Incorp Advisory India

Introduction E-Invoicing under GST is an authentication mechanism just like the E-way Bill system. However, the mechanism is different, wherein it involves submitting already generated invoices on the common e-invoice platform before issuing the same to the customer. It is a system in which Business to Business (B2B) invoices are authenticated electronically by GSTN. All the invoices uploaded on the e-invoice platform will be automatically transferred to the GSTN portal and E-way bill portal...

The government of India has introduced Section 206C(1H) of the Income Tax Act, 1961 with regards to Tax Collection at Source on sale of any other goods. Applicable to all sellers of goods whose turnover for the preceding Financial Year exceeds INR 10 crores w.e.f. 01.10.2020. This provision is not applicable where other TCS & TDS provisions is applicable. Key points to be noted: Every seller who has received any amount as consideration on sale of any other goods above INR 50 lakhs are li...

India has experienced a significant outflow of funds in recent times coupled with a weakening currency. However, given its strong fundamentals and growth forecasts, the country continues to remain an attractive destination for foreign investors in the medium to long term. Indian regulations currently allow global investors to invest in India via a number of different routes namely Foreign Direct Investment, Foreign Portfolio Investment, Foreign Venture Capital Investment, and Alternative Inv...

The economic impact of the COVID-19 pandemic has created significant stress on the liquidity and overall financial position of business especially those which have a borrowing from banks, NBFCs and other financial institutions. The cashflow mismatches created to the subdued business activity over the last six months and the possibility of the same not recovering in the immediate future would lead to increasing rate of defaults by even otherwise viable and sustainable businesses. The moratorium p...

Income-tax is levied on the annual income of an individual or an entity. The period under Income Tax Act starts from 1st April and ending on 31st March of the next calendar year. The Income-tax Law classifies the year as (i) Previous year, and (ii) Assessment year. Income tax on companies is called a corporate tax which is normally levied at a fixed rate. Whilst, a non-corporate assessee other than the firm has to pay income tax based on the slab rate. Taxes are collected by the Government thr...

To be able to register and run a company in Indonesia, foreign investors can choose between three common options of legal entities, namely a foreign-owned company (PT PMA), a locally owned company (PT), and a Representative Office (RO). Foreign-Owned Company (PT PMA) This option is the most popular among foreign entrepreneurs as it allows up to 100% foreign ownership. To know whether a business sector or a business activity allows full foreign ownership, there is a list called the Negative I...

The world is grappling with the spread of coronavirus (COVID-19). The World Health Organisation (WHO) has declared COVID-19 impact as an international emergency on 30th January 2020. While the future is uncertain, countries facing the risk will likely see continued case growth; new complexes may also emerge. Though China will recover first, the impact globally will be much longer. COVID-19 according to WHO, has spread to 83 more countries apart from China alarming public health authoriti...

The Union Budget 2020 has proposed to introduce a stringent ‘Anti-abuse’ provision that every Indian citizen who is not liable to tax in any other country, by virtue of his domicile or residence, shall be deemed as a resident of India for tax purpose. Consequently, his global income would be taxable in India. Further, tightening the residency provisions, the Budget 2020 also proposed to reduce the cap on period of stay in India to 120 days from present 182 days for Indian Citizens/Perso...

LIQUIDITY 1. Repo rate reduced by 75 basis points to 4.40%. What does that mean and how does it impact banks/borrowers? Repo Rate refers to the rate at which commercial banks borrow money by selling their securities to the central bank of our country i.e. Reserve Bank of India (RBI) to maintain liquidity, in case of shortage of funds or due to some statutory measures. Reduction in Repo Rate is a measure by RBI to boost liquidity and lending that will allow the commercial banks to borrow ...

In the 31st GST council meeting in December 2018, it was decided that a new return system under GST will be introduced. This system is applicable from 1st April 2020. However, in the in the 39th GST council meeting held on 14th March 2020, the new return system was deferred from 1st April 2020 to 1st October 2020. The flow of events under new returns system will be as under: Important points to be noted in above flow of events: The credit in respect of documents edited or uploaded shall be...