Vipin Sanger

The Covid-19 outbreak has compelled businesses to transcend from traditional to digital models of work. With business models evolving on account of mass digitization, the complexities from a regulatory and taxation standpoint have only amplified. The advent and access to technology have enabled businesses to carry on business-as-usual with minimal physical presence. Unsurprisingly, India has the second-largest online users in the world, with over 560 million internet users, and hence, from the viewpoint of its tax revenue base, digital businesses could not be overlooked. However, as is the case in other jurisdictions, Indian tax laws were suited for conventional business models such as brick and mortar stores and thus in dire need of an overhaul. Recent Amendments To ensure that value created digitally is appropriately taxed; two significant amendments were introduced in Indian taxation laws in the recent past – The “Equalization Levy” – a tax aimed at foreign digital...

Amendment to the Companies Act, 2013 (‘the Act’) seems to be a routine activity of the Indian Government. The Act was amended by the Companies Amendment Act, 2015, 2017, 2019 and now, in 2020 (as proposed). Every time, the object of the amendment is different – from the ease of doing business to ease of living for corporates.  With the Government’s objective of facilitating greater ease of living to law-abiding corporate, it had constituted Company Law Committee (‘Committee’) on September 18, 2019. The overall objective of the Government and the Committee was to decriminalize some more provisions of the Act based on their gravity and to take other necessary measures to provide further ease of living for corporates and companies in the country. The Committee submitted its report in November 2019.  Based on the recommendations of the Committee and an internal review by the Government, the Companies Amendment Bill, 2020 proposed amendment to various provisions of the Ac...

There are various Statutory Provisions under the Companies Act 2013 (the Act) which govern "Internal Financial Control" in the Company. Relevant provisions of the Act, for the applicability of Internal Financial Control is reproduced as under: 1) Section 134(5) of the Companies Act, 2013: The directors of the Listed Company, shall lay down internal financial controls to be followed by the company and that such internal financial controls are adequate and operative effectively.  Meaning of Internal Financial Control (IFC) as per Section 134(5) of the Act. "Internal financial controls" means the policies and procedures adopted by the organisation for ensuring: the systematic and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of trustworthy financial infor...