Showing posts from July, 2020

FAQs on Indian Stamp Act, 1899 Amendments and Rules made thereunder

1. What is the need for bringing amendments in the Indian Stamp Act, 1899?   Answer: S ecurities market transactions is the main reason for such amendments. There is a multiple rates collection of stamp duty on securities market transactions for the same instrument. It results in jurisdictional disputes and multiple incidences of duty, thereby raising the transaction costs in the securities market and hurting capital formation.   2. What mechanism is created through the amendments to the Indian Stamp Act, 1899?   Answer:  A mechanism for appropriate sharing the stamp duty with relevant State Government based on State of domicile of the buying client has also been included. In the extant scenario, stamp duty was payable by both seller and buyer whereas in the new system it is levied only on one side (payable either by the buyer or by the seller but not by both, except in case of certain instrument of exchange where the stamp duty shall be borne by both parties in equal proportion). Thro

Annual Return on Foreign Liabilities and Assets (FLA Return)

Annual Return on Foreign Liabilities and Assets (FLA Return) SERIES 600 SHORT SUMMARY: In this editorial author shall discuss about FLA. Whenever we talk about FLA many questions came into mind like: Which Companies are required to file FLA? What is due date for FLA? Etc. It’s an Annual Return on Foreign Liabilities and Assets (FLA) is required to be filed by Indian Company and LLP.   I.          Who is Required to file FLA?   Entities who holds foreign assets or liabilities in their financial statements as on 31 March. The annual return on  Foreign Liabilities and Assets (FLA)  is required to be submitted by the following entities which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign assets or/and liabilities in their balance sheets; §   A Company within the meaning of section 1(4) of the  Companies Act, 2013 . §   A Limited Liabil