GJM & Co.

Up-Start for Indian Start-ups: To Get 10-Year Waiver from Regulatory Filings Indian government has proposed recently to let start-ups issue sweat equity and grant additional exemptions, as the government is determined to ease norms for them under the Companies Act with a view to boost entrepreneurship in the country. According to the news, the ministry of corporate affairs plans to allow start-ups to issue 50% of their paid-up capital as sweat equity and extend the period of exemptions from other regulatory filings for up to 10 years instead of five now. They will be exempted for 10 years from a rule that bars private companies from raising deposits exceeding 100% of their paid-up share capital.   Exemptions already given to start-ups for 5 years will be available for 10 years, in line with the revised definition by the Department for Promotion of Industry and Internal Trade. The DPIIT expanded the definition of start-ups earlier this year to state that entities wo...

Outsourcing preferred, as businesses evolve! Today’s business owners are facing greater expectations when it comes to financial transparency and government compliance. All too often, businesses are juggling day-to-day responsibilities alongside more complex and time-consuming tasks such as finance, accounting, compliance, internal audit, and risk management. They are simply trying to do more with fewer resources. Increasingly, businesses, both large and small, are turning toward outsourcing as their preferred solution—with accounting being one of the primary outsourced tasks. In fact, many business owners are finding that outsourcing provides a unique opportunity to receive accounting support from talented professionals without the added overhead associated with in-house resources. As someone who’s working hard to drive efficiency and growth, and is responsible for directing your business and its operations – how do you make decisions? How do you create a well-informed,...

Corporate Taxes slashed for India Inc. – an Opinion Today, 20 th September, Finance Minister Nirmala Sitharaman announced, through a presidential ordinance, a huge reduction in income tax rate for corporates in India. The government has slashed basic corporate tax rate to 22% from 30% while for new manufacturing companies it has been cut down to 15% from 25%. Over the past few weeks, the government has been announcing a series of measures to boost growth that had fallen to six-year low of 5% in June quarter. Revenue foregone for the reduction in corporate tax rate and other relief measures announced will cost the exchequer ₹1.45 Lakh Crores per annum, projects the Ministry. A domestic company can now pay income tax at 22% p.a. if they don't seek any exemption or incentives/tax holidays as offered by the Indian income tax laws currently.   The effective tax rate will however be 25.17% p.a. inclusive of all surcharges and cess for such domestic companies.   Such comp...

Companies One-time Return of Deposits Background The Ministry of Corporate Affairs (MCA) through its notification dated 22 January 2019 made certain amendments to the Companies (Acceptance of Deposits) Rules, 2014 (Deposit Rules). Following are the key amendments relating to return of deposits: Annual return (Rule 16): Every company (other than a government company) should use form DPT-3 (return of deposits) to file: a) A return of deposit b) Particulars of a transaction not considered as deposit or   c) Both This return should be filed with the Registrar of Companies (ROC) on or before 30 June, of every year (comprising information contained therein as on 31 March of that year duly audited by the auditor of the company). One-time return (Rule 16A): A one-time return is required to be filed by every company (other than a government company) with respect to the receipt of money or loan outstanding but not considered as deposits for the period from 1...

Investment options in India for Non-Resident Indians & Persons of Indian Origin India has become an attractive investment destination for investors all around the globe. The growing popularity of the Indian leadership, improved foreign relations, strong institutional flows, stable and reformist government, multi-year low inflation and interest rates, improving economy and a promising future are few of the key leading factors.   Since last two decades, India has been rapidly developing as an industrial hub. Day after day, our country is attracting more and more foreign direct investment (FDI). Moreover, these days we can see more and more investments coming from the NRIs to the Indian markets. And this is all happening because the Indian economy and government are offering adequate stability and flexibility to the investors. Not only India is conducive for business growth but our economy is also equipped with an extremely profitable financial market. The year 2018 was...

Service Exports from India Scheme (SEIS) Rewards to Service Exporters for Exports out of India SEIS is one of the Exports from India Scheme launched by Director General of Foreign Trade (DGFT) under the Free Trade Policy 2015-20. This scheme aims to incentivize service exporters of India with the objective to encourage and maximize export of notified Services from India (The list of notified services provided at the end of this article). Rewards under the scheme: The rewards under the scheme are not given in the form of money but in the form of Duty Credit Scrips. Duty Credit Scrip is a scrip issued by the DGFT and can be used to pay various duties/taxes to the Central Govt. Split certificates of such Duty Credit Scrip may also be issued, at the time of application and are freely transferable .   This means the eligible service exporter can also transfer the duty scrip in return for money. Who is eligible? (a)    Service Providers of notified ser...