Poultry Crates Attracts 18% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Mangoo and T.R. Ramnani has ruled that Goods and Service Tax (GST) at the rate of 18% is applicable on poultry crates, which can be treated as "articles for the conveyance or packing of goods, or plastics".The applicant is in the business of manufacturing a wide range of products used for storage,...

Taxpayer Can't Approach High Court To Avoid Mandatory Pre-Deposits While Availing Appellate Remedy: Kerala HC

The Kerala High Court has recently held that a taxpayer cannot seek to avoid mandatory pre-deposits as a remedy to an appeal under Section 107 of the State Goods and Services Tax Act, 2017. Justice Bechu Kurian Thomas observed that granting such relief would render the provisions of the Act redundant."Once the petitioner undertakes the remedy of a statutory appeal under section 107 of the...

Challan Can Be Rectified To Correct Bonafide Errors: Delhi High Court Directs VAT Dept. To Allow Changes in Tax Period

The Delhi High Court bench, consisting of Chief Justice Dhirubhai Naranbhai Patel and Justice Jyoti Singh, directed the Value Added Tax (VAT) department to allow rectification of bonafide errors in the tax period of the challan.The petitioner submitted that in respect of the second quarter of 2015-2016, i.e., from 1.07.2015 to 30.09.2015, the petitioner filed its returns on...

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

The Delhi Bench of ITAT, consisting of members N.K. Billaiya (Accountant Member) and Astha Chandra (Judicial Member), has held that access to a foreign enterprise for providing technical assistance to its Joint Venture Company in its premises in India does not amount to a Permanent Establishment under the Double Taxation Avoidance Agreement. The Assessee FCC Co. Ltd, a Japanese...

Payment To Foreign Company For Utilisation Of Transponder Of A Satellite Is Not "Royalty" As Per DTAA: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Sandeep Sigh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) ruled that the payment made to a foreign company for the utilisation of a transponder centred on a satellite was not in the nature of "royalty" in terms of the Double Taxation Avoidance Agreement (DTAA).The assessee/respondent in...

Claim Of Deduction Under Section 54 Of Income Tax Act To Be Reckoned From The Date Of Possession Of New Property: Mumbai ITAT

The Mumbai Bench of ITAT, consisting of members Pramod Kumar (Vice President) and Kuldip Singh (Judicial Member), has ruled that an assessee's claim of deduction under Section 54 of the Income Tax Act, 1961 was to be reckoned from the date of possession of the new residential house property. Also, the ITAT ruled that the source of funds for the purchase of the new house...

"Input Service" No Longer Includes Services For Personal Use Or For The Employee Post April 1, 2011: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the definition of input service as it stood prior to April 1, 2011, in which the phrase "activities relating to business" was included, which had a very wide ambit and would include almost all services used for the activities of business, however, after the amendment the services for personal...

Leasing & Maintaining Of Industrial Gas Plant Doesn't Qualify As "Job Work": AAR

The Orissa Authority of Advance Ruling (AAR) consisting of G.K. Pati (CGST Member) and Hrushikesh Mistra (SGST Member) has ruled that the leasing and maintenance of hydrogen and nitrogen gas plants does not qualify as "job work".The applicant, a Government of India undertaking in the business Petrochemical, owns and operates an oil refinery in the state of Odisha located at...

Appeal U/S 260A Of Income Tax Act Can't Be Entertained Except On The Ground Of Perversity/Lack Of Evidence: Delhi High Court

The Delhi High Court bench consisting of Justice Rajiv Shakdher and Justice Talwant Singh has dismissed the appeal against the deletion of income tax addition for share or bogus purchases or cash deposits and held that appeal under section 260A of Income Tax Act cannot be entertained by High Court except on the grounds of perversity or for the complete lack...

Amount Received Under Distribution Agreement Of Computer Software Not 'Royalty' If No Right To Transfer Copyright: Delhi High Court

The Delhi High Court has ruled that an amount received under a distribution agreement with respect to a computer software did not amount to 'royalty' under the Income Tax Act, 1961, if the agreement does not create a right to transfer the copyright with respect to it. The Bench, consisting of Justices Manmohan and Sudhir Kumar Jain, had observed that in view of the Supreme Court...

ITAT Chennai: Internal Family Arrangement Has No Bearing On Computation Of Capital Gains From Joint Property

The Chennai Bench of ITAT, consisting of members V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member), has held that capital gains under the Income Tax Act, 1961 is to be computed according to the respective share of the parties in a residential property and not according to any internal family arrangement. The Assessee had filed his income tax return, which was taken...

GST Dept. Should Issue DRC-1 Notice, Grant Fair Opportunity Of Hearing Before Passing Assessment Order: Madras High Court

The Madras High Court has held that the DRC-01 notice under Section 74(1) of the CGST Act must be issued before passing the assessment order. The single bench of Justice R. Suresh Kumar has remitted the after back to the respondent/department for reconsideration and directed that the department to issue DRC-01 notice to the petitioner and after giving a fair opportunity of being heard...