Latest Blogs from SBS and Company LLP

    SBS Wiki E Journal Nov 2020

    In this edition, we bring you an article on retrospectivity of Section 9(4) of Central Goods and Services Tax Act. The said section was omitted with effective from Oct 17 after CBIC receiving huge representations stating that the compliance burden it caused and forced many small time assesses to register. However, while the said section is omitted from Oct 17, the applicability from June 17 to Oct 17 is unknown. The tax authorities believe that the said omission is from Oct 17, the taxability would exists for the period prior to it. However, the tax payers state that considering the jurisprudence and intention to relive tax payers, the omission should be held retrospective. The article deals precisely on the said issue.

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    SBS Wiki E Journal Oct 2020


    Hope all of you have adopted to the new normal. The beauty of our race is ‘adaptability’ and this is the only reason that our species still survive. I pray that every one of you out there are safe and healthy.

    In this edition, we bring you the guidelines and various reports/returns to be made by an international group having presence in India. The article on CbCR and MF provides the reader the gist of various compliances under the said guidelines and layouts broad details such forms contains. The article on in-sights into in-bound warehousing and manufacturing facility deals with the welcome and positive regime for the importers who can defer the payment of import taxes till they are cleared for home consumption. The article also deals with various procedures to be adopted, if one wishes to opt for such warehousing. The next article is on one of most asked area qua individual taxation, the frequently asked questions on deductions under Section 80D of Income Tax Act.

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    Master File and Country by Country Report

    Introduction to Master File and Country by Country Report:

    The lack of quality data on corporate taxation has been a major limitation to measuring the fiscal and economic effects of tax avoidance, making it difficult for authorities to carry out transfer pricing assessments on transactions between related companies and even more difficult to carry out audits.

    To tackle the above issue and to provide tax authorities with sufficient information about economic activities of multinational group, OECD[1] has prepared Action Plan 13 under the BEPS[2] Package. Action Plan 13 requires every multinational group to file a detailed report namely ‘Country by Country Report’ (‘CbCr’) on its economic activities to tax authorities.

    FAQs for Section 80D

    1. What is the deduction specified under Section 80D?

    Section 80D falls under Chapter VI-A of Income Tax Act, 1961 (for brevity ‘ITA’), which deals with ‘deductions to be made in computing total income’. Section 80D deals with deduction in respect of amounts paid towards health insurance, medical expenditure and preventive health check-up.  

    1. Who are eligible for claiming deduction under Section 80D?

    The deduction is available for individual and Hindu Undivided Family (HUF). The section allows cover for:

    Insights into In-bond Warehousing & Manufacturing Facility


    The concept of warehouse manufacturing available under Customs Act, 1962 is an age-old duty deferment and export benefit scheme useful for both domestic suppliers and exporters. It is less popular among exporters when compared to EOU1, EPCG2 and Advance Authorization schemes under the FTP3. All these schemes allow exporters to import capital goods and inputs to procure domestically without payment of customs duties and IT4. Such duty saved amounts shall stand waived when the specified export obligations are fulfilled. On the contrary when such obligations are not fulfilled within the stipulated time, the duty saved amounts proportionate to unfulfilled export obligation shall be recovered along with interest which is payable from the date of actual import of goods under the above schemes. The option of warehouse manufacturing is also worthy for exporters to consider as it does not impose any condition of export obligation and there will be a remission of duty payable on imported goods if the final goods are exported. If the final goods are cleared for domestic consumption, then the duty payable on original imported goods that was not paid at the time of their import can be paid without interest at the time of such removal. In addition to the condition of export obligation, there are no stipulations about minimum investment, minimum area and is of less administrative burden.

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