Latest Blogs from SBS and Company LLP

    Residence in India - A New Colour by Finance Act, 2020

    As all of you are aware, under the taxation statues, mainly direct taxation, ‘residence’ of a person plays an important and significant role. Many of the direct taxation laws across the globe, stipulate that a person resident in their jurisdiction has to offer all the global income to tax. Being resident of a jurisdiction brings to tax all their income which would have not been subjected to tax if he was not a resident in the first place. Hence, the concept of ‘residence’ is of utmost importance since it has direct bearing on the taxes.

    In the Indian scenario, Section 6 of Income Tax Act, 1961 (for brevity ‘ITA’) deals with ‘Residence in India’. The said section deals with residence of all type of persons namely individual, Hindu Undivided Family, firm, association of persons and company. Of all the lot, we will be dealing with ‘individual’ in the current article. The said article is written in the context of changes to Section 6 brought vide Finance Act, 2020.

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    Decoding MLI

    MLI has come into effect in India from April 2020. MLI provides solutions to the contracting jurisdictions to plug in lacunas and loopholes in international tax treaties by superimposing the provisions into bilateral tax treaties. 

    MLI allows the contracting jurisdictions to implement agreed minimum standards so that all the countries should find it easy to adopt and amend their bilateral treaties by reserving from applicability of certain articles and choosing the options from set of options, to counter treaty abuse, and to improve dispute resolution mechanisms while providing flexibility to accommodate specific tax treaty policies. 

    In this book, we have made a sincere effort to put in to one place the convention, and the explanatory statement to the convention, appropriately stated, crisply and precisely explained with the help of appropriate illustrations for the understanding of the reader.  

    LLP Settelment Scheme and Companies Fresh Start Scheme

    Vide General Circular No.6 of 2020, Dt: 04.03.2020, the Ministry of Corporate Affairs, had introduced the LLP Settlement Scheme, to be effective from 16.03.2020, wherein, it was provided for Limited Liability Partnerships (LLP) to file the pending returns to be filed by the LLPs, without any additional fees.

    Amidst the outbreak of COVID-19, the Ministry of Corporate Affairs has come up with major reliefs to the Companies and LLPs. 

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    Corporate Social Responsbility - COVID Times

    In this Article, an attempt is made to list out the concept of Corporate Social Responsibility, under the Companies Act, 2013, and the recent clarifications/directions from the Ministry, with specific reference to COVID-19.

    The concept of Corporate Social Responsibility (CSR) was introduced by the Companies Act, 2013 (Act) with effect from 01.04.2014.  The provisions of Section 135 of the Act, read with Schedule-VII to the Act, are to be complied with.

    Story of Young Indian - Cancellation of Section 12AA Registration

    The Honourable Delhi ITAT[1] in the matter of Young Indian v CIT (Exemption)[2] has confirmed the rejection of registration under Section 12AA of Income Tax Act, 1961 (Act) with retrospective effect is valid in law. In this article, we discuss the story of Young Indian (YI), the acquisition of Associated Journals Limited (AJL), the non-carrying of any activities of YI and the cancellation of registration of YI with retrospective effect.

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