Page 14 - Tax

Govt's tax devolution to states for June 'third-rate PR', says Congress

The Congress slammed the Centre on Monday after it authorised the release of tax devolution to states for June and said this is "third-rate PR" trying to pass off what is legitimately due to states as some "prasad" being distributed. The Centre on Monday authorised the release of tax devolution of Rs 1,39,750 crore to states for June. It was decided that apart from the regular release of the devolution amount for the month of June 2024, one additional instalment will be released, the finance ministry said in a statement. Congress general secretary Jairam Ramesh said, "The finance ministry has just announced what is being billed as a major tax devolution to states. Undoubtedly this has been done at the behest of the 'one-third' PM." "Tax devolutions to states are no special favours being done by men of non-biological origin. They are Constitutional entitlements determined by the finance commission," Ramesh said in a post on X. "This is third-rate PR trying to pass off what is ...

CBIC clarifies on display assembly of phones for levy of 10% import duty

The CBIC on Friday listed out parts or components, such as touch panel, cover glass, LED backlight, which constitute the display assembly of a mobile phone and will attract 10 per cent import duty. It also said components, including frame, SIM tray, side keys like power/volume button, when fitted/attached to the display assembly, that integrated display assembly can be imported at the concessional 10 per cent customs duty. In a circular, the Central Board of Indirect Taxes and Customs (CBIC) said currently a concessional basic custom duty (BCD) rate of 10 per cent is imposed on display assembly for use in manufacture of a cellular mobile phone and a nil BCD rate on inputs or parts for use in manufacture of a display assembly for use in manufacture of a cellular mobile phone. It said certain cases of misdeclaration by importers were intercepted by the Directorate of Revenue Intelligence (DRI) and other field formations and demand notices were issued in certain cases as well. With th

India should impose tax on ultra-wealthy to tackle wealth inequality: Study

India needs to impose a 2 per cent tax on net wealth exceeding Rs 10 crore and a 33 per cent inheritance tax to deal with the problem of rising inequality in the country, a new research paper co-authored by economist Thomas Piketty has suggested. The paper titled 'Proposals For a Wealth Tax Package to Tackle Extreme Inequalities in India' propose a comprehensive tax package on the ultra-wealthy to tackle the massive concentration at the very top of the wealth distribution and create valuable fiscal space for crucial social sector investments. "Raise phenomenally large tax revenues while leaving 99.96 per cent of the adults unaffected by the tax. "In a baseline scenario, a 2 per cent annual tax on net wealth exceeding Rs 10 crore and a 33 per cent inheritance tax on estates exceeding Rs 10 crore in valuation would generate a massive 2.73 per cent of Gross Domestic Product (GDP) in revenues," the paper suggested. The paper said that the taxation proposal needs to be accompanied by ..

Govt cuts windfall tax on petroleum crude to Rs 5,700 per MT from May 16

The government on May 1 cut the windfall tax on petroleum crude to Rs 8,400 a metric ton from Rs 9,600

Ensure donations claimed in tax returns match Form 10BE figures

Retain Form 10BE and related documents for at least four years to validate Section 80G claims

Aurobindo Pharma gets tax demand of over Rs 13 cr from Hyderabad officials

Aurobindo Pharma Ltd on Friday said it has received tax demand of over Rs 13 crore, including interest and penalty, from the GST authority over ineligible input tax credit claim. The Deputy Commissioner (ST) STU-1 of GST, Punjagutta Division, Hyderabad, Commercial Taxes Department, Telangana, has passed an order under relevant provisions of the Central Goods and Services Tax Act, 2017 and TGST Act 2017 for the FY 2018-19 to this effect. The order demanded reversal of ITC and payment of GST amounting to Rs 6,54,50,645 along with interest of Rs 5,92,20,900 and penalty of Rs 65,51,354, Aurobindo Pharma said in a regulatory filing. It claims ineligible ITC and orders reversal of ITC and demanding GST along with interest, the company added. The company intends to file an appeal before appellate authority, Aurobindo Pharma said, adding there is no material impact on its financials or operations due to the order.

YES Bank receives service tax demand order of over Rs 6.42 crore penalty

Yes Bank on Thursday said it has received a service tax demand order, which levied a penalty of over Rs 6.42 crore. "The Bank has received an order from the Office of the Commissioner of GST & Central Excise, Maharashtra on May 02, 2024, confirming tax liability on a service tax issue along with interest and levy of a penalty of Rs 6,41,84,437," the lender said in a regulatory filing. It said the tax and interest demand is below the material threshold limit currently applicable to the bank. "The bank does not expect any material impact on financial, operation or other activities of the bank due to the said order," Yes Bank said. The bank will pursue an appeal against the order, it added.

Decoded: The history and political relevance of inheritance tax in India

The BJP is attempting to corner the Congress on wealth redistribution after Sam Pitroda's statement, yet veteran party leader Arun Jaitley had also hinted at supporting an inheritance tax in 2017

Yoga camps for fee: SC upholds CESTAT order for tax on Patanjali Trust

In a setback to the Patanjali Yogpeeth Trust, the Supreme Court on Friday upheld an appellate tribunal's ruling that the organisation is liable to pay service tax for charging an entry fee for organising Yoga camps, both residential and non-residential. A bench of Justices Abhay S Oka and Ujjal Bhuyan refused to interfere with the October 5, 2023 decision of the Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The bench, while dismissing the Trust's appeal said, "The tribunal has rightly held that Yoga in camps for a fee is a service. We do not find any reason to interfere with the impugned order. The appeal is dismissed." In its order, the CESTAT had held that Yoga camps organised by Patanjali Yogpeeth Trust, which charges fees for participation, come under the category of "health and fitness service" and attract service tax. It had noted that the Trust, working under Yoga guru Ramdev and his aide Acharya Balkrishna, was engaged in providing Yoga

Govt raises windfall tax on petroleum crude to Rs 9,600 per MT from Apr 16

The tax, which is revised every fortnight, will remain unchanged at zero for diesel and aviation turbine fuel

BMC warns of strict action if property tax dues not paid by May 25

The Brihanmumbai Municipal Corporation (BMC) on Friday warned of taking stringent action against those who do not pay their property tax by May 25, the deadline set for the financial year 2023-24. In a release, the civic body appealed to the citizens to pay their property tax within the deadline, but did not specify what action it plans to initiate against those who fail to do so. The BMC's tax assessment and collection department has launched an awareness programme through media, social media platforms and other modes. Its ward officer and citizens' facilitation centres are being kept open on holidays for the convenience of the property owners, it said. During the last fiscal, the civic body collected Rs 3,195 crore property tax of FY 23-24. Last week, the BMC decided to collect from May 1 double property tax from the shops and establishments for not displaying signboards in Marathi language or Devnagari script.

USISPF appoints ex-revenue secy Bajaj as chair of US-India Tax Forum

The US-India Strategic and Partnership Forum (USISPF) has appointed former Revenue Secretary and ex-Secretary of Economic Affairs Tarun Bajaj as the head of the US-India Tax Forum. Bajaj, 61, joined the USISPF as an advisor to the Board of Directors in January and will now spearhead the US-India Tax Forum, an official announcement said on Tuesday. With his extensive experience and profound expertise in finance and taxation, Tarun stands as an ideal candidate to steer our efforts forward. His adept leadership in shaping fiscal and tax policies and navigating intricate economic terrains will fortify our mission of nurturing strong economic bonds between the United States and India, said Mukesh Aghi, president and CEO of USISPF. A 1988-batch Haryana Cadre IAS officer, Bajaj served as Revenue Secretary. During his tenure with the Indian government, he played a pivotal role in shaping fiscal policies and promoting economic growth. Bajaj managed both the direct and indirect tax revenues

United Breweries gets tax demand of over Rs 263.70 cr from Maha GST dept

United Breweries Ltd on Friday said it has received a tax demand of over Rs 263.70 crore, including interest and penalty from the Maharashtra State Goods & Service Tax Department. In a regulatory filing, the company said the Deputy Commissioner of State Tax, Raigad Division, Maharashtra State Goods & Service Tax Department passed an order levying an additional tax of Rs 1,19,82,34,560, interest of Rs 1,15,03,04,218 and penalty of Rs 28,86,97,379 -- totalling to Rs 2,63,72,36,156 for FY 2019-20. "The demand order has been raised on account of levy of 60 per cent CST on debit notes raised by UBL on Telangana State Beverage Corporation (TSBCL), Karnataka State Beverage Corporation (KSBCL), Andhra Pradesh State Beverage Corporation (APBCL) for reimbursement of state excise duties paid on behalf of State Beverage Corporations for the period April 2019 to March 2020," United Breweries Ltd (UBL) said. Demand is also raised on account of non-submission of declaration forms for ...

From United Spirits to Zomato, multiple companies get tax demand notices

ICICI Securities on Tuesday said it has received a tax demand of about Rs 66.70 lakh from the Gujarat state GST department. In a regulatory filing, the brokerage firm said the demand includes demand of GST worth Rs 31.78 lakh, interest of Rs 31.72 lakh and penalty of Rs 3.20 lakh. The Gujarat GST authority has demanded about Rs 66.70 lakh GST, along with interest and penalty, for alleged excess claim of GST credit. The company will defend the matter before the appellate authorities and file an appeal against the order before the Commissioner (Appeals). Shares of ICICI Securities closed at Rs 719.85 apiece, down 0.54 per cent over the previous close on BSE.

Infosys receives Rs 341 crore tax demand for assessment year 2020-21

Infosys has received a tax demand of Rs 341 crore for assessment year 2020-21 from the Income Tax Department, the IT services company said on Monday adding it is evaluating filing an appeal against the said order. The Bengaluru-headquartered company said it is in the process of evaluating the impact of the order on its financial statements for the quarter and year ending March 31, 2024. Infosys also said it is evaluating filing an appeal against this order. "Infosys Ltd on March 31, 2024, received order...from the Income Tax Department, Government of India for assessment year 20-21 with a tax demand of Rs 341 crore (including interest). The company is in the process of evaluating the implications of this order on the financial statements for the quarter and year ending March 31, 2024, and also evaluating filing an appeal against this order," Infosys said in a BSE filing. Further, a subsidiary of the company has received refund order from the Income Tax Department for assessment year

Airtel arm Telesonic Networks penalised for irregularity in claiming ITC

Bharti Airtel Group firm Telesonic Networks has been penalised for alleged irregularity in claiming input tax credit, according to a regulatory filing. Bharti Airtel informed stock exchanges that the office of the Assistant Commissioner of Commercial Taxes (Audit) in Bengaluru has passed an order under the Central Goods and Services Tax Act against a subsidiary of the company, levying a penalty of Rs 2,19,873. According to the filing, the penalty has been levied for "alleged irregular input tax credit claimed during the financial year 2018-19" on the company's subsidiary Telesonic Networks. The company received the order on March 30. "The maximum financial impact is to the extent of the penalty levied. The company does not agree with the order and will take appropriate action(s) for the same," the filing noted.

Zomato gets GST demand order of Rs 23.26 cr from Karnataka tax authorities

Zomato on Sunday said it has received a tax demand, interest, along with penalty, to the tune of Rs 23.26 crore from the Assistant Commissioner of Commercial Taxes (Audit), Karnataka. The online food delivery platform said it will appeal against the order before the appropriate authority. In a regulatory filing to the BSE, the company said it has "received an order for FY 2018-19 pursuant to the audit of GST returns and accounts by the Assistant Commissioner of Commercial Taxes (Audit), Karnataka, raising demand of GST of Rs 11,27,23,564, along with applicable interest and penalty totaling to Rs 23,26,64,271. "We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority," Zomato said in the filing.

Opted for old tax regime? Explore last-minute income tax saving options

Last-minute income tax saving options: ELSS funds, PPF, NPS, and fixed deposits are some of the popular options under section 80C. Don't forget health insurance

I-T dept expands scope for officers filing appeals, includes TDS disputes

The CBDT has permitted income tax authorities to file appeals irrespective of monetary threshold in cases relating to TDS/TCS, undisclosed foreign income, or information received from investigating agencies like ED and GST Intelligence. Currently, tax authorities can file appeals before the ITAT, High Court and Supreme Court, if the disputed tax demand exceeds Rs 50 lakh, Rs 1 crore and Rs 2 crore respectively -- a threshold fixed in 2019. The Central Board of Direct Taxes (CBDT) in a circular dated March 15 said that the said monetary limits will not be applicable for filing appeals in cases where prosecution has been filed by the department in the relevant case, and trial is pending and conviction order has been passed and the same has not been compounded. Cases where the assessment is based on information with regard to an offence alleged to have been committed under any other law and information received from law enforcement or intelligence agencies like CBI, ED, DRI, SFIO, NIA,

Govt hikes windfall tax on petroleum crude to Rs 4,900 per tonne

The new rates will be affective from Saturday, according to a government notification released on Friday