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Why One Should Do Business In India

Reserve Bank of India recently painted quite a gloomy picture for the Indian economy and rating house Moody’s too pointed out how corruption and scams are hampering the country’s business environment.

According to research firm Dun and Bradstreet, India will become a $5.6 trillion economy by 2020. The firm has also predicted a three-fold jump in the country’s gross domestic product, from $1.7 trillion last fiscal, on the back of rapid investment and growing consumer expenditure.

1. India’s GDP is on a roll
India’s gross domestic product is reaching new heights every year. India is now the 10th biggest economy in the world.

2. India’s trade is growing steadily
India’s imports are increasing more than 25 per cent year on year (since 1960). Even if 2009 saw a small fall-back due to global recession, in 2010 imports were however again growing at 32.2 per cent (August, 2010 — year on year growth) and reached over $140 billion (2010).

3. India’s FDI is on the rise
India’s foreign direct investment has been increasing significantly since the past five years.
There are three major countries that are known to be the biggest foreign direct investors in India. Topping the list of India’s foreign direct investment ranking is the small island nation called Mauritius.
This country is located very close to India and enjoys very small tax rate.
This is the reason why many companies set up their businesses there or invest in the existing organisations.
The tax levied is no more than 3 per cent.
In the second place is Singapore, which invests funds in almost the same sectors as the United States, though Singaporeans are also interested in the transportation sector.
Coming in at third place is the United States, which bring in more than $15 billion into the country.

4. India is turning into an industrialised economy

India is moving from being an agriculture based economy to an industrialised and service focused economy similar to the US, Europe and other industrialised countries.
India is now the world’s biggest manufacturer of small cars.
India is ranked 12th in the world in terms of nominal factory output.
The Indian industrial sector underwent significant changes as a result of the economic reforms of 1991.

5. India’s population keeps on growing
In terms of population, India is the second largest country in the world.
By 2025, India will be the biggest country in terms of population.
Western markets like the European Union and the United States are set to benefit from a 1.15 plus billion population in India.
The population will continue to grow also in terms of disposable income and consumption of Western products.

6. There are 771 million mobile phone subscribers in India
More than half the population owns a mobile phone in India now.
India is the world’s fastest growing wireless market, with 771 million mobile phone subscribers as of February 2011.
It is also the second largest telecommunication network in the world in terms of number of wireless connections after China.

7.Wireless technology to boost India’s Internet access
Wireless Internet is going to massively increase the access of hundred of millions of Indians across the subcontinent.
A new era awaits the country’s 584 million mobile phone users, with a faster and more robust Internet, and better access to data services including e-commerce, social networking and telemedicine.
Also ready are mobile device manufacturers with a slew of 3G handsets; providers of hosting, billing and network management services with expanded offerings; and content providers selling cell phone ring tones, wallpapers and graphics.

8. India’s GNI per capita is growing
Gross National Income per capita in India in terms of purchasing power parity is increasing.
In less than 10 years, the GNI per capita doubled (from $1,560 in 2000 to $3,250 in 2009).
This means Indian consumers can now afford double as much goods and services as just 10 years back.

9. Doing business in India is getting easier
India is among the top 40 nations to have carried out the highest number of business regulation reforms in the last five years, most of these related to introduction of technology to ease business operations.
Nowadays, in just 30 days one can have one’s business up and running. Doingbusiness in India is getting easier and investor friendlier year-on-year.

10. India & China: New Economic Gravity by 2050
Andreas De Rosi mentions in his article a research paper of Danny Quah, from the London School of Economics.
Quah wrote that the world’s economic centre of gravity is projected by 2050 to locate, literally, between India and China.
Observed from the Earth’s surface, that economic centre of gravity will shift away from its 1980 location a distance of 9,300 km or 1.5 times the radius of the planet.
So doing business in India is a must for companies with a long-term view.
India will sooner or later come back to the time when it was the biggest economy in the world.
Great news for Indians, indeed!

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Online Income Tax Payment – Procedure

Income tax payment can be done through online or manually by furnishing the hard copy of the challan at the designated bank. The Government has upgraded itself and introduced e-payment facility for income tax. In this Blog, we look at the procedure for online payment of income tax.

Mandatory Online Payment
Private limited company, one person company and limited company are mandatorily required to pay tax using internet banking facility. Further, taxpayers other than company who are liable to get their accounts audited as per section 44AB are also required to mandatorily pay income tax online.

Online income tax payment is mandatory for all companies and all non-corporate taxpayers covered by audit under section 44AB. However, a person not covered in the mandatory category can voluntarily pay income tax by using the e-payment mode.

Income Taxes That Can be Paid Online

Taxes that can be paid online through internet banking facilities are:

  • Income-tax
  • Corporate tax (i.e., income-tax paid by a company)
  • Tax deducted at source (TDS)
  • Tax collected at source (TCS)
  • Securities Transaction Tax (STT)
  • Wealth-tax and other direct taxes like gift tax, expenditure tax, etc


Online Income Tax Payment Procedure
To make income tax payment online, a net banking enabled account in an authorised bank is required. If the taxpayer does not have a net banking enabled account in his/her name, then payment can be made through some other persons account, but the tax should be paid in the assesses name.

Online Income Tax Payment

Step by Step Guide to Online Tax Payment

  • Visit www.tin-nsdl.com or the online tax e-payment website.
  • Open the respective chalan based on the payment type.
  • After selecting the correct challan, the screen for providing details will be displayed, the taxpayer should provide the correct details in the challan.
  • After providing all the requisite details correctly along with the correct Codes, the taxpayer should select his bank from the dropdown provided in the screen (i.e. the selection of the bank from which he wishes to make the online income tax payment).
  • After selecting the applicable bank, the taxpayer should input the verification Code appearing on the screen.
  • After providing the verification Code the taxpayer should click on the proceed button provided on the screen.
  • On clicking on the proceed button, a new page will be displayed containing the details provided by the taxpayer in the Challan and the name of the taxpayer as per the data base of Income-tax Department will be displayed. The name will be displayed from the PAN/TAN database with the Department.
  • In case of Form 26QB the name of the transferor and transferee will be displayed.
  • If the name and other details as displayed on the screen are correct then the taxpayer can proceed for making payment by clicking on the submit to bank button provided on the screen.
  • On submitting the challan to the bank, the gateway of the bank will be displayed on the screen and the taxpayer has to login to his account and input the details of tax, interest, cess, penalty, etc., to be paid.
  • After providing the details he should verify the details once again to check the correctness and then should submit the challan to bank for effecting payment.
  • On successful completion of the transaction, the challan of payment (i.e., receipt of payment) will be generated and will be displayed on the screen.
  • Challan will contain Challan Identification Number (CIN) and other details. The taxpayer should preserve the hard copy as well as soft copy of the Challan for his records and for further requirements.
  • Challan Status – Online Tax Payment Status Check
    Using the Challan Identification Number, tax payers can track online the status of their challans deposited in banks.
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    Developing Asia – Accelerate Growth Through Partnership

    Growth Outlook
    Developing Asia is facing considerable headwinds. Delayed recovery in major industrial economies and moderating prospects for the large economies of the People’s Republic of China and India weigh on region’s project growth forecasts. With the european economy meltdown, asian economy continues to grow.


    Emerging : Asia leads global growth
    A key factor behind Asia’s rising influence is the size of its economy. In 1990, the top five economies were not among Asia. However, now the top three economies are Japan, China and India.

    Asia’s share in world GDP in real US$ purchasing power parity (PPP) was 23.2 percent. By 2014, this went up to 38.8 percent, much larger than the shares of the United States and the European Union.

    In fact, Asia’s share is likely to go up in the coming years if current growth trends in key regional economies continue(forecasts by Oxford Economics put Asia’s share at nearly 45 percent by 2025 )


    Growth Prospects in Asia
    In 2017, 80% of regional economies are expected to post higher growth on the back of a recovery in external demand and further pickup in domestic demand.

    Policies to stimulate potential growth

  • Partly offset the labor squeeze due to policy changes
  • Higher labor productivity
    1. Capital investment is crucial to catch up with the advanced economies.
      Reform can move current potential toward the frontier.
      Sound macroeconomic management is the foundation for growth.
  • Employment of the full range of policy responses
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    Slow going in a Tough Global Environment
    In 2017, growth in the region will remain steady, as continued growth moderation in the PRC will be counterbalanced by solid growth in India.

    Average inflation in the region will rise from 2.2% in 2015 to 2.5% in 2016 on strengthening domestic demand and further to 2.7% in 2017, following an expected recovery in global commodity prices.

    Elements of Working Together

  • Build relationships first
  • Measure your success together
  • Leverage each other
  • Empower and partner beyond the communications function
  • Working beyond geographies
  • Client retention


  • Benefits of Working Together

  • Increasing speed to access knowledge
  • Reducing communication costs
  • Increasing speed to access external experts
  • Increasing satisfaction of clients, partners and external experts
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    Why Auditing Service is Necessity

    Auditing

    An audit is more than a formality, it is a necessity to protect your business and encourage it to thrive. Early warnings, open communication and pragmatic resolution of issues are the essential features.

    Audit testing procedures tailored to the specific audit, our firms maintain excellent relationships with their clients. This quality-led approach means members provide an intelligent, constructive and challenging audit to every one.

    Statutory Audits : It is a legally required review of the accuracy of a company’s or governments financial records. The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, book keeping records and financial transactions of both Public and Private Companies, Banks, Financial Institutions, PSU’s, firms and Sole-Proprietors.

    Internal Audit : Focus is to ensure strong internal control systems to minimize the risk of accidental or deliberate errors and omissions. Safeguarding of assets, adequate division of authority over key control areas and compliance with internal operating policies and guidelines are other focus areas.

    Tax Audit : To prepare report in Form 3CA/3CB including annexure in Form 3CD as per div 44AB of the Income-Tax Act. We’ll help with your IRS tax audit by:
    Reviewing the tax authority notice or inquiry and explain what it means
    Researching issues involved
    Assisting you in assembling documents and records for the tax audit
    Reviewing the tax audit findings and explaining them to you
    Explaining the appeal process and other options available to you in the event you disagree with the tax authority’s findings

    Process / Transaction Audit : A process audit is an examination of results to determine whether the activities, resources and behaviors that cause them are being managed efficiently and effectively.

    Management Audit : To assess the systems, methods and policies followed by an entity’s management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.

    Stock Audit: : It is carried out on behalf of banks and financial institutions. The objective is to ensure that the security against which funds are lent by the bank is safe and valued correctly.

    Due Diligence : We assist clients in conducting financial, legal and accounting reviews in case of mergers, acquisitions and investments. A sound understanding of local laws, regulations and accounting practices enables us to vet all critical issues in detail.

    Forensic / Risk Audit : Our forensic audit focuses on high risk areas and helps you strengthen your internal controls.Chartered accountant in Delhi

    What is it : Forensic audit techniques seek to uncover corporate or other organization fraud. Results emanating from a forensic audit are typically used to support both civil litigation and criminal prosecutions. Forensic audit techniques can be broken down into five basic categories.

    Testing Defences : Most businesses and other organizations have procedures and defences set up to prevent the occurrence of fraud. A good initial forensic audit technique is to attempt to circumvent these defences yourself. The weaknesses you find within the organization’s controls will most probably guide you down the same path taken by suspected perpetrators. This technique requires you to attempt to put yourself in the shoes and think like your suspect.

    Trend Analysis : Businesses have cycles and seasons much akin to nature itself. An expense or event within a business that would be analogous to a snowy day in the middle of summer is worth investigating. Careful review of your subject organization’s historical norms is necessary in order for you to be able to discern the outlier event should it arise within your investigation.

    Digital Forensic Examinations : Every transaction leaves a digital footprint in today’s computer-driven society. Close scrutiny of relevant emails, accounting records, phone logs and target hard drives is a requisite facet of any modern forensic audit. Digital investigations can become quite complex and require support from trained digital investigators. However, many open-source digital forensics tools are now available to assist you in this phase of the investigation.

    Face to Face Interviews : Forensic auditing is akin to detective work, and every good detective desires to look his witnesses and suspects in the eye. Personal interviews with the staff of your target entity yield a better understanding of its operations and of the culture that exists within it. According to John J. Hall of the Journal of Accountancy, critical information can be gleaned from interviews with parties who have knowledge of the events without being directly connected to the fraud.

    Full Financial Auditing : Detailed financial audits can be complex and most often require the assistance of a qualified forensic accountant. Basic financial audit techniques include bank statement reconciliations, scrutiny of all vendor contracts and payments, review of tax returns and analysis of public filings. Financial forensic audit techniques seek to identify suspicious transactions and trace them back to potential perpetrators.

    How we can help

    Gather and analyze evidence
    Integrate interview information with queries from databases, emails, and hard drives
    Report our findings, review internal controls, and provide remediation options
    Expert testimony

    Internal Audit : The scope of the audit is defined as per the internal controls and is carried out with specific emphasis on cost control. The main purpose of an internal control audit system is to ensure no mistakes, omission or accidental or deliberate errors. Our team is well trained in safeguarding of assets and operating with internal guidelines and policies to ensure smooth procedures.

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    Procedure, method and list of documents for deploying a Project workplace in Asian countries.

    RBI has liberalized and simplified the the procedures for institution of Project Offices in Asian countries. General permission has been granted to foreign entities for fitting Project Office(s) in Asian country. This permission is subject to the adherence to the provisions of Regulation four, and Regulation five of the FEMA Regulation No. twenty two that bury alia includes the subsequent conditions to be glad.

    (i) It’s secured from associate Indian company a contract to execute a project in India; and

    (ii) The project is funded by inward remittal from abroad; or

    (iii) The project is funded by a bilateral or tripartite International Finance Agency; or

    (iv) The project has been cleared by associate applicable authority; or

    (v) An organization or entity in India or Asian countries grant the contract has been granted Term Loan by a Public institution or a bank in India for the project.

    In case the on top of criteria don’t seem to be met, the foreign entity must approach the Federal Reserve Bank for approval.

    The foreign company establishing a Project workplace in India or Asian countries is needed to furnish a report through the involved AD class – I bank branch to the involved Regional workplace of Federal Reserve Bank of India below whose jurisdiction the Project workplace is ready up at intervals sixty days of multinational of the new Project workplace with the subsequent details.

    (i) Name and address of the Foreign Company,

    (ii) Reference variety and date of letter grant the contract

    (iii) Particulars of the authority grant the comes / contract,

    (iv) The full quantity of contract,

    (v) Address / e-mail address, / phone number / fax number of the Project workplace,

    (vi) Tenure of Project workplace,

    (vii) Temporary details of the Project undertaken,

    (viii) Associate endeavor to the result that the Project workplace is eligible to avail of the final Permission below Regulation five AD branch with whom the account has been opened and also the foreign currency during which the account is opened

    OPENING OF FOREIGN CURRENCY ACCOUNT

    Project Offices will through their AD class – I banks open non-interest bearing Foreign Currency Account in Asian country subject to the following:

    (i) The Project workplace has been established in Asian country, with the final / specific permission of Federal Reserve Bank, having the requisite approval from the involved Project enabling Authority.

    (ii) The contract below that the project has been sanctioned, specifically provides for payment in foreign currency.

    (iii) The permissible debits and credits within the account shall be as under:

    Debits:

    Payment of project connected expenditure.

    Credits:

    * Foreign currency receipts from the Project enabling Authority, and

    * Remittances from parent / cluster company abroad or bilateral / tripartite international funding agency.

    (iv) The responsibility of guaranteeing that solely the approved debits and credits area unit allowed within the Foreign Currency Account shall rest exclusively with the involved branch of the AD.

    (v) The Foreign Currency account is also closed at the completion of the Project.

    REPORTINGS

    Foreign entities fitting Project workplace in Asian country ought to submit a report back to the Director General of Police (DGP) of the state involved wherever the project workplace has been established at intervals 5 operating days of the PO changing into practical. just in case of quite one workplace, the report ought to be stocked to every DGP of the involved state wherever the workplace has been established. The copy of the report in ought to even be filed with AD Bank by the fresh established Project workplace.

    The Project workplace shall conjointly submit associate annual activity certificate to the AD branch.

    COMPLIANCES WITH THE REGISTRAR OF firms AND DIRECTOR GENERAL OF POLICE

    Once Project workplace has been established, the PO is additionally needed to be registered with the Registrar of firms (“ROC”) in Asian country below the provisions of the businesses Act, 2013, at intervals a amount of thirty days from such date of multinational of the LO. The registration application is to be filed in e-form FC-1. constant is to be filed on-line with the mythical monster along side the requisite documents.

    List of Documents needed for registration

    – The certificate of incorporation/ registration. Latest Audited record of the human Foreign Company.

    – Board Resolution of the Foreign Company on the corporate Letter head

    – List of administrators and Secretary of the Foreign Company, punctually echt by any of its administrators.

    – Power of professional (POA) authorize to represent the Foreign Company before the run and mythical monster.