Neeraj Bhagat & Co. – Page 11 – Chartered Accountants

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, …

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 / Direct Taxation

Angel Tax Breather: Scheme to Accredit Investors in Works

India is eyeing a new framework for recognising investors so that they won’t be subject to the so-called angel tax provisions on their funding of startups. The Department for Promotion of Industry and Internal Trade (DPIIT) is looking to put in place such a regime so that investors will be able to fund startups without any limit.
“We are examining if a mechanism can be created for accrediting investors,” said a government official aware of the matter, details of which …

April 8, 2020 / Companies Act

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 …

April 8, 2020 / Foreign Investment

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 …

April 8, 2020 / Foreign Investment

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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April 8, 2020 / FEMA

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 …

April 8, 2020 / Direct 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 …

April 8, 2020 / Foreign Investment

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 …