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Two Certainities

Articles by Rav Singh

Dividend Distribution or Reduction of Share Capital: DDT’s Long Shadow on Cognizant

Dividend Distribution Tax (‘DDT’) – abolished in April 2020 – was one of the most contested taxes in India as it taxed dividends in hands of companies which distributed dividends. Making companies liable to pay dividend tax was opposite to widely followed classical system of dividend taxation wherein dividends are… Read More »Dividend Distribution or Reduction of Share Capital: DDT’s Long Shadow on Cognizant

Tax Exemption v/s Tax Exemption for ‘Beneficial Purpose’: Interpretive Dilemmas 

The thumb rule in interpreting a tax statute is that it must be strictly construed and any ambiguities in statutory provisions are resolved in favor of the taxpayer. However, the rule relating to interpretation of ambiguities is only applicable for charging provisions or provisions that provide authority to levy tax.… Read More »Tax Exemption v/s Tax Exemption for ‘Beneficial Purpose’: Interpretive Dilemmas 

Rainbow Papers Case and the Art of Misinterpretation

On September 6, 2022, the Supreme Court pronounced its judgment in Rainbow Papers case that unsettled prevailing understanding of the waterfall mechanism under Section 53, Insolvency and Bankruptcy Code, 2016 (‘IBC’). And equally unconvincingly defended the merits of the decision in the review petition further entrenching a position of law that is… Read More »Rainbow Papers Case and the Art of Misinterpretation

Intersection of Trusts, DTAAs, and IT Act, 1961: Profile of ADIA Case

Abu Dhabi Investment Authority (‘ADIA’) is currently embroiled in a tax dispute in India that involves questions about its eligibility to claim tax benefit under India-UAE DTAA, recognition of foreign trusts in India, and interpretation of provisions of IT Act, 1961 on taxability of revocable trusts and their representative assessees.… Read More »Intersection of Trusts, DTAAs, and IT Act, 1961: Profile of ADIA Case

Kerala versus Union: Dispute Lingers 

The dispute between the State of Kerala and Union of India involving disagreement on the latter’s scope of power to restrict debt levels of the former, was referred to a Constitution Bench by the Supreme Court. Previously, I’ve written about the dispute, likely issues, and interpretive questions that Kerala’s petition is likely… Read More »Kerala versus Union: Dispute Lingers 

Including Capital Gains within Scope of Income: A Short Note from Tax History

Provisions to tax capital gains in India’s income tax law were first included in 1947. The Act XII(22) of 1947, amended Income Tax Act, 1922 (‘IT Act, 1922’) – predecessor to India’s current income tax statute, IT Act, 1961 – and expanded the definition of income to include capital gains.… Read More »Including Capital Gains within Scope of Income: A Short Note from Tax History

No Service Tax on Carried Interest: GST Applicability Remains an Open Question

In a recent decision the Karnataka High Court has held that a Venture Capital Fund (‘VCF’) is not liable for service tax on carried interest. The decision reversed Customs, Excise & Service Tax Appellate Tribunal’s (‘CESAT’) ruling which was under appeal. CESAT had held that service tax was payable by the VCF primarily on… Read More »No Service Tax on Carried Interest: GST Applicability Remains an Open Question