2019-07-13_Corporate_Professional_Today

587

July 13 To July 19, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 61

    Sellerbookedforprofiteeringbyin-

creasingbasepricedespiteGSTrate

reductiononfootwear

Saurabh Gahoi v. Pinky Sales [2019] 106
taxmann.com 340 (NAA)

The Applicant had filed an application to the
Standing Committee on Anti-Profiteering alleging
that seller had not passed on the benefit of
rate reduction by not reducing the price on
footwear. The application was forwarded to
Director General of Anti-Profiteering (DGAP)
on the above issue.

The National Anti-Profiteering Authority on
the basis of DGAP’s report observed that

the GST rate on footwear priced between

Rs. 500 to Rs. 1,000 was reduced from 18%

to 5% from July 26, 2018. The base price of

the footwear excluding GST was increased

from Rs.592.37 to Rs.665.71 and hence, denied

the benefit of tax reduction to the applicant.

The National Anti-Profiteering Authority held

that the seller had issued incorrect invoices

while selling the products to the applicant in

which he had illegally charged higher base

price despite the GST rate reduction and

contravened the Anti-profiteering provisions.

Hence, he was liable to pay penalty.

lll

Income-tax

Statutory Changes

    CBDT xpandse TermsofReference

for aftingdr newDirectTaxLaw

NOTIFICATION F.NO. 370149/230/2017,
DATED 24-06-2019

The Central Board of Direct Taxes (CBDT)
has widened the Terms of Reference (ToR)
in order to draft new Direct Tax Law. The
5 new ToRs have been included which are:

i. The faceless & anonymous verification/

scrutiny/assessment

ii. The mechanism for system based cross

verification of the financial transactions

iii. Reduction in litigation and expeditious

disposal of appeals

iv. Reduction of compliance burden by sim-

plification of procedures

v. Sharing of information between GST au-

thorities, Customs, CBDT & FIU.

Further, the CBDT has also included Chief

Economic Adviser Krishnamurthy Subramanian

and Joint Secretary (Revenue), Ritvik Pandey

in the Task Force. In order to review the

existing Income-tax Act, 1961 and to draft a

new direct tax law, the Govt. had constituted

a Task Force that is required to submit its

report to the Government by July 31, 2019.

    Circular grantingtaxrelieftofresh

issueofsharesu/s56(2)(viia)was

appliedonlyoncebeforeitswith-

drawal

The Central Board of Direct Taxes (CBDT)

vide Circular No. 10/2018, dated 31-12-2018

had clarified that the provisions of section

56(2)(viia) shall not be applicable in cases of

WEEKLY REVIEW