Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s. Trade Worth Chits Pvt Ltd., M/s. Souhardha Chits Pvt Ltd., M/s. Monarch Chits Pvt Ltd. Versus Additional Commissioner of Service Tax, Commissioner of Service Tax, Union of India

2017 (8) TMI 401 - KARNATAKA HIGH COURT

Levy of tax - chit fund business - sub- clause (V) of Sub-section 12 of Section 65 - Held that: - matter is remanded to the respondent No.1- Additional Commissioner of Service Tax, and the said respondent-Authority shall consider the said legal position and relevant provisions of the Act and pass appropriate orders in accordance with law and decide whether the ‘chit fund business’ is ‘cash management’ or ‘fund management’ or falls in taxable services in other Clauses of Section 65(12) of the Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with regard to imposition of Service Tax on the chit fund business of the present petitioners. 3. Mr.Raghuraman, learned counsel for the petitioners submitted before the Court that, in the recent decision of the Hon ble Supreme Court in the case of Union of India and Others -vs- M/s. Margadarshi Chit Funds (P) Ltd. Etc. in Civil Appeal Nos.5724-5725/2011 decided on 04.07.2017, the Hon ble Supreme Court has decided the said issue and has held that, the said chit fund business is neither cash man .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e of the Revenue was that chit fund amounts to cash management and cash management is one of the forms of fund management. Once we have held that chit fund business is not cash management or a business of managing cash, no further discussion on this issue is even required. However, dehors the issue of cash management, we are of the view that activity of managing chit fund does not amount to management of any type of fund. Even as per the definition from dictionary relied upon by the Revenue, fun .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

award a scholarship, or an insurance company setting aside money to pay its customer s claims. (Ref.http://www.investopedia.com/terms/f/fun d/asp) (b) Funds - All the financial resources of a firm, such as cash in hand, bank balance, accounts receivable. Any change in these resources is reflected in the firm s financial position. (Ref.http://www.businessdictionary.com/defini tion/funds.html) (d) Fund (i) Sum of money set aside and earmarked for a specified purpose. (ii) Accounting entity (simil .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eprint 2009 @ 370). (e) Fund management The business of Dealing with the investment of sums of money on behalf of clients (Ref.38 http://www.investorguide.com/ definition fund-management.html) (f) Asset Management - The function of managing assets on behalf of a customer, usually for a fee. Management of assets of a customer, usually for a fee. Broadly, the efficient control and exploitation of a company s assets, most commonly used to describe the management of any fund by a fund manager. (Ref. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f sub-section 12 of Section 65 even after its amendment by Finance Act, 2007. 38) For our reasons given above, we affirm the conclusion in the impugned judgment of the Andhra Pradesh High Court. We also hold that Kerala High Court has taken erroneous view and its judgment stands overruled. As a result, these appeals are dismissed. No costs. 5. Learned counsel for the petitioners also submitted that, even at the time of issuing the impugned Show Cause Notice on 08.10.2015, the matter was covered .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version