Tax INFORM- August 2022

The twentieth issue of our monthly tax newsletter – Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax – 

Domestic Tax Rulings:

  • Expenditure incurred for beautification of outlets on lease are revenue in nature as no new asset is created.
  • TDS credit is allowable in the year in which the income is accrued and offered for taxation even if TDS was deducted in an earlier year and the denial of TDS credit in such cases would fall within the league of ”mistake apparent from record” liable for rectification under section 154.
  • Assessee is eligible for depreciation on non-compete fees paid in the case while acquiring business via a slump sale.
  • Developer is not liable to deduct TDS under section 194A on pre-EMI interest borne on behalf of buyers under the interest subvention scheme.

International Tax Rulings:

  • TDS at beneficial treaty rate takes precendence over Section 206AA provisions.
  • Assessee’s business support services are not taxable as FTS since they incidentally benefit Indian AE without transfer of technology.

Circulars and Notifications:

  • Notification No. 5/2022.
  • Notification no. 86/2022 [F. No. 500/PF1/S10(23FE)/FT&TR-II]/S.O. 3324(E).
  • Notification No. 87/2022 [F. No. 370142/36/2022-TPL]/GSR 610(E).
  • Notification No. 89/2022 [F. No. 370142/26/2019-TPL-Part (1)]/SO 3652(E).
  • Notification No. 90/2022 [F. No. 370142/31/2022-TPL (Part-2)]/SO 3703(E).
  • Notification no. 91/2022 [F. No. 370142/31/2022-TPL (Part-2)/SO 3704(E).
  • Notification 92/2022 [F. No. 370142/31/2022-TPL (Part-2)]/SO 3705(E).
  • Notification no. 93/2022 [F. No. 500/SWF3/S10(23FE)/FT&TR-II(Pt.3)]/S.O. 3707(E).
  • Notification no. 94/2022 [F. No. 370142/34/2022-TPL]/GSR 610.
  • Notification no. 95/2022 [F. No. 500/SWF4/S10(23FE)/FT&TR-II(Pt.4)]/S.O. 3828(E)
  • Notification no. 96/2022 [F. No.370142/34/2022-TPL]/GSR 632(E).
  • Notification no. 97/2022 [F. No. 500/PF2/S10(23FE)/FT&TR-II-Part (3)]/S.O. 3867(E).
  • Notification no. 98/2022 [F. No. 370142/33/2022-TPL] GSR 634(E).
  • Notification no. 99/2022 [F. No. 370142/9/2022-TPL Part (2)]/SO 3878(E).
  • Notification no. 100/2022 [F. No. 370142/35/2022-TPL]/GSR 636(E).


Indirect Tax – 

Goods & Services Tax

Case Laws:
  • Gujarat High Court directs a refund of tax collected on ocean freight with interest.
  • AAR denied the advance ruling application as the matter was pending before the DGGI.
  • AAR held that services which require the physical presence of foreign ships in India cannot be termed as ‘export of services’. 
  • AAAR held that the purchase/allotment of land was taxable at 18% after undertaking development activities.
  • Notification No.17/2022  Central Tax