articles
Direct Tax
Union Budget 2025 – Tax treatment of securities held by AIF (CAT I and II) in India
11 二月 2025
The article discusses Alternate Investment Funds (AIFs), which are privately pooled investment vehicles which collect funds from investors, whether Indian or foreign, for investing in certain class of securities. It examines their special taxation regime, the issues with the current provisions, the proposed amendments, and the impacts of these amendments after the Finance Bill, 2025.
International Trade & WTO
Beyond borders: The challenge of transnational subsidies in global trade
10 二月 2025
The article addresses the issue of transnational subsidies in global trade across three sections. The first section examines the present framework of the SCM Agreement. The second section focuses on developments in the European Union (EU) and the United States of America (USA). Finally, the third section discusses the way forward for India.
Customs
Amnesty Scheme for Advance Authorization / EPCG: No penalty for export obligation defaults after regularization
10 二月 2025
The article discusses the Amnesty Scheme, which offers the exporters a one-time opportunity to regularize defaults in export obligations under the Advance Authorization and EPCG schemes. It notes that the loophole of absence of any mention of penalty waiver was cited by Customs Authorities to demand penalty but, recently the CESTAT has held to the contrary.
Direct Tax
Union Budget 2025: Navigating the new presumptive tax landscape for non-residents
10 二月 2025
The article discusses the scope of the new presumptive taxation scheme which has been proposed for non-residents engaged in providing services or technology in India for setting up electronics manufacturing facility or manufacturing electronic products in India. It discusses the issues which need clarification for the application of the scheme.
Customs
Interactive flat panel displays: Budget 2025 kindles a curiosity
07 二月 2025
The article discusses the classification and the rate of customs duty on Interactive Flat Panel Displays (IFPDs) as announced in Budget 2025. The authors note that while there is an increase of BCD rate from 10% to 20% on goods classifiable under Tariff Item 8528 59 00, the IFPDs should be correctly classifiable under Heading 8471.
Customs
Laboratory chemicals and Budget 2025: Examining the change
07 二月 2025
The article discusses on changes made in the Budget 2025 in regards of laboratory chemicals which is covered under Heading 9802 of the Customs Tariff in India, a part of Chapter 98 which is unique to India.
Corporate
Rent/lease agreements – Enforceability of lock-in period
07 二月 2025
Typically, parties to a rent/lease agreement insert a lock-in period to ensure that either party is unable to terminate the agreement before the stipulated period. Such agreements also incorporate a provision for liquidated damages in the form of rent for the remainder of the lock-in period. The article discusses the jurisprudence on ‘liquidated damages’ in India and its effect on the lock-in-period.
Competition and Antitrust
CCI raises scrutiny of minority investments
04 二月 2025
The article discusses a recent decision of the CCI wherein the Competition Commission penalised an Investment Management company and dismissed the claim that subscription to convertible securities should receive differential treatment from acquisition of shares. The CCI was also not persuaded by the argument that the rights package was available to all investors, and should therefore, be considered ordinary shareholder rights.
Customs
Continuing dilemma over classification of parts and accessories of motor vehicles
04 二月 2025
This article analyses the recent judgment delivered by the Kerala High Court in the case of Auto Fit Car Interiors Pvt. Ltd. v. Union of India & Ors., concerning classification of car seat cover and steering cover, made up of textile fabrics and cotton handloom fabrics and its entitlement under Merchandise Exports from India Scheme (MEIS).
Customs
Reconciling labelling requirements applicable under various Rules and Regulations for goods imported into India
30 一月 2025
Certain labelling laws target goods by category - food, drugs, etc., while there are others which target goods based on other aspects like form of packaging (LM Rules) or applicability of quality standards (BIS). As ambit of these laws is varied, a single product might require complying with labelling requirements set out in more than one law. Hence, the labelling requirements prescribed under different laws for the same product is required to be examined.
Competition and Antitrust
NCLAT Stays CCI Order - Gives a ‘Blue Tick’ to Messaging Major to Continue Sharing User Data
30 一月 2025
The article discusses the recent partial stay granted by the NCLAT to the direction issued by the Competition Commission of India to WhatsApp LLC, prohibiting it from sharing user data collected on its Over-the-Top messaging app on the smartphones (WhatsApp application) with other Meta companies for advertising purposes.
Direct Tax
Are there still broken links in taxation of ‘Broken Period Interest’?
22 一月 2025
The article highlights that while the recent judgment of Supreme Court in Bank of Rajasthan has put to rest the controversy in context of investments made by banks in government securities, the taxability of Broken Period Interest for other taxpayers is far from settled.
Customs
Interest on IGST: Decision of Mahindra & Mahindra and subsequent legal developments
14 一月 2025
The article discusses the Bombay High Court in the case of Mahindra & Mahindra which had ruled that as there is no substantive provision in Section 3 of the CTA that provides for payment of penalty or interest on duty other than BCD, penalty/interest payable on CVD/SAD is not recoverable. The author discusses the subsequent changes by the Finance (No.2) Act, 2024 and how the issues has now been referred to the Larger Bench.
Decoding Conformity Assessment Scheme-II of BIS – The Registration Scheme
13 一月 2025
In the previous issue of LKS BIS Amicus, we threw light upon various aspects of the Product Certification Scheme, i.e. Scheme-I of the Bureau of Indian Standards (BIS). The next Scheme listed under the BIS (Conformity Assessment) Regulations, 2018 is Scheme-II, also known as the Registration Scheme, and involves self-declaration of conformity. Till date, BIS has issued 6 QCOs under this scheme, covering a total of 73 products.
International Trade & WTO
India imposes Quantitative Restrictions on imports of Metallurgical Coke
07 一月 2025
The article discusses at length the recent decision of the Ministry of Commerce to impose quantitative restrictions on imports of Low Ash Metallurgical Coke which is a crucial raw material for the steel industry that follows production through the blast furnace route. Analysing the notification and the subsequent DGFT Trade Notice, the author discusses various hardships which will be faced by the steel industry...
Regulatory
Adoption of Artificial Intelligence in the FinTech sector: A regulatory overview
06 一月 2025
The article discusses how Banks and financial institutions are leveraging AI in the financial sector for customer onboarding, periodic monitoring, customer engagement, credit risk assessment, cybersecurity and compliance. The authors also discuss the regulatory and compliance risks like issues related to intellectual property, transparency, accountability, contractual risks, data privacy, and cyber risks.
Customs
Laboratory Chemicals: Challenges posed by this unique entry in Indian Tariff
02 一月 2025
The article discusses a recent change in the definition of ‘Laboratory chemicals’. Elaborately stating the triggering point for the amendment, the true meaning of the term, what is ‘own use’, and the primacy of classification under Heading 9802, the authors state that in its current form, the definition could be a breeding ground for future disputes. According to them, the Government should consider amending the entry of laboratory chemicals to restrict it to certain situations.
Customs
IGST on FTWZ transactions: Retrospective amendment to put dichotomy to rest
01 一月 2025
The article discusses a recent recommendation of the GST Council in respect of transactions by Free Trading and Warehousing Zones (‘FTWZs’) within their premises, i.e. without exporting or clearing the goods in the Domestic Tariff Area. The authors elaborately discuss the conflict in the light of different AAR Rulings, including the use of different methods of interpretation (strict and purposive) for this purpose.
Direct Tax
Pandora’s box of income-tax implications arising from 2014 amendment to Employee Pension Scheme, 1995
20 十二月 2024
The article discusses certain unforeseen income-tax implications, on the monies that would be contributed to the Pension Fund, as well as monies that would be receivable from the Pension Fund and Provident Fund. The discussion is limited to the income-tax liability in the hands of the employees on, transfer of balances from PF Scheme to Pension Scheme, contribution to the Pension Scheme from PF Scheme, and on receipt of pension from the Pension Scheme at the time of retirement.