Direct Tax
CBDT extends time limit for furnishing Form 67 for claiming foreign tax credit
Notification No. 100/2022/F. No. 370142/35/2022-TPL Dated 18 August 2022
- In exercise of the power conferred as per Section 295 of ITA 1961, the CBDT amends rule 128, sub-rule (9), which will be applicable from 1 April 2022.
- Now for claiming Foreign Tax Credit (FTC), Form 67 and the certificate mentioned in sub-rule (8) has to be filed on or before the end of AY relevant to the previous year in which income to in sub-rule (1) has been offered to tax or assessed to tax in India and the return for that AY should be filed on time.
- If any updated return is filed in which the income related to has been updated, then Form 67 should be new Form 67 shall be filed on or before an updated return is filed.
Central Government excludes NR with No PE in India from 206C (1G)
Notification No. 99/2022/F. No. 370142/9/2022-TPL Part (2) Dated 17 August 2022
For promoting the ease of transaction, CBDT notified that the provisions of sub-section 206C(1G) shall not apply to a person who is a non-resident and who don’t possess PE in India for the following transactions:
- Remitting amount under Liberalized Remittance Scheme of RBI; or
- Buying overseas tour program package.
Time limit for e-verification of ITR-V reduced
Notification No. 5 of 2022 Dated 29 July 2022
- The Directorate of systems has reduced the time limit for verification of ITR-V to 30 days from 120 days.
- This will be effective for electronically transmitted returns on or after 1 August 2022.
- Returns transmitted before 1 August 2022 will have an earlier time limit of 120 days.
CBDT notifies Form 29D for claiming tax refund under Sec.239A
Notification No. 98/2022/F. No. 370142/33/2022-TPL Dated 17 August 2022
- CBDT has introduced rule 40G for refund under Section 239A.
- As per the new rule, a claim under this Section should be made in Form no. 29D and the form should be accompanied by a copy of an agreement or other arrangement referred to in Section 239A.
Indirect Tax
GST Updates
The Central Board of Indirect Taxes and Customs (CBIC) has issued various clarifications pursuant to the recommendations made by the GST Council. Click on the link below to read the gist of noteworthy clarifications: https://bit.ly/3CtE4qX
Customs Updates
Unauthorized publication of export-import data becomes a compoundable offense
Notification No. 69/2022 – Customs (N.T.) Dated 22 August 2022
Along with simplifying of procedure for compounding of offenses under the Customs Act, the government has made the offense of unauthorized publication of the Export-Import (EXIM) data (under Section 135AA of the Customs Act) a compoundable one.
First such offense can be compounded by paying INR 0.1 million which would be increased by 100% for each subsequent offense. Furthermore, immunity from prosecution has been granted to the offender. In this context, the Customs (Compounding of Offences) Rules, 2005 stand amended.
Extension of customs clearances beyond normal working hours in Inland Container Depot(s) (ICDs)
Circular No. 11/2022-Customs Dated 29 July 2022
As a measure of trade facilitation and the ease of doing business, the CBIC has advised all the Principal Chie /Chief Commissioners having jurisdictions over ICDs to consider having an extended facility of customs clearance beyond normal working hours. Presently, this facility is available at 20 seaports and 17 airports.
CBIC’s guidelines for the launching of prosecution and for arrest and bail in relation to offenses punishable under Customs Act
Circular Nos. 12/2022-Customs and 13/2022-Customs both Dated 18 August 2022
The monetary threshold for launching prosecution and making an arrest in respect of offenses punishable under the Customs Act have been prescribed. These offenses are as follows:
- Cases involving unauthorized importation of baggage and outright smuggling of high value goods - INR 5 million or more.
- Cases relating to importation or exportation of trade goods involving misdeclaration in value/description, concealment of restricted goods, fraudulent/attempt of evasion of duty, fraudulent availment of duty drawback where the market value of goods/amount of duty evaded / amount of duty drawback exceeds INR 20 million.
- Cases involving obtaining an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts and duty relatable to the utilization of such instrument exceed INR 20 million.
Provisions of arrest and bail can be invoked by the Customs Authorities in the aforesaid cases.
Customs duty on Display Assembly of cellular mobile phone
Circular No. 14/2022-Customs Dated 18 August 2022
CBIC has clarified that the import of display assembly of cellular mobile phones with merely a back-support frame of metal/plastic will attract a basic customs duty (BCD) of 10%. However, if other items such as the sim tray, antenna pin, speaker net, power key, battery compartment, etc. come fitted with the Display Assembly with or without the metal/plastic back support frame, the duty on the whole assembly would be 15%.