25 April, 2017

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Do You Know What Happens If Your Bank Collapses – Will You Get Your Money Back??

Do You Know What Happens If Your Bank Collapses – Will You Get Your Money Back??

By CA Ankit Gulgulia (Jain)

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You Save Your Money In Banks...But Do You Realise 
That Banks Themselves Are
 UNDER THREAT!
Now, I'm sure all of us are in favour of an inclusive banking sector...
We need more and more people to get into the formal economy and get away from cash transactions. And our Government seems to have the right idea through their Jan Dhan Yojana and so on... but do you know that if the bank keeps incurring these NPA’s or reaches a stage of collapse or liquidation .. what will happen to your money .. No ?? … Read on then (I am sure you will be surprised)
The banks, that we are supposed to entrust with our hard-earned money, are themselves under threat!
Yes, these banks, in the past, have happily given away our money to businesses which cannot repay it now.
Adding to crores in Non-Performing Assets.

24 April, 2017

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GST transition may hit dealers, retailers hard

GST transition may hit dealers, retailers hard

The Goods and Service Tax (GST) regime is just around the corner but the credit input-related transitional provision is likely to have a major impact on dealers' as well as retailers' pockets.

In central GST if dealers or retailers do not have the excise bills issued by the manufacturer in their name they will get only 40% credit and rest will have to be paid from their pocket.

The majority of stock lying with dealers, distributors, retailers and showrooms are excise-paid but as per the draft GST Transitional Provisions, which have been tentatively approved by GST Council and circulated by finance ministry, the credit of only 40% of central tax (in case of CGST) payable is admissible to them when they do not have the excise-paid bills issued by the manufacturers in their names.

22 April, 2017

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Merely non-appearance of the supplier Does Not Mean Bogus Purchases

Merely non-appearance of the supplier Does Not Mean Bogus Purchases

M/s Beauty Tax vs. DCIT (ITAT Jaipur)


The only grievance of the Assessing Officer is that the assessee has failed to produce the party so as to establish genuineness of the transaction and secondly, no payment has been made to the party till the year end. 

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Share Inbound Investment Structuring

Since 1991, the regulatory environment in terms of foreign investments has been consistently eased to make it investor-friendly. The liberalisation programme of the government aims at rapid and substantial growth of the

country's economy and a harmonious integration with the global economy.

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Our key service offerings are:

 

  • Advise on the entity structuring for selecting an optimal entry vehicle such as a branch, subsidiary, LLP, joint venture, to name a few.
  • Advise on capital structuring in the backdrop of foreign exchange policies keeping repatriation needs in mind.
  • Assistance in filing/obtaining necessary regulatory approvals including those from the Reserve Bank of India, Foreign Investment Promotion Board, Government of India and other regulatory authorities.
  • Assistance in finalising/review of shareholders, joint venture and other relevant business agreements from a tax perspective.
  • Advise on an India entry approach and suggestions for obtaining optimal ownership/jurisdiction for an investment in India.

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Revised Norms For FDI In E-commerce - Biggies Forced To Restructure

Revised Norms For FDI In E-commerce - Biggies Forced To Restrcuture

Amazon and Flipkart interalia whose most sales are executed via Single Big Vendor Won't Be Able to Continue Single Dominant Vendor Model (A Welcome Step for Creating More Openness) 

  • An e-commerce entity will not permit more than 25% of the sales value on financial year basis affected through its marketplace from one vendor or their group companies

21 April, 2017

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Works Contractors Must Keep Seperate Accounts For Each Works Contracts Under GST

Works Contractors Must Keep Separate Accounts For Each Works Contracts Under GST

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As per Rule 1 Sub Rule of GST - ACCOUNTS AND RECORDS - Draft Rules - 19-4-2017 

Every registered person executing works contract shall keep separate accounts for each works contract showing -  

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You Cannot Make A Single Incorrect Entry in Accounts Under GST

You Cannot Make A Single Incorrect Entry in Accounts Under GST !!-

 Small Traders Must Adopt Sophisticated ERP Practices of Large Corporates  

Taxpayers would maintain all account and records electronically, certain requirements in the rules could be cumbersome, especially for smaller taxpayers. The new draft rules for accounting and record-keeping require maintenance of trail of each deleted or edited entry in electronic records. 

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Salary deduction for not serving during notice period couldn’t be taxed

Salary deduction for not serving during notice period couldn’t be taxed : ITAT

Facts :
 
a) Assessee declared salary income after deducting amount for not serving during notice period with two of his employers.
 

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Income Tax On Sale of Running Business - Explains Supreme Court

Income Tax On Sale of Running Business - Supreme Court Explains

If an undertaking is sold as a running business with all assets and liabilities for a slump price, no part of the consideration can be attributed to depreciable assets and assessed as a short-term capital gain u/s 50(2). If the undertaking is held for more than three years, it constitutes a "long-term capital asset" and the gains are assessable as a long-term capital gain

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Outbound Investment Structuring

The Indian Regulations permit outbound investments from india into overseas companies, branch offices, joint ventures, etc. The Indian home grown business houses interested in or aiming to set-up shop abroad or getting listed on the overseas bourses, also need to understand and stride through an interplay of cross–border taxes and regulatory challenges.

 

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Our key service offerings are:

 

  • Advise and assistance on entity structuring, capital structuring and regulatory approval processes in the selected jurisdiction.
  • Assistance in finalizing/review of shareholders, joint venture and other relevant business agreements from a tax perspective.
  • Advise on the tax credit claim in India and tax treaty implications.
  • Assistance in obtaining approvals from the Reserve Bank of India/regulatory authorities that may be required in the matter.
  • Advise on cross-border investment strategies and suggestions for obtaining optimal ownership/jurisdiction structures for investment into a particular jurisdiction which includes setting up an international holding company, global sales company, etc.