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Home e-Newsletters Index Year 2022 April Day 29 - Friday

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TMI Tax Updates - e-Newsletter
April 29, 2022

Case Laws in this Newsletter:

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



Highlights / Catch Notes

  • GST:

    Levy of Service Tax and / or GST on royalty and District Mineral Fund (DMF) - royalty for grant of mining lease - royalty has been considered to be a tax or profit pendre - As such, there shall be stay of recovery of GST for grant of mining lease/ royalty/DMF from the petitioners till further orders. However, the Revenue is not restrained from conducting and completing the assessment proceedings. - HC

  • GST:

    Seeking grant of copy of statements recorded by the respondents in the course of investigation - reason for not giving the copies of the statements not produced - non collection of tax for outward supply of rice - violation of principles of natural justice - first respondent directed to re-consider the application to independently consider the request made by the appellants in tune with the provisions of the Act - HC

  • GST:

    Classification of supplies - supply of goods or supply of services? - software licenses supplied by the applicant - the goods which are supplied by the applicant cannot be used without the aid of the computer - the Explanatory Notes to the Scheme of Classification of Services stipulates that the SAC 997331 covers Licensing services for the right to use computer software and databases but excludes the services of limited end-user licence as part of packaged software from the said SAC. Hence the supply made by the applicant is covered under "Supply of goods" and the said supply is covered under tariff heading 8523. - AAR

  • Income Tax:

    Refund of excess Tax - Rectification of mistake u/s 154 - settlement of case under the Vivad se Vishwas scheme under VSV Act, 2020 - u/s 237 under Chapter XIX of the Income Tax Act, there is no limitation prescribed for granting refund of the amount paid in excess as tax. - HC

  • Income Tax:

    Transfer of case u/s 127 - no show-cause notice came to be issued to the writ-applicant assigning reasons for transfer - whether the exercise of power under Section 127(2) is administrative in nature or it is quasi-judicial - We are not impressed with the submission canvassed on behalf of the Revenue that Section 127 excludes, by necessary implication, an opportunity of hearing when transfer is on account of the administrative exigency or convenience. - HC

  • Income Tax:

    Income accrued in India - Amount received for providing ‘Support Service’ treated as Fees for Included Services (FIS) - Merely because the training program was of boarding nature, that cannot change the nature of program to fall in the purview of services, for which consideration should be FIS. Rather the consideration was in the form of reimbursement of expenses on actual basis of constituents like travelling, food, boarding and lodging of consultants employed by Indian Counterpart. The cost of training recovered from the Indian Associate was due to these expenditures on the trainees. - AT

  • Income Tax:

    TDS u/s 194C or 194I - default u/s. 201(1) - short deduction of TDS - Payment of common area maintenance charges (CAM charges) - the payments made towards CAM charges are in the nature of contractual is payments that are made for availing maintenance services and they are not paid for use of any premises/equipment. Therefore the cam charges would be subjected to deduction of tax at source u/s. 194C of the Act at 2%. - AT

  • Income Tax:

    Allowable deduction u/s 37(1) - disallowance of reinsurance premium payment made to non-resident reinsurers who do not have a place of business / branch in India - the reinsurance premium paid by the assessee to foreign reinsurers outside India who do not have any business presence in India, was permitted in law and was permitted activity under the insurance Act 1938 and IRDA - it could be safely concluded that the payment of reinsurance premium by the assessee to foreign reinsurers could not be construed as payment made in violation of provisions of Insurance Act and IRDA regulations. - AT

  • Income Tax:

    Penalty proceedings u/s 271B - requirement of getting tax audit u/s 44AB - Determination of turnover - non-delivery based trading of shares and securities - in such case the turnover has to be determined on the basis of the net of sales and purchase of shares - Further the default committed by the assessee is of technical nature and the AO was not handicapped for want of tax audit report while making assessment under appeal. - there is no requirement for getting the accounts audited u/s 44AB - No penalty - AT

  • Income Tax:

    Relief u/s. 89 - ex-gratia amount of compensation to each of the 275 employees provided they accept the closure and termination of their services without agitating the issue or obstructing the development of the entire Mill land - The basis of compensation calculated by the company and the company also treated the one-time compensation as a salary paid in advance and deducted the TDS on the same, clearly indicates that the compensation received by the assessee is only salary received in advance not as termination compensation even though this was paid in lumpsum as ex-gratia in one go. - AO directed to allow the claim of the assessee u/s. 89 - AT

  • Income Tax:

    Allowability of deduction u/s 80-IA(4)(iii) - Additions against bogus purchases and bogus expenditure - the enhanced profit of the industrial park, is the income computed in accordance with the provisions of this Act. Hence such enhanced profit is deemed to be the income derived from the business of industrial park and eligible for deduction. - AT

  • Customs:

    Release of vessel - Classification of imported goods - GTL Light Paraffin - The goods have already been released of a bond executed by the importer. - At least, the vessel needs to be released on the writ applicant furnishing an appropriate undertaking to the Commissioner (Customs) to the effect that the writ applicants shall cooperate in the inquiry till the last. - HC

  • Customs:

    Jurisdiction - power of DRI to issue SCN - Proper Officer or not - The amendment in the act has been brought on the statute and whether it can have effect retrospectively when in case of all these matters, show cause notices have been issued prior to the amendment having come into force is not the question to be deliberated upon as argued by both the sides. - HC

  • Customs:

    Classification of imported goods - Aluminium Composite Material - Aluminium Composite Panels - classifiable under Chapter Tariff Heading (CTH) 7606 1200 or under CTH 7610 9030? - on perusal of literatures produced by the appellants, there are no doubt that the impugned goods are rightly classifiable under CTH 7606 1200. - AT

  • DGFT:

    Extension of Date for Mandatory electronic filing of Non-Preferential Certificate of Origin (CoO) through the Common Digital Platform to 1st August 2022 - issuing agencies who do not use the Online System for issue of non-preferential CoOs after 1st August 2022 will invite penal action and can be subject to 'de-listing' as an authorised agency.

  • Indian Laws:

    Assignment of debt to Asset Reconstruction Company - whether Power of Attorney is chargeable to stamp duty or not - In all taxing Statutes, there are taxing provisions and machinery provisions. Once a single instrument has been charged under a correct charging provision of the Statute, namely Article 20(a), the Revenue cannot split the instrument into two, because of the reduction in the stamp duty facilitated by a notification of the Government issued under Section 9(a). In other words after having accepted the deed of assignment as an instrument chargeable to duty as a conveyance under Article 20(a) and after having collected the duty payable on the same, it is not open to the respondent to subject the same instrument to duty once again under Article 45(f), merely because the appellant had the benefit of the notifications under Section 9(a). - SC

  • Indian Laws:

    Dishonor of Cheque - Seeking recovery of the interim compensation awarded to the petitioner - If in case of death of an accused the compensation awarded under Section 138 of the Negotiable Instruments Act, 1881 can be recovered from the estate of a deceased accused, but an interim compensation awarded under Section 143A of the said Act cannot be recovered from the estate of a deceased accused, who died before the conclusion of the trial. - HC

  • Indian Laws:

    Dishonor of Cheque - Payment was stopped by the drawer - According to him, neither he mentioned the date nor that he has given any intimation to bank to stop payment he has not lodged any complaint to the court or to the Police in this regard, even he has not mentioned which number cheques are lost. So this defence appears to be only for defence sake and there is no merit in it. On the other hand, it is evident that both petitioner and respondent were business persons - There is nothing in defence evidence to show that the complainant case is not true. The defence evidence will not help the accused in any way. - HC

  • IBC:

    Workmen's dues - company under liquidation - discharge of dues out of liquidation proceeds - The workmen's dues, as adjudicated by the Controlling Authority under the Minimum Wages Act, 1948, has to be distributed from the liquidation assets in the order of priority as provided under Section 53 of the Code. Ext.P3 order is not in breach of the provisions of the Code - The liquidation process and the distribution of assets are not over and there is no bar under Section 38 of the Code to receive the claim under Ext.P3. Section 38 does not curtail the power of the Liquidator to distribute the dues out of liquidation process till the distribution of assets. - HC

  • VAT:

    Rejection of application for refund of mandatory statutory obligation pre-deposit with interest - Excess amount then as accepted in the Resolution plant during CIRP proceedings under IBC - Once the tax liability raised by the Department had been fixed by effect of acceptance of Resolution Plan, manifestly, the Department could not hold on to any payment made by the assessee in excess of what has been approved under the Resolution Plan - HC


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2022 (4) TMI 1292
  • 2022 (4) TMI 1291
  • 2022 (4) TMI 1290
  • 2022 (4) TMI 1296
  • 2022 (4) TMI 1295
  • 2022 (4) TMI 1294
  • 2022 (4) TMI 1293
  • 2022 (4) TMI 1289
  • 2022 (4) TMI 1288
  • Income Tax

  • 2022 (4) TMI 1282
  • 2022 (4) TMI 1281
  • 2022 (4) TMI 1280
  • 2022 (4) TMI 1279
  • 2022 (4) TMI 1278
  • 2022 (4) TMI 1277
  • 2022 (4) TMI 1287
  • 2022 (4) TMI 1276
  • 2022 (4) TMI 1275
  • 2022 (4) TMI 1274
  • 2022 (4) TMI 1273
  • 2022 (4) TMI 1272
  • 2022 (4) TMI 1271
  • 2022 (4) TMI 1270
  • 2022 (4) TMI 1269
  • 2022 (4) TMI 1268
  • 2022 (4) TMI 1286
  • 2022 (4) TMI 1285
  • 2022 (4) TMI 1284
  • 2022 (4) TMI 1267
  • 2022 (4) TMI 1266
  • 2022 (4) TMI 1265
  • 2022 (4) TMI 1264
  • 2022 (4) TMI 1263
  • 2022 (4) TMI 1297
  • 2022 (4) TMI 1283
  • 2022 (4) TMI 1262
  • Customs

  • 2022 (4) TMI 1258
  • 2022 (4) TMI 1261
  • 2022 (4) TMI 1260
  • 2022 (4) TMI 1259
  • Insolvency & Bankruptcy

  • 2022 (4) TMI 1256
  • 2022 (4) TMI 1255
  • 2022 (4) TMI 1257
  • Service Tax

  • 2022 (4) TMI 1254
  • 2022 (4) TMI 1253
  • CST, VAT & Sales Tax

  • 2022 (4) TMI 1252
  • 2022 (4) TMI 1251
  • 2022 (4) TMI 1250
  • 2022 (4) TMI 1249
  • Indian Laws

  • 2022 (4) TMI 1248
  • 2022 (4) TMI 1247
  • 2022 (4) TMI 1246
  • 2022 (4) TMI 1245
  • 2022 (4) TMI 1244
 

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