In a case that is seen to have a significant impact on restaurant chains and bakery businesses as well as several industries that rely on the classification of food services under the goods and services tax, the Bombay High Court has said that for now no coercive action will be initiated against Mad Over Donuts by the tax authorities on the disputed classification. The Bombay High Court has also granted the petitioner –Mad Over Donuts (Himesh Foods), the liberty to approach the bench in case any recovery actions are taken by the GST department. In its recent hearing, the Court has also directed the tax department to file its response by March 17. The matter is scheduled for further hearing on March 24. The case pertains to notices for GST sent to Himesh Foods as well as several other donut and bakery chains seeking 18% GST on sale of donuts and bakery items. The challenge arose as these chains contend that GST is to be paid at 5% as the sale of these products fall u...
The Income Tax Department will reportedly have the legal right to investigate your social media profiles, emails, bank accounts, online investments and trading accounts. If tax authorities suspect that you have evaded taxes or have any undeclared assets, cash, gold, jewellery, or other valuables, they can investigate your accounts, according to an ET report. This new provision will come into effect under the proposed Income Tax Bill and will make the process of tax investigations in line with the digital age, the report said, adding that the purpose of this change is to prevent financial fraud, undeclared assets and tax evasion. When can tax officials access your digital information? Under Section 132 of the existing Income Tax Act, 1961, tax officials can conduct searches and seizures if they have credible information that a person is concealing his income, assets or financial records with the intent to evade taxes. Until now, they had the power to break open doors, safes...