TMI Tax Updates - e-Newsletter
July 24, 2017
Case Laws in this Newsletter:
Income Tax
TMI SMS
TMI Short Notes
GST:
Summary: Under Section 10 of the Central Goods and Services Tax Act, 2017, a person opting for the composition levy must pay tax at a specified rate on both taxable and exempted goods, as "turnover in State" includes exempt supplies. However, there is ambiguity regarding whether exempt goods fall under "goods not leviable to tax," which would disqualify a person from the composition scheme. Some interpretations suggest that exempt supplies do not disqualify eligibility, indicating a need for legislative clarification to avoid excluding small traders who deal in both taxable and exempt goods.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, the composition scheme is intended for small manufacturers or traders. Eligibility for this scheme is determined by the turnover of the previous year. If a registered person engaged in inter-state supplies in the previous year, they are ineligible for the composition scheme in the current year, even if their turnover remains below the threshold limit. This interpretation raises questions about whether conditions in Section 10(2) must also be met for the previous financial year, indicating a need for further clarification.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, a registered person can opt for the composition scheme if their aggregate turnover in the previous financial year did not exceed INR 75 lakh or INR 50 lakh, depending on the case. Eligibility is determined annually based on the prior year's turnover. If the turnover was below the threshold, the scheme can be availed in the current year. Conversely, if it exceeded the limit, the scheme cannot be used. Turnover is calculated on an all-India basis, including all taxable and exempt supplies, exports, and inter-State supplies, but excluding GST and cess.
GST:
Summary: The validity of the composition levy under the Central Goods and Services Tax (CGST) Rules, 2017, is contingent upon compliance with conditions specified in Section 10 of the CGST Act, 2017, and Rules 3 to 5 of the CGST Rules, 2017. As long as these conditions are met, there is no requirement for annual intimation to avail the benefits of the composition scheme.
GST:
Summary: The option to pay tax under the composition levy cannot be exercised at any time during the year. According to Rule 3 of the Central Goods and Services Tax Rules, 2017, the taxpayer must submit an electronic intimation in FORM GST CMP-02 before the start of the relevant financial year.
GST:
Summary: A person paying tax under the composition levy can voluntarily withdraw from the scheme by submitting a signed or verified application using FORM GST CMP-04. Upon withdrawal, the individual must electronically submit a statement in FORM GST ITC-01, detailing the stock of inputs and inputs in semi-finished or finished goods held on the withdrawal date. This statement must be furnished within thirty days of the withdrawal.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, an importer of goods or services can opt for the composition scheme, as there is no restriction on importers availing this scheme. However, they must pay Integrated Goods and Services Tax (IGST) upon import, without eligibility for input tax credit. While service providers are generally not eligible for the composition scheme, importing services for business or in-house use does not classify one as a service provider, allowing them to still benefit from the composition scheme.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, specifically Section 10 regarding the composition levy, exporters cannot opt for the composition scheme. This is because supplies made outside India are considered inter-State supplies, and the composition scheme restricts taxpayers from making inter-State outward supplies of goods. Therefore, exporters must adhere to the standard GST regulations rather than the simplified tax payment option available under the composition scheme.
GST:
Summary: A person registered under the composition scheme of the Central Goods and Services Tax (CGST) Act, 2017, is restricted from making inter-State outward supplies of goods. Supplies from a domestic tariff area to a Special Economic Zone (SEZ) are classified as inter-State supplies. Therefore, a taxpayer under the composition scheme is not permitted to supply goods to an SEZ, as it would constitute an inter-State transaction, which is prohibited under the composition levy rules.
GST:
Summary: A person with a turnover below Rs. 75 lakhs or Rs. 50 lakhs as of June 30, 2017, cannot avail of the GST Composition Scheme if they hold stock purchased via C form, F form, or through interstate or import transactions. According to Rule 5 of the Central Goods and Services Tax Rules, 2017, eligibility for the scheme requires that goods in stock on July 1, 2017, must not have been acquired through interstate trade, imports, or from branches, agents, or principals located outside the state.
GST:
Summary: A person benefiting from the composition scheme under GST cannot avail the same benefits as a casual dealer or non-resident taxable person in another state. According to Rule 5 of the Central Goods and Services Tax Rules, 2017, the provisions clearly state that individuals classified as casual taxable persons or non-resident taxable persons are excluded from the composition scheme. Therefore, such individuals must adhere to the standard GST regulations applicable to their status and cannot opt for the simplified tax structure provided by the composition scheme.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, certain categories are ineligible for the composition scheme. These include suppliers of services (except restaurant services), suppliers of non-taxable goods under the CGST/SGST/UTGST Acts, inter-State suppliers, those supplying via e-commerce operators, and manufacturers of specified goods. Specifically, manufacturers of ice cream, pan masala, and tobacco products are excluded from the scheme as per Notification No. 08/2017. Additional restrictions are outlined in Rule 5 of the Central Goods and Services Tax Rules, 2017.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, if a person availing the composition scheme exceeds the turnover threshold of Rs. 75 Lakhs (or Rs. 50 Lakhs in hilly areas) during the financial year, the option to pay tax under the composition scheme lapses immediately from the day the threshold is crossed. The individual must then pay tax under the regular provisions and issue tax invoices for all taxable supplies. Additionally, they must file a withdrawal intimation from the composition scheme using FORM GST CMP-04 within seven days of exceeding the turnover limit.
GST:
Summary: A supplier of goods through an electronic commerce operator may be eligible to opt for the composition scheme under the Central Goods and Services Tax Act, 2017, as long as the provisions for tax collection at source (TCS) under Section 52 are not yet effective. Section 10(2)(d) stipulates that eligibility for the composition scheme excludes those supplying goods through operators required to collect TCS. However, since Sections 51 and 52, concerning tax deduction at source (TDS) and TCS, are deferred, suppliers can currently avail themselves of the scheme. A government clarification is recommended to avoid confusion.
GST:
Summary: Under the Central Goods and Services Tax Act, 2017, a registered person opting for the composition scheme cannot make inter-state outward supplies of goods. If an out-of-state buyer requests a tax invoice, the composite dealer must issue a Bill of Supply instead. This restriction applies regardless of the buyer's registration status. If the place of supply is listed as outside the state, the composition scheme benefits are revoked, and the dealer must pay GST at the normal rate. Rule 6(3) requires a composite dealer intending to withdraw from the scheme to file an application electronically. Non-compliance may result in penalties.
Articles
By: Kishan Barai
Summary: Under the GST regime, no changes have been made to the drawback provisions under the Customs Act 1962, allowing the continuation of the All Industry Rate (AIR) and Brand Rate options. Section 74 refunds customs duties and taxes on re-exported goods, while Section 75 neutralizes duties on imported materials used in exports. During a three-month transition from July 1, 2017, exporters can claim higher duty drawbacks under certain conditions. Exporters can choose between claiming customs duty drawbacks or GST refunds. Export procedures have been updated to include GST-related information, and electronic shipping bill formats have been modified to facilitate seamless processing of export benefits.
By: Kishan Barai
Summary: The article discusses the calculation of import duties under the Goods and Services Tax (GST) regime in India, focusing on various scenarios involving Basic Customs Duty (BCD), Integrated GST (IGST), Countervailing Duty (CVD), education cess, higher education cess, and compensation cess. It outlines four cases: products attracting IGST but not CVD, products attracting IGST and compensation cess, products attracting both CVD and IGST, and products attracting CVD, IGST, and compensation cess. It also mentions that Anti-Dumping Duty and Safeguard Duty calculations follow specific notifications and that these duties are included in the IGST and compensation cess calculations.
News
Summary: The National Trade Facilitation Action Plan (NTFAP) aims to align India's border procedures with international standards to enhance the Ease of Doing Business, as stated by the Union Finance Minister. The plan supports compliance with the Trade Facilitation Agreement (TFA) and extends beyond it to boost trade facilitation. During a meeting with the Secretary General of the World Customs Organization, the Finance Minister discussed customs and trade facilitation. The Secretary General praised India's tax reforms, including the GST implementation. The visit included a workshop on the TFA, emphasizing global best practices and India's initiatives in trade facilitation.
Summary: The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens, offering an assured annual return of 8% payable monthly, effective at 8.30% per annum for 10 years. Launched formally by the Finance Minister, the scheme aims to provide stable returns amid declining global interest rates. Available from May 2017 to May 2018, it allows loans up to 75% of the purchase price and premature exit in case of critical illness. The scheme has seen significant uptake, with over 58,000 policies sold. The government subsidizes any shortfall in interest, and the scheme is exempt from service tax or GST.
Summary: NITI Aayog, in collaboration with Deutsche Gesellschaft f"ur Internationale Zusammenarbeit (GIZ) GmbH, held a meeting to discuss a Strategy Paper on Resource Efficiency, which aligns with Sustainable Development Goals (SDGs) related to sustainable consumption and production. The meeting, chaired by a senior NITI Aayog official, included stakeholders from various government departments, international agencies, and industry associations like FICCI and CII. The participants reviewed public comments on the strategy and agreed that the finalized paper could guide future resource efficiency initiatives in India, complementing existing programs like Make in India and Smart Cities.
Summary: There are 28 Centrally Sponsored Schemes in the country, all with sunset dates except the Mahatma Gandhi National Rural Employment Guarantee Scheme. As per the 2016 Budget Speech, schemes should have sunset dates and undergo outcome reviews. Previously, schemes were revisited at the end of each Five Year Plan. Post-Twelfth Five Year Plan, schemes' timelines align with Finance Commission Cycles, starting with the Fourteenth Finance Commission period ending March 2020. Ministries must conduct outcome reviews and resubmit schemes for approval unless already aligned with the Finance Commission Cycles, as stated by a government official in a Lok Sabha response.
Summary: Between November 9, 2016, and January 10, 2017, the Income Tax Department conducted over 1,100 searches and issued more than 5,100 verification notices, uncovering undisclosed income exceeding Rs. 5,400 crore. Valuables worth over Rs. 610 crore, including Rs. 513 crore in cash, were seized. Operation Clean Money, launched on January 31, 2017, identified 18 lakh individuals with suspicious cash transactions, leading to over 9.27 lakh responses detailing Rs. 2.89 lakh crore in deposits. Advanced analytics identified 5.56 lakh new cases for verification. Additionally, 1,57,818 fake currency notes worth Rs. 11.24 crore were reported between November 2016 and July 2017.
Notifications
GST - States
1.
FD 48 CSL 2017 - dated
12-7-2017
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Karnataka SGST
CORRIGENDUM - Notification No. FD 48 CSL 2017 (01/2017) dated 29th June, 2017.
Summary: The corrigendum to Notification No. FD 48 CSL 2017, dated 29th June 2017, published by the Karnataka Finance Secretariat, includes several amendments. These changes involve corrections to product descriptions and tariff headings in various schedules of the Karnataka SGST. Notable amendments include the rewording of coffee descriptions, the addition of new entries for bran and citrus fruits, and adjustments to tariff figures for certain products. The corrigendum also specifies changes in the description and categorization of dried leguminous vegetables and the omission of certain GST proposals. These amendments are issued under the authority of the Karnataka Finance Department.
2.
FD 47 CSL 2017. - dated
5-7-2017
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Karnataka SGST
Notification specifying the document to be carried for movement of Goods.
Summary: The notification issued by the Karnataka Finance Secretariat mandates that for the movement of goods within the state, registered persons must carry an 'e-way bill' for consignments exceeding INR 50,000. This applies to a wide range of goods, including agricultural products, industrial materials, and consumer goods. The e-way bill details must be entered on designated websites before the movement of goods. Additional documents like a tax invoice or delivery challan are required during transportation. The notification outlines the procedure for obtaining and using e-way bills, including the use of mobile services for generating 'm-way bills.' Non-compliance may lead to penalties under the Karnataka Goods and Services Tax Act, 2017.
3.
04-A/2017 - dated
5-7-2017
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Karnataka SGST
Karnataka Goods and Services Tax (Amendment) Rules, 2017.
Summary: The Karnataka Goods and Services Tax (Amendment) Rules, 2017, effective from July 1, 2017, introduce several changes to the existing GST rules. Key amendments include modifications to rules 44 and 96, the introduction of rule 96-A for refund of integrated tax on exports, and updates to rules regarding inspection, search, seizure, and recovery processes. New chapters on demands, recovery, and offences are added, detailing procedures for handling unpaid taxes, auctioning seized goods, and compounding offences. The notification also updates various GST forms to reflect these amendments, ensuring compliance with the revised regulatory framework.
4.
17/2017 - dated
29-6-2017
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Karnataka SGST
Intra-State supply of Services by Electronic Commerce Operators.
Summary: The Government of Karnataka has issued a notification under the Karnataka Goods and Services Tax Act, 2017, specifying that electronic commerce operators are responsible for paying tax on certain intra-State services. These services include passenger transportation via radio-taxi, motor cab, maxi cab, and motorcycle, as well as accommodation services in hotels, inns, guest houses, clubs, and campsites. However, this does not apply if the service provider is required to register under section 22(1) of the Act. The notification is effective from July 1, 2017.
5.
16/2017 - dated
29-6-2017
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Karnataka SGST
Specified International organisation.
Summary: The Government of Karnataka, under section 55 of the Karnataka Goods and Services Tax Act, 2017, specifies that the United Nations, certain international organizations, foreign diplomatic missions, and consular posts in India can claim refunds on State tax paid for goods or services. The entitlement is contingent on certification that these goods or services are for official use. Diplomatic missions must provide undertakings or certificates for service or goods use, ensuring no resale within three years. Refunds are void if the Ministry of External Affairs withdraws certification. This notification is effective from July 1, 2017.
6.
15/2017 - dated
29-6-2017
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Karnataka SGST
Restriction of refund of un-utilised ITC u/s.54(3) of the KGST Act, 2017 in case of services of certain category.
Summary: The Government of Karnataka, under the Karnataka Goods and Services Tax Act, 2017, has issued a notification restricting the refund of unutilised input tax credit for certain service categories. This restriction applies to services specified in sub-item (b) of item 5 of Schedule II of the Act. The notification, identified as 15/2017, is effective from July 1, 2017, and was issued by the Finance Secretariat on the recommendation of the Council.
7.
14/2017 - dated
29-6-2017
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Karnataka SGST
Services by way of any activity in relation to a function entrusted to a Panchayat under article 243G of the constitution.
Summary: The Government of Karnataka, under the Karnataka Goods and Services Tax Act, 2017, issued a notification stating that activities or transactions carried out by the Central or State Government, or any local authority, in their capacity as public authorities, will not be considered as a supply of goods or services. This applies specifically to services related to functions assigned to a Panchayat under Article 243G of the Constitution. This notification is effective from July 1, 2017, as per the order issued by the Finance Department.
8.
13/2017 - dated
29-6-2017
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Karnataka SGST
Reverse charge related notification in respect of services.
Summary: The Government of Karnataka, under the Karnataka Goods and Services Tax Act, 2017, mandates that recipients of certain services must pay state tax on a reverse charge basis. This applies to services such as goods transportation by road, legal representation by advocates, arbitral tribunal services, sponsorships, government services excluding specific exceptions, director services to companies, insurance agent services, recovery agent services, and copyright transfers by authors and artists. The notification specifies the categories of services, suppliers, and recipients involved. It clarifies definitions and applies from July 1, 2017.
9.
ERTS(T) 65/2017/024 - dated
29-6-2017
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Meghalaya SGST
Specifies the following documents to be carried by a person in charge of a conveyance carrying any consignment of goods taxable under the Act.
Summary: The Government of Meghalaya mandates that individuals in charge of conveyances carrying taxable goods under the Meghalaya Goods and Services Tax Act, 2017, must carry specific documents until an e-waybill system is established. Required documents include various forms under the Meghalaya Value Added Tax Act and a tax invoice or invoice reference number under GST. Registered dealers from the repealed MVAT Act can apply for Forms 37 and 40 online, while others must submit manual applications to the State tax officer. This notification is effective from July 1, 2017.
10.
ERTS(T) 65/2017/014 - dated
29-6-2017
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Meghalaya SGST
Neither as a supply of goods nor a supply of service.
Summary: The Government of Meghalaya, through its Excise, Registration, Taxation & Stamps Department, issued a notification under the Meghalaya Goods and Services Tax Act, 2017. It declares that activities or transactions conducted by the Central or State Government or local authorities, in their capacity as public authorities, related to functions entrusted to a Panchayat under Article 243G of the Constitution, are neither considered a supply of goods nor a supply of services. This notification is effective from July 1, 2017.
11.
ERTS(T) 65/2017/012 - dated
29-6-2017
-
Meghalaya SGST
Exempts the intra-State supply of services State tax leviable thereon under sub-section (1) of section 9.
Summary: The Government of Meghalaya, exercising its powers under the Meghalaya Goods and Services Tax Act 2017, exempts certain intra-State service supplies from the state tax levied under section 9(1) of the Act. This exemption applies to services specified in a table within the notification, reducing the tax to an amount calculated at a specified rate, subject to conditions outlined in the notification. The decision, made in public interest and based on the Council's recommendations, was formalized in Notification No. ERTS(T) 65/2017/12, dated June 29, 2017, by the Excise, Registration, Taxation & Stamps Department.
12.
ERTS(T) 65/2017/011 - dated
29-6-2017
-
Meghalaya SGST
Notifies the State tax.
Summary: The Government of Meghalaya, through its Excise, Registration, Taxation & Stamps Department, issued a notification on June 29, 2017, under the Meghalaya Goods and Services Tax Act, 2017. This notification, identified as ERTS(T) 65/2017/11, exercises powers granted by specific sections of the Act to levy State tax on intra-State supply of services. The tax applies to services described in a specified table, with classifications and rates outlined in corresponding columns. The imposition of this tax is based on recommendations from the Council and deemed necessary in the public interest.
13.
ERTS(T) 65/2017/005 - dated
29-6-2017
-
Meghalaya SGST
Notifies the goods no refund of unutilised input tax credit on account of rate of tax on inputs
Summary: The Government of Meghalaya, under the Meghalaya Goods and Services Tax Act, 2017, has issued a notification specifying goods for which no refund of unutilized input tax credit will be allowed. This applies when the input tax rate is higher than the output tax rate, excluding nil-rated or fully exempt supplies. The goods include various woven fabrics, knitted or crocheted fabrics, and railway-related items such as locomotives, coaches, and track equipment. This notification takes effect from July 1, 2017, and aligns with the Customs Tariff Act, 1975 for interpretation.
14.
ERTS(T) 65/2017/002 - dated
29-6-2017
-
Meghalaya SGST
Council, exempts intra-State supplies of goods, Schedule appended to this notification,
Summary: The Government of Meghalaya, under the Meghalaya Goods and Services Tax Act, 2017, has issued a notification exempting intra-State supplies of certain goods from state tax. This exemption applies to goods specified in the schedule attached to the notification, based on their tariff item, sub-heading, heading, or chapter. The decision, effective from June 29, 2017, follows recommendations from the Council and is deemed necessary for public interest. The exemption removes the state tax levied under section 9 of the Meghalaya Goods and Services Tax Act, 2017, for these specified goods.
Income Tax
15.
66/2017 - dated
20-7-2017
-
IT
Section 10(46) of the Income-tax Act, 1961 Central Government notifies Haryana Electricity Regulatory Commission, a commission constituted under the Haryana Electricity Reform Act, 1997, in respect of the following specified income arising to that body
Summary: The Central Government, under Section 10(46) of the Income-tax Act, 1961, notifies the Haryana Electricity Regulatory Commission for specified income exemptions. The exempted income includes grants and loans from the Government of Haryana, fees under the Electricity Act, 2003, and interest on these funds. Conditions for this exemption require the Commission not to engage in commercial activities, maintain the nature of income, and file income returns as per legal requirements. This notification applies to the financial years from 2017-2018 to 2021-2022.
Circulars / Instructions / Orders
GST - States
1.
06/2017-18 - dated
13-7-2017
Submission of Bond/Letter of Undertaking by the Exporter in respect of Exports without payment of Integrated Tax under the IGST Act.
Summary: The circular from the Karnataka Department of Commercial Taxes addresses the procedure for exporters to submit a Bond or Letter of Undertaking (LUT) for exports without paying Integrated Tax under the IGST Act. It outlines that exporters can claim refunds on zero-rated supplies by furnishing a bond or LUT. The document specifies the conditions under which these can be submitted and clarifies that the jurisdictional Assistant Commissioner will accept these documents until an administrative mechanism is in place. The circular aims to ease procedural difficulties faced by exporters and assures that steps are being taken to facilitate them.
Highlights / Catch Notes
GST
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Importers Excluded from GST Composition Scheme; Must Follow Regular Tax Procedures for Compliance.
Notes : Can an Importer of goods or services opt to pay tax under composition scheme under GST?
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Exporters Ineligible for GST Composition Scheme; Must Follow Regular GST Rules and File Returns for Input Tax Credits.
Notes : Can an exporter of goods opt to pay tax under composition scheme under GST?
-
Composition Scheme: No GST at Composite Rate on Exempted Goods u/s 10 for Small Taxpayers.
Notes : Whether a person who is opting for Composition u/s 10 of the GST, is required to pay GST at composite rate on Exempted Goods also?
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Eligible for GST Composition Scheme with Turnover Below Rs. 75 Lakhs and Specific Stock Conditions.
Notes : Whether a person having turnover much below ₹ 75 Lakhs (Rs. 50 lakhs as the case may be) as on 30-6-2017, and having stock of goods purchased against C form, F form etc. or import goods or inter-state purchases, is eligible for availing the benefit of Composition Scheme under GST?
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Manufacturers of Ice Cream, Pan Masala, Tobacco Excluded from GST Composition Scheme Due to Higher Tax and Health Concerns.
Notes : GST - Who are not eligible to opt for composition scheme? Whether certain manufacturers (like Ice cream, Pan masala, Tobacco etc.) are excluded from opting composition scheme? if Yes, who are they?
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Composite Dealers Can Omit Place of Supply on Invoices for Out-of-State Customers.
Notes : GST - if a person from outside the sate comes to the shop of the composite dealer and asks for Invoice, the composite dealer may gently refuse to mention the place of supply as outside his state.
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Suppliers using e-commerce platforms may qualify for GST composition scheme before Section 52 provisions apply.
Notes : GST - a supplier of goods supplies through electronic commerce operator may be eligible to avail composition scheme before the date on which the provisions of Section 52 are made operative.
Income Tax
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ITAT mistakenly ruled AY 2008-09 assessment as pending; CBDT circular states it should be final with no scrutiny.
Case-Laws - HC : Validity of assessment - pending assessment on the date of the search - ITAT was in error in holding that the assessment for AY 2008-09 should be treated as ‘pending’ whereas in terms of the CBDT circular it should be treated as final in respect of which no scrutiny are to be started - HC
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High Court Expands Amnesty Scheme: Benefits Now Include Penalties Not Imposed with Assessment Orders, Rejecting Department's Argument.
Case-Laws - HC : Benefit of Amnesty scheme in respect of penalty only - HC rejects the following contention of the department that, inasmuch as there is a reference to a payment of tax and interest payable on the total income finally determined, along with 25% of the minimum penalty leviable, the Scheme must be intended to cover only such penalties as have been imposed on an assessee along with the assessment order.
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Assessee's Rig Operations in India Create Permanent Establishment for Taxation Due to 183+ Days of Activity.
Case-Laws - AT : PE in India - assessee had deployed the rig in connection with the exploration activity from 26.04.2010. Hence, since service and the operation continued till the end of the financial year, the number of days of the deployment of rig was more than 183 days. Hence assessee had a PE in India.
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Discrepancy in Stock Reports: No Additions Made to Income Tax Assessment Despite Differences Noted in Bank Submissions vs. Books.
Case-Laws - AT : Addition on account of excess stock - difference in stock statement submitted with bank and as per books of accounts - No additions
Customs
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Petitioner Failed to Remit Cost Recovery Charges Since 2009 Without Exemption; Obligated to Continue Payments Until Granted by CBEC.
Case-Laws - HC : Arrears of cost recovery charges - the petitioner on their own volition stopped remitting the charges from the period of January, 2009. Such conduct of the petitioner is not appreciable, as unless and until exemption is granted the petitioner has to pay the said amount without prejudice their rights to seek for exemption from the CBEC. - HC
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Custom Valuation Rules Address Value Dispute for Mixed Plain Plastic Film Rolls of Odd Sizes.
Case-Laws - AT : Enhancement of declared value - “mixed plain plastic film rolls” of cuts/odd sizes - The Custom Valuation Rules will operate only when there is a dispute or a doubt on such transaction value.
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Customs Rejects Assessee's NOC Request; Delay by Authorities Should Not Impact Entitlement to Benefits.
Case-Laws - AT : EOU - rejection of the assessee's request for issuance of NOC by the Customs - the delay on the part of the authorities cannot act prejudice to the assessee's interest, which cannot be denied the benefits, if otherwise available.
State GST
-
Karnataka Exporters Can Use Bond or Letter of Undertaking Regardless of Provisional GST ID Status.
Circulars : Karnataka GST - it is hereby informed to the exporters in the State that the Bond or the letter of undertaking in place of Bond in all the cases (irrespective of the fact that the provisional ID for the GST is issued by the Commercial Tax Department), will be accepted.
Service Tax
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Appellants Settle Cenvat Credit Dispute by Paying Full Amount, Interest, and Penalty u/s 73(2) Proviso.
Case-Laws - AT : Penalty - Since the appellants have paid the entire amount of Cenvat Credit along with interest and 25% of penalty within one month of the issue of show-cause notice, all proceedings shall be deemed to be concluded in respect of that amount in terms of the proviso to sub section (2) of section 73
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Directors Not Personally Liable for Penalties u/s 77(2) of Finance Act, 1994; Applies to Service Providers Only.
Case-Laws - AT : Penalty u/s 77(2) of the Finance Act, 1994 - there is no provision for imposition of personal penalty on the director under the Finance Act. - All the liabilities/ responsibilities are of the service provider.
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Appellant Denied CENVAT Credit for Structural Steel in Unipole Fabrication under Advertising Agency Services Category.
Case-Laws - AT : CENVAT credit - to discharges service tax liability under the category of Advertising Agency Services - the appellant is not eligible to avail the CENVAT credit of Central Excise duty on structural steel used for fabrication and erection of unipoles.
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Appellant Denied CENVAT Credit for Services Obligated Under ESI Act; Legislation Defines Eligible "Input Services" for Credit.
Case-Laws - AT : CENVAT credit - input services - the fact that the appellant is obliged to provide such services under the Employees State Insurance Act, 1948 can also not to be held as ground to allow the credit, in as much as legislation is within its right to amend the definition of "Input Services" and to include or exclude any of the services from its ambit
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Exemption Notification No. 12/2003 excludes goods' value if sold separately, defined by Central Excise Act, not Article 366.
Case-Laws - AT : The value of other goods and material, if sold separately would be excluded under exemption N/N. 12/2003 and the term 'sold' appearing thereunder has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of deemed sale under Article 366(29A)(b) of the Constitution.
Central Excise
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CENVAT Credit Allowed: Waste Batteries Not Exempt from Duty, Rule 6 Restrictions Do Not Apply.
Case-Laws - AT : CENVAT credit - Since the waste batteries are not exempted from payment of duty, the embargo created in Rule 6 of the said rules will not be applicable for payment of amount/ reversal of cenvat credit in the generation of the waste batteries.
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Austria's "Seal Jet" name registration irrelevant for SSI exemption; goods can't display another entity's brand name.
Case-Laws - AT : SSI exemption - At the most it can be said that Economos, Austria have not registered the name "Seal Jet" but that does not make any difference, because notification prescribed that in order to avail exemption goods should not bear the brand name of another person whether it is registered or otherwise
VAT
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High Court Upholds Audit Selection Method u/s 43 of WB VAT Act, Aligns with Natural Justice Principles.
Case-Laws - HC : Principles of natural justice - method of selection for audit under Section 43 of the West Bengal Value Added Tax Act, 2003 Section 43AB is more akin to Section 142(2A) of the Income Tax Act, 1961 - No relief to the assessee - HC
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Court Rules Against Denying C Form for Vehicle Purchases Due to Unpaid Self-Assessed VAT Tax.
Case-Laws - HC : Inter-State purchases of vehicles - C-Form - The action of the respondents in not allowing the petitioner to generate C form solely on the ground that the petitioner had not paid the self assessed tax for the relevant period under the VAT Act is illegal. - HC
Case Laws:
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Income Tax
-
2018 (7) TMI 2360
Addition u/s 68 - identity, genuineness and creditworthiness of the investors - Held that:- The exercise for determining the identity, genuineness and creditworthiness of the investors of the share capital of the Assessee as well as lenders was undertaken in an elaborate manner by the CIT(A). Comments from the AO were sought. Detailed reasons have been given by the CIT(A) to come to the conclusion that the Assessee had discharged its onus of establishing the identity, genuineness and creditworthiness of both the investors as well as the lenders. This has been concurred with by the ITAT in the impugned order which is again an extremely detailed one. The concurrent factual findings of both the CIT(A) and ITAT have not been shown to be perverse by the Appellant. This is virtually the fourth stage of the litigation. - Decided in favour of assessee
9911796707
