Tax
CESTAT Allows CENVAT Credit On Welding Electrodes And Dissolved Acetylene Gas As Inputs In Cement Manufacturing Process
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of Suvendu Kumar Pati (Judicial Member) has allowed the CENVAT Credit on Welding Electrodes and Dissolved Acetylene Gas (D.A. Gas) as inputs in the Cement Manufacturing Process.The appellant/assessee is a manufacturer of cement and clinker having a Central Excise registration. For the process...
5% GST Payable On GTA Services Availed For Transporting Cotton Seed: Punjab AAR
The Punjab Authority of Advance Ruling (AAR) has ruled that the 5% GST is chargeable on goods transport agency (GTA) services availed by the applicant for transporting cotton seed (Banaula) provided that the credit of input tax charged on goods and services used in supplying the service has not been taken, else 12% GST is applicable.The two-member bench of Varindra Kaur and Viraj Shyamkarn...
Service Tax Demand Can't Be Sustained On Ocean Freight Under RCM: CESTAT
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the service tax demand is not sustainable as the appellant has purchased fertilisers, which are their inputs, at cost, insurance, and freight (CIF) value, which includes the ocean freight element.The appellant has paid custom duty on CIF value, which includes ocean freight, according to the...
Failure To Issue ASMT 10 In Respect Of Aspects Forming Subject Matter Of Proceedings Vitiates Entire Proceedings: Madras High Court
The Madras High Court has held that ASMT 10 is mandatory before proceeding to issue GST DRC-01. Failure to issue ASMT 10 in respect of the discrepancies forming the subject matter in GST DRC-01 culminating in GST DRC-07 would vitiate the entire proceedings.The single bench of Justice Mohammed Shaffiq has observed that any proceeding in GST DRC-01A/1 culminating in an Order in GST DRC-07,...
Appellate Authority To Bear In Mind The Predicaments Faced By Taxpayers On Introduction Of GST Procedures: Orissa High Court
The Orissa High Court has held that the Appellate Authority should have borne in mind the predicament faced by taxpayers on the introduction of a new set of procedures by way of the promulgation of the CGST Act and rules and that time is required to be taken to get acquainted.The division bench of Justice Jaswant Singh and Justice Murahari Sri Raman has observed that it preferred to exercise...
Operation And Maintenance Of Municipal Wet Waste Processing Facility Attracts 18% GST: West Bengal AAR
The West Bengal Authority of Advance Ruling (AAR) has ruled that the 18% GST is payable on the operation and maintenance of municipal wet waste processing facilities.The two-member bench of Varindra Kaur and Viraj Shyamkarn Tidke observed that the supply of services to be provided to the State Urban Development Agency for the design, build, finance, operation, and transfer of municipal wet...
Statutory Authorities, Professional Bodies Like ICAI Entitled To Income Tax Exemption If Amounts Charged By Them Are Nominal To Cover Costs : Supreme Court
The Supreme Court has pronounced a significant judgment on the scope of exemption for "charitable purposes" under Section 2(15) of the Income Tax Act 1961 in relation to statutory authorities and professional bodies.With effect from 01.04.2009, after the Finance Act 2009, a proviso was added to the section to state : "Provided that the advancement of any other object of general public...
Vodafone Idea Not Liable To Deduct TDS On Discount Allowed To Distributors On Purchase Of Prepaid SIM Cards And Recharge Vouchers: ITAT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that Vodafone Idea is not liable to Deduct Tax at Source (TDS) on the discount allowed to the distributors on purchase of prepaid SIM Cards and recharge vouchers. The Bench of Vikas Awasthy (Judicial Member) and M. Balaganesh (Accountant Member) held that since the relationship between the assessee Company and...
Advancement Of General Public Utility Won't Be "Charitable Purpose" For Income Tax Exemption If It Is Done As Business : Supreme Court
In a significant judgment, the Supreme Court has held that entities created with the object of advancing general public utility cannot seek exemption under the Income Tax Act 1961 under the head "charitable purposes" if they are engaging in any trade, business, commerce or providing any service for any consideration.However, in the course of carrying out the general public utility, the...
Govt. Invites Suggestions From Industry And Trade Associations For Changes In Direct and Indirect Taxes in Budget 2023-24
The Ministry of Finance has invited suggestions from industry and trade associations for changes in direct and indirect taxes in Budget 2023-24.The Ministry of Finance would like to gain from the Trade Association's suggestions and viewpoints as it develops the proposals for the Union Budget of 2023–24.The industry and trade associations might send their recommendations for modifications to...
Financial Benefits To Assessee Can't Be A Ground To Levy Interest Without A Statutory Provision: Bombay High Court
The Bombay High Court has ruled that penalty or interest on additional customs duty (CVD) and special additional duty of customs (SAD), or surcharge, which is not connected to the basic customs duty, cannot be imposed in the absence of an explicit substantive provision. The Division Bench of Justices K.R. Shriram and A.S. Doctor observed that there was no substantive provision...
Payment Made By Assessee To Non-Resident Supplier Amount To "Royalty" And Liable To Deduct TDS: ITAT
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has held that the payment made by the assessee to the non-resident supplier would amount to royalty and there is an obligation on the part of the assessee to deduct tax at source.The two-member bench of T.R. Senthil Kumar (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the introduction of Explanation 5...