Contractual rights whether constitutes capital assets? Article in this February 2012 issue of "Tax Amicus" dwells upon this topic in the light of recent Supreme Court judgment in the case of Vodafone. Duty structure of gold and silver has been changed both under Central Excise and Customs while customs duty has been increased on non-industrial diamonds. In case of EOUs, CESTAT holds that exemption is still available even when the letter of intent has been amended subsequent to the import. Supreme Court of India has held that exemption is not available unless all the conditions of the notification are followed and that Cenvat credit is available on goods used in testing tailor-made machines. Service Tax section of this Amicus covers clarifications on gross amount in case of composition scheme under Works Contract service and various issues arising under Construction services, and also a Bombay High Court order upholding constitutional validity of various provisions pertaining to the latter service. Under VAT, the Supreme Court has held that sale in duty-free shops at airports is not liable for VAT. Income Tax Appellate Tribunal's (ITAT) orders on transfer pricing and on permanent establishment are also part of this issue.
01 April 2013