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Home e-Newsletters Index Year 2018 September Day 28 - Friday

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TMI Tax Updates - e-Newsletter
September 28, 2018

Case Laws in this Newsletter:

GST Income Tax Customs Corporate Laws Insolvency & Bankruptcy Service Tax Central Excise Wealth tax Indian Laws



TMI SMS


Highlights / Catch Notes

    GST

  • Implementation of Tax Deduction at Source (TDS) under GST

  • Levy of GST - Marg Sudharan Shulk - charged and collected by applicant for the maintenance of forest road, from non government, private and commercial vehicles engaged in mining work in lieu of use of forest road - Levy of GST confirmed.

  • Input Tax Credit (ITC) for providing leasing services - goods and services used for erection of infrastructure to which fibre cables are connected - The infrastructure provided by the applicant is different from “Telecommunication Tower” and accordingly applicant can avail ITC on GST paid on the goods & services in terms of section 16(1) of CGST/SGST Act, 2017, consumed while providing the supply in question.

  • ITC of GST paid on Works Contract Service received by the Applicant for maintenance contract of building shall not be available to them in terms of clause (d) of Section 17(5) of the GST Act 2017.

  • ITC of GST paid on goods purchased for the purpose of maintenance of Mall such as Vitrified Tiles, Marble, Granite, ACP Sheets, Steel Plates, TMT Tor (Saria), Bricks, Cement, Paint, Chemicals, Sanitary Items like wash basin, urinal pots and toilet accessories shall not be admissible to the Applicant in terms of clause (c) of Section 17(5) of the GST Act 2017.

  • Profiteering - contravention of the provisions of Section 171 of the CGST Act, 2017 - Benefit of reduction in the rate of tax by lowering the price of “Maybelline FIT Me foundation” not passed on to recipients - by no stretch of imagination he can pocket this reduction to the detriment of the ordinary consumer.

  • Income Tax

  • TDS Credit - Wherever the payer-deductor had made the payment to the company but by error deposited tax in the account of the firm, the petitioner company must get benefit of such tax deducted at source.

  • Claim of credit of TDS deducted on salary - Employer failed to deposit the TDS amount with the Government - Department cannot deny the benefit of tax deducted at source by the employer of the petitioner during the relevant financial years. Credit of such tax would be given to the petitioner for the respective years.

  • Addition u/s 41 - remission or cessation of liability - when the software library was capitalized, it cannot be said that any benefit or remission or cessation of liability occurred.

  • Disallowance of artificial loss made on account of fictitious transactions - CIT(A) has deleted the addition merely by observing that the books of accounts of the assessee were audited and have not been rejected by the AO. - Matter restored before the CIT(A)

  • Treatment of interest earned by assessee as “Income from Other Sources” - assessee did not claim for any exemption of interest income on the basis of ‘doctrine of mutuality’, instead has considered for taxability under head ‘Income from Business’ - No reason to change the head of interest income to “income from other sources”.

  • Addition of claim towards staff gratuity - The assessee has no control over the funds contributed to LIC towards the gratuity. The assessee is receiving the gratuity payment directly from the LIC of India as per the scheme which is paid to the employee on happening of the event i. e. retirement or death or resignation. - Deduction allowed.

  • Penalty u/s 271D - Default in accepting the cash loan in violation of section 269SS - urgency of matter - Since, the stamp duty for registration of property was to be paid urgently, the assessee had no other option but to avail the cash loan from the directors. - No penalty.

  • Levy of penalty u/s 272A(2)(k) - delay in remittance of the TDS Amount in the Govt. Account - whether the explanation tendered by the appellant in support of delay in submission of quarterly returns can be considered to be plausible? - Held Yes

  • Customs

  • Amends Notifcation No. 52/2017 dated 30th June, 2018 - Goods falling under heading 2710 19 20 increased from Nil to 5%

  • Amends Notifcation No. 57/2017 dated 30th June, 2018 - Rate of customs duty on import of certain items - Scope of entry relating to Tariff heading 8518 modified.

  • Amends Notifcation No. 50/2017 dated 30th June, 2018 - Rate of customs duty on import of Gemstones and Diamonds enhanced from 5% to 7.5%

  • Amends First Schedule of Customs Tariff Act, 1975. - Rates of Customs duty on import of certain items enhanced.

  • Restriction imposed on import of yellow peas - before 30th August, 2018, the contract was fully executed - respondents is directed to take necessary steps to permit petitioner to lift and use imported Yellow Peas in these two shipments without subjecting them to the restriction

  • Prohibition order on CHA - prohibiting the appellant from working in any sections of the Chennai Customs station - The prohibition order issued without mentioning any specific period cannot sustain and requires to be set aside.

  • Valuation of imported goods - rejection of invoice value - enhancement of value to 166.6% under Rule 8 - This is a fit case to be remanded to consider the plea of the appellant with regard to whether the deductive method is to be applied.

  • DGFT

  • Amendments to Foreign Trade Policy 2015-2020 - Extension of Integrated Goods and Service Tax (IGST) and Compensation Cess exemption under Advance Authorisation, EPCG and EOU scheme upto 31.03.2019.

  • Corporate Law

  • Tenure of the Director - Permanent (non-rotational) director as supported by the Articles of association - Other directors proposed to removed the petitioner by calling EGM - No injunction from calling the EGM can therefore be granted.

  • Service Tax

  • Refund of Service Tax paid - The rejection of refund claim without issuance of show cause notice cannot sustain

  • Construction of Complex Service - If the land owner enters into a contract with a promoter/builder/developer who himself provided service of design, planning and construction and if the property is used for personal use then such activity would not be subject to service tax

  • CENVAT Credit - insurance services - Motor Insurance Policy for motor vehicles against theft, damage and third-party liability - service tax paid on reimbursement of the repair charges allowed.

  • Central Excise

  • Refund claim - Once the GST regime is in force, the pending refund claim, if sanctioned, will necessarily have to be paid in cash irrespective of the fact whether the refund amount pertains to that emanating from cenvat account or from account current

  • Manufacture - activity of inspection and sample testing - removal of inputs as such - Revenue cannot change the goal posts and have two different approaches to the same issue for different periods more so when the facts are identical

  • CENVAT credit - travel services extended to Directors, their family members and employees - The credit is admissible only when the travelling service is for the purpose of Official work but in the present case the travelling service for leisure trip - Credit not allowed.

  • Valuation - goods in the Malkapur unit of the appellant - Inclusion of certain costs - principles of natural justice - demand on the basis of selective transaction cannot sustain - short payment of duty and excess payment of duty, both should be considered.

  • Supply of items for setting up independent thermal power plant - Supply against International Competitive Bidding (ICB) - Going by the maxim res judicata pro veritate accipitur, the appellant should succeed.


Articles


Notifications


Circulars / Instructions / Orders


News


Case Laws:

  • GST

  • 2018 (9) TMI 1647
  • 2018 (9) TMI 1646
  • 2018 (9) TMI 1645
  • 2018 (9) TMI 1644
  • 2018 (9) TMI 1643
  • 2018 (9) TMI 1642
  • 2018 (9) TMI 1641
  • 2018 (9) TMI 1640
  • Income Tax

  • 2018 (9) TMI 1639
  • 2018 (9) TMI 1638
  • 2018 (9) TMI 1637
  • 2018 (9) TMI 1636
  • 2018 (9) TMI 1635
  • 2018 (9) TMI 1634
  • 2018 (9) TMI 1633
  • 2018 (9) TMI 1632
  • 2018 (9) TMI 1631
  • 2018 (9) TMI 1630
  • 2018 (9) TMI 1629
  • 2018 (9) TMI 1628
  • 2018 (9) TMI 1627
  • 2018 (9) TMI 1626
  • 2018 (9) TMI 1625
  • 2018 (9) TMI 1624
  • 2018 (9) TMI 1623
  • 2018 (9) TMI 1622
  • 2018 (9) TMI 1621
  • 2018 (9) TMI 1620
  • 2018 (9) TMI 1619
  • 2018 (9) TMI 1618
  • 2018 (9) TMI 1617
  • 2018 (9) TMI 1616
  • 2018 (9) TMI 1615
  • 2018 (9) TMI 1614
  • 2018 (9) TMI 1613
  • Customs

  • 2018 (9) TMI 1606
  • 2018 (9) TMI 1605
  • 2018 (9) TMI 1604
  • 2018 (9) TMI 1603
  • 2018 (9) TMI 1602
  • 2018 (9) TMI 1601
  • Corporate Laws

  • 2018 (9) TMI 1609
  • 2018 (9) TMI 1608
  • 2018 (9) TMI 1607
  • Insolvency & Bankruptcy

  • 2018 (9) TMI 1612
  • 2018 (9) TMI 1611
  • 2018 (9) TMI 1610
  • Service Tax

  • 2018 (9) TMI 1599
  • 2018 (9) TMI 1598
  • 2018 (9) TMI 1597
  • 2018 (9) TMI 1596
  • 2018 (9) TMI 1595
  • 2018 (9) TMI 1594
  • 2018 (9) TMI 1593
  • 2018 (9) TMI 1592
  • 2018 (9) TMI 1591
  • 2018 (9) TMI 1590
  • 2018 (9) TMI 1589
  • 2018 (9) TMI 1588
  • 2018 (9) TMI 1587
  • 2018 (9) TMI 1586
  • 2018 (9) TMI 1585
  • 2018 (9) TMI 1584
  • 2018 (9) TMI 1583
  • Central Excise

  • 2018 (9) TMI 1582
  • 2018 (9) TMI 1581
  • 2018 (9) TMI 1580
  • 2018 (9) TMI 1579
  • 2018 (9) TMI 1578
  • 2018 (9) TMI 1577
  • 2018 (9) TMI 1576
  • 2018 (9) TMI 1575
  • 2018 (9) TMI 1574
  • 2018 (9) TMI 1573
  • 2018 (9) TMI 1572
  • 2018 (9) TMI 1571
  • 2018 (9) TMI 1570
  • 2018 (9) TMI 1569
  • 2018 (9) TMI 1568
  • 2018 (9) TMI 1566
  • Wealth tax

  • 2018 (9) TMI 1567
  • Indian Laws

  • 2018 (9) TMI 1600
 

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