Taxpayers To File Previous Tax Periods GSTR-1 Before Filing Current Period GSTR-1: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has announced the important changes that have been made in the return filing process.The CBIC stated that the taxpayers need to file previous tax periods on GSTR-1 before filing the current period on GSTR-1. GSTR-1 for the current period needs to be filed before filing GSTR-3B for the tax period.Form GSTR-1 is a statement of outward supplies that are filed on a quarterly basis by QRMP taxpayers or on a monthly basis by other taxpayers. All...

Reassessment Notice Based On Error Resulting From Oversight Of AO Is Not Valid: Delhi High Court

The Delhi High Court has held that the reassessment notice based on an error resulting from the oversight of the assessing officer is not valid.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has relied on the decision of the Supreme Court in the case of Gemini Leather Stores v. Income Tax Officer, in which it was held that where the Income Tax Officer has all the material before him and has framed the original assessment, it is not open for him to take recourse to Section...

Intentional Short Payment Of Excise Duty: CESTAT Upholds Penalty

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has upheld the penalty under Section 11AC of the Central Excise Act, 1944, on the ground of intentional short payment of excise duty.The bench of Ramesh Nair (judicial member) observed that once the appellant had obtained the NOC and the unit was debonded, they intentionally avoided the payment of short duty. It was only by pointing out the audit that the appellant had paid the duty. The appellant knew that...

Software Development Expenses For Rendering Services To Clients Is Revenue Expense: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has held that the software development expenses for rendering services to clients are revenue expenses.The two-member bench of Vikas Awasthy (Judicial Member) and Gagan Goyal (Accountant Member) has observed that the expenditure has been incurred in the regular course of business of the assessee and for earning revenue and profits, hence the expenditure is on the revenue account.The assessee/appellant is in the business of process...

No Service Tax Payable On Facility Charges Attributable To Electricity Expenses: CESTAT

The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that service tax is not payable on the amount received as facility charges as it was wholly attributable to electricity expenses, which have been shared proportionately by the assessee and its sister concerns.The bench of Anil Choudhary (judicial member) has observed that electricity is a good and not a service. Thus, it is outside the scope of service tax.The appellant/assessee are the publishers and...

Payment Made To Non-Resident Marketing Partners for Sale Services is FTS: ITAT

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held that payment made by the assessee to non-resident marketing partners for providing pre and post-sale services related to software solutions is in the nature of fees for technical services (FTS).The two-member bench of V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member) has observed that since the assessee has failed to deduct TDS when payments are made to non-residents, the CIT(A) has rightly disallowed...

ITAT Restricts Addition To Estimated Profit Of 30% Of Cash Deposits Made During Demonetisation Period

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to estimate a 30% net profit on total cash deposits made during the demonetization period and deleted the balance additions made under Section 69A of the Income Tax Act.The two-member bench of V. Durga Rao (Judicial Member) and G. Manjunatha (Accountant Member) observed that neither the assessee proved its arguments for the cash deposits nor the AO reached the conclusion that the explanation offered by the assessee...

Assessment Made To Best Of Judgment Of Authority Would Not Be Sufficient For Imposition Of Penalty: Madras High Court

The Madras High Court has held that the assessment made to the best of the authority's judgement would not be sufficient for the imposition of penalty, as the degree of proof required for the imposition of penalty is much higher than that required for the purpose of framing a best judgement assessment.The single bench of Justice Anita Sumanth has observed that the petitioner has admittedly remitted the difference in tax along with interest even at the time of inspection. The imposition of a...

ITAT Is Last Fact Finding Authority And Bound To Follow Directions Issued By High Court in Pith and Substance: Rajasthan High Court

The Rajasthan High Court has held that the Income Tax Appellate Tribunal (ITAT) is the last fact-finding authority and is bound to follow the directions issued by the High Court in pith and substance.The division bench headed by Chief Justice Pankaj Mithal and Justice Anoop Kumar Dhand has held that the direction of the High Court in remanding the matter to the Tribunal was to verify the distance of the land from the outskirts of the city and, if necessary, take the help of the Revenue...

GST Not Payable On Notice Pay Recovery From Outgoing Employee: Punjab AAR

The Punjab Authority of Advance Ruling (AAR) has held that the GST is not payable on notice pay recovered from outgoing employees.The member bench of Sunder Lal and Kumud Singh has observed that the amount received as notice pay recovery by the applicant from the employees who leave the applicant company without serving the mandatory notice period mentioned in the employment contract is not a consideration for any supply or service.The applicant is a multi-disciplinary consulting organisation...

Activities Carried Out by Sub-Contractor For Shifting Electrical Utilities Can't be Regarded as Composite Supply of Works Contract: AAR

The West Bengal Authority for Advance Ruling (AAR) has held that activities carried out by subcontractors for the shifting of electrical utilities for the construction of roads cannot be regarded as a composite supply of works contracts.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that providing services of shifting electrical utilities alone cannot be regarded as providing services by way of road construction.The applicant is in the business of rendering various...

Liquidated Damages Recoverable From Bi-electric India For Delay In Commissioning, Doesn't Qualifies As Supply, No GST Payable: AAAR

The Telangana Appellate Authority of Advance Ruling (AAAR) has held that liquidated damages recoverable by the applicant from Bi-electric India on account of delay in commissioning do not qualify as a "supply" and no GST is payable.The two-member bench of B.V. Siva Naga Kumari and Neetu Prasad has observed that the amount paid as "liquidated damages" is an amount paid only to compensate for the injury, loss, or damage suffered by the aggrieved party due to a breach of contract. There is no...