Key highlights of the publication:
- Important updates/announcements: The government has amended the Special Economic Zone (SEZ) rules to include the work from home (WFH) employment model. Accordingly, a unit operating in the SEZ may permit its employees to WFH or any place outside the SEZ as per the prescribed guidelines. The WFH facility can be extended to a maximum 50% of the total employees, including contractual employees, of the unit. However, the Development Commissioner is empowered to approve a higher number of employees for any bona fide reason to be recorded in writing.
- Key judicial pronouncements: In a landmark judgment, the Apex Court has directed the government to re-open the Goods and Services Tax (GST) portal for 60 days beginning 1 September 2022, for claiming transitional credits to evaluate the claims pertaining to the pre-GST regime. The decision aligns with the views expressed by various High Courts in similar matters and should provide relief to the taxpayers.
- Important developments in direct taxes: On the direct tax front, the Central Board of Direct Taxes has issued the guidelines regarding tax deduction on the transfer of VDAs. Also, against the popular demand of extending the due date of filing the tax returns on 31 July, the government had decided that there were no compelling reasons to extend the due date this year. Accordingly, around 72.47 lakh returns were filed on the last day out of the total 5.83 crore tax returns filed for FY 2021-22.