Checklist for External Commercial Borrowings (FEMA)

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External Commercial Borrowings


Whether the transaction falls under Automatic Route ?
Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USD ?
Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USD
Is the ECB from indirect equity holders?

Whether the ECB proceeds repatriated to India?



S.No.ParticularsObservationsCommentsRemarks
1Whether the transaction falls under Automatic RouteIf not, approval from RBI required
2Does the foreign lender holds minimum paid up equity of 25% in case of ECB upto 5 million USDAll outstanding ECB(s) including proposed ECB to be calculated
3Does the foreign lender holds minimum paid up equity of 25% and ECB Deby Equity ratio not exceeding 4:1,in case of ECB more than 5 million USDAll outstanding ECB(s) including proposed ECB to be calculated
4Is the ECB from indirect equity holdersIf yes, atleast 51% holding in the Indian Company required
4Whether the ECB proceeds repatriated to India
ACertain Condition for raising ECB
1Maximum Amount of ECB which can be raised by a corporate other than those in hotel, hospital and software sectors and corporates in miscellaneous service sector.upto USD 750 million or equivalent during a FY
2Corporates in Service Sector viz. hotels, hospital and software sector and miscellaneous service sector.upto USD 200 million or its equivalent in a FY for permissible end used
3NGOs engaged in micro finance activities and Micro Finance Institutionsupto 10 million USD
4NBFC(s)-Infrasructure Finance Companiesupto 75% of their owned funds, hedging 75% of their currency risk exposure
5NBFC(s)-Asset Finance Companiesupto 75% of their owned funds, max. of USD 200 million per FY, min maturity of 5 years, hedging full currency risk
6SIDBIupto USD 20 million
BDocuments required by Overseas Organisation/ Individual
a)Due Diligence Certificate from an overseas bankShould be adhering to the Financial Action Task Force Guidelines
b)Audited Statement of Accounts
c)Income Tax Returns
d)Signed Loan Agreement
B1Other Documents
a)NOC from bank for creation of charge
b)Loan Registartion number obtained from RBI
c)Copy of BR for issue of corporate guarantee from the company issuing such guarantee
d)Copy of form FC-GPRIn case of conversion of ECB into equity
e)Form ECB-2within 7 working days to the close of month to which it relates
h)Copy of Form 83For allotment of LRN
i)CTC(s) of the meetings for allotment of equity shares
j)Bank Details
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Maternity Benefit Act 1961

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Coverage of the  Maternity Benefit Act
Upon all women employees either employed directly or through contractor except domestic women employees employed in mines, factories, plantations and also in other establishments if the State Government so decides. Therefore, if the State Government decides to apply this Act to women employees in shops and commercial establishments, they also will get the benefit of this Act. Bihar, Punjab Haryana, West Bengal, U.P., Orissa and Andhra have done so.



Conditions for eligibility of benefits
Women indulging temporary of unmarried are eligible for maternity benefit when she is expecting a child and has worked for her employer for at least 80 days in the 12 months
immediately proceeding the date of her expected delivery

Cash Benefits
• Leave with average pay for six weeks before the delivery.
• Leave with average pay for six weeks after the delivery.
• A medical bonus of Rs.25 if the employer does not provide free medical care to the woman.
• An additional leave with pay up to one month if the woman shows proof of illness due to the
pregnancy, delivery, miscarriage, or premature birth.
• In case of miscarriage, six weeks leave with average pay from the date of miscarriage.
Non Cash Benefits/Privilege
• Light work for ten weeks (six weeks plus one month) before the date of her expected delivery, if
she asks for it.
• Two nursing breaks in the course of her daily work until the child is 15 months old.
• No discharge or dismissal while she is on maternity leave.
• No change to her disadvantage in any of the conditions of her employment while on maternity
leave.
• Pregnant women discharged or dismissed may still claim maternity benefit from the employer.
Exception: Women dismissed for gross misconduct lose their right under the Act for Maternity Benefit

Conditions for eligibility of benefits
• Ten weeks before the date of her expected delivery, she may ask the employer to give her light work for a month. At that time she should produce a certificate that she is pregnant.
• She should give written notice to the employer about seven weeks before the date of her delivery that she will be absent for six weeks before and after her delivery. She should also name the person to whom payment will be made in case she can not take it herself.
• She should take the payment for the first six weeks before she goes on leave.
• She will get payment for the six weeks after child-birth within 48 hours of giving proof that she has had a child.
• She will be entitled to two nursing breaks of fifteen minutes each in the course of her daily work till her child is fifteen months old.
• Her employer cannot discharge her or change her conditions of service while she is on maternity leave.
Sec. 5

Prohibition of dismissal during absence of pregnancy
• Discharge or dismissal of a woman employed during or on account of such absence or to give notice or discharge or dismissal on such a day that the notice will expire during such absence or to very her disadvantage.
• Discharge or dismissal during or on account of such absence or to give notice of discharge or dismissal on such a day that the notice will expire during such absence, or to vary to her disadvantage any of the conditions of her service.
• At the time during her pregnancy, if the woman but for such discharge or dismissal would have been entitled to maternity benefit or medical bonus, etc.
• Not barred in case of dismissal for cross misconduct.

Forfeiture of maternity benefit
If permitted by her employer to absent herself under the provisions of section 6 for any period during such authorized absence, she shall forfeit her claim to the maternity benefit for such period.
For discharging or dismissing such a woman during or on account of her absence from work, the employer shall be punishable with imprisonment which shall not be less than 3 months, but it will extend to one year and will find, but not exceeding Rs.5, 000.

Failure to Display Extract of Act
Imprisonment may extend to one year or fine.

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Checklist For TAN Registration

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CHECKLIST FOR TAN REGISTRATION
(FOR PARTNERSHIP FIRM)

1. APPLICATION FORM DULY FILLED AND SIGNED.
2. FEE …………………..
3. PHOTOGRAPH (PASSPORT SIZE) OF AUTHORISED              PARTNER.
4. IDENTITY PROOF (CLEAR COPY OF PAN CARD IN A4          SIZE PAPER)
5. CURRENT OFFICE ADDRESS PROOF (COPY IN A4 SIZE      PAPER).
6. KYC OF ONE PARTNER
    i)  2 COLOR PHOTOGRAPHS (PASSPORT SIZE).
  ii)  IDENTITY PROOF (CLEAR COPY OF PAN CARD IN A4         SIZE PAPER).
 iii) CURRENT RESIDENCE ADDRESS PROOF (IN A4 SIZE         PAPER).
7. LATEST PARTNERSHIP DEED
8. FIRM REGISTRATION CERTIFICATE
9. FIRM BANK ACCOUNT STATEMENT (LATEST 3                      MONTHS).
10. DETAILS OF BRANCH (IF ANY)
11. CONTACT NUMBER
12. PIN NUMBER OF PLACE WHERE FIRM IS SITUATED.


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Interest on late deposit of service tax

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Simple interest rate enhanced, where there is short payment or delay in payment of service tax, vide notification no. 12/2014-ST, dated 11th July, 2014

 As per section 75, interest on delayed payment of service tax would be as follows:

  1) Turnover below Rs. 60lacs in F.Y/preceding F.Y.–15% p.a
 2) Turnover above Rs. 60lacs in F.Y/preceding F.Y.  18% p.a.

From 1st October, 2014, Simple interest rates per annum payable under section 75, to vary on the basis of extent of delay in payment of service tax:

Extent of delay Simple interest rate per annum:
Up to six months                                                18% 
From six months and up to one year             24%
More than one year                                           30%

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Checklist for Tax Audit

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   CHECK LIST FOR TAX AUDIT

  1. Copy of appointment letter and acceptance thereof.
  2. Comparison with the last years Audit Report if available.
  3. VAT, Service Tax Registration Numbers- Assessment and return filing status to be furnished.
  4. Check the Digital signature of Client and Chartered Accountant and confirm that the digital signatures are not expired.
  5. Login into the income tax website using client’s login prior to uploading Tax audit forms so that no contact details update problem arises.
  6. Keep the passwords of digital signature ready.
  7. Confirm that chartered Accountant details are available like Pan No, Membership No, Address etc.
  8. Stock details of client’s business are required- obtain signed stock statement and keep it in file
  9. Are there any observations to be made? 
  10. Any inadmissible expenses are to be provided for.- prepare a list , get it signed and keep it in the file for reference 
  11. Check for Loans and repayment thereof comply with section 269SS and 269T.Obtain a Certificate from the Client.
  12. Confirm that Balance sheet and Profit and loss Account are signed both by the Auditor(with Stamp) and the Client and are scanned and converted into PDF.
  13. Tally data of client should be copied into CD’s.
  14. Confirm that data entered in is correct. Double check is required.
  15. Scrutinize the expenses debited to P& L Account, particularly the following expenses like telephone expenses, vehicle maintenance, travelling expenses, repairs and maintenance and bank charges.
  16. Advertisement expenditure (in case of souvenir, brochure, tract, pamplet) is inadmissible.

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Service Tax Reverse Charge w.e.f. 01.10.2014

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SERVICE TAX REVERSE CHARGE CHART (NORMAL RATE 12.36%) w.e.f 01.10.2014 

For the services: Goods Transport by Road,Sponsorship, Advocate, Directors,

Government Support Service, Hiring Cars, Manpower incl. security, Works contracts.





SERVICEDETAILSSRSP-NON-COSP-COMPANY
Goods Transport by RoadUp to Rs.750 per carriage, Rs.1500 per goods carriage exempted and 75% abatement available3.090%- -
Sponsorship12.36%- -
Advocate`12.36%- -
DirectorsSitting fee etc12.36%- -
Govt support ServCISF, police etc12.36%- -
Hiring cars :if cenvat not availed by service provider4.944%- -
if cenvat not availed by service provider (SP-Company)- - 4.944%
if cenvat is availed by service provider6.180%6.180%-
if cenvat is availed by service provider(SP-Company)- - 12.36%
Manpower incl. Security:SR-75%, SP-25%9.270%3.090%-
If SP is a company- - 12.36%
Works contract- where material value can be seggregatedSR-50%, SP-50%6.180%6.180%-
If SP is a company12.36%
Works contract- Valuation Rule-70 %SR-50%, SP-50%4.326%4.326%
If SP is a company8.652%
SR- SERVICE RECEIPENTNon-Co: Other than Company
SP-SERVICE PROVIDER

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