Introduction Tax practitioners tend to refer to Fee for technical services (‘FTS’) and Royalty income in tandem with an intent to highlight the shape shifting nature of both concepts under domestic and international tax law.… Read More »Fee for Technical Services: Future Demands Answers
Introduction Employee Stock Options (ESOPs) are typically taxable under the IT Act, 1961 in the following two instances: first, at the time of exercise of option by the employee as a perquisite. The rationale is that… Read More »ESOPs-Related Compensation Present an Interesting Dilemma
This article aims to examine in detail a judgment on capital gains tax that continues to have enduring relevance. B.C. Srinivasa Shetty case was decided in 1981 by a 3-Judge Bench of the Supreme Court and its… Read More »Short Note from Tax History: Cost of Acquisition and Capital Gains Tax
GST is a dual nationwide tax implying that both the Union and States concurrently levy it on supply of goods or services. While a single indirect tax jointly administered by the Union and States is… Read More »Single Administrative Interface under GST: Identifying Two Rough Patches
In a recent decision, the Telangana High Court dismissed petitioner’s contention that General Anti-Avoidance Rule (‘GAAR’) cannot be applied by the Income Tax Department since the impugned fact situation is apparently covered by Specific Anti-Avoidance Rule… Read More »SAAR v/s GAAR: Inauguration of an Interpretive Dilemma
In a recent decision, the Kerala High Court upheld constitutionality of Section 16, CGST, 2017, specifically Section 16(2)(c) which restricts the ITC of a purchasing dealer (‘purchaser’) if the supplier has not remitted tax collected from… Read More »Yin-Yang Nature of ITC and Supplier-Purchaser Obligations
In a recent judgment, the Delhi High Court held that Section 71(3A), IT Act, 1961 was constitutional and did not violate Art 14 and/or Art 19(1)(g) of the Constitution. The High Court’s primary reasoning was that… Read More »Section 71(3A), IT Act, 1961 is Constitutional: Delhi HC
Section 54, IT Act, 1961 provides exemption from capital gains tax if an assessee sells residential house and reinvests the capital gains in another residential house. While core of the Section 54 has remained unaltered,… Read More »Section 54, IT Act, 1961: A Short Note on its Evolution
CGST Act, 2017 provides the Commissioner power to arrest under specific circumstances. Section 69, CGST Act, 2017 states that: Where the Commissioner has reasons to believe that a person committed any offence specified in clause (a) or… Read More »Powers of Arrest under GST: Unravelling the Phrase ‘Committed an Offence’
In this article, I elaborate on one of the several changes introduced by Finance Act, 2023 to CGST Act, 2017. Section 17, CGST Act, 2017 was amended via Finance Act, 2023 to clarify that the… Read More »Tax Treatment of Mandatory CSR: Alignment of CGST Act, 2017 and IT Act, 1961