By Vaibhav Chaudhari, Student at Symbiosis Law School Hyderabad
Prices of petrol and diesel are skyrocketing across India, and the prices are nearing the one hundred rupee mark. Even though the rise can be blamed on the rising oil prices in the international market, the high tax rate levied on oil in India is also equally to be blamed. On July 1, 2017, when GST was newly introduced in India, commodities like natural gas, crude oil, petrol, diesel, high speed diesel, electricity and aviation turbine fuel were kept out of the ambit of GST due to the dependence of states on the revenue earned by them through this sector. But amid the rising prices, a viable solution proposed to bring prices down is to put petrol and diesel under the ambit of GST.
Continue reading “Rising Fuel Prices: Is Implementing GST A Viable Solution?”
By Richa Seth and Harshita Gupta
On 3rd May, 2021, the Central Board of Direct Taxes through Notification No. 41 /2021/ F. No. 370142/11/2018-TPL, introduced “Threshold for the purpose of Significant economic presence” under Income Tax Rules, 2021. Now, companies that do not have any actual presence in India but at the same time have been driving a significant amount of financial benefit from Indian Market will be governed under the Indian Tax System.
Continue reading “Navigating the Shifting Landscape of Digital Taxation in India”
By Nikshetaa Jain and Tushar Chitlangia, students at National Law University Odisha
The setbacks created by COVID-19 had major ramifications across the world, and businesses were no exceptions. Due to the lockdowns, the supply chains were disrupted and as a consequence, some parties were not able to perform the contract.
Continue reading “A Continuing Tussle on Taxation Of Liquidated Damages”
Pranav Bafna and CA Priyanshi Chokshi
The Covid-19 pandemic has hemorrhaged balance sheets of business organizations across the board. As money continues to bleed out, limiting the cash outflow is essential to ensure that businesses continue to survive. Alas, a surgical operation on the wounded balance sheet is a must. In this regard, Corporate Restructuring is one of the best tools in the hands of financial doctors to revive a struggling entity.
Undoubtedly, with Corporate Restructuring at the forefront of this battle, M&A’s could be a knight in the shining armor. In this regard, the knight’s armory does have a few chinks, which could stall its progression – Yes, we are referring to “Taxes”.
Continue reading ““Stamping Out” Double Taxation in Mergers &Acquisitions (M&As)”
Aditya Singh Chauhan, Law Student, National Law University, Jodhpur
With heavy tax defaults pilling-up in the recent years, tax authorities have resorted to issuing freezing orders under certain special provisions to freeze bank accounts and directly recover the money. The Assessing Officer (“AO”) or Tax Recovery Officer (“RO”) can make use of section 226(3) of the Income Tax Act, 1961 (“Act”) for this purpose. The aforesaid provision pertains to “Garnishee proceedings”, and allows the tax authorities to attach or collect money directly from the account of the tax payer’s debtor. The Supreme Court of India, while defining the scope of this section, observed “[it] would be applicable only when a money is due to the assesse from any person. Was the amount due to the assesse when the notice dated […] was issued is the question.” However, indiscriminate use of this section can severely impact the reputation and business of the assesse.It has been said that “[t]his is a provision which has to be used sparingly but is now used at the first instance by the assessing officer even in cases where a stay application is pending with various appellate authorities.” This article will explain the process of Garnishee Proceedings under the Act, discuss case laws in relation to freezing orders issued after serving notice under section 226(3) of the Act, and conclude with the instances where freezing orders are illegal or invalid.
Continue reading “Defining Contours Of Freezing Orders Under Section 226(3) Of The Income Tax Act”