By way of a circular dated 24 September, the Central Board of Excise and Customs has clarified that for joint ventures (JVs) that are unincorporated temporary associations [ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”3″ ihc_mb_template=”2″ ] constituted for the limited purpose of carrying out a specified project, taxable services provided for consideration by the JV to its members or vice versa, and between the members of the JV, are liable to tax, but cash calls or capital contributions by members of the JV that are merely transactions in money are not be liable to tax.
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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
