Weekly Taxation Newsletter from 15th May, 2022 to 22nd May, 2022 E-Newsletter latest Due Dates, Notifications, Case Laws

We are delighted to share our 75th E-Newsletter “Weekly Taxation Newsletter” dated 23rd May, 2022 from 15th May, 2022 to 22nd May, 2022 with you. This E – Newsletter is a weekly reference / compilation of interesting and latest news related to tax including upcoming Timelines / Due Dates, Notifications / Press Information, Case Laws, International Taxation etc.

Due Dates under IT Act 1961

Sl.Compliance ParticularsDue Dates
1Due date of issuance of TCS certificates for the 4th Quarter of the Financial Year 2021-22.30.05.2022
2.Quarterly statement of TDS deposited for the quarter ending March 31, 2022.31.05.2022
3Due date for furnishing of statement of Specified financial transaction as per Section 285BA (1).31.05.2022
4Due date for e-filing of annual statement of reportable accounts by reporting financial institution.31.05.2022
      5“1. Due date for filing Application for allotment of PAN of non-individual resident person, which enters into a financial transaction of Rs. 2,50,000 or more during FY 2021-22 and has not been allotted any PAN. 2. Application for allotment of PAN in case of person being managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in Rule 114(3)(v) or any person competent to act on behalf of the person referred to in Rule 114(3)(v) and who has not allotted any PAN”.    31.05.2022

Under the GST, 2017

A. Filing of GSTR –3B / GSTR 3B QRMP

a). Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group B)

Tax periodDue DateNo interest payable tillParticulars
April, 202224th May, 2022  
Group B States: Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand, Odisha, Jammu and Kashmir, Ladakh, Chandigarh, Delhi

B. GST Refund:

Form No.Compliance ParticularsDue Date
RFD -10Refund of Tax to Certain Persons18 Months after the end of quarter for which refund is to be claimed

Major Update:

Attention: Attention: Taxpayers with AATO in excess of Rs 20 Crore are also required to generate e-invoice for their outward supplies w.e.f. 1st April, 2022.

Weekly Departmental Updates: Income Tax

1. Income tax return: Non-ITR filers? Be ready to face higher TDS

If you are among those individuals who have not filed the income tax return (ITR) for financial year 2020-21, then you will be on the list of non-tax filers and have to face higher tax deduction at source (TDS) from this financial fear. The Central Board of Direct Taxes (CBDT) has issued a circular regarding use of functionality under section 206AB and 206CCA of the Income-tax Act, 1961 to determine the non-filers who are subject to higher TDS from 1 April 2022.

According to the circular the specified persons are:

  1. He has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately before the previous year in which tax is required to be deducted/collected. Two previous years to be counted are required to be those whose return filing date under sub-section ( I) of section 139 has expired.
  2. Aggregate of tax deducted at source and tax collected at source is rupees fifty thousand or more in each of these two previous years.

Section 206AB provides TDS at rates higher than those prescribed in the Act while making payments or collections to those who have not filed their income tax return. Similarly, section 206CCA provides a collection of tax at source (TCS) on amounts received from the buyers at rates higher than specified in the Act. To read more Click Here

2. CBDT asks tax officers to not issue reassessment notices for 3 years till FY15

The Income Tax Department has asked field offices to not issue reassessment notices for 2012- 13, 2013-14 and 2014-15 fiscal years to small taxpayers wherein the income escaping from tax is less than Rs 50 lakh.

Issuing an instruction on implementation of the apex court judgement regarding notices sent beyond the three-year reassessment period, the department said that for FY16 and FY17 where the timeline for issue of such notices falls within the 3 years, tax officers will issue show-cause notices and provide information to taxpayers for initiating reassessment proceedings within 30 days.

Central Board of Direct Taxes (CBDT) asked tax officers to give taxpayers two weeks’ time to respond to such notices, which can be further extended at taxpayer’s request in genuine cases.

The Supreme Court had earlier this month ruled in favour of the I-T Department and upheld all reassessment notices issued on/after April 1, 2021– reopening assessments going back to up to 6 years. The government had in Budget last year (2021-22) reduced the reopening time for I-T assessments to 3 years from 6 years. To read more Click Here

3. Income tax returns filed for 2020-21 can now be revised

Taxpayers can now file updated income tax returns for 2020-21, with the Central Board of Direct Taxes (CBDT) amending the rules to implement a scheme announced in the union budget for FY23 and notifying the form for it, showed an official order.

In the Income-tax (Eleventh Amendment) Rules, 2022 notified on Friday, the CBDT said this facility for updating tax return is applicable for the assessment year starting 1 April 2020 and subsequent assessment years and have to be filed in form ITR-U, which has to be verified either by digital signature or by electronic code depending on the class of tax payer. Those requiring tax audits have to use electronic signature.

CBDT said that the tax payer filing an updated return has to show the reasons for the same. The form shows options such as not having filed the returns earlier, income not reported correctly or wrong heads of income chosen. Also, options including reduction of carried forward loss and reduction of unabsorbed depreciation and use of wrong tax rate are given.

The government believes that this facility would, on the one hand, bring use of huge data with the IT Department to a logical conclusion resulting in additional revenue realization and on the other hand, facilitate ease of compliance to the taxpayer in a litigation-free environment.

4. GAAR probe begins on companies suspected of tax avoidance

The revenue department has launched investigations under the anti-tax avoidance law, General Anti-avoidance Rule (GAAR), into companies and entities that may have used creative methods to avoid paying taxes.

A Hyderabad-based company, Ekge Retail, has received a notice in which the department has applied Section 96(1)(d) of the Income-tax Act, which deals with impermissible agreements undertaken to avoid taxation.

The company has now approached the high court for state of Telangana at Hyderabad challenging the applicability of the section for some transactions undertaken by it in 2018 and 2019. The notice was issued to the company in February 2022.

The government has now specified a procedure in which GAAR notices can be issued. It was decided that before issuing a notice, a tax officer must escalate the matter to a tax commissioner. If the commissioner is convinced, then it will be forwarded to a panel, which will have to give its approval before any action is taken. Source: Read full at Click Here

5. PAN, Aadhaar now mandatory for cash transactions above this amount

1For which amount quoting PAN, Aadhaar is mandatoryIf cash deposits and withdrawals in a financial year surpass Rs 20 lakh, the government has made quoting a PAN or Aadhaar number necessary when opening a current account or cash credit account with a bank.
      2      Earlier rule“Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated.”
      3      Closer look“The permanent account number or Aadhaar number along with demographic information or biometric information of an individual shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for the purposes of authentication referred to in section 139A.
          4          Notification detailsAs per the notification, every person to obtain and quote Permanent Account Number (“PAN”), wherein he enters into any of the following transactions: Cash deposits aggregating to Rs 20 lakhs or more in the financial year in one or more accounts with a bank or a post office.Cash withdrawal or withdrawal aggregating to Rs 20 lakhs or more in the financial year in one or more accounts with a bank or a post office.Opening of current account or cash credit account.
5PAN-Aadhaar linking deadlineThe deadline for maintaining your PAN active without linking it to your Aadhaar has been extended from March 31, 2022 to March 31, 2023

Source: Read more at Click Here

Important       Circulars and Notifications:

Sl.Particulars of the Notification(s)File No. / Circular No.Notification Link(s)
1Circular regarding use of functionality under section 206AB and 206CCA of the Income-tax Aci, 1961 – reg.Circular No. 10 of 2022Click Here
2The Income–tax (Fifteenth Amendment) Rules, 2022Notification No. 53/2022Click Here

Weekly Departmental updates:  

GST Updates

1. For reporting supplies at 6% rate in GSTR-1, please refer the advisory in ‘News & Updates’ section.

2. Gaming industry in a fix after GoM proposes application of GST at 28%

The Indian gaming industry is in a fix after an empowered group of ministers (GoM) unanimously proposed a flat 28 per cent goods and services tax (GST) on gaming activities.

Indian gaming companies and the industry body representing the industry had made representations for the continuation of an 18 per cent taxation, saying that this brings the Indian gaming industry at par with global players.

Roland Landers, CEO of All India Gaming Federation, believes that to push and encourage the online gaming industry to its peak growth potential, it is imperative that the GST regime for Online gaming Industry is kept rational and progressive.

“While it is clear that the GST valuation will likely be at 28%, there however seems to be a lot of confusion on the valuation methodology including initial sum, Gross Gaming Revenue and total deposits being reported in the media. I believe that any other valuation other than Commission /service fees will be disastrous for the gaming industry,” Landers told Business Standard. (Read more at: Click Here)

3.   Glitch in GST return filing: Relief for tax professionals

In a relief for tax professionals and tax payers who were facing technical glitch in filing GSTR- 3B return for April 2022, the Central Board of Indirect Taxes (CBIC) has extended the due date of filing the return. The deadline has now been extended from May 20 to different dates as per the categories of GST assesees.

Leading tax expert N K Thaman said, “The due date for filling monthly GSTR-3B return for April 2022 was May 20, 2022. For filling this return, input tax credit (ITC) available is auto- populated in GSTR-3B of recipient buyer from GSTR-2B statement generated on portal and the taxpayer is not allowed to avail ITC more than what is auto-populated from GSTR-2B. When a supplier files his outward supply return in GSTR-1 by due date, its ITC is reflected in GSTR-2B of recipient buyer. Normally, GSTR-2B data is available on the morning of 14th of next month. But for the month of April, 2022, this data was not generated by the portal and GSTN has admitted that due to some technical issues, the data is not available. Considering this issue, the due date for payment of GST and for furnishing the return in form GSTR-3B for the month of April 2022 has been extended till May 24.” To read more Click Here

4. 28% GST on casinos, gaming: GoM finalises valuation technique

The Group of Ministers on casinos, online gaming and race courses under Goods and Services Tax (GST) in a meeting held Wednesday finalised its report detailing the valuation technique and a consensus on a tax rate of 28 per cent on these services. Meghalaya Chief Minister Conrad Sangma, the chairman of the panel, said the report will be submitted to Union Finance Minister Nirmala Sitharaman in a day or two and then the issue will be discussed in the next GST Council meeting.

The panel is learnt to have discussed several measures for taxing the revenue stream from casinos, race courses and online gaming including taxing the initial bid amount and gross gaming revenue (GGR). “The Group of Ministers (GoM) on casinos, race courses & online gaming has come to a consensus. The report of our submissions will be handed over to Hon’ble FM, Smti. @nsitharaman Ji in a day or two & the matter will be presented in the next @GST_Council Meeting,” Sangma tweeted.

In its previous meeting held earlier this month, the panel had unanimously decided on hiking the tax rate on these services to 28 per cent. At present, online gaming (without betting) attracts 18 per cent GST, while the ones involving betting along with gambling, race clubs, attract 28 per cent. State government officials estimate the annual turnover from the gaming services to the tune of Rs 30,000 crore. To read more Click Here

5.   Navigating the cryptic world through GST lens

In the Union Budget 2022, a new asset class, known as virtual digital assets (VDA) was recognized. Though, VDA has made rapid proliferation across geographies and industries, from tokens to stablecoins to NFTs, Metaverse, there’s little practical guidance available for businesses, to understand the tax implication of such VDAs. The legal framework on VDAs is still in a formative stage. One of the key challenges for the administration is that VDAs bypass the existing long established financial systems of intermediaries and have challenges in traceability on account of its decentralized nature. The anonymous nature of the assets and its transactions is creating a blind spot for the tax authorities.

Under GST the tax treatment is dependent on the location of the service provider and service receiver. In a typical VDA transaction, the parties may be identified based a digital wallet rather than a physical address. Given the anonymity of the buyer, seller, and the underlying assets, it becomes equally challenging to determine if the VDA transaction would qualify as a domestic (inter/intra state) or a cross-border transaction (export/import).

The tax definition of VDAs also include non-fungible token (NFT). NFTs are mostly rare collectibles / interesting arts, music, video and in-game products or similar digital content that can be bought and sold on the NFT marketplace and the original creator of NFT sometimes may earn royalty for each re-sale.

The first possible taxable event is created when a VDA is created. This process is also known as mining in common parlance. As an established principal, for a supply to be taxed, there should be two persons, one of them being the service provider undertakes an activity for the service recipient for a consideration. Tax authorities are finding it challenging to tax this event, as it is difficult to establish for whom did the miner (i.e. service provider) undertake the activity of mining.

Further, in most jurisdictions, the activities by exchanges who are providing a platform to trade in VDAs are considered as taxable. However, it is challenging for the tax authorities to track all transactions, as VDAs can also be traded in a decentralized manner (i.e., the peer-to-peer). Further, there is no foreign exchange reference rate comparable to the ones published in respect of fiat currencies which help in determining the value on which tax is to be levied. Also, such exchanges do not maintain the details required by the tax authorities.

Under the Indian GST Law, there is a provision for digital services provider to undertake compliance in India in case of ‘online information database retrieval” (OIDAR) service. However, it would have to be analyzed if exchanges could be considered to be covered under the OIDAR concept or as E-commerce operator.

Important Notifications under Excise / Custom/ GST:

GST UPDATES

Sl. No.  Particulars of the Notification(s)File No. / Circular No.Notification Link(s)
1Seeks to extend the due date of filing FORM GSTR-3B for the month of April, 2022Notification                      No. 05/2022 –Central TaxClick Here
2Seeks to extend the due date of payment of tax, in FORM GST PMT-06, for the month of April, 2022 by taxpayers who are under QRMP schemeNotification                      No. 06/2022 –Central TaxClick Here

CUSTOM / EXCISE UPDATES

Notification No. & date of IssueLinksNotification Particulars
44/2022- NT CustomsClick HereCustoms Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between the Republic of India and Japan) Amendment Rules, 2022
43/2022 – Cus(NT)Click HereExchange 19.05.2022rateNotificationNo.43/2022-Cus(NT)dated

Important Case-laws

Income Tax

1. Chief Justice revises Magistrate’s Court decision in income tax case

The High Court on May 16 replaced a Magistrate’s Court order in an income tax case on finding the lower court’s decision “unsustainable”.

Chief Justice Dato Seri Paduka Steven Chong revised the decision on account of the public prosecutor’s application in its case against Bebatik Aquaculture Sdn Bhd. The company, having pleaded guilty in the Magistrate’s Court on April 9 to charges of failing to furnish

income tax returns from 2017 to 2020, was ordered to settle a fine of BND4,000 within six months.

The Magistrate’s Court also ordered for the public prosecutor to pursue a civil suit against the company to realise the fine, should they fail to settle it. The Chief Justice quashed the original order and substituted it with an order, in default of payment of the fine, a warrant for the levy of the amount by distress and sale of any property belonging to the company without the prosecution having to make any application.

The decision was made after the Chief Justice found the lower court’s decision to be wrong. “There is simply no legal basis for the public prosecutor to sue the defendant for non-payment of the fine,” the Chief Justice said. Deputy Public Prosecutor Pengiran Hajah Nor ‘Azmeena binti Pengiran Haji Mohiddin represented the public prosecutor in the application, while the company was represented by its director. Source: Please Click Here

2. The curious tax case of Mr. and Mrs. Thakkar

It’s never black and white when it comes to matters of `black money’. In identical facts, relating to the same year, the same tax tribunal has taken diametrically opposite views for two members of the same family for their links with a Swiss bank account.

The cases relate to South Mumbai residents, Dilip Thakkar, a reputed chartered accountant, and his wife Indira Thakkar whose father had set up an offshore trust having an account in HSBC Geneva — the private banking arm of the British bank which has been in the eye of the storm for a decade, ever since cash-starved sovereigns have been trying get their hands on money lying in tax havens.

The IT department had reopened both cases in 2015 for the assessment year 1999-2000 (i.e, financial year beginning April 1, 1998). According to the tax office, the Thakkars had derived financial benefits from the maturity proceeds of State Bank of India’s Resurgent India Bonds (RIBs) which were foreign currency deposits launched in August ’98 to woo NRI money with high interest returns. The Thakkars said the investments in RIBs were made by the offshore trust set up by Indira Thakkar’s father. But according to the department, the overseas family trust was merely a “colourable device to route unaccounted money through the RIB channel” and that the “maturity proceeds of RIBs do not constitute the corpus of the trust”.

The I-T Act was amended in 2012 to empower tax authorities to go back and reopen completed tax assessments (where concealed overseas assets were detected) up to 16 years as against six years for other taxpayers. However, the judicial interpretation (as per Brahm Dutt ruling) of the amendment was that it can be invoked “prospectively” (and not “retrospectively). In other words, the law could be used only in cases which had not become “time barred”. So, if information on foreign deposits in 1999 was unearthed in 2015, reopening was not possible as the 1999-2000 assessment had reached a finality in 2006.

The rulings of ITAT can be challenged before the High Court, particularly if there is a substantial question before the law. The power to reopen could mean tax claims and another round of long tussle in the court between the Thakkars and the taxman. Many tax and legal practitioners would like to find out which way the cases go. Source: Please Click Here

Important Case-laws

GST Law:

1. Supreme Court says Centre, States have equal powers to make GST-related laws

Court confirms Gujarat High Court ruling that government can’t levy IGST on ocean freight

imports.

The Supreme Court on Thursday, in a judgment championing the importance of “cooperative federalism” for the well-being of democracy, held that Union and State legislatures have “equal, simultaneous and unique powers” to make laws on Goods and Services Tax (GST) and the recommendations of the GST Council are not binding on them.

The apex court’s decision came while confirming a Gujarat High Court ruling that the Centre cannot levy Integrated Goods and Services Tax (IGST) on ocean freight from Indian importers.

“The recommendations of the GST Council are the product of a collaborative dialogue involving the Union and the states. They are recommendatory in nature… The recommendations only have a persuasive value. To regard them as binding would disrupt fiscal federalism when both the Union and the states are conferred equal power to legislate on GST,” a Bench led by Justice D.Y. Chandrachud held.

The court emphasised that Article 246A (which gives the States power to make laws with

respect to GST) of the Constitution treat the Union and the States as “equal units”.

In the GST Council, the States and the Centre have to function in a “harmonious” manner. The discussions in the GST Council cut across party lines and impacted federalism and democracy as a whole. But harmony, necessary for the well-being of the nation, and its fiscal security could be achieved not just by collaboration but also “contestations” between the Centre and the States. Contesting discussions between the Centre and the States could also further the cause of federalism and democracy, the Bench reasoned.

“This judgment may change the landscape of those provisions under GST which are subject to judicial review,” said Abhishek A. Rastogi, partner at Khaitan & Co, who argued for the petitioners before Gujarat High Court and the Supreme Court.

“The Supreme Court has held that GST on ocean freight paid in case of import of goods is unconstitutional. As a corollary, the Indian importers who had paid such tax will be eligible to refund. Further, those importers who had not paid the tax on import of services will now not be required to pay tax because of this Supreme Court ruling,” Mr. Rastogi told The Hindu. Reference: Click Here

2. Nominal charge recovered from employees for canteen-food is not subject to GST

Recently, the GST-Authority for Advance Rulings (AAR) – Gujarat, in the case of Cadila Healthcare has held that canteen facilities provided by it to its employees are not a ‘supply’ as defined in the Goods and Services Tax (GST) provisions. Thus, no GST was leviable on that portion of the amount recovered from the employees.

Cadila Healthcare has approximately 7,200 employees across its factory and corporate offices. It is mandatory for it to provide canteen facilities at its factory premises, under the provisions of the Factories Act. Accordingly, it had entered into an agreement with a canteen service provider. The full amount for the food served during a particular period was paid by the company. However, it recovered from the employee a certain predetermined percentage of this amount. Cadila Healthcare pointed out that it did not retain any profit margin when collecting this sum from its employees. It sought a ruling on: Whether the subsidized deduction made by it from the employees who are availing food in the factory or corporate office would be considered as a supply? To this, the AAR replied in the negative. To read more: Click Here

International Taxation Corner (ITC)

1. Pizza Hut Magnate Wins Income Tax Case at Kansas High Court

Kansas will have to pay back over $42 million plus interest to the former Pizza Hut franchise king after the state high court agreed that he was a Florida resident for the tax years at issue.

The Kansas Supreme Court ruled Friday that Gene Bicknell, former owner of the largest chain of Pizza Hut franchises in the US, was no longer a Kansas resident when he sold the chain in 2006 and therefore didn’t owe Kansas income tax on the sale.

“While the procedural history is complex and the evidentiary record is enormous, the controlling legal question throughout the litigation has remained relatively simple—whether

Gene was a Kansas resident for tax purposes in 2005 and 2006,” Justice Keynen Wall Jr. wrote for the court. “We hold Gene was domiciled in Florida during those years.”

Kansas insisted otherwise, arguing Bicknell’s motive for seeking to establish Florida residency was to avoid millions of dollars in Kansas income tax on the proceeds from the sale of his company by moving to a state without an income tax.

The Board of Tax Appeals agreed with the state that Bicknell was a Kansas resident. The district court reversed. A divided appeals court again reversed in favor of Kansas. The Supreme Court reversed yet again, finding that the district court’s findings were “supported by substantial competent evidence.” The case is Bicknell v. Kansas Dep’t of Revenue, Kan., No. 120,935, 5/20/22. Read more at: Click Here

2. Foreign investors from Mauritius likely to keep taxman at bay

One such attempt by the Income tax (I-T) department to lift the ‘corporate veil’ was struck down this week by a court which ruled that the tricky subject of ‘beneficial ownership’ (BO) of the Mauritian entity cannot be linked to capital gains.

Foreign investors coming from Mauritius are often denied capital gains tax relief on the grounds that persons controlling the tax haven companies are based in other countries. This may change now.

One such attempt by the Income tax (I-T) department to lift the ‘corporate veil’ was struck down this week by a court which ruled that the tricky subject of ‘beneficial ownership’ (BO) of the Mauritian entity cannot be linked to capital gains.

The ruling by Income tax Appellate Tribunal (ITAT), a quasi-judicial authority, relating to Blackstone FP Capital Partners Mauritius V Ltd, pertains to financial year 2015-16 when it booked capital gains of over ₹900 crore after selling stocks of CMS Info Systems.

However, ruling on the appeal by Blackstone, the Mumbai bench of the Tribunal, comprising judicial member Pavan Kumar Gadale and vice president Pramod Kumar, said the “concept of BO of the capital gains” cannot be read into the scheme of Article 13 (dealing with capital gains) of the treaty.

“The Tribunal has held that the Treaty does not require the BO test to be met for capital gains tax exemption. The (apex tax body) CBDT had already issued Circular no. 789 in 2000 stating that wherever a Certificate of Residence is issued by the Mauritian Authorities, such a Certificate will constitute sufficient evidence for accepting the status of residence as well as BO for applying the Treaty. This circular has been upheld by the Supreme Court in the case of Azadi Bachao Andolan as well as in Vodafone. This circular does not appear to be dealt with in the ruling,” said Shefali Goradia, Partner (Business Tax) at Deloitte Touche Tohmatsu India.

While the ruling has gone down well, ITAT’s decision to send the matter back to the assessing officer (AO) has evoked mixed feelings. Read more at: Click Here

       Knowledge Bucket for NRI’s

  1. It has been held in various judicial pronouncements that mere receipt of salary by NRI in his Indian NRE account for services rendered outside India is not taxable in India. Further, interest earned by NRIs on such NRE accounts is tax-free as well.
  2. NRIs earning income in the form of salary and interest, exceeding Rs 2,50,000 are required to furnish return of income in ITR-2 form.
  3. NRIs earning income in the form of salary and interest, exceeding Rs 2,50,000 are required to furnish return of income in ITR-2 form.
  4. An NRI is eligible for deduction on donations if the NGO has received approval from the government to receive foreign donations, it is registered under Section 80G of Income-tax Act and the donation is made via electronic means.

DO YOU KNOW ??

  1. The new form (ITR-U) will be available to taxpayers for filing updated income tax returns for 2019-20 and 2020-21 fiscals.
  2. The Budget 2022-23 has permitted taxpayers to update their ITRs within two years of filing, subject to payment of taxes, a move aimed at helping correct any discrepancy or omissions.
  3. India cuts import duty on coking coal, PCI coal and anthracite to 0% from 2.5%; on naphtha from 5% to 1% and on lignite, peat and coke from 2.5% to 0%.
  4. When a taxpayer fails to file a tax return or disclose his correct taxable income, he is issued with a tax demand. This is because tax authorities have information that indicates that the taxpayer has more income than he has offered to tax.

Disclaimer:

Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information. *(We consider various sources including ET, BS, HT, Taxmann etc.)