Business Archives - Page 5 of 8 - Neeraj Bhagat & Co.

April 8, 2020 / Business

Now, Startups can issue DVR shares

Startups and technology companies will be able to issue shares with differential voting rights (DVRs) with the government amending the Companies Act provisions to help entrepreneurs retain control even as they raise equity capital from global investors.
The Ministry of Corporate Affairs (MCA) has raised the existing cap of 26 percent of the total post issue paid up equity share capital to 74 percent of total voting power in respect of shares with DVRs of a firm.
Such shares have …

April 8, 2020 / Business

Start-up laud Finance Bill amendments

Start-ups and experts welcomed the Centre’s move to encourage only genuine start-ups by introducing an amendment to the Finance Bill, passed by Lok Sabha on Thursday. This includes a penalty of 200 per cent for not complying with the conditions laid down for availing angel tax exemption.
The biggest relief for start-ups was the clarifications regarding angel tax as it had caused much headache to both investors as well as start-ups. Further extension of tax exemptions given under Section 54(g) …

April 8, 2020 / Business

More Good News in Works for Startups

There could be more measures in the offing for startups following the budget announcements. The government is working on another set of measures that could be rolled out soon to make it easier for them to do business in the country.
A new set of tax return forms, aimed at saving angel investors and startups from any questioning by tax officers, will be rolled out by September.

“We would be modifying the return forms, which will allow the system to …

April 8, 2020 / Business

India Green Budget 2019-20

Union Budget 2019-20 has been presented on July 5th, 2019, washing away all the uncertainties and assumptions. This first maiden budget of Finance Minister Nirmala Sitharaman comes out to be an ambitious one, aiming to fulfill the dreams of Modi 2.0 Government to take India’s economy to USD 5 billion by 2024.
The budget 2019 offers incentives for startups and MSMEs, strengthens NBFCs, eases the tax compliance norms, prioritises empowerment
of rural India and women and focuses on …

April 8, 2020 / Business

Startup Companies rejoice as SEBI approves framework for issue of differential voting right

The tech-savvy start-ups will be beating drums as the market regulator, SEBI, in its board meeting held on June 27, 2019 has decided to come up with new norms for issuance of Differential Voting Rights (DVR) shares. The proposal related to issuance of DVR would be considered as a game changer for start—ups which are dealing with technology.
This is a welcome move by SEBI for startups. The framework for issuance of DVRs would allow promoters of startups to have …

April 25, 2019 / Business

New Era of Accounting-Transition to Ind as

1. INTRODUCTION

The Indian Accounting Standards (IND AS) are Accounting Standards, harmonized with IFRS (International Financial Reporting Standards)/IAS (International Accounting Standards) to make Financials Accounts and Reports of Indian Companies internationally accessible, acceptable, transparent and comparable.

Indian Companies have a far more global access as compared to earlier days and also because of leveraged policies of Indian Government toward the flow of FDI, a need was felt to introduce globally accepted Accounting Standards (IFRS). Most of the Countries in …

April 8, 2020 / Business

India-USA sign Inter-Governmental Agreement for Exchange of Country-by-Country Reports

India and the United States of America have signed an Inter-Governmental Agreement for Exchange of Country-by-Country (CbC) Reports on March 27, 2019. The Agreement was signed by Shri P.C.Mody, Chairman, Central Board of Direct Taxes and Mr. Kenneth I. Juster, Ambassador of the United States of America to India on behalf of the two countries. This Agreement for Exchange of CbC Reports, alongwith the Bilateral Competent Authority Arrangement between the two Competent Authorities, will enable both the countries to automatically …

April 8, 2020 / 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

…

April 8, 2020 / Business

Interest Equalization rate increases from 3% to 5% from MSME exporters

In order to help the exporter, it has been decided by the Government of India to increase w.e.f. November 02, 2018 Interest Equalisation rate from 3% to 5% in respect of exports by the Micro, Small & Medium Enterprises (MSME) sector manufacturers under the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit. The Scheme is available to all exports under 416 tariff lines [at ITC (HS) code of 4 digits] and exports made by MSMEs across all …