articles
Goods and Services Tax
Competency and powers for VAT amendments in GST regime
01 November 2023
The article discusses the recent decision of the Supreme Court holding that the amendments to Telangana VAT Act, Gujarat VAT Act and Maharashtra VAT Act, after 1 July 2017, were not correct. It notes that the impact of the Court’s observations on competency of the State legislature for VAT amendments and introduction of VAT Amnesty Schemes by the States, is an interesting academic issue to explore. According to the authors, the observations of the Court will have an impact on levying VAT on..
International Trade & WTO
A question on ‘standing’ of the domestic producer in anti-dumping cases
31 October 2023
On 29 September 2023, the Directorate General of Trade Remedies (‘DGTR’) issued the Final Findings (‘FF’) in Anti-dumping investigation concerning imports of ‘Metronidazole’ originating in or exported from China PR. The domestic industry (‘DI’) was represented by Aarti Drugs Ltd., (‘ADL’) who was one of the major domestic producers of Metronidazole (‘Product under consideration’ or ‘PUC’) in India.
Direct Tax
Deciphering tax puzzle of loan-to-equity conversions
30 October 2023
Businesses nowadays are coming up with pioneering strategies to keep afloat amidst financial stress. One of the common modes of financial structuring these days is conversion of loans into equity shares. The said option not only results in significant interest cost savings but also elevates the financial position for attracting new investments.
Intellectual Property
Pioneering work in the field of mRNA-based innovations- A case study
07 October 2023
Dr. Katalin Kariko and Dr. Drew Weissman have been named the winners of the 2023 Nobel Prize in Physiology and Medicine for their innovations concerning nucleoside base modifications that enabled the development of effective mRNA vaccines against COVID-19.
Corporate
Termination of employment in India
29 September 2023
The article discusses laws relating to termination of employees and workmen, in India. It in this regard summarises various requirements under the Industrial Disputes Act, 1947 and the Industrial Employment (Standing Orders) Act, 1946, and notes that the notice and payment of service compensation as provided under the state-specific shops and establishment acts (which differ from State to State) must also be complied with by the employers for terminating employees.
International Trade & WTO
Navigating the EU Deforestation Regulations: Scope, coverage and impact on Indian exporters
29 September 2023
The article discusses the recently notified European Union Deforestation Regulation which is a set of comprehensive regulations targeting the imports and domestic production of products associated with deforestation. Observing that these regulations will also have implications for Indian exporters of commodities like coffee, chocolates, soy, and wooden furniture, the article provides a brief overview of the EUDR, what it entails, and explores its impact on Indian exports to the EU.
Goods and Services Tax
A tale of tax technology and GST matching woes: Balancing idealism and pragmatism
26 September 2023
The article discusses the problem of absence of mechanism for matching Input Tax Credit (‘ITC’). It analyses a recent Rajasthan High Court decision in the case of Hindustan Lever Ltd., where the practicality of this matching exercise has come into question and observes that while on one hand, requiring suppliers to collect certificates or proof from recipients may lead to administrative inefficiencies, on the other hand, allowing businesses to claim reductions in tax liability...
Arbitration
Arbitration clauses in cross-border transactions – Indian perspective
22 September 2023
In the era of globalization, India has emerged as one of the fastest-growing economies in the world. Owing to its increased consumption and a large young workforce, India has attracted interest from several multinational corporations and consumer companies who are looking to expand their business in newer territories.
Direct Tax
Cross-border share sale – Eligibility for Tax Treaty benefit
19 September 2023
The article seeks to examine the question as to whether treaty benefits should at all be provided if the non-resident seller of shares does not have much commercial substance. Analysing how Courts in different countries have applied GAAR in tax treaty issues and what Courts in India have held applying judicial anti-avoidance test prior to GAAR, the authors opine that there is a lot of uncertainty surrounding the applicability of anti-abuse rules to cross border share acquisitions.
International Trade & WTO
EU’s Non-Preferential Rules of Origin: A tool for determining origin of goods and promote fair trade
04 September 2023
In the realm of global trade, the determination of a product’s origin holds immense significance. Origin not only affects tariffs but also impacts compliance with regulations, trade agreements, trade measures and market access. The European Union (‘EU’) Non-Preferential Rules of Origin provide a comprehensive framework to ascertain the origin of goods exported to the EU and play a pivotal role in shaping trade dynamics within the EU and its trade partners.
Regulatory
Digital Personal Data Protection Act – Implications for financial entities and fin-tech sector
01 September 2023
The article discusses elaborately the implications of the new Digital Personal Data Protection Act, 2023 for the financial entities and the fin-tech sector. It, in this regard, discusses topics like, meeting consent and notice requirements; interplay with sectoral regulations; legitimate purposes for processing; and how Data Fiduciaries in the financial sector need to review internal protocols and mechanisms concerning disclosure and/or sharing of personal data. Similarly, the article also...
Goods and Services Tax
ISD vs. Cross Charge – The saga continues
30 August 2023
The article revolves around the recommendation of the 50th Meeting of the GST Council and the clarification brought in by the CBIC Circular No. 199/2023-GST, dated 17 July 2023 with respect to distribution of credit through Input Service Distributor (‘ISD’). Noting that the Circular has put at rest many disputes surrounding the issue, the authors highlight some open issues which need to be addressed in view of the proposed amendment in law to make the ISD registration mandatory.
Direct Tax
Navigating limitation period labyrinth – Pitfalls in timelines of passing assessment orders under Section 144C read with Section 153
25 August 2023
The Bombay HC has held that timelines for passing an assessment order specified in Section 153 of the Income Tax Act, 1961 are not to be extended in cases where the assessee takes the DRP route and the final assessment order under s.144C(13) has to be passed within the overall timeline prescribed under s.153. Considering that the general practice followed by the tax officers is to pass only the draft orders within the timelines, the article highlights the impact of this decision.
Intellectual Property
Trends in GI sector: An analysis
18 August 2023
In recent years Geographical Indications (‘GIs’) has emerged as one of the most important instruments for protecting the “quality, reputation or other character of goods essentially attributable to their geographical origin”. It is a ‘source identifier’ and indicator of quality. It helps to promote goods of a particular region or country and is “eligible for relief from acts of infringement and/or unfair competition”.
Goods and Services Tax
Key issues impacting the pharmaceutical sector – Classification, human resources & investigations
16 August 2023
Indian Pharmaceutical Industry plays a prominent role in the Global Pharma Ecosystem. It is the world's largest provider of generic medicines by volume and is also the largest vaccine supplier in the world. The value of this sector is expected to reach USD 65 billion by 2024. Indian pharmaceutical products are exported to various overseas markets including the US, UK, European Union, etc.
Regulatory
Digital Personal Data Protection Bill, 2023: Implementing India’s Data Protection Revamp (Part 1)
11 August 2023
This article is the first in a series of articles that discusses the Digital Personal Data Protection Bill, 2023 and outlines key obligations and action items that may be implemented by Fiduciaries and other entities under the Bill.
Goods and Services Tax
Key issues impacting the Pharmaceutical Sector – Quandaries for the Industry
09 August 2023
The pharmaceutical sector in India plays a seminal position in the domestic and international economy. It provides more than 50 per cent of global demand for several vaccines, 40 percent of generic demand in the US and 25 percent of all medicines in UK. The value of this sector has been estimated at $42 billion in 2021, and it is expected to reach $65 billion by 2024 .
Goods and Services Tax
Export and global operation: Challenges Faced by Indian Pharma Industry
09 August 2023
In this article, the authors discuss key challenges faced by the pharma industry in GST which may affect the industry in their global operations and exports, imports and refunds, which are aside from the issues being faced in marketing and supply chain, procurement and input tax credit, etc, covered separately here.
Regulatory
Pacing towards a data protection law: Analysing the Digital Personal Data Protection Bill, 2023
04 August 2023
The Minister of Electronics & Information Technology introduced the Digital Personal Data Protection Bill, 2023 on 3 August 2023 , in the Lok Sabha. The Bill is a successor to the Draft Digital Personal Data Protection Bill, 2022 which was released by the Ministry of Electronics & Information Technology in November 2022. The article provides the comparative insights on the Bill vis-à-vis its 2022 counterpart.