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THE EDGE
TAX & LEGAL UPDATE
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Vol 3, Part 52
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Saturday, March 30, 2019
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Fortnightly on GST, FSSAI, RERA & More...
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Ghiya Legal invites articles for publishing in THE EDGE.
Send your contributions to contact@ghiya.in.
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Vodafone India Ltd. v. Assistant Commissioner of Income-tax [2019] 103 taxmann.com 390 (Delhi - Trib.)
Matter remanded back to TPO to examine comparability analysis for determination of ALP of royalty fee paid by assessee, a telecommunication service provider, for use of Vodafone and Essar Trademark in terms of trademark licence agreement in view of inadequate facts about product comparability for technology for which trademark fees is paid as Royalty.
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AIG Offshore Systems Services Inc. v. Assistant Commissioner of Income tax International Taxation, Circle-1(1) Mumbai [2019] 103 taxmann.com 297 (Mumbai - Trib.)
Where assessee while computing long-term capital gain arising on sale of shares of its Indian subsidiary, claimed deduction of legal/professional fees paid to lawyers/accounting firms, in view of fact that services rendered by law firms were in relation to advise on sale of entire shareholding of Indian subsidiary and included preparation of share sale/purchase agreement, share transfer forms, etc., it could be concluded that expenditure was in relation to transfer of shares of Indian subsidiary and, thus, assessee's claim for deduction was to be allowed.
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Deputy Commissioner of Income-tax, Circle-2, Ahmedabad v. Shree Surat Jilla Leuva Patidar Samaj Trust [2019] 103 taxmann.com 395 (Surat-Trib.)
Where assessee applied income on charitable activities over and above its gross total income, no question of accumulation at rate of 15 per cent would arise
Where assessee received certain amount as voluntary donations towards corpus fund, such donations would be capital receipts, not includible in its income.
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M/s Seatel Electronics India Pvt. Ltd. vs. Income Tax Officer, Ward-2(1), Jaipur
The second proviso to Section 40(a)(ia) of the Act as introduced by the Finance Act, 2012 is retrospective.
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GST
Indian Oil Corporation Ltd., In re dated 08.03.2019 [2019] 103 taxmann.com 391 (AAAR-WEST BENGAL)
GST paid on transportation of non-taxable goods (Petrol) shall not be available to Indian Oil Corp Ltd.
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Kerala State Screening Committee on Anti-Profiteering v. Win Win Appliances dated 22.03.2019 [2019] 103 taxmann.com 406 (NAA)
Where applicant alleged profiteering by respondent on supply of product i.e. Matchless Plus TTWG Grinder stating that benefit of reduction in rate of tax from 28% to 12% was not passed on to customers, it was held that respondent had increased base price of product w.e.f. 15-11-2017 in spite of GST rate reduction from 28% to 12%, when he was legally bound to charge reduced prices so as to pass on benefit of reduced tax rate to its recipients, and, therefore, respondent had acted in contravention of provisions of section 171 and was directed to reduce price of product.
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H.M. Industrial (P.) Ltd. v. Commissioner, CGST and Central Excise [2019] 103 taxmann.com 258 (Gujarat)
Where Competent Authority for recovery of dues of Rs. 14.62 crores had provisionally attached bank accounts of assessee, since assessee had already reversed input tax credit to the tune of Rs. 13.28 crores, interest of revenue was sufficiently secured and, therefore, provisional attachment of bank accounts was no longer justified.
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CENTRAL EXCISE
Western Coalfields Ltd. v. Commissioner of Central Excise, Trichy [2019] 103 taxmann.com 235 (SC)
Where a manufacturer of goods paid excise duty under protest and after settlement of dispute by Supreme Court in favour of manufacturer, assessee, who was a buyer of goods from manufacturer, claimed for refund of duty paid by manufacturer under protest, period of limitation of six months as prescribed under section 11B would apply.
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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 and Section 194-IB in the month of February, 2019 |
30.03.19 |
| Due date for fling of revised Income tax Return for the F.Y. 2016-17 (A.Y. 2017-18) and for the F.Y. 2017-18 (A.Y. 2018-19) |
31.03.19 |
| Last date for filing of all pending Returns of GST without late Fees from July, 2017 to September 2018 |
31.03.19 |
| Last date for filing CMP-02 i.e. migration from regular GST Scheme to Composition Scheme for FY 2019-20 |
31.03.19 |
| Due date for linking of Aadhaar number with PAN |
31.03.19 |
| Due date for filing GSTR-1 for the Month of March |
11.04.19 |
| Due date for filing GSTR-4 for the period Jan to March |
18.04.19 |
| Due date for filing GSTR-3B for the month of March |
20.04.19 |
| Due date for filing GSTR-1 for the period Jan to March |
30.04.19 |
| Due date for furnishing the GSTR-9, GSTR-9A and GSTR-9C for the FY 2017–18 |
30.06.19 |
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NOTIFICATIONS / AMENDMENTS
CUSTOMS (TARIFF)
Notification No. 07/2019– Customs dated 15.03.2019:
Seeks to amend notification No. 152/2009-Customs dated 31.12.2009 so as to grant tariff concession in respect of goods under tariff sub heading 4809 90 imported from Korea RP under the India-Korea Comprehensive Economic Partnership Agreement (CEPA).
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Notification No. 08/2019-Customs dated 25.03.2019:
Seeks to extend the exemption from Integrated Tax and Compensation Cess upto 31.03.2020 on goods imported against AA/EPCG authorizations.
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Notification No. 09/2019-Customs dated 25.03.2019:
Amendment to Notification No.52/2003-Customs dated 31.03.2003 for extending exemption from IGST and compensation cess to EOUs on imports till 31.03.2020
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CUSTOMS (NON-TARIFF)
Notification No. 22/2019- Customs (N.T.) dated 15.03.2019:
Amendment to the Notification No. 63/1994-Customs (N.T) dated 21st November, 1994, by notifying Dera Baba Nanak LCS.
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Notification No.23/2019-CUSTOMS (N.T.) dated 15.03.2019:
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver- Reg.
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Notification No.24/2019-CUSTOMS (N.T.) dated 20.03.2019:
Exchange Rates Notification No.24/2019-Custom(NT) dated 20.03.2019.
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Notification No.25/2019-Customs (N.T.) dated 25.03.2019:
Amendment to Notification No.52/2003-Customs dated 31.03.2003 for extending exemption from IGST and compensation cess to EOUs on imports till 31.03.2020.
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ANTI DUMPING DUTY
Notification No. 13 /2019-Customs (ADD) dated 14.03.2019:
Seeks to prescribe provisional assessment for 'Saturated Fatty Alcohols' when originating in or exported from subject countries by M/s PT. Energi Sejahtera Mas (producer) Indonesia through M/s Sinarmas Cespa Pte Ltd (exporter/trader) Singapore and imported into India.
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Notification No. 14 /2019-Customs (ADD) dated 25.03.2019:
Seeks to impose anti-dumping duty on 'Acetone', originating in or exported from European Union, Singapore, South Africa and United States of America.
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A is a Supplier of goods registered under Composition Scheme and dealing in supply of exempt goods worth Rs. 5,00,000.00 and taxable goods worth Rs. 15,00,000. On what amount A is liable to pay tax?
A: Rs. 20,00,000
B. Rs. 15,00,000
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Last date to participate: April 02, 2019
PREVIOUS WEEK'S WINNERS
Manoj Runwal, Nagaur
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TREATMENT OF SALES PROMOTION SCHEMES UNDER GST
It is a general trade practice to offer discounts by the businessmen to their customers, stockists, etc in order to increase sales volume or attract new customers for products. The same was being excluded from the taxable value in the earlier regime and the same is excluded under the GST regime also subject to the conditions listed in Section 15(3). There is no confusion with respect to the pre-determined discounts which are already decided before or at the time of Supply. However, there are several discount schemes being offered wherein it is difficult to ascertain whether the value of the discounted amount is to be included in the taxable value or not. The Department vide their Circular No. 92/11/2019-GST dated 07.03.2019 has clarified certain scenarios where discounts are being given and whether it is to be excluded from the taxable value or not. The department has also clarified whether ITC can be taken on the inputs used in supply of such goods or services or not. The different scenarios are summarized in a tabular form hereunder:
| S.No |
SCHEME |
EXCLUDED FROM TAXABLE VALUE |
ITC AVAILABLE |
| 1 |
Free samples and gifts |
Yes |
No |
| 2 |
Buy one get one free |
No(supplying 2 goods in price of one) Taxability according to whether it is treated as a mixed Supply or Composite Supply |
Yes |
| 3 |
Buy More, Save More |
Yes, when conditions of S. 15(3)(b) are satisfied and Credit is reversed on such goods by recipient |
Yes (to Supplier) |
| 4 |
Secondary Discount (Post-Sale discounts / which are not known at the time of or before sale) Given by way of Credit Notes |
No (Value of Supply not to be reduced except for transactions where conditions of S. 15(3)(b) are satisfied) |
No Impact |
Therefore, by way of this circular, the Department has tried to give clarity on various issues which the taxpayers were facing with respect to various promotion schemes they are offering to their customers. For Further clarification, kindly refer to the aforementioned Circular.
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PIB Press Release dated 20.03.2019:
Fifteenth Finance Commission holds meeting on issues of Environment, Forest and Climate change.
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PIB Press Release dated 19.03.2019:
Decisions taken by the GST Council in the 34thmeeting held on 19thMarch, 2019 regarding GST rate on real estate sector.
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PIB Press Release dated 15.09.2019:
Signing of Bilateral Agreement for Exchange of Country-by-Country (CbC) Reports between India and the USA.
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PIB Press Release dated 13.03.2019:
MCA releases national guidelines on responsible business conduct.
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Editorial Team :
Meenal Ghiya, Priyamvada Joshi & Deepak Garg
Disclaimer: "The Edge" is meant for informational purpose only and does not claim to be advice or opinion, legal or otherwise, whatsoever. The information provided is not intended to create any advocate-client relationship and is not for advertising. The views expressed by the Author(s) are their personal views.
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