Reference: Central Board of Indirect Taxes and Customs
Update:
In re Odyssy Tour & Travels Pvt Ltd (GST AAR Goa)
The applicant had paid GST correctly but had not distributed the tax amounts correctly. To rectify their mistakes, they were advised to re-issue rectified invoices. Further, the applicant has informed that they have operated vast number of tours and old invoices have been already uploaded online on the GST platform. In such circumstances, through this advance ruling application the applicant has asked the following questions;
- Whether they may be allowed to start the correct their invoices from September 2018 onwards.
- Whether rectification regarding past invoices can be done in the annual return supposed to be done by December 2018.
- What rate of exchange they should consider for their billing in foreign exchange?
Going through the questions raised by the applicant in their application, the Authority stated that the questions in nature of seeking an advice on the procedures to be followed by the assessee and are not covered under advisory nature. Accordingly, this authority holds that The application for Advance Ruling is rejected.
READ HERE the complete orderof AAR GOA
Implication:
Advance ruling cannot be obtained on questions involving procedural aspects & which are of advisory nature
Update:
In re Golden Vacations Tours and Travels (GST AAR West Bangel)
The Applicant is tour operator. It has sought advance ruling on whether it should be classified as a tour operator when it merely arranges the client’s accommodation in hotels. Arranging accommodation may also be a standalone business. Arranging accommodation might be provided as add-ons, but that is not the essence of the tour operating service. The Applicant’s service under focus in the Application is not, therefore, to be treated as that of a tour operator.
The support services covered under SI No. 23(iii) of the Rate Notification include services classified under SAC 998552. Services covered under SAC 998552 include arranging reservations for accommodation services for domestic accommodation, accommodation abroad etc. The Applicant’s supply is specifically covered and, therefore, classifiable under SAC 998552. It is, therefore, taxable at 18% under SI No. 23(iii) of the Rate Notification, and the Applicant is eligible to claim the input tax credit as admissible under the law.
Implication:
Standalone services for arranging accommodation in a hotel are taxable at 18% GST
Update:
DCIT v. ATC Realtors (P.) Ltd. – [2019] 108 taxmann.com 383 (Guwahati – Trib.)
The assessee-company had developed shopping malls/business centres on properties owned by it and had let out same to various users by providing host of services/facilities/amenities in said malls/business centres. It could be said that basic intention of assessee was commercial exploitation of its properties by developing them as shopping malls/business centres.
Therefore, income derived therefrom was to be assessed as \’business income\’ and not as \’income from house property.
Implication:
Income from letting out shopping malls along with other facilities cannot be treated as income from house property
Reference: Central Board of Direct Taxes
Update:
Clarifications in respect of filling-up of return forms for the Assessment Year 2019-20:
CBDT has issued a clarification in respect of filling up of return for the AY 2019-20 and provided instructions for filing ITR forms in cases such as furnishing details of shareholding in Schedule SH-1 by unlisted company or mentioning PAN number where in case where PAN of shareholder is not available for other practical reasons. READ HERE to know more
Implication:
This will help taxpaying in in respect of filling-up of the ITR forms and updated utility for ITR-6 is available for filing for AY 2019-20.
