Neeraj Bhagat & Co. – Page 9 – Chartered Accountants

April 8, 2020 / Business

Startup Companies rejoice as SEBI approves framework for issue of differential voting right

The tech-savvy start-ups will be beating drums as the market regulator, SEBI, in its board meeting held on June 27, 2019 has decided to come up with new norms for issuance of Differential Voting Rights (DVR) shares. The proposal related to issuance of DVR would be considered as a game changer for start—ups which are dealing with technology.
This is a welcome move by SEBI for startups. The framework for issuance of DVRs would allow promoters of startups to have …

April 8, 2020 / Direct Taxation

G20 Finance Ministers agree to introduce ‘Digital Tax Rules’ for tech giants by 2020

During an event held on June 8-9, 2019 at Fukuoka, Japan, the Finance Ministers of the G20 member nations called for the creation of common Digital Tax Rules for multinational technology companies.
Big Tech Giants such as Facebook, Google, Amazon, etc., face criticism for cutting their tax bills by booking profits in low-tax countries regardless of the location of the end customer. G20 members have agreed to implement common rules to plug in the loopholes that multinationals use to book …

April 8, 2020 / Companies Act

Appointment of Auditors for Companies other than Government Companies

For a newly incorporated Company:
The Board within 30 days from the date of incorporation of the Company, shall appoint the first auditor of the Company who shall hold office of the statutory auditor from the conclusion of that Board Meeting till the conclusion of First AGM of the Company and is liable to sign the Financial statement for the First Financial Year of the Company.

For the appointment of auditor for Subsequent to First Auditor/ already incorporated Companies:
As …

April 8, 2020 / Companies Act

All about Contribution in Limited Liability Partnership (LLP)

Form/Manner of Capital contribution

As per the provisions of Section 32 of Limited Liability Partnership Act, 2008, contribution of a partner may consists of tangible, movable or immovable or intangible property or other benefit to the limited liability partnership, including money, promissory notes, other agreements to contribute cash or property, and contracts for services performed or to be performed. The monetary value of contribution of each partner shall be disclosed in the accounts of LLP in the prescribed manner.

Obligation

…

April 8, 2020 / Direct Taxation

541 start-ups got angel tax exemption

The government has provided angel tax exemption to 541 start-ups so far, industry secretary Ramesh Abhishek tweeted. He said only 36 applications for the exemption were turned down and that too for incomplete documentation.
The angel tax is levied on start-ups that have received equity infusion in excess of their fair valuation, with the premium being paid by investors as their income. It was introduced in the 2012-13 Budget by the then finance minister Pranab Mukherjee to curb money laundering.…

April 8, 2020 / Direct Taxation

DPIIT proposes IT law tweaks to help startups

With a view to facilitate fund raising by startups, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed relaxation in the income tax laws.
These suggestions are part of ´Start up India Vision 2024´.
It has recommended amendments in Section 54GB (capital gain on transfer of residential property not to be charged in certain cases) and Section 79 (carry forward and set off of losses in case of certain companies) of the Income Tax Act.
It has …

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

Types of Audit under Goods and Services Tax with GST Audit Checklist

Audit under GST is the examination of records, returns and other documents maintained by a registered dealer. The aim is to verify the correctness of Turnover declared, Taxes paid, Refund claimed and input Tax Credit availed by an assessed as per provisions under GST along with is to assess the auditee’s compliance with the provision of GST Act and Rules.

Types of Audit

There are three types of Audit prescribed under GST laws which are graphically presented as below. We …

April 8, 2020 / Direct Taxation

Capital Gains Tax Relief Likely for Investors Exiting Startups

The government is considering exempting investors from tax on capital gains accrued when they exit a startup, in a bid to attract more funds into the sector.
The Department for Promotion of Industry and Internal Trade (DPIIT) is weighing two alternatives to deliver this incentive — one, a blanket exemption, and two, a conditional exemption based on funds redeployed. The latter would be on lines of the benefits offered to nascent firms in the UK.
After giving investors and entrepreneurs …

April 8, 2020 / FEMA

External Commercial Borrowings: Regulatory Framework Substantially Relaxed

Funding Indian corporates through debt has been traditionally been a preferred mode of funding due to inherent advantages such as security creation, minimum guaranteed returns and tax optimization for both the lender as well as the borrower. The modes for offshore debt funding have been limited to external commercial borrowings (“ECB”), non-convertible debentures (“NCD”), compulsorily convertible debentures and certain hybrid debt instruments. Each of these options have been subjected to regulatory restrictions in terms of eligible …