Govt Cracks The Whip On Shell Companies

After trying to tighten the rules against shell companies through its Budget proposals, the government has decided to follow with “harsh punitive” action that will include freezing of bank accounts and striking off the names of dormant companies.Their investments in real estate could also come under the scanner, as the government has also decided to invoke the Benami Transactions (Prohibition) Amendment Act. A meeting was held in the Prime Minister’s Office with senior officers of various departments on Friday to review the functioning of companies which do not conduct any operations and do money laundering in India, went an official statement. The regulatory ministry concerned will ensure disciplinary action is initiated against professionals abetting such malpractices and operations in chartered accountant firms in Mumbai.
The basic approach is to prevent money laundering and tax evasion in foreign company registration in India. The government will use technology to identify shell companies. A database on these companies and their directors would be built by pulling information from various agencies. In the Budget for 2017-18, the government has proposed to impose a 10 per cent long-term capital gains tax on those who have invested in unlisted stocks but not paid the securities transaction tax after 2004.

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Roll Out Of GST - 1st July 2017; Draft CGST Law and Draft IGST law Approved in the 11th Council Meeting Held on 4 March 2017

The GST Council in its 9th Meeting held on 16 January 2017 took note of the work to be completed for the rollout of GST and after deliberations, agreed to extend the date for rollout of GST from 1st April 2017 to 1st July 2017. Steps taken to ensure rollout of GST by 1st July 2017 include approval of the Draft GST Compensation Law by the GST Council in its 10th Meeting on 18 February 2017 held in Udaipur, Rajasthan. Subsequently, the Draft CGST Law and Draft IGST Law were approved in the 11th Council Meeting held on 4 March 2017 at New Delhi. The issues of dual control and cross empowerment were resolved in the 9th Meeting of the GST Council held on 16 January 2017 in which a broad agreement was reached on the issue of cross empowerment to achieve single interface of taxpayer with the tax administration in the GST regime in foreign company registration in India.
GST Council is presently deliberating on various issues entrusted to it. All the decisions taken by the Council so far have been based on consensus. GST is going to be implemented soon in the country, therefore, simultaneous and concert efforts are also being made by the government in the form of IT readiness, rigorous consultations, workshops and training sessions for the industry and traders, and all other stake holders involved etc in Chartered accountant firms in Mumbai.

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India's Growth Rate of More Than 7% is the Strongest Among G-20 Countries OECD Survey

The Indian economy is expanding at a fast pace, boosting living standards and reducing poverty nationwide. Further reforms are now necessary to maintain strong growth and ensure that all Indians benefit from it, according to a new report from the OECD. The latest OECD Economic Survey of India 2017 finds that the acceleration of structural reforms and the move toward a rule-based macroeconomic policy framework are sustaining the country’s longstanding rapid economic expansion. The Survey, launched in New Delhi today by OECD Secretary-General Mr Angel Gurria and Secretary, Department of Economic Affairs, Ministry of Finance, Govt. of India, Shri Shaktikanta Das, hails India’s recent growth rate of more than 7 percent annually as the strongest among G-20 countries. It identifies priority areas for future action, including continuing plans to maintain macroeconomic stability and further reduce poverty, additional comprehensive tax reforms and new efforts to boost productivity and reduce disparities between India’s various regions in tax consultancy firms in Delhi.
The implementation of the landmark GST reform will contribute to making India a more integrated market. By reducing tax cascading, it will boost competitiveness, investment and job creation. The GST reform – designed to be initially revenue-neutral – should be complemented by a form of income and property taxes, the Survey said in tax consultant in India.

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New GST Rules May Impact Auto Consumer Durables.

After getting hit by the transition of new fuel technology — from Bharat Stage-III (BS-III) to BS-IV — the automobile sector in the country may be awaiting yet another shocker. The proposed taxation format under the upcoming goods and services tax (GST) is likely to fuel inflation, and increase the tax burden of secondhand car buyers and those opting for exchange offers. It may also increase the working capital of dealers of used vehicles. Earlier the tax used to be calculated on the discounted value of a product in the case of exchange schemes after the market value of the old vehicle was deducted in tax consultancy firms in Delhi. The proposed GST rules, issued by the government on Sunday, will consider the market value of the new vehicle while calculating the tax burden. Thus, consumers may end up paying more as the discounted amount would be taxed. Under the new GST rules, retailers and traders dealing in used vehicles will come under taxation. While under the existing rules, secondhand products are outside the purview of tax, sellers will have to pay taxes at the same rate as the new products in indirect taxation in India.

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How to avoid legal problems in business?

Consultant In Delhi

We’ve all heard the statistics on how many small businesses fail. Competent management and understanding of your market can save you from the most common pitfalls. But what about legal trouble?

A lawsuit can crush even the most prosperous small business, and yet many business owners find themselves unprepared for the possibility. Here are a few ways you can keep legal trouble from endangering your small business.

1.   Project Your Reputation: This one seems obvious, and yet so many small business owners don’t heed the warning: be careful what you say and do online! Social media has become a cornerstone of doing business, but you can still find hundreds of horror stories about business owners who have unleashed bad behaviour on customers or critics- and suffered the consequences. Use social media responsibly. Keep your tone inviting and civil. Don’t overreact to criticism or shut down conversation – that will often make things worse. Hire or assign a trusted representative to act as your social media “voice” and have a plan in place to establish and protect your online reputation.
2. Incorporate Yourself: Many business owners operate as sole proprietorships. While this is one of the easiest and least expensive paths to starting a small business, it also carries serious financial risks. If a company in sole proprietorship is sued, the owner’s personal assets could easily be lost in the resulting settlement or judgement. That’s why incorporating is a good idea. Establishing your small business as an LLP or private limited company or OPC will protect your personal assets. If the worst should be happen and your business goes under, your life won’t go with it.
3. Avoid Suspicious Situations: Avoiding conflicts of interest and suspicious employees might also seem self-evident and yet many small business owners fall prey to unscrupulous employees, contractors, or even clients. Do your research. When hiring employees, conduct background checks and perform screening. Audit your finances quarterly. Require your clients and customers pay you in a timely fashion, and get all your contracts in writing. When tax time comes, make sure to hire a tax attorney or financial advisor to take care of your books. You’ll not only avoid trouble, but could also save money by taking advantages of hidden tax breaks.
4. Get Protected: First and foremost, your business should absolutely have liability insurance, in case of injury or other employee mishap. Business owners might also consider taking out errors and omissions coverage, which will cover the business in case a client accuses you of error or breach of contact. Another good way to cover your legal bases is to build protection into your contracts and make sure you’re not liable for circumstances beyond your control. You should also get a quote for umbrella coverage. Another reason to have the number of a good lawyer!
5. Stay Vigilant: When protecting your business from legal trouble, the best approach is to prepared. Back up crucial client data, so you don’t end up like that fellow who deleted his entire business. Monitor your finances and infrastructure regularly. Keep your security up to date to avoid losing data to viruses or malware. Loss of key client data or productivity doesn’t just cost money and time – it can also open you up to possible legal action. Don’t take any chances.

Not every entrepreneur will see legal trouble coming, but every entrepreneur should be prepared.

Hope the information will assist you in your Professional endeavors. For query or help, contact:

Phone No. - 011 28543739

Or Visit website: http://www.raaas.com/

5 bank charges that most have no clue about

Tax Advisor in India

Banks charge clients for a plethora of services to recover their costs. And it is not a recent phenomenon. There are charges for PIN generation, demand draft, duplicate bank statement, and even account balance updates that you get via SMS on your phone.

Here are some common bank charges that we all should know about.

1) Cash Transactions
You cannot do unlimited cash transactions from your bank account. There is a cost to it and banks charge you for that. For example, SBI Bank allows just three free cash transactions per month and thereafter charges Rs 50 per transaction. The charges were introduced last year by the bank.

Similarly, India's biggest private sector bank, ICICI Bank, reintroduced cash transaction charges post demonetization at branches from January 1, 2017.

There are no charges for first four transactions in a month at branches in the same city. Thereafter, Rs 5 per Rs 1,000 is charged.

2) Non-maintenance charges
Non-maintenance charges have always been a point of dispute between a customer and a bank. It is always advisable to ask your banker at the time of opening an account about the minimum balance required.

For example, HDFC Bank charges Rs 600 if the minimum balance (Rs10,000) falls below Rs 2,500. If the balance is between Rs 7,500 and Rs 10,000, the penalty is Rs 150. 

SBI recently brought back the penalty for failure to maintain the monthly average balance (MAB) in metro, urban and rural centres. In a metro city, failure to keep the Rs 5,000 balance will attract a Rs 50 charge if the shortfall is 50 per cent, Rs 75 if the shortfall is 50-75 per cent and Rs 100 if the shortfall is 75 per cent or more. 

Different types of accounts have different minimum balances. So, while opening any account, ask the bank about the minimum balance for your account and the penalty for not maintaining it.

Banks calculate the MAB by adding daily closing account balance and dividing by the number of days in the period. Considering the method involved you might meet the minimum balance limit just by keeping your salary for a few days in your bank account.

3) Home branch and non home-branch transactions
Though the banking industry has adopted core banking, several banks still distinguish between home and non home-branch transactions. Large transactions are generally not encouraged at non-home branches  and therefore charges are levied on them.

For instance, HDFC Bank has capped the amount that can be transacted in the home branch at Rs 2 lakh. Above Rs 2 lakh, it charges Rs 5 per Rs 1,000.

At non-home branches, there is a cap of Rs 25,000; above this, customers are charged Rs 5 per Rs 1,000, subject to a minimum charge of Rs 150.

It is always good to shift your bank account to the place you reside so that there is less cost to the transaction

4) ATM transactions
You cannot make unlimited cash transactions from your ATM. There is a limit to it. According to RBI rules from your own ATM you can make at least first five transactions in a month free. From other ATMs you can make three free transactions per month in six metro cities and five in other cities.

Banks charge Rs 20 per financial transaction and Rs 9.55, including tax, for every non-financial one beyond this limit.

5) International Transactions
If you make payments abroad through debit or credit card, a charge of 3-4 per cent is added to the exchange rate. So, before swiping the cost abroad, add 3-4 per cent extra cost on the transaction amount.

Next time when you do any banking transaction do keep the above-mentioned charges in mind.

Original Source: http://bit.ly/2ojeg8W

Latest News- All PAN cards not linked to Aadhaar card will be cancelled.

Tax consultant in India

You must have already heard that from this year filling of income tax returns will require you to quote your Aadhaar number. In case you don't have the Aadhaar card and you wish to pay taxes, you have to get one now. But the Aadhaar doesn't just stop at the income tax. The Aadhaar number will also have to be linked to the PAN (permanent account number) card or else the PAN card will be cancelled.

The new rule is part of the proposed amendments in the new Finance Bill, which is certain to be passed. The proposed rules note that linking of Aadhaar card with PAN card will be mandatory from July 1.

"Every person who has been allotted permanent account number as on the day 1st of July 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be in notified by the Central Government in the Official Gazette," notes the amendments inserted in the Finance Bill. "Provided that in case of failure to intimate the Aadhaar number, the permanent account number (PAN) allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number."

Interestingly, the government move comes despite of the Supreme Court ruling that Aadhaar number can be used only for providing welfare services and not as in ID tool or a requirement for general services.

It is not clear why the government wants to link all PAN cards to the Aadhaar card and what it hopes to achieve by making Aadhaar a mandatory requirement for filing income tax returns. But from the proposed amendments it seems that Aadhaar number will soon render the PAN number useless and in future government may just use Aadhaar number in all the places where currently the PAN card is required. At the same time, with Aadhaar card connected to the PAN card, and effectively with bank accounts, government will be able to track the income and expenditures of millions of Indians each time there is a transaction that involves a bank account. You may concern with Tax consultant in India for any help.

Source:http://bit.ly/2nJUZQ1

Procedure for Foreign Company Registration in India

Globalization has made the business world come closer. With FDI being liberalized in a unique way, India has opened doors for the world to come and do business in India. Companies from various countries come to India for business and seek registration for their representative companies or establishments here. We help by suggesting below models of doing business in India:

Foreign Company Registration in India

Indian subsidiary

There can be two types of it based upon ownership namely-

100% ownership-

Fully owned subsidiaries (only in FDI permitted sectors as Per latest FDI policy)

Less than 100% ownership-

Joint Ventures

Indian subsidiaries enjoy same rights as basically Indian Companies. There are certain norms to the activities of proposed companies as per FDI policy of the Government. Many activities are permitted to bring 100% foreign investments whereas on some activities Government has put restrictions where Government gives permission of 100% FDI and in a few activities 100% FDI is not permitted and even Government route can not be availed. In those cases, Joint Ventures are good channel of investment, where a certain percentage is held by Indian entities. In the Joint Venture Form of working, foreign company can get a good financial resource with some ready contacts and experienced partners, however a complete privacy has to be a bit parted with.

Assistance in getting FIPB Approvals

There are two entry routes of direct investment in India (FDI):

• Automatic Route
• Government Route (Approval Route)

Depending upon the sector where proposed investment is to be brought in, the above segregation is done. In many a sectors, Government restricts 100% FDI like defense, telecom etc. For such sectors, one has to get the approval of Foreign Investment Promotion Board (FIPB)- a division of Finance Ministry. We assist you in getting the FIPB approvals, taking care of all the formalities so you can rest assured of our services.

Channels other than FDI:

A foreign company can also come and do business in India without investing directly. RBI has permitted such companies to have establishments in India for some limited purposes. Such forms are :

• Liaison office
• Project Office
• Branch Office

Different permissions and freedoms are attached with each such office. So one has to be careful while making choice of these forms of work. RBI permissions have to be sought for each such organization subject to renewals as specified from time to time. Also, the foreign companies have to register with Registrar of Companies (ROC) within 30 days of setting up a place of business in India, besides the said RBI Approval. 

Brief explanation is here: http://bit.ly/2gI47gY