It goes without saying that the population of India is increasing very rapidly which is a cause of grave concern for all of us especially those who are Indians. It is a no-brainer that there are so many disadvantages of population increase like the resources shrink, jobs shrink, living space shrink, water shrinks and what not! So there can be no two views that all possible steps must be taken to control population because if it is not controlled even now then not only are we going to overtake China as the world’s most populous country by 2027 as a UN report said in 2019 but shall also suffer in innumerable ways which our nation can certainly ill afford at this juncture.
It cannot be lightly dismissed that India is expected to add nearly 273 million people to its population between now and 2050. We also have to concede that with Chinese birth fertility rate expected to drop in the coming years, demographers have predicted that India with its much higher fertility rate will overtake China as the world’s most populated country by 2023 or 2024. China’s state run Global Times daily quoted Chinese demographers as saying that India’s population may overtake China’s well before 2027. How can all this be lightly dismissed?
There can be no gainsaying the irrefutable fact that increasing population is the biggest hurdle to development and we cannot take it just lying down. It is the bounden duty of our policymakers and lawmakers to ensure that population is at least controlled to some extent and all steps must be taken now to ensure the same. If population is not controlled even now then certainly our country can never become hunger free or poverty free or free from other such problems as the population rise is the root cause of all such problems with which our nation is seriously grappling also! So, it merits no reiteration that population control has to be on the top priority of the government both in the Centre and in the States also. It cannot be kept on the backburner any longer now!
As we all know, Pandit Jawaharlal Nehruji took the single biggest and the most commendable step of controlling the population of Hindus by restricting Hindus to just one marriage. Prior to Pandit Nehruji’s government framing “The Hindu Marriage Act, 1955”, Hindus both men and women could marry as many as they wanted and there was just no limit on either men or women. Lord Krishna had 16,108 wives as was reported in “The Times of India” newspaper in 2018. Similarly Ashoka also had thousands of wives and so was the case with not just kings but even among the common man and women. There was just no limit and both men and women had the liberty even during British rule to marry as many as they wanted. But Pandit Nehruji brought down both Hindu men and women to just one which is the most commendable step since independence ever taken by any PM for which Hindus must always be grateful to Pandit Nehruji! This alone explains why I always refer to Pandit Nehruji as the “Real Reformer of Hindus” but Pandit Nehruji didn’t touch Muslims as the country then was reeling fresh from the partition wounds and Nehruji didn’t want to do anything that would create insecurity among Muslims in any manner! But what about the other PM who ruled after Nehruji till PM Narendra Damodardas Modi who is ruling since last more than 7 years?
But my best friend Sageer Khan differed with me on this. He was strongly critical of Pandit Nehruji’s decision to impose monogamy on Hindus alone. He said in 1995 that, “What is UN? It is ruled by just US and UK. France, China and Russia are just servants of US and UK and China got permanent membership because of US and UK. Who created India and got it partitioned in 1947 on the basis of religion? It is again UN ruled by US and UK. UN loves Pakistan and hates India. So never get surprised that why Taliban aided, abetted and armed by Pakistan have taken over Afghanistan and UN watching with smile on face! Hindus, Shia Muslims, Sikhs, Indian Muslims who migrated to Pakistan called Mohajjirs are raped, insulted, punished and then killed! Yet UN is proud always of Pakistan as it is the brain child of US and UK who rule UN and who want to crush India as patriotic Indians especially Hindus in large numbers forced Britishers to leave India. It was UK who did not forget its defeat and so again advised Nehru our first PM to disregard the advice of Dr BR Ambedkar who favoured retention of polygamy in his Hindu Code Bill 1951 and he did accordingly by abolishing polygamy and polyandry among Hindus and also heeded to UK’s decision to not abolish polygamy among Muslims so that slowly Muslims become majority and Hindus become minority and India never gets stability and they could again come back to rule India. Why monogamy imposed only on Hindus alone? Muslims enjoy maximum liberty in India all over the world and it is Muslims who can still indulge in polygamy even though Nehru abolished it among Hindus in 1955. This is most unfair and must be strongly condemned. Why Hindus are forced to become Muslims to marry more than once? Polygamy should have been abolished for both or for none but Nehru very wrongly imposed monogamy only on Hindus which is most disgraceful and cannot be ever justified. Similarly why Muslims fight with Hindus in Ayodhya, Kashi and Mathura which have been Hindu worshipping sites since ages. Should Ram temple be built in Mecca, Medina or in Ayodhya? Muslims should never fight over Ayodhya, Kashi and Mathura which since thousands of years have been Hindus sites of pilgrimages just like Mecca and Medina are for Muslims. Muslims should be treated on par with Hindus and polygamy should be abolished among us also. This will greatly help in controlling the population also in our country. When Hindus can be brought down to one both male and female then why can’t Muslim males be also not brought down to one and Muslim females are already one as they unlike men cannot marry more than one? Centre and our law makers must give it a serious thought!”
For far too long this most pressing issue of uniform civil code has been hanging fire and our law makers have just callously preferred to always look the other way around on it. Why is it that film actor Dharmender had to become Muslim to marry a second time? Why is it that the son of former Chief Minister of Haryana – Bhajan Lal named Chander Mohan also had to change his name to Chander Mohammed and so also Anuradha Bali had to assume a Muslim name Fizza and convert to Islam just to marry each other as Chander was already married and in Hindu religion one cannot marry than one? There are millions of such cases where the conversion is purely on the temptation to marry more than one women! Why can’t this sham end once and for all? Why can’t law be same for one and all? Will it not help control population also if monogamy is imposed on one and all?
To put it mildly: When Hindus can be made to shun polygamy and polyandry in 1955 then why can’t the same be done among Muslim men in 2021? My best friend Sageer Khan also always wanted Muslims to abolish polygamy as it is a bad practice and cannot be ever condoned! Sageer Khan also used to often ask: “Why Centre trembles to do anything on this score? Why can’t monogamy be imposed equally on people of all religion alike? It has become a fashion to marry more than one. This is the root cause of increase in population in India.” Centre must seriously ponder on it.
If Centre takes decisive action and after 75 years of independence summons the courage to abolish polygamy among people of all religions just like Pandit Nehruji summoned to do the same for Hindus in 1955 not just among men but also among women that is abolishing both polygamy and polyandry then population can be controlled to a great extent! But what an unbeatable irony that in last 75 years of independence no PM nor any Supreme Court Judge has gathered the guts, gall and gumption to call a spade a spade and abolish polygamy among people of all religion as my best friend Sageer Khan always advocated also!
Of course, it goes without saying that using force to control population can never be feasible nor advisable! It would only worsen the situation further! We all saw how late Sanjay Gandhi who during Emergency in 1975-77 had thought that he could control population by using forcible methods of sterilisation floundered as he enjoyed unbridled powers and Congress party also lost power as people certainly didn’t approve of it in any way. It must be underscored that Centre as also the States must now launch more awareness campaign to ensure that the people themselves become more aware of the dangerous consequences of over population and should work most actively in this direction!
In addition, Centre and States must give more and more concessions to those families where the children are just one or two. This can certainly go a long way in motivating others to follow suit! But both Centre and States ought to be more proactive on it as population explosion is the most serious problem confronting India since last many years! It merits no reiteration that a dormant snail like approach would only serve in further exacerbating this problem further which our country can ill afford at this juncture! So now the ball is clearly in the court of the government!
It must be strictly ensured that child marriages does not take place to achieve fertility decline and this holds true especially in villages and remote areas where we keep hearing increasing incidents of child marriages taking place even now! There has to be zero tolerance on child marriages as it is because of child marriages that a women has many children and that too very early in her life! If child marriage is seriously and strictly checked it will ensure that population is also checked to a great extent.
Not just this, the marriage age must also be increased to 25 for both men and women. This can go a long way in ensuring that both men and women attain maturity when they marry and in their early youth don’t indulge in the mistake of having many children. This can prove to be a big leap in the direction to control population to a great extent!
It also must be mentioned here that serious, sincere and steady counselling must be done of all the parents the moment they give birth to one child irrespective of whether it is male or female to not produce more children. When parents have two children then they must be shown the copies of the laws of such states like UP, Assam and Rajasthan among others where having more than 2 children carries lots of disadvantages and bars one from several benefits! On the contrary, those who have just one child can get several benefits like preference in admission in all educational institutions and preference to single child in government jobs as we see in case of UP’s population draft bill also!
It cannot be overemphasized that parents must be also made more aware about the preference that is given to a single child in getting free health care facility and insurance coverage also till he attains the age of twenty years as we again see in the case of UP’s draft population bill which is also welcome! This will certainly propel parents to not have more than one children! Also, when parents will be barred from getting many benefits and from either contesting elections or holding any public post or getting other similar benefits this also can prove to be a big checker in population increase but apart from just creating strict laws what matters most is their implementation in totality and on one and all!
In conclusion, it is high time and now polygamy should be completely abolished in India just like Pandit Nehruji abolished it among Hindus in 1955! But the moot question certainly is: Can any PM ever dare to do what Pandit Nehruji did not do? Impose monogamy on one and all and not just Hindus alone as he did in 1955!
Sanjeev Sirohi, Advocate
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GUJARAT HC GRANTS RELIEF TO PHARMACY DIPLOMA HOLDERS
The Gujarat High Court in the case Oza Nikun Dashrathbhai v/s State Of Gujarat observed and has come to the rescue of D.Pharm students who were denied registration as ‘Pharmacist’ by the State Pharmacy Council on the ground that they have not undertaken training from medical stores approved the Pharmacy Practice Regulations, 2015.
The Single bench comprising of Justice AS Supehia observed and noted that the Pharmacy Council of India has not approved any medical store under the Regulation for the purpose of imparting practical training of Diploma to the students in Pharmacy Course like the present petitioners.
It was observed that the petitioners cannot be faulted for the action of the respondent authorities in not approving the medical stores under regulation 4.4 of the Regulation of 2015 and hence, no option was there to the petitioner to take their training from the respective medical stores.
It was claimed by the petitioner’s student that the State Council was not registering them as Pharmacists despite having undertaken the necessary training of 500 hours for three months from the respective medical stores.
Further, it was observed that the State had admitted that all documents of the Petitioners were genuine, however, the registration was denied solely for the aforesaid reason. Further, one of the governmental circulars had clarified that the process for granting approval of Chemist/ Pharmacy and Druggist will be notified through the online mode. But the same was targeted only at “prospective students” .
It was noted by the High Court that in order to avoid hardship to current students, who had already undergone or undergoing the D.Pharm course while taking the practical training under the Pharmacy, Chemist and Druggist licensed under the Drugs and Cosmetics Act, 1940, as per precedence students will be considered for the registration, provided the students had undergone the D.Pharm course in an institution approved under PCI under section 12 of the Act.
Accordingly, the High Court directed the State Council to register the Petitioners as Pharmacists within three months.
BASICS, LEGISLATIONS AND NEED FOR A NEW LAW TO DEAL WITH 5G SPECTRUM TECHNOLOGY
Much like the evolution of humankind over the millennia, the inventions by humans have also evolved with the progress and advances in technology. Right from the invention of the telephone by Graham Bell to the present day wonder phone ; the cellular or mobile phone.
Cellular mobile technology has also benefited greatly from such advances, Think back to the first generation of mobile phones and connectivity options offered and you think of large phone instruments and only voice enabled phones.
Segue to the present day and we have now arrived at the threshold of a major revolution in cellular technology: the 5G network.
What is the 5G network technology? Simply expressed, it is an advancement of technology, but to put it in better terms, what this means is that with higher usage of mobile phones, which have morphed into office equipment or entertainment consoles due to their ease of usage and accessibility, this new technology has the capability of transmitting data at higher speeds, without any perceptible delay ( which is known as low latency in technical terms), which even the current 4G network could not perhaps address.
What are the laws governing 5G network technology? At present, there are no specific regulations or laws that govern this technological advance and it would thus be governed by the existing bouquet of legislations and rules, which are;
Indian Telegraph Act, 1885: This legislation regulates the telecommunication sector, empowering the government to put up infrastructure and licensing of infrastructure.
The Indian Wireless Telegraphy Act, 1933: This legislation regulates the usage of wireless telegraphs in the country.
Telecom Regulatory Authority of India Act, 1997: This act was put into place in order to regulate and settle telecom disputes and an authority know as Telecom Regulatory Authority of India was setup under the legislation . The initial role of the authority was to look into disputes in the sector , its scope was however, expanded to regulate the sector in the country, which in the context of the mobile or cellular technology also includes the grant of licences.
Information Technology Act, 2000: As the name suggests, this act governed information technology, but was later amended in 2008 to include telecom service industry.
Apart from this the guidelines issued by the Government under these enactments would hold the field. Allocation of spectrum would be based upon technical evaluations carried out before granting licences.
What are the requirements to be fulfilled by the applicant telecom companies to obtain 5G spectrum licence? The company must hold a Cellular Mobile Telephone Service Licence or Unified Access Service Licence , Unified Licence with permission/authorisation for access services for the service area for which it has bid for (the region that it has bid for).
Apart from this, the additional or subsidiary conditions that have to be met are:
The company that bids for licenses must have a net worth of Rs. 100 crores for the service area that it has bid for amongst other ancillary requirements.
The stance of the Government: The stance of the Government as reflected on its website https://dot.gov.in/5g-india-2020 is that “ The 5G technology has been conceived as a foundation for expanding the potential of the Networked Society. A digital transformation brought about through the power of connectivity is taking place in almost every industry. The landscape is expanding to include massive scale of smart things to be interconnected. Therefore, the manner in which future networks will cope with massively varied demands and a business landscape will be significantly different from today.
The economic benefits from the 5G technology are also quite immense. As per the OECD (Organization for Economic Cooperation and Development) Committee on Digital Economic Policy, it has been stated that 5G technologies rollout will help in Increasing GDP, Creating Employment, Digitizing the economy.
For India, 5G provides an opportunity for industry to reach out to global markets, and consumers to gain with the economies of scale. Worldwide countries have launched similar Forums and thus, India has joined the race in 5G technologies.
The Government gave the go ahead for 5G spectrum trials as reported on the website,https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=1715927,which stated that-The Department of Telecommunications (DoT), Government of India, approved permissions to Telecom Service Providers (TSPs) for conducting trials for use and applications of 5G technology. The applicant TSPs include Bharti Airtel Ltd., Reliance JioInfocomm Ltd., Vodafone Idea Ltd. and MTNL. These TSPs have tied up with original equipment manufacturers and technology providers which are Ericsson, Nokia, Samsung and C-DOT. In addition, Reliance Jio Infocomm Ltd. will also be conducting trials using its own indigenous technology.
The permissions have been given by DoT as per the priorities and technology partners identified by TSPs themselves. The experimental spectrum is being given in various bands which include the mid-band (3.2 GHz to 3.67 GHz), millimetre wave band (24.25 GHz to 28.5 GHz) and in Sub-Gigahertz band (700 GHz). TSPs will also be permitted to use their existing spectrum owned by them (800 MHz, 900 MHz, 1800 MHz and 2500 MHz) for conduct of 5G trials.
The duration of the trials, at present, was for a period of 6 months. This includes a time period of 2 months for procurement and setting up of the equipment.
The permission letters specify that each TSP will have to conduct trials in rural and semi-urban settings also in addition to urban settings so that the benefit of 5G Technology proliferates across the country and is not confined only to urban areas.
The TSPs are encouraged to conduct trials using 5Gi technology in addition to the already known 5G Technology. It will be recalled that International Telecommunications Union (ITU) has also approved the 5Gi technology, which was advocated by India, as it facilitates much larger reach of the 5G towers and Radio networks .The 5Gi technology has been developed by IIT Madras, Centre of Excellence in Wireless Technology (CEWiT) and IIT Hyderabad.
The objectives of conducting 5G trials include testing 5G spectrum propagation characteristics especially in the Indian context; model tuning and evaluation of chosen equipment and vendors; testing of indigenous technology; testing of applications (such as tele-medicine, tele-education, augmented/ virtual reality, drone-based agricultural monitoring, etc.);and to test 5G phones and devices.
5G technology is expected to deliver improved user experience in terms of data download rates (expected to be 10 times that of 4G), up to three times greater spectrum efficiency, and ultra low latency to enable Industry 4.0. Applications are across a wide range of sectors such as agriculture, education, health, transport, traffic management, smart cities, smart homes, and multiple applications of IOT (Internet of Things).
DoT has specified that the trials will be isolated and not connected with the existing networks of TSPs. Trials will be on non-commercial basis. The data generated during the trials shall be stored in India. TSPs are also expected to facilitate the testing of the indigenously developed use cases and equipment as part of the trials. One hundred applications/ use cases selected by DoT after conducting the recent Hackathon on 5G applications can also be facilitated in these trials.
Pursuant to the above, trials were carried out successfully, and ultimately, the spectrum auction took place recently and the 5G network is set to be rolled out soon. This is of course, the offering of the network to subscribers for their usage as provided by telecom operators.
Captive usage of 5G spectrum: With huge interest being shown by some business entities for captive consumption of the spectrum, the Government has on 10th August,2022 undertaken to examine the demand for the same. Captive Non-Public Network (CNPN), or in other words, in-house network, in layman terms will help those entities who wish to avail of the same, to have easier and faster in- house capability, thus boosting its efficiency while providing a dedicated platform, different from the one provided to telecom operators. Different as a result of one customer or subscriber who will avail the same directly from the Department of Telecommunications.
Litigatin on 5G- A litigation against the rollout of the 5G spectrum was initiated before the Delhi High Court on the possible environmental hazards , which came to be dismissed.
At present, there is possibly no other litigation pending or initiated as regards the 5G spectrum rollout, maybe due to the freshness or infancy of the same. If there is any future litigation as regards the same, it would in all probablity be in the realm of awarding of spectrum as a larger issue. Another aspect of any probable litigation would be as regards awarding of Captive Non Public Network (CNPN) or captive usage, but that is likely to be litigation almost like the one that we see in the realm of contracts.
The way forward: As mentioned midway in this article, there is no specific law dealing with spectrum technology and the same is governed by the various enactments mentioned above. The pressing requirement is possibly to have a single law dealing with this area, instead of the bouquet of laws holding the field, which will pave the way for smoothening of the sector and help both the Government and parties in the sector to have a level playing field and do away with the uncertainties associated with various laws governing the field which could result into chaos as compared to a single special legislation which would look at existing and future requirements. A specific law is indeed the need of the hour.
AN ANALYSIS OF UNIFORM CIVIL CODE
UNIFORM CIVIL CODE
Uniform civil code in general words means “One Nation, One Law”
Uniform civil code: The word is comprised of two words “uniform” and “civil code”
UNIFORM MEANS EQUALLY APPLICABLE ON EVERYONE
Civil code means collection of laws governing personal relationships between people. Few examples of civil code are contracts, property and marriage related laws.
The debate for uniform civil code started back in 1835 with the report of second law commission. During this time Britishers felt the need to unify various personal laws.
The concept of uniform civil code is embodied under article 44 of the Indian constitution in chapter IV (DPSP). The article states that: Uniform civil code for the citizens: The state shall endeavour to secure for the citizens a uniform civil code throughout the territory of India.
The words incorporated in article 44 imply that the state shall make great effort to implement Uniform civil code throughout the country.
Although directive principles of state policy are not enforceable in a court of Law, it obligates the state to apply the principles in implementation of laws.
The implementation of Uniform civil code was included by the Bhartiya Janta party in its manifesto during 2019 Lok Sabha election. Removal of Article 370 from constitution of India is the major step towards this agenda. India is a diverse country with various religions and various personal laws governing these religions with implementation of UCC all the religions will be governed by one uniform civil code which will reduce the dominance of personal laws over society.
UNIFORM CIVIL CODE AND PERSONAL LAWS
Implementation of UCC has been a matter of dispute from long time because in country like India religious domination plays a crucial role and majority would prefer their dominance over others religions with its personal religious laws. The idea to integrate people of different religions under one civil law can only be possible if it’s for common good rather than for preservation of custom.
Custom as a source of law gives more importance to personal religious laws rather than one uniform law and if custom will be the focus behind this one unified civil law it will dominate one majority religion over minorities. The centre of attraction behind the uniform law should be Justice rather than antediluvian antifeminist customs.
It was contended during the debates of the constituent assembly that uniform civil code infringes the right to religion guaranteed under part III of the constitution of India.
In the case of John Vallamattom v. Union of India(MANU/SC/2003) it was held that directive principles incorporated under Article 44 do not infringe article 25 (freedom of religion) in any way. In addition to this clause (2) of article 25 saves secular activities associated with religious practices from the right available under clause (1) that empowers the state to regulate or restrict them.
Judicial pronouncements and article 25
The necessity of implementation of Unified Civil Code has been often recommended by Supreme Court. In the case of Nikhil soni v. Union of India the court stated unambiguously that trough a practice can be religious in nature but if may not constitute vital component of that religion.
UCC: THE DEBATE OF CONSTITUENT ASSEMBLY
The speech was given against the motion by several Muslim leaders when it was enacted. It was claimed that it violates fundamental right of religion. Dr. B.R Ambedkar even mentioned, “We have a uniform and COMPLETE CRIMINAL CODE OPERATING THROUGHOUT THE COUNTRY. Which is contained in the penal code and the criminal procedure code. this country also has a civil code which is uniform in its content and applicable throughout the country. The only division in which civil law has not invaded is marriage and succession. It is this little corner which we have not been able to invade so far.
UNIFORM CIVIL CODE IN GOA
Uniform civil code is contained under part IV of the Indian Constitution therefore not enforceable but Goa is the only state which has implemented Uniform civil code in its territory.
The Apex court in Jose Paulo coutinho v. Maria Luiza Valentina Pareira stated that the Uniform civil code of Goa is an ideal for applicability of uniform laws on different religions. However the personal laws in Goa are not uniform in all aspects.
Uniform civil code & elimination of gender biasness
The concept of Uniform civil code is highly associated with elimination of gender bias; every personal law is strongly prejudiced against women in some way or the other. The personal laws are highly patriarchal and male dominant in nature. No personal law is ideally suited to become a model for UCC.
Personal laws are mainly derived their authority and source from customs, but the combined effort of legislature and judiciary have played a major role towards achievement of UCC through legislations and precedents.
Electricity connection cannot be denied only because dispute regarding ownership of land is pending: Gujarat High Court
The bench of Justice Supehia noted that the Petitioners were owners of the concerned agricultural land for which electricity was sought. However, it was observed that the electricity was denied on the ground that the Petitioners were illegally occupying Government land.
The Gujarat High Court in the case Yogesh Lakhmanbhai Chovatiya v/s PGVCL Through the Deputy Manager observed and has clarified that occupiers of a land cannot be denied electricity connection only because a dispute regarding ownership of the land is pending.
The bench comprising of Justice AS Supehia observed and referred to a division bench judgment stating that right and title and ownership or right of occupancy has no nexus with grant of electrical connection to a consumer.
In the present case, the petitioner current occupiers of the land and submitted that they were denied an electricity connection only because the land that they were occupying was in the name of the Government. However, the proceedings were initiated by the Mamlatdar against them u/s 61 of the Gujarat Land Revenue Code for removal of encroachment. Further, to bolster their contention, it was relied by the petitioner on an order of the High Court and Sec 43 of the Electricity Act, 2003 which mandates the supply of electricity to any occupier or owner of premises.
The Petitioners could be said to be ‘occupier’ of the land in question and the connection could not be denied by the Respondent.
The bench of Justice Supehia noted that the Petitioners were owners of the concerned agricultural land for which electricity was sought. However, it was observed that the electricity was denied on the ground that the Petitioners were illegally occupying Government land.
Further, the bench of Justice Supehia concluded while perusing Sec 43 that the provision stipulated that the licensee shall supply electricity to those premises where the application had been filed by the owner or the occupier. Consequently, a reference was made to the order of the Division Bench of the High Court in LPA No. 91/2010 wherein it was observed:
The Court stated that such power being not vested under the law with the company and as the company cannot decide the disputed question of right and title and this court is of the view that ownership or right of occupancy has no nexus with grant of electrical connection to a consumer.
While keeping in view of the aforesaid provisions, it was directed by Justice Supehia that the Respondent-Company to supply electricity connection to the Petitioners in the premises of the property at the earliest in accordance with the list maintained by the name containing the names of the Petitioners in the list.
ANALYSIANG SECTION 194R OF THE INCOME TAX ACT
Recently, Section 194 R was inserted by the Finance Act 2022, which came into effect on July 1st, 2022. CBDT made certain recommendations via Circular 12 from the day of the addition of this section, it has become highly debatable. Before touching the issues of this section, we need to understand the legal provision of section 194 R.
In simple terms, the new section mandates a person who is responsible for providing any benefit or perquisite to a resident to deduct tax at source at 10% of the value or aggregate value of such benefit or perquisite before providing such benefit or perquisite. The benefit or perquisite may or may not be convertible into money, but it must result from such resident’s business or professional activities. As per this section, tax will be deducted by business or profession on any benefits or perquisites of a person who is residing in India. The benefit or perquisite can be in the form of cash or kind, or partially in cash and partially in kind. Tax deduction will be 10 percent if the aggregate value doesn’t exceed INR 20,000. In such a case, tax will not be deducted. Such conditions will not be applicable in If the turnover of business doesn’t exceed INR One Crore, If the turnover of the profession doesn’t exceed INR fifty lakhs, For instance, if a person is a sales agent and he exceeds the target allotted by the company and receives a new car worth INR 5, 00,000/-the value of INR 5,00,000 will be taxed under the head of Profit.
The intention of this section is to expand the scope of deducting tax on benefits or perquisites and to increase transparency in the reporting of benefits and perquisites received by an individual. Because this particular incentive is in kind rather than cash, recipients of such kinds of transactions do not include it in their income tax return. As a result, inaccurate income information is provided. Such an incentive or bonus in kind ought to ideally be reported as income under the 1961 Income-tax Act (ITA). Also, according to Section 28(iv) of the ITA, any benefit or perk received from a business or profession, whether convertible into money or not, must be reported as business income in the hands of the receiver. Now Section 194(R) gives the right to the payee to deduct the amount, whether in cash or kind, arising out of business promotion.
The terms “benefits and perquisites” are not defined under the IT act. If they receive any such perquisites or incentives, whether in cash or in kind, they must deduct TDS. In cases where the benefit is wholly in kind, the person providing such a benefit or perquisite is required to pay TDS on the value of such benefit or perquisite out of his own pocket. In this case, benefits and perquisites are determined as per the value of the purchased price and manufactured price. However, no taxes to be deducted u/s 194R on sales discount, cash discount, or rebate are allowed to customers.
In the matter of ACIT Vs Solvay Pharma India Ltd, the court held that free samples provided by the pharmaceutical company for promotion purposes would be taxable income. As such, free samples cannot be treated as a freebie. The complimentary sample of medication serves solely to demonstrate its effectiveness and to win the doctors’ confidence in the high quality of the pharmaceuticals. Again, this cannot be regarded as gifts given to doctors as they are intended to promote the company’s goods. The pharmaceutical corporation, which manufactures and markets pharmaceutical products, can only increase sales and brand recognition by hosting seminars and conferences and educating medical professionals about recent advances in therapeutics and other medical fields. Since there are daily advancements in the fields of medicine and therapy taking place throughout the globe, it is crucial for doctors to stay current in order to give accurate patient diagnosis and treatment. The main goal of these conferences and seminars is to keep doctors up to date on the most recent advancements in medicine, which is advantageous for both the pharmaceutical industry and the doctors treating patients. Free medication samples provided to doctors by pharmaceutical corporations cannot be considered freebies in light of the aforementioned value.
Hence, under such circumstances, for such a sales effort, the pharmaceutical company may deduct its expenses. The promotion would, however, be taxable income in the hands of the receiver, and the pharmaceutical company would need to deduct TDS on it.
Another question that pops up is that in the case of gifts and perks received on special occasions like birthdays, marriages, and festivals, under such circumstances, Section 194R will only be applied if they arise out of business or profession.
As we know, we are heading towards digitalisation. There are many social media influencers who are playing a crucial role in marketing strategy. Income received by an influencer is calculated by deducting expenditure incurred on their business. Filming costs, such as cameras, microphones, and other equipment; subscription and software licencing fees; internet and communication costs; home office costs, such as rent and utilities; office supplies; business costs, such as travel or transportation costs; and others are examples of what can be written off as a social media influencer. To illustrate how Section 194 R will be applicable in such a situation, let’s consider Nandini is a social media influencer. She received an offer from a company for product promotion in another city. She charged her fee of Rs 88,000 and the travel expense incurred by her was Rs 25,000. Here, the company will reimburse her travel expenses. So, the travel expenditure incurred by the company is covered under the benefits and perquisites provided to Nandini. Hence, TDS is to be deducted under section 194R at the rate of 10%, i.e., Rs 2500 is deductible from the fees payable to Nandini.
There is no further requirement to check whether the amount is taxable in the hands of the recipient or under which section it is taxable. The Supreme Court took the same view in the case of PILCOM vs. CIT in reference to the deduction of tax under Section 194E. It was held by the Hon’ble Supreme Court that tax is to be deducted under section 194E at a specific rate indicated therein, and there is no need to see the taxability under DTAA or the rate of taxability in the hands of the non-resident.
In the matter of ACIT Vs Solvay Pharma India Ltd, the court held that free samples provided by the pharmaceutical company for promotion purposes would be taxable income. As such, free samples cannot be treated as a freebie. The complimentary sample of medication serves solely to demonstrate its effectiveness and to win the doctors’ confidence in the high quality of the pharmaceuticals. Again, this cannot be regarded as gifts given to doctors as they are intended to promote the company’s goods. The pharmaceutical corporation, which manufactures and markets pharmaceutical products, can only increase sales and brand recognition by hosting seminars and conferences and educating medical professionals about recent advances in therapeutics and other medical fields. Since there are daily advancements in the fields of medicine and therapy taking place throughout the globe, it is crucial for doctors to stay current in order to give accurate patient diagnosis and treatment.
GUJARAT HIGH COURT: WRIT PETITION FILED AGAINST PRIVATE UNIVERSITY NOT MAINTAINABLE, REMEDY FOR ALLEGED ARBITRARY TERMINATION LIES UNDER CIVIL LAW.
The Gujarat High Court in the case Shambhavi Kumari v/s Sabarmati University & 3 other(s) observed and has declined to intervene in a writ petition seeking reinstatement with full back wages and benefits filed by an Assistant Professor against a private university, Sabarmati University.
The bench comprising of Justice Bhargav Karia observed and has clarified that the dispute regarding termination was ‘in the realm of a private contract’ and therefore, held that if on the part of the respondent, there is an alleged arbitrary action, the same would give cause to the petitioner to initiate civil action before the Civil Court but in the facts of the present case, the writ petition would not be maintainable against the private educational institution governed by the Gujarat Private Universities Act, 2009.
In the present case, the petitioner was given a three months’ notice starting August 2013, allegedly without any reason. Consequently. Earlier, an application was filled by the petitioner before the Gujarat Affiliated Colleges Service Tribunal and thereafter, withdrew the application to file the writ before the High Court.
It was contested by the respondents that the petition was not maintainable on the ground that the University was a private University and did not fall within the term ‘State’ under Article 12 of the Constitution of India. Therefore, the employment conditions of the Petitioner would not bring her services within the realm of ‘duty or public function.’
It was observed that the petitioner, per contra, insisted that the University was established under the Gujarat Private Universities Act, 2009. However, Universities were established to provide quality and industry relevant higher education and for related matters and hence, it could not be said that the Universities were not performing public duty. It was directed by the State Government and pervasive control over the functioning of it as was mentioned in Sec 31-35 of Chapter VI of the Act. Reliance was placed on Janet Jeyapaul vs. SRM University and ors. where the Top Court had held that the writ petition was maintainable against the deemed university and whose functions were governed by the UGC Act, 1956.
The bench of Justice Karia, while taking stock of the contentions referred to Mukesh Bhavarlal Bhandari and ors vs. Dr. Nagesh Bhandari and ors where the Coordinate Bench of the High Court in similar circumstances had reiterated that merely because the activity of the said research institute ensures to the benefit of the Indian public, it cannot be a guiding factor to determine the character of the Institute and bring the same within the sweep of ‘public duty or public function.
It was observed that the High Court also rejected the reference to Janet Jeyapaul since in the instant case and held that in the realm of a private contract, the Petitioner termination was to be decided.
Further, it was observed that it is not necessary to go into the merits of the case with regard to the issue of show-cause notice for providing an opportunity of hearing resulting into breach of principle of natural justice and weather the action of the respondent University is unfair or not because all such disputes essentially are in the realm of private contract.
Accordingly, the bench dismissed the petition.
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