SC decides on timelines for operationality of tax on mineral rights and waiver of interest and penalty

 This Tax Alert summarizes a recent ruling of the Supreme Court (SC) to decide whether the majority ruling of nine-judge bench of SC in case of Mineral Area Development Authority vs. Steel Authority of India (MADA) should be given prospective effect.

TDS Rate Chart for Financial Year 2024-25 and Assessment Year 2025-26:

 

Section

Particulars

TDS Rate Individual/ HUF (Indian Resident)(in %)

TDS Rate for (NRI) in India (in %)

Domestic Company (in %)

Other than domestic Company (in %)

Penalty for under reporting and misreporting of income

1. According to Section 270A of the Income Tax Act, if an individual underreports or misreports their income, an assessing officer (AO), a commissioner (appeals), a principal commissioner, or a commissioner may order them to pay a penalty of 50% and 200% of the tax due for under reporting and misreporting respectively.

Liasion office Income tax compliance

 Liaison office ("LO") - Annual compliance under Income Tax Act, 1961 ("IT Act") and related proposed amendment via The Finance (No. 2) Bill, 2024

Summary of changes in GST rules as amended by Notification No. 12/2024 CT dated 10.07.2024

 

Rule	Original Provision	Amended Provision	Impact/Notes
Rule 8	Application process under rule 8 including Aadhaar authentication.	Insertion of additional proviso for application process where applicant has not opted for an Aadhaar authentication, to undergo photograph and document verification at facilitation centers.	Ensures proper verification of applications with additional documentation and photograph requirements.

Transfer Pricing Documentation Requirements for Companies in Finland

Transfer pricing (TP) documentation is essential for companies engaged in inter-company transactions to ensure that their pricing aligns with the arm's length principle, which is critical for tax compliance. In Finland, the obligation to prepare and maintain transfer pricing documentation is subject to specific criteria and thresholds. This article outlines these requirements and provides insights into the simplified documentation process for smaller transactions.

What is a defective return?

Defective notice:

1. When any important information is missing or reported wrongly on the return, it is known as a defective return.

2. In any of the above cases, the income tax department issues a defective notice u/s 139(9) to the taxpayers, intimating them about the same and asking them to correct the inaccuracies present in the return.

How Veeru of Sholay explains new capital gain tax on property to Mousi.

Mousi to Jai: Beta, I have got this WhatsApp message that they have restored the indexation benefit. Is it correct Beta?

Allowing TDS credit to a person other than the recipient:

Need for allowance of TDS credit in the hands of person other than recipient:

1. As per Sec 199 of the Income Tax Act read with Rule 37BA of the Income Tax Rules, TDS credit shall be given to the person to whom payment is made or credit has been given.

Levy of Interest & Penalty on IGST on Import of Goods

 In an important update, the Finance Bill 2024 passed by Lok Sabha has proposed to substitute Section 3(12) of the Customs Tariff Act, 1975 (‘CTA 1975’) to provide for interest and penalty on Integrated Tax (‘IGST’) levied on import of Goods.

 

Key amendments to Finance (No.2) Bill 2024 at the enactment stage

 The Finance (No. 2) Bill, 2024 [FB (No. 2) 2024 or Bill] was presented by the Hon’ble Finance Minister (FM) Nirmala Sitharaman on 23 July 2024^[1]. While moving the Bill for approval by the Lok Sabha^[2] on 7 August 2024, the FM introduced amendments to FB (No, 2) 2024 (Amended Bill). The amendments are generally intended to address certain ambiguities/uncertainties arising from the proposals as contained in the Bill.

FM proposes Indirect tax related amendments to Finance (No. 2) Bill, 2024

 This Tax Alert summarizes indirect tax related amendments to Finance (No. 2) Bill, 2024, proposed by the Hon’ble Finance Minister and introduced in Lok Sabha.

Provisions of Customs Tariff Act, 1975 are amended to postulate that the provisions of Customs Act, 1962 including those relating to the date of determination of rate of duty, assessment, non-levy, short-levy, refunds, exemptions, interest, recovery, appeals, offences and penalties shall apply to duty or tax or cess as they apply to duties under Customs Act.

Similar provisions have been inserted under the relevant Finance Acts for National Calamity Contingent Duty (NCCD), Special additional excise duty, Additional duty of excise, Social Welfare Surcharge, Road and Infrastructure Cess, Health Cess, and Agriculture Infrastructure and Development Cess.

For the abovementioned duties, surcharge and cesses, the provisions of Customs Act, 1962 and Central Excise Act, 1944, as the case may be, shall apply accordingly.


Comments:

GST Appellate Tribunal - Recent Developments with Brief Landscape

 This update intends to provide you a brief landscape and recent developments w.r.t. GST Appellate Tribunal. The details are as under:

 

Key points on Filling Appeal before GST Appellate Tribunal

Q1. Who can file an appeal to GSTAT?

A1. S.112(1) any person aggrieved by an Order passed against him U/s 107 (First Appellate Authority) or S.108 (Revisional Authority) may file appeal to GSTAT against such order

TDS on partner’s remuneration introduced in the Budget:

 Introduction:

1. Budget 2024 proposes a deduction of TDS @ 10% on payment by a partnership firm or a LLP to their partners, which may be in form of Salary or remuneration or commission or bonus or interest, when the aggregate amount exceeds Rs. 20,000 in a financial year.

Slump sale more attractive post budget.

"The reduction in tax rates to 12.5 percent is significant. Companies may increasingly opt for slump sales, especially when there is a need to redeploy cash within the transferor company. Slump sales might also become more common for entering into strategic joint ventures or facilitating staggered private equity buyouts, where the transferor continues for a few years before eventually exiting through the sale of shares. The lower rate of 12.5 percent on the sale of shares would facilitate joint venture structures, particularly when cash needs to be redeployed within the transferor company.

Amendments made in Form 3CD effective from AY 2024-25:

Below are the clauses in which changes are made:

1. Clause 8a (Whether company has opted for the special tax regime with lower tax rates)-
Clause 8a adds the reference to Section 115BAE.

Supreme Court Upholds Vodafone Idea’s Non-Liability for TDS on Payments to Non-Resident Telecom Operators

 Vodafone Idea Ltd (TS-547-SC-2024)

Facts:
1. The Assessing Officer (AO) issued a notice to Vodafone, asserting that the company failed to deduct TDS on payments made to the NTOs and Belgacom for the years 2008–09 to 2015–16, as mandated by Section 195 of the Income Tax Act, 1961.

Due Date for claiming credits under GST

 Section 16(4) provides the last date within which the credit for any particular FY can be claimed. Post the 53rd GST Council meeting, changes have been announced wrt the last date for claiming credit

SC upholds legislative power of States to impose taxes on mineral rights

 This Tax Alert summarizes a recent ruling of the Supreme Court (SC) on the distribution of legislative powers between Union and States on the taxation of mineral rights.