KNM India
KNM group is providing Corporate advisory services and Management advisory services including a wide range of Transaction Advisory, Tax Advisory and Assurance services. It also provides Innovative Financial Solutions to national and multinational corporates.
Specified Financial Transaction - KNM India. Reporting of Specified Financial Transactions: Existing Scenario – Section 285BA of the Income-tax Act, 1961 (‘ITA’) read with Rule 114E of the Income-tax Rules, 1962 (‘ITR’) requires a ‘specified person’ to file a statement of high value financial transactions in respect of ‘Specified Financial Transactions’ or ‘SFT’ in Form 61A, undertaken during a particular financial year (Refer Annexure for details).– Currently, transactions pertaining to cash deposits / withdrawals, credit card payments, time deposits, investment in shares and buy back, subject to certain specified limits are required to be reported, as per the aforementioned rules. Notification for change in Reporting – The CBDT vide notification no. 16/2021 (F.No.370142/03/2021) dated 12th March 2021 amended Rule 114E of the ITR to cover the below transactions in the category of SFT for reporting purposes: Reason for such change?
In a move towards digitization and transparency in tax administration, reporting of transactions such as. HOME - KNM India. Monthly News & Updates May Month – KNM Management Advisory - KNM India. Executive Summary Income Tax Updated return of income can be filed in Form ITR-U relating to AY 2020-2021 and thereafter.New transactions notified for quoting PAN are mandatory under rule 114BA.Guidelines are provided under clause (23FE) of section 10 of the Income-tax Act.Circular regarding amendment under section 206AB and 206CCA of the Act and its functionalities.
Goods & Services Tax (GST) & Customs Availability of Annual Aggregate Turnover (AATO) functionality on the portal for the FY 2021-22 Temporary measures provided to taxpayers who have to report goods at 6% can select a 5% heading and then manually increase the system computed tax amount to 6%Enabling export of Bangladesh goods to India by rail in closed containers.
Companies Act 2013/ Other Laws. Income Tax a) cash deposit or deposits aggregating to twenty lakh rupees or more in a financial year, in one or more accounts of a person with a banking company or a co-operative bank or a Post Office; Goods & Services Tax Other Laws. Corporate advisory services in India (2) MCA Update- Amendment in Incorporation Rules, 2014 - KNM India. According to section 12(9) of Chapter II- Incorporation of Company and Matters Incidental Thereto, If the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company in such manner as may be prescribed and if any default is found to be made in complying with the requirements of subsection (1), he may without prejudice to the provisions of sub-section (8), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII of the Companies Act, 2013.
In reference to the above provision, the Ministry of Corporate Affairs has inserted Rule 25B through its notification dated 18.08.2022 in the Companies (Incorporation) Rules, 2014. 25B. Physical Verification Of The Registrar Office Of The Company – By ROC ROC has to prepare a Physical Verification Report of the Registered Office of the company in the given format. Transaction advisory services (3) Employee Stock Option Plan (ESOP) - KNM India. Employee ownership can be accomplished in a variety of ways. Employees can buy stock directly, be given it as a bonus, can receive stock options, or obtain stock through a profit-sharing plan. Employee stock ownership plans are simply choices that could be bought at a predetermined price before the exercise date. There are characterized rules and guidelines spread out in the Companies Rules which businesses need to keep for giving of Employee stock ownership plans to their representatives.
Terms Used: ESOP – or Employee Stock Option Plan allows an employee to own equity shares of the employer company over a certain period of time. Accounting & Taxation: It should be added as a prerequisite in the hands of the employee (Salary head) i.e., the difference between Fair Market Value (FMV) as on date of exercise and the exercise price is taxed as a prerequisite. Taxability Amendment for Startups: The change has been proposed on the payment of taxes at the time of exercise of ESOPs. Foreign company registration in India. Section 194R: Tax on benefit or perquisite or Reformed Fringe Benefit Tax - KNM India.
Section 194R: Tax on benefit or perquisite or Reformed Fringe Benefits Tax Applicability: 01st July 2022 Contents: Background of Section 194-RSnapshot to the guidelines of section 194R dated 16.06.2022Clarification relating to provisions of section 194R Background- 194R Section 194R: Deduction of TDS if benefits/Perquisites provided by any person to a Resident arising from business/profession. Applicability : • Value of benefit or perquisite provided > Rs. 20,000 (Cash or Kind or both). • Rate @ 10% • If cash is not sufficient then Advance tax must be paid by the recipient on such benefits/Perquisites. Exception: • Individual or a HUF is not liable to deduct if immediately preceding financial year: o business turnover < one crore rupees or, o profession gross receipts < fifty lakh rupees Clarification 2: Is it necessary that the benefit or prerequisite must be in kind for section 194R of the Act to operate?
Clarification 10: Section 194R would come into effect from the I” July 2022. Incorporation Services. Monthly News & Updates July Month – KNM Management Advisory. Executive Summary Income Tax New Form 26QF inserted i.e. Quarterly statement of tax deposited in relation to transfer of virtual digital asset u/s 194S to be furnished by an exchange as an alternative to tax deducted by buyer.Few exclusions were made from the definition of virtual digital assets.New Form 8A inserted for application u/s 158AB to defer filing of appeal before the Appellate Tribunal or the jurisdictional High Court.The procedure of PAN application & allotment through Simplified Proforma for incorporating Limited Liability Partnerships (LLPs) electronically (Form: FiLLiP) of MCA.
Goods & Services Tax (GST) & Customs Companies Act 2013/ Other Laws. Income Tax “Exchange” means a person that operates an application or platform for transferring virtual digital assets, which matches buy and sell trades and executes the same on their application or platform. Goods & Services Tax Furnishing of information regarding ITC availed, reversal thereof, and ineligible ITC in Table 4 of GSTR-3B – India Market Entry Strategy (3) RBI has increased the policy repo rate by 50 Basis points to 4.90% Executive Summary Income Tax The procedure, Timeline, and Form has been specified for deposit the withholding tax deducted under section 194S relating to TDS on transfer of Virtual Digital Assets.Cost Inflation Index for Financial year 2022-23 is 331.Applicability of Safe Harbor Rules extended till Assessment year 2022-23. Goods & Services Tax (GST) & Customs Guidelines issued for procedures relating to sanction, post-audit and review of refund claims.News and update has been issued to taxpayers for availing ITC as per law and GSTR-2B.New functionalities have been made available for taxpayers relating to Bank account validation, HSN validation and refund to un-registered persons.
Companies Act 2013/ Other Laws. Income Tax The exemption is applicable provided the lessor furnishes a declaration in Form no. 1 prescribed in the notification to the lessee giving details of 10 assessment years for which the lessor has opted for claiming deduction u/s 80LA(2) r.w.s 80LA(1A) of the Income-tax Act. Expatriate Taxation - KNM India. 3. Income Tax Clearance Certificate (ITCC) An assignee who is repatriating back to the home country should obtain an ITCC i.e.
No Objection Certificate from the Income Tax Authorities issued through Form 30B by filing Form 30A. Form 30A is an undertaking by the employer of the expatriate that any future tax liability arising in the case of the expatriate must be borne by the employer. This certificate is required to be presented to the immigration authorities at the time of departure from India. Taxability of Salary Income Remuneration earned by an individual for services rendered in India during the assignment period is taxable in India (irrespective of where the payment has been received). Double Taxation Avoidance Agreements (DTAA) India has entered into 164 double taxation avoidance agreements and 21 Tax information exchange agreements. Social Security Obligations in India 1. 2. In case an SSA exists – as per the provisions of the SSA.In case no notified SSA exists then – 1.
Interpretation and Application of Permanent Establishment in India. According to Income Tax Act, Permanent Establishment is defined as a fixed place of business where the business of the enterprise is wholly or partly carried on that indicates a business connection between the foreign country and Indian country. The tax on foreign entities in India is based on different aspects such as place of income, source of income and presence of the entity in India. So, with the increase of global business presence in India, the concept of PE has gained importance. PE is used to determine the right of source state to tax business profits of the foreign enterprise. Article 7 states as “The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein.”
The term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on. No Interest liability for reversal of wrongful claim of ITC - KNM India. Interest on reversal of Input Tax Credit: Background With GST assessments in place, the interest on reversal of input tax credit is one of the most controversial topics. Any erroneous claim of input tax credit along with interest liability requires reversal under GST regulations. Such reversal of erroneous credit and subsequent interest liability has always been a matter of argument by the taxpayers before the authorities. Section 50 of the CGST act, 2017 lays down the following two circumstances in which interest would be required to be paid.
Where a person liable to pay tax and fails to pay the same Section 50(1)Where a person makes an undue or excess claim of input tax credit under the provisions relating to matching of ITC Section 50(3) Further, Section 50(3) provides for levy of interest under the following situations: Section 42(10) covers those cases where there is a discrepancy in claim of input tax credit by the recipient vis-à-vis the supplies uploaded by the supplier. Transaction Advisory Services (2) Interpretation and Application of Permanent Establishment in India.
Assurance Services. Assurance Services | KNM India. Collection of services including Statutory Audit, Tax Audit, Transfer Pricing, GST Audit, Internal Audit, Investigation Audit, ICFR etc. Statutory Audit Board & Management are responsible for maintaining books of account, related records, laying down effective accounting policies, internal controls, preparation of annual financial statements, and ensuring that the financial statements are in compliance with accounting standards. It is mandatory required by every Company to get its Financial Statement Audited under Indian Companies Act. The Statutory auditor provides independent assurance to all stakeholders that Financial Statements are free from any misstatements, about the truth & fairness of the entity’s financial statements. The auditor examines the records produced before him, obtains evidence, evaluates the same, and formulates an opinion on the basis of his professional skepticism & judgment that is communicated through his audit report. 2.
Tax Audit 3. 4. 5. 6. 7. 8. 9. Virtual CFO Services India | Virtual CFO | KNM India. Change in CSR regime from Voluntary to Mandatory - KNM India. Introduction: Central government (MCA) has amended provisions of CSR under section 135 by Companies (Amendment) Act, 2020, imposing a statutory obligation on Companies to take up CSR projects. This has made India the only country that has regulated and mandated CSR for prescribed companies. The amendment introduced new concepts like negative list for CSR Expenditure, mandatory treatment of unspent amount, set-off of excess spend amount, and provisions for a penalty on company and officers in default, in case of non-compliance.
As per the provisions of Section 135 of Companies Act, 2013, provisions of CSR apply to every company satisfying any of the following criteria in the preceding financial year: (a) the net worth of 500 crores or more; (b) turnover of 1000 crore or more or (c) having a net profit of 5 crores or more during the immediately preceding financial year. Mandatory Expenditures on CSR No Failure in case of ongoing CSR project Allowed to set off the excess amount spent Conclusion.
Company Incorporation Services in India. Key Amendments in Minimum Alternate Tax - KNM India. A. Brief Background MAT stands for Minimum Alternate Tax. MAT was introduced by the Finance Act, 1987 with effect from the assessment year 1988-89. Later on, it was withdrawn by the Finance Act, 1990, and then reintroduced by Finance (No. 2) Act, 1996, w.e.f 1-4-1997. The concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT. B. Presently every taxpayer being a company is liable to pay MAT, if the Income-tax (including surcharge and cess) payable on the total income, computed as per the provisions of the Income-tax Act in respect of any year is less than 15% of its book-profit + surcharge (SC) + health & education cess. Amendments have been made in the provisions of MAT from time to time. C. Remarks Section 115JB does not differentiate between a domestic company and a foreign company for payment of MAT.
(a) Dividend income is chargeable to tax at the rate specified under Chapter-XII; and D. E. F. Minimum Alternate Tax. RBI has increased the policy repo rate by 50 Basis points to 4.90% Transaction advisory services (2) 4shared.com - free file sharing and storage - Login.
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Post incorporation services. India entry advisory companies. Virtual CFO Services 2. Corporate Advisory Services. Transaction advisory services. Virtual cfo services. India Entry Advisory Companies. Key Amendments in Minimum Alternate Tax (MAT) - KNM India. Addendum to Form AOC-4 or AOC-4 XBRL or AOC-4 NBFC - KNM India. The company that comes beneath the provisions of sub-section (1) to section 135 will file a report on the CSR in Form CSR-2 to the Registrar for the preceding financial year (2020-2021) or onwards. Corporate Social Responsibility was, for the first time, introduced as a statutory obligation for all the companies by enacting the Companies Act 2013 (Section 135 is related to CSR). The Companies Amendment Acts of 2019 and 2020 have consequently resulted in some tectonic changes in the CSR provision as per Section 135 of the Companies Act.
Basically, “Corporate Social Responsibility” means and includes but is not limited to: “The Board shall ensure that the activities included by a company in its CSR Policy fall within the purview of the activities included is schedule VII. Some activities are specified in Schedule VII as the activities which may be included by companies in their Corporate Social Responsibility Policies”. CS Shubham Prashar. Transaction Advisory Services India. ABRIDGED ANNUAL RETURN(MGT-7A) FOR SMALL COMPANY AND OPC. New e-form MGT-7A and revised e-form MGT-7 is now available in line with the Companies (Management and Administration) Amendment Rules, 2021 at MCA portal.
Every company in India needs to prepare the Return under section 92 sub-section-1, called Annual Return. No company enjoys any exemption from the preparation of the Annual Return, whether the One Person Company, Small Company, Private Company, Public Company, or Not for Profit Company, etc. Section 92 sub-section 1 also provides the content of the Annual Return. The Annual Return contains details such as the address of the registered office of the company, principal business, details regarding joint venture, subsidiary, and holding companies, shares, debentures, directors’ detail, shareholding pattern etc., of the company. (1) Every company shall prepare its annual return in Form No.
MGT.7. Amendment in Rule 11 i.e. Old Sub Rule: Every company shall prepare its annual return in Form No. The following sub-rule shall be substituted, namely. Foreign Company Registration in India | Foreign Entity | KNM India. Post Incorporation Services (2) Virtual CFO Services India | Virtual CFO | KNM India. Secretarial Services. Secretarial Services - KNM India. India Market Entry (2) KEY CHANGES MADE IN CARO 2020 IN REFERENCE TO CARO 2016.
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