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List of Tax Flash News

01 Jan, 2020 to 07 August, 2020

Date

Title

Citations

08/07/2020 India Tax Konnect - July 2020 Notification 35 of 2020, dated 24 June 2020
08/04/2020 Payment for hiring vehicles to a truck operator is liable for TDS since it was a payment made to a sub-contractor. Further the disallowance under Section 40(a)(ia) not only covers the amount ‘payable’ but also when it is ‘paid’ and tax has not been deducted on the same – Supreme Court Shree Choudhary Transport Company v. ITO (Civil Appeal No. 7865 of 2009) - Taxsutra.com
07/31/2020 Disallowance under Section 14A is justified since the tax officer has followed the prescribed procedure CIT V. Tamilnadu Industrial Development Corporation Limited - [TCA Nos. 509 & 510 of 2018]- Taxsutra.com
07/31/2020 Payment for infrastructure and data centre services is not taxable as royalty under the India-Singapore tax treaty. Further management service fees and referral fees are not taxable as FTS Edenred Pte Ltd. v. DCIT (ITA No. 1718/Mum/2014) - Taxsutra.com
07/27/2020 Payment for web hosting and promotion services is not taxable as fees for included services under the India-US tax treaty  Esm Sys Pte Ltd. v. ITO [ITA No. 350/Ahm/2018, AY-2013-14] - Taxsutra.com
07/24/2020 Since activities of Foreign company’s project office were preparatory or auxiliary in nature, such project office does not constitute a fixed place PE   DIT v. Samsung Heavy Industries Co Ltd. (Civil Appeal No. 12183 of 2016] - Taxsutra.com
07/23/2020 Customs Update I Crowd Sourcing of Suggestions  Instruction No. 14/2020-Customs dated 21 July 2020
07/23/2020 Production linked incentive scheme (PLIS) to promote domestic manufacturing of critical Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs)  Ministry of Chemicals and Fertilizers (Department of Pharmaceuticals) Notifications dated 21 July 2020
07/22/2020 Payment for database access and market research report is not taxable as ‘royalty’ under the India-Switzerland tax treaty  IMS AG v. DCIT (ITA No. 6445/Mum/2016) - Taxsutra.com
07/21/2020 The seconded employee does not constitute a service PE in India under the India-Singapore tax treaty DDIT v. Yum Restaurants (Asia) Pte. Ltd. (ITA No. 6018/Del/2012) - Taxsutra.com
07/20/2020 Pursuant to transfer of business unit, unutilised ITC under different heads can be transferred to other states by filing ITC 02 – Authority for Advance Ruling, Andhra Pradesh Shilpa Medicare Limited [2020-VIL-199-AAR]
07/16/2020 CBDT issues directives to the tax authorities to expedite various procedures relating to TDS certificates, tax evasion petition, cases pending before CIT(A) and ‘Vivaad-se-Vishwas’ Scheme CBDT Letters. dated 9 July 2020
07/15/2020 CSR donations are eligible for deduction under Section 80G of the Income-tax Act subject to specified exceptions Under section 135 of the Companies Act, 2013.
07/14/2020 CBDT Circular - one-time relaxation for verification of tax-returns for AYs 2015-16 to 2019-20 which are pending due to non-filing of ITR-V Form CBDT Circular No. 13/2020, dated 13 July 2020
07/09/2020 The tax officer can pass a rectification order against an incorrect MAT credit granted to the taxpayer as it is a mistake apparent from the record Finserv India Pvt. Ltd. v. ACIT [ITA No. 6583/Del/2019, - AY. 2013-14] - Taxsutra.com
07/08/2020 Rental loss from a hotel unit in US and share of loss in US LLCs are treated as ‘income from other sources', eligible for set-off against salary income in India Rohit Kapur V. ACIT - [ITA No. 9016/Del/2019, AY-2016-17] - Taxsutra.com
07/06/2020 CBDT amends TDS Rules in line with various TDS related amendments introduced by the Finance Act, 2020 Section 194-O
07/06/2020 Non-Resident’s explanation of cash deposit in his Non Resident Ordinary (NRO) Account acceptable in light of partial evidence Section 69 of the Income-tax Act, 1961
07/03/2020 TDS threshold will apply to each joint owner of the property separately while deducting tax on the payment of rent MP. Warehousing & Logistics Corporation v. ACIT (ITA No. 491/Ind/2019) - Taxsutra.com
07/02/2020 CBDT notifies certain classes of persons for non-applicability of Section 56(2)(x) and 50CA of the Income-tax Act Notification No. 40/2020, dated 29 June 2020 and notification No. 42/2020, dated 30 June 2020
06/29/2020 Benefit of Section 10A is allowed on the enhanced income pursuant to the MAP resolution Dell Internaltional Services India Pvt. Ltd. v DCIT (IT(TP)A No. 879/Bang/2018, AY-2007-08) - Taxsutra.com
06/29/2020 Clarification regarding exemptions/ deductions under the new tax regime Notification No. 38/2020 dated 26.06.2020
06/29/2020 Notification update | Period of limitation – extension of timelines 1 Specified section under the Customs Act - Section 30, 30A, 41, 41A, 46 and 47
06/27/2020 CBDT issues clarifications to extend various time limits under direct tax laws 1 CBDT Notification No. 35/2020, dated 24 June 2020
06/22/2020 The Division Bench of the Mumbai Tribunal  refers the matter with respect to the amendment curtailing the powers of the Tribunal on stay matters to a Larger Bench 1 Tata Education and Development Trust v. ACIT (SA Nos. 147 and 148/Mum/2020) - Taxsutra.com
06/19/2020 Payment of guarantee fee to a group entity is not taxable under the India-Netherlands tax treaty 1 Lease Plan India Pvt. Ltd. v, DCIT (ITA No. 6461 & 6462/del/2015)- Taxsutra.com
06/18/2020 Supreme Court dismisses petition filed against the High Court direction to re-open the portal for TRAN-1 submission 1 Chogori India Retail Limited [TS-375-SC-2020]
06/15/2020 The Mumbai Tribunal issues guidelines for email communication in connection with the judicial matters 1 Mumbai Tribunal Guidelines, Source - Taxsutra.com
06/15/2020 GST update | Notifications and circular to facilitate trade N/A
06/11/2020 GST circular update | Levy of GST on remuneration paid to employee directors 1 Circular no. 140/10/2020 -  GST dated 10 June 2020
06/09/2020 Interest on loan given to sister-concerns for equity infusion in group companies cannot be allowed as deduction under the Income-tax Act 1 Abhinav International Pvt. Ltd. v, DCIT [ITA No. 489/DEL/2017 (AY 2013-14)] - Taxsutra.com
06/09/2020 VAT Update| Implanting of prosthetics into physiology or the body of the patient construed as ‘works contract’ – Madras High Court 1 MIOT Hospitals [2020-VIL-238-MAD]
06/06/2020 The AAR rejects application because the arrangement was designed prima facie to avoid tax and to avail the benefit under the India-Mauritius tax treaty 1 Tiger Global International II Holdings [2020] 116 taxmann.com 878 (AAR)
06/05/2020 CBDT notifies income tax return forms for the Assessment Year 2020-21 1 Notification No. 31/2020, dated 29 May 2020
06/03/2020 Production linked incentive scheme (PLIS) to promote domestic manufacturing of Medical Devices

1 INR 1 Crore is equal to INR 10 million

2 1 USD = INR 75

06/03/2020 In a court approved scheme, the resulting company is eligible to set-off brought forward losses transferred from the demerged company and claimed through a revised return 1 ACIT v. Padma Logistics & Khanji Pvt. Ltd. (I.T.A No. 606/Kol/2018) - Taxsutra.com

05/23/2020

Bad debt claim on account of sale of investment is allowed as business loss even though the profit from similar transaction was offered under the head capital gains during earlier years

1 Anant Raj Ltd. v. ACIT- [ITA No. 5169 & 5677/Del/2017, AY- 2013-14]- Taxsutra.com

05/21/2020

Provisions dealing with the acceptance of payment through the prescribed electronic modes are not applicable to B2B transactions

CBDT Notification No. 105, dated 30 December 2019

05/20/2020

Digital content developed by an animation company is a copyrighted intangible asset and not a computer software. Therefore, eligible for depreciation at the rate of 25 per cent and not 60 per cent

Pentamedia Graphics Ltd. v. DCIT- [ITA No. 1406 & 1407/Chny/2015, AY- 2007-08 & 2009-10]- Taxsutra.com

05/18/2020

Principal component of lease rent paid for Set-top Boxes is not allowed as revenue expenditure. However, higher depreciation at 60 per cent is allowed on such Set-top Boxes

Fastway Transmission (P) Ltd v. ACIT (ITA No.140/Chd/2019) –
Taxsutra.com

05/15/2020

Shares received as a part of a family arrangement is not sham or colourable transaction to avoid tax

Glebe Trading Pvt Ltd. v. ITO- [ITA No. 191/Del/2019, AY- 2014-15]- Taxsutra.com

05/15/2020

The Finance Minister announces several measures under Provident Fund regime to revive the economy from the COVID-19 outbreak

Press release issued by the Ministry of Finance Source - https://pib.gov.in - dated 13 May 2020 Accessed on 15 May 2020

05/14/2020

CBDT issues press release relating to reduction in TDS/TCS rates

CBDT press release, dated 13 May 2020

05/13/2020

The Finance Minister announces several measures (including tax measures) to revive the economy from the Covid-19 outbreak

Economy, Infrastructure, System, Vibrant Demography and Demand

05/12/2020

Foreign celebrity appearing in a product launch event organised abroad for promoting business in India, constitutes business connection in India

Volkswagen Finance Pvt Ltd. v. ITO [ITA No. 2195/Mum/2017, AY- 2015-16] - Taxsutra.com

05/11/2020

Period of stay in India during lockdown not to be counted for determining residential status of NRIs, foreign nationals

Section 6 of the Act

05/11/2020

COVID 19 Relaxation on Travel

For details, please refer:
https://assets.kpmg/content/dam/kpmg/in/pdf/2020/04/KPMG-Flash-News-COVID-2019-impact-on-Indian-immigration.pdf

05/09/2020

India amends Mutual Agreement Procedure Rules

Notification No. 23/2020, dated 6 May 2020

05/08/2020

Supreme Court’s decision on the granting of refund when scrutiny proceedings have been initiated

Vodafone Idea Ltd v. ACIT (SLP(Civil) No.1169 of 2019) – Taxsutra.com

5/07/2020

GST Circular update – Clarification with respect to challenges faced by registered person in adhering to compliance requirements

-

5/07/2020

Delhi High Court directs revenue to allow filing of TRAN-1 till 30 June 2020

TS-256-HC-2020(DEL)-NT 

5/06/2020

India Tax Konnect

The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

5/06/2020

GST notification update – Due date for filing of GST Annual return for FY 2018-19 extended till 30 September 2020

-

5/05/2020

Kerala Amnesty scheme 2020 to settle pre-GST regime disputes

Circular no. 2/2020 dated 4 April 2020

5/01/2020

Payment of non-compete fee is capital expenditure. However, depreciation is not allowed on such expenditure

1 Hindustan Coca-Cola Beverages- [ITA No. 2699/Del/2015]

4/30/2020

Though an entity is operating under the non-profit principle, it is not eligible for tax exemption in the absence of elements of mutuality – Supreme Court

1 Yum Restaurants (Marketing) Pvt Ltd v. CIT (Civil Appeal No. 2847 of 2010) - Taxsutra.com

4/28/2020

Income from technical handling services provided by a foreign airline company to the International Airlines Technical Pool is not taxable in India under the India-France tax treaty

1 Air France v. ACIT [I.T.A No. 5008/DEL/2011 (A.Y 2004-05)] - Taxsutra.com

4/28/2020

CBDT issues corrigenda to the revised circular relating to FAQs on 'Vivad se Vishwas Scheme'

1 CBDT Circular No.7/2020, dated 4 March 2020

4/28/2020

CBDT defers reporting of GAAR and GST under the Tax Audit Report till 31 March 2021

Section 44AB of the Income-tax Act, 1961 read with Rule 6G of the Income-tax Rules, 1962

4/26/2020

Liaison office of UAE based company does not constitute a Permanent Establishment in India – Supreme Court

UOI v. U.A.E. Exchange Centre (Civil Appeal No. 9775 OF 2011) – Taxsutra.com

4/23/2020

CBDT issues FAQs on the ‘Vivad se Vishwas Scheme’ with certain modifications

1 Circular No. 7 of 2020, 4 March 2020

4/22/2020

EPFO and PFRDA Notification and circular pursuant to relief measures announced by Government of India

2 Notification – Notified in official gazette on 27 March 2020

4/18/2020

COVID 19 impact on Indian Immigration

1 For details, please refer https://boi.gov.in/ 

4/17/2020

Employee linked deduction is available to the employer even if the ‘specified days’ condition is fulfilled by employees during subsequent years

3 300 days for relevant assessment year 

4/15/2020

CBDT issues clarification regarding short deduction or collection of tax due to increase in rates of surcharge by the Finance (No.2) Act, 2019

1 CBDT Circular No. 8/2020, dated 13 April 2020

4/14/2020

Supreme Court’s decision on the re-assessment proceedings

1 New Delhi Television Ltd v. DCIT (Civil Appeal No. 1008 of 2020) (SC) – Taxsutra.com

4/14/2020

Clarification regarding adoption of concessional rates under the optional tax regime at the time of deduction of tax at source by employer

2 Section 139(1) of the Income-tax Act,1961  

4/14/2020

GST Circular update – Clarification on the challenges faced in adhering to compliance requirements

1 Circular no. 137/07/2020-GST dated 13 April 2020 

4/10/2020

Exemption from levy of customs duty and health cess on medical goods

1 Notification no. 20/2020-Customs dated 9 April 2020 

4/7/2020

CBDT issues directions relating to lower or nil TDS/TCS certificates for FY 2019-20

1 Under Section 195, 197 or 206C(9) of the Income-tax Act 

4/6/2020

Form 15G and 15H submitted for FY 2019-20 for non-deduction of tax at source are valid till 30 June 2020

2 Rule 31A of the Income-tax Rules, 1962

4/6/2020

Production Linked Incentive Scheme (PLIS) for Electronics Manufacturing

1 INR 1 crore is equal to INR 10 million

4/6/2020

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

1 INR 1 crore is equal to INR 10 million

4/5/2020

Update - GST Notifications and Circular pursuant to relief announced by the Finance Minister

-

4/4/2020

Inter corporate deposit taken from sister concern is taxable as deemed dividend. However, payment for purchase of machinery on behalf of taxpayer and issue of debentures are not taxable as deemed dividend

1 ACIT v. Jasubhai Engineering Pvt Ltd (ITA No. 7519/Mum/2016, AY 2013-14) - Taxsutra.com

4/3/2020

KPMG Tax Assemblage – January to March 2020

-

4/2/2020

'Fully Accessible Route' for Investment by Non-residents in Government Securities

-

4/1/2020

President promulgates the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

1 PIB release, dated 24 March 2020

4/1/2020

CBDT issues order to provide relief with respect to lower or nil TDS/TCS certificates in view of COVID-19

1 Under Section 195 and 197 of the Act

4/1/2020

Corporate guarantee fees are not taxable as FTS under the India-France tax treaty. Surcharge and cess cannot be levied on the tax charged on gross basis under the tax treaty

1 JCDecaux S.A v. ACIT (ITA No. 1630/Del/2015, AY 2011-12)- Taxsutra.com

3/27/2020

Update - GST Notifications and Circulars pursuant to the announcement made by the GST Council on 14 March 2020

Foreign Exchange Management Act, 1999

3/24/2020

Proposed amendments to the Finance Bill, 2020

Under Section 115BAA 

3/24/2020

The Finance Minister announces several relief measures in view of Covid-19 outbreak

PIB Release, dated 24 March 2020 – Source: Press Information Bureau

3/23/2020

Since the tax credit is not available, taxes paid in a foreign country are allowed as business expenditure

irmati Software & Telecommunication Ltd v. DCIT [ITA No. 1135/AHD/2017]
– Taxsutra.com

3/20/2020

Government notifies rules and forms relating to 'Vivad se Vishwas' Scheme

Notification No. 18/2020, dated 18 March 2020

3/18/2020

Dividend earned from strategic investment is business income and brought forward business loss can be set-off against such income

amilnadu Industrial Development Corporation v. ACIT (ITA No.
1181/Chny/2008, AY 2003-04)- Taxsutra.com

3/16/2020

New India Tax Konnect

IRCON International Ltd v. DCIT [ITA No. 977/Del/2010 (AY 2004-05)]

3/15/2020

GST Council meeting update held on 14 March 2020

 

3/13/2020

Disallowance of expenditure under Section 14A does not apply to insurance business

PCIT v. Oriental Insurance Co Ltd - [TS-148-HC-2020 (Del)] – Taxsutra.com

3/12/2020

A Mauritian company does not constitute an Agency PE in India on account of distribution of a sports channel by its subsidiary in India

CIT v. Taj TV Limited (ITA No. 1984/Bom/2017) – Taxsutra.com

3/11/2020

Payments to foreign attorneys for rendering services in the field of IPRs are FTS under Section 9(1)(vii) of the Income-tax Act

ACIT v. Sri Subhatosh Majumder (ITA No. 2006/Kol/2017, AY 2011-12) – Taxsutra.com

3/5/2020

Lok Sabha passes ‘The Direct Tax Vivad se Vishwas Bill, 2020’ with certain amendments

 

3/3/2020

Equipment and service contracts are treated as a composite contract and from off-shore supply 35 per cent of profits are attributed to a PE in India

Voith Paper GmbH v. DDIT (ITA No. 1077/Del/2014) – Taxsutra.com

2/21/2020

Amnesty Scheme’s announced by state (Kerala and West Bengal) to settle pre-GST regime indirect tax dispute

 

2/17/2020

Interest on delayed payment is to be calculated on net tax liability (cash-component) – Madras High Court

Refex Industries Limited [TS-89-HC-2020(MAD)-NT]

2/14/2020

Loss on cancellation of shares pursuant to capital reduction can be treated as long-term capital loss and it can be carried forward to subsequent years

Carestream Heath INC v. DCIT (ITA No. 826/Mum/2016) – Taxsutra.com

2/13/2020

India releases synthesised text for the application of tax treaty with Luxembourg as modified by the MLI

 

2/11/2020

Based on the Protocol to the India-Switzerland tax treaty, FTS can be taxed on gross basis even though the Swiss company had a Service PE in India

AGT International GmbH v. DCIT (ITA No. 7465/Mum/18) – Taxsutra

2/10/2020

Non-taxable income under a tax treaty cannot be reduced from book profits for the computation of MAT

Under Section 115JA of the Act

2/8/2020

CBDT issues FAQs on the Direct Tax Vivad se Vishwas Bill, 2020

CBDT Circular No.7/2020, dated 4 March 2020

2/5/2020

The Direct Tax Vivad se Vishwas Bill, 2020 introduced in the Lok Sabha

Source – Taxsutra.com

2/4/2020

HS code - Import of goods under 'Others' category

Trade notice no. 37/2019-20 dated 22 October 2019

2/3/2020

CBDT notification specifying additional electronic modes of payment in various provisions of the Income-tax Act

Notification No. 8, 2020, dated 29 January 2020

1/31/2020

Madras High Court ruling on the applicability of Provident Fund contributions on Special allowance

Kichha Sugar Company Limited through General Manager vs Tarai Chini Mill Majdoor Union, Uttarakhand, (2014) 4 SCC 37

1/31/2020

KPMG-Flash-News-Indian-Economic-Survey-2019-20-Key-Highlights

Economic Survey 2019-20: Volume 2, Ministry of Finance, Accessed on 31 January 2020

1/31/2020

CPC (TDS) issues instruction for filing application for lower/nil tax deduction certificate

Instruction No. 01/2020, 30 January 2020

1/29/2020

Tax is not required to be deducted on reimbursement of expenditure incurred in foreign countries as well as on participation fees for a conference held outside India

Roche Diagnostics India Pvt Ltd. v. ACIT- ITA No. 1537/Mum/2016 (AY-2011-
12) - Taxsutra.com

1/27/2020

Levy of IGST on Ocean Freight unconstitutional – Gujarat High Court

Mohit Minerals Pvt. Ltd. [TS-29-HC-2020(GUJ)-NT]

1/15/2020

Tax needs to be deducted at source on year-end provisions since payees are identifiable and the provisions are for ascertained liabilities

Inter Globe Aviation Ltd. v. ACIT (ITA No. 5347/Del/2012) (ITA No.
4449/Del/2013) – Taxsutra.com

1/15/2020

Appeal can be filed directly to CIT(A) against an intimation issued under Section 143(1) by Centralised Processing Centre (CPC) even if the taxpayer has not approached CPC for the rectification

Dixit Rice Mill v. DCIT (CPC) (ITA No. 373/Agra/2018)

1/10/2020

AAR ruling, holding that free supply of medical instrument and reagents to be composite supplies quashed by High Court of Kerala

Abbott Healthcare Pvt. Ltd. [2020-VIL-08-KER]

1/09/2020

KPMG Tax Highlights

 

1/08/2020

CBDT notifies Income-tax Return forms (ITR 1 Sahaj and ITR 4 Sugam) for the Assessment Year 2020-21

Notification No. 01/2020/F. No. 370142/32/2019, dated 3 January 2020

1/07/2020

Prosecution proceedings can be initiated on a company for failure to deposit tax deducted at source

Dr. Viloo Patell and Avesthagen Limited (Writ Petition No. 47514 of 2017,
6 September 2019) – Taxsutra.com

1/07/2020

Social Welfare Surcharge liability to be paid in cash and not by debiting the MEIS/SEIS scrips – Madras High Court

TS-3-HC-2020(MAD)-CUST

1/06/2020

CBDT notifies electronic modes of accepting payment for a person having business turnover of exceeding INR 50 crores

Notification No. 105, (dated – 30 December 2019)

1/03/2020

GST Notification and Circular update

 

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