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: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: VAT Audit :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: cpt :: empanelment :: VAT RATES :: TDS :: ACCOUNTING STANDARDS :: form 3cd
 
 
General »
 Alarm bells over return of tax inspector raj
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes

SC stay on tax demand
August, 26th 2010

The Supreme Court on Wednesday said that stay will continue on the Rs 1,500 crore tax demand made on Hindustan Aeronautics Ltd by Karnataka till a decision is taken on the issue of Value-Added Tax on defence contracts.

A bench comprising Justices D K Jain and H L Dattu hearing a petition filed by HAL said the state government can not claim any money from Hindustan Aeronautics and a stay granted earlier by it will continue till further orders. The court has scheduled a hearing in November for final disposal of HAL's plea.

The apex court's direction came over HAL's plea challenging the order of the Karnataka High Court directing the PSU to deposit half of the Rs 1,519.31 crore demand raised by the state government in lieu of sales tax and VAT.The High Court had also directed the state government to attach the bank account of HAL if it failed to submit 25 per cent of the sum.

The state government has directed the PSU to pay Rs 1,519.31 crore as VAT and sales tax under the Karnataka Sales Tax Act, 1957, and the Central Sales Tax Act, 1956, with respect to transactions between the PSU and the central government for defence equipment between 1994-95 to 2000-01.

The Rs 1,519 crore amount includes a penalty of approximately Rs 500 crore.HAL has contended that in an earlier judgement, the apex court had already ruled that contracts awarded to PSUs on behalf of the government and defence establishment were not liable to sales tax and VAT.

However, the issue has now been reopened by raising "illegal demands of sales tax" on transactions between the company and the government, HAL said. "This action of Karnataka was patently illegal and contrary to law as there is no transfer in the ownership of the property in the defence goods from the petitioner to the government of India and the ownership remains with the government at all times," said HAL in its petition filed by advocates Sashi Mathews and Tarun Gulati.

HAL had challenged the order of the state government before the High Court. However, the High Court, in an interim order, directed the PSU to deposit 50 per cent of the amount with the state government, which was challenged by HAL in the apex court.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

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