Tax INFORM- August 2025

The fifty-fifth issue of our monthly tax newsletter, Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.

The highlights of the current issue are:

Direct Tax:

Domestic Tax Rulings:

• SC dismisses review petition filed by Revenue, thereby upholding Karnataka HC ruling on no TDS for payments by Vodafone Idea to non-resident telecom operators.
• SC upholds Delhi HC ruling that Hyatt has a Permanent Establishment in India under the India-UAE DTAA.
• Bombay HC rules vintage car not a “personal effect,” as no evidence to prove personal use was produced; sale proceeds taxable as capital gains.
• Payments for conducting workshops for employees on performance and career management are not “fees for technical services” under the India–Singapore DTAA: Karnataka HC.
• Delhi HC reads down CBDT Circular on AIF taxation in view of provisions under SEBI Act and Regulations.

Notifications/ Circulars:

• CBDT Circular No. 9/2025, dated July 21, 2025.
• CBDT Circular No. 10/2025, dated July 28, 2025.

Indirect Tax: 

Goods & Services Tax

Case Laws:

• SC rules that passing a final adjudication order under Section 129(3) of the CGST Act is mandatory; payment of penalty cannot be treated as voluntary waiver of appellate rights.
• SC clarifies that summons or searches are not “proceedings” under Section 6(2)(b) of the CGST Act; issues detailed guidelines in case of parallel inquiries by State and Central GST authorities.
• SC disposes writ on GST compliance for overseas OIDAR services; directs petitioner to approach GST Council.
• Andhra Pradesh HC holds that refund of GST on ocean freight cannot be denied on grounds of limitation; Mohit Minerals ruling applies retrospectively.
• SC rules that renewal of a lapsed provisional attachment under Section 83 of the CGST Act is impermissible; directs de-freezing of bank accounts.

Customs Duty

Notifications/ Circulars:

• CBIC Circular No. 20/2025-Customs, dated July 24, 2025.
• CBIC Circulars No. 18/2025-Customs, dated July 22, 2025 and No. 19/2025-Customs, dated July 23, 2025.