Quote for the Day:

"We are all inventors,
each sailing out on a voyage of discovery,
guided each by a private chart,
of which there is no duplicate.
The world is all gates, all opportunities"

Useful Updates:

( Contribution by CA. A. K. Srivastava )

• PCIT-1 vs Beam Global Spirits & Wine (India) Pvt Ltd. ITA No.s 155 & 156/2022, Judgment delivered 07.03.2025

The Hon’ble Delhi High Court in judgement delivered, has dealt with extensively on the Advertising, Marketing and Publicity (AMP) expenses incurred by an assessee and the provisions of section 92B read along with Section 92F of the Income-tax Act, 1961 as amended from time to time.

The assessee, a company of Beam Global group was engaged in the business of manufacture, sale, marketing and trading of Indian Made Foreign Liquor(IMFL) under brands owned and licensed to Beam Global group.
In the course of undertaking a Transfer Pricing Study, the TPO observed that huge expenses were incurred on AMP and sought to determine ALP.

The Tribunal held that the TPO is not permitted to embark upon the benchmarking analysis of allocating AMP expenses as attributed to the AE without there being an agreement or arrangement for incurring such AMP expenses. The provisions of Section 92B r.w.s. 92F of the Act were analysed and explained.  
The Tribunal deleted the addition made on account of AMP expenses.

The Hon’ble High Court has dealt with the statutory provisions, as amended from time to time and explaining various judgments on AMP, declined to interfere with  the order of the Tribunal.

( Contribution by CA. Satish Agarwal )

• 151 FAQs on UAE’s new Legislation for Corporate Tax (CT) Laws  Read More

( Contribution by CA. Vinamar Gupta )

• Presentation on Basics of GST Amnesty Scheme  Read More

• Levy of IGST on repair Value of goods re-imported after repair held unconstitutional in case of Indigo Airlines

NN 45/2017-Customs dated 30-06-17 as originally envisaged allows exemption of BCD, IGST and Cess for re-import of goods after repair.

However the notifications levies duty of customs on fair cost of repairs including cost of material used, insurance and freight charges.

However there after a notification 36/2021-Customs amending above notification was issued on 19-07-2021 accompanied by Circular 16/2021 dated 19-07-21to levy IGST retrospectively on the fair cost of repairs, insurance and freight charges. The revenue therefore levied IGST on repair value retrospectively.

However Delhi Court in Interglobe Aviation Ltd. (Indigo Airlines) decided on 04-03-2025 has stated that :

a.    IGST leviable under proviso to section 5(1) read with section 3(7) of Customs Tariff Act is a levy under IGST only and not a levy under Customs law. Even reference to Integrated tax under customs law has to be read as tax being leviable under IGST Act and not any additional duty which can be levied under Customs law.

b.    Further no IGST under proviso to section 5(1) can be levied and collected in the manner u/s 3 of Customs tariff Acct on repair value treating it as goods. Repair Value of Service can only be taxed as import of service under main provision of section 5(1)

c.    Terms like Explanation‘ or removal of doubt‘ neither results in an automatic validation of an amendment nor does its mere labelling as such make it clarificatory.

d.    Amendment brought in NN 45/2017 seeking to bring new levy and Circular 16/2021 are unconstitutional.

( Contribution by CA. Ayush Agarwal & CA. Mohit Gupta )

• Summary of all amendments and important judgments during the period from 1st February to 15th February 2025  Read More

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