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Articles

Our attorneys and specialists remain up-to-date with the latest legal developments and offer their perspectives and critical commentary.

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Goods and Services Tax

‘Value addition’ in Value Addition Tax: Extension of limitation period

25 January 2023

Post introduction of GST, the State Governments of Kerala, Gujarat and Telangana have amended their VAT laws with the objective of enhancing the limitation period in different forms. The said extension of limitation period needs to be tested on the touchstone of the Indian Constitution i.e., whether the States continued to possess ‘power’ under the Constitution to levy and administer VAT with the advent of GST law.

Direct Tax

Penalty under Sections 221 & 271C for non-deduction/ short deduction of tax at source

24 January 2023

The article deals with a peculiar issue of simultaneous applicability of two penal provisions being Sections 221 and 271C of the Income Tax Act, 1961, which may be fastened on the assessee for non-deduction/ short deduction of tax at source. The authors for this purpose consider the relevant provisions, applicability of Rule of Double Jeopardy and various judicial precedents on applicability of two penalty provisions for the short deduction of TDS.

Corporate

E-waste (Management) Rules, 2022 – An analysis

19 January 2023

The new Rules will come into force on 1 April 2023 and will introduce recycling targets in the extended producer responsibility (‘EPR’) plan of the producers of e-waste. The article elaborately discusses major changes and the widened scope as compared to the earlier 2016 Rules. The authors discuss the registration requirements, reduction of compliances on bulk consumers, introduction of recycling certificate, introduction of refurbishing certificate and deferred liability, and penal provisions

Intellectual Property

Divisional Applications in India: Part II

18 January 2023

The article further discusses the evolving law around Divisional Applications in India. Analysing two decisions of the IPAB and one of the Delhi High Court, the article notes that the requirement that the claims of a divisional application have to be based on, more particularly, to have their route, or to be gleaned from, or clearly exist in, the claims of the parent application, appears to be a unique one and such a requirement is not seen in other major jurisdictions, such as Europe or USA.

International Trade & WTO

Playing on the wrong side – United States’ Section 232 measures held inconsistent with WTO law

30 December 2022

The WTO Panel has held that USA’s additional duties on imports of steel products and aluminium products are inconsistent with various provisions of the General Agreement on Tariffs and Trade (‘GATT’), most notably the security exception in Article XXI. The article discusses the panel’s key findings concerning the consistency of the US’ measures with GATT Article XXI which enables a WTO Member to take measures which are necessary for the protection of its essential security interests

Goods and Services Tax

Arbitral award: Compensation or consideration

29 December 2022

The article discusses the GST liability on arbitral awards. It notes that though the CBIC Circular No. 178/10/2022-GST, dated 3 August 2022 has paved the way in understanding the GST implications on arbitral awards, determination of the nature of the arbitral award, requires analysis of facts surrounding each case and the terms and conditions of the contract entered between the parties as the awarded amount may not necessarily be in the nature of a compensation.

Direct Tax

Normal and substantial profits – A new yardstick for charitable purpose

23 December 2022

The charitable trusts/institutions enjoy substantial income-tax benefits and hence are often subject to detailed scrutiny to ensure that commercial concerns are kept outside the boundaries of the tax-exempt status. Tracing the evolution of the definition of charitable purpose and its judicial interpretation, the article explains the recent decision of the Supreme Court in the case of Ahmedabad Urban Development Authority. According to the authors...

Corporate

Navigating a workplace investigation

22 December 2022

The article notes that due to subjective nature of the investigations under consideration, there is no set mechanism or strict procedure which needs to be adhered to, for conducting such investigations. The authors however discuss the broad guidelines related to requisition, review and questionnaire, investigation interviews, transcripts, and preparing the investigation report, which aid the investigation team and are to be read along with the internal policies of the concerned organization.

Intellectual Property

Divisional Applications in India: Evolving jurisprudence

19 December 2022

The article discusses elaborately the evolving jurisprudence of Divisional Applications in India. It notes that in India, a divisional application under Section 16 of the Patents Act, 1970 may be pursued to overcome an objection by the Patent Office on the unity of invention, or voluntarily by the Applicant if the claims of the parent Application are directed to more than one invention. Citing a recent decision of the Delhi High Court, the authors note that in India...

International Trade & WTO

OFAC - Insights into the US sanctions regime

01 December 2022

In the previous article , we shed light on the nature and extent of Western sanctions. We explained that among the numerous measures adopted by the Western nations in response to the Russia-Ukraine conflict, unilateral sanctions have been employed as a primary instrument to economically penalize Russia and its allies such as Belarus.

Customs

Export duty on iron ore and steel intermediaries – An industry perspective!

25 November 2022

The Government has with effect from 19 November 2022 rolled back export duty on iron ore pellets and steel products, including pig iron, flat-rolled products of carbon steel and stainless steel, bars, rods and non-alloy steel, vide Notification No. 58/2022-Customs, dated 18 November 2022.

Corporate

Company Secretary whether liable for misleading financial information given by a company

24 November 2022

In V. Shankar v. SEBI , the company secretary (CS) of Deccan Chronicle Holding Limited (‘DCHL’) was absolved by Securities Appellate Tribunal (‘SAT’), Mumbai, from the liability imposed by the Adjudicating Officer (‘AO’) of Securities Exchange Board of India (‘SEBI’) on DCHL for misleading financial statements and information given by the DCHL.

Corporate

Supreme Court upholds 2014 amendment of Pension Scheme with certain caveats

23 November 2022

The Supreme Court on 4 November 2022, upheld the constitutional validity of certain amendments made to the Employees’ Pension Scheme (‘EPS’) by way of the Employees' Pension (Amendment) Scheme, 2014 (‘Amendment Scheme’). This much-awaited ruling in the matter of Employees’ Provident Fund Organisation & Another v. Sunil Kumar B. and Others will impact thousands of working individuals and make the EPS more viable.

Direct Tax

Benefit of Most Favoured Nation clause for dividend income of non-resident – Interesting battle to watch out for before Apex Court

17 November 2022

In the tax treaties entered by India with countries such as Netherlands, France, Swiss Confederation, and Sweden, India has agreed for Most Favoured Nation clause (‘MFN clause’) with the treaty Partner. The MFN clause finds presence in the protocol to the tax treaty, which forms an integral part of the tax treaty .

Intellectual Property

Are the time limits prescribed by the Patents Act, 1970, mandatory or directory?

16 November 2022

The issue in this article discusses on the prescribed timelines set under the Patents Act, 1970 (‘Act’) and the Patent Rules, 2003 (‘Rules’) and throws insights on the flexibility of timelines set forth under different orders.

Regulatory

Amendment to the Intermediary Guidelines: Increased due diligence and grievance redressal

02 November 2022

The Ministry of Electronics and Information Technology (‘MEITY’) notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules, 2022 on 28 October 2022 (‘Amendment’) which introduces certain enhanced due diligence obligations for intermediaries, changes in timeline and grievance redressal procedures and constitution of grievance appellate committees.

International Trade & WTO

Beware of sharks in the water – Navigating trade in a world of sanctions

31 October 2022

On 24 February 2022, Russian tanks and troops rolled into Ukraine, thus triggering the beginning of the ongoing conflict in Ukraine region and putting an end to the months of speculation regarding the possibility of war.

Goods and Services Tax

Essentiality Certificates under Customs and GST laws: Need for synchronization

28 October 2022

Petroleum is an indispensable commodity for the fulfilment of daily human needs. Not only does the petroleum industry act as a nodal industry for other industries like textile, automobile etc., petroleum has deep-rooted impact on the inflation rate and economic growth of a country.

Direct Tax

A quandary of claim of foreign tax credit

27 October 2022

The rapid infusion of digitisation into the business has made world one global market. In today’ era, the business transactions extend beyond national boundaries and the businesses are tailored to meet the needs of consumers over wider geographic areas.

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