Tuesday 24 May 2022

Service tax applicability on secondment of employees

 The Hon’ble Supreme Court of India in the matter of M/s Northern Operating Systems Pvt. Ltd. (“NOS”) in relation to taxability of the arrangement of secondment of expat employees to Indian entity under reverse charge mechanism.

 

SC rules IGST is not leviable on inbound ocean freight in case of CIF contracts

 The issue involved was whether Integrated Goods and Services Tax (IGST) can be separately levied and collected from the Indian importer on ocean freight paid by the foreign exporter to a foreign shipping line, where Customs duty together with IGST has been already discharged on the value of imported goods.

Saturday 21 May 2022

Recent Income Tax Court decesions.

 

·         Mumbai ITAT held that no disallowance of reinsurance payments to foreign re-insurers under section 37(1) and/ or 40(a)(ia) of the Income-tax Act, 1961.

 

Understand section 80JJAA: Deduction wrt employment of new employees

 



A. Criteria
1. Any assessee who has business income and is subject to audit u/s 44AB
2. Business must not be formed by splitting up or reconstructing of an existing business
3. Business must not be transferred from any other person or as a result of any business re-organization.
4. Filing of Form No 10DA.

Understand Treaty impact on Adani-Holcim deal.


 

The Adani recently announced aquisation of Cement companies ACC & Ambuja cement from Holcim group based in Switzerland. Currently, the equity (covered by the deal) is held by the Holcim group as under:

 

Ambuja Cements Limited – 63.55% stake is held by Holderind Investments Limited, a Mauritius entity ('Holding entity'). In turn, the Holding entity is owned by Holderfin B.V, a Netherlands entity ('Intermediate Holding entity') which is ultimately owned by Holcim Limited, Switzerland ('Ultimate Holding entity').

ACC Limited - 50.05% stake is held by Ambuja Cements Limited, whereas the Holding entity owns a 4.48% stake.

 

Tuesday 17 May 2022

Electricity Charges are Includible in Rent for Charging GST - AAAR

 

This is to apprise you about a recent decision by Appellate Authority for Advance Ruling (‘AAAR’) in the case of Harish Chand Modi, RAJ/AAAR/05/2021-22, wherein it was held that reimbursement of electricity expenses by the lessee to lessor would form part of taxable value and not to be treated as ‘Pure Agency Services’.

 

Do not claim less GST input for the month of April 2022

  •  The GST taxpayer is advised to restrict their claim  of input credit based on the entries available in GSTR 2B for the particular month.  
  • GSTR 2B is a register with a cut off date of 12th of every month and the same includes GST input of previous months and the current month.
  • For April 22, we can see GSTR 2B which contains details of previous months and not current months.
  • GSTR 2A for April 22 is available with input credit of the current month.
  • The GSTN had issued an advisory for the present technical glitch and advised to claim input credit based on the credit available in GSTR-2A.
  • by doing this, GST taxpayers can claim only input entries available for the current month and are not able to claim input credit of the previous month for which entries are available in GSTR 3B.
  • it is advisable to add GSTR 2A & 2B and then claim the consolidated amount.      

Wednesday 4 May 2022

CBDT notifies tax return form (Form ITR-U) and the manner to furnish updated return

 This Tax Alert summarizes the key highlights of Notification No.48/2022 dated 30 April 2022 issued by the Central Board of Direct Taxes (CBDT) which amends the Income Tax Rules, 1962 by inserting Rule 12AC which provides for tax return form (Form ITR-U) and the manner for furnishing updated return.

Taxation of Intangible assets acquired through business restructuring.

1.     Background    1.1        When a company aims to acquire another company's business through amalgamation or demerger, assets or ...