Tax INFORM- July 2022

The nineteenth 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 & individuals operating in India.

The highlights of the current issue are:

Direct Tax – 

Domestic Tax Rulings:

  • Revised return can neither substitute the original return nor convert the original return into a belated return.
  • Finance Act, 2022 amendment to Sec.14A for disallowance of expenditure which is “for the removal of doubts” cannot be presumed to be retrospective.
  • Faceless Appeal Scheme, 2021 – personal hearing to invariably be granted, on-demand, through video conferencing – applicable retrospectively.
  • Disallows set-off of losses to Cummins despite HC’s approval to the demerger, since the sole and underlying purpose was tax-benefit.

International Tax Rulings:

  • Providing access to technology, software licenses and other support services to its member firms, does not amount to ‘royalty’ and thus, is not liable to be taxed in India under the provisions of the Act or the India-UK DTAA.
  • Service Fee paid to UK Company for client introduction not FTS but regular business expenditure.
  • Remittances to Cambridge University & IB for imparting instructions on syllabus not taxable as FTS.
  • Foreign rental income declared in returns filed in respective countries, is not includible in Indian income.

Circulars and Notifications:

  • Notification O. 2910(E) [NO. 69/2022/F.NO.500/SWF1/S10(23FE)/FT&TR-II-PT. 3].
  • Notification S.O. 2928(E)[NO. 70/2022/F. NO. 500/1/2014-APA-II].
  • Notification G.S.R. 482(E) [NO. 73/2022/F. NO. 370142/29/2022-TPL (PART-I)], DATED 30-6-2022 AS CORRECTED BY NOTIFICATION G.S.R. 505(E) [NO. 77/2022/F.NO. 370142/29/2022-TPL (PART-I)], DATED 1-7-2022.
  • Notification S.O 2958(E) [NO. 74/2022/F. NO. 370142/29/2022-TPL(PART-I).
  • Notification S.O. 2959(E) [NO. 75/2022/F. NO. 370142/29/2022-TPL (PART-I)].
  • Notification S.O. 3105(E)[NO. 79/2022/F. NO. 300196/38/2021-ITA-I].
  • Notification G.S.R. 524(E)[NO. 80/2022/F. NO. 370142/11/2022-TPL].
  • Notification S.O. 3142 (E) [NO. 81/2022/F.NO. 300196/14/2021-ITA-I].
  • Notification S.O. 3148(E) [NO. 82/2022/F. NO. 187/3/2020-ITA-I].
  • Notification G.S.R. 537(E) [NO. 83/2022/ F. NO. 370142/30/2022-TPL].
  • Notification G.S.R. 537(E) [NO. 85/2022/ F. NO. 300196/17/2022–ITA-I].
  • Notification No. 3/2022 [F.NO. DGIT(S)-ADG(S)-3/ E-FILING NOTIFICATION/ FORMS/ 2022/ 3813], DATED 16-7-2022.
  • Circular No. 14/2022 [F. NO. 370142/29/2022-TPL (PART-I)].
  • Circular No. 15/2022 [F. No.197/89/2022-ITA-1].
  • Circular No. No. 16/2022 [F.No.197/89/2022-ITA-1].
  • Circular No. 17/2022 [F.No.197/89/2022-ITA-1].


Indirect Tax – 

Goods & Services Tax

Case Laws:
  • Calcutta High Court held that the interest portion of EMI on a loan availed against a credit card is a taxable supply.
  • AAR held that taxability under RCM does not arise when services for facilitating the sale of spice are received from Overseas Commission Agents.
  • AAR held that consideration received in the form of a “grant” for services to the Government was exempt from GST.
  • AAR held that contents provided by recipient for the printing of leaflets is taxable at 18%.
  • AAR held that demo vehicles capitalized in the books of account were eligible for an input tax credit.
  • AAR held that a tax rate of 18% was applicable on the sale of advertisement space by Myntra.
  • Notification No.10/2022  Central Tax