Comprehensive Note on gifts, deemed gifts and deemed under-valuations incorporating proposals by the Finance Bill, 2010

Section 56(2) of the Income Tax Act, 1961 inter alia deals with receipts without considerations. Since most of such receipts tantamount to gifts, the provisions are popularly named as those of gifts and deemed gifts. Till 30 09 2009 only sum of money received without consideration was treated as income in the hands of the recipient  being either an individual or a HUF.

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To avoid penalty for late payment, pay excise duty with interest

WHEN section 11A(2B) of the Central Excise Act, 1944 made its appearance in the statute by the Finance Act, 2001 it came as a whiff of fresh air for assessees who had not paid, short paid, short levied/paid any duty of excise. The provision allowed a manufacturer to pay such un-paid Central Excise duty along with interest under section 11AB of the Central Excise Act, 1944 and inform the Central Excise officer who after being satisfied of this ascertainment lets go of the formality of issuance of the show cause notice in respect of the duty so paid .

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Penalty can’t be levied, if service tax is paid before issuance of show cause notice under Section 73(3)

SECTION73 (3) of Finance Act, 1994, provides for non-serving of notice under Section 73(1) by department in such cases where service tax has been paid before issuance of notice. However, there is no clarity whether department can still initiate proceedings for imposing penalty under Section 76 or 78. Though, CBEC clarified sometime back that all such cases where tax has been paid before issuance of notice can be closed without imposing penalty,

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Commercial Training or Coaching Services – Most Affected by finance Bill 2010

Finance bill inserted an explanation to Section 65(105) (zzc) and further issued notification no 03/2010 changes the whole gamut of this service.

Earlier the word “commercial” is used in connection with the Institution or organisation who is providing training or coaching and same is upheld by plethora of Judicial Pronouncement like in

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Excise duty notifications dated 27.02.2010 related to Union budget 2010-11 amendments and provisions

All the Excise duty Notification including Tariff and Non Tariff issued by Custom department in respect of budget proposals/provisions in Union Budget 2010-11.

Read our earlier Post on Major Amendment in Excise Duty made in Budget 2010-11 at the Link given below:-

Budget 2010-11: Major Amendment in Central Excise Duty

Notifications are as given below: – Please click the Notification No. to view the Notification.

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Custom duty notifications dated 27.02.2010 related to Union budget 2010-11 amendments and provisions

All the Custom duty Notification including Tariff and Non Tariff issued by Custom department in respect of budget proposals/provisions in Union Budget 2010-11.

Read our earlier Post on Major Amendment in Custom Duty made in Budget 2010-11 at the Link given below:-

Budget 2010-11: Summary of Major Amendment in Custom duty Laws

Notification are as given below:- Please click the Notification No. to view the Notification.

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Notification exempting the right to use packaged or canned software from whole of service tax subject to certain conditions

Notification No. 17/2010-Service Tax, New Delhi, the 27.02.2010

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service providing packaged or canned software, intended for single use and packed accordingly,

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ST Notification amending rules related to taxation of service Provided from outside India and Received in India

Seeks to amend rule 2, for clause (e) of the Taxation of Services (Provided from outside India and Received in India) Rules, 2006, so as to amend the definition of India to explain certain activities in the continental shelf and exclusive economic zone of India. Also, seeks to amend rule 3 to change the category of certain services from one to the other and.

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