Sunday, 25 March 2018

Notifications Issued dated 23 March 2018- GST Update.


This is to update you on the notifications issued yesterday by the Ministry of Finance:
   

Copy of Bombay HC verdict upholding sales tax on return of kerosene post extraction


Copy of Bombay HC verdict upholding sales tax on return stream of kerosene after extraction of N-Paraffin under Bombay Sales Tax Act, albeit prospectively i.e. from date of order of Maharashtra Sales Tax Tribunal; Bombay HC refused to consider such return stream between Bharat Petroleum Corporation Ltd & Reliance Industries Ltd as “sales return” u/s 2(35), 2(36) of Bombay Sales Tax Act and Rule 4 of Bombay Sales Tax Rules, and instead, concurred with Tribunal that same would amount to 'purchase' transaction : Bombay HC

LUT for FY 2018-19. ( only for exporter).

Dear All:

It is hereby brought to your notice for renewal of LUT issued by your jurisdictional department for making Zero Rated Supply i.e., Export Supply and SEZ supply without payment of tax           

Although the previous LUT issued may be valid upto 30th June’18, it is suggested to get it renewed w.e.f. 1st Apr’18 for the FY 18-19

As on date the procedure to renew your LUT application is to file an online application by uploading the existing LUT. On filing the same, copy of the application along with a proof of filing Feb’18 GST returns needs to be submitted to your jurisdictional officer

Let us know if you find any difficulties in arranging this

Imp Case Laws


Honda Motor Co. Ltd vs. ADIT (Supreme Court)

S. 148: The AO is not entitled to issue a reopening notice only on the basis that the foreign company has a permanent establishment (PE) in India if the transactions in respect of which it is alleged that there has been an escapement of income had already been disclosed by the Indian subsidiary and found by the Transfer Pricing Officer (TPO) to be at arm's length   

Notifications 54 and 55 | FTP 2015-20

This is to update you on the recent notifications issued by the Directorate General of Foreign Trade

     Notification No 54/2015-20 dated 22 March 2018 – FTP

·         Exemption from Integrated Tax and Compensation Cess under Advanced Authorization Scheme under Para 4.14 and under EPCG Scheme under Para 5.01(a) of FTP 2015-20 has been extended up to 01 October 2018

     Notification No 55/2015-20 dated 23 March 2018 – FTP

·         Exemption from Integrated Tax and Compensation Cess under EOU Scheme under Para 6.01(d)(ii) of FTP 2015-20 has been extended up to 01 October 2018.

Recent amendment in FTP after the mid-term review on 05 December 2017 had granted exemption from levy of the above taxes under the above schemes till 31 March, 2018 only. The above notifications have extended the time limit by 6 months