Taxation

Reassessing the sanctity of CA certificates: Evidentiary standards in quasi-judicial proceedings

Summary: CA certificates are governed by the relevant statutory provisions. CAs must issue them in accordance with the professionalism outlined in the ICAI’s code of conduct. Across tax frameworks, such certificates substantiate positions and claims. However, a certificate cannot, on its own, discharge the burden of proof, where the underlying records are not produced. Strict evidentiary rules do not govern tax proceedings, foundational principles do. In this environment, a certificate that is adequately documented, and issued in strict conformity with ICAI standards shall withstand scrutiny from the revenue and will be preferred compared to one that is devoid of such safeguards.

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Mumbai ITAT holds that commercial and charitable activities can co-exist

Summary: Mumbai ITAT in Reliance Foundation Hospital Trust has held that a charitable organisation’s registration cannot be denied merely because of the scale of its operations, sophisticated infrastructure, or substantial receipts. The ITAT examined the scope of enquiry and emphasised that renewal of charitable registration should be decided as per the law and evidence available on record.

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When Shipped, Not Declared: The Bombay HC’s Decision On Foreign Exporter’s Customs Liability

Summary: The Customs Act assigns importers and exporters parallel duties that do not usually converge. Yet Indian authorities have started to rope foreign exporters into importers’ alleged violations in the wake of the Act’s extraterritorial reach. This approach treats the supply chain as a single unit of liability. The Hon’ble Bombay High Court’s (“HC”) ruling in the case of Karl Mayer[1] firmly rejects such approach. Unless there is evidence of complicity, the exporter’s responsibility ends when the goods are shipped. What changes, however, when the exporter controls the importer? This blog attempts to shed light on this controversy, among many others.

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When Tax Chases Talent Across Borders: Huawei and the GST dilemma on secondments

Summary: Tax authorities have long sought to levy GST on cross-border secondment arrangements by characterising them as “import of manpower supply services” under the reverse-charge mechanism. The Karnataka HC’s ruling in Huawei offers significant relief by holding that where expatriate employees are genuinely integrated into the Indian entity’s operations, the arrangement constitutes an employer–employee relationship excluded from the definition of “supply” under the CGST Act. Unlike NOS, where economic control over the employees never truly migrated to the Indian entity, Huawei demonstrates that substance must prevail over structure.

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Tax implications of the new labour codes

Summary: The implementation of the labour codes necessitates a comprehensive review of compensation paid to employees. The compensation structure of employees will also see an impact from an income tax perspective, which cannot be ignored easily. Through this blog, we have analysed some of the positive as well as negative consequences that would need to be understood and analysed by employers as well as employees at the earliest.

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As you sow, so you reap: ITAT holds MLI provisions adopted in DTAAs inapplicable without specific notification

Summary: The Multilateral Instrument (MLI), which had originated from the OECD’s BEPS project, was meant to fast-track adoption of anti-avoidance measures without lengthy bilateral negotiations between multiple countries. India ratified the MLI in 2019 and the Revenue argued vociferously before the Supreme Court in the case of Nestle that every change to the DTAA shall have to be notified separately to give effect to such change and succeeded. Following the aforesaid SC decision, a few recent ITAT judgments have thrown a curveball by holding that MLI provisions cannot apply automatically to the DTAAs unless a specific notification is issued. Through this blog, we analyse the impact of these ITAT decisions, which may reshape ongoing tax litigation strategies.

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From PE Confusion to Clarity: NITI Aayog’s Push to Reform Profit Attribution Rules

Summary: India’s tax framework has long posed challenges for foreign investors, particularly around PE and profit attribution rules. NITI Aayog’s working paper proposes a presumptive taxation scheme to simplify compliance and reduce litigation with respect to profit attribution. Through introducing sector-specific profit percentages to turnover, the working paper intends to offer clarity and ease administrative burdens. Its success, however, will hinge on setting realistic rates that are pragmatic and practicable and can balance revenue protection with investor appeal.

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Telangana High Court clarifies GAAR in relation to market-based transactions

Summary: In a recent case, the Telangana High Court has frowned upon the Revenue’s attempt to invoke GAAR in respect of a transaction that was carried out by the taxpayer through the stock exchange. By rejecting the stance adopted by the Revenue, the High Court categorically held that not every tax planning is bad, and it cannot be brought within the purview of GAAR. Only if a taxpayer colludes or connives to bypass statutory provisions, by entering into transactions that defy commercial logic, can it be examined.

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The Sacred Fortress of Privilege: Navigating the Scope of Client-Attorney Privilege

Summary: Client-attorney privilege in India is facing a moment of renewed scrutiny. As investigative agencies increasingly enter the professional space of advocates, the boundaries of this privilege are being tested like never before. Courts are now tasked with distinguishing between protected and unlawful conduct, while statutory safeguards under the Bharatiya Sakshya Adhiniyam, 2023 attempt to preserve the integrity of legal representation. This blog examines how recent jurisprudence is shaping the future of client confidentiality, raising urgent questions about privacy, procedural fairness, and the limits of investigative authority.

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Summary: This blog unpacks the sweeping GST rate rationalisations announced by the 56th GST Council meeting, covering key sectors such as food, healthcare, FMCG, agriculture, consumer goods, automobiles, infrastructure, and more. Beyond listing rate changes, we analyse their policy intent, business impact, and compliance challenges, from ITC reversals and refund reforms to supply chain recalibration and pricing strategies. For businesses, this is not just about new tax slabs but about aligning operations and strategy with a shifting indirect tax landscape.

Continue Reading GST 2025: A Brave New Chapter in India’s Tax Reform