The article is a discussion to understand the significance of structuring of contracts for tax purposes. Structuring of contracts are predominantly undertaken by splitting one contract into multiple contacts, reasons being, no tax position, separate taxes on supply of goods and services, maximising the benefits of exemptions, etc., What is a cross fall breach clause? […]
1. Introduction: The power of Government to levy and collect taxes is inherent sovereign power well recognised from time immemorial. Under the Indian constitution, the power of the Government to levy and collect taxes is mainly regulated by article 265 of the constitution. The power to levy tax grants the power to provide for exemptions. […]
Interest is payable on the net tax liability (output tax―input tax), which can be termed as Tax remained unpaid, as per section 50 of CGST Act, 2017
Increase in safe harbour limit of 5% under section 43CA, 50C and 56 of Income Tax Act, 1961 to 10% Section 43CA of the Income Tax Act, inter alia, provides that where the consideration declared to be received or accruing as a result of the transfer of land or building or both, is less than […]
Earlier, Rent paid in India was covered under section 194-I which covered Individuals and HUF who are liable to get their accounts audited under the Income-tax Act. This section left a huge portion of rent prayers uncovered as not everyone became liable for Audit. To cover this portion, A new section 194-IB was inserted through […]
We all are no stranger to the fact that Residential status is the foremost requirement to be examined for each Previous Year while computing tax. Residential Status may vary Previous Year to Previous Year. Section 6 of Income Tax Act, 1961 deals with it. Recently major amendments have been inserted by Finance Act, 2020 in […]
A. Existing Provisions relating to dividend taxation: (i) Tax implication in the hands of company: Under the existing laws, even though dividend constituted income in the hands of the shareholders, the tax on such dividend was payable by the company which declared dividend, @ 15% of the gross dividend under section 115-O (plus surcharge and […]
Leave Travel Assistance / Allowance / Concession (LTA) Leave Travel Concession / Assistance / Allowance (LTA) is generally paid as a part of salary to employee for his travel on his planned leaves with / without his family. The amount paid by the employer to employee is exempt from tax subjected to conditions which is […]
Any person who has a gross turnover/receipts/sale from his business in preceding financial year exceeding Rs. 10 Crores (excluding those persons who are notified in official gazette by central Govt) AND That person (seller) has sold goods to a buyer in excess of Rs. 50 lacs after 01.10.2020 THEN On further sale of goods by […]
Merger of large companies in same industry is Anti-Competitive but merger of Vodafone & Idea is not (though merged entity will have highest market share in Wireless Telecom Market). Here’s why? Introduction: Reliance Jio, A company which brought digital revolution in India and has changed the composition of telecom industry which was originally having 11 […]
