Mar. 29 – The Ministry of Corporate Affairs informed the Upper House that, under the Companies Act (1956), there is no precise provision for compulsory registration of foreign companies engaged in online business practices. Keeping in view the present scenario which has been witnessing a large number of business transactions through the electronic mode, the Indian government has proposed to adapt the definition of the term, “foreign company,” under the Companies Bill (2011) to provide for effective regulation of such entities.
Clause 2(42) of the Bill defines the term “foreign company” to mean any company or corporate body incorporated outside of India which:
- Has a place of business in India whether by itself or through an agent, physically or through electronic mode
- Conducts any business activity in India in any other manner Continue reading
Mar. 27 – India’s Ministry of Corporate Affairs informed the Upper House today that Indian chartered accountant (CA) firms are regulated by the Institute of Chartered Accountants of India (ICAI) in terms of provisions of the Chartered Accountants Act (1949) and the rules and regulations framed thereunder.
What that means is that no CA firm, whether Indian or foreign, can function in the area of audit/assurance services in India without first being registered with the ICAI. It is, though, possible that several “multinational accounting firms” may be operating in the country in the fields of audit/assurance services through Indian audit firms/ members who are registered with the ICAI. Continue reading
Mar. 23 – Ordinary Indian citizens have a lot of hope for the Budget 2012-13 in terms of more income tax freedom, more income tax deductions, and the documents potential to rein in inflation. Even while the average citizen is also interested in growth and industrial development, that last point, inflation, will definitely be of chief concern.
The Union Budget has increased the tax exemption limit to Rs. 20,000 for general category males giving tax relief of Rs. 2,000 and Rs. 10,000 for females giving Rs. 1,000 for individuals with incomes up to Rs. 8 lakh. Continue reading
Mar. 22 – Before the new budget was issued, there was ambiguity surrounding the dealing of director’s remuneration. There is inconsistency about whether it is considered salary income or business income chargeable under the head business and profession. However, in the new union budget, India has issued a new clause – clause 194(J) – clarifying that any payment or commission paid to the director of a company is liable to tax deduction at source at the rate of 10 percent. Continue reading
Income tax rates with respect to the assessment year 2012-2013
Mar. 20 – In respect to income of all categories of assessees accountable for tax during the assessment year 2012-13, the rates of income tax have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance Act (2011) for the purposes of computing “advance tax,” deduction of tax at source from “salaries,” and charging of tax payable in certain cases. Continue reading
Mar. 15 – During the yearly Union Budget set to take place later this week, the Select Committee of Parliament is expected to replace the Income Tax Act (1961) after examining the Direct Tax Code Bill (DTC), and has recommended some very significant tax reforms and tax payer-friendly measures.
With regards to personal taxation, it is planned to elevate the annual exemption limit from Rs. 1.80 lakh to Rs. 3 lakh and the annual tax saving investment limit from Rs. 1.20 lakh to Rs. 3.20 lakh. Continue reading
By Cherry Bansal
Mar. 7 – These days, business has no boundaries. Entrepreneurs are investing worldwide and indulging in more and more cross border investments. While investing in various countries, investors can take advantage of low tax jurisdictions over high tax jurisdictions by structuring the funding in a tax efficient manner.
There are broadly two ways in which a company may be financed: