Latest Blogs from SBS and Company LLP

    SBS Wiki E Journal Mar 2021

    SBS Wiki E Journal Mar 2021

    In this edition, we bring you an article on the much await judgment by Honourable Supreme Court in the matter of tax withholding obligations for payments for usage of software by residents to non-residents. The decade long litigation, where tax payers argue that the said payments were not in the nature of royalty and where tax authorities claim that payments are in nature of royalty requiring tax payer withholding tax, finally settled in favour of the tax payer. We bring you the article in series of two parts, the first one deals with issues and arguments made by tax payers and tax authorities and in second part, the analysis and conclusions arrived by Honourable Court are discussed.

    The next article is on one of the burning issues in GST law, the applicability of tax on guarantees extended by directors to the company. The tax authorities started claiming that said services are taxable under reverse charge mechanism in the hands of company, where tax payers countered stating that the said services form part of shareholder’s activity and accordingly not taxable. We have to wait and see how the law unfolds in near future.

    I hope that you will have good time reading this edition and please do share your feedback. I will also urge clients to mail us topics or issues on which you want us to deliberate in our future editions, so that we can contribute to the same.

    Key Topics:

    GST

    • IMPLICATIONS ON CORPORATE AND DIRECTORS GUARANTEES TO COMPANIES— A FOOD FOR THOUGHT

    DIRECT TAX

    • COPYRIGHT – REPRODUCTION V-USAGE – MUCH AWAITED JUDGMENT OF DECADE - PART I
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