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Home e-Newsletters Index Year 2020 March Day 11 - Wednesday

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TMI Tax Updates - e-Newsletter
March 11, 2020

Case Laws in this Newsletter:

GST Income Tax Customs PMLA Service Tax Central Excise CST, VAT & Sales Tax Indian Laws



Highlights / Catch Notes

  • GST:

    Deduction of TDS u/s 51(1) of GST - supply conservancy/solid waste management service to the Municipal Corporation - Section 51(1) of the Act provides that the Government may mandate inter alia a local authority to deduct TDS while making payment to a supplier of taxable goods or services or both - As the Applicant is making an exempt supply to HMC the provisions of section 51 and, for that matter, the TDS Notifications do not apply to his supply. - AAR

  • GST:

    Nature of transaction - whether the activities undertaken by procuring orders from a foreign buyer to print texts and thereafter deliver them to various places in India is a taxable transaction? - The Applicant supplies the composite printing service to the recipient located in India. Such supplies are not, therefore, export of services within the meaning of section 2(6) of the IGST Act, 2017 - AAR

  • GST:

    Profiteering - supply of ‘Sujata Mixer Grinder 900W’ - rate of GST was reduced from 28% to 18% - by increasing the base price of the product the benefit of reduction in the tax rate was not passed on to the recipients by the Respondent and hence he has contravened the provisions of Section 171 of the CGST Act, 2017 - NAPA

  • GST:

    Profiteering - purchase of a flat - the Respondent has not availed any benefit of CENVAT or ITC in the pre and post GST era and hence, there was no additional benefit available to the Respondent which was to be passed on to his buyers - it is established that the Respondent was not liable to pass on the benefit of ITC to the Applicant No. 1 and thus he has not contravened the provisions of Section 171 of the CGST Act, 2017. - NAPA

  • Income Tax:

    Depreciation loss - loss arising due to forward contracts - Section 43A - The assessee even under unamended provision is entitled to benefit of the loss claimed by the assessee to the tune on account of settlement of forward contracts in the previous year, which was shown as loss while computing the taxable income of the assessee. - HC

  • Income Tax:

    Block assessment - as per panchanama drawn on 15th September, 1998, the search which was carried out in terms of authorization dated 14th September, 1998 was fully executed. After 15th September, 1998 there was no search or seizure. On 13th October, 1998 a prohibitary order was passed u/s 132(3) regarding the computer CPU of the respondent/ assessee which was revoked on 14th December, 1998. - passing of prohibitory order and revocation thereof were wholly irrelevant for the purpose of determining limitation u/s 158BE.- HC

  • Income Tax:

    Power of CIT(A) to enhance the assessment - It is pertinent to note that requirement of issuing show cause notice is must prior to enhancement of the assessment as envisaged in Section 251(2) of the Act for each and every enhancement and it does not depend on overall outcome of the total income of the assessee in pursuant to the order of the ld. CIT(A) - Merely because some additions made by the AO are deleted by the CIT(A), the requirement of issuing notice for new additions cannot be escaped - AT

  • Income Tax:

    TDS u/s 195 - Payment made to non residents - since the services in question provided by M/s. Korea Search to the assessee company do not fall in the category of fees for technical services as provided under Section 9(1)(vii) there was no liability of the assessee to deduct tax at source u/s 195 - AT

  • Income Tax:

    MAT - Computation of Book profit u/s 115JB - doubtful debts - Since, we have held that provision of doubtful debts is not an allowable deduction while computing income under normal provisions, as a corollary to the aforesaid findings the Book Profits under section 115JB are not required to be reduced by that extent. - AT

  • Income Tax:

    Even if expenditure may not have been incurred under any legal obligation, yet it is allowable as a business expenditure if it was incurred on grounds of commercial expediency. The case of the assessee is that the assessee has made advances to its subsidiary for business expediency. - AT

  • Customs:

    Seeking a sum which represents the value of goods destroyed by the Customs authorities - The Customs authorities cannot be saddled with refunding of the value of the goods to the petitioner. The Customs authorities having acted bona fide, the department cannot be asked to compensate the petitioner for incidental loss suffered by him on account of the pendency of the proceedings. It is neither the case of the petitioner that wholly mala fide in order to harass the petitioner the proceedings were initiated or that the same protracted. - HC

  • Customs:

    Recovery of Drawback - misdeclaration of the goods in the shipping bill - The subsequent change of declaration given by the Assessee to treat the same as 'Softy Upper Leather', all the more confirms the earlier misdeclaration in the relevant documents at the time of actual export. - HC

  • Customs:

    Advance Licence scheme - Imposition of penalty - suspension of the IEC - The petitioner has not availed any benefit under the Advance Licence Scheme. Once the petitioner fulfills the export obligations of ₹ 30 crorers on the cost of ₹ 2.10 crores, he has incurred for importing fuel. Though the petitioner availed the benefit under the Advance Licence Scheme to import fuel as is clear in the aforesaid amended provision that has to be excluded from the said scheme. - HC

  • Customs:

    100% EOU - Job work - Reversal of Drawback granted - It could not have been the intention of Legislature or the authorities concerned, to deny drawback claim merely because some processes in the chain of manufacturing have been conducted in the premise of EOU/unit of EPZ, if the assessee is otherwise entitled to the benefit - Though the Notifications do specifically require that the export, after completion of job work, is to take place only from the EOU/EPZ, this can be given effect to only in a situation where the entire process of manufacture/finishing is occasioned in such EOU/EPZ. - HC

  • Customs:

    Penalty u/s 116 of the Customs Act, 1962 - Since the person-in-charge of conveyance is liable for penalty in case of quantity unloaded is short of the quantity to be unloaded at the destination, the adjudicating authority has correctly imposed the penalty on the respondent under Section 116 of the Customs Act, 1962. - CGOVT

  • FEMA:

    Manner of payment in foreign exchange - Regulation 5 of the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 as amended

  • FEMA:

    Manner of Receipt in Foreign Exchange - Regulation 3 of the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2016 as amended

  • Indian Laws:

    Prohibition on dealing in Virtual Currencies - power of RBI - While we have recognized elsewhere in this order, the power of RBI to take a pre-emptive action, we are testing in this part of the order the proportionality of such measure, for the determination of which RBI needs to show at least some semblance of any damage suffered by its regulated entities. But there is none. While we have recognized elsewhere in this order, the power of RBI to take a pre-emptive action, we are testing in this part of the order the proportionality of such measure, for the determination of which RBI needs to show at least some semblance of any damage suffered by its regulated entities. But there is none. - there is nothing irrational about the acceptance of a technological advancement/ innovation, but the rejection of a by-product of such innovation. There is nothing like a “take it or leave it” option. - SC

  • Service Tax:

    Interest on refunds - The respondents have retained the money which belongs to the writ petitioners. Therefore, once the learned Single Judge has ordered for refund of the tax amount, necessarily, interest should follow. - claim of interest allowed - HC

  • Service Tax:

    Valuation - air travel agent service - rule 6 (7) of the Service Tax Rules, 1994 - The appellant contends that out of the seventy three airlines only four airlines pay commission on fuel surcharge and, therefore, it cannot be said that commission is normally paid to the air travel agent by the airlines on fuel surcharge. It was, therefore, obligatory on the part of the Principal Commissioner to have considered this issue raised by the appellant in response to the show cause notice, but that has not been done. - AT

  • Central Excise:

    100% EOU - allegation that they were doing job work in violation of Exim policy - quantum of sale made to DTA unit - debonding - Undisputedly, in the present case, the transaction between UFAC and TISCO satisfies all the three conditions. The goods are produced and manufactured by UFAC, an 100% export-oriented unit; they are manufactured wholly from the raw materials produced or manufactured in India and, thirdly, they have been allowed to be sold in India in accordance with the provisions of paragraph 9.9(b) of the EXIM Policy. - SC

  • Central Excise:

    Rebate claim - Cenvat credit reversed on depreciated value of imported capital goods (machinery parts) at the time of their export - Since the imported goods are not liable for Central Excise duty under the Central Excise Act, 1944 no rebate claim can be filed in respect of such goods which are not excisable under Central Excise Act, 1944. - CGOVT

  • Central Excise:

    Refund of Excise Duty - The Government is of view that the excess amount paid by the applicant on freight and insurance was not payable as Central Excise duty. It is observed that rebate can be granted only to the extent of duty paid on export goods. - CGOVT

  • Central Excise:

    Rebate of duty - exporter missed out the self-sealing of the goods - The Government is of the view that this is a procedural lapse on the part of the respondent. The fact that the customs officer at Petrapole LCS has given a cross border certificate and remittance has also been received against the said export is undisputed - CGOVT

  • Central Excise:

    Refund of Excise Duty - doctrine of merger - time limitation - since upon the Revenue preferring an appeal against the Order-in-Appeal (with the assessee also filing its cross-objection), the matter was sub judice before the Tribunal and naturally, when the matter was lis pendens, no such application for refund could be filed. - The appellant’s claim for refund is not hit by limitation - AT

  • VAT:

    Review of the assessment order - In absence of any such reason given by the Assessing Authority, showing the application of his own independent mind, we are of the considered view that only recording the audit objection cannot mean the independent reasoning given by the Assessing Authority. - HC

  • VAT:

    Input Tax Credit (ITC) - Imposition of penalty u/s 70[2] of KVAT Act - bill trading “to evade the tax due to the State Government” - burden of proving that the claim of input tax credit is correct, is squarely upon the Assessee who never discharged the said burden in the present case. - HC


Articles


Notifications


News


Case Laws:

  • GST

  • 2020 (3) TMI 412
  • 2020 (3) TMI 411
  • 2020 (3) TMI 410
  • 2020 (3) TMI 409
  • 2020 (3) TMI 408
  • 2020 (3) TMI 406
  • 2020 (3) TMI 405
  • 2020 (3) TMI 407
  • Income Tax

  • 2020 (3) TMI 404
  • 2020 (3) TMI 403
  • 2020 (3) TMI 393
  • 2020 (3) TMI 392
  • 2020 (3) TMI 402
  • 2020 (3) TMI 401
  • 2020 (3) TMI 400
  • 2020 (3) TMI 399
  • 2020 (3) TMI 391
  • 2020 (3) TMI 390
  • 2020 (3) TMI 389
  • 2020 (3) TMI 388
  • 2020 (3) TMI 387
  • 2020 (3) TMI 398
  • 2020 (3) TMI 397
  • 2020 (3) TMI 396
  • 2020 (3) TMI 386
  • 2020 (3) TMI 395
  • 2020 (3) TMI 394
  • Customs

  • 2020 (3) TMI 385
  • 2020 (3) TMI 384
  • 2020 (3) TMI 383
  • 2020 (3) TMI 380
  • 2020 (3) TMI 382
  • 2020 (3) TMI 381
  • PMLA

  • 2020 (3) TMI 379
  • Service Tax

  • 2020 (3) TMI 378
  • 2020 (3) TMI 376
  • 2020 (3) TMI 377
  • Central Excise

  • 2020 (3) TMI 375
  • 2020 (3) TMI 374
  • 2020 (3) TMI 370
  • 2020 (3) TMI 369
  • 2020 (3) TMI 368
  • 2020 (3) TMI 373
  • 2020 (3) TMI 372
  • 2020 (3) TMI 371
  • CST, VAT & Sales Tax

  • 2020 (3) TMI 367
  • 2020 (3) TMI 366
  • 2020 (3) TMI 365
  • Indian Laws

  • 2020 (3) TMI 364
  • 2020 (3) TMI 363
 

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