Infrastructure-development deduction remains available to EPC contractors when substantive statutory conditions outweigh contractor labels in agreemen...
Explained Investment Sources: documented gifts and traceable salary savings supported deletion of additions for property and mutual-fund SIP investmen...
Internal comparable pricing supports arm's-length interest on compulsorily convertible debentures, preventing their recharacterisation as equity for t...
Nominee director protection shields independent financial-institution appointees from criminal liability where they lack involvement in deposit defaul...
AAR held that liquidated damages paid by the applicant to the concessionaire under the concession agreement do not constitute consideration for a taxable supply and are not subject to GST; accordingly, the concessionaire is not entitled to avail input tax credit in respect of such receipts. The Authority applied Circular No.178/10/2022-GST reasoning that where damages merely compensate for loss without any express or implied agreement by the recipient to tolerate or perform acts for the payer, such payments are a monetary compensation flow and not taxable. AAR further noted CBIC clarification on penal charges as analogous, observing the charges enforce contractual discipline for breaches. No other questions required adjudication.
AAR held that liquidated damages paid by the applicant to the concessionaire under the concession agreement do not constitute consideration for a taxable supply and are not subject to GST; accordingly, the concessionaire is not entitled to avail input tax credit in respect of such receipts. The Authority applied Circular No.178/10/2022-GST reasoning that where damages merely compensate for loss without any express or implied agreement by the recipient to tolerate or perform acts for the payer, such payments are a monetary compensation flow and not taxable. AAR further noted CBIC clarification on penal charges as analogous, observing the charges enforce contractual discipline for breaches. No other questions required adjudication.
Note: It is a system-generated summary and is for quick reference only.