Advocate Deepak Thackur

Questions Answered by Advocate Deepak Thackur

Q: Appealing for waiver of interest on tax and penalties at Apellate trib

Hi, my dad was an NRI and came back to India after retirement in 2001. He hasn't earned any money in India before or after 2001. In 2008, his sister gave him money in cash as per his share in sale of old ancestral property sold in 2001. In 2016, the IT dept asked them to file taxes for 2008 year in which he declared the inheritance. This was however treated as concealment and tax plus interest for 8 years period (2008 to 2016) and extra penalties for failing to meet the Assessing officer were levied on them...the total amount is 4 times the tax. (my parents are senior citizens and were not in good health and missed only one meeting) On appealing to the CIT (A) stating that we were incorrectly accused of concealment, the appeals officer rejected it saying only Affidavit of dads sister stating she deposited the money in my dad's account was not enough and a sale deed was needed which was lost..is it possible to ask for waiving Interest and Penalties at Tribunal level.

Advocate Deepak Thackur answered
Interest is a libility which is automatic. Meaning thereby if there is a liability to pay tax there will be a liability to pay it with interest. However, from your it appears that the income even though earned in 2008 is made subject to tax from 2001 and if that the case be then the liability needs to be challenged to that extent.Moreover, penalty under income tax is mainly imposed either when there is concealment or if there is non-complince. In these circumstances penalty is not automatic and can be challenged before the Tribunal, in your case, if sufficient reason is shown. It depends on few factors though, under which section Assessment Order is passed and penalty is imposed under which Section?

Q: Gold seized by Excise department at Delhi Airport

I brought 12 kg gold in bar form from hongkong, I declared that in custom & given the gold in their hand. They demaded 2kg out of that for them & allow me to go. But I refused $ opted to give my statement before SDM. After that they tortured me physically & mentally whole night.Then they put my baggage in xray where they show some suspecious metals. Next day they put the gold in my suitcase & open in front of SDM saying that the gold was brought in suitcase. Then they completed their formilities & sent me in Tihar. After 60 days I was released on bail as the charge sheet was not presented. what are is the legal way ahead from now?

Advocate Deepak Thackur answered
Gold is not a prohibited item and can be imported upon payment of duty. In this case, thee will be two separate proceeding one civil, ie.e before the customs authorities and second, criminal that will be before Sessions court. The possible way forward and grounds can be decided upon reviewing the documents.

Q: How to save taxes in export/sales company as we are not manufacturers

Hi, I am planning to start export firm but I don’t have any manufacturing unit or production. So the business model will be to focus on sales and once we get the order, we take the products from manufacturer and ship it to the customer. Problem – If we buy the product from manufacturers then we will also have to pay Taxes incurred during the transaction which will eventually increase the cost of the product and we will not be able to sell the products in competitive prices. Query – Is there any provision that we can act as a marketing partner with manufacturing company and save taxes

Advocate Deepak Thackur answered
Under FTP of India there are various schemes that allows a manufacturer or trader to export goods out of India. Every country needs foreign exchange to develop its economy, precisely for this reason there is no or very less export duty on some goods. Your query have many possible answers. You can either take an Advance License (which allows you to procure duty free raw material either from outside India or from India) or you can take the benefit of remission of excise and sales tax. Excise Laws allows you to export gods without payment of excise duty and under sales tax you have to pay sales tax on export goods but the paid amount can be sought as a refund from the Government.

Q: Received contract from out of India what will be the tax implications

We have received and contract from Out side of india party but goods and work done in india maharshtra, pl. what implication of Taxes on us such as excise, Service Tax and Vat etc.

Advocate Deepak Thackur answered
Service tax liability is on the person who is providing the services. In some cases the liability to pay services tax is on the recipient of service but this aspect is determined based on the nature of services. Whether there is Service tax liability or not it is determined on the basis of the fact where the services are deemed to be provided. If the services are provided in the territory of India then such services shall be liable to services tax. Prima facie it appears that the services provided by you are in Maharashtra therefore there will be a service tax liability on you. However, a conclusive opinion can be given only after knowing the modus operendi of your business. Further, Excise is paid on the manufacture of goods only and VAT is only paid on the sales of goods. If you are only providing services then there will be implication of excise and VAT.

Q: Is it legal to charge VAT on MRP

I have ordered a pair of shoes from Jabong having MRP-Rs.9995(inclusive of taxes) as cited on the shoe box. Have applied coupon discount-30% (Rs.2998.50) Then the amount chargeable should be-Rs.6996.50 But they are again applying VAT around 5%-Rs.349.25 Making the total amount payable by me around-Rs.7346.25 Is it legal to double charge the taxes after giving discount and besides the MRP-Rs.9995 (inclusive taxes) Isn't double taxing against the trade practices and punishable under law

Advocate Deepak Thackur answered
Every manufacturer as per Legal Metrology Acts and Rules need to furnish label on the packaged commodity showing the Maximum Retail price along with other details. As you mentioned, the MRP of the shoes were Rs. 9995/- (inclusive of taxes) it means this product cannot be sold on a price higher than Rs. 9995/-. However, if the company decides to give any discount, like in your case, then the value of the product is lesser than Rs. 9995 which will be considered as not inclusive of taxes. Had the case be that the vendor has charged VAT on MRP (i.e. VAT over and above Rs. 9995/-) then you can file a case against such vendor and also file a complaint to the government authorities. However, in your transaction vendor can charge VAT on discounted value of the product.