Neeraj Bhagat & Co. – Chartered Accountants

March 19, 2019 / Business

Employee Stock Option Plan for an Unlisted Company

Brief about Employee Stock Option Plan (ESOP)

Employee Stock Option Plan (ESOP) is a frequently used incentive mechanism used by organizations. There are various reasons for which the employees of a company are given such stock options. The phenomena of stock options is more prevalent in start-up companies which cannot afford to pay huge salaries to its employees but are willing to share the future prosperity of the company. In such cases the employees are given the stock options as …

March 15, 2019 / Business

How to Set up Project Office in India?

‘Project Office’ means a place of business to represent the interests of the foreign company executing a project in India but excludes a Liaison Office.

The project office is the ideal method for companies to establish a business presence in India, if the object is to have a presence for a limited period of time. It is essentially a branch office set up with the limited purpose for executing a specific project. Foreign companies engaged in turnkey construction or installation …

March 11, 2019 / Business

How to Set up Branch/ Liaison Office in India

Recently, India has been growing at an unprecedented pace which has aroused a keen interest among foreign entities to establish their operations in India and tap into one of the largest and fastest growing market, and have access to some of the best human resources in the world.

A physical presence in India is essential to break into the country’s emerging market.

Foreign companies should consider state regulations, physical connectivity, and local costs when choosing a location for their Indian

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March 7, 2019 / Others

Closure of Liaison Office in India- Compliances to be done

Liaison offices (LOs) are a popular option for foreign investors exploring the Indian market for the first time, and unsure of how the country’s liberalizing FDI caps will affect their business.

In contrast to other business structures, LOs allow foreign companies to establish a light footprint in India while keeping their financial, legal, and administrative commitments low.

Normally, Liaison Office are registered in India for specified/limited purpose and when such purposes are achieved, either LO may want to get registered …

March 2, 2019 / Taxation

Over 7,000 cash-starved start-ups may benefit from angel tax relief

A series of changes made to the so-called angel tax by the government could give wing to 7,000 cash-starved start-ups, sources in the Department for Promotion of Industry and Internal Trade (DPIIT) said.
According to industry observers, an investment of around $12 billion might come from 2,000 angel investors and hundreds of smaller backers of start-ups by the end of the year. Of this, about $7 billion will come in the form of corporate investment.
After facing sustained pressure over …

February 26, 2019 / Business

Options for foreign companies setting up business in India

As a market, India has always been attractive to foreign companies because of the rapidly growing market. But in terms of actually taking steps to register a company in India, many foreign companies shelved their plans because of the perceived difficulties in doing the necessary paperwork. Over the last few years, however, many steps have been taken to increase the ease of doing business in India, and foreign companies are being encouraged to have a footprint in India. In …

March 2, 2019 / Others

Overseas Direct Investment (ODI)

Introduction
1. Overseas investments (or financial commitment) in :
• Joint Venture (JV) &
• Wholly Owned Subsidiaries (WOS) have been recognized as important avenues for promoting global business by Indian entrepreneurs.

2. Joint ventures are perceived as amedium of:
• economic &
• business co-operation betweenIndia and other countries.

3. Transfer of :
• Technology & skill
• Sharing of results of R&D
• Access to wider global market
• Promotion of brand image
• Generation of employment &…

February 5, 2019 / Goods and Services Tax (GST)

GST gets its first dispute resolution tribunal

The Union Cabinet on Wednesday approved aproposal to set up a national bench of the goods and services tax (GST) appellate tribunal (GSTAT) in Delhi. The apex appellate tribunal would deal with disputes between GST taxpayers and tax authorities predominantly arising out of the “place of supply” issue. Place of supply issue becomes critical, especially in case of services byacompany having presence in two or more states, or in the case of imports and exports. The decision was taken six …

February 2, 2019 / Business

The key highlights of the Interim Budget 2019-20

The interim budget proposed by Finance Minister Piyush Goyal has disappointed many taxpayers who were expecting income tax exemption threshold to be increased.

Instead, the Narendra Modi-led government has proposed a full rebate on net taxable income up to Rs five lakh per annum. Despite the move, people who have an annual income of over Rs 10,00,000 have room to pay no income tax at all.

The key highlights of the Interim Budget 2019-20 presented Parliament are as follows:

Individual

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January 19, 2019 / Taxation

Start-up tax exemption procedure simplified; merchant banker valuation report withdrawn

The Government of India introduced ‘Start-up India’ initiative for creating a conducive environment for the start-up companies in India. The CBDT inserted Section 80-IAC in I-T Act vide Finance Act 2016. This provision provides for 100% tax deduction in respect of profits of start-ups which are approved by Department of Industrial Policy and Promotion (DIPP).
The start-ups had been receiving notices from the Dept. for levying tax on proceeds received by them by issuing shares to investors at inflated prices. …