MM TAX CLUB

— In exercise of the powers conferred by sub-section (1F) of section 197A read with clause (34B) of section 10 of the Income-tax Act,1961 (43 of 1961) (hereinafter the Income-tax Act), the Central Government hereby specifies that no deduction of income tax shall be made under section 194 of the Income-tax Act from any income in the nature of dividend paid by any unit of an International Financial Services Centre, primarily engaged in the business of leasing of an aircraft (hereinafter referred as payer) to a company, being a Unit of an International Financial Services Centre primarily engaged in the business of leasing of an aircraft (hereinafter referred as payee) subject to the following

1. The payee shall, -

(i) furnish a statement-cum-declaration in Form No. 1 to the payer giving details of previous year relevant to the assessment year in which the dividend income eligible for exemption under clause (34B) of section 10 of Income-tax Act is payable.

(ii) such statement-cum-declaration shall be furnished and verified in the manner prescribed in Form No. 1 for the previous year relevant to the assessment year in which the dividend income eligible for exemption under clause (34B) of section 10 of Income-tax Act is payable.

The payer shall, -

not deduct tax on payment made or credited to the recipient of such dividend (payee) evolving and implementing appropriate security, archival and retrieval policies.

Explanation.- For the purpose of this notification,

1. “aircraft” shall have the same meaning assigned to it in the Explanation to clause (4F) of section 10 of the Income-tax Act;
   1. “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic after the date of receipt of copy of statement-cum-declaration in Form No. 1 from payee; and
   2.  furnish the particulars of all the payments made to the recipient of such dividend on which tax has not been deducted in view of this Notification in the statement of deduction of tax referred to in sub-section (3) of section 200 of the Income-tax Act, read with the rule 31A of the Income-tax Rules, 1962.

2. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents and the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for

2. Zones Act, 2005 (28 of 2005); and
3. “Unit” shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).

3. This notification shall come into force from 1 st September, 2023

However, the payee is required to furnish Form No. 1 to avail of this exemption.

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman inaugurated the ‘GST Bhawan’, a project for CGST, CX and Customs Office, Agartala, Guwahati Zone under CBIC, at Agartala, Tripura.

The GST Bhawan is an Office complex in the Centre of Agartala City. The project is located at one of the most preferred locations in Agartala. The project sits at Mantri Bari Road, Agartala and has quick and easy access to all the taxpayers. It is also located at a distance of about 10 km from newly created Agartala Airport complex. The inauguration of project in Amrit Kaal during the Azadi Ka Amrit Mahotsav showcases the strength of New India.

In order to ensure adequate availability of Non Basmati White Rice in the Indian market and to allay the rise in prices in the domestic market, Government of India has amended the Export Policy of above variety from ‘Free with export duty of 20%’ to ‘Prohibited’ with immediate effect.

The domestic prices of Rice are on an increasing trend. The retail prices have increased by 11.5% over a year and 3% over the past month.

Export duty of 20% on non-basmati white rice was imposed on 08.09.2022 to lower the price as well ensure availability in the domestic market.  However, the export of this variety increased from 33.66 LMT (Sept-March 2021-22) to 42.12 LMT (Sept-March 2022-23) even after imposition of 20% export duty. In the current FY 2023-24 (April-June), about 15.54 LMT of this variety of rice was exported against only 11.55 LMT during FY 2022-23 (April-June), i.e. an increase by 35%. This sharp increase in exports can be ascribed to high international prices due to geo-political scenario, El Nino sentiments and extreme climatic conditions in other rice producing countries, etc.

Non-Basmati White Rice constitutes about 25% of total rice exported from the country.  The prohibition on export of Non-Basmati White Rice will lead to lowering of prices for the consumers in the country.

However, there is no change in Export policy of Non Basmati Rice (Par Boiled Rice) and Basmati Rice, which forms the Bulk of Rice exports. This will ensure that the farmers continue to get the benefit of remunerative prices in the international market.

The provisional figures of Direct Tax collections up to 09th July, 2023 continue to register steady growth. Direct Tax collections up to 09th July, 2023 show that gross collections are at Rs. 5.17 lakh crore which is 14.65% higher than the gross collections for the corresponding period of last year. Direct Tax collection, net of refunds, stands at Rs. 4.75 lakh crore which is 15.87% higher than the net collections for the corresponding period of last year. This collection is 26.05% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24.

Refunds amounting to Rs.42,000 crore have been issued during 1st April, 2023 to 09th July 2023, which are 2.55% higher than refunds issued during the same period in the preceding year