articles
International Trade & WTO
Suspension of lesser duty rule by the EU in anti-dumping investigations
28 八月 2020
The lesser duty rule may be suspended by the EU if there are distortions of raw materials price. Moreover, as per Article 7(2a), the lesser duty rule can only be suspended when a single raw material for which distortion is found accounts for not less than 17% of the cost of production of the product concerned. After these requirements of Article 7(2a) are met, it still has to go through the rigours of the Union interest test.
Goods and Services Tax
‘Intermediary’ – Mediating required for intermediary
26 八月 2020
The article discusses at length the issue as to whether an intermediary suppling service to a foreign customer should discharge CGST+SGST or IGST. The authors are of the view that in such case, the transaction would be covered under Section 13(8)(c) and be deemed as inter-State supply as per Section 7(5)(c). They also state that the Gujarat High Court’s observation in the case of Material Recycling Association of India, that CGST+SGST would be liable in such case, is a mere obiter dicta.
Goods and Services Tax
Contractual payment = Consideration?
26 八月 2020
The article elaborately discusses the thin line which a payment needs to cross in order to become a consideration. Discussing the definitions of ‘consideration’ under GST law and Indian Contract Act, 1872, the article states that payment should have a direct and sufficient nexus with the supply and be at the desire of the promisor.
Competition and Antitrust
CCI’s changed approach to enforcement amidst the pandemic
26 八月 2020
The Competition Commission of India’s (“CCI”) regular functioning continues to stand suspended amid the COVID-19 pandemic since March 2020. The Indian antitrust regulator however was quick to adapt to the changed circumstances and adopted a modus operandi which allowed for parties to submit merger notifications as well as responses in on-going investigations and new informations online.
Direct Tax
Doctrine of Merger and its application to orders passed under Income Tax Act, 1961
18 八月 2020
Doctrine of Merger is not applicable in all scenarios and to all the orders passed under the Income Tax Act. The Courts have been playing a vital role by applying this doctrine on case to case basis to determine whether or not the powers under Section 263 and 154 have been exercised within the time limits prescribed and also in certain cases to determine if the appeals have been filed within the condonable period.
Intellectual Property
Dishonest adoption of a well-known trademark for dissimilar goods and services - A ground of infringement
14 八月 2020
The Delhi High Court in the case of Bayerische Motoren Werke AG v. Om Balajee Automobile (India) Private Limited granted an ad-interim injunction to the plaintiff and restrained the defendants, from manufacturing, exporting, importing or offering for sale, advertising or in any manner dealing with goods, not limited to e-rickshaws, bearing the mark “DMW” or any other mark which is identical or deceptively similar to the plaintiff’s “BMW” trademarks.
Corporate
Corporate Social Responsibility and implementation agencies
11 八月 2020
The article discusses at length the recently released draft Companies (Corporate Social Responsibility Policy) Amendment Rules, 2020. According to the authors, the Draft Rules are a ray of hope in regulating implementation agencies and ensuring a greater transparency by formulating the registration process.
International Trade & WTO
Implementation of Significant Distortions Methodology by EU in original anti-dumping investigations – Who’s next after China?
29 七月 2020
Significant distortions methodology on imports from China as per Article 2(6a) of the EU’s Basic Regulation has been applied in three original anti-dumping investigations. While individual producers/exporters continue to register their participation, there is no opposition/response from China during the investigations to avoid application of significant distortion methodology and as a result, exports from China face the same treatment as that of a non-market economy country.
Goods and Services Tax
Is the time limit for filing TRAN-1 sacrosanct – Madras High Court adds a twist to the never-ending tale
27 七月 2020
Question whether the time limit imposed on transitioning the credit into GST from the erstwhile regime is sacrosanct has now been decided by various High Courts and interestingly, not all of them have taken the same view. Recently the Madras High Court has held that the provision imposing time limit is intra vires the Central Goods and Services Tax Act, 2017 and is mandatory in nature.
Goods and Services Tax
Ongoing concerns on ‘Going concern’
27 七月 2020
The article attempts to explain when the transfer of a business should be treated as a ‘transfer of a going concern, as a whole or an independent part thereof’ which is an exempt supply under GST laws.
Direct Tax
Proviso to Section 115BAA(3) – Sowing confusion or certainty?
21 七月 2020
The article addresses an issue that may arise regarding the treatment of unclaimed portion of additional depreciation in respect of companies with substantial capital expansion in the relevant AY while opting for Section 115BAA of the Income Tax Act relating to reduced corporate taxation scheme.
Intellectual Property
Emerging preferences in trademarks amidst COVID-19 – Analysis of registrability and other related issues
15 七月 2020
Since February 2020, the Covid-19 (also known as Coronavirus) pandemic has been a major talking point and consequently many pandemic referenced words are being used as trademarks and are being filed for registration at Trade Mark Registries worldwide. The article analyses the various registrability issues pertaining with ‘Covid’ or ‘Corona’ referenced trademarks filed in India and other related issues that may pose difficulties in seeking the registration.
Arbitration, Commercial litigation
Arbitrability of disputes post execution of ‘unconditional discharge vouchers’ – An analysis
13 七月 2020
One of the common defenses taken by a party, facing a claim in an arbitration is that the contract has already been discharged by performance, however, it is not uncommon for the claimant to dispute the discharge voucher signed by it and claim that it was executed under fraud, coercion or undue influence.
Direct Tax
Virtual Hearing: An effective alternative to in-person hearing?
10 七月 2020
Covid-19 has been affecting every sphere of our lives for the past many months and it is evident that the same would continue for the next few months, to say the least. Amongst others, judicial system in India has seen immense pressure to adapt to the existing circumstances posed by the pandemic and provide a redressal platform for the existing and future litigation.
International Trade & WTO
Implementation of Significant Distortions Methodology by EU in review of anti-dumping duty on exports from China
29 六月 2020
The European Union (‘EU’) amended EU Regulation 2016/1036 of 08-06-2016 (‘the Basic Anti-dumping Regulation’) on 12-12-2017 through which it introduced Article 2(6a). Through this amendment, the EU created a possibility whereby actual domestic selling price and costs of producer/exporter can be rejected for determining normal value in anti-dumping investigations/reviews where there are ‘significant distortions of prices and costs’.
Goods and Services Tax
GST Council’s unbalancing act on a tightrope!
26 六月 2020
As tax professionals we get excited every time we hear news about Goods and Services Tax (“GST”) Council holding periodical meetings. Some of the GST Council meetings, particularly the ones held during the second half of financial year 2017-18 have more or less been small scale budgets, with announcement on various trade facilitation measures
Customs
Rejection of transaction value – Overcoming die-hard practices of the department
26 六月 2020
Customs Valuation has been an impediment to better trade facilitation and inhibits ease of doing business in India. There is a need for systemic improvement and procedural clarity for reducing disputes pertaining to Customs Valuation.
Competition and Antitrust
Regulatory Tussle: Competition Commission of India v. Controller of Patents & Ors.
19 六月 2020
In its brief 11-year existence, the Competition Commission of India (“CCI”) has investigated anti-competitive conduct across several diverse sectors of the Indian economy. The CCI is the sole quasi-judicial and regulatory body established under the Competition Act, 2002 (as amended) (“Competition Act”).
Direct Tax
Tax exemption to Sovereign Wealth Funds – Whether taxable at all?
18 六月 2020
The issue of taxation of foreign Sovereigns in India, does not spring up very often. The principle that a Sovereign is immune from taxation laws, has evolved over the centuries. With the Union Budget, 2020 proposing an exemption to Sovereign Wealth Funds (SWFs) in respect of certain income earned from India, the issue as to whether such entities are subject to tax in the first place has been reignited.