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We started in 1985 in a single room set up by the two founders with no prior experience of working in a law firm. Both the founders had outstanding academic records and focused on their deep understanding of the law to form the foundation of the firm.
Integrity, Knowledge and Passion are the principles that resonate with every member of our LKS family and the work that we do. These values drive us to build a community of legally sound professionals and well-serviced clients.
Everything we have accomplished over the last four decades is a result of our unique way of thinking which is deeply influenced by our core values and principles that define us.
We and our professionals consistently garner appreciation for the quality of our services and the depth of our legal expertise. This consistent acknowledgment serves as a testament to our unwavering commitment to exceed expectations.
Compulsorily Convertible Debentures: Debt or Equity?
By Neha Sharma
Compulsorily Convertible Debentures (‘CCDs’) are hybrid instruments, being debt at the time of issue along with a certainty to get converted into equity. Since the guidelines on FDI treat CCDs as equity for the purposes of reporting to the RBI, a question arises as to whether they are to be regarded as equity capital under all other laws as well. The article in this issue of Direct Tax Amicus discusses the question from the perspective of income-tax law, observing that the return on debt and equity have distinct treatment, both in the hands of the lender/ investor and the borrower/ issuer. Discussing various case law, the article also explores as to whether the basic character of CCDs as being a debt instrument till the date of their conversion, can be re-characterised as equity under the income-tax laws. According to the author, since with effect from 1 April 2018, GAAR and thin capitalisation rules have been implemented in India vide Chapter X-A and Section 94B of the Income Tax Act respectively, one must be mindful of the implications...
Circulars
Vivad se Vishwas Scheme – Clarifications
CBDT to validate UDIN generated by CAs from ICAI portal
Real Estate – Tolerance range under Section 43CA set to be increased
Ratio decidendi
Discount in allotment of shares under ESOP scheme allowable as deductible expenditure – Karnataka High Court
Proportionate deduction under Section 80IB(10) permissible – Bombay High Court
Re-sellers margin is not akin to commission, not liable to deduction of tax under Section 194H – ITAT Mumbai
Consideration paid for acquisition of technical know-how, even if termed as annual royalty payment, is capital expenditure – Karnataka High Court
Reimbursement of salary expense of deputed employee is not a consideration for rendition of technical services – Karnataka High Court
