Tax
GST Council Recommends Changes In GST Rate For Various Goods And Services
The 48th GST Council, presided over by Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs made various recommendations relating to changes in GST rates on the supply of goods and services.The council has exempted the husk of pulses, including chilka, and concentrates, including chuni, churi, and khanda. Early on, 5% GST was payable on the husks of pulses.Due to...
Supply of Tata Garbage Tipper Vehicle To Municipalities Attracts 28% GST: AAR
The Maharashtra Authority of Advance Ruling (AAR) has held that the supply of Tata garbage tipper vehicles to Municipalities shall attract 28% GST.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that garbage tipper vehicles can be used for the transportation of goods. The starting words of Entry 8704 are "Motor Vehicles for the Transport of Goods." Thus, the rate of...
48th GST Council Meet: GST Not Applicable On No Claim Bonus Offered By Insurance Companies
The 48th Meeting of the GST Council was held on 17th December 2022 through Video Conference, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The council recommended that no claim bonus by insurance companies will not attract GST."Circular to be issued to clarify that No Claim Bonus offered by the insurance companies to the insured is...
Land Received In Lieu Of Business Loan Foregone, Is A Business Asset Not A Capital Asset: ITAT
The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that the land received by the assessee in the normal course of its finance business, in lieu of a business loan foregone, would assume the character of a business asset and not a capital asset, irrespective of its treatment in the assessee's books of accounts. The bench of Mahavir Singh (Vice President) and...
18% GST Payable On Glaze Gels: AAR
The Maharashtra Authority of Advance Ruling (AAR) has held that 18% GST is payable on glaze gels.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that while sugar-baked confectionery is directly sold to ultimate end users for consumption, glaze gel is not consumed by end consumers, rather its product is used by cake manufacturers as a filling between sponge layers...
Transfer Of Monetary Proceeds By IVL India To ILV Sweden Attracts IGST Under RCM: AAR
The Maharashtra Authority of Advance Ruling (AAR) has ruled that the transfer of monetary proceeds by IVL India to the applicant IVL Sweden will be liable for payment of integrated goods and services tax under the reverse charge mechanism.The two-member bench of M. Rammohan Rao and T.R. Ramnani has observed that other than the service provided by the applicant to the Municipal Corporation...
Bombay High Court Allows Deduction On Issuance Of Completion Certificate
The Bombay High Court has allowed the income tax deduction under Section 80-IB on the grounds that a completion certificate was issued by the competent authority.The division bench of Justice Dhiraj Singh Thakur and Justice Valmiki S.A. Menezes, while upholding the order of the Income Tax Appellate Tribunal (ITAT), observed that there was no allegation by the survey team during the earlier...
Tax Cases Weekly Round-Up: 11 December to 17 December 2022
Supreme Court Income Tax Dept. Can't Initiate Reassessment Proceedings During The Pendency Of The Rectification Proceedings: Supreme Court Case Title: S.M. Overseas (P) Ltd. Versus CIT The Supreme Court has held that the income tax department cannot initiate the reassessment proceedings during the pendency of the rectification proceedings. The division bench of Justice M.R....
Small Tax Effect: Monetary Limit To Prefer An Appeal Before The Supreme Court Is Rs. 2 crores: Supreme Court
The Supreme Court disposed of the appeal on the ground of low tax effects. The division bench of Justice M.R. Shah and Justice Sudhanshu Dhulia observed that the monetary limit to file an appeal before the Supreme Court is Rs. 2 crores.The respective parties contended that the tax effect in both the appeals for the relevant assessment years (1995–96 and 1996–97) would be less than Rs....
GST Council Meet Raises Threshold For Launching Prosecution To Rs 2 Crores
The 48th GST Council presided over by Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs recommended decriminalizing offenses under Section 132, raising the threshold for tax prosecution, and lowering the amount of compounding in GST.Except for the offense of issuance of invoices without a supply of goods or services or both, the Council has recommended raising the...
AO Can't Pass Rectification Order to Disallow Set-off Of Loss By Invoking Section 79 of Income Tax Act, On Change In Assessee's Shareholding: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Section 154 of the Income Tax Act, 1961 can only be exercised by the Assessing Officer for rectification of mistake which is apparent on the face of record. The Bench of Pramod Kumar (Vice President) and Aby T. Varkey (Judicial Member) held that the issue whether Section 79 of the Income Tax Act was applicable in...
Employees' Contribution To PF Cannot Be Disallowed Merely On The Basis Of Auditor's Statement: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has deleted the addition made by the Centralised Processing Centre (CPC) towards employees' contributions to the Provident Fund (PF) based on the tax auditor's statement reporting the delay in employee contribution remittances.The two-member bench of Aby T. Varkey (Judicial Member) and M. Balaganesh (Accountant Member) has observed...