Quvisor’s refresher on Legal updates in India: June 26, 2021


Unravelling the concept of ‘Injury’ under Anti-Dumping Law
Under Anti-Dumping law, dumping is said to have taken place when an exporter sells a product to India at a price less than the price prevailing in its domestic market.

ITC reversal if payment terms are beyond 180 days: A Nightmare during pandemic
One of the pre-requisites for availing input tax credit under the GST law is to pay the supplier the value of the goods or services along with the tax within 180 days from the date of issue of invoice.

Park fee, market fee etc. directly collected by Municipal Corporation from public are exempted from GST
GST : Where applicant-municipality directly collects (1) park fee for allowing public entry to park maintained by it, (2) market fee from farmers/Merchants for allowing them entry to market, (3) bus entrance fee etc., said functions of applicant being covered under Twelfth Schedule of Constitution are not a supply of service and hence not liable to GST as per Notification No.14/2017-C.T. (Rate) dated 28-6-2017

GST on advertisement and sponsoring of Global Events: An entertaining twist!
The current world number one and my personal favourite Novak Djokovic came from two sets down in the spell binding French Open 2021 final to exact his 19th Grand Slam title in a mesmerised display of talent and play.

Income tax:

CBDT extends various deadlines; exempts ex-gratia sum received from employer on death due to COVID-19
The Central Board of Direct Taxes (CBDT) has granted further extension of timelines of compliances under Income Tax Act. Due date for linking PAN with Aadhaar has been extended to 30-09-2021. The board has also announced tax exemption for expenditure on COVID-19 treatment and ex-gratia received on death due to COVID-19.

TDS provisions on import of goods in view of amendment in Explanation 2A of Section 9(1)(i)
Transactions with Non-Residents has always been a matter of difference in opinion. The disputes occurring mainly related to area of Services.

TDS rightly deducted according to tax rate prescribed by DTAA as sec. 206AA doesn’t override sec. 90: ITAT
INTERNATIONAL TAXATION : Section 206AA does not override provision of section 90 and, thus, TDS had been rightly deducted by assessee on payment made to non-resident by applying tax rate prescribed under DTAA and not as per section 206AA

Corporate Laws:

Formulating Corporate Social Responsibility Policy (pursuant to section 135 of the Companies Act 2013) 
Corporate Social Responsibility (CSR) is extremely important for sustainable development of all stakeholder and it is regulated and mandated for some select catagories of companies registered and incorporated under the Companies Act 2013 or under the earlier Companies Act.

ICSI extends ECSIN AMNESTY SCHEME, 2021 till June 30, 2021 
In view of the requests of the members of ICSI to extend the ECSIN Amnesty Scheme, persisting situations in the country due to COVID-19 and various practical difficulties being faced by the members, the ICSI has decided to extend the ECSIN Amnesty Scheme, 2021 till June 30, 2021. The Institute has also advised members that it is the last opportunity to avail benefit under the ECSIN Amnesty Scheme, 2021.

Cos. can conduct their EGMs via. E-mode up to Dec 31, 2021: MCA clarifies 
The MCA has issued clarification with regard to holding of EGMs. After due examination, the MCA has decided to allow companies to conduct their EGMs through VC/ OVCM or transact item through postal ballot up to Dec 31, 2021.

Amended law relating to CSR- Need for greater clarity 
The provisions in the Companies Act 2013 relating to CSR have been amended substantially with the notification being issued on January 22, 2021. The changes made represent a paradigm shift in the law.

Insolvency & Bankruptcy Code:

RPs and IRPs being professionals working under IBC expected to coordinate when there were two CIRP proceedings 
IBC : If there are two CIRP proceedings, IRPs/RPs being professionals working under provisions of IBC are expected to coordinate and cooperate with each other remaining bound and confined under provisions of IBC

Any claim for CIRP period has to be raised before approval of a resolution Plan: NCLAT
IBC : Any claim for CIRP period has to be raised before approval of a resolution plan and after resolution plan’s approval and implementation, no direction can be issued to erstwhile Resolution Professional in respect of said claim; successful resolution applicant can not be burdened with claim/dues of corporate debtor

AA rightly rejected CIRP plea u/s 9 as corporate debtor had raised genuine dispute with regard to quality of goods
IBC : Provisions of IBC cannot be invoked for recovery of outstanding amount as well as it cannot be misused to drop curtain on a healthy organization, however, corporate debtor having raised a genuine dispute within stipulated period with regard to quality and short supply of goods, Adjudicating Authority had rightly rejected application under section 9




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