Interest Payment On Late Payment Of TDS Not Eligible For Deduction Under Business Expenditure: ITAT

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that interest payment on late payment of TDS is not an eligible business expenditure for deduction and it is not compensatory in nature.The two-member bench of A. D. Jain (Vice President) and Dr. B. R. R. Kumar (Accountant Member) has observed that the payment of interest on late deposit of TDS levied u/s 201(1A) is neither an expenditure only and exclusively incurred for the purpose of the business nor a...

No Customs Duty On Spare Parts Supplied For Warship: CESTAT

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the spare parts supplied for warships are exempt from customs duty.The two-member bench of Ramesh Nair (Judicial Member) and Raju (Technical Member) has observed that the interceptor boat supplied by the appellant was a warship. The intercepted boats used by the Coast Guard Ministry of Defence Government of India are only for the security of the coastal border of the country and the boats...

Aircraft Operator To Transfer The Passenger's Information To Designated Customs Systems By Push Method: CBIC

The Central Board of Indirect Taxes and Customs (CBIC) has notified the Passenger Name Record Information Regulations, 2022.As per the Regulations, the National Customs Targeting Centre-Passenger was established by the Board to receive and process passenger name record information along with any other information relevant for risk analysis of passengers. It will be done for the purpose of the prevention, detection, investigation, and prosecution of offences. The CBIC in the regulation...

Retracted Statement Cannot Simply Be Brushed Aside : CESTAT

The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the contents of the retracted statement cannot simply be brushed aside to conclude that the assessee/appellant has indulged in the activity of undervaluation of goods.The two-member bench of S.K. Mohanty (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that merely because an assessee has, under the stress of investigation, signed a statement admitting tax liability and...

Activity Of Mediator Cannot Fall Under Business Consultant Services, No Service Tax Under RCM Applicable: CESTAT

The Kolkata Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that the activity of a mediator cannot fall under business consultant services.The two-member bench of P. K. Choudhary (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that the appellants/assessee are not liable to pay any service tax on the reverse mechanism on the services rendered by the mediator. The appellant/assese were admitted to the Board for Industrial and...

GST On House Rent: Do All Tenants Have To Pay 18% GST?

The 47th GST Council meeting, presided over by Union Finance Minister Nirmala Sitharaman in June, approved a slew of changes to the taxing scheme. The modifications went into effect on July 18, 2022.One of the most significant changes was that a GST-registered tenant must pay Goods and Services Tax at the rate of 18% when renting a residential property. Earlier Regime Before June 18, 2022, the residential property was not subjected to any kind of taxes, irrespective of the fact that...

Summary Of SCN In Form GST DRC-01 Cannot Substitute Requirement Of Proper SCN: Jharkhand High Court

The Jharkhand High Court has held that the summary of show cause notice in Form GST DRC-01 cannot substitute the requirement of a proper show cause notice under section 73(1) of the CGST Act, 2017. The division bench of Justice Aparesh Kumar Singh and Justice Deepak Roshan has observed that the levy of a penalty of 100% of tax dues reflected in the Summary of the Order contained in Form GST DRC-07 is in the teeth of the provisions of Section 73(9) of the CGST Act. As per Section 73(9), ...

Export Of Wheat Flour, Maida And Semolina Will Require Quality Certificate For Shipments From 14 August, 2022: DGFT

The Director General of Foreign Trade (DGFT) has notified that the export of wheat flour, maida, and semolina will require a quality certificate for shipments from August 14, 2022.The existing export policy of wheat flour (Atta), maida, samolina (Rava/Sirgi), wholemeal atta, and resultant atta shall be "free". However, the export of wheat flour (atta) is subject to the recommendation of the Inter Ministerial Committee (IMC) on the export of wheat. As per the revised export policy, the...

ITAT Allows Deduction On Penalty Levied By SEBI For Shortfall In Margin Money

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT)has allowed the deduction of the penalty levied by the Securities and Exchange Board of India (SEBI) for a shortfall in margin money.The bench of B.R. Baskaran (Accountant Member) has observed that the penalty levied by SEBI for shortfall in margin money cannot be considered as a penalty for violation of any law falling within the ambit of section 37(1) of the Income Tax Act. The appellant/assessee company is in the...

Income Tax Officers Are Frequently Violating Principles Of Natural Justice: Allahabad High Court

The Allahabad High Court has criticized the Income Tax Authorities for frequently violating the principles of natural justice. The Court ruled that the harassment caused to the assessees and the breach of principles of natural justice by the Income Tax Officers has become uncontrolled due to the absence of an effective system of accountability of the erring officers. The Bench of Justices Surya Prakash Kesarwani and Jayant Banerji directed the Central Board of Direct Taxes (CBDT) to...

GST Rates: 4 Myths Cleared

A lot of people are still not clear about GST rates on certain goods and services and there are a lot of myths that are doing the rounds. Here's a reality check for both GST rates on certain goods and services. Myth 1: GST charged on cash withdrawal from banks. Truth: No GST is levied when withdrawing cash from banks. In addition, there is no tax on customer cheques. The Union Finance Nirmala Sitharaman on August 2, 2022 in Rajya Sabha said that, there is no GST on cash...

Manpower and Labour Supply Services Attract 18% GST: AAR

The Telangana Authority of Advance Ruling (AAR) has ruled that the manpower supply or labour supply services by the manpower supply agency fall under SAC 98519 and are taxable at the rate of 18%. The tax has to be paid by the manpower supply agency.The two-member bench of B. Raghu Kiran and S.V. Kasi Visweswara Rao has observed that GST will not be attracted for labour engaged on a daily basis or for employees, etc., if the service is rendered in the course of employment. The applicant,...