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Home e-Newsletters Index Year 2021 January Day 18 - Monday

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TMI Tax Updates - e-Newsletter
January 18, 2021

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy PMLA Service Tax CST, VAT & Sales Tax Indian Laws



Highlights / Catch Notes

  • GST:

    Classification of goods - Rate of GST - concessional rate of GST@5% - the marine pressure tight cables and the marine non-pressure tight cables manufactured and supplied by the applicant to the Navy are not parts of the warship and hence the benefit of reduced rate of GST of 5% is not available to the applicant - AAR

  • GST:

    Liability of GST - landlord charges electricity or incidental charges in additional to rent as per Lease Agreement for immovable property rented to the tenant - Is landlord liable to pay and recover GST from tenant on electricity or incidental charges charged by it? - Held No - Since the amount is recovered on actual basis and conditions of pure agent satisfied, it would not be includible in the value of supply. - AAR

  • GST:

    Exemption from GST or not - Educational Services or not - the applicant does not have any specific curriculum and does not conduct any examination or award any qualification/degree. Hence, the applicant does not qualify as educational institution - In this process, the applicant received Fees (i.e. 60% of total fees collected from students by Gujarat university) from Gujarat University, which attract GST @18%. - AAR

  • GST:

    Classification of goods - product ‘Zn EDTA - Zinc Ethylenediamine Tetra Acetic Acid) - Fe EDTA - The products, viz. “Zn EDTA” and “Fe EDTA” manufactured and supplied by the applicant are classifiable under HSN 3824 99 90 of the First Schedule to the Customs Tariff Act, 1975. - attracting GST @ 12% (6% SGST +6% CGST). - AAR

  • GST:

    Classification of goods - Product Mosquito Repellent, Aayudh-Mosx - Undoubtedly, the description under Heading No. 3808 91 91, i.e., “Repellents for insects such as flies, mosquito” is far more specific as compared to the description under the other heading under consideration, i.e., Heading No. 3004 90 99 which is “Other” (meaning medicaments other than all those explicitly specified in the other sub-headings of Heading No. 3004). Evidently, the latter heading is a residual classification while the former is specific and conforms to the description of the goods adopted by the applicant themselves for the purposes of packing as well as advertisement and publicity - AAR

  • GST:

    Scope of Advance Ruling application - Classification of services - In the present case, the applicant has asked hypothetical questions seeking Advance Ruling on an issue which has not materialised till date. We find that a period of nearly one year has lapsed after the filing of the application of Advance Ruling by the applicant (which was filed on 13.10.2019) but the agreement which they were supposed to make with the so-called Rice exporter has not materialised so far i.e. no agreement has been signed in this regard and therefore no copy has been submitted in the instant case. - it would not be possible to give a decision in the said matter. - AAR

  • GST:

    Pure service - solid waste management service - Scope of the terms of service agreement - from a plain reading of the aforementioned clause, it appears that the services provided by the applicant includes supply of goods also, hence it cannot be considered as Pure Services. Further, one of the clauses specifically mentions that the rate should be filled inclusive of all taxes which means that as per the agreement, rate should be inclusive of all taxes which would also include GST. - AAR

  • GST:

    Classification of goods - product Fusible Interlining Fabrics of Cotton’ - classifiable under Chapter 52 or Chapter 59? - On going through the headings, chapter note of Chapter 52 as well as the explanatory notes to HSN with respect of the headings 5208 to 5212, we find that it does not cover laminated fabrics or fabrics coated with plastics. Hence, it can be safely concluded that ‘Fusible Interlining fabrics of cotton’ will not be covered under Chapter 52 of the First Schedule to the Customs Tariff Act, 1975 - AAR

  • GST:

    Supply or not - various activities carried out by the Applicant to the plot holders in terms of provisions of GIDC Act, 1962 - charges collected for the same - Section 7 of the Central Goods and Services Act, 2017 - Unless and until there is a specific entry pertaining to the establishment or development of industries in the aforementioned list, it cannot, by any stretch of imagination, be construed that the applicant is a Corporation that has been established to carry out activities in relation to functions entrusted to the municipalities under Article 243W of the Constitution of India merely on the grounds that establishment, organisation and development of industries would lead to economic development and would thus be covered under the aforementioned Entry No.3 of the list. - AAR

  • GST:

    Scope of Advance Ruling - Levy of GST - The question raised here is not related to the agreement made by them with M/S. WAPCOS or the agreement made between M/s. WAPCOS and M/s. SSNNL but is related to the liability of GST on the consultancy services rendered by various consultancy agencies to SSNNL - the said question to be absolutely irrelevant, hypothetical and speculative which does not in anyway pertain to the services supplied/rendered by the applicant. - No decision can be given in view of the foregoing discussions. - AAR

  • GST:

    Classification of goods - pharmaceutical products - Bulk Drugs and intermediates - the goods viz. bulk drugs and intermediate i.e. Alpha-Ketoanalogue Isoleucine Calcium Salt, Alpha-Ketoanalogue Valine Calcium Salt, Alpha-Ketoanalogue Leucine Calcium Salt, Alpha-Ketoanalogue Methionine Calcium Salt, Alpha-Ketoanalogue phenylalanine Calcium Salt classifiable under HSN 2919 attract GST @ 18%. - AAR

  • Income Tax:

    TDS u/s 194I - lease premium paid to Mumbai Metropolitan Regional Development Authority (“MMRD") - lump sum lease premium or one-time upfront lease charges, which are not adjustable against periodic rent, paid or payable for acquisition of long-term leasehold rights over land or any other property are not payments in the nature of rent within the meaning of section 194-I of the Act. - such payments are not liable for TDS under section 194-1 of the Act - AT

  • Income Tax:

    Undisclosed income - Search proceedings - receipt in cash - As assessee is not able to justify and/or connect these receipts / payments as are found mentioned in loose documents seized by Revenue, with the transactions sought to be explained by assessee as are recorded in its books of accounts, and the explanation which is made by the assessee are merely an after thoughts to wriggle out of tax ambit. Thus, we reject the contention of the assessee on this issue and uphold /sustain the additions as was made by AO and which was later sustained / upheld by learned CIT(A). - AT

  • Income Tax:

    Capital gain - nature of land sold - the assessee has proved that the land in question is more than a distance of 8 km from the closest municipality and that it is agricultural land as defined u/s 2(14)(iii) - AT

  • Income Tax:

    Revision u/s 263 - valuation of equity share - the litigation before us may not have erupted if in the proceedings u/s 263 by Ld.. PCIT have mentioned that the audited financial statements are similar to the unaudited financial statement placed before Ld. A.O and the same has been examined by him and there is no change in valuation of the fair market value of the equity shares as per rule 11UA of I.T. Rules. - AT

  • Income Tax:

    Accrual of income in India - Taxation of ESOP benefit - In the absence of nexus of ‘other similar benefits’, as wages and salaries, received by the assessee vis-à-vis his employment in the U.A.E., the treaty protection of the said income in India cannot be available to a resident of the U.A.E. - AT

  • Income Tax:

    Revision u/s 263 - PCIT has come to conclusion that the order passed by AO is erroneous, but has not verified nor investigated to determine the other condition i.e. how it is prejudicial to the interest of revenue. As held in numerous case law and it is settle position of law that to initiate proceedings under section 263, twin conditions has to be satisfied. - AT

  • Customs:

    Levy of IGST on re-import of aircrafts and parts thereof after repairs - Exemption form IGST - the absence of mention of integrated tax and compensation cess in column (3) under serial no. 2 of the Exemption Notification would mean that only the basic customs duty on the fair cost of repair charges, freight and insurance charges are payable and integrated tax and compensation cess are wholly exempted. - AT


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2021 (1) TMI 599
  • 2021 (1) TMI 598
  • 2021 (1) TMI 597
  • 2021 (1) TMI 596
  • 2021 (1) TMI 595
  • 2021 (1) TMI 594
  • 2021 (1) TMI 593
  • 2021 (1) TMI 592
  • 2021 (1) TMI 591
  • 2021 (1) TMI 590
  • 2021 (1) TMI 589
  • 2021 (1) TMI 588
  • 2021 (1) TMI 587
  • 2021 (1) TMI 586
  • 2021 (1) TMI 585
  • 2021 (1) TMI 584
  • 2021 (1) TMI 583
  • 2021 (1) TMI 565
  • 2021 (1) TMI 564
  • 2021 (1) TMI 563
  • 2021 (1) TMI 582
  • Income Tax

  • 2021 (1) TMI 562
  • 2021 (1) TMI 561
  • 2021 (1) TMI 560
  • 2021 (1) TMI 559
  • 2021 (1) TMI 558
  • 2021 (1) TMI 557
  • 2021 (1) TMI 581
  • 2021 (1) TMI 580
  • 2021 (1) TMI 579
  • 2021 (1) TMI 578
  • Customs

  • 2021 (1) TMI 577
  • Corporate Laws

  • 2021 (1) TMI 576
  • 2021 (1) TMI 575
  • 2021 (1) TMI 574
  • 2021 (1) TMI 573
  • Insolvency & Bankruptcy

  • 2021 (1) TMI 572
  • 2021 (1) TMI 571
  • 2021 (1) TMI 570
  • PMLA

  • 2021 (1) TMI 556
  • 2021 (1) TMI 569
  • 2021 (1) TMI 568
  • Service Tax

  • 2021 (1) TMI 567
  • CST, VAT & Sales Tax

  • 2021 (1) TMI 555
  • Indian Laws

  • 2021 (1) TMI 566
 

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