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Jawan Killed, 6 Injured as Terrorists Strike Again in J&K

Akash G Varadaraj
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Jawan Killed, 6 Injured as Terrorists Strike Again in J&K

In a terrorists strike  a CRPF jawan was killed and six others, including five soldiers and a special police officer, were injured as terrorists launched another attack in Jammu and Kashmir’s Doda district. This marks the third such incident in as many days, following a civilian being injured in Kathua and an attack on a bus in Reasi that left nine dead.

The terrorists strike  began late last night when terrorists opened fire on a joint team of police and Rashtriya Rifles at an army base in Chattargala. ‘An encounter is underway in the higher reaches,’ said Anand Jain, Additional Director General of Police, Jammu zone, who is supervising the operation.

In the Kathua incident, a terrorist was killed and another is being hunted with the aid of drones in the Hiranagar area. The attackers had solicited water from villagers, arousing suspicion and subsequently opening fire when challenged. ‘There are rumours of multiple casualties, but only one civilian was injured,’ clarified Mr. Jain, dispelling misinformation about the incident.

Mr. Jain also hinted at external instigation behind these attacks, implying involvement from Pakistan without naming the country. ‘Our hostile neighbour always attempts to disrupt peace in our country,’ he stated.

Earlier, a bus en-route to the Shiv Khori cave temple was attacked in Reasi, leading to nine fatalities and 33 injuries after terrorists opened fire, causing the bus to plunge into a gorge. This attack was reportedly orchestrated by Lashkar-e-Taiba commander Abu Hamza. Jammu remains on high alert as security forces intensify efforts to counter these persistent threats.

The recent surge in terrorist attacks in Jammu and Kashmir’s Doda district highlights a significant escalation in regional violence, presenting a severe challenge for security forces. The killing of a CRPF jawan and injuries to six others, including army personnel and a special police officer, underscore the ongoing threat posed by militant groups. The persistence of such attacks, despite intensive counter-terrorism operations, suggests possible external support, as hinted by officials. The current situation demands heightened vigilance and strategic coordination among security agencies to restore stability and prevent further loss of life.

 In these turbulent times, legal and regulatory compliance is crucial for businesses and individuals alike. Vakilsearch offers comprehensive legal solutions tailored to your needs. Whether it’s navigating complex legal frameworks, ensuring compliance, or protecting your rights, our team of experts is here to help. Stay secure and compliant with Vakilsearch’s trusted legal services, designed to give you peace of mind. Contact us today to safeguard your interests and focus on what matters most.

 

Delhi High Court Rules in Favour of Rajat Sharma in Trademark Case

Akash G Varadaraj
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Delhi High Court Rules in Favour of Rajat Sharma in Trademark Case

The Delhi High Court has ruled in favor of renowned journalist Rajat Sharma, barring a man from using an imitation India TV logo and the trademark ‘Baap ki Adalat’ on social media. The news channel accused Ravindra Kumar Choudhary, a self-proclaimed political satirist, of infringing on its logo and trademark rights. Choudhary’s logo ‘Jhandiya TV’ closely resembled India TV’s, and his use of ‘Baap ki Adalat” mimicked the popular show ‘Aap ki Adalat,’ hosted by Sharma.

 The single-judge bench led by Justice Anish Dayal decided on May 30 that the defendant, Ravindra Kumar Choudhary, cannot use Sharma’s image, video, or name in any way that could violate Sharma’s personality rights. This includes using them as a trademark, logo, trading style, domain name, or in social media posts and audio-video content.

The court’s decision followed a lawsuit filed by Sharma and his company, Independent News Service Private Limited, the owner of the IndiaTV news channel. The plaintiffs claimed that Choudhary, a self-proclaimed political satirist, was creating and publishing audio-video content on social media platforms using a logo and the mark ‘Baap Ki Adalat’, which they argued was deceptively similar to IndiaTV’s logo and its well-known show ‘Aap Ki Adalat’.

Sharma emphasised that Choudhary’s use of the logo in his social media posts was identical to the way Sharma used his trademark on his channels. The High Court determined that the plaintiffs had established a ‘prima facie case’ for an ex parte ad interim injunction until the next hearing, noting that the balance of convenience favoured the plaintiffs and that they would likely suffer irreparable harm if the injunction was not granted.

The court’s order stated that the plaintiff had successfully demonstrated a prima facie case warranting the issuance of an ex parte ad interim injunction until the next hearing. It was determined that the balance of convenience was in the plaintiff’s favor, and that they would likely suffer irreparable harm if the requested injunction was not granted. Summons have been issued for the lawsuit, and notice has been given regarding the plaintiffs’ application for interim relief. The next hearing is scheduled for October 18.

 As per our experts this decision not only safeguards the brand integrity of India TV and its popular show ‘Aap ki Adalat’ but also sets a significant precedent for similar cases involving digital content and social media platforms. The court’s order for social media giants to remove infringing content further highlights the evolving legal landscape where online intellectual property rights are vigorously defended.

 In today’s competitive market, protecting your brand identity is crucial.  Vakilsearch  offers comprehensive trademark registration and protection services to ensure your brand remains uniquely yours. 

Our expert team handles everything from filing applications to managing legal disputes, providing you with peace of mind. In light of the Delhi High Court’s recent ruling on trademark infringement, it’s more important than ever to safeguard your brand. Trust Vakilsearch to navigate the complexities of trademark law, so you can focus on growing your business. Secure your trademark with us today and protect your brand’s future.

Oil Minister Pushes for GST on Petrol, Diesel, and ATF

Akash G Varadaraj
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Oil Minister Pushes for GST on Petrol, Diesel, and ATF

 Oil Minister Hardeep Singh Puri announced that the Ministry of Petroleum and Natural Gas (MoPNG) aims to bring petrol, diesel, and aviation turbine fuel (ATF) under the Goods and Services Tax (GST). “We will try. The Minister of State (Suresh Gopi) and I will both work on it,” Puri stated.

To implement GST on these fuels, the MoPNG must recommend it to the Finance Ministry, which will then present it at the GST Council meeting. Both Puri and Gopi took charge of the ministry on Tuesday.

Currently, crude oil, petrol, diesel, ATF, and natural gas are under GST. However, the GST Council must decide the date to start levying the tax, as per Subsection 5 of Section 12 of the 101st Constitutional Amendment Act.

Presently, the central government imposes excise duty on auto fuels, while states levy value-added tax (VAT) and sales tax. Introducing GST on petrol and diesel could lower their prices, a long-standing demand supported by various political parties. However, the GST Council has not reached a consensus, fearing a loss in tax revenue for both states and the center.

In FY24 (provisional), the petroleum sector contributed around ₹7.51-lakh crore to the government exchequer, with the center’s share at ₹4.32-lakh crore and the states’ at ₹3.18-lakh crore. The previous fiscal year saw a similar contribution.

One challenge is the GST’s maximum tax rate of 50%, including cess, while the current tax on petrol and diesel exceeds 60%. As of March 16, 2024, the tax rate on diesel was 50.76%, and on petrol, it was 63.4%. “This is against the principle of the revenue neutral rate (RNR),” a source noted.

Bringing petrol, diesel, and ATF under GST would mark a significant shift in India’s tax landscape, with potential benefits for consumers but substantial implications for government revenues.

The Oil Minister’s proposal to bring petrol, diesel, and aviation turbine fuel (ATF) under the Goods and Services Tax (GST) framework is a significant policy shift that could transform India’s fuel taxation landscape.  However, the transition poses considerable challenges. The current tax revenue from the petroleum sector is substantial, with the centre and states collectively garnering around ₹7.51-lakh crore in FY24. Shifting to GST, which has a maximum tax rate of 50%, could result in significant revenue shortfalls for both state and central governments, given that current tax rates on these fuels are higher. 

Navigating the complexities of GST implementation and compliance can be daunting, especially with significant policy changes on the horizon.  Vakilsearch  offers comprehensive GST registration and compliance services to help businesses stay ahead. Our team of experts provides end-to-end solutions, from initial GST registration to ongoing compliance and advisory services. With potential shifts in GST policies impacting key sectors like petroleum, ensure your business is prepared and compliant with Vakilsearch’s trusted expertise. Let us handle your GST needs, so you can focus on driving your business forward.

GST Rate Rationalisation: A Complex Challenge for NDA 3.0

Monika Shanmugam
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GST Rate Rationalisation: A Complex Challenge for NDA 3.0

New Delhi: The BJP-led government faces a tough task in implementing GST rate rationalisation following a reduced mandate in the Lok Sabha elections. Analysts warn this could impact poorer sections, a concern the government can’t afford to ignore.

A Group of Ministers (GoM) is set to explore consolidating the current four GST slabs into three. Experts caution that altering GST rates on semi-essential items, taxed at 12% or 18%, might increase the tax burden on essential goods, currently taxed at 5%.

Sources close to the development told Moneycontrol that rate rationalisation might not occur soon due to its potential negative impact on lower-income groups. The government’s challenge is to avoid dissatisfaction among rural and lower-income sections, especially after the election results. This issue will be discussed in the 53rd GST Council meeting.

Current GST Structure

Essential and semi-essential goods, making up 70-80% of India’s consumption, are taxed at 5% or 12%. Luxury items face a 28% tax, significantly contributing to government revenue. ‘It’s like a cross subsidy; if rates are rationalised, the government’s revenue may take a hit, but lower-income groups will be more impacted,’ sources stated.

The GoM, led by UP Finance Minister Suresh Khanna, is yet to finalise recommendations. Central Board of Indirect Taxes and Customs (CBIC) Chairman Vivek Johri aims to streamline the current GST rates into three.

Potential Rate Adjustments

Consolidating four rates into three could involve merging slabs, possibly creating an 8% or 15% rate. Abhishek Jain, Partner & National Head of Indirect Tax at KPMG, explains, ‘At 8%, items like edible oil could go from 5% to 8%, impacting lower-income groups.’ Rationalising services taxed at 18% to 15% might reduce government revenue, necessitating an increase in the 12% rate, likely affecting semi-essential goods and services.

Role of States

In the GST Council, the Centre holds one-third of the votes, while states hold two-thirds. States’ consumption patterns will significantly influence policy decisions. Regional parties may push for lower rates in categories based on their consumption patterns, leading to gradual changes rather than immediate consolidation.

Impact on Businesses

Prateek Bansal, Tax Partner at White and Brief – Advocates & Solicitors, warns that reclassification will cause market disruptions, resetting business operations and impacting the ease of doing business. The multiplicity of tax rates has led to classification disputes and legal issues, with similar items taxed differently across states.

Tax experts call for GST simplification to reduce compliance problems and legal disputes. Examples of classification issues include varying tax rates on packaged vs. unpackaged goods and disputes over rates for similar products.

Conclusion

The GST classification system’s complexity, with multiple tax rates, creates tax uncertainty for businesses. Simplifying GST rates into a three-slab structure would provide clarity and reduce interpretational issues. However, balancing revenue needs with the impact on lower-income groups remains a significant challenge for the NDA government.

Busy Days Ahead for FM Nirmala Sitharaman: Jobs, Growth, Budget, and GST on the Agenda

Monika Shanmugam
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Busy Days Ahead for FM Nirmala Sitharaman: Jobs, Growth, Budget, and GST on the Agenda

New Delhi: With Nirmala Sitharaman returning as Finance Minister, her focus will be on fiscal consolidation, job creation, and welfare measures as she prepares the Union Budget 2024-25.

Immediate Priorities:

Sitharaman is expected to continue her policy focus on fiscal consolidation while emphasising job creation and welfare measures in the upcoming Budget. The finance ministry, having allocated ₹1.37 lakh crore for tax devolution to states, remains in high gear, swiftly responding to domestic and international developments.

Union Budget 2024-25:

The top priority is finalising the Union Budget 2024-25, to be presented next month. It’s anticipated that the Budget will maintain a focus on fiscal consolidation while addressing rural distress and boosting manufacturing investments. Support for micro, small, and medium enterprises (MSMEs) facing funding and expansion challenges is also expected.

‘With the cabinet formation now out of the way, focus shifts to the Union Budget,’ said Shreya Sodhani, Regional Economist at Barclays. ‘We may see some changes in spending patterns, with an increase in revenue expenditure and a focus on social sector schemes targeting rural consumption.’

The government’s strong fiscal position, bolstered by a large RBI dividend and higher tax collections, suggests the fiscal deficit target will remain at 5.1% of GDP, with no changes to the borrowing program. The middle class hopes for tax relief, particularly in the capital gains tax regime and higher exemptions under the old income tax system.

Growth and Economic Challenges:

Sitharaman must navigate economic challenges, sustain growth, and curb inflation. Despite global uncertainties affecting export growth, India’s economy has revived post-pandemic, growing over 7% in the three years till FY24 and projected to grow by 7.2% this fiscal. Creating adequate jobs for the growing workforce remains a critical mission.

Legislative Agenda:

A busy legislative agenda awaits the Finance Minister, with several pending economic Bills, including amendments to the Insolvency and Bankruptcy Code and the Companies Laws. Reforms in the insurance sector, amendments to the Insurance Act, 1938, and the Insurance Regulatory and Development Authority of India Act, 1999, are also pending. The draft Digital Competition Bill and the Central Excise Bill, 2024, replacing the Central Excise Act, 1944, are up for consultation.

Goods and Services Tax (GST):

As chair of the GST Council, Sitharaman will tackle various issues, including a pending meeting to discuss the steady revenue growth from the indirect tax regime. The online gaming industry hopes for a review of the 28% tax on the sector. Industry stakeholders also anticipate progress on the rate rationalisation exercise by the Group of Ministers of the GST Council.

With a packed agenda, FM Nirmala Sitharaman’s strategic decisions will be crucial in shaping India’s economic landscape and achieving the government’s ambitious targets.

Hoteliers Call for GST Reform Under New Government

Monika Shanmugam
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Hoteliers Call for GST Reform Under New Government

Mumbai: As the third term of Prime Minister Narendra Modi’s government begins, the Hotel and Restaurant Association of Western India (HRAWI) is urging a reevaluation of the GST structure for food and beverages in hotel restaurants. Currently, GST rates for F&B are linked to room charges exceeding ₹7,500, creating discrepancies.

‘In its last term, the NDA government focused heavily on tourism development. Hotels and restaurants play a crucial role in this growth and need equal attention,’ said Pradeep Shetty, President of HRAWI. ‘Any disparity between the two sectors will hinder our goal of welcoming 100 million tourists by 2047 and achieving a USD 3 trillion tourism economy.’

HRAWI advocates for uniform GST rates for all restaurants, whether inside hotels or standalone, to ensure fairness and stability in the industry. They propose de-linking GST rates from room charges to promote fair competition and sustainability.

‘We congratulate and welcome the newly elected Union Government and are optimistic about the future of tourism and hospitality. With the right focus and policies, India can become a tourism haven for both domestic and international travellers, significantly boosting economic growth,’ Shetty stated.

Shetty also emphasised the need for streamlined regulatory processes to enhance the Ease of Doing Business. Simplifying license procurement, reducing bureaucracy, and clarifying regulations will foster growth and innovation in the sector.

‘The NDA government previously put significant emphasis on developing tourism infrastructure. Hotels and restaurants are vital to this progress and deserve equal attention,’ Shetty added. ‘We urge the government to continue developing tourist circuits, heritage sites, and transportation networks to enhance accessibility and visitor experience.’

The HRAWI’s call to action aims to align the hospitality industry’s growth with the broader goal of making India a premier global tourism destination.

Switching Tax Regimes: What You Need to Know

Monika Shanmugam
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Switching Tax Regimes: What You Need to Know

Mumbai: With the recent tax law changes, taxpayers in India now have two regimes to choose from: the old tax system and the new tax system. Here’s how you can switch between them effectively.

Understanding the Shift

Until FY 2022–2023, the old tax system was the default. However, Budget 2023 made the new tax system the default starting FY 2023–2024. This new system, introduced in Budget 2020, offers reduced tax rates but eliminates most deductions.

Choosing the New Tax Regime

To opt for the new tax regime, individuals and HUFs with business or professional income must submit Form 10IE. ‘If you have business or professional income, file Form 10IE to notify the income tax department,’ says an expert. For those without business income, simply select the new regime in your ITR form—Form 10IE is not needed for ITR-1 or ITR-2 filers.

Flexibility for Business Income

Taxpayers without business income have more flexibility. Starting Assessment Year 2023–24, they will automatically be under the new tax regime but can choose the old regime when filing their ITR. Most ITR forms, like ITR-1 (SAHAJ) and ITR-4 (SUGAM), include an option to select the preferred regime.

Annual Choice for Salaried Individuals

For salaried taxpayers, the new tax regime is now the default. This means reduced tax rates but no deductions for expenses like health insurance or house rent allowance (HRA). However, you can switch back to the old regime if it’s more beneficial for your situation. ‘You can change every year if the old system’s deductions offer better savings,’ an expert advises. To do this, file Form 10-IEA by the ITR filing deadline, usually July 31.

By understanding these steps and requirements, taxpayers can make informed decisions about which tax regime suits them best each financial year.

Deadline Alert: Avoid Common Mistakes When Filing Your ITR

Monika Shanmugam
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Deadline Alert: Avoid Common Mistakes When Filing Your ITR

With the Income Tax Return (ITR) deadline looming on July 31, 2024, taxpayers must steer clear of common pitfalls to ensure a smooth filing process. ‘Many salaried individuals file their ITRs themselves, but mistakes can happen,’ warns CA Ashish Niraj, Partner at A S N & Company, Chartered Accountants. Errors in ITR submissions can render returns void, potentially leading to penalties and legal issues. Here are some common mistakes to avoid:

1. Selecting the Wrong ITR Form

Taxpayers must use the correct ITR form to report all income sources. ‘Directors in companies need to file ITR 2, not ITR 1. Those with incomes above ₹50 lakhs must report assets and liabilities, which can only be done in ITR 2 or ITR 3,’ advises CA Niraj.

2. Non-Reporting of FD/Savings Interest or Dividend Income

Interest income from savings accounts, FDs, and other sources must be reported under ‘Income from other sources.’ ‘Missed entries can lead to discrepancies with AIS and 26AS data, prompting notices from the tax department,’ cautions CA Niraj.

3. Non-Reporting of Capital Gains

Taxpayers often overlook capital gains from mutual fund transactions, shares, land, and other assets. ‘All capital gains must be reported,’ stresses CA Niraj.

4. Clubbing of Income

The income of minor children, with few exceptions, should be clubbed with the parents’ income. ‘Many are unaware and file ITRs with their own income only,’ CA Niraj notes.

5. Personal Details Accuracy

Ensure PAN, Aadhaar, email, contact number, and address details are accurate. Incorrect entries can necessitate a revised return.

6. Missing Income from Previous Employers

Job switchers must include Form 16 details from all employers. ‘Omitting details from previous employers can result in a notice,’ explains CA Niraj.

7. Deductions & Proofs

Claim all eligible deductions and provide proper evidence. ‘Missing deductions can be corrected by filing revised returns,’ says CA Niraj. Incorrect or missing proofs can lead to disallowance of deductions.

8. Revenue or Expenditure Details for Businesses

Business owners must reconcile sales and expenses accurately. ‘Reconcile GST data when reporting revenue,’ advises CA Niraj.

9. Correctly Incorporating Income from 26AS

Form 26AS shows TDS deducted and deposited in your name. ‘Reconcile with 26AS to avoid mismatches,’ highlights CA Niraj.

10. Reporting Exempt Income

All income, taxable or exempt, must be reported. ‘Forgetting to include exempt income is a common oversight,’ CA Niraj points out.

Avoid these mistakes to prevent penalties and scrutiny from the income tax department. Even minor errors can cause significant trouble with the IT department. Stay vigilant and file accurately.

Name Change Sparks New Trademark Dispute in Ahmedabad

Akash G Varadaraj
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Name Change Sparks New Trademark Dispute in Ahmedabad

A restaurateur in Ahmedabad, forced to rename his restaurant after a trademark dispute, now faces a fresh legal challenge over the new name. The district court has prohibited Hals Foods Kitchen Pvt Ltd from using ‘Taam Jhaam’ for its restaurant on Sindhu Bhavan Road, Bodakdev. This decision follows a lawsuit filed by Jahal Enterprise, which claimed prior use and applied for the ‘Taam Jhaam’ trademark on 13 October 2022, under the Copyright Act,1957.

Jahal Enterprise discovered that Hals Foods, led by Sunil Jesani, intended to use a similar name. Hals Foods applied for the trademark a week after Jahal. Consequently, Jahal has accused Hals Foods of trademark infringement.

During the hearing, it was disclosed that Jesani initially named the restaurant ‘Dhaam Dhoom.’ However, in February 2022, Ahura Restaurant Pvt Ltd sued him for trademark infringement. A local court barred Jesani from using ‘Dhaam Dhoom,’ leading to a settlement in 2023 where Jesani agreed to rename his restaurant.

Following the court’s order, Jesani changed the name to ‘Taam Jhaam,’ which Jahal Enterprise argued was also a trademark violation. Furthermore, Jesani’s group in Vadodara opened another restaurant under the same name, prompting another legal dispute. The court stayed the use of ‘Taam Jhaam’ in Vadodara as well.

After reviewing the interim injunction request, the court found the balance of convenience to favor Jahal Enterprise, ordering Hals Foods to cease using ‘Taam Jhaam’ pending the litigation’s outcome.

The recent trademark dispute involving Hals Foods Kitchen Pvt Ltd over the restaurant name ‘Taam Jhaam’ highlights the critical importance of thorough trademark due diligence for businesses. This case exemplifies how failing to secure and verify trademark rights can lead to costly legal battles and operational disruptions. Hals Foods, having already faced a legal challenge that required them to change their restaurant name from ‘Dhaam Dhoom,’ now confronts a similar issue with ‘Taam Jhaam.’ This situation underscores the need for businesses to conduct comprehensive trademark searches and registrations to avoid conflicts and protect their brand identity.

To avoid such complications and ensure compliance with all trademark regulations, businesses should consider professional assistance for their legal and compliance needs. Vakilsearch offers expert trademark registration and annual filing services to safeguard your business interests. Our team of experienced legal professionals will guide you through the intricacies of trademark law, ensuring your brand is legally protected from the outset. Trust Vakilsearch to handle your compliance and legal requirements, allowing you to focus on growing your business with confidence.

MCA Unveils C-PACE for Streamlined Company Exits

Akash G Varadaraj
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MCA Unveils C-PACE for Streamlined Company Exits

The Ministry of Corporate Affairs (MCA) has introduced the Centre for Processing Accelerated Corporate Exit (C-PACE) to simplify the process of removing companies from the MCA Register. This initiative aims to enhance the ease of doing business and facilitate smoother exits for companies.

C-PACE will centralise the procedure, significantly reducing the registry’s burden. It promises stakeholders hassle-free filing and timely, process-bound removals of company names. Established under Sub-section (1) of Section 396, C-PACE will operate through the Registrar of Companies (RoC) to handle and process applications.

R.K. Dalmia, Director of Inspection and Investigation at MCA, inaugurated the C-PACE office on 1 May 2023. Harihara Sahoo, ICLS, has been appointed as the first registrar, working under the Director General of Corporate Affairs (DGCoA), New Delhi.

C-PACE will help maintain a clean registry and offer stakeholders more meaningful data,’ stated an MCA spokesperson. Companies can now anticipate a seamless exit process thanks to C-PACE’s establishment.

The Ministry of Corporate Affairs (MCA) has made a significant move with the launch of the Centre for Processing Accelerated Corporate Exit (C-PACE). This initiative is set to streamline the process of company deregistration, centralising and expediting the procedure. By doing so, the MCA aims to reduce the administrative burden on the registry and provide a more efficient and hassle-free exit for businesses. This development is expected to enhance the ease of doing business in India, allowing companies to focus more on growth and operations rather than procedural complexities during exit.

Navigating the complexities of company deregistration can be daunting. Vakilsearch offers comprehensive services to facilitate smooth and efficient company exits, ensuring compliance with the latest MCA initiatives like C-PACE. Our expert team manages all aspects of the deregistration process, providing hassle-free solutions and timely processing. Partner with Vakilsearch for a seamless exit experience, allowing you to focus on your next business venture with peace of mind.

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