Arm's Length Price - Computation & latest notification

Computation/calculation of Arm’s length price under the Income Tax Act, 1961-Methods

Section 92C of the IT Act prescribes the following provisions:

(1) The arm’s length price in relation to an international transaction shall be determined by any of the following methods, being the most appropriate method, having regard to the nature of transaction or class of transaction or class of associated persons or functions performed by such persons or such other relevant factors as the Board may prescribe, namely: —

Provisions of Entrenchment in Articles of Association

An entrenched / entrenchment provision is a provision that makes the current level of provisions more stringent / difficult to follow for the coming period. Most of the times, making a mandate requiring the consent of more number persons for the happening of something.

The Companies Bill, 2012 – clause 5, sub-clause 3 to 5 is having the rules regarding Articles of Association of a company containing the provisions for entrenchment.

What is a Dormant Company?

When a Company do not file the statutory annual filings (i.e. form 23AC, 23ACA & 20B) for a consecutive period of 3 years, the MCA (ministry of corporate affairs) puts the status of the company as 'dormant (for eFiling)' like shown below:

However this dormant efiling status does not make the company as a 'Dormant Company' in its strictest meaning.

Consent Resolution

Have you ever come across a term called as “Consent Resolution”?? We guess you might not have yet, as it’s not a term that is used by Indian Corporates. You may be aware of terms “resolution” and “consent” separately but together it has got some importance and it is used in other countries to carry a certain course of action in a company or organisation. Let us know what’s it all about.

What is a Consent Resolution?

A Consent Resolution is a resolution passed/approved/adopted by the Board of Directors / Shareholders of a company without holding a physical meeting.

Shareholder Agreement - A double edge sword for Indian entrepreneurs

Shareholder Agreement - A double edge sword for Indian entrepreneurs

We all know how badly financial crunch has hit the world in the recent half decade. Organizations, big or small, are finding it hard to balance the act of sourcing funds. Any organization can fund sources either internally from owner’s equity or borrowing. Borrowing does not come easy on businesses as they have to pay back in one way or the other. Publicly listed companies are even in deeper trouble when they cannot raise their funds by issuing shares when they have already hit their limit of authorized capital. Venture capitalism is often the last respite in these kinds of situations. However, when we are talking about public listed companies, things are not that simple black and white as they are in other forms of business like in partnerships or private limited companies. Let us look at the trickery of this treacherous path of raising funds using venture capital.

How to do Rolecheck / Update DSC in MCA

Role Check / Registering Digital Signature MCA21

What is Role Check?

It is a functionality available in the Ministry of Corporate Affairs (MCA) portal (www.mca.gov.in/MCA21) which allows Directors, Manager and Secretary of any Company and practicing professionals like CA, CS & CWA to register their Digital Signature with MCA