Neeraj Bhagat & Co. - Page 4 of 26 - Chartered Accountants

July 8, 2021 / FEMA

Penalties under FEMA

Foreign Exchange management Act, 1999 (FEMA) was passed on 29^th December 1999 in Parliament replacing the Foreign Exchange Regulation Act (FERA). The new regime is made consistent with the framework laid down by the World Trade Organisation. FEMA enabled all cross border trades & payments and promotes orderly development of foreign exchange market in India.

Section 13 of FEMA lays down the Penal provisions. As per Section 13(1), if any person contravenes any provision or any rule, regulation, notification, …

July 1, 2021 / FEMA

Compounding of contraventions under FEMA by RBI

The Foreign Exchange Management Act, 1999 (FEMA) is an act of the Parliament of India to consolidate and amend the laws relating to foreign exchange with the objective of facilitating external trade & payments and promoting the orderly development and maintenance of foreign exchange market in India.

Section 15 of Foreign Exchange Management Act (FEMA), 1999 empowers Reserve Bank of India to compound any contravention made under Section 13 of FEMA, 1999 except the contraventions under section 3(a).

Compounding refers …

June 23, 2021 / FEMA

Export of Services and Implications under GST/ FEMA

The term Export generally refers to Exports of Goods but that reference is a passé now. Export of Services is the emerging trend as it widens the scope of exports, bringing in the diversification and increasing India’s Foreign Exchange Earnings. The Indian Economy has witnessed a major boost in the last decade in the services sector.

India has emerged as the fastest growing nation in global services trade. It remained among the top 10 trading countries in commercial services in …

June 16, 2021 / Company Formation / Registration

All About One Person Company (OPC)

One Person Company

SECTION 2(62): ‘One Person Company’ means a company which has only one person as a member.

Who Can Be Member Of OPC?

Rule 3 of Company Incorporation Rules, 2014
Only a natural person who is an Indian citizen [whether resident in India or otherwise].

Points Which Must Be Kept In Mind While Registering OPC.
1. Such Company cannot be Incorporated or converted into a Section 8 Company.
2. An OPC cannot carry out NBFC related activities and …

June 11, 2021 / Goods and Services Tax (GST)

Export of services under GST

The Government is always concerned about the country’s exports and therefore, they are pretty keen to pamper the exporter by incentivizing and providing certain privileges to them. On the other hand, it is the utmost duty of the government’s department to curb down the fraudster who pretend to be the exporter and defrauding the revenue by their illicit activities. Below are the provisions in GST related to export of service.

As per section 2(6) of IGST Act, 2017, “export of …

June 2, 2021 / Business

Decrypting Cryptocurrency in India

Cryptocurrency is one of the most highlighted ingenuity of the decade. Various countries deal with cryptocurrencies differently, e.g. in the USA, Bitcoin is treated as an asset. At the same time, Singapore recognizes Bitcoin as a valid currency, and Japan treats it as a commodity.

Cryptocurrency can be referred as a currency stored in coded files i.e, digital money. Cryptocurrency uses something called cryptography to secure its transactions. Cryptography, to put it in simple words is a method of converting comprehensible …

May 22, 2021 / Business

India’s Growth projected at 10.1% in 2022

It is a widely held view that every crisis also presents an opportunity. Given the prevalence of inequality in Indian economy, the implementation of a fiscal stimulus across sectors will not only lift the economy out of the woods, but also address some of the existing distortions in income and wealth distribution.

The United Nations, in its mid-year update of the World Economic Situation and Prospects (WESP) which was first released in January 2021, projected that the Indian economy would …

May 19, 2021 / Business

TDS on Cash Withdrawal

The Finance Act, 2019 introduced a new section, Section 194N which brings the concept of TDS on cash withdrawal. In order to strengthen the Digital Economy and to curb on physical cash movement, the Government of India took the initiative to tax the person(s) who withdraw heavy cash from the bank account and below is the brief about deduction of TDS on cash withdrawal.

Who is liable to deduct TDS

Banks and banking institution
Co-operative societies engaged in the business

…

May 14, 2021 / Foreign Investment

Export benefits in India

Every country believes in keeping foreign reserves on a higher side to balance the economy. For that purpose, every economy tends to encourage the exports and motivate the indigenous production. To encourage the exporter every country provides a lot of benefits in terms of Duty Drawback etc. India is not behind compared to any other country to promote their exports and to reward the exporters.

However, there are a lot of benefits and facilities are mentioned in the FTP which …