In this edition, we have come up with an article on the recently notified provision as to applicability of dematerialization of securities to private limited companies, other than a Small Company. Till now Private Limited Companies were outside the ambit of dematerialization, and if required they on a voluntary basis could get their shares dematerialized. Whereas with amendment to the Companies Prospectus and Allotment Rules, dematerialization of securities is made applilcable to a private limited companies, other than a Small Company. The provisions relating to the amendment, and the process involved and the Point of view for the amendment, forms part of the discussion in the Article.

The next article is on the determination of time limit for passing the assessment order when the case has been referred to transfer pricing officer. When two different sections i.e., section 153 and section 144C deals with the time limit for completion of assessment, there is a room for ambiguity. In this article, interplay between section 153 and section 144C has been discussed.

Lastly, we have also collated certain important judgments under Direct tax and provided our comments wherever necessary.

Key Topics:

COMPANIES ACT

• IMPLICATIONS OF SECTION 185 IN A RELATED PARTY TRANSACTION

INSOLVENCY AND BANKRUPTCY CODE

• ADJUDICATION OF DISPUTES SURROUNDING CLAIMS

INTERNATIONAL TAXATION

• INTERPRETATION OF TAX TREATIES – A STUDY ON ARTICLE 31, 32 AND 33 OF VIENNA CONVENTION ON THE LAW OF TREATIES

SUMMARY OF INCOME TAX DECISION

In this edion, we have come up with an arcle on powers of NCLAT to recall its own Order, and the decision of the 5 member bench of the NCLAT, Principal Bench, was upheld by the Supreme Court.

The next arcle ison scope of taxes covered under the Double Taxaon Avoidance Agreement. The scope of taxes under the Double Taxaon Avoidance Agreement is crucial in determining the amount of credit of taxes, paid in the country of source, that can be claimed in the country of residence. Further, scope of tax plays a vital role in determining the rate of withholding tax under secon 195 of the Income Tax Act, 1961 while reming the amount to a non‐resident.

We have also collated certain important judgments under direct tax and indirect tax laws, provided our comments wherever necessary.

I hope that you will have good me reading this edion and please do share your feedback.

Key Topics:

INSOLVENCY AND BANKRUPTCY CODE

• POWER OF NCLAT TO RECALL ITS ORDERS

DIRECT TAX

• SCOPE OF TREATY – TAXES COVERED UNDER THE DTAA

SUMMARY OF GST DECISION

SUMMARY OF IT DECISION

We bring you this month our anniversary edition. We have completed 14 years and to commemorate this event, we have brought changes to the cover page of the journal. The cover page only has undergone the change but not the content.

For the anniversary edition, we have asked our team members (who never wrote) to contribute to the articles. Everyone has directly or indirectly contributed and the result is the bulky journal on your screen. A big thanks to all the contributors! This edition covers articles which are of great significance and of interest to both corporates and non-corporates.

The article on ‘Game of Skill vs. Game of Chance & A Study on GST Implications on Online Gaming’ focuses on the recent decision of Karnataka High Court in Gameskraft and various court’s interpretation on game of skill vs game of chance. Though the judgment has said the games of skill does not fall under the ambit of GST laws and the expression ‘betting and gambling’ appearing in GST laws covers only games of chance, the recent decision of GST Council to treat the game of skill and game of chance as one for the purposes of GST laws is unwarranted. The GST Council is trying to re-write the settled law and this will be definitely challenged by the industry. Moreover, the taxing of the entire bet value is also unprecedented and will also be subjected to judicial scrutiny.

Read more: SBS Wiki E Journal Aug 2023