WELCOME TO OUR TRADE AND TAX NEWSLETTER
We are pleased to present the sixth edition of our Trade and Taxation Newsletter, sharing important updates, key developments, and practical insights on trade and taxation, all tailored to help you stay ahead in an ever-changing regulatory environment. We hope you find this newsletter useful and informative, and we look forward to your continued engagement.
View the March 2025 newsletter.
WHAT'S INSIDE
I. TAX UPDATES
DIRECT TAX
- Vivad se Vishwas Scheme to come to an end on 30th April 2025
- CBDT issues FAQs on revised guidelines for compounding of offences
- CBDT amends Safe Harbour Rules for determination of arm’s length price
- No TDS on withdrawals by individuals from notified pension scheme
INDIRECT TAX
Customs
- Amendments brought in the CAROTAR Rules to replace ‘Certificate of Origin’ with ‘Proof of Origin’
- Postal Imports Regulations, 2025 introduced
- Export Entry (Post export conversion in relation to instrument-based scheme) Regulations, 2025, introduced
- Guidelines provided for documentation and compliances for faceless assessment process
- Import of Monitors (other than IFPD) does not attract conditions specified under IGCR Rules for claiming exemption rate of BCD @ 10%
- Import of Bengal Gram (desi chana) exempt from levy of SWS and AIDC
- Navi Mumbai and Noida International (Jewar) appointed as Customs Airport
- Export Duty on Onions withdrawn
- Condition for exemption from BCD on re-import of cut and polished diamonds after certification/grading by the laboratories /agencies, modified
- List of goods eligible for preferential rate of duty revised when imported from UAE and Mauritius
- Circular providing the procedure for transhipment of Export Cargo from Bangladesh to third countries, rescinded
- Transitional provisions for SCMTR extended till May 31, 2025
- Clarification issued on the scope of Camera Module of Cellular Mobile Phones
- Procedure for import/export of gems and jewellery through personal carriage, notified
Goods and Services Tax (GST)
- Clarifications issued to extend benefit of scheme to taxpayers
II. SPOTLIGHT ON JUDICIAL PRONOUNCEMENTS
DIRECT TAX - International Tax Cases
- Amount paid for cloud computing, cloud space hiring etc. is not Royalty
- Proceedings under section 153C without separate satisfaction note void ab initio
- Formation of independent opinion by AO essential for reopening
- Expenses for mobilising foreign deposits by Bank are not Head Office expenses
- Rights Entitlements are not equity shares
- Expenditure for implementing Brand strategy is not Royalty
DIRECT TAX - Income Tax Cases
- Reduction in share capital comes in the definition of 'transfer'
- Action under section153C cannot be taken for years not pertaining to the seized records
- Offence of failure to file return occurs on the day following the due date
- Assessment on a non-existent company cannot be remedied under section 292B
- Limitation of two years prescribed by Board for claim of refund of TDS is ultra vires
- Issue of notice in the name of deceased person is void
- In IBC cases new tax demands prior to Resolution Plan cannot be considered
INDIRECT TAX - Goods and Services Tax
- SC directs issuance of notice to CBIC to resolve larger issue of ITC denial due to arithmetical/ clerical mistakes
- Karnataka and Patna HCs quash Orders denying ITC on construction of warehouse; observe that whether property can be classified as ‘plant’ requires factual determination basis Safari Retreats judgment
- Kerala HC strikes down levy of GST on services provided by Clubs/Associations to its members; declares Section 7(1)(aa) and Section 2(17)(e) as unconstitutional
- Supreme Court upholds retrospective amendment to Rule 89(5), which prescribes formula for refund under inverted duty structure
- Physical delivery of goods not required for availing ITC under GST; a significant departure from central excise laws – Patna HC
Customs
- Bombay HC holds that no interest, penalty or redemption fine imposable on payment of IGST for violation of the pre-import condition
III. INTERNATIONAL TRADE BRIEF
- Global Trade
- Exemptions from reciprocal tariff
- India Trade Update
- Amendment in import policy
- Duties imposed or extended by the Ministry of Finance
- Duties recommended by the Ministry of Commerce
- Initiation of Trade Remedy investigations
