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Interest u/ss 234A to 234C is payable only up to the s. 245D(1) order

October 24th, 2010

Brij Lal
vs.
CIT
(Supreme Court – 5 Judge Bench)

While interest u/ss 234A to 234C are applicable to settlement commission proceedings, it is payable only up to the s. 245D(1) order and cannot be levied u/s 154

In the light of the divergent judgements of the Supreme Court in Anjum Ghaswala 252 ITR 1, Hindustan Bulk Carrier 259 ITR 449 and Damani Brothers 259 ITR 475, a reference was made to the Full Bench of the Supreme Court to answer the questions (i) whether ss. 234A, 234B & 234C were applicable to Settlement Commission proceedings, (ii) whether such interest is payable up to the date of the s. 245D(1) order or up to the date of the s. 245D (4) order and (iii) whether the Settlement Commission can re-open its concluded proceedings by having recourse to s. 154 so as to levy interest u/s 234B, if it was not done in the original proceedings?

Held By The Full Bench:

(i) Though Chapter XIX- A is a self-contained Code, the procedure to be followed by the Settlement

Benefits of Presumptive Tax Scheme

October 24th, 2010

The Direct Taxes Code Bill, 2010 (DTC) seeks to reach out to the diehard tax-evaders in business by offering them virtually an olive branch, if not by raising a white flag. On a turnover up to Rs 1 crore – as against the extant norm of Rs 60 lakh – one can get away with a tax on Rs 8 lakh with the profit being presumed at 8 per cent of turnover. In other words, the presumed profit margin for those in business would be deemed to be just 8 per cent, irrespective of the nature of business.

Professionals kept out

The pristine original draft of the DTC reached out to professionals too but the enormity of the giveaway was perhaps realised in the nick of time. Professionals have been kept out of the purview of presumptive taxation by DTC. This is as should be because professionals in view of their exalted status ought to behave more

RBI may accept IFRS but won’t totally give up prudential norms

October 24th, 2010

Accounting regulator the Institute of Chartered Accountants of India (ICAI) today said that the Reserve Bank of India (RBI) may accept global accounting practice IFRS but will not give up prudential norms completely as they saved Indian banks from global financial meltdown.

Prudential norms imply regulations framed by RBI to avoid defaults by banks. These norms include maintaining minimum capital adequacy ratio of 9 per cent, keeping a portion of deposits with RBI in cash and other sectoral regulations.

“The RBI may accept the International Financial Reporting Standards-9 (IFRS-9) but may not be giving up the prudential norms in totality. Prudential norms saved Indian banks. They are ruled based. RBI may contemplate a change but not completely,” ICAI President Amarjit Chopra said.

Equity investments unsafe, EPFO seeks govt guarantee

October 24th, 2010

Terming equity investments “unsafe”, the Employees Provident Fund Organisation (EPFO) has asked for a government guarantee if the retirement fund manager is mandated to comply with the Finance Ministry demand for investing up to 15 per cent of its funds in stocks.

“Our Board of Trustees felt investments in the capital market are unsafe and do not serve well for someone like us who want very stable returns,” Central Provident Fund Commissioner Samirendra Chatterjee told reporters on the sidelines of a function organised by AK Capital Services here.

“If they want us to invest, please give us a guarantee for the same, we will invest,” he added.

Citing revised regulations, the Ministry of Finance has been asserting that it has the right to prescribe

Dasgupta asks Centre to do away with GST council

October 24th, 2010

In what could delay further the implementation of Goods and Services Tax (GST), state panel chief Asim Dasgupta has asked the Centre to do away with GST council and the dispute settlement body in the constitutional amendment bill.

“Empowered Group of State Finance Ministers Chairman Asim Dasgupta recently met Union Finance Minister Pranab Mukherjee and has submitted a proposal to do away with GST council and the dispute settlement body in the constitutional amendment bill,” a source said.

The empowered group of state finance ministers is likely to discuss these two proposals at a meeting on October 29-30.

Vodafone asked to pay Rs 11,218 crore

October 24th, 2010

The government on Friday asked Vodafone to pay Rs 11,218 crore (Rs 112.18 billion) in taxes within a month for the acquisition of Hutchison’s stake in the telecom joint venture in India in 2007.

“The IT department on Friday issued an order raising a tax demand of Rs 11,217.95 crore on Vodafone International holdings BV treating it as an assessee in default… for failure to deduct tax as required before making a payment of $11,076 million (about Rs 55,000 crore) to Hutchison Telecommunication International Ltd,” an official statement said.

The notice was issued following the Supreme Court directive on September 27 to the IT assessing officer to determine and quantify the tax liability of Vodafone within four weeks.

Interest u/ss 234A to 234C is payable only up to the s. 245D(1) order

Benefits of Presumptive Tax Scheme

RBI may accept IFRS but won’t totally give up prudential norms

Equity investments unsafe, EPFO seeks govt guarantee

Dasgupta asks Centre to do away with GST council

Vodafone asked to pay Rs 11,218 crore

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