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Circulars Customs
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Export obligation monitoring: compliance mechanisms and enforcement for EPCG and Advance Authorization beneficiaries clarified.
An Export Obligation Monitoring Cell will oversee fulfilment under EPCG and Advance Authorization schemes; installation certificates and timelines apply, with random verification of authenticity. The SOP mandates notices to defaulters, DGFT coordination, bond or guarantee execution, penalties, and proportional duty with interest for non-fulfilment, and permits extensions or self-payment in bonafide default cases while stakeholders may report implementation issues to the Principal Commissioner of Customs.
Circulars IBC
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Professional services by insolvency professionals may be provided under approved resolution plans, with billing permitted in professional or entity name.
The circular permits Insolvency Professionals to render services tied to implementation of approved resolution plans only if those services are specified in the resolution plan, and confirms invoices for services may be issued in the name of the individual professional, the Insolvency Professional Entity, or the firm where the professional is a partner, subject to compliance with the Code of Conduct.
Notifications Income Tax
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Electronic filing requirements expanded: audit liable taxpayers must file digitally; senior taxpayers retain flexible filing options.
Rule 12 amendments require electronic filing for individuals and HUFs subject to audit under section 44AB, permitting filing via digital signature or electronic verification. For other taxpayers the permitted modes are digital signature, electronic transmission with verification code, or electronic filing followed by submission of Form ITR-V. Senior taxpayers are afforded additional flexibility: specified forms may be filed with digital signature, electronically with verification code, electronically with subsequent ITR-V submission, or on paper. The notification also substitutes ITR-1, ITR-3 and ITR-5.
Act Rules GST
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ISD expansion in GST: ISDs now cover reverse charge invoices and mandatory credit distribution for distinct persons.
Amendments expand the scope of the Input Service Distributor to include invoices for services subject to the reverse charge mechanism and to cover invoices received "for or on behalf of" distinct persons, making such offices liable to register as ISDs and to distribute input tax credit in the prescribed manner; truly common head office services may remain subject to cross charge rather than ISD distribution.
Case Laws Indian Laws
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Presumption in cheque bounce cases shifts burden to accused to rebut claim of legally enforceable debt.
The complainant must prove issuance, presentation and dishonour of the cheque to trigger the presumption under Section 139, after which the burden shifts to the accused to rebut by proving absence of a legally enforceable debt; conflicting statements and lack of substantive evidence undermine rebuttal and sustain the presumption.
Case Laws Indian Laws
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Vicarious liability under the Negotiable Instruments Act requires specific averments of authority and responsibility; absence undermines the complaint.
Applicability of vicarious liability in cheque bounce offences under the Negotiable Instruments framework turns on whether the complaint pleads that the accused was in charge of and responsible for the conduct of the firm's business when the offence occurred; resignation is a matter of evidence and allegations of partnership alone are insufficient without specific averments of authority and responsibility.
Case Laws Income Tax
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Incomplete assessment communication can delay the start of the limitation period for appeals when essential contents are not disclosed.
Incomplete ITBA order uploads do not void an assessment but may postpone the commencement of the limitation period for appeals because knowledge of decision requires understanding the essential contents; defective communication can justify extension of time even though the assessment's substantive validity remains unaffected.
Case Laws Income Tax
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Charitable status preserved where incidental surplus, trustee payments, or deed amendments further educational objectives without private benefit.
The Court analysed whether surplus generation, fee policies, deed amendments, and payments to trustees removed an educational trust's charitable purpose. It held that incidental surplus and deed changes furthering objectives do not automatically negate charitable character, and payments for genuine services do not necessarily amount to private benefit. Cancellation of registration requires proof of lack of genuineness or objective deviation; mere shortcomings or commercial elements aimed at sustainability are insufficient.
Case Laws Income Tax
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Alteration of objects: failure to notify tax authority can jeopardise a society's registered status under section 12A.
A material amendment of a registered society's objects, coupled with failure to intimate the Commissioner under rule 17B and Form No.10A, undermines the basis of registration under Section 12A; Section 12AA(3) addresses activities inconsistent with objects, whereas fundamental change in the objects themselves requires statutory intimation to preserve the original registration.
Case Laws Income Tax
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Residential status determination can shift tax assessment jurisdiction when overseas activities do not qualify as employment.
The Tribunal examined whether the appellant's overseas activities constituted employment for residential-status purposes, applying ejusdem generis and noscitur a sociis to conclude they did not. Consequently, the officer of international taxation's assumption of jurisdiction based on non resident status was improper once residential status was contested; the file should have been transferred to the territorially competent assessing officer or an authorised officer. An assessment conducted without such lawful jurisdiction was characterised as legally defective and without effect.
Case Laws Income Tax
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Genuineness of gifts requires proof of donor identity and capacity, otherwise taxability follows under assessment rules.
The High Court examined taxation of receipts treated as gifts, stressing that the assessee must prove the genuineness of gifts by establishing donor identity and the donors' capacity and creditworthiness; acceptance by lower authorities does not relieve the recipient of the burden of proof, and inadequate documentary corroboration justifies reassessment where donations are doubtful.
Case Laws Income Tax
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Advance rent characterization alters TDS obligations under Section 194-I, requiring payers to deduct tax at source.
Payments labelled as a security deposit that are contractually reduced and adjusted against periodic rent payments are treated as advance rent rather than refundable security, and thus constitute rent for TDS purposes, obliging the payer to deduct tax at source under the statutory withholding framework.
Case Laws GST
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Non-monetary consideration: free diesel treated as part of taxable value for GTA services under GST implications.
Whether diesel supplied free of cost by a service recipient constitutes consideration for GST valuation of Goods Transport Agency services is examined, with the analysis concluding that non-monetary benefits provided by recipients may be added to the taxable value and that contractual allocation of free supplies does not displace the statutory valuation framework.
Case Laws Income Tax
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Draft assessment procedure required under law: omission invalidates assessment proceedings and denies assessee DRP objection rights.
Section 144C mandates a non-obstante, mandatory draft assessment procedure for eligible assessees, requiring issuance of a draft order, opportunity to file objections, and consideration by a three-member Dispute Resolution Panel. A foreign entity qualifying as an eligible assessee must be afforded this process; failure to issue the draft order is a substantive lapse that deprives the assessee of the DRP forum and engenders jurisdictional infirmity in any consequent final assessment, demand, or penalty. Revisionary powers do not obviate the Section 144C mandate.
Case Laws Income Tax
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DTAA incorporation: notification requirement under domestic law limits automatic treaty application across countries and clarifies temporal scope.
The decision holds that a DTAA requires a mandatory notification under Section 90(1) to be effective domestically, that provisions in a DTAA with one country do not automatically extend to other bilateral agreements without explicit amendment, and that the present-tense term "is" fixes the temporal application of treaty benefits to the date of treaty entry with India.
Case Laws Income Tax
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Most favoured nation clause interpretation guides treaty effect, subject to domestic notification requirements for implementation.
The Most Favoured Nation (MFN) clause in tax treaties must be interpreted under Article 31 VCLT principles as reflecting customary international law, with subsequent agreements and state practice serving as authentic means of interpretation. Domestic implementation procedures materially affect treaty operation: comparative practices of other states cannot substitute for India's requirement of formal domestic steps, including issuance of a notification after a treaty trigger event, to assimilate treaty amendments into national law.
Case Laws Income Tax
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Treaty implementation procedures determine when DTAA modifications bind taxpayers, requiring domestic notification for enforceability.
In India, DTAA modifications take effect only upon formal domestic notification, preventing automatic retroactive application of third country treaty changes and reflecting a dualist approach requiring assimilation of treaty amendments into domestic law before they bind taxpayers; by contrast, the Netherlands, France, and Switzerland rely on differing domestic mechanisms-executive decrees, parliamentary ratification, or referenda and implementing orders-that may permit retroactive application and integrate treaties into domestic enforceable law.
Case Laws Income Tax
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Interpretation of "is" in tax treaties determines when OECD membership triggers treaty benefits under domestic implementation rules.
Interpretation of the term "is" in DTAAs is context-dependent: although generally present in signification, its temporal application must be determined from the treaty text and purpose. Applied to OECD membership, the operative moment for eligibility to treaty benefits depends on when the DTAA relationship produces the relevant legal consequence, and this assessment must be reconciled with the domestic requirement for legislative action or notification for treaty enforceability.
Case Laws Income Tax
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Treaty Enforcement: legislative enactment required for treaties to create domestic rights; executive negotiation alone is insufficient.
Treaties do not function as self-executing domestic law; the Union may negotiate and ratify international agreements but legislative enactment is required to create or alter domestic rights and obligations. Under the dualist approach, executive negotiation and foreign measures cannot substitute for domestic incorporation; implementing statutes and notification mechanisms are necessary for tax treaties to be recognized and applied by revenue authorities. Courts may consult treaty texts to resolve ambiguities in domestic implementing laws but cannot themselves import treaty provisions into domestic law absent parliamentary enactment.
Case Laws PMLA
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Anticipatory bail rights affirmed: non-accused persons may seek protection and PMLA arrests require recorded reasons and prompt court production.
Anticipatory bail under Section 438 Cr.P.C. is available even before formal accusation and persons not named in an ECIR have locus standi to seek it. Arrest powers under Section 19 of the PMLA require a recorded reasonable belief by the Director and strict compliance with statutory conditions; failure to record reasons or comply with the arrest provisions can vitiate the arrest. Arrested persons must be produced before the court within 24 hours, excluding transit time, to secure judicial oversight and protect liberty.

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CUSTOMS DUTY EXEMPTIONS / CONCESSIONS BEING ALLOWED TO LAPSE

24 July, 2024

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Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Certain BCD exemptions entries under S No. 50/2017-Customs dated 30.6.2017 and other notifications are being allowed to lapse with effect from 30.9.2024.

(a) The following entries of notification no. 50/2017-Customs dated 30.6.2017 are being allowed to lapse with effect from 30.9.2024:

S. No.

S N of 50/2017 Customs

Description

1.

478

Wireless apparatus, accessories and parts as specified in List 29 imported by a licensed amateur radio operator

2.

353

Foreign currency coins when imported into India by a Scheduled Bank

3.

387

 Zinc metal recovered by toll smelting or toll processing from zinc concentrates exported from India for such processes

4.

441

Spinnerettes made inter alia of Gold, Platinum and Rhodium or any one or more of these metals, when imported in exchange of worn-out or damaged spinnerettes exported out of India

5.

238

Organic/inorganic Coating material for manufacture of electrical steel

6.

254

Catalyst for manufacture of cast components of Wind Operated Electricity Generator

7.

255

Resin for manufacture of cast components of Wind Operated Electricity Generator

8.

277A

Calendared plastic sheet for manufacturing of Smart Card under chapter heading 8523

9.

339

Concessional rate on import of Toughened glass with low iron content and transmissivity of minimum 91% and above, for use in manufacture of solar thermal collectors or heaters

10.

421

Specified goods required for basic telephone service, cellular mobile telephone service, internet service or closed users’ group 64 KBPS domestic data network via INSAT satellite system service and parts, for manufacture of the goods

11.

479

Mono or Bi polar Membrane electrolysers and parts thereof including secondary brine purification components, jumper switches, filtering elements for hydrogen filters for caustic soda or potash units; Membrane and parts thereof or other parts for caustic soda or potash units;

12.

475

Specified goods including scramblers, descramblers, encoders, decoders, jammers, network firewalls, network sniffers, scanners and monitoring systems, probes for data monitoring and SMS/MMS monitoring systems

13.

482

Newspaper page transmission and reception facsimile system or equipment; and Telephoto transmission and reception system or equipment

14.

495

Batteries for electrically operated vehicles, including two and three wheeled electric motor vehicles.

15.

497

Active Energy Controller (AEC) for use in manufacture of Renewable Power System (RPS) inverters

16.

579

Survey (DGPS) instruments, 3D modeling software for ore body simulation cum mine planning and exploration (geophysics and geochemistry) equipment required for surveying and prospecting of minerals

17.

419

Aluminium Oxide for manufacture of washcoat of catalytic converter

18.

420

Clay 2 powder for use in ceramic substrate for catalytic convertor

19.

340

Solar tempered glass or solar tempered (anti-reflective coated) glass for use in manufacture of solar cells/panels/modules

20.

565

Specified goods for use in the manufacture of Flexible Medical Video Endoscope [heading 9018]

21.

566

 Specific input goods for manufacture of syringes, needles, catheters and cannulae

22.

568

Parts and components for manufacture of blood pressure monitors and blood glucose monitoring system (Glucometers)

Note: Description of entries is indicative. Notification may be referred to for complete description.

(b) The following notifications are being allowed to lapse with effect from 30.9.2024:

S. No

Notification No.

Description

1.

97/99-Customs dated 21 July 1999

Exempts BCD and additional duty under Sections 3(1), 3(3) and 3(5) on standard gold bars imported by a RBI authorised bank

2.

30/2004-Customs dated 28 January 2004

Provides full exemption from BCD to second-hand computers/accessories and peripherals received as donation by schools, charitable institutions.

3.

102/2007-Customs dated 14 September 2017

Provides exemption from Special Additional Duty (SAD) levied vide section 3(5) of CTA on to all goods imported for subsequent sale when IGST, CGST, SGST or UTGST paid by importer.

4.

45/2005-Customs dated 16 May 2005

Provides exemption from Special Additional Duty levied under Section 3(5) of CTA on goods cleared from SEZ to DTA.

5.

151/94-Customs dated 13 July 1994

Provides exemption to imports of duty-paid fuel and lubricating oil on aircrafts taken during the outward flight; goods imports by United Arab Airlines; aircraft engines, spares imported by Indian Airlines and Air India International. Re-import entries will operate from re-import notification 45/2017-Cus

6.

26-Customs dated 19th February 1962

Provides exemption from import duty under the Sea Customs Act on catering cabin equipment, food and drink on re-importation by aircrafts of the Indian Airlines Corporation from foreign flights

Note: Description of entries is indicative. Notification may be referred to for complete description.


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Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

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Acts Income Tax