List of Tax Flash News

01 January 2023 to 22 December 2023




12/22/2023 India Tax Konnect - December 2023 -
12/16/2023 Fees received by the US company for providing domain name registration services are not taxable as royalty LLC v. ACIT (ITA No. 891/2018) (Delhi High Court)
12/08/2023 Amendment to Special Economic Zones Rules, 2006 -  Partial denotification of Information Technology or Information Technology Enabled Services Special Economic Zone Notification No. G.S.R. 881(E) dated 6 December 2023, Ministry of Commerce and  Industry
12/05/2023 The Indian subsidiary of a Korean company is not an ‘assessee-in-default’ for non-deduction of tax at source on the income attributed towards a notional payment to the Korean company LG Electronics India Ltd. v. ITO (ITA No. 7929/Del/2018)(Del)
12/05/2023 Income from offshore supply of equipments and services is not taxable in India under the Income-tax Act as well as under the India-Germany tax treaty DSD Noell GMBH v. DCIT (ITA No. 3186/Del/2016)
11/24/2023 India Tax Konnect - November 2023 -
11/24/2023 Export-related deduction under Section 80HHC is not available on a foreign exchange gain from the Exchange Earners Foreign Currency (EEFC) account Shah originals v. CIT (Civil Appeal No. 2665 of 2011) (SC)
10/21/2023 India Tax Konnect - October 2023 -
10/21/2023 The benefit of MFN clause under the Indian tax treaties can be availed only after the Indian government issues a notification for the same – the Supreme Court AO (International taxation) v. Nestle SA (Civil Appeal Nos. 1420 to 1432 of 2023) (SC)
10/17/2023 Angel tax provisions under Section 56(2)(vii)(c) are not applicable to the issue of right shares that were allocated in proportionate to the existing shareholding and to the renunciation of right shares by relatives   PCIT v. Jigar Jashwantilal Shah (Tax Appeal No. 96 of 2023) (Guj)
10/13/2023 Even under the new reassessment regime, the tax officer is required to have a new or tangible information to justify that the income has escaped the reassessment IDFC Limited v. DCIT (W.P.No. 23284 & 22737) (Mad)
10/09/2023 Key recommendations of the 52nd GST Council meeting Press Release dated 7 October 2023, Ministry of Finance 
10/09/2023 India Tax Konnect - September 2023 -
10/07/2023 Non-residents can file Form No. 10F electronically without obtaining a PAN in India to claim a tax treaty benefit Notification No. 03/2022, dated 16 July 2022 
09/29/2023 Foreign Tax credit is allowed in India on taxes on dividend which would have been paid but exempted under the Omani Tax Law – Supreme Court PCIT v. Krishak Bharti Cooperative Ltd (Civil Appeal No. 836 of 2018) (SC)
09/27/2023 CBDT notifies the final Rule 11UA relating to amended angel tax provisions and introduces a valuation mechanism for Compulsorily Convertible Preference Shares F.No. 370142/9/2023-TPL(Part-1), dated 26 May 2023. Refer our earlier flash news on draft notification
09/26/2023 Purchase of own shares by a company is liable for dividend distribution tax as it amounts to ‘distribution of accumulated profits’ Cognizant Technology Solutions India Pvt Ltd v. ACIT (ITA No.269/Chny/2022)
09/18/2023 The Indian payer can claim refund of taxes paid under the protest on behalf of the US company whose income is not taxable in India Grasim Industries Ltd. v. ACIT (Writ Petition No. 2505 of 2012) (Bom)
09/14/2023 The reassessment notice and the order issued beyond a period of 3 years from the end of the assessment year without the approval of specified authorities are invalid UOI & Others v. Ashish Agarwal [2022] 138 64(SC)
09/11/2023 Amalgamation route was used as a device to avoid taxes and therefore payment to the shareholder of amalgamating company was held as undisclosed income CIT v. Dadha Pharma Private Limited (TCA Nos. 1925 of 2008 and 648 of 2009) (Mad)
09/08/2023 The Singapore company is eligible for tax treaty benefits on capital gains arising from the transfer of shares of Indian companies Especially in Mauritius and Singapore tax treaties related cases
08/25/2023 India Tax Konnect - August 2023 -
08/25/2023 Compensation for termination of advertisement and agency sales agreement is allowed as business expenditure. Depreciation is allowed on payment of non-compete fees  PCIT v. Music Broadcast Private Limited (ITA No.675 of 2018)
08/22/2023 Amendment in Rule for determining the perquisite value of residential accommodation provided by employer Notification No. 65/2023/F. No. 370142/21/2023-TPL Part (1)
08/22/2023 Amendment to CGST Act and IGST Act for levy of GST on online money gaming The Gazette of India, CG-DL-E-18082023-248183 dated 18 August 2023
08/21/2023 Guidelines for taxation of the consideration received from a life insurance policy Section 10(10D) of the Act 
08/19/2023 The capital gain of the Mauritian company on the sale of shares of an Indian company is not taxable under the India-Mauritius tax treaty  SAIF II-SE Investments Mauritius Limited v. ACIT (ITA No. 1812/Del/2022) 
08/12/2023 The time limit for completion of assessment under Section 153 is applicable to assessments routed through DRP mechanism    Under Section 254 - Orders of Appellate Tribunal
08/04/2023 The cloud computing services are not taxable as royalty or FTS under the India-US tax treaty  Amazon Web Services, Inc. v. ACIT (ITA Nos. 522 & 523/Del/2023)
08/02/2023 India Tax Konnect - July 2023 -
08/01/2023 The tax officer cannot reopen the assessment only on the basis of subsequent contradictory AAR ruling Mrs. Usha Eswar v. UOI (Writ Petition No. 1106 of 2003)
07/28/2023 A permanent establishment is formed when the oil rig entered into the Indian water and not when actual drilling work commenced  Article 5(5) of the India-Singapore tax treaty-An enterprise shall be deemed to have a PE in a Contracting State and to carry on business through that PE if it provides services or facilities in that Contracting State for a period of more than 183 days in any fiscal year in connection with the exploration, exploitation or extraction of mineral oils in that Contracting State  
07/26/2023 The Indian company is allowed to avail tax sparing credit under the India-Thailand tax treaty on the dividend income received from its Thailand subsidiary PCIT v.Polyplex Corporation Ltd(ITA No. 571/2019)
07/19/2023 Clarifications pursuant to the 50th GST Council meeting Circular No. 192/04/2023-GST dated 17 July 2023 
07/14/2023 Payment to the Malaysian group company for granting access to the SAP system software is not taxable as royalty under the Income-tax Act CIT v. Colgate Palmolive Marketing SDN BHD (ITA No. 171 of 2018)  
07/13/2023 India Tax Konnect - June 2023 -
07/12/2023 The salary reimbursement of the seconded employees by the Indian subsidiary to the UK holding company is not taxable as fees for technical services Serco India Pvt. Ltd. v. DCIT(I.T.A. No. 1432/Del/2016) 
07/05/2023 Government issues FAQs relating to Tax Collection at Source (TCS) on Liberalised Remittance Scheme (LRS) and the purchase of overseas tour program package. Further, it issues a notification relating to the use of International Credit Cards (ICCs) E-Gazette Notification F No. 1/5/2023-EM, dated 16 May 2023
07/01/2023 Since capital gains were taxable in Singapore (even though gains were not remitted to Singapore), ‘Limitation of Relief’ provisions under the India-Singapore tax treaty would not apply Article 24 of the India-Singapore tax treaty
06/29/2023 The Ministry of Finance clarifies various aspects of Tax Collection at Source (TCS) applicability on Liberalised Remittance Scheme (LRS) and overseas tour program package E-Gazette Notification F No. 1/5/2023-EM, dated 16 May 2023
06/29/2023 Important to submit a tax residency certificate for the claim of tax treaty benefits Parag Bhikhubhai Patel v. ITO[I.T.A No.464/Ahd/2020(Assessment Year: 2016-17)] 
06/28/2023 CBDT amends rules in relation to new default tax regime  Sub-section (1A) of Section 115BAC of the Income-tax Act, 1961 (the Act)
05/31/2023 CBDT issues draft notification with proposed changes to Rule 11UA relating to amended angel tax provisions and notifies entities eligible for exemption from angel tax provisions F. No. 370142/9/2023-TPL(Part-I),dated 26 May 2023
05/26/2023 Exemption for leave encashment raised to INR 2,500,000 Notification No. 31/2023 dated 25 April 2023
05/26/2023 CBDT issues rules and guidelines on the taxability of winnings from online games and its TDS implications Notification No. 281/2023 dated 22 May 2023
05/22/2023 CBDT proposes to change valuation rules in respect of Angel Tax Press release dated 19 May 2023 
05/19/2023 Credit Note issued by a manufacturer to a dealer for auto parts replaced under warranty is a valuable consideration Mohd. Ekram Khan & Sons v. Commissioner of Trade Tax, U.P. [[2004] 136 STC 515 (SC)]  
05/19/2023 Rummy, whether played offline or online with stakes or without stakes, is not gambling Gameskraft Technologies Private Limited v. Directorate General of Goods Services Tax Intelligence & Ors. [2023-VIL-291-KAR]
05/12/2023 Key updates under higher pension option issued by the Government of India under Employees’ Pension Scheme Employees Provident Fund Organisation. And ANR ETC. vs. Sunil Kumar B and Ors. Arising out of the Special Leave Petition (C) Nos. 86588659 of 2019
05/06/2023 The receipt of shares of a closely held company by a closely held amalgamated company pursuant to amalgamation for inadequate consideration is taxable as income from other sources under Section 56(2)(viia) Transaction is not regarded as transfer for capital gains tax provisions on any transfer, in a scheme of amalgamation, of a capital asset by the amalgamating company to the amalgamated company if the amalgamated company is an Indian company
05/03/2023 Long-term capital gains on the sale of unlisted shares by the non-resident are taxable under a special provision of the Income-tax Act without giving effect to foreign exchange fluctuation Legatum Ventures Limited v. ACIT (ITA No. 1627/Mum/2022)
05/03/2023 The Supreme Court holds profit attribution issue as a question of fact and the attribution of profit to PE of CRS companies based on FAR analysis as fair and reasonable DIT v. Travelport Inc. & Others [CIVIL APPEAL NOS. 6511-6518/2010](Taxsutra)
04/28/2023 India Tax Konnect - April 2023 -
04/28/2023 Provisions on the place of supply of intermediary services are held to be constitutionally valid  Dharmendra M.Jani v. Union of India and Others [[2023] 149 317 (Bombay)]
04/25/2023 Domestic company cannot apply a lower rate prevailing under tax treaty over DDT rate while paying dividends to non-resident shareholders DCIT v. Total Oil India Pvt. Ltd.(ITA No. 6997/Mum/2019)
04/25/2023 West Bengal Government introduces dispute settlement scheme West Bengal Sales Tax (Settlement of Dispute)Act, 1999 as amended vide West Bengal Finance Act 2023
04/24/2023 Amnesty scheme for settlement of default in export obligation under Advance Authorization and EPCG schemes Policy Circular No. 17/2023-24 dated 17 April 2023, DGFT
04/20/2023 Passenger transportation services availed through an e-commerce operator are exigible to GST Uber India Systems Private Limited v. Union of India & Anr.[2023-VIL-228-DEL]
04/13/2023 The Supreme Court’s decision on the determination of place of ‘control and management’ of the company incorporated in Sikkim when the Income-tax Act was not applicable to Sikkim-based companies Mansarover Commercial Pvt.Ltd v.CIT(Civil Appeal No.5773 of 2022)
04/10/2023 Foreign Trade Policy 2023 Notification No. 1/2023 dated 31 March 2023, Ministry of Commerce and Industry
04/06/2023 CBDT clarification on deduction of tax at source on salary under the default new tax regime Sub-section (1A) of Section 115BAC of the Income-tax Act, 1961 (the Act)
04/05/2023 Provision restricting the export value for claiming refund is held as ultra vires Notification No. 16/2020-Central Tax dated 23 March 2020
04/04/2023 Issuance of assessment notice is not a sufficient ground to withhold a tax refund. AO needs to record suitable reasons to show adverse impact on the revenue Oyo Hotels and Homes Private Limited v. DACIT[W.P.(C) 16698/2022](Del)
04/01/2023 Payment for sponsorship rights of cricket tournament is not taxable as royalty under the India-Malaysian tax treaty. Invocation of LOB provisions denied ITO v. Total Sports & Entertainment India P.Ltd.(ITA No.5717/Mum/2016) 
04/01/2023 Plant design and drawing related services are not taxable as royalty but FTS. In the absence of FTS clause under the India-UAE tax treaty, it is taxable as business income and in the absence of PE, no taxability in India DCIT v. Kalpataru Power Transmission Ltd(ITA No. 35/Ahd/2021)
03/28/2023 India Tax Konnect - March 2023 -
03/24/2023 Proposed amendments to the Finance Bill, 2023 The lower house of Parliament
03/17/2023 Mere production of invoices and payment by cheque is not sufficient to claim the input tax credit The State of Karnataka v. Ecom Gill Coffee Trading Private Limited[2023-VIL-20-SC]
03/15/2023 The Bombay High Court quashes the AAR ruling denying the India-Mauritius tax treaty benefit on capital gains transaction   Blackstone Capital Partners (Singapore) VI FDI Three PTE Ltd v. ACIT[2023] 146 569 (Del)
03/14/2023 The Bengaluru Tribunal upholds the application of transfer pricing provisions to transactions between unrelated enterprises and the DCF method to benchmark the transfer of listed equity shares with controlling interest  Palmer Investment Group Limited-(ITA No. 2929 and 2930 /Bang/2018)(Bang)-(Assessment year 2014-15)
03/03/2023 India Tax Konnect - February 2023 -
03/02/2023 The reimbursement of salaries of seconded employees is not taxable as fees for technical services Google LLC v. JCIT[IT(IT)A No.688/Bang/2021]
03/02/2023 The Allahabad High Court denies the benefit of the extension of the time limit to deemed reassessment notices for computation of the time limit under the new reassessment regime Under the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020
02/23/2023 EPFO issues a circular on higher pension benefit under the Employees' Pension Scheme Employees Provident Fund Organisation. And ANR ETC. vs. Sunil Kumar B and Ors. Arising out of the Special Leave Petition (C) Nos. 86588659 of 2019
02/22/2023 The Singaporean company is eligible for the tax treaty benefit on the basis of a valid TRC Blackstone Capital Partners (Singapore) VI FDI Three PTE Ltd v. ACIT[2023] 146 569 (Del)
02/20/2023 Key recommendations of the 49th GST Council Meeting Press Release dated 18 February 2023, Ministry of Finance
02/14/2023 Vouchers cannot be taxed as they are similar to pre-deposits Premier Sales Promotion Pvt Limited Vs Union Of India & Ors [2023-VIL-67-KAR]
02/13/2023 None of the provisions of the CGST Act and the IGST Act mandates the Petitioner to verify the genuineness of the suppliers of the supplier Choksi Exports v. Union of India [TS-30-HC(GUJ)-2023-GST]
02/10/2023 Writ applications cannot be dismissed merely on the grounds that alternative remedy of appeal is available   Godrej Sara Lee Ltd v. The Excise And Taxation Officer-Cum-Assessing Authority & Ors. [2023-VIL-10-SC]
02/10/2023 CBDT notifies Centralised Processing of Equalisation Levy Statement Scheme, 2023 Notification No. 03/2023/F.No.370142/1/2023-TPL,dated 7 February 2023
02/06/2023 High Court quashes reassessment proceedings for denial of treaty benefit on sale of shares, upholds sufficiency of the tax residency certificate for treaty eligibility UOI v. Azadi Bachao Andolan [2003] 132 Taxman 373 (SC)
02/02/2023 India Tax Konnect - January 2023 -
02/02/2023 India Union Budget 2023–24 -
01/17/2023 The Supreme Court’s decision on exemption to educational institution interpreting the term ‘solely’ is prospective in nature American Hotel & Lodging Association, Educational Institute [2008] 301 ITR 86 (SC)
01/17/2023 The US entity is a beneficial owner of FTS and eligible for the benefit of a concessional tax rate under the India-USA tax treaty CIT v. Fujitsu America Inc. (ITA No. 530 of 2022) )(Del) -
01/16/2023 A liaison office in India does not constitute a Permanent Establishment under the India-Switzerland tax treaty Mitsui & Co. Ltd [1991] 39 ITD 59 (Del), Sumitomo Corpn [2008] 110 TTJ 302 (Del), Motorola Inc [2005] 95 ITD 269 (Del) (SB), Western Union Financial Services Inv [2007] 101 TTJ 56 (Del), Metal One Corpn. [2012] 52 SOT 304 (Del)   
01/13/2023 Scheme of amalgamation is rejected as nothing was expressed on Section 72A relating to carry forward and set off of accumulated loss and unabsorbed depreciation Scheme of Amalgamation of Minda TG Rubber Private Limited with Toyoda Gosei Minda India Private Limited-CP No. (CAA)-111 (ND)/2021 in CA No. CA (CAA)-118 (ND)/2021-(Delhi NCLT) 
01/10/2023 Beneficial tax treaty rate will prevail over higher tax rate provided under Section 206AA for non-furnishing of PAN  Danisco India Pvt. Ltd. v. UOI [2018] 404 ITR 539 (Del), Nagarjuna Fertilizers & Chemicals Ltd v. ACIT [2017] 78 264 (Hyd) (SB), DCIT v. Pricol Ltd [2014] 223 Taxman 187 (Chennai), DCIT v. Serum Institute of India [2015] 56 1 (Pune)
01/10/2023 TDS provisions are not applicable on year-end provisions which are reversed at the beginning of the next year and where payees are not identifiable IBM India Private Ltd v. ITO(TDS)[2015] 154 ITD 497 (Bang), Inter Globe Aviation Ltd. v. ACIT(ITA No. 5347/Del/2012) (Del)
01/09/2023 E-Visa facility now available for nationals of UK, Canada and few other countries Indian Government's Visa Website
01/04/2023 India Tax Konnect - December 2022