"13 July 2019" Archive

GST Audit U/S 35(5) Read With Section 42(2) and Rule 80(3)

GST AUDIT U/S 35(5), READ WITH SECTION 42(2), READ WITH RULE 80(3):  SOME IMPORTANT DISCUSSIONS FOR GST AUDITOR FROM MY POINT OF VIEW: Meaning of Audit in GST law: According to Section 2(13), Audit means the examination of records, returns and other documents maintained or furnished by the registered person under this Act or the [&hellip...

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Breakwater cannot considered to be plant or machinery

In re Konkan LNG Private Limited (GST AAR Maharashtra)

The applicant has agreed that the breakwater is an immovable property. To find whether they are eligible to avail ITC of tax paid on the construction of such breakwater we need to find whether the same can be considered to be 'Plant and Machinery'....

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TDS on Outsourcing expenses of Clerical Nature deductible U/s. 194C

CIT Vs M/s. Reliance Life Insurance Co Ltd (Bombay High Court)

CIT Vs M/s. Reliance Life Insurance Co Ltd (Bombay High Court) Assessee had hired the services for various works such as storage of data, scanning of documents, processing charges, call centre operations etc. Looking to the nature of services outsourced, it was held that the same were basically clerical services of repetitive nature of wo...

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Cenvat credit allowable on courier service used for sell of goods

M/s Groz Beckert Asia Pvt Ltd Vs Commissioner of C.E (Cestat Chandigarh)

Appellant is sending the goods through courier and till the goods reach to the buyer’s place, the appellant is the owner of the goods. In case, the buyer refused to take the delivery of the goods, the goods were returned by courier to them. In that circumstance, till the delivery of the goods to the buyer, they are the owner of the good...

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Expense on issue of shares under ESOP allowable

Pr. CIT Vs Lemon Tree Hotels (P) Ltd. (Delhi High Court)

Pr. CIT Vs Lemon Tree Hotels (P) Ltd. (Delhi High Court) The question of law urged with respect to expenditure claimed towards case of Employee Stock Ownership Plan (ESOP) has been subject matter of previous orders of this Court in respect of the present assessee. For A.Y. 2008-09 in ITA 107/2017 (Commissioner of Income Tax […]...

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ITAT should expedite hearing in old appeals: Delhi HC

Nokia Solutions And Networks Italia SPA Vs DCIT (Delhi High Court)

President or the Senior Vice President concerned of the Tribunal should take appropriate steps and expedite the hearing in these appeals, so as to ensure that final orders in all these appeals are announced at the earliest, preferably within four months from today....

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TDS not deductible on Payment made for conduct of exam through affiliated centers

Pr. CIT (Central) Vs M/s. M.P. Biscuits Pvt. Ltd (Allahabad High Court)

In the absence of any material to establish that the affiliated colleges/centres were rendering services of professional or technical nature in the matter of conducting the University's examination, we are of the opinion that the Tribunal has not committed any error of law in holding that the tax was not deductable on such reimbursement u...

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Foreign Liabilities & Assets Information Reporting System (FLA Return)

Foreign Liabilities & Assets Information Reporting (Flair) System (FLA Return) Applicability:-Annual return on Foreign Liabilities and Assets has been notified under FEMA 1999 and it is required to be submitted by all the India resident companies (Reporting Entities)* which have received FDI and/ or made overseas investment in any of ...

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Summary of Union Budget 2019

A. DIRECT TAX PROPOSALS-GENERAL 1. Tax Rate Corporate Tax rate Corporate tax rate reduced to 25% (plus applicable surcharge and cess) for a domestic company having total turnover/ gross receipts not exceeding Rs 400 Crores in FY 2017-18 as against the current limit of 250 crores. In other cases, the tax rate remains unchanged at […...

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Valuation of Cross Charges amongst distinct entities under GST

Cross charges are nothing but a supply between: – Two or more offices/establishments of an entity or – Related companies enjoying common facilities. These charges may also be termed as a mechanism to allocate the value, as per the valuation rules and charge GST from the distinct/related persons. To emphasize, this concept asce...

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