Workshop on NBFCs: Ensuring Strong Compliance Management
| Register here: https://forms.gle/311C3q9zreMJBK236 |
Loading…
Loading…
Posts
Loading…
Reload document 
Open in new tab Workshop on Intricacies of Ind AS 109 for regulated lenders
Register here : https://forms.gle/311C3q9zreMJBK236
Loading…
Taxability of Corporate Guarantees under GST
– Dayita Kanodia, Executive | finserv@vinodkothari.com
A person who can’t pay gets another person who can’t pay, to guarantee that he can pay.
– Charles Dickens
Background
It is a common practice for companies to issue guarantees for loans taken by their group companies. When transactions happen between related parties, there is always a likelihood of them being not at arm’s length.
Accordingly, this has led to questions that whether such corporate guarantees given without any consideration shall be liable to GST. A Supreme Court ruling issued earlier this year has clarified that corporate guarantees issued without any consideration shall not be liable to service tax.
Therefore while the situation in case of levy of service tax has been clarified by the ruling, the same has led to a lot of ambiguities and questions for the levy of GST on such guarantees. This article aims to clarify the same.
Read more →Full Day Workshop on NBFCs: Recent Regulatory Changes
| Register Here – https://forms.gle/KHUzQtf868LihCPA7 (Early Bird Rates upto 02 September) |
Loading…
FAQs on Penal Charges in Loan Accounts
– Team Finserv | finserv@vinodkothari.com
Updated as on 4th March 2024
| The Circular is applicable from April 01, 2024. Please feel free to drop your queries in the comment box below and we will try our best to reply at the earliest. |
RBI on August 18, 2023 came up with the circular Fair Lending practice – Penal charges in Loan accounts (‘Circular’). The Circular restricts entities from charging penal interest on loan accounts, instead they should levy penalty or penal charges..
We have developed a set of FAQs on the press release and updated the same based on this Circular read along with the RBI Notification on Fair Lending Practice – Penal Charges in Loan Accounts: Extension of Timeline for Implementation of Instructions dated December 29, 2023 and FAQs released by RBI where we intend to answer some of the critical questions relating to the penal charges in loan accounts.
Our write-up on the topic can be read here – Penal charges not a cash-cow for lenders
Read more →FAQs on Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans
– Team Finserv | finserv@vinodkothari.com
On August 18, 2023, the RBI came up with a circular on Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans (‘Circular) casting certain obligations and disclosure requirements on Regulated Entities (REs) at the time of reset of floating interest rate on EMI based Personal loans. Accordingly, this Circular shall be adhered to by all applicable entities at the time of reset of floating interest rate on such loans.
We have developed a set of FAQs on the Circular, where we intend to answer some of the critical questions relating to the actionables by the REs at the time of reset of floating rate.
Further, our detailed article on this topic can be read here – RBI streamlines floating rate reset for EMI-based personal loans
Read more →NBFC- Enterprise Risk Assessment
-Subhojit Shome, Assistant Manager | finserv@vinodkothari.com
| Our Youtube video on the topic can be accessed here – https://www.youtube.com/watch?v=7EFeIdb-Wkc |
Loading…
YouTube live: RBI Guidelines on Default Loss Guarantee
Anita Baid in conversation with Vinod Kothari
Live on YouTube – 20th June, 2023 | 5:00 P.M. – https://www.youtube.com/@vinodkotharicompany3966/videos
Loading…
RBI regulates outsourcing of IT Services by financial entities
-Anirudh Grover, Executive | finserv@vinodkothari.com
1. Introduction
With the penetration of the internet in India, newer and more efficient technologies are being built and these dynamic technologies are being leveraged by various sectors of the economy, and the financial sector is one of them. Financial institutions have extensively been outsourcing their IT services requirements to third parties in order to get easier access to newer technologies. In this process of availing the services of a third party, financial institutions expose themselves to significant financial, operational, and reputational risk as the Reserve Bank of India has pointed out.
Accordingly, the RBI in the year 2022 had in its Statement on Developmental and Regulatory Policies proposed to issue draft directions on outsourcing of IT services since the existing Directions on Managing Risks and Code in Outsourcing of Financial Services (‘Guidelines on Outsourcing of Financial Services’) as provided for in the Master Direction- Non Banking Financial Company- Systemically Important Non Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 (Updated as on December 29, 2022) (‘SI Directions’) specifically excluded IT services from its ambit. Following which on June 23, 2022 the RBI issued Draft Master Direction on Outsourcing of IT Services (‘Draft IT Outsourcing Directions’) for public comments. We had briefly in our previous write up discussed the introduction of the Draft IT Outsourcing Directions.
Read more →