Thursday, August 7, 2014

IDT batch for CA Final Nov 2014 and May 2015 will start from 11th Aug 2014 - Morning

New Batch for IDT (CA Final) Nov 2014 and May 2015 will start from 11th Aug 2014 at Hindi Maha vidyalaya (Nallakunta) during morning hours (6.00 AM to 9.00 AM).

Thank you,


Updates in Indirect Tax Laws # 9:

Service Tax extends to the Continental Shelf & Exclusive Economic Zone (CS & EEZ) of India [Notification No. 14/2010-S.T., dated 27-2-2010]

Eg: A Vessel sailing from Karachi to Colombo developed some technical snag while passing through CSI (Continental Shelf of India) off Kochi port. A marine engineer from Ernakulam provides service to the vessel anchored in the EEZI (Exclusive Economic Zone of India).

Sol: No tax ! Why? Because, the vessel located in the CSI / EEZI, is not engaged in the mineral exploitation.

Eg #2: Installation in EEZI meant for prospecting for mineral oil, did not find out oil. Is tax payable on service provided to such an installation?

Sol: Tax is payable ! Why? Because, installation was for the purposes of prospecting mineral oil. It does not matter whether oil was found or not.

Sunday, July 6, 2014

Update in Direct Tax Laws # 8

No of days of forced stay in India cannot be counted while determining the Residential Status.  Thus, where the Government Agencies illegally impounded the passport of the assessee and because of which his stay in India exceeded 182 days, he cannot be treated as ‘Resident’. i.e The number of days for which his passport was impounded is to be excluded while counting the period of STAY. [Suresh Nanda Vs ACIT] [2014] [45 269] [Delhi – Tribunal]

Tuesday, July 1, 2014

CENVAT credit is available on expenditure incurred towards after sale services

Update in Indirect Tax Laws # 7: Service Tax Paid towards expenses on after sales service is eligible for credit as input service as the same is covered in the definition of input service as defined in Rule 2(l) of the CENVAT Credit Rules, 2004. [Com Vs Mahindra & Mahindra Ltd] [34 STR J 217] [RK Jain] [2014] [Mumbai-HC]

Monday, June 30, 2014

CENVAT Credit on Sales Commission Service is not available.

Update in Indirect Tax Laws # 6: CENVAT Credit on Sales Commission Service is not available.

Thus, where the assessee incurred expenditure towards ‘Sales Commission Service’, held that CENVAT Credit on the same is not available to the assessee. [Astik Dyestuff Pvt Ltd Vs CCEX] [2014] [34 STR 814] [Gujarat HC]; In this Judgment they affirmed the judgment given in earlier case of ‘CCEX Vs Cadila Healthcare Ltd] [2013] [30 STR 3] [Gujarat HC]. Readers may note that a contrary judgment was given by the P&H HC in ‘CCEX Vs Ambica Overseas’ [2012] [25 STR 348];

Sunday, June 29, 2014

Yuvraj Singh gets Service Tax Demand Notice

Update in Indirect Tax Laws # 5:

Yuvraj Singh gets service tax notice: The Central Excise Department had issued a show cause notice to cricketer Yuvraj Singh, seeking payment of service tax to the tune of Rs 46.60 lakhs on his income from promotional activity. The tax demand was raised on the payment of Rs 4.14 Crores which Yuvraj Singh received from Sahara Adventure Sports for carrying out promotional activity, as clarified by the Central Excise Officials. However, he had already paid Rs 36 lakhs as service tax and the balance is to be paid as per the terms of the said notice. [Source: Page J181 Volume 34: Part 5 of STR – RK Jain] [Next Batch for CA Final IDT - Nov 2014 attempt starts on 11th Aug 2014]

Friday, June 20, 2014

Update in Indirect Tax Laws # 4:

Whether a composite contract for ‘Manufacture, Supply and Installation of Lifts in a Building’ amounts to ‘Contract of Sale’ or ‘Works Contract’?
It was held that it amounts to ‘Contract of Sale’ and not a ‘Works Contract’ as skill and labour employed for converting main components into end product was only incidental. Thus, the decision of the Supreme Court in ‘State of AP Vs Kone Elevators’ [2005] [181 ELT 156] was overruled by the 5 member bench of the Supreme Court in ‘Kone Elevator India Pvt Ltd Vs State of Tamilnadu’ [2014] [34 STR 641] [SC].