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Working-capital adjustment determines whether software-services transfer-pricing margins fall within the statutory tolerance range, eliminating any ad...
Permanent establishment deductions upheld for expatriate salaries, direct costs and trading losses, while head-office costs require fresh classificati...
Recoveries from transporters for transit loss, damage, shortage, contamination, theft, delay and negligence were treated as liquidated damages arising from breach or non-performance of the transport contracts. Because the contracts themselves allocated liability for losses and provided for deduction and recovery, the amounts were compensatory rather than payment for any independent service. Applying Circular No. 178/10/2022-GST, the Authority held that where payment merely compensates injury or loss and there is no agreement to tolerate an act, refrain from an act, or do anything in return, it is not consideration for a supply. The recoveries were therefore outside GST as non-taxable and not a supply of services under para 5(e) of Schedule II.
Recoveries from transporters for transit loss, damage, shortage, contamination, theft, delay and negligence were treated as liquidated damages arising from breach or non-performance of the transport contracts. Because the contracts themselves allocated liability for losses and provided for deduction and recovery, the amounts were compensatory rather than payment for any independent service. Applying Circular No. 178/10/2022-GST, the Authority held that where payment merely compensates injury or loss and there is no agreement to tolerate an act, refrain from an act, or do anything in return, it is not consideration for a supply. The recoveries were therefore outside GST as non-taxable and not a supply of services under para 5(e) of Schedule II.
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