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    Refund of IGST - Export of goods - only because the exporter had claimed drawback @ 1% in regard to ...
    Time limit for availing Input Tax Credit (ITC) - whether GSTR-3B is a return u/s 39(1) of Central GS...
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    Case LawsGST
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    Zero-rated supplies entitlement: IGST refund cannot be denied solely because exporter claimed higher drawback; statutory rules prevail.
    The statutory refund regime treats the shipping bill as a deemed application for IGST refund on exports and allows withholding of refund only in the specific, enumerated circumstances provided by the rules. Administrative circulars cannot override the statute; availing a higher duty drawback or technical limitations in departmental systems do not, without falling within the prescribed withholding contingencies, defeat an exporter's entitlement to IGST refund for zero-rated supplies.
    Case LawsGST
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    Input Tax Credit time limit: GSTR 3B is a temporary stopgap and does not fix the statutory monthly return deadline.
    The Court held that GSTR 3B was implemented as a temporary stopgap and was not intended to replace the statutory monthly return; an administrative press release treating GSTR 3B filing as the outer date to avail Input Tax Credit conflicted with the statutory time limit provision and the rules prescribing the monthly return form and manner.
    NewsBills
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    Rates for deduction of income-tax at source from salaries set and applied to advance tax and special-case assessments.
    Part III of the First Schedule prescribes rates for deduction of income-tax at source from salaries and for computation of advance tax for the financial year 2019-20; those rates also apply to charging income-tax on current incomes in special assessment cases such as provisional assessment of non-resident shipping profits, assessments of persons leaving India, persons likely to transfer property to avoid tax, and short-duration bodies.
    NewsBills
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    Income-tax rates and surcharge rules set slab-based taxation with a graduated surcharge and limits on surcharge impact.
    Slab-based income tax rates are prescribed for individuals, HUFs, AOPs, BOIs and artificial juridical persons with separate resident senior citizen slabs; computed tax is subject to a graduated surcharge for higher incomes, accompanied by a cap mechanism preventing the total tax-plus-surcharge on an income from exceeding the tax at the relevant bracket threshold by more than the excess income above that threshold.
    NewsBills
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    Tax rates for co-operative societies remain unchanged; a surcharge with a cap applies to high income societies.
    Rates of income-tax for co-operative societies remain as specified in Paragraph B of Part III of the First Schedule to the Finance Bill, unchanged from the prior year. A surcharge applies to the income-tax of societies exceeding a high-income threshold, subject to a cap that prevents total tax and surcharge from exceeding the tax at the threshold by more than the excess income.
    NewsBills
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    Firm tax rate unchanged; surcharge applies to high income firms with a statutory cap limiting surcharge on excess income.
    Rate of tax for firms for TDS and advance tax remains unchanged from the prior year; a surcharge of twelve per cent is levied where a firm's total income exceeds one crore rupees, subject to a cap that limits the aggregate income tax and surcharge on income above the threshold to not exceed the tax on the threshold amount by more than the excess income.
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    Surcharge on local authority income applies above a threshold, with a statutory cap limiting aggregate tax increase.
    The income-tax rate for local authorities is maintained at the prior year's level for purposes of TDS and advance tax; a statutory surcharge is levied where total income exceeds a prescribed threshold. A statutory cap limits the combined income-tax and surcharge so that the aggregate tax on income above the threshold does not exceed the income-tax payable as if income equalled the threshold by more than the excess income.
    NewsBills
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    Corporate tax rate revised, varying by domestic status; surcharge and health and education cess apply.
    Income tax rates for companies distinguish domestic and other companies, with domestic companies below a specified turnover threshold subject to a lower rate and others taxed at a higher rate. Surcharge is levied in graded bands for domestic and non domestic companies, with marginal relief caps limiting excess tax attributable to incomes above prescribed thresholds. Certain specified company cases attract a prescribed surcharge rate. A Health and Education Cess is levied on tax including surcharge, and marginal relief is not available in respect of that cess.
    NewsBills
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    TDS on individual and HUF payments to contractors and professionals: new withholding applies above threshold; PAN may be used instead of TAN.
    Section 194M imposes withholding on payments by individuals and Hindu undivided families to resident contractors and professionals where the aggregate annual payments exceed the statutory threshold; tax is to be deducted at the prescribed withholding rate and may be deposited using the payer's Permanent Account Number, relieving such payers from the requirement to obtain a Tax Deduction Account Number.
    NewsBills
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    TDS on transfer of immovable property now covers ancillary charges, expanding 'consideration' to include fees incidental to sale.
    The Explanation to Section 194-IA is amended to state that consideration for immovable property includes ancillary charges payable by the buyer-such as club membership, car parking, electricity and water facility fees, maintenance fees, advance fees and other similar incidental charges-thereby making these amounts part of the taxable base for TDS on transfer of immovable property other than agricultural land.
    NewsBills
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    Deemed accrual of gifts: transfers by Indian residents to nonresidents treated as taxable in India under new provision.
    Gifts of money or property made by a person resident in India to a person outside India, where the property is situated in India or sums are paid, are deemed to accrue or arise in India for tax purposes when made on or after 5 July 2019; existing statutory gift exemptions continue to apply and applicable DTAA provisions remain operative. The amendment takes effect from 1 April 2020 and applies to assessment year 2020-21 onward.
    NewsBills
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    Mandatory return filing for high-value transactions expands to include transaction and rollover-based filing triggers.
    Amendments mandate filing of income tax returns by individuals who, during the previous year, undertake specified high-value transactions-including large current account deposits, significant foreign travel expenditure, or substantial electricity consumption-or meet other prescribed conditions; and require persons claiming capital gains rollover exemptions on reinvestment in specified assets to file returns when their pre-rollover total income exceeded the basic exemption limit, even if post-claim income is below that limit.
    NewsBills
    Show AI Summary
    Inter-changeability of PAN and Aadhaar: Aadhaar may be quoted in lieu of PAN and recipients must ensure authentication.
    Proposed amendments allow a person required to quote PAN to furnish an Aadhaar number in lieu of PAN and provide that persons entering certain prescribed transactions who lack a PAN must apply for one; recipients of documents must ensure PAN or Aadhaar is duly quoted and authenticated, and a penalty provision is amended to enforce compliance.
    NewsBills
    Show AI Summary
    PAN-Aadhaar linkage: failure to intimate Aadhaar renders PAN inoperative while preserving prior transactions under proposed amendment.
    Failure to intimate Aadhaar will result in the PAN being made inoperative in the prescribed manner rather than being deemed invalid, with an express provision preserving the validity of transactions previously carried out through that PAN; the amendment is prospective and will take effect from the notified effective date.
    NewsBills
    Show AI Summary
    Statement of Financial Transactions reporting: expanded mandatory reporting, threshold removed and penalties broadened to enhance tax pre-filling.
    Mandatory reporting under the Statement of Financial Transactions is widened to require additional prescribed persons to furnish SFTs, the existing aggregate transaction threshold for reporting is removed to include small-value transactions, defects unrectified within the prescribed time will be treated as furnishing inaccurate information, and penalty provisions are expanded to cover all reporting entities; these amendments take effect from 1st September, 2019.
    NewsBills
    Show AI Summary
    Electronic payment requirement extended to include prescribed electronic modes, altering payment compliance and tax treatment from specified effective dates.
    Amendments add "other electronic mode as may be prescribed" to the list of acceptable non cash payment modes across multiple income tax provisions, so payments or receipts through prescribed electronic instruments will satisfy statutory conditions for donation exemption, capital expenditure recognition, disallowance avoidance, actual cost determination, stamp duty linked valuation, presumptive taxation eligibility, and employment related deductions. The changes apply from specified effective dates: most tax treatment provisions from 1 April 2020 and the prohibitions on specified cash receipts/repayments from 1 September 2019.
    NewsBills
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    TDS on cash withdrawals to apply when annual cash withdrawals exceed a threshold, with specified institutional exemptions.
    Section 194N creates a TDS obligation on cash payments from a recipient's account by banks, cooperative banks and post offices when annual aggregate cash withdrawals exceed a prescribed threshold, targeting reduction of cash transactions; specified institutional recipients are exempted, and the Central Government may notify further exemptions in consultation with the Reserve Bank of India, with a statutory commencement provision.
    NewsBills
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    Mandatory electronic payment acceptance requires businesses above a turnover threshold to provide prescribed digital payment facilities, with daily penalties.
    A new provision requires persons carrying on business whose total sales, turnover or gross receipts in the immediately preceding previous year exceed a specified turnover threshold to provide facilities for accepting payments through the prescribed electronic modes. Failure to provide such prescribed electronic payment facilities attracts a daily monetary penalty, subject to proof of good and sufficient reasons, with penalty imposition by the Joint Commissioner. A consequential amendment prohibits banks and system providers from imposing any charge for using the prescribed electronic payment modes.
    NewsBills
    Show AI Summary
    IFSC tax incentives expand tax-neutral transfers and exemptions to promote external borrowing and extended profit-linked deductions.
    Proposed IFSC tax measures include treating transfers of specified securities by Category III AIFs with all non-resident unit-holders as not constituting transfer, empowering notification of additional securities, exempting interest payable to non-residents on borrowings by IFSC units, extending tax neutrality to dividends paid out of accumulated IFSC income, exempting distributions by mutual funds in IFSC with all non-resident unit-holders from additional tax, ensuring full access to profit-linked deductions for IFSC units by removing restrictive computation conditions, and increasing the one-hundred-per-cent deduction to any ten consecutive assessment years within a fifteen-year window.
    NewsBills
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    Interest recognition rule extended to regulated NBFCs, with deductions allowed only when interest is actually paid by return-filing deadline.
    The accrual-exception that taxes interest on bad or doubtful debts when credited or received is extended to include deposit-taking NBFCs and systemically important non-deposit-taking NBFCs; correspondingly, interest deductions for payments to these NBFCs are allowable only if actually paid on or before the due date for filing the return of income, aligning their tax treatment with other regulated financial institutions.

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      AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

      3 February, 2020

      Contents
      Rules & Regulations
      Plus +
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      Budget 2020-21 + FINANCE BILL, 2020

      AMENDMENTS

      A.

      Tariff rate changes for Basic Customs Duty [to be effective from 02.02.2020] * [Clause 115 (a) of the Finance Bill, 2020]

      Rate of Duty

      S.No.

      Heading, sub-heading, tariff item

      Commodity

      From

      To

       

       

      Food processing

       

       

      1.

      0802 32 00

      Walnuts, shelled

      30%

      100%

       

       

      Chemicals

       

       

      2.

      3824 99 00

      Other Chemical products and preparations of the chemical or allied industries, not elsewhere specified

      10%

      17.5%

       

       

      Footwear

       

       

      3.

      6401, 6402,

      6403, 6404, 6405

      Footwear

      25%

      35%

      4.

      6406

      Parts of footwear

      15%

      20%

       

       

      Household Items

       

       

      5.

      6911 10, 6911 90 20, 6911 90 90

      Tableware, kitchenware, water filters (of a capacity not exceeding 40 litres) and other household articles, of porcelain of china.

      10%

      20%

      6.

      6912 00 10, 6912 00 20, 6912 00 40, 6912 00 90

      Ceramic tableware, kitchen-ware, clay articles and other household articles

      10%

      20%

      7.

      7013

      Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or Similar purposes (other than that of heading 7010 or 7018)

      10%

      20%

      8.

      7323

      Table kitchen or other household articles and parts thereof, of iron or steel, iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel, including pressure cookers pans utensils, misc articles such as iron & steel wool, polishing pads, gloves etc.

      10%

      20%

      9.

      7418 10

      Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper.

      10%

      20%

      10.

      7615 10

      Table, kitchen or other household articles and parts thereof, of aluminum; pot scourer and scouring or polishing pads, gloves and the like, of aluminum.

      10%

      20%

      11.

      8301

      Padlocks and locks (key, combination or electrically operated) of base metal; Clasps and frames with clasps, incorporating locks of base metals; keys for any of the foregoing articles, of base metals (Other than lock of a kind used for automobiles.)

      10%

      20%

      12.

      9603

      Brooms, brushes, hand operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; Squeegees (other than roller squeegees).

      10%

      20%

      13.

      9604 00 00

      Hand sieves and hand riddles.

      10%

      20%

      14.

      9615

      Combs, hair-slides and the like, hairpins curling pins, curling grips, hair curlers and the like other than those of heading 8516 and parts thereof.

      10%

      20%

      15.

      9617

      Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners.

      10%

      20%

      16.

      8414 51 10

      Table Fans

      10%

      20%

      17.

      8414 51 20

      Ceiling Fans

      10%

      20%

      18.

      8414 51 30

      Pedestal Fans

      10%

      20%

      19.

      8414 59 20

      Blowers, Portable

      10%

      20%

      20.

      8509 40 10

      Food Grinders

      10%

      20%

      21.

      8509 40 90

      Other grinders and Mixer

      10%

      20%

      22.

      8509 80 00

      Other Appliances

      10%

      20%

      23.

      8510 10 00

      Shavers

      10%

      20%

      24.

      8510 20 00

      Hair Clippers

      10%

      20%

      25.

      8510 30 00

      Hair-removing appliances

      10%

      20%

      26.

      8516 10 00

      Water heaters and immersion heaters

      10%

      20%

      27.

      8516 21 00

      Storage heating radiators

      10%

      20%

      28.

      8516 29 00

      Other electrical space heating apparatus

      10%

      20%

      29.

      8516 31 00

      Hair Dryers

      10%

      20%

      30.

      8516 32 00

      Other hair dressing apparatus

      10%

      20%

      31.

      8516 33 00

      Hand Drying apparatus

      10%

      20%

      32.

      8516 40 00

      Electric smoothing irons

      10%

      20%

      33.

      8516 60 00

      Other ovens, cookers, cooking plates, boiling rings, grillers and roasters

      10%

      20%

      34.

      8516 71 00

      Coffee and Tea Makers

      10%

      20%

      35.

      8516 72 00

      Toasters

      10%

      20%

      36.

      8516 79 10

      Electro-thermic fluid heaters

      10%

      20%

      37.

      8516 79 20

      Electrical or electronic devices for repelling insects

      10%

      20%

      38.

      8516 79 90

      Other electro-thermic appliances used for domestic purposes

      10%

      20%

      39.

      8516 80 00

      Electric heating resistors

      10%

      20%

       

       

      Precious Metals

       

       

      40.

      7118

      Coin

      10%

      20%

       

       

      Machinery

       

       

      41.

      8414 51 40

      Railway Carriage fans

      7.5%

      10%

      42.

      8414 51 90

      Other fans with a self-contained electric motor not exceeding 125W

      7.5%

      20%

      43.

      8414 59 10

      Air Circulator

      7.5%

      10%

      44.

      8414 59 30

      Industrial fans blowers and similar blowers

      7.5%

      10%

      45.

      8414 59 9

      Other industrial fans

      7.5%

      10%

      46.

      8414 30 00, 8414 80 11

      Compressor of Refrigerator and Air conditioner

      10%

      12.5%

      47.

      8419 89 10

      Pressure vessels

      7.5%

      10%

      48.

      8418 10 10

      Commercial type combined refrigerator freezers, fitted separate external doors

      7.5%

      15%

      49.

      8418 30 10

      Commercial freezer of chest type, not exceeding 800 litre capacity

      7.5%

      15%

      50.

      8418 30 90

      Other chest type freezers

      10%

      15%

      51.

      8418 40 10

      Electrical freezers of upright type, not exceeding 800 litre capacity

      7.5%

      15%

      52.

      8418 40 90

      Other freezers of upright type, not exceeding 800 litre capacity

      7.5%

      15%

      53.

      8418 50 00

      Refrigerating or freezing display counters, cabinets, Show-cases and the like

      7.5%

      15%

      54.

      8418 61 00

      Heat pumps other than air conditioning machines

      7.5%

      15%

      55.

      8418 69 10

      Ice making machinery

      7.5%

      15%

      56.

      8418 69 20

      Water cooler

      10%

      15%

      57.

      8418 69 30

      Vending machine, other than automatic

      10%

      15%

      58.

      8418 69 40

      Refrigerating equipment/devices used in leather industry

      7.5%

      15%

      59.

      8418 69 50

      Refrigerated farm tanks, industrial ice cream freezer

      7.5%

      15%

      60.

      8418 69 90

      Others (like freezers of capacity 800 litres and more etc.]

      7.5%

      15%

      61.

      8515 (except 8515 90 00)

      Welding and Plasma cutting machines

      7.5%

      15%

       

       

      Other Electronic goods

       

       

      62.

      8504 40 (except 8404 40 21)

      Static Converters

      15%

      20%

      63.

      8504 40 21

      Dip bridge rectifier

      10%

      20%

      64.

      8517 70 10

      Populated, loaded or stuffed printed circuit boards

      10%

      20%

       

       

      Automobile and automobile parts

       

       

      65.

      8421 39 20, 8421 39 90

      Catalytic Convertor

      10%

      15%

       

       

      Furniture Goods

       

       

      66.

      9401

      Seats and parts of seats (other than aircraft seats and their parts)

      20%

      25%

      67.

      9403

      Other Furniture and parts thereof

      20%

      25%

      68.

      9404

      Mattress supports: Articles of bedding and similar furnishing

      20%

      25%

      69.

      9405

      Lamps and lighting fittings including searchlights and spotlights and pads thereof; Illuminated signs, illuminated name plates and the like, having a permanently fixed light source, and parts thereof (except solar lantern and solar lamps).

      20%

      25%

       

       

      Toys

       

       

      70.

      9503

      Tricycles, scooters, pedal-cars and similar wheeled-toys; dolls' carriages; dolls; other toys; reduced-Size (“scale”) models and similar recreational models, working or not; puzzles of all kinds

      20%

      60%

       

       

      Stationary items

       

       

      71.

      8304 00 00

      Filing, cabinets. card-index cabinets, paper-trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment of base metal, Other than office furniture of heading 9403

      10%

      20%

      72.

      8305

      Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal

      10%

      20%

      73.

      8310

      Sign-plates, name-plates, address-plates and similar plates, numbers, letters and other symbols, of base metal, excluding those of heading 9405

      10%

      20%

       

       

      Miscellaneous

       

       

      74.

      6702

      Artificial Flowers

      10%

      20%

      75.

      7018 10 20

      Glass Beads

      10%

      20%

      76.

      8306

      Bells, gongs, statuettes, trophies and like, non-electric of base metal; statuettes and other ornaments of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal.

      10%

      20%

      B.

      New entries added to the First Schedule [to be effective from 02.02.2020] * [Clause 115(b) of the Finance Bill, 2020]

      S. No

      Tariff Item

      Description

      Tariff Rate

      Effective rate

      1.

      8414 51 50

      Wall fans

      20%

      20%

      2.

      8529 90 30

      Open cell for television set

      15%

      0%

      3.

      8541 40 11

      Solar cells, not assembled

      20%

      0%

      4.

      8541 40 12

      Solar cells, assembled in modules or made up in panels

      20%

      0%

      *Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

       


      Full Text:

      Budget 2020-21 + FINANCE BILL, 2020

      Topics

      ActsIncome Tax