The taxation when a personal asset is contributed as capital to a partnership firm and the taxation of amounts received when the partner retires from the firm or the firm dissolves is quite a complex one and no straight answers can be found. There are conflicting judgments on the said aspects and one has to carefully study between the lines to make a conscious decision as regards to taxability. In this article, we would like to dwell on the major judgments which have contributed to the resolution (or complexity) of issue.

Read more: Partner vis-à-vis Capital Gains

Opening Remarks:

The acquisition of Flipkart by Walmart has attained considerable attention of media. The deal is to the tune US $ 16 Billion, making Flipkart as most valuable e-commerce marketplace in India. Now that the deal is done, the tax considerations/issues surface, one-after the other, the first being the issue of indirect transfers, which recently came up for consideration in the matter of Tiger Global. In this article, we shall deal with the recent judgment of Authority for Advance Rulings (for brevity ‘AAR’) in the matter of Tiger Global International II Holdings^[1]. After setting out the ruling, taking this as a case study, we shall adventure to list out the favourable and adverse tax positions, position after MLI^[2] and GAAR^[3].

Read more: Indirect Transfers 2.0 - Study on Taxability of Gain on Alienation of Shares

Finance Act, 2020 with an intention to widen and deepen the tax net has expanded the scope of provisions of tax collection at source for sale of goods. The obligation to collect tax at source is applicable only for specified sellers when sales were made to specified buyers, which are dealt at more appropriate place. The new provisions are made effective from 01^st Oct 2020. In this write up, we shall deal with the new provision and obligations under the same.   

Read more: Tax Collection at Source - Sale of Goods

In view of the outbreak of COVID-19, protection and safety of the lives, is the utmost priority, and compliance of the law is secondary, and in this regard, to support and enable Companies and LLPs in India, to address the threat and economic disruptions caused by COVID-19, the Ministry of Corporate Affairs, vide General Circular No.11/2020, Dated: 24.03.2020,  has implemented the following measures to reduce the compliance burden and other risks.

Read more: Article On Special Measures By The Ministry Of Corporate Affairs, In View Of Covid-19 Outbreak