Neeraj Bhagat & Co. - Page 7 of 26 - Chartered Accountants

January 1, 2021 / Business

Companies fresh start scheme, 2020 –one time last opportunity to get rectify non-compliances

The MCA on 30th March 2020 launched a compliance relaxation scheme namely, Companies Fresh Start Scheme, 2020. The Scheme was formulated to provide opportunities to companies to make good of any filing default, and make a fresh start as a fully legally compliant entity. The crux of Schemes is to provide a one-time waiver towards payment of additional filing fees by companies with the Registrar of Companies during the term of the Scheme, i.e.: from 1 st April 2020 to …

January 1, 2021 / Taxation

Valuations and Taxation aspects for start-up

VALUATION OF SHARES FOR COMPANY REGISTERED UNDER STARTUP INDIA WITH MINISTRY OF COMMERCE & INDUSTRY: –

Valuation of equity shares is generally required for regulatory or financial reporting purposes for a business. In valuation of shares, the underlying asset is the business and per share value is calculated to arrive at the final valuation.

Methods of Valuation to be followed by Registered Valuers for a Startup Valuation:
There are several commonly used and accepted methods for determining the fair …

January 1, 2021 / Business

Startup and Sweat equity shares

Startup: Startup India is a flagship initiative of the Government of India, intended to build a strong ecosystem that is conducive for the growth of startup businesses, to drive sustainable economic growth and generate large scale employment opportunities.

Who can be registered as Startup?

Private Limited Company
Registered Partnership Firm
limited liability partnership (LLP)

Note: – 1. An entity is eligible to be recognized as start upto a period 10 years from the date of incorporation.

2. Startup …

January 1, 2021 / Business

ESOP vs Sweat equity shares

An employee is the key of the success of every organization and every employee deserves to be compensated for the efforts made by them to make the organization successful in the competitive market and the issue of Sweat Equity shares and ESOP is the best way to compensate them also in order to motivate the morale of the employees and also to retain them for long term, Companies opt following modes of issue:

“Employee Stock Option’ (ESOP) has been …

January 1, 2021 / Business

Comparison between Liaison office, Project office & Branch office

Liaison Office
Companies incorporated outside India can open ‘Liaison Office’ (also known as representative office) in India. Liaison office is a place of business to act as a channel of communication between the principal place of business or Head Office. The Liaison office can undertake only liaison activities, it is not allowed to undertake any business activity in India and cannot earn any Income in India. The activity of the Liaison office can be better undertaken with the aforesaid …

January 1, 2021 / Business

Recognition and benefits for startups including tax benefits

Startup India Scheme is an initiative by the Government of India under leadership of Mr. Narendra Modi for generation of employment and wealth creation. The goal of Startup India is to develop and innovate products and services and increase the employment rate in India.

To promote growth and help Indian economy, many benefits are being given to entrepreneurs establishing startups.

Department for Promotion of Industry and Internal Trade (DPIIT) considers an entity as a startup only up to a period …

January 1, 2021 / Business

Subsidiary company Vs Liaison office

India has been growing at a rapid pace to transform into one of the largest and fastest growing market, with having access to some of the best human resources in the world.

There are many options through which one can start business in India.

Setting up Subsidiary or Liaison Office in India can be one of the option for the foreign entities to undertake activities in India. Let’s have a comparative view on both the options:

Comparison of Subsidiary

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January 1, 2021 / FDI

Comparison between Branch office & Subsidiary company

Meaning of Branch Office: Branch office implies an establishment set up by parent company to perform the similar business operations at different locations. One of the common strategies of the Companies to expand their business at the national or international level, is to set up branches, at different places. Branches are a part of the parent organization, which are opened to perform the same business operations as performed by the parent company to increase their reach.

Meaning of Subsidiary …

June 20, 2020 / Goods and Services Tax (GST)

Clarification on Taxability of Director Remuneration in GST

The recent ruling by GST AAR Rajasthan in the case of M/s Clay Crafts India Pvt Ltd., it was held that the Directors of the company cannot be considered as the employee of the company and thus they are outside the purview of Clause (1) of Schedule III of CGST Act, 2017 and the consideration paid by the company to the directors in any manner, whether as salary or commission, shall be taxable under GST in the hands of …

June 10, 2020 / FDI

Govt. tweaks FDI norms; bars automatic investment in Indian Cos. from neighbouring countries

The Government of India has reviewed the extant FDI policy for curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic and amended para 3.1.1 of extant FDI policy as contained in Consolidated FDI Policy, 2017 as under:
(a) A non-resident entity can invest in India, subject to the FDI Policy except in those sectors/activities which are prohibited. However, an entity of a country, which shares land border with India or where the beneficial owner of an investment …