Tax INFORM- September 2023

The thirty-third 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:

• Indian entity’s dividend income from its Oman ‘Permanent Establishment’ under DTAA is not taxable in India: Supreme Court.
• Section 80-IC deduction once allowed in initial Assessment Years, is also allowable in subsequent AYs: Calcutta HC.

Notifications/ Circulars:

• CBDT notifies amendments to Rule 11UA for share valuation under Section 56(2) (viib) of the Income-Tax Act, 1961, via Notification No. 81/2023 dated September 25, 2023.
• CBDT expands the list of IFSC-recognised stock exchange securities eligible for tax exemption.
• CBDT notifies Form 71, enabling taxpayers to claim TDS credit for income declared in the previous year.
• Corrigendum to include leased or rented house for valuing rent-free accommodation.
• CBDT notifies Rules and Forms for search & seizure provisions.
• CBDT extends the deadline for audits of charity institutions and ITR-7 filings to October 31 and November 30, 2023.

Indirect Tax – 

Goods & Services Tax

Case Laws:

• Gujarat HC grants bail in GST evasion case, cites non-issuance of notice by the GST Authority. 
• AAAR holds that mixing perfume (not Jarda scent) with raw tobacco without fermentation does not amount to manufacture.
• AAR confirms the eligibility of ITC on inward supply of structural support of plants and equipment.

Notifications:

• Revenue Department establishes state benches of GST Appellate Tribunals.
• Revenue Department notifies the date for implementation of special procedure for manufacturers of pan masala and tobacco goods.