A.Sinha & Associates, Advocates

  1. Strategic Regulatory Shift The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 , issued by the Reserve Bank of India (RBI), take effect on 1 October 2026 . They replace the earlier export-specific framework and consolidate export and import rules into a single, integrated regulatory regime . The reform is not deregulation. It represents a move toward: Digitally monitored trade flows Bank-mediated compliance enforcement Risk-based supervision instead of case-by-case RBI approvals For businesses, cross-border trade transactions are now treated as regulated financial flows , not merely commercial arrangements. 2. Structural Changes in Reporting Unified Export Declaration System A single Export Declaration Form (EDF) now applies to: Goods Services Software (explicitly included within “services”) Operational impact: Export Type Filing Requirement Goods via EDI...

  Supreme Court of India | 2025 INSC 1481 | Decided: 19 December 2025 1. Factual Background This batch of civil appeals before the Supreme Court concerned multiple assessees and assessment years, revolving around two critical tax issues under the Income Tax Act, 1961: (A) Non-Compete Fee Payments The principal case involved Sharp Business System, a joint venture between Sharp Corporation (Japan) and Larsen and Toubro Limited (L&T). During the assessment year 2001-02, the assessee paid ₹3 crores to L&T as a 'non-compete fee.' In exchange, L&T agreed not to set up, undertake, or assist in any competing business of selling, marketing, or trading electronic office products in India for a period of 7 years. Other cases in the batch included: • Pentasoft Technologies paid ₹180 crores as a non-compete fee to restrain Pentamedia Graphics Ltd. from undertaking similar software development and training activities after acquisition of a division. Initial Dispute:...