Connect us       New User?     Subscribe Now
Confirm your Email ID for Updates
03.10.2015 - Voice of CA presents - Updates
Saturday, October 3, 2015


I.  Seminar on Real Estate Transactions in Income Tax, Service-tax and GST:

VOICE OF CA is organizing the captioned Seminar at 3.00 PM on Saturday, the 17th October, 2015 in the Aiwan-E-Ghalib Auditorium, Mata Sundari Lane [Near ITO], New Delhi – 110 002.  The topics to be deliberated and the faculty are as under :

Registration : 3.00 PM to 3.30 PM


Session I – 3.30 PM – 4.45 PM    Faculty: CA. (Dr.) Girish Ahuja
(1)    Real Estate Transactions in Income Tax

Session II – 4.45 PM – 6.00 PM  Faculty: CA. Ashok Batra 
(1)    Service Tax vis-à-vis Real Estate Transactions – Related Issues
(2)    GST vis-à-vis Real Estate Transactions – Possible issues     

We believe that participation in the above Seminar will help enlarge our horizon and understanding of the subject matter and in turn to serve our clients yet more effectively.  We thus invite you to attend and actively participate in the above Seminar.  You may also please bring the above to the attention of your fellow colleagues. The deliberations will conclude with tea and snacks.

The detail of the seminar with registration process will follow soon.


II. Headlines Today:    

  1. Govt. notifies provisions of FATCA entered with USA; effective from August 31, 2015  (Click for detail)
  2. MCA asks companies to submit annual filings on time  (Click for detail)
  3. HC directive over plea for service tax exemption  (Click for detail)
III.  Direct Taxes Case Laws:

1.  DIT Vs. Mitchell Drilling International Pvt. Ltd., I.T.A. No. 403/2013, Date of Order: 28.09.2015, High Court of Delhi

Whether the amount of service tax collected by the Assessee from its various clients should have been included in gross receipt while computing its income under the provisions of section 44BB of the Act?

Held No.

The Court holds that for the purposes of computing the ‘presumptive income’ of the assessee for the purposes of Section 44 BB of the Act, the service tax collected by the Assessee on the amount paid t it for rendering services is not to be included in the gross receipts in terms of Section 44 BB (2) read with Section 44 BB (1). The service tax is not an amount paid or payable, or received or deemed to be received by the Assessee for the services rendered by it. The Assessee is only collecting the service tax for passing it on to the government. The Court further notes that the position has been made explicit by the  CBDT itself in two of its circulars. In Circular No. 4/2008 dated 28th April 2008 it was clarified that “Service tax paid by the tenant doesn't partake the nature of "income" of the landlord. The landlord only acts as a collecting agency for Government for collection of Service Tax.

Therefore, it has been decided that tax deduction at source) under sections 194-I of Income Tax Act would be required to be made on the amount of rent paid/payable without including the service tax.’ In Circular No. 1/2014 dated 13th January 2014, it has been clarified that service tax is not to be included in the fees for professional services or technical services and no TDS is required to be made on the service tax component under Section 194J of the Act.

(Please click here for judgment)

2.  CIT Vs. Smt B S Shanthakumari, I.T.A. No. 165/2014, Date of Order: 13.07.2015, High Court of Karnataka

Whether assessee is entitled to benefit u/s 54F, where assessee has not placed any material on record to show that he had commenced the construction and completed the same within three years from the date of sale of her property?

Held Yes

Section 54 F is a beneficial provision which promotes for construction of residential house. Such provision has to be construed liberally for achieving the purpose for which it is incorporated in the statute. The intention of the legislature, as could be discerned from the reading of the provision, would clearly indicate that it was to encourage investment in the acquisition of a residential plot and completion of construction of a residential house in the plot so acquired. A bare perusal of the said provision does not even remotely suggest that it intends to convey that such construction should be completed in all respect in three years and /or make it habitable.

The essence of said provision is to ensure that assessee who received capital gains would invest same by constructing a residential house and once it is established that consideration so received on transfer of his long term capital asset has invested in constructing a residential house, it would satisfy the ingredients of S. 54F. if the assesee is able to establish that he had invested the entire net consideration within the stipulated period, it would meet the requirement of S. 54F and as such assessee would be entitled to get the benefit of S. 54F of the Act.

(Please click here for judgment)     

IV.  Reported Cases:

Direct Taxes Segment:

1.  Since issue decided by Commissioner (Appeals) was not arising out of orders of any of lower authorities, order passed was not only incorrect but also beyond his jurisdiction. 
2.  When once it is established that land owned by assessee has been used for agricultural purpose, he becomes entitled for claim under section 54B on sale of land even if he is not a cultivator himself but gets it cultivated under his supervision.
(Please click here for detail)


3rd Global Tax Summit:

1.   The Confederation of Indian Industry (CII) is organizing its day long 3rd Global Tax Summit.  This is on Thursday, 8 October 2015 at Shangri-La’s, Eros Hotel, New Delhi. The topics to be deliberated at the Summit are as follows:


·       Spillovers of the Global Tax changes-How is India keeping pace

·       Global controversy trends and emerging ADR mechanisms-The road ahead

·       Tax reforms for a competitive India Inc.-The need of the hour

·       The Indirect Tax reforms agenda-Challenges and way forward

 You may click the link given below for the detail:



 Golden Rules:

  " Though no one can go back and make a brand new start,
but anyone can start from now and make a brand new ending


  Thanks & Regards


Voice of CA

« Back
Online Poll
Connect Us       New User?     Subscribe Now