StartUp India initiative

Government of India has come up with a new initiative to encourage the Startup entities:

Let’s see what it is…..!!!

Start-Up India:

1.      Purpose of this Initiative:

To protect and promote Intellectual Property Rights of Startups and thus encourage innovation and creativity among them

2.      Who are eligible to this scheme:

Should satisfy all the below conditions

a.      An entity¹, incorporated or registered in India not prior to 5 year

b.      Annual turnover² not exceeding INR 25 crores in any preceding financial year

c.       Objective of the entity shall be innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property

d.      Entity should not be formed by splitting up, or reconstruction, of a business already in existence.

e.      Certification shall be obtained from the Inter-Ministerial Board to avail tax benefits by such Startup.

1.      Entity means,

-          Private Limited Company

-          Registered Partnership Firm

-          Limited Liability Partnership

2.      Turnover mean,

As stated in companies Act 2013, turnover means, the aggregate value of the realisation of amount made from the sale, supply or distribution of goods or on account of services rendered, or both, by the company during a financial year;

3.      Benefits from this initiative:

a.      When Startup entites’ shares are subscribed by venture capital funds, and consideration is received by Startup entites, is over and above the FMV, then such excess consideration in exempt from Income tax in the hands of Startup entites.

b.      Profits of Startup initiatives are exempted from income-tax for a period of 3 years, provided Startup entities does not distribute dividends.

c.       Capital Gains are exempted from Income tax if such capital gains are invested in Startup entities.

d.      SEBI provides Funding Support to Startups indirectly through registered venture capital funds.

e.      Credit guarantee mechanism through National Credit Guarantee Trust Company (NCGTC)/ SIDBI is being envisaged to Banks for providing Venture Debts to Startups.

Hope this article benefits you…!!!

Your valued support/feedback/comments are always welcomed..…!!!

Special thanks to my colleges for contributing for this article.

Source:http://dipp.nic.in/English/Investor/startupIndia/StartupIndia_ActionPlan_16January2016.pdf

Understanding Case Law citations in India

Understanding Case Law citations in India:

Every one of us would have come across one or the other case laws in our CA curriculum. Lets understand part by part of a Case Law Name:

For the purpose of understanding, let’s take a Case Law for example and proceed.

Example:

CIT v. Saurashtra Cement Ltd. (2010) 325 ITR 422 (SC)

 

Parts	Particulars	Description
Part 1	CIT	One who filed the Case, called as Appellant/Plaintiff/Petitioner.
Part 2	V.	Versus
Part 3	Saurashtra Cement Ltd	Defendant/Respondent
Part 4	2010	Year of Publishing of the judgement in the Official Journal**.
Part 5	325	Serial number of the “Journal” published in the year 2010.
Part 6	ITR	Income Tax Reports, This is the name of the book or organisation publishing this case law.
Part 7	422	Page no. in which the case law begins in the respective Journal
Part 8	SC	Supreme Court

**Journals:

Every Case law shall be published by the respective courts in one or many Journals (Like Law Books).

Some of the Journals publishing the case laws are:

Publishers/ Reporters	Full Form
AIR	All India Reporter
ITR	Income Tax Reports
SCC	Supreme Court Cases
LJ	Law Journal
SCC (Cri)	SCC Criminal Reports
SCC (L&S)	SCC Labour & Services Reports
DTR	Daily Tax Reports
ITD	Income Tax tribunal Decisions
SOT	Select Order of Tribunals

I hope this clarifies what a Case Law citation is all about.

Swachh Bharat Cess - Cenvat Credit available ?

Dear Friends,

Question running in every CA folks mind is that,whether Cenvat Credit of SBC is available ?

As per FAQ.No.14 by CBEC, SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax.

It is clear that SBC cannot be availed and cannot be utilised for paying liability.

All the FAQs are available at the below link.

http://www.cbec.gov.in/resources//htdocs-cbec/press-release/faqsbc.pdf;jsessionid=01C369EB7E3AF4B4305E04C60E78A3CB

In my opinion, providing no CENVAT Credit of the SBC can lead to cascading effect which is not in accordance with the Value Added regime or the Goods and Service tax (GST) regime. So, looking for further clarifications from the CBEC department.

Suggested Mobile Applications for CA Students

Dear CA Folks,

Below are some of the suggested mobile applications and its links that a CA student should be having to have a day to day updates on his CA studies, academic updates, handy day to day useful Acts

Suggested Mobile Applications:

Application Name	Android Play Store Link
FinApp for CA CPT IPCC Final	https://play.google.com/store/apps/details?id=com.sraoss.caapp&hl=en
CAKART	https://play.google.com/store/apps/details?id=cakart.in&hl=en
Cacharya - CA CPT IPCC Final	https://play.google.com/store/apps/details?id=com.cacharya&hl=en
Taxmann Android Apps	https://play.google.com/store/apps/details?id=com.adodis.taxmann
Companies Act 2013 + Rules	https://play.google.com/store/apps/details?id=com.mmjc.ca13&hl=en
Income Tax Act 1961	https://play.google.com/store/apps/details?id=com.rachittechnology.incometaxact1961
Income Tax Rules 1962	https://play.google.com/store/apps/details?id=com.rachittechnology.IncomeTaxRules1962

Please note that above post is not meant for any kind advertisement. 

Section - 10(10D) of Income Tax Act, 1961

Extracts of Section 10(10D) of Income Tax Act:

(10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than—

  (a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or

  (b) any sum received under a Keyman insurance policy; or

  (c) any sum received under an insurance policy issued on or after the 1st day of April, 2003 but on or before the 31st day of March, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured; or

  (d) any sum received under an insurance policy issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the policy exceeds ten per cent of the actual capital sum assured:

Provided that the provisions of sub-clauses (c) and (d) shall not apply to any sum received on the death of a person:

Provided further that for the purpose of calculating the actual capital sum assured under sub-clause (c), effect shall be given to theExplanation to sub-section (3) of section 80C or the Explanation to sub-section (2A) of section 88, as the case may be:

³⁶[Provided also that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is—

  (i) a person with disability or a person with severe disability as referred to in section 80U; or

 (ii) suffering from disease or ailment as specified in the rules made under section 80DDB,

the provisions of this sub-clause shall have effect as if for the words "ten per cent", the words "fifteen per cent" had been substituted.]

Explanation 1.—For the purposes of this clause, "Keyman insurance policy" means a life insurance policy taken by a person on the life of another person who is or was the employee of the first-mentioned person or is or was connected in any manner whatsoever with the business of the first-mentioned person ³⁶[and includes such policy which has been assigned to a person, at any time during the term of the policy, with or without any consideration];

Explanation 2.—For the purposes of sub-clause (d), the expression "actual capital sum assured" shall have the meaning assigned to it in the Explanation to sub-section (3A) of section 80C;

Nothing big deal in this section:

Let me explain this section in this way:

Firstly, any sum received under a life insurance policy including bonus on such policy is EXEMPT from tax. But the below sums received, are taxable:

(1)    Sum received under an insurance policy commenced on/after 01-Apr-2003 but on/before the 31-Mar-2012 on which premium payable for any of the years during the policy period exceeds 20% of the actual capital sum assured

(2)    Sum received under an insurance policy commenced on/after 01-Apr-2012 on which premium payable for any of the years during the policy period exceeds 10% of the actual capital sum assured

(3)    Sum received under a KIP, Keyman insurance policy (Example for KIP policy structure:-Policy taken by your employer and employer paid premiums and you received the maturity amount)

(4)    Sum received under sub-section (3) of section 80DD (In case of death of person taking responsibility of a disabled person, the dependant gets the maturity amount and its taxable)

(5)    Sum received under insurance policy, for person with severe disability or suffering from disease mentioned in Section 80DDB, commenced on/after 01-Apr-2013 on which premium payable for any of the years during the policy period exceeds 15% of the actual capital sum assured

If the sum mentioned in point (1) & (2) above are received on the death of a person is EXEMPT.

In a NUT SHELL

Sl. No	Cases	Taxability
1	Maturity amount received for a policy commenced before 01-Apr-2003 (% of annual Premium payable on the policy is irrelevant)	Exempt
2	Maturity amount received for a policy commenced on/after 01-Apr-2003 and before 31-Mar-2012 (21% of Premium is payable on the policy every year)	Taxable
3	Maturity amount received for a policy commenced on/after 01-Apr-2003 and before 31-Mar-2012 (20% of Premium is payable on the policy every year)	Exempt
4	Maturity amount received for a policy commenced on/after 01-Apr-2012 (11% of Premium is payable on the policy every year)	Taxable
5	Maturity amount received for a policy commenced on/after 01-Apr-2012 (10% of Premium is payable on the policy every year)	Exempt
6	Maturity amount received for any policy on the death of a person (% of annual Premium payable on the policy is irrelevant)	Exempt
7	Maturity amount received for any KIP. (% of annual Premium payable on the policy is irrelevant)	Taxable
8	Maturity amount received as per section 80DD(3). (% of annual Premium payable on the policy is irrelevant)	Taxable
9	Maturity amount received as per section 80DDB, commenced on/after 01-Apr-2013 (16% of Premium is payable on the policy every year)	Taxable
10	Maturity amount received as per section 80DDB, commenced before 01-Apr-2013 (% of annual Premium payable on the policy is irrelevant)	Exempt

Learning for CA Students from Sachin Tendulkar's Career

Sachin completed his 100th International Centuries on March 16th, 2012 which is a milestone for him and every batsman wants to achieve that. Sachin got this achievement after 22 years  which is not easy for any person to play such long time with consistency. This is the reason that why the Cricket Experts named him as Master Blaster’s and God of Cricket also. If we look upon the life and career of Sachin Tendulkar we may found many great lessons to be learnt from his life and career.

-

Decision Making:

As all of us know that Sachin Tendulkar was also the most criticized batsman even by many of the Senior Cricketers of various countries. But Sachin Tendulkar never minded these criticism and always taken the decision of himself and not due to pressure of others. As per Sachin criticics of the persons haven’t taught him to play cricket. That’s why he never minded his criticism. This may be the attitude of a Master only

Similarly in our personal life as well as professional life we also heard too many criticism and take decision which are based on that criticism and not of own. Decision making based on the criticism shows that we have not believed on ourself or we have lack of self confidence to some extent. Thus we should learn from Master Blaster that decision should be come from inside of us and not from the public or other’s criticism. Thus never mind criticism.

Be ready for Change and Adapt the same without any resistance:-

At the time of starting of Sachin Careers Test Cricket was more popular then one day International Cricket. Sachin perform in both of these frame of cricket and now a days when 20-20 matches are being so popular he manages to score in that format at high strick rates. This shows the capability of Master Blaster that he is ready for all types of format in cricket and adapt then effectively.

Similarly in our personal life as well as professional life we have to face too many changes especially in professional life. Thus we should get ready for all this changes if we want to have a great career of own.

Practice Makes a Man Perfect:-

This is a well said quote which is always followed by the Sachin Tendulkar. Sachin Tendulkar played cricket for close to 24 years but he use to practice like he just started his career.

Similarly in our personal life as well as professional life often we said that we have experience of so many years so we need not more practice of any thing else. This is a wrong thinking of us. There is always a scope of improvement and we can’t say that I know everything.

Stay Focussed always:-

A career of around 24 years which includes 200 tests and 463 one day games shows the concentration level of Master Blaster. He has played the most number of One day and Test Matches as compare to any other player.

Similarly in our personal as well as professional life we should get focused on our targets that what we wants to achieve and should work hard to achieve them rather getting nervous by any’s criticism statements. We must know our strength, destiny that where we wants to go and keep focused thereon.

Keep down to earth:-

This is also one of the Best quality of Master Blaster. As all of us well know that Cricket is game of money and glamour. But Sachin never show off that. He never comes into controversies even on the field as well as off the field. This shows how calm he is. Really its very difficult to keep yourself down to earth even after getting almost all things in his life that he wants to achieve.

Similarly in our personal as well as professional life we should keep down to earth ourself.  Always keep your cool whether you are performing well or not. Do not put yourself in the controversies in your society as well as office.

Impossible itself says that IMPOSSIBLE:-

Sachin Tendulkar 100th ton prove this well said quote. Who knows when Sachin starts his career that one day he will be able to achieve this amount of success.

Thus always work hard because Impossible itself says that IMPOSSIBLE. Nothing is impossible to achieve.

Author: Naveen Chand Khulve

Source: www.caclubindia.com