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20 February, 2018

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TDS @ 20% For Non PAN Foreign Assessees - Delhi HC Reads Down Stating Treaty Supremacy

TDS @ 20% For Non PAN Foreign Assessees - Delhi HC Reads Down Stating Treaty Supremacy

TDS liability @20% - payment to non-residents not having PAN - Provisions of section 206AA applicability - Levy of 20% in the case of outward remittances in the hands of the payer ‘the deductor’ - applicability to assessee that are non-residents of India - Held that:- Having regard to the position of law explained in Azadi Bachao Andolan (2003 (10) TMI 5 - SUPREME Court) and later followed in numerous decisions that a Double Taxation Avoidance Agreement acquires primacy in such cases, where reciprocating states mutually agree upon acceptable principles for tax treatment, the provision in Section 206AA (as it existed) has to be read down to mean that where the deductee i.e the overseas resident business concern conducts its operation from a territory, whose Government has entered into a Double Taxation Avoidance Agreement with India, the rate of taxation would be as dictated by the provisions of the treaty.


2018 (2) TMI 1289 - DELHI HIGH COURT
Danisco India Private Limited Versus Union of India And ORS.
W.P.(C) 5908/2015
Dated: - 05 February 2018
Judgment / Order
MR. S. RAVINDRA BHAT AND MR. A. K. CHAWLA, JJ.
For The Petitioner : Mr. Sujit Ghosh, Ms. Kanupriya Bhargava and Ms. Mannat Waraich, Advs.
For The Respondents : Mr. Prasanta Verma, SCGC with Ms.Shalu Goswami, Adv. for UOI/R1. Mr. Ruchir Bhatia, Sr. Standing Counsel and Mr. Puneet Rai, Jr. Standing Counsel for Income Tax Deptt. And Mr. C. Mukund, Ms.Geetika Matta and Mohd. Farib Ahmed, Advs.
ORDER

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Cabinet approves New Bill to ban Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018

Cabinet approves New Bill to ban Unregulated Deposit Schemes and Chit Funds (Amendment) Bill, 2018

February 20, 2018
  • Contents
In a major policy initiative to protect the savings of the investors, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to introduce the following bills in the Parliament:-
(a) Banning of Unregulated Deposit Schemes Bill, 2018 in parliament &
(b) Chit Funds (Amendment) Bill, 2018

10 February, 2018

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GST regime not user-friendly, says Bombay High Court

GST regime not user-friendly, says Bombay High Court
The Bombay High Court said the goods and services tax (GST) regime wasn't easy to use, questioning the celebratory midnight session of Parliament that was held to mark its launch. It called on those responsible for GST implementation to resolve glitches in the system that have led to frustration on the part of companies trying to file returns.

"The regime is not tax friendly," the court observed during the hearing of a case on February 6. "We hope and trust that those in charge of implementation and administration of this law will at least now wake up and put in place the requisite mechanism."

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Check Shipping Bill Data of Your Export First on ICEGATE :- DGFT Advises

Check Shipping Bill Data of Your Export First on ICEGATE :- DGFT Advises

Advise to exporters to promptly check Shipping Bill transmission status on ICEGATE and DGFT websites.

01 February, 2018

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{Video - 5 Mins} Income Tax Changes Budget 2018 - By CA Ankit Gulgulia (Jain)

{Video - 5 Mins} Income Tax Changes Budget 2018 - By CA Ankit Gulgulia (Jain)

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Long Term Capital Gains on Equity Shares & Equity Oriented Funds Taxed @ 10% - Modus of Computation with Sample Calculation


Long Term Capital Gains on Equity Shares & Equity Oriented Funds Taxed @ 10% - Modus of Computation with Sample Calculation

By CA Ankit Gulgulia (Jain)
As Expected by Many the Finance Minister Arun Jaitley has Introduced Long Term Capital Gains in Equity Shares and Equity Oriented Funds at the Tax Rate of 10%. 
The Taxes shall arise for Gains Booked on Long Term Capital Assets being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust, made on or after the 1st day of April, 2018

For facilitating this taxation, A New Section 112A have been Introduced. The Provisions of 112A are as follows:-

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Benefits of Chapter VIA Deductions only allowable now if Return filed within Deadlines of 139(1)


Benefits of Chapter VIA Deductions only allowable now if Return filed within Deadlines of 139(1)

By CA Ankit Gulgulia (Jain)

All Chapter VIA – Heading C Deduction shall now be allowable only if the assessee has duly filed the returns on or before the Due Dates Prescribed under Section 139(1). Note that Chapter VIA heading C Includes following Sections. Note Deduction under Section 80C not covered and deduction will comtinue to be eligible even if filed after due dates.

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Real Estate ALERT – INCOME Tax Will Only Consider Turnover as per ICDS


Real Estate ALERT – INCOME Tax Will Only Consider Turnover as per ICDS

BY CA Ankit Gulgulia (Jain)

Finance Bill, 2018 has newly inserted Section 43CB which provides that profits and gains arising from Construction Contract shall be determined in accordance with PUCM Method of ICDS Only
"43CB. ( 1) The profits and gains arising from a construction contract or a contract for providing services shall be determined on the basis of percentage of completion method in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145:
Provided that profits and gains arising from a contract for providing services,-
(i) with duration of not more than ninety days shall be determined on the basis of project completion method;

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Real Estate Price within 5% of Circle Rate is allowable without any Income Tax Adjustment


Real Estate Price within 5% of Circle Rate is allowable without any Income Tax Adjustment

By CA Ankit Gulgulia (Jain)

In Current Scenario where the Transaction Prices of Real Estate Transfer was below the Circle Rate, the Differential would require the tax sufferance. 

Now It is amended that where the Real Estate Transaction Price is within 5% of Circle Rate, there shall be No Adjustment for Tax Purpose.

Hence Simultaneous Amendment to Section 43CA (PGBP), 50C (Capital Gains) and 56(2) (Income From Other Sources ) have been made as under.

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Foreign Exchange Gains and Losses allowed under Income Tax only as per ICDS, Not as per Audited Books any More


Foreign Exchange Gains and Losses allowed under Income Tax only as per ICDS, Not as per Audited Books any More

By CA Ankit Gulgulia (Jain)
Finance Bill, 2018 will Newly Insert Section 43AA which reads as under:-
"43AA.( 1) Subject to the provisions of section 43A, any gain or loss arising on account of any change in foreign exchange rates shall be treated as income or loss, as the case may be, and such gain or loss shall be computed in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145.
(2) For the purposes of sub-section ( 1), gain or loss arising on account of the effects of change in foreign exchange rates shall be in respect of all foreign currency transactions, including those          relating to-          
(1) monetary items and non-monetary items;
(it) translation of financial statements of foreign operations;
(iii) forward exchange contracts;
(iv) foreign currency translation reserves.".