Key highlights of the publication
- Important updates/announcements: An Economic Cooperation and Trade Agreement has been signed between India and Australia. This agreement is expected to significantly enhance the bilateral trade in goods and services and create new employment opportunities in the two countries.
- Key judicial pronouncements: The Supreme Court (SC) has reiterated that the relationship of service provider and recipient is an important aspect to determine the taxability of transactions in case of revenue sharing agreements. The SC has upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), which had ruled that the act of exhibiting cinematographic films on own account is not a provision of service and thus, not liable to service tax.
- Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes (CBDT) has partially modified the faceless assessment and penalty regime. Further, relaxation has been granted for electronic filing of the requisite form for availing concessional tax rate of 22% for domestic companies.