Latest Blogs from SBS and Company LLP

    Does NCLT has Right to Recall Orders - A Study on Inherent Powers of NCLT under IBC Laws

    An interesting question has arisen before the National Company Law Appellate Tribunal (for brevity ‘NCLAT’) in the matter of Printland Digital (India) Private Limited vs Nirmal Trading Company[1]. The question involves the rights of the adjudicating authority, that is National Company Law Tribunal (for brevity ‘NCLT’).

    The facts before Hon’ble NCLT, Delhi Bench, were that an application is filed by Nirmal Trading Company, an Operational Creditor against Printland Digital (India) Private Limited [‘Printland’], Corporate Debtor, for commencement of corporate insolvency resolution process. Printland has not filed its reply, even after giving sufficient opportunities. Accordingly, Honourable NCLT has passed the orders wherein the right to file any reply in the said case by Printland ceased to exist.

    SBS Wiki E Journal December 2022

    In this 101st edition, we bring you articles of certain academic nature. The article on ‘GST Implications on Income earned by YouTubers’ deals with the implications under GST laws of income earned by YouTubers located in India. Though the services are treated as export, the exact reason for such export looks confusing and hence our article.

    The next article is on the inherent powers of NCLT while dealing with the  matter under IBC laws. There are instances, where there is a confusion as to what amounts to review and recall. In the article, by using the existing jurisprudence, we have detailed on the inherent powers of NCLT for recall of the order.

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    Summary of DT Decisions

    1. Jaipur Tribunal in the case of Prakash Chandra Mishra[1] - No Equalization levy is deductible when the person running the advertisement (ad), the target audience and the person displaying the ad are all located outside India:

    The Jaipur Tribunal has held that the assessee is not liable to deduct equalization levy (‘EL’) on the advertisement charges paid to a non-resident on behalf of his clients who are non-residents having no Permanent Establishment, where the target audience are also located outside India. In this regard, considerations have been given to the provisions of section 165A of Finance Act, 2016 and section 9 of the ITA[2] where the intent of the statute has been clearly depicted that only those transactions that are having a territorial nexus with India can be covered under the purview of EL.

    Summary of GST Decisions

    1. Delhi High Court in Seema Gupta vs. Union of India & Ors[1] - Renting of Residential Dwelling under reverse charge is challenged especially when the renting is not taken in business account:

    An interesting issue has come up before the Honorable Delhi High Court in the above matter. Seema Gupta, the writ petitioner has challenged the constitutional validity of insertion of an entry in reverse charge notification Entry 5AA in Notification No 13/2017 – CT (R) [inserted by way of Notification No 5/2022- CT (R)].

    Corporate Social Resposibility (CSR) Implementation Taken Seriously

    All are aware that the concept of Corporate Social Responsibility (CSR) was introduced by the Companies Act, 2013 (Act) with effect from 01.04.2014, not a mandatory provision, but over the years, the provisions have been made mandatory and the implementation taken seriously.

    The amendment to the CSR Rules made vide Notification[1] dated 22.01.2021, shows the intensity and the transparency with which the ministry wants the corporates to implement the provisions in letter and spirit. Please refer our CSR articles published in our earlier editions.


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