Home GST GST Official Grants Relief for CCI, Dropped Tax Demand Worth INR 7.08 Crores

GST Official Grants Relief for CCI, Dropped Tax Demand Worth INR 7.08 Crores

GST Official Grants Relief for CCI, Dropped Tax Demand Worth INR 7.08 Crores
Big Relief for the CCI Over Service Tax Demand from GST Authorities

The Competitors Fee of India acquired a welcome reduction as GST authorities dropped a requirement for ₹7.08 crore in service tax. The ruling clarified that the regulator isn’t required to register for service tax, negating any legal responsibility for the tax.

The breakdown of the ₹7.08 crore demand contains ₹6.78 crore for service tax, together with training cess, secondary and better secondary training cess, Swach Bharat cess, and Krishi Kalyan cess.

This determination stemmed from a CGST Commissioner audit following an enchantment by the CCI towards a present trigger discover issued by the Directorate Normal of GST Intelligence (DGGI), Delhi Zone.

Again in 2020, the DGGI issued the discover primarily based on an “intelligence report alleging that the CCI hadn’t paid service tax on the charges acquired whereas offering companies to totally different people.

Following an enchantment from the CCI, the Commissioner of CGST and Central Excise, Delhi Audit-1, has now decided that the competitors watchdog is an entity fashioned by an Act of Parliament, and its monetary data bear auditing by the CAG.

The order said that the CCI isn’t obliged to register for service tax, due to this fact no service tax demand exists. Consequently, penalties aren’t relevant when the complete demand is deemed unsustainable, following established authorized rules.

Additional, the latest order highlighted that because the Competitors Fee of India is established by an Act of Parliament and topic to CAG audits, it doesn’t interact in offering taxable companies. Therefore, liabilities associated to non-filing of returns or curiosity don’t come up as a result of absence of sustained service tax calls for.

Earlier, CCI had asserted its position as an authoritative enforcement physique overseeing the Competitors Act, emphasizing that its proceedings are statutory, resembling a tribunal moderately than constituting business financial actions. It underscored that its capabilities align extra with tribunal-like actions moderately than commerce.

Learn Additionally:- Demand Notices to Sectors by GST Authorities Increase Questions

One other argument introduced was that the submitting serves solely for statutory evaluation and enforcement, falling exterior the purview of taxation statutes. Therefore, it was contended that submitting charges shouldn’t be topic to service tax.

Moreover, CCI highlighted that in all worldwide jurisdictions, merger notifications are filed with a payment, and none of those jurisdictions levy service tax on such charges.


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