The twenty fifth 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:
- Madras High Court held that Section 92CA is a machinery provision and Section 153 deals exclusively with time limitation.
- Delhi High Court quashed the reassessment proceedings due to Revenue’s non-application of mind.
- ITAT held that License Fee is taxable as per revenue recognition policy, over agreement tenure.
- ITAT held that the Assessee does not have PE in India considering that no equipment/server was installed in India and there was no dependent agent in India.
- ITAT held that business income is not taxable as undisclosed income under Section 69 merely because it was declared during Survey proceedings.
Circulars and Notifications:
- Circular No. 1 of 2023 [F. NO. 225/49/2021-ITA-II], dated 06/01/2023
- Notification No. 1 of 2023, F No. DGIT(S)/ADG(S)-2/Reporting Portal/2021/180, dated 05/01/2023
Indirect Tax –
Goods & Services Tax
- Karnataka High Court allows rectification of Form GSTR 1 considering that the mismatch in GSTIN was an unintentional error.
- Delhi High Court held that mere non-payment to suppliers cannot restrict credit to the recipient and directed the Revenue to unblock the E-credit ledger.
- AAAR held that administration of COVID-19 vaccine was taxable at the rate of 5%.
- AAR held that GST is payable on interest amount receivable on annual installments.
- AAR held that health care service does not include door-step medical monitoring and logistics service.