GST
Tax Cases Weekly Round-Up: 13 November To 19 November 2022
Supreme CourtSec.194H Income Tax Act Attracted For 'Supplementary Commission' Earned By Travel Agents ; Airlines Liable To Deduct TDS : Supreme CourtCase Title: Singapore Airlines Ltd. vs C.I.T., Delhi Citation: 2022 LiveLaw (SC) 959 The Supreme Court held that Section 194H of the Income Tax Act is attracted in the case of Supplementary Commission amounts earned by the travel agent...
ITC Can't Be Availed By Housing Society On Works Contract Services Of Repairs, Renovations, Rehabilitation: AAAR
The Maharashtra Appellate Authority of Advance Ruling (AAAR) has ruled that the housing society is ineligible to claim input tax credit (ITC) on contract services received from their appointed contractor due to the housing society's ineligibility to claim ITC on repairs, renovations, and rehabilitation works.The two-member bench of Ashok Kumar Mehta and Rajeev Kumar Mital has observed that...
Tax Cases Weekly Round-Up: 6 November to 12 November 2022
Delhi High CourtExpenses Towards Advertisement, Brokerage And Commission, Incurred By A Real Estate Developer; Deductible As Revenue Expenditure: Delhi High Court Case Title: Commissioner of Income Tax versus Somnath Buildtech Pvt. Ltd. Citation: 2022 LiveLaw (Del) 1048 The Delhi High Court has ruled that advertisement expenses, Software Developing Charges, and expenses...
Tax Paid On Purchases To Meet The CSR Obligations Is Eligible For ITC: Telangana AAR
The Telangana Authority of Advance Ruling (AAR) has ruled that the tax paid on purchases made to meet the obligations under corporate social responsibility (CSR) will be eligible for input tax credit (ITC) under the CGST and SGST Acts.The two-member bench of S.V. Kasi Visweswara Rao and Sahil Inamdar has observed that the expenditure made towards corporate responsibility under Section 135 of...
GST Not Payable On Notice Pay Recovery From Outgoing Employee: Punjab AAR
The Punjab Authority of Advance Ruling (AAR) has held that the GST is not payable on notice pay recovered from outgoing employees.The member bench of Sunder Lal and Kumud Singh has observed that the amount received as notice pay recovery by the applicant from the employees who leave the applicant company without serving the mandatory notice period mentioned in the employment contract is not...
Activities Carried Out by Sub-Contractor For Shifting Electrical Utilities Can't be Regarded as Composite Supply of Works Contract: AAR
The West Bengal Authority for Advance Ruling (AAR) has held that activities carried out by subcontractors for the shifting of electrical utilities for the construction of roads cannot be regarded as a composite supply of works contracts.The two-member bench of Brajesh Kumar Singh and Joyjit Banik has observed that providing services of shifting electrical utilities alone cannot be regarded...
Liquidated Damages Recoverable From Bi-electric India For Delay In Commissioning, Doesn't Qualifies As Supply, No GST Payable: AAAR
The Telangana Appellate Authority of Advance Ruling (AAAR) has held that liquidated damages recoverable by the applicant from Bi-electric India on account of delay in commissioning do not qualify as a "supply" and no GST is payable.The two-member bench of B.V. Siva Naga Kumari and Neetu Prasad has observed that the amount paid as "liquidated damages" is an amount paid only to compensate for...
ITC Can Be Claimed Under Marginal Scheme On Rent, Advertisement expenses, commission, Professional expenses: AAR
The Karnataka Authority of Advance Ruling (AAR) has held that the input tax credit (ITC) under the marginal scheme on expenses like rent, advertisement expenses, commission, professional expenses, and other like expenses is subject to sections 16 to 21 and rules 36-45 of the CGST Act and Rules 2017.The two-member bench of M.P. Ravi Prasad and Kiran Reddy T. has observed that ITC can be claimed...
Tax Cases Weekly Round-Up: 30 October To 5 November 2022
Supreme CourtIndustrial Townships Are "Local Areas" For Entry Tax Levy By States Though They Are Excluded From Municipalities : Supreme Court Case Title: OCL India Limited vs State of Orissa Citation: 2022 LiveLaw (SC) 911 The Supreme Court upheld States' power to impose entry tax from Industrial Township/Areas. The bench of CJI UU Lalit, Justices S. Ravindra Bhat and J...
Applicant Withheld Information Regarding Commencement Of Investigation: AAAR Declares AAR's Ruling Void
The Gujarat Appellate Authority of Advance Ruling (AAAR) declared the AAR ruling void as the appellant had withheld information regarding the commencement of an investigation against them on the issue raised by them in the application for an advance ruling.The two-member bench of Vivek Ranjan and Milind Torawane has observed that the term "proceeding" is a very comprehensive term and,...
Setting up of Electric Loco Shed For Railway Constitutes Composite Supply Of Works Contract Service: AAAR
The Uttar Pradesh Appellate Authority of Advance Ruling (AAAR) has held that the setting up of an Electric Loco Shed for the Railway constitutes a composite supply of work contract service.The two-member bench of S. Kannan and Ministhy S. has observed that the project of setting up an electric loco shed at Saiyedpur Bhitri, Uttar Pradesh, fulfils the conditions of it being an...
Affordable Residential Apartments Attracts 1.5% GST: Kerala AAR
The Kerala Authority of Advance Ruling (AAR) has held that affordable residential apartments attract 1.5% GST.The bench of Sreeparvathi and Abraham Renn has held that a new tax structure for the real estate sector was introduced with effect from 01.04.2019 onwards by the amendment of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017 by Notification No. 03/2019 – Central...