Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: articles on VAT and GST in India :: TDS :: form 3cd :: ACCOUNTING STANDARD :: VAT Audit :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: due date for vat payment
 
 
« News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

Chambers of commerce will not come under tax net
March, 11th 2008

Addressing members of the Bharat Chamber of Commerce and Merchants Chamber, besides captains of industry, at an interactive session on Direct Taxes: Policies and Prescriptions, here on Monday, Mr R. Prasad, Chairman, Central Board of Direct Taxes (CBDT), Union Ministry of Finance, clarified that activities of Chambers of Commerce will not be brought under the tax net, under the new proviso to Section 2 (15) in the Union Budget.

(As per the changes proposed in the Finance Bill with regard to direct tax provisions under Section 2(15) of the I-T Act, it is proposed that the concept of general public utility for a charitable purpose shall not apply if the job involved carrying on of any activity in the nature of trade, commerce or business.)

Mr Prasad, dispelling the fears of the chambers, clarified that the services rendered by the chambers of Commerce without any profit motive will not be brought under the tax net. He said the clarificatory circular will be issued by the Government soon. The amendment clause, according to him, was to prevent misuse, as all public utilities cannot be excused from tax liability. Let me clarifiy that only those who help promote business may be required to pay tax under this new provision, he said.

Clarifying that quoting of PAN numbers was now absolutely necessary; the CBDT Chairman said once the tax compliance levels improve, rates could be further watered down.

Asked to comment on the fate of the already finalised Direct Taxes Code Bill 2006, still waiting to be placed before Parliament, Mr Prasad said that after examining all the suggestions received, and clearance by the Cabinet, the Bill will have to go to a select committee of Parliament before being placed in the House.

Liabilities vary

On the draft instructions reportedly issued by the CBDT to AOs (Assessing Officers) to determine whether a person is a trader or an investor in stocks, as per the criteria laid out, and accordingly bring his income under a higher tax of 33 per cent, the CBDT Chief, while admitting that the issue was still not clear, said taxpayers too keep on changing their stance, making things difficult. He, however, stated that there was no hard and fast rule, as the tax liability may vary from case to case.

Retrospective changes

Pointing out that direct tax collections during 2007-08 have shown a growth of 41.8 per cent, he justified the retrospective amendments (as many as 12 this year, according to tax experts), stating that these rendered clarity to the provisions and also helped in reducing litigation. Pointing out that interpretation by courts was contrary to the Governments viewpoint, he said giving retrospective effect to certain provisions did not unsettle the law.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions