Prasar Bharati Not Liable Pay Service Tax For Advertisement Services: CESTAT Directs Refund To Customers

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) consisting of P.V.Subba Rao (Technical Member) and Rachna Gupta (Judicial Member) directed Prasar Bharati to refund the Service Tax collected from customers for advertisement services within a period of two months.Prasar Bharati has been engaged in the broadcasting service through Doordarshan Kendra and Trivandrum. While broadcasting, they also carry advertisements. Advertising agency services were brought...

Interest Income Derived By Gujarat Sports Authority On Its Surplus Taxable As "Income From Other Sources": Ahmedabad ITAT

The Ahmedabad Bench of ITAT, consisting of members P.M. Jagtap (Vice President) and Siddhartha Nautiyal (Judicial Member), has ruled that the interest income earned by the Gujarat Sports Authority on its deposits would be taxable as "Income from Other Sources" and not as business income under the Income Tax Act, 1961. The ITAT held that since the Sports Authority was not engaged in any business activity, therefore the interest income earned by it on its deposits would not qualify as...

Coating Activities On goods Belonging To Customer Is Job work, Attracts 12% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Magoo and T.R. Ramnani has ruled that coating activities on goods belonging to customers qualify as job work and attract 12% GST. The applicant, a company, is in the business of coating activities, which are mainly applied to goods belonging to customers and provide high-performance Physical Vapour Deposition (PVD) and Plasma Assisted Chemical Vapour Deposition (PACVD) wear corrosion protection and decorative...

Karnataka High Court Orders GST Refund of Rs. 27 Crores Illegally Collected from Swiggy

The Karnataka High Court has ordered the Goods and Service Tax (GST) department to refund Rs. 27 crore, which was illegally collected from Swiggy.The division bench of Justice Alok Aradhe and Justice M. G. S. Kamal, while dismissing the appeal of the Central Government, observed, "Article 265 of the Constitution mandates that the collection of tax has to be by the authority of law." The court added that if a tax is collected without any authority of law, the same would amount to...

Holding Company Not Liable To Deduct TDS On The Share Purchase Transaction By Its Subsidiary: Bombay High Court

The Bombay High Court has held that even if a holding company was considered as an ultimate beneficiary of a share purchase transaction undertaken by its subsidiary company, it would still not be liable to deduct tax at source under Section 195 of the Income Tax Act, 1961 if it did not make any payment to a non-resident under the transaction. The Bench, consisting of Justices N.J. Jamadar and K.R. Shriram, has ruled that the liability to deduct TDS under Section 195 of the Act is ...

Poultry Crates Attracts 18% GST: AAR

The Maharashtra Authority of Advance Ruling (AAR) consisting of Rajiv Mangoo and T.R. Ramnani has ruled that Goods and Service Tax (GST) at the rate of 18% is applicable on poultry crates, which can be treated as "articles for the conveyance or packing of goods, or plastics".The applicant is in the business of manufacturing a wide range of products used for storage, handling, and transportation of goods, including products like plastic crates, poultry crates, plastic pallets, insulated...

Taxpayer Can't Approach High Court To Avoid Mandatory Pre-Deposits While Availing Appellate Remedy: Kerala HC

The Kerala High Court has recently held that a taxpayer cannot seek to avoid mandatory pre-deposits as a remedy to an appeal under Section 107 of the State Goods and Services Tax Act, 2017. Justice Bechu Kurian Thomas observed that granting such relief would render the provisions of the Act redundant."Once the petitioner undertakes the remedy of a statutory appeal under section 107 of the Act, petitioner cannot thereafter turn around and approach this Court seeking reliance upon subsequent...

Challan Can Be Rectified To Correct Bonafide Errors: Delhi High Court Directs VAT Dept. To Allow Changes in Tax Period

The Delhi High Court bench, consisting of Chief Justice Dhirubhai Naranbhai Patel and Justice Jyoti Singh, directed the Value Added Tax (VAT) department to allow rectification of bonafide errors in the tax period of the challan.The petitioner submitted that in respect of the second quarter of 2015-2016, i.e., from 1.07.2015 to 30.09.2015, the petitioner filed its returns on 31.03.2017. The VAT liability for the period was Rs. 7,87,038/-whereas the liability under the CST Act was Rs....

Accessing The Premises Of A JV Company For Technical Assistance Can't Be Treated As Permanent Establishment Under DTAA : Delhi ITAT

The Delhi Bench of ITAT, consisting of members N.K. Billaiya (Accountant Member) and Astha Chandra (Judicial Member), has held that access to a foreign enterprise for providing technical assistance to its Joint Venture Company in its premises in India does not amount to a Permanent Establishment under the Double Taxation Avoidance Agreement. The Assessee FCC Co. Ltd, a Japanese company engaged in the business of manufacturing clutch systems for cars and utility vehicles, entered into a ...

Payment To Foreign Company For Utilisation Of Transponder Of A Satellite Is Not "Royalty" As Per DTAA: ITAT

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) consisting of Sandeep Sigh Karhail (Judicial Member) and Prashant Maharishi (Accountant Member) ruled that the payment made to a foreign company for the utilisation of a transponder centred on a satellite was not in the nature of "royalty" in terms of the Double Taxation Avoidance Agreement (DTAA).The assessee/respondent in the business of marketing advertisement time for different television channels, and distribution of these ...

Claim Of Deduction Under Section 54 Of Income Tax Act To Be Reckoned From The Date Of Possession Of New Property: Mumbai ITAT

The Mumbai Bench of ITAT, consisting of members Pramod Kumar (Vice President) and Kuldip Singh (Judicial Member), has ruled that an assessee's claim of deduction under Section 54 of the Income Tax Act, 1961 was to be reckoned from the date of possession of the new residential house property. Also, the ITAT ruled that the source of funds for the purchase of the new house property under Section 54 is irrelevant. The Assessing Officer (AO) had denied the benefit of deduction under Section...

"Input Service" No Longer Includes Services For Personal Use Or For The Employee Post April 1, 2011: CESTAT

The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the definition of input service as it stood prior to April 1, 2011, in which the phrase "activities relating to business" was included, which had a very wide ambit and would include almost all services used for the activities of business, however, after the amendment the services for personal use or for employees has been excluded from the definition of "input services". The single-member...