Companies Act , 2013 A normal company is required to maintain its books of account and vouchers for a period of 8 years immediately preceding the current year. The books and papers of the Amalgamated/Transferor Company must be not be disposed of without the prior permission of the Central Government. The books and papers of a company which has been wound-up and of its liquidator shall not be destroyed for a period of 5 years from the date of its dissolution. They may
Introduction: A Non-resident Ordinary (NRO) account is a savings or current account held in India that helps NRIs manage income earned in India such as rent, dividends, or pension from abroad. The account holder can deposit and manage accumulated rupee funds conveniently through an NRO account. Repatriation under NRO account: The principal amount is not repatriable and can be used only for local payments. However, the interest earned is fully repatriable. Other current incomes such as pensions, dividends, rent, etc are also repatriable,
Reverse charge is a mechanism where the recipient of the goods and/or services is liable to pay GST instead of the supplier. 1. What is Reverse Charge? 2. When is Reverse Charge Applicable? 3. Time of Supply under Reverse Charge 4. What is Self-Invoicing? 5. Frequently Asked Questions(FAQ) What is Reverse Charge ? Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed. When is Reverse Charge Applicable ? A.
Tax Deducted at Source (TDS) DeMystified TDS stands for tax deducted at source, it is also known as withholding taxes in many countries. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department. From the perspective of the person response to make any payment , the required TDS amount is to be
Increasing participation of multi‐national groups in economic activities in India has given rise to new and complex issues emerging from transactions entered into between two or more enterprises belonging to the same group. Hence, their was a need to introduce a uniform and internationally accepted mechanism of determining reasonable, fair and equitable profits and tax in India in the case of such multinational enterprises. Accordingly, the Finance Act, 2001 introduced law of transfer pricing in India through sections 92A to
Introduction Every person who is engaged in any profession (business or service) is liable to pay a profession tax of Rs. 2,500/- p.a. with the government every year. The self-employed persons are liable to pay profession tax for themselves and the for salaried employees (whose salary is above Rs. 7,500 p.m.) the onus is on their employer to deduct the profession tax for such employee and deposit the same with the government. Profession Tax Registration Certificate (PT-RC) is to allow the employer
Introduction: An Indian Company has been permitted make investment in overseas Joint Ventures (JV)/ Wholly Owned Subsidiaries (WOS) under approval or automatic route as may be applicable. Investment limit under Automatic route: The total financial contribution of an Indian Party shall not exceed 400% of the net worth as per the last audited balance sheet however the total financial contribution in any financial year shall not exceed USD 1 billion. If the total financial contribution exceeds the above threshold limit prior approval of RBI
Cases when ITC is not available under GST We have examined some cases where Input Tax Credit ( ITC) is not available Motor vehicles & conveyances ITC is not available for motor vehicles and conveyances. For example, XYZ & Co. buys a car for their business. They cannot claim ITC on the same. Exceptions to ITC on motor vehicles ITC will be available when the vehicle is used for the following. a) Supply of other vehicles or conveyances :If you are in the business of
Introduction: Every business requires capital for starting a business. For starting a large scale organization there is a need for huge amounts of capital. For raising a capital company uses various sources of funds like share capital by issuing shares to public, debt capital by issuing debentures, term loans from banks, etc. Out of all sources of funds, companies prefer shares and debentures more. People who are interested in investing in shares and debentures are increasing every day showing a rapid growth
Incorporation of Foreign Subsidiaries/Joint Ventures: India is currently one of the fastest growing economies of the world. Over the past year, the government has liberalised FDI norms for several sectors making India the most open economy in the world for FDI. However there are some complex tax and laws structure which demands for high quality assistance in the formation process from the perspectives of Company Law, Foreign Exchange Laws and other Laws. An overseas Company planning to set up business
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