The CBIC issued the GST Instruction No. 02/2022-GST dated 22.03.2022. The said instruction is issued to provide the Standard Operating Procedure (SOP) for scrutiny of returns for FY 2017-18 and 2018-19. Given below the key highlights of the instruction for the ready reference:
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· The Karnataka High Court has held that the exemption on residential dwelling under the Goods and Services Tax (GST) will be applicable even if the lessee does not use the premises. The HC observed that a hostel falls within the purview of residential dwelling as the same is used for the purpose of residence. Thus, leasing of residential premises as hostel to students and working professionals will not attract GST.
·
The Bombay High Court has held that as per the
Goods and Services Tax (GST) rules, any reference to electronic filing of
refund application would include manual filing of refund
·
The Madras High Court has allowed the Credit of
Service Tax Paid under RCM which could not be availed as Transitional Credit
under the Goods and Services Tax ( GST ) regime
·
Gujarat high court
held that Negative blocking of Electronic Credit Ledger not allowed under Rule
86A of the Act.
·
Allahabad High Court
has held that the refund application under the Goods and Service Tax (GST)
cannot be rejected merely on the ground of delay.
·
The Bombay High Court has heavily criticized
the Income Tax Department for not being transparent with taxpayers in sharing
the requested information basis of reopening action
·
The Cochin bench of the ITAT has held that the
carry forward of business loss cannot be denied to the assessee merely on the
ground that the statutory audit/tax audit was not completed within the
prescribed period
·
ITAT Bangalore bench has held that the
expenditure allowed for corporate social responsibility (CSR) of the assessee
shall be allowed as business expenditure under section 37(1) of the Income Tax
Act, 1961.
·
The Mumbai bench of the ITAT has held that the
interest received on loan given to the related party for business purpose cannot be
subjected to provisions of section 40A(2)(b) of the Income tax Act, 1961.
·
The
Supreme Court (SC) has held that for granting the exemption based on the nature
of the agreement, the said agreement should be read as a composite whole. The
SC viewed that just because the agreement contained a provision for payment on
rate basis, it would not make it a job work agreement and mentioned that
crucial elements of a job work agreement were missing in the said agreement.
Accordingly, it was opined that the contract is a pure and simple contract for
the provision of contract labour and an attempt has been made to camouflage it
as a contract for job work.
We
have put together few important year-end compliance tasks in relation to
Indirect Taxes, for your perusal:
Tasks before March 31, 2022
The TDS under section 194R is applicable from July 1, 2022, and companies require to deduct TDS @ 10% in case they provide any benefit to persons other than their own employees. In this regard, please refer to the below table with different scenarios and provide your input on the comment section. we will share the final outcome of the same with everyone.
The CBDT issued Circular No. 04/2022 dated March 15, 2022 regarding income tax deduction from salaries during the Financial Year 2021-22 under section 192 of the Income-tax Act, 1961 (“the IT Act”).
This Tax Alert summarizes a recent Notification1 issued by Central Board of Indirect Taxes and Customs (CBIC) notifying the Shipping Bill (Post export conversion in relation to instrument based scheme) Regulations, 2022.
