India Tax Due date - June 2024

 

S. No	Due Date	Related to	Compliance to be made
1	11.06.2024	GST RET 01	Payment of GST and filing of return for the Month of May 2024
2	20.06.2024	GST	Payment of GST for the month of May , 2024 Filing of GSTR 3B for the month of May , 2024
3	07.06.2024	TDS/TCS (Income Tax)	Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of May  2024 Deposit TDS from Salaries deducted during the month of May  2024 Deposit TCS for collections made under section 206C including sale of scrap during the month of May  2024, if any
4	15.06.2024	Income tax	Payment of Advance tax for the Corporate assesses –Amount not less than 15% of advance tax.
5	30.06.2024	Equalisation levy annual return	Filing of equalisation levy annual return for 23-24

CBDT AY 2023-24 Scrutiny selection process

 Key Highlights of the CBDT Guidelines include:

 1. Covered Cases: The guidelines cover various cases including those related to survey, search & seizure or requisition, Section 142(1) notices where no return is furnished, Section 148 (arising from search or survey or otherwise), registration or approval under various sections such as 12A, 12AB, 35(1)(ii)/(iia)/(iii), 10(23C), etc.

High Court affirms extension of time limits for adjudication

 This is to update you regarding an important decision by Hon’ble Kerala High Court in the case of Faizal Traders Pvt. Ltd. v. DC-GST, WP(C) No. 24810 of 2023. The High Court has upheld that the time extension notified by the Government for adjudication under Section 73 and 74.

 

HC upholds validity of GST notifications extending time limit for passing order for FY 2017-18

This Tax Alert summarizes a recent judgement of the Kerala High Court (HC)¹ upholding the validity of GST notifications² extending the timelines for passing order under section 73 of Central Goods and Services Tax Act, 2017 (CGST Act) for financial year 2017-18.

As per the petitioner, the extension of time limit can only be notified under section 168A of CGST Act where the actions cannot be completed due to force majeure. The impugned notifications do not indicate any force majeure affecting the passing of order within the time stipulated by CGST Act.

HC observed that:

SFT FY 2023-24.

 As you may be aware, the provisions of the Indian tax laws, require companies to report certain Specified Financial Transactions (‘SFT’) undertaken during the financial year by filing a Form 61A. Rule 114E of the Indian tax rules have prescribed the list of transactions that companies are required to report. We have summarized the transactions that are required to be reported by companies for your reference:

How to claim TDS credit of earlier years.

 Form 71 helps to claim TDS Credit in respect of income disclosed in ITR filed in earlier years

1. Introduction:
The Finance Act 2023 inserted sub-section (20) to Section 155 with effect from 01-10-2023. This new sub-section is applicable when an income has been reported in an income tax return for a specific assessment year, and tax was withheld by the deductor and paid to the government in a later financial year.

Do You Know Under INDS AS

·       Transactions controlled by the Companies Act, 2013 may in most of the cases remain material accounting policy information   

How to make start up India registration

 Need following information before making application.

HC quashes Customs Instruction mandating review of MOOWR licenses granted for solar power generation

 

This Tax Alert summarizes a recent judgement of the Delhi High Court (HC)^[1] dealing with the validity of the Instruction^[2] insofar as it mandates review of existing licences given for setting up solar power generation units under Manufacture and other Operations in Warehouse Regulations, 2019 (MOOWR) and taking follow-up action.

From Delhi High Court.

In recent adjudications, the Delhi High Court has issued several significant tax rulings, a selection of which is delineated herein.

·       The Delhi court gives directions in the case of Sunshine capital that as per section 153(3) of the Act, orders passed by ITAT, needs to be given effect by the AO within 12 months from the end of FY in the order is passed and is received by AO.

Rules for Taking Input credit.

 This article talks about important rules for buyers who are registered under GST to follow when they claim Input Tax Credit (ITC). Here are the key points:

Modified refund under circumstances of business reorganization

1. Section 170A of the Income-tax Act, 1961 provides that the entities going through business reorganization may furnish modified return of income for any assessment year to which such order of business reorganization is applicable within six months from the end of the month of issuance of order of competent authority.

SC upholds constitutional validity of perquisite valuation of interest concession

 This Tax Alert summarizes a recent ruling of the Supreme Court (SC) in the case of All India Bank Officers' Confederation (Taxpayer) ^[1] in a batch of appeals filed by various associations of bank employees wherein the Taxpayer had challenged the constitutional validity of perquisite valuation of interest concession with reference to rate of interest charged by State Bank of India (SBI) to its customers.

Section (s.) 17(2)(viii) of Income-tax Act (ITA) provides that the value of any other fringe benefit or amenity as may be prescribed by Central Board of Direct Taxes (CBDT) shall be included in “perquisite”, taxable as Salary income, in the hands of taxpayer. Rule 3(7)(i) of Income-tax Rules, inter-alia, provides that the value of the benefit to the taxpayer resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his/her household shall be determined by reckoning the interest rate charged by SBI as on the first day of the relevant tax year for similar loans.

The two issues formulated by the SC were (a) whether s. 17(2)(viii) and/or Rule 3(7)(i) lead to delegation of the “essential legislative function” to CBDT? and (b) is Rule 3(7)(i) arbitrary and violative of Article 14 of the Constitution of India insofar as it treats SBI rate as the benchmark?

The SC held both the issues in favor of tax authority. On the first issue, it held that s.17(2)(viii) and Rule 3(7)(i) do not lead to delegation of “excessive legislative function”. They fall within the parameters of permissible delegation as s.17(2)(viii) clearly delineates the legislative policy and lays down standards for the rule-making authority, thereby satisfying the test of “essential legislative function”. While s.17(2)(viii) delegates the power to CBDT to prescribe what constitutes fringe benefit or amenity and also provides for its valuation, the power is demarcated with the condition that anything made taxable by CBDT under this rule should be a “perquisite” in the form of “fringe benefit or amenity”. On the second issue, the SC held that Rule 3(7)(i) is intra vires s. 17(2)(viii) and not violative of Article 14 of the Constitution. It provides for uniform basis of valuation for all employees. It does not treat unequal as equal. The fixation of SBI rate as benchmark rate is neither arbitrary nor unequal exercise of power

P & H HC stays the operation of Circular clarifying taxability of corporate guarantee

 This Tax Alert summarizes a recent interim order ^[1] passed by the Punjab & Haryana High Court (HC) staying the effect and operation of the Circular ^[2] on taxability of corporate guarantee.

Karnataka High Court ruling - International Worker provisions under the Provident Fund law held to be unconstitutional and arbitrary

 On 25 April 2024, the Hon’ble High Court of Karnataka delivered a judgement (W.P. No.18486/2012 and others) striking down the special provisions for ‘international workers’ under Para 83 of the Employees’ Provident Funds Scheme, 1952 (Provident Fund Scheme) and Para 43A of the Employees’ Pension Scheme, 1995 (Pension Scheme) as being unconstitutional and arbitrary.

The said provisions were introduced by the Central Government vide notification dated 1 October 2008 requiring international workers to contribute in to the Provident Fund.

The question before the Karnataka High Court in this matter was – “Whether introduction of para 83 of Provident Fund Scheme and para 43A of Pension Scheme is unconstitutional and hit by Article 14 of Constitution of India.”

The petitioners contended that these provisions are arbitrary and discriminatory and are hit by Article 14 of the Constitution of India. Their grievance was that international workers are covered under the Provident Fund Scheme irrespective of salary drawn whereas domestic workers who draw monthly pay exceeding the prescribed statutory ceiling (i.e. INR15,000 per month) are outside the purview of the Provident Fund Scheme. The petitioners further argued that international workers work in India only for a limited period and requiring them to pay contributions on their entire global salary would cause irreparable injury.

We understand from the text of the ruling that the Karnataka High Court struck down the special provisions for International Workers as unconstitutional and arbitrary, relying, amongst other things, on the following:

Taxation of Stridhan.

In the case of "Maya Gopinathan vs Anoop SB 2024 INSC 334," the Hon'ble Supreme Court provided insightful guidance on the definition of "Stridhan": 

Mumbai Tribunal rules premium received on redemption of debentures is taxable as interest and not “capital gains”

 This Tax Alert summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (ITAT), in the case of Khushaal C. Thackersey  (Taxpayer) wherein the issue before the ITAT was whether the excess amount realized by the Taxpayer on redemption of debentures is in the nature of capital gains or in the nature of interest income under the Indian Tax Laws (ITL).

The ITAT held that amount received on redemption of debenture is realization of money advanced by creditor. The event of redemption does not give rise to capital gains. The excess realized by the Taxpayer on redemption of debenture on account of premium is in the nature of interest income and is taxable under the head ”Income from other sources”.

Delhi High Court allows MOOWR to Solar Power Plants

 This is to update you that today Delhi High Court in the case of Jakson Power Plant Limited has quashed the CBIC Instruction No. 13/2022 dated July 09, 2022, which disallowed benefit of MOOWR scheme to Solar Power Plants. This is great news for the industry.

 

Requirement to dematerialize shares of private limited companies

 The Ministry of Corporate Affairs in October 2023 had mandated private companies and their shareholders to dematerialize their shareholdings by 30 September 2024.

 

GST Input credit on construction of Immovable property.

Section 17(5)(c) and (d) of the Central Goods and Services Tax Act, 2017, blocks input tax credit for works contract services, goods or services that are used for the construction of an immovable property. Whereas, the explanation below the said provisions state that "construction" includes re-construction, renovation, addition or alterations, or repairs, to the extent of capitalization.