The recent judgment of Honourable Supreme Court in Pioneer Urban Land & Infrastructure Limited & Others v Union of India[1] apart from holding the constitutional validity of the amendment made to Insolvency & Bankruptcy Code, 2016 (IBC/Code) vide Insolvency & Bankruptcy Code Amendment Ordinance, 2018 (Amendment Ordinance) has held that
Self Acquired vs Ancestral Property – Supreme Court Answers
One of the most vexed question under the Hindu Law, is, whether a property acquires the character of self-acquired property or ancestral property. This is important because, if the property assumes character of self-acquired, then it falls into the hands of his sons as not coparcenary property, but would devolve
SOFTEX for Non-STPI Units – A Mandatory Requirement
Introduction: The typical model of majority of the IT companies which are engaged in provision of software services to parent/group companies is ‘cost plus mark-up’. Under this model, the Indian companies would agree to provide a host of services to the parent/group companies and bill them on periodical basis on
Mohit Minerals – Recipient of Service – To Be Revisited?
Introduction: In our 45th Volume (April 2018 edition) of our wiki, we have authored an article titled “GST on Shipping Services— the unwarranted turmoil” on GST implications over the services by way of transport of goods by vessel. It has been explained by us that the ocean freight and air
Taxation of Receipts – Extinction of Profit Earning Apparatus
The taxation of a receipt under the Income Tax Act becomes challenging when the said receipt is in the nature of capital as pleaded by tax payer as against revenue by tax authorities. Needless to state, that under the Income Tax Act, 1961 (for brevity ‘ITA’), all revenue receipts are
GST Implications On Development Of Plots
Introduction: This article is a continuation to our article in previous edition. In the previous article, we took up to deal the tax implications on development of plots, wherein, we have identified four transactions which are common to any development agreement: Transaction I – Transfer of Development Rights (TDR) by
All About Dividends & Tax
One of the significant issues that caught everyone’s attention in the recent budget was the amendment to Section 115-O of IT Act[1] which deals with dividend distribution tax (for brevity ‘DDT’), wherein the effect of amendment is that the domestic companies need not pay such DDT for any amount declared,
Payment of certain sums by certain Individuals or HUFs – Section 194M
Finance Bill (No.2) 2019 has inserted a new Section 194M (effective from 01.09.19) which provides deduction of tax at source @ 5% in relation to payment for carrying any work (including supply of labour for carrying out any work) in pursuance of contract or by way of fees for professional
MSME & Internal Audit
Internal audit function has potential to improve operating efficiency and improving the health of the organisation for achieving long-term sustainability for MSMEs What is MSME? Micro, Small and Medium Enterprises (MSME) constitute the backbone of an economy in maintaining an appreciable growth rate and in generating employment opportunities. This sector
Gifts, Discounts, Credits & Impact Thereof – GST
Section 17(5) of Central Goods & Services Tax Act, 17 (for brevity CT Act) deals with blocked credits. The said section starts with non-obstinate clause overriding the general provisions of Section 16 of CT Act which deals with credit entitlements. In other words, despite of the fact that a particular