Conversion of Section 8 company into Private Company

THE PROVISIONS WHICH DEAL WITH THE CONVERSION OF SEC 8 COMPANY INTO PRIVATE COMPANY Section 8 of the Companies Act, 2013. Rule 21 of the Companies Incorporation Rules, 2014. Rule 22 of the Companies Incorporation Rules, 2014. Rule 23 of the Companies Incorporation Rules, 2014 The procedure for conversion of sec 8 company into private company as follows:- 1. Company […]

Income tax Synergy Insolvency

Covid – 19 impact:

Date of filing Income Tax returns for FY 19-20 extended Direct Tax Measures announced All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately. Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 […]

COVID 19 - FINANCE Synergy Insolvency

Loans to stressed MSMEs will be recast till December 2020: RBI

After a nudge by the Union Budget, the Reserve Bank of India (RBI) has decided to extend the benefit of one-time restructuring without an asset classification downgrade to standard accounts of GST registered MSMEs that were in default on January 1, 2020. The move will benefit the eligible MSME entities which could not be restructured under the […]

COVID 19 - FINANCE Synergy Insolvency

Covid-19 relief: SBI relaxes payment timeline for one time settlement

State Bank of India (SBI) has extended the timeline for payment of settlement amount under its one-time settlement scheme by three months. Now, customers on board the scheme, SBI OTS 2019 / Rin (Loan) Samadhan 19-20 / General compromise, can meet payment obligation by June 30, 2020. Under One Time Settlement (OTS) 2019, the extension […]

COVID 19 - FINANCE Synergy Insolvency

SIDBI to provide emergency working capital of up to Rs 1 crore to MSMEs

The Small Industries Development Bank of India – SIDBI has said that it will provide emergency working capital of up to one crore rupees to small and medium enterprises(MSMEs) against their confirmed government orders. The SIDBI Assistance to Facilitate Emergency response against Corona virus – SAFE PLUS will be offered collateral free and disbursed within […]

Income tax

New draft rules set to clamp down on CSR activities through trusts

The government has made the norms for corporate social responsibility (CSR) more stringent. In new draft rules, greater onus has been put on companies for reporting details of their CSR activities and how such funds are used. The corporate affairs ministry has invited public comments on the draft rules by March 28. The proposed rules would not […]

Income tax

Have changes in tax rates for Indian companies taken the shine off LLPs?

Limited liability partnership (LLP) is the preferred legal vehicle for a lot of Indian promoters and multinational companies for setting up their business in the country. Among many advantages that LLP offered was the better income-tax regime for it. However, with sweeping changes to the tax rates applicable to Indian companies in the recent past […]

Wealth Mantra

Apollo to Fortis: Hospital stocks among safest bets in the healthcare space

Hospitals stood out, even as other segments in the health care space have had a sketchy run on the bourses. Apollo Hospitals, Fortis Healthcare, Narayana Hrudayalaya, and Aster DM have seen robust gains over the past few months and are trading at their near-term highs. In the current environment of volatility because of the risk of […]

Income tax

विदेश भ्रमण पैकेज पर अप्रैल से लगेगा टैक्स, कालेधन के इस्तेमाल पर लगेगी रोक

 राजीव कुमार। अगले वित्त वर्ष (2020-21) की शुरुआत से विदेश यात्रा का पैकेज लेने पर पांच फीसद टैक्स देना होगा। नए नियमों के मुताबिक पैकेज की कुल राशि का पांच फीसद टैक्स कलेक्शन एट सोर्स (टीसीएस) के तहत अलग से देना होगा। पैकेज लेने वाले व्यक्ति के पास अगर पैन कार्ड नहीं है तो उसे पैकेज […]

Income tax

Flurry of tax notices puts private companies’ directors in a spot of bother

Directors of private limited companies are being slapped with tax notices, holding them liable for dues/disputes pending at the company’s end. The number of such notices has risen exponentially over the past few weeks, said four people familiar with the matter. This is on the back of mounting pressure on tax officers, with the end of the […]

Company Law Finance

P2P lending achieves 10-fold growth with returns as high as 25% in 1 year

Last month, Nitin, a college student, earned 22 per cent returns out of his monthly allowances. He is a regular investor in peer-to-peer (P2P) lending platforms, and was In the last one year, no other sector weathered slowdowns and financial crisis in India like the peer-to-peer (P2P) lending – essential platforms which cater to subprime […]

Wealth Mantra

NRIs to gain more than resident Indians from govt’s move to remove DDT

One of the major changes proposed by finance minister Nirmala Sitharaman in her second Union Budget relates to the taxation of dividends. The Budget has proposed to abolish the Dividend Distribution Tax (DDT), and moving to the classical system of taxing dividend in the hands of individuals. Current situation: Currently, a domestic company is required to pay DDT at […]

Transfer Pricing

MNCs with permanent establishment to pay tax on pre-negotiated income

Multinational companies (MNCs) having a permanent establishment (PE) in India could soon get clarity on taxes they are supposed to pay. In the Union Budget 2020, the government allowed these firms to enter into advance pricing agreements (APAs) with the income-tax authorities. In those they can negotiate how much of the margins on profits accrued in India […]

Synergy Insolvency


The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 seeks to wash out liability of corporate debtors resolved under IBC. By Ms. Sikha Bansal Vinod Kothari & Company Resolution under the Insolvency and Bankruptcy Code, 2016 (‘Code’) is a harbinger of fresh start of the corporate debtor, which passes into the control of a new […]

Company Law Synergy Insolvency

SME can call out big firms for dues, thanks to a tweak in IBC

The Insolvency and Bankruptcy Code (IBC) has provided small enterprises in India the window to force large companies to cough up pending dues. Information utility National e-governance Services (NeSL) will now make public the names of companies which default on payments. The details will be shared with all creditors that have exposure to the company. The managing director and chief executive […]

Credit Management MSME

Debtors Credit Management

 1. FACTORING Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. Factoring is commonly referred to as accounts receivable factoring, invoice factoring, and sometimes accounts receivable financing. A factoring company may charge 2% for the first 30 days and 0.5% for every […]

Company Law Synergy Insolvency


FILING OF CLAIMS UNDER INSLVENCY AND BANKRUPTCY Claims by  -> Operational Creditor Financial Creditor Creditors in a class Workmen and employees Workmen or Employees as a class Other claimants Claims under : Insolvency Resolution Process Form B – Schedule Form C – Schedule Form CA -Schedule Form D – Schedule Form E – Schedule Form […]

Synergy Insolvency

Statutory Dues including Income Tax, VAT etc. are Operational Debts under IBC

Facts – According to appellant, the ‘Sales Tax’ and ‘Value Added Tax’ do not come within the meaning of ‘Operational Debt’ and thereby, ‘Sales Tax Department, State of Maharashtra’ cannot be treated to be an ‘Operational Creditor’. Held – ‘Operational Debt’ in normal course means a debt arising during the operation of the Company (‘Corporate […]

Compliances Synergy Insolvency

Operational Creditor Successfully Dragging Corporate Debtor To NCLT For Failure To Pay Undisputed Overdue Debt – Sec.9 IBC

An application was filed by the operational creditor under Section 9 of the Code, 2016 for commencing Insolvency Proceeding against the corporate debtor. A satisfactory case of default was made out by the petitioner against the corporate debtor. The NCLT, admitted the application, declared moratorium and appointed IRP. An insolvency application was filed by the […]

Real Estate

Despite there being an arbitration clause in a Builder Buyer agreement – the Buyer may prefer to move Consumer Court : Supreme Court.

In the Builder Buyer’s agreement, there was an arbitration clause providing for settlement of disputes between the parties under the 1996 Act. Nonetheless, the consumer filed a complaint before the National Consumer  Disputes  Redressal Commission (NCDRC) against the Builder praying for reliefs. The Builder objected to the filing of the complaint before NCDRC citing Arbitration […]

Company Law Synergy Insolvency


There is no bar in the ‘I&B Code’ for filing simultaneously two applications under Section 7 against the ‘Principal Borrower’ as well as the ‘Corporate Guarantor(s)’ or against both the ‘Guarantors’. However, once for same set of claim application under Section 7 filed by the ‘Financial Creditor’ is admitted against one of the ‘Corporate Debtor’ […]

Synergy Insolvency

IBC : Supreme Court Upholds Validity Of Insolvency & Bankruptcy Code

The Supreme Court today upheld the constitutional validity of the Insolvency and Bankruptcy Code 2016 in its “entirety”. The Court however held that to attract the bar under Section 29A from participating in resolution process, “related person” should be a person connected to the defaulting entity. The bench of Justices R F Nariman and Navin […]

Synergy Insolvency

Bank is free to recover debt if the terms and conditions Of One-Time Settlement are Breached: Punjab & Haryana High Court

The Punjab and Haryana High Court (HC) held that if the terms of the One Time Settlement (OTS) entered with the bank are violated by a borrower wherein the amount is not paid  within the agreed time frame , then the court orders are not needed for extending  the time period of payment under the […]

Synergy Insolvency

Person Ineligible U/s 29A IBC To Submit Resolution Plan Cannot Propose Scheme Of Compromise & Arrangement U/s 230 Companies Act 2013: Supreme Court

The Supreme Court held that a person who is ineligible under Section 29A of the IBC to submit a resolution plan, cannot propose a scheme of compromise and arrangement under Section 230 of the Companies Act, 2013. The bench comprising Justices DY Chandrachud and MR Shah also upheld the constitutional validity of Insolvency and Bankruptcy […]

Synergy Insolvency

Employee Stock Option Plan for an Unlisted Company

Employee Stock Option Plans (ESOPs) are a well-recognized method of compensating employees and attracting and retaining the best talent. Compensation in the form of equity shares helps in creating a sense of ownership in the mind of employees. Benefit schemes for employees, including ESOPs, have gained popularity, especially in start-ups that have limited financial resources […]

Synergy Insolvency

Union Budget 2021: 2.5 लाख से ज्यादा PF कटवाने वालों को झटका, ब्याज पर लगेगा टैक्स

बजट 2021 के एक प्रस्ताव से उच्च आय वालों को झटका लगने वाला है. वे अब प्रोविडेंट फंड (PF) के जरिए बड़ा टैक्स फ्री फंड नहीं खड़ा कर पाएंगे. दरअसल वित्त मंत्री निर्मला सीतारमण ने अपनी बजट स्पीच में प्रस्ताव रखा कि विभिन्न पीएफ में कर्मचारी अंशदान पर होने वाली ब्याज आय के मामले में […]