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CA VK Agrawal

Disinvestment By Indian Party In Overseas JV/WOS

Overseas Direct Investments aka ODI which refers to the investments made in the overseas entities by way of contribution to their capital or subscription to the MoA (Memorandum of Association) of a foreign entity or by purchasing existing shares of a foreign entity by two way which are market purchase or private placement or through stock exchange, but excluding portfolio investment. In simple term, Overseas Direct Investments (ODI) means an… Read More »Disinvestment By Indian Party In Overseas JV/WOS

Shift from MEIS to RoDTEP

The GOI (Government of India) has recently introduced RoDTEP( Remission of Duties or Taxes on Export Product) scheme to replace the existing MEIS (Merchandise Exports from India Scheme) and built a fully automated path for ITC(Input Tax Credit) in the GST for help to increase the exports in India. The Union Cabinet in March approved the RoDTEP scheme for exporters to reimburse taxes and duties paid by them like mandi… Read More »Shift from MEIS to RoDTEP

Tax Provisions Relating To Receipt and Forfeiture Of Earnest Money

The provisions of the Income-Tax Act- section 51 deal with advance money received for transfer of a capital asset. As per the old provisions where any capital asset was on any previous occasion the subject of negotiations for its transfer, any advance or other money received and retained by the assessee in respect of this kind of negotiations shall be deducted from the cost of acquisition of the asset/WDV or… Read More »Tax Provisions Relating To Receipt and Forfeiture Of Earnest Money

Dropshipping Legal Requirements from India

Drop-shipping is a kind of business where the products to be sold from the third party and are not kept in the store, the products are purchased from the 3rd party and are directly shipped to the customer. In other words, Dropshipping is a form of a retail method where you don’t keep products in stock as inventory. In dropshipping you need to work according to the agreement between you… Read More »Dropshipping Legal Requirements from India

Overseas Direct Investment Without Remittance of Funds From India

Direct Investment outside India means investment through contribution to the capital or subscription to the MoA (Memorandum of Association) of a foreign entity or through purchase of existing shares of a foreign entity either by market purchase or private placement or by stock exchange, by setting up a JV (Joint Venture) or a WOS (Wholly Owned Subsidiary). Foreign Exchange Management Regulations, 2004 regulate acquisition & transfer of a foreign security… Read More »Overseas Direct Investment Without Remittance of Funds From India

All about Software Technology Parks of India (STPI)

STPI is an abbreviated form of Software Technology Parks (STPI) of India which was established in 1991 as an autonomous society under the Ministry of Electronics and Information Technology). STPI is here to promote software exports from the country and has been implementing STP (Software Technology Park) scheme and EHTP (Electronics Hardware Technology Park) scheme for the promotion of IT/ITES industry. Software Technology Parks of India (STPI) center also adhere… Read More »All about Software Technology Parks of India (STPI)

How to Close Project Office/Branch Office/Liaison Office

The establishment of Project Office/Branch Office/Liaison is regulated in terms of Foreign Exchange Management Act, 1999 -Section 6(6) with Foreign Exchange Management (Establishment in India of a BO (Branch Office) or a LO (Liaison Office) or a PO (Project Office) or any other place of business) Regulations, 2016. Business entities registered outside India can establish business operations in India without making & registering a subsidiary company. According to the RBI… Read More »How to Close Project Office/Branch Office/Liaison Office

Income Tax Deduction for Donations

Fund Contributions which is made to few relief funds & charitable institutions can be claimed as a deduction under the Income Tax Act -Section 80G. Donations which are made to prescribed funds qualify as a deduction. This deduction can be claimed by any taxpayer like individuals, company, firm or any other person. Who Can Claim Income Tax Deduction For Donations Under Section 80G? Any taxpayer whether he/she is resident or… Read More »Income Tax Deduction for Donations

Subsidiary Office Benefits in India

A foreign company can start operations in India by incorporating the subsidiary company under the Company Act, 2013. Subsidiary Office is treated as a domestic company under laws of Indian taxation and is eligible for all exemptions, deduction advantages as applicable to any other Indian Company. The Indian subsidiary company is a company whose interests are held and controlled by another company. Compare to Branch office and Liaison office, Indian… Read More »Subsidiary Office Benefits in India