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The Demons Within ‘Angel Tax’: Revenue May Question Projections Used For DCF Valuation.

Section 56(2)(viib) of the Income-tax Act, 1961 is an anti-abuse provision which seeks to tax excessive premium received from Indian residents by closely held companies (i.e., monies received in excess of the Fair market value (“FMV”) of the shares) on issue of shares – popularly known as the ‘Angel Tax’ For determination of FMV, the […]

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HC set-aside CBDT’s Central Action Plan encouraging CIT(A) to pass revenue favoring order.

The Writ Petition was filed by the Association of Tax Consultants and its office bearers. They had challenged a portion of “Central Action Plan” prepared by Central Board of Direct Tax (CBDT) for the financial year 2018-2019. This plan contains various provisions made by CBDT setting out targets of tax collection.The Petitioners grievance was with […]

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Payment gateway charges paid by Make My Trip to banks couldn’t be treated as commission to attract TDS u/s 194H.

Assessee was engaged in selling its travel products to the customers through the website The payment gateway was provided by four banks viz., HDFC, ICICI, Citibank and American Express to the assessee.The net price after deduction of facility charges by the payment gateway was automatically credited to the bank account of the merchant. The […]

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Interest will be levied on both cash & ITC component if there is a delay in filing of GST return

High Court of Telangana, Megha Engineering & Infrastructures Ltd. v.Commissioner of Central Tax- [2019] 104 gst393 (TELANGANA) The petitioner had delayed filing GSTR-3B from October, 2017 to May, 2018. According to the petitioner, it could not make payment and file the return within time due to certain constraints. However, the entire liability was discharged in […]

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HC directed GST authorities to take a decision within 1 month w.r.t. refund applications & pass speaking order

Ajay Kumar Mittal, J. – In this writ petition filed under Articles 226/227 of the Constitution of India, the petitioner has prayed for issuance of a writ of mandamus directing the respondents to refund the excess Input Tax Credit (ITC) of Rs. 3,51,03,950/- for which the online applications RFD-01A dated 3.9.2018 and 12.9.2018 (Annexures P-5 […]

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Advance ruling cannot be obtained if Applicant is not required to supply goods/services for which he seeks ruling

Authority for Advance Rulings, Maharashtra Technip UK Ltd., (AAR – MAHARASHTRA) The Applicant is an unregistered person under GST. It filed an application to seek clarity on the applicability of GST rate on the transaction proposed to be executed by it in relation to tender issued by Oil and Natural Gas Corporation of India Ltd. […]

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