Service Tax
NRAI says service charge levy by restaurants matter of individual policy
In its meeting with the Department of Consumer Affairs, NRAI officials reiterated, as stated earlier in 2017, that levy of service charge is neither illegal, nor an unfair trade practice as alleged. This matter had also come up in 2016-17, and the NRAI had provided its response to the government. On Thursday, the body reiterated the points as were put up earlier in 2017.
No restaurant can charge 18% tax on products, says complaint
"The rate of GST on sales by eateries is five per cent whereas on visit to the restaurant of Timber Trail Resorts, Pawanoo, on last May 27, it has been found that this taxable person is charging GST at rate of 18 per cent i.e. nine per cent under the state GST and equal per cent under the Centre GST, whereas the rate of five per cent i.e. 2.5 per cent state GST and 2.5 per cent under Centre GST," Jagga said in a complaint.
Union Budget expected to focus on increase in limits for basic tax exemption, standard deduction
Section 16(1A) of the IT Act provides for a standard deduction of Rs 50,000 from the salary income of a taxpayer. This deduction was enhanced from Rs 40,000 to 50,000 by the Finance Act 2019 and has not been increased since then.
Boost to disposable incomes via tax cuts will spur demand for consumer durables
The PLI scheme commenced in FY22, some companies have not yet been able to complete the required CAPEX and drive growth due to Covid waves in FY22. Hence, we endorse the belief that extension of PLI benefits by 1-2 years will be positive to industry, ICICI Securities said in a report on the white goods sector.
Jolt amid power crisis, inverters to attract dual taxes
Accordingly, an inverter system with battery will attract 18 per cent GST towards the power backup machine while another 28 per cent on the battery coming with it. The Central Board of Indirect Taxes and Customs (CBIC) has clarified that even if the UPS/ inverter and external battery are sold on the same invoice, their prices are separately known, and they constitute two separately identifiable items.
Centre notifies rules to scrap retrospective tax clause
Accordingly, the amendment bill notified on October 1, 2021, will enable the scrapping of the contentious retrospective tax demand provisions. Significantly, the notification of the bill is expected to end the much stretched tax disputes with UK's Cairn Energy, and Vodafone Plc.
Net Direct Tax collections see 74.4% growth over pre-pandemic levels
Though not comparable as last year tax collections were impacted by Covid 19 virus outbreak, yet the current years tax collections is even higher by 27 per cent over the pre-pandemic period of FY 20 when the net collection was Rs 4,48,976 crore. The net direct tax collection of Rs 5,70,568 crore this year include corporation tax (CIT) at Rs 3,02,975 crore (net of refund) and personal income tax.
Refund for unutilised Input Tax Credit can't be claimed on input services: SC
A bench comprising Justices D.Y. Chandrachud and M.R. Shah upheld the validity of Rule 89(5), overturning a 2020 Gujarat High Court judgment which had held that Rule 89(5) was ultra vires Section 54 (3) of the CGST Act, 2017. Rule 89(5) of the CGST Rules provides for the computation of the refund of ITC on account of an inverted duty structure.
Transparent taxation most beneficial govt initiative amid pandemic: Survey
The government's move to make taxation transparent has been considered as its most impactful initiative (40 per cent), followed by the Production Linked Incentive (PLI) scheme (30 per cent), equalisation levy (20 per cent), and new labour codes (10 per cent), as per the survey findings. The survey was carried with 3,700+ respondents across digital platforms, hinting at the rising global and domestic optimism related to revenues in 2021.
CBDT eases rules on e-record authentication in faceless assessment proceedings
With this change, submission of electronic record by taxpayers by logging into registered account in designated portal of the Income Tax Department will be considered authenticated by EVC for the purposes of section 144B(7)(i)(b) of the Income Tax Act, 1961. However, under the existing provisions, this simplified process of authentication by EVC is not available to certain persons.
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