Tag: Taxation
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The Hyatt Judgment and the New PE Paradigm: Form vs. Function in Indian Tax Law
[Shravan Anande is a fourth-year B.A., LL.B. (Hons.) student and Hari Priya Murarikar is a third-year B.A., LL.B. (Hons.) student, both at NALSAR University of Law, Hyderabad] In a significant judgment with wide-ranging implications for international taxation, the Supreme Court of India in Hyatt International (Southwest Asia) Ltd. v. Additional Director of Income Tax has affirmed the existence of a permanent establishment (PE)…
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Dual Tax Dilemma: State of Kerala v Asianet Satellite Communications Ltd
[Surya Gayathri is a 2nd year BA.LLB student at NALSAR University of Law, Hyderabad] On May 22, 2025, a division bench of the Supreme Court comprising Justice B.V. Nagarathna and Justice N. Kotiswar Singh delivered a significant ruling in State of Kerala v. Asianet Satellite Communications Ltd., addressing the constitutionality of dual taxation on broadcasting services. The case arose…
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Settling Regulatory Settlements: A Taxing Tale
[Bhaskar Vishwajeet is a lawyer at a law firm in New Delhi] On April 23, 2025, the Central Board of Direct Taxes issued a Notification that any expenditure incurred in settlement proceedings concerning contraventions under certain laws will not be deemed deductible from the taxable income of a settlement-seeking entity. The Notification exclusively covers only the following legislations:…
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Skoda’s Customs Dispute: Examining Indian Jurisprudence on Automobile Import Classification
[Parv Jain is a 4th-year B.A., LL.B. (Hons.) student at the Institute of Law, Nirma University, Ahmedabad] Late last year, Skoda Auto Volkswagen India Private Limited (‘Skoda’) received the largest tax demand ever issued to an automaker in India, amounting to $1.4 billion. The demand challenges the classification of imported parts at its Aurangabad factory. According to the customs…
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Restricting Carry-Forward of Losses: Analysing Reforms to the Income Tax Act
[Megha Porwal and Manav Pamnani are 3rd year B.A., LL.B. (Hons.) students at the NALSAR University of Law, Hyderabad] The Union Budget presented on 1 February 2025 marks a significant development in the jurisprudence pertaining to direct taxes in India. This is because it introduces a substantial amendment to sections 72a and 72AA of the Income Tax Act, 1961 (IT Act). The Bill proposes the insertion of…