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Step 1: Check the Articles for any specific provision on issue of share under ESOP. Check the Articles to understand if any specific provision has been provided with respect to issue of share under ESOP. Step 2: Hold Board MeetingAction to be taken in the Board Meeting: 1. Authorization for issue of shares under ESOP2. […]

MEANING (SECTION 2(37) OF COMPANIES ACT, 2013):“Employees’ Stock Option” means the option given to the directors, officers or employees of a Company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the […]

As per section 2(119) of CGST Act, “Works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. […]

The end of a financial year entails additional multiple action points for the accounts team in every organization, few of which relating to GST are being summarized below for easy reference: 1. Draft & send an email to all your customers to check that all the sales bills issued to them during the year are […]

Show cause notice (SCN) is a document served by the department on a person asking him to explain with reasons as to why a particular course of action should not be taken against him. It is similar to an opportunity given to a person who is proposed to be charged with violation of law by […]

Section 29 of the Central Goods And Services Tax Act, 2017 and Rule 21 of the Central Goods and Services Tax Rules, 2017 provide for suspension or cancellation of registration. Situations giving rise to suspension/cancellation: (a)   does not conduct any business from the declared place of business; (b)   issues invoice or bill without […]

How to determine that an Individual is NRI: As per section 6 of the Income-tax Act, an individual is said to be non-resident in India if he is not a resident in India. An individual is deemed to be resident in India in any previous year if he satisfies any of the following conditions: 1.  If […]

‘Funding’ refers to the money required to start and run a business. It is a financial investment in a company for product development, manufacturing, expansion, sales and marketing, office spaces, and inventory. Many startups choose to not raise funding from third parties and are funded by their founders only (to prevent debts and equity dilution). […]

Direct Tax Proposals:- Certain direct tax proposals were introduced, providing relaxation to individual taxpayers and startups to some extent. The individual and corporate tax rates for FY 2021-22 (AY 2022-23) were left unchanged. In a major move, the limit for tax audits under section 44AB has been increased from Rs 5 crore to Rs 10 [...]