Liaison Office & Branch Office in India: RBI Approval, Annual Reporting & Closure — Complete Guide Quick Answer Foreign companies seeking to establish a presence in India without incorporating an Indian subsidiary can set up a Liaison Office (LO) or Branch Office (BO) under the FEMA (Establishment in India of a Branch Office or a […]
Category Archives: Valuation
Company Valuation, Business Valuation . Startup Valuation
Specified Domestic Transactions: Section 92BA Transfer Pricing — Compliance, Documentation & Benchmarking Guide Quick Answer: What Are Specified Domestic Transactions Under Section 92BA? Specified Domestic Transactions (SDTs) are certain categories of domestic transactions between related parties or associated enterprises that are subject to transfer pricing provisions under the Income-tax Act, 1961. Introduced by the Finance […]
DLOM in Indian Valuations: Chaffe & Finnerty Models 📌 Quick Answer: How is DLOM applied in Indian share valuations? Discount for Lack of Marketability (DLOM) is a valuation adjustment of typically 15–35% applied to shares of private Indian companies to account for illiquidity. The two most widely accepted quantitative models are the Chaffe protective-put model […]
Shareholders Agreement: 15 Key Clauses Every Founder Must Know 📌 Quick Answer: A shareholders’ agreement (SHA) is the foundational document governing the relationship between founders, investors and other shareholders in an Indian startup. The 15 key clauses every founder must understand span four categories: governance rights (board composition, reserved matters, information rights), economic rights (liquidation […]
Startup Exit Strategies: Acquisition, IPO, Secondary Sale & Buyback 📌 Quick Answer: Indian startup exits typically take one of four forms: acquisition (most common, governed by the Companies Act, 2013 and FEMA), IPO (regulated by SEBI ICDR Regulations), secondary sale (existing shareholders sell to new investors) or buyback (the company repurchases its own shares under […]
Transfer Pricing Documentation: Form 3CEB, Master File & Local File — Section 92D, 92E, Rule 10D, 10DA, 10DB Compliance Guide Quick Answer: What Is Transfer Pricing Documentation? Transfer Pricing Documentation refers to the three-tiered documentation framework that Indian taxpayers with international transactions or specified domestic transactions must maintain under Section 92D of the Income-tax Act, […]
15CA-15CB Foreign Remittance Filing Guide: Section 195 & Rule 37BB Compliance 📌 Quick Answer Every payment to a non-resident from India requires a Form 15CA declaration on the Income Tax e-filing portal, and if the remittance exceeds ₹5 lakh and is taxable, a Chartered Accountant must first issue Form 15CB certifying the correct TDS rate […]
India-to-Delaware Flip Structure: FEMA, Tax & ODI Compliance — Complete Guide 📌 Quick Answer Flipping an Indian startup to a Delaware C-Corp involves creating a US parent entity, executing a share swap or transfer so that Indian shareholders hold US equity and the Indian company becomes a wholly-owned subsidiary. This triggers compliance under FEMA Overseas […]
GST Section 74 Fraud Allegation: Defence Strategy 📌 Quick Answer Section 74 of the CGST Act is the most severe demand provision — it applies only where tax non-payment is attributable to fraud, wilful misstatement, or suppression of facts with intent to evade tax. The penalty is 100% of the tax demand, the limitation period […]
GST Refund Rejection: Appeal & Documentation 📌 Quick Answer GST refund applications under Section 54 of the CGST Act are rejected primarily due to documentation gaps, computational errors in Rule 89 formulas, and failure to establish the nexus between input tax credit and zero-rated supplies. At Virtual Auditor, we handle refund rejections at every stage […]