Latest Blogs from SBS and Company LLP

    SBS Wiki E Journal April 2024

    SBS Wiki E Journal April 2024

    On this edition, we have come up with an article on  recent judgement of the Hon’ble NCLAT, New Delhi, which has dealt the issue as to whether amounts raised under a Share Subscription-cum Shareholders Agreement, between the parties is amounts to “Commercial Borrowing”, and constitutes a 'Financial Debt', and any default in repayment of the same constitutes “default”, under the Insolvency and Bankruptcy Code, 2016. This is a important judgement, reaffirming the settled position in law in Pioneer Urban Land and Infrastructure Limited and Anr. vs. Union of India and Ors and Kotak Mahindra Bank Limited v. A. Balakrishnan & Anr.

    The next article is on deduction of tax at source under section 194-O of the Income Tax Act, 1961 in respect of e-commerce operations. Section 194-O has been inserted in order to deepen the tax base wherein the e-commerce operator is required to deduct tax source while making payment to e commerce participant. However, there are multiple issues in respect of interpretation and implementation of provisions of section 194-O. In order to remove such difficulties, CBDT has issued Circulars on various instances. In this article, the concept of deduction of TDS under section 194-O has been discussed.

    The next article is on recently amended section 43B (h) of the Income Tax Act, 1961. Section 43B(h) has been inserted in order to safeguard the interest of the micro and small enterprises. In this article, the basics of section 43B(h) and its implications have been discussed.

    We have also collated certain important judgments under direct tax and provided our comments wherever necessary.

    Key Topics:

    • Does Money Raised as a Part of Share Subscription-Cum-Shareholders Agreement be Construed as ‘Financial Debt' under IBC?
    • TDS on Payment By E- Commerce Operator To E- Commerce Participant - An Analysis of Section 194 - O
    • Payments To Micro and Small Enterprises – Section 43B (h)
    • Summary of Income Tax Decisions
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