Chennai Metro Rail Responsible For TDS Deduction And Not Work-Contractors: Madras High Court

The Madras High Court has held that Chennai Metro Rail Ltd. (CMRL) is responsible for TDS deduction and not work contractors.The bench of Justice C. Saravanan has observed that if CMRL had failed to deduct the amounts under Section 13(1) of the TNVAT Act, 2006, machinery under Section 13(8) of the TNVAT Act, 2006, is to be directed only against CMRL. Therefore, to that extent, the impugned notices are without jurisdiction. The 2% demand proposed in the notices is to be directed only against CMRL...

Limitation Act And Tax Appeals | Allahabad High Court Rejects Application Under Limitation Act, Holds Tax Statue Will Prevail

The Allahabad High Court has rejected the application of Section 5 of the Limitation Act in appeals filed under Section 107 of the Uttar Pradesh Goods and Service Tax Act, 2017. The Court held that Tax laws are complete comprehensive codes which have strict procedural requirements to ensure revenue certainty and fiscal stability.Section 107 of the UPGST Act provides a period of three months from the date of order to file an appeal challenging the same. Section 107(4) empowers the appellate...

TDS Prosecution Can't Be Initiated Against Any Office Holder In Corporate Without Establishing Administrative Connection: Delhi High Court

The Delhi High Court has held that TDS prosecution can't be initiated against any office holder in a corporation without establishing an administrative connection.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar has observed that merely because a person holds an office in a corporate entity, it would not be sufficient to place him as a principal officer until and unless he is established to be connected with the management or administration of the company. The bench stated that...

GST Leviable On Export Of Pre-Packaged And Labelled Rice Upto 25 Kgs. To Foreign Buyer: AAR

The Andhra Pradesh Authority of Advance Ruling (AAR) has ruled that GST would be levied on the export of pre-packaged and labelled rice up to 25 kg to foreign buyers.The bench of K. Ravi Sankar and B. Lakshmi Narayana has observed that the ultimate buyer is not present and the commodity is being pre-packed for an unknown ultimate buyer. The buyer from the applicant is reselling the same to another buyer, be it export or indigenous. The bench agreed with the observation regarding the...

Reversal Of Cenvat Credit In Respect Of Common Input Services Sufficient For Compliance With Cenvat Credit Rules, 2004: CESTAT

The Mumbai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that reversal of Cenvat credit in respect of common input services by the appellants is sufficient for compliance with the Cenvat Credit Rules, 2004.The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) has observed that the appellants cannot be forced to avail of the option of payment of the prescribed percentage of the value of exempted services in terms of Rule 6(3).The...

GSTN Issues Advisory On Enhanced E-Invoicing Initiatives And Launches Enhanced E-Invoice Portal

The Goods and Service Tax Networks (GSTN) have issued an advisory on enhanced e-invoicing initiatives and launched an enhanced e-invoice portal.The GSTN, on occasion of one year of successful going live with the additional five new IRP portals, the e-invoice master information portal, and the e-invoice QR Code Verifier app, announced the launch of the revamped e-invoice master information portal, https://einvoice.gst.gov.in. This enhancement is part of an ongoing effort to further improve...

Mere Deduction Of TDS By Donor On Grants Would Not Disentitle The NGO From Sections 11 Exemption: Delhi High Court

The Delhi High Court has held that a mere deduction of TDS by a donor on grants would not disentitle the assessee-NGO from exemption under Section 11 of the Income Tax Act.The bench of Justice Yashwant Varma and Justice Purushaindra Kumar Kaurav, while allowing the petition, set aside the assessment order and held that the receipt of Rs. 5.90 crore shall not be treated as income and allowed the claim of the assessee under Sections 11 and 12 of the Income Tax Act.The petitioner/assessee is a...

Interest Paid On Loan Taken To Invest In Shares Of Subsidiary In Normal Course Of Business Activities Is Allowable Expenditure: Bombay High Court

The Bombay High Court has held that if an assessee for commercial expediency and in the normal course of its business activities takes loan to invest in shares of its subsidiary, the interest paid on these advances utilised is allowable expenditure under Section 36(1)(iii) of the Income Tax Act.The bench of Justice K. R. Shriram and Justice Neela Gokhale has observed that assessee had an aggregate shareholding of 64% in the subsidiary and, therefore, it cannot be contended that share application...

Change Of Opinion Does Not Constitute Justification For Assuming Income Chargeable To Tax ; Bombay High Court

The Bombay High Court has held that the reopening of the assessment was purely on the basis of a change of opinion of the AO from that held earlier during the course of assessment proceedings. The change of opinion does not constitute justification for assuming that income chargeable to tax has escaped assessment.The bench of Justice K. R. Shriram and Justice Dr. Neela Gokhale has observed that the AO in the assessment order has noted that the issue of investment in immovable property and...

Service Tax From 16.06.2005 to 26.07.2009 Not Leviable On Services Of Repair And Maintenance Of Roads: CESTAT

The Banglore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax during the period from 16.06.2005 to 26.07.2009 is not leviable under maintenance and repair service in relation to the repair and maintenance of roads.The bench of D.M. Misra (Judicial Member) and R. Bhagya Devi (Technical Member) has relied on the judgments of Allahabad High Court in Delta Erectors Pvt. Ltd. vs. UOI and Madhya Pradesh High Court in the case of M. P. Audhyogik Kendra...

Stamp Value As On Date Of Agreement Of Sale Of Property Has To Be Considered For Applicability Of Section 56(2)(vii)(b): ITAT

The Delhi Bench of Income Tax Appellate Tribunal (ITAT) has held that stamp value as on the date of agreement of sale of the property, in the year 2010 (i.e., Rs. 1.4 Cr), has to be considered for the applicability of Section 56(2)(vii)(b) of the Income Tax Act.The bench of Challa Nagendra Prasad (Judicial Member) and B. R. R. Kumar (Accountant Member) has deleted the addition of Rs. 40.45 lakhs made under Section 56(2)(vii)(b). The bench noted that the assessee entered into an agreement fixing...

Yoga And Meditation Charges Are Subjected To Tax Under Kerala Tax On Luxuries Act: Kerala High Court

The Kerala High Court has held that yoga and meditation charges are subjected to tax under the Kerala Tax on Luxuries Act.The bench of Justice A. K. Jayasankaran Nambiar and Justice Kauser Edappagath has upheld the tribunal's ruling in which the tribunal differentiated between the incomes, allowing certain deductions for the cost of medicines and professional charges related to ayurvedic treatments while including yoga and meditation charges and miscellaneous income in the taxable turnover. The...