The ‘landmark’ Calcutta Club verdict changes GST norms for clubs

The Supreme Court has said that service tax need not be charged by clubs for services to its members. The same should hold true for the GST, which replaced service tax

Under tax laws, every now and then, a decision is delivered which gets the “landmark” prefix. Names such as BC Srinivasa Shetty, Bacha F Guzdar and the Azadi Bachao Andolan became familiar because of landmark judgments. The features of landmark decisions are that they resolve an issue in a critical area of the law which has been litigated for ages, are decisive judgments and are invariably given by the Supreme Court.

Recently, the Supreme Court pronounced a landmark judgment under service tax laws in the Calcutta Club case. The decision was that clubs are not entitled to charge, collect and pay service tax on any services made to members. The rationale for the decision was that if there are no members, there is no club and vice-versa. A few years earlier, the Jharkhand High Court gave a similar ruling in a case involving the Ranchi Club.

The Supreme Court followed its earlier decision on the same topic in the case of CTO versus Young Men’s Indian Association, (1970) 1 SCC 462. The necessity for the Supreme Court to rule on this matter arose because of the insertion of Clause (e) in Article 366 (29-A) in the Constitution of India through the 46th Amendment. This clause stated that tax on purchase or sale of goods includes a tax on the supply of goods by any unincorporated association or body of persons to a member for cash, deferred payment or another valuable consideration.

The Supreme Court needed to decide whether the doctrine of mutuality has been done away with by Article 366 (29-A) (e), and whether the ratio of Young Men’s Indian Association would continue to operate even after the 46th Amendment.

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Rules to be notified under the Consumer Protection Act, 2019- comments from Stakeholders on the draft rules

Government of India

Ministry of Consumer Affairs, Food & Public Distribution

(Department of Consumer Affairs)

Krishi Bhawan, New Delhi

The 11th November, 2019

Subject: Rules to be notified under the Consumer Protection Act, 2019- comments from Stakeholders on the draft rules-reg.

The Consumer Protection Act, 2019 was published in the official gazette on 09th August, 2019 for general information. Rules on various topics are required to be notified under the new Act. The Department now proposes to notify the following rules under the Act, the drafts of which are available at the given link:-

Sl. No. Title View / Download
1. Consumer Protection (Central Consumer Protection Council) Rules, 2019  Download
2. Central Consumer Protection Authority (Selection and Term of Office of Chief Commissioner and other Commissioners) Rules, 2019  Download
3. Consumer Protection ( Consumer Disputes Redressal Commissions) Rules, 2019  Download
4. Consumer Protection (Mediation) Rules, 2019  Download
5. Consumer Protection (e-Commerce) Rules , 2019 Download
6. Consumer Protection (Direct Selling) Rules, 2019 Download
7. Consumer Protection (Qualification for appointment, method of recruitment, procedure of appointment, term of  office, resignation and removal of the President and members of the State Commission and District Commission) Rules, 2019 Download
8. Consumer Protection (Salary, allowances and conditions of service of President and Members of the State Commission and DistrictCommission) Model Rules, 2019 Download

Views/comments/suggestions are invited from the stakeholders on the above mentioned draft Rules latest by 02nd December, 2019.The views/comments/suggestions may be sent by email on dscpu-ca[at]nic[dot]in or to Deputy Secretary (CPU), Department of Consumer Affairs, Room No. 461, Krishi Bhawan, New Delhi-110001.

(G.C. Rout)

Deputy Secretary to the Govt. of India

Telefax: 011-23389936
Email: dscpu-ca[at]nic[dot]in

 

https://consumeraffairs.nic.in/draft-rule

Oxfam Inequality Report – 2019

Oxfam Inequality Report 2019: Nine Richest Indians Own Wealth Equivalent to Bottom 50% of the Country While the top 1% own 51.53% of national wealth, the bottom 60% own merely 4.8%

Amitabh Behar, CEO, Oxfam India said:

” It is morally outrageous that a few wealthy individuals are amassing a growing share of India’s wealth while the poor are struggling to eat their next meal or pay for their child’s medicines. If this obscene inequality between the top 1 percent and the rest of India continues then it will lead to a complete collapse of the social and democratic structure of this country.

The report reveals India added 18 new billionaires last year raising the total number of billionaires to 119. Their wealth crossed the US$400 billion (INR 28000 billion) mark for the first time. It rose from US$325.5 billion (INR 22725 billion) in 2017 to US$440.1 billion (INR 30807 billion) in 2018. This is the single largest annual increase since the 2008 Global Financial Crisis.

  • Getting the richest one percent in India to pay just 0.5 percent extra tax on their wealth could raise enough money to increase government spending on heath by 50 percent.
  • Last year, wealth of top 1 percent in India increased by 39 percent whereas wealth of bottom 50 percent increased at a dismal 3 percent.
  • Globally, tax rates for wealthy individuals and corporations have also been cut dramatically. For example, the top rate of personal income tax in rich countries fell from 62 percent in 1970 to just 38 percent in 2013. The average rate in poor countries is just 28 percent.
  • India’s combined revenue and capital expenditure of the Centre and State for Medical & Public Health, Sanitation & Water Supply is Rs 2,08,166 crore (INR 2082 billion), less than the wealth of India’s richest billionaire Mukesh Ambani at Rs 2,80,700 crore (INR 2807 billion).

Here is the executive summary of the report – Click Here

Here is the link to the full report – Click Here