1. 1. GST UPDATES
2. INCOME TAX UPDATES
TAX WEEKLY NEWSLETTER
19-JULY-2020
CONTENTS

2. 1
Weekly Newsletter
GST UPDATES
CBIC grants approval to pending
registration applications, deemed
approval to resume from 1st
August
CBIC grants deemed approval to GST
registration applications pending as on
30th
June 2020 which had not been
processed till 15th
July 2020. Further, the
applications received after 30th
June 2020
which remain pending as on 28th
July
2020 shall be deemed to be approved on
31st
July 2020.
The 3 days deemed approval of
application would be resumed from 1st
August 2020.
GSTR-4 due date extended to 31st
August 2020 for FY 2019-20 -
Notification No. 59/2020–Central
Tax
CBIC has extended due date of GSTR-4
for Financial Year 2019-20 to 31st
August 2020 which earlier was 15th July
2020. GSTR–4 is a GST Return which is
required to be filed by a GST composition
dealer. A dealer opting for the GST
composition scheme is required to
furnish only 1 return which is GSTR 4. It
is to be noted that GSTR–4 filing is not
yet been implemented on GST Portal.
ADVANCE RULINGS
Reimbursement for damage to goods
is classifiable as ‘supply of goods’
Andhra Pradesh Authority for Advance
Rulings - Halliburton Offshore Services
Inc
The authority held that reimbursement
towards damage or loss of equipment
cannot be considered as agreeing to
refrain from an act or to tolerate a
situation, and hence is not classifiable as
a service under Entry 5(e) of Schedule
III of the CGST Act.
The amount of reimbursement of
equipment/tools which are damaged
beyond repair or loss is at an agreed
depreciated value is classifiable as supply
of goods and hence shall be taxed
accordingly.
Charges collected for delayed
payments by Chit Company cannot
be considered as interest which is
exempt under GST
Andhra Pradesh Authority for Advance
Rulings - Ushabala Chits Private Limited
The authority held that having regard to
the nature of transaction of Chit
company, it cannot be said that the
company has extended any deposit,
loans or advances to its customers -
hence the additional amount being
charged cannot be treated as interest
which is exempt.
Chits are not an actionable claim, and
hence the additional amount being
charged in delay of payment by whatever
name called should be classified as
principal supply and shall be taxed as
supply of financial and related services.
Building constructed for being used
as a lodge cannot be termed as
residential dwelling for the purpose
of claiming exemption
Andhra Pradesh Authority for Advance
Rulings - AkshmiTulasi Quality Fuels

3. 2
The Authority observed that it appeared
that the premise was a non-residential
property considering the number of
rooms and amenities provided in it,
boarding and hospitality services
extended to the inmates and the clauses
of the agreements - the building was
constructed for the purpose of running a
lodge house and the lessee was engaged
in commercial activity of renting of
rooms in the dwelling and providing
boarding and hospitality services to the
inmates.
Therefore, the supply was held to be
classifiable as ‘Rental or leasing services
involving own or leased non-residential
property’ liable for GST at the rate of 18
percent.
The ruling is in line with the ruling
pronounced by the Karnataka Authority
for Advance Rulings in an application by
Taghar Vasudeva Ambrish wherein the
end use of the property was considered.
Value of goods supplied free of cost
to the service provider in terms of
contract has to be included in value
of supply
Andhra Pradesh Authority for Advance
Ruling - Pulluri Mining & Logistics Private
Limited
The provision under Section 15(2)(b)
includes any amount that the supplier is
liable to pay in relation to supply but
which has been incurred by the recipient
of the supply and not included in the
price actually paid or payable for the
goods or services or both.
Given this, the Authority held that HSD
provided free of cost in terms of the
contract by the service recipient forms
an important and integral component for
the services to be provided by the
applicant, even if the value of contract
was exclusive of fuel cost. Thus, the
value of HSD supplied free of cost is
includible in value of supply of services
provided by the applicant.
Marketing consultancy services
classified as intermediary services,
liable to tax in India
Andhra Pradesh Authority for Advance
Rulings - DKV Enterprises Private Limited
The Authority opined that marketing
consultancy services rendered by the
applicant for consideration would qualify
as intermediary services under the
clause 13 of Section 2 of the IGST Act,
2017 on the grounds that transaction
was not being done on its own account.
The place of supply of intermediary
services, in terms of Section 13(8) would
be the location of the supplier of
services, and since the service recipient
is located outside India, it would be
classified as an inter-state supply as per
Section 7(5)(c). However, mere fact that
the payment has been received in
convertible foreign exchange by the
applicant will not qualify the transaction
of the applicant as export of services.
Medicines supplied to patients
undergoing treatment is a part of
composite health care services
Andhra Pradesh Authority for Advance
Rulings - Christian Medical College
Vellore Association
The Authority held that supply of
medicines through pharmacy to the

4. 3
Weekly Newsletter
patients are not liable to tax, being a
part of the composite supply of health
care services which are nil rated. The
same principle is applicable to the
medicines, drugs, stents, implants etc
administered to in-patients during the
medical treatment or procedure being a
part of the composite supply of health
care services.
The ruling is in line with several other
previous rulings.
Sanitisers does not contain 'curative'
or 'preventive' ingredients, classified
as disinfectant which attracts 18 per
cent GST
Goa Authority for Advance Rulings -
Springfields (India) Distilleries
The Authority held that alcohol-based
sanitisers, which are used to ‘maintain
hygiene’ did not contain any curative or
preventive ingredients and hence could
not be considered medicaments. Alcohol-
based hand sanitisers are classifiable
under heading 3808 of HSN (pertaining
to disinfectants) on which rate of GST
applicable is 18 per cent, the ruling said.
Besides, it added that “merely classifying
any goods as essential commodity will
not be the criteria for exempting such
goods from GST.”

5. 4
INCOME TAX UPDATES
New Form 26AS is the Faceless
hand-holding of the Taxpayers –
PIB-Release ID: 1639593 –
18/07/2020 - The new Form 26AS is
the faceless hand-holding of the
taxpayers to e-file their income tax
returns quickly and correctly. From this
Assessment Year, taxpayers will see an
improved Form 26AS which would carry
some additional details on taxpayers’
financial transactions as specified in the
Statement of Financial Transactions
(SFTs) in various categories.
It is stated that the information being
received by the Income Tax Department
from the filers of these specified SFTs is
now being shown in Part E of Form 26AS
to facilitate voluntary compliance, tax
accountability and ease of e-filing of
returns so that the same can be used by
the taxpayer to file her or his income tax
return (ITR) by calculating the correct
tax liability in a feel-good environment.
This would also bring in further
transparency and accountability in the
tax administration.
It is stated that the Form 26AS for any
taxpayer, from now onwards, will display
in part E of the Form, different fields
such as, type of transaction, name of
SFT filer, date of transaction, single/joint
party transaction, number of parties,
amount, mode of payment and remarks
etc.
Furthermore, this would help the honest
taxpayers with updated financial
transactions while filing their returns,
whereas it will desist those taxpayers
who inadvertently conceal financial
transactions in their returns. The new
Form 26AS would also have information
of transactions which used to be received
up to Financial Year 2015-16 in the
Annual Information Returns (AIR).
CBDT to start e-campaign on
Voluntary Compliance of Income Tax
for FY 2018-19 from 20th July,
2020- Press Release- 18/07/2020 -
The Income Tax Department is all set to
start an e-campaign on voluntary
compliance of Income Tax for the
convenience of taxpayers from Monday,
the 20th of July, 2020. The 11 days
campaign ending on 31st July, 2020
focuses on the assesses / taxpayers who
are either non-filers or have
discrepancies/deficiency in their returns
for the FY 2018-19.
This e-campaign is being run for the
benefit of the taxpayers. Under this e-
campaign the Income Tax Department
will send email/sms to identified
taxpayers to verify their financial
transactions related information received
by the I-T Department from various
sources such as Statement of Financial
Transactions (SFT), Tax Deduction at
Source (TDS), Tax Collection at Source
(TCS), Foreign Remittances (Form 15CC)
etc. The Department, has also collected
information related to GST, exports,
imports and transactions in securities,
derivatives, commodities, mutual funds,
etc., under information triangulation set
up and data analytics.

6. 5
Weekly Newsletter
Section 10(46) exemption to various
agencies as under
Notification No. 49/2020 - 17/07/2020
Real Estate Regulatory Authority, Bihar
Notification No. 46/2020 - 13/07/2020 -
National Aviation Security Fee Trust
Notification No. 47/2020 - 13/07/2020-
Goa Real Estate Regulatory Authority
and Telangana State Real Estate
Regulatory Authority
Order for sharing information with
Ministry of MSME - Notification No.
48/2020-Income Tax – 14/07/2020
- In exercise of powers conferred under
section 138(I)(a) of Income tax Act,
1961 (‘Act’), the Central Board of Direct
taxes hereby directs that Principal
Director General of Income-tax
(Systems), New Delhi shall be the
specified authority for furnishing
information to Additional Secretary and
Development Commissioner, Ministry of
Micro Small and Medium Enterprises,
Government of India.
Information like Turnover/Gross
Receipts, Depreciation related to Plant
and Machinery will be shared to enable in
processing of UDYAM registration.
One-time Relaxation for Verification
of Last 5 years “E-filed” Income Tax
Returns - Circular No. 13/2020 –
13/07/2020 - CBDT has provided a
one-time relaxation for verification of e-
filed returns for AYs 2015-16 to 2019-20
that are pending due to non-filing of a
valid ITR-V either by sending a physical
copy of ITR-V to CPC, Bengaluru or
through EVC/OTP modes by 30th Sept,
2020.
However, the above relaxation shall not
apply in cases where during the above-
mentioned period, the IT Department
has already issued notice or taken any
measures as provided in the Act for
ensuring filing of tax returns after
declaring such returns as invalid.
CBDT has refunded Rs. 71,229 crore
so far to help taxpayers during
COVID-19 pandemic- 17/07/2020 -
Income tax refunds amounting to Rs.
24,603 crore have been issued in 19.79
lakh cases to taxpayers and corporate
tax refunds amounting to Rs. 46,626
crore in 1.45 lakh cases have been
issued to taxpayers during COVID-19.
JUDICIAL UPDATES
ITAT upheld addition in Case related
to deposit in Swiss Bank- Renu T
Tharani vs. DCIT (ITAT Mumbai) -
The assessee before us is closely
involved with the transaction and it is
unconceivable that the assessee will
have no direct knowledge of the owners
of the underlying company and settlors
of the trust which has her, as she herself
puts it, as beneficiary of such a huge
amount. This inference is all the more
justified when we take into account the
fact that the assessee has been non-
cooperative and has declined to sign the
consent waiver.
If the assessee was indeed not the owner
of the account, there was all the more
reason to sign the consent waiver form
because it would have established that
fact when the HSBC Private Bank
(Suisse) Geneva was to decline the
information on the basis of that consent
waiver. A consent waiver signed by the
assessee would have been infructuous in

7. 6
that case, and it could not have done any
harm to the assessee. Consent waiver
form does not prejudice the claim of the
assessee that he does not own the
account in question; all it does is, as can
be seen from the extracts from consent
waiver form format reproduced earlier, is
that it waiver assessee‟s rights, if any,
under the data protection and banking
secrecy laws.
Section 292BB is applicable to
assessee & not to a legal
representative - Savita Kapila, legal
heir of Late Shri Mohinder Paul
Kapila Vs ACIT (Delhi High Court) -
There is no statutory requirement
imposing an obligation upon legal heirs
to intimate the death of the assessee. In
the absence of a statutory provision it is
difficult to cast a duty upon the legal
representatives to intimate the factum of
death of an assessee to the income tax
department.
Issuance of notice upon a dead person
and non-service of notice does not come
under the ambit of mistake, defect or
omission. Consequently, Section 292B of
the Act, 1961 does not apply to the
present case. Legal heirs are under no
statutory obligation to intimate the death
of the assessee to the revenue.
Consequently, the applicability of Section
292BB of the Act, 1961 has been held to
be attracted to an assessee and not to
legal representatives.
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