LAW DECODED

Making foreign payments are very frequent in nature, but before making any foreign payment you must keep in mind the compliances under various laws such as: 1. Under Income Tax Laws :  Section 195 of the Income Tax Act requires to deduct TDS if the sum payable is taxable in India. To know this you must check Section 5, 6 and 9 of the Income Tax Act along with section 195 to get the clear picture. Deciding at what rate you should deduct TDS , is also a crucial task. For this, you must check the DTAA [Double Taxation Avoidance Agreement] between India and the Country where you remitting the funds.  Apart from TDS liability and its TDS return filing, you must also intimate the tax authority by filing form 15 CA and 15 CB [CA Certificate] . However, there are certain notified transactions where you are not required to report such transactions [ Rule 37 BB of Income Tax Rules ]. The wording of section 195 is so wide that it covers almost each and every foreign payment barri

As per section 3 of Transfer of Property Act, “ Actionable claim ” means a claim to any debt, other than that secured by mortgage of immovable property or by hypothecation and pledge of movable property or to any beneficial interest in movable property not in position, either actual or constructive, of the claimant, which the Civil court recognized as an affording ground for relief, whether debts or beneficial interest be existent, acquiring, conditional or contingent. Followings are a few examples of Actionable Claim: Right to recover insurance policy A claim for an arrear of rent Sale to Lottery tickets Why is it important to understand the actionable claims under GST? Actionable claims are considered as goods under the GST act. As per section 2(52)  of CGST Act, “goods” means every kind of movable property other than money and securities but includes actionable claim , growing crops, grass, and things attached to or forming part of the land which are agree

Most of us are aware about National Anti-profiteering Authority (“Authority”) under GST but the question is why there is need for this Authority? Its main function is to see whether the benefits of reduction in rates reach to final consumers. It means whenever there is a reduction in rates of Taxes of any commodity/service under GST, the supplier has to reduce the prices of the commodity/service and as a result, thereof their profit remains the same. But the point is in the era of cut-throat competition; price reduction can be automatically decided or determined by the market forces, then why there is need of this new Authority in GST regime. The question as to reduce price or not is more related to the commercial decision of Suppliers. Let me tell you there is already an authority which is Competition Commission of India (“CCI”) which ensure the healthy competition and curb the malpractice such as cartelization, abuse of dominant position or any activity which disturb th