Tax
No TDS Deductible On Commission Payment To Non-Resident Agent Overseas: Delhi High Court
The Delhi High Court has held that commission payments to non-resident agents overseas are not chargeable to tax and there is no TDS required to be deducted under Section 195 of the Income Tax Act.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that there is no material on record to even remotely suggest that the non-resident, who had been paid the export commission,...
Patna High Court Deprecates State Tax Authority's Conduct; Orders Restoration Of Refund Application
In a significant ruling, the Patna High Court criticized the State Tax Authority for its handling of a refund application filed by Progressive Constructions Limited and set aside the impugned order. The court, in its judgment, expressed strong disapproval of the Officer's conduct and restored the refund application before the appropriate authority. The case revolved around the...
CGST Rules | Remedy Under Rule 159(5) Against Provisional Attachment Must Be Availed Before Approaching Court: Allahabad High Court
The Allahabad High Court has held that Rule 159(5) of the Central Goods and Service Tax Rules, 2017 which provides remedy to file objections against the attachment of property must be availed before approaching the Court.CGST Department carried out an investigation against 3 persons including the petitioner and her husband for availing and passing on wrong Input Tax Credit by creating...
Subway Charging Royalty And Advertising Expenses Does Not Amounts To Profiteering: CCI
The Competition Commission of India (CCI), while providing relief to Subway, held that charging royalty and advertising expenses does not amount to profiteering.The bench of Ravneet Kaur (Chairperson), Sangeeta Verma (Member), and Bhagwant Singh Bishnoi (Member) observed that the rate of GST in respect of Royalty Services was 12% and the rate of GST on Advertisement Charges was 5% in the case...
Assessee Ought To Have Waited For Relevant Form To Go Live On GST Portal Instead Of Making Illegal Adjustment: Allahabad High Court
The Allahabad High Court has held that the assessee ought to have waited for the relevant form to go live on the GST portal instead of making an illegal adjustment.The bench of Chief Justice Pritinker Diwaker and Justice Ashutosh Srivastava has observed that it was incumbent upon the petitioner to have raised a proper grievance on the GST portal help-desk and ought to have waited for the...
CBDT Exempts IFSC’s Unit From TDS Deduction On Ships Leasing Income
The Central Board of Direct Taxes (CBIC) has exempted the unit of the International Financial Services Centre (IFSC) from TDS Deduction on ship leasing income."Central Government hereby specifies that no deduction of tax shall be made under Section 194-I of the Income-tax Act on payment in the nature of lease rent or supplemental lease rent, as the case may be, made by a person (lessee) to...
CBIC Notifies “Account Aggregator” For Sharing Information Under CGST Act, 2017
The Central Board of Indirect Taxes and Customs (CBIC) has notified the “Account Aggregator” as the systems with which information may be shared by the common portal under section 158A of the CGST Act, 2017.“The Central Government, on the recommendations of the Council, hereby notifies “Account Aggregator” as the systems with which information may be shared by the common portal based...
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...