TMI Tax Updates - e-Newsletter
March 20, 2018
Case Laws in this Newsletter:
Articles
By: Raginee Goyal
Summary: The article discusses the accounting implications of credit and debit notes under the Goods and Services Tax (GST) framework, focusing on adjustments for discounts and incentives. Credit/debit notes correct invoice values and tax discrepancies. They must be issued by September following the financial year of the transaction. The article examines scenarios involving sales returns, discounts, and price changes, distinguishing between pre-supply and post-supply discounts. It emphasizes that discounts and incentives are distinct; discounts adjust invoice values, while incentives are service considerations. Proper documentation and adherence to Section 15 of the CGST Act are crucial for compliance and tax treatment.
By: DEVKUMAR KOTHARI
Summary: E-ITR forms, used for electronic filing of Income Tax Returns, lack provisions for adding explanations or additional claims, which can be crucial due to the complexity of tax laws and varying judicial opinions. The Supreme Court ruling in Goetze (India) Limited v. CIT underscores that claims not made in the ITR may not be considered by the Assessing Officer (AO). This limitation is more pronounced in E-ITR compared to physical ITR, where extra sheets can be added. Therefore, it is suggested that E-ITR forms should allow for attachments or additional sheets to enable taxpayers to provide necessary explanations and claims.
News
Summary: The Central Board of Excise and Customs (CBEC) is set to verify GST transitional credit claims of 50,000 taxpayers, focusing on those exceeding Rs. 25 lakh. This initiative aims to curb fraudulent claims following the GST transition. Verification will occur in four phases, with initial checks targeting claims with over 25% growth or exceeding Rs. 25 lakh, to be completed by June. The CBEC has instructed field offices to scrutinize these claims using existing data, minimizing taxpayer contact. This move follows concerns over substantial, unexplained claims and aims to enhance tax collection efficiency, supported by big data analytics.
Summary: The Ministry of Commerce and Industry has released a draft Agriculture Export Policy to support the Prime Minister's vision of doubling farmers' income. The policy aims to enhance agricultural exports and integrate Indian farmers into the global value chain. A preliminary meeting with stakeholders has been held to gather feedback, and the draft is now available for public consultation. Stakeholders are invited to provide suggestions by April 5, 2018, to refine the policy further. The draft is accessible on the Department of Commerce's website for review and input.
Summary: The Reserve Bank of India set the reference rate for the US Dollar at Rs. 65.0375 on March 19, 2018, compared to Rs. 64.8737 on March 16, 2018. Based on this reference rate and cross-currency quotes, the exchange rates for the Euro, British Pound, and Japanese Yen against the Rupee were: 1 Euro at Rs. 79.7750, 1 British Pound at Rs. 90.5582, and 100 Japanese Yen at Rs. 61.50 as of March 19, 2018. The SDR-Rupee rate will be determined based on this reference rate.
Summary: Representatives from 50 countries are convening in New Delhi on March 19-20 for an informal World Trade Organisation (WTO) ministerial meeting. This gathering aims to facilitate open discussions to provide political guidance on key issues, especially after the lack of direction at the Eleventh Ministerial Conference in Buenos Aires in December 2017. The meeting seeks to explore options for revitalizing the WTO and addressing its systemic challenges, notably in dispute settlement. Strengthening the multilateral trading system is deemed crucial, and the New Delhi meeting is expected to be a platform for candid exchanges among ministers.
Notifications
Customs
1.
21/2018 - dated
19-3-2018
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Cus (NT)
Declaration of Vijayawada Airport as Customs Airport; amendment of Notification No. 61/94(NT)- CUSTOMS dt. 21st November, 1994
Summary: The Government of India, through the Central Board of Excise and Customs, has amended Notification No. 61/94-CUSTOMS to designate Vijayawada Airport in Andhra Pradesh as a Customs Airport. This amendment replaces "Hyderabad" with "Vijayawada" in the relevant entry of the notification. Additionally, a new entry for Shamshabad Hyderabad Airport in Telangana has been added, allowing for the unloading of imported goods and loading of export goods. This change is part of Notification No. 21/2018-Customs (N.T.), effective from March 19, 2018.
GST - States
2.
S.O. No. 25-05/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Seeks to exempt Central Government’s share of Profit Petroleum from State tax.
Summary: The Jharkhand State Government, under the Jharkhand Goods and Services Tax Act, 2017, has issued a notification exempting the Central Government's share of profit petroleum from state tax. This exemption applies to the intra-state supply of services involving the grant of licenses or leases for exploring or mining petroleum crude or natural gas. The exemption covers the state tax on the consideration paid to the Central Government as its share of profit petroleum, as defined in relevant contracts. This notification is effective retroactively from January 25, 2018, as per the order of the Governor of Jharkhand.
3.
S.O. No. 23-09/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Amendments in the Notification of the Government of Jharkhand, in the Department of Commercial Taxes, No. 45/2017- State Tax (Rate), S.O 125, dated the 14th November, 2017.
Summary: The Government of Jharkhand has amended its notification No. 45/2017-State Tax (Rate), dated November 14, 2017, under the Jharkhand Goods and Services Tax Act, 2017. The amendments involve changes to the description of entities eligible for certain tax considerations, specifically substituting "Department of Scientific and Research" with "Department of Scientific and Industrial Research" in relevant sections. Additionally, a new explanation aligns exemptions with a previous Government of India notification. These amendments are effective retroactively from January 25, 2018. The notification was issued by the Principal Secretary-cum-Commissioner of the Commercial Taxes Department.
4.
S.O. No. 22-08/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Exempts the State tax on intra-state supplies of goods - Old and used, petrol Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven motor vehicles.
Summary: The Jharkhand State Government exempts state tax on intra-state supplies of old and used motor vehicles, including petrol, LPG, CNG, and diesel vehicles, under specific conditions. The exemption applies to vehicles with certain engine capacities and dimensions, as specified in the notification. The tax rates are set at 9% for certain vehicle categories and 6% for others. The margin of the supplier is calculated based on the difference between the selling and purchase prices, considering depreciation where applicable. This exemption does not apply if the supplier has availed input tax credit. The notification is effective from January 25, 2018.
5.
S.O. No. 21-07/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Amendments in the Notification of the Government of Jharkhand in the Department of Commercial Taxes No.2/2017- State Tax (Rate), dated the 29th June, 2017.
Summary: The Government of Jharkhand has issued amendments to the notification No.2/2017- State Tax (Rate) under the Jharkhand Goods and Services Tax Act, 2017. Effective from January 25, 2018, the changes include updates to the schedule such as substituting entries for aquatic feed and introducing new entries for de-oiled rice bran and cotton seed oil cake. Additional amendments involve changes to entries related to agriculture, horticulture, forestry, and the inclusion of parts for the manufacture of hearing aids. These amendments were made based on recommendations from the Council and are documented in the Gazette of Jharkhand.
6.
S.O. No. 20-06/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Amendments in the Notification of the Government of Jharkhand in Department of Commercial Taxes, No.1/2017- State Tax (Rate), S.O 31 dated the 29th June, 2017.
Summary: The Government of Jharkhand has amended its notification concerning State Tax (Rate) under the Jharkhand Goods and Services Tax Act, 2017. Effective from January 25, 2018, these amendments introduce new entries and modify existing ones across various schedules, impacting tax rates on items such as tamarind kernel powder, mehendi paste, rice bran, liquefied gases, bio-pesticides, and bio-diesel. Changes also affect the classification and tax rates for goods like confectionery, drinking water, fertilizers, and various fabrics. The notification also revises entries related to semi-precious stones, synthetic stones, and imitation jewelry, among others.
7.
S.O. No. 19-04/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Notifies the following classes of registered persons who supply development rights to a developer, builder, construction company or any other registered person against consideration, wholly or partly, in the form of construction service of complex, building or civil structure.
Summary: The notification from the Jharkhand Commercial Taxes Department outlines the tax liability for registered persons involved in the exchange of development rights and construction services. It specifies that registered persons supplying development rights to developers, builders, or construction companies, and those providing construction services in exchange for development rights, are liable for state tax. This tax liability arises when the developer or builder transfers possession or rights in the constructed property through a conveyance deed or similar instrument. The notification is effective from January 25, 2018, as per the Jharkhand Goods and Services Tax Act, 2017.
8.
S.O. No. 18-03/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Amendments in the Notification of the Government of Jharkhand, Department of Commercial Taxes No.13/2017- State Tax (Rate), S.O 43, dated the 29th June, 2017
Summary: The Government of Jharkhand has amended its notification No. 13/2017 concerning State Tax (Rate) under the Jharkhand Goods and Services Tax Act, 2017. This amendment, effective from January 25, 2018, introduces new provisions in the notification. A new entry, 5A, specifies that services provided by government bodies through renting immovable property to registered persons under the Jharkhand GST Act are included. Additionally, a clause is added to define "insurance agent" as per the Insurance Act, 1938. These changes follow recommendations from the Council and are published by the order of the Governor of Jharkhand.
9.
S.O. No. 17-02/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Amendments in the Notification of the Government of Jharkhand, Department of Commercial Taxes, No.12/2017- State Tax (Rate), S.O. No. 17 dated the 29th June, 2017.
Summary: The Government of Jharkhand has issued amendments to the notification No.12/2017 - State Tax (Rate) under the Jharkhand Goods and Services Tax Act, 2017. Key changes include the addition of "Government Entity" alongside "Governmental Authority" in certain entries, introduction of new serial numbers for specific services, and modifications in the duration and scope of exemptions. Notable amendments involve services related to transportation, life insurance for Coast Guard personnel, reinsurance, financial services in SEZs, fumigation services, educational services, and admission rights to various events. These amendments are effective from January 25, 2018.
10.
S.O. No. 16-01/2018 State Tax (Rate) - dated
5-3-2018
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Jharkhand SGST
Amendments in the Notification of the Government of Jharkhand, in the Department of Commercial Taxes No.11/2017- State Tax (Rate), S.O 41 dated the 29th June, 2017.
Summary: The Government of Jharkhand has issued amendments to its notification on State Tax (Rate) under the Jharkhand Goods and Services Tax Act, 2017. Key changes include updates to tax rates and definitions related to various services and goods, such as civil structures for housing projects, works contracts, and housekeeping services. New provisions address services related to mid-day meals, affordable housing, and infrastructure projects. Adjustments also cover the supply of land, rental services, and maintenance services. These amendments aim to align with public interest and are effective from January 25, 2018.
11.
Va Kar/GST/1/2018-S.O. No. 09 - dated
20-2-2018
-
Jharkhand SGST
Appellate Authority for Advance Ruling
Summary: The State Government of Jharkhand, under Section 99 of the Jharkhand Goods and Services Tax Act, 2017, has established the Jharkhand Appellate Authority for Advance Ruling for Goods and Services Tax. This authority will hear appeals against decisions made by the Advance Ruling Authority. The Appellate Authority will consist of the Chief Commissioner of Central Tax and the Commissioner of State Tax. This notification was issued by the Principal Secretary-cum-Commissioner of the Commercial Taxes Department, by order of the Governor of Jharkhand, on February 20, 2018.
12.
S.O. No. 15-09/2018-State Tax - dated
20-2-2018
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Jharkhand SGST
Notification related to electronic way bill.
Summary: The Government of Jharkhand, through its Commercial Taxes Department, has issued Notification No. 09/2018-State Tax, dated February 20, 2018, under the Jharkhand Goods and Services Tax Act, 2017. This notification designates www.gst.gov.in as the Common GST Electronic Portal for registration, tax payment, and return filing, and www.ewaybillgst.gov.in as the portal for electronic way bills. It supersedes the earlier notification S.O 27-State Tax from June 20, 2017, except for actions taken before the supersession. This notification is effective from January 16, 2018, as per the order of the Governor of Jharkhand.
13.
S.O. No. 14-08/2018-State Tax - dated
20-2-2018
-
Jharkhand SGST
Extends the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6.
Summary: The notification issued by the Commercial Taxes Department of Jharkhand extends the deadline for Input Service Distributors to submit their returns in FORM GSTR-6. This extension applies to returns for the months from July 2017 to February 2018, with the new deadline set for March 31, 2018. This decision supersedes the previous notification dated November 14, 2017, and is effective from January 23, 2018, as per the powers conferred by the Jharkhand Goods and Services Tax Act, 2017. The order was authorized by the Principal Secretary-cum-Commissioner.
14.
S.O. No. 13-07/2018-State Tax - dated
20-2-2018
-
Jharkhand SGST
Waives the amount of late fee payable the return in FORM GSTR-6.
Summary: The Jharkhand State Government, under the authority of section 128 of the Jharkhand Goods and Services Tax Act, 2017, has waived the late fee for registered persons who fail to submit the return in FORM GSTR-6 by the due date. The waiver applies to fees exceeding twenty-five rupees per day of delay. This notification, issued on 20th February 2018, is effective retroactively from 23rd January 2018, as per the order of the Governor of Jharkhand.
15.
S.O. No. 12-06/2018-State Tax - dated
20-2-2018
-
Jharkhand SGST
Waives the amount of late fee payable the return in FORM GSTR-5A.
Summary: The Jharkhand State Government, under the Jharkhand Goods and Services Tax Act, 2017, has issued a notification waiving late fees for registered persons who failed to submit FORM GSTR-5A by the due date. The waiver applies to fees exceeding twenty-five rupees per day of delay. If the integrated tax payable is nil, the waiver applies to fees exceeding ten rupees per day. This notification is effective retroactively from January 23, 2018, as ordered by the Governor of Jharkhand and communicated by the Principal Secretary-cum-Commissioner.
16.
S.O. No. 11-05/2018-State Tax - dated
20-2-2018
-
Jharkhand SGST
Waives the amount of late fee payable the return in FORM GSTR-5 of twenty-five rupees for every day.
Summary: The State Government of Jharkhand, under the authority of section 128 of the Jharkhand Goods and Services Tax Act, 2017, has waived the late fee for registered persons who fail to submit the return in FORM GSTR-5 by the due date. The waiver reduces the late fee to twenty-five rupees per day. If the state tax payable is nil, the late fee is reduced to ten rupees per day. This notification is effective retroactively from January 23, 2018, as ordered by the Governor of Jharkhand.
17.
S.O. No. 10-04/2018-State Tax - dated
20-2-2018
-
Jharkhand SGST
Waives the amount of late fee of the details of outward supplies for any month/quarter in FORM GSTR-1.
Summary: The Jharkhand State Government, under the Jharkhand Goods and Services Tax Act, 2017, has waived late fees for registered persons failing to submit outward supply details in FORM GSTR-1 by the due date. The waiver applies to fees exceeding twenty-five rupees per day of delay. If there are no outward supplies in a given period, the late fee is waived for amounts exceeding ten rupees per day. This notification is retroactively effective from January 23, 2018, as ordered by the Governor of Jharkhand, with K. K. Khandelwal as the Principal Secretary-cum-Commissioner.
18.
S.O. No. 08-11/2018-State Tax - dated
19-2-2018
-
Jharkhand SGST
Rescission, the notification of the Government of Jharkhand (Department of Commercial Taxes) No. S.O. 4 State Tax dated the 3rd January 2018.
Summary: The Government of Jharkhand, through the Department of Commercial Taxes, has rescinded Notification No. S.O. 4 State Tax dated January 3, 2018, under the authority of section 164 of the Jharkhand Goods and Services Tax Act, 2017. This rescission is effective retroactively from February 2, 2018, and does not affect any actions taken or omitted prior to this rescission. The order was issued by the Principal Secretary-cum-Commissioner of the Commercial Taxes Department on February 19, 2018.
19.
S.O. No. 07-03/2018-State Tax - dated
30-1-2018
-
Jharkhand SGST
The Jharkhand Goods and Services Tax (Amendment) Rules, 2018.
Summary: The Jharkhand Goods and Services Tax (Amendment) Rules, 2018, effective from January 23, 2018, introduce several amendments to the Jharkhand GST Rules, 2017. Key changes include extending the period in rule 3(3A) from 90 to 180 days, revising tax rates in rule 7, and omitting the proviso in rule 20. New rules address the value of supply in lotteries and gambling, and amendments to rules 24, 43, 54, and 138 involve changes in deadlines, definitions, and procedures for e-way bills. The amendments also include updates to forms related to GST processes, aiming to streamline and clarify tax administration in the state.
20.
09/2018 - dated
25-1-2018
-
Karnataka SGST
seeks to amend Notification No.(45/2017) - FD 48 CSL 2017 dated 14/11/2017
Summary: The Government of Karnataka is amending Notification No. 45/2017 related to the Karnataka Goods and Services Tax Act, 2017. The amendments involve changes to the description in the table of the original notification, specifically updating references to "Department of Scientific and Research" to "Department of Scientific and Industrial Research." Additionally, a new explanation clarifies that exemptions align with a 1996 Government of India notification, effective from November 15, 2017. These changes are made in the public interest based on recommendations from the Council.
21.
08/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to amend Notification No.(01/2017 - FD 48 CSL 2017 dated 29/06/2017.
Summary: The Government of Karnataka has issued a notification amending Notification No. 01/2017 under the Karnataka Goods and Services Tax Act, 2017. Effective from January 25, 2018, this amendment exempts state tax on intra-state supplies of specified old and used motor vehicles. The exemption applies to vehicles such as petrol, LPG, or CNG-driven vehicles with engine capacities of 1200 cc or more, diesel vehicles with engine capacities of 1500 cc or more, SUVs, and other vehicles, with tax rates ranging from 6% to 9%. The exemption does not apply if the supplier availed input tax credit under specified conditions.
22.
07/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to Amendment in the Notification No.(02/2017) - FD 48 CSL 2017 dated 29/06/2017.
Summary: The Government of Karnataka has issued amendments to its previous notification (02/2017) under the Karnataka Goods and Services Tax Act, 2017. Changes include updates to the classification of aquatic, poultry, and cattle feed, the addition of de-oiled rice bran and cotton seed oil cake, and modifications to entries related to agricultural tools and Vibhuti. A new entry for parts used in the manufacture of hearing aids has also been added. These amendments are effective from January 25, 2018, as per the order of the Governor of Karnataka, communicated by the Finance Department.
23.
06/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to amend Notification No.(01/2017) - FD 48 CSL 2017 dated 29/06/2017.
Summary: The Government of Karnataka has issued amendments to Notification No. (01/2017) under the Karnataka Goods and Services Tax Act, 2017. These amendments introduce new entries and modify existing ones across various schedules, affecting tax rates and classifications for specific goods. Notable changes include the addition of items like tamarind kernel powder, mehendi paste in cones, and bio-pesticides to the tax schedules. Adjustments also affect categories such as liquefied gases, sugar boiled confectionery, and bio-diesel. The notification, effective from January 25, 2018, aims to update tax structures in line with the recommendations of the GST Council.
24.
05/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to exempt Central Government’s share of Profit Petroleum from Central tax.
Summary: The Government of Karnataka, under the Karnataka Goods and Services Tax Act, 2017, exempts the intra-State supply of services involving the grant of licenses or leases for exploring or mining petroleum crude or natural gas from State tax. This exemption applies to the portion of the consideration paid to the Central Government, specifically its share of profit petroleum, as defined in relevant contracts. This decision, effective from January 25, 2018, is made in public interest and follows the recommendations of the Council. The notification is issued by the Finance Department of Karnataka.
25.
04/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to provide special procedure with respect to payment of tax by registered person supplying service by way of construction against transfer of development right and vice versa.
Summary: The Government of Karnataka, under the Karnataka Goods and Services Tax Act, 2017, has issued a notification establishing a special procedure for tax payment by registered persons involved in construction services exchanged for development rights. This applies to registered persons supplying development rights in exchange for construction services and vice versa. The tax liability arises when the developer or builder transfers possession or rights in the constructed property to the supplier of development rights through a conveyance deed or similar instrument. This procedure aims to regulate the tax obligations associated with such transactions.
26.
03/2018 - dated
25-1-2018
-
Karnataka SGST
Specify services supplied by the Central Government, State Government, Union territory or local authority by way of renting of immovable property to a registered person under KGST Act, 2017 to be taxed under Reverse Charge Mechanism (RCM)
Summary: The Government of Karnataka has amended its notification under the Karnataka Goods and Services Tax Act, 2017, to include services provided by the Central Government, State Government, Union territory, or local authority through renting immovable property to registered persons. This amendment specifies that such transactions will be taxed under the Reverse Charge Mechanism (RCM). Additionally, the notification includes a new clause defining "insurance agent" as per the Insurance Act, 1938. These changes were made following the recommendations of the Council and are effective as of January 25, 2018.
27.
02/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to amend Notification No. (12/2017) No. FD 48 CSL 2017,dated the 29th June, 2017 so as to exempt certain services as recommended.
Summary: The Government of Karnataka has amended Notification No. 12/2017 under the Karnataka Goods and Services Tax Act, 2017 to exempt certain services. Key amendments include: adding "Government Entity" to specific exemptions, introducing new exemptions for composite supply of goods and services to government bodies, extending exemption periods for transportation services, and adding exemptions for services related to education, insurance, and financial services. Changes also include adjustments to service duration and monetary thresholds. These amendments aim to align with public interest and recommendations from the Council, effective immediately, with some conditions expiring by September 30, 2018.
28.
01/2018 - dated
25-1-2018
-
Karnataka SGST
Seeks to amend notification No. 11/2017 No. FD 48 CSL 2017, dated 29th June, 2017 so as to notify KGST rates of various services as recommended
Summary: Amendment to Notification No. 11/2017 No. FD 48 CSL 2017, dated 29th June 2017, is proposed to update the Karnataka Goods and Services Tax (KGST) rates for various services. This change is based on recommendations and is documented as Notification 01/2018, dated 25th January 2018, under the Karnataka State Goods and Services Tax (SGST) regulations.
Circulars / Instructions / Orders
Customs
1.
06/2018 - dated
16-3-2018
Refund of IGST on Export - EGM Error related cases
Summary: The circular addresses issues related to the refund of Integrated Goods and Services Tax (IGST) on exports, focusing on errors in Export General Manifest (EGM) filings. It highlights the need for electronic filing of EGMs by shipping lines, especially for cargo originating from Inland Container Depots (ICDs). The responsibilities for jurisdictional officers to ensure accurate EGM filings and corrections, emphasizing coordination between ICDs and gateway ports. It mandates swift action against shipping lines failing to file necessary EGMs and stresses the importance of error-free integration for smooth IGST refund processing. Officers are urged to address any difficulties promptly.
Highlights / Catch Notes
GST
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GST Now Applies to Works Contracts Previously Under VAT; Clarification to Be Provided by Commissioner of Commercial Taxes.
Case-Laws - HC : Levy of GST - Works Contract, on which VAT was imposed previously - The appropriate person who would be in a position to give reply is that the Commissioner of Commercial Taxes shall give a reply. - HC
Income Tax
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Section 56(2)(viib) and Rule 11UA: No Income Additions for Share Valuation as Fair Market Value Complies with Regulations.
Case-Laws - AT : Additions u/s 56(2)(viib) r.w.r 11UA on account of undervaluation of shares - fair market value - share price calculated by the assessee of TEPL for ₹ 5 per shares has been determined in accordance with the provision of Rule 11UA - no additions - AT
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Amendment to Section 73: Share Trading Losses Not Speculative for Companies Primarily Trading Shares; Retrospective Clarification.
Case-Laws - AT : Scope of Section 73 - carry forward of loss on sale of investment - loss in share trading was not to treated as speculative loss in case of an company whose principal business was trading in shares and that the said amendment to the explanation was retrospective and clarificatory in nature - AT
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Trust's Property Sale for Medical Facilities Complies with Income Tax Act Sections 11 & 12; Tax-Exempt Status Maintained.
Case-Laws - AT : Exemption u/s 11 & 12 - sale the immovable property for medical facilities - the activities of the trust are carried out in accordance with objects mentioned in the trust deed and accordingly there is no violation under the provisions of Section 11 / 12 - AT
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Income Assessment: No Separate Addition for Bogus Trade Creditors When Books Rejected & Net Profit Rate Applied.
Case-Laws - AT : Addition on account of bogus creditors - if the income has been assessed after rejecting the books of accounts and net profit rate has been applied, then no separate addition on account of trade creditors should be made - AT
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Court Rules Against Adjusting Income Based on LIFO Method Defects; Alteration of Consistent Accounting Method Unsound.
Case-Laws - AT : Additions on account of suppression of closing stock - defects in the LIFO method adopted - AO, is wrong in disturbing the method of accounting regularly employed by the assessee for valuation of closing stock. Hence the addition is bad in law - AT
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Section 68: Unexplained Cash Deposits Not Enough for Adverse Inference on Creditor's Creditworthiness Without Notice Response.
Case-Laws - AT : Unexplained cash deposits - addition u/s 68 - Merely because the creditor did not respond to the notice, no adverse inference can be taken with regard to the creditworthiness of the creditor - AT
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High Court Quashes Order After Application for Rectification u/s 154 Denied Without Personal Hearing.
Case-Laws - HC : Application for rectification made u/s 154 has been rejected in breach of principles of natural justice, i.e. without granting the petitioner a personal hearing - the impugned order is quashed and set aside - HC
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High Court Rules: CBDT Circulars Cannot Add Conditions Not in Income Tax Act or Rule 6DD for Cash Meat Purchases.
Case-Laws - HC : Addition u/s 40A - purchases of meat in cash in excess of ₹ 20,000/ - whether assessee has fulfilled the condition laid down in Rule 6DD? - CBDT Circular cannot put in new conditions for grant of benefit which are not provided either in the Act or in the Rules framed there-under - HC
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Assessing Officer Can't Add Expenses for Gifts and General Costs Without Evidence in Tax Assessment.
Case-Laws - AT : Addition on account of gift and presents and general expenses - All the expenses as claimed are fully verifiable and supported by third party vouchers - AO cannot make addition on estimation - AT
Customs
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Commissioner Faulted for Relying on Incorrect Web Info in Battery Import Origin Decision; Calls for Better Verification.
Case-Laws - AT : Import of prohibited item - batteries as per ISO-9128 specifications or not? - only on the basis of internet website, the learned Commissioner has concluded that the goods are not of Malaysia origin which is not correct. - AT
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Customs duty for crude oil must be based on shore tank quantity, not Bills of Lading.
Case-Laws - AT : Duty demand on crude oil based on Bills of Lading quantity - customs duty needs to be worked out only on the basis of the quantity of crude oil received in the shore tanks - AT
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High Court Reviews Legality of Anti-Dumping Rules' Paragraph 7 and Rule 10 Under Customs Tariff Act Section 9A.
Case-Laws - HC : Vires of para 7 of Annexure-1 of the Anti- Dumping Rules - Section 9A of the Customs Tariff Act, 1975 - the Petitioner’s submission that the determination of "normal value" as provided in para 7 of Annexure-1 read with Rule 10 of the Anti-Dumping Rules is ultra vires section 9A of the Custom Tariff Act 1975 is invalid - HC
Corporate Law
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NCLT Affirms Mandatory Virtual Attendance for Board Meetings u/s 173(2) of Companies Act.
Case-Laws - AT : Application before the NCLT seeking facility of attending the Board meetings through video-conferencing - It would not be appropriate to shut-out these provisions on mere apprehensions - the provisions of Section 173 (2) of the New Act are mandatory and the companies cannot be permitted to make any deviations therefrom. - AT
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Company Faces Winding-Up Petition After Failing to Respond to Statutory Notice, Indicating Commercial Insolvency.
Case-Laws - HC : Winding up petition - non reply to statutory notice - commercial insolvency - as each of the companies are unable to discharge their debts, are commercially insolvent and require to be wound up - HC
Indian Laws
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Daughters' Rights as Coparceners in Hindu Joint Family: Impact of 2005 Amendment to Section 6 on Ongoing Suit.
Case-Laws - SC : Partition of Hindu Joint Family (HUF) - Daughters as Coparceners in the Joint Family - In the present case, no doubt, suit for partition was filed in the year 2002. However, during the pendency of this suit, Section 6 of the Act was amended as the decree was passed by the trial court only in the year 2007. Thus, the rights of the appellants got crystallised in the year 2005 and this event should have been kept in mind by the trial court as well as by the High Court - SC
IBC
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Company Petitions Admitted to Declare Moratorium u/s 14 of Insolvency and Bankruptcy Code Due to Guarantors' Deed.
Case-Laws - Tri : Deed of guarantee executed by the guarantors duly stamped - whether or not this company petition be admitted basing on this deed of guarantee? - the Creditor has furnished the material showing existence of debt and default by the principal borrower, these Company Petitions are in fact fit to be admitted for declaration of moratorium as envisaged under Section 14 of the Code. - Tri
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Corporate Insolvency Resolution Process Can Proceed Despite Applicant's Lack of Transparency and Suppression of Facts.
Case-Laws - Tri : Initiation of Corporate Insolvency Resolution Process - applicant has not come with clean hands and has suppressed facts - it is no longer res integra that pendency of a suit or court proceedings is no bar for initiation of insolvency proceedings under the Code - Tri
Service Tax
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Appellant Challenges Double Taxation on Rent Collection for Immovable Property Under Service Tax Regulations.
Case-Laws - AT : Renting of immovable property service - appellant collected the rend and remitted tot he board - The Board is also paying the service tax to the department - if service tax is demanded from the appellant, it would amount to double taxation - AT
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Intellectual Property Rights Transfer Governed by Agreement; Section 65(55)(b) Proviso Inapplicable.
Case-Laws - AT : Intellectual Property Right Services - the transfer of right is absolutely in terms of the agreement, therefore, proviso Section 65(55)b) of the act are not applicable - AT
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Service Tax Demand on Manufacturer for Scientific Consultancy Set Aside Due to Lack of Scientific Affiliation.
Case-Laws - AT : Scientific or technical consultancy service - The assessee is manufacturer of excisable goods and they are not Scientist or Technocrat or any science or technology institute - demand of service tax set aside - AT
Central Excise
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Tribunal Error: Catering Services as Edible Preparations for Airlines Unresolved, Revenue Contests Decision.
Case-Laws - HC : Manufacture or service - catering services, according to the Revenue, amount to manufacture of edible preparation and supply of food preparation/materials to various airlines, served on board of aircrafts - The tribunal erred in law in not completely deciding the matter - HC
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CENVAT Credit Eligibility: Appellant Can Use Supplementary Invoices Issued Before April 1, 2011 Under Central Excise Laws.
Case-Laws - AT : CENVAT credit - duty paying documents - it cannot be said that prior to 01.04.2011, the appellant was not entitled to avail Cenvat Credit on the strength of supplementary invoices issued by the service provider - AT
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Revenue Cannot Demand Excise Duty on Corrugated Boxes After Accepting Service Tax Payment, Precluded from Show Cause Notice.
Case-Laws - AT : Levy of excise duty - manufacture of Corrugated Boxes - payment of service tax instead of excise duty - if Revenue has accepted service tax from the appellant, therefore, the Revenue cannot issue a show cause notice on demand of duty - AT
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CENVAT Credit Denial on Service Tax for Rented Property Deemed Incorrect if Factory Operates from Rented Premises.
Case-Laws - AT : CENVAT credit - the denial of credit of service tax paid on renting of immovable property services seems to be totally incorrect proposition when the factory is functioning from the rental premises - AT
VAT
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Court Rules UPS Systems Differ from Inverters Under TNGST Act; Tax Classification Adjusted for Unique Features.
Case-Laws - HC : Rate of tax - Un-interrupted Power Supply Systems (UPS) - Validity of clarification - there is a gross difference in back up time for both UPS and Inverter, apart from the circuitry difference - UPS cannot be taxed as inverter under TNGST - HC
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Court Rules Tax on Goods for Export Sales Not Permissible Under TNGST Act Section 2(n) Explanation 3(a.
Case-Laws - HC : Levy of tax on purchase of goods - since the export sale is fully covered by the definition of sale under Section 2(n) read with Explanation 3(a) of the TNGST Act, the Assessing authority cannot levy tax under Section 3(4) of the Act - HC
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