Income Tax Law Updates:

CBDT Letter No. F No 370133/16/2022-TPL dated 01-11-2022

Draft common Income-tax Return-request for inputs from stakeholders and the general public- reg. The proposed draft ITR takes a relook at the return filing system in tandem with international best practices. It proposes to introduce a common ITR by merging all the existing returns of income except ITR-7. However, the current ITR-1 and ITR-4 will continue. This will give an option to such taxpayers to file the return either in the existing form (ITR-1 or ITR-4) or the proposed common ITR, at their convenience.

CBDT CIRCULAR No. 23/2022 (F. No. 370142/48/2022-TPL) Dated 03-11- 2022

Finance Act, 2022 ─ Explanatory Notes to the Provisions of the Finance Act, 2022. The Finance Act, 2022 (hereafter referred to as ‘FA 2022’) as passed by the Parliament, received the assent of the President on 30th March, 2022 and has been enacted as Act No. 6 of 2022. This circular explains the substance of the provisions of the FA 2022 relating to direct taxes.

CBDT Circular No.22/2022 dated 01.11.2022

​CBDT condones delay in filing Form No.10A for which the extended due date was 31.03.2022. As per the provisions of the Income-tax Act, 1961, Form 10A was required to be filed electronically by 30.06.2021, which was extended to 31.08.2021 and further extended to 31.03.2022.

TE Connectivity Services India Private Limited Vs National Faceless Assessment Centre (ITAT Bangalore) Appeal Number : IT(TP)A No. 191/Bang/2022 Date of Order 16/09/2022 

Hon’ble ITAT Bangalore vide above order held that the expenditure on account of ESOP is a revenue expenditure and had to be allowed as deduction while computing income. 

Vodafone Idea Ltd Vs DCIT (ITAT Mumbai) Appeal Number : ITA No. 2285/Mum/2014 Date of Order 12/10/2022

Hon’ble ITAT Mumbai vide above order held that the sale of SIM cards/recharge coupons at discounted rate to the distributors was not commission and therefore not liable to deduct the TDS under Section 194H.

Goods and Services Tax Law Updates:

CBIC Circular No. 1085/06/2022-CX F.No. 190354/295/2021-TRU dated 31-10-2022

Mechanism for implementation of additional basic excise duty @Rs. 2 per litre levied on sale of unblended motor spirit (commonly known as petrol). As part of Budget 2022-23, an additional Basic Excise Duty @ Rs. 2 per litre was levied on unblended motor spirit (commonly known as petrol) intended for retail sale and the said duty rate was to be applicable w.e.f 1st October, 2022. The date of effect was deferred to 1st November, 2022 vide Notification No. 31/2022-Central Excise dated 30th September, 2022. The levy of additional Basic excise duty on unblended motor spirit was introduced to promote blending in the country.

In re Shree Powertech (GST AAR West Bengal) Appeal Number : Advance Ruling No. 12/WBAAR/2022-23 Date of Order : 21/10/2022

AAR RULING: The activities being carried out by the applicant as a sub-contractor for shifting of electrical utilities for construction of Proposed 4-Laning of Barasat – Krishnagar Section of NH-34 Project cannot be regarded as composite supply of works contract by way of construction of road as specified under serial number 3(iv)(a) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended.

In re Banchu Das (GST AAR West Bengal) Appeal Number : Advance Ruling No. 13/WBAAR/2022-23 Date of Order 21/10/2022

AAR RULING: The applicant‟s supply to the Howrah Municipal Corporation for operation and maintenance of capacity portable compactor and hook loader is eligible for exemption from payment of tax vide serial number 3A of the Notification No. 12/2017 – Central Tax (Rate) dated 28/06/2017 (corresponding West Bengal State Notification No. 1136 – FT dated 28/06/2017), as amended from time to time, if the value of goods involved in such composite supply does not exceed 25% of the value of supply.

In re Achampet Solar Private Limited (GST AAAR Telangana) Advance Ruling No. AAAR.COM/04/2022 Date of Order : 19/10/2022

AAR RULING: The liquidated damages recoverable by the applicant from Bi-electric India on account of delay in commissioning, does not qualify as ‘supply’ under the GST law, thereby not attracting the levy of GST. 

In re Innovative Nutrichem Pvt. Ltd. (GST AAR Karnataka) Advance Ruling No. KAR ADRG 37/2022 Date of Order: 27/10/2022

AAR RULING: The applicant is liable to pay GST under RCM, for the services notified and covered under RCM, received from the service providers, in spite of being a manufacturer and supplier of exempted goods falling under HSN 2309 90 20.

In re Karnataka Urban Infrastructure Development and Finance Corporation Limited (GST AAR Karnataka) Advance Ruling No. KAR ADRG 38/2022 Date of Order : 27/10/2022

AAR RULING: The application filed by the Applicant for advance ruling is rejected, in terms of Section 98(2) of the CGST Act 2017. In this regard AAR observed that Section 95(a) of the CGST Act 2017, while defining the term ‘advance ruling’, stipulates that an applicant can seek advance ruling on the questions specified under Section 97(2) of the CGST Act 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant. In the instant case the questions, on which the applicant seeks advance ruling, are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to the service/s being received by them.

Weekly Newsletter Income Tax, GST and Other Law [1st Week, November 2022] GST Updates, Income Tax Updates, Tax India Updates