Tax INFORM- February 2023

The twenty sixth 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:

  • Delhi High Court sets aside the Assessee’s reassessment notice and directs a de novo examination of the underlying share transaction.
  • IBM Philippines’ payroll services not FTS but ‘business income’, says Karnataka High Court.
  • Delhi ITAT held that receipts from ‘Uplinking’ Services do not constitute Royalty & amount received as consideration for ‘Playout’ Services provided cannot be termed as Fees for Technical Services (FTS).
  • Bangalore ITAT Rules on Theatre Owner’s TDS obligation on convenience fee retained by Bigtree for providing ticket booking services through BookMyShow.

Circulars and Notifications:

  • CBDT notifies ITR Forms for AY 2023-24

Indirect Tax – 

Goods & Services Tax

Case Laws:
  • Karnataka High Court provides relief to taxpayer by permitting rectification of Form GSTR 3B.
  • Gujarat High Court directs Revenue to grant a refund on the ground that verification of the genuineness of supplier’s supplier is unwarranted.
  • AAAR held that SEZ unit receiving services from SEZ developer is not liable to pay tax under the reverse charge mechanism.