RELIEF on corporate tax
/ Direct Taxation

FM announces big RELIEF on corporate tax

“This initiative will prove to be an economy booster..”
The government has promulgated the Taxation Laws (Amendment) Ordinance 2019 to make amendments in the Income-tax Act and the Finance (No. 2) Act 2019. With a $20 billion stimulus to reboot India, Finance Minister Nirmala Sitharaman addressing her fourth press conference held on Friday (20th Sep, 2019) announced a slew of fresh measures to prop up slowing economic growth and boost consumption.
It will give a great stimulus to “Make In …

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UN releases ‘Digital Economy Report 2019’
/ Business

UN releases ‘Digital Economy Report 2019’

The United Nations has released Digital Economy Report of the United Nations Conference on Trade and Development, which examines the implications of the digital economy, especially for developing countries. The Report provides valuable insights and analyses to support policymakers at the national and international levels to ensure that no one is left behind by the fast-evolving digital economy.

GST Cut for Outdoor Catering on the Cards
The Goods and Services Tax Council is likely to consider reducing the tax rate …

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Comparison of Share Valuation under different Indian Acts
/ Business

Comparison of Share Valuation under different Indian Acts

Valuation is a complex exercise demanding much more than number crunching and becomes more complex when it comes to regulatory valuations where certain parameters are laid down. It may be difficult to weave these requirements to the peculiar facts of a case, thereby highlighting the important role of an expert valuer.

Valuation of equity shares is generally required for regulatory or financial reporting purposes for a business. In valuation of shares, the underlying asset is the business and per share …

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section 185 of companies act, 2013
/ Companies Act

All about Section 185 of Companies Act, 2013

Section 185 explains Provisions under Company Law Related to Direct or Indirect Loan or Advances to Directors by Company.  Loan or advances include loan represented by a book debt, to any of the directors or to any other person in whom the director is interested or give any guarantee or provide any security in connection with any loan taken by him or such other person. Article also explains filing requirement related to Loan or Advances to Directors and penalty for …

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Now, Startups can issue DVR shares
/ 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 …

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All about Inter-Corporate Loans and Investments made by Company
/ Companies Act

All about Inter-Corporate Loans and Investments made by Company

ALL ABOUT INTER-CORPORATE LOANS AND INVESTMENTS MADE BY THE COMPANY UNDER COMPANIES ACT, 2013

COMPANY
> Gives Loan to any person

> Investment in Body Corporate

> Provides Security to any person

> Provides Guarantee to any person

Unanimous-Approval-of-Board-of-Directors

–

limits-exceeded

Important Note: – The word “person” does not include any individual who is in the employment of the company

Cases where Special Resolution is not required by the Company even when the above said limits exceeded:

> Where a loan or …

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FSI in Telecom Sector
/ FEMA

FDI in Telecom Services sector

Telecommunications is one of the fastest growing industries in India that has undergone an innovative phase over the past few years and stands as the second largest telecommunications market in the world after China. It is due to liberalization policy that telecom sector could attract more FDI flows in private sector participation increased in total telephone connections of the nation. This led the sector to competitive stimulus, high telecom penetration and substantial reduction in tariffs. Though foreign telecom players have …

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/ Companies Act

Compliance Chart for Preferential allotment of shares

Points to remember

Issue should be authorized by Articles of Association of the Company.

Only fully paid securities to be issued and the following securities can be issue under preferential allotment.

Issuance of Equity shares.

Issuance of Fully or partly convertible debentures

Issuance of any other securities convertible into equity shares.

The preferential issue can be offered to person other than equity shareholders of the Company and prepare a list of persons (not exceeding 200 in a financial year for …

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Foreign direct investment in India
/ Foreign Investment

Govt looks at fixing FDI security gaps

Concerned over rising foreign direct investment (FDI) inflows into strategic sectors like telecom as well as information technology (IT) and IT-enabled Services (ITeS) through the automatic route, the government is considering eliminating the security gaps through a stringent scrutiny mechanism.
The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed an online filing of advance foreign investment returns on the Foreign Investment Facilitation Portal (FIFP), which will be accessible to the Reserve Bank of India (RBI), the Ministry …

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FDI in Construction Development sector in India
/ Foreign Investment

FDI in Construction Development sector in India

The Construction/ Real Estate sector is one of the most critical sectors of the Indian economy due to its huge multiplier effect on the economy. Any impact on the Real Estate sector has a direct bearing on economic growth. Due to the well-acknowledged need for foreign investments into this sector because of the sheer demand, the Foreign Direct Investment (FDI) route has attracted foreign investors’ interest in this sector.

In the year 2005, Reserve Bank of India (RBI) issued a …

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