CA.(Dr.) Arun Ahuja

  Date for applicability of new TCS rate extended to 1st October,2023 Budget 2023 has raised Tax Collection at Source (TCS) on foreign remittance through Liberalised Remittance Scheme (LRS) to 20 per cent from the existing 5 per cent, except in certain cases. The higher rate of TCS was about to kick in from July 1, 2023. The new Tax Collection at Source (TCS) rule will come into effect from October 1, 2023, the Ministry of Finance said in a notification on June 28, 2023.  "The increase in TCS rates; which were to come into effect from 1st July, 2023 shall now come into effect from 1st October, 2023 with the modification as in (ii) above," the ministry said. "Till 30th September, 2023, earlier rates (prior to amendment by the Finance Act 2023) shall continue to apply," it added. 

  Recipients of supply were not entitled to ITC in respect of supplies made to them in terms of section 16(2)(c) of CGST Act, 2017 when supplier who charged tax from them on such supplies failed to deposit the same with Department.  However Double Taxation is not Allowed.  Restore the ITC, when recovery is made. Order passed on ROM application without hearing assessee, being in violation of principles of natural justice and provisions of the third proviso to section 161 of CGST Act, 2017, was not sustainable [2023] 149 taxmann.com 13 (Madras) Pinstar Automotive India (P.) Ltd. v. Additional Commissioner Input tax credit - Tax charged but not deposited by suppliers - ITC was denied to petitioner-assessee in respect of supplies made to them supplier had charged tax from them on such supplies but failed to remit same to Department - Undisputedly, provisions of section 16(2)(c) are required to be followed strictly and as per said section, interest of revenue are to be protect...

1. ITC can’t be denied merely because the registration of the supplier was cancelled with retrospective effect as supplier purchased goods were all fake and non-existing and bank accounts open by said supplier was on basis of fake documents. [2023] 151 taxmann.com 270 (Calcutta) Gargo Traders v. Joint Commissioner, Commercial Taxes (State Tax) Where petitioner's claim for input tax credit was rejected due to supplier's fraudulent activity, since the petitioner had paid amount of purchased articles as well as tax on same through bank and not in cash and without proper verification, it could not be said that there was any failure on the part of petitioner, order rejecting said claim was to be set aside Input tax credit - Claim of - Petitioner claimed credit of input tax against supply made from a supplier - Said claim was rejected by respondent-revenue on grounds that supplier from whom petitioner claimed to have purchased goods were all fake and non-existing and bank accounts op...