The eighth issue of our monthly tax newsletter – Tax Inform is out. Through these newsletters, we provide a monthly compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities impacting entities & individuals operating in India.
The highlights of the current issue are:
Direct Tax –
SC holds that issuance of debentures in lieu of payment of interest, as per loan rehabilitation plan, amounts to ‘actual payment’ of interest under section 43B of the Income-tax Act, 1961 (Act).
Fresh claim can be made before the assessing officer during the course of reassessment proceedings.
Business losses can be set-off against income surrendered during survey.
Forfeiture of advance received against sale of property is a capital receipt and cannot be construed as cessation of trading liability under section 41(1) of the Act.
Re-domiciliation of an entity cannot be a ground for denial of tax treaty benefits.
Delay in furnishing TRC condoned and treaty benefits under India-USA DTAA allowed.
The CBDT, vide Circular no. 15/2021, dated 3rd August 2021 has extended the time limits for undertaking various compliances under the Act.
Guidelines have been issued under section 9B and Section 45(4) of the Income tax Act.
Retrospective tax on indirect transfer of Indian assets withdrawn.
Draft Foreign Exchange Management (Non-debt Instruments – Overseas Investment) Rules, 2021 (ODI Rules) introduced.
Indirect Tax –
Litigant barred from filing writ petition citing the existence of alternative remedy of appeal.
Revenue directed to expedite refund following Assessee’ s refund application for unutilized-ITC on “zero-rated supplies.”
Supply of goods for personal/household effect, exempt from e-way bill requirement.
Provisional attachment of Bank Account to be validated for one year.
Attachment of Bank Account lifted upon the furnishing of Bank Guarantee.
Stipend reimbursed by Industry Partner to skill trainees does not attract GST.
Potable water made exempt from GST.
Marine generators to attract GST @ 5%.
Edible-oil manufacturers are allowed to factor in Input Tax Credit on Captive Solar-Plan design/supply/installation.
Supply of e-vouchers taxable as goods at 18%.
Importation of leasing services into India attracts IGST.
18% IGST applicable on the commission received for rendering services as an Intermediary.
Due date extended for the reduced late fee for non-furnishing Form GSTR-3B.
Timeline extended for revocation of cancellation of registration.
Time extended for application of notification for reduction in rate of crude soya oil etc.
Exemption on import of Covid Relief Items further extended.
Guidelines and rates for the new Scheme for Remission of Duties and Taxes on Exported Products notified.