Page 3 – Vaish Associates Advocates

Bombay HC (Nagpur Bench): GST SCN on Assignment of MIDC Leasehold Rights Quashed

In a significant ruling, the Bombay High Court (Nagpur Bench) has quashed a GST show cause notice issued on the assignment of long-term MIDC leasehold rights, holding that such transfer amounts to transfer of benefits arising out of immovable property and not a taxable supply of service under GST.

The Court further clarified that the transaction was neither a sub-lease nor carried out in the course or furtherance of business, thereby failing the basic requirements of “supply” under the CGST Act. In doing so, it followed the Gujarat High Court’s view and held the same to be binding on authorities in Maharashtra.

For any clarification, please write to [email protected]

Legalaxy – Monthly Newsletter Series – Vol XXXII – January, 2026

In the January edition of our monthly newsletter “Legalaxy”, our team analyses some of the key developments in securities market, corporate, finance and labour.

Below are the key highlights of the newsletter:

SEBI UPDATES

Key highlights of the 212th SEBI board meeting
SEBI strengthens valuation standards: independent valuers now mandatory
SEBI mandates NISM certification for compliance officers of managers of AIFs
SEBI’s framework for AI only schemes and relaxations for LVFs for AI

RBI & IFSC UPDATES

IFSCA clarifies computation of liquid net worth under the CMI Regulations
IFSCA extends the deadline for implementation of the revised norms for principal officer and compliance officer under the CMI Regulations

CORPORATE UPDATES

MCA raises small company thresholds to INR 10 crores paid-up capital and INR 100 crores turnover
MoF notifies the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025

LABOUR UPDATES

Labour Courts, Industrial Tribunals and National Industrial Tribunals to continue with adjudication
Extension of scheme to promote registration of employers/ employees

We hope you like our publication. We look forward to your suggestions.

Please feel free to contact us at [email protected]

Customs and GST Alert – January 2026

We are pleased to share with you our latest Customs and GST Alert, covering recent judgments and regulatory updates.

We trust that you will find the same useful.

Looking forward to receiving your valuable feedback.

For any clarification, please write to:

Mr. Shammi Kapoor
Senior Partner
[email protected]

Mr. Arnab Roy
Partner
[email protected]

ITAT Delhi rejects the allegation of constitution of Permanent Establishment of foreign enterprise having subsidiaries in India sans satisfaction of disposal test

We are pleased to share with you a copy of our in-house publication – “TaxBuzz”, wherein we have analysed the recent ruling of ITAT, Delhi Bench in the case of SAIC Motor Corporation Limited v. ACIT: ITA No. 1191/Del/2025 wherein the Hon’ble ITAT struck down the profit attribution made to the alleged PE of a non-resident taxpayer in India, holding that the tax authorities failed to discharge onus of establishing the existence of a Fixed Place PE or a Supervisory PE.

Further, Hon’ble ITAT observed that in case the view of tax authorities is to be accepted i.e., if the assembly unit/manufacturing plant of the subsidiary is treated as fixed place PE of the taxpayer, it would create huge disruptions in taxability of the income of the foreign entities operating in a multinational set-up.

We trust that you will find the same useful.

For any details and clarifications, please feel free to write to:

Mr. Neeraj K Jain, Senior Partner: [email protected]

Mr. Kunal Pandey, Principal Associate: [email protected]

Mr. Girish Sonthlia, Associate: [email protected]

SEBI Mandates NISM Certification for Compliance Officers of Managers of AIFs

Securities and Exchange Board of India, vide its circular dated December 30, 2025, has mandated the requirement of National Institute of Securities Market (“NISM”) certification for the compliance officers of the manager of Alternative Investment Funds (“AIFs”).

From January 1, 2027 onwards, only those persons who have obtained the NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination, issued by NISM shall be appointed as or shall continue to act as compliance officer of managers of AIFs.

We have covered the circular in detail below.

For any clarification, please write to [email protected]

SEBI Notifies the Informal Guidance Scheme, 2025 – A Refined Framework for Regulatory Clarity

In a significant step towards enhancing interpretive certainty under India’s securities law framework, the Securities and Exchange Board of India has notified the SEBI (Informal Guidance) Scheme, 2025, effective 01 December 2025, replacing the erstwhile 2003 framework.

The revised scheme introduces a more structured, centralised and time-bound process for seeking regulatory clarification, expands eligibility to include pooled investment vehicles and market infrastructure institutions, revises application fees, and formalises grounds for refusal and confidentiality norms. While informal guidance remains non-binding and fact-specific, the enhanced framework is expected to facilitate more effective pre-enforcement compliance and regulatory planning.

The 2025 Scheme assumes particular relevance for listed companies, regulated intermediaries, alternative investment funds and market infrastructure institutions navigating complex transactions and evolving market practices.

For any clarification, please write to [email protected]