The online gaming sector is facing increased scrutiny from taxman lens. Many a times, interpretation issues are given the colour of tax evasion. An investigation often consists of survey, audit, searches, seizure of documents, goods and summoning of officials including CEOs, Chairman, Directors for recoding of statements. It is necessary to understand the duties, responsibilities and rights of the company officials before, during and after an investigation.
Under the GST law, issues relating to interpretation of the term betting, has come into foray, impacting the valuation and rate on which tax is required to be paid. Under the Income-tax Act, 1961, the issue relates to withholding tax obligations of gaming companies in respect of winnings distributed to the players, applicability of Section 194R on incentives offered to players. The seminar shall sensitise stake holders about their rights and responsibilities during visits, raids, audits and investigations by the departmental authorities.
Lakshmikumaran & Sridharan Attorneys (L&S) is organizing a webinar on 6 October 2022 (Thursday) between 5:00 PM - 6:00 PM, for an in-depth understanding of the various issues plaguing the upcoming online gaming sector.
The webinar would cover:
- Interpretation of the term “betting”, “gambling” and Game of chance v. Game of skill
- Electronic documents, maintenance of books of accounts and details as per GST provisions and Invoicing to customers
- Withholding tax on Winnings from Game u/s. 194B of the Income-tax Act, 1961 and associated concepts
- Raising of share capital and implications of Section 56(2)(vii b) and Section 68 of the Income-tax Act, 1961
- Whether incentives offered to players would be subject to TDS u/s. 194R of the Income-tax Act, 1961,
- Scope of the investigation and powers of the investigating agencies during and after investigation?
- Duties, responsibilities and the rights of the officials with during investigation?
- FEMA and other implications from the investigations
- Way forward
Speakers
- L. Badri Narayanan, Executive Partner, L&S
- Asish Philip, Partner, L&S
- Ravi Sawana, Joint Partner, L&S