Suspension Of GST Registration | Online Chartered

  Introduction and meaning: Related party transactions (RPTs) are an integral part of any business, as companies often engage in transactions with parties that have some sort of relationship with the company. The Companies Act 2013 in India defines related parties as directors, key managerial personnel, and their relatives, companies in which a director or key managerial personnel or their relatives have a substantial interest, and firms and other entities in which a director is a partner or a member. These transactions can be in the form of sales, purchases, services, loans, or any other type of agreement. The Companies Act 2013 has laid down strict rules and regulations for related party transactions to ensure that they are conducted at arm’s length and are in the best interest of the company and its shareholders. The Act requires companies to disclose any related party transactions in their financial statements and to obtain prior approval from the Board of Directors and shareho...

  Introduction : Sections 185 and 186 of the companies act 2013 lays down the provisions on how the company can utilize its funds to provide loans. The purpose of introducing these provisions is to safeguard the interest of stakeholders. Since there is huge money of from the public at large involved in the company, therefore it becomes necessary for regulating authorities to introduce such sections to safeguard the interest of all those investors who have invested their funds in the company. Such investors include banks, financial institutions, governments and people at large (shareholders, debenture holders or bondholders). While running the business in the format of body corporate, the basic questions that arise in mind are what are how a company can avail the funds, how the company can provide loans to its directors and others, how much a company can give loan or how much a company can invest in different ways. All these questions are dealt with herewith.   Read More…

  Introduction : The term GTA stands for Goods Transport Agency. This term has its importance under GST because of the unique taxability of these services. The legal position of a person who is providing service of transportation of goods (Except GTA) is exempt from tax i.e GST does not apply to such supplies. The GST is applicable only if the person supplying goods is a Goods Transportation Agency. The recipient of this service is liable to pay tax under the reverse charge mechanism. The whole concept has been cleared hereinafter.  Read More…