In the product development and testing phase, startup will extensively interact and transact with vendors and customers. This increases the probability of unforeseen liabilities and in turn the necessity of limited liability. Therefore, at this stage basic corporatization is advisable. This would mean that entrepreneurs may convert their partnership to LLP (limited liability partnership). Let… Continue reading Procedure for conversion of Partnership firm into LLP
Author: Bhaskara Consulting Group
Equalization levy – Evolution from ‘Google tax’ to ‘Amazon tax’
Introduction: Rapid penetration of information and communication technology (ICT) across world has led emergence of new business models. Physical presence is no longer necessary to conduct business in any part of the world. These new virtual business models have created new challenges for tax authorities which so far relied on concept of jurisdiction to tax… Continue reading Equalization levy – Evolution from ‘Google tax’ to ‘Amazon tax’
Startup valuation – An inexact science?
In a recent judgment, Delhi High Court reminded taxmen that the valuation of startups in not an exact science. Taxmen ought not to interfere with valuation arrived at experts in the field unless they can demonstrate the flaw in method adopted for valuation. However, before taxability, an entrepreneur should understand popular valuation methodology. Startup Valuation:… Continue reading Startup valuation – An inexact science?
Entrepreneur’s guide to GST – Input Tax Credit (ITC)
Like every indirect tax, input tax credit (ITC) is an important component of GST law. This article is aimed to enable entrepreneurs to evaluate GST impact on day-to-day procurement decisions without professional help. Meaning: Input tax credit is the GST paid on goods/services procured by the registered business which can be utilized to reduce tax on… Continue reading Entrepreneur’s guide to GST – Input Tax Credit (ITC)
Guide for Indian Food Delivery Start-Ups in 2021 (2/2)
In our previous post, we discussed typical business models and key business metrics of food delivery startups. Let’s continue the discussion on revenue streams and cost structure in the food delivery space. Revenue streams Since food delivery businesses are marketplace which connect restaurants to customers, the primary revenue streams are two-fold: Commission per order (as… Continue reading Guide for Indian Food Delivery Start-Ups in 2021 (2/2)
Guide for Indian Food Delivery Start-Ups in 2021 (1/2)
The convenience of ordering food on-click coupled with the necessity arising out of COVID-19 pandemic has enabled the proliferation of food delivery start-ups in recent times. Multiple food options at tips of the fingers and quick delivery at any time and place have made such start-ups popular among millennials and Gen-Z. Therefore, the growth of… Continue reading Guide for Indian Food Delivery Start-Ups in 2021 (1/2)
What is the ideal time for a new business to get registered under GST?
Do I have to register my business under GST? Should I take burden of GST compliance right away? What is the ideal time to get registered under GST? What documents are required for getting GST number? These are few common questions faced by many budding entrepreneurs. Under the GST law, business can register either voluntarily… Continue reading What is the ideal time for a new business to get registered under GST?
Exploring the New MSME Registration (UDYAM)
Meaning of UDYAM: The notification issued by the Government says that from July 01, 2020, an MSME will be known as UDYAM, and the enrolment or the registration process will be known UDYAM Enrollment Registration. Eligibility Criteria: Ministry of Micro, Small and Medium Enterprises vide its notification dated 1st June read with notification 26th June, 2020 has revised criteria for classification… Continue reading Exploring the New MSME Registration (UDYAM)
Company Fresh Start Scheme, 2020
In these testing times of the outbreak of the COVID-19 pandemic, businesses are the net sufferers. All companies are required to follow statutory compliances annually as per the provisions of the Companies Act, 2013. A company that fails to adhere to the compliances is called a defaulting company. Such companies are tagged as Non-Compliant by… Continue reading Company Fresh Start Scheme, 2020
Write-up on MSME & TReDS
In these testing times of the outbreak of COVID-19 pandemic, businesses are the net sufferers. Coming months may see the businesses facing cash crunch and experiencing working capital problems. To counter this, one of the measures that the Government of India has introduced for the Micro, Small and Medium Enterprises (MSME’s) is facilitating finance of… Continue reading Write-up on MSME & TReDS