According to exemption notifications, private limited companies are permitted to take loans from their shareholders after completing the procedures outlined in section 73 of the companies act, 2013. If you are looking for the best tax consulting company then keep reading this blog as DPT-3 compliance is important while filling the annual tax.
the Authority ruled that the e-procurement services provided by the applicant to IT E Department, Telangana Government falls within the meaning of supply as defined in the CGST Act, 2017.
GST on e-procurement services provided by the applicant and is not covered by Entry No.
6 of exemption Notification No.
12/2017- Central Tax (Rate) dated 28th June 2017.
The acronym EET stands for exempt-exempt-taxable, which means an investor can get two exemptions on their assets.
The first exemption indicates that a certain investment is exempt.
The second indicates that dividends and interest earned throughout the holding term are tax free as well.
taxable , on the other hand, means that the lump sum received at maturity or withdrawal is taxable.
An example of EET is an equity-linked savings plan (ELSS).
An ELSS has a three-year statutory lock-in period and is eligible for a tax exemption under the IT act, which allows for a tax exemption up to $1.5 lakh.
In some situations, the directors of a solvent limited company may want to close the business.
For example, it may be for tax reasons, the company may be part of a larger business and is no longer required, or the directors may simply wish to retire and there is nobody to take over the business.
Whatever the reason, the directors can choose to enter a Members’ Voluntary Liquidation process.Is a Members’ Voluntary Liquidation process right for your company?A solvent company enters into an MVL for a variety of reasons, including:The directors and shareholders want to retire, transferring the assets and monies to them personally and closing the companyThe company is part of an umbrella business and is no longer requiredThe directors wish to close the company, realise the assets and start a new companyThe directors and shareholders decide to close the company for tax reasons.
The two main tax advantages are Capital Gains Tax (CGT) and the MVL Entrepreneurs Relief, which is now known as Business Asset Disposal Relief.With CGT, currently the annual exemption is £12,000.
Therefore any capital to the point of £12,000 is subject to 0% tax.For Business Asset Disposal Relief, there is a strict criteria that shareholders must meet in order to qualify for the relief tax:A shareholder must hold a minimum of 5% of the company’s sharesA shareholder must hold the position of company directorA shareholder must have owned their percentage of shares for at least 12 monthsThe company must have been trading The Members’ Voluntary Liquidation process must be completed within 36 months of the company ceasing to tradeThe current lifetime limit for Business Asset Disposal Relief is £10 million.Another advantage to an MVL is that shareholders can be paid using assets, such as land, bonds or property, rather than cash, either from the company’s reserves or realised assets.
This is known as distributions in species.There are certain criteria to be met in order to enter a Members’ Voluntary Liquidation process.
