tin.nsdl has changed the procedure of verifying the TAN accounts. There was some confusions and doubt in the earlier method so the Tin has changed the procedure. The new procedure is as follows.

Steps to register the TAN account

1. Register your TAN online at TIN website. 
2. Submit the application online.
3. On successful registration of TAN, a 12 digit alpha numeric registration number will be generated.
4. Print the acknowledgement and preserve the same for future reference.
5. On successful registration, user will be required to verify the e-mail ID (s) quoted on re-re-registration of TAN for activating the TAN account.
6. For verifying the e-mail ID(s), an e-mail containing the link will be sent to the registered e-mail ID (s).
7. For verification of mobile no. (if provided on registration), an SMS containing six character verification code is sent.

New procedure to verify TAN accounts.

1. Click on the link received by e-mail, and provide:

• TAN
• TAN registration no. (12 digit alphanumeric no.)
• Verification code (Six character received by SMS)
• On successful validation of TAN, TAN registration and verification code, TAN account will be activated within 24 hours.
• On activation of TAN account, an e-mail containing user ID (created on registration of TAN account) will be sent at the registered e-mail ID (s).

Tags-how tan account is verified,tan verification procedure,tan verification method,tan account registration,how tan account is registered,tan account registration procedure,registration of tan at tin.nsdl

tan , tan online application , tan registration online

Section 69 of income tax act about unexplained investment

Where an assessee had made investments but failed to record them in books of accounts if any maintained by him for any source of income, the value of such investments is deemed to be his income provided

- The assessee offers no explanations about the nature and source of investments.

- The explanation offered by him is not found satisfactory by the assessing officer.

Financial year in which the investment is made may be taken as the previous year [Ram Swarup vs. CIT 192 ITR 537].

Where the assessee gives a credible explanation that is found to be satisfactory, no addition can be made to his income [CIT vs. Nitin 248 ITR 478]

Explanation should not be called for belatedly: - the length after which an assessee is called upon to explain a transaction is relevant factor while considering the sufficiency of the evidence. After the lapse of a decade an assessee should not be placed upon the rack and called upon to explain not nearly the origin and source of capital contribution but also the origin and source of that source as well.[S.Hastimal vs. CIT (1963) 49 ITR 273]; Upasana vs. CIT 229 ITR 220.

Discrepancies in stores may be treated as undisclosed income:- if there are differences between the value of stocks declared hypothecated to the  bank and the value recorded in assessee’s books and the assessee failed to explain the differences, no exception could be taken to the addition made by the authorities[Century foam p ltd Vs. CIT (1994) 210 ITR 625].

Where books of accounts reveals sales but there is no corresponding material to show that the assessee could purchase the commodity for the purposes of offering for sales the situation is an invitation to assessee to explain as to how and from what source he held the amount of the commodity with regards to its purchase before it was offered for sale. In absence of an explanation the deeming provision of section 69 is applicable [CIT vs. Anandarajan (1997) 228 ITR 664]

Secrete dealings are covered:- where the sales were conducted by the assessee secretly and were not entered in his books of accounts and the relevant dealings involved assessments, additions could be made by invoking section 69[Himmatram Laxminarain Vs. CIT(1986) 161 ITR 7]

Tags-section 69 of income tax act,section 69,section 69 of it act,section 69 of income tax,unexplained investment it act,it act in unexplained investment.

INCOME TAX SECTION

Capital gain exemption in section 54EC of income tax act

The property business is on a high now days and people are getting good profits in this business. But often they do not invest it in good place and need to pay high capital gains on these profits. The way to save long term capital gain is to invest the profits in the specified bonds which are also known as section 54EC bonds specially for saving capital gain. Section 54EC of income tax act provides exemption on capital gain if one invests the capital gain amount in these bonds, so they are also called section 54EC bonds.

capital gains , INCOME TAX SECTION

Capital gain on sale of long time residential property section 54

Capital gain on sale of long term residential property under section 54 of income tax act.

Exemption provisions in respect of capital gain arising on the sale of residential house are described as follows

capital gains , INCOME TAX SECTION

Section 14 A about deduction for expenditure to exempted income

No deduction for an expenditure incurred in relation to exempted income under section 14A of income tax act: - no deduction allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under income tax act.

INCOME TAX SECTION

Income tax section 10(2) exemption on receipts by members from HUF

Receipts by members from H.U.F:- any sum received by an assessee in his capacity as a member of a H.U.F is exempt from tax to avoid double taxation as H.U.F is also assessable separately on its income in its own capacity. The sum should be received in the capacity as a member of an H.U.F. I the recipient is not a member of the H.U.F., he cannot claim the exemption. The sum should be received either out of the income of the H.U.F or out of the income of imputable estate owned by the H.U.F under section 10(2).

INCOME TAX SECTION

Bad tax planning and bad investment

The main and complex work for any serviceman or businessman is to work on tax planning. Every person wants to save tax and do some investments from which one can save the tax liability. But this is the practice among peoples that they plan the tax planning in the financial year ending. In this time, they fast approach to different investments (tax saver) and many of them invest which one called bad investment. 
Bad investments are those investments which may be duplicate or unwanted investment which fetch no return or minimal return to the investment. Tax planning should be done very carefully and doing it in rush may lead to bad investment which may damage more to the financial position than helping.

INCOME TAX , tax planning