Neeraj Bhagat & Co. – Page 5 – Chartered Accountants

April 8, 2020 / Companies Act

Companies Fresh Start Scheme 2020 (CFSS-2020)- A quick review

The Ministry of Corporate Affairs (MCA) vide its General Circular No. 12/2020, comes up with the Companies Fresh Start Scheme, 2020 for one-time application of condonation of delay of filling the various documents, forms, returns etc. with the MCA.

Let us have a quick review:

FEW SPECIAL CASES

If defaulting company has filed any appeal against any notice, complaint, order passed by court or by an adjudicating authority, it can file application under this scheme for immunity certificate only

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April 8, 2020 / Companies Act

MCA updates due to Covid 19

Ministry of Corporate Affairs in view of COVID-19 have taken the following measures to reduce the compliance burden and other risks:

UPDATE NO.1
Non-compliance of minimum residency in India for a period of at least 182 days by at least one director of every company, under Section 149 of the Companies Act, 2013 shall not be treated as a non-compliance for the financial year 2019-20.

UPDATE NO.2
The mandatory requirement of holding meetings of the Board of the companies

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April 8, 2020 / Direct Taxation

Foreign Companies and Permanent Establishment (PE)

With this article, we would like to explicate the concept of Foreign Companies and PE in light of Indian Income Tax Act provisions.

Foreign Companies

♠ Foreign company means a company which is not a domestic company, i.e. a company registered outside India in any other foreign country. [Section 2(23A)]

♠ The Foreign Company may be treated as Domestic Company if such company makes prescribed arrangement in India as per Rule 27.

♠ Prescribed arrangement means an arrangement …

April 8, 2020 / FEMA

RBI reporting under Single Master Form (SMF)

The Reserve bank of India has announced the new reporting structure for FDI related transactions in which they have combined different reporting into a single combined form i.e. the Single Master Form (‘SMF’) which subsumed all the existing reporting in different forms such as ARF, FCGPR, FCTRS etc. Also, by implementation of this new structure, a new reporting online portal (FIRMS) has been introduced in place of EBIZ.

FIRMS, RBI is an online reporting platform for reporting of foreign investments …

April 8, 2020 / FEMA

Cabinet nod for foreign listing of firms, decriminalising offences

The Union Cabinet has approved 72 changes to the Companies Act 2013, with a thrust on decriminalising compoundable offences and allowing direct foreign listing for domestic companies to boost “Brand India”.
The nod for the Companies amendment Bill, likely to be tabled in the ongoing Parliament session, has been given to ease compliance burden related to corporate social responsibility (CSR) by exempting companies with obligation to spend Rs. 50 lakh or less. Such companies will not be required to have …

April 8, 2020 / Goods and Services Tax (GST)

Decisions Taken In 39th GST Council Meeting

Article summarises Decisions Taken In 39th Meeting of GST Council on 14th March 2020.

ANNUAL RETURN

Relaxation of MSMEs from furnishing of Reconciliation Statement in FORM GSTR 9C for the F.Y. 2018-2019, for taxpayers having aggregate turnover > Rs.5 crores.
Due date for filling Annual Return and the Reconciliation Statement for the F.Y. 2018-2019 to be extended to 30.06.2020.
Late fees not to be levied for delayed filing of the Annual Return and Reconciliation Statement forn F.Y. 2017-18 and 2018-19.

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April 8, 2020 / Foreign Investment

Investments by Some FPIs may Attract Retro Tax

The budget proposal to apply indirect transfer provisions to even Category II foreign portfolio investors (FPIs) could lead to the imposition of retrospective tax on certain transactions, experts said. The government had restricted the exemption from indirect transfer taxes to Category I FPIs in the budget. Previously, even Category II FPIs had enjoyed the exemptions. While making changes to the law, the government grandfathered or exempted only those transactions made by such FPIs till September 23, 2019, from the ambit …

April 8, 2020 / Business

Registration and Compliance of Peer to Peer Lending Platform-NBFC

NBFC –Peer to Peer Lending platform (NBFC-P2P) is a type of Non-Banking Financial Company which carries on the business of providing services of Loan facilitation to willing lenders and borrowers through online platform. This type of Non-Banking Financial Company is not allowed to accept deposits or lend on its own. It is to moderate the interactions between lenders and borrowers. NBFC-P2P provides services of matching the right lender with the right borrower through the due diligence on electronic platform (e-platform). …

April 8, 2020 / Direct Taxation

Income Tax E-Assessment Proceeding

In her budget speech, the Hon’ble Finance Minister, Smt. Nirmala Sitharaman had announced launching of a scheme in 2019 that would provide e-Assessment of Income-tax in electronic mode, in a phased manner, with no human interface.

-On 7th of October 2019, the Revenue Secretary has launched the faceless assessment in the Income Tax Department by inaugurating the NeAC (NeAC) in Delhi.

-Under e-Assessment scheme 2019: –

(i) There would be a setup of Digital Technology for Risk Management …