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Aviation watchdog DGCA on Friday imposed a fine of Rs 80 lakh on Air India for violations of norms related to flight duty time limitations and fatigue management system of flight crew. The decision came after the Directorate General of Civil Aviation (DGCA) conducted a spot audit of Air India in January, during which evidence was collected and fleet-wise random reports were analysed. "The analysis of reports and evidence revealed that Air India Limited operated flight(s) with both flight crew aged above 60 years flying together in a few instances. "... the operator was also found deficient in providing adequate weekly rest, adequate rest before &amp; after ultra-long range flights and adequate rest on layover to the flight crew, which violates the extant provisions of the Civil Aviation Requirements pertaining to FDTL," the regulator said in a release. Further, the DGCA said there were instances of exceeding duty periods, wrongly marked training records and overlapping duties. On March 1, the regulator issued a show cause notice to Air India with respect to the violations. "The operator submitted its response to the show cause notice, which was not found satisfactory. Pursuant to the non-satisfactory response submitted by the operator, a fine of Rs 80,00,000 has been imposed on the operator," the release said.<meta content="cms.next" name="cmsei" />

Aviation regulator DGCA slaps Rs 80 lakh fine on Air India

The Supreme Court on Monday came down heavily on two members of NCLAT who were issued contempt notice for defying an order of the apex court. After going through the relevant CCTV footage of the NCLAT proceedings from October 13, a bench headed by CJI D.Y. Chandrachud and comprising Justices J.B. Pardiwala and Manoj Misra said that there exists a "clear intention" to breach the directions passed by the Supreme Court. In view of the unconditional apology tendered by Member (Technical) Dr Alok Srivastava, the bench decided to put an end to contempt proceedings. During the hearing, the top court was apprised by senior advocate P.S. Patwalia that Member (Judicial) Rakesh Kumar -- who was part of the contentious bench of NCLAT -- has tendered his resignation to the Chairman of the appellate tribunal. Senior advocate Patwalia, who represented Member (Judicial) Rakesh Kumar, said that members of the bench had no intention to defy the orders passed by the apex court and there is no affront or ego involved. At this, CJI D.Y. Chandrachud said: "There is no denial of the fact that the lawyers did point out (before NCLAT bench) that an order was passed by the Supreme Court." In its order, the apex court directed Deepak Chhabria and the scrutiniser to deposit costs of Rs 1 crore and Rs 10 lakh, respectively, in the Prime Minister Relief Fund for misusing the process of law. Earlier on October 18, the Supreme Court had issued contempt notice to two members for "wilfully" defying directions passed by it. The top court had also set aside the judgment passed by the two-member bench of the NCLAT saying that parties cannot take recourse to "devious" means to obviate compliance with the orders passed by the Supreme Court. On October 13, the top court ordered the Chairperson of the NCLAT to conduct an inquiry into the working of a bench of the appellate tribunal which allegedly defied an order of the Supreme Court. It had said that it is passing the order in "extraordinary circumstances" where the two-member bench of the NCLAT proceeded to pronounce the judgment despite the clear mandate of the order passed by the Supreme Court asking the appellate tribunal to declare "its judgment in the pending appeal after it is duly apprised of the fact that the result of the Annual General Meeting has been declared". Senior advocates Abhishek Manu Singhvi and N.K. Kaul had apprised the top court that the bench consisting of Rakesh Kumar and Dr Alok Srivastava of the NCLAT proceeded to deliver the order despite request made by the petitioner before the appellate tribunal to not deliver the judgment until the report of the scrutiniser is made available. "If what is stated is correct, this will clearly constitute the defiance of the order of this court by the NCLAT," the Supreme Court had said, noting that its order was uploaded at 1.55 p.m. while the scrutiniser's report was stated to be uploaded at 2.40 p.m. <meta content="cms.next" name="cmsei" />

SC closes contempt proceedings against NCLAT bench after one member apologises, other resigns

The Karnataka High Court on Monday struck down provisions of the Karnataka Police (Amendment) Act, 2021 that banned online games. The division bench headed by the Chief Justice Ritu Raj Awasthi and Justice Krishna S. Dixit gave the order. The bench said in its order that in the 'Karnataka Act number 28/2021 to the extent the provisions, (not the entire Act) declared to be ultra vires to the Constitution of India and struck down. The consequences of striking down the provisions shall follow.' "However, nothing in this judgment shall be construed to prevent an appropriate legislation be brought about concerning the subject i.e; betting and gambling in accordance with the provisions of the constitution. A writ of mandamus is issued restraining the respondents from interfering with online gaming business and allied activities of the petitioners," the order said. The Karnataka Police (Amendment) Bill, 2021 was mooted by ruling BJP to amend the Karnataka Police Act 1963, in the Monsoon session. The BJP leaders claimed that they were introducing the Bill to ban online gaming in the interest of people. The law included all forms of wagering or betting in connection with any game of chance barring horse racing. However, the new law was opposed by online gaming companies and it was said that the policy would affect the prospectus of the city which is emerging as a hub of online gaming companies. The new Act banned all formats of online games involving wagering, betting and gambling of all nature and forms in the state. Under the new legislation, online gaming was considered a non-bailable offence with a fine of Rs 1 lakh and imprisonment up to three years. Along with banning games of skills, the government had also categorised online games using electronic means and virtual currency, electronic transfer of funds in connection with any game as gambling. The new legislation was passed in the Monsoon session by both the Houses of the legislature in Karnataka. Mobile Premier League (MPL) was one of the first companies to stall its operations in Karnataka. Paytm First Games was also locked. The online gaming companies moved to the court questioning the new legislation. Similar law was also challenged in Tamil Nadu and online gaming operators got relief against the government order from the High Court. The Internet and Mobile Association of India (IAMAI) had stated that the new legislation by the government will dent the image of Karnataka as a startup hub and the state exchequer will see a huge revenue deficit. It also maintained that with the new legislation offshore gamblers will flourish. Sources say that the state has more than 100 gaming companies with a workforce of 4,000. SEE ALSO: <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/international/news/tech-giant-tencent-is-limiting-kids-access-to-its-gaming-platform-and-only-allowing-them-14-hours-of-play-during-chinas-4-week-school-break/articleshow/88974669.cms">Tech giant Tencent is limiting kids' access to its gaming platform and only allowing them 14 hours of play during China's 4-week school break</a> <meta content="cms.next" name="cmsei" />

Karnataka High Court quashes law banning online gaming, calls it unconstitutional

Kalanithi Maran and KAL Airways informed the Supreme Court on Monday that SpiceJet's offer of ₹600 crore towards full and final settlement of the share transfer dispute was not acceptable. Senior advocate Maninder Singh, representing KAL Airways, submitted before a bench headed by Chief Justice N.V. Ramana that it was not possible for his clients to consider the offer proposed by SpiceJet airlines. The bench, also comprising Justices A.S. Bopanna and Hima Kohli, inquired further whether none of the two offers proposed by SpiceJet was acceptable. Singh replied in the negative and added that as per the arbitral award SpiceJet has to pay them ₹920 crore. Singh also submitted that he could take the court through the calculations as per the arbitral award from the pleadings itself in support of the arguments. He also submitted that the matter may be listed for arguments on the next date of hearing. Senior advocate Mukul Rohatgi, representing SpiceJet airlines, urged the bench to hear the matter within 2 weeks. Singh was assisted by advocates from Karanjawala &amp; Co. After hearing arguments, the top court has scheduled the matter for further hearing on March 2. On February 10, the Supreme Court asked Kalanithi Maran, the former promoter of SpiceJet, to consider the full and final settlement offer made by SpiceJet to end the dispute in a share transfer matter. In a statement SpiceJet, after the hearing in the top court, said: "SpiceJet has offered to pay ₹600 crore in cash in the share transfer case with its former promoter Kalanithi Maran and his firm KAL Airways for a full and final settlement of all disputes. Out of the principal amount of ₹578 crore awarded in arbitration, SpiceJet has already paid ₹308 crore in cash and deposited a bank guarantee of ₹270 crore." SpiceJet's counsel had proposed to pay the bank guarantee equivalent amount of ₹270 crore in cash and top it up with additional ₹22 crore aggregating the total pay-out to ₹600 crore as full and final settlement of all disputes between the parties. Maran and his firm, KAL Airways, had urged the top court to lift the stay on a Delhi High Court order asking the low-cost airline to deposit ₹243 crore as interest on the amount of ₹579 crore in the dispute. In November 2020, the top court stayed the high court order. Maran sought the stay to be lifted to secure the decreed amount -- refund amount awarded and interest -- from SpiceJet. Singh had argued that the high court had asked them to pay the decretal amount and against which SpiceJet had deposited only ₹270 crore as bank guarantee and now there is a winding up order passed against SpiceJet by the Madras High Court in another case being Credit Suisse AG Vs SpiceJet. He added that in such a change in circumstance, SpiceJet should be directed to pay and deposit ₹242 crore otherwise his client will have to run from pillar to post. Karanjawala &amp; Co. in a statement said the top court proposed two offers to Maran and KAL Airways that SpiceJet will give ₹300 crore towards full and final settlement of the dispute and the matter finally gets settled and no further litigation. Second, out of the bank guarantee of ₹270 crore deposited with HC, SpiceJet will give ₹100 crore for now and the order will be passed by the top court to hear petitions, which are pending before the high court expeditiously. The top court asked Singh to discuss the settlement with his client. SEE ALSO: <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/stock-market/news/sbi-and-icici-bank-lost-over-10000-crore-to-abg-shipyard-bank-fraud/articleshow/89559899.cms">SBI and ICICI Bank investors pay the price for the nearly ₹10,000 crore lost to the biggest bank fraud ever in India</a> <meta content="cms.next" name="cmsei" />

Kalanithi Maran and KAL Airways reject SpiceJet's ₹600 crore settlement offer

<ul><li>The 45th meeting of the GST council has clarified matters pertaining to the rate of GST applicable on several services.</li><li>This includes cloud kitchens, alcoholic liquor, ice cream parlours among others.</li><li>Check out the latest news and updates on <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/">Business Insider</a>.</li></ul>The Goods and Services Tax (GST) regime was introduced in 2017 in India to simplify the consumption-based tax system, but several dozens of issues and complexities remain in the system more than four years after its introduction. One of the reasons behind this is the ever-evolving business landscape – for instance, while cloud kitchens have been around in informal setups for a long time now, the formal sector has only caught up recently largely due to the Covid-19 pandemic. With many of these cloud kitchen companies coming under the ambit of GST due to an explosion in popularity, it’s important to understand how the government looks at them, so they can collect GST at the applicable rate. To clear the confusion and clarify what rate of GST is applicable on many of these services, the government has issued a circular that goes into each category’s detail. Here is a summary: <cmsannotation type="cmsannotation" annotationid="Cloud kitchens are restaurants" comment="subhead" text="Cloud kitchens are restaurants">Cloud kitchens are restaurants</cmsannotation> The GST council has clarified in its circular that cloud kitchens provide the same services that a restaurant does, and as such, they would be covered under the definition of a restaurant under the act. This includes regular restaurants, cafes, takeaway services, room services and food delivery services. This means that cloud kitchen firms will have to charge GST at the rate of 5%, without taking any input tax credit (ITC), under the GST composition scheme. Alternatively, they can charge GST at the rate of 18% if they want to claim input tax credit. <cmsannotation type="cmsannotation" annotationid="Ice cream parlours are not restaurants" comment="subhead" text="Ice cream parlours are not restaurants">Ice cream parlours are not restaurants</cmsannotation> Another important aspect that affects consumers directly is whether ice cream parlours are to be considered as restaurants or not. The council observed that ice cream parlours do not engage in any form of cooking at any stage, and as such, are not covered under the scope of restaurants. It noted that these parlours sell already-manufactured ice cream. As such, this would attract GST at 18% and not 5%. <cmsannotation type="cmsannotation" annotationid="Amusement parks with rides" comment="subhead" text="Amusement parks with rides">Amusement parks with rides</cmsannotation> The council clarified that amusement parks, which have casinos or race clubs, will have to charge GST at the rate of 28% on the services provided by them. However, if these parks do not have casinos or race clubs, or if they do not provide access to them, the applicable GST rate will be 18%. <cmsannotation type="cmsannotation" annotationid="Coaching services to students with disabilities" comment="subhead" text="Coaching services to students with disabilities">Coaching services to students with disabilities</cmsannotation> The council clarified that coaching institutes and non-governmental organisations (NGOs) which provide coaching services under the central government’s “Scholarships for students with disabilities” scheme are exempt from GST, and as such, there will be no GST on the coaching services offered by them. <cmsannotation type="cmsannotation" annotationid="Alcoholic liquor is not food" comment="subhead" text="Alcoholic liquor is not food">Alcoholic liquor is not food</cmsannotation> Firms which manufacture alcoholic liquor for human consumption for brand owners will have to charge GST at the rate of 18%. A clarification was sought whether alcoholic liquor is covered under the definition of food and food products, and the GST council underlined that alcoholic liquor is excluded from the purview. As such, this would attract GST at 18% and not 5%, which is otherwise applicable on food and food products. SEE ALSO: <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/can-you-claim-input-tax-credit-on-csr-expense-three-authorities-have-two-different-rulings/articleshow/86609122.cms">Can you claim input tax credit on CSR expense ⁠— three authorities have two different rulings</a> <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/sc-landmark-ruling-in-the-samsung-heavy-industries-case-could-have-a-positive-effect-on-ease-of-doing-business-in-india/articleshow/77148341.cms">Supreme Court’s landmark ruling in the Samsung Heavy Industries case could have a positive effect on ease of doing business in India</a> <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/these-are-the-common-laws-that-you-may-be-inadvertently-breaking-in-india/slidelist/76638782.cms">These are the common laws that you may be inadvertently breaking in India</a> <meta content="cms.next" name="cmsei" />

Cloud kitchens are restaurants, ice cream is not food and other important clarifications that will affect GST rates

<ul><li>Corporate entities will not be able to reduce their tax burden by claiming input tax credit on corporate social responsibility activities.</li><li>This could also lead to confusion amongst corporate entities since AARs of different states have given contrary rulings in this regard.</li><li>Earlier, Uttar Pradesh AAR had allowed ITC on CSR activities, while Kerala AAR took the contrary position.</li></ul>Input tax credit allows registered entities under GST to claim credit on the goods and services tax (GST) that they have paid while purchasing goods or services, which can be offset from the GST that they have to pay after making sales. However, input tax credit (ITC) can’t be claimed on expenses made towards corporate social responsibility (CSR) activities, according to a new order from the Authority for Advance Rulings (AAR) ruling in Gujarat. There are two other rulings from the same authority and one of those allows the input tax credit on CSR. According to the provisions of Companies Act, 2013, companies with a net worth of ₹500 crore or more, or turnover of ₹1,000 crore or more, or net profit of ₹5 crore or more, will have to mandatorily spend on CSR activities. The spend should be a minimum of 2% of the average net profit of the past three years. <cmsannotation type="cmsannotation" annotationid="The root of the problem" comment="subhead" text="The root of the problem">The root of the problem</cmsannotation> The primary issue here is whether CSR activities can be construed as “in course or furtherance of business”, that is, whether they are fundamental for a company to continue its business activities. However, the GST provisions do not define what exactly that would entail. For this purpose, the applicant in this case, Adama India Pvt. Ltd., relied on the provisions of Companies Act, 2013, to state that CSR activities are mandatory as per law, and not undertaking them would cause harm to the business. This, the applicant says, entitles it to take ITC on CSR activities. However, the Gujarat AAR referred to the Companies (CSR Policy) Rules, 2014, to state that CSR activities are not covered in activities “in the course or furtherance of business”. It also cited the provisions of Companies (CSR Policy) Amendment Rules, 2021, which provide a definition of CSR that excludes it from normal business activities. Essentially, the GAAR ruled that since CSR is specifically excluded from the scope of normal business activities, the applicant cannot take ITC on CSR activities. According to Ayush Mehrotra, one of the partners at Khaitan &amp; Co., this is likely to further increase litigation in GST. “The GST framework is wide enough to inter alia include activities without pecuniary benefits and those which are incidental or ancillary to main business. As such, the present ruling will only cause further litigation on GST which was otherwise expected to be a simpler and straightforward framework,” he told Business Insider. <cmsannotation type="cmsannotation" annotationid="Contrary AAR rulings put corporates in a bind" comment="subhead" text="Contrary AAR rulings put corporates in a bind">Contrary AAR rulings put corporates in a bind</cmsannotation> Gujarat AAR’s ruling is in contrast to that of the Uttar Pradesh AAR, which allowed the applicant to take the credit of Goods and Services Tax (GST) paid by the company while purchasing goods to be used for CSR activities. However, it is in line with the Kerala AAR, which passed a similar ruling in the matter of Polycab Wires donating flood relief items. “It is also noteworthy to highlight that since this ruling is in contradiction to prior rulings issued by competent authorities in other states, the urgent need for a national authority is once again being felt to ensure certainty of legal position,” Khaitan added further. The exclusion of ITC on CSR activities will mean that corporate entities will not be able to reduce their tax burden by claiming GST input credit. SEE ALSO: <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/business/startups/news/swiggy-tightens-focus-on-grocery-delivery-as-zomato-steps-out/articleshow/86582683.cms">Swiggy tightens focus on grocery delivery, as Zomato steps out</a> <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/sc-landmark-ruling-in-the-samsung-heavy-industries-case-could-have-a-positive-effect-on-ease-of-doing-business-in-india/articleshow/77148341.cms">Supreme Court’s landmark ruling in the Samsung Heavy Industries case could have a positive effect on ease of doing business in India</a> <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/these-are-the-common-laws-that-you-may-be-inadvertently-breaking-in-india/slidelist/76638782.cms">These are the common laws that you may be inadvertently breaking in India</a> <meta content="cms.next" name="cmsei" />

Can you claim input tax credit on CSR expense ⁠— three authorities have two different rulings

<ul><li>The decision will set a precedent for how Facebook handles posts and propaganda by other world leaders around the world.</li><li>In India, too, this will be watched closely by both the ruling administration under Prime Minister Narendra Modi, as well as by his detractors.</li><li>It may also have a bearing on how these platforms are regulated in each country in the future.</li></ul>Former American President Donald Trump was ousted from Facebook and Instagram on January 6 following the violent attack on Capitol Hill. The move to block Trump from reaching out to his millions of followers had unsettled many around the world, not just the Republicans in the US, who saw it as a threat to free speech While Twitter stuck to its guns, and banned Trump permanently, Facebook said its recently-formed Oversight Board ⁠— an eminent group of lawyers, academics, journalists, and world leaders ⁠— would decide on Trump’s future on social media. The decision will set a precedent for how Facebook handles posts and propaganda by other world leaders around the world. “The Board will announce its decision on the case concerning former US President Trump's indefinite suspension from Facebook and Instagram in the coming weeks,” the committee said in a statement, which also mentioned that it had received 9,000 responses so far. “The Board’s commitment to carefully reviewing all comments has extended the case timeline, in line with the Board’s bylaws. We will share more information soon,” it added. Why it matters in India? In India, too, this will be watched closely by both the ruling administration under Prime Minister Narendra Modi, as well as by his detractors. Most recently, on April 16, <a href=http://www.businessinsider.in/policy/legal/"https://www.theguardian.com/technology/2021/apr/15/facebook-india-bjp-fake-accounts">The Guardian</a> reported that Sophie Zhang, citing a 6,600-word memo from a former Facebook employee, that the social media giant allowed the misuse of its platform by political leaders from around the world, including those from the Bharatiya Janata Party (BJP) in India, to manipulate voters. A similar controversy erupted in August last year, when Ankhi Das, the then public policy executive for Facebook in India, was accused by <a href=http://www.businessinsider.in/policy/legal/"https://www.wsj.com/articles/facebook-hate-speech-india-politics-muslim-hindu-modi-zuckerberg-11597423346">the Wall Street Journal</a> of giving the Hindu nationalists in India a free ride with hate speech. Ankhi Das had to step down. The current dispensation in India has been uncomfortable with the alleged liberal bias of the social media giants long before Trump was removed both from The White House as well as from these platforms. In May 2020, at the height of the violence following the murder of George Floyd, the 46-year old African American in Minnesota, Minneapolis, Twitter decided to remove some tweets from the US President “in public interest”. It caused some curious reactions even in India. “Twitter is no longer pretending to be a neutral platform… So, there is clearly need (sic) for regulating them. However, every curb brings its own wrinkles. Our own first amendment is a good example,” <a href=http://www.businessinsider.in/policy/legal/"https://twitter.com/sanjeevsanyal/status/1266283515978510343">said</a> Sanjeev Sanyal, India’s Principal Economic Advisor. The final decision of the Oversight Board, comprising of members like the former Danish Prime Minister Helle Thorning-Schmidt, former European Court of Human Rights judge András Sajó, Internet Sans Frontières Executive Director Julie Owono, Yemeni Nobel Peace Prize laureate Tawakkol Karman as well as Sudhir Krishnaswamy, a constitution expert from India, will be watched closely. It may also have a bearing on how these platforms are regulated in each country in the future. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/education/news/thousands-of-igcse-students-are-anxiously-awaiting-clarity-on-board-exams-set-to-start-on-april-27/articleshow/82104477.cms">Thousands of IGCSE students are anxiously awaiting clarity on board exams set to start on April 27</a> <a target="_blank" class="c-link c-message_attachment__title_link" href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/business/startups/news/vcs-say-10-unicorns-in-4-months-may-seem-too-small-by-the-end-of-this-year/articleshow/82097709.cms">VCs say 10 unicorns in 4 months may seem too small by the end of this year</a> <a target="_blank" class="c-link c-message_attachment__title_link" href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/science/health/news/check-out-covid-19-vaccine-distribution-across-states-in-india-in-four-charts/slidelist/82100394.cms">Four charts show how COVID-19 vaccines are being distributed in India</a> <meta content="cms.next" name="cmsei" />

Facebook’s Oversight Board has over 9,000 responses in the case related to Donald Trump’s suspension from the platform⁠— a decision is coming soon

<ul><li>The Indian Supreme Court’s ruling in the Samsung Heavy Industries case could help other MNCs in understanding how to declare their income while undertaking certain projects in the country. </li><li>The Supreme Court also had some harsh words for the Income Tax Appellate Tribunal, terming its ruling against Samsung as ‘perverse’. </li><li>Experts suggest that the SC has gone beyond nomenclatures to understand the facts of the matter, and rule based on substance over form. </li><li><a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a></li></ul>Ease of doing business has been a buzzword for a while now, but companies have often found themselves tangled in regulatory and bureaucratic web. However, the Supreme Court’s (SC) ruling in the Samsung Heavy Industries case could boost confidence of multinational companies (MNCs) in doing business in India. It took 14 years for the Samsung subsidiary to get a ruling in the case, but it has likely cleared the path for many other MNCs looking to take up major business projects in the country. Nangia Andersen, a tax advisory and professional services firm noted, “The Supreme Court has reinforced an important principle that instead of general perceptions and sweeping assumptions, tax liability can be imposed based on actual activities carried out by a taxpayer.” Also read: <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/these-are-the-common-laws-that-you-may-be-inadvertently-breaking-in-india/slidelist/76638782.cms">These are the common laws that you may be inadvertently breaking in India</a> What is the case about? Samsung Heavy Industries entered into a turnkey contract with L&amp;T for carrying out surveys, fabrication and more under the Vasai East Development Project. To coordinate better, Samsung set up a project office in Mumbai and subsequently filed a nil income tax return in accordance with the India-South Korea Double Taxation Avoidance Agreement (DTAA). The Income Tax department, however, was dissatisfied with the return and issued a show-cause notice to Samsung. The case subsequently dragged on for nearly 15 years before being ruled in favour of Samsung in the Supreme Court. A turnkey project is one wherein a company designs, constructs and then hands over a business facility to the buyer. A DTAA is an agreement entered between two countries to avoid taxing the same income twice. Income earned by an assessee is taxed in accordance with the DTAA. Why is this ruling significant? The SC ruling in favour of Samsung is significant as it provides clarity on the definition of a project office (PO) and permanent establishment (PE) under the India-South Korea DTAA. This will provide MNCs with a clear understanding of where they stand when it comes to these issues and improve the ease of doing business in India. The SC went so far ahead to call the Income Tax Appellate Tribunal’s ruling against Samsung as ‘perverse’. “Principle of substance over form has been applied to arrive at this decision in favour of the taxpayer,” Nangia Andersen further added, noting the significance of the ruling. Ritesh Kumar, executive director at IndusLaw, also welcomed the ruling, saying, “The Samsung PE ruling is very welcome, especially in these times of evolving national tax environment. It has taken into account the commercial contours of what constitutes the business of an enterprise in deciding the existence of a PE.” SEE ALSO: <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/news/these-are-the-common-laws-that-you-may-be-inadvertently-breaking-in-india/slidelist/76638782.cms">These are the common laws that you may be inadvertently breaking in India</a> <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/policy/legal/supreme-court-of-india-says-buyers-of-auctioned-property-have-to-pay-old-electricity-bills/articleshow/76176153.cms">India’s Supreme Court says those who buy auctioned property will have to pay prior electricity bills</a> <a href=http://www.businessinsider.in/policy/legal/"https://www.businessinsider.in/business/telecom/news/indian-supreme-courts-ego-is-coming-in-the-way-of-peace-between-the-government-and-telcos/articleshow/74687878.cms">Indian Supreme Court's ego is coming in the way of peace between the government and telcos</a> <meta content="cms.next" name="cmsei" />

Supreme Court’s landmark ruling in the Samsung Heavy Industries case could have a positive effect on ease of doing business in India

These are the common laws that you may be inadvertently breaking in India

The Afghan Taliban said it has freed three Indian engineers held hostage for over a year in an exchange for securing the release of 11 of its members, including some high-ranking officials of the militant group, according to a media report on Monday. The prisoner swap happened on Sunday, The Express Tribune quoted two Taliban officials as saying, but it did not disclose the location. The Taliban officials spoke on condition of anonymity, citing what they described as the sensitive nature of the issue, the paper cited a RFE/RL report. The officials refused to say who the militant group exchanged the prisoners with and whether the freed Taliban members were being held by Afghan authorities or US forces in Afghanistan. The officials said the freed Taliban leaders include Sheikh Abdur Rahim and Mawlawi Abdur Rashid, who had served as the insurgent group's governors of Kunar and Nimroz provinces respectively during the Taliban administration before it was deposed by the US-led forces in 2001. The Taliban officials provided a photo and footage of what they said was the freed militants being greeted after their release. There was no immediate comment from Afghan or Indian authorities. Seven Indian engineers working for a power plant in Afghanistan's northern Baghlan Province were kidnapped in May 2018. No group has claimed responsibility for their abduction. One of the hostages was released in March, but the fate of the others remains unknown.<meta content="cms.next" name="cmsei" />

The Afghan Taliban has freed three Indian engineers in exchange for 11 of its own members

Kerala Tourism is targeting a healthy 10-12 per cent growth in both arrivals as well as in earnings in the year to March 2020 as the state has returned to normalcy after the worst deluge in a century had ravaged the entire state last year, a senior official has said. Despite the killer floods, the state had recorded a 6 per cent increase in both footfalls and revenue in 2018. It can be noted that tourism was one of the worst affected business sectors of the state's economy that was impacted by the worst deluge in a century that ravaged the entire state in August-September of 2018. The tourism hot-spot Kochi and the surrounding areas and the Alappuzha, known for its famed boat-houses and backwaters, bore the brunt of the floods bringing the industry to a complete standstill. Apart from remittances, tourism is the mainstay of the Kerala economy with 12 per cent of the state GDP is contributed by this. "After the worst floods last year, tourism has recovered fully from January 2019. We saw 8.07 per cent growth in arrivals in the first quarter at 41,90,468 against 38,77,712 during the same period last year. Looking at the current trends we expect 10-12 per cent growth in both arrivals as well as in earnings this fiscal year," Kerala Tourism information officer Suraj PK told PTI. Despite the floods, Kerala closed 2018 with total footfalls of 16.7 million, up 6 per cent over 2017 while the earnings were over Rs 36,520 crore, up from Rs 28,740 crore, he added. In 2017, the footfalls were 15.67 million, recording an increase of 5.93 per cent. Of the total footfalls, 1.09 million were foreign tourists. The share of revenue from foreign visitors touched Rs 8,764.46 crore. Domestic tourism sector also gained during the period with visitors exceeding 15.6 million, showing an increase of 6.35 per cent, according to the numbers shared by the department. Buoyed by a healthy surge in domestic tourist arrivals, Kerala Tourism is all set to kick-start a new aggressive marketing campaign with a string of partnership meets across 10 cities, showcasing a combination of the state's traditional art forms and its attractive products of touristy appeal. Suraj said tourism will also get a boost from the very first edition of the Kerala's Champions Boat League (CBL), which began from late August. The boat league is conceived in the IPL format. "Every weekend any tourist who comes to Kerala will be able to witness one 'Champions Boat Race' in any of the major backwaters. It will end with the President's Trophy Boat Race in Kollam on November 23, holding 12 races during the intervening weekends. It will be a world-class experience for the guests," he added. To attract tourists, the state has also added an array of new destinations and experiences that will make Kerala a 365-day destination for leisure travel. "A special attraction would be the Jatayu Earth Centre, an hour drive north of the state capital Thiruvananthapuram, which houses a giant statue of Jatayu, he said. The statue is 200-feet long, 150 feet wide and 70 feet in height, making it the largest functional bird sculpture in the world, Suraj added. Another new attraction is the country's first biodiversity museum, which is tucked away on the outskirts of the capital city. This museum, once a boathouse, is now home to the state's first-ever science-on-sphere system. Another first is the Muziris Heritage Project, expected to be completed this year, is the largest heritage conservation project in the country. The remains of a once-thriving port frequented by the Arabs, the Romans and the Egyptians during the first century BC is preserved across 25 museums. Another offering in the historical space is the Spice Route Project that rekindles the 2,000-year-old ancient sea links and the shared cultural and culinary legacies with 30 countries. Kerala is keen to figure prominently in the meetings, incentives, conferences, and events (MICE) tourism destinations as well, Suraj said.<meta content="cms.next" name="cmsei" />

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