Supreme Court rules Hyatt had a ‘Permanent Establishment’ under DTAA, making its India-sourced income taxable despite global losses. Tax liability upheld for operations through Indian hotel partnerships.
Today, On 24th January, The Supreme Court dismissed a PIL filed by Ashwini Kumar Upadhyay challenging the constitutionality of Tax Deducted at Source (TDS) provisions. The petition argued that TDS imposes undue administrative and financial burdens on taxpayers. However, the court rejected these concerns, emphasizing the importance of TDS in ensuring tax compliance. This decision reinforces the legal validity of the current TDS framework.
The Kerala High Court ruled that Bharat (BH) registration vehicles must pay motor vehicle tax according to state rates, not those set by the Central Government. The decision arose from vehicle owners challenging registration refusals due to tax issues. The Court affirmed that motor vehicle taxation is exclusively a state matter under the Constitution.
A PIL filed in the Supreme Court Today (Dec 26) sought to scrap the TDS system calling it “arbitrary and irrational” and violative of various fundamental rights, including equality. The PIL challenged the tax deducted at source or TDS framework under the Income Tax Act, which mandates the deduction of tax at the time of payment by the payer and its deposit with the income tax department. The deducted amount is adjusted against the payee’s tax liability.
Today, On 23rd October, the Supreme Court ruled that state governments can tax and regulate industrial alcohol, with Justice BV Nagarathna dissenting. She argued that such authority undermines uniform development and emphasized that only the Union government can legislate on this issue. The majority found industrial alcohol included under “intoxicating liquor.”
A nine-judge Constitution Bench of the Supreme Court Today (Oct 4) rejected review petitions against its judgment which held that royalty paid by mining operators to the Central government is not a tax and that states have the power to levy cesses on mining and mineral-use activities. Justice Nagarathna dissented from the majority and issued notice on the review petitions.
![[Breaking]‘Ignores Macro-Economic Impact’: Centre Seeks Review of Supreme Court’s 8:1 Ruling Upholding Power of States to Tax Minerals](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/07/Mineral-Royalty-Case.jpg?resize=447%2C367&ssl=1)
Today (April 5th), CJI DY Chandrachud, Justices JB Pardiwala and Manoj Misra, granted the Central government’s request to transfer petitions from various High Courts. These petitions challenge notices issued by Goods and Services Tax (GST) authorities to gaming companies for alleged tax evasion and underpayment. A total of 27 petitions from 9-HC’s were transferred to SC.
Day-3 | 9-Judge Bench- The Supreme Court clarified that the power to impose a tax on mineral rights lies with the states, not the Parliament, and emphasized the need to preserve this authority. The court is deliberating on whether the royalty collected by the Centre on mining leases qualifies as a tax. The hearing will resume on March 5.