Neeraj Bhagat & Co. - Page 6 of 22 - Chartered Accountants

January 1, 2021 / 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 …

January 1, 2021 / 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
>

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January 1, 2021 / 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 …

January 1, 2021 / 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 …

January 1, 2021 / 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 …

January 1, 2021 / 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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January 1, 2021 / 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 …