CA Kamal Garg's Posts - Page 4

Provisions related to ‘Private Placement’ under Companies Act 2013

Tug of war between Private Placement and Preferential Offer: Section 42 of the Companies Act, 2013, read with Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 prescribe the procedure for private placement of securities to any persons through the issue of a private placement offer letter and subject to an overa...

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Posted Under: Company Law |

Deemed Dividend u/s 2(22)(e) of Income Tax Act, 1961- illustrative analysis

In terms of Section 2(22)(e) of the Income Tax Act, 1961, dividend" includes any payment by a company, not being a company in which the public are substantially interested, of any sum (whether as representing a part of the assets of the company or otherwise) made after the 31st day of May, 1987, by way of advance or loan:...

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Posted Under: Company Law |

Expenditure incurred in relation to income not includible in total income

As per section 14A, expenditure incurred in relation to any exempt income is not allowed as deduction. However, if the Assessing Officer is not satisfied with the correctness of the claim of the assessee in respect of expenditure in relation to exempt income, or the claim made by the assessee that no expenditure has been incurred in relat...

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Posted Under: Company Law |

IFRS 15 Revenue from Contracts with Customers Impact Analysis

The core principle of IFRS 15 is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration (payment) to which the entity expects to be entitled in exchange for those goods or services. To apply this principle, a five-step model framework as describe...

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Posted Under: Company Law |

Taxability of unlisted shares received by closely held company, firm or LLP for inadequate consideration

A careful reading of Section 56(2)(viia) lay down the following essential ingredients for the taxability of unlisted shares received by closely held company or firm or LLP as the case may be: (1). The shares (equity or preference) received, on or after 1-6-2010, are shares of a company in which the public is not substantially interested;...

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Posted Under: Company Law |

Disallowance of expenditure for non deduction of tax at source – Implications and Explanations

Disallowance of expenditure for deduction of tax at source but non payment of the same on or before the due date of filing of return of income: Sub-clause (i) of clause (a) of aforesaid section has been amended by the Finance (No. 2) Act, 2014 to provide that disallowance under the said sub-clause will be attracted,...

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Posted Under: Company Law |

Capital Gain Tax on Conversion of private company into LLP?

Clause (xiiib) of section 47 read with sub-section (4) of section 47A of the Income Tax Act, 1961, inserted by the Finance Act, 2010, with effect from assessment year 2011-12 provide that the transfer of a capital asset or intangible asset to LLP or any transfer of share or shares held in the company by a shareholder on conversion of a pr...

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Posted Under: Company Law |

Stamp Duty on conversion of a Private Company into LLP

Section 58(4) of the LLP Act, 2008, provides that notwithstanding anything contained in any other law for the time being in force, on and from the date of registration specified in the certificate of registration issued under the Third Schedule— (a) there shall be a limited liability partnership by the name specified in the certificate ...

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Posted Under: Company Law |

Dormant Company – Compliances under Companies Act, 2013 Act

(A). Dormant Company [Section 455]: (1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining th...

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Posted Under: Company Law |

Outstanding Sundry Creditors as on 1st April, 2014 – Whether deposits under Companies Act, 2013

In terms of section 2(31) of the Companies Act, 2013, deposit includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India. Therefore, all types of deposit of money or the amount borrowed by a co...

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Posted Under: Company Law |

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