The document discusses new procedural requirements for foreign remittances in India, including that as of July 1, 2009 a remitter must fill out an online Form 15CA before making any foreign remittance, and provides background on the documentation changes and an overview of the revised procedure which involves obtaining a certificate from a chartered accountant in Form 15CB and submitting Form 15CA online before the bank will process the remittance.
1. After incorporation, a company must apply for a Permanent Account Number and hold its first board meeting to address various matters.
2. For non-resident investors, remittance of subscription amounts must be routed through an authorized dealer bank and reported to the RBI within 30 days with documents like an inward remittance certificate.
3. The company must allot shares to promoters through a board resolution within 180 days of receiving funds and report the allotment to RBI within 30 more days. Compliance with foreign exchange regulations is important for future capital transactions.
By CA.Shweta Ajmera- TDS on payment made to Non residents u/s section 195,MLI...Shweta Ajmera
Tax deducted at source/ Withholding tax u/s 195 of Income TAx Act in India, Withholding tax liability as per DTAA, MLI Income on TDS on payment made to NR, Form 15CA &Form 15CB compliances. and Declaration , Indemnificaton in recent scenario.
Regards:
CA.Shweta Ajmera
cashwetaajmera@gmail.com
Presentation on Covid impact on financial reporting Taxmann
Coverage of the Webinar
1. COVID-19: PANDEMIC AND THE RIPPLE EFFECT
A. Unprecedented Human, Economic and Financial Crisis facing the world with widespread disruption
B. Due to the significant downturn in the economic activities and the long term impact of the same, the RBI, as well as leading credit rating agencies (Moody, S&P, Fitch, and CRISIL), have predicted a shrinkage of the GDP during FY 2020-21 of 2%-5% and all-time high unemployment.
2. FINANCIAL CHALLENGES & MITIGATING PLANS
A. An entity engaged in tourism and hospitality is heavily dependent upon the tourists from India traveling overseas and foreign nationals visiting India. In the light of COVID-19 outbreak across the globe, the entity has analyzed the likely impact of customers' behavior coupled with bleak employment scenario on its revenue over the next year.
B. This review has indicated possible substantial operating losses during the next financial year i.e. 2020-21.
C. The entity is exploring the possibility of recognizing a certain amount of operating losses as the provision in the financial
statements of the current year itself i.e. 2019-20.
3.AUDITING CHALLENGES
A. COVID -19 caused unprecedented situations
in the businesses and the environment. Changes at such a large scale impacted each industry.
B. Albeit auditors faced many difficulties in auditing areas of financial statements, challenges faced while auditing inventory
has been taken as an example and discussed in the following slides.
4. IMPACT ON FINANCIAL REPORTING
A. Updated financial forecasts for the foreseeable future, but not less than a 12-month period;
B. Updated sensitivity analysis;
C. Forecasted compliance, or lack thereof, with banking and other covenants for the foreseeable future; and
D. Any other information available up to the date the financial statements are authorized for issuance.
5. OTHER KEY CONSIDERATIONS
A. Employee Benefits
B. Internal Financial Control over Financial Reporting
C. Data Confidentiality and Cyber Security
The document provides a summary of recent regulatory changes and updates from the Ministry of Corporate Affairs, Reserve Bank of India, and Securities and Exchange Board of India. Key points include:
1) MCA will receive names of over 500 companies that violated CIS rules from SEBI and take necessary actions to prevent involvement in new companies.
2) Developers of National Manufacturing Investment Zones can now avail of external commercial borrowings under the "approval route" for infrastructure development.
3) RBI has delegated powers to banks to approve reductions in ECB amounts, costs, and drawdown schedules subject to conditions.
1. The document discusses the process and benefits of establishing a Wholly Owned Foreign Enterprise (WOFE) in China. It outlines 11 steps to complete the process, including obtaining approvals from various government agencies and opening business and bank accounts.
2. Some key benefits of establishing a WOFE include the ability to accept payments in China, legally employ Chinese and foreign staff, and obtain legal protections for the business and intellectual property.
3. The minimum registered capital required to establish a WOFE in Kunming is 100,000 Chinese yuan. Higher levels of capital or business in certain industries require approvals from different government agencies.
Taxmann's E-book |COVID-19 & Impact on Financial ReportingTaxmann
Contents Covered in this E-Book
• Non-performance of contractual obligations
• Travel and tourism industry is being hit hard
• Mitigating Factors
• Auditor’s responsibility
• Inventory physical verification
• Going concern assumption
• Other considerations
• Conclusion
Establishing a foreign invested company in vietnamHongDuc To
Establishing a foreign invested company in Vietnam follows several key steps:
1. Registering the investment objectives statement with the provincial government.
2. Obtaining an Enterprise Registration Certificate from the Department of Planning and Investment.
3. Receiving an Investment Registration Certificate, also from the Department of Planning and Investment.
4. Publishing the establishment of the foreign invested company.
Additional steps include opening bank accounts, getting a company seal, and applying for necessary business licenses. Using an experienced law firm can help navigate Vietnam's registration requirements for foreign investors.
The document provides an overview of the Insolvency and Bankruptcy Code of India. Some key points:
- The Code aims to consolidate bankruptcy laws and establish time-bound insolvency resolution processes for companies, individuals, and partnerships.
- It allows for insolvency resolution and liquidation procedures for corporate debtors, individuals, and partnership firms.
- The Code defines financial creditors, operational creditors, and debt. It provides procedures for financial and operational creditors to initiate corporate insolvency resolution processes.
- The Code establishes the Insolvency and Bankruptcy Board of India as the regulator overseeing insolvency professionals and information utilities.
1. After incorporation, a company must apply for a Permanent Account Number and hold its first board meeting to address various matters.
2. For non-resident investors, remittance of subscription amounts must be routed through an authorized dealer bank and reported to the RBI within 30 days with documents like an inward remittance certificate.
3. The company must allot shares to promoters through a board resolution within 180 days of receiving funds and report the allotment to RBI within 30 more days. Compliance with foreign exchange regulations is important for future capital transactions.
By CA.Shweta Ajmera- TDS on payment made to Non residents u/s section 195,MLI...Shweta Ajmera
Tax deducted at source/ Withholding tax u/s 195 of Income TAx Act in India, Withholding tax liability as per DTAA, MLI Income on TDS on payment made to NR, Form 15CA &Form 15CB compliances. and Declaration , Indemnificaton in recent scenario.
Regards:
CA.Shweta Ajmera
cashwetaajmera@gmail.com
Presentation on Covid impact on financial reporting Taxmann
Coverage of the Webinar
1. COVID-19: PANDEMIC AND THE RIPPLE EFFECT
A. Unprecedented Human, Economic and Financial Crisis facing the world with widespread disruption
B. Due to the significant downturn in the economic activities and the long term impact of the same, the RBI, as well as leading credit rating agencies (Moody, S&P, Fitch, and CRISIL), have predicted a shrinkage of the GDP during FY 2020-21 of 2%-5% and all-time high unemployment.
2. FINANCIAL CHALLENGES & MITIGATING PLANS
A. An entity engaged in tourism and hospitality is heavily dependent upon the tourists from India traveling overseas and foreign nationals visiting India. In the light of COVID-19 outbreak across the globe, the entity has analyzed the likely impact of customers' behavior coupled with bleak employment scenario on its revenue over the next year.
B. This review has indicated possible substantial operating losses during the next financial year i.e. 2020-21.
C. The entity is exploring the possibility of recognizing a certain amount of operating losses as the provision in the financial
statements of the current year itself i.e. 2019-20.
3.AUDITING CHALLENGES
A. COVID -19 caused unprecedented situations
in the businesses and the environment. Changes at such a large scale impacted each industry.
B. Albeit auditors faced many difficulties in auditing areas of financial statements, challenges faced while auditing inventory
has been taken as an example and discussed in the following slides.
4. IMPACT ON FINANCIAL REPORTING
A. Updated financial forecasts for the foreseeable future, but not less than a 12-month period;
B. Updated sensitivity analysis;
C. Forecasted compliance, or lack thereof, with banking and other covenants for the foreseeable future; and
D. Any other information available up to the date the financial statements are authorized for issuance.
5. OTHER KEY CONSIDERATIONS
A. Employee Benefits
B. Internal Financial Control over Financial Reporting
C. Data Confidentiality and Cyber Security
The document provides a summary of recent regulatory changes and updates from the Ministry of Corporate Affairs, Reserve Bank of India, and Securities and Exchange Board of India. Key points include:
1) MCA will receive names of over 500 companies that violated CIS rules from SEBI and take necessary actions to prevent involvement in new companies.
2) Developers of National Manufacturing Investment Zones can now avail of external commercial borrowings under the "approval route" for infrastructure development.
3) RBI has delegated powers to banks to approve reductions in ECB amounts, costs, and drawdown schedules subject to conditions.
1. The document discusses the process and benefits of establishing a Wholly Owned Foreign Enterprise (WOFE) in China. It outlines 11 steps to complete the process, including obtaining approvals from various government agencies and opening business and bank accounts.
2. Some key benefits of establishing a WOFE include the ability to accept payments in China, legally employ Chinese and foreign staff, and obtain legal protections for the business and intellectual property.
3. The minimum registered capital required to establish a WOFE in Kunming is 100,000 Chinese yuan. Higher levels of capital or business in certain industries require approvals from different government agencies.
Taxmann's E-book |COVID-19 & Impact on Financial ReportingTaxmann
Contents Covered in this E-Book
• Non-performance of contractual obligations
• Travel and tourism industry is being hit hard
• Mitigating Factors
• Auditor’s responsibility
• Inventory physical verification
• Going concern assumption
• Other considerations
• Conclusion
Establishing a foreign invested company in vietnamHongDuc To
Establishing a foreign invested company in Vietnam follows several key steps:
1. Registering the investment objectives statement with the provincial government.
2. Obtaining an Enterprise Registration Certificate from the Department of Planning and Investment.
3. Receiving an Investment Registration Certificate, also from the Department of Planning and Investment.
4. Publishing the establishment of the foreign invested company.
Additional steps include opening bank accounts, getting a company seal, and applying for necessary business licenses. Using an experienced law firm can help navigate Vietnam's registration requirements for foreign investors.
The document provides an overview of the Insolvency and Bankruptcy Code of India. Some key points:
- The Code aims to consolidate bankruptcy laws and establish time-bound insolvency resolution processes for companies, individuals, and partnerships.
- It allows for insolvency resolution and liquidation procedures for corporate debtors, individuals, and partnership firms.
- The Code defines financial creditors, operational creditors, and debt. It provides procedures for financial and operational creditors to initiate corporate insolvency resolution processes.
- The Code establishes the Insolvency and Bankruptcy Board of India as the regulator overseeing insolvency professionals and information utilities.
The document discusses the requirements and procedures for filing Form 15CA and Form 15CB for making payments to non-residents in India.
Form 15CA is a declaration that must be filed by the remitter along with a certificate from a chartered accountant in Form 15CB when making remittances exceeding Rs. 50,000 or an aggregate of over Rs. 2,50,000 in a year. Form 15CA captures details of the remitter, recipient and remittance amount, while Form 15CB contains the chartered accountant's determination of taxability.
Specific information to be provided in each form is outlined, including the remitter and recipient's identification details, bank transfer information
Analysis Of Section 206 AA & TDS Chart by Blue Consulting (16th July09)Chandan Goyal
Section 206AA makes it mandatory for deductees to provide their PAN number to the deductor, otherwise TDS will be deducted at 20% instead of the normal rate. This applies to payments made to both residents and non-residents of India. It will be effective from April 1, 2010. The document also provides the TDS rates for various types of payments like contracting from April 2009 to March 2010.
current account opening and operating at DAU sbp lahorePalwasha Amir
The document discusses the procedures for opening and operating current accounts at the Deposit Accounts Unit of the State Bank of Pakistan Banking Services Corporation (SBP-BSC). It outlines the key documents and information required to open an account, including documents establishing the applicant's legal status, board resolution authorizing the account, and specimen signatures of authorized signatories. It also describes the process of account opening approval and setup in the bank's system. The document then discusses post-opening account activities like cheque issuance, deposits, clearinghouse operations, and potential issues like deficiencies in documentation, passing errors, and contract maturity failures. It emphasizes vigilance, separation of duties, and monitoring controls to mitigate operational risks.
Application for Lower/No Withholding of Tax: Sec 195 (2) & (3)DVSResearchFoundatio
Objectives & Agenda :
To understand the process involved in making an Application to Assessing Officer for Lower withholding in case of payments to non-residents by the Payer [Sec 195(2)] or the request by the recipient for No withholding [Sec 195(3)]. We shall also look at procedural aspects involved and relevant caveats to be kept in mind.
The document summarizes recent regulatory changes by the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA) in India. It discusses:
1) RBI rationalizing overseas direct investment reporting forms and allowing online reporting.
2) RBI providing details on issuing rupee denominated bonds overseas and instructions on submitting annual performance reports for overseas investments.
3) MCA extending deadlines for filing various e-forms and notifying new e-form versions.
4) The Indian government exempting 10 types of government services from service tax and making amendments to service tax determination rules and point of taxation rules regarding government services.
Presentation on Fema by CA. Sudha G. Bhushan [balance sheet and fema]TAXPERT PROFESSIONALS
The document discusses regulations related to balance sheets, foreign exchange management, and international transactions per the Companies Act, Income Tax Act, and Foreign Exchange Management Act of India. Key points include:
1. Balance sheets must provide a true and fair view of the company's financial position and comply with Schedule VI of the Companies Act.
2. The Income Tax Act contains several sections related to computing income from international transactions and reporting requirements.
3. FEMA regulates foreign exchange transactions and capital/current account transactions, requiring certain approvals and documentation for foreign investment, borrowings, remittances abroad, and other financial activities involving foreign exchange.
Significant FCRA Amendments: What they are and How they affect you !!Suhel Goel
The document summarizes significant amendments to the Foreign Contribution (Regulation) Act of 2010 in India. Key changes include making the registration, permission and renewal processes online through a single form. Documentation like applications and attachments must now be digitally filed. Payment is made through an online gateway and correspondence with the Ministry occurs through email. Annual returns must include audited financial statements and foreign-funded organizations must publicly disclose more details of contributions received. The amendments aim to modernize the process and increase transparency.
KB Advisory & Co. provides company law and secretarial services as well as services relating to the Reserve Bank of India, Foreign Investment Promotion Board, and Ministry of Information and Broadcasting. Their services include conducting board and shareholder meetings, filing forms and maintaining registers required under company law, assisting with obtaining director identification numbers and digital signature certificates, and liaising with regulatory authorities on matters relating to foreign investment. They are based in Mumbai and Thane, India.
Budget synopsis by Blue Consulting (March 19th 2012)Chandan Goyal
The document provides a synopsis of direct and indirect tax proposals from the Indian budget presented on March 16, 2012. Key direct tax proposals include no change in corporate tax rates, removal of cascading dividend distribution tax, and increased thresholds for tax audits and presumptive taxation. International tax proposals focus on advance pricing agreements, transfer pricing regulations, and clarifications overriding previous court judgments. Personal tax proposals include an increased basic exemption limit and widening of the 20% tax slab.
The document summarizes recent updates to the Companies Act 2013 in India, including increasing the threshold for mandatory appointment of a Company Secretary to Rs. 10 crores, expanding requirements for secretarial audit reports, introducing new forms like SPICe+ for easier incorporation, extending various filing timelines due to COVID-19, and allowing meetings to be conducted virtually.
The document discusses the key challenges around recent amendments to Schedule III and CARO 2020 under the Companies Act, 2013. It provides an overview of the major additional disclosure requirements introduced for financial statements as well as the auditor's reporting order (CARO). The amendments are aimed at increasing transparency and improving corporate governance and compliance. However, they also place greater responsibilities on company management for financial reporting and on auditors for their reporting. Auditors now need to take additional precautions to properly comply with the stringent requirements of CARO 2020.
This document discusses Form 15 CB/15 CA and provides guidance on properly completing and using these forms.
It begins by outlining the target audience for the discussion, which includes professionals looking to start or expand their practice in this area as well as those without much experience.
The presentation then covers the key takeaways, which are understanding the objective and importance of Form 15 CB and 15 CA, the procedures and processes for implementation, how to determine the nature of remittances, understanding chargeability under the Income Tax Act and DTAAs, and how to protect one's own and client's interests.
It emphasizes the growing importance of Form 15 CA/CB due to increased cross-border payments, revenue
This document discusses various aspects of section 195 of the Indian Income Tax Act, which deals with tax deducted at source (TDS) for payments made to non-residents. Some key points discussed include:
- Section 195 mandates any person making payments such as interest, royalty or fees for technical services to non-residents to deduct TDS at the time of payment.
- The rate of TDS depends on factors such as whether a lower treaty rate can be applied based on a tax residency certificate.
- Non-compliance can attract penalties for the payer such as interest, fines and in some cases prosecution.
- Exceptions apply when a lower or nil withholding certificate is obtained
The document summarizes recent changes to India's foreign exchange laws as announced by the Reserve Bank of India in various circulars. Key changes include removing the USD 20 million limit for buyer's credit extended to foreign buyers for exports, liberalizing FDI limits in the insurance sector to 49% with certain conditions, enabling online reporting of foreign investment forms through the e-Biz portal, and dispensing with the requirement to declare software and certain goods exports in the Shipping Declaration Form. The document provides contact information for any clarifications on the foreign exchange law updates.
The document provides updates on various corporate and regulatory matters from July 2011. It discusses several clarifications and changes from the Ministry of Corporate Affairs, including that annual filings must now be completed before event-based forms can be accepted, Lok Adalats will help settle prosecution cases, and video conferencing will be mandatory for shareholder meetings of listed companies starting in fiscal year 2012-2013. It also covers new fast track exit procedures for defunct companies and the implementation of digitally signed certificates issued by the Registrar of Companies.
The document provides updates on corporate affairs in India for July 2011. It summarizes new rules, clarifications, and initiatives from regulatory bodies like the Ministry of Corporate Affairs, Central Board of Direct Taxes, Reserve Bank of India, and Securities and Exchange Board of India. Key points include new rules for cost auditing, fast track exit for defunct companies, digital signing of certificates by the Registrar of Companies, and income tax exemptions for individual income up to Rs. 5 lakhs.
The document discusses the process for an Indian company to file Form FC-GPR with the Reserve Bank of India (RBI) when receiving foreign investment under the automatic route. It states that within 30 days of receiving share capital, the Indian company must file Form ARF, within 180 days must allot shares, and within 30 days of allotment must file Form FC-GPR. It also notes that beginning February 8, 2016, these forms must be filed online through the e-Biz portal rather than physically, as mandated by an RBI circular.
The document provides templates and guidance for various letters and reports related to audit engagements, including:
1. Engagement letters for audit engagements of cooperative societies and those requiring Comptroller and Auditor General (CAG) audit.
2. Templates for audit reports covering different entities like banks, private companies, societies, and public sector organizations. Report types include tax audit reports, limited review reports, and consolidated audit reports.
3. Guidance on letters of representation, notices, board resolutions, minutes, legal documents, deeds, affidavits, agreements, and wills that may be required as part of an audit.
5 Major Impacts of GST on E-Commerce IndustryChandan Goyal
In this 10 minutes video, you will get to know about 5 Major Impacts of GST on E-Commerce Industry so that you can plan proactively. One such major impact if mandatory registration requirement of sellers who are selling their goods or services through the e-commerce platform, irrespective of their turnover.
Watch out to know the remaining 4 impacts of GST on e-commerce industry.
5 major changes related to International Taxation in Union Budget'2017Chandan Goyal
In this 13 minutes video, I'll explain 5 major changes related to International Taxation in Union Budget'2017, which you must know.
One of the most important changes is the introduction of "Secondary Adjustment" in transfer pricing which is based on international best practices. The Secondary Adjustment would be deemed as advance to an associated enterprise if primary adjustment amount is not received within prescribed time limit and deemed interest would be applicable, taxable as Income.
More Related Content
Similar to Foreign Remittance - Procedural Changes
The document discusses the requirements and procedures for filing Form 15CA and Form 15CB for making payments to non-residents in India.
Form 15CA is a declaration that must be filed by the remitter along with a certificate from a chartered accountant in Form 15CB when making remittances exceeding Rs. 50,000 or an aggregate of over Rs. 2,50,000 in a year. Form 15CA captures details of the remitter, recipient and remittance amount, while Form 15CB contains the chartered accountant's determination of taxability.
Specific information to be provided in each form is outlined, including the remitter and recipient's identification details, bank transfer information
Analysis Of Section 206 AA & TDS Chart by Blue Consulting (16th July09)Chandan Goyal
Section 206AA makes it mandatory for deductees to provide their PAN number to the deductor, otherwise TDS will be deducted at 20% instead of the normal rate. This applies to payments made to both residents and non-residents of India. It will be effective from April 1, 2010. The document also provides the TDS rates for various types of payments like contracting from April 2009 to March 2010.
current account opening and operating at DAU sbp lahorePalwasha Amir
The document discusses the procedures for opening and operating current accounts at the Deposit Accounts Unit of the State Bank of Pakistan Banking Services Corporation (SBP-BSC). It outlines the key documents and information required to open an account, including documents establishing the applicant's legal status, board resolution authorizing the account, and specimen signatures of authorized signatories. It also describes the process of account opening approval and setup in the bank's system. The document then discusses post-opening account activities like cheque issuance, deposits, clearinghouse operations, and potential issues like deficiencies in documentation, passing errors, and contract maturity failures. It emphasizes vigilance, separation of duties, and monitoring controls to mitigate operational risks.
Application for Lower/No Withholding of Tax: Sec 195 (2) & (3)DVSResearchFoundatio
Objectives & Agenda :
To understand the process involved in making an Application to Assessing Officer for Lower withholding in case of payments to non-residents by the Payer [Sec 195(2)] or the request by the recipient for No withholding [Sec 195(3)]. We shall also look at procedural aspects involved and relevant caveats to be kept in mind.
The document summarizes recent regulatory changes by the Reserve Bank of India (RBI) and the Ministry of Corporate Affairs (MCA) in India. It discusses:
1) RBI rationalizing overseas direct investment reporting forms and allowing online reporting.
2) RBI providing details on issuing rupee denominated bonds overseas and instructions on submitting annual performance reports for overseas investments.
3) MCA extending deadlines for filing various e-forms and notifying new e-form versions.
4) The Indian government exempting 10 types of government services from service tax and making amendments to service tax determination rules and point of taxation rules regarding government services.
Presentation on Fema by CA. Sudha G. Bhushan [balance sheet and fema]TAXPERT PROFESSIONALS
The document discusses regulations related to balance sheets, foreign exchange management, and international transactions per the Companies Act, Income Tax Act, and Foreign Exchange Management Act of India. Key points include:
1. Balance sheets must provide a true and fair view of the company's financial position and comply with Schedule VI of the Companies Act.
2. The Income Tax Act contains several sections related to computing income from international transactions and reporting requirements.
3. FEMA regulates foreign exchange transactions and capital/current account transactions, requiring certain approvals and documentation for foreign investment, borrowings, remittances abroad, and other financial activities involving foreign exchange.
Significant FCRA Amendments: What they are and How they affect you !!Suhel Goel
The document summarizes significant amendments to the Foreign Contribution (Regulation) Act of 2010 in India. Key changes include making the registration, permission and renewal processes online through a single form. Documentation like applications and attachments must now be digitally filed. Payment is made through an online gateway and correspondence with the Ministry occurs through email. Annual returns must include audited financial statements and foreign-funded organizations must publicly disclose more details of contributions received. The amendments aim to modernize the process and increase transparency.
KB Advisory & Co. provides company law and secretarial services as well as services relating to the Reserve Bank of India, Foreign Investment Promotion Board, and Ministry of Information and Broadcasting. Their services include conducting board and shareholder meetings, filing forms and maintaining registers required under company law, assisting with obtaining director identification numbers and digital signature certificates, and liaising with regulatory authorities on matters relating to foreign investment. They are based in Mumbai and Thane, India.
Budget synopsis by Blue Consulting (March 19th 2012)Chandan Goyal
The document provides a synopsis of direct and indirect tax proposals from the Indian budget presented on March 16, 2012. Key direct tax proposals include no change in corporate tax rates, removal of cascading dividend distribution tax, and increased thresholds for tax audits and presumptive taxation. International tax proposals focus on advance pricing agreements, transfer pricing regulations, and clarifications overriding previous court judgments. Personal tax proposals include an increased basic exemption limit and widening of the 20% tax slab.
The document summarizes recent updates to the Companies Act 2013 in India, including increasing the threshold for mandatory appointment of a Company Secretary to Rs. 10 crores, expanding requirements for secretarial audit reports, introducing new forms like SPICe+ for easier incorporation, extending various filing timelines due to COVID-19, and allowing meetings to be conducted virtually.
The document discusses the key challenges around recent amendments to Schedule III and CARO 2020 under the Companies Act, 2013. It provides an overview of the major additional disclosure requirements introduced for financial statements as well as the auditor's reporting order (CARO). The amendments are aimed at increasing transparency and improving corporate governance and compliance. However, they also place greater responsibilities on company management for financial reporting and on auditors for their reporting. Auditors now need to take additional precautions to properly comply with the stringent requirements of CARO 2020.
This document discusses Form 15 CB/15 CA and provides guidance on properly completing and using these forms.
It begins by outlining the target audience for the discussion, which includes professionals looking to start or expand their practice in this area as well as those without much experience.
The presentation then covers the key takeaways, which are understanding the objective and importance of Form 15 CB and 15 CA, the procedures and processes for implementation, how to determine the nature of remittances, understanding chargeability under the Income Tax Act and DTAAs, and how to protect one's own and client's interests.
It emphasizes the growing importance of Form 15 CA/CB due to increased cross-border payments, revenue
This document discusses various aspects of section 195 of the Indian Income Tax Act, which deals with tax deducted at source (TDS) for payments made to non-residents. Some key points discussed include:
- Section 195 mandates any person making payments such as interest, royalty or fees for technical services to non-residents to deduct TDS at the time of payment.
- The rate of TDS depends on factors such as whether a lower treaty rate can be applied based on a tax residency certificate.
- Non-compliance can attract penalties for the payer such as interest, fines and in some cases prosecution.
- Exceptions apply when a lower or nil withholding certificate is obtained
The document summarizes recent changes to India's foreign exchange laws as announced by the Reserve Bank of India in various circulars. Key changes include removing the USD 20 million limit for buyer's credit extended to foreign buyers for exports, liberalizing FDI limits in the insurance sector to 49% with certain conditions, enabling online reporting of foreign investment forms through the e-Biz portal, and dispensing with the requirement to declare software and certain goods exports in the Shipping Declaration Form. The document provides contact information for any clarifications on the foreign exchange law updates.
The document provides updates on various corporate and regulatory matters from July 2011. It discusses several clarifications and changes from the Ministry of Corporate Affairs, including that annual filings must now be completed before event-based forms can be accepted, Lok Adalats will help settle prosecution cases, and video conferencing will be mandatory for shareholder meetings of listed companies starting in fiscal year 2012-2013. It also covers new fast track exit procedures for defunct companies and the implementation of digitally signed certificates issued by the Registrar of Companies.
The document provides updates on corporate affairs in India for July 2011. It summarizes new rules, clarifications, and initiatives from regulatory bodies like the Ministry of Corporate Affairs, Central Board of Direct Taxes, Reserve Bank of India, and Securities and Exchange Board of India. Key points include new rules for cost auditing, fast track exit for defunct companies, digital signing of certificates by the Registrar of Companies, and income tax exemptions for individual income up to Rs. 5 lakhs.
The document discusses the process for an Indian company to file Form FC-GPR with the Reserve Bank of India (RBI) when receiving foreign investment under the automatic route. It states that within 30 days of receiving share capital, the Indian company must file Form ARF, within 180 days must allot shares, and within 30 days of allotment must file Form FC-GPR. It also notes that beginning February 8, 2016, these forms must be filed online through the e-Biz portal rather than physically, as mandated by an RBI circular.
The document provides templates and guidance for various letters and reports related to audit engagements, including:
1. Engagement letters for audit engagements of cooperative societies and those requiring Comptroller and Auditor General (CAG) audit.
2. Templates for audit reports covering different entities like banks, private companies, societies, and public sector organizations. Report types include tax audit reports, limited review reports, and consolidated audit reports.
3. Guidance on letters of representation, notices, board resolutions, minutes, legal documents, deeds, affidavits, agreements, and wills that may be required as part of an audit.
Similar to Foreign Remittance - Procedural Changes (20)
5 Major Impacts of GST on E-Commerce IndustryChandan Goyal
In this 10 minutes video, you will get to know about 5 Major Impacts of GST on E-Commerce Industry so that you can plan proactively. One such major impact if mandatory registration requirement of sellers who are selling their goods or services through the e-commerce platform, irrespective of their turnover.
Watch out to know the remaining 4 impacts of GST on e-commerce industry.
5 major changes related to International Taxation in Union Budget'2017Chandan Goyal
In this 13 minutes video, I'll explain 5 major changes related to International Taxation in Union Budget'2017, which you must know.
One of the most important changes is the introduction of "Secondary Adjustment" in transfer pricing which is based on international best practices. The Secondary Adjustment would be deemed as advance to an associated enterprise if primary adjustment amount is not received within prescribed time limit and deemed interest would be applicable, taxable as Income.
Finance Bill' 2017 : A Crisp Analysis of Income Tax ProvisionsChandan Goyal
Corporate tax for domestic companies having turnover up to INR 50 crore has been reduced from 30% to 25%. Period for claiming deduction for start-up increased.Provision of “Secondary Adjustment” introduced in Transfer Pricing. Interest deduction restricted to 30% of EBIDTA. Limit of cash expenses reduced to half. Limit of receipt in cash restricted with penal provisions. Rationalization of provisions of Section 10AA.
Budget 2015 : A crisp analysis of Income Tax provisions by Blue Consulting Pv...Chandan Goyal
This document provides an analysis of key changes proposed to India's income tax provisions. Some key points include:
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- Wealth tax has been proposed to be abolished to simplify tax administration.
- Tax incentives like additional depreciation and investment allowance have been introduced for manufacturing sectors in Andhra Pradesh and Telangana.
- Rates of TDS on royalty and FTS payments to non-residents have been reduced from 25% to 10%.
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Impact of amendments in Provident Fund regulationsChandan Goyal
The document discusses key recent amendments made to India's Provident Fund regulations that have significantly increased the wage ceiling and impacted employers and employees. Specifically:
1. The wage ceiling eligible for PF contributions has increased over 125% from Rs. 6,500 to Rs. 15,000 per month. This has increased employers' monthly PF contributions by around 125% for employees earning over Rs. 15,000 and reduced take-home pay for employees by around Rs. 2,000.
2. The PF department has started inspecting companies to ensure they are not splitting wages to avoid PF liability. The document analyzes the legal definition of "basic wages" and exceptions.
3. It provides solutions for employers
This document provides an overview of the Goods and Services Tax (GST) that is expected to be implemented in India from April 1, 2016. It discusses the background and need for GST, the proposed dual GST model of CGST and SGST, which existing taxes will be subsumed under GST, how interstate transactions will be taxed, key issues still to be addressed, and the important role information technology will play in the success of GST implementation. It also provides guidance to companies on preparing for the transition to the new indirect tax system.
Budget 2014 - Crisp analysis of service tax provisions by Blue Consulting Pvt...Chandan Goyal
The document summarizes key proposed changes to India's service tax proposals from the July 2014 budget. Some notable changes include certain advertising services becoming taxable, radio taxi services being taxed, and some exemptions for clinical research organizations and educational institutions being removed while others for RBI and bio-medical waste operators are introduced. The penalties and procedures around adjudication and appeals are also changing, with time limits for completion and no fees for stay applications.
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BC is pleased to share a whitepaper on Budget 2013- Service Tax provisions, crisply analyzed, ready for your personal use.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision.
Budget 2013 - Crisp analysis of Income Tax Provisions by Blue Consulting (5th...Chandan Goyal
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Relevant Sections and the dates of applicability have been mentioned for each taxation provision.
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The format has been designed keeping in mind your reading convenience.
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Regards,
Chandan Goyal
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This document discusses an upcoming webinar on XBRL for corporate secretaries and CFOs presented by CA Chandan Goyal. XBRL (eXtensible Business Reporting Language) is a standard for electronic communication of business and financial data that has been mandated by India's Ministry of Corporate Affairs for certain companies. The webinar will cover hot button issues for corporate secretaries and CFOs regarding XBRL compliance requirements, taxonomy rules, the filing process, and service provider selection.
Xbrl conversion services blue consultingChandan Goyal
The document provides a detailed presentation on XBRL conversion services. It discusses the background of XBRL, the need for XBRL in business reporting, the MCA mandate requiring Indian companies to file financial reports in XBRL format, and the typical process involved in XBRL conversion including tagging requirements, review process, and factors considered in determining fees.
This document provides an overview of XBRL (eXtensible Business Reporting Language) and defines commonly used XBRL terms. XBRL is an XML-based language that allows for the electronic communication of business and financial data. It was created in 1998 and has been adopted by many countries and organizations to reduce costs and improve the preparation, analysis, and communication of business information. The document also provides recommendations for further reading on XBRL and an example XBRL process flow.
This is a web based platform which offers following benefits to a CA firm :
- Networking with CA firms across India
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- Posting jobs to hire Articles and CA’s
Budget Analysis by Blue Consulting (July 132009)Chandan Goyal
It plainly talks about Title of changes made, relevant Section or Rules, analysis of changes and effective date from which these changes shall be applicable in a tabular format.
1. Foreign remittance – procedural changes
Blue Consulting Pvt. Ltd.
Doing common things, Uncommonly well.
July 13’ 2009 Blue Consulting Pvt. Ltd.
A Finance & Accounts outsourcing company
A Finance & Accounts Outsourcing Company
2. Context
Blue Consulting Pvt. Ltd.
(A Finance & Accounts Outsourcing Company)
2 www.blueconsulting.co.in
Hi,
You may please be aware that w.e.f. 1st July’2009, a remitter
is required to fill an online Form 15CA on the website www.tin-
nsdl.com before making any foreign remittance.
In the last few days, we have received many queries and
inquiries related to online submission of Form 15CA.
In the next few pages, we have tried to address those queries
by providing the background of documentation and procedure
of documentation (with the help of a diagram).
Trust, it would be useful to you.
Regards,
Chandan Goyal
3. Background of documentation
Blue Consulting Pvt. Ltd.
(A Finance & Accounts Outsourcing Company)
3 www.blueconsulting.co.in
As per initial understanding of Section 195 of the Income Tax Act,
1961 (‘Act’), an undertaking from the remitter and a certificate from
a practicing Chartered Accountant (CA) was required for a foreign
remittance where TDS (withholding tax) was deductible as per the
provisions of Section 195 of the Act.
Accordingly, Reserve Bank of India (RBI) advised all the authorized
banks to obtain the aforesaid undertaking and certificate from the
remitter before making any foreign remittance.
Few authorized banks enquired from RBI whether they are required
to obtain the aforesaid undertaking and certificate for each and every
foreign remittance including the trade remittance.
RBI clarified with Central Board of Direct Tax (CBDT) about it and
CBDT replied that aforesaid undertaking and certificate shall be
required for every foreign remittance (other than Salary)
because Section 195 of the IT Act is not limited to interest income
and it takes into account business income also.
4. …contd.
Blue Consulting Pvt. Ltd.
(A Finance & Accounts Outsourcing Company)
4 www.blueconsulting.co.in
Accordingly, RBI issued A. P. (DIR Series) Circular No. 03 Dated
July 19,2007 to all the authorized banks and instructed them to
obtain an undertaking and CA certificate from remitter for each and
every foreign remittance covered under Section 195 of the Act.
Substantial increase in foreign remittances made the manual
handling and tracking of certificates difficult for the Income Tax
Department. To monitor and track transactions in a timely manner,
Section 195 was amended vide Finance Act, 2008 by inserting Sub
Section (6) to allow CBDT to prescribe rules for electronic filing of
the undertaking.
CBDT notified the rules (Rule 37BB) for electronic filing through
Notification No. 30/2009 [F. NO. 142/19/2007-TPL]/S.O. 857(E),
DATED 25-3-2009 which prescribed two forms 15CA (for
electronic filing) and Form 15CB (format of CA certificate) to be
effective from 1st July’2009.
Recently, CBDT came out with a Circular No. 04/2009 dated 29th
June’2009 which prescribed the procedure for furnishing
information regarding remittances being made to non-residents.
5. Revised procedure at a glance
Blue Consulting Pvt. Ltd.
(A Finance & Accounts Outsourcing Company)
5 www.blueconsulting.co.in
1. Click on the option:
Obtain a certificate from CA in Access the website to fill Form
E-Furnish : Form 15CA
Remitter Form 15CB for the foreign 15CA
remittance to be made 2. Choose ‘Generation of
www.tin-nsdl.com
Form 15CA’
Fill up the Form 15CA: After filling up the complete Sign this form. It needs to be
Part A- It requires Take print out of the Form 15CA signed by the person who is
information in Form 15CA,
information about Remitter, which shall be system authorized to sign the annual
Beneficiary and CA. submit the form as per the
generated and bear an income tax return of the
Part B – It is a replica of Form instructions given on the acknowledgement no. remitter or a person duly
15CB webpage authorized by him in writing.
Submit the signed Form 15CA
and Form 15CB in duplicate to Bank will forward a copy of
Bank will remit the amount to
the bank along with other Form 15CA and 15CB to the
the non-resident
payment related documents i.e. Assessing Officer of remitter
invoice, FEMA declaration etc.
6. Important points
Blue Consulting Pvt. Ltd.
(A Finance & Accounts Outsourcing Company)
6 www.blueconsulting.co.in
1. There is some misunderstanding regarding submission of system generated copy of 15CA with the Income Tax Department. From the
plain reading of Notification No. 30/2009 dated 25-03-09, it appears that signed copy of Form 15CA (system generated) is also to be
submitted with the Income Tax department by the remitter. However, Circular No. 04/2009 dated 29th June’2009 make it amply clear
that remitter need not to submit the signed copy of Form 15CA (system generated) to the Income tax department. Remitter will only
submit it to the bank and a copy of signed Form 15CA shall be forwarded by that bank to the Assessing Officer of the remitter.
2. As per above referred Circular, a remitter who has obtained a certificate from the Assessing Officer regarding the rate at or
amount on which tax is to be deducted is not required to obtain a certificate from the CA in Form 15CB.
However, he is required to furnish the information in Form 15CA and submit it along with a copy of the certificate from the Assessing
Officer as per procedure mentioned on the previous page.
7. About us Blue Consulting provides value added and high
quality Finance & Accounts Outsourcing Services
Blue Consulting Pvt. Ltd.
through its contemporary onsite service delivery
(A Finance & Accounts Outsourcing Company)
7 model. Our goal is to be a trusted partner in your
www.blueconsulting.co.in
business by bringing value and serving as an
integral part of your set up.
For any professional advise required in relation to budget
provisions, please contact us : Blue Consulting, or BC, has its roots in a well
established, four decade old chartered accountants
firm. Utilizing forty years of industry experience and
Chandan Goyal functional expertise, BC looks innovatively beyond
Director- Business Development standard solutions to develop new insights, drive
tangible results, and empower clients to achieve
chandan.goyal@blueconsulting.co.in
greater results.
+91 98104 10421 For further detail, please log on to:
+91 120 4230649 www.blueconsulting.co.in
Delhi Pune
“A dream is not that
which you see in sleep
A dream is that
which does not let you sleep”
Disclaimer
This publication is intended as a service to clients to update them about important provisions related to documentation part of foreign remittances. It has been prepared for
general guidance on matters of interest only, and does not constitute professional advice. No person should act upon the information contained in this publication without
obtaining specific professional advice. Due care has been taken while compiling the information however no representation or warranty (express or implied) is given as to the
accuracy or completeness of the information contained in this publication