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].

Updates in Direct Tax Laws - 3

The Guiding Factor as to the taxability under the head ‘Salaries’ Vs ‘Fees For Technical Services’ – Expatriate Taxation Regarding:

The question is whether the services rendered by the overseas entity will be taxable under Fees For Technical Services in the hands of the overseas entity or whether they are taxable as ‘Salaries’ in the hands of the non-resident employees?

Held that, where the Indian entity only had the right to terminate the secondment, without the right to terminate the original employment, overseas entity was the real employer of seconded employees. Reimbursement of salary was to be regarded as FTS [Fees for Technical Services] as they rendered quality control services till the necessary skills were acquired by the resident employee group. [Centrica India Offshore P Ltd Vs CIT] [2014] [44 Taxmann.com 300] [Delhi]

Updates on Direct Tax Laws-2

Whether Transfer Pricing Regulations apply to Guarantee Transactions given by an entity to its Associated Enterprise post amendment of Sec 92B by the Finance Act, 2012:
It all depends on various facts and one of the main factors to be considered is whether the AE had taken any loan based on the ‘Corporate Guarantee’ given by the other entity. If the answer is ‘Yes’, then it falls within the ambit of TP Provisions. [Four Soft (P) Ltd] [Hyd Tribunal – ITA Number 1901/Hyd / 2011]
On the other hand, where the AE had not taken any loan based on the ‘Corporate Guarantee’ extended by the other enterprise, then it does not fall under the scope of TP Provisions even after the amendment of Sec 92B by the Finance Act, 2012. [Bharti Airtel Ltd Vs Addl CIT] [2014] [43 Taxmann.com 150] [Delhi-Tribunal]
Where TP provisions are applicable, CUP method is to be used to benchmark the same.

Silver lining for non-resident remittances

Whether Tax is required to be deducted at source where the seller incurs a ‘Capital Loss’?  Held that it is not required to deduct TDS where the seller incurs a capital loss. [Hyderabad Tribunal in ‘Sanofi Pasteur Merieux Vs DIT] [2014] [43 Taxmann.com 399]

Schedule for DT and IDT Classes by Rp Sir for Nov 2014 CA Final

 

Morning Batch [At Vidyanagar]	Evening Batch [At S.R.Nagar]
Direct Taxes for CA Final Nov 2014: From 10th June 2014 to 10th Aug 2014; Morning 6.00 AM to 9.00 AM Indirect Taxes for CA Final Nov 2014: From 11th Aug 2014 to 25th Sep 2014; Morning 6.00 AM to 9.00 AM.	Direct Taxes for CA Final Nov 2014: From 10th June 2014 to 10th Aug 2014; Evening 6.00 PM to 9.00 PM.
Venue for Morning Batch Room No # 14; Hindi Mahavidyalaya; Adjacent to Durgabhai DeshMukh Hospital; Near Vidya Nagar Railway Station; O.U.Road, Hyderabad.	Venue for Evening Batch First Floor, New Vision Junior College, Lane Adjacent to Himalaya Book World, Sr.Nagar Police Station Road, S.R.Nagar, Hyderabad.
Contact: 9963 250 500; 98495 79413

IDT Morning Batch from 30th January 2014 onwards at Hindi Mahavidyalaya

Hi,

IDT classes for CA Final May 2014 and Nov 2014 are getting started from 30th Nov 2013 onwards at Hindi Mahavidyalaya;

Batch Duration: 43 to 45 Days;
Venue: Hindi Mahavidyalaya; Nallakunta; Hyderabad
Timings: Morning 6.00 AM to 9.00 AM


For enquiries: Pl contact 9963 250 500 / 98495 79413 [Preferable timings for enquiries: 10.30 AM to 5.00 PM]

 

The evening batch for Direct Taxes at Sr.Nagar will be from 27th Dec 2013

Hi,

Pl note that the evening batch for Direct Taxes will be starting from 27th Dec 2013 onwards at Sr.Nagar.
For further details you can call me on
+91-98495 79413
9963 250 500

Thank you
Rp