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🎬 Bollywood Story: Raj vs. The Tax Department! 🎬 Imagine Raj Malhotra, a successful businessman running an export company in Mumbai, living the good life like a Bollywood superstar. 💼✨ But one day, the Tax Department sends him a notice that threatens to spoil his party! 🕵️♂️📜 💸 The Tax Problem: The tax authorities accuse Raj of not deducting TDS (Tax Deducted at Source) on some payments he made to a foreign company. Because of this, they want to disallow certain expenses under Section 40(a)(i) of the Income Tax Act. This means Raj might have to pay a lot more in taxes! 😩💰 🏛️ Raj's Courtroom Drama: Raj, being smart (like our favourite Bollywood hero), takes his case to the Bombay High Court. His lawyer confidently argues: “Your Honor, Raj is a resident of India. Section 40(a)(i) only applies when non-residents make payments without deducting TDS. Raj’s company is based in India, so this rule doesn’t apply to him!” ⚖️🎙️ 🤔 The Big Twist: The Bombay High Court listens and agrees! The judge declares: “Raj is correct. Section 40(a)(i) applies only to payments made by non-residents. Since Raj’s company is based in India and making payments from India, this section doesn’t apply. Raj does not have to pay the extra tax!” 🌟🎉 📜 Key Lesson for Everyone: Just like in a Bollywood movie with a happy ending, this case shows us the importance of knowing the tax rules! If you understand them well, you can avoid unnecessary complications. Always document your transactions and consult a tax expert if needed. 📝📚 🔍 Moral of the Story: Whenever you face a tax challenge, remember that knowing the rules can save you from unnecessary headaches! 💪 Case Law Reference: Commissioner of Income Tax vs. V.S. Dempo And Co. Pvt. Ltd. (Bombay High Court, 2016) 🎥 #BollywoodTaxDrama #KnowYourRights #TaxTips #FinanceMadeSimple #RajVsTax

Rakshabandhan and Taxes: Are Your Gifts Taxable? As Rakshabandhan is here, we eagerly anticipate exchanging gifts that symbolize the cherished bond between siblings. But amidst the festivities, there's a question that often goes unasked: Are these gifts subject to tax? Under the Income Tax Act, 1961, gifts can indeed be taxable. However, not always! Gifts received from close relatives, including siblings, are entirely tax-free. So, the thoughtful presents exchanged between brothers and sisters on Rakshabandhan remain exempt from tax. But what about gifts from friends or distant relatives? If the value exceeds ₹50,000 in a year, these could be subject to tax. The relationship between the giver and the recipient, as well as the nature and amount of the gift, plays a crucial role in determining tax liability. This Rakshabandhan, while you celebrate the love and bond with your siblings, take a moment to understand the tax implications of gift-giving. After all, staying informed ensures that the joy of gifting remains pure and stress-free! Do share your gift-giving experiences, Let us know what did you gift your sibling? Wishing everyone a joyous and tax-savvy Rakshabandhan! 🌸 ------------------------------------------------------ #Rakshabandhan #TaxAwareness #GiftTax #Rakhi #Gift #Brother #IncomeTaxIndia #FinancialLiteracy #FestiveSeason #Law #Legal #Tax ------------------------------------------------------ Deep Agarwal Lawyer & Chartered Accountant ARP & Associates, Kolkata

💡Tax insight : Just came across this fascinating tax implication on non resident entertainer. As the wedding news of business tycoon Ananth Ambani is going viral, let's learn some tax from it. Rihanna who is a Barbadian singer recently performed at Ambani's wedding, and the payment made to her was likely to be 70 CR. WHAT IS THE TAX RATE APPLIED ON THE AMOUNT RECEIVED BY RIHANNA IN INDIA?? Any person who is a Non resident entertainer who performs in India and earns any sum of money, is required to pay tax at source (TDS) u/s 194E 115BBA provides a special Tax rate @ 20% (Plus EC and SHEC) plus surcharge as applicable. However, no deduction for any expenditure incurred and allowance is given to such assessee u/s 115BBA. Hope this was a fun Tax insight 🚀 #taxnews #financeupdate #industryinsights #kristujayanticollege #mba

🌟 Exciting News Alert! 🌟 ITAT Mumbai has recently confirmed an important development regarding tax exemption on gifts received from a non-resident brother in India. This ruling provides significant clarification for individuals and families who receive gifts from their non-resident siblings. The recent decision by ITAT Mumbai brings much-needed clarity to the tax implications of receiving gifts from non-resident family members. This ruling is a welcome relief for many who have been unsure about the tax status of such gifts. By confirming the tax exemption on gifts received from a non-resident brother, ITAT Mumbai has provided reassurance to individuals and families, removing uncertainty and adding a level of predictability to the tax treatment of such gifts. This decision is a significant step in establishing clear guidelines for the tax treatment of gifts from non-resident siblings, and it offers invaluable insight into the tax implications for individuals in similar situations. For those impacted by this ruling, the clarification provided by ITAT Mumbai offers a sense of security and stability in understanding the tax treatment of gifts from non-resident siblings. It is a positive development that brings much-needed clarity to an area that has been uncertain for many. #taxexemption #giftsfromnonresidents #ITATMumbai #taxrulings #financialclarity Note: AI-powered post. May contain errors.

Hello Everyone, 💍✨ Tax Implications of Wedding Gifts in India ✨💍 As the wedding season is in full swing, it's essential to understand the tax implications of wedding gifts under Indian tax laws. While gifts received during a wedding are generally not taxable for the bride and groom (as they are considered exempt under Section 56(2)), However, it is advisable to keep records of all the gift received for future reference. #WeddingGifts #TaxImplications #IndianTaxLaws #FinancialAwareness #TaxExemption #WeddingSeason #GiftTax

🚨 High Court quashes assessment order with tax liability, services taxable under RCM, but assessing officer *missed the memo* 🤦♂️ 📝 The assessee, a Pan-India GTA service provider, got a notice but confidently claimed its turnover was taxable under the RCM on service recipients. They backed it up with a list of recipients and docs. 📁 Despite submitting balance sheets, ITR details, and more online & physically, the assessing officer was like 🤷♂️ and issued an assessment order that ignored their submissions. 🔍 The officer found a mysterious "other income" of Rs.20,05,359 in the all-India balance sheet and slapped the turnover with tax, interest, and penalties. 😤 🤔 Madras HC: "Assessment order was *totally* flawed due to the non-application of mind by the assessing officer." 😬 💥 Result: The order was quashed! 🎉 🏛️ Madras HC - Sunrise Freight Movers (P.) Ltd. v. State Tax Officer [W.P. NO. 6927 OF 2024] #taxlaw #justice 🎭

Service Tax Refund Claim's Jurisdiction Tussle - Recipient's Location Prevails Over Provider's.: Jurisdiction issue regarding the refund claim filed by the service receiver, whether the Mumbai Service Tax authority or the Kolkata Service Tax authority has the jurisdiction to deal with the refund application filed u/s 103 of the Finance Act, 1994. There was a difference of opinion between the CESTAT members on this issue. The key points are: Section 103 is a complete code and does not mandate filing the refund claim at any specified jurisdiction. Once the service recipient is eligible, insisting on filing with the service provider's jurisdictional officer is beyond the law's mandate. Section 103(3) only requires filing within six months, without specifying the officer. The appellants filed the claim before their own jurisdictional offic..... http://dlvr.it/TGKCLb #TaxLaw #ServiceTax #Jurisdiction #RefundClaim #CESTAT

Calcutta High Court lifts undue garnishee order and bank account attachment in a landmark GST case, reinforcing fair tax practice standards. #JusticePrevails #GSTCaseLaw #FairTaxPractices The Petitioner appealed against the order which declined any interim relief but directed the respondents to file their affidavit-in-opposition. The appeal was regarding allegations of availing excess input tax credit #ITC, leading to several proceedings and a writ petition filed earlier. The Assistant Commissioner of Revenue, Barasat Charge, concluded that no further proceedings were required against the appellant. Issue: The issue was whether the Petitioner had availed input tax credit in excess of his entitlement and the legality of the subsequent actions like the garnishee order and attachment of the bank account. Ground of Appeal by the Petitioner: Petitioner contended that the entire tax amount was duly realized from his credit ledger, and all ITC availed was considered in a rectification order, against which he had filed a writ application. He argued for the lifting of the garnishee order and the attachment of his bank account. Court Judgment: The High Court of Calcutta allowed the appeal, directing the authority to lift the garnishee order issued to Indian Oil Corporation Limited and the attachment over the appellant’s bank account, citing precedents where similar directions were issued. Title: Bivas De vs State of West Bengal Court: Calcutta High Court Citation: MAT 2400 of 2023 and IA No. CAN 1 of 2023 Dated: 20-Feb-2024 This judgment reinforces the principle of fairness in tax proceedings and provides relief to taxpayers against undue attachments.

𝗥𝗲𝗰𝗲𝗶𝘃𝗲𝗱 𝗻𝗼𝘁𝗶𝗰𝗲 𝗳𝗼𝗿 𝗜𝗻𝗽𝘂𝘁 𝗰𝗹𝗮𝗶𝗺𝗲𝗱 𝘂𝗻𝗱𝗲𝗿 𝘄𝗿𝗼𝗻𝗴 𝗵𝗲𝗮𝗱 𝗼𝗿 𝗚𝗦𝗧 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗽𝗮𝗶𝗱 𝘂𝗻𝗱𝗲𝗿 𝘄𝗿𝗼𝗻𝗴 𝗵𝗲𝗮𝗱? Important Judgement in favor of Assessee which will help you to claim refund. Utilisation/Payment of GST Under Wrong Head - Refund can be claimed after making payment under correct head within specified time limit as per Statue (2 Years) Recently, the Kerala High Court, in M Trans Corporation vs State Tax Officer on 30.03.2024, addressed a case where an assessee faced show cause notices due to claiming excess input tax credit. The heart of the matter was the contention that the claim was a result of mistakenly choosing IGST instead of CGST/SGST. According to the court's interpretation of Section 54 in conjunction with Section 49, for a refund of excess tax paid by a registered dealer, an application must be submitted within two years from the last date of filing returns for the relevant year. In this specific case, the assessee failed to submit any application within the prescribed time frame. The court, respecting its jurisdictional limitations, couldn't alter the statutory timeline for such applications. Consequently, the writ petition was dismissed. However, Madras High Court in Sun Dye Chem on 06-10-2020 in WP 29676 of 2019; In GSTR-1 for 2017-18, CGST and SGST wrongly reflected in IGST by the supplier petitioner, permitted the filing of revised GSTR 3B by reflecting ITC under the correct head manually. In the case of Shree Nanak Ferro Alloys Pvt. Ltd. v. The Union of India 2020 (1) TMI 833 - JHARKHAND HIGH COURT, where IGST was wrongly paid under CGST head. It was held that petitioner shall deposit the amount under correct head, which was paid under wrong head towards the liability of Sept., 2017, without any interest on the said amount. The petitioner shall also be entitled to get the refund of the amount of deposited by them. These judgment underscores the importance of adhering to statutory timelines when seeking refunds under GST laws. It serves as a reminder for businesses to be diligent in their tax-related documentation and applications, avoiding potential complications down the road. Copy of Kerala HC Judgement Attached #GSTupdate #CA #Linkedin

Blog Post on "Family Arrangement":: https://lnkd.in/ds7AdnNR What is a Family Arrangement? What constitutes a Family? Family Members have "antecedent" Title on Family Property, that lead to exemption / avoidance from Taxes on Transfer of "property" such as Stamp Duty, Registration & Income or Capital Gains Taxes! What is the purpose of Family Arrangement? What is the Consideration in case of a Family Arrangement?