Entries by Staff Publication

Tax Provisions for HFCs, by Somesh Lund

The Income Tax Act, 1961[1] does not contain specific provisions relating to Housing Finance Companies (HFCs). Thus, all the general provisions for computation of income shall apply to HFCs. It can also be established that as the main source of income of HFCs is interest, income will be computed under section 28 to 43 of […]

Impact of GST on factoring transactions

By Abhirup Ghosh, (gst@vinodkothari.com) Factoring is a very popular product mode of working capital funding across the globe. In India, however, the picture is not quite rosy for factoring companies. Nevertheless, like every other thing in the country, factoring transactions will also be affected by the introduction of GST in India. Here in this article, […]

Small Companies to be now put on Fast Track Insolvency, by Barsha Dikshit

Insolvency and Bankruptcy Board of India (‘IBBI’) vide notification number IBBI/2017-18/GN/REG 012 dated 14th June, 2017 [1]has come up with Fast track Insolvency regime for small companies by introducing the Insolvency and Bankruptcy Board of India (Fast Track Insolvency Resolution Process for Corporate Persons) Regulations, 2017 (‘Fast Track Regulation’) and has appointed 14th June, 2017 […]

No pass through status to trusts if the beneficiaries are not identified on the date of institution of trust.

By Nidhi Bothra & Vijaylakshmi Agarwal, (finserv@vinodkothari.com) Executive summary This tax update summarises a recent ruling of Chennai Income Tax Appeallate Tribunal (“Chennai ITAT”) in the case of TVS Investments iFund Vs ITO[1] wherein the issue before Chennai ITAT was whether interest income of beneficiaries rolled over to another venture capital fund would be taxed […]

GST on securitisation transactions.

By Nidhi Bothra, (gst@vinodkothari.com) Transitioning into GST, assessing its impact on business and taking appropriate measures to bring about tax neutrality/ efficiency are the prime concern for all and sundry. GST therefore also has an impact on the securitisation transactions in India which now happens to be Rs. 85,000 crores[1] odd industry. In this article […]

“Should we get an MFI license?”

We often get clients asking us the question, do we need an MFI licence or is it enough to get an NBFC Loan Company licence? After all, the client reasons, being an MFI is simply to be under a tigher regulatory and compliance regime. This article seeks to outline the key pros and cons of […]