Daily Tax & Corporate Law Digest
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Today’s newsletter analytically summarizes today’s top Tax & Corporate Law stories reported at?taxmann.com , in a unique section-wise format.
INCOME TAX
CIRCULAR NO. 25/2022, DATED 30-12-2022
Cash receipt by ‘Co-op. Society’ from dealer across multiple days not to be aggregated for Sec. 269ST purpose: CBDT
Editorial Note: Reference was received by the CBDT as to whether receipt of cash by Co-operative Societies from a distributor for the sale of milk on a bank holiday or a day when the bank is closed should be considered a single transaction or aggregated with all such cash receipts from the distributor in the previous year to be treated as a single event or occasion under Section 269ST. It was clarified that such receipts should not be aggregated across multiple days for the purposes of Section 269ST.
SECTION 9 OF THE INCOME-TAX ACT, 1961 - INCOME - DEEMED TO ACCRUE OR ARISE IN INDIA
Air Transport: Where assessee, an airline having an establishment in Bhutan, earned income from the sale of tickets to air passengers in India since article 8 of Indo Bhutan DTAA was more beneficial to assessee, profit derived from the operation of ships or aircraft in international traffic was liable to be taxed in contracting state in which place of effective management of enterprise was situated, which was Bhutan - Deputy Commissioner of Income-tax, (International Taxation) v. Tashi Air (P.) Ltd. - [2022] 145 taxmann.com 511 (Kolkata - Trib.)
Levy of surcharge and cess cannot exceed tax rate of 10 per cent as per India – Japan DTAA - FCC Co. Ltd. v. Assistant Commissioner of Income-tax (International Taxation)-1(3)(1) - [2022] 145 taxmann.com 649 (Delhi - Trib.)
SECTION 40(a)(iib) OF THE INCOME-TAX ACT, 1961 - BUSINESS DISALLOWANCE - ROYALTY, LICENCE FEE ETC.
Surcharge on Sales tax: Surcharge on sales tax or turnover tax paid by assessee-company to State Government was not a 'fee or charge' coming within scope of section 40(a)(iib); review petition dismissed - Assistant Commissioner of Income-tax v. Kerala State Beverages Manufacturing and Marketing Corporation Ltd. - [2022] 145 taxmann.com 513 (SC)
SECTION 92C OF THE INCOME-TAX ACT, 1961 - TRANSFER PRICING - COMPUTATION OF ARM'S LENGTH PRICE
Comparability factors - Foreign comparable: Company whose functions are less complex in nature, does not own any intangible generally and whose results can be verified by using a reliable database should be taken as a tested party - Deputy Commissioner of Income-tax v. Inventurus Knowledge Solutions (P.) Ltd. - [2022] 145 taxmann.com 514 (Mumbai - Trib.)
SECTION 201 OF THE INCOME-TAX ACT, 1961 - DEDUCTION OF TAX AT SOURCE - CONSEQUENCE OF FAILURE TO DEDUCT OR PAY
ITAT order not accepted by Dept. & pending appeal should be followed by Dept. for succeeding AYs unless the operation of the order is stayed/suspended - Income Tax Officer (International Taxation) IT Ward 2(3)(2) v. GIA Laboratory (P.) Ltd. - [2022] 145 taxmann.com 650 (SC)
GOODS AND SERVICES TAX LAWS
GST Rate change for certain goods notified by Government as per 48th GST Council Meeting Recommendations
Editorial Note: Notification No. 1/2017-Central Tax (Rate), dated 28-06-2017 has been amended to provide rate changes or clarificatory amendments for certain goods, effective January 1, 2023. These changes were based on the recommendations of the 48th GST Council meeting and include modifications to the GST rate for Ethyl alcohol supplied to Oil Marketing Companies, bran, sharps, and other residues, and carbonated beverages of Fruit Drink or Carbonated Beverages with Fruit Juice, among others.
Govt. notified amendments in service exemption notification as per recommendations of the 48th GST Council Meeting
Editorial Note: Notification No. 11/2017-Central Tax (Rate), dated 26-06-2017 has been amended w.e.f. 01-01-2023 to provide that the residential dwelling used by the registered person in his personal capacity and on his own account would be exempt under GST. Further, entry 23A providing the exemption to the services by way of access to a road or a bridge on payment of annuity has been withdrawn.
Essential Oil such as peppermint oil, spearmint oil, etc. are notified under the reverse charge mechanism
Editorial Note: The Government has notified specified essential oils under the reverse charge mechanism w.e.f. 01-01-2023. As per the notification, essential oils (other than those of citrus fruit) of peppermint and of other specified mints such as spearmint oil, water mint-oil, Mentha arvensis, etc. would be liable to reverse charge where such goods are supplied from an unregistered person to registered person.
SECTION 29 OF THE CENTRAL GOODS AND SERVICES TAX ACT, 2017 - REGISTRATION - CANCELLATION OF
Show cause notice issued for cancellation of registration and consequential order was not sustainable when they were cryptic in nature and were passed without providing an opportunity for a personal hearing, therefore direction was to be issued to the department for restoration of registration - Mahendra Junabhai Zala v. Office of Deputy Commissioner, State Tax - [2022] 145 taxmann.com 651 (Gujarat)
SECTIONS 85 OF THE FINANCE ACT, 1994 - APPEALS TO THE COMMISSIONER OF CENTRAL EXCISE (APPEALS)
The writ petition filed long after the expiry of the limitation period for filing an appeal could not be entertained - District Roads and Buildings v. Union of India - [2022] 145 taxmann.com 648 (TELANGANA)
COMPANY AND SEBI LAWS
CIRCULAR NO. SEBI/HO/MIRSD/MIRSD-POD-1/P/CIR/2022/177, DATED 30-12-2022
SEBI requires stock exchanges, clearing corporations to set up an ‘Investor Risk Reduction Access’ platform
Editorial Note: SEBI has asked stock exchanges, clearing corporations (CCs) to set up an Investors Risk Reduction Access (IRRA) platform in order to provide investors with an opportunity to square off/close the open positions and/or cancel the pending orders in case of disruption of trading services provided by the Trading Member (TMs). This service shall be enabled by the exchanges, suo moto, only in case of disruption of trading services of TM across all the exchanges, where the TM is a member.
FEMA BANKING AND INSURANCE LAWS
领英推荐
CIRCULAR NO. RBI/2022-23/159 DOR.CRE.REC.92/07.10.002/2022-23, DATED 30-12-2022
Individuals can receive housing loans Up to Rs. 140 Lakh from Tier-2 to 4 UCBs, under the revised UCBs framework
Editorial Note: Earlier, ceilings on housing loans to individuals were Rs. 60 lakh for Tier-I Urban Co-operative Banks (UCBs) and Rs.140 lakh for Tier-II UCBs. Classification of UCBs into four tiers under revised regulatory framework, the limits on housing loans sanctioned by UCBs stands changed, to an individual borrower as Rs. 60 lakh for Tier-1 UCBs and Rs. 140 lakh for UCBs in Tier-2 to 4. Existing housing loans sanctioned before this circular will be allowed to run off until maturity
PRESS RELEASE NO. 2022-2023/1474, DATED 30-12-2022
RBI hikes interest rate on floating rate savings bond (2020) from 7.15% to 7.35% from January 01, 2023
Editorial Note: RBI has hiked the interest rate on floating rate savings bonds (2020) from 7.15% to 7.35% from January 1, 2023. The hike in the interest rate on floating bonds has come after the government hiked the interest rate on National Savings Certificate (NSC). Earlier, the rate of interest on NSC has been revised to 7.00% for the fourth quarter of FY 2022-23. Now, the interest rate on the floating rate savings bonds for the period January 1, 2023 to June 30, 2023 has been reset at 7.35%.
ACCOUNTS AND AUDIT
ICAI has issued the Exposure Draft of the Amendments to Ind AS 116, Leases
Editorial Note: The Exposure Draft proposes amendment to lease liability in a sale and leaseback transaction under Ind AS 116. This draft require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. Para 102A, C1D and C20E are added and para C2 is amended. A new heading is added before para C20E. Comments can be submitted by 30.01.23.
ICAI has issued the Exposure Draft of the Amendments to Ind AS 1, Presentation of Financial Statements
Editorial Note: The Exposure Draft proposes amendments relating to classification of liabilities as current or non-current to resolve apparent contradictions. Through this Para 60, 69, 71, 73, 74, 75 and 76 are amended. Para 72A, 72B, 75A, 76ZA, 76A, 76B, 139U and 139W are added. Headings are added before para 70, 71, 72A and 76A. New text is underlined and deleted text is struck through. Paragraphs 70 and 72 are included for ease of reading. Comments can be submitted by 30.01.23.
OPINIONS
ROC imposes a penalty of Rs. 2 cr on a listed company for violating the Private Placement norms - a case study - Prof R Balakrishnan, FCS - FCWA - [2022] 145 taxmann.com 654 (Article)
Deciphering The Enigma of “Pre Packaged Deals” in Insolvency Law vis-à-vis SDG 8 - Ashish Dash, 3rd Year Law Student, Institute of Law, Nirma University, Amit Kumar Kashyap, Assistant Prof of Law, Institute of Law, Nirma University - [2022] 145 taxmann.com 655 (Article)
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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