Income Tax Law Updates
Notification/Circular:
Notification No. 98/2022/F. No. 370142/33/2022-TPL dated 17-08-2022
In exercise of the powers conferred by sub-section (1) of section 239A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:- 1. Short title and commencement.—(1) These rules may be called the Income-tax (26th Amendment) Rules, 2022. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules),–– (I) in Part VIII, before rule 41, the following rule shall be inserted, namely:- “40G. Refund claim under section 239A.––(1) A claim for refund under section 239A shall be made in Form No. 29D. (2) The claim under sub-rule (1) shall be accompanied by a copy of an agreement or other arrangement referred to in section 239A.
CBDT Notification No. 100/2022-Income Tax Dated 18-08-2022
CBDT vide above notification amends Rule 128 of the Income-tax Rules, 1962, providing major relief to taxpayers in the matter of claiming Foreign Tax Credit (FTC). The Statement in Form No. 67 can now be furnished on or before the end of the relevant Asstt Year. The pre-amended Rule required the FTC claim to be filed by the due date of furnishing the Income Tax Return. The amendment operates retrospectively so that this benefit is available to all FTC claims filed during the current Financial Year.
Case Laws/Judgement:
Abbott Healthcare Private Limited Vs ACIT (ITAT Mumbai) Date of Order 02-08-2022
Hon’ble ITAT held that payment of non-compete fee in accordance with terms of agreement between the assessee and Piramal Healthcare Ltd. is not disputed by the Revenue. Ergo, in light of the facts of the case and the decision by Hon’ble Bombay High Court referred above, we hold that the assessee is eligible for depreciation u/s. 32 of the Act on Non-compete Fees paid being an intangible asset.
Expat Engineering India Ltd. Vs DCIT (ITAT Bangalore) Date of Order 01-08-2022
Hon’ble ITAT held that the levy of interest on delayed payment of TDS u/s.201(1A) though held to compensatory in nature, the allowability of the same cannot be decided simply based on that. The levy of 201(1A) is a levy for delay in the remittance of tax that is deducted and not paid into the government account and is levied towards the use of funds belonging to the exchequer. The interest u/s.201(1A) can be equated to the levy of interest u/s.234. Interest u/s.234 is a levy on delay in the payment of income tax and the TDS is nothing but the income tax paid on behalf of the payee and therefore the interest on the same u/s.201(1A) is also in the nature of interest levied on the income tax. On that count also interest on delayed payment of TDS cannot be claimed as a deduction.
Goods and Services Tax Law Updates:
Notification/Circular:
CBIC GST Instruction No. 03/2022-23 [GST-INV] Dated 17-08-2022
CBIC issued Guidelines On Issuance Of Summons Under Section 70 Of The Central Goods & Services Tax Act, 2017. Issuance of summons may be avoided to call upon statutory documents which are digitally/ online available in the GST portal. Senior management officials such as CMD/ MD/ CEO/ CFO/ similar officers of any company or a PSU should not generally be issued summons in the first instance. They should be summoned when there are clear indications in the investigation of their involvement in the decision making process which led to loss of revenue.
CBIC GST Instruction No. 02/2022-23 [GST – Investigation] Dated 17-08-2022
CBIC issued Guidelines for arrest and bail in relation to offences punishable under the CGST Act, 2017. Arrest should, however, not be resorted to in cases of technical nature i.e. where the demand of tax is based on a difference of opinion regarding interpretation of Law. The prevalent practice of assessment could also be one of the determining factors while ascribing intention to evade tax to the alleged offender. Other factors influencing the decision to arrest could be if the alleged offender is co-operating in the investigation, viz. compliance to summons, furnishing of documents called for, not giving evasive replies, voluntary payment of tax etc.
AAR/Case Laws/Judgement:
In re P.K.S Centre for Learning (GST AAR Karnataka) Date of Order 12/08/2022
Hon’ble AAR pronounced the ruling that the services provided by the applicant to educational institutions (KSEEB) by way of printing of stationery pertaining to the conduct of examination covered under para i(a) supra is exempted as per entry No.66 (Heading 9992) of Notification No.12/ 2017-Central Tax (Rate), dated 28th June, 2017 as amended vide Notification No.02/ 2018-Central Tax (Rate) dated 25th January, 2018.
In re Indian Hume Pipe Company Limited (AAR Karnataka) Date of Order 12-08-2022
Hon’ble AAR pronounced the ruling that the supply of Services by the Applicant to M/s. Bangalore Water Supply and Sewerage Board is covered by Notification No. 15/2021- Central Tax (Rate), dated 18th November, 2021 r/w Notification No.22/2021-Central Tax (Rate), dated 31.12.2021. The applicable rate of tax under the Goods and Services Tax Act, 2017 on the supplies made by the Applicant to the BWSSB as per the instant application is 18% w.e.f 01.01.2022 as per entry 3 (xii) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017.
the Appellant had made categorical submissions in this regard which finds mention in the order in appeal but there is no finding on the same. In any case, when the issue is no more res integra that where the assessee is entitled to claim cenvat credit of the tax paid under RCM, there cannot be any question of invocation of extended period. It is also a settled legal position that where there were divergent views on the issue and even if it is ultimately settled against the assessee, extended period cannot be invoked.
Updates from Other Laws:
Notification/Case Laws/Judgement:
In terms of GoI notification F.No.4(6)-B(W&M)/2022 and RBI press release dated June 16, 2022, the Sovereign Gold Bond Scheme 2022-23 – Series II will be open for subscription for the period from August 22 – August 26, 2022. The nominal value of the bond based on the simple average closing price [published by the India Bullion and Jewellers Association Ltd (IBJA)] for gold of 999 purity of the last three working days of the week preceding the subscription period, i.e. August 17, August 18, and August 19, 2022 works out to ₹5,197/- (Rupees Five thousand one hundred and ninety seven only) per gram of gold. Government of India, in consultation with the Reserve Bank of India, has decided to offer a discount of ₹50/- per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of Gold Bond will be ₹5,147/- (Rupees Five thousand one hundred and forty seven only) per gram of gold.
Weekly Newsletter Income Tax, GST and Other Law [3rd Week, August 2022] GST Updates, Income Tax Updates, Tax India Updates
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