The fifteenth 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:
- SC: Expenses incurred by pharmaceutical
companies towards distribution of freebies
to medical practitioners cannot be allowed as
business expenditure under Section 37(1) of
• Revenue cannot reject an application for
compounding of an offence when accused’s
conviction is already set aside.
• Mumbai Tribunal: Difference between
income appearing in Form 26AS vis-à-vis
income recorded in books of account must
be added back while computing book profits
under section 115JB.
International Tax Rulings:
- Delhi Tribunal: No additions can be made
under section 68 of the Act where such
investment is confirmed by Mauritius tax
authorities and is in compliance with RBI
• Resident and Ordinarily Resident eligible to
claim treaty benefit with respect to salary
income earned in the USA.
• No requirement to deduct tax at source on
payment made for transponder charges to
- CBDT issues circular on Income-tax
deduction from Salaries during FY 2021-22
under section 192 of the Act.
Indirect Tax –
GOODS AND SERVICES TAX
- AAAR: “Supply of goods” includes shifting
business from one state to another.
• AAAR: “Mango Pulp/Puree” is taxable at the
rate of 18%.
• AAAR: Flavoured milk was to be classified as
“beverage containing milk” and not “milk”.
• AAAR: Only affiliate coaching centres of
ICAI/ICMAI are eligible for exemption as an
• AAAR: GST at the rate of 18% is applicable
for toys consisting of electric components.
• AAR: Guest lectures incomes are taxable at
• AAR: No exemption is available for paid
educational content used by healthcare
professionals to fulfil the mandate of the
• AAR: Law schools are not eligible for a “Nil”
rate for subscription services of “online textbased information.
• AAR: Yoga courses are taxable at the rate of
18% due to the absence of specific
registration under Income Tax.
• AAAR: Demo Vehicles are not eligible for ITC
as it is not received with the intention of
• AAR: By-products of alcohol brewing are
taxable at 5%.
- The Central Government vide Notification
No.1/2022 – Central Tax has revised the
limit from “fifty crore rupees” to “twenty
crore rupees” for the preparation of invoice
in terms of Sub-Rule 4 to Rule 48 of the
Central Goods and Service Tax Rules, 2017