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No GST input tax credit on "This committee will determine the so is pharmaceuticals, wholesale trade
remission rates which can be the rates and financial services."
CSR expense for advance authorisation license, SEZs

The Gujarat bench of the Authority for and EoUs," Yadav said, adding that the Commenting on higher tax revenue
growth than the overall economic per-
Advance Rulings (AAR) recently held budgeted amount would be provided formance, Bajaj commented combina-
that corporate social responsibility (CSR) thereon. tion of several factors including greater
activities under the Companies (CSR For advance authorisation, SEZs and formalization and improved compli-
Policy) Rules are excluded from the nor-
EoUs, the principle cannot be the same ance are giving a boost to revenues.
mal course of business. Its ruling came as that for units within the domestic Personal income in the country in-
in a case where the applicant was a
tariff area, he said. creased by 62% yoy, reaching Rs 2.88
private limited company, Adama India. lakh crore till September 23 FY 22. This
The AAR said Adama India would not be The scheme for these would likely be indicate better compliance owing to
eligible for input tax credit (ITC) under available by next financial year. Units use of technology and goods and ser-
goods and services tax (GST) laws. within SEZs and EOUs source as much
as 30% of their inputs from the domes- vices tax (GST) data.
If this ruling is followed by GST authori- tic tariff area and industry has been Another official said net tax collections
ties during assessments, it will be a big demanding neutralisation for taxes of central government could exceed
blow to India Inc which, in the backdrop
paid on them for some time. budget target in FY 22 by about Rs 2
of the pandemic, has spent heavily on lakh crore. Thus, the tax collection
CSR activities.
Advance Tax in Q2 grows might covering the additional fiscal
cost of stimulus measures that has
SEZs may get duty refunds 52% been announced.
from next year Advance tax collection increased by
52% year on year during Q2 FY22,
India could offer further concessions to CBDT notifies 'safe harbour'
reaching Rs. 1.72 lakh crore. Mining,
enterprises within special economic manufacturing, and steel are some rates for transfer pricing
zones and export-oriented units to sectors which contributed to the ro- The tax department has notified the
boost the exports sector. The finance
bust performance. In comparison to FY 'safe harbour' rates for FY21 for calcu-
ministry will soon set up a panel to 20, the advance tax collections is up by lation of transfer pricing by foreign
work out details of extending the re- 21%. Tarun Bajaj, revenue secretary, companies in India. Generally, safe
cently announced taxneutralisation said, "The sectors that have done well harbour is defined as circumstances in
scheme - Remission of Duties and Taxes in advance taxes (up to Q2FY22) in- which the tax authority shall accept
on Exported Products (RoDTEP) - to clude steel, manufacturing, mining. the transfer price declared by the tax-
these entities, director-general of for-
Steel is doing even better than FY20, payer to be at arm's length.
eign trade Amit Yadav said.

10 | 2021 | NOVEMBER | BANKING FINANCE