Identifying a Drafting Error in GST Amnesty Provisions

 Provision Regarding Amnesty Scheme

Section 128A was introduced into the Central Goods and Services Tax (CGST) Act by the Finance Act, 2024, with effect from November 1, 2024. The relevant portion of the provision is as follows:

SC dismisses SLP to hold that capital reduction leads to transfer of shares and exigible to capital gains taxation

This Tax Alert summarizes a ruling of the Supreme Court (SC) in the case of Jupiter Capital Pvt. Ltd. ^[1] (Taxpayer) which dismissed the petition filed by the Tax Authority against admissibility of capital loss arising in the hands of shareholders on cancellation of equity shares held in subsidiary company pursuant to a scheme of capital reduction. In other words, the issue under consideration was whether capital reduction by a company amounts to “transfer” under the Indian Tax Laws (ITL) in the hands of the Taxpayer-shareholder and, accordingly, whether the Taxpayer can claim capital loss, if any, pursuant to the same.

Now You Have to Pay GST on Losses as Well!

Recently, a few announcements made by our Finance Minister, Nirmala Sitharaman, sparked widespread discussions, particularly in the retail and automobile sectors. Some panic ensued, driven by misunderstandings about the impact of changes in tax rates on the sale of old cars. Let’s break down the scenario for better clarity.

Bad Debts: Section 36(1)(vii) and Key Legal Precedents

 Bad debts are a critical consideration for businesses when filing tax returns, and Section 36(1)(vii) of the Income Tax Act provides the framework for claiming such deductions. However, several conditions must be satisfied to qualify for this deduction. Let’s explore the section’s key provisions and some significant legal precedents that shape its interpretation.

Reduce your capital gain tax via a housing loan.

Many of us rely on home loans to purchase residential property, but are you fully aware of how tax laws impact your financial strategy? Under the current tax regime, deductions on home loan interest for self-occupied properties are capped at ₹2 lakh annually. So, what happens to the interest paid beyond this limit? Is it a loss, or can it be leveraged in another way?

 

HSN Reporting Changes in GST Returns

 This is to update you about a recent GST Advisory issued by GST portal with respect to the changes in reporting of HSN Codes in Table 12 of Form GSTR-1, w.e.f. January 2025 returns. 

ITC is available on GST charged on advances - High Court

 This is to update you about an important decision by Bombay High Court (‘HC’ / ‘Court’) in the case of L&T IHI Consortium v. UOI, W.P. No. 2980 of 2019. The Court held that Input Tax Credit (‘ITC’) shall be allowed to the recipient on Goods and Services Tax (‘GST’) charged by the supplier on advance payments.

 

-Gujarat HC holds assignment of leasehold rights is not liable to GST

 This Tax Alert summarizes the recent ruling  of the Gujarat High Court (HC). The issue pertains to levy of goods and services tax (GST) on assignment of leasehold rights by lessee (assignor) to a third party (assignee).

Comparison of doing business between Singapore & Hong Kong

 

Particulars	Singapore	Hong Kong
Corporate Tax rate	17%	16.5%.
Number of DTAA	102 countries	40 countries.
Capital gain tax	NO	YES
WHT on Dividend	NO	YES
Local Director	Min 1.	NO
Political Stability	Stable.	China factor is there.
IP Rights	In terms of international IP treaties, Singapore holds a distinct advantage over Hong Kong by being a member of a greater number of these agreements. This includes significant treaties such as the Brussels Convention, the Singapore Treaty on the Law of Trademarks, and the Hague Agreement Concerning the International Registration of Industrial Designs, among others
Bank Account Opening	No need for personal visit to branch	Directors require to visit bank for opening bank account.

CBDT extends due date for filing declaration under VSV 2, without payment of additional amount, to 31 January 2025

 This Tax Alert summarizes Circular No. 20/2024 dated 30 December 2024 (Circular) issued by the Central Board of Direct Taxes (CBDT) providing extension in due date for filing declaration under the Direct Tax Vivad Se Vishwas Scheme, 2024 (VSV 2) from 31 December 2024 to 31 January 2025. The Circular provides that any declaration filed on or before 31 January 2025 will not require payment of additional amount under VSV 2. Consequently, declarations filed on or after 1 February 2025 till sunset date (to be notified) will require settlement under VSV 2 with payment of additional amount