Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2015 (11) TMI 1546

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in the case of NGC Network Asia LLC (2009 (1) TMI 174 - BOMBAY HIGH COURT ) wherein it has been held that interest under section 234B and 234C is not leviable in the facts of the case. Nothing contrary was brought to our knowledge, so following the same we are not inclined to interfere in the findings of DRP-II , Mumbai who has correctly held that interest under section 234B is not allowable in the case of nonresident. - Decided in favour of assessee. - ITA No. 1023/Mum/2014, ITA No. 659/Mum/2014 - - - Dated:- 6-11-2015 - SHRI SHAILENDRA KUMAR YADAV, JM AND SHRI RAMIT KOCHAR, AM Revenue by: Shri S.K. Saikia Assessee by: Shri Milin Thakore O R D E R PER SHAILENDRA KUMAR YADAV, JM These are cross appeals by .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ause they did not involve any element of export turnover. It was observed: just as commission received by an assessee is relatable to exports and yet it cannot form part of turnover , excise duty and sales-tax also cannot form part of the turnover . The object of the legislature in enacting Section 80 HHC of the Act was to confer a benefit on profits accruing with reference to export turnover. Therefore, turnover was the requirement. Commission, rent, interest etc. did not involve any turnover. It was concluded that sales tax and excise duty like the aforementioned tools like interest, rent etc. also do not have any element of turn over . 15. In CIT v. Lakshmi Machine Works (supra), the Supreme Court approved the decision of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... to the government. 18. The Court further notes that the position has been made explicit by the CBDT itself in two of its circulars. In Circular No. 4/2008 dated 28th April 2008 it was clarified that Service tax paid by the tenant doesn't partake the nature of income of the landlord. The landlord only acts as a collecting agency for Government for collection of Service Tax. Therefore, it has been decided that tax deduction at source) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax. In Circular No. 1/2014 dated 13th January 2014, it has been clarified that service tax is not to be included in the fees for professional services or technical ser .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates