Tax Law

An Advance Pricing Agreement (APA) is a binding agreement between a taxpayer and the Central Board of Direct Taxes (CBDT) that fixes the transfer pricing methodology for international transactions for a prospective period of up to five years, with the option of rolling the agreed methodology back by four years. The APA framework was introduced in India in 2012 and is now codified in Sections 168 and 169 of the Income-tax Act, 2025 (which replaced the earlier Sections 92CC and

Record 219 APAs Signed in FY 2025-26 The Central Board of Direct Taxes (CBDT) signed a record 219 Advance Pricing Agreements (APAs) in FY 2025-26, taking the cumulative total past the 1,000 mark since the programme's inception in 2012. FY 2024-25 had already set a milestone for bilateral engagement, with 65 Bilateral APAs (BAPAs) signed in a single year. The acceleration reflects both growing taxpayer confidence in the programme and CBDT's investment in dedicated APA teams wi

On August 20, 2026, the Supreme Court of India (Justice Vikram Nath and Justice Prasanna B. Varale) dismissed the Revenue's review petition challenging the Delhi High Court's landmark ruling that telecom towers qualify as "plant and machinery" for the purposes of Input Tax Credit (ITC) under GST. The ruling, which quashed a tax demand of Rs 5,454.6 crore covering FY18 to FY24, has opened the door for infrastructure intensive businesses across India to reclaim substantial ITC

Introduction In a decisive ruling that brings finality to one of the most contentious disputes in the Goods and Services Tax (GST) regime, the Supreme Court of India has dismissed the Centre's review petitions challenging the eligibility of telecom companies to claim Input Tax Credit (ITC) on mobile telecommunication towers. The order, delivered on August 19, 2026, by the Bench of Justices Vikram Nath and Prasanna B. Varale, reaffirms the position that telecom towers qualify

In a ruling with significant implications for the dual-qualified professional community, the Delhi High Court has held that advocates who serve as insolvency professionals under the Insolvency and Bankruptcy Code, 2016 (IBC) must obtain GST registration and discharge their GST liability under the forward charge mechanism, not the reverse charge mechanism that ordinarily applies to legal services. The judgment, delivered on August 13, 2026 by a Division Bench of Justices Prath

The Central Board of Direct Taxes (CBDT) has notified the Foreign Assets of Small Taxpayers, Disclosure Scheme (FAST-DS) Rules, 2026 through Notification No. 114/2026 dated 14 August 2026. The scheme, which came into force on 16 August 2026, provides a one-time, time-bound window for eligible taxpayers to voluntarily disclose specified foreign assets and foreign income that were not previously reported in their income-tax returns. The disclosure window will remain open until

On July 24, 2026, the Central Board of Direct Taxes (CBDT) released a comprehensively revised Guidance Note on the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). Issued by the Ministry of Finance's Foreign Tax and Tax Research Division, the revised Guidance Note aligns the reporting framework for financial institutions with section 508 of the Income Tax Act, 2025, Rules 238 to 240, and Form 166 of the Income Tax Rules, 2026. The document i

Foreign businesses operating in or with India face the critical question of whether their activities create a "permanent establishment" (PE) under India's network of double taxation avoidance agreements. A PE determination has significant consequences: if a foreign enterprise is found to have a PE in India, profits attributable to that PE become taxable in India. This guide provides a step-by-step framework for identifying, evaluating, and mitigating PE risk under the major c

The Goods and Services Tax Network (GSTN) issued Advisory No. 664 on June 17, 2026, announcing a significant change to India's e-Invoice and e-Way Bill ecosystem. Starting August 1, 2026, the Ship-to GSTIN field will become mandatory in all e-Invoice and e-Way Bill API transactions where ship-to details are furnished. This change, originally scheduled for June 15, 2026, was deferred by approximately six weeks following extensive industry representations from trade bodies, sof

The Supreme Court, on August 5, 2026, held that mere grouping and fitting together of imported photocopier modules for dispatch to customers does not amount to "manufacture" under the Central Excise Act, 1944, and therefore does not attract excise duty. A bench of Justice S.V.N. Bhatti and Justice N.V. Anjaria dismissed the Revenue's appeal in Commissioner of Central Excise, Hyderabad-IV v. M/s Xerox India Ltd. and Others [2026 LiveLaw (SC) 767], upholding the CESTAT order th

Donating to charitable causes not only supports social welfare but can also provide significant tax benefits under Indian income tax law. Section 80G of the Income Tax Act, 1961 allows taxpayers to claim deductions for donations made to specified funds, institutions, and charitable organizations. The deduction ranges from 50 percent to 100 percent of the donated amount, depending on the type of recipient, and may be subject to a qualifying limit based on the taxpayer's adjust

Filing an appeal before the Income Tax Appellate Tribunal (ITAT) often involves a significant financial obligation. Under Section 254(2A) of the Income Tax Act, 1961, as amended by the Finance Act 2020, an assessee seeking a stay of the disputed tax demand must deposit at least 20 percent of the demand amount or furnish equivalent security. However, in cases of genuine financial hardship, the ITAT has the power to waive or reduce this requirement. This article explains the le

When a customs officer assesses a higher duty on your imported or exported goods than you believe is correct, the law provides a structured appellate mechanism to challenge such assessments. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) is the specialised quasi-judicial body that hears appeals against orders passed by customs authorities across India. Whether the dispute involves classification of goods, valuation, rate of duty, or the legality of confiscati

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) is the specialised appellate body that hears second appeals arising from orders passed under the Customs Act, 1962, the Central Excise Act, 1944, and the service tax provisions of the Finance Act, 1994. Filing an appeal before CESTAT requires careful compliance with prescribed forms, limitation periods, and mandatory pre-deposit requirements. This guide explains the complete process for filing an appeal before CE

An e-stamp certificate is a digitally generated document that serves as proof of stamp duty payment for legal and financial transactions. Introduced as part of India's push towards digitisation of government services, e-stamping has largely replaced the traditional system of physical stamp papers in most states. The system is operated by the Stock Holding Corporation of India Limited (SHCIL), which functions as the authorised Central Record Keeping Agency. Each e-stamp certif