On the 20th of July 2023, the Taxmann, held an informative and insightful webinar on External Commercial Borrowings. This exclusive webinar aims to equip businesses and entrepreneurs with essential knowledge on leveraging ECB for effective business financing 📋 Coverage of the Webinar: ✔️ Overview of External Commercial Borrowings (ECB) ✔️ Use of ECB for Business…
Beware of ESOPS While ESOPs can hold tremendous potential for financial gain, it’s essential to weigh the pros and cons before accepting Esop’s as employee. Here’s why: Most of startups offer esops as compensation against lower immediate cash salary payout. But out of 1,000 startups, only 10 successfully reach an exit event. 🚀 If the startup…
1. The tax office says the issue of shares to existing shareholder @ face value is not allowed 2. Mumbai Tribunal in Sudhir Menon HUF case held that in case of proportionate allotment of shares, there would be no taxability u/s 56(2)(vii)(c)(ii) 3. This is because the gain accruing on the allotment of fresh shares will…
Definition – “Head Office” of a company would be the place where the company’s senior management and their direct support staff are located or, if they are located at more than one location, the place where they are primarily or predominantly located. A company’s head office is not necessarily the same as the place where…
DETERMINATION OF POEM Board Meetings: The location where a company’s Board regularly meets and makes decisions may be the company’s Place of Effective Management (POEM)provided, the Board- (i) retains and exercises its authority to govern the company; and (ii) does, in substance, make the key management and commercial decisions necessary for the conduct of the …
FEATURES OF GUIDELINES Applicable from A.Y 2017-18. Applicable to Companies turnover more than 50 Crores in F.Y (Circular No 8/2017). Concept of POEM is on substance over form. To be analysed on year-on-year basis. Financial data of Pervious 2 years and current year to be considered for determining active business of place. The principal of…
INTERNATIONAL PRACTICE Australian case De Beers consolidated Gold Mines (AC 455). I The company is registered in South Africa the shareholders‟ meetings were all in South Africa and Board meetings held in South Africa and the UK The directors meetings held in the UK were found to be those where the real control was exercised and…
RESIDENTIAL STATUS FOR COMPANIES-CHANGE IN DEFINITION Earlier Provisions under the Income tax Act (Sec 6) A Company is said to be resident in India if: It is an Indian Company, or During that year ,the control and management of its affairs is situated wholly in India Existing Provisions under the Income Tax Act (Sec…
