DCS - Thy Tax Partner

Applicability of Internal Audit Section 138 of the Companies Act, 2013 read with Rule 13 of Companies (Accounts) Rules, 2014 requires the following classes of Companies to appoint an Internal Auditor, who shall either be a Chartered Accountant, Cost Accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company: Ø   every listed company Ø   every unlisted public company having o    paid up share capital of fifty crore rupees or more during the preceding financial year; or o    turnover of two hundred crore rupees or more during the preceding financial year; or o    outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or o    outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; Ø   every private company

15CA - 15CB :: An Overview Governing Section: Section 195 (6) of the Income Tax Act, 1961 read will Rule 37BB of the Income Tax Rules Section 195 (6) requires the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, to furnish the information relating to payment of such sum, in such form and manner, as may be prescribed. Rule 37BB states that any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish the following, namely:— (i) the information in Part A of Form No.15CA , if the amount of payment does not exceed INR 50,000 (fifty thousand rupees) and the aggregate of such payments made during the financial year does not exceed INR 2,50,000 (two lakh fifty thousand rupees) ; (ii)

Amending the  Companies  (Acceptance of Deposits) Rules, 2014  by  Companies  (Acceptance of Deposits) Second Amendment Rules, 2015  was breathe taking amendment for Private limited Companies who mostly depend on Loan from Directors, Share Holders or their Relatives as a means of finance. This Loan from Directors’ Relatives was brought into the ambit of Deposit with the introduction of Companies Act 2013. Although much delayed, the Ministry of Corporate Affairs Vide Notification Dated 15.09.2015 notified the much awaited and anticipated amendment in Deposit Rules by Companies (Acceptance of Deposits) Second Amendment Rules, 2015. The Ministry of Corporate Affairs has come out with relief vide its amendment dated 15.09.2015 where it has provided that from 15.09.2015 onwards, a private limited company can accept unsecured loans from a Director or Relative (may or may not be shareholder) of Director, provided that the Director or his relative from whom money is received, furnishes

TAX  PLANNING V/S TAX AVOIDANCE V/S TAX EVASION Though the words – Tax Planning, Tax Avoidance and Tax Evasion – sound connected, yet there is significant difference in the three. TAX PLANNING : Tax Planning is the way to reduce the tax liability by availing the exemptions and deductions mentioned explicitly in the Income Tax Act and Rules. Planning one’s income and expenses so as to get the benefit of various exemptions and deductions is called Tax Planning. Investments in PPF, NSC, LICI, etc are eligible for deductions. Tax Payers are advised to make full use of the Tax Planning opportunities. TAX AVOIDANCE : Tax Avoidance is done when the tax payer takes advantage of the loopholes in the tax regime in order to reduce the tax liability. Tax Avoidance is also not illegal. There is a very thin line of difference between Tax Planning and Tax Avoidance. Where in Tax Planning, a Tax Payer is making use of the opportunities provided explici