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]