GSTR1 Data for August 2021

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GSTR1 Data for August 2021

Dear Team,
Work is being started for GSTR-1 data in next 2 days.

Please do your internal checkup of Debit note, Credit note, E invoice, IRN number for last month, if required.

Thank you,
MLG Team

TDS Deposit Working – for August 2021

TDS Deposit Working

Dear Team,
Work is being started for TDS Calculations data in next 2 days.

Please do your internal checkup of 100% Purchase bills received ?
100% Rent entries ? 100% TDS worthy Entries ?
if any bill passing is pending at any table,
pls expedite

Thank you,
MLG Team

Foreigner in India Creating a Private Limited in India

Foreigner in India Creating a Private Limited in India | Setting up Pvt Ltd in India


Case study

Foreign National : Citizen of USA : say Mr Simon Philips
Suppose, Mr Simon is living in India, for a Job since 2010. In these 11 years , 2010 to 2021, he has accumulated a sum of Rs 50 lakhs in India, in his savings accounts and Fixed Deposits.
these are normal Indian Bank Accounts out of Normal Taxed Indian income

And now, in this case,

He is a “Resident” for Indian Income tax purposes

He is a “Resident” for Indian FEMA / RBI Purposes


RBI FEMA Master Circular says…..

Eligibility for Investing in India

A person resident outside India (other than a citizen of Pakistan or Bangladesh) or an entity incorporated outside India, (other than an entity incorporated in Pakistan or Bangladesh) can invest in India, subject to the FDI Policy of the Government of India.
Erstwhile OCBs, who have converted themselves into companies incorporated outside India can make fresh investments in India under the FDI Scheme provided they are not under the adverse notice of RBI / SEBI.
Source :
https://www.rbi.org.in/scripts/BS_ViewMasterCirculars.aspx?Id=3630&Mode=0

In our case, this person Mr Simon is “not” a resident outside India, and he is “not” bringing money from outside India,

 

He is a “Resident” for FEMA purposes and Money is also already in India

So, this is not a Foreign Investment at all

Hence, FDI Rules and FEMA are not applicable in this case at all


Extracts from the Master Circular of the RBI for Foreign Investment in India

“Foreign Investment” in India is governed by the FDI policy announced by the Government of India and the provisions of the Foreign Exchange Management Act (FEMA) 1999. Reserve Bank of India has issued Notification No. FEMA 20/2000-RB dated May 3, 2000 which contains the Regulations in this regard. This notification has been amended from time to time.

Entry routes for investments in India

Foreign investment is freely permitted in almost all sectors. Foreign Direct Investments (FDI) can be made under two routes—Automatic Route and Government Route. Under the Automatic Route, the foreign investor or the Indian company does not require any approval from RBI or Government of India for the investment. Under the Government Route, prior approval of the Government of India, Ministry of Finance, Foreign Investment Promotion Board (FIPB) is required. Entry route for foreign investors as well as sector-specific investment limits in India are given in Annex-2.
FDI Policy is formulated by the Government of India. The policy and procedures in respect of FDI in India is available in ‘the Manual on Investing in India- Foreign Direct Investment, Policy & Procedures’. This document is available in public domain and can be downloaded from the website of Ministry of Commerce and Industry, Department of Industrial Policy and Promotion— www.dipp.nic.in. FEMA Regulations prescribe the mode of investments i.e. manner of receipt of funds, issue of shares/convertible debentures and preference shares and reporting of the investments to RBI.

TDS Due date : Tomorrow 7-August-2021

Tomorrow is the due date to deposit TDS for the month of July i.e. 07-08-2021.
Pls pay within time to avoid the interest

Also check specifically the applicability of sec 194Q (TDS on Purchase of Goods), if your turnover last year was more than Rs 10 crores

Regards
MLG Associates

Format of Letter to Customer for TDS TCS Changes wef 1-7-2021

Format of Letter to Customer for TDS TCS Changes wef 1-7-2021

Date : _____

To

Customers Name =

Kind Attn : Mr / Ms _____

Mail to Customers for TDS/TCS Changes

Dear Sir,

We value our business relationship with you.

This letter is regarding the action required as per change in TDS and TCS laws from 1-7-2021

Action on TDS u/s. 194Q

Since your Turnover must be over Rs 10 crores p.a. and since our sale to us is expected to be over Rs 50 lakhs p.a., we request you to deducting a TDS u/s 194Q at 0.1% only.

We are not a specified person u/s 206AB. And have filed our returns as per Law.

We understand that our future payments will be after this TDS

And we will get credit of this TDS in your Form 26AS in due course

Action on TCS u/s. 206(1H)

As per 206(1H), if TDS is done by the customer then TCS is not required

Hence in our case, as per expert guidance, we have told our despatch department, that no TCS shall be charged on bills from us to you, from 1-7-2021.

For XXXXX Pvt Ltd

Authorised Signatory


p.s.

For Any Queries, you may refer to FAQ on TDS 194Q on https://youtu.be/2rXjCFVJVfo

And https://finsys.co.in/today-3-30pm-seminar-on-tds-on-goods-iamsmeofindia/

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