Suresh Malik & Co.

Contents of Standing Order

admin — Fri, 14 May 2010 06:08:33 +0000

STANDING ORDERS MANUAL

S.No. Description

1. COMMENCEMENT
2. DEFINITIONS
3. CLASSIFICATION OF WORKMAN
4. APPOINTMENT AND EMPLOYMENT
5. ATTENDANCE CARDS AND MUSTOR ROLLS
6. ENTRY, EXIT AND SEARCH & IDENTITY CARDS
7. NOTICES
8. PUBLICATION OF WORKING HOURS AND PERIOD OF WORK
9. PUBLICATION OF HOLIDAYS AND PAY DAYS
10. PAYMENT OF WAGES
11. RECORD OF AGE
12. CHANGE OF ADDRESS
13. SHIFT WORKING
14. ABSENTEEISM OR ABSENCE FROM WORK PLACE
15. NATIONAL AND FESTIVAL HOLIDAYS
16. LEAVE WITH WAGES
17. STOPPAGE OF WORK AND LAY OFF
18. STRIKE
19. SAFETY RULES
20. TRANSFER & PROMOTIONS
21. CESSATION OF EMPLOYMENT
22. COMMUNICATION
23. GATE PASS
24. VISITORS
25. GRIEVANCES PROCEDURE
26. MISCONDUCT
27. ACT & OMISSION CONSTITUTING MISCONDUCT
28. PROCEDURE FOR DEALING WITH THE CASES OF MAJOR MISCONDUCT AND PUNISHMENT
29. SUSPENSION ALLOWANCE
30. ESSENTIAL, CONFIDENTIAL AND EMERGENCY SERVICES STAFF
31. RULES, REGULATIONS AND NOTICES
32. BREAK IN SERVICE
33. ACCIDENT
34. LIABILITY OF THE MANAGEMENT
35. LIABILITY OF THE WORKMAN
36. EXHIBITION OF STANDING ORDER
37. INTERPRETATION

The Foreign Educational Institution Bill, 2010

admin — Sat, 20 Mar 2010 08:14:06 +0000

Government approved a bill to allow foreign education providers set up campuses in India and offer degrees. This paves way for its introduction in Parliament. The bill seeks to regulate the entry and operation of foreign institutions, which will set up centre and offer degrees in India. The proposed law would facilitate the globally- renowned institutes to participate in India’s higher education sector.

Extract from economic times dated 16/03/2010.

Foreign Direct Investment (FDI)

admin — Mon, 15 Mar 2010 16:53:11 +0000

It appears from reading of Master circular , Even housing development companies can invite FDI for their projects, provided it meets the requirement of guideline and as also of press note issued in 2005.

Transfer price in India

admin — Mon, 15 Mar 2010 16:45:49 +0000

There are limited sources of data base in India to find comparable and that to need to be comprehensive.
There can be an alternate if, Institute of chartered accountants of India (being a accounting body) can take a lead in providing reliable source of data base to be used for Members. They can invite financials from their members and maintain a database. That Database maintained by ICAI would be reliable and for easy access by members.

Transfer price study format

admin — Wed, 24 Feb 2010 15:19:11 +0000

A Transfer price study pursuant to section 92D of the Income Tax, 1961 and Rule 10D of the Income Tax Rule, 1962 and other relevant provisions For International Transactions Between AAA………. Private Limited, India And BBb… Holding company Limited …… September 2007

Content

S.No.	Discription	Page

1)	Executive Summary	3
2)	General Introduction Back ground of Asessee Background of Associate Enterprises Facts peculiar to transaction Object of study and information relied	6 7 8 9 9
3)	Relevant provision of Law and Mehodology Relevant provision of Law Methodology Selection of Appropriate Method and Reason Thereof Criteria of Selection of Comparison Selection of tested party Selection of PLI	10 10 10 10 14 17 17
4)	Characteristics of the economic environment of AAA…. Private Limited , India BBB…. Limited , .. country	19 19 21
5)	Function , Assets and Risk Analysis	25
6)	A comparison to other companies Search for Comparables Brief Descriptions of Selected companies	27 27 30
7)	Arm’s Length Range	32
	Conclusion	35

Annexure-A	The Indian Transfer Pricing Legislation
Annexure-B	C Database – a description of search and qualitative screening.
Annexure-C	D Database – a description of search and qualitative screening.
Annexure-D	E Database – a description of search and qualitative screening
Annexure-E	Computation of average NCP margin and Financials of final set of broadly comparable independent companies

How to form a Private Limited Company in India

admin — Wed, 20 Jan 2010 07:35:44 +0000

First step to form a private company is to arrange necessary things for incorporation which includes
- Selection of the proposed name of the company at least 6 name in order of preference.
- Name of at least two resident Indian forming company and who are initial subscribers and directors. Details of the above like, name, address, father’s and mother’s name, date of birth nationality, PAN number and DIN, if any and Digital Signature, if any.Proof of address and identity,
- Proposed objects of the company. (Brief business Plan)
- Address in India.
- Amount of Authorized capital of proposed company.
Second step is to have Din and digital signature which has to be done simultaneously
Obtain Digital Signature: if proposed person does not have digital signature, then they can apply and have digital signature from any of the various agencies.
Din Number can applied by filling application online in form number DIN 1 — and Make the payment of Din application fee, which is presently Rs.100/- same can be paid by credit card or by cash at Punjab national bank. Hard copy duly signed and verified should be deposited with Noida office of MCA.
On third step is to create a user account at MCA website from where the forms related to ROC matter will uploaded.
After user account creation, download the Form No.1 A application for approval of the name, fill it and upload. Once the name is approved, The ROC will send an email stating approval of the name, then formation process start.
Prepare Draft of the MOA and AOA and get it printed
Then get the same stamped through collector of stamps which is also get done by printer itself, however presently same can be paid by electronic mode at MCA site itself, as per stamp duty rule.
Then get the all subscribers to MOA & AOA to sign physically
Get the e form down load and get ready ( fill up and get digitally signed) for registration ;
- Form 1 , Form 18 and Form 32
- Copy of the form 1 on Stamp— now a day stamps can be paid by electronic mode.
- Consent of the directors
- Power of attorney in favor of professional by all the subscribers
- All these forms to be signed by the promoter / directors and the get certified by professional like chartered accountants or company secretary.
Login MCA website through login of the promoter who has applied and upload the form together.
Once uploaded form, a payment slip will generated by site and then payment can be paid by the credit card or net banking or by cash deposit at PNB. The payment of ROC depends upon the proposed authorized capital, per prescribed slabs
The hardcopy of document submitted on online, duly signed and executed have to be physically deposited at ROC office
Once payment is made ROC will process and approve document. Once approved, ROC will issue a certificate of incorporation
Upon receipt of Registration Certificate the process of registration of Company is complete.

Foreign Company setup branch office in India

admin — Fri, 08 Jan 2010 10:52:22 +0000

Can a Foreign Company setup its branch office in India? If yes, what business it can do? What are the formalities for opening such office and how much time it requires.

Reserve Bank permits companies engaged in manufacturing and trading activities abroad to set up Branch Offices in India for the following purposes:

To represent the parent company/other foreign companies in various matters in India e.g. acting as buying/selling agents in India
To conduct research work in the area in which the parent company is engaged
To undertake export and import activities and trading on wholesale basis
To promote possible technical and financial collaborations between the Indian companies and overseas companies.
Rendering professional or consultancy services
Rendering services in Information technology and development of software in India
Rendering technical support to the products supplied by the parent/Group companies.

A branch office is not allowed to carry out manufacturing, processing activities directly/indirectly. A Branch Office is also not allowed to undertake Retail Trading activities of any nature in India. Branch Offices have to submit Activity Certificate from a Chartered Accountant on an annual basis to the Central Office of FED. For annual remittance of profit Branch Office may submit required documents to an authorized dealer.

Permission for setting up branch offices is granted by the Reserve Bank of India. RBI considers the track record of the Applicant Company, existing trade relations with India and financial position of the company while scrutinizing the application.

How to Do:

There are three stages of activities to open Branch Office in India

Formalities to be completed with Reserve Bank of India to obtain permission to open Branch in India.
To get it registered with Registrar of Companies (ROC) as foreign Company with 30 of setup of business. The ROC, will issue a certificate of incorporation/ opening of foreign company. It is done in Delhi and also in state where branch is opened.
Third stage is like any other organization, it has to obtain, Permanent Account Number (PAN), TDS Number (TAN), Service Tax, Sales Tax, IE Code Etc.

Time Taken:

1. First activity around 10 to 15 Working Days after filing paper.

2. Second activity can be started after First. Again it takes, generally, 10-15 working days from the date of filing.

3. Rest of the activities can be started after 2^nd stage and can be started simultaneously take another 15 to 20 days.

Document required initially:

Certificate of Incorporation, Memorandum of Association of the foreign company duly notarized and translated in English.
Name, Address and year of incorporation, Details of the directors / CEO. Prof of Address.
Balance sheets of last 2 years of the foreign company.
Person authorized to operate in India, his authority vide Board Resolution and Power of Attorney/Authorization to that person. His particulars like Name, address Father Name, residential address( along with Proof),phone etc and a copy of passport.
Address in India, where Branch is to be opened.
Write up on present activities abroad and the activities to be undertaken.

Others:

Required to maintain accounts of Indian operations and filing with ROC, Income tax and other authorities.

Foreigner appointed director in private ltd

admin — Fri, 08 Jan 2010 10:37:10 +0000

Can a foreigner be appointed as director in private limited company?

Appointment and remuneration of Director

A person can be Director in more than one private limited company. Foreign Director can draw remuneration from one private company (which is not Subsidiary or holding company of public company), without many formalities, by board resolution.

Some info from FEMA: (In case foreign national)

Individual or his companies oversea can bring /money investment in India either. In both cases the one can bring money with or without repatriation. There are different options available.

a. Individual can bring money in his NRE/NRO account and can also invest in private limited company in the form of equity or loan or buy share in Partnership firm or open proprietorship firm subject to the provisions of the FEMA

b. Money in held in companies can invest in shares of public limited or private limited companies subject to Provision of FEMA and other applicable laws. Investment can be made under automatic approval route or with specific permission of the Govt. of India. (Industry specific Sector wise cap is there on, what percentage of investment).

Residential Status of Person coming to India

admin — Fri, 08 Jan 2010 10:34:39 +0000

What Residential Status of Person coming to India ?

Residential Status:

Any person who stays in India for more than 180 in any year (There are other conditions also) is considered as resident from the point of view of the Income Tax Laws prevalent in India. The resident, if have income anywhere in the world normally taxed in India. If withholding tax if any deducted anywhere in the world, he / she get benefit for the same, subject to double taxation treaties.

From FEMA angle, a person resident in India means a person residing in India for more than one hundred and eighty-two days during the course of the preceding financial year (April-March) and who has come to or stays in India either for taking up employment, carrying on business or vocation in India or for any other purpose, that would indicate his intention to stay in India for an uncertain period. In other words, to be treated as `a person resident in India’ under FEMA a person has not only to satisfy the condition of the period of stay (being more than 182 days during the course of the preceding financial year) but has also to comply with the condition of the purpose / intention of stay.

Please Note the information above is general, which subject to change, based on the fact of Individual case and accordingly law applies.

However the detailed provisions of the Tax Law for reference is enclosed in Note section of the communiqué.

Setting up Non Banking Financial Company in India

admin — Fri, 08 Jan 2010 08:35:22 +0000

Setting up business of Non Banking Financial Company in India and 100% (FDI) Foreign Direct Investments:

Setting up a non Banking company as 100% subsidiary is possible in India in other word a NBFC business can be setup in India with 100% foreign holding or investments.

A NBFC (non banking financial company) with 100% foreign investment require some capitalisation norm as RBI Directions. It require FDI of USD 50 Million USD out of which USD 7.5 Million is to be brought upfront and rest has be completed within 24 months.

Generally in India, a NBFC licence is granted for non deposit accepting (without deposit acceptance) based on certain conditions like;

1. Minimum capitalisation of Rs.20 Million

2. Promoter / Director should have experience of banking / NBFC business.

3. Promoter / Director should not be defaulter of public deposit, bank or institution.

4. There should be clear and transparent business plan.

A company registered with ROC will not be able to start business until it is granted Licence by RBI. RBI is quit selective in their approach for allowing / granting licence. Even slightest of doubt in integrity or track of the promoters / director may result in rejection of application fro grant of licence.