[Rucha A Vaidya is an Advocate, Bombay High Court. The author would like to thank Mr. Mihir Naniwadekar, Advocate Bombay High Court, for his comments on the earlier draft of this post. Part I is available here] Having considered the facts and the judgments of Shah and Sundresh JJ in PCIT v. Prakash Chand Lunia in the earlier part, this post will analyse the underlying issue concerning sections 28...
A Re-Examination of the First Principles of Sections 28 and 37 of the Income Tax Act: Part I
[Rucha A Vaidya is an Advocate, Bombay High Court. The author would like to thank Mr. Mihir Naniwadekar, Advocate Bombay High Court, for his comments on the earlier draft of this post] This is a two-part post on a judgment of the Supreme Court of India (SC) in PCIT v. Prakash Chand Lunia (24 April 2023), which provides an opportunity for closely examining some of the fundamental principles...
Game On, Taxes Doubled: Unraveling the Dual Taxation Conundrum in India’s Online Gaming Industry: Part II
[Rupam Dubey and Parth Kantak are 3rd-year B.A., LL.B. (Hons.) students at the National Law School of India University, Bangalore This is a continuation of Part I] The preceding segment of this post examined the taxation framework enforced upon the realm of online gaming in India and the dual taxation regime of the Union Government which leads to a situation of double taxation, imposing an unfair...
Game On, Taxes Doubled: Unraveling the Dual Taxation Conundrum in India’s Online Gaming Industry: Part I
[Rupam Dubey and Parth Kantak Mangrish are 3rd-year B.A., LL.B. (Hons.) students at the National Law School of India University, Bangalore] The emergence of affordable internet in India has had a profound impact on the country’s mobile gaming industry. With increased accessibility to the internet, more people have been able to engage in online gaming, resulting in India becoming one of the...
Cross-Border Merger Framework in India: Limited Efficacy?
[Rajat Sethi (Partner), Sumit Bansal (Partner) and Oshika Nayak (Associate) are at S&R Associates] The Ministry of Corporate Affairs (“MCA”) notified section 234 of the Companies Act, 2013, as amended (the “Companies Act”), and rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, as amended (the “Companies Merger Rules”), on April 13, 2017, to permit merger and...
Denying Input Tax Credit to Bona Fide Recipients Where GST is Not Paid by the Supplier
[Shubham Sharma is a 2nd year BBA LLB (Hons.) law student at Chanakya National Law University] A key distinction between GST and the pre-GST tax regime is that GST promises to eliminate the “cascading effect of taxes” or “tax on tax” that sellers often suffer from. Input tax credit (ITC) under GST is one such core concept that furthers this objective. ITC is the tax that a business pays on a...
Interpretation of DTAAs: A Special Case of Explicitly Applying Vienna Convention for Treaty Interpretation
[Shantanu Singh is a 4th year B.A., LL.B. (Hons.) student at Dharmashastra National Law University, Jabalpur] In India, international treaties are not immediately incorporated into domestic law. Under the “dualism” approach, separate legislation is necessary for India to execute treaty-based international law. Treaties, according to Indian courts, are part of public international law and thus are...
The Constitutional Validity of Deeming Fictions Under the GST Law
[Prakruthi Jain is a 3rd year B.A., LL.B. (Hons.) student at NALSAR University of Law, Hyderabad] The Goods and Services Tax (“GST”) was introduced by the 101st Amendment Act in 2016. This was followed by the introduction of the four Acts, i.e., the Central Goods and Services Tax Act (“CGST”), the Integrated Goods and Services Act (“IGST”), the Union Territories Goods and Services Tax Act (UTGST)...
Rethinking Interest on TDS/ TCS Credit under GST Law in India: Part 2
[Manohar Samal is an Associate Advocate at Ratan Samal & Associates, Mumbai and a Panel Arbitrator at the Indian Institute of Arbitration and Mediation. This is continued from Part 1] Current Mechanism for Levy of Interest Now that the basic outline of the GST law in India has been discussed, the manner of levy of interest under the GST statutes can be discussed. The CGST Act, 2017 envisages...
Rethinking Interest on TDS/ TCS Credit under GST Law in India: Part 1
[Manohar Samal is an Associate Advocate at Ratan Samal & Associates, Mumbai and a Panel Arbitrator at the Indian Institute of Arbitration and Mediation] The concept of interest under tax law has been one of the most significant sources of compensating the Government treasury for non-compliance with tax statutes in India. The most common forms of non-compliance for which interest is levied on...
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