Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
AAR held that services provided by the applicant to designated Municipal Corporations and Municipalities are rendered to "local authorities" under s.2(69) CGST Act, as these bodies are "Municipalities" under Arts. 243P and 243Q of the Constitution. The activities are in relation to functions entrusted under Arts. 243G and 243W, read with the Eleventh and Twelfth Schedules. However, since certain contracts involve supply of spare parts and other goods, the transactions constitute composite supplies with maintenance as the principal supply. Exemption under Entry 3 (pure services) of N/N. 12/2017 is inapplicable; exemption, if any, is available only under Entry 3A where the value of goods does not exceed 25% of the total supply.
AAR held that services provided by the applicant to designated Municipal Corporations and Municipalities are rendered to "local authorities" under s.2(69) CGST Act, as these bodies are "Municipalities" under Arts. 243P and 243Q of the Constitution. The activities are in relation to functions entrusted under Arts. 243G and 243W, read with the Eleventh and Twelfth Schedules. However, since certain contracts involve supply of spare parts and other goods, the transactions constitute composite supplies with maintenance as the principal supply. Exemption under Entry 3 (pure services) of N/N. 12/2017 is inapplicable; exemption, if any, is available only under Entry 3A where the value of goods does not exceed 25% of the total supply.
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