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03/07/2020 - Voice of CA presents - Useful Updates
Friday, July 3, 2020

I. A Useful Talk:

In-Talks with CA Sanjay Agarwal, Past CCM of ICAI and founder “Voice of CA” on our YouTube channel. Our first curiosity was on what motivated him to pursue CA (Please click below link).

[ Contribution by CA. Abhishek Raja Ram]

II. International Taxes Case Law:

1.  Volkswagen Finance Pvt Ltd V. ITO(IT), ITA No. 2195/Mum/2017, Date of Judgement: 19.03.2020, ITAT - Mumbai

Whether payment made by and Indian Company to a Non-Resident entertainer for appearance in an event held abroad, but the purpose of such event was to promote business in India will construe to be business connection of the Non-Resident in India u/s 9(1)(i) of the Act?

Held: Yes

The assessee is an Indian Company which paid $4,40,000/- to Nicholas Cage (a tax resident of USA) for an appearance made by him at Dubai (UAE) in a product launch event of the product Audi A-8L, for promoting business of the assessee in India. Also, the assessee paid other incidentals such as costs of two return first class airline tickets from Los Angeles, costs of stay and local transportation in Dubai, and costs of hair and make-up of the celebrity. In respect of such celebrity appearance the assessee did not withhold any tax from the said remittance. It was found that an entity by the name of Audi India, a division of Volkswagen Group Sales India Ltd, and the assessee jointly planned an event in Dubai for launch of Audit A8L facelift model. As a part of the agreement the celebrity was to be driven into the venue as passenger in the new Audi 8L as a part of the unveil process, engage with the Audi India Director in a short Q&A session, join the Audi India director in socializing with the guests at the event. This model is imported from Germany as a completely built unit with customization in line with customer's requirements. It takes around 4-5 months for cars to be shipped from Germany to India. New model of Audi A8 was available in Dubai and hence the launch event was planned in Dubai for showcasing to potential customers. Audi India a group Co. had flown about 150 people mostly prospective buyers and some journalists to the launch ceremony. Majority of the customers were HNI or existing customers already driving a different variant of the Audi car.

The Hon'ble ITAT held that the business models are constantly evolving, and as the rapid communication modes such as internet and social media have completely transformed the way businesses communicate, it is time that the law is seen in tandem with the ground realities of the business world, rather than in the strict confines of what was decided in the judicial precedents, in the context of a different business world when these ground realities did not exist. Today, virtual and intangible business connections are perhaps far more critical and important than the traditional business connection. Moreover, once the expenses for holding this event is in connection with business in India, it is only a natural corollary that income from participation to a non-resident has a business connection in India u/s 9(1)(i) of the Income Tax Act, 1961.

(Please click here for judgment)   

[ Contribution by CA. Rishabh Agarwal]

III. GST Case Law: 

1.  Prasar Broadcasting Corporation of India (All India Radio), Shimla, Advance Ruling No. HPGST-    /2019-10 Dated: 19-05-2020

Facts of the Case

The Applicant  is a public service broadcaster. The taxpayer avails services of    hiring taxis for  the undermentioned purposes:

To pick up/ drop shift duty-staff in odd hours.

This facility is being provided in odd hours to lady-employees, handicapped & general employees.

Taxis are hired for tour/OB recordings etc. within the state of Himachal Pradesh on different occasions.

Taxis are also hired to drop shift staff at High Power Transmitter during morning/ evening & for office work during day time.

The question raised by the applicant is whether input tax credit is available to the applicant on the services availed for the aforementioned items through contractors and of GST will be applicable on the same.

The applicable rate of tax renting of cab is 5% (With limited ITC of input services in the same line of business) and 12% with full ITC.

If the transportation facility provided to the employees is not obligatory under any law for the time being in force, then NO ITC is available to the employer.  However if the transportation facility provided to the employees is obligatory under any law for the time being in force, then FULL ITC is available to the employer subject to the conditions laid down in Section 17(5) (b) of The CGST Act, 2017.

(Please click here for Order)

[ Contribution by CA. Vijay Gupta]
IV. Voice of CA collaboration with CallDoc: 

1.  In these testing times of COVID-19, the need of the hour is online doctor consultation. Voice of CA join hands with CallDoc offering free video/audio/chat consultation to all our CA friends on special discounts as well as enjoy the facility of home collection of Covid -19 samples.

Click below link  for the details:

Golden Rules:

  "Be slow in choosing a good person
and much slower while loosing them
because relationship is not an opportunity,
it is a sweet responsibility"


Thanks & Regards


CA. Sanjay Kumar Agarwal

Founder - Voice of CA  






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