Tax INFORM- June 2022

The eighteenth 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:

  • Income Tax Department can pass order on reassessment initiated during pendency of CIRP where company did not obtain any concession from ITD by giving due notice of CIRP.
  • The exemption under Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 shall apply to the land acquired by National Hi-Speed Rail Corporation Ltd. under an agreement.
  • Madras High Court upholds prosecution since ITR furnished only after survey and reassessment notice.
  • Deduction in respect of employee’s contribution towards PF & ESI would be allowable even paid after due date specified under respective Acts but before due date of filing of return. Amendment to provisions of sections 36(1)(va) and 43B, vide Finance Act, 2021, were applicable prospectively. 

International Tax Rulings:

  • Karnataka HC Ruling on Flipkart-Walmart TDS controversy on secondment of employees.
  • Overseas remittances for business promotion not FTS but business income, not liable for TDS, in the absence of PE.

Circulars and Notifications:

  • Notification No. 1 of 2022.
  • Notification No. 2 of 2022.
  • Notification No. 54 OF 2022 [F. NO.370142/51/2020-TPL].
  • Notification No. 55 OF 2022 [F. NO.370142/51/2020-TPL].
  • Notification No. 57 OF 2022 [F. NO. 370142/31/2021-TPL (PART III).
  • Notification S.O. 2501 (E) [No. 58/2022/F.No.300196/12/2021-ITA-I].
  • Notification S.O. 2735(E) [No. 62/2022/F.No.370142/20/2022-TPL].
  • Notification S.O. 2777(E) [No. 65/2022/F.No. 275/30/2019-IT(B)].
  • Notification G.S.R. 463(E) ) [NO. 67/2022/F. NO. 370142/23/2022-TPL],
  • Circular No. 11/2022 [F. No. 370142/4/2021-TPL]
  • Circular No. 12/2022 [F. No. 370142/27/2022-TPL]
  • Circular No. 13 of 2022 Dated 22-06-2022
  • Circular F.NO. 225/81/2022/ITA-II, Dated 3-6-2022.
  • Circular F. NO. 500/09/2016-APA-I, Dated 10-6-2022.

Indirect Tax – 

Goods & Services Tax

Case Laws:
  • High Court held that ‘Adjusted Total Turnover’ to exclude domestic supplies attracting NIL Cess rate.
  • High Court ruled that refund on exports can’t be denied due to procedural error.
  • AAR held that the facilitation of funds for investors to investees by an intermediary located outside is not taxable under RCM.
  • AAR ruled that books, stationary and other services provided in addition to education services were eligible for exemption and treated as ‘composite supply’.
  • AAR held that bearing in mind the ‘purpose of use’, lease income from residential dwellings is exempt.
  • AAR held that grievance redressal service provided against Insurer is not exempt from GST.
    • Notification No.05/2022 extended the due date for furnishing of FORM GSTR-3B and FORM GST PMT-06 for the month of April 2022.
    • Notification No.07/2022 inserted a proviso to Notification No.73/2017-Central Tax dated 29/12/2017.