In our earlier version on the captioned subject matter, we have extensively dealt with taxation in the hands of the firm and the partners at the time of admission or dissolution and connected issues therein. We have framed four issues and tried to answer them with the help of judicial precedents on the subject. The article can be accessed here Partner vis-à-vis Capital Gains | SBS Blog. We strongly recommend to read the above article before proceeding to read the subject article.

Read more: Partner vis-à-vis Capital Gain - Version 2.0

In this edition, we bring you the second part of article on the much await judgment by Honourable Supreme Court in the matter of tax withholding obligations for payments for usage of software by residents to non-residents. Hope you have enjoyed reading our first part.

The next article is on issues and vires of time period mentioned under Section 16(4) of Central Goods and Services Tax Act which deals with an outer time limit on availing the credit.

I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

Key Topics:

GST

• ISSUES INVOLVED AND THE VIRES OF TIME LIMIT UNDER SECTION 16(4) FOR AVAILMENT OF CREDIT

INCOME TAX

• MUCH AWAITED JUDGMENT OF DECADE - ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED - PART II

In this edition, we bring you an article on the much await judgment by Honourable Supreme Court in the matter of tax withholding obligations for payments for usage of software by residents to non-residents. The decade long litigation, where tax payers argue that the said payments were not in the nature of royalty and where tax authorities claim that payments are in nature of royalty requiring tax payer withholding tax, finally settled in favour of the tax payer. We bring you the article in series of two parts, the first one deals with issues and arguments made by tax payers and tax authorities and in second part, the analysis and conclusions arrived by Honourable Court are discussed.

The next article is on one of the burning issues in GST law, the applicability of tax on guarantees extended by directors to the company. The tax authorities started claiming that said services are taxable under reverse charge mechanism in the hands of company, where tax payers countered stating that the said services form part of shareholder’s activity and accordingly not taxable. We have to wait and see how the law unfolds in near future.

I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

Read more: SBS Wiki E Journal Mar 2021

This article is on one of the vexatious issues of taxation on the software payments made by residents to non-residents. The said issue was put to an end by the Honourable Supreme Court in the matter of Engineering Analysis Centre of Excellence Private Limited[1] (for brevity ‘EAC’) in favour of the tax payer. Let us proceed to understand the core issues, the history involved surrounding the issue, the arguments by and against tax payer, the analysis by Supreme Court and conclusions therein.

Read more: Copyright - Reproduction v. Usage - Much Awaited Judgment of Decade - Engineering Analysis Centre...