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Home e-Newsletters Index Year 2022 April Day 26 - Tuesday

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TMI Tax Updates - e-Newsletter
April 26, 2022

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy Service Tax Central Excise CST, VAT & Sales Tax



Highlights / Catch Notes

    GST

  • Classification of services - rate of GST - coal handling and Distribution charges - The supply of coal done through a separate purchase order and the supply of Coal Handling and Distribution of coal done through a subsequent work order are two individual supplies which are not rendered in conjunction with each other and have to be treated as independent and separate supplies only. Hence the supply of coal is liable for 5% GST and the supply of service of handling and distribution is liable for 18%. - AAR

  • Input tax credit (ITC) - the credit of steel, cement and other consumables even in proportion to the incremental volume of the earth foundation, side walls, beams, etc are not available as credit to the applicant. - AAR

  • Classification of services - Valuation - Pure Agent - Additional payments made by the Applicant towards Motor Vehicle Registration fee, Motor Vehicle life Tax, RTO charges etc., for getting the vehicle to use on the Road, which are recovered from the Lessee, forms part of the supply of Leasing services and therefore should form part of the taxable supply. - AAR

  • Classification of goods - rate of GST - HSN Code - It is evident that the air Separators are classifiable under CTH 8421. In the case at hand, the product, PSA Oxygen Generation Plant manufactured and supplied by the applicant is an Air Separator as has been brought out in para 8.1 above, therefore, the Product is classifiable under CTH 8421. In view of the above, it is held that the product “PSA Medical Oxygen Generation Plant” is classifiable under CTH 8421 39 and more specifically under CTH 8421 39 90. - AAR

  • Classification of goods - rate of GST - HSN Code - it is evident from the facts and the explanatory notes to CTH 8504 that the applicant's product merits classification under Chapter 85 in CTH 8504 and more specifically under CTH 8504 40 90- as Static converters(others); in as much as the Explanatory notes has specifically stated that incorporation of auxiliary circuits to regulate the voltage of the emerging current does not affect their classification in this group. - AAR

  • Maintainability of Advance Ruling application - Classification of supply of service - rate of GST - In the applicant case, it is seen that the State authorities have already made investigations regarding the taxability of the products for which Advance Ruling is sought for and the questions raised by the applicant in their Advance Ruling application is one of the grounds raised in the Appeal - The application is not admitted under first proviso to Section 98 (2) of the CGST/TNGST Act 2017. - AAR

  • Classification of services - rate of GST - The services rendered by the applicant, i.e., construction of residential quarters for the employees of KKNPP under the contract awarded by NPCIL is not a service procured by NPCIL, the Government entity in relation to a work entrusted to it by the Central Government and hence rate prescribed in entry at Sl.No. 3(vi) is not applicable to the applicant and the question on modality of payment of differential tax to be paid is not answered as it is questioning the procedural aspect of law, which is not within the purview of Section 97(2). - AAR

  • Exemption form GST or not - supply of labour services for collection of seeds from forest, digging contour trenches, chal-khal (water conservation pits in hills) for soil and moisture conservation, clearing of fire lines in forest to protect forest from fire which causes damage to forest, controlled burning of portion of forest to prevent spread of fire and damage to environment - Benefit of exemption is available subject to fulfillment of conditions e.g. pure service - AAR

  • Income Tax

  • Unexplained cash credit under section 68 - if we deny the claim of the assessee for having received the money from the society, it would lead to the double addition of the same item of the cash receipt which is unwanted under the provisions of law. Firstly, the amount of cash receipt from the society will suffer from the tax in the year under consideration and secondly, the assessee failed to claim the benefit of the higher amount of available cash in hand as on 1st April 2006 before the settlement commission which eventually has already suffered the tax again. Thus, to avoid the double taxation, we are inclined to admit the contention of the assessee that he has received cash from the society which was utilized to deposit in the bank accounts. - AT

  • Exemption u/s 11 - the case of the assessee was in its favour based on the principles of consistency. Furthermore, the assessee has achieved its own goals by advancing money without charging any interest to the institution which was engaged in charitable activities. Thus no adverse inference can be drawn against the assessee - AT

  • Exemption u/s 11 - Other receipts - Admittedly, in the case on hand, the benefit of section 11 has been denied to the assessee for the activities carried out for the construction of the prayer hall. Accordingly, we hold that the activity of the assessee was in consonance with the object clause and therefore the assessee is entitled for the exemption under section 11 of the Act. - AT

  • Exemption u/s 11 - The gross income is entered in the books of the assessee and accordingly reflected in final accounts. The gross income should be ascertained from books of accounts of the assessee-trust. The calculation on actual receipt of assessee made by the Ld. AO is contrary to the view of the Act. - the assessee is eligible for deduction u/s. 11(1)(a) of the Act. - AT

  • Assessment of notional interest on loans - loan has been granted by the assessee to its sister concern - As per the provisions of Sec. 36(1)(iii) AO could have disallowed interest expenditure if the interest was paid in respect of capital borrowed which was not used for the purposes of business or profession. - Rather Ld. AO has computed notional interest on loans advanced by the assessee which do not find support of any statutory provisions. Therefore, the action of Ld. AO, in adding the notional interest on outstanding loans, in not in accordance with law and hence not sustainable. - AT

  • Reopening of assessment u/s 147 - notice under section 148 has been issued by a non jurisdictional AO - It is settled principle of law that when the notice under section 148 of the Act has been issued by a non jurisdictional AO, the ITO Bareli in this case, reassessment by the jurisdictional AO is bad in law and is liable to be quashed, more particularly when assessment of the assessee has admittedly not been transferred to Bareli under section 127 of the Act. - AT

  • Addition on account of unaccounted receipts - When the assessee has asserted before the Assessing Officer that it has not received any such income, the Assessing Officer is duty bound to make proper enquiry before concluding that the disputed amount was earned by the assessee during the relevant assessment year. Instead of doing that the Assessing Officer has made the addition simply on the basis of AIR information, which, in our view is absolutely Incorrect. - AT

  • Revision u/s 263 by CIT - The subject matter of the deduction in the reassessment order was the quantum of deduction but not the eligibility of the deduction and even in that case also the deduction pertaining to MBF unit but not other units whereas the revisionary proceedings dealt extensively with the eligibility of the deduction per se maintenance of separate books of accounts change of opinion by the CIT where the Ld. CIT and also the contrary reviews taken by the DRP for the successive assessment years allowing the deduction. The revisionary proceedings cannot go beyond the issue of the reassessment proceedings. - AT

  • IBC

  • Validity of approved Resolution Plan - appellants have not received any communication from the IRP with regard to the admission/rejection of the claim - Consolidated reading of all provisions and objects of the Code apart from analysis/observations stated supra, it reveals that the purpose of CIRP is to provide life to organization and not to provide death knell. Death Knell/liquidation should be the last resort. Hence no need to touch the Resolution Plan so implemented by Successful Resolution Applicant (viz. M/s Bharat Forge Limited). - AT

  • Service Tax

  • Condonation of delay of 813 days in filing appeal - relevant date - In the present case the said order was passed by original adjudicating authority on 23.11.2020. The same was received by the appellant on 27.11.2020. There is no denial about the said date of Communication. The appeal filed before Commissioner (A) on 25.1.2021 is therefore two days prior the expiry of the statutory period of limitation i.e. 2 months. The findings of the Commissioner (A) are therefore held wrong. - AT


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (4) TMI 1143
  • 2022 (4) TMI 1142
  • 2022 (4) TMI 1141
  • 2022 (4) TMI 1140
  • 2022 (4) TMI 1139
  • 2022 (4) TMI 1138
  • 2022 (4) TMI 1137
  • 2022 (4) TMI 1136
  • 2022 (4) TMI 1135
  • 2022 (4) TMI 1134
  • 2022 (4) TMI 1133
  • 2022 (4) TMI 1132
  • Income Tax

  • 2022 (4) TMI 1131
  • 2022 (4) TMI 1130
  • 2022 (4) TMI 1129
  • 2022 (4) TMI 1128
  • 2022 (4) TMI 1127
  • 2022 (4) TMI 1126
  • 2022 (4) TMI 1125
  • 2022 (4) TMI 1124
  • 2022 (4) TMI 1123
  • 2022 (4) TMI 1122
  • 2022 (4) TMI 1121
  • 2022 (4) TMI 1120
  • 2022 (4) TMI 1119
  • 2022 (4) TMI 1118
  • 2022 (4) TMI 1117
  • 2022 (4) TMI 1116
  • 2022 (4) TMI 1115
  • 2022 (4) TMI 1100
  • 2022 (4) TMI 1099
  • Customs

  • 2022 (4) TMI 1114
  • Corporate Laws

  • 2022 (4) TMI 1113
  • Insolvency & Bankruptcy

  • 2022 (4) TMI 1112
  • 2022 (4) TMI 1111
  • 2022 (4) TMI 1110
  • 2022 (4) TMI 1109
  • 2022 (4) TMI 1108
  • Service Tax

  • 2022 (4) TMI 1107
  • 2022 (4) TMI 1106
  • 2022 (4) TMI 1105
  • Central Excise

  • 2022 (4) TMI 1104
  • 2022 (4) TMI 1103
  • 2022 (4) TMI 1102
  • CST, VAT & Sales Tax

  • 2022 (4) TMI 1101
 

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