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THE EDGE
TAX & LEGAL UPDATE

 

 

Vol 3, Part 50

Thursday, Feb 28, 2019

Fortnightly on GST, FSSAI, RERA & More...

 

Ghiya Legal invites articles for publishing in THE EDGE.

 

Send your contributions to contact@ghiya.in.

 

 

BUSINESS VERTICAL – A BYGONE CONCEPT?

 

With the introduction of CGST Act, 2017 a concept of Business Vertical was introduced vide Section 2(18) by way of which there was an attempt made to classify different businesses run by the same Taxpayer and to allow obtaining separate registration for each separate Business Vertical in the same State. Now, with the amendment to the CGST Act, 2018 the said Sub-Section has been done away with and the concept is removed from the law. An amendment has also been introduced in Proviso to Section 25(2) whereby it is stated that for every separate place of business within a State or Union Territory, the taxable person may be granted separate registration for each such place of business. Therefore, now there is no restriction on obtaining multiple registrations within a State / Union Territory even when the nature of business is the same. The correcponding Rule 11 of the CGST Rules, 2017 has also been substituted allowing multiple registrations to taxpayers having multiple places of business within a State. Benefit of transfer of Input Tax Credit within such firms has also been granted.

 

 

◔ TIMELINES

 

Upcoming due dates under GST & Income Tax Laws:

 

Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IA in the month of January, 2018 2nd March 2019
Due date for furnishing of challan-cum-statement in respect of tax deducted under Section 194-IB in the month of January, 2018 2nd March 2019
Due date for deposit of Tax deducted/collected for the month of February, 2018. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan. 7th march 2019
GSTR-1 for Taxpayers having turnover more than 1.5 Cr. for February, 2019 11th March 2019
GSTR-6 for Input Service Distributors for February, 2019 13th March 2019
Due date for issue of TDS Certificate for tax deducted under Section 194-IA and Section 194-IB in the month of January, 2018 15th March 2019
Fourth installment of advance tax for the assessment year 2018-19. 15th March 2019
GSTR-5 – Monthly return and payment of tax by Non-Resident Foreign Taxpayer for February, 2019 20th March 2019
GSTR5A – Monthly return and payment of tax by Non-Resident OIDAR Service Provider for February, 2019 20th March 2019
GSTR-3B (February, 2019) 20th March 2019
Due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 30th March 2019

 

NOTIFICATIONS / AMENDMENTS

 

CUSTOMS

 

Notification No. 05/2019-Cus,dt. 16-02-2019 -
seeks to insert tariff item 9806 00 00 in chapter 98 of the First schedule to Customs tariff act, 1975 to impose basic customs duty of 200% on all goods originating in or exported from Pakistan. Read More

 

Notification No. 06/2019-Cus,dt. 26-02-2019 -
Seeks to further amend notification No. 50/2017-customs dated 30th June 2017 to postpone the implementation of increased customs duty on specified imports originating in USA from 2nd March, 2019 to 1st April, 2019. Read More

 

CUSTOMS – NON-TARIFF

 

Notification No. 10/2019-CUSTOMS (N.T.) dt. 15.02.2019 -
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver. Read More

 

Notification No. 11/2019-Cus (NT) dt. 15.02.2019 -
Exchange Rates Notification No.11/2019-Custom(NT) dated 15.02.2019. Read More

 

Notification No. 12/2019-Cus (NT) d.t 16.02.2019 -
Regarding amendment in notification No. 95/2018-Cus (N.T.) dated 06.12.2018 relating to AIRs of Duty Drawback. Read More

 

Notification No. 13/2019-Cus (NT) d.t 21.02.2019 -
Exchange rates notification No.13/2019 dated 21.02.2019 Read More

 

Notification No. 14/2019-Cus (NT) d.t 26.02.2019 -
Administrative changes in the jurisdiction of Chief Commissioner Customs Zone II Mumbai. Read More

 

Notification No. 15/2019-Cus (NT) d.t 27.02.2019 -
Substitution of BE & SB format is Courier 2010. Read More

 

Notification No. 16/2019-Cus (NT) d.t 27.02.2019 -
Substitution of CSB V form in Courier regulations, 1998. Read More

 

Notification No. 17/2019-Cus (NT) d.t 27.02.2019 -
Postponing the date of coming into force of Sea cargo and Manifest and Transhipment Regulations, 2018 from 1st March 2019 to 1st August 2019. Read More

 

ANTI-DUMPING DUTY

 

Notification No. 12/2019-Cus (ADD), dt. 26-02-2019 -
Seeks to impose definitive anti-dumping duty on "Textured Tempered Coated and Uncoated Glass" originating in or exported from Malaysia. Read More

 

CUSTOMS – CIRCULARS

 

Circular No. 05/2019 dated 20.02.2019 -
Amendment to All Industry Rates of duty drawback effective from 20.02.2019. Read More

 

Circular No. 06/2019 dated 20.02.2019 –
Rescinding Board Circular No. 132/95-Customs dated 22nd December, 1995": reg. Read More

 

Circular No. 07/2019 dated 20.02.2019 –
Discontinuation of printing of Advance Authorisations/Export Promotion Capital Goods (EPCG) Authorisations on security paper by DGFT for authorisations issued with EDI ports as port of registration. Read More

 

Circular No. 08/2019 dated 20.02.2019 –
Issues related to carriage of coastal cargo from one Indian port to another port in foreign going vessels/coastal vessels through foreign territory regarding. Read More

 

Circular No. 09/2019 dated 20.02.2019 –
Turant Customs-Next generation reform for Ease of Doing Business - reg Read More

 

CENTRAL TAX

 

Notification No. 09/2019-Central Tax dated 20.02.2019 -
Seeks to extend the due date for furnishing FORM GSTR-3B for the month of January, 2019 to 28.02.2019 for registered persons having principal place of business in the state of J&K; and 22.02.2019 for the rest of the States. Read More

 

CENTRAL TAX – CIRCULAR

 

Circular No. 89/08/2019-GST dated 18-02-2019 -
Seeks to clarify situations of mentioning details of inter-State supplies made to unregistered persons in Table 3.2 of FORM GSTR-3B and Table 7B of FORM GSTR-1. Read More

 

Circular No. 90/09/2019-GST dated 18-02-2019 -
Seeks to clarify situations of compliance of rule 46(n) of the CGST Rules, 2017 while issuing invoices in case of inter- State supply. Read More

 

Circular No. 91/10/2019-GST dated 18-02-2019 -
Seeks to give clarification regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018. Read More

 

WEEKLY QUIZ

 

 

The Customs Duty has been increased to ___% on all goods originating from the Islamic State of Pakistan.

A: 100%

B. 200%

Click here

Last date to participate:
Mar 03, 2018

 

PREVIOUS WEEK'S WINNERS

 

Naveen Kumar Pahuja, Jabalpur (MP)
Shailesh L Mahesuria, Deesa (GUJ)
Ujjwal Goyal, Alwar (RAJ)

 

 

ITAT JUDGEMENTS

 

JAIPUR BENCH

 

Shri Uttam Chand Gangwal M/s Adinath Stones, Ajmer vs. ACIT, CPC (TDS), Ghaziabad
The Jaipur bench of the Income Tax Appellate Tribunal (ITAT) has held that the late fee can be levied for delay in filing TDS Statement for the period after 1.6.2015 if there is a continuing default even after the said date. The bench further deleted late fee levied prior to 1.6.2015 as there was no power on the Assessing Officer to levy the same. Read More

 

PUNE BENCH

 

Murtuza Shabbir Jamnagarwala, Pune vs. ITO, Ward-4(5), Pune
The ITAT, Pune bench has held that the Jirayat land is cultivable land and therefore, can be treated as agricultural land for the purpose of granting exemption under the Income Tax Act, 1961. The Tribunal relied on the commentary by A.K. Gupte on “Maharashtra Land Revenue Code, 1966” and considered the term “Jirayat” as defined on page 20 of the commentary to mean dry crop land, which means “the cultivation mainly depends upon annual rainfall”. Read More

 

DELHI BENCH

 

ACIT, Circle-76(1), New Delhi vs The Indian Hotels Company Ltd., (Taj Palace-Delhi), New Delhi
The Income Tax Appellate Tribunal (ITAT), Delhi bench has held that the provisions of tax deduction at source (TDS) under section 194H of the Income Tax Act, 1961 are not applicable to credit card commission paid to Banks. Read More

 

COCHIN BENCH

 

The Thiruvalla East Co-operative Bank Ltd., Thiruvalla vs. The Income Tax Officer, Ward-3, Thiruvalla.
The Income Tax Appellate Tribunal (ITAT), Cochin, has held that the provision for gratuity made for the benefit of the retired employees can’t be disallowed under Section 43B of the Income Tax Act, 1961. Read More

 

MUMBAI BENCH

 

AIG Offshore Systems Services Inc., C/o Deloitte Haskins & Sells LLP, Mumbai vs. Asst. Commissioner of Income Tax International Taxation Circle–1(1), Mumbai
The Income Tax Appellate Tribunal (ITAT) Mumbai bench has allowed the deduction to the fees paid to legal and professional fees in connection with the transfer of shares. Read More

 

 

FROM THE BENCH

 

 

Provident Fund

 

Supreme Court delivered a landmarking and long awaited judgment. PF is applicable on basic salary plus all allowances. Read More

 

Income Tax

 

Principal Commissioner Of Income Tax-7 vs. M/S. Oracle (OFSS) BPO Services Ltd.
The Delhi High Court held that the amended 80A (5) cannot be read as a stipulation barring and restricting the assesse from revising the computation/claim for deduction made in accordance with Section 80A (5) of the Income Tax Act. Read More

 

GST

 

M/S Torque Pharmaceuticals Pvt. Ltd. vs. Union of India & Others
The Allahabad High Court, on Wednesday, asked the State Government about the steps taken by it for the formation of the GST Appellate Tribunal in the State. “In this matter learned counsel for the G.S.T. Council is unable to tell as to whether the Tribunal is constituted or not. Learned standing counsel appearing for the State is also unable to tell as to whether the State has moved in the matter or not,” the bench said. Read More

 

GST ADVANCE RULING

 

In re, Vedika Exports Tea Pvt. Ltd
The Authority for Advance Rulings (AAR), West Bengal has ruled that the manufacturing of tea bags by the contract would be subject to 5% GST. Read More

 

In re, Nipha Exports (P.) Ltd.
Input tax credit on inward supply of ambulance, being a motor vehicles, is not admissible under section 17(5)(a) and exception carved out under section 17(5)(b)(iii)(A) for services which are obligatory for an employer to provide to its employees under any law for time being in force is limited only to rent-a-cab, life insurance and health insurance and, hence, input tax credit is not admissible on ambulance purchased in November 2018, as section 17(5) of GST Act, as it stood in relevant period, blocks any such enjoyment, even though provisioning of ambulance service to employees is obligatory under Factories Act, 1948. Read More

 

SALES TAX

 

M/S. Tata Motors Ltd. vs. The Deputy Commissioner of Commercial Taxes (Spl) & Anr
A two-judge bench of the Supreme Court has referred the issue of leviability of sales tax on free replacement of defective parts during the warranty period. “We are not delving into the controversy in any further detail as we are of the opinion that the issue raised is required to be looked into by a larger Bench. The crucial point which would arise for consideration, and over which the matter needs to be debated, is as to whether, in the case of such a warranty for the supply of free spare parts; once the replacement is made, and the defective part is returned to the manufacturer, sales tax would be payable on such a transaction relating to the spare part, based on a credit note, which may be issued for the said purpose” the bench said. Read More

 

 

 

MISCELLANEOUS

 

  • Press Release by PIB dated 27.02.2019:
    Income Tax Department hits at terror financing activities in J&K Region. Read More
  • Press release by PIB dated 26.02.2019:
    Monthly Account of the Government of India up to the month of January 2019 for the Financial Year 2018-19 published. Read More
  • Press release by PIB dated 25.02.2019:
    Successful Operationalisation of Electronic Transfer of Funds to a Large Number of Farmer Beneficiaries under the Scheme PM Kisan Samman Nidhi (PM-KISAN) with in a short timeline through Public Finance Management System (PFMS): A Historic Achievement. Read More
  • Press release by PIB dated 24.02.2019:
    Recommendations of the 33rd GST Council meeting. Read More

 

 

 

Editorial Team : Meenal Ghiya, Priyamvada Joshi & Deepak Garg

 

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