Tax-authorities tighten noose around under-invoicing of Chinese imports

• Dec 06, 2022
  
  
  Tax authorities in India are investigating under-invoicing of goods imported from China after the trade data highlighted a glaring difference of around $12 billion in the data sourced from China and India, the Economic Times reported. On comparison, the trade data from the two countries show invoiced imports into the country are far less than exports from China to India. Taking cognizance of the same, the customs authorities have issued tax-evasion notices to 32 importers since September.
  
  
  Tax authorities suspect a tax evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020. And more such notices are likely to be issued by the tax authorities in the coming days, the report said.

International Tax

Direct tax mop-up to exceed budget target by 25-30 pc: CBDT chief

• Dec 06, 2022                                                                                                                                                    

• The direct tax collection in the current fiscal is likely to exceed the budget target of Rs 14.20 lakh crore by about 30 per cent, a senior official said. Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta also said that the Budget for next fiscal could bring about some tweaks in the TDS provision for online gaming to check tax evasion.

Income Tax

Tweaking of TDS provisions for online gaming likely to check tax evasion

• 6Th DECEMBER,2022
  The government is considering tightening the Tax Deducted at Source (TDS) framework for the online gaming sector to ensure that a better audit trail can be established for the money spent and earned from such activities and check evasion. Also, given the buoyancy in tax collections, the budget target for the next fiscal (2023-24) is likely to be higher, Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said.

Income Tax

You can get personlised support from income tax helpdesk: Here's how

• Dec 06, 2022                                                                                                                                                                                                                                                                                To provide real-time and personalised support, income tax department offers an option of Co-browsing, which is also referred to as collaborative browsing. This enables helpdesk representatives to work alongside the taxpayer's browser in real-time and agents can monitor the taxpayer's browser screen and lead them interactively. Here is a quick look at what is co browsing and how it helps tax payers, according to the income tax department’s website.

Income Tax

Tamil Nadu GST Department Issues Instructions For Initiation Of Action On Non-Filers Of GST Returns

• Dec 06, 2022
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 The Tamil Nadu GST Department has issued instructions in respect of procedures for initiation of action against non-filers of returns under the Tamil Nadu Goods and Service Tax Act, 2017 (TNGST Act).

GST

Works under SBM to attract GST if not done for govts, authorities: AAR

• Dec 06, 2022

Even if supplies are made under a government scheme, these may not be exempt from Goods and Services Tax (GST) if these are not directly supplied to governments or local authorities. Work done for State Urban Development Agency (SUDA) under the Swachh Bharat Mission (SBM) and Mission Nirmal Bangla would not be exempt from GST, according to the state Authority for Advance Rulings (AAR). The work will attract 18 per cent GST, broken into 9 per cent each for central and state GSTs, it ruled.

GST

DTAA amendment by Australia likely to come into force from April 1

Dec 06, 2022                                                                                                                                                                                                                                                                                The double tax avoidance agreement (DTAA) ratified by Australian Parliament, along with its trade deal with India, may come into force on April 1 next year, the finance ministry informed the commerce ministry on Wednesday. The DTAA is expected to eventually lead up to $1 billion in savings for Indian information technology (IT) companies operating in Australia, from the present-day $200 million. “The Australian government has communicated to us that the DTAA will likely come into effect on April 1, 2023. Our finance ministry has also agreed to it since our fiscal year begins from that date,” said a government official.

International Tax

Rationalisation in long-term capital gains tax structure on the anvil

5TH DECEMBER,2022

The finance ministry is looking at rationalising long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefit to make it more relevant, an official said on Friday. Currently, shares held for more than one year attract a 10 per cent tax on long-term capital gains. Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20 per cent long term capital gains tax. The revenue department is now looking at rationalising the tax rates as well as holding period for calculating long-term capital gains and an announcement is likely in the 2023-24 Budget to be presented in Parliament on February 1.

Income Tax