The aim of this article is to understand the inter relationship between taxation laws and other laws. These laws have a direct and inescapable bearing on the taxation laws and hence their comparative study becomes inevitable. There may be circumstances where taxation laws prevail over these other laws and vice- versa. The article attempts to bring a holistic picture of the legal scenario as prevailing in India, dealing with the dichotomy between tax collection and restrictions on the application of the provisions of the direct and indirect tax laws. The same assumes importance in cases of e-commerce and international trade. The importance of the same has also increased due to the growing demands of business process outsourcing (BPO) and knowledge process outsourcing (KPO) for which India is the first choice.

I. Introduction

The expression “law” is of wide import and varied dimensions. It cannot be confined to a single field, though primarily a given statute may be enacted for meeting a particular purpose. This holds true about taxation laws as well. The taxation laws though primarily enacted to mobilize revenue for the development and progress of the nation at large and to remove inequality of incomes, yet they travel far ahead and transgress upon other laws as well. The taxation laws also provide certain inroads into other laws operating in a totally different environment and context. The taxation laws have to consider various amendments made from time to time in these laws so that they can work in a more appropriate manner. Similarly, the other laws also provide inroads into the taxation laws and thus dilute the operation and rigours of the taxation laws. These laws help the assessee or the defaulter to escape its/his liability under the provisions of the taxation laws. These laws also provide an opportunity to the concerned person to mould and use the provisions of the taxation laws as per his own requirements and advantages. Thus, a comparative study of these laws is inevitable to understand the proper working of the taxation laws.

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