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20.02.2013 - Voice of CA Presents - Updates
Wednesday, February 20, 2013

 I.  Today's Headlines:

  1. Rail Budget 2013: Railways to get modest hike of 2000 crore for next fiscal  (Click for detail)
  2. Tax sops to insurance may be in the offing  (Click for detail)
  3. Akhilesh budget levies no new tax, gives boost to populist schemes  (Click for detail )
  4. FIIs keen on India, govt FY14 borrowing eyed  (Click for detail)
  5. Currency war: Biggest threat to Asia and the rest of the world  (Click for detail)
  6. Trade unions on strike, economy may lose Rs 20,000 crore  (Click for detail)
  7. Adhere to guidelines governing business of micro insurance, Irda tells LIC  (Click for detail)
  8. Lower retail loan rates may pinch banks' margins  (Click for detail)

  II.  Useful Case Laws: 

1.  O.B.C.  Vs. CIT, ITA No. 20/1999, Date of Judgment delivered on: 14.02.2013, High Court of Delhi

Whether provision for payment of Bonus is “ascertained liability” while calculating MAT profit under section 115J of the said Act?

The position in law is clear that if the provision for bonus had been computed on the basis of Payment of Bonus Act, 1965 then it would be an ascertained liability. However, if it was only estimation then it could not be regarded as an ascertained liability. Since, the position is not clear on facts, we direct that the assessing officer should determine as to whether the computation of the provision for bonus was on the basis of Payment of Bonus Act, 1965. If so, the said provision would have to be treated as an ascertained liability.  On the contrary, if he finds the provision for payment of bonus was not in accordance with the provisions of the Payment of Bonus Act, 1965 and it was merely estimation then the original assessment of the assessing officer would hold. 

(Please click here for judgment)

2.  Siemens Ltd. Vs. CIT, IT Appeal No. 4356 /2010, Dated: 12-02-2013, ITAT- Mumbai

Testing services through machines are technical services, but cannot be taxed as FTS if human intervention is missing.

If any person delivers any technical skills or services or make available any such services through aid of any machine, equipment or any kind of technology, then such a rendering of services can be inferred as “technical services”. In such a situation there is a constant human endeavour and the involvement of the human interface. On the contrary, if any technology or machine developed by human and put to operation automatically, wherein it operates without any much of human interface or intervention, then usage of such technology cannot per se be held as rendering of “technical services” by human skills. It is obvious that in such a situation some human involvement could be there but it is not a constant endeavour of the human in the process. Merely because certificates have been provided by the humans after a test is carried out in a Laboratory automatically by the machines, it cannot be held that services have been provided through the human skills. Therefore, the contention raised by the learned CIT (DR) does not appeal much to us.

(Please click here for  judgment)  


III.  Tender Info.:

  1. India Trade Promotion Organisation
    Empanelment Of CA Firm as Internal Auditor For F.Y. 2013-14
    New Delhi
    (Click for detail)
  2. Rural Development Department
    Chartered Accountant Firms for conducting Statutory Audit
    Patna, Bihar
    (Click for detail)
  3. Municipal Corporation of Moradabad
    Provide Charted Accountant Service
    Moradabad, U.P.
    (Click for detail)


 Golden Rules:

"A happy person is always happy not because
everything is right in their life.
They are happy because
their attitude towards everything is right"


  Thanks & Regards


Voice of CA    




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