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Home e-Newsletters Index Year 2018 October Day 8 - Monday

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TMI Tax Updates - e-Newsletter
October 8, 2018

Case Laws in this Newsletter:

GST Income Tax Customs Service Tax Central Excise CST, VAT & Sales Tax Indian Laws



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Articles


News


Notifications


Circulars / Instructions / Orders


Highlights / Catch Notes

    GST

  • Classification of goods - RBD Palm Stearin - there is specific Tariff Item 1511 90 30 for ‘Refined bleached deodorized palm stearin’. Therefore, the product ‘Refined bleached deodorized palm stearin’ is classifiable under Chapter Heading 1511 with Tariff Item 1511 90 30

  • Development Authorities - exempt entity or not - Taxability of supply of goods and services - Whether the Development Authorities formed and constituted under "Uttar Pradesh Urban Planning and Development Act, 1973" are to be treated as "Exempt entity or not" under new GST Law? - Held No.

  • Classification of goods - Waste/by-product - Mahua De-oiled cake/De-oiIed Rice Bran is a by-product occurred during the solvent extraction process, which is used as an ingredient of Cattle Feed, Poultry Feed and Other animal feeds - Since the product is exempt, reversal of credit is required.

  • Canned Pineapple Slices, dipped in Sugar Syrup comes within Tariff item no. 2008 - Taxable @12% of GST

  • Supply of goods or Supply of services? - use of explosives in the blasting activity - the situation as narrated by the applicant is a composite supply of goods and services and shall be covered by Section 2(30) and Section 8(a) of the CGST Act, 2017 and the GGST Act, 2017.

  • Exemption from GST - the training imparted by the applicant to create interest in students for more advance form of mathematics so as to enhance their thinking capacity and mental development or employing methods of play involving Musical, Visual and specialized effects does not make the activities of the applicant as the training or coaching in recreational activities.

  • Classification of goods - Rate of tax - Slate for Teacher’ - ‘Slate for Student’ - the same are clearly designed to be used for writing or drawing with slate pen and chalk. - Benefit of exemption from GST allowed.

  • Income Tax

  • Penalty imposed u/s 271G - default in producing certain documents - since “event of default” occurred in March, 2014 i.e. well prior to the date of coming into force the amendment (i.e. 01.10.2014), the impugned order was wholly without jurisdiction

  • Higher rate of Depreciation on vehicles used for hire purposes - dumper and Volvo - It is not in dispute that the assessee has earned rental income from these vehicles. The requirement of the provision stands satisfied - claim of assessee allowed.

  • TDS u/s 194A - interest paid on unsecured loans raised from Bajaj Auto Finance Company - when payee has confirmed that it has accounted such an interest payment as its income, then no disallowance u/s. 40(ia) should be made

  • Additions towards excess stock was found - It was admitted by the director. Now this discovery of discrepancy cannot be bruised aside by merely submitting that on account of water contents in the cotton bales, their weight has been increased resulting into excess stock.

  • TDS u/s. 194G - non deduction of tds on commission paid to sub-agents - sale of lottery tickets through sub-agents - assessee is not liable to deduct TDS under section 194G, no disallowance under section 40(a)(ia) is called for.

  • Levy of fees u/s 234E - Section 200A, which deals with the processing of TDS returns, gave no mandate to make adjustments on account of levy of fees u/s 234E prior to 01.06.2015 and that the same was brought on the Statute only vide Finance Act, 2015 w.e.f. 01.06.2015.

  • Interest on delayed payment of VAT and TDS is only compensatory and is not penal in nature. Therefore, the CIT(A) has correctly deleted the disallowance made for the interest expenditure claimed on delayed payment of VAT and TDS.

  • Provision for impairment of stocks - method of valuation of stock - inventory consisted of old/used stock which was categorized as defective, but, repairable stock and demo stock. These stocks were valued at their net realizable value - claim of assessee allowed.

  • Penalty levied u/s 271(1)(c) - undervalued its closing stock - in the subsequent year, the assessee has shown less amount of opening stock which will lead in the enhancement of the profit of the assessee - there cannot be a deliberate act on the part of the assessee in declaring less amount of closing stock.

  • LTCG - Exemption u/s 54F - eligibility criteria - determination of net consideration - The net consideration as determined under section 50C based on the stamp duty authority valuation is not a consideration which has been received by or has accrued to the assessee.

  • Claim of deduction u/s 35DD or alternatively u/s 32 - acquiring commercial rights - the assessee has not paid any consideration to acquire the Palakollu Bank, the assessee has not shown any depreciation schedule in the amounts towards goodwill /commercial rights. Therefore, it cannot be considered that the assessee has acquired goodwill/commercial rights - Claim not allowed.

  • Customs

  • EPCG Scheme - benefit of Concessional rate of duty - The objection by the department is not on the basis of the material fact but on the interpreting of Notification No. 97/2004-Cus. - the demand is clearly hit by limitation.

  • Valuation of imported goods - if at all the value of contemporary imports is to be applied, the lowest value of similar goods imported into India is to be adopted. However, in the present case, the department could not bring on record that there are various imports and lowest price among all the imports is adopted. - Rejection of valuation is not proper.

  • DGFT

  • Benefits under the Services Exports from India Scheme (SEIS) - while educational services provided to NRI students (who constitute foreign consumers) would be eligible under the SEIS, services given to Indian students sponsored by NRIs would not be eligible.

  • Service Tax

  • CENVAT Credit - input services - insurance services provided by the appellant to workers working at their site - the availment of the policy appears to be a statutory requirement and as rightly contended by the assessee, this service is not used primarily for personal use or consumption of an employee and this, being the statutory requirement, it is insured (assessee) specific and not employees specific - Credit allowed.

  • Failure to deposit the service tax collected from clients though reflected in the ST-3 return - Extended period of limitation - Appellants have misappropriate the funds held by them in trust for their personal gain and should not be allowed the plea of financial hardship. - Demand with penalty sustained.

  • Central Excise

  • Extended period of Limitation - CENVAT Credit - The assessee did not file any return and did not maintain any records. Therefore, for reasons assigned by the original authority, the credit was rightly denied.

  • Valuation - goods manufactured on Job-work basis, sold by the principal - "Said Goods" - whether the goods manufactured and cleared by job worker and the same was sold by the principal falls under the term of “Said Goods” then only the obligation of Rule 10A (ii) can be decided.

  • Valuation - Job-work - Appellant had bona-fide belief for valuation of goods manufactured under job work. The demands beyond normal period of limitation are thus held to be patently time barred


Case Laws:

  • GST

  • 2018 (10) TMI 309
  • 2018 (10) TMI 308
  • 2018 (10) TMI 307
  • 2018 (10) TMI 306
  • 2018 (10) TMI 305
  • 2018 (10) TMI 304
  • 2018 (10) TMI 303
  • 2018 (10) TMI 302
  • 2018 (10) TMI 301
  • 2018 (10) TMI 300
  • 2018 (10) TMI 299
  • Income Tax

  • 2018 (10) TMI 298
  • 2018 (10) TMI 297
  • 2018 (10) TMI 296
  • 2018 (10) TMI 295
  • 2018 (10) TMI 294
  • 2018 (10) TMI 293
  • 2018 (10) TMI 292
  • 2018 (10) TMI 291
  • 2018 (10) TMI 290
  • 2018 (10) TMI 289
  • 2018 (10) TMI 288
  • 2018 (10) TMI 287
  • 2018 (10) TMI 286
  • 2018 (10) TMI 285
  • 2018 (10) TMI 284
  • 2018 (10) TMI 283
  • 2018 (10) TMI 282
  • 2018 (10) TMI 281
  • 2018 (10) TMI 280
  • 2018 (10) TMI 279
  • 2018 (10) TMI 278
  • 2018 (10) TMI 277
  • 2018 (10) TMI 276
  • Customs

  • 2018 (10) TMI 275
  • 2018 (10) TMI 274
  • 2018 (10) TMI 273
  • Service Tax

  • 2018 (10) TMI 269
  • 2018 (10) TMI 268
  • Central Excise

  • 2018 (10) TMI 267
  • 2018 (10) TMI 266
  • 2018 (10) TMI 265
  • 2018 (10) TMI 264
  • 2018 (10) TMI 263
  • CST, VAT & Sales Tax

  • 2018 (10) TMI 262
  • Indian Laws

  • 2018 (10) TMI 310
  • 2018 (10) TMI 272
  • 2018 (10) TMI 271
  • 2018 (10) TMI 270
 

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