Not interested anymore? Unsubscribe. Having trouble viewing this email? View it in your browser.

Suvidha Digest
A One Stop Consultancy House

February 2015
          Issue IX

TABLE OF CONTENTS
Indirect Tax:
Date for calculation of limiting period for rebate under Notf. No. 11/2005
Constitutional validity on legal services upheld
SERVICE TAX NOT LEVIABLE ON WHEAT GRINDING
Service tax audit by departmental authorities under Rule 5A(2) is valid
Direct Tax:
SCOPE FOR COMPANY SECRETARIES UNDER THE DIRECT TAX CODE.
Subsidy
Subsidy Scheme on Handling Equipments of Potato Cold Storages under National Horticultural Board (NHB)

Our Gamut of Services:

•  Indirect Tax
•  Direct Tax
•  Financial Consultancy (Central/ State Governments Subsidy & Incentives
•  Project Consultancy & Loan Syndication
•  Empanelled Valuer ( with various banks/ FI’s)
•  Placement
•  Insurance
•  Mutual Funds
•  Advisory
•  Broking
•  Depository
•  Valuation Real Estate Consultants

•  Date for calculation of limiting period for rebate under Notf. No. 11/2005

Recently, the Mumbai Tribunal held in the case of Commissioner of Central Excise, PUNE-III versus M/S Meadwestvaco India Pvt Ltd (2014- TIOL-2359-CESTAT-MUM), that the relevant date for calculation of limitation period in respect of filing of refund claims in terms of Notification 11/2005 ST is one year from the date of payment of service tax.

Notification 11/2005 ST by itself does not provide any time limit for presenting the export claims.

more >

•  Constitutional validity on legal services upheld

Recently,the Bombay High Court in the case of PC. Joshi, Bombay Bar Association, Advocates Association of Western India Versus Union of India and Others (2014-TIOL-2279-HC-MUM-ST), upheld the constitutional validity of levy of service tax on Advocates and legal services.

The legislature by inserting such provision has not interfered in the constitutional guarantee of justice.

more >

•  SERVICE TAX NOT LEVIABLE ON WHEAT GRINDING

The Hon’ble Chennai CESTAT, recently in the case of Jayakrishna Flour Mills Pvt. Ltd 2014 (12) TMI 547 CESTAT-Chennai , held that the process of grinding wheat into wheat products such as maida, atta, suji and bran would amount to manufacture under Sec 2(f) of the Central Excise Act 1944, and hence would not be liable to service tax. In the instant case, revenue was demanding Service Tax under Business Auxiliary Service on a job-worker engaged in the activity of milling of wheat into wheat products like Atta, Suji, Maida etc. on the ground that such an activity does not amount to ‘manufacture’ and hence not chargeable to Service Tax.

The Hon’ble CESTAT held that new commodity with distinct name, character and use emerges from the activity of milling of wheat, therefore liable to excise.

Clause (f) of negative list of services as per Section 66D of the Finance Act 1994 introduced w.e.f. 01/07/2012 says that any process amounting to manufacture or production of goods is not taxable under Service Act. .

more >

•  Service tax audit by departmental authorities under Rule 5A(2) is valid

Recently, The Hon’ble Supreme Court has granted stay in the case of Travelite (India) Versus UOI And Others 2014 (8) TMI 200-DELHI HIGH COURT (reported in Issue XIV-September edition of our magazine) wherein it was held that Rule 5A(2) of Service Tax Rules,1994 as Ultra Vires.

The Delhi High Court had held that the only type of audit within the contemplation of the statute is that stipulated for in Section 74A, i.e. a special audit when only certain circumstances are fulfilled. The Parliament did not intend to provide for a general audit that every assessee may be subject to on-demand.

Dissatisfied with the above impugned judgment, department moved to Hon’ble Apex Court and a stay was granted on 18th December 2014.

more >

•  SCOPE FOR COMPANY SECRETARIES UNDER THE DIRECT TAX CODE.

An assessee is entitled to a refund from the Income Tax department u/s 237 of the Income Tax Act, 1961 ( or brevity “the Act”) if he/she has paid more taxes then his/her actual tax liability. The claim of refund must be made within one year from the end of Assessment Year in Form No-30. The refund shall not be allowed by the appropriate authority after the expiry of aforesaid time except as a result of any order passed in appeal or other proceeding under the Act.

Under the Direct Tax Code Bill, the scenario has been changed. In August 2010, the Government issued a revised discussion paper incorporating several changes in Direct Tax Code Bill, 1999 for comments from the stakeholders. The Government placed a revised version in the form of Direct Tax Code Bill, 2010 in the Lok Sabha. The same was referred to the Standing Committee of Finance for its review and comments.

more >

•  Subsidy Scheme on Handling Equipments of Potato Cold Storages under National Horticultural Board (NHB).

Introduction

National Horticulture Board has announced a scheme for Development of Commercial Horticulture through Production and Post Harvest Management; under Scheme – I. Under this Scheme all potato cold storages whether existing or new proposing to install new Material Handling Equipments i.e. Conveyor Belt(s) are eligible to get subsidy on the same.

Eligibility Criteria

All potato cold storages are eligible to get subsidy if they have installed material handling equipments on or after 12th December, 2013.

For new projects, the cost of material handling equipments, should be shown in project cost separately and should be appraised and approved by Financial Institutions.

For existing units who proposes to install material handling equipment; separate Term Loan with a minimum period of 3 years to be taken for installation of the said equipments.

Eligible Units

All potato cold storages whether existing or new proposing to install new Material Handling Equipments (Conveyor Belts, Pack House, Ripening Chamber, Refer Van, Retail Outlets, Pre- cooling unit, Primary processing etc) are eligible to get subsidy.


more >

 
 
Indirect Tax: Direct Tax: Project Consultancy & Loan Syndication Empanelled valuer, Subsidy/Incentives Financial Solutions Recruitment Solutions
Shilpi Bajoria
shilpi@suvidhaconsultants.com
9830931239
R.B Mandal
directtax@suvidhaconsultants.com
Sourav Gupta
9830016263 / 9836599200
Sunil Bhoruka (Projects) - sunil@suvidhaconsultants.com - 9830158714
Dindayal Jajodia (Subsidy) dindayal@suvidhaconsultants.com - 9830550018
Vikash Kumar Kedia
vikash@suvridhi.com
9830040804
Mr. Sandeep Agarwal
9339144910 / 033 22150852/53

cmd@suvidhajobs.in client@suvidhajobs.in www.suvidhajobs.in
For more details please visit our website: 
www.suvidhagroup.in  |  www.suvridhi.com  |  www.dreamacresrealty.in