Loading...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 Filters / Advanced Search ❯
TEXT

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws---- ❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    News Bills
    Rationalisation of Appeals to the Appellate Tribunal
    News Bills
    Reducing the time provided for furnishing TP report
    News Bills
    Introduction of the authority of Joint Commissioner (Appeals)
    News Bills
    Extension of time for disposing pending rectification applications by Interim Board for Settlement
    News Bills
    Defining the cost of acquisition in case of certain assets for computing capital gains
    News Bills
    Prevention of double deduction claimed on interest on borrowed capital for acquiring, renewing or re...
    News Bills
    Alignment of provisions of section 45(5A) with the TDS provisions of section 194-IC
    News Bills
    Rationalisation of exempt income under life insurance policies
    News Bills
    Preventing permanent deferral of taxes through undervaluation of inventory
    News Bills
    Special provision for taxation of capital gains in case of Market Linked Debentures
    News Bills
    Limiting the roll over benefit claimed under section 54 and section 54F
    News Bills
    Increasing rate of TCS of certain remittances
    News Bills
    TDS and taxability on net winnings from online games
    News Bills
    Preventing misuse of presumptive schemes under section 44BB and section 44BBB
    News Bills
    Removal of exemption from TDS on payment of interest on listed debentures to a resident
    News Bills
    Tax avoidance through distribution by business trusts to its unit holders
    News Bills
    Removal of exemption of news agency under clause (22B) of section 10
    News Bills
    Extending deeming provision under section 9 to gift to not-ordinarily resident
    News Bills
    Extending the scope for deduction of tax at source to lower or nil rate
    News Bills
    Increasing threshold limits for presumptive taxation schemes
❮
❯
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
News Bills
Show AI Summary
Appeals to Appellate Tribunal broadened to include penalties by Commissioner (Appeals) and revision orders by senior commissioners.
The amendment expressly permits appeals to the Appellate Tribunal against penalty orders imposed by Commissioner (Appeals) under recent penalty provisions, and permits appeals against revision orders by senior commissioners and related rectifications. It also broadens the right to file a memorandum of cross-objections so respondents may file cross-objections in all cases that may be appealed to the Appellate Tribunal, correcting the previous limitation to appeals originating only from Commissioner (Appeals).
News Bills
Show AI Summary
Timeframe for transfer pricing document production shortened; limited extension remains to manage TP proceeding timelines.
The amendment reduces the period to furnish transfer pricing information or documents to ten days from the date of a notice, with an available extension on application by the taxpayer not to exceed an additional thirty days; the Assessing Officer or the Commissioner (Appeals) may require such production in proceedings concerning international transactions or specified domestic transactions. The change is aimed at streamlining timelines for examination of submitted material and takes effect from 1st April, 2023.
News Bills
Show AI Summary
Joint Commissioner (Appeals) authority created to hear specified first appeals with transfer, rehearing and scheme-based procedural powers.
Introduction of a Joint Commissioner (Appeals) as a first appellate authority for specified orders of Assessing Officers below Joint Commissioner rank, vested with powers similar to Commissioner (Appeals). The proposal lists appealable orders (assessment, reassessment, withholding/collection intimations, penalty and rectification amendments), permits transfers of pending appeals between Commissioner (Appeals) and Joint Commissioner (Appeals) with rehearing rights, allows the Government to notify a Scheme to streamline procedures and remove direct interface technologically, and empowers the Board to exclude cases or classes; consequential definitional amendments align the new office.
News Bills
Show AI Summary
Extension of time for settlement procedures to allow interim boards more time to dispose rectification applications.
The Finance Act, 2021 abolished the Settlement Commission retrospectively from 01.02.2021 and authorized Interim Boards for Settlement to handle pending applications; clause (iv) of sub section (9) of section 245D excluded the period from 01.02.2021 until constitution of the IBS from time limit computation and assured a minimum remaining period, and the Finance Bill, 2023 proposes substituting that clause to extend specified expiring time limits to 30.09.2023 with retrospective effect from 01.02.2021 to allow IBS additional time for disposing rectification and amendment applications.
News Bills
Show AI Summary
Cost of acquisition deemed nil for certain intangible assets, altering capital gains computation and taxability.
Amendment treats the cost of acquisition and cost of improvement of capital assets that are intangible assets or other rights for which no consideration was paid as Nil for computing capital gains, clarifying that assets not covered by existing enumerated provisions shall have no cost basis, and thereby resolving judicial uncertainty about taxability of gains on such transfers. The amendment applies prospectively from the Bill's stated effective date and to subsequent assessment years.
News Bills
Show AI Summary
Prevention of double deduction: interest claimed under house property or chapter VIA excluded from cost of acquisition for capital gains.
The Finance Bill proposes a proviso to section 48 that the cost of acquisition or cost of improvement shall exclude any interest amount claimed as a deduction under section 24 or under Chapter VIA, to prevent double deduction when computing capital gains.
News Bills
Show AI Summary
Capital gains computation for joint development agreements clarified to include consideration received by any mode, aligning with TDS rules.
Amendment clarifies that for capital gains under section 45(5A) on transfers under joint development agreements, the full value of consideration equals the stamp duty value of the assessee's share increased by any consideration received in cash, by cheque or draft, or by any other mode, aligning the computation with the TDS treatment under section 194-IC and addressing taxpayer misinterpretation.
News Bills
Show AI Summary
Taxation of high-premium life insurance policies: exempt on death, otherwise taxable under other sources with premium deduction available.
Policies other than unit linked insurance policies issued on or after 1 April 2023 will lose exemption under clause (10D) if premium payable in any previous year during the policy term exceeds the prescribed threshold; death receipts remain exempt. For multiple policies issued on or after that date, exemption applies only where the aggregate premium does not exceed that threshold in any year. Non-exempt sums (including bonuses) will be taxable under the head "Income from Other Sources" with computation rules and a deduction for premium allowed only if not earlier claimed.
News Bills
Show AI Summary
Inventory valuation can be directed to a cost accountant, with mandated report, government-paid expenses, and hearing rights preserved.
Tax authorities may direct an assessee to obtain inventory valuation by a cost accountant nominated by the senior commissioner; the assessee must furnish a prescribed signed valuation report. Valuation expenses and incidental costs, including the cost accountant's remuneration, will be determined by the senior commissioner under prescribed guidelines and paid by the Central Government. Except for assessments under section 144, the assessee must be given an opportunity to be heard on material derived from such valuation. Consequentially, the valuation period is excluded from limitation computations and rules may prescribe the report form and particulars.
News Bills
Show AI Summary
Taxation of Market Linked Debentures reclassified as short-term capital gains taxed at applicable rates under new provision.
The proposal inserts a new provision treating gains on transfer, redemption or maturity of Market Linked Debentures as short-term capital gains taxable at applicable rates by treating the full consideration received, reduced by cost of acquisition and transfer-related expenditure, as capital gains from a short-term capital asset; it also defines Market Linked Debentures as debt-principal securities with returns linked to market returns or so classified by the market regulator and makes the change prospective.
News Bills
Show AI Summary
Limit on rollover benefit under sections 54 and 54F restricts excessive deductions for high-value residential purchases.
The Finance Bill proposes a deemed cost cap so that where the cost of a new residential asset exceeds ten crore rupees, the cost for computing the deduction under the rollover relief provisions will be treated as ten crore rupees, limiting the maximum deduction. A proviso confines the Capital Gains Account Scheme deposit provision to capital gains or net consideration up to that cap. The amendments are prospective, effective 1 April 2024 and applicable to the assessment year 2024 25 and thereafter.
News Bills
Show AI Summary
TCS increase on foreign remittances: higher withholding expands coverage and raises compliance burden for remitters.
Increase in the rate of TCS is proposed by amending sub section (1G) of section 206C to raise withholding on certain foreign remittances and sales of overseas tour packages; education and medical remittances retain prior treatment under specified conditions, while tour packages and other remittances become subject to higher rate without threshold, effective from the stated date in the Finance Bill.
News Bills
Show AI Summary
TDS on online game winnings restructured: withholding on net account winnings and withdrawals under new targeted provisions.
Amendments require TDS on winnings to be applied to amounts or aggregates exceeding the threshold in a financial year; section 194B is expanded to include gambling and excludes online games from 1 July 2023. A new section 194BA mandates TDS on net winnings in user accounts at year-end and on withdrawals, with prescribed computation and payer obligations where winnings are in kind. Administrative guidelines may be issued to resolve implementation issues. Definitions for computer resource, internet, online game, online gaming intermediary, user and user account are prescribed. Section 115BB is amended to exclude online-game winnings and a new section 115BBJ establishes a separate tax computation for net winnings from online games integrated into overall tax liability.
News Bills
Show AI Summary
Presumptive taxation restrictions: bar on set off of carried forward losses and unabsorbed depreciation when presumptive profits are declared.
The Bill proposes that where an assessee declares profits under the presumptive taxation scheme for specified non resident activities, no set off of unabsorbed depreciation or brought forward business loss shall be allowed for that previous year, notwithstanding the general set off and carry forward provisions; the amendment is prospective and will apply from the notified effective date.
News Bills
Show AI Summary
TDS exemption removal on interest requires withholding for payments on listed dematerialized debentures to resident holders.
The Finance Bill proposes deletion of the proviso clause that exempted TDS on interest paid to resident holders of listed dematerialized debentures, thereby requiring tax deduction at source on interest payments to such resident holders; the amendment addresses under-reporting of interest income and takes effect from 1 April, 2023.
News Bills
Show AI Summary
Taxation of business trust distributions: non-characterised payouts to unit holders treated as taxable income from other sources.
Proposed amendments tax sums received by unit holders from business trusts that are not interest, dividend or rental receipts and not chargeable under the pass-through provisions by treating them as income from other sources. Where sums represent redemption of units, the receipt is reduced by the cost of acquisition to the extent of the amount received. Amendments also exclude such sums from the trust pass-through subsections and expand the definition of income to include them, with prospective application.
News Bills
Show AI Summary
Tax exemption for notified news agencies withdrawn, ending clause-based relief and effective from the assessment year starting April 2024.
The finance bill withdraws the tax exemption available to notified news agencies under clause (22B) of section 10 by inserting a proviso excluding any income of such agencies for the previous year relevant to the assessment year beginning on or after 1 April 2024; the amendment takes effect from 1 April 2024 and applies to assessment year 2024-25 and subsequent years.
News Bills
Show AI Summary
Deeming provision for gifts extended to not ordinarily residents, bringing certain inbound gifts within the Indian tax net.
Clause (viii) of sub section (1) of section 9 is proposed to be amended to extend the deeming rule so that sums received without consideration by a not ordinarily resident from a person resident in India are treated as income deemed to accrue or arise in India; the change is intended as an anti abuse measure to capture gifts not presently within the scope of the existing deeming provision and will apply prospectively to specified assessment years.
News Bills
Show AI Summary
Certificate for lower or nil tax deduction extended to business trust interest, enabling reduced TDS where exemptions justify it.
The amendment extends eligibility for a certificate for deduction of tax at a lower or nil rate to sums on which tax is required to be deducted in relation to business trust interest income, enabling reduced deduction where exemptions (for example, for certain sovereign wealth and pension funds) justify such reduction; the change applies prospectively from 1 April, 2023.
News Bills
Show AI Summary
Presumptive taxation thresholds increased for businesses and professionals, conditional on low cash receipts and audit exemption.
Eligibility thresholds for presumptive taxation schemes are increased for businesses and professionals on the condition that cash receipts do not exceed a prescribed low percentage of total turnover or gross receipts; cheques and non-account-payee bank drafts are deemed cash for this purpose. Persons declaring profits under the presumptive schemes and meeting the cash-receipt condition are exempt from the statutory audit requirement, with the amendments effective from the stated assessment year.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

Contractual Reimbursement of Incremental GST on Works Contracts and the Statutory-Contractual Divide

19 September, 2026

Contents
Acts
Plus +
Summary
Note

Note

-

Bookmark

Print

Print

This is a neutral professional article. The judgment is analysed in the context of its factual background, issues framed, and conclusions reached by the Court.

2026 (7) TMI 519 - KARNATAKA HIGH COURT

At a Glance

  • The obligation of a works contractor to discharge GST is determined under the applicable GST statute. The separate question whether the employer must bear or reimburse an incremental GST burden is governed by the contract between the contractor and the employer.
  • A contractual clause stating that quoted rates are "inclusive of sales and other taxes" is materially relevant. It may affect whether the contractor assumed the risk of a subsequent tax incidence, subject to the construction of the agreement as a whole.
  • For contracts spanning the transition to GST, a contract-wise reconciliation of pre-GST and post-GST work may be commercially and legally relevant. It does not, however, authorise alteration of statutory return, assessment, interest, penalty or limitation requirements.
  • The reimbursement direction in 2026 (7) TMI 519 - KARNATAKA HIGH COURT is confined to the concerned employer. Tax authorities cannot be directed in a contractual reimbursement dispute to permit revised returns contrary to statute or to waive statutory interest, penalty or limitation.
  • Where the contract supports a tax-adjustment mechanism, a supplementary agreement may document the revised GST-inclusive value. Reimbursement is not automatic merely because GST becomes payable; it depends upon the contractual allocation of tax risk and the resulting computation.

Background & Context

Works contracts that continued across the commencement of the GST regime gave rise to a recurring commercial dispute: the contractor remained statutorily liable to pay GST on taxable supplies, but the tendered price or schedule of rates may have been formulated under the earlier indirect-tax structure. Contractors consequently sought recovery of the additional or differential tax burden from government departments and other employers.

The dispute considered in 2026 (7) TMI 519 - KARNATAKA HIGH COURT concerned works or composite-supply contracts arranged in three broad settings: contracts tendered and executed before the GST transition; tenders issued before the transition but agreements entered thereafter using the earlier schedule of rates; and tenders issued after the transition but based on the earlier schedule of rates. The agreements placed before the court expressly stipulated that the contractor's quoted rates would be deemed to be "inclusive of sales and other taxes".

The contractors contended that the earlier schedule of rates did not factor central, State or integrated GST and that the GST levy created an incremental burden. The employer-side position, in substance, was that reimbursement could not be directed against the State generally and that the contractual terms controlled the allocation of the claimed amount.

The decision draws a necessary boundary between two legal relationships. The tax relationship is between the taxable person and the statutory tax administration. The reimbursement relationship is between the contracting parties. The first is controlled by the GST enactments; the second depends on contractual rights and obligations. Treating a contractual adjustment claim as though it modified the statutory GST framework is the central error corrected by the appellate decision.

Key Issues / Provisions

Works contract and composite supply

Section 2 of the Central Goods and Services Tax Act, 2017 defines a "works contract" in section 2(119) as a contract for specified activities concerning immovable property "wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract". This definition identifies the statutory character of the underlying transaction; it does not itself determine which contracting party must ultimately absorb a tax-cost increase.

The same provision defines "composite supply" in section 2(30) as two or more taxable supplies, naturally bundled and supplied together in the ordinary course of business, one of which is a principal supply. "Consideration" in section 2(31) includes payment made or to be made "in respect of, in response to, or for the inducement of" a supply. These definitions matter because the contractual price, tax treatment and claimed adjustment must correspond to the actual supply and consideration structure.

Statutory levy and the person liable to pay

Section 9 of the Central Goods and Services Tax Act, 2017 provides in section 9(1) that central tax is levied on intra-State supplies, on the value determined under section 15, at notified rates, and "shall be paid by the taxable person". The provision establishes the statutory incidence and payment liability. It does not, by its own force, transfer the economic burden of GST to an employer under a works contract.

That distinction is decisive. A contractor may be liable to discharge GST as the taxable person, while its claim to recover the corresponding amount from the employer still requires an enforceable contractual basis, such as a tax-variation clause, change-in-law clause, price-adjustment provision, tender clarification, letter of award, or subsequent agreement.

Value of supply and additional contractual consideration

Section 15 of the Central Goods and Services Tax Act, 2017 states in section 15(1) that the value of supply is ordinarily the "transaction value", namely the price actually paid or payable where supplier and recipient are unrelated and price is the sole consideration. Section 15(2) includes, among other matters, an amount which the supplier is liable to pay in relation to the supply but which is incurred by the recipient and not included in the price actually paid or payable.

Accordingly, if a contractual reconciliation validly produces an additional sum payable by the employer for the supply, the parties must separately examine the GST consequences of that revised consideration under the statutory scheme. But valuation consequences cannot be assumed merely from a reimbursement demand; they follow from the true contractual entitlement and the applicable GST provisions.

Detailed Analysis

The governing distinction: statutory liability is not contractual reimbursement

In 2026 (7) TMI 519 - KARNATAKA HIGH COURT, the court held that entitlement to reimbursement of incremental tax paid or payable due to GST is "strictly a matter" between the contractors and their respective employers. The contract cannot alter the statutory scheme governing levy, assessment, recovery and enforcement of GST. The contractor's liability under the relevant GST enactment must therefore be determined strictly under statute, irrespective of the employer's reimbursement obligation.

The court consequently construed the reimbursement direction as operating only against the concerned employer, and not against tax authorities. It set aside the impugned directions insofar as they were directed to tax authorities or the State. More specifically, directions that would permit revised returns contrary to statute, or waive statutory limitation, interest or penalty, were held unsustainable. The practical result is carefully confined: a contractual tax-adjustment claim may survive for determination against the employer, but it cannot generate an exemption from statutory GST compliance.

Contract interpretation remains the starting point

The phrase "inclusive of sales and other taxes" was expressly present in the agreements considered in the appellate decision. Such wording is not inconsequential. It requires examination of whether the parties intended the quoted price to be all-inclusive notwithstanding future changes in tax burden, or whether other contractual material preserves a right to adjustment for a post-bid tax change.

The inquiry is necessarily document-specific. The agreement, bid conditions, schedules of rates, addenda, clarifications, letter of award, tax clauses and amendment provisions must be read harmoniously. A general inclusive-tax clause may have to be reconciled with a specific clause that permits equitable adjustment on a change in law. Conversely, a demand founded only on the fact that GST became payable cannot displace an unqualified contractual allocation of tax risk.

Contract-wise methodology as a reconciliation tool

The earlier decision in 2023 (6) TMI 93 - KARNATAKA HIGH COURT adopted a structured methodology for transitional works contracts. It contemplated identification of work executed and payments received under the earlier tax regime; determination of balance work undertaken after GST commencement; derivation of material and earlier-tax components; deduction of KVAT and service-tax components where applicable; addition of applicable GST; and set-off of eligible input tax credit against output GST for contractors assessed under regular VAT. The tax difference was then to be calculated contract-wise.

That methodology remains useful as a factual and commercial means of arriving at a revised GST-inclusive work value. It also recognises that a tax component is not necessarily a contractor's profit element. However, after the appellate ruling, the methodology cannot be understood as authority for judicially altering statutory GST procedures. Its relevance is confined to determining the inter se contractual adjustment between contractor and employer, subject to the contract and the applicable statutory framework.

The earlier decision also contemplated a supplementary agreement where the revised GST-inclusive value of the balance work exceeded the original agreement value, with reimbursement or recovery following the computation. A supplementary agreement is therefore an appropriate instrument where the parties agree that a contractual adjustment is due. It should record the basis of segregation, tax components excluded, GST applied, input-tax-credit treatment where relevant, revised value and the consequent payment adjustment.

Comparison with express tax-adjustment clauses

In 2023 (7) TMI 1292 - JHARKHAND HIGH COURT, reimbursement followed from the construction of an amended contractual clause, a pre-bid clarification and the letter of award. The expressions "affected transactions", "in totality" and "equitable adjustment" were held to cover the GST impact on all affected transactions, including indirect or bought-out items. The employer could not revive an exclusion that the amended clause had deleted. The authority illustrates that explicit contractual language may establish a broad reimbursement obligation despite general tax-risk disputes.

That decision also applied the change-in-law principle under section 64A of the Sale of Goods Act, 1930 in relation to the supply contract before it. Its utility in a works-contract dispute is contextual rather than automatic: entitlement must still arise from the governing contract and the nature of the transaction. Under the appellate decision, such contractual analysis cannot become a basis for directions that modify GST administration.

In 2023 (8) TMI 1531 - KARNATAKA HIGH COURT, the court directed reimbursement in a post-GST contract where the contractor had completed the work and the department had not acted on the representation. The decision demonstrates that, where the contractual setting and factual basis support recovery of the GST component, mandamus may be granted against the employer. Its application is necessarily subject to the appellate clarification that the direction runs against the employer alone and not the tax administration.

In 2019 (8) TMI 858 - MADRAS HIGH COURT, an ongoing pre-GST works contract was dealt with through a mechanism that estimated subsumed taxes, deducted that component from the original contracted value, added applicable GST and contemplated a supplemental agreement. The authority supports the proposition that a transitional contract need not be treated as having a permanently frozen value where the governing adjustment mechanism requires tax reconciliation. It does not dispense with the need to establish that the relevant contractual or administrative mechanism applies to the particular contract.

Practical Implications

  • Contractors should segregate the claim into work performed before and after the GST transition and avoid presenting the full contract value as a single undifferentiated GST claim.
  • Employers should examine the exact tax clause before accepting or rejecting reimbursement. Particular attention is required where the tender rate is described as inclusive of taxes, but other clauses provide for variation, equitable adjustment or change in law.
  • A claim computation should identify the original agreed value, earlier-tax components, applicable GST on the post-transition component, eligible input tax credit where relevant, amounts already paid, and the net differential claimed or recoverable.
  • Where adjustment is contractually justified, parties should document it through a supplementary agreement or other authorised contractual instrument. The revised value should be clearly identified as GST-inclusive or otherwise, as the case may be.
  • GST returns, amendments, interest, penalty and limitation must be addressed under the relevant statute. A contractual reimbursement proceeding does not create a separate route for statutory relaxation.
  • Representations and pleadings should seek relief from the contracting employer with precision. A request to compel tax authorities to administer GST contrary to statutory requirements is inconsistent with the appellate ruling.

Key Takeaways

Incremental GST on a works contract raises two distinct questions that must not be conflated. The first is the contractor's statutory tax liability, which arises and is administered under the GST enactments. The second is the economic incidence of that liability as between contractor and employer, which turns on the contract.

2026 (7) TMI 519 - KARNATAKA HIGH COURT confirms that courts may confine a reimbursement direction to the employer where the contract supports such a claim, but cannot use that dispute to revise the statutory GST regime or waive statutory interest, penalty or limitation. The earlier transitional decisions remain relevant for disciplined, contract-wise computation and for recognising express tax-adjustment clauses. Their use must, however, be consistent with the appellate boundary between contractual reimbursement and statutory tax administration.

 


Full Text:

2026 (7) TMI 519 - KARNATAKA HIGH COURT

Topics

Acts Income Tax