[Syed Alwaz Asif is a penultimate year law student at Dr Ram Manohar Lohiya National Law University, Lucknow.] In an era where organizations and governments are inundated with vast amounts of data, the challenge of effectively detecting and preventing tax fraud has intensified. The overwhelming magnitude of information available often surpasses human capacity to discern intricate patterns and...
GST’s New Frontier: Taxability of Corporate Guarantees
[Esha Rathi is a final year B.B.A. LL.B. (Hons.) student at Jindal Global Law School] Parent companies extending corporate guarantees for their subsidiaries is a common practice but has been a subject of debate on whether it can be construed as a taxable service. In July 2023, the Directorate General of Goods and Services Tax Intelligence issued tax demand notices to numerous local corporate...
Capital Reduction: Tax Conundrums
[Sumit Bansal (Partner), Shivani Chhabra (Associate) and Taranjeet Singh (Associate) are with S&R Associates, Advocates] Capital reduction refers to the technique of reducing a company’s share capital in any form. It is a mechanism usually adopted by companies for re-modelling their capital structure, amongst other means (viz., buy-back of shares and redemption of preference share capital)...
Analysing the Tax Implications of Bonus Shares
[Arjim Jain is a 3rd year B.A. LL.B. (Hons.) student at National Law University, Odisha] The ruling in DCIT v. Smt Aruna Chandok rendered on 5 September 2023 by the Delhi Bench of the Income Tax Appellate Tribunal (“ITAT”) has shed light on a crucial aspect of taxation in India – the treatment of bonus shares under the Income Tax Act (“IT Act”). In this landmark decision, the ITAT has...
An Exercise in Smoke and Mirrors: Imposing a “Goods” Tax on Actionable Claims
[Anushka PS is a third-year student pursuing the BA/LLB (Hons.) course from the National Law School of India University, Bangalore] The imposition of tax in the gaming industry is an issue that has long plagued both stakeholders and academics alike. With the Parliament tabling an amendment to the Central Goods and Services Tax Act, 2017 (the ‘CGST Act’) to precipitate the levy of 28% goods and...
A Re-Examination of the First Principles of Sections 28 and 37 of the Income Tax Act: Part II
[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...
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