Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Deputy Commissioner of Income Tax, Corporate Circle 1 (1) , Chennai Versus M/s. Amalgamations Ltd.

Disallowance u/s 40(a)(ia) - amount paid to seconded employees on which tax is not deducted at source - Held that:- Since the issue raised in this appeal is identical to the issue decided by this Bench of the Tribunal in the assessee’s own case for the subsequent assessment year 2010-11 what has been paid to the deputed personnel is a salary and hence the assessee was not liable to deduct tax at source from the payment made by it to IHC as reimbursement of salaries in respect of various personne .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

disputed that the deputed persons, wherever liable, have paid the tax on the salaries received by them and hence no further tax can be collected from the assessee. The order passed under ss. 201, and 201(1A) is bad in law and the CIT(A) had also erred in confirming the same. Needless to add, since the assessee was not liable to deduct tax under s. 194J, there is no question of levying any interest also under s. 201(1A)

Both the Revenue Authorities has not examined the following aspect .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ges payable by the assessee company to the assessee’s subsidiary company and also the decisions cited by the assessee hereinabove, we hereby remit back the matter to the file of the Ld. Assessing Officer to consider all these aspects discussed hereinabove and pass appropriate order as per merits and law. - Decided in favour of assessee.

Disallowance invoking Section-14A of the Act and Rule 8D of the Rules - Held that:- This issue is also identical to the issue raised in the assessee’s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fore us and if found to be so, delete the addition made on account of Section-14A of the Act. - Decided in favour of revenue for statistical purposes - I.T.A.No.1712/Mds./2013 - Dated:- 29-9-2015 - SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER For The Appellant : Dr.B.Nischal, JCIT, D.R For The Respondent : Mr.R.Vijayaraghavan,Advocate .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Act for not deducting tax on the payment of ₹ 1,13,51,946/- made to the seconded employees from the assessee s subsidiary company which is to be reimbursed by the assessee s subsidiary company. 2. The Ld. CIT (A) had erred in directing the A.O to delete the disallowance made by invoking Section-14A of the Act and Rule 8D of the Rules. 3. The brief facts of the case are that the assessee company is engaged in the business of consultancy & export agency services, investments, Mar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es on which tax is not deducted at source. During the course of scrutiny assessment proceedings, it was observed by the Ld. Assessing Officer that the assessee had not deducted tax on the remuneration paid to the seconded employees from the assessee s subsidiary company. On query by the Ld. Assessing Officer as to why tax is not deducted at source?, the assessee had explained that the remuneration paid to the seconded employees by the assessee is to be reimbursed by the assessee s subsidiary com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oyees because of the following reasons:- i. There exist a separate agreement to render services to the assessee company by the other party i.e. M/s.Simpson & C. Ltd. ii. Being both the parties are different legal entities and one party rendered services to other party, the provisions of Chapter XVII-B is attracted. iii. None of the employees or man power which rendered the services under this head of expenses are in the roll of the assessee company and in fact they are all employees of the o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

en and materials are major inputs either directly or indirectly for any business activity. The assessee s explanation that there is no income or benefit accrued out of such services rendered by M/s. Simpson Co. Ltd, will vitiate the entire claim of such expenses under the business head since it was not incurred for the purpose of business. Hence such expenses without any corresponding income needs disallowance per-se as there is no matching concept between the income and the expenditure claim. 4 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

relevant portion of the order is extracted herein below for reference We have heard both the parties and carefully perused the materials available on record. The claim of the assessee is that the assessee is only making payment to its seconded employees from the assessee s subsidiary company on behalf of its subsidiary company which is to be reimbursed to the assessee company by the assessee s subsidiary company. The tax is deducted at source directly by the assessee s subsidiary company for th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

salary payment would amount to double deduction of tax at source. It is apparent from the facts of the case that the assessee company is obtaining some service from its subsidiary company for which the assessee company pays service charges to its subsidiary company. Ld. A.R. submitted before us that the amount paid to the seconded employees from the assessee s subsidiary company is not the additional remuneration paid to the assessee s subsidiary company but only a payment in the nature of advan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ny profession. If an accounts executive was deputed, he was doing the duty as was assigned to him by his employer. It cannot be said that he was carrying on the profession of accountancy and that what he received were fees in the course of carrying on such profession. In fact, what he received was merely salary from the employer for doing the duty assigned to him by the employer. Similarly, if an engineer was deputed, the engineer was not rendering any technical consultancy to the assessee. He w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

services . This is because Expln. 2 clearly excludes consideration which would be income of the recipient chargeable under the head salaries . In the present case, it is not in dispute that what is reimbursed by the assessee is the actual salary of the• deputed personnel. Undoubtedly, far each deputed person, the amount received by him is income chargeable under the head salary and therefore, it cannot be termed as fees for technical services What s. 194J envisages is that what the recipien .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

laries , In the- present case, what has been paid to the deputed personnel is a salary and hence the assessee was not liable to deduct tax at source from the payment of ₹ 39,55,161 made by it to IHC as reimbursement of salaries in respect of various personnel deputed to the hotel of the assessee. The alternative contention of the counsel also has to be accepted in view of the clear provisions of the Explanation to s. 191. Assuming, without admitting, that the assessee was liable to deduct .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

had also erred in confirming the same. Needless to add, since the assessee was not liable to deduct tax under s. 194J, there is no question of levying any interest also under s. 201(1A). Since the Both the Revenue Authorities has not examined the following aspects and held the issue against and in favour of the assessee; i.e., whether the tax has been duly deducted at source by the assessee s subsidiary company on the payment made by the assessee to the seconded employees from the assessee s su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

scussed hereinabove and pass appropriate order as per merits and law. We further direct the assessee to co-operate with the Revenue in its proceedings to expedite their orders. This ground is accordingly disposed off. Since the issue raised in this appeal is identical to the issue decided by this Bench of the Tribunal in the assessee s own case for the subsequent assessment year 2010-11, this appeal is also disposed off with similar directions to the Ld. Assessing Officer extracted herein above .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ai Bench of the Tribunal in the case EIH Associates Hotels Vs. CIT reported in 2013-TIOL-796-ITAT-MAD-A.Y 2008-09 dated 17.2.2013, we hereby direct the Ld. Assessing Officer to verify whether the fact of the case is identical as to what is submitted by the Ld. A.R before us and if found to be so, delete the addition made on account of Section-14A of the Act. 6. In the result, the appeal of Revenue is partly allowed for statistical purposes as indicated herein above. Order pronounced on 29th Sept .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ex < .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

SemiHidden= false UnhideWhenUsed= false QFormat= true Name= heading 1 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ty= 39 Name= toc 6 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed= false Priority= 1 SemiHidden= false UnhideWhenUsed= false QFormat= true Name= No Spacing />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alse UnhideWhenUsed= false Name= Medium Grid 2 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Name= Medium Shading 1 Accent 1 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alse Name= Medium Grid 2 Accent 1 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

den= false UnhideWhenUsed= false Name= Medium Shading 1 Accent 2 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ption Locked= false Priority= 72 SemiHidden= false UnhideWhenUsed= false Name= Colorful List Accent 2 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

edium List 2 Accent 3 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alse UnhideWhenUsed= false Name= Light List Accent 4 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d= false Priority= 70 SemiHidden= false UnhideWhenUsed= false Name= Dark List Accent 4 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Accent 5 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

henUsed= false Name= Colorful Grid Accent 5 />

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Forum: GST on RCM on rent in a unregistered state

Forum: COMPOSITION SCHEME

Forum: Input Tax Credit - Reg

Forum: GST Invoice

Article: Websites of Government Departments need lot of improvement. We are noticing detoriations in them for example, case of website of ITAT.

Highlight: Levy of additions tax u/s 115O on distribution of dividend - shares of its profits declared as distributable among the shareholders is not impressed with the character of the profit from which it reaches the hands of the shareholder - not to be bifurcated as agriculture and non-agriculture dividend - SC

Highlight: Rate of GST on old and scrap buses - 28% or 18% - at such initial tender process initiated by the Respondents-KSRTC, the present petitions filed by the petitioners are premature and misconceived and do not require any interference by this Court at this stage. - HC

Forum: Rent a cab operator

Highlight: In view of amendment made u/s 132A of the Income Tax Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal, SC dismissed the appeal of the assessee

Highlight: Validity of Assessment Order - period of limitation u/s 153 (2A) is applicable even if the entire order was not set aside but matter was remanded back for for limited aspects with directions - HC

News: Note ban was a shake-up, achieved its main objectives

Notification: Amendments in the notification No.5/2017- Integrated Tax (Rate) dated the 28th June, 2017.

Highlight: Levying interest u/s 234C - interest is to be charged on the returned income and not on assessed income.

Highlight: Accrual of income - sale of right to develop and sell incentive FSI under LOI - till the conditions of LOI are fulfilled transfer is not complete and income does not accrue to the assessee

Highlight: TPA - determination of ALP - TP adjustment by applying Bright Line Test (BLT) is not sustainable on protective basis having no statutory mandate.

Highlight: Safeguard Duty - Advance License Scheme - as there is no exemption from safeguard duty leviable under Section 8C, which is imposed on the goods imported from China, the importer has to pay safeguard duty

Highlight: Manufacture - process of cutting of waste plastic container - Such plastic containers before and after cutting are nothing but waste / scrap - Not a manufacturing activity as no new product emerges.

News: NITI Aayog and Govt. of Assam organizes workshop on health sector reforms in Guwahati; launches SATH- Sustainable Action for Transforming Human Capital

Notification: Seeks to amend notification no. 5/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding restriction of refund on corduroy fabrics

Notification: Seeks to amend notification no. 2/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst exemptions

Forum: GSTR 3B Rectification

Notification: seeks to exempt Skimmed milk powder, or concentrated milk

Notification: Seeks to amend notification no. 2/2017- integrated tax(rate) dated 28.06.2017 to give effect to GST council decisions regarding GST exemptions.

Notification: Seeks to amend notification no. 1/2017- central tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates

Notification: Seeks to amend notification no. 1/2017- integrated tax(rate) dated 28.06.2017 to give effect to gst council decisions regarding gst rates.

News: Notification Issued For GST Actionable Claim On Branded Food Products

Highlight: Classification printed computer stationary/manifold Business Forms - to be classified under Chapter Heading 4820.00 or under Chapter Heading 4901.90 - items like A4 sheets, advertisement and job card to be classified under Chapter 49

Article: RCM – Applicability to persons not liable to get registered us 23(1)

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

News: GST Refund - Blockage of Working Capital of Exporters - earlier also there was a normal blockage of funds for a period of 5-6 months at least

News: Clarification about Transition Credit - ₹ 1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 - claim of credit of ₹ 65,000 crore is not unexpected

Article: 20 Things You must know about E Way Bills in GST Law

Article: MISTAKES IN DRAFTING

Highlight: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg. - Circular

Highlight: The definition of "subsidiary company" or "subsidiary" u/s 2(87) of the Companies Act, 2013 shall come into force w.e.f. 20-9-2017

Highlight: Central Government notified the All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017 - Notification

Notification: All Industry Rates of Duty Drawback Schedule w.e.f. 1.10.2017

Circular: Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review

Notification: Exemptions on supply of services under UTGST Act

Notification: Rates for supply of services under UTGST Act

Notification: Exemptions on supply of services under IGST Act

Notification: Rates for supply of services under IGST Act

Notification: List of Exempted supply of services under the CGST Act

Notification: Rates for supply of services under CGST Act

Highlight: Acceptance of deposits by companies from its members - conditions relaxed in case of Specified IFSC Public company and a private company - Rule 3 amended

Notification: Rate of exchange of conversion of the foreign currency with effect from 8th September, 2017

News: Tax Payers Advised To Confirm Identities Of Income Tax Search Authorities

Notification: Amendment in Appendix 3 (SCOMET items) to Schedule- 2 of ITC (HS) Classification of Export and Import Items 2012

Notification: The Customs and Central Excise Duties Drawback Rules, 2017

Circular: The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes -reg.



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version