Neeraj Bhagat & Co. – Page 3 – Chartered Accountants

April 23, 2020 / FEMA

Setting up subsidiary outside India

With the advent of Globalization, more and more Indian companies are interested in doing business outside India. They want to set-up a branch office or a subsidiary abroad. There are multiple benefits of doing so such as cost reduction because they save on import duty, ease of doing business, building an international brand etc.

Overseas investment in wholly owned subsidiaries or joint ventures has been recognized as important avenues for promoting global business by Indian entrepreneurs.

Broadly there are two …

April 21, 2020 / FEMA

Set up Branch office /Representative office outside India

Indian dynamism, entrepreneurship and enthusiasm is seeking new horizons across the globe. Of course, anyone stepping into a foreign land must take care of the laws, rules and regulations of the host country. Each country is different and keeping abreast of the laws of different countries can indeed be a challenge.

Reserve Bank of India controls and regulates investment in foreign entities by persons who are residents of India. A person may be a citizen of India and resident outside …

April 18, 2020 / Direct Taxation

Taxation Scheme for Salaried Employees

As you all must be aware of the New Taxation Regime introduced by the Finance Act, 2020 by insertion of section 115BAC in the Income Tax Ac, 1961. Now, there is a lot of confusion going around regarding this and number of questions mentioned below remained unanswered as of now-

(a) How to deduct withholding tax from the salaries of employees?
(b) What procedure need to be followed by the employers to go about it?
(c) What will happen if …

April 16, 2020 / Direct Taxation

Taxation on Sale of Securities

Everyone knows that Income from salary, rental income and business income is taxable under their respective heads. But what about income from sale or purchase of securities? Many stakeholders which includes homemakers, retired people, youth, working professionals spend their time gainfully buying and selling securities but are unsure of how this income is taxed. The first question that comes in mind is whether to treat gains or losses from the sale of securities as ‘Income from Business’, or as ‘Capital …

April 14, 2020 / Companies Act

Steps for Company Formation in India

Effective from 23rd Feb, 2020, a new integrated Web Based form ‘SPICE+’ pursuant to the Companies (incorporation) Amendment Rules, 2020 has been introduced by Ministry of Corporate Affairs (MCA) which will facilitate: –

Allotment of Director’s Identification Number (DIN) of the directors
> Approval of Name of the company
> Approval of PAN/TAN of company
> Incorporation of the company
> Registration under EPFO
> Registration under ESIC
> Registration under Profession Tax (Maharashtra)
> Opening of Bank Account
>

…

April 11, 2020 / FEMA

Foreign Currency – Transfer of Shares (FC-TRS)- Points to Remember

FCTRS (Foreign Currency- Transfer of Shares):

1. No fee for filing of form FC-TRS, if filed within 60 days from the date of receipt/date of payment of the amount of consideration otherwise the RBI/ AD Bank may impose the penalty for late filling by way of Late Submission fee (LSF).

2. Onus of filing of form FC-TRS lies on the transferor/transferee whosoever is resident in India.

3. The transferor/transferee filing the form needs to register itself with RBI-Firms portal before …

April 11, 2020 / Business

Relaxation in Tax and Statutory Norms due to Covid-19 outburst

The COVID-19 pandemic has forced governments to take unprecedented measures such as restricting travel and implementing strict quarantine requirements. Whereas, in view of the spread of pandemic COVID-19 across many countries of the world including India, causing immense loss to the lives of people, it has become imperative to relax certain provisions, including extension of time limit, in the taxation and other laws. And whereas the Parliament is not in session, the President is pleased to promulgate the Ordinance called …

April 9, 2020 / FEMA

LLPs and ECBs in India

Amidst the recent global challenges and trade wars, many developing countries, including India, faced macro-economic issues due to weakness in their currencies. The Indian government has taken many steps to stabilize the volatility in the rupee by carrying out open market operations in the currency markets, boost exports, additional import duties, etc. India has also taken another step in boosting its foreign reserves by liberalizing the foreign currency loan regime.

The external commercial borrowings regime provides for a framework for …

April 7, 2020 / Business

Provident fund for International Worker

Foreign workers taking up overseas assignments pay more attention to the tax regime of the country when determining costs, and often tend to overlook the social security laws of the country, which are equally important.

India requires every business entity employing more than 20 workers to register with the national social security system and makes it mandatory for employees and employers to contribute towards retirement and insurance scheme.

The country’s social security system is governed by the Employees Provident Funds …

April 8, 2020 / Companies Act

LLPs and FDI in India

The concept of LLP, introduced in India through the Limited Liability Partnership Act, 2008 has become a popular form of business entity in India owing to its simplified procedures for registration and maintenance. LLPs allow many of the small and medium-sized to enjoy a separate legal entity, improve transferability and provide its promoters with limited liability protection. Therefore, there is tremendous interest among small business owners and service providers to register their business as an LLP.

With the Indian population …