"12 April 2020" Archive

Annual Company Law Compliance Calendar for Producer Companies

Article Annual Company Law Compliance Calendar for Producer Companies under Companies Act, 2013 in Tabular Form stating Form or Return required to be filed, Section/Rules under which the same need to be filed and nature of Compliance. Article further explains Meaning of Producer Company, Allowed Activities for Producer Companies and Impor...

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Posted Under: Company Law |

Process for Incorporation of Foreign Subsidiary / Wholly Owned Subsidiary

In this Editorial the author shall deliberate the Provisions of Companies Act, 2013 in respect of Incorporation of Subsidiary of a Company Incorporated Outside India or Wholly Owned Subsidiary (WOS) of a Company incorporated outside India....

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Posted Under: Company Law |

Annual Company Law compliance calendar for One Person Companies

Article explains Mandatory Annual Compliance for One Person Company under (OPC) Companies Act, 2013 in Tabular format stating Form or Return required to be filed, Section/Rules under which the same need to be filed and nature of Compliance. Meaning of One Person Company: This is the fundamental concept of a One Person Company. In fact, [&...

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Posted Under: Company Law |

Compliance for Establishment of Branch office of Foreign Company

BRANCH office is setup by a foreign company in India to carry out the BRANCH activity for its business. The foreign company can have any revenue from the Indian Branch office only from the activity allowed by the Reserve Bank of India; ...

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Posted Under: Company Law |

Incorporation of One Person Company under Companies Act, 2013

With the development of the practice, there will be more and more exception phenomena which can not be explained by the original thoughts or theories. Once these exceptions developed to such an extent that waved peoples confidence in the former thoughts or theories, crisis will happen, and scientific revolution begins. - Thomas S. Kuhn...

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Posted Under: Company Law |

Difference between Right issue, Private Placement & Preferential Allotment

In this article Author explains Difference Between Right issue, Private Placement and  Preferential Allotment under Companies Act, 2013 read with Companies (share Capital and debentures) Rules, 2014 and Companies (Prospectus and allotment of securities) Rules, 2014. Chart of Difference Between Right issue Private Placement Preferential A...

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Posted Under: Company Law |

Process for Conversion of Company into One Person Company

This brief write up an attempt has been made to unlock the technicalities related to Conversion of Private Company into One Person Company prescribed under Companies Act, 2013. I believe that the procedure for Conversion of Private Limited Company into One Person Company through this article would be of some help for you all....

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Posted Under: Company Law |

Advantages and Disadvantages of One Person Company

Till 31st March, 2014, if you wanted to set up a private company, you needed at least one other person because the law mandated a minimum of two shareholders. So, for the person wanting to venture alone, the only option was proprietorship, an onerous task since it is not legally recognized as a separate entity. ...

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Posted Under: Company Law |

Analysis of Sections applicable to One Person Company (OPC)

Article Analyses following Section applicable to One Person Company (OPC) under Companies Act, 2013–  -Definition of One Person Company (Sec.2(62)) -Definition of Financial Statement (Sec.2(40)) -Formation of One Person Company (Sec.3) -Memorandum (Sec. 4(1)(f)) -Registered Office of One Person Company (Sec.12(3) Proviso) -Annual R...

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Posted Under: Company Law |

Annual Company Law Compliance Calendar for Section 8 Company

In this article author explains Meaning of Section 8 Company, Important Features of Section 8 Companies, Mandatory Annual Compliance for Section 8 Companies. In addition to mandatory compliances mentioned in the Article there may be event-based compliances for the Section 8 Company. Meaning of Section 8 Company: Under sub-section (1) of t...

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Posted Under: Company Law |

10 Practices For A Healthy Cash Flow In Your Business

Cash flow is the nervous system of your business. It registers the inflows and the outflows of cash.  It helps you evaluate business better by cutting down costs. And so if it is up and running without any glitch no harm can befall your business. But what are the ways to keep this nervous system […]...

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Posted Under: Company Law |

How My Client Reduce His Receivable Problem Considerably?

I decided to post about this case study because it is sure to help young entrepreneurs out there. From helping the business owners in setting up the company, to setting up the SOP and managing their accounts, my firm has been doing everything possible that will help my clients excel in their business. So, when […]...

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Posted Under: Company Law |

Restoring economy post pandemic

Pandemic economies are different from normal economies. The coronavirus pandemic like any other fatal ones as before has caused enough damage to our economy. It has affected almost 185 countries. It has posed severe challenges to the international market networks as well as mobility of domestic resources. It has also created a huge delimm...

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Posted Under: Company Law |

List of Compliances For LLP

An LLP or Limited Liability Partnership is a company formed on partnerships wherein all the partners have limited liabilities. In this agreement, one partner cannot be held responsible for the mistakes of another. In other words, all the partners have a set jurisdiction. There are certain rules laid down by the Ministry of corporate affai...

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Posted Under: Company Law |

List of Compliances of Private Limited Company

Once your business is incorporated as Private Limited Company, the company ought to follow various compliances laid down to the government of India. Your company may mint millions or nothing at all but to run your day to day operations, you have to follow the corporate laws that are set for the Private limited company. […]...

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Posted Under: Company Law |

जी एस टी में एडवांस रूलिंग एक नज़र

जीएसटी में एडवांस रूलिंग के लिए आवेदन कोई आवेदक यदि एडवांस रूलिंग के अंतर्गत निम्न प्रश्नों का समाधान चाहता है तो वह FORM GST ARA-01 तथा पा...

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Posted Under: Company Law |

GST on Health Care Services

Health care services become important in country like India where most of its population lies below the poverty line. With these things keeping in mind the tax authorities have done all the best possible that they can do to make this service outside the ambit of GST & thus affordable to weaker sections of the […]...

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Posted Under: Company Law |

Tax Deducted at Source (TDS) under Income Tax- An Overview

What is TDS? As per the Income Tax Act, 1961, any company or person making a payment is required to deduct tax at source if the payment exceeds prescribed threshold limits. TDS has to be deducted at the rates prescribed by the tax department. The company or person that makes the payment after deducting TDS […]...

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Posted Under: Company Law |

Economic Impact of Coronavirus ( Global and Indian Economy)

Coronavirus outbreak was first reported in Wuhan, China on 31 December, 2019. Before reading in detail about the impact, first, let us study about coronavirus. Coronavirus (CoV) is a large family of viruses that causes illness. It ranges from the common cold to more severe diseases like Middle East Respiratory Syndrome (MERS-CoV) and Seve...

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Posted Under: Company Law |

Whether Acknowledgment of Debt extends Limitation Period under IBC

Thus in cases of Section 18 of Limitation Act, liberal approach must be taken while considering the acknowledgment and no hard and fast rule can be applied to ascertain whether statement is acknowledgement or not, it solely depends on the circumstances under which it is made. ...

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Posted Under: Company Law |

COVID-19 Impact on Financial Reporting under IND AS

Brief of IND AS Areas to be considered (A questionnaire for management) Due to Covid-19 while preparing Financial Statement for FY 2019-20 Areas Covered: 1. Inventory Measurement 2. Impairment of Non-Financial Assets 3. Provisions, Contingent Liabilities and Contingent Assets 4. Going Concern Assessment 5. Property, Plant and Equipment 6....

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Posted Under: Company Law |

Consequences of Non-Compliance or Delay In ITR filing Compliance

We enjoy financial freedom in our country and against that the government asks us to be a responsible citizen and abide by the law by performing our duties on time. Filing returns is an important duty which all of us have to comply with. But most of the time, either we are unaware about the […]...

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Posted Under: Company Law |

ITC on sanitizers & masks distributed to employees amid COVID-19

Corona-Virus: ITC won’t be available on the masks and sanitizers distributed to employees? Hello folks, I hope you are in good spirits and are helping the nation in fighting the invisible demon of COVID-19 by staying at home. This COVID-19 has compelled us to live in a phase that was neither wished, nor imagined by […]...

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Posted Under: Company Law |

Gist of amendments in GST Via Notifications dated 03rd April 2020

Gist of amendments in GST Via Notifications dated 03rd April 2020: 1. Notification number 30/2020- Central tax dated 03rd April 2020 Allow opting for Composition Scheme via portal for FY 2020-21 till 30th June 2020 and to allow cumulative application of condition in rule 36(4). 2. Notification number 31 & 32/2020– Central tax da...

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Posted Under: Company Law |

Convertible Instrument which is not a compounded financial instrument

It is very intuitive to consider all the convertible instrument as a compound financial instrument which contains both a liability and an equity component. However, in this article we will cover the convertible instruments which has equity conversion option,but do not meet the criteria of a compounded financial instrument and it’s accou...

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Posted Under: Company Law |

Section 271AAD Penalty for false entry in books of account

Penalty for false entry, etc., in books of account. Recently, Finance Act, 2020 introduced penalty provision to curb malpractices of issuing fake invoice. As categorically explained by memorandum to Finance Bill, 2020 that after introduction of GST, several cases are found by GST authority where supplier are fraudulently claiming ITC on t...

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Posted Under: Company Law |

जानिए आर्थिक आपातकाल क्या है ???

कोरोना की वजह से आने वाले वित्तीय संकट से निपटने के लिए केंद्र सरकार एक वित्तीय आपातकाल की घोषणा करने की संभावना है, लेकिन अभी तक ऐ...

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Posted Under: Company Law |

Test of Human Probabilities & surrounding circumstances in Income Tax

Theory of the Test of Human Probabilities and surrounding circumstances and its applicability to the provisions of Income Tax Act 1961 The purpose of this article is to provide a focus on various decisions and judgments of Tribunals and Courts on the issue of Theory of the Test of Human Probabilities and sorrounding circumstances and [&he...

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Posted Under: Company Law |

GST: Taxation of Services Provided by Directors to Companies

The issue relating to leviability of tax on remuneration paid to directors has been a matter of debate very since August 07, 2012 when reverse charge mechanism (‘RCM’) in respect of services provided by directors was first introduced under Service Tax laws vide Notification No. 45/2012-ST dated August 07, 2012. RCM provisions were als...

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Posted Under: Company Law |

Clarification on Spending of CSR Fund For COVID-19

Demystification of CSR Related Issues – Clarification On Spending Of Corporate Social Responsibility (CSR) Fund For COVID-19  Ministry of Corporate Affairs vide its general circular no. 10/2020 dated March 23, 2020 clarified that in view of the spread of Novel Corona Virus (COVID 19) in India and Government of India’s decision to...

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Posted Under: Company Law |

Relaxation in SVLDRS Module- Due to emerging pandemic COVID-19

As we all are aware that, SVLDRS was introduced with the twin objectives- First,  finalize the legacy disputes in Central Excise and Service Tax that are pending at various forum and second, encouraging non-compliant taxpayer/tax evaders to declare the tax not paid so far and come under the tax net voluntarily. The scheme has received [&...

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Posted Under: Company Law |

Share Warrant & ESOP- Procedure of Issue & Taxation

Article explains what is Share Warrant and what is ESOP. It further explains to who Share Warrant and ESOP can be issued, Procedure for issue of Share Warrant and ESOP and Taxation of Share Warrant and ESOP. Share Warrant: What is Share Warrant? -Share warrant is an option issued by the company that gives the […]...

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Posted Under: Company Law |

Impact of Mergers of Mega Banks

With 27 public sector banks, including the second largest PNB, being merged and reduced to 12, almost every other individual who has a savings account or fixed deposit with a public sector bank is likely to be impacted. The finance minister in a press conference held in August, 2019 said that the 27 public sector […]...

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Posted Under: Company Law |

Path to Financial Stability Post Lockdown

We often come across a situation where we are asked to leave our comfort zone and we are hesitant about it . We prefer to live in a protected shell of  our comfort zone , but its time to break our shell and emerge stronger and survive longer . The lockdown itself is something out […]...

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Posted Under: Company Law |

NBFC- Types, Documents Required and Compliance

A Non-Banking Financial Companies (NBFCs) are financial institutions incorporated under the companies act 2013, meant for ensuring services ranging from loans to advances, acquisition of shares/stocks/bonds/debentures/securities, which are issued by Government or local authority or other marketable securities of similar nature involved ...

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Posted Under: Company Law |

Actionable Claim [Section 2(1) of the CGST Act, 2017]

How is actionable claim defined under the GST Act? Reference has been drawn to the Transfer of Property Act, 1882. Section 2(1) of the CGST Act, 2017 defines actionable claim as: ‘actionable claim shall have the same meaning as assigned to it in section 3 of the Transfer of Property Act, 1882’ Section 3 of […]...

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Posted Under: Company Law |

Benefit for all Defaulting/ Inactive companies- CFSS-2020

Circular no 12/2020 (30//0/3/20)

Benefit for all Defaulting/ Inactive companies- CFSS-2020 (Validity: 01 April, 2020 to 30 Sept, 2020) MCA vide circular no 12/2020 dated 30.03.2020 has introduced benefits for Defaulting Companies to file their belated documents in the MCA registry without late / additional fee. inactive Companies to get declared itself as ” Dormant...

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Posted Under: Company Law |

Digital Economy – Need of the Hour

Due to COVID -19 all World is in locked down situation. It forces everyone to make use of digital techniques and tools as much as possible. Just think for a minute, if we didn’t had such advanced digital techniques and tools where we would stand. Currently maximum people are working from home except emergency staff. […]...

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Posted Under: Company Law |

Bank guarantee is equivalent to tax payment for Section 129(1)

Skipper Limited Vs Union of India (Allahabad High Court)

Skipper Limited Vs Union of India (Allahabad High Court) The provision shows that upon seizure of goods and conveyances in transit, the Revenue shall issue a notice specifying the tax and penalty liable to be paid by the assessee and pass an order for payment and tax and penalty in the manner provided under Clause […]...

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No Regular bail under GST to accused in bogus bill case

Vikas Goel Vs Deputy Director, Directorate General of Goods and Service Tax Intelligence (Punjab and Haryana HC)

Vikas Goel Vs Deputy Director, Directorate General of Goods and Service Tax Intelligence (Punjab and Haryana HC) Petitioner has filed this second petition under Section 439 of the Code of Criminal Procedure, 1973 for grant of regular bail in a complaint case bearing No.COMA-137 dated 13.11.2018, titled as ‘Shankar Prasad Sarma Versu...

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Non speaking orders are non est and not sustainable

Shyam Textiles Limited Vs Commissioner of Commercial Taxes (Madras High Court)

Shyam Textiles Limited Vs Commissioner of Commercial Taxes (Madras High Court) In the given case the crux of the problem lies in the order passed by the learned Commissioner under Section 28A of the Act, which is as brief and non speaking as it could be. The learned Commissioner, while exercising the powers under Section […]...

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Recovery of Redemption fine from Sale Proceeds- CESTAT refers matter to Larger Bench

Commissioner of Customs Vs Oriental Trimex Ltd. (CESTAT Delhi)

Commissioner of Customs Vs Oriental Trimex Ltd. (CESTAT Delhi) If the confiscated goods allowed to redeemed on a redemption fine then the sale proceeds will be paid only after deduction of such fine In the given case the importer appellant is engaged in the business of import of marble from various countries into India and […]...

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Eligibility of input tax credit of expenses related to covid-19

Now question arises whether credit of input tax paid on expenses made to avoid spread of COVID-19 disease would be eligible or not and whether if the taxpayer is an exporter or supplier to SEZ unit, whether he will be eligible for refund under GST Act or not....

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Posted Under: Company Law |

Procedure for Alterations of Articles of Association

Step-1 – Convene and hold a Board meeting -Notice shall be given at least 7 days before the meeting -Required Resolutions must be passed at the Board Meeting. -To Fix time, date and venue for holding a general meeting of the company for passing a special resolution. -Approve notice, agenda and explanatory statement to be […]...

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Posted Under: Company Law |

Customs Duty & Health Cess exemption for Medical Equipment & Materials

While the governments across the globe are battling the novel Coronavirus, the Ministry of Finance in its recent Notification No. 20/2020– Customs dated 9th April, 2020 has lifted (i) customs duty; and (ii) whole of health cess charged on the following below-mentioned articles until 30th September 2020: Sr. No. Description of Goods Chap...

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Posted Under: Company Law |

Taxation of interest income for Non Residents a general discussion

Taxation of Periodic Interest income earned from investments in bonds and Debentures :- When Investments is made in Listed /Unlisted Securities being Bonds and Debentures in a currency other than Indian Currency by the Non Residents. FAQs on above – 1) What is the treatment of interest income earned on bonds and Debentures subscribe...

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Posted Under: Company Law |

Independent Director under Companies Act 2013 and Rules

WHO IS AN INDEPENDENT DIRECTOR? Independent Director is Director other than a managing director or a Whole time Director or a nominee Director who fulfils all criteria as given in Section 149(6) along with Rule 4 and Rule 5 of the Companies (Appointment and Qualification of Directors) Rules, 2014. In general sense, an independent director...

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Posted Under: Company Law |

Applicability of GST upon cancellation of flats

Tax/GST treatment to be given in case of cancelled flats GST compliance for real estate has always been a nightmare considering the day to day changes in the rates, tax structure, GST returns to be filed so an and so forth. Assessee to be tax compliant has to look for ways and means to make […]...

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Posted Under: Company Law |

COVID-19- Resolutions by companies under Companies Act 2013

Clarification on passing of ordinary and special resolutions by companies under Companies Act,2013 and rules made thereunder on account of the threat posed by COVID-19 > Circular –Clarification on passing of ordinary and special resolutions by companies under the Companies Act,2013 and rules made thereunder on account of the threat p...

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Posted Under: Company Law |

Tribunal is duty bound to consider application seeking leave to produce additional evidence at appellate stage

Braganza Construction (P.) Ltd. Vs ACIT (Bombay High Court)

Braganza Construction (P.) Ltd. Vs ACIT (Bombay High Court) The issue under consideration is that Whether on the facts and in the circumstances of the case the ITAT was justified in holding that the said amount of Rs.80 lakhs is deemed to be unexplained expenditure under proviso, to section 69C, of the IT Act, without […]...

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Beauty & Make-Up Preparations- GST Classification can turn Ugly

Classification of Goods as per Notification - That the Central Government in exercise of its powers under Section 9 of the CGST Act has issued Notification No.1/2017-CT(Rate) dated 28th June, 2017, which has been amended from time to time. The said notification has prescribed the rate of tax (Schedules) for specified goods under CGST/IGST...

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Posted Under: Company Law |

Confiscated good to be released on payment of GST & Penalty by assessee

JMK Solar Energies Pvt Ltd. Vs State of Gujarat (Gujarat High Court)

Pursuant to the notice issued under Section-129 of the Act determining the amount to be paid towards the tax and liability, the requisite amount has been paid by the writ-applicant and the conveyance and the goods have been released. It appears that later, a show-cause notice came to be issued under Section 130 of the Act calling upon the...

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Carry forward & set off of business losses subsequent to change in shareholding

Section 79 has no application in the absence of change in the beneficial voting power. Even after transfer of shares in the assessee company by its ultimate holding company to its another subsidiary, beneficial ownership of the assessee company continued to vest with the same holding company and therefore provisions of section 79 would no...

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Posted Under: Company Law |

9 Investment Rules To Be Kept in Mind

Investing should not be made complicated. Putting your hard-earned money to work is all about helping you get what you want while making sure you can sleep easily at night. There are handful of rules for investors to keep in their mind for successful investing. Below given is the list of the nine considerations that […]...

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Posted Under: Company Law |

Is GST payable under RCM on Director’s Remuneration or not?

Arjuna, the confusion of whether GST is payable under RCM on Director’s remuneration has raised due to the recent order passed by Authority of Advance Ruling (AAR) of Rajasthan in the case of Clay Craft India Pvt Ltd, & AAR of Karnataka in the case of Alcon Consulting Engineers (India) Pvt Ltd. These advance rulings state that remunerat...

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Posted Under: Company Law |

Regular bail with suitable conditions allowed in wrongful ITC availment case

Amit Chandrakant Shah Vs State of Gujarat (Gujarat High Court)

Amit Chandrakant Shah Vs State of Gujarat (Gujarat High Court) In the present case, the applicant is arrested on 6.12.2019 and almost 90 days are over. The applicant is facing charge under Section Sections 132(1)(b),(c),(f), (k), (1) of the Gujarat Goods and Service Tax Act, 2017 and and Central Goods and Services Act, 2017 read […...

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Can We Live Without Capitalism?

Being myopic about our current predicament is, for a lack of a better analogy, short-sighted! The entire world is busy reeling in from a catastrophe, people are being displaced in large numbers – at the same time, a vast majority is stuck within their houses, enjoying a semi-paid vacation, in absolute desolation. The world that [&hellip...

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Posted Under: Company Law |

GST Returns Due dates -Under FM Covid Relief Scheme 03/04/2020

GST Return Filing Dates extended by Finance Minister for providing relief to taxpayers in view of COVID-19 pandemic and challenges faced by taxpayers. These are notified in Notifications 30/2020 to 36/2020 dated 03.04.2020. Circular No. 136/06/2020-GST dated 3rd April, 2020 has been issued.  Article explain due dates in Pictorial Manner ...

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Posted Under: Company Law |

TDS under section 194C- Confusion to Solution

Deduction of TDS under section194C always remain a confusing section. It may be due to its drafting or similarity with other section like 194H, 194J etc. In this Article it is endeavour to remove confusion and provide solution in respect of applicability of 194C considering some day in day out transactions based on various Circular/Clarif...

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Posted Under: Company Law |

Joint development agreement – Taxation under Income Tax & GST

Joint Development Arrangement (JDA) has always been a bone of contention between the assessee and the tax department. The dispute lies is in measuring the correct amount of tax both under Direct and Indirect Taxes. Hence it has always been an area of litigation. But inspite of this fact, JDA is the most common and […]...

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Sectorial Insights – Food Industry in COVID-19 times

FOOD SUPPLIES 1. Whether the food supplies will be available during the period of complete lockdown? Answer: Yes, Ministry of Home Affairs vide order no 40-3/2020-DM-I(A) dated 26.03.2020 has issued directions in reference to the complete lockdown, that supplies of essential commodities such as food supplies, medicines etc. will continue ...

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Posted Under: Company Law |

Relaxations by SEBI amidst Covid-19- Part I

Relaxations/Exemptions by SEBI 1. Are there any extensions/relaxations provided by the Securities and Exchange Board of India (SEBI) in view of the pandemic COVID-19? Answer: In view of the pandemic COVID-19 and the 21 day lockdown in the country, SEBI has issued certain circulars wherein relaxations are provided in the regulations pertai...

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Posted Under: Company Law |

Execution and Stamping of Agreements during COVID-19

Agreements being the heart and soul of a business, they need to be enforceable documents. The enforceability of such documents are subject to the satisfaction of the provisions under the Indian Stamp Act,1899 read with the Registration Act, 1908....

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Posted Under: Company Law |

Incorporation of Section 8 Company under Company Law

The concept of Non-Profit making Company is quite old in India. In erstwhile, Companies Act, 1956 it was regulated by Section 25 and that is why it was popular as Section 25 Company. However in Companies Act 2013 provisions related to Non-Profit making Company are given in Section 8 read with Rule 19 and 20 of Companies (Incorporation) Ru...

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Posted Under: Company Law |

How to Check Your Booked Shop/Flat With Builder on Gujrera Website?

Let’s first get brief introduction about RERA. What is RERA & to whom it is applicable? RERA stands for Real Estate Regulatory Authority. The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which came into force on 1st May, 2016. Every Indian state has different Real Estate Regulatory Aut...

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Posted Under: Company Law |

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