Insights
The Petitioner1 challenged the order confirming the demand for wrong availment of transitional credit amounting to INR 30,33,615/- along with interest and penalty under section 74 of Central Goods and Services Tax Act [CGST Act]. It was an undisputed fact that the Petitioner had reversed the wrongly availed transitional credit before the issuance of show cause notice.
Vide circular dated 7 June 2024 (Circular), the Reserve Bank of India (‘RBI’) has introduced two important amendments related to investment under Overseas Portfolio Investment (‘OPI’) route. The position prior to introduction of this circular, amendments and its impact are explained below.
On 6th June 2024, Singapore’s Minister of Finance has, in exercise of the powers conferred by section 7(1) of the Income Tax Act, 1947, made the Income Tax (Transfer Pricing Documentation) (Amendment) Rules 2024 and the same has come into operation on 10 June 2024.
Section 168A of CGST Act was inserted vide the Taxation and Other laws (Relaxation and Amendment of Certain Provisions) Act, 2020 which gave power to the Government to extend the time limit in respect of any actions which cannot be completed due to force majeure events such as war, epidemic, flood, draught, fire, cyclone, earth quake or any other calamity caused by nature or otherwise.
