Bogus donation receipts justified commission income assessment and defeated political-party tax exemption for inaccurate accounts and reporting failur...
Pure reimbursement without income element escapes tax withholding, while delayed withholding and unsupported provisions face deferred or renewed scrut...
Public benefit requirement defeats charitable registration where residents' association services are reciprocal, member-only facilities governed by mu...
Exempt-income expenditure disallowance is confined to investments that actually generated exempt income, while supported business expenses remain dedu...
Banks are entitled to avail CENVAT credit on service tax paid to Deposit Insurance Credit Guarantee Corporation (DICGC) for insurance services, commission/brokerage paid to brokers for underwriting government securities or making investments to maintain Statutory Liquid Ratio under Banking Regulation Act, 1949. These activities are essential for banking operations and qualify as input services under CENVAT Credit Rules, 2004. The Larger Bench decisions of CESTAT in South Indian Bank and Bank of America cases have upheld this position, which has also been confirmed by High Courts. Penalty cannot be imposed if service tax with interest is paid before issuance of show cause notice, as per Section 73(3) of Finance Act, 1994.
Banks are entitled to avail CENVAT credit on service tax paid to Deposit Insurance Credit Guarantee Corporation (DICGC) for insurance services, commission/brokerage paid to brokers for underwriting government securities or making investments to maintain Statutory Liquid Ratio under Banking Regulation Act, 1949. These activities are essential for banking operations and qualify as input services under CENVAT Credit Rules, 2004. The Larger Bench decisions of CESTAT in South Indian Bank and Bank of America cases have upheld this position, which has also been confirmed by High Courts. Penalty cannot be imposed if service tax with interest is paid before issuance of show cause notice, as per Section 73(3) of Finance Act, 1994.
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