TAX DUE DATE - AUGUST 2025

 

Sl. No	Due Date	Related to	Compliance to be made
1	11.08.2025	GST	Filing of GSTR – 1 for the month of July 2025
2	31.08.2025	Income Tax	Filing of Form 10 of Charitable Trust
3	13.08.2025	ISD	Filing for the month of July 2025
4	20.08.2025	GST	Payment & filing of GST return for the Month of July 2025 - Form GSTR 3B
5	07.08.2025	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 July 2025. · Deposit TDS from Salaries deducted during the month of July 2025 • Deposit TCS for collections made under section 206C including sale of scrap during the month of July 2025, if any • Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of July 2025, if any

HC holds Show Cause Notice cannot be clubbed and issued for more than one financial year

This Tax Alert summarizes the recent ruling of the Madras High Court (HC)  on bunching of show cause notices (SCN) for multiple financial years (FY).

In the present case a single SCN was issued, and a single assessment order was passed by the assessing authority for six financial years, i.e. from FY 2017-18 to 2022-23. Aggrieved, the petitioner approached HC by filing a writ petition.

The key observations of the HC are:

Supreme Court rules that continuous and substantive control over operations of Indian entity establishes Fixed Place PE

This Tax Alert summarizes a two-judge bench Supreme Court (SC) ruling, in the case of Hyatt International Southwest Asia Ltd. (Taxpayer). The main issue under consideration before the SC was whether the activities of the Taxpayer (a Dubai-based company) under a Strategic Oversight Services Agreements (SOSA) entered into with various hotels in India led to the creation of a Fixed Place Permanent Establishment (PE) in India under Article 5(1) of India-UAE Double Taxation Avoidance Agreement (DTAA). Under the SOSA, the Taxpayer provided strategic planning services and know-how to hotels in India to ensure that the hotels were developed and operated as an efficient and a high-quality international full-service hotel.

HC rules secondment of employees not taxable under GST

 This Tax Alert summarizes a recent ruling of the Karnataka High Court (HC) ^[1] regarding taxability under reverse charge on secondment of employees from overseas related entity.

Advantage of ESOP thru Trust.

·       In case of direct issuance , there is a time lag of more than a month when employees exercise the option and when he finally gets the shares in his Dmat account. This time can be reduce to a week in a case of trust and this help employees to avoid price fluctuation.

Refund of DDT

 In the case of Polycab India Ltd. (Mumbai ITAT), the Tribunal allowed a refund of DDT paid on dividends distributed to International Finance Corporation (IFC), citing its immunity under Section 9 of Article VI of the IFC Act, 1958. The judgment interpreted that when an entity enjoys complete tax exemption, such exemption should extend fully to include dividends received, thereby making the distributing company (Polycab) eligible for a DDT refund on that portion.

50% Disallowance on Cash Receipts Above Rs. 200,000

🔹 New Tax Provision Introduced via Finance Act 2025

The Finance Act 2025 has introduced a significant amendment to Section 21 of the Income Tax Ordinance, 2001, by inserting a new clause (s). Under this provision, 50% of the business expenditure related to sales will be disallowed if the payment is received in cash exceeding Rs. 200,000 per invoice.

Is Section 50AA Applicable to MLDs?

1. Introduction

Section 50AA of the Income-tax Act, 1961, was introduced through the Finance Act, 2023, and is effective from Assessment Year 2024–25. It specifically governs the taxation of gains arising from the transfer or redemption of Market Linked Debentures (MLDs).

CBDT Clarifies: Interest Waiver Allowed for Periods Prior to Circular 5/2025

The Central Board of Direct Taxes (CBDT) has issued Circular No. 8/2025 dated 01.07.2025, providing much-needed clarity on the applicability of interest waivers under Sections 201(1A)(ii) and 206C(7) of the Income-tax Act. This clarification addresses doubts raised after the issuance of Circular No. 5/2025, dated 28.03.2025.

Key International Taxation Challenges for the IT-ITES Industry: Latest Developments

 The IT-ITES industry continues to face critical international taxation challenges that impact its global competitiveness and ease of doing business. Recent developments indicate progress, driven largely by sustained industry advocacy.

A Unique Tax Compliance Dilemma: When the Law Does Not Demand Tax, but the System Blocks Compliance

 In recent times, an unusual but significant problem has emerged that exposes the gap between legislative intent and technological execution within our tax compliance ecosystem. It concerns the procedural hurdles faced by tenants attempting to comply with TDS (Tax Deducted at Source) obligations on rent payments, particularly involving Form 26QC under the TRACES portal.

CBDT Issues Clarification on Waiver of Interest for Delay in TDS/TCS Deposits — Circular No. 8/2025

 CBDT vide Circular No. 8/2025 dated 01 July 2025 has provided a clarification in respect of waiver of interest levied under section 201(1A)(ii)/206C(7) (i.e. interest in relation to delay in deposit of TDS/TCS), in pursuance of Circular No. 05/2025 dated 28 March 2025. The said Circular was related to waiver of interest levied due to delay in TDS/TCS depositions for which the payments were initiated and amounts were debited on or before the due date from the bank accounts of the deductor/collector, however the same was not credited to the account of the Central Government before the due date, due to technical glitches.

India–Oman DTAA Gets a Major Upgrade!

 A new Protocol to the tax treaty between India and Oman came into force on May 20, 2025, bringing the agreement into line with BEPS standards, the UN Model Convention, and modern anti-abuse principles.

GST Update

 Regulatory Updates

• GSTAT Procedure Rules Clarified: A corrigendum issued for the GST Appellate Tribunal Procedure Rules, 2025, introduces technical amendments, ensuring clarity regarding overriding provisions and correction of form references.