Request for Clarification on Cross Charge vis-à-vis Input Service Distributor (‘ISD’)

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of the Central Board of Indirect Taxes and Customs (CBIC) on 19th July 2022, seeking clarification on Cross Charge vis-à-vis Input Service Distributor (‘ISD’). In the recent past, AMCHAM members have been grappling with challenges on Cross Charge vis-à-vis ISD, and the widespread uncertainty regarding the relevance and consequent adoption of ISD mechanism. Intent behind the legislation and outcome is same in both methods (Cross Charge and ISD), i.e., to transfer GST to the State to which it pertains. Hence, a request for clarification, stating that cross charge is also a legitimate way to transfer the GST credit. This will avoid unnecessary litigation and burden on judiciary.

Request for Clarification in complying with provisions of Section 194Q and 206C(1H) of the Income tax Act, 1961 (‘Act’)

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of the Central Board of Direct Taxes (CBDT) on 13th July 2022, seeking clarification on complying with provisions of Section 194Q and 206C(1H) of the Income tax Act, 1961 (‘Act’). Finance Act, 2021 introduced provisions relating to TDS on purchase of goods under Section 194Q to cover those transactions which were left uncovered by section 206C(1H) of the Act. With the Contradictions on provision for deduction/collection of TDS/TCS on purchase/sale of goods we requested that only one provision be kept i.e., either 194Q or 206C(1H). The scope of the chosen provision can be widened to achieve the GOI objectives for tracking the transaction

Request for Rationalization of GST Rates (Food Processing Sector)

The Tax, Tariff and Regulatory Affairs Committee at and the Agriculture and Food Processing Committee at AMCHAM made a representation to the Chairman of Central Board of Indirect Taxes and Customs (CBIC) on 12th July 2022, with a request for rationalization of GST Rates in the food processing sector for non-alcoholic beverages and breakfast cereals

Request to preserve the ongoing exemption of Goods and Service Tax (GST) for international air and ocean freight services

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of Central Board of Indirect Taxes and Customs (CBIC) on 8th Sept. 2021, with a request to preserve the ongoing exemption of Goods and Service Tax (GST) for international air and ocean freight services. government’s continued emphasis on promoting exports. We believe that GST on international air and ocean freight will increase business costs for exports. Such a shift in the tax position could result in significant issues for the Indian logistics industry, which in turn will negatively impact Indian exporters, including many small and medium-sized businesses

Request for clarification on export position for IT/ ITeS sector

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of Central Board of Indirect Taxes and Customs (CBIC) on 26th Aug. 2021, with a request for clarification on export position for IT/ ITeS sector. The clarifications were sought on entities being regarded as “merely establishments of a distinct entity” and on services provided by the IT/ITeS sector being regarded as “intermediary services”

Request for deferral of Sections 194Q, 206AB and 206CCA of the Income-tax Act, 1961

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of the Central Board of Direct Taxes (CBDT) on 30th June 2021, with a request for deferral of Sections 194Q, 206AB and 206CCA of the Income-tax Act, 1961. Considering the several concerns highlighted in the representation and in view of the substantial time and effort that would be required to build technical systems and processes to comply with the new requirements, it is humbly requested that the provisions of Section 194Q, Section 206AB and Section 206CCA of the Act are deferred to April 1, 2022