LAW DECODED

I am quite sure that most of you must have heard this name NIFTY or SENSEX whenever you read stock market-related news and few of you who invest in the stock market always keep your hear beat up and down with NIFTY up and down movement. And this is quite logical because after all, you have invested your hard-earned money into an unknown company. But if you among those who have not invested even a single penny in the stock market then you you do not need to worry.  Having said that I would say people do get panic when NIFTY falls. They start linking it with poor economic performance but measuring economic conditions solely on the basis of NIFTY or SENSEX is not a wise thing to do. What is NIFTY in the Stock Market? It is just an Index of the top 50 companies share prices which are listed on the National Stock Exchange (NSE) . In simple terms, NIFTY is made up of these 50 companies and whenever there is fluctuation even in single company share price NIFTY moves acco

Giving Loans and making Investment is quite common in big companies because there is always a tendency of routing of funds from one entity to another. Therefore, knowing proper compliances is inevitable, else your company can be caught up by the regulator. Here is a brief process you must follow while giving a loan or making the investment:

Though both private limited and public limited are registered as a company under the Companies Act, 2013, there are some subtle differences which distinguish one from another. You can notice the difference on the basis of followings points:

TDS means Tax deducted at Source. It is the amount withheld from payment of various kinds such as salary, contract payment, commission, etc. This withheld amount can be adjusted against your tax due.

SPICe+ FORM provides the following services viz. 1. Incorporation 2. DIN allotment 3.Mandatory issue of PAN 4. Mandatory issue of TAN 5. Mandatory issue of EPFO registration 6. Mandatory issue of ESIC registration 7. Mandatory issue of Profession Tax registration(Maharashtra) 8. Mandatory Opening of Bank Account for the Company and  9. Allotment of GSTIN (if so applied for).

Section 464 of Companies Act, 2013 defines  that no association or partnership consisting of more than 50 persons  [fixed vide rule 10 of Misc Rules 2017] shall be formed to carry on any business for gains unless it is registered under the companies Act 2013.

Few Important points regarding stamp duty on share certificate: 1. Stamp duty is payable on issue price not on the value of the security. 2. In a case of a large number of shares, stamp duty can be payable in a lump sum and this fact should be mentioned on share certificate. 3.  STAMP DUTY ON SHARE IS STATE SUBJECT BUT STAMP DUTY ON DEBENTURE IS UNION SUBJECT . 4. The company should pay the stamp duty according to the state in which the registered office of the company is situated, not in the state where Board Meeting is held to consider an issue of shares. 5. One issue is whether the stamp duty is  payable on duplicate/split share certificate  or not. Section3 of the Indian Stamp Act states that every instrument mentioned in the schedule of the Indian stamp act which, not having been previously executed by any person is executed in India; shall be chargeable with stamp duty of the amount indicated in  schedule I . 6. Stamp duty is payable on a face value of shares