India – Supreme Court holds that DRI officers not empowered to issue SCN when custom officer allows exemption from customs duties at the time of clearance

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.

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India – Supreme Court decision taxation of software payments

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).

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Poland – Polish Supreme Administrative Court decision related to the VAT treatment of supplies of medical device equipment (judgment of 30 July 2020, no I FSK 2120/19)

The recently issued judgment of the Polish Supreme Administrative Court related to the VAT treatment of supplies of medical device equipment (judgment of 30 July 2020, no I FSK 2120/19) is of importance to the industry.

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US – State and Local Tax – Quill overturned by Supreme Court – What’s Next?

On June 21, 2018, the Supreme Court in South Dakota v. Wayfair overturned the long-standing precedent that a business must have a physical presence in a state for the state to require it to collect sales taxes. Read More »

India – Trade discounts are permissible deductions from total turnover and cannot be disallowed as original tax invoice issued did not indicate discount

The tax authorities have always disputed the claim of post-sale trade discounts (cash or quantity discounts) claimed by the taxpayers on the ground that the said discounts were not linked to any sale invoices. Hence, claim of deduction towards such discounts from the sales turnover were disallowed. Read More »