Know the ROFO Clause in Funding Agreement

Start-up Section I Know the ROFO Clause in Funding Agreement

Know the ROFO Clause in Funding Agreement Having the right blend of contract clauses is critical while accepting funding from the investors. It reduces the risks to founders and the Company and provides legal rights in case of a future dispute. It calls for understanding the critical clauses while drafting an investor agreement. In this […]

Proposal on raising the monetary threshold for launching prosecution for tax evasion

Proposal on raising the monetary threshold for launching prosecution for tax evasion

Proposal on raising the monetary threshold for launching prosecution for tax evasion This is to update you that the Goods and Services Tax (GST) council is considering amendment of the penalty provisions for tax evasion. The GST Council will on Saturday consider raising the monetary threshold for launching prosecution for tax evasion, as the federal […]

PLI Scheme for Toy Manufacturing Segment

PLI Scheme for Toy Manufacturing Segment

PLI Scheme for Toy Manufacturing Segment Prime Minister, Shri Narendra Modi, during his Mann ki Baat broadcast in August 2020, expressed a desire to establish India as a global toy manufacturing hub and to strengthen domestic designing and manufacturing capabilities. The Toy Industry in India has historically been import dependent. Lack of raw-material, technology, design […]

Safe Harbour Rules

Safe Harbour Rules

Safe Harbour Rules Calculation and application of arm’s length principle on inter-company transactions can be a resource-intensive process for any organisation. In order to curb the same, OECD has prescribed safe harbour rules that would be appropriately applied by the organisations operating cross-border. As a reflection of the OECD guidelines in this regard, Indian Income […]

Don’t get carried by Carry Rights in Funding Rounds!

Don't get carried by Carry Rights in Funding Rounds!

Don’t get carried by Carry Rights in Funding Rounds! Carried interest, or Carry Rights refer to the in share in the profits of an investment paid to the Investors. Rather than being based on the quantum of investment, it works as a performance based fee, rewarding the investors for enhancing performance. Therefore, Carried Interest is […]

Pre Money and Post Money Valuation

Pre-Money and Post-Money Valuation

Pre Money and Post Money Valuation Start-up Founders work towards goal of creating long-term, profitable growth when it comes to building businesses. Whatever be the stage of a start-up, obtaining financing is a necessity. For the same, most founders find it feasible to get seed funding through investors. Taking investments from angel investors or venture […]

DTAA Between India and USA

DTAA Between India and USA

DTAA Between India and USA 1) TDS ON PAYMENTS TO NON-RESIDENTS (Section 195)- Any person responsible for paying any sum to a non-resident, which is chargeable to tax under the Income Tax Act shall at the time of payment deduct tax at source at the rates in force. Rates in force: (Section 2(37A) + Section 90(2)) […]

DTAA Between India and Japan

DTAA Between India and Japan 1) TDS ON PAYMENTS TO NON-RESIDENS (Section 195)- Any person responsible for paying any sum to a non-resident, which is chargeable to tax under the Income Tax Act shall at the time of payment deduct tax at source at the rates in force. Rates in force: (Section 2(37A) + Section 90(2)) […]

Know your CSR Obligation!

Know your CSR Obligation! On April 1, 2014, India became the first country to legally mandate corporate social responsibility. The new rules in Section 135 of India’s Companies Act make it mandatory for companies of a certain turnover and profitability to spend two percent of their average net profit for the past three years on […]

A sigh of relief for Individuals and HUFs under Section 54

A sigh of relief for Individuals and HUFs under Section 54 Recent past has witnessed intense mooting on allowability of exemption under Section 54 of the Income Tax Act, 1961 (‘Act’). The extant provisions of Section 54 and judicial precedents on the same create uncertainty leading to varying interpretations by taxpayers, revenue authorities and tax […]