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Practice Area Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online The updated regulations now permit privately placed Infrastructure Investment Trusts (InvITs) to issue subordinate units exclusively to project sponsors upon acquiring an infrastructure project. This adjustment aims to reconcile the valuation disparities between the sponsor (acting as the seller) and the InvIT (acting as the buyer). About InvITs: InvITs serve as investment vehicles akin to mutual funds, enabling investors to participate in infrastructure ventures such as toll roads, power lines, and pipelines. These trusts are established by infrastructure companies, approved by SEBI, and designated as borrowers under the SARFAESI Act 2002. The key entities involved in an InvIT include the trustee, sponsor, investment manager, and project manager. InvITs generate revenue through tolls, rents, interest, or dividends from their investments, subsequently distributing taxable earnings to investors. Significance of InvITs: Accessibility: Investors can commit modest sums. Marketability: InvITs are listed on stock exchanges, facilitating easy exit. Transparency: Investors receive comprehensive updates on investment allocations. Security: SEBI regulations ensure a regulated environment for the trusts. Challenges in InvIT Investing: Investing in InvITs poses operational, refinancing, and return-related risks.

Practice Area Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online In line with the Food Safety and Standards Act, 2006, the Food Safety and Standards Authority of India (FSSAI) firmly prohibits the commercialization of human milk and its derivatives. This directive extends to state licensing authorities, urging them to abstain from granting licenses for such activities. Human milk, renowned for its array of bioactive molecules safeguarding against infections, inflammation, and fostering immune development, has been a cornerstone of newborn nutrition for centuries. Donating breast milk for infants in need has been a longstanding tradition globally, spanning over a century. Outlined in the national guidelines on Lactation Management Centres (LMCs) in Public Health Facilities, the voluntary nature of breast milk donation is emphasized. It’s essential to note that such donations should occur solely within healthcare facilities and not be promoted in community settings. The ramifications of commercializing human milk are manifold. Firstly, it perpetuates the exploitation of low-income women, jeopardizing both their well-being and that of their children, while catering primarily to affluent consumers. Moreover, concerns regarding quality and safety loom large, with potential risks stemming from pathogen transmission and chemical residues. Furthermore, the commodification of human milk exacerbates socioeconomic disparities, as the exorbitant costs associated with it may impede access for marginalized populations. In conclusion, the FSSAI’s stance against the commercialization of human milk underscores the imperative to prioritize public health and equity. Understanding the multifaceted risks and implications is crucial in safeguarding the well-being of both mothers and infants. This is to further inform that FSSAI License in India is required by the business engaged in food business

On Tuesday, the total market capitalization of all stocks listed on the BSE briefly exceeded $5 trillion, marking a significant milestone for India. This achievement places India as the fifth country, following the US, China, Japan, and Hong Kong, to reach this mark. However, by the close of Tuesday’s trading, it settled at $4.97 trillion (₹414.62 lakh crore). The journey to the $5 trillion milestone took less than six months, accomplished in 117 trading sessions. Notably, the market value of BSE-listed companies surpassed $4 trillion for the first time on November 29, 2023. Key contributors to the recent trillion-dollar surge in market capitalization included Reliance Industries, State Bank of India, LIC, Bharti Airtel, and Hindustan Zinc, accounting for nearly 15% of the increase. Reliance Industries alone saw an addition of $38 billion (₹3.19 lakh crore) in market cap since November 29, while SBI and LIC added $28 billion (₹2.33 lakh crore) and $26 billion (₹2.17 lakh crore), respectively. The journey of BSE market capitalization milestones is notable: hitting $1 trillion in May 2007, $2 trillion in July 2017, and reaching the $3 trillion mark in May 2021. Presently, India contributes 4.19% of the global market capitalization, up from 3.6% at the beginning of the year. Since January 1, 2024, India’s overall market capitalization has surged by 11.5%, equivalent to ₹42.4 lakh crore. Indian markets are seeing rapid growth due to increased trust in the market and private companies which can also be seen in the growing startup culture in India, specially in tier 1 and tier 2 cities which can be understood by looking at the number of Company Registration in Delhi and Company Registration in Jaipur In parallel, the Nifty Midcap 150 index achieved an all-time high on Tuesday, continuing its recent record-breaking streak primarily fueled by a surge in public sector company shares. The index closed at 19,413, marking a record high, while the benchmark Nifty ended at 22,529.05, with a slight 0.1% gain. The India VIX, indicating market volatility, rose by 6.3% to 21.81, signaling traders’ concerns about near-term equity risks. Over the past year, the Midcap 150 index has soared by 7,077 points, or 57%, with notable contributions from 10 stocks, including Hindustan Zinc, Suzlon Energy, Vodafone Idea, BHEL, and PB Fintech, which accounted for nearly 28% of the gains, totaling 1,960 points.

Income Tax Return Filing Income Tax Appeal Income Tax Notice GST Registration GST Return Filing FSSAI Registration Company Registration Company Audit Company Annual Compliance Income Tax Audit Nidhi Company Registration LLP Registration Accounting in India NGO Registration NGO Audit ESG BRSR Private Security Agency Udyam Registration Trademark Registration Copyright Registration Patent Registration Import Export Code Forensic Accounting and Fraud Detection Section 8 Company Foreign Company 80G and 12A Certificate FCRA Registration DGGI Cases Scrutiny Cases Income Escapement Cases Search & Seizure CIT Appeal ITAT Appeal  Auditors Internal Audit Financial Audit Process Audit IEC Code CA Certification Income Tax Penalty Notice u/s 271(1)(c) Income Tax Notice u/s 142(1) Income Tax Notice u/s 144 Income Tax Notice u/s 148 Income Tax Demand Notice Psara License FCRA Online A looming shift in British tax policy threatens to disrupt the financial landscape for non-resident Indians (NRIs), recent migrants, and families eyeing the UK as their new home. Expected to kick in by April 2025, the new tax regime spells out increased tax burdens and necessitates meticulous financial planning, potentially dimming the allure of the UK for prospective migrants. Under the current tax setup, NRIs enjoy favorable treatment whereby their Indian income and capital gains remain untaxed unless brought into the UK. However, the proposed changes will drastically alter this scenario. New arrivals will only benefit from tax exemptions on foreign income for the initial four years upon residency, thereafter facing taxation on worldwide income, including earnings from India such as rent, bank deposits, and stocks. NRIs who have recently migrated may still claim relief on foreign income for a limited period. For existing and prospective Indian families considering migration to the UK, careful planning becomes imperative. While some may opt to delay relocation in anticipation of potential policy changes following the next UK election, others must assess the impact on various income streams and explore alternative jurisdictions offering similar tax benefits. The proposed changes also necessitate adjustments for wealthy NRI families with assets held in offshore trusts.  However, the shift towards taxing global income raises questions about the UK’s attractiveness for migrants. While the non-domiciled regime has historically drawn wealthy Indians due to tax advantages, the shortened exemption period may erode the UK’s appeal compared to countries with more lenient tax regimes. Nevertheless, the proposed changes reflect broader global trends towards reducing tax evasion and ensuring fair taxation. Kunal Shah from BDO India emphasizes the shift towards preventing double taxation, signaling a broader paradigm shift in tax policy worldwide.

The market capitalization of BSE-listed companies soared past ₹400 lakh crore, marking a historic milestone propelled by robust domestic fund inflows, with the Sensex edging closer to the 75,000 mark. Within just nine months, the market added the last ₹100 lakh crore, fueled by enthusiastic investments from local investors. Back on July 5, 2023, the market celebrated crossing the ₹300 lakh crore market cap threshold when the Sensex stood at 65,446. Since then, the index surged over 14%, but the broader market cap witnessed an impressive 34% leap. Non-index stocks, particularly mid and small-cap entities, witnessed significant gains during this period. On Monday, the Sensex hit a new lifetime pinnacle of 74,869.3, eventually closing at 74,742.5, up 0.7%, while the Nifty reached 22,697.30 before settling at 22,660.95, also up by 0.7%. Recent entrants to the market, including Jio Financial Services, contributed approximately Rs 8 lakh crore to the market capitalization since July 5, 2023. Notably, Reliance Industries led the pack by adding Rs 2.61 lakh crore during this period. Other top performers include HDFC Bank, TCS, and Life Insurance Corporation of India, each adding substantial value to the market. The growth momentum extended beyond large caps, with companies like L&T, Tata Motors, NTPC, SBI, and Adani Green witnessing a surge of over Rs 1 lakh crore in market value since July last year. This exponential rise in market capitalization is emblematic of India’s vibrant capital markets, witnessing heightened retail investor participation, with demat accounts surging from 106 million to 151 million within a year. India’s economic prowess is attributed to the Aspirations of people of India to uplift themselves, their lifestyle, and their standard of living. Their is a zeal in Indian youth today both working in corporate jobs and/or having their own startups to make change their current status not only for themselves but also for the coming generations. In 2023 alone, domestic institutional investors injected Rs 1.85 lakh crore into the market, with investments continuing strong in 2024, totaling Rs 1.12 lakh crore so far. Since April 2023, the overall market capitalization of BSE-listed companies witnessed a staggering 55% surge, equivalent to Rs 143 lakh crore. In comparison, the Sensex registered a 27% gain during the same period. India’s stock market journey reflects an amalgamation of resilience, growth, and investor confidence, setting the stage for a dynamic economic landscape ahead. 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A licensee is an entity, person, or company given authorization by another entity, person, or company to use an asset that the potential licensee wants to use. When providing a licensee with a license to use a product or asset that they own, the licensor will often be paid a fee to reimburse them for the trouble.  Additionally, that remuneration can often be seen to reward them for owning the wanted asset. Patents are an excellent example of this in everyday life. Assets that are patented are commonplace in many industries. The patent owner will often become a licensor who then provides licenses to use that patented asset to licensees.  What Is a Licensee? A licensee is any business, organization, or individual that has been granted legal permission, or certain rights by another entity who owns certain assets, to engage in any activity related to these assets. The permission, or license, can be given on an express or implied basis. Licensees will compensate the owner of the license via an upfront payment, ongoing fees, royalties, or some other revenue-sharing arrangement. A licensee has received legal permission from another party to conduct some sort of business over which the other party holds some control, ownership, or authority. The licensee may pay outright for this permission, known as a licensing fee, or may make payments based on the results of the business arrangement, known as licensing revenue.Many variations on the licensing relationship exist in the business world. Musical performances, recordings, and broadcasts often contain royalty agreements for licensing music. Software programs may include licensing agreements between corporate end-users and the copyright holders of the underlying code. Patent holders of certain key technologies may demand payment for licensing its use in other products (e.g., in consumer electronics or cars). Some other common examples of licensee arrangements include the following: Franchisees- Under a franchise agreement, the franchisee is granted permission to use the franchisor’s assets, such as supply chain, trademarks, or other intellectual property for a certain period of time. Typically, the franchisee is granted exclusive rights to those assets within a certain localized area.Examples of franchisees include the owner-operators of many retail stores or restaurants including some fast food locations. Brand Licensing- In brand licensing, the licensee is permitted to use a licensor’s trademarks and logos on its own manufactured products, such a sports apparel or toys.For instance, a hit superhero movie may be released that generates a large fan base. The characters in the film are the property of the movie studio, but they decide to solicit licensing agreements from various producers of consumer goods. As such, the likenesses of these characters may appear on clothing, posters, lunch boxes, and in games. They may also appear as action figures or dolls. Note that the producers of all these items are unaffiliated with the movie studio and must pay fees or royalties per the licensing agreements that represent the movie’s brand. Operating License- A licensee may also be an entity that has been granted legal or regulatory permission to operate. Such a license is a mechanism for governments to oversee, and in many cases tax, certain business operators. A liquor license is an example of this type. By issuing the license, a city or county ensures compliance with local regulations regarding alcoholic beverages and receives an additional revenue stream specifically associated with the sale of alcohol.Many types of businesses are required to obtain an operating license before being able to legally do business.1 These can range from food trucks to banks. Operating licenses can be granted at various levels of governance from local or state governments (e.g., for food trucks) all the way up to federal regulators (e.g., in the case of banks).A license to sell securities is a sort of similar permission granted on a state or nationwide basis. National licenses are granted by Financial Industry Regulatory Authority (FINRA), a private regulatory authority that enforces the rules governing registered brokers and broker-dealer firms in the United States. Examples include the Series 7 and Series 63 licenses. Implied License- An implied license can be a more ambiguous relationship, as no express permission has been legally granted. The classic example is the implied permission a firefighter has to enter a burning building, even if the owner is not present to formally approve the entry. In business, this concept tends to involve a licensee interpreting communications with a licensor as implied permission to make use of an asset. Real Estate Licensees- An important use of licensee refers to permissions granted to access real estate. Typically, a licensee of a property has been granted express permission to make use of land by the owner. The property in question is not open to the general public.A common example used in law schools is that of a hunter who has written permission to hunt on a landowner’s property. Without this permission, the hunter would be considered a trespasser and under very little legal protection from hazards encountered while hunting there. Nor could the hunter be considered an invitee, a legal term to describe a guest with recourse to take legal action in response to damages suffered while in the property. Other Requirements- In addition to paying any fees or revenues associated with being granted a license, licensees are often subject to requirements that they treat the granted permission responsibly. The hunter is expected to leave the property in the condition they found it. The securities broker is required to recommend investments appropriate to the client. The liquor store operator is prohibited from selling to underage customers.A license does not grant free rein to exploit the licensed rights, whether they be to a public or private asset. How does a licensee work? Given that a licensing agreement between a licensor and a licensee permits the licensee to use property belonging to the licensor, how does the role of the licensee work? And what is the difference between a licensee vs invitee?  With the help of a strong and credible licensing agreement, these answers should be clear. It should identify what is expected of the licensee when using the licensor’s property and what the payment structure in return should

Clawback is a provision under which money that’s already been paid out must be returned to the employer or the firm. This is a special contractual clause, used mostly in financial firms, for money paid for services to be returned under special circumstances or events as stated in the contract. Clawbacks involve a penalty, making them different from simple repayments or refunds. The primary aim of such a provision is to prevent managers from using incorrect accounting information. According to research, after the provision of clawback is included, investors develop more confidence in a firm’s financial statements. Before 2005, clawback provisions in Fortune 100 companies were lower than 3%, but rose dramatically, to 82%, by 2010. The provision of clawback is aimed at striking a balance between economic and community development and corporate welfare. It is mostly used in securing tax incentives, abatements, refunds, and grants. What Is a Clawback? A clawback is a contractual provision whereby money already paid to an employee must be returned to an employer or benefactor, sometimes with a penalty.Many companies use clawback policies in employee contracts for incentive-based pay like bonuses. They are most often used in the financial industry. Most clawback provisions are non-negotiable. Clawbacks are typically used in response to misconduct, scandals, poor performance, or a drop in company profits. How Do Clawbacks Work? There is a big business headed by a Chief Executive Officer (CEO). The annual reports of the company show that the CEO worked hard to keep the company profitable. So, the company wants to reward his efforts and a contract is signed, stating that if the sales of the company increase by at least 10% within the next two years, then the CEO will be paid a bonus of $200,000. In the corporate financial statement, it shows that the company registered a profit of 13% in the two years and as a result, the CEO is rewarded with the promised amount. After an audit of the company, it is found that the profits were over-reported and the profit was actually 9.5% and not 13% as stated in the previous report. In a situation like that, under the clawback provision, the company can take back the bonus amount previously paid out to the CEO. Depending on the specific clawback clause, the CEO may also have to pay a penalty because the original financial reports submitted were flawed. Uses of Clawback Provisions Medicaid recovery: Medicaid is allowed to recover the money paid for the healthcare of a Medicaid recipient who has died and therefore obviously no longer needs the care. All states aim to recover Medicaid money spent in advance on long-term care such as nursing homes. Mortgage lending: Most banks use clawback provisions to recover money from unprofitable home loans. Life insurance: In case of cancellation of a policy, a provision of clawback might require the benefits and payments previously received to be repaid. Executive pay agreements: If there is any breach of an agreement by an executive, and he or she goes on to work for a competitor or a rival company within a certain number of months as stated in the contract, then the executive might be required to reimburse the company that previously employed them, according to the provisions of clawback. Pensions: Pensions can be clawed back if it is found that there has been some fraudulent activity and suppression or adulteration of information. Dividends: Under certain circumstances, such as bankruptcy, dividends can be clawed back. Government contracts: If the contractor has failed to meet specified quality standards or if the requirements of the contract are not fulfilled, then the provision of clawback may be exercised upon the contractors. Clawback Provisions in the Financial Recovery Act (FRA) Clawback provisions received more attention from authorities and regulators following the Global Financial Crisis of 2008. A ruling on clawback provisions was issued as a part of the Dodd-Frank Financial Reform Legislation by the Securities and Exchange Commission in July 2015. According to the ruling, companies need to institute clawback provisions against executive compensation that is due to intentional over-reporting. Executives can also be asked to return stock options exercised or bonuses received if the profits of the company do not match the specified levels. FAQs What is a clawback option? A clawback option is a contractual provision that allows an employer or organization to recover previously paid compensation or benefits from an employee under specific circumstances. When are clawback options typically implemented? Clawback options are often implemented in situations where an employee’s performance or behavior negatively impacts the organization or if there is a financial restatement due to errors or misconduct. What triggers a clawback provision? Common triggers for clawback provisions include financial restatements, violation of ethical or legal standards, intentional misconduct, or a significant decline in an individual’s performance. 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dynamic business landscape, companies are continually seeking innovative ways to optimize their production processes. One such strategy that has gained remarkable popularity in recent years is contract manufacturing. This business practice allows businesses to collaborate with specialized contract manufacturers to produce goods, components, or products. In this article, we will explore the essential aspects of contract manufacturing, its advantages, disadvantages, and how to select the right contract manufacturer. We will also delve into the significance of Non-Disclosure Agreements (NDAs) in contract manufacturing. What Is Contract Manufacturing? Contract manufacturing has revolutionized the way companies produce goods, and it is essential to understand its core principles. Contract manufacturing involves partnering with specialized contract manufacturers to produce various goods, components, or products on behalf of a hiring company. To delve deeper, it’s crucial to know what a “contract manufacturer” is, as they are the cornerstone of this arrangement. In simple terms, a contract manufacturer is a third-party manufacturing firm with the expertise, infrastructure, and resources to produce goods based on the specifications provided by a hiring company. The process begins with a legally binding contract manufacturing agreement that defines the roles, responsibilities, and expectations of both parties. In essence, contract manufacturing is a collaborative business model in which a hiring company leverages the expertise and facilities of an external manufacturer to meet its production demands. Types of Contract Manufacturing 1. Private Label Manufacturing- In this form of contract manufacturing work, the contractor produces a finished product based on the specific requirements of the hiring company. The completed product is either sent to an inventory warehouse or directly to retail stores. Sometimes, these products are the result of the assembly of various components, which the contractor manages before shipping. This arrangement is well-suited for businesses with a clear product vision who want to outsource the entire production process. 2. Individual Component Manufacturing- In this category, contract manufacturing is responsible for creating a product manufactured from single component that will be integrated into a more complex final product. Their sole responsibility is the manufacturing of this component, one of many components developed during the product’s creation. Other contracted companies are responsible for assembling this component into the final product. This approach is beneficial for companies with some in-house manufacturing capabilities but cannot produce all the required components for their end product. 3. Labor or Service Subcontracting- In this scenario, contract manufacturers play a role as subcontractors, handling a specific part of a larger manufacturing process. They are hired by a general contractor in need of their specialized services. This is particularly useful for the production of intricate products, as contract manufacturers can offer cost savings and faster production cycles. 4. End-to-End Manufacturing- Similar to private label manufacturing, the product or component is entirely outsourced. However, in this case, the contract manufacturer is more involved in product design and offers insights to the product manager. Consequently, the hiring company isn’t solely responsible for specifications, and the contract manufacturer takes on a significant portion of the product design work. This arrangement is ideal for companies looking to rapidly-produce a cost-effective, quality product while sharing design responsibilities with the contract manufacturer. Contract Manufacturing in Different Industries 1. Pharmaceutical Contract Manufacturing- In the pharmaceutical industry, companies often outsource the production of drugs, medicines, and supplements to specialized contract manufacturers. This approach enables pharmaceutical firms to concentrate on research and development while contract manufacturers handle the entire production process. 2. Metal Fabrication Contract Manufacturing- Companies operating in the metal fabrication industry may choose to outsource the production of components or parts. Contract manufacturers in this sector possess the manufacturing equipment and expertise required to produce high-quality metal components efficiently. 3. Food Industry Contract Manufacturing- In the food industry, businesses often collaborate with contract manufacturers to produce a wide range of food products for multiple customers, from snacks and beverages to frozen meals. This practice offers cost savings and ensures that the final product meets industry standards. 4. Electronics Contract Manufacturing- Electronics companies may hire contract manufacturers to produce circuit boards, devices, or other electronic components. Contract manufacturers have the proper equipment and expertise to produce electronic products efficiently. 5. Automotive Contract Manufacturing- Car manufacturers may outsource certain components or production steps to contract manufacturers, resulting in cost savings and allowing the car companies to focus on their core competencies. Benefits of Contract Manufacturing 1. Cost Savings- Outsourcing production to a contract manufacturer often results in significant cost savings. These savings can come from reduced labor costs, economies of scale, and the ability to share overhead costs with the contract manufacturer. Additionally, companies save money by avoiding the need to invest in their manufacturing facilities and equipment. 2. Quality Control- Contract manufacturers are experts in their respective fields and have the necessary knowledge and equipment to ensure high product quality. By partnering with a reputable contract manufacturer, businesses can benefit from improved product quality, meeting or even exceeding quality standards. 3. Production Efficiency- Contract manufacturers have the infrastructure and expertise to produce large quantities of products efficiently. This is especially valuable when companies face production demands that exceed their in-house capabilities or require a rapid turnaround to meet production deadline. 4. Focus on Core Competencies- By outsourcing production to contract manufacturers, businesses can concentrate on their core competencies. This allows businesses save money and to allocate more resources to research, development, marketing, and other aspects of their business. 5. Intellectual Property Protection- When partnering with a reputable contract manufacturer, you can be confident that they will protect your intellectual property and trade secrets. Clear provisions regarding IP protection can be included in the contract manufacturing agreement to ensure that your company’s proprietary information is secure. 6. Risk Mitigation- Contract manufacturing can help businesses mitigate risks associated with inventory costs, market fluctuations, and unpredictable changes in demand. Companies can adjust production quantities as needed, avoiding excess inventory or stock shortages. 7. International Expansion- If you’re considering entering international markets, contract manufacturing can help you overcome cultural differences and market entry barriers.