CBDT notifies Tolerance Range for Transfer Pricing for A.Y 2024-25 as per proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962
Notification of tolerance range shall provide certainty to taxpayers and reduce the risk perception associated with pricing of a transaction in transfer pricing
The Central Board of Direct Taxes (CBDT) has issued notification no. 116/2024 dated October 18, 2024 notifying the tolerance range for AY 2024-25. The notification of tolerance range shall provide certainty to taxpayers and reduce the risk perception associated with pricing of a transaction in transfer pricing.
Proviso to sub-rule(7) of rule 10CA sub-rule(7) provides that, “if the variation between the arm’s length price so determined at which the international transaction or specified domestic transaction has actually been undertaken does not exceed such percentage not exceeding three percent of the latter, as may be notified by the Central Government in the Official Gazette in this behalf, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price.”
The tolerance range for transfer pricing is as follows:
The tolerance range for transfer pricing is as follows:
1. The tolerance ranges shall be 1% for transactions in the nature of “wholesale trading” and 3% for others, respectively, as notified last year and 2. The term ‘wholesale trading’, shall be defined as an international transaction or specified domestic transaction of trading in goods which fulfil all the following conditions:
1. Purchase cost of finished goods is 80% or more of the total cost pertaining to such trading activities; and 2. Average monthly closing inventory of goods is 10% or less of sales pertaining to such trading activities.
Central Board of Direct Taxes (CBDT) has notified amendments in income-tax rules for ease in claiming credit for TCS collected/TDS deducted for salaried employees and enabling claiming TCS credit of minors in the hands of parents. Sub-section (2B) of Section 192 of the Income-tax Act, 1961 (‘the Act’) was amended vide the Finance (No. 2) Act, 2024 (FA (No. 2)) to include any tax deducted or collected at source under the provisions of Chapter XVII-B or Chapter XVII-BB, as applicable, for the purpose of making tax deductions in the case of salaried employees.
Vide CBDT Notification No. 112/2024 dated 15.10.2024, the Income-tax Rules, 1962 (‘the Rules’) have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Act. Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192. The employer, in turn, shall deduct TDS on salary after taking into account the furnished particulars.
Further, sub-section (4) of Section 206C of the Act was amended vide FA (No. 2) to allow the credit of TCS to a person other than the collectee—such as a parent in the case of a minor collectee—when the minor’s income is clubbed with that of the parent. Accordingly Vide CBDT Notification No. 114/2024 dated 16.10.2024 Rule 37-I of the Rules has been amended to allow credit of tax collected at Source to a person other than the collectee, in whose hands the income of the collectee is assessable.
———————————————— 🌟 *H A P P Y* 🌟 🌟 *J A N A M A S H T A M I* 🌟 ————————————————
Today marks the most anticipated day of the year, a rare opportunity to wholeheartedly glorify the most merciful Lord Krishna.
🤔 _Why is this day so significant_❓
•••> Janmashtami is an annual celebration of Lord Krishna’s appearance on Earth. Its importance lies in commemorating the divine descent of Lord Krishna, who came to alleviate suffering, protect the righteous, and reestablish the principles of righteousness or “dharma.”
•••> This celebration goes beyond mere cultural and religious observance; it’s a time for deep spiritual reflection and devotion. Janmashtami reminds us of the timeless teachings of Lord Krishna and His divine playfulness, inspiring us to cultivate virtues such as love, compassion, and righteousness in our lives.
🤔 _How can we make this day special for Him_❓
Krishna is the provider and sustainer of all living beings, showing boundless love to each without discrimination. Instead of offering something which already belongs to him, let us give the gift of our love.
*Krishna only wants our love.* _Therefore on this day we have to express as much love as possible._
📌 On this auspicious day our aim should be to always remember Krishna and never forget him.
📖 Lord Krishna, in the Bhagavad Gita, emphasizes that Gyan, Dhyan, Tapasya alone cannot lead us to Him. _The path to Him lies in the recommended process of devotional service._
✨ _*BHAKTI IS NOTHING BUT DEVELOPING LOVE FOR KRSNA!*_ ✨
🌻 Krishna is our ultimate well-wisher, providing everything for us, loving us unconditionally, and giving protection that surpasses everything else. Therefore, it is only fitting that we reciprocate this love.
*”Krishna is a possessive lover; He desires to be the sole attraction in our hearts.”*
🌺 In this material world, everything belongs to Him, but the one thing we can genuinely offer is our _devotion_ and our _minds._
🪷 We eternally belong to Krishna, and on Janmashtami, let us rekindle that sense of belongingness, drawing closer to our beloved: Krishna, our friend, father, mother, brother, and master. 🪷
🌸 To regain that belongingness we must engage ourselves in knowing about him by listening from great devotees who have already tied krishna with the ropes of their love. Reading his pastimes chanting his name, honouring his Prasadam will also drag us closer to Krsna.
So with all excitement and enthusiasm, Let us pray that may He guides us out of the illusions of Maya and shelters us under the soothing shade of His lotus feet.
Wishing everyone a blessed and spiritually enriching Janmashtami celebration! 🙏🌼
Q1. What are the major changes brought about in the taxation of capital gains by the Finance (No.2) Bill, 2024?
Ans. The taxation of capital gains has been rationalised and simplified. There are 5 broad parameters to this rationalisation and simplification, namely:-
-Holding period has been simplified. There are only two holding periods now, viz. 1 year and 2 year.
-Rates have been rationalised and made uniform for majority of assets.
-Indexation has been done away with for ease of computation with simultaneous reduction of rate from 20% to 12.5%.
-Parity between Resident and Non-resident.
-No change in roll over benefits.
Q2. What is the date when the new taxation provisions comes into force?
Ans. The new provisions for taxation of capital gains come into force from 23.7.2024 and shall apply to any transfer made on or after 23.7.2024.
Q3. How has the holding period been simplified?
Ans. Earlier there were three holding period for considering an asset to be a long- term capital asset. Now the holding period has been simplified. There are only two holding periods,- for listed securities, it is one year, for all other assets, it is two years.
Q4. Who will benefit from the change in holding period?
Ans. The holding period of all listed assets will be now one year. Therefore, for listed units of business trusts (ReITs, InVITs) holding period is reduced from 36 months to 12 months. The holding period of gold, unlisted securities (other than unlisted shares) is also reduced from 36 months to 24 months.
Q5. What about the holding period of immovable property and unlisted shares?
Ans. The holding period of immovable property and unlisted shares remains the same as earlier i.e. 24 months.
Q6. Please elaborate on change in the rate structure for STT paid capital assets?
Ans. Rate for short-term STT paid listed equity, Equity oriented mutual fund and units of business trust (Section 111A) has increased from 15 to 20%. Similarly the rate for these assets for long-term (S. 112A) has increased from 10 to 12.5%.
Q7. Is there any change in the exemption limit for long-term capital gains under section 112A which was earlier one lakh Rs.?
Ans. Yes. The exemption limit of 1 lakh for LTCG on these assets has also increased to 1.25 lakh Rs. This increased exemption limit will apply for FY 2024-25 and subsequent years.
Q8. Please elaborate on change in the rate structure for other long-term capital gains?
Ans. The rate for other long-term capital gains on all assets has been rationalized to 12.5% without indexation (Section 112). This rate was earlier 20% with indexation. This will ease in simplifying the taxation of capital gains and their easy computation.
Q9. Who will benefit by change in rate from 20% (with indexation) to 12.5% (without indexation)?
Ans. The reduction in the rate will benefit all category of assets. In most of the cases, the taxpayers will benefit substantially. But where the gain is limited vis-a vis inflation, the benefit will also be limited or absent in a few cases.
Q10. Can the taxpayer continue to avail the roll over benefits on capital gains?
Ans. Yes. The roll over benefits remain the same as earlier. There is no change in roll over benefits already available under the IT Act. Therefore, taxpayers who want to save on LTCG tax even with low rates, can continue to avail the roll over benefits on fulfillment of conditions as applicable.
Q11. In which assets, can the long-term capital gains be invested for roll over benefits?
Ans. For roll over benefits, taxpayers can invest their gains in house under section 54 or section 54F or in certain bonds under section 54EC. For complete details of all roll over benefits, please refer section 54, 54B, 54D, 54EC 54F, 54G of the IT Act.
Q12. What is amount upto which roll over benefit is available?
Ans. Investment of capital gain in 54EC bonds (up to Rs. 50 lakh) and in other cases, the capital gain is exempt from tax, subject to certain specified conditions.
Q13. What is the overall rationale for changes?
Ans. Simplification of any tax structure has benefits of ease of compliance viz computation, filing, maintenance of records. This also removes the differential rates for various classes of assets.
Press Release dated 24 July 2024 Release Id :-2036604
In our continuous endeavour to serve you better, the Ministry of Corporate Affairs is launching third set of Company Forms covering 9 forms [MSME, BEN-2, MGT-6, IEPF-1, IEPF-1A, IEPF-2, IEPF-4, IEPF-5, IEPF-5 e-verification report] on 15th July 2024 at 12:00 AM. To facilitate implementation of these forms in V3 MCA21 portal, stakeholders are advised to note the following points:
(1) Company e-Filings on V2 portal will be disabled from 04th July 2024 12:00AM.
(2) All stakeholders are advised to ensure that there are no SRNs in pending payment/pending for investor details upload/Resubmission status.
(3) Offline payments for the above 9 forms in V2 using Pay later option would be stopped from 01st July 2024 12:00 AM. You are requested to make payments for these forms in V2 through online mode (Credit/Debit Card and Net Banking).
(4) In view of the upcoming launch of 9 Company forms, V3 portal will not be available from 13th July 20204 12:00 AM to 14th July 2024 11:59 pm.
(5) V2 Portal for company filing will remain available for all the V2 forms excluding above mentioned 9 forms.
GST Council recommends waiving interest and penalties for demand notices issued under Section 73 of the CGST Act (i.e. the cases not involving fraud, suppression or wilful misstatement, etc.) for the fiscal years 2017-18, 2018-19 and 2019-20, if the full tax demanded is paid upto 31.03.2025.
GST Council recommends the time limit to avail input tax credit w.r.t. any invoice or debit note under Section 16(4) of CGST Act, through any GSTR 3B return filed upto 30.11.2021 for FY 2017-18, 2018-19, 2019-20 and 2020-21, may be deemed to be 30.11.2021
Council has recommends monetary limit of Rs. 20 lakh for GST Appellate Tribunal, Rs. 1 crore for High Court and Rs. 2 crore for Supreme Court, for filing of appeals by the Department, to reduce litigation
GST Council recommends reduction of the quantum of pre-deposit required to be paid for filing of appeals under GST
GST Council recommends amending provisions of CGST Act to provide that the three-month period for filing appeals in GST Appellate Tribunal will start from a date to be notified by the Government
To ease the interest burden of the taxpayers, GST Council recommends to not levy interest u/s 50 of CGST Act in case of delayed filing of return, on the amount which is available in Electronic Cash Ledger (ECL) on the due date of filing of the said return
GST Council recommends sunset clause from April 1st, 2025 for receipt of any new application for Anti-profiteering
GST Council recommends exemption from Compensation Cess leviable on the imports in SEZ by SEZ Unit/developer for authorised operations from 1st July, 2017
GST Council recommends 12% GST on milk cans (steel, iron, aluminum) irrespective of use; Carton, Boxes And Cases of both corrugated and non-corrugated paper or paper-board; Solar cookers whether single or dual energy source; and sprinklers including fire water sprinklers.
GST Council recommends exemption of certain services provided by Indian Railways to common man and also intra railway supplies
GST Council recommends certain exemptions related to accommodation services, providing relief to students and working professionals
GST Council recommends to roll-out the biometric-based Aadhaar authentication of registration applicants on pan-India basis in a phased manner
The 53rd GST Council met under the Chairpersonship of Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman in New Delhi today. The meeting was also attended by Union Minister of State for Finance Shri Pankaj Chaudhary, Chief Ministers of Goa and Meghalaya; Deputy Chief Ministers of Bihar, Haryana, Madhya Pradesh, and Odisha; besides Finance Ministers of States & UTs (with legislature) and senior officers of the Ministry of Finance & States/ UTs.
The GST Council inter alia made the following recommendations relating to changes in GST tax rates, measures for facilitation of trade and measures for streamlining compliances in GST.
Changes in GST Tax Rates:
I. Recommendations relating to GST rates on Goods
A. Changes in GST rates of goods
A uniform rate of 5% IGST will apply to imports of ‘Parts, components, testing equipment, tools and tool-kits of aircrafts, irrespective of their HS classification to provide a fillip to MRO activities subject to specified conditions.
All milk cans (of steel, iron and aluminium) irrespective of their use will attract 12% GST.
GST rate on ‘carton, boxes and cases of both corrugated and non-corrugated paper or paper-board’ (HS 4819 10; 4819 20) to be reduced from 18% to 12%.
All solar cookers whether single or dual energy source, will attract 12% GST.
To amend existing entry covering Poultry keeping Machinery attracting 12% GST to specifically incorporate “parts of Poultry keeping Machinery” and to regularise past practice on ‘as is where is’ basis in view of genuine interpretational issues.
To clarify that all types of sprinklers including fire water sprinklers will attract 12% GST and to regularise the past practice on ‘as is where is’ basis in view of genuine interpretational issues.
To extend IGST exemption on imports of specified items for defence forces for a further period of five years till 30th June, 2029.
To extend IGST exemption on imports of research equipment/buoys imported under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) programme subject to specified conditions.
To exempt Compensation Cess on the imports in SEZ by SEZ Unit/developers for authorised operations w.e.f. 01.07.2017.
Other Miscellaneous Changes
To exempt Compensation cess on supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under Ministry of Defence.
To provide Adhoc IGST exemption on imports of technical documentation for AK-203 rifle kits imported for Indian Defence forces.
II. Recommendations relating to GST rates on services
To exempt the services provided by Indian Railways to general public, namely, sale of platform tickets, facility of retiring rooms/waiting rooms, cloak room services and battery-operated car services and to also exempt the Intra-Railway transactions. The issue for the past period will be regularized from 20.10.2023 to the date of issue of exemption notification in this regard.
To exempt GST on the services provided by Special Purpose Vehicles (SPV) to Indian Railway by way of allowing Indian Railway to use infrastructure built & owned by SPV during the concession period and maintenance services supplied by Indian Railways to SPV. The issue for the past will be regularized on ‘as is where is’ basis for the period from 01.07.2017 till the date of issue of exemption notification in this regard.
To create a separate entry in notification No. 12/2017- CTR 28.06.2017 under heading 9963 to exempt accommodation services having value of supply of accommodation up to Rs. 20,000/- per month per person subject to the condition that the accommodation service is supplied for a minimum continuous period of 90 days. To extend similar benefit for past cases.
Other changes relating to Services
Co-insurance premium apportioned by lead insurer to the co-insurer for the supply of insurance service by lead and co-insurer to the insured in coinsurance agreements, may be declared as no supply under Schedule III of the CGST Act, 2017 and past cases may be regularized on ‘as is where is’ basis.
Transaction of ceding commission/re-insurance commission between insurer and re-insurer may be declared as no supply under Schedule III of CGST Act, 2017 and past cases may be regularized on ‘as is where is’ basis.
GST liability on reinsurance services of specified insurance schemes covered by Sr. Nos. 35 & 36 of notification No. 12/2017-CT (Rate) dated 28.06.2017 may be regularized on ‘as is where is’ basis for the period from 01.07.2017 to 24.01.2018.
GST liability on reinsurance services of the insurance schemes for which total premium is paid by the Government that are covered under Sr. No. 40 of notification No. 12/2017-CTR dated 28.06.2017 may be regularized on ‘as is where is’ basis for the period from 01.07.2017 to 26.07.2018.
To issue clarification that retrocession is ‘re-insurance of re-insurance’ and therefore, eligible for the exemption under Sl. No. 36A of the notification No. 12/2017-CTR dated 28.06.2017.
To issue clarification that statutory collections made by Real Estate Regulatory Authority (RERA) are exempt from GST as they fall within the scope of entry 4 of No.12/2017-CTR dated 28.06.2017.
To issue clarification that further sharing of the incentive by acquiring bank with other stakeholders, where the sharing of such incentive is clearly defined under Incentive scheme for promotion of RuPay Debit Cards and low value BHIM-UPI transactions and is decided in the proportion and manner by NPCI in consultation with the participating banks is not taxable.
B. Measures for facilitation of trade:
Insertion of Section 128A in CGST Act, to provide for conditional waiver of interest or penalty or both, relating to demands raised under Section 73, for FY 2017-18 to FY 2019-20 : Considering the difficulties faced by the taxpayers, during the initial years of implementation of GST, the GST Council recommended, waiving interest and penalties for demand notices issued under Section 73 of the CGST Act for the fiscal years 2017-18, 2018-19 and 2019-20, in cases where the taxpayer pays the full amount of tax demanded in the notice upto 31.03.2025. The waiver does not cover demand of erroneous refunds. To implement this, the GST Council has recommended insertion of Section 128A in CGST Act, 2017.
2.Reduction of Government Litigation by Fixing monetary limits for filing appeals under GST: The Council recommended to prescribe monetary limits, subject to certain exclusions, for filing of appeals in GST by the department before GST Appellate Tribunal, High Court, and Supreme Court, to reduce government litigation. The following monetary limits have been recommended by the Council:
GSTAT: Rs. 20 lakhs
High Court: Rs. 1 crore
Supreme Court: Rs. 2 crores
3.Amendment in Section 107 and Section 112 of CGST Act for reducing the amount of pre-deposit required to be paid for filing of appeals under GST: The GST Council recommended reducing the amount of pre-deposit for filing of appeals under GST to ease cash flow and working capital blockage for the taxpayers. The maximum amount for filing appeal with the appellate authority has been reduced from Rs. 25 crores CGST and Rs. 25 crores SGST to Rs. 20 crores CGST and Rs. 20 crores SGST. Further, the amount of pre-deposit for filing appeal with the Appellate Tribunal has been reduced from 20% with a maximum amount of Rs. 50 crores CGST and Rs. 50 crores SGST to 10 % with a maximum of Rs. 20 crores CGST and Rs. 20 crores SGST.
4.Applicability of Goods and Services Tax on Extra Neutral Alcohol (ENA) Taxation of ENA under GST: The GST Council, in its 52nd meeting, had recommended to amend GST Law to explicitly exclude rectified spirit/Extra Neutral Alcohol (ENA) from the scope of GST when supplied for manufacturing alcoholic liquors for human consumption. The GST Council now recommended amendment in sub-section (1) of Section 9 of the CGST Act, 2017 for not levying GST on Extra Neutral Alcohol used for manufacture of alcoholic liquor for human consumption.
5.Reduction in rate of TCS to be collected by the ECOs for supplies being made through them: Electronic Commerce Operators (ECOs) are required to collect Tax Collected at Source (TCS) on net taxable supplies under Section 52(1) of the CGST Act. The GST Council has recommended to reduce the TCS rate from present 1% (0.5% CGST + 0.5% SGST/ UTGST, or 1% IGST) to 0.5 % (0.25% CGST + 0.25% SGST/UTGST, or 0.5% IGST), to ease the financial burden on the suppliers making supplies through such ECOs.
6. Time for filing appeals in GST Appellate Tribunal: The GST Council recommended amending Section 112 of the CGST Act, 2017 to allow the three-month period for filing appeals before the Appellate Tribunal to start from a date to be notified by the Government in respect of appeal/ revision orders passed before the date of said notification. This will give sufficient time to the taxpayers to file appeal before the Appellate Tribunal in the pending cases.
7.Relaxation in condition of section 16(4) of the CGST Act:
a) In respect of initial years of implementation of GST, i.e., financial years 2017-18, 2018-19, 2019-20 and 2020-21:
The GST Councilrecommended that the time limit to avail input tax credit in respect of any invoice or debit note under Section 16(4) of CGST Act, through any return in FORM GSTR 3B filed upto 30.11.2021 for the financial years 2017-18, 2018-19, 2019-20 and 2020-21, may be deemed to be 30.11.2021. For the same, requisite amendment in section 16(4) of CGST Act, retrospectively, w.e.f. 01.07.2017, has been recommended by the Council.
b) with respect to cases where returns have been filed after revocation:
The GST Councilrecommended retrospective amendment in Section 16(4) of CGST Act, to be made effective from July 1st, 2017, to conditionally relax the provisions of section 16(4) of CGST Act in cases where returns for the period from the date of cancellation of registration/ effective date of cancellation of registration till the date of revocation of cancellation of the registration, are filed by the registered person within thirty days of the order of revocation.
8.Change in due date for filing of return in FORM GSTR-4 for composition taxpayers from 30th April to 30th June: The GST Council recommended an amendment in clause (ii) of sub-rule (1) of Rule 62 of CGST Rules, 2017 and FORM GSTR-4 to extend the due date for filing of return in FORM GSTR-4 for composition taxpayers from 30th April to 30th June following the end of the financial year. This will apply for returns for the financial year 2024-25 onwards. The same would give more time to the taxpayers who opt to pay tax under composition levy to furnish the said return.
9.Amendment of Rule 88B of CGST Rules, 2017 in respect of interest under Section 50 of CGST Act on delayed filing of returns, in cases where the credit is available in Electronic Cash Ledger (ECL) on the due date of filing the said return: The GST Council recommended amendment in rule 88B of CGST Rules to provide that an amount, which is available in the Electronic Cash Ledger on the due date of filing of return in FORM GSTR-3B, and is debited while filing the said return, shall not be included while calculating interest under section 50 of the CGST Act in respect of delayed filing of the said return.
10.Insertion of Section 11A in CGST Act for granting power not to recover duties not levied or short-levied as a result of general practice under GST Acts: The GST Council recommended inserting a new Section 11A in CGST Act to give powers to the Government, on the recommendations of the Council, to allow regularization of non-levy or short levy of GST, where tax was being short paid or not paid due to common trade practices.
11. Refund of additional Integrated Tax (IGST) paid on account of upward revision in price of the goods subsequent to export: The GST Council recommended to prescribe a mechanism for claiming refund of additional IGST paid on account of upward revision in price of the goods subsequent to their export. This will facilitate a large number of taxpayers, who are required to pay additional IGST on account of upward revision in price of the goods subsequent to export, in claiming refund of such additional IGST.
Clarification regarding valuation of supply of import of services by a related person where recipient is eligible to full input tax credit: The Council recommended to clarify that in cases where the foreign affiliate is providing certain services to the related domestic entity, for which full input tax credit is available to the said related domestic entity, the value of such supply of services declared in the invoice by the said related domestic entity may be deemed as open market value in terms of second proviso to rule 28(1) of CGST Rules. Further, in cases where full input tax credit is available to the recipient, if the invoice is not issued by the related domestic entity with respect to any service provided by the foreign affiliate to it, the value of such services may be deemed to be declared as Nil, and may be deemed as open market value in terms of second proviso to rule 28(1) of CGST Rules.
Clarification regarding availability of Input Tax Credit (ITC) on ducts and manholes used in the network of Optical Fiber Cables (OFCs): The Council recommended to clarify that input tax credit is not restricted in respect of ducts and manhole used in network of optical fiber cables (OFCs), under clause (c) or under clause (d) of sub-section (5) of section 17 of CGST Act.
Clarification on the place of supply applicable for custodial services provided by banks: The Council recommended to clarify that place of supply of Custodial services supplied by Indian Banks to Foreign Portfolio Investors is determinable as per Section 13(2) of the IGST Act, 2017.
Clarification on valuation of corporate guarantee provided between related persons after insertion of Rule 28(2) of CGST Rules, 2017: GST Council recommended amendment of rule 28(2) of CGST Rules retrospectively with effect from 26.10.2023 and issuance of a circular to clarify various issues regarding valuation of services of providing corporate guarantees between related parties. It is inter alia being clarified that valuation under rule 28(2) of CGST Rules would not be applicable in case of export of such services and also where the recipient is eligible for full input tax credit.
Clarification regarding applicability of provisions of Section 16 (4) of CGST Act, 2017, in respect of invoices issued by the recipient under Reverse Charge Mechanism (RCM): The Council recommended to clarify that in cases of supplies received from unregistered suppliers, where tax has to be paid by the recipient under reverse charge mechanism (RCM) and invoice is to be issued by the recipient only, the relevant financial year for calculation of time limit for availment of input tax credit under the provisions of section 16(4) of CGST Act is the financial year in which the invoice has been issued by the recipient.
17.Clarification on following issues to provide clarity to trade and tax officers and to reduce litigation:
Clarification on taxability of re-imbursement of securities/shares as ESOP/ESPP/RSU provided by a company to its employees
Clarification on requirement of reversal of input tax credit in respect of amount of premium in Life Insurance services, which is not included in the taxable value as per Rule 32(4) of CGST Rules.
Clarification on taxability of wreck and salvage values in motor insurance claims
Clarification in respect of Warranty/ Extended Warranty provided by Manufacturers to the end customers
Clarification regarding availability of input tax credit on repair expenses incurred by the insurance companies in case of reimbursement mode of settlement of motor vehicle insurance claims.
Clarification on taxability of loans granted between related person or between group companies.
Clarification on time of supply on Annuity Payments under HAM Projects.
Clarification regarding time of supply in respect of allotment of Spectrum to Telecom companies in cases where payment of licence fee and Spectrum usage charges is to be made in instalments.
Clarification relating to place of supply of goods supplied to unregistered persons, where delivery address is different from the billing address
Clarification on mechanism for providing evidence by the suppliers for compliance of the conditions of Section 15(3)(b)(ii) of CGST Act, 2017 in respect of post-sale discounts, to the effect that input tax credit has been reversed by the recipient on the said amount.
Clarifications on various issues pertaining to special procedure for the manufacturers of the specified commodities, like pan masala, tobacco etc.
18. The Council recommended amendment in section 140(7) of CGST Act retrospectively w.e.f. 01.07.2017 to provide for transitional credit in respect of invoices pertaining to services provided before appointed date, and where invoices were received by Input Service Distributor (ISD) before the appointed date.
19. The Council recommended providing a new optional facility by way of FORM GSTR-1A to facilitate the taxpayers to amend the details in FORM GSTR-1 for a tax period and/ or to declare additional details, if any, before filing of return in FORM GSTR-3B for the said tax period. This will facilitate taxpayer to add any particulars of supply of the current tax period missed out in reporting in FORM GSTR-1 of the said tax period or to amend any particulars already declared in FORM GSTR-1 of the current tax period (including those declared in IFF, for the first and second months of a quarter, if any, for quarterly taxpayers), to ensure that correct liability is auto-populated in FORM GSTR-3B.
20. The Council recommended that filing of annual return in FORM GSTR-9/9A for the FY 2023-24 may be exempted for taxpayers having aggregate annual turnover upto two crore rupees.
21. Amendment was recommended to be made in section 122(1B) of CGST Act retrospectively w.e.f. 01.10.2023, so as to clarify that the said penal provision is applicable only for those e-commerce operators, who are required to collect tax under section 52 of CGST Act, and not for other e-commerce operators.
22. The Council recommended amendment in rule 142 of CGST Rules and issuance of a circular to prescribe a mechanism for adjustment of an amount paid in respect of a demand through FORM GST DRC-03 against the amount to be paid as pre-deposit for filing appeal.
Other measures pertaining to Law and Procedures
23.Rolling out of bio-metric based Aadhaar authentication on All-India basis: The GST Council recommended to roll-out the biometric-based Aadhaar authentication of registration applicants on pan-India basis in a phased manner. This will strengthen the registration process in GST and will help in combating fraudulent input tax credit (ITC) claims made through fake invoices.
24.Amendments in Section 73 and Section 74 of CGST Act, 2017 and insertion of a new Section 74A in CGST Act, to provide for common time limit for issuance of demand notices and orders irrespective of whether case involves fraud, suppression, willful misstatement etc., or not: Presently, there is a different time limit for issuing demand notices and demand orders, in cases where charges of fraud, suppression, willful misstatement etc., are not involved, and in cases where those charges are involved. In order to simplify the implementation of those provisions, the GST Council recommended to provide for a common time limit for issuance of demand notices and orders in respect of demands for FY 2024-25 onwards, in cases involving charges of fraud or willful misstatement and not involving the charges of fraud or willful misstatement etc. Also, the time limit for the taxpayers to avail the benefit of reduced penalty, by paying the tax demanded along with interest, has been recommended to be increased from 30 days to 60 days.
25. The Council recommended amendment in section 171 and section 109 of CGST Act, 2017 to provide asunset clause for anti-profiteering under GST and to provide for handling of anti-profiteering cases by Principal bench of GST Appellate Tribunal (GSTAT). Council has also recommended the sun-set date of 01.04.2025 for receipt of any new application regarding anti-profiteering.
26.Amendment in Section 16 of IGST Act and section 54 of CGST Act to curtail refund of IGST in cases where export duty is payable: The Council recommended amendments in section 16 of IGST Act and section 54 of CGST Act to provide that the refund in respect of goods, which are subjected to export duty, is restricted, irrespective of whether the said goods are exported without payment of taxes or with payment of taxes, and such restrictions should also be applicable, if such goods are supplied to a SEZ developer or a SEZ unit for authorized operations.
27. The threshold for reporting of B2C inter-State supplies invoice-wise in Table 5 of FORM GSTR-1 was recommended to be reduced from Rs 2.5 Lakh to Rs 1 Lakh.
28. The Council recommended that return in FORM GSTR-7, to be filed by the registered persons who are required to deduct tax at source under section 51 of CGST Act, is to be filed every month irrespective of whether any tax has been deducted during the said month or not. It has also been recommended that no late fee may be payable for delayed filing of Nil FORM GSTR-7 return. Further, it has been recommended that invoice-wise details may be required to be furnished in the said FORM GSTR-7 return.
Note: The recommendations of the GST Council have been presented in this release containing major item of decisions in simple language for information of the stakeholders. The same would be given effect through the relevant circulars/ notifications/ law amendments which alone shall have the force of law.
Borrowers relief from unfair lending practices on interest charging by banks (RBI Cir. 29-04-2024)
Next time you take a loan, keep these things in mind.
(1) Interest is charged to you once the loan has hit your account & not from the date of the agreement or the date of the sanction or the date of the cheque
(2) If the disbursement / repayment is happening in the middle of the month, they don’t charge you interest for the whole month
(3) If you have paid some advance EMIs, that’s adjusted in the further calculations.
RBI has identified many banks not following fair practices.
CBDT signs record number of 125 Advance Pricing Agreements (APAs) in FY 2023-24
Total 641 APAs done since inception of the APA programme
Press Release Posted Date:- Apr 16, 2024
The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with Indian taxpayers. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). This marks the highest ever APA signings in any financial year since the launch of the APA programme. The number of APAs signed in FY 2023-24 also represents a 31% increase compared to the 95 APAs signed during the preceding financial year. With this, the total number of APAs since inception of the APA programme has gone up to 641, comprising 506 UAPAs and 135 BAPAs.
During FY 2023-24 CBDT also signed the maximum number of BAPAs in any financial year till date. The BAPAs were signed as a consequence of entering into Mutual Agreements with India’s treaty partners namely Australia, Canada, Denmark, Japan, Singapore, the UK and the US.
The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation.
The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, especially for Multi National Enterprises () which have a large number of cross-border transactions within their group entities.
1. *Power of Bad Association* : It was a known fact in Ayodhya that Kaikeyi loved Lord Rama more than his own son Bharata, then how could she become so evil. It is by her bad association with Mantara.
2.*Attachment to service & not to the position:* Lord Rama was willing to become the king as a service to Maharaj Dasaratha and He was also willing to go to the forest as a service to His father.
3.*Mission of Life should be to vanquish the demoniac tendencies in our heart:* Lord Rama’s purpose to kill the demons was fulfilled by His banishment to the forest.
4.*Even extreme reversals if taken in the proper spirit will help us fulfill our mission in life:* For example, the law of gravity is only in effect in the Earth’s sphere and not beyond. So also, laws of material nature act only in material consciousness not in spiritual consciousness.
5.*Rama or Aaram, A test for every seeker:* Citizens of Ayodhya wanted to go with Lord Ram to forest and leave behind all the comforts (Aaram) of the City Ayodhya.
6.*Alertness in Spiritual Life:* Lord Rama leaves Ayodhyavasis when they were asleep. If one is inattentive or lazy, one will lose taste in Bhakti.
7.*(Sometimes) Saintly persons might cause pain to others not to hurt them but benefit them:* Bharata disowns Kaikeyi, a doctor may cause pain (operation) to the patient to cure him.
8.*Goal is to please the Lord:* For Bharata, he wanted to stay in the forest which was easier than to return and rule the Kingdom, but he did it to please Lord Rama.
9.*Lord is the Proprietor:* Bhoktaram Yajna tapasam (Bhagavad Gita 5.29). Bharata was ruling the kingdom on Lord Rama’s behalf by keeping the Paduka’s on the throne. We are only caretakers, He is the real proprietor, He can give and take away. The Caretaker acts according to the will of the owner.
10.*Anybody can make a show of greatness:* The reversals test us who we are. When Lakshmana cuts Surpanaka’s nose, gone was the charming form, gone was the facade, and then the real ugly form manifested. One’s greatness is tested by one’s ability to tolerate provoking situations.
11.*Bhakti (Sita) cannot be achieved by Deception:* Ravana wanted Sitadevi, but he gets Maya-Sita at the end. Greed and lust are never satiated, they lead to arrogance and envy.
12.*Maya’s attractions creates traps and makes us suffer:* Marichi takes up a golden dear form and traps Sitadevi. We should see the substance through the eyes of the scripture. Marichi was all about false promises. For example, spider web is most attractive to the fly but actually it’s a trap.
13.*Maya knows our weaknesses:* She can make our strength into weaknesses and take us away from the circle of instructions of great souls. Ravana uses Sitadevi’s attitude to serve great souls to disobey Lakshmana.
14.*Always stand by the Right:* Jatayu’s integrity. Real success is to please the Lord. Jatayu lost his life fighting for Lord Rama but achieved the purpose of Life to please the Lord. It is better to lose & win than to win & lose.
15.*Patience, Determination & Enthusiasm:* Example of Shabari. A long time ago, Guru had asked her to wait for Lord Ram while all other disciples and Guru himself went back to Godhead. She showed her enthusiasm by working hard every day to clean the place, plucking flowers & fruits for the Lord. She had complete faith in the words of Guru and patiently waited with determination. The Lord reveals only when He wants.
16.*Honesty, we can’t put a facade before the Lord:* Hanumanji disguises when he went to meet Lord Rama. Lord knows within who we are, we have to be honest to receive the mercy of the Lord.
17.*Obstacles on the path of Bhakti:* The demons who came to stop Hanuman during his jumping across the ocean. Mainaka (Gold Mountain) – temptation to seek comfort before achieving our real purpose. Surasa (Shadow catching demoness) – While striving for Bhakti, people will chastise, criticize and misunderstand us, we should have the willingness to tolerate. Simhika (Serpent): Being envious of people in higher position and try to stop their progress. This is jealousy of the mind. By devotional service, we have to devour Simhika who represents Envy.
18.*Arrogance cannot understand wellwishers:* The world is a mirror of our own consciousness. Ravana was thinking Mandodari was envious of Sita, but actually he was envious of Lord Rama. Ravana was thinking Vibhisana was disloyal and taking the side of Lord Rama, but he was disloyal to Kubera, his step-brother. When we think we know, we are not willing to listen to good counsel. Spiritual progress means simplicity and humility. If they are lacking, we won’t listen thinking that we know better, that was Ravana.
19.*Big or Small, we can swim the ocean of Samsara by chanting Lord Rama’s holy name:* Big or Small, all the stones floated by writing Lord Ram’s name.
20.*Pride or Attachment leads to loss of intelligence:* dhyayato visayan pumsah (Bhagavad Gita 2.62). Every stage of this sloka was exhibited by Ravana. Loss of intelligence – Even when all his stalwart warriors including Kumbakarna, Indrajit died but he still didn’t give up.
21.*Hearing about the Lord – Revival of dormant love:* Lord Rama being Paramatma in the heart of everyone including Ravana could have killed him just by turning off Ravana’s heart. But the Lord and His pleasure potency Sitadevi went through this whole ordeal so that we can hear about the Lord and revive our dormant love.
22.*Sacrifice even of Family to Surrender to Lord Rama:* Vibhishana comes to take shelter, all the monkeys were against, except Hanumanji. Vibhishana was willing to be misunderstood or even chastised to surrender to the Lord. He told Lord Rama about celestial nectar in Ravana’s heart.
23.*Counsel and Advise in battle against Illusion:* In battle against Illusion, at every stage association of devotees to put us straight without which we will fall. Lord Rama doesn’t need but takes the counsel of Vibhishana.
24.*Grace of Devotee needed to kill demons within:* Agastya muni’s arrow was used by Lord Rama to kill Ravan by piercing his heart.
25.*Welcoming the Lord in hearts with lamps:* That is the Dipavali festival. Lord Rama is welcomed back into Ayodhya with lamps. Dipavali is not just physical fire but lighting the hearts with light of Lord’s grace and process of devotional service. When the heart is fully illuminated, then we can experience Lord Rama within ourselves. When our love awakens, in that love, compassion for all living beings awakens. Then Ramrajya is awakened within the heart and then without (i.e., out in the world).
1. If your turnover exceeds INR 5 crores in the financial year 2023-2024, you will be required to start e-Invoicing from the next financial year, i.e., from 1st April 2024 onwards. It may also be noted that same is applicable if the threshold is crossed in any of the proceeding financial years too.
2. For those who meet the notification criteria but have not yet been enabled on the portal, you can self-enable for e-Invoicing by visiting https://einvoice.gst.gov.in and start reporting through any of the 4 new Invoice Registration Portals (IRPs) – from e-Invoice IRP 3 to e-Invoice IRP 6
•For any assistance, please feel free to contact us at the GST Helpdesk number 1800-103-4786 or visit the Grievance Redressal Portal at https://selfservice.gstsystem.in/ to log a ticket.
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