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THE CTC NEWS | May 2019 www.ctconline.org

THE CTC NEWS | May 2019www.ctconline.org


FORTHCOMING EVENTS

SR. NO. DATE COMMITTEE PROGRAMME DESCRIPTION VENUE PG.

NO.

1 03-05-2019 & 04-05-2019

International Taxation and Delhi Chapter

Two Days Conference on FEMA India International Centre, Lecture Room I, Annexe Building, New Delhi

12

2 03-05-2019, 14-05-2019 & 04-06-2019

International Taxation FEMA SC on Discussion on Upcoming RRC Panel Questions

CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai – 400 020

8

3 04-05-2019 Membership & Public Relations

Full Day Seminar on Direct Taxes at Amravati Diamond Hall, Hotel Grand Mehfil, Camp, Amravati

13

4 11-05-2019 Pune Study Group Contemporary issues in Benami Transaction Law and Prevention of Money Laundering Act

ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016

11

5 25-05-2019 to 05-06-2019

International Taxation 5th International Study Tour Central Europe 10

6 29-05-2019 IT Connect Technology Clinic CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31, New Marine Lines, Mumbai-400 020

13

7 08-06-2019 International Taxation Seminar on TDS u/s 195 on Foreign Remittances & Expatriate Taxation Including Procedural Aspects

Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020

5

8 08-06-2019 Accounting & Auditing and Corporate Connect

Study Course on Valuation Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

5

9 13-06-2019 Study Circle & Study Group

SG on Recent Judgments under Direct Taxes Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate, Mumbai-400 020

14

10 13-06-2019 to 15-06-2019

Student Student Orientation Course Juhu Jagruti Hall, Mitibhai College, JVDP Scheme, Vile Parle West, Mumbai-400 056

8

11 14-06-2019 Direct Taxes Half Day Seminar on Recent Controversies and Issues Under Income Tax Act

IMC, Churchgate, Mumbai-400 020 9

12 15-06-2019 Commercial & Allied Laws and Corporate Connect

Seminar on issues related to IBC and Resolution of Distressed Assets


13 15-06-2019 Pune Study Group Full Day Seminar on Contentious Issues in Real Estate Related Transactions

ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road, Next to Atur Centre, Pune-411 016

11

14 20-06-2019 to 23-06-2019

International Taxation 13th Residential Conference on International Taxation, 2019

The Grand Bhagwati, Magdalla Circle, Dumas Road, Surat-395007, Gujarat

6-7

15 22-06-2019 Study Circle & Study Group

SC on Important Issues on ICDS Banquet Hall, Ground Floor, Dadar Club, Lane No. 3, Lokmanya Tilak Colony, Near BAPS Shri Swami Narayan Mandir, Dadar East, Mumbai-400014

14

16 28-06-2019 Direct Taxes Half day Workshop on Return Filing provisions under the Income Tax Act


17 29-06-2019 Commercial & Allied Laws and Direct Taxes

Workshop on the New Benami Law and Prevention of Money Laundering Act

Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020

14

18 29-06-2019 Membership & Public Relations

Full Day Seminar on Direct Taxes at Nagpur Hotel Centre Point, 24, Central Bazar Road, Ramdaspeth, Nagpur-440010

10

19 — — Renewal Notice 2019-2020 — 16

20 04-07-2019 — Notice of 92nd Annual General Meeting — 15

21 — — Unreported Decisions of Tribunal — 17-18

22 — — Unreported Decisions (Service Tax) — 18-19


ACCOUNTING AND AUDITING COMMITTEEChairman: Heneel Patel | Vice Chairman: Tejas Parikh Convenors: Arpita Desai, Deepak Shah | Advisor: Jayesh Gandhi

CORPORATE CONNECT COMMITTEE Chairman: Paras K. Savla | Vice Chairman: Jiger Saiya Convenors: Vitang Shah, Saumil Saparia Advisor: Sujal Shah

STUDY COURSE ON VALUATION Time : 9.30 a.m. to 6.30 p.m.Venue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate,

Mumbai-400 020

Day & Date: Saturday, 8th June, 2019

FEES: Registration up to 25th May, 2019

MEMBERS: ` 2,000/- + ` 360/- (18% GST) = ` 2,360/- NON-MEMBERS: ` 2,300/- + ` 414/- (18% GST) = ` 2,714/-

Registration after 25th May, 2019

MEMBERS: ` 2,500/- + ` 450/- (18% GST) = ` 2,950/- NON-MEMBERS ` 2,800/- + ` 504/- (18% GST) = ` 3,304/-

ABOUT THE PROGRAMME

There is an ever-increasing need for financial valuation services pertaining to ownership interests and assets in non-public companies and subsidiaries, divisions, or segments of public companies.

Several of the auditing firms provide valuation services. There are also analysts and appraisers who practice out of various types of organisations, including appraisal companies, valuation portals, and consulting firms. Valuations are also performed by investment bankers, usually as part of a transaction. Owners and financial

executives also participate in valuations of their companies or segments of their companies. This programme attempts to provide a sound understanding of financial valuation for all users and providers of valuation services and to advance consensus views on some of the more Troublesome aspects of valuation science. The programme also introduces the basics of business valuation, various valuation methods and interpretation of the results of valuation.

TOPICS SPEAKERSValuation – Overview, Approaches and Methodologies CA Ravishu ShahValuation Application CA Pinkesh Billimoria• Valuation for Mergers and Demergers, Small and Medium Enterprises, Investment Entities• Distressed Asset Valuation• Start-up Entities Valuation• ESOP Valuation – Black and Scholes, BinomialValuation of Intangibles CA Aseem MankodiValuation Standards, Valuation Rules, Report writing CA Bhakti Shah

INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah | Vice-Chairman: Kartik Badiani Advisor: Dilip J. Thakkar | Convenors: Rakesh Upadhyaya, Shreyas Shah, Harshal Bhuta

SEMINAR ON TDS U/S 195 ON FOREIGN REMITENCES & EXPATRIATE TAXATION INCLUDING PROCEDURAL ASPECTSTime : 10.00 a.m. to 6.00 p.m.Venue : Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020


Speakers & Subjects will be announced later

BLOCK YOUR DATE


INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah | Vice-Chairman: Kartik Badiani | Advisor: Dilip J. Thakkar RRC Mentor: T. P. Ostwal, H. Padamchand Khincha | Conference Directors: Bhaumik Goda, Shreyas Shah

13TH RESIDENTIAL CONFERENCE ON INTERNATIONAL TAXATION, 2019 – The Grand Bhagwati, SuratVenue : The Grand Bhagwati, Magdalla Circle, Dumas Road,

Surat-395007, Gujarat

Days & Dates: Thursday, 20th June 2019 to

Sunday, 23rd June 2019

Dear Colleagues, The participants of Residential Conference on International Taxation have always shown great interest in fostering the exchange of knowledge in evolving landscape of international taxation. The objective of such an exchange is to delink participants from day to day work and spend quality time in developing skillset on topics which promises to be future of international taxation. In the 13th RRC we will focus on how BEPS and evolving law on international taxation impacts traditional ways of structuring transactions and ways of doing business. Additionally, development of laws on FEMA, PMLA, BMA continues to be steadfast. Special sessions are planned to discuss development on this arena. Following that goal, the 13th Residential Conference on International Taxation will be held on Thursday,

JUDICIAL CORNER SPEAKERSInaugural Address Hon’ble Justice Shri P. P. Bhatt – President ITAT, MumbaiPanel Discussion – International Taxation Panellist: Hon’ble Shri G. S. Pannu, Vice-President ITAT,

Mumbai, CA H. Padamchand Khincha, CA Karishma Phatarphekar & CA Anish Thacker Moderator: CA Ameya Kunte

BEPS and Value Neutrality of Judicial Process Hon’ble Shri Pramod Kumar, Vice-President ITAT, AhmedabadGROUP DISCUSSION PAPERS INCLUDING CASE STUDIES SPEAKERSStructuring of Outbound Investments – Post BEPS Scenario CA Gautam DoshiPermanent Establishment – Past, Present and Future CA H. Padamchand KhinchaKey Transfer Pricing Risks – BEPS Impact CA Sanjay ToliaPAPERS FOR PRESENTATION SPEAKERSAdvance Pricing Arrangements–Practical Aspects and Mock APA Shri Sanjeev Sharma, IRS, CA P. V. Srinivasan and

CA Keval DoshiPrevention of Money Laundering Act – Recent Developments and Experience Dr. Dilip K. ShethPANEL DISCUSSION PANELLISTCase studies on Cross Border Transactions Shri G. C. Srivastava, IRS, Mr. Saurabh Soparkar, Senior

Advocate, Shri S. Ganesh, Senior Advocate, CA T. P. Ostwal, and CA Yogesh Thar

Town Hall Discussion on Issues in FEMA, PMLA and Black Money Act. CA Dilip Thakkar, CA Rashmin Sanghvi, and Dr. Dilip K. ShethAlong with the above technical sessions, we also have entertainment zone, the details of which are as under:

ENTERTAINMENT ZONEInternational Tax Premiere League (ITPL) - Cricket MatchRaas Garba and Dandiya NightTeam Building Activities

We have already crossed 225 registrations. With limited seats left, we have decided to continue accepting the registrations on the basis of early bird fee structure until the seats are available. Interested participants are requested to enrol at the earliest.Fees structure for residential participants is under:

Residential participants – Twin sharing room upto 31st May 2019MEMBERS ` 17,000/- + ` 3,060/- (18% GST) = ` 20,060/-NON-MEMBERS ` 18,500/- + ` 3,330/- (18% GST) = ` 21,830/-

Residential participants – Twin sharing room after 31st May 2019MEMBERS ` 17,500/- + ` 3,150/- (18% GST) = ` 20,650/-NON-MEMBERS ` 19,000/- + ` 3,420/- (18% GST) = ` 22,400/-

Enrolment fees on Non-Residential Basis–for Residents of Surat participants onlyPARTICULARS FEESMembers and Non Members ` 10,000/- + ` 1,800/- (18% GST) = ` 11,800/-

Notes: 1) Sessions on Day 1 (Thursday, 20th June 2019) will start at 2 p.m. Participants are requested to make their travel arrangements accordingly. 2) Enrolment for Non Residential participants will be open only for delegates staying in Surat. 3) Apart from course material and conference fees, NRP will be provided lunch and dinner for all conference days (Lunch on Thursday to Lunch on

Sunday

ENROLL NOW FEW SEATS LEFT

20th June 2019 to Sunday, 23rd June 2019 at The Grand Bhagwati, Surat offering the exciting opportunity for thorough exchange of knowledge and ideas in this important field. Surat is known as Diamond Capital of India and is hub of entrepreneurs in textile Industry. The Grand Bhagwati Surat is known for its excellent food, distinguished hospitality and magnificent banquet space. The organizers of the conference invite all lawyers, chartered accountants, tax professional in industry to participate in high numbers and also encourage junior members to participate in this unique conference.The outline of the topics to be discussed at the conference is as under:


STUDENT ORIENTATION COURSETime : 4.30 p.m. to 8.00 p.m.Fees : Student ` 900/- + ` 162/- (18% GST) = ` 1,062/-

(Inclusive of Student Membership for one year)Venue : Juhu Jagruti Hall, Mitibhai College, JVDP Scheme,

Vile Parle West, Mumbai-400 056

Day & Date: Thursday, 13th, Friday,

14th & Saturday, 15th June, 2019

STUDENT COMMITTEEChairperson: Nishtha Pandya | Vice-Chairperson: Niyati Mankad Convenors: Sachin Maher, Pramita Rathi | Advisor: Ajay Singh

We are pleased to announce Student Orientation Workshop at Western Suburb of Mumbai. The workshop is uniquely designed to acquaint the students in some of the important aspects of article ship. This course would give students a sneak-peek into the nature of work that they would be engaged in during article ship training.

The Objective: - To provide basic knowledge of all the day to day activities at office along with understanding of Subjects in practical manner.Following topics will be covered by Eminent Speakers of our profession

SR. NO. TOPICS FACULTIES

1 Basics Of Income Tax TDS/TCS And Return Filing. Filing of Form 15CA and 15CB CA Ashok Mehta2 Basic Concepts of GST Law (including GST audit) CA Hemang Shah3 Compliances under GST Law (Return filing & Audit Report) CA Sumit Jhunjhunwala4 Soft Skill & Office Etiquettes for CA Students CA Jatin Lodaya5 Company Law - Statutory Audit CA N. Jayendran6 Income Tax Return E-Filing & Rectification CA Kalpesh Katira

INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah | Vice Chairman: Kartik Badiani Convenors: Rakesh Upadhyaya, Shreyas Shah, Harshal Bhuta Advisor: Dilip J. Thakkar

FEMA STUDY CIRCLE MEETING Alongwith Surat RRC DelegatesTime : 6.15 p.m. to 8.00 p.m.Subject : Discussion on upcoming RRC Panel questionsVenue : CTC Conference Room, 3, Rewa Chambers, Gr. Floor, 31,

New Marine Lines, Mumbai-400 020.

Day & Date: Friday, 3rd May, 2019

Tuesday, 14th May, 2019 Tuesday, 4th June, 2019

As you are aware that the 13th Residential Conference on International Taxation is organised by CTC this year at The Grand Bhagwati, Surat.It has been decided by the committee that unlike earlier trend, we shall deliberate and discuss on the issues proposed to be raised in panel discussion to be held at RRC.We have specifically tailored three consecutive study circle meetings which will be on the above subject. We have invited the RRC Delegates to join these three meetings of study circle meeting so that both our own members and delegates are benefitted of the brain storming sessions.We request you to please mark your diaries and make it convenient to attend and participate actively in this study.

Discussion will cover various issues in FEMA covering all the aspects of regulations. Questions will be emailed few days prior to the meeting which will help members to delve upon the issues and result in fruitful discussion at meeting.Please note that, henceforth all notices for meetings of FEMA Study Circle will be sent via email only. If any member wishes to receive notice in hard copy, they may intimate the same to any of the conveners.Kindly ensure to pay annual FEMA study circle fees of ` 1,770/- (inclusive of GST) before attending this meeting. If you have not paid the annual membership fees, you can also attend this session by paying ` 200/- (inclusive of GST) on the spot at CTC office. Kindly note that the above study circle meetings have been kept open for attendance to Delegates of 13th RRC on International Tax even though they may not have enrolled for FEMA Study Circle.

GROUP LEADER CA Vishal Shah CA Hardik Mehta CA Harshal BhutaCHAIRMAN CA Natwar Thakrar CA Manoj Shah CA Naresh Ajwani


DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice-Chairmen: Dinesh Poddar, Abhitan Mehta Convenors: Viraj Mehta, Dharan Gandhi, Nimesh Chothani | Advisor: K. Gopal

HALF DAY SEMINAR ON RECENT CONTROVERSIES AND ISSUES UNDER INCOME TAX ACTTime : 4.00 p.m. to 8.00 p.m.Venue : IMC, Churchgate, Mumbai

Day & Date: Friday, 14th June, 2019

The Income Tax Department stepped-up the efforts to tax illegitimate income. This Financial Year the Tax Department will scrutinizing the return filed pertaining to the previous year in which there was demonetization of high value currency notes. There is a need to refresh the amendments made relating to demonetization and also re-learn the applicability of Section 68 in

light of the recent Supreme Court ruling in the case of NRA Steel. Who should attend the programme?The programme would benefit the Tax Practitioners, Tax Lawyers, Chartered Accountants, Accounting staff and Article clerks pursuing CA or students pursuing law.

TOPICS FACULTYDemonetization & related amendments tax effects. CA Mahendra SanghviSection 68- revisited (in the wake of recent SC and other Judgments) CA Reepal Tralshawala

MEMBERS NON-MEMBERS` 750/- + ` 135/- (18% GST) = ` 885/- ` 900/- + ` 162/- (18% GST) = ` 1,062/-

DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice-Chairmen: Dinesh Poddar, Abhitan Mehta Convenors: Viraj Mehta, Dharan Gandhi, Nimesh Chothani | Advisor: K. Gopal

HALF DAY WORKSHOP ON RETURN FILING PROVISIONS UNDER THE INCOME TAX ACT Time : 3.00 p.m. to 8.00 p.m.Venue : IMC, Churchgate, Mumbai

Day & Date: Friday, 28th June, 2019

There is a need to refresh the amendments applicable to A.Y. 2019-20 under the Act before the return filing season gains momentum. The department has notified the return forms for the A.Y. 2019-20 and the returns now require additional information which has to be provided by the assessee.Professionals face several issues in filing income tax return and CPC Bangalore is issuing notices u/s. 139(9) due to defective filing of return and even automated intimation u/s 143(1) are received

making adjustments proposed u/s. 143(1)(a) which are not factually & legally correct.Correct filing of return is important as otherwise penal provisions are attracted.Who should attend the programme?The programme would benefit the Tax Practitioners, Tax Lawyers, Chartered Accountants, Accounting staff and Article clerks pursuing CA or students pursuing law.

TOPICS FACULTIESAmendments relevant for filing Return of A. Y. 2019-20 and Legal Aspects of Filing Income Tax Return

CA Nihar Jambusaria

Aspects of e-filing of return and the changes in the new Income Tax Returns notified for A.Y. 2019-20.

CA Avinash Rawani

Interaction with Income Tax Authority (CPC) on issues faced in return filing and E-processing Senior CBDT Officials from CPC, Bengaluru & Ghaziabad

Upto 31st May, 2019MEMBERS ` 750/- + ` 135/- (18% GST) = ` 885/-NON-MEMBERS ` 900/- + ` 162/- (18% GST) = ` 1,062/-STUDENT ` 500/- + ` 90/- (18% GST) = ` 590/-

After 31st May, 2019MEMBERS ` 900/- + ` 162/- (18% GST) = ` 1,062/-NON-MEMBERS ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-STUDENT ` 500/- + ` 90/- (18% GST) = ` 295/-


MEMBERSHIP & PUBLIC RELATIONS COMMITTEEChairman: Sanjeev Lalan | Co-Chairman: Sachin Gandhi | Vice Chairman: Jatin Lodaya Convenors: Premal Gandhi, Darshak Shah | Advisor: Yatin Desai

FULL DAY SEMINAR ON DIRECT TAXES AT NAGPUR (Jointly with Income Tax Bar Association, Nagpur)Time : 10.00 a.m. to 5.30 p.m.Venue : Hotel Centre Point, 24, Central Bazar Road, Ramdaspeth,

Nagpur-440010


TOPICS SPEAKERSPost Demonetization Tax Issues and un explained Cash Credit ( Sec 68 ), un explained Money, Expenditure ( Sec 69 to 69 D , 115BBD, 271 AAC ) Mr. Devendra Jain, Advocate

Section 56 – Burning Issues CA Anish ThackerRestructuring of Firms, Companies , LLP and Private Trusts CA Abhitan MehtaBenami Transactions and Prevention of Money Laundering Act Mr. Ajay Singh, Advocate

FEES Members: ` 1,500/- + ` 270/- (18% GST) = ` 1,770/- Non-members: ` 1,750/- + ` 315/- (18% GST) = ` 2,065/-

FOR REGISTRATION PL CONTACT AT NAGPUR• CA RAJESH LOYA : (Mobile No. 9823062247) • CA VIJAY AGRAWAL : (Mobile No. 9373106071)

• ADV. MANOJ MORYANI : (Mobile No. 9422807066)

INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah | Vice Chairman: Kartik Badiani Convenors: Rakesh Upadhyaya, Shreyas Shah, Harshal Bhuta Advisor: Dilip J. Thakkar

5TH INTERNATIONAL STUDY TOUR Central Europe - Saturday, 25th May, 2019 to Wednesday, 5th June, 2019 (11 Nights/12 Days) Visiting Austria, Slovenia, Croatia, Hungary

Dear Members, Thank You

for overwhelming response


PUNE STUDY GROUP Convenor: Sachin Sastakar | Co-ordinators: Sunil Vaidya, Ameya Kunte, Mehul Shah

CONTEMPORARY ISSUES IN BENAMI TRANSACTION LAW AND PREVENTION OF MONEY LAUNDERING ACTTime : 10.00 a.m. to 1.00 p.m.Speaker : Mr. Ashwani Taneja, AdvocateVenue : ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road,

Next to Atur Centre, Pune-411 016

Day & Date: Saturday, 11th May 2019

FEES Free for Pune Study Group MembersNon study Group Member: ` 500/- (inclusive of GST)

FULL DAY SEMINAR ON CONTENTIOUS ISSUES IN REAL ESTATE RELATED TRANSACTIONSTime : 9.30 a.m. to 4.30 p.m.Venue : ELTIS, Plot No. 419, Model Colony, Gokhale Cross Road,

Next to Atur Centre, Pune-411 016

Day & Date: Wednesday, 15th June 2019

FEES Free for Pune Study Group MembersNon study Group Member: ` 1,000/- (inclusive of GST)

TOPICS SPEAKERSRelevant provisions of FEMA Eminent FacultyRelevant Provisions of RERA CA Shreedhar PhathakPanel Discussion - Triveni Sangam – Confluence and divergence of Accounting, Income Tax and GST

i. Accounting - CA Jayesh Gandhiii. Income Tax - CA Yogesh Thariii. GST - CA Parind Mehtaiv. Moderator - CA Anish Thacker

COMMERCIAL & ALLIED LAWS COMMITTEEChairman: Rahul Hakani | Vice-Chairman: Ranit Basu Convenors: Nihar Mankad, Loshika Bulchandani, Shilpa Thakar | Advisor: Pravin Veera

SEMINAR ON ISSUES RELATED TO IBC AND RESOLUTION OF DISTRESSED ASSETSTime : 9.00 a.m. to 6.00 p.m.Venue : IMC, Churchgate, Mumbai-400 020


FEES MEMBER NON MEMBERUp to 10th June, 2019 ` 1,750/- + ` 315/- (18% GST) = ` 2,065/- ` 2,000/- + ` 360/- (18% GST) = ` 2,360/-After 10th June, 2019 ` 2,000/- + ` 360/- (18% GST) = ` 2,360/- ` 2,500/- + ` 150/- (18% GST) = ` 2,950/-

SR. NO. TOPICS

1 Key note Address / Panel Discussion on Resolution of Distressed Assets2 • Key Legal Issues in respect to distressed Asset • Discussion on the Impact of Landmark judgments. • Going concern in

liquidation. • Group insolvencies3 My journey as IRP: Critical analysis: Risk, Rewards and Indemnity for the Resolution Process mandated under the code.4 Bidding plans / preferential / undervalued / extortionate / fraudulent transactions.

Role of other professional like Forensic Auditors etc5 IBC – Tax Challenges6 Investment opportunities in M&A and stressed Assets and Management Buy-outs under IBC.

The Seminar will be addressed by Eminent Faculties.

CORPORATE CONNECT COMMITTEE Chairman: Paras K. Savla | Vice Chairman: Jiger Saiya Convenors: Vitang Shah, Saumil Saparia Advisor: Sujal Shah


DELHI CHAPTER COMMITTEEChairman: Suhit Aggarwal | Vice-Chairman: Vijay Gupta Advisors: V. P. Verma, C. S. Mathur

INTERNATIONAL TAXATION COMMITTEEChairman: Rajesh P. Shah | Co-Chairman: Rajesh L. Shah Vice Chairman: Kartik Badiani Convenors: Rakesh Upadhyaya, Shreyas Shah, Harshal Bhuta | Advisor: Dilip J. Thakkar

TWO DAYS CONFERENCE ON FEMATime : 9.30 a.m. to 6.00 p.m.Venue : India International Centre, Lecture Room I, Annexe

Building, New Delhi-110003

Day & Date: Friday, 3rd & Saturday,

4th May, 2019

FEES MEMBER NON MEMBER STUDENT

` 3,000/- + ` 540/- (18% GST) = ` 3,540/-

` 3500/- + ` 630/- (18% GST) = ` 4,130/-

` 2,250/- + ` 405/- (18% GST) = ` 2,655/-

SR. NO.

TOPICS SPEAKERS

1. Inaugural & Keynote Address Mr. Rahul Sinha, General Manager, RBI, FED Dept., New Delhi

2. Overview of FEMA, Important definitions, Structure of the Act, Rules and Regulations, Capital and Current Account transactions; Residential status

CA Manoj Shah

3. Various remittances available to resident individual/ person and FEMA from Auditors perspective

CA Rajesh P. Shah

4. Borrowings and lending in Rupees and Foreign Exchange Mr. Piyush Bhatia, ICICI Bank

5. Presentation & Brains’ trust session by RBI Officials, Foreign Exchange Dept., New Delhi

Ms. Madhu Dwivedi, Assistant General Manager, FED CO Cell, RBI, New DelhiMr. Satpal Singh, Assistant General Manager, FED CO Cell, RBI New DelhiMr. Kishore Kumar Vazirani, Assistant General Manager FED CO Cell, RBI, New Delhi

6. Procedures & Regulations for Purchase and Sale of Immovable Properties in India & Outside India

CA Vijay Gupta

7. Law & Procedure relating to Penalty & Prosecution by Enforcement Directorate Relating to FEMA Violations

Mr. R. K. Handoo, Senior Advocate

8. Foreign Direct Inbound Investment - FEMA 20(R)/Schedules 1 to 9 CA Anup P. Shah

9. Practical Case Studies and Issues under Outbound Investments CA Paresh P. Shah

10. Recent Trends and Experience on Compounding of Offences under FEMA CA Deependra Kumar Agrawal


IT CONNECT COMMITTEE Chairman: Dinesh Tejwani | Vice-Chairperson: Maitri Chheda Convenors: Uday Shah, Amit Salla

TECHNOLOGY CLINICTime : 5:30 p.m. to 8.00 p.m.Venue : CTC Conference Room, 3, Rewa Chambers, Ground Floor,

31, New Marine Lines, Mumbai-400 020

Day & Date: Wednesday, 29th May, 2019

FEES MEMBER` 300/- + ` 54/- (18% GST) = ` 354/-

Panelists CA Dinesh Tejwani CA Maitri Chheda CA Uday Shah CA Mitesh Katira CA Pranay Kochar CA Anand Puarana Moderator : CA Amit Salla

Purpose Our members look for technology tools and solutions to help them run their practice more efficiently. For this purpose they try to seek advice from trusted / known sources.So we have planned this clinic where members can get solution to their technology issues and challenges.

Format Members registering for the event will have to send their query in advance via emailDuring the event, the member can narrate the query which will be replied by one/more panellists. If time permits, some impromptu queries can be take up

Restricted to 35 Participants Only.

MEMBERSHIP & PUBLIC RELATIONS COMMITTEEChairman: Sanjeev Lalan | Co-Chairman: Sachin Gandhi | Vice Chairman: Jatin Lodaya Convenors: Premal Gandhi, Darshak Shah | Advisor: Yatin Desai

FULL DAY SEMINAR ON DIRECT TAXES AT AMRAVATITime : 10.00 a.m. to 05.30 p.m. Venue : Diamond Hall, Hotel Grand Mehfil, Camp,

Amravati

Day & Date: Saturday, 4th May, 2019

FEES (Including GST, Breakfast, Lunch, High Tea & Study Material, if any)

MEMBER NON MEMBER` 1,500/- for TBA and CTC Members ` 2,000/-

The details of Seminar will be as under:TOPICS SPEAKERSInauguration Mr. Kishor Dewani, Senior Advocate, NagpurPost Demonetisation Tax Issues – Sec 115BBE and Penalty u/s. 271AAC along with principles for applicability of Ss. 68, 69, 69A and 69B and overview of penalty u/s. 270A

CA Jagdish Punjabi

Section 56 – Burning Issues Mr. Dharan Gandhi, AdvocateRestructuring of Firms, Companies, LLP and Private Trusts CA Abhitan MehtaBenami Law – An Overview and Selected Issues CA Jagdish Punjabi

FOR REGISTRATION PLEASE CONTACT AT AMRAVATI1. CA Nilesh Lathiya (Mobile No: 9422157355) / 2. CA Lalit Tambi (Mobile No: 9422683388)


STUDY CIRCLE & STUDY GROUP COMMITTEEChairman: Ashok Sharma | Co-Chairman : Dilip Sanghvi | Vice-Chairman : Sanjay Choksi Convenors: Dinesh Shah, Ujwal Thakrar, Tanmay Phadke | Advisor: Mahendra Sanghvi

STUDY CIRCLE & STUDY GROUP COMMITTEEChairman: Ashok Sharma | Co-Chairman : Dilip Sanghvi | Vice-Chairman : Sanjay Choksi Convenors: Dinesh Shah, Ujwal Thakrar, Tanmay Phadke | Advisor: Mahendra Sanghvi

STUDY GROUP MEETING (For SG Members only)Time : 6.15 p.m. to 8.00 p.m.Subject : Recent Judgments under Direct TaxesGroup Leader : CA Yogesh TharVenue : Babubhai Chinai Hall, 2nd Floor, IMC, Churchgate,

Mumbai-400 020

Day & Date: Thursday, 13th June, 2019

STUDY CIRCLE MEETING (For SC Members only)Time : 11.00 a.m. to 1.30 p.m. Subject : Important Issues on ICDSGroup Leader : Mr. K. K. Chythanya, AdvocateVenue : Banquet Hall, Ground Floor, Dadar Club, Lane No. 3,

Lokmanya Tilak Colony, Near BAPS Shri Swami Narayan Mandir, Dadar East, Mumbai-400014

Day & Date: Saturday, 22nd June, 2019

COMMERCIAL & ALLIED LAWS COMMITTEEChairman: Rahul Hakani | Vice-Chairman: Ranit Basu Convenors: Nihar Mankad, Loshika Bulchandani, Shilpa Thakar | Advisor: Pravin Veera

DIRECT TAXES COMMITTEEChairman: Devendra Jain | Vice-Chairmen: Dinesh Poddar, Abhitan Mehta | Convenors: Viraj Mehta, Dharan Gandhi, Nimesh Chothani | Advisor: K. Gopal

WORKSHOP ON THE NEW BENAMI LAW AND PREVENTION OF MONEY LAUNDERING ACTTime : 09.00 a.m. to 5.00 p.m.Venue : Hotel West End, Terrace Hall, Churchgate, Mumbai-400 020


After a very successful seminar on the new Benami Law last year, the Commercial and Allied Laws Committee and Direct Tax

Committee are coming out with a workshop on the new Benami Law as well as the Prevention of Money Laundering Act.

SR. NO. TOPICS

1 Evaluation of the implementation of the new Benami law in the country: whether it is meeting its objective2 Practical Issues arising out of actions taken by the Benami law implementation agencies3 Handling and representation of the proceedings before the Initiating Officers(IO):4 Representation before the Adjudicating Authority5 Filing of Appeal and Representation before the Appellate Tribunal6 Any distinction in approach followed by IO, AA and the Tribunal in deciding the issues and accordingly whether there should

be difference in approach to be followed by the affected parties

The Fees and speakers will be announced shortly.

BLOCK YOUR DATE


NOTICE OF THE NINETY SECOND ANNUAL GENERAL MEETING

Notice is hereby given that the Ninety Second Annual General Meeting of THE CHAMBER OF TAX CONSULTANTS will be held at Garware Club House, Wankhede Stadium, D Road, Churchgate, Mumbai- 400 020 on Thursday, 4th July, 2019 at 4.30 p.m. to transact the following business:

1. To read and adopt the minutes of the previous (91st) annual general meeting.

2. To consider the Annual Report of the Managing Council for the year 2018-19.

3. To consider and adopt the annual audited accounts for the year ended 31st March, 2019.

4. To appoint auditors and fix their honorarium for the year 2019-20.

5. To announce the results of the elections of President and fourteen Members of the Managing Council.

FOR AND ON BEHALF OF THE MANAGING COUNCIL

Sd/-

Place : Mumbai Anish M. Thacker / Parag S.Ved

Dated : 22nd April, 2019 Hon. Jt. Secretaries

Office : 3, Rewa Chambers, 31, New Marine Lines, Mumbai – 400 020.

Notes:

1. As per the decision taken at 86th Annual General Meeting, Annual Report would be circulated in electronic form. It shall also be available on the Chamber’s website after 6th June, 2019. Any member desiring physical copy can send written request and get it collected from Chamber’s office after 6th June, 2019. Alternatively, a member can also send a written request for dispatch to him/her by post or courier.

2. If there is no quorum by 4.30 p.m. the meeting will be adjourned for half an hour and the members present at such adjourned meeting shall form the quorum.

3. The members desiring to raise queries are requested to send their queries, in writing, if any, on the Statement of Accounts and Annual Report for the year 2018-19 to the Hon. Jt. Secretaries at least four working days before the day of the Annual General Meeting.

4. The AGM will be followed by the release of the CTC’s publications and the felicitation of the winners of the Dastur Essay Competition.


RENEWAL NOTICE – 2019-20Dear Members,

SUB: PAYMENT OF ANNUAL MEMBERSHIP FEES FOR 2019-201st April, 2019

It’s our privilege to have been of service to you over the years. We truly appreciate and value your association. It’s time to renew annual membership and subscription of The Chamber’s Journal, Study Group and Study Circle Meetings and other subscription of The Chamber of Tax Consultants (“The Chamber”). The renewal fees for Annual Membership, Study Group and Study Circle and other Subscription for the financial year 2019-20 falls due for payment on 1st April, 2019. We thank you for your subscription. Your involvement is important and very much appreciated. We hope you will always continue to support The Chamber in its activities and growth as done in the past.Thanking You,For the Chamber of Tax Consultants

CA Ketan L. Vajani Hon. Treasurer

Sr. No.

Particulars Fees GST @18% Total

I MEMBERSHIP FEES (YEARLY - RENEWAL) 1 ORDINARY MEMBERSHIP FEES 2,200 396 2,5962 ASSOCIATE MEMBERSHIP FEES 5,000 900 5,9003 STUDENT MEMBERSHIP FEES 250 45 295II CHAMBER'S JOURNAL SUBSCRIPTION - YEARLY (HARD COPIES) 1 JOURNAL SUBSCRIPTION - LIFE MEMBERS 1,200 0 1,2002 JOURNAL SUBSCRIPTION - NON MEMBERS 2,100 0 2,1003 JOURNAL SUBSCRIPTION - STUDENT MEMBERS 700 0 700

III CHAMBER'S E-JOURNAL SUBSCRIPTION (SOFT COPIES) 1 E-JOURNAL SUBSCRIPTION - LIFE MEMBERS (YEARLY) 700 126 8262 E-JOURNAL SUBSCRIPTION - NON MEMBERS (YEARLY) 1,000 180 1,1803 E-JOURNAL SUBSCRIPTION - STUDENT MEMBERS (YEARLY) 700 126 8264 E-JOURNAL SUBSCRIPTION - SINGLE JOURNAL 200 36 236

IV ITJ SUBSCRIPTION1 INTERNATIONAL TAX JOURNAL SUBSCRIPTION 2,000 0 2,000V STUDY CIRCLES & STUDY GROUPS (RENEWAL)1 STUDY GROUP (DIRECT TAXES) 2,200 396 2,5962 STUDY CIRCLE (DIRECT TAXES) 1,750 315 2,0653 STUDY CIRCLE (INTERNATIONAL TAXATION) 1,500 270 1,7704 STUDY CIRCLE (INDIRECT TAXES) 2,000 360 2,3605 STUDY CIRCLE (ALLIED LAWS) 1,500 270 1,7706 SELF AWARENESS SERIES 600 108 7087 INTENSIVE STUDY GROUP ON DIRECT TAX 1,750 315 2,0658 FEMA STUDY CIRCLE 1,500 270 1,7709 STUDY GROUP ON ACCOUNTING & AUDITING (Refer Note below) 1,800 324 2,124

10 CAPITAL MARKET STUDY CIRCLE (Refer Note below) 1,800 324 2,12411 PUNE STUDY GROUP 3,500 630 4,13012 BENGALURU STUDY GROUP 4,200 756 4,956

(Note: 10% Discount applicable for the registration of 3 or more Study Circles & Study Groups) NOTES:1. The Managing Council has decided to extend rollover benefit for one year to the Members of the following Study Circles

a) Intensive Study Group on IND-AS (Renamed as Study Group on Accounting & Auditing)b) Capital Market Study Circle

Accordingly those members who have enrolled for these Study Circles in F.Y. 2018-19 need not renew their subscription for F.Y. 2019-20.2. Members are requested to visit the website www.ctconline.org for online payment.3. Payments should be made by Account Payee Cheque/Demand Draft in favour of “THE CHAMBER OF TAX CONSULTANTS”. Outstation members are requested to send payments

only by “Demand Draft or At Par Cheque”.4. A consolidated Cheque/Draft may be sent for all payments.5. Please also update your Mobile number & e-mail address to ensure receipt of regular updates on activities of The Chamber.6. Please write your full name on the reverse of Cheque/DD.7. Kindly pay your membership fees by 31st May, 2019 for uninterrupted service of the Chamber’s Journal.8. Members are requested to download the Renewal Form from Chamber’s website www.ctconline.org9. Renewal Notices has been sent separately and members are requested to fill up the same and send it to The Chamber’s office along with the cheque. 10. Renewal Notice contains entire information of Members as per CTC database. In case of any change in information of Member as shown in form, kindly provide updated information

along with the form.


UNREPORTED DECISIONS OF TRIBUNAL By Ajay R. Singh, Advocate

1. S. 37(1) - Business expenditure - Asset Management Company of Mutual Funds due to business exigencies claims and recovers from Mutual Funds lesser amount than amount of expenditure, fees, etc., actually incurred during course of its business [as allowed under SEBI Regulation], then, unless it is established that there were no business exigencies or claim was not genuine, expenditure cannot be disallowed.

The assessee is engaged in the business of asset management and investment advisory services. During the year the assessee has launched NFOs on behalf of various clients. The AO observed that the expenses incurred in relation to launching of equities and NFOs on behalf of the above companies cannot be treated as expenses of the assessee as the said expenses were liability of the Mutual funds entities on whose behalf the assessee launched the NFOs. Accordingly, the AO disallowed the excess of expenditure as incurred by the assessee over and above the SEBI limit to the tune of ` 85,43,750/-.

The ITAT held that the SEBI Regulations specify the limit beyond which the companies on whose behalf the NFOs are launched cannot be exceeded and therefore the expenses in excess of the said SEBI limit of ` 85,43,750/- was claimed by the assessee as expenses incurred in the ordinary course of business u/s. 37(1) of the Act. The Ld. CIT(A) recorded a finding of facts that said expenses were incurred by the assessee under investment management agreement which provided that the excess expenses incurred over and above the limit specified by the SEBI Regulation shall be borne by the AMC i.e. assessee. In view of the same , the expenses are incurred by the assessee in the ordinary course of business as the assessee is in the business of providing asset management and investment revisionary services for launching the equity and NFOs on behalf of various clients the assessee. Moreover, it has been specifically agreed between the parties that any expenses incurred in excess of limit specified by the SEBI Regulation shall be borne by the AMC. The Tribunal relied on decision of Hon’ble Bombay High Court in the case of CIT vs. Templeton Asset Management (India) P. Ltd. In the result, the appeal of the Revenue is dismissed.

ACIT-14(2)(2) v M/s. Mirae Asset Global Investment (India) Pvt. Ltd, ITA No.230/Mum/2018, AY 2012-13; Bench: D; DOH: 19/02/2019 (Mum)(Trib)

2. S. 147 : Reassessment - Change of opinion - Assessment completed after enquiry and replies furnished by assesse could not be reopened. [S.148 ]

S. 148 : Reassessment – Notice for reassessment – Recording of reasons –- Reasons recorded cannot be supplemented by detailed reason vide annexure – Reopening is bad in law.

The assessee being resident corporate entity stated to be engaged in financial advisory services, trading and investment in shares was subjected to reassessment proceedings for the impugned AY u/s 143(3) r.w.s 147 on 20/03/2015 by AO wherein the assessee was saddled with certain addition of ` 520 Lacs on account of Share Premium and Share Capital.

ITAT held that the reassessment proceedings have been initiated vide issuance of notice u/s. 148 dated 27/03/2014 which shows that the reassessment have been triggered within a period of four years from the end of the relevant assessment year and therefore, the rigors of first proviso to Section 147 of the Act viz. failure on the part of the assessee to fully and truly disclose all material facts necessary for the assessment, were not applicable to the fact of the present case. The only requirement to be fulfilled in such a case was that Ld. AO had reasons to believe that certain income escaped assessment in the hands of the assessee. The AO was not clinched with any new tangible material so as to initiate the reassessment proceedings against the assessee since upon perusal of records, Ld. AO came to a conclusion that share application money was reflected as Nil in the financial statements as against the information received from the investigation wing that the assessee received certain share premium during the impugned AY. However, the factum of mere receipt of share premium by assessee during impugned AY could not lead to a conclusion that there was escapement of income in the hands of the assessee unless some basic material on record substantiate the same. No prima-facie case was made out by Ld. AO as to how the receipt of share premium constituted unexplained cash credit in the hands of the assessee which has led to escapement of income for the impugned AY.

The revenue has placed on record form for recording the reasons for initiating proceedings under Section 148 and for obtaining the approval of The Addl. Commissioner / Pr. Commissioner of Income Tax along with Annexure containing reasons recorded for re-opening of assessment to submit that detailed reasons were recorded to initiate the reassessment proceedings against the assessee for the impugned AY. However, in our opinion, no cognizance of the same could have been taken in view of the fact that the said approval has been signed by the sanctioning authority


only on 31/03/2016 whereas notice u/s. 148 was already issued to the assessee on 27/03/2014 and re-assessment was framed on 20/03/2015. Secondly, nothing could be placed on record to establish that the detailed reasons recorded by revenue as given in the attached Annexure were ever supplied to the assessee. Therefore, the only reasons recorded for re-opening, which were to be considered so as to adjudicate the jurisdictional issue, were the reasons dated 27/03/2014 as supplied to the assessee. It is trite law that reasons once recorded could not be altered, modified, substituted or amended subsequently so as to justify the reassessment proceedings

The Tribunal concluded that the reassessment proceedings suffered from jurisdictional defect and Ld. AO could not be clothed with second inning to review the already concluded issues in original assessment proceedings. Therefore, the reassessment proceedings could not be sustained under law.

Capri Global Advisory Services Pvt. Ltd. v DCIT-1(1)(1), ITA No. 170/Mum/2017, AY : 2009-10; Bench C ; DOH: 10/04/2019 (Mum)(Trib)

3. S 144C - the assessee a LLP - was not an ‘eligible assessee’ section 144C(15)(b) - Assessing Officer passed a draft assessment order under section 144C(1) - the draft assessment order passed u/s 144C(1) in case of the assessee is invalid.

The assessee claiming itself to be a limited liability partnership (LLP) was incorporated in Germany on 4th September 2012. During the year the Assessing Officer pass a draft assessment order under sub–section (1) of section 144C of the Act.

The assessee submits that, the assessee is not being an “eligible assessee” as defined under section 144C(15) of the Act, the A.O could not have passed the draft assessment order u/s. 144C(1) of the Act. The A.O can pass a draft assessment order under sub–section (1) of section 144C of the Act only in respect of an eligible assessee. The definition of eligible assessee under section 144C(15)(b) of the Act,

it means any person in whose case there is a variation in income as a consequence of order passed by the T.P.O under section 92CA(3) of the Act, and any foreign company. In assessee‟s case neither any variation has arisen as a consequence of an order passed by the T.P.O under section 92CA(3) of the Act nor the assessee is a foreign company as it is a limited liability partnership.

ITAT held that the A.O has neither made any reference to the T.P.O u/s. 92CA(1) of the Act nor the T.P.O has passed a ny order under section 92CA(3) of the Act. Therefore, the variation proposed in the draft assessment order is not as a consequence of any order passed by the T.P.O. Thus, it requires to be seen whether the assessee can fit into the definition of a foreign company as provide du/s 144C(15)(b)(ii) of the Act. As per the definition of foreign company under section 2(23A) of the Act, it means a company which is not a domestic company. Section 2(22A) of the Act defines domestic company to be an Indian Company or any other company which declares and pays dividend within India out of its income. Whereas, from the documentary evidences placed before us including the return of income filed by the assessee as well as the residency certificate issued u/s. 10F of the Act, it is seen that the status of the assessee has been shown as limited liability partnership. In fact, the Department has allotted PAN to the assessee in the status of a partnership firm. The definition of firm under section 2(23) of the Act includes a limited liability partnership. The status of the assessee has been shown as firm in the order . Thus, from these facts, it becomes clear that the assessee is not a foreign company but a limited liability partnership. Held that the draft assessment order passed in case of the assessee for the impugned assessment year is invalid. Therefore, all the proceedings consequent thereupon are also invalid.

Maquet Holdings B.V. & Co. KG. v DCIT-3(2)(1), ITA No. 2572/Mum/2017, AY 2013-14 Bench : I ; DOH: 12/04/2019 (Mum)(Trib)

Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS

UNREPORTED DECISIONS (SERVICE TAX) By Vinay Jain & Sachin Mishra, Advocates

1. Whether the Appellants are eligible to avail CENVAT Credit on ‘inputs’, ‘capital goods’ and ‘input services’ used in the construction of mall wherein the input services and capital goods were availed / procured

both prior and post 1.6.2007 i.e. introduction of levy on ‘Renting of Immovable Property Services’?

Facts and Pleading: Deepak Fertilisers & Petrochemicals Corporation Ltd. (hereinafter referred to as the


Note : THE WHOLE DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS

Appellants) have been providing taxable service under the head ‘Renting of Immovable Property Service’ from its mall located in Pune. The Appellants have availed CENVAT Credit on Capital Goods and Input services used in construction of said mall.

Department alleged that Cenvat credit cannot be availed solely on the ground that mall is an immovable property and construction of such mall is neither subjected to service tax nor excise duty.

Appellant contended that Cenvat credit on the capital goods cannot be denied as the credit availed pertains to eligible chapter headings such as Air Conditioners, Escalators, Transformers etc falling under chapter 82, 84, 85 etc. Further, Appellant argued that mall is an immovable property which comes at the intermediate stage and ultimately is used in providing taxable output services. The Appellant have interpreted the definition of “input service” and submitted that the activities relating to setting up of premises of provider of output service also falls within the ambit of input service. The Appellant have relied on Navaratna S.G. Highway Prop. Pvt. Ltd, Vamona Developers Pvt. Ltd, Oberoi Mall Ltd, City Centre Mall Nashik Pvt Ltd cases to substantiate its arguments. Appellant further contended that Cenvat credit on input services received prior to 1.6.2007 also cannot be denied on the ground that as on date of commencement of provision of output services, all the services provided by the Appellant were liable to service tax. Thus, in effect all the services received by the Appellant in constructing the mall have been used in providing output services which are liable to service tax.

Judgement: The Appellate Tribunal while relying on various judgements held that the CENVAT Credit is admissible to the Appellant on the duty paid on capital goods and service tax paid on input services used in the setting up of the Mall. The Court reiterated the findings of City Centre Mall Nashik held that the definition of input service includes service used in relation to set up, premises of provider of output service or an office relating to such premises.

Deepak Fertilisers & Petrochemicals Corporation Ltd. vs. CCE, Pune, CESTAT, Mumbai, decided on 1.4.2019 in the Final Order No. A/85699/2019

2. Whether the services received by the Appellant from M/s Lear Corporation, USA against software usage agreement are in the nature of ‘Management, Maintenance Or Repair service’ as alleged by the Revenue or in the nature of ‘Information Technologies Software Service’ claimed by the Appellant? Whether

the amount received under the said Agreement prior to 01.03.2008 chargeable to service tax under Reverse Charge Mechanism?

Facts and Pleadings: Lear Automotive India Pvt. Ltd. (hereinafter referred to as ‘the Appellant’) entered into an ‘software usage agreement’ with Lear Corporation, USA, wherein the Appellant was allowed usage of the said software. The charges paid by the Appellant for usage of the said software were equivalent to the annual maintenance charges paid by Lear Corporation, USA to its vendors of the software depending on the usage by the Appellant. The Appellant started paying Service Tax on the said services w.e.f. 16.5.2008 under the category of ‘Information Technology Software Service’.

The Department alleged that the services rendered by Lear Corporation, USA to the Appellant being in the nature of ‘support software maintenance’, the Appellant is liable to pay service tax on the amount paid by to Lear Corporation, USA under the reverse charge mechanism.

The Appellant contended that the Appellant is liable to service tax under ‘Information Technology Software Service’ i.e. from 16.5.2008 as the present transaction is in the nature of development of software. The Appellant also contended that the as the services received through internet was taxable only from 1.3.2008, the Appellant is not liable to pay service tax under reverse charge mechanism in view of Rule 3(ii) of the Import of Service Rules, 2006. The Appellant also submitted that in any case, ‘maintenance and repair of computer software’ was not part of ‘maintenance and repair service’ prior to 1.6.2007. Lastly, the Appellant also contended that the present transaction is merely sharing of costs which does not amount to provision of any service.

Judgement: The Hon’ble Appellate Tribunal held that the amount charged to the Appellant is for software maintenance services and not for usage of software per se. The Hon’ble Tribunal further held that there were no evidence in support of the claim of the Appellant that they were required to pay Lear Corporation, USA was not maintenance charges of the software but the charges for usage of software and the services received by the Appellant under the category of ‘Management, Maintenance, or Repair Service’. However, the Hon’ble Appellate Tribunal granted relief on the count that the services received through internet is taxable only from 1.3.2008 in view of Vodafone Cellular Ltd. vs. CCE, Order No. A/91120/2017 dated 30.11.2017.

Lear Automotive India Pvt. Ltd. vs. CST, Mumbai, CESTAT, Mumbai, decided on 8.10.2018 in Final Order No. A/88338/2018


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