Recently, the Supreme Court held that officers of the Directorate of Revenue Intelligence (DRI) are not empowered to issue show cause notices (SCN) when the custom officer (of the Appraisal group) allows exemption from custom duties at the time of clearance. The Court also observed that only an officer that undertakes assessment can re-assess the issue and the term ‘the proper officer’ under section 28(4) of the Customs Act, 1962 (Customs Act) has to be understood as the same officer (designation) that had assessed the goods at the time of clearance. The Court also held that the entrustment of the functions of customs officers to the DRI vide notification issued under section 2(34) of the Customs Act is not proper.
Recently, the Supreme Court1 has held that the amounts paid to the non-resident software suppliers, which do not create any right or interest with the distributor/ end-user for use of or right to use any copyright are not royalty under the Double Tax Avoidance Agreement(s) (DTAA). Therefore, the Indian payers were not liable to deduct tax at source (TAS) under section 195 of the Income-tax Act, 1961 (the Act).
The Indian Finance Minister presented Budget 2021 resting on 6 pillars with focus on providing impetus to Infrastructure, Manufacturing, Financial Sector and generation of Employment. On the tax proposals, the proposals convey a holistic approach to accelerate India’s revival and growth. Please find below summarised points of interest:
The Prime Minister (PM) launched a platform for “Transparent Taxation – Honouring the Honest.” The tax system aims at being Seamless, Painless and Faceless with three pillars under consideration: (a) Faceless Assessment, (b) Faceless Appeals, and (c) Taxpayers’ charter, with faceless assessment and taxpayers’ charter coming into force from 13 August 2020, and faceless appeals to be available from 25 September 2020.
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To promote the “Make in India” initiative and as part of the ease of doing business measures, the Central Board of Indirect Taxes and Customs (CBIC), had notified the Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019 (Scheme). This Scheme enabled businesses to import raw materials and capital goods without payment of duty for manufacturing and other operations in a bonded manufacturing facility for exports, while allowing import duty deferral for the domestic market.
Recently, the National Anti-Profiteering Authority (NAA) held a multiplex owner guilty of profiteering under section 171 of the Central Goods and Service Tax Act, 2017 (CGST Act). The NAA has upheld the allegations of the Directorate General of Anti-profiteering (DGAP) that post reduction in the rate of GST from 28% to 18%, the taxpayer had increased the base price while maintaining the same selling price for the services rendered.
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The Ministry of Law and Justice issued the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 (Ordinance) to introduce relief measures like extension of time limit for filing appeals, passing of order, issuance of notice etc considering the COVID-19 pandemic.
The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, vide recent notifications notified two schemes – Production Linked Incentive Scheme (PLI Scheme) for promoting domestic manufacturing of medical devices and Scheme for Promotion of Medical Devices Parks (PMDP Scheme), in line with the Cabinet’s announcement in March 2020.
COVID-19 update: Relief measures announced by Finance Minister to support Indian economy.
Welcome to this podcast on the relief measures announced by Finance Minister (FM) on 13 May 2020 to support Indian economy.
Developing and enhancing your tax strategy requires experience and foresight in order to make the best decisions that can strategically move your business forward while ensuring the process to maintain tax compliance is ‘managed’. To help you better manage existing VAT compliance concerns and navigate new challenges, we are sharing our knowledge and best practice managing VAT compliance in today’s digital age.