Tax
DGFT Circular Providing 4% of SAD Refund Published On The Official Website Amounts To Public Notice: Kerala High Court
The Kerala High Court has held that a circular issued by the Directorate General Of Foreign Trade (DGFT) providing 4% of the Special Additional Duty (SAD) refund published on the official website amounts to public notice.The bench of Justice Dinesh Kumar Singh noted that when the Circular itself provides that if any exporter claims a refund of 4% SAD, the amount should have been paid in cash....
Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer
The Calcutta High Court has held that before directing the recipient of service or buyer to reverse the input tax credit and remit it to the government, the department ought to have taken action against the selling dealer.The bench of Chief Justice T.S. Sivagnanam and Justice Hiranmay Bhattacharyya has observed that the issuance of a demand notice on the recipient of service on account of...
If Refund Is Legitimately Due, Mere Delay Should Not Defeat The Claim For Income Tax Refund: Bombay High Court
The Bombay High Court has quashed the CBDT’s order rejecting the assessee’s application for condonation of the 43-day delay in filing the return of income (ITR)."Refusing to condone the delay can result in a meritorious matter being thrown out at the very threshold and the cause of justice being defeated. The authorities fail to understand that when the delay is condoned, the highest that...
Tax Cases Monthly Round-Up: July 2023
Indirect Tax Supreme Court Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court Case Title: Commissioner of Service Tax-IV vs Prime Focus Ltd. Citation : 2023 LiveLaw (SC) 561 The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate...
Madras High Court Directs FinMin, CBDT To Decide On Exempting Agricultural Cooperative Credit Societies From TDS Deduction
The Madras High Court has directed the Finance Ministry and Central Board of Direct Taxes (CBDT) to take action on exempting primary agricultural cooperative credit societies from TDS deduction on cash withdrawals received from the Central Cooperative Bank for distribution to the beneficiaries.The bench of Justice R. Suresh Kumar has disposed of the writ petitions with a direction that a...
“Cloud Service Fee” Received By Amazon From Customers In India Is Not Taxable As Royalty, FTS, FIS: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that cloud computing services provided by Amazon Web Services cannot be held liable to tax in India as royalty and fee for technical or included services (FTS/FIS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the AWS services provided by Amazon are standardised services that do...
28% GST On Online Gaming: 51st GST Council Recommends Laws To Provide Clarity
The 51st GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman via video conferencing in New Delhi.The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.The GST Council...
ATM Management Service To Banks Are Pure Services, No VAT Payable: Karnataka High Court Quashes Re-assessment
The Karnataka High Court has quashed the re-assessment and held that ATM management services to banks are pure services and will not attract Value Added Tax (VAT).The bench of Justice S.R. Krishna Kumar has observed that the transaction is a pure service transaction, not entailing any transfer of property or effective control of the goods to the recipient. The various terms of the Agreements...
CBIC Waives The Requirement Of Mandatory GST Registration For Person Supplying Goods Through ECOs
The Central Board of Indirect Taxes and Customs (CBIC) has waived the requirement of mandatory registration under section 24(ix) of CGST Act for persons supplying goods through electronic commerce operator (ECOs), subject to certain conditions with effect from 1 October, 2023.The has notified that persons making supplies of goods through an electronic commerce operator who is required to...
CBIC Notifies Annual Return Filing Exemption For Taxpayers Having Aggregate Turnover Upto Rs. 2 Crore in FY 2022-23
The Central Board Of Indirect Taxes and Customs (CBIC) has sought to exempt the registered person whose aggregate turnover in the financial year 2022-23 is up to Rs. 2 crores.“In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017, the Commissioner, on the recommendations of the Council, hereby exempts the registered person...
Pre-Deposits Not A Prerequisite Condition For Filing Appeal In GSTAT: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has notified that no taxpayer will have to pay pre-deposits as a prerequisite condition for filing an appeal in the Goods and Service Tax Appellate Tribunal (GSTAT).The Board has issued the notification pursuant to the directions of the Supreme Court in the case of Union of India v/s Filco Trade Centre Pvt. Ltd.While notifying the...
Un-Fried Extruded Snack Pellets Attracts 5% GST, Ready- To-Eat Extruded Snack Pellets Attracts 18%: CBIC
The Central Board of Indirect Taxes and Customs (CBIC), on the recommendation of the 50th GST Council meet issued a clarification regarding GST rates and classification of certain goods.The board has notified that the supply of un-cooked/un-fried extruded snack pellets, by whatever name called, falling under CTH 1905 will attract 5% GST with effect from 27th July 2023. However, extruded...