Tax
Tax Cases Monthly Round-Up: July 2023
Indirect Tax Supreme Court Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court Case Title: Commissioner of Service Tax-IV vs Prime Focus Ltd. Citation : 2023 LiveLaw (SC) 561 The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the 3D conversion services provided by the assessee, including services such as ‘imparting ...
Madras High Court Directs FinMin, CBDT To Decide On Exempting Agricultural Cooperative Credit Societies From TDS Deduction
The Madras High Court has directed the Finance Ministry and Central Board of Direct Taxes (CBDT) to take action on exempting primary agricultural cooperative credit societies from TDS deduction on cash withdrawals received from the Central Cooperative Bank for distribution to the beneficiaries.The bench of Justice R. Suresh Kumar has disposed of the writ petitions with a direction that a further time of six weeks be granted within which the Ministry of Finance, the Government of India, and the...
“Cloud Service Fee” Received By Amazon From Customers In India Is Not Taxable As Royalty, FTS, FIS: ITAT
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that cloud computing services provided by Amazon Web Services cannot be held liable to tax in India as royalty and fee for technical or included services (FTS/FIS).The bench of G.S. Pannu (President) and Astha Chandra (Judicial Member) has observed that the AWS services provided by Amazon are standardised services that do not provide any technical services to its customers nor satisfy the 'make available' test as the customer...
28% GST On Online Gaming: 51st GST Council Recommends Laws To Provide Clarity
The 51st GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Nirmala Sitharaman via video conferencing in New Delhi.The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.The GST Council in the 50th meeting had deliberated on the Second Report of the Group of Ministers (GoM) on Casinos,...
ATM Management Service To Banks Are Pure Services, No VAT Payable: Karnataka High Court Quashes Re-assessment
The Karnataka High Court has quashed the re-assessment and held that ATM management services to banks are pure services and will not attract Value Added Tax (VAT).The bench of Justice S.R. Krishna Kumar has observed that the transaction is a pure service transaction, not entailing any transfer of property or effective control of the goods to the recipient. The various terms of the Agreements with the Banks disclose that the only intent of the contract is the provision of ATM management services,...
CBIC Waives The Requirement Of Mandatory GST Registration For Person Supplying Goods Through ECOs
The Central Board of Indirect Taxes and Customs (CBIC) has waived the requirement of mandatory registration under section 24(ix) of CGST Act for persons supplying goods through electronic commerce operator (ECOs), subject to certain conditions with effect from 1 October, 2023.The has notified that persons making supplies of goods through an electronic commerce operator who is required to collect tax at source and having an aggregate turnover in the preceding financial year and in the current...
CBIC Notifies Annual Return Filing Exemption For Taxpayers Having Aggregate Turnover Upto Rs. 2 Crore in FY 2022-23
The Central Board Of Indirect Taxes and Customs (CBIC) has sought to exempt the registered person whose aggregate turnover in the financial year 2022-23 is up to Rs. 2 crores.“In exercise of the powers conferred by the first proviso to section 44 of the Central Goods and Services Tax Act, 2017, the Commissioner, on the recommendations of the Council, hereby exempts the registered person whose aggregate turnover in the financial year 2022-23 is up to two crore rupees, from filing annual return...
Pre-Deposits Not A Prerequisite Condition For Filing Appeal In GSTAT: CBIC
The Central Board of Indirect Taxes and Customs (CBIC) has notified that no taxpayer will have to pay pre-deposits as a prerequisite condition for filing an appeal in the Goods and Service Tax Appellate Tribunal (GSTAT).The Board has issued the notification pursuant to the directions of the Supreme Court in the case of Union of India v/s Filco Trade Centre Pvt. Ltd.While notifying the procedure of appeal, the CBIC has stated that an appeal against the order shall be made duplicate in the Form...
Un-Fried Extruded Snack Pellets Attracts 5% GST, Ready- To-Eat Extruded Snack Pellets Attracts 18%: CBIC
The Central Board of Indirect Taxes and Customs (CBIC), on the recommendation of the 50th GST Council meet issued a clarification regarding GST rates and classification of certain goods.The board has notified that the supply of un-cooked/un-fried extruded snack pellets, by whatever name called, falling under CTH 1905 will attract 5% GST with effect from 27th July 2023. However, extruded snack pellets in the ready-to-eat form will continue to attract 18% GST.Fish-soluble paste attracted 18% GST....
6% More GST Is Payable If Construction Services Are Not Under Affordable Residential Apartments: Kerala AAR
The Kerala Authority Of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST. On the other hand, for residential apartments other than affordable ones, the rate of GST is 7.5%.The bench of S.L. Sreeparvathy and Abraham Renn S. has observed that the term affordable residential apartment shall mean a residential apartment in a project that commences on or after April 1, 2019, or in an ongoing project in respect of which the promoter has not exercised the option in...
Half-Yearly Digest Of Tax Cases: January-June, 2023
Indirect Taxes Supreme Court No Service Tax Applicable on User Development Fee collected From Passengers by Delhi, Mumbai and Hyderabad International Airports: Supreme Court Case Title: Central GST Delhi – III vs Delhi International Airport Ltd Citation : 2023 LiveLaw (SC) 457 The Supreme Court has ruled that the “user development fee” (UDF) levied and collected by the airport operation, maintenance, and development entities from passengers departing the concerned...
Tax Cases Weekly Round-Up: 23 July To 29 July, 2023
Supreme Court Special Effects & 3D Conversion Services Are Not ‘Video-Tape Production’ Services Under S. 65(120) Of Finance Act, 1994: Supreme Court Case Title: Commissioner of Service Tax-IV vs Prime Focus Ltd. Citation : 2023 LiveLaw (SC) 561 The Supreme Court has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that the 3D conversion services provided by the assessee, including services such as ‘imparting special effects’,...