Neeraj Bhagat & Co. - Page 4 of 28 - Chartered Accountants

August 25, 2021 / FEMA

Foreign Account Tax Compliance Act (FATCA)

The seeds of financial crisis were sown long back when the interest rates were fiercely low with very lenient lending norms leading to creation of housing price bubble in U.S. The bubble bursted and the period of 2007-2009 marked as an epic financial collapse leaving people jobless and their investments worthless. With the unemployment rates soaring high and hovering financial crisis, the government aimed to boost the economy. It was then the Foreign Account Tax Compliance Act (FACTA) was introduced …

August 13, 2021 / Business

Significant Economic Presence (SEP)

Technology plays a vital role in today’s world making our daily lives simpler. From medical diagnoses to business operations, from communication to education, everything seems impossible without technology. This pandemic has evidenced the same. Life would have come to stand still without it. But nothing stopped. Technology has infiltrated every aspect of our lives, changing the way we work, the way we learn and the way we shop.

There has been an ongoing paradigm shift in business from physical to …

August 7, 2021 / Business

Change In Registered Office of The Company

As per Section 12 of the Companies Act, 2013, any Change in the Registered Office of the Company, shall be reported to Ministry of Corporate Affairs, further many companies due to various reasons tend to change their Registered Office of the company.

A. PROCESS OF SHIFTING OF REGISTERED OFFICE WITHIN LOCAL LIMITS OF THE CITY.

1. Hold a BOARD MEETING and pass a Board Resolution for shifting of RO.

2. File E-form INC-22 with attach necessary documents.

Documents Required …

August 4, 2021 / Taxation

Global Minimum Tax

21^st century world largely operates under a Global Economic System. International Business is the buzz all around & businesses are not confined to boundaries. It involves cross border transactions both in goods and services. Conducive International Business Environment is imperative for multinational companies to operate and perform. In order to promote cross border trade, the government of each economy is simplifying the trade policies easing out the way business is conducted. But the challenging and complex issue of Taxation …

July 26, 2021 / Business

Start Up and Sweat Equity Shares

A Start Up in common parlance means a project undertaken by entrepreneur seeking to develop a scalable business model. The Government of India in order to streamline and promote all such brain child ideas launched an initiative called Start Up India on 16^th January 2016. It intended to build a strong network nurturing all the innovative ideas leading to massive wealth and employment creation. A Start Up can also be a newly established business but some of the parameters …

July 23, 2021 / Taxation

Brief Analysis of TDS under Section 194Q

As per Section 194Q the buyer, whose turnover or gross receipts or total sales is exceeding Rs. 10 crores in a financial year immediately preceding the relevant financial year, shall be liable to deduct tax at rate of 0.1% on the value exceeding Rs. 50 lakhs at the time of: –

Section 194Q was introduced in the Budget of 2021-22 and has come into effect from 1^st July, 2021. However, the CBDT has said that this provision would not …

July 14, 2021 / Company Formation / Registration

Incorporation of Section 8 Company In India

In India a Non-Profit Organization can be registered in three ways particularly:-

> Trust: By executing Trust Deed and get it registered with the Registrar of Trust,

> Society: with Registrar of Societies

> Section 8 Company: By executed MOA and AOA and get it registered pursuant to Companies Act, 2013.

S. NO.	PARTICULARS	TRUST	SOCIETY	SECTION 8 COMPANY
1.	Management	By Trustees	By a Committee or the Managing Council	By Board of Directors
2.	Minimum Requirement

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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, …