CA. Sachin Jindal

ITC is not eligible on expense incurred on CSR Activities
Judgements
CA. Sachin Jindal

ITC is not eligible on expense incurred on CSR Activities

The power conferred under Rule 86A is very drastic. Power under Rule 86A should be invoked only if fraudulent ITC or ineligible ITC has been claimed by the assessee and the authority has recorded the reasons for the same in writing.

The authority is bound to record the reasons of invoking Rule 86A in writing and communicate such reasons to the assessee. On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.

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Rule 86A can’t be invoked without communicating reasons of invoking rule 86A to the assessee
Judgements
CA. Sachin Jindal

Rule 86A can’t be invoked without communicating reasons of invoking rule 86A to the assessee

Hon’ble High Court held that power conferred under Rule 86A is very drastic. Power under Rule 86A should be invoked only if fraudulent ITC or ineligible ITC has been claimed by the assessee and the authority has recorded the reasons for the same in writing. In this matter, Hon’ble High Court relied on precedence of apex court in the matter of GKN Driveshafts (India) Limited Vs. ITO reported in (2003) 259 ITR 19 (SC) wherein it was held that in case of reopening of assessment under Section 143(3) of Income Tax Act,  the assessee should be afforded an opportunity of hearing and he is entitled to know the reasons for reopening and is also entitled to object to such reopening done by the Assessing Officer. Same analogy is applicable in the given case also, the authority is bound to record the reasons of invoking Rule 86A in writing and communicate such reasons to the assessee. On receipt of such reasons, the assessee is entitled to make his submission/objection requesting for lifting.

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Terms of Issuance of Duty Credit under RoDTEP
RoDTEP
CA. Sachin Jindal

Terms of Issuance of Duty Credit under RoDTEP

Now, vide Notification No. 76/2021-Customs (N.T.) dated 23rd September 2021, the Central Government has provide the manner to issue duty credit for goods exported under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme in accordance with Foreign Trade Policy. Benefit under the scheme shall be granted subject to such restrictions and conditions as specified in this notification.

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GST is not applicable on consideration collection from employee for canteen services
Judgements
CA. Sachin Jindal

GST is not applicable on consideration collection from employee for canteen services

The Amneal Pharmaceuticals Private Limited (The Appellant), is providing food facilities to its 500 employees. Canteen is run by a third party, i.e., Canteen Service Provider, to provide food to the employees. The Appellant collects a portion of the price of the canteen service provider from the employees by way of deduction from their salaries. To determine whether GST is payable on the amount collected from the employee, the appellant filed an appeal before GAAR wherein Hon’ble GAAR held affirmative and decided that appellant is liable to pay GST on such amount.

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Service provided by subsidiary/ sister concern/ group concern located in India to Foreign Company located outside India is considered as Export of services
Exports of Goods and Services
CA. Sachin Jindal

Service provided by subsidiary/ sister concern/ group concern located in India to Foreign Company located outside India is considered as Export

A lot of benefits are provided for “Export” of goods or services. However, various conditions are required to be fulfilled to qualify a transaction as “Export”. Similarly, to qualify a supply of service as “Export of service”, five conditions are provided under Section 2(6) of IGST Act, 2017.  However, one of the conditions given in clause (v) of Section 2(6) of IGST Act is always covered with lots of ambiguity. Considering the representations received, GST Council in 45th GST Council meeting recommended CBIC to issue necessary clarification around condition (v) of Section 2(6) of IGST Act, 2017. Therefore, CBIC issued

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45th GST Council Meeting| GST Update
Council Meetings
CA. Sachin Jindal

Briefing on 45th GST Council Meeting| GST Update

The GST Council met for the 45th Time on 17th September 2021 under chairmanship of the Hon’ble Finance Minister. In the 45th GST Council meeting, Major decisions were taken around the revision of GST rates on various goods such as COVID-related medicines, Paper Products, Waste of plastic, etc., and various other services also. Recommendations are also made around streamlining compliance under GST.

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