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Monday, 3 March 2014
Sunday, 2 March 2014
TRANSACTION VALUE - IN CASE OF SALE OF GOODS BELOW COST, TRANSACTION VALUE CANNOT BE REJECTED
SECTION 4 OF THE CENTRAL EXCISE ACT, 1944 -
VALUATION UNDER CENTRAL EXCISE - TRANSACTION VALUE - GENERAL - IN CASE OF SALE
OF GOODS BELOW COST, TRANSACTION VALUE CANNOT BE REJECTED EXCEPT WHERE
CIRCUMSTANCES ARE SAME AS THAT IN FIAT INDIA'S CASE (SC); VALUE WILL BE
MANUFACTURING COST PLUS MANUFACTURING PROFIT AND COST TO BE DETERMINED AS PER
CAS-4
COLLECTION AND RECOVERY OF TAX - DEDUCTION AT SOURCE - CLARIFICATION REGARDING TDS UNDER CHAPTER XVII-B ON SERVICE TAX COMPONENT
CHAPTER XVII-B OF THE INCOME-TAX ACT, 1961 -
COLLECTION AND RECOVERY OF TAX - DEDUCTION AT SOURCE - CLARIFICATION REGARDING
TDS UNDER CHAPTER XVII-B ON SERVICE TAX COMPONENT COMPRISED OF PAYMENTS MADE TO
RESIDENTS
CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014
The Board
had issued a Circular
No.4/2008 dated 28-04-2008 wherein it
was clarified that tax is to be deducted at source under section 194-I of the Income-tax
Act, 1961 (hereafter referred to as 'the Act'), on the amount of rent
paid/payable without including the service tax component.
Representations/letters has been received seeking clarification whether such
principle can be extended to other provisions of the Act also.
2. Attention of CBDT has also been drawn to the judgement of
the Hon'ble Rajasthan High Court dated 1-7-2013, in the case of CIT (TDS) Jaipur v. Rajasthan
Urban Infrastructure (Income-tax
Appeal No.235, 222, 238 and 239/2011), holding that if as per the terms of the
agreement between the payer and the payee, the amount of service tax is to be
paid separately and was not included in the fees for professional services or
technical services, no TDS is required to be made on the service tax component
u/s 194J of the Act.
3. The matter has been examined afresh. In exercise of the
powers conferred under section 119 of the Act, the Board has decided that
wherever in terms of the agreement/contract between the payer and the payee,
the service tax component comprised in the amount payable to a resident is
indicated separately, tax shall be deducted at source under Chapter XVII-B of
the Act on the amount paid/payable without including such service tax
component.
4. This circular may be brought to the notice of all officer
for compliance.
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