Articles by Amit Bajaj

Ceiling rate on Declared goods under CST Act incresed to 5%

Amit Bajaj 02 March 2011 at 11:35

It has been proposed in the Budget 2011-12 to increase the ceiling of 4% on declared goods under section 15 of CST Act to 5%. Currently State Governments cannot levy VAT more than 4% on declared goods. Declared goods are those goods which are of

Some Important changes in Income Tax after Budget 2010-11

Amit Bajaj 01 March 2011 at 09:57

Rates of Income Tax : in the case of every individual or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31

Correction in OLTAS Income Tax/TDS challan after payment

Amit Bajaj 24 February 2011 at 14:45

Recently I faced a situation where the tax demand on regular assessment of my client for A.Y 2008-09 was deposited with a nationalized bank but wrongly the said payment of demand was done towards A.Y 2010-11. This situation may have been faced

Expenses Disallowed under section 40A(3) and 40A(3A)

Amit Bajaj 21 February 2011 at 12:25

Section 40A(3) of Income Tax Act 1961 provides for disallowance of expenses in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on bank or account payee bank draft, exceed

DTH service subject to entertainment duty and also service tax

Amit Bajaj 18 February 2011 at 11:11

DTH service is also subject to Entertainment duty in addition to service tax-P&H High Court Punjab and Haryana High Court in a recent case namely Tata Sky Limited v State of Punjab and another (2011)38 PHT 160 (P&H) has held that levy of ente

Penultimate Sales under CST Act 1956-Submission of H forms

Amit Bajaj 14 February 2011 at 11:50

Tax by State Governments on sales or purchase of goods made during the cource of import or export of such goods is prohibited by article 286(1)(b) of the Constitution of India. Section 6(1) of CST Act also levies tax on interstate sales hence there

Exemptions available to SEZ unit from CST

Amit Bajaj 12 February 2011 at 11:28

Section 8(6),8(7) and 8(8) of the CST Act deals with the exemptions available to a SEZ unit or SEZ developer from CST. When goods are sold to a SEZ unit or SEZ developer then no CST is payable by such unit or developer as per the above sub sections

Provisions of section 40(b) of Income Tax Act 1961

Amit Bajaj 10 February 2011 at 11:38

Section 40(b) of Income Tax Act places some restrictions and conditions on the deductions of expenses available to an assessee assessable as a partnership firm in relation to the remuneration and interest payable to the partners of such firm. The ded

Tax deduction from Works contracts to be on taxable turnover

Amit Bajaj 17 January 2011 at 11:24

Tax deduction from Works contracts only to be on the taxable turnover Almost all States under their respective VAT laws have made provisions for deduction of VAT from payment to be made to the works contractors at the time of the payment (popula

Understanding E1 and E2 Sales under CST Act 1956

Amit Bajaj 17 December 2010 at 13:00

Central Sales Tax Act 1956 envisages single point of taxation i.e tax at the first point of sales. Subsequent sales during the movement of the goods from one state to another have been exempted under section 6(2) of CST Act. Before proceeding to u