Payments for Software not Taxable as Royalty

he Hon'ble Supreme Court  in the case of Engineering Analysis Centre of Excellence Private Limited v.

Tax Audit Applicability for Financial Year (FY) 2019-20 (Assessment Year 2020-21)

Tax Audit Applicability - To reduce the burden on small and medium enterprises, Finance Act 2020 brought a major amendments related to the applicability of Tax Audit for the Financial Year 2019-2020

Applicability of Internal Financial Controls For Private Limited Companies

Threshold Limit for Applicability of Internal Financial Controls (IFC):   Internal Financial controls (IFC) are defined within the explanation to Section 134(5)(e) of the Companies Act 2013 as the policies and procedures adopted by the ...

Budget Expectation 2021

As the Covid -19 is now under control, all eyes are now set on the upcoming Budget. Covid has hit everyone’s life and the government did announce various stimulus packages to give relief to the citizens and to boost the economy. However, there is an immediate need to ...

New developments through introduction of Equalisation Levy Rules and LTC Cash Voucher Scheme

Introduction  When the world was introduced with the phenomenon of virtual reality, no one actually thought that 'virtual' will become such a reality! Technology is all pervasive in the way we shop, consume, entertain, ...

CBDT notifies the Equalisation Levy “EL” (Amendment) Rules, 2020 to give effect to EL 2.0 provisions

The Central Board of Direct Taxes have introduced new equalization levy rules w.e.f Oct 28, 2020. Some key aspects are as follows:

MCA Update: Relaxation for Minimum Residency Period-FY 2020-21 u/s 149 of Companies Act, 2013

Ministry of Corporate Affairs #MCAA) vide its General Circular No. 36/2020 dated 20th October, 2020 has clarified that non-compliance of minimum #residency in India for a period of at least 182 days in a year, by atleast one Director in every Company under Section 149 of ...

Tax collection at source on sale of goods w.e.f Oct 1, 2020

The Finance Act, 2020 has made an amendment by insertion of sub-section (1H) in section 206C of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) which is effective from 01.10.2020. As a result of the said amendment, a seller who receives any amount ...

The Companies (Amendment) Act 2020: Updates

The Companies (Amendment) Bill, 2020 was introduced by the Government in the Parliament on 17th March 2020, and was passed by Lok Sabha on 19th September, 2020 and Rajya Sabha on 22nd September, 2020 which has changed certain amendments in the Companies Act 2013, primarily ...

Foreign Contribution (Regulation) Amendment (FCRA) Bill 2020

The Government has introduced the Foreign Contribution (Regulation) Amendment (FCRA) Bill 2020 in the Lok Sabha on September 21, 2020 with twin objective to make the FCRA law more stringent and to streamline the provision of FCRA by strengthening the compliance mechanism, ...

POSH Compliance Mandatory Requirement in India to Prevent Sexual Harassment of Women at Workplace

In order to protect the sexual harassment of Women at workplace and the right to work with dignity, the Government of India came up with “THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL (“POSH”) ACT, 2013, which mandated ...

Interest on Delayed GST Payment on Net Cash Liability

Under GST laws, interest was levied on delayed GST payment on gross liability (tax liability paid by cash and input tax credit). Due to the ongoing interest recoveries by GST department for the delayed payments, it was argued that interest must not be levied on the delayed ...

GST Registration after Authentication of Aadhar Number or Physical Verification of Place of Business

Notification No. 62/2020 – Central Tax dated 20th August 2020

Are You Intending to Incorporate Company in India? Quick Lookouts!

Important GST Updates, June 2020

1. Circular No. 140/10/2020 – GST dated June 10, 2020 issued clarification on levy of GST on director’s remuneration to put the controversy to rest. It has been clarified that payment made to Independent directors will attract GST levy and payment to director ...

New Restriction on FDI where Chinese Companies or Chinese National are Beneficial Owners

(Having impact on all the foreign investments coming into India)   The Government of India (‘GOI’) had released a Press Note dated April 17, 2020 read with the Foreign Exchange Management (‘Non-debt Instruments’) ...

Key Measures Announced Regarding Companies Act and Insolvency & Bankruptcy Code

The Government of India had already introduced Companies (Amendment) Bill, 2020 to liberalize and decriminalize the strict provisions under the Companies Act, 2013. The said bill was presented with the intent to provide ease of working by taking away number of penal ...

Now Start up Companies may Issue Sweat Equity not Exceeding 50% of its Share Capital

The Ministry of Corporate Affairs has brought amendments in the Companies (Share Capital and Debentures) Rules, 2014 as mentioned below:

Suspension of Initiation of Corporate Insolvency Resolution Process During Lockdown

Equalization Levy Note

Globalization and expansion of Information Technology has increased the supply and procurement of digital services which had laid a significant impact on a country’s corporate income tax regimes. Profit base gets effectively eroded from the country of consumption due ...

Delhi High Court ruling allows taxpayers to avail transitional credit upto June 30, 2020

Recently in the matter of Brand Equity Treaties Ltd. Vs. Union of India {[2020] 116 taxmann.com 415 (Del)}, the Hon’ble Delhi High Court (“HC”) held that rule 117 of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) prescribes ...

CBDT exempts B2B businesses from requirement of mandatory e-payment facility u/s. 269SU subject to c

To promote digital transactions in the economy, Government of India introduced section 269SU of the Income-tax Act. Under this section, a person having turnover exceeding Rs. 50 Crore (‘specified person’) in the immediately preceding previous year shall provide ...

Holding Annual General Meeting Through Video Conferencing or Other Audio Visual Means

Till this enforcement of this notification, Companies with financial year ending on 31st December, 2019 were allowed to hold their Annual General Meeting (“AGM”) on by 30th September, 2020. Further, certain relaxations have been provided by the Ministry to ...

Review of Foreign Direct Investment (FDI) Policy Due to Current COVID-19 Pandemic

The Government of India (GOI) released a Press Note dated 17/04/2020 revising the existing FDI policy for Eligible Investors (Para 3.1.1 of extant FDI policy as contained in Consolidated FDI Policy, 2017) as:

Taxability on Remuneration Paid to Directors Under GST

Recently in the matter of Clay Crafts India Private Limited [TS–218–AAR–2020–NT], the Rajasthan Authority for Advance Ruling (“AAR”) stated that consideration paid to directors is against the supply of services provided by them to the ...

Taxability on Remuneration Paid to Directors Under GST

Taxability on Remuneration Paid to Directors Under GSTRecently in the matter of Clay Crafts India Private Limited [TS–218–AAR–2020–NT], the Rajasthan Authority for Advance Ruling (“AAR”) stated that consideration paid to directors is ...

One Time Relaxation to Employers, Taxpayers and Business Entities

The outbreak of the Novel Corona Virus (COVID-19) across many countries of the world including India has caused immense economic and business loss. Amid this difficult situation, the Government has announced below one time relaxations for Employers, Taxpayers and Business ...

MCA Allows Holding Of EGMs In Companies Through VC Or OAVM Facility

Please be informed that the Ministry of Corporate Affairs has allowed the companies to hold their Extraordinary General Meetings (EGMs) through Video Conference (VC) or Other Audio Visual Means (OAVM) along with e-Voting facility/simplified voting through registered emails, ...

MCA Update for DIN Activation and Active Filing

Big Opportunity by the Ministry of Corporate Affairs to the Directors and Companies to remove their status as Deactivated/ non-compliant.

Companies Fresh Start Scheme, 2020 (CFSS-2020)

In the wake of COVID 19, the Ministry of Corporate Affairs, has introduced the “Companies Fresh Start Scheme, 2020 (CFSS-2020)” and revised the “LLP Settlement Scheme, 2020” which is already in vogue to provide a ...

Updates of 39th GST Council Meeting Decisions

GST council in its 39th meeting held on 14th March 2020 recommended extension of due dates of filing GSTR 9 and 9C (GST Annual return and Audit report), extended implementation date of E-invoicing and GST Simplified new returns, recommended changes of GST rates of certain ...

MCA Update: LLP settlement Scheme, 2020

MCA has introduced LLP Settlement Scheme, 2020. Through the Scheme, One-Time relaxation in additional fees has been provided to the defaulting LLPs to make their default good by filing pending documents with the ROC and to serve as a compliant LLP in future.

POST-INCORPORATION REQUIREMENTS: COMMENCEMENT OF BUSINESS (COB)

Upon incorporation of an Indian Company and Opening of its Bank Account, a Declaration is required to be filed by the Directors in prescribed e-form within 180 days from date of Incorporation of Company with the ROC along with a proof that every subscriber to the Memorandum ...

Amendments to Vivad Se Vishwas Scheme

The Indian Finance Minister announced the introduction of the Vivad Se Vishwas scheme during her budget speech with a view to “provide for resolution of pending tax disputes”.  The scheme was introduced after the success of “Sabka Vishwas ...

Governmeent eases Winding Up of Indian Companies.

The Ministry of Corporate Affairs has notified rules for winding up and provide an option to the small companies to shut their companies without going to the National Company Law Tribunals (NCLTs). The Companies (Winding Up) Rules, 2020, signed off on 24th ...

New Process of Incorporation of Entity in India

Stakeholders may kindly note that the Ministry of Corporate Affairs has updated the process of incorporating Companies in India to encourage Ease of Doing Business (EODB) initiative. The new web Form ‘SPICe+’ for incorporating Indian Companies shall be deployed ...

Analysis of proposed amendments vide the Finance Bill, 2020 under Customs

The Finance Bill, 2020 was introduced on 1st February, 2020. A number of amendments were proposed in The Costumes Act, 1962. A summary of these amendments and the impact thereof has been discussed herein.

Analysis of proposed amendments vide the Finance Bill, 2020 under Goods and Services Tax

The Finance Bill, 2020 was presented on 1st February, 2020. A number of amendments were proposed in The Goods and Services Tax Act, 2017 and The Customs Act, 1962 respectively. A summary of these amendments and the impact thereof has been discussed herein.

Insertion of rule 119A, prescribing Electronic modes of accepting payments u/s 269SU

To encourage digital economy and move towards a less-cash economy, Section 269SU was introduced in Finance (No. 2) Act, 2019, whereby every person carrying on business, having a turnover of more than Rs.50 Cr. [‘specified person’] shall mandatorily provide ...

Tax & Regulatory Updates: January 2020

Section 195 of the Income-tax Act had been amended to empower CBDT to prescribe the form and manner of filing of application to Assessing officer to determine the appropriate proportion of such sum upon which tax shall be liable to be deducted u/s 195. Further, CBDT was also ...

Restriction in the availment of the Input Tax Credit (“ITC”) in terms of Rule 36(4) of the CGST Rule

With a view to ensure timely filing of return “GSTR 1” by the taxpayers, the Central Government has introduced a new Rule 36(4) which provides restriction in the availment of ITC with respect to the invoices or debit notes which have not been uploaded by the ...

Recent Updates Under GST

CBIC has issued certain notifications issued on 9th October, 2019 and various circulars on 3rd October and 11th October, 2019, inter alia, to facilitate filing of GST returns for the next six months, amendment in some of the ...

Tax & Regulatory Updates: October- 2019

Exception to monetary limits for filing appeals specified in any Circular issued under Section 268A of the Income-tax Act, 1961-reg In Circular No. 23/2019 dated 6th September 2019, CBDT has clarified regarding bogus Long-Term Capital Gain (LTCG)/Short Term ...

Clarification on Availability of MAT Credit for Companies Opting for Lower Corporate Tax Rate

CBDT has provided clarification dated 2nd October, 2019 for the domestic companies regarding the decision to switch to the lower rate of 22% from the existing rate of 30%. Board has addressed the concerns in respect of option exercised under section 115BAA of the ...

Tax & Regulatory Updates: September- 2019

In Circular No. 19/2019 dated 14th August 2019, CBDT has clarified regarding no communication shall be issued by any income tax authority relating to assessment, appeals, orders, statutory, exemptions, enquiry, investigation, verification of information, penalty, ...

E-assessment Scheme

Major Tax Reforms in India announced on 20th Sept, 2019

Indian Government has come up with the Taxation Laws (Amendment) Ordinance 2019 to amend the Indian corporate tax rate and provide other major relief for certain companies on 20th September 2019.

Procedure for identification and processing of cases for prosecution under Direct Tax Laws

CBDT has come up with certain initiatives to make the regime more tax friendly and to ensure that the rigorous measures should be used in certain limited cases. One such measure is extension of compounding procedures and other is restriction on initiating prosecution ...

Measures By CBDT For Tax Friendly Regime

CBDT has come up with certain initiatives to make the regime more tax friendly and to ensure that the rigorous measures should be used in certain limited cases. One such measure is extension of compounding procedures and other is restriction on initiating prosecution ...

Tax & Regulatory Updates: August -2019

In Circular No. 14 /2019 CBDT has clarified regarding taxability of income from investment made by the non –resident investor through these AIFs , outside India (off-shore investment).The Board is of the view that the investment made by category I or category II AIFs ...

Cabinet approves proposal for Review of Foreign Direct Investment ('FDI') policy on various sectors

On August 28th 2019, the Union Cabinet chaired by the Prime Minister Shri. Narendra Modi approved proposal for review of the current Foreign Direct Investment (“FDI”) policy on various sectors. In respect of the above, the proposed changes in the FDI policy are ...

Tax & Regulatory Updates: July 2019

In Circular No. 13/2019 , CBDT has clarified that pensions granted to members of His Majesty 's naval, military or air forces who have been invalided for naval, military or air force service on account of bodily disability attributable to or aggravated by such service ...

Tax & Regulatory Updates: June 2019

In this notification CBDT seeks to amend form 15H (To prevent TDS on your Income). This amendment seeks to clarify the filling procedure of Form 15H. Person shall accept declaration in case where his income is less than rebate available under 87A of income tax act. This ...

Updates For 35th G.S.T. Council Meeting

The GST council held its 35th meeting on 21st June 2019 and made certain decisions and recommendations relating to changes in law and procedure and tax rates on goods and services. It also involved consideration of simplified new GST Returns ...

Tax & Regulatory Updates: May 2019

In this notification, CBDT seeks to amend Form 16 (TDS certificate for salaries) and Form 24Q (quarterly TDS statement in respect of salaries). The amended forms seek more details especially about exempt allowance u/s 10. The amendments shall come into force on 12th day of ...

Updates for GST Council 32nd meeting

In the 32nd GST Council meeting, held on January 10, 2019, the council proposed various relief for MSME sector and other decisions all of which would be effective from the April 1, 2019. Key takeaways of 32st GST Council meeting are as follows:

New Compliance Of MCA Applicable On Indian Companies To Be Followed From 2019

This is to inform you that the Ministry of Corporate Affairs has come up with various new compliance applicable on the Indian Companies to be followed from 2019. Accordingly, we have prepared a chart including all the deadlines (One-time or Annually) along with the necessary ...

Active Company Tagging Compliance By MCA To Be Followed By Companies Formed Before 31st Dec 2017

There has been a very important update from the Ministry of Corporate Affairs vide new Companies (Incorporation) Amendment Rules 2019 dated 21st February, 2019: Pursuant to which, every company incorporated on or before the 31st December, 2017 shall file the particulars of ...

GST Updates - 31st Meeting

The 31st meeting of Goods and Service Tax (‘GST’) Council took place at New Delhi on Saturday, 22nd December 2018. The Council while announcing several reliefs and measures for the taxpayers has slashed the GST rates on various ...

Beneficial Ownership

The Ministry of Corporate Affairs has notified the new Section 90 of the Companies Act, 2013 and Companies (Significant Beneficial Owner) Rules, 2018.

GST Audits

GST Updates - 27th Meeting

The 27th meeting of Goods and Service Tax(‘GST’) Council took place at New Delhi on Friday, 04th May, 2018. The GST Council has recommended significant measures in order to attenuate the concerns of the taxpayers pertaining to ...

Implementation Update on E-Way Bill

CBIC has notified 1st April 2018 for implementation of e-way bills mandatory for inter-state movement of goods throughout India vide Notification no 15/2018 Central Tax on 23rd March 2018.

Updates for GST Council 23rd Meeting

The 23rd meeting of Goods and Service Tax (‘GST’) Council took place at Guwahati on Friday, 10th November 2017. The GST Council in order to alleviate the concerns of the taxpayers pertaining to return filing glitches and higher tax ...

How can a foreign entity/investor open a company in India?

A step by step guide to open a company in India. The process discusses the nuances for applying DIN, DSC, Name & filing various registration documents.

Starting Operations in India

India has become the fastest growing country in the world. With the new economic reforms with respect to ease of doing business, India is now considered as the most attractive country for business expansion. There are various options for MNC’s to route their Foreign ...

Tax & Regulatory Updates: October 2016

The CBDT has issued a notification clarifying special provision regarding the determination of the cost of acquisition of shares received in different cases which are subject matter of buy-back. Such as shares received through employee stock option or sweat equity shares, ...

New guidelines regarding establishment of Liaison Office (LO), Project Office(PO) and Branch Office

India is one of the fastest growing economy in the world. The government is making all the efforts to make it one of the best places for doing business. The latest RBI guidelines regarding establishment of Liaison Office, Branch Office, Project Office have been issued with ...

Due date for filing tax returns for Businesses extended from 30th September to 17th October

Due Date for filing income tax returns for businesses that are required to get their accounts audited under the Income Tax is 30th September.  CBDT has extended the due date of return filing (FY 15-16) from 30th September to 17th October for businesses ...