GST Final Draft To Retain Clause On Services Sector

The goods and services tax (GST) council is likely to retain a clause in the law that will require service providers to register in every state where they operate, despite recent representations from various Union ministries and telcos, banks, and insurance firms for a single registration system in chartered accountants firm.
At present, service providers benefit from a single centralized registration system for paying service tax—a tax levied and collected by the Union government.
However, under the GST regime, even states will get the powers to collect tax on services and the service providers will have to register in every state where they have operations in direct foreign investment in India.
As per the provisions of draft GST laws that will be finalized in the 11th meeting of the GST council on 4, and 5 March, service providers operating across India will have to obtain more than 30 separate registrations. Companies have highlighted the procedural hassles of such a move but states, concerned about their revenue, are not willing to agree to a centralized registration.

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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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Poem Rules Only For COS Earning Over Rs 50 Cr.

The Central Board of Direct Taxes, the apex direct taxes body, has issued a circular clarifying that the provisions relating to place of effective management (POEM) will apply to companies with over Rs. 50-crore turnover.
The clarificatory circular comes after a CBDT press release specified this but the circular issued omitted a mention in chartered accountant firms in mumbai.
“…it is clarified that provisions of Sec 6(3)(ii) relating to place of effective management (POEM) won’t apply to companies having turnover or gross receipts less than Rs. 50 crores in a financial year,“ it said.
The board had on January 24 issued final guidelines to determine if an entity can be considered an Indian resident and taxed here.
These norms come into effect from April 1, 2017.
A foreign company will be considered Indian resident if its place of effective management in a given year is in India.The rules seek to curb tax avoidance, targeting shell companies incorporate outside India, but their real control and management is in India.
The limit will ensure that only substantive cases are taken up and small companies do not clog the system Tax consultancy firms in Delhi.

For more information visit at: http://bit.ly/2rIGNFF

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

Company Formation in India

So you have finally decided for company formation in India and researched market. Now it’s time to make a decision regarding how to approach someone for company registration in Delhi. What is the best, most viable option for your company, your products, and yourself?

For formally foreign company registration in India, one need to fulfill many formalities. If we are right, in most cases it is necessary to obtain government approval for incorporating a company in India. It is must to seek formal advice before starting a company.

The following types of businesses are usually uses by foreign investors to set up a company in India.

 Private Limited Company: A private limited company is a company limited by shares having a minimum of 2 and not more than 50 shareholders. A private company needs to have a minimum a paid-up share capital of Rs.1 lac. It cannot make invitation to the publc for subscriptionof shares or debentures and cannot make or accept deposits from public. Moreover, by virtue of its article of association, there is restriction on the free transferability of shares. The liability of each shareholder is limited to the extent of the unpaid amount of the face value of share and the premium thereon in the respect of the shares held by him. However, the liability of a director/manager of such private company at times can be unlimited.  

Public Limited Company: A public limited company (PLC) is the legal designation of a limited liability company which has offered shares to the general public and has limited liability. A PLC's stock is offered to the general public and can be acquired by anyone, either privately, during an initial public offering or through trades on the stock market.

Other business forms:

•             Liasion Office
•             Project Office
•       Branch Office

For more information:

AJSH & Co LLP. primarily operates from its head office located in New Delhi, India and has associated members working across India and in USA. Our aim is to provide best quality consultancy service at affordable prices to cater the specific requirements of our clients located in India as well as abroad.

AJSH & Co LLP. has a team of highly qualified and dedicated professionals comprising of Chartered Accountants, Company Secretaries, Certified Public Accountants (CPAs), Lawyers, MBAs etc. specialized in providing professional advisory services on setting up business in India including company formation, various forms of foreign direct investment, setting up partnership firms, project offices, branch offices and all other form of entities required to do business in New Delhi, Gurgaon or any part of India.

Please feel free to email sales team at E: anklit@ajsh.in,  also reachable on Direct numbers or + 91  9810661322. Please feel free to visit at www.companyformationsservices.com