Author: admin

In the blitzkrieg between Vodafone and the Government, the Government’s revelation that Vodafone was made aware by it, much before the transaction, of the obligation to deduct TDS on payments to Hutchison, has sent shock-waves amongst Vodafone’s supporters. The sympathy that Vodafone garnered from its’ carefully orchestrated plea that it was an innocent buyer which got caught in the crossfire stands eroded says the author

The Negative List Taxation introduced by the Finance Bill 2012 substantially reinvents the law on Service Tax and will have a deep impact on service transactions. The authors, well known experts in the field of service-tax, have meticulously studied the entire law on the subject and have explained the implications of the proposed amendments in a succinct and clear manner

The author is upset at the recent judgement of the Supreme Court in Post Master vs. Living Media India that if the department delays filing an appeal without sufficient cause, the appeal has to be dismissed to “teach the department a lesson“. This amounts to punishing innocent citizens for the incompetence of one officer says the author. Instead, the incompetent officer(s) should be made to pay costs from his pocket to “teach him a lesson” rather than to dismiss the appeal and prejudice innocent citizens, argues the author

What was in the realm of fantasy till yesterday is now in the realm of reality thanks to the forward-looking approach adopted by the Tribunal. The Tribunal, grappling with the paucity of Members and the increasing case load, is contemplating setting up E-Courts/ E-Benches to solve the problem. The author makes suggestions on how the concept should be implemented to make it a grand success

Its’ that time of the year when Tax Officers across the Country go into a frenzy to collect taxes by fair or foul means. And with the CBDT Chairman’s brazen promise to link promotions and postings to the quantum of tax recovered, it will be a no-holds barred blood fest between the assessees and the Tax department apprehends the author. The absence of an accountability mechanism to punish the Officer in case the tax demands are held to be untenable means that there is no deterrent to prevent frivolous high-pitched assessments muses the author

On the occasion of the “Foundation Day” of the Tribunal, the author ponders over what can be done to improve the functioning of the Tribunal. Using his vast experience, he makes a check-list of the known problem areas which invariably result in adjournments & delays. The author implores professionals to be proactive in ensuring that speedy justice is delivered to the assessees. The author also gently reminds the Hon’ble Members of the immense power vested in them to do justice to the parties

The author goes ballistic over the Rolls Royce Plc vs. DDIT case and claims that Rolls Royce’s “timid surrender” against the damning findings of the AO proves that even marquee companies like Rolls Royce are not averse to pinching a few dollars from the exchequer of third world countries if they think nobody’s looking. Rolls-Royce must be prosecuted for tax fraud demands the author

This week, the author suggests that a Anna Hazare style crusader is needed to explain to the CBDT the irrationality of its stand that the monetary limits for filing appeals will apply only to fresh appeals and not to pending appeals. Also, on the issue whether software income is assesable as “royalty”, the CBDT should abandon its ostrich-like stance and take a firm stand one way or the other like its Australian counterpart says the author

On the occasion of the Bombay High Court’s 150th Anniversary, the author pays rich tribute to the judicial independence and integrity of the Bombay High Court and recollects the stellar contribution of the tax professionals in bringing glory to the High Court. This is the time for all professionals to re-dedicate themselves to the cause of the Judiciary exhorts the author

Get up to speed with the latest developments in the World of Tax. This week, the author wonders whether it is time to write an obituary for the DRP. Also another body-blow on the reopening front should shake the Babus of Aaykar Bhavan out of their reverie. And yes, don’t forget to tighten your seat belt because the CBDT Chairman’s missive on recovery might just prompt the AO to demand that you pay up that long outstanding arrear