Updates: Income Tax, GST & Company Law (20 June 2017)


Updates: Income Tax, GST & Company Law (20 June 2017)


Income Tax


1. CBDT has revised Form No. 3CED for APA; seeks Taxpayer’s Identification Number of foreign AE( CBDT Notification dated 16 June 2017) 

2. Stating wrong section in reassessment notice won't nullify proceedings if assessee was actively participating in it (Where assessee was given due opportunity of meeting case made against him and he had actively participated in assessment proceedings, in such circumstances in view of provisions of section 292B, mere mentioning of wrong section, i.e., section 153A, instead of section 153C, would not invalidate assessment proceedings) ([2017] 82 taxmann.com 170 (Bengaluru – Trib.)

3.No disallowance u/s 14A if assessee had invested surplus fund to earn exempt income (Where assessee was already having its own surplus fund against which small investment was made, there was no question of making any disallowance of expenditure in respect of interest and administrative expenses under section 14A) [2017] 82 taxmann.com 171 (Gujarat)

4. Power of Attorney holder can be subject to scrutiny on basis of AIR info of property dealing: ITAT (Where scrutiny notice for property deal is issued to Power of Attorney Holder based on AIR data, he can be validly assessed in personal capacity for property deal entered into in his name in respresentative capacity. In such scrutiny proceedings, he can contest the adjustments made but cannot insist that no personal assessment be made on him as his name appears in sale deed in capacity as POA holder. The fact that scrutiny notice is not stamped AIR will not make it a non-AIR case where it is clear that case selected based in AIR data) [2017] 82 taxmann.com 370 (Chennai - Trib.)


Goods and Service Tax (GST)


1. Decisions with respect to GST rates for Services  by the GST Council in the 17th meeting - 18 June 2017


i. It has been decided in respect of the service of transport of goods by a vessel that GST rate of 5% will be available with ITC in respect of input services and GST paid on ships, vessels including bulk carriers and tankers.

ii.It has been decided that accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes where room tariff is Rs 2500/- and above but less than Rs 7500/- per room per day shall attract GST rate of 18% with full ITC.

iii. Accommodation in hotels including 5 star and above rated hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, where room rent is Rs 7500/- and above per day per room shall attract GST rate of 28% with full ITC.

iv.Supply of Food/drinks in air-conditioned restaurant in 5-star or above rated Hotel shall attract GST rate of 18% with full ITC.

v. It has been decided that supply of lottery shall attract GST rates as under –

1. Lottery run by State Governments – 12% of face value of lottery ticket
2. Lottery authorized by State Governments – 28% of face value of lottery ticket

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