Professional Update for the day:


Direct Tax:

  • ITAT Hyderabad has held that Mobilisation/ trade advance has been wrongly treated as trade receivable. It is not to be subjected to TP. It cannot be re-characterised as receivables. Moreover, advances given as part of contract work does not require any special addition, when the TPO was already examined and held that the transaction relating to ‘work contract expenses’ are within the ALP during the year. [ DCIT Vs. M/s. Lanco Infratech Limited]
  • Time limitation for “initiation” of penalty proceedings under section 275(1)(c) of the Income Tax Act, starts from the date on which the AO wrote a letter recommending the issuance of the Show Cause Notice, and not from the date mentioned in the Show Cause Notice. Delhi High Court CIT v. Mahesh Wood Products Pvt. Ltd.
  • Generating profits out of publishing and selling of school text books can be treated as “Charitable purpose” and therefore, exemption under sections 11 and 12 of the Income Tax Act cannot be denied to the assesses-society. Delhi Bureau Of Text Books v. DIT(E), Delhi High Court.
  • The present Chairman of the CBDT Mr. Sushil Chandra got a one-year extension to continue in his post. He had taken over as chief of the Board on November 1 last year. 

Indirect Tax:

  • The case of the department is that the Cenvat credit on production or processing of goods is not liable to be paid by the job worker as service provider as the same was exempted under N/N. 8/05-ST dated 1-3-2005. It was held that from the combined reading of both the provisions of Section 93 and Section 5A of CEA, it is an option to the assesee in service tax whether to avail exemption notification or to pay service tax. [M/s V.N.S Industries Pvt. Ltd. Vs Commissioner of Central Excise]
  • Excise & Custom: Commissioner (Appeals) cannot entertain an appeal, namely, hear and decide it unless pre-deposit is made, he cannot insist upon payment of pre-deposit as a condition precedent for filing an appeal. [2017] 81 37 (Gujarat) 

GST Updates:

  • Under GST Inter-state supplies to Consumers up to Rs. 2.50 lacs made directly & through e-commerce portal to be shown separately in GSTR-1.
  • Goa Goods and Service Tax (GST) Bill 2017 will come into force from July onwards. The bill was unanimously passed in the Goa assembly amid projections of an increase in revenue between Rs 600 to Rs 1,000 crore.


Kindly clarify under what circumstances can a special order of exemption from tax under GST be issued?

Answer: Section 10(2) of Model GST law provides that the Central or State governments under circumstances of an exceptional nature, on the recommendation of the GST Council, by special order, exempt the levy of tax on goods and/or services on which tax is otherwise leviable. The circumstances of exceptional nature would need to be mentioned in the special order of the government.

Key dates:

  • Return of non – SSI assesses for april : 10.05.2017
  • Return by units paying duty > 1 crore (CENVAT + PLA) for April : 10.05.2017
  • Advance information for 2nd fortnight of may of functions with booking cost > Rs 1 lakh in banquet halls, hotels, etc. in delhi : 12.05.2017
  • E-payment of PF for April : 15.05.2017
  • Deposit of DVAT TDS for April : 15.05.2017
  • TCS returns by all collectors : 15.05.2017
  • Return of DVAT TDS for quarter ending march : 15.05.2017

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