Res. Members,
Below is link for ASAP Utilities. It will be very helpful in excel. Just Download & install it.
The extra menu will be available in your excel with too many good functions.....
http://www.asap-utilities.com/download-asap-utilities.php
Friday, April 24, 2009
OUTCOME OF SUPPORT OF ALL THE MEMBERS OF BCAA
The Delhi High Court has on April 18, 2009 struck down the levy of service tax on renting of immovable property as "unconstitutional".
For_Immediate_Release:
India, Republic of (Press Release) April 18, 2009 --
The Delhi High Court has today struck down the levy of service tax on renting
of immovable property as "unconstitutional", while deciding 26 writ petitions of different petitioners, by a combined order. The division bench of the Delhi High Court comprised of Mr. Justice Badar Durrez Ahmed and Mr. Justice Rajiv Shakdher observed that service tax
shall not be levied on renting of immovable property. Alishan Naqvee, Advocate, LexCounsel Law Offices, who represented his clients in two of the petitions disposed off today, tells that the category of "renting of immovable property service" was introduced by the Finance Act of 2007. This, in effect brought renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course of furtherance of business and commerce, within the service tax net with effect from June 1, 2007. This new levy severely impacted business models across India as most of the rent arrangements did not even stipulate it beforehand. The businesses across India opted to en masse challenge the constitutionality of levy of service tax on rent, on the primary grounds that renting does not involve any service, and the Central Government is not empowered to tax consideration for transfer of rights in immovable property, being a state subject as per the Constitution of India. Few High Courts, including the High Court of Mumbai, Delhi, Gujarat, Andhra Pradesh, Kolkata and Chennai reportedly granted interim reliefs to the petitioners from payment of service tax until final disposal of their matters. The stays were however granted subject to undertakings by the petitioners, mainly tenants, to deposit the service tax amount with the Government if the tax was ultimately held constitutional. The Delhi High Court however is the first High Court to deliver the final order in the matter that would have persuasive value for the other High Courts.
The detailed order of the Delhi High Court is expected to be available within the next couple of working days. One issue that needs to be seen is whether the Delhi High Court has expressly limited the applicability of its judgment to its territorial jurisdiction. Notably, while granting interim orders, the Delhi High Court had expressed that the stays would be operative within the territorial jurisdiction of the Court. Consequently, a number of petitioners, having operations in multiple states, were constrained to knock at the doors of the other High Courts. To avoid multiplicity of litigation, the Union of India preferred a transfer petition to the Supreme Court of India seeking transfer of all writ petitions pending before different High Courts of India, to the Delhi High Court for single window adjudication. It is open for the Government to prefer an appeal before the Supreme Court of India, challenging the decision of the Delhi High Court. The judgment however delivers great relief to the business by helping liquidity in the current times.
compiled by CA Rajesh P Langalia
The Delhi High Court has on April 18, 2009 struck down the levy of service tax on renting of immovable property as "unconstitutional".
For_Immediate_Release:
India, Republic of (Press Release) April 18, 2009 --
The Delhi High Court has today struck down the levy of service tax on renting
of immovable property as "unconstitutional", while deciding 26 writ petitions of different petitioners, by a combined order. The division bench of the Delhi High Court comprised of Mr. Justice Badar Durrez Ahmed and Mr. Justice Rajiv Shakdher observed that service tax
shall not be levied on renting of immovable property. Alishan Naqvee, Advocate, LexCounsel Law Offices, who represented his clients in two of the petitions disposed off today, tells that the category of "renting of immovable property service" was introduced by the Finance Act of 2007. This, in effect brought renting, letting, leasing, licensing or other similar arrangements of immovable property for use in the course of furtherance of business and commerce, within the service tax net with effect from June 1, 2007. This new levy severely impacted business models across India as most of the rent arrangements did not even stipulate it beforehand. The businesses across India opted to en masse challenge the constitutionality of levy of service tax on rent, on the primary grounds that renting does not involve any service, and the Central Government is not empowered to tax consideration for transfer of rights in immovable property, being a state subject as per the Constitution of India. Few High Courts, including the High Court of Mumbai, Delhi, Gujarat, Andhra Pradesh, Kolkata and Chennai reportedly granted interim reliefs to the petitioners from payment of service tax until final disposal of their matters. The stays were however granted subject to undertakings by the petitioners, mainly tenants, to deposit the service tax amount with the Government if the tax was ultimately held constitutional. The Delhi High Court however is the first High Court to deliver the final order in the matter that would have persuasive value for the other High Courts.
The detailed order of the Delhi High Court is expected to be available within the next couple of working days. One issue that needs to be seen is whether the Delhi High Court has expressly limited the applicability of its judgment to its territorial jurisdiction. Notably, while granting interim orders, the Delhi High Court had expressed that the stays would be operative within the territorial jurisdiction of the Court. Consequently, a number of petitioners, having operations in multiple states, were constrained to knock at the doors of the other High Courts. To avoid multiplicity of litigation, the Union of India preferred a transfer petition to the Supreme Court of India seeking transfer of all writ petitions pending before different High Courts of India, to the Delhi High Court for single window adjudication. It is open for the Government to prefer an appeal before the Supreme Court of India, challenging the decision of the Delhi High Court. The judgment however delivers great relief to the business by helping liquidity in the current times.
compiled by CA Rajesh P Langalia
OUTCOME OF SUPPORT OF ALL THE MEMBERS OF BCAA
DEPRECIATION ON NEW COMMERCIAL VEHICLES:
The eligibility for claiming depreciation @50% on New Commercial Vehicles has been extended from 1st April,2009 to 1st October,2009. Hence, the new commercial vehicles acquired upto 30th September,2009 are eligible for claiming higher depreciation @50%
New Depreciation Schedule
III. MACHINERY AND PLANT
(via) New commercial vehicle which is acquired on or after the 1st day of January, 2009 but before the 1st day of [April, 2009] October,2009 and is put to use before the 1st day of [April, 2009] October,2009 for the purposes of business or profession [See paragraph 6 of the Notes below this Table] 50.
Income-tax (Eleventh Amendment) Rules, 2009 - Amendment in New Appendix 1
NOTIFICATION NO. 37/2009 [F.No.142/01/2009-TPL],
DATED 21-4-2009
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules 1962. Namely:
1. 1. (1) These rules may be called the Income-tax (Eleventh Amendment) Rules, 2009.
(2) They shall come into force with effect from the 1st day of April, 2010.
2. 2. In the Income-tax Rules, 1962, in the Table to New Appendix 1, in Part-A relating TANGIBLE ASSETS, under the heading III, MACHINERY AND PLANT, in sub-item (via) of item (3), for the words and figures 1st day of April, 2009, the words and figures 1st day of October, 2009 shall be substituted at both the places.
compiled by CA Rajesh P Langalia
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