Divisibility Of Composite Contracts In India In Regard To Tax Laws
- IJLLR Journal
- 20 minutes ago
- 1 min read
Suryadeep Mohan, Advocate, District and Sessions Court, Meerut
ABSTRACT
The question of the divisibility of contracts entered into between various parties holds significant importance for revenue authorities, particularly given that contract clauses are often drafted to minimize tax liabilities. Nevertheless, the legal interpretation of taxing statutes has remained strictly textual, as tax laws require clear language regarding both the charging category and the machinery for subject-matter valuation. The scope of this article is restricted to Central tax laws and the subsequent Goods and Services Tax (GST) framework unifying indirect taxes of Central and State governments. The legal landscape in this field is actively shaped by two competing forces: revenue authorities seeking to safeguard tax collections and assessees offering statutory defenses, each presenting distinct interpretations of facts and law.
