Authorities now scrutinize NGO financial statements before granting or renewing registration. Proper documentation and clear charitable application of surplus are critical.
Recent AAR rulings have raised questions on whether ITC on imports is subject to Section 16(4). While one ruling applies the time limit strictly, another highlights structural differences in import transactions.
GST treatment of reimbursements depends on whether the supplier qualifies as a pure agent under Rule 33. Failure to meet conditions can make the entire amount taxable.
The Budget introduces key GST reforms covering post-supply discounts, refunds, intermediary services, and advance ruling appeals. The changes aim to reduce litigation and improve business liquidity.
The ITAT reaffirmed that Section 2(22)(e) cannot extend the definition of shareholder to a concern receiving the loan. The deemed dividend, if attracted, must be taxed in the hands of the substantial shareholder alone.
ITAT rulings clarify that deduction of tax under Section 194J does not automatically classify income as professional income under Section 44ADA.
Amendments redefine collateral, introduce acquisition and bridge finance, and clarify key lending concepts to strengthen credit regulation and risk management.
The new Act adopts a broad definition of income, covering salary, capital gains, perquisites, subsidies, and windfalls, ensuring taxation reflects real financial capacity.
The 50% wage rule under the Code on Wages mandates salary redesign across India. Multi-state employers must align payroll and compliance structures urgently.
With GSTAT operational, mismatches are no longer automatically treated as fraud. Strong documentation and intent-based defense now determine litigation outcomes.
