Tranzission Blogs
328articlesInsights and guides on tax, compliance, and business strategy from Tranzission.
Supreme Court Upholds the Constitutional Validity of the IBC
The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted to streamline the insolvency process, replacing a fragmented system of law. In the case of Swiss Ribbons Pvt. Ltd. & Anr. v. Union of India the Constitutional Validity of the IBC was challenged on multiple grounds, primarily focusing on the differential treatment between financial and operational […]
Read moreAO can determine tax liabilities even during insolvency proceedings
The Insolvency and Bankruptcy Code, 2016 (IBC) restricts the continuation of certain legal proceedings against the corporate debtor under the moratorium period explained in section 14, including tax assessment. While tax assessments can continue up to the point of a moratorium, any actions that credit new liabilities or deplete the corporate debtor’s assets during the […]
Read moreThe Jigsaw of Pre-Packaged Insolvency for MSMEs
The Jigsaw of Pre-Packaged Insolvency for MSMEs are vital to the Indian economy, contributing significantly to gross domestic product (GDP), employment and exports. However, they face challenges in the corporate insolvency resolution process (CIRP) due to its lengthy timelines and high costs. To address this, the Insolvency and Bankruptcy Code (Amendment) Act, 2021 introduced a […]
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ITC Conundrum GST Law vs Insolvency & Bankruptcy Code
The Insolvency and Bankruptcy Code, 2016 (“the IBC”) primary objective is to resolve insolvency cases in a time-bound manner, maximising asset value, and promoting entrepreneurship. During the corporate insolvency resolution process (CIRP), disputes related to Input Tax Credit (ITC) often arise, creating legal tension due to the potential impact of the resolution plan and the […]
Read moreBranding under Insolvency Ignored Valued Asset
Under the Insolvency and Bankruptcy Code, 2016 (“the IBC”), a brand’s value is considered an intangible asset and is concluded in the calculation of a company’s assets during insolvency resolution. However, Branding under Insolvency is frequently overlooked due to the difficulty in accurately valuing it as an intangible asset and the lack of standardized accounting […]
Read moreSection 93 CGST Act Special Provisions for Tax Liability
Section 93 CGST Act Special Provisions for Tax Liability, permits continuance of proceedings against legal heirs, but does not authorize culmination of proceedings against deceased person. This provision allocates liability for GST, interest, and penalties in cases of death, dissolution, partition, and trusts, especially when IBC applies. Statutory Overview Section 93 CGST Act plays a critical […]
Read moreRole and benefits of appointing a receiver of the receiver
The Insolvency and Bankruptcy Code, 2016 (“the IBC”) uses receivership as a strategic tool to manage a struggling company, aiming to secure assets, preserve their value, and facilitate a smoother resolution process. This involves appointing a resolution professional (RP) or liquidator, who takes control of the company’s assets and operations to stabilize their worth, and […]
Read moreWhen a Repayment Plan Ends Prematurely — Section 118 IBC
Section 118 IBC deals with the consequences when a repayment plan, approved during the insolvency process, fails to be fully implemented within the stipulated time frame. It essentially ensure that if a debtor, or a personal guarantor in some cases, does not adhere to the agreed-upon repayment schedule, the plan can be terminated, and the creditor […]
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Mediation Act 2023: Section-Wise Bare Act
The Mediation Act 2023 received Presidential assent on September 4, 2023, and most of its provisions became effective on October 9, 2023. Section 1, which defines the Act’s title, its application, “to the whole of India”, and its commencement date, was among the provisions that came into force in 2023. It aims to promote and […]
Read morePenalty for Non-Compliance of Order
Section 72 of the Consumer Protection Act, 2019 (“the CPA”) deals with penalties for Non-Compliance of Order issued by the District, State, or National Consumer Disputes Redressal Commissions (NCDRC). It mandates imprisonment for a minimum of one month, extending up to 3 years, and/ or fine ranging from ₹25,000–₹1 lakh. The Consumer Commissions are empowered […]
Read moreDuties of Interim Resolution Professional
Once the insolvency process is initiated under the Insolvency and Bankruptcy Code, 2016 (“the IBC”), an interim resolution professional (IRP) is appointed who takes control of the corporate debtor’s assets, effectively replacing the existing management of the corporate debtor. They are responsible for safeguarding these assets and preventing any actions that could diminish their value.The […]
Read morePunishment for Fraud Under Companies Act
Section 447 addresses the penalties for individuals found guilty of engaging in fraudulent activities related to a company’s affairs, including both imprisonment and fines. This section defines “Fraud Under Companies Act” broadly, encompassing acts, omissions, concealment, or abuse of position with intent to deceive or injure the company, its shareholders, creditors, or other shareholders. It […]
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