Internship Report

SUMMER INTERNSHIP WITH:

Lakshmikumaran & Sridharan

Mentor Name: Ms. Surbhi Premi

Team: Indirect Taxes

Internship Period:
21/05/2018 to 02/07/2018
Submitted By:
Tushar Datta
Bcom LLB (h) 2014-19
Amity Law School, Noida
  On my first day I was made aware about how the work is supposed to be done in the firm.
Later I was told regarding who would be allotting me the work and to whom I will report
my work respectively.
Then I was informed that I will be allotted with some work from next day onwards.

Week 1
Date Task Task Given By Status

22/05/2018 To Attain basic Ms. Shivani Bhatnagar Read provisions, Acts

knowledge regarding and articles, briefed
the latest improvement them to ma’am and
in our country’s made notes regarding
taxation system i.e. the same.
GST (Goods & service
tax).
23/05/2018 Researched upon how Ms. Shivani Bhatnagar Read all the sections
levy and collection of relating to scope of
taxes are done under supply and tax liability.
GST. And made notes of it.
24/05/2018 To prepare note on Ms. Shivani Bhatnagar Acquired knowledge
composite and mixed about the topics
supply in the markets. composite and mixed
supply.
25/05/2018 Whole Indirect taxes team had a big case to handle so they had to go to
their other office and I was granted a leave.

26/05/2018 Weekly holidays.

27/05/2018 Weekly holidays.

  Composite supply means a supply comprises of two or more goods/services, which are
naturally bundled and supplied in with each other in the ordinary course of business, one
of which is a principal supply. The items cannot be supplied separately.

 Mixed supply under GST means two or more individual supplies of goods or services,
or any combination, made together with each other by a taxable person for a single
price. Each of these items can be supplied separately and is not dependent on any
other.

 Case laws: Tumble Tots (UK) Limited v Commissioners for Her Majesty's
Revenue & Customs1
Facts: Tumble Tots UK Ltd (Tumble Tots) for the payment of £19 which was at the
material time the price payable by a parent for (inter alia) the enrolment of his or her
child as a member of the National Tumble Tots Club (The Club). Tumble Tots is the
franchisor of a well-known activity programme for pre-school children. Members of the
Club attend, with their parents, 45 minute sessions of structured physical play run by
franchisees (the Classes). For the attendance of a child at each Class, its parent or parents
must pay a fee to the franchisee of between £4 and £8.50. Attendance at a class is
permitted only if the child is a member of the Club. Tots for the payment of the £19
membership fee could for the purpose of analysis be subdivided into eight items, only
one of which was the formal enrolment of the child as a member of the Club. The others
were: (1) a T–shirt, (2) personal accident insurance for the child while attending the
Classes, (3) a year's supply of six editions of the Right Start magazine, published under
licence from Tumble Tots by MacMillan Scott, (4) a DVD and a CD of nursery songs, (5)
a membership card, (6) a member's handbook, (7) a gym bag.
Issue: Whether there is a single supply or mixed supply of services?
Contentions: Tumble Tots maintained that membership of the Club consisted mainly of
the right of access to Classes, the right to receive six issues of the Right Start Magazine,
the right to receive a T- shirt and the undertaking to provide ongoing support. Thus it is a
form of mixed supply. On the other hand the HMRC contends that the consideration was
to be treated as a single supply in the light of the jurisprudence of CPP.

1
[2007] EWHC 103 (Ch.)
 Conclusion: Applying the test of economic indissolubility posed in paragraph 22 of the
Levob case(where two or more elements or acts supplied by the taxable person to the
customer, being a typical consumer, are so closely linked that they form, objectively, a
single, indivisible economic supply, which it would be artificial to split.), it would indeed
be artificial to split off the provision of the Tumble Tots T-shirt from the provision of
membership of the Tumble Tots Club, and accordingly the provision of those two
elements (if the T-shirt is not ancillary) constitute a “single supply”. Appeal is
dismissed.

Week 2

28/05/2018 To continue with the Ms. Surbhi Premi Continued researching

task given on the day. regarding the composite
and mixed supply. Also
studied about what is
ITC (input tax credit)
and reverse charge
mechanism.
29/05/2018 To research on Ms. Surbhi Premi Researched on various
treatment of composite directives of EU dealing
services under laws of with composite services,
EU and under various and national laws of some
national laws of major European countries
European countries and prepared note on that
30/05/2018 To prepare note on Ms. Surbhi Premi Prepared detailed note of
landmark cases of three landmark cases
Court of Justice of comprising facts, issues,
European Union judgement and reasoning
 dealing with composite
services
31/05/2018 A query was given by a Ms. Surbhi Premi Researched about various
client to the firm and aspects stated in the
we had to solve it. Motors Vehicles Act.
Query was “whose duty And made notes
it would be to pay road regarding it and later on
tax under a leasing discussed it with my
agreement, if not stated mentor.
in the agreement”
01/06/2018 Continued working on Ms. Surbhi Premi Went through the
the last task given to different state acts and
me. laws regarding the query.
Specially- Haryana, Delhi
and Punjab.
02/06/2018 Weekly holiday

03/06/2018 Weekly holiday.

Case Laws: Upper doab sugar mills Ltd. Vs Shahdana (Delhi)

CASE LAW:

QUEEN MARY, UNIVERSITY OF LONDON v THE COMMISSIONERS FOR HER

MAJESTY’S REVENUE AND CUSTOMS (VAT)2

Facts: MC is part of the University of London. It conducts medical teaching and research. In
the 1990s it decided to concentrate part of its activities (broadly those relating to cell and
molecular biology) at one site and to house them in a new building which came to be called the
Blizzard Building; the construction of this facility was arranged and contracted for by a
subsidiary company of QMC, Queen Mary Developments Ltd (QMD). It procured the work,
materials and plant to build the facility; facility needed by QMC required a large amount of plant

2
[2011] UKFTT 229 (TC)
and equipment, specialist and otherwise (such as laboratory equipment and lifts) which it was
unable to procure the capital allowance for. QMC entered into a financing arrangement with
LPIC. The object and effect of the arrangement was to permit LPIC to claim capital allowances
on the plant and equipment in the building, and for it to pass some of the benefit of those
allowances on to QMC by funding the acquisition of that equipment and making charges to
QMC which were lower than the costs it would have borne if it had borrowed the money by a
simple loan; Appeal is about the nature for VAT purposes of the provision of land and plant and
machinery made to Queen Mary, University of London (“QMC”) by a subsidiary of Lloyds
bank, Lloyds Property Investment Company
Issue: Whether the lease of land and leaseback of land with plant and machinery is single
or multiple supplies?

Conclusion:
To determine the nature of supply the test to be applied is that set out in paragraph 29 of CPP
Card Protection Plan Ltd v C&E 2001 STC 336:
“… taking into account, first, that it follows from art 2(1) of the Sixth Directive that every supply
of a service must normally be regarded as distinct and independent and, second, that a supply
which comprises a single service from an economic point of view should not be artificially split,
so as to distort the functioning of the VAT system, the essential features of the transaction must
be ascertained in order to determine whether the taxable person is supplying the customer, being
a typical customer, with several distinct principal services or with a single service.”
In Levob Verzerkeringen BV and Another v Staatssecretaris van Financien [2006] STC 766 the
Court noted two approaches to this question:
“21. … the Court has held that there is a single supply in particular in cases where one or more
elements are to be regarded as constituting the principal supply whilst one or more elements are
to be regarded, by contrast, as ancillary supplies which share the tax treatment of the principal
supply …22. The same is true where two or more elements or acts supplied by the taxable
persons to the customer, being a typical customer, are so closely linked that they form,
objectively, a single individual economic supply which it would be artificial to split.”
It is important to take an overall view at the level which corresponds with economic and
social reality, without over-zealous dissection (CPP at [22]). We also note that domestic cases
after Levob have emphasized that the fact that separate parts of the provision could be
supplied separately from different sources is not relevant, and that the test is not whether
the elements have separate value or utility in their own right. The elements received by QMC
were so closely linked that they formed a single economic supply which would be artificial to
split. The elements of the supply were received together and used together. The provision of
each bit of equipment (or bit of land to which it was affixed) would have had little practical
benefit.
Week 3
04/06/2018 Went through the laws Ms. Surbhi Premi Section 16 of CBEC act
stated in the CBEC act defines Input tax credit.
specifying Input Tax
Credit.
05/06/2018 Another client query Shubham Sir Made notes for the
came up to one of the research I did and
associates and I was showed it to the
told to research associate.
regarding it.
Query being- if a price
of a product in being
fluctuating what will be
the tax implication on it
06/06/2018 To read and make Ms. Surbhi Premi Made copies of the acts,
copies of the new GST one for my mentor and
acts. one for my reference.
Such as- CGST So that all the rules can
SGST, UGST and be in front of us.
IGST.
07/06/2018 To find taxation rules in Ms. Surbhi Premi Read about the union
the Union territories of territories through
India. UGST act.
08/06/2018 To make PPT for Ms. Surbhi Premi Started my research
presentation and submit work for my report and
a report on the given presentation.
topic during the last
week of the internship.
09/06/2018 Weekly holiday

10/06/2018 Weekly holiday

Week 4

11/06/2018 To add new notifications to
the file and my folder which
were being released by the
government.
12/06/2018 To add annexure and correct
all the amendments being
made by the government
regarding GST.
13/06/2018 There were queries asked by
the Shudh Plus group which
deals with tobacco products.
14/06/2018 Queries regarding KG pan
Products Pvt. Ltd were
responded
15/06/2018 Report and presentation was Ms. Surbhi Premi
made in brief and was shown
to the mentor
16/06/2018 Weekly holiday
Ms. Surbhi Premi All the new notifications
relating to GST were
added by me in the files
made earlier.
Ms. Surbhi Premi Made changes and kept
it for future reference.
Ms. Surbhi Premi All the research work
was done to answer their
queries regarding their
products.
Shubham sir A meeting was held
regarding all the queries
and answers to the same
were given by sir.
Format stated by mentor
regarding the report and
presentation was
followed
17/06/2018 Weekly holiday

Week 5

18/06/2018 Researched on Land Laws Ms. Shivani It was for a query of the
applicable in the state of Haryana Bhatnagar firm’s client.
and enlisted the pro-tenant
provisions in the same.

19/06/2018 Drafted a case note in the matter Ms. Surbhi Premi This case was ongoing
of: and my mentor was in
STAR SHIPPING V. CHINA charge of it, therefore I
NATIONAL FOREIGN TRADE helped her in drafting
TRANSPORTATION her arguments.
CORPORATION

23/06/2018 Weekly holiday

24/06/2018 Weekly holiday

Weekly holiday Work done on 20th, 21st & 22nd was research work.

Arbitration in India is gaining importance given the overstressed judicial system

with the huge pendency of cases. With a lot of commercial disputes, it’s necessary
to have a proper arbitration mechanism in place for faster resolution of issues.

In this article, we discuss topics like the importance of arbitration, the present
status of arbitration in India, problems afflicting Indian arbitration mechanism,
various arbitration mechanisms and their pros and cons, key recommendations of
B N Srikrishna Committee, etc.

What is arbitration?
In simple words, arbitration is the act of dispute settlement through an arbitrator,
i.e. a third party, who is not involved in the dispute.

It is an alternative dispute settlement mechanism, aiming at settlement outside

the court.

What are the advantages of arbitration?

 It minimizes the court intervention.

 It brings down the costs of dispute settlement.
 It fixes timelines for expeditious disposal.
 It ensures the neutrality of arbitrator and enforcement of awards.
 Having an arbitration law encourages foreign investments to a country. It
projects the country as an investor friendly one having a sound legal
framework and ease of doing business.
 Having an arbitration law facilitate effective conduct of international and
domestic arbitrations rose under various agreements.

What is the mechanism of arbitration in India?

Arbitration in India is regulated by the Arbitration and Conciliation Act, 1996.

The Act is based on the 1985 UNCITRAL (The United Nations Commission on
International Trade Law) Model Law on International Commercial Arbitration and
the UNCITRAL Arbitration Rules 1976.

In 2015, Arbitration and Conciliation (Amendment) Act was enacted to improve

the arbitration in India.

Provision Prior to 2015

After 2015 Amendment
Amendment
Applicability of certain Provisions also apply to
provisions related to Provisions only applied to international commercial
interim orders by a court, matters where the place arbitrations even if the
the order of the arbitral of arbitration was India. place of arbitration is
tribunal, appealable outside India
orders, etc. to
international commercial
arbitration

If any matter is the The Court must refer the

Powers of the court to subject of an arbitration parties to arbitration
refer a party to arbitration agreement, parties will unless it thinks that a valid
if an agreement exists be referred to the arbitration agreement
arbitration does not exist

If the court passes an

interim order before the
commencement of
arbitral proceedings, the
proceedings must
Party to arbitration may commence within 90 days
apply to a court for from the making of the
Interim order by a court order, or within a time
interim relief before the
arbitration is complete specified by the
Court. Further, the Court
must not accept such an
application, unless it
thinks that the arbitral
tribunal will not be able to
provide a similar remedy.
Court to set aside an
arbitral award if it is in
In addition, includes
conflict with the public
awards that are (i) in
policy of India. Includes
contravention of the
Public policy as grounds awards affected by (i)
fundamental policy of
for challenging an award fraud or corruption, and
Indian Law or (ii) conflict
(ii) those in violation of
with the notions of
confidentiality and
morality or justice.
admissibility of evidence
provisions in the act.

Parties to appoint Court to confine itself to

Appointment of
arbitrators. If they are the examination of the
arbitrators unable to appoint existence of a valid
arbitrators within 30 arbitration agreement.
days, the matter is
referred to the court to
make such appointments.

Requires an arbitral
tribunal to make its award
within 12 months. This
may be extended by a six
month period. If an award
is made within six months,
The time period for the arbitral tribunal will
-----------------
arbitral awards receive additional fees. If
it is delayed beyond the
specified time because of
the arbitral tribunal, the
fees of the arbitrator will
be reduced, up to 5%, for
each month of delay.
Award that is made before
The time period for
a court, must be disposed
disposal of cases by a --------------------
of within a period of one
court
year

Fast track procedure for ------------------ Permits parties to choose

arbitration to conduct arbitration
proceedings in a fast track
manner. The award
would be granted within
six months
What are the types of arbitration in India?

There are two types of arbitration in India: Ad-hoc arbitration and Institutional
arbitration.

1. Ad-hoc arbitration

Ad-hoc Arbitration can be defined as a procedure of arbitration where a tribunal

will conduct arbitration between the parties, following the rules which have
been agreed by the parties beforehand or by following the rules which have
been laid down by the tribunal, in case the parties do not have any agreement
between them.

2. Institutional arbitration

Institutional arbitration refers to the administration of arbitration by an

institution in accordance with its rules of procedure. The institution provides
appointment of arbitrators, case management services including oversight of
the arbitral process, venues for holding hearings, etc.

Presently there are over 35 arbitral institutions in India, which are domestic,
international arbitral institutions, arbitration facilities by PSUs, trade and
merchant associations, and city-specific chambers of commerce and industry.
Many have their own rules and some follow the arbitration rules of the
UNCITRAL.

Indian institutions that administer arbitrations have an increasing popularity but

insufficient workload. Many arbitrations involving Indian parties are administered
by the international arbitral institutions such as the Court of Arbitration of the
International Chamber of Commerce (“ICC Court”), the Singapore International
Arbitration Centre (“SIAC”) and the London Court of International Arbitration
(“LCIA”),
Week 6

25/06/2018 Drafted legal opinion in the Shubham Sir

matter related to IIDL and
FSND

26/06/2018 As last few days were left only Ms. Surbhi Premi
research work was given to me
so that I could prepare for my
presentation.
27/06/2018 As last few days were left only Ms. Surbhi Premi
research work was given to me
so that I could prepare for my
presentation.
28/06/2018 As it was the last day before Ms. Surbhi Premi Same as the task
submitting the report and for
presentation all day was given to
me for that purpose.

29/06/2018 Team was busy with another

case, hence my presentation was
shifted to Monday.
30/06/2018 Weekly holiday
01/07/2018 Weekly holiday
02/07/2018 Ms. Surbhi Premi Internship completed.
Last day of internship.
Presentation was given
infront of all the indirect
taxes team