ESOP & Regulatory Charges under Section 37: Allowable Business Expense?

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Source: ESOP & Regulatory Charges under Section 37: Allowable Business Expense?

ESOP expenses, as well as other charges that may be incurred in the normal course of business, would qualify as tax deductions under Section 37 of the Income Tax Act, provided the expenses are in revenue terms and incurred exclusively for business purposes. Various judicial precedents have made clear that ESOP expenses would fall under the category of compensatory expenses relating to employees, as opposed to being capitalized expenditures.

Key Takeaways from the Parexel ITAT Ruling: Time-Barred Income Tax Assessments

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Source: Key Takeaways from the Parexel ITAT Ruling: Time-Barred Income Tax Assessments

The Parexel ITAT ruling strongly reinforces that income tax assessments must be completed within the statutory limitation period. Any order passed beyond the prescribed timeline is legally invalid, regardless of merits. The judgement highlights that administrative delays or internal inefficiencies cannot override statutory deadlines and upholds the taxpayer’s right to certainty and due process. SKMC Global assists businesses by proactively managing assessment timelines.

ITAT Delhi Judgement Toshiba Secondment Case

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Source: ITAT Delhi Judgement Toshiba Secondment Case

The ITAT Delhi, in the Toshiba Secondment case, clarified that reimbursement of expatriate employees’ salaries by an Indian company to its foreign parent is not Fees for Technical Services (FTS) when made on a pure cost-to-cost basis. Since there is no income or profit element and the secondees work under the control and supervision of the Indian entity, such payments cannot be taxed as FTS or attract withholding tax under Section 195.

Incorporate a Company in Saudi Arabia

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Source: Incorporate a Company in Saudi Arabia

Incorporation of Company in Saudi Arabia offers foreign investors a strategic gateway to the Middle East’s largest economy. With progressive reforms under Vision 2030, Saudi Arabia allows 100% foreign ownership in many sectors, competitive tax policies, strong infrastructure, and access to regional markets. Businesses benefit from streamlined licensing, government incentives, and a growing demand across industries such as manufacturing, technology, healthcare, and logistics.

Government Support for Foreign Companies to set up a company in Japan

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Source: Government Support for Foreign Companies to set up a company in Japan

Incorporation of a company in Japan offers global businesses access to a stable economy, advanced infrastructure, and a strong regulatory framework. However, navigating Japanese corporate laws, documentation, taxation, and compliance requirements can be complex for foreign investors. SKMC Global assists businesses at every stage of company incorporation in Japan, from selecting the right entity structure and preparing legal documents to obtaining registrations, tax compliance.

Financial Reporting as per IFRS 18

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Source: Financial Reporting as per IFRS 18

Financial Reporting as per IFRS 18 introduces a new framework for presenting income and expenses, improving transparency, comparability, and clarity of financial performance. The standard mandates defined operating, investing, and financing categories along with enhanced disclosures, impacting key metrics and stakeholder reporting. Businesses must realign their financial statements, systems, and internal processes to ensure accurate compliance.

Digital Personal Data Protection Act, 2023

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Source: Digital Personal Data Protection Act, 2023

The Digital Personal Data Protection Act establishes a comprehensive framework for collecting, processing, storing, and safeguarding personal data in India. It mandates lawful consent, data minimization, transparency, and accountability for businesses handling digital personal data. Non-compliance may result in significant penalties, making proactive compliance essential. SKMC Global assists organizations in implementing DPDP Act requirements through data protection assessments.

IMPORTANCE OF SEZ REGISTRATION

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Source: IMPORTANCE OF SEZ REGISTRATION

SEZ Registration enables businesses to operate within Special Economic Zones and benefit from tax exemptions, duty-free imports, and simplified regulatory procedures. It is a strategic option for exporters and manufacturers aiming to enhance competitiveness and reduce operational costs. However, the registration process involves detailed documentation, regulatory approvals, and ongoing compliance with SEZ laws. SKMC Global supports businesses with comprehensive SEZ Registration services.

Top 5 Reasons to Establish a Semiconductor Unit in Gujarat

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Source: Top 5 Reasons to Establish a Semiconductor Unit in Gujarat

The Establishment of Semiconductor Unit in Gujarat is gaining momentum due to the state’s world-class infrastructure, dedicated Semiconductor Policy 2022–27, strategic locations like Dholera and Sanand, and attractive incentives. Gujarat offers reliable power, water, logistics, and fast-track approvals, making it an ideal destination for semiconductor manufacturing. SKMC Global supports businesses through end-to-end advisory, including feasibility assessment, policy and incentive advisory.

Applicability of Transfer Pricing

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Source: Applicability of Transfer Pricing

Transfer Pricing Services play a critical role in ensuring that cross-border and specified domestic transactions comply with arm’s length principles under Indian tax laws. Proper transfer pricing reduces litigation risks, prevents penalties, and supports transparent financial reporting. SKMC Global assists businesses with end-to-end Transfer Pricing Services, including benchmarking analysis, documentation, policy design, and compliance under Sections 92 to 92F of the Income-tax Act.