Neeraj Bhagat & Co. – Page 6 – Chartered Accountants

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 …

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 …

January 1, 2021 / 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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January 1, 2021 / 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 …

January 1, 2021 / 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). …

January 1, 2021 / 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 …

April 8, 2020 / Business

FM presents Union Budget 2020-21

“This budget has both vision and action..”
Finance Minister Nirmala Sitharaman, on Feb 01, 2020 unveiled the budget for fiscal 2020-21, vowing to boost income of Indians and their purchasing power, in a bid to revive domestic economic growth that has slumped to lowest in decade.
This year’s Union Budget centres around three ideas – Aspirational India, Economic Development, a Caring Society.
Here are the key highlights of the budget on:

Taxation:
1. New taxation regime has been introduced for …

April 8, 2020 / Companies Act

Additional Director Appointment under Companies Act, 2013

Article discusses Procedure for the appointment of Additional director, Procedure of Regularisation of Additional Director as Normal director and ROC Forms required to be filed for Additional director.

Relevant Sections: [161(1), read with 152, 153, Schedule I Table F Regulation 66 AOA of Companies Act, 2013]

Generally, every director shall be appointed by the members in General Meeting of the Company, but appointment of an Additional Director is an exception to this, accordingly:

Procedure for the appointment of Additional director:

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