June 2022
Newsletter - June 2022
Another month has gone by, and the war between Russia and Ukraine still carries on - and so does the hope of a cease fire. Global commodity prices have cooled down from their peaks in May and early June. This is good for inflation in the future.
In Maharashtra, the 2019 Political Crisis had sown the seeds for the current 2022 Political Crisis. A faction of the Shiv Sena has broken away and, as of this writing, Mr. Uddhav Thackeray has tendered his resignation as the Chief Minister.
The condemnable beheading of a tailor in Udaipur shows how hate and religion based differences are spreading across India. Extremism is on the rise along with divisiveness. While on the other hand, a climate disaster leads to flooding in the North East, has united Assam and Bangladesh and misery. This reminds us of the fragility of our society in the face of nature and the need to unite in face of our common enemy rather than remain divided.
The rainfall across a number of states in India has been in deficit in the month of June while the North-East, has been inundated. We need coordinated global action to invest in fighting Climate Change.
Our businesses should be aligned with long term secular trends and it is clear that fighting climate change and the sustainability agenda is one such mega trend. We hope that we are all focusing on this - for our businesses and our collective future as a species.
INDIRECT TAX (GST)
SERVICE TAX RULING ON MANPOWER SERVICES
With multinational presence, new and complex cross-border arrangements between the group entities and national counterparts are emerging for creating a global workforce and exploring new market opportunities. While these arrangements are indispensable in the contemporary global economy, such arrangements often involve tax implications which may further complicate the arrangement. Levy of service tax on secondments/deputation arrangements pronounced in a recent Supreme Court judgement is a reminder to relook and adopt cautious approach in respect of such cross-border arrangements.The brief analysis of said judgement is enclosed herewith.
