Development agreements require legal possession or effective enjoyment for capital gains transfer; permissive possession and deferred consideration de...
Prolonged sterilisation of development rights supports capital-gains treatment, while business-income disallowances cannot govern capital-gains comput...
Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
Section 44B is a special provision for computing profits and gains of shipping business for non-residents at 7.5% of specified amounts like freight receipts. The issue was whether GST should be included in these specified amounts for computing presumptive income u/s 44B. It was held that Section 145A dealing with income computation and disclosure standards relates to valuation of inventory and cannot be extended to alter the computation mechanism u/s 44B. GST being a statutory levy cannot be considered part of the specified amounts u/s 44B(2), as it would amount to charging income tax on GST itself. Judicial precedents under the earlier service tax regime support excluding indirect taxes from such presumptive taxation provisions. Including GST would go against the intent of Section 44B which aims to simplify taxation for non-residents by avoiding complexities of normal provisions. Deduction for GST paid cannot be allowed u/s 43B if GST is included, as Section 44B overrides regular provisions. The minority DRP view upholding exclusion of GST for Section 44B was affirmed. Book profit u/s 115JB was held inapplicable due to Explanation 4A. Directions were issued regarding tax deducted at source and advance tax credit claims.
Section 44B is a special provision for computing profits and gains of shipping business for non-residents at 7.5% of specified amounts like freight receipts. The issue was whether GST should be included in these specified amounts for computing presumptive income u/s 44B. It was held that Section 145A dealing with income computation and disclosure standards relates to valuation of inventory and cannot be extended to alter the computation mechanism u/s 44B. GST being a statutory levy cannot be considered part of the specified amounts u/s 44B(2), as it would amount to charging income tax on GST itself. Judicial precedents under the earlier service tax regime support excluding indirect taxes from such presumptive taxation provisions. Including GST would go against the intent of Section 44B which aims to simplify taxation for non-residents by avoiding complexities of normal provisions. Deduction for GST paid cannot be allowed u/s 43B if GST is included, as Section 44B overrides regular provisions. The minority DRP view upholding exclusion of GST for Section 44B was affirmed. Book profit u/s 115JB was held inapplicable due to Explanation 4A. Directions were issued regarding tax deducted at source and advance tax credit claims.
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