Neeraj Bhagat & Co. – Page 11 – Chartered Accountants

April 8, 2020 / Companies Act

All about Contribution in Limited Liability Partnership (LLP)

Form/Manner of Capital contribution

As per the provisions of Section 32 of Limited Liability Partnership Act, 2008, contribution of a partner may consists of tangible, movable or immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed. The monetary value of contribution of each partner shall be disclosed in the accounts of LLP in the prescribed manner.

Obligation

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April 8, 2020 / Direct Taxation

541 start-ups got angel tax exemption

The government has provided angel tax exemption to 541 start-ups so far, industry secretary Ramesh Abhishek tweeted. He said only 36 applications for the exemption were turned down and that too for incomplete documentation.
The angel tax is levied on start-ups that have received equity infusion in excess of their fair valuation, with the premium being paid by investors as their income. It was introduced in the 2012-13 Budget by the then finance minister Pranab Mukherjee to curb money laundering.…

April 8, 2020 / Direct Taxation

DPIIT proposes IT law tweaks to help startups

With a view to facilitate fund raising by startups, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed relaxation in the income tax laws.
These suggestions are part of ´Start up India Vision 2024´.
It has recommended amendments in Section 54GB (capital gain on transfer of residential property not to be charged in certain cases) and Section 79 (carry forward and set off of losses in case of certain companies) of the Income Tax Act.
It has …

April 8, 2020 / Goods and Services Tax (GST)

Types of Audit under Goods and Services Tax with GST Audit Checklist

Audit under GST is the examination of records, returns and other documents maintained by a registered dealer. The aim is to verify the correctness of Turnover declared, Taxes paid, Refund claimed and input Tax Credit availed by an assessed as per provisions under GST along with is to assess the auditee’s compliance with the provision of GST Act and Rules.

Types of Audit

There are three types of Audit prescribed under GST laws which are graphically presented as below. We …

April 8, 2020 / Direct Taxation

Capital Gains Tax Relief Likely for Investors Exiting Startups

The government is considering exempting investors from tax on capital gains accrued when they exit a startup, in a bid to attract more funds into the sector.
The Department for Promotion of Industry and Internal Trade (DPIIT) is weighing two alternatives to deliver this incentive — one, a blanket exemption, and two, a conditional exemption based on funds redeployed. The latter would be on lines of the benefits offered to nascent firms in the UK.
After giving investors and entrepreneurs …

April 8, 2020 / FEMA

External Commercial Borrowings: Regulatory Framework Substantially Relaxed

Funding Indian corporates through debt has been traditionally been a preferred mode of funding due to inherent advantages such as security creation, minimum guaranteed returns and tax optimization for both the lender as well as the borrower. The modes for offshore debt funding have been limited to external commercial borrowings (“ECB”), non-convertible debentures (“NCD”), compulsorily convertible debentures and certain hybrid debt instruments. Each of these options have been subjected to regulatory restrictions in terms of eligible …

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 / Direct Taxation

I-T Proposes New Norms for Taxing MNCs in India

The income tax department Thursday proposed change in the methodology for taxing multinational companies, including digital firms, having permanent establishment in India by giving weightage to factors like domestic sales, employee strength, assets and user base. The CBDT Committee on ‘Profit Attribution to Permanent Establishment (PE) in India’ also said MNCs that are incurring global losses or a global profit margin of less than 2% and have operations in India will be deemed to have made a profit of 2% …

April 8, 2020 / Companies Act

Mandatory Compliances for a Private Limited Company in India

Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated.

Managing the day to day operations of your business along with complying the corporate laws can be little taxing for any entrepreneur. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.

Recently, …