In this edition, we bring you an article on the most complicated issues in direct taxation, dealing with taxation in cases where there is a change in partnership firms and other specified entities. The said issue gets complicated when the firm tries to settle the partner with a capital asset or stock in trade or money or in a combination thereof. We have written an earlier piece, wherein we have captured the position prior to amendments in Finance Act, 2021. Now, in this piece, we have dealt the amendments with case studies and ending with the re-visiting of conclusions of our previous piece. We request you to read the same and share your views and feedback. We would have definitely missed one or other points, considering the vastness of the topic. We would be glad to cover the same in next editions.

The next article is a comprehensive note on CSR Obligations including the recent amendments to the said regulations.

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.

Read more: SBS Wiki E Journal May 2021

In our earlier version on the captioned subject matter, we have extensively dealt with taxation in the hands of the firm and the partners at the time of admission or dissolution and connected issues therein. We have framed four issues and tried to answer them with the help of judicial precedents on the subject. The article can be accessed here Partner vis-à-vis Capital Gains | SBS Blog. We strongly recommend to read the above article before proceeding to read the subject article.

Read more: Partner vis-à-vis Capital Gain - Version 2.0

In this edition, we bring you the second part of 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. Hope you have enjoyed reading our first part.

The next article is on issues and vires of time period mentioned under Section 16(4) of Central Goods and Services Tax Act which deals with an outer time limit on availing the credit.

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

• ISSUES INVOLVED AND THE VIRES OF TIME LIMIT UNDER SECTION 16(4) FOR AVAILMENT OF CREDIT

INCOME TAX

• MUCH AWAITED JUDGMENT OF DECADE - ENGINEERING ANALYSIS CENTRE OF EXCELLENCE PRIVATE LIMITED - PART II

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.

Read more: SBS Wiki E Journal Mar 2021