SC: Non-Compete Fee is Tax Deductible Revenue Expenditure; Key Tax Rulings Impact Businesses

• Supreme Court ruled non-compete fees are tax deductible revenue expenditure, not capital, even for multi-year agreements (*Sharp Business System* case).
• CESTAT clarified no CENVAT credit reversal is needed for goods sent to job workers, emphasizing compliance procedures (*Dish TV India Limited* case).
• CESTAT held Reverse Charge Mechanism (RCM) does not apply to services rendered outside India, even if paid by an Indian entity (*Intellect Design Arena Ltd* case).
• Reimbursements to foreign subsidiaries for services performed abroad are not considered "import of services" under RCM.

Why It Matters: Recent legal rulings clarify tax deductibility of non-compete fees and input tax credit norms for businesses.