Volume 18, No. 6, 2021

Interface Between Tax Laws And IBC

Ms. Devashree Awasthy , Dr. Mahesh Koolwal


The Insolvency and Bankruptcy Code, was instituted with the essential goal of restoration of monetarily bothered corporates and became effective on first December 2016. The sanctioning of the Insolvency and Bankruptcy Code, 2016 ("Code") has had huge consequences on the corporate world. Over the long run, the Code has seen a complex expansion in case since the Code achieved a change in outlook from the account holder in-control strategy to a bank driven process. The arrangements of IBC have an superseding impact over different institutions if there should arise an occurrence of any consistency. To give accord to the IBC, corrections have been made in various regulations in particular the Companies Act, Personal Tax Act, SARFAESI Act, and so on Presently, it is relevant to look at the interaction of duty regulations with the IBC. The vendors and the Resolution Professionals have once in a while thumped on the entryways of the Adjudicating Authority to discover the privileges and the liabilities of the partners. The chief inquiry whether the IBC beats the Personal Tax Act and the Goods and Services Act, can be broke down considering Section 238 of the IBC, 2016 which expresses that the arrangements of the IBC supersedes any remaining authorizations to the degree they are conflicting with the arrangements of the Code. The inquiries which are thought about in this article are whether the legal levy draw near the importance of functional obligations or not and what is the treatment of the duty regulations opposite the IBC. While the Goods and Service Tax (GST) has been generally depicted as free India's greatest expense change after the financial advancement of 1991, the Insolvency and Bankruptcy (Code), one more milestone contemporary regulation, is simply starting to be surveyed for adequacy. Appropriately hailed as a significant official change, the Code is relied upon to determine the predominant nonperforming resources (NPA) emergency, the resultant logjam in accessibility of credit, and the weighty effect on development. This paper would briefly trace the development of the Insolvency and Bankruptcy laws in India, elaborate the interface between various tax laws and analyze some of the major jurisprudential developments. At the end, some major areas which requires further progress or the unfinished agenda will be brought forward. Paper intends to provide a general overview of the modern tax laws in India.

Pages: 2427-2435

Keywords: Income Tax, Gst, IBC, Corporate Insolvency, Bankruptcy, India.

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