GST on Hotel Agent commission portion or whole invoice value

Dear sir, BTC Ltd (Travel co.) purchase Hotel package service from TBO ( Travel boutique online) and TBO provides Hotel booking service and charges commission form BTC Ltd. E.g Hotel rate is Rs 10,000 and commission Rs 1000 (inc GST), Total Invoice Rs 11,000. Now BTC Ltd offer same service to individual customer and charges Rs 11,000(as above) plus 4000(Commission), total 15,000 plus GST (15000*18%) i.e 17,700. Although owner of Hotel would have charged gst on hotel bill and TBO is also not cha... ... ...

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https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119323 - GST

Business Reforms Action Plan 2024 to further strengthen Make in India; bring seamless business regulatory framework across India

- - - Dated:- 30-9-2024 - In a major push to further strengthen the Make in India initiative, the Business Reforms Action Plan (BRAP) 2024 is set to establish a seamless business regulatory framework across the country, enhancing the ease of doing business. Led by the Department for Promotion of Industry and Internal Trade (DPIIT), BRAP 2024 introduces next-generation reforms that address the needs of both businesses and citizens. Building on the successes of previous editions, BRAP 2024 aligns... ... ...

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https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27951

Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Odisha

- - - Dated:- 30-9-2024 - Dear Taxpayers, This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process. 1. Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with ... ... ...

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https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27952

ITC on second havd vehicle purchase

Dear Sirs, A scrap dealer has purchased a second-hand vehicle, rebuilt and hired. It is used to supply food articles, vegetables, milk and other daily consumables. Is he eligible for ITC on the purchase of the second-hand vehicle or blocked u/s 17 ? - Reply By Sadanand Bulbule - The Reply = Dear Murthy Is such motor vehicle purchased as scrap? or a usable motor vehicle? If it is purchased as scrap, then it loses the road worthy qualities of a motor vehicle and cannot be termed as such. However ... ... ...

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https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119321 - GST

Restoration of GST Returns data on Portal

Please refer to the advisory issued on 24th September, 2024 regarding the archival of return data from the Common Portal after seven years. This data was archived in line with data archival policy. Data archival process was implemented on a monthly basis. Consequently, the return data for July, 2017 and August, 2017 was archived on 01st August and on 01st September respectively. However, in view of the requests received from the trade due to the difficulties faced, data has been restored back o... ... ...

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https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27953

DENIAL OF ITC DUE TO SUPPLIERS REGISTRATION HAS BEEN CANCELLED UNDER SECTION 29(2)(e)

DEAR EXPERT, MY QUERY IS UNDER. I am manufacturing firm. I am purchasing raw material from different suppliers. Sometimes we are purchasing from agents. So we dont know the supplier personally. We have received 3 different DRC-01 for the F.Y. 2018-19 stating that suppliers registration cancelled suo moto. hence ITC need to reverse. initially they have issued summon to us and we have supplied documents as they required. but off the record, they told us that when ever any suppliers GST number can... ... ...

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https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119329 - GST

Bidders' plea against GST registration mandate dismissed for lack of merits and defective affidavit.

Writ petition challenging requirement of GST registration for bidders dismissed. Court held role in tender matters restricted unless action palpably unreasonable or mala fide. Petitioners' registered offices in West Bengal, but address in Assam vague. Affidavit defective as deponent's authority for other petitioners not stated. Petitioners' conduct in approaching court questionable. Writ petition lacking merits, hence dismissed.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81789

#TenderLaw #GST #CourtIntervention #ProceduralCompliance #JudicialReview #TenderLaw #GST - Indian Laws

Apex court upholds arbitral award, limits appellate court's interference.

The Appellate Court exceeded its jurisdiction u/s 37 of the Arbitration and Conciliation Act, 1996, by setting aside an arbitral award that had already been confirmed u/s 34. The Supreme Court reiterated that courts should not interfere with arbitral awards lightly, and mere possibility of an alternative interpretation does not warrant reversal. The scope of intervention is confined to grounds specified u/s 34, and the appellate power u/s 37 is limited to examining if the court u/s 34 acted within its limits. The Appellate Court cannot reappraise evidence on merits as an ordinary court of appeal. Since the arbitral award was reasonable, based on evidence, and not against public policy or law, it was rightly upheld u/s 34. The Appellate Cour.....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81790

#ArbitrationLaw #JudicialReview #CommercialDisputes #LegalPrecedent #JudicialDiscipline - Indian Laws

Undervalued property auction allowed due to delayed objection, statutory buyer to pay settlement.

The auction sale notice for the immovable property of the society under liquidation was published with a lower valuation and upset price. Despite being aware of the undervaluation, the appellant did not promptly challenge it, allowing the auction to proceed. The auction purchaser was a statutory body, the Agricultural Produce Market Committee. The court held that the appellant's delayed objection after the auction was unjustified, as it should have approached the court promptly upon noticing the undervaluation. The law discourages indolent litigants and aims to protect accrued third-party rights. Although the purchaser's statutory status does not grant immunity for acquiring property at a throwaway price, the appellant's own interests as a .....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81791

#PropertyAuction #Undervaluation #DelayedObjection #StatutoryBuyer #SettlementPayment - Indian Laws

Farmer's suit for land deal rejected due to dubious agreement, high earnest money & missing signatures.

Suit for specific performance of agreement to sell agricultural land - plaintiff paid substantial earnest money but agreement seemingly executed on blank stamp paper without plaintiff's signatures on first two pages - agreement terms irrational as earnest money disproportionately high compared to balance sale consideration - plaintiff's conduct questionable in parting with huge sum without security - courts below erred in decreeing suit based on fraudulent agreement - appeal allowed, judgments set aside.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81792

#LandDispute #FraudulentContract #AgriculturalLaw #SpecificPerformance #CourtAppeal - Indian Laws

Specialized gas mixture wrongly classified as compressed air, attracting higher duty.

Goods classified as 'Zero Air' cleared by appellant from December 2002 to June 2007 were classifiable under Chapter Heading 2804 attracting 16% duty, not under Chapter Heading 2851 as compressed air attracting NIL duty. Evidence showed 'Zero Air' contained 78% Nitrogen, 20.8% Oxygen, 1.2% Argon, different from compressed air composition. It was used in Gas Chromatograph testing where compressed air cannot substitute. Classifying it as compressed air involved suppression of facts, justifying extended period invocation. From July 2007, appellant discharged duty classifying it under Chapter Heading 2804. Appeal against confirmed order rejected, upholding classification under Chapter Heading 2804 attracting 16% duty.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81793

#TaxClassification #ChemicalProducts #GasChromatography #CustomsDuty #RevenueLaw - Central Excise

Corrugated sheets sans boxes: Duty-free under exemption notification.

Corrugated board cleared independently without corrugated boxes is classified under Tariff Item 48191090, making it eligible for exemption under Notification No.04/2006-CE, Entry No.96E. Even if classified under 48191090, the goods are covered under the exemption notification. Alternatively, if the corrugated sheet is cleared without boxes, it is appropriately classifiable under 48081000, with the same rate of duty and exemption applicability as 48191010 during the relevant period. The adjudicating authority correctly classified the goods under 48081000 and dropped the demand raised in the show cause notice. The CESTAT upheld the impugned order, dismissing the Revenue's appeal.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81794

#TaxLaw #CustomsDuty #TradeCompliance #GST #LegalInterpretation - Central Excise

Taxman's Demands Face Scrutiny: Composition Scheme Misuse, Short Payments & Improper Credits.

The summary focuses on the irregular availment of the Composition scheme and various demands raised by the adjudicating authority, along with the CESTAT's findings. It covers short payment of tax due to discharge at an incorrect rate, improper application of accrual/realization basis, discrepancies in GL codes and returns, non-maintenance of separate records for dutiable and exempt services, and irregular reversal of Cenvat credit for bad debts written off. The CESTAT examined each issue, relying on relevant legal provisions and judicial precedents. It set aside several demands, upheld a minor demand, and held that extended period invocation and penalties were not warranted due to lack of suppression of facts with intent to evade tax. The appellant's compliance with record-keeping requirements and regular filing of returns were also considered.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81795

#CESTAT #TaxCompliance #CenvaTCredit #AccrualBasis #RecordKeeping - Service Tax

Alleged illegal mining, e-rawanna fraud but no evidence against petitioner's involvement in money laundering or proceeds of crime.

Proceeds of crime and legality of petitioner's arrest under PMLA for alleged illegal mining were examined. Grounds of arrest and reasons to believe were based solely on purported illegal mining by fabricating e-rawana bills. In first eight FIRs, petitioner was not an accused. In ninth FIR too, petitioner was not named, but ED tried implicating him as Director of DSPL, which records showed he ceased being from 07.11.2013. ED failed to substantiate petitioner's involvement as Director, Promoter or shareholder of the alleged GM Co. No material showed petitioner directly or indirectly indulged in any process connected with proceeds of crime or projected untainted proceeds. No grounds for arrest under PMLA were made out against petitioner for mo.....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81796

#LegalDispute #MiningControversy #ProceedsOfCrime #MoneyLaundering #ArrestDebated - Money Laundering

Secured creditor's claim over remaining asset portion rejected after failing to realize security interest within time limit.

Interpretation of Regulation 21A of IBBI (Liquidation Process) Regulations, 2016 regarding secured creditor's obligation to realize security interest within stipulated time. Regulation casts duty on secured creditor to pay liquidator estimated amount or excess realized value within prescribed timeline, failing which asset becomes part of liquidation estate. Secured creditor's contention of non-communication of estimated amount by liquidator rejected as misplaced. Law mandates secured creditor to complete realization process within 180 days, after which asset vests with liquidation estate under Regulation 21A(3). Secured creditor's belated claim over remaining property portion rejected for non-compliance with 30-day intimation requirement. Liquidator's decision upheld as per regulations. Application dismissed by Tribunal.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81797

#LiquidationRegulations #SecuredCreditor #AssetRealization #TimelineMandatory #TribunalOrder - IBC

Debt proven through part payments acknowledgment and future installment promise; 10A bar not applicable.

Existence of financial debt established through acknowledgment of part payments and promise to pay next installment. Section 10A bar not applicable as default occurred on 05.07.2021. Record of default sufficiently proved through loan documents and Corporate Debtor's admission, satisfying Section 7(3)(a) requirements. Stamping issue inconsequential given established debt and default above threshold. Authorized signatory confirmed through Board Resolution. Debt and default proven, exceeding Rs. 1 crore threshold. Petition admitted, Insolvency Resolution Professional appointed with directions to Financial Creditor regarding remuneration and expenses.

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81798

#LoanDocuments #DefaultAdmission #StampingIssueIgnored #AuthorizedSignatory #InsolvencyInitiated - IBC

Financial Creditor's Application to Initiate Insolvency Proceedings Against Corporate Debtor Upheld by NCLAT.

The NCLAT upheld the admission of the Section 7 application filed by the Financial Creditor (Respondent No.1) for initiating CIRP against the Corporate Debtor. It held that the Financial Creditor had a financial debt which had become due and payable, and there was an incidence of default. The application was filed within the time limitation as the Corporate Debtor had acknowledged the outstanding debt. The Corporate Debtor was given an opportunity to regularize its loan account but failed to pay the required amount. The declaration of the account as NPA under SARFAESI Act did not obstruct the Financial Creditor from initiating CIRP. The loan disbursement by the Financial Creditor was interest-bearing, satisfying the definition of financial .....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81799

#IBC #CIRP #FinancialDebt #DefaultAcknowledgement #NPADeclaration #IBC #CIRP #FinancialDebt - IBC

Company petition dismissed due to lack of consent from members & time-barred allegations.

Mintainability of a company petition u/s 399 of the Companies Act, 1956, focusing on the pre-conditions envisaged under sub-sections (1) and (3). It examines whether the amendments made to the Articles of Association and declarations filed before the Registrar of Companies were prejudicial to the interests of the public, the company, and the petitioner, amounting to oppression and mismanagement. The Tribunal held that the petitioners failed to satisfy the condition precedent under sub-section (3) of Section 399 by not obtaining written consent from the rest of the members before filing the petition. Additionally, the allegations of illegal transfer of shares were barred by limitation, as the annual returns were available on the MCA website,.....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81800

#CorporateDispute #ShareholderRights #BusinessLaw #LimitationPeriod #CompaniesAct - Companies Law

Petition dismissed for lack of evidence to probe companies for alleged fraud.

The petition filed u/s 213(b) of the Companies Act, 2013 alleged that the business of the respondent companies was being conducted with intent to defraud creditors, members, or others, or for fraudulent or unlawful purposes, or oppressively. However, the averments were not supported by material documents to substantiate such allegations. The documents filed failed to corroborate the allegations of fraudulent or unlawful conduct by the respondent company. The petitioner failed to make a prima facie case u/s 213(b). Consequently, the tribunal dismissed the petition in limine for lack of sufficient evidence to warrant appointing an inspector to investigate the respondent companies' affairs.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81801

#CorporateLaw #CompaniesAct #FraudulentConduct #OppressiveManagement #BusinessDisputes - Companies Law

Minority shareholders' oppression claims against company dismissed due to lack of evidence.

The petition alleges oppression and mismanagement by the company's majority shareholders against the petitioners, who were removed as directors through an Extraordinary General Meeting (EGM). The key points are: The burden is on the petitioners to prove oppressive conduct u/s 242. The EGM notice for removal complied with legal requirements, and the meeting was validly held. The majority shareholders' decision to remove directors cannot be judicially scrutinized as it is part of corporate democracy. Mere inconvenience caused by the legal process doesn't negate its validity. Oppression requires continuous wrongful acts by the majority against the minority, not just lack of confidence. The petitioners failed to prove mismanagement or likelihoo.....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81802

#CorporateGovernance #ShareholderRights #BoardRemoval #MinorityProtection #CompanyLaw - Companies Law

Land Sale Dispute Dismissed: Company's Urgent Need for Funds Justified Lower Price.

The crux of the matter revolves around allegations of oppression, mismanagement, illegal sale of company land, allotment of equity shares, appointment and removal of directors, and the legality of extraordinary general meetings and resolutions. The key findings are: the sale of land parcels at a lower price, though below market value, does not constitute oppression or mismanagement as the company urgently required funds, and the petitioner had consented to the sale price. The lease deed with Padmavatahi Ispat, though signed, was never executed and subsequently cancelled, hence not amounting to oppression. The allotment of 17,29,000 equity shares to respondents is held to be legal and valid. The acts of respondents are not prejudicial or opp.....

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https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81803

#corporatelaw #shareholderdisputes #oppression #mismanagement #boardroomdrama - Companies Law