Tax INFORM- March 2023

The twenty seventh 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:

  • Bombay High Court overrules AAR ruling, says Limitation of Benefit clause under India-Mauritius DTAA does not apply in present case.
  • The concerned officer has to apply his mind to the terms of the Distributor Agreement and the ratio of judgement rendered by the Supreme Court in Engineering Analysis, says Delhi High Court.
  • Deduction of Tax at Source for making payment to Doctors or Medical Practitioners does not legalise the payment, says Delhi ITAT.

Circulars and Notifications:

  • CBDT notifies New Audit Report for Trusts registered u/s 12A and 10(23C) of the Act

Indirect Tax – 

Goods & Services Tax

Case Laws:
  • AAAR held that Myntra was ineligible to claim the input tax credit on vouchers sourced from third-party vendors.
  • AAR held that the supply of readymade ice cream from the applicant’s outlet is not a ‘restaurant service’.
  • AAR held that the seller and preceding seller are mandatorily required to discharge their tax liabilities for the purchaser to claim the input tax credit.