Tax INFORM- May 2024

The fortieth 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:

  • Criminal prosecution not pursued if delay beyond 12 months is justified.
  • Indexation benefit to be applied where fair market value cannot be otherwise determined.
  • Deduction claimed under section 80-O in respect of fees received from a foreign company for providing information concerning commercial knowledge, experience, or skill, denied because assessee had failed to produce substantial evidence.
  • Concluded assessment proceedings cannot be reopened in the absence of new evidence. Procedure envisaged in Ashish Agarwal case unambiguously stood confined to matters where although notices may have been issued, proceedings were yet to have attained

Notifications/ Circulars:

  • Notification F.NO.225/72/2024IITA-II dated May 3, 2024
  • Circular No. 7/2024 [F.NO. 173/25/2024-ITA-I] dated April 25, 2024

Indirect Tax – 

Goods & Services Tax

Case Laws:
  • Marketing/Recruitment/Referral of aspiring students to foreign universities/ colleges not ‘Intermediary Service’.
  • Rajasthan High Court dismisses challenge to recovery of GST on exhibition services received outside India. 
  • Provision of online subscription-based clinical database to AIIMS taxable under reverse
    charge and the recipient of service, being the importer of service, was liable to discharge the liability.