Qualified as a Chartered Accountant in the year 2003 and is a Fellow member of the Institute of Chartered Accountants of India. He has rich experience of more than 18 years in the field of Income Tax, Service Tax, VAT, GST, Corporate Laws and FEMA. He is a commerce graduate from Delhi University. He is Senior Partner of SNR & Company and heading the Taxation & regulatory practice of the firm. It includes business divisions of GST, Income Tax, Corporate Laws & FEMA. He has advised a number of international and domestic companies on a range of tax and regulatory issues. He specializes in the representation of Scrutiny cases at the assessment as well as the first Appellate Level in income tax matters. He has assisted a large number of corporates from diverse business sectors, ranging from Manufacturing, Travel & Tours, Hotels & Restaurants, IT Services etc. in analyzing the GST impact on their business and GST implementation. He has been representing clients before GST authorities for GST departmental audits, Investigation matters, assessment/ adjudication matters. He is also providing transaction specific advisory services on various issues considering the GST law and jurisprudence on the subject in the form of written opinions. He regularly conducts trainings for Finance Teams of corporate groups on changes in tax laws. He is a regular contributor of articles on various online platforms. Youtube Channel CA Dinesh Singhal
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Showing 1 to 18 of 18 Results
Input Tax Credit denial affirmed where supplier failed to remit tax, requiring all ITC eligibility conditions to be met.
Denial of Input Tax Credit arises where the supplier collects GST but fails to remit it to the Government; ITC availability requires concurrent satisfaction of tax invoice, receipt of goods or services, and payment of the tax charged to the Government. Documentary proof of payment to the supplier does not substitute for supplier's deposit of tax. If tax is later recovered from the supplier, the purchaser can seek refund, but immediate ITC cannot be sustained when supplier has not deposited the tax. (AI Summary)
Goods and Services Tax - GST
Input Tax Credit protection: purchaser meeting statutory conditions and proof of payment shields them until supplier is pursued first.
The Calcutta High Court held that revenue must pursue recovery from the supplier before seeking reversal of Input Tax Credit from the purchaser, except in narrow exceptional circumstances (e.g., collusion, missing supplier, business closure, or no assets). GSTR 2A is facilitative and does not by itself defeat entitlement where the purchaser produces tax invoices, proof of receipt and bank evidence of payment; once the purchaser substantiates these, the onus is on revenue to verify and recover tax from the supplier. (AI Summary)
Goods and Services Tax - GST
GST credit utilisation rules clarified: interest applies only where aggregate electronic credit ledger falls short, impacting reversals.
CBIC clarifications dated 17 July 2023 address IGST wrong-availment interest - payable only where aggregate ECL balances of IGST, CGST and SGST/UTGST are insufficient, excluding Compensation Cess - extend GSTR-3B/GSTR-2A reconciliation procedures to 1 April 2019-31 December 2021 while preserving interim caps on additional ITC, allocate TCS liability among multiple e-commerce operators based on who releases payment, confirm non-taxability and no ITC reversal for warranty replacements free during warranty, treat holding of subsidiary shares as non-supply, update refund undertakings and GSTR-2B reliance, require e-invoices for supplies to TDS-registered entities where applicable, and permit ISD or cross-charge for internal service allocation with valuation guidance under Rule 28. (AI Summary)
Goods and Services Tax - GST
Incentive classification as consideration for marketing services, with place of supply at supplier's location, not export of services.
The manufacturer-paid incentive to a reseller under a target-based program is treated as consideration for marketing and technical support services rather than a trade discount, because the reseller is contractually obligated to perform promotional and support tasks and there is no agreement with the distributor. The marketing services were held to have their place of supply at the supplier's location on the basis that goods were made physically available through the manufacturer's distributor network, and therefore the services were not treated as exports; a contrary factual view about ownership and physical availability may change the place-of-supply characterisation. (AI Summary)
Goods and Services Tax - GST
Withholding tax on royalties and technical services increased, raising compliance burdens to claim treaty relief.
Domestic withholding tax on payments treated as royalty and fees for technical services to non-resident foreign companies has been increased, producing greater withholding exposure where treaty rates do not reduce the charge. To claim a lower treaty rate, non-residents must provide enhanced documentation and procedural compliance, including a Tax Residency Certificate, Form 10F, a Permanent Account Number, an Indian income-tax return, a digital signature for filings, and a declaration of No Permanent Establishment in India. (AI Summary)
Income Tax
Input Tax Credit availability on mandatory CSR expenditure affirmed as incurred in furtherance of business.
The AAR held that taxes paid on purchases made to satisfy statutory CSR obligations are eligible for Input Tax Credit because mandatory CSR spending imposed by statute is an expenditure incurred in furtherance of business and distinct from voluntary gifts. (AI Summary)
Goods and Services Tax - GST
Input Tax Credit under margin scheme allowed on business expenses and capital goods subject to general ITC conditions.
Rule 32(5) bars availment of Input Tax Credit only on the purchase of second hand goods under the margin scheme; it does not restrict ITC on input services or capital goods. Therefore, ITC may be claimed on business expenses such as rent, advertisement, commission and professional fees, and on capital goods, subject to the general ITC eligibility and procedural conditions under the GST rules. (AI Summary)
Goods and Services Tax - GST
Electronic Credit Ledger usage affirmed for pre-deposit in appeals following CBIC circular and judicial interpretation reducing liquidity constraints.
Whether the Electronic Credit Ledger may be debited to meet the statutory pre-deposit for filing an appeal is contested. Statutory provisions and rules permit utilisation of credit for payment of output tax; a Board circular clarifies ECL can be used for payments towards output tax arising self-assessed or from proceedings. High Court authorities have taken differing views, with one High Court interpreting the circular and scheme to permit ECL utilisation for pre-deposit, while others have disallowed it. Credit cannot be used for interest, fees, penalties, or reverse-charge tax. (AI Summary)
Goods and Services Tax - GST
Input tax credit on demo vehicles faces split rulings; treat resale carefully and consider margin taxation instead.
The principal legal issue is whether input tax credit on motor vehicles acquired as demo units is permissible under the GST exclusion for certain passenger vehicles, and whether subsequent sale of those demo vehicles satisfies the statutory further supply exception. Advance rulings are split: some permit ITC treating resale as further supply, others deny ITC on a literal view that demo use converts vehicles into second-hand goods outside the exception. In view of uncertainty and absence of clarification, a cautious approach is to avoid claiming ITC on purchase and instead apply a margin-based tax at resale. (AI Summary)
Goods and Services Tax - GST
TDS on virtual digital asset transfers: payer must deduct tax when transfer exceeds annual threshold, subject to specified rules.
The Finance Act, 2022 introduced TDS under section 194S effective 1 July 2022, requiring the payer of consideration for transfer of virtual digital assets to deduct tax at source from payments to resident transferors when aggregate consideration in a financial year exceeds the prescribed thresholds for specified persons and others. Deduction is at the time of credit or payment, whichever is earlier. CBDT Circular No.13/2022 clarifies payer responsibility across peer-to-peer transactions, exchanges, brokers and in-kind transfers, excludes GST and commission from consideration, and requires pre-effective-period transfers in the same financial year to be counted for threshold calculation. (AI Summary)
Income Tax
Export of services: refund of input tax credit available where incidence of tax is not shown passed to recipient.
When services qualify as exports under Place of Supply rules, GST does not apply and accumulated Input Tax Credit may be refundable. The core issue is whether contractual allocation of tax-inclusive production costs or post hoc deductions show that the incidence of tax was passed to the foreign recipient. Absent persuasive proof that the economic burden was shifted, the mere agreement or accounting entries do not establish passage of incidence and therefore do not automatically preclude an ITC refund on exported services. (AI Summary)
Goods and Services Tax - GST
TDS on benefits and perquisites: payers must deduct tax before providing non-cash or mixed benefits to residents.
Section 194R requires the person providing any benefit or perquisite arising from a resident's business or profession to deduct tax at source at ten percent of the benefit's value before providing it; valuation is generally at fair market value (excluding GST) with specified purchase-price and invoiced-price exceptions, a twenty-thousand-rupee annual de minimis threshold per resident, and turnover-based exemptions for small individual/HUF providers. Where cash is insufficient to meet withholding, the recipient may pay advance tax and furnish challan proof or the provider may pay (which itself becomes a taxable benefit requiring gross-up). (AI Summary)
Income Tax
Interest on wrongly availed input tax credit applies only when the credit is actually utilised, not merely transitioned.
Applicability of interest and penalty on transitional input tax credit depends on actual utilisation: mere wrongful availment or transition of inadmissible credit that is not utilised and is reversed does not generally attract interest, though a token penalty may be imposed for non bona fide attempts; interest and punitive consequences arise where credit has been wrongly availed and utilised. A legislative amendment clarifies that interest applies when ITC is wrongly availed and utilised. (AI Summary)
Goods and Services Tax - GST
Margin-based taxation on used motor vehicles applies, charging GST on the sale margin where input credit was not claimed.
Where input tax credit was not availed, taxable value for sale of a used motor vehicle is the difference between the sale consideration and the written down value of the asset as per income tax depreciation on the date of supply; GST is leviable on that margin. The margin scheme does not apply if input tax credit was claimed, in which case GST is chargeable on the transaction value or value determined under valuation rules, and a negative margin yields no GST liability. (AI Summary)
Goods and Services Tax - GST
TDS on business benefits required from the provider, raising valuation and procedural compliance challenges for in kind perks.
Section 194R requires the provider of a business or professional benefit or perquisite to deduct tax at source before delivering that benefit when aggregate annual receipts exceed a specified exemption; the rule ties liability to taxable business income under section 28(iv), designates the provider (and, for companies, the principal officer) as the deductor, and prescribes deposit, return filing and certification obligations while leaving valuation, definition of "benefit" and implementation mechanics unclear. (AI Summary)
Income Tax
Composite supply: piped cooking gas treated as service due to bundling with facility and property management services.
AAR found piped cooking gas supplied by the applicant to apartment owners is naturally bundled with facility and property management services because all owners pay a fixed piped gas bank connection charge and share pipeline maintenance costs; consequently the supply is a composite supply whose principal supply is facility and management services, and the gas component is classified as a supply of services under the composite-supply rule. (AI Summary)
Goods and Services Tax - GST
Value of supply includes employer EPF and ESI contributions, so GST applies to the full billed amount.
The AAR ruled that the value of supply for manpower services includes employer EPF and ESI contributions and related wage components, so GST is payable on the total billed amount. Only items falling within the statutory exclusions qualify for deduction; employer contributions paid by the supplier for its own employees do not qualify as reimbursements or pure agent pass-throughs in the absence of factual and documentary support. The ruling aligns with prior authority treating billed wages and service components as part of transaction value. (AI Summary)
Goods and Services Tax - GST
Promotional goods as separate supplies, allowing input tax credit where sold at nominal price under eligibility schemes.
Promotional items sold at nominal price after retailers meet eligibility under a hosiery sales scheme are separate taxable supplies, not composite or mixed supplies; each item attracts the rate applicable to it and input tax credit on promotional goods need not be reversed under Section 17(5)(h). The AAR relied on separate invoicing, retailer choice to accept the offer, and the presence of nominal consideration, but warned valuation may be contested in different factual scenarios. (AI Summary)
Goods and Services Tax - GST
TaxTMI 
TaxTMI 
05 Sep 2023 
5 Replies 
