Jitendra Sanghavi & Co., Indian Chartered Accountants, International and Indian tax advisors, Indian Accountants

•	s. 80HHC Only DEPB profits to be taken... More
•	s. 14A Disallowance Disallowance to be made even if no tax-free income... More
•	Liaison Office The taxability of liaison offices in India... More
•	Purchase of Software Software purchase is not taxable... More
•	Profits on Sale of Equipment Not Taxable Sale of equipment taking place... More
•	Deputation of Personnel Taxation of seconded employees has been... More




	•	ITAT may set up seperate intl tax disputes bench, MoneyControl.com (CNBC India) News, May 2007 Jitendra Sanghavi Chartered Accountant, said, “Transfer pricing issues are coming up in a big way. It is important that the ITAT resolves these issues early and sets a precedent, so that is more certainty for tax payers.” Full Article


	•	Tax tribunal offers VRS employees some relief, MoneyControl.com (CNBC India) News, 16 April 2007 A recent tax tribunal order offers relief to thousands of Government employees who have opted for voluntary retirement, reports CNBC-TV18. No more tedious trips to the tax man - at least not for the Government employees who have opted for VRS. In a case involving retired RBI employees, the Mumbai bench of the Income Tax Appellate Tribunal, or ITAT has ruled that employees taking VRS are entitled to tax exemptions. Jitendra Sanghavi, Chartered Accountant says, "This will have a big impact as the cost of litigation for salaried employees is very high. They will be spared of unnecessary litigation which is to high these days." Full Article


	•	30-40% rise in corporate taxes expected, MoneyControl.com (CNBC India) News, December 2006 Chartered Accountant, Jitendra Sanghavi gives some insight on what can be expected on this front. He says that the general feeling is that there will be an increase in the tax advance payments and tax collections this year. “Overall the expectation is there might be atleast an increase of 30-35% and the collection in first two installments has also been substantially higher than what they have expected. Also the general feeling is that there will be a rise in collection by atleast 30%.” He expects corporate taxes to be in the range of 30-40% higher than last year. “There is a feeling even within the tax department that not much effort was required and the targets are exceeding much more than expectations,” he adds. When quizzed on the advance tax numbers expected to come in from Mumbai, he says, “The target fixed for Mumbai is around Rs 65,000-70,000 crore and probably the actual collection in my view will be more than Rs 80,000-85,000 crore.” Full Article


	•	CAs grapple with tax audit woes, MoneyControl.com (CNBC India) News, September 2006 "Its a difficult situation because all investments are not maintained together.The bank accounts are a hotch potch of all activities together so to work out a direct linkage of expenditure or finance is a difficult situation for big corporations," said Jitendra Sanghavi, Chartered Accountant. Full Article


	•	Investigation on HLL tax isue to begin soon, MoneyControl.com (CNBC India) News, 17 April 2006 FMCG major Hindustan Lever could soon find itself in a major tax soup. The TDS wing of the Income Tax Department has alleged that HLL failed to deduct over Rs 58 crore in tax over payment of almost Rs 3,000 crore made to third party contractors. The matter pertains to manufacture of soaps, which HLL has been outsourcing to third party manufacturers. The TDS wing of the IT department claims that HLL should have deducted 2% tax at source while making payment to third party manufacturers as it is a works contract. On the other hand, HLL is believed to have taken the stand that no tax is deductible since it is an outright sale and re-purchase from manufacturers. Tax experts say HLL might have a strong case. Tax Consultant, Jitendra Sanghavi says, "Judicial decisions by Bombay High Court and Delhi ITAT hold that it is not a works contract and hence no TDS is deductible." Full Article


	•	New income tax norms for companies, MoneyControl.com (CNBC India) News, 16 June 2005 The current guidelines for Income Tax, IT, scrutiny for companies would soon be replaced, with a similiar set of new guidelines, with one exception. IT Department will now scrutinise all companies where INTL transactions have exceeded Rs 5 crore. Also, all companies entering international transactions, exceeding Rs 5 crore will be scrutinised. ..... "The limit of Rs 5 crore for Transfer Pricing assessments is too less, it leads to a lot of cases being picked up. The assessing officers, then struggle to complete the assessments," said Jitendra Sanghavi, a Tax Consultant. Other norms that would continue to remain unchanged are, regarding refunds. Refunds above Rs 50 lakh will attract automatic scrutiny. Software companies such as Infosys, that enjoy exemptions under 10-A and 10-B of the Income tax Act, will have to face the tax man, if their export turnover exceeds Rs 10 crore. Full Article


	•	Exporters get a breather on fresh I-T demands, The Economic Times, 16 April 2005 “It's high time the government amended the relevant provisions in the I-T Act,” senior chartered accountant Jitendra Sanghavi told ET. Full Article


	•	Tribunal: Core biz will be deciding factor, MoneyControl.com (CNBC India) News, 24 Feb 200516 April 2005 Just a week after the special bench of the Mumbai Tribunal held that share trading loss can be set off against business income, a special bench of the Kolkata Tribunal has given another important ruling on the same matter. CNBC-TV18 reports the tribunal verdict could bring tax benefits to finance companies. Chartered Accountant, Jitendra Sanghavi said, "Where you are engaged in the financing business and if that is your core activity, it is immaterial what is your composition of income."


	•	Companies not to get export benefits on income from sale of DEPB licences, India Business World, October 2004 Jitendra Sanghavi, senior tax consultant said "This decision of CBDT will mainly affect the trading exporters. Manufacturing exporters will not be affected much by this decision." The CBDT note said this decision has been made after consultation with the Ministry of Law. The note reads "It has been concluded that section 80 HHC provides for deduction from the total income in respect of profits derived from export of goods or merchandise which are realised in convertible foreign exchange and not in respect of incidental income arising through a government scheme." Full Article - http://news.helplinelaw.com/1004/busi-cos-expost-benefits.php


	•	Taxman free to attach assets, June 2004 Jitendra Sanghavi another senior tax consultant, said, “This leads to harassment. Rs 5 lakh is a small amount for companies in a city like Mumbai. I think the department must consider the strength of the company before issuing the attachment order.”


	•	Exporters may have to pay tax on DEPB licence sale, India Business World, February 2004 Tax consultant Jitendra Sanghavi told ET, "The issue should have been kept in abeyance till a clear decision is arrived (at) on the subject." Full Article - http://news.helplinelaw.com/0204/d_busi_exporters-depblicence_0204.php

Jitendra Sanghavi & Co., Chartered Accountants, 405 Churchgate Chambers, 5 New Marine Lines, Mumbai - 400 020.
Tel: +91 22 2262 5000 Fax: +91 22 2262 5010 Email: JSCO@JitendraSanghavi.com

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