Section 194N Exemption for Foreign Representations: Key Highlights of the New Income-Tax Notification

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  On 28th November 2024 , the Ministry of Finance issued Notification No. 123/2024 , bringing clarity to the applicability of Section 194N of the Income-tax Act, 1961. The notification exempts specified foreign representations from the provisions of this section, reinforcing India's commitment to international diplomatic norms and global cooperation. Effective from 1st December 2024 , this move comes after due consultation with the Reserve Bank of India (RBI) and aligns with international protocols such as the Vienna Convention and the United Nations Privileges and Immunities Act . Understanding Section 194N of the Income-tax Act Section 194N mandates tax deduction at source (TDS) on cash withdrawals exceeding ₹1 crore in a financial year . The provision applies to withdrawals from banks, co-operative banks, and post offices, aiming to curb cash usage and promote digital transactions. Fifth Proviso to Section 194N The fifth proviso grants the Central Government the authority ...
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Simplified Guide to GST Registration for ‘Other Territory’ Applicants

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For businesses and entities applying for GST registration under the ‘Other Territory’ category, it’s important to understand the specific procedures and jurisdictional guidelines established by the GST authorities. Here’s a straightforward guide to help applicants navigate this process seamlessly.

Understanding the ‘Other Territory’ Category in GST Registration

The ‘Other Territory’ category in GST registration is reserved for applicants whose business or activities are located in continental shelf areas and exclusive economic zones (EEZ) of India. These areas are adjacent to both the western and eastern coasts of the country, and selecting the correct jurisdiction is essential for compliance.

Why Is the Jurisdiction Important?

As per the Notification No. 2/2017-Central Tax, dated 19th June 2017, applicants choosing the ‘Other Territory’ option need to select a specific jurisdiction for the GST administration based on their location on either the western or eastern coast. This is necessary for accurate processing and to ensure the correct administrative body handles the application.

Step-By-Step Instructions for Selecting Jurisdiction Based on Location

1. For Applicants on the Western Coast (Mumbai South Jurisdiction)

If your business is located in the continental shelf or EEZ areas adjacent to the western coast of India—covering Gujarat, Maharashtra, Goa, Daman & Diu, Karnataka, Kerala, and Lakshadweep—you’ll need to follow these steps:

  • Commissionerate: Select Mumbai South
  • Division: Choose Division 1
  • Range: Select the range based on the first letter of your business name as follows:
    • Range I: A to D
    • Range II: E to H
    • Range III: I to M
    • Range IV: N to R
    • Range V: S to Z

This allocation helps the GST administration streamline the registration process based on alphabetical distribution.

2. For Applicants on the Eastern Coast (Chennai North Jurisdiction)

For businesses on the eastern coast, including areas adjacent to West Bengal, Odisha, Andhra Pradesh, Puducherry, Tamil Nadu, and Andaman & Nicobar Islands, the following steps apply:

  • Commissionerate: Choose Chennai North
  • Division and Range: Select from the relevant division and range in the dropdown menu that corresponds to Chennai North jurisdiction. This dropdown menu will display options based on your business name’s first letter, making it easy to choose the correct range.

Each range assignment ensures that applications are handled efficiently and administered by the appropriate GST office.

Additional Tips for Accurate Registration

  1. Verify Your Location Category: Ensure that your business is indeed located in one of the specified ‘Other Territory’ regions (continental shelf or EEZ), as this affects your jurisdiction selection.

  2. Use the Dropdown Menus Carefully: For applicants selecting the Chennai North jurisdiction, the divisions and ranges will populate automatically. Be attentive to your selection as per your business name’s starting alphabet.

  3. Refer to Official Trade Notices for Detailed Guidance: The guidelines are provided in Trade Notice No. 01/2017 (Mumbai) and Trade Notice No. 002/2017 (Chennai). You can access the full document for further details here.

  4. Seek Professional Advice if Needed: If you are uncertain about your range selection or jurisdiction, consulting a GST professional or a legal advisor can help ensure accuracy.

Conclusion

Selecting the correct jurisdiction during GST registration under the ‘Other Territory’ category is essential for businesses operating in India’s continental shelf and EEZ regions. By following the location-based guidelines and selecting the right jurisdiction, division, and range, applicants can ensure smooth and compliant processing of their GST applications. This setup not only aligns with GST regulations but also helps avoid delays in the registration process.


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