When the positive list of taxation under service tax laws was done away with the introduction of negative list, a new concept of ‘declared services’ was introduced with effective from 01 July 12. Declared services are list of activities or transactions, which were specifically covered under the definition of ‘service’
Various Issues under Section 50 – Capital Gains – Depreciable Capital Asset
In this article, we shall discuss various issues under section 50 of Income Tax Act, 1961 (‘ITA’) which deals with computation of gain arising from the transfer of depreciable capital asset. Introduction: Section 50 of ITA states that when there is a transfer of capital asset which forms part of
Residential Status and Taxability of Crew Members of a Ship or Aircraft
In our previous articles[1], the concept of deemed residency and various aspects of residency under Section 6 has been discussed in detail. In this part, the concept of determination of residential status of a crew member of a ship or aircraft along with taxability of such person has been dealt
Refund of Unutilised Credit – Closure of Unit – Possibility Thereof
We are all aware that one of the cardinal principles of any taxation regime of any country is that to see that the domestic vendors export services or goods but not the taxes. To neutralise the tax burden borne by the domestic vendors in pursuit of exports, the Government, normally
Insights into Aatmanirbhar Bharat Rozgar Yojana (ABRY)
The Scheme proposes to incentivize employers, registered with Employees Provident Fund Organisation (EPFO), for giving employment to new employees. The Scheme commenced from 1st October 2020 and remain open for registration of eligible employers and new employees up to 31 March 2022. Reference Base: The number of employees with Universal
Various Issues of Residency under Section 6
In our previous article[1], the concept of deemed residency under Section 6 of ITA[2] has been discussed in detail. In this part, various issues related to determination of residential status of an individual are aimed for discussion. As per Section 6(1) of ITA an individual shall be treated as resident:
Rental Income – IFHP vs PGBP vs IFOS – A Challenging Tax Puzzle
One of the mysteries of the 21st Century is the taxation of rental income under the IT Act[1]. The classification of such rental income is quite challenging and garnering a unanimous view among tax practitioners itself is impossible, forget about the authorities and courts. In this article, we try to
Beneficiary in Revocable Transfer vis-à-vis Resident in DTAA & Others – Bombay High Court in Abu Dhabi Investment Authority & Others
The recent judgment of Bombay High Court in the matter of Abu Dhabi Investment Authority[1] is a judgment for many firsts. The judgment is a result of challenge of AAR[2] ruling in Abu Dhabi Investment Authority (for brevity ‘ADIA’). Issue: ADIA is a public institution owned by and subject to
Rectification of GSTR-3B – Supreme Court Decision in Bharti Airtel Limited
The recent judgment of Honourable Supreme Court in the matter of Union of India vs. Bharati Airtel Limited[1] deals with a special circumstance of rectification of Form GSTR-3B. As all of us are aware that Form GSTR-3B is a monthly/quarterly return in which the taxpayer assesses his liability and discharge
The Saga of Refund of Input Services vis-à-vis Inverted Duty Structure – Supreme Court Decision in VKC Footsteps India
The recent judgment of Honourable Supreme Court in the matter of Union of India vs. VKC Footsteps India Private Limited[1] is a bitter pill but much needed one. The said judgment serves as a foundation for the future of the goods and service tax litigation in the country. The much