Direct Tax
CBDT notifies amendments in income-tax rules for ease in claiming tcs credit to a person other than the collectee, in whose hands the income of the collectee is assessable
Notification G.S.R. 645(E) [NO. 114/2024/F. NO. 370142/21/2024- TPL] Dated 16-10-2024
Sub-section (4) of Section 206C of the Act was amended to allow the credit of Tax Collection at Source (TCS) to a person other than the collectee. For instance, such as a parent in the case of a minor collectee—when the minor's income is clubbed with that of the parent. Accordingly vide this notification, Rule 37-I of the Income Tax Rules, 1962 (the Rules) has been amended to allow credit of tax collected at Source to a person other than the collectee, in whose hands the income of the collectee is assessable.
To claim tax credit, the collectee must file a declaration with the collector, who will then report the tax collected under another person’s name. This declaration must include the recipient's details and payment amount, and the collector will issue a tax collection certificate in that recipient's name.
CBDT notifies amendments in income-tax rules for ease in claiming credit for tcs collected/tds deducted for salaried employees
Notification No. G.S.R. 639(E) [NO. 112/2024/F. No. 370142/19/2024- TPL] Dated 15-10-2024
Sub-section (2B) of Section 192 of the Income Tax Act, 1961 (ITA) states that any income chargeable under any other head of income (or house property loss) apart from salaries or any tax deducted or collected at source, as applicable, may be included in the details submitted to the payer following prescribed form and verification.
Accordingly, vide this notification, the Rules have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Act. Employees must provide these particulars to their employers, who are responsible for making payments under subsection (1) of Section 192. The employer, in turn, shall deduct TDS on salary after taking into account the furnished particulars.
Indirect Tax
Customs
CBIC issues guidelines on retrospective issuance of Certificate of Origin under India-UAE CEPA
Instruction No. 21/2024-Customs Dated 16 October 2024
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that preferential benefit under the Comprehensive Economic Partnership Agreement (CEPA) cannot be denied where a valid Certificate of Origin (COO) has been furnished within the prescribed period (of 12 months) after the import of goods, provided the authenticity of such Certificate and product origin are not disputed. Accordingly, the requirement of uploading COO on e-Sanchit while filing bill of entry would not apply in this case.
Further, minor procedural discrepancies concerning rules of origin should not be seen as countering the intent of extending substantive benefit under the trade agreement, unless such discrepancies cast a doubt on the originating status of the product.
CBIC issues clarification on classification of laboratory chemicals under Heading 9802
Circular No. 18/2024-Customs Dated 23 September 2024
Pursuant to amendment to Note 3 to Chapter 98 w.e.f. 19 September 2024, the CBIC has clarified that to merit classification as “laboratory chemicals” under Heading 9802, the goods must be imported and intended only for own use. On the other hand, laboratory chemicals imported for purposes like trading, further sale, etc. are out of the scope of said Heading irrespective of the quantity / volume and the packing size and thus, are classifiable under their appropriate Chapter / Heading in the First Schedule. Similarly, in the case of packings exceeding 500 grams or 500 milliliters, the goods would be classified under their appropriate Chapter/Heading in the First Schedule.
Government digitizes certain Customs Bonded Warehouse procedures to facilitate ease of doing business
The Government has introduced a Warehouse Module on Indian Customs EDI Gateway (ICEGATE) to enable:
- Online filing of application for obtaining a warehouse license under Section 57, 58 and 58A of Customs Act;
- Online submission and processing of requests for transfer of warehoused goods to another person and / or another warehouse; and
- Uploading monthly returns (Form A and Form B) for the Customs Bonded Warehouse.
User Manuals have been issued in this regard to serve as a guide for the trade and officers alike.
Foreign Trade Policy (FTP)
DGFT amends Export Policy of Cough Syrup; Exempts mandatory testing in certain situations
Notification No. 35/2024-25 Dated 1 October 2024
The Directorate General of Foreign Trade (DGFT) has amended the Export Policy of Cough Syrup falling under HSN 3004 thereby waiving off the requirement of mandatory testing of export samples and production of Certificate of Analysis from laboratories in case the manufacturers export said goods to USA, UK, Canada, EU, Japan, Australia, Singapore, Republic of Korea, and Switzerland. Further, if the Cough Syrup is manufactured in a plant/ section approved by the regulatory agencies of the abovementioned countries for any product, the same shall be permitted to be exported to any country without testing.
DGFT imposes restriction on import of parts of cigarette lighters with immediate effect
Notification No. 36/2024-25 Dated 13 October 2024
Import of parts of pocket lighters, gas fuelled, non-refillable or refillable lighters (cigarette lighters) falling under HSN 96139000 has been ‘restricted’ with immediate effect.
No NOC for Acetic Anhydride procured from SEZ units by Advance Authorization holders
Policy Circular No. 08/2024-25 Dated 11 October 2024
The DGFT has clarified that the provisions under Para 4.08(ii) (requiring NOC from Drugs Controller and Narcotics Commissioner of India) will not be applicable to an Advance Authorization holder where the Acetic Anhydride is manufactured and procured from Special Economic Zone (SEZ) units, against Certificate of Supplies.