When we have to appoint Auditors for the Company?
When we have to register for GST (Goods & Service Tax)?
- At the end of a quarter if your taxable supplies exceed S$1 million for a quarter and the immediate past 3 quarters. Quarter refers to March, June, September or December; or
- At any time if your taxable supplies are expected to exceed S$1 million for the next 12 months.
You can choose to register voluntarily when:
- You make taxable supplies below S$1 million annually; or
- You make Supply of Goods outside Singapore
- You provide Financial Services that are also international services
It is a condition that you must remain GST-registered for at least 2 years for voluntary registration. IRAS may also impose other conditions e.g. the requirement of Security Deposits on a case-by-case basis.
Overseas companies must appoint an agent in Singapore to be responsible for its GST matters and obligations when applying for GST registration.
Goods and Service Tax is like value added tax in some countries is payable by an entity. In Singapore if any time the taxable supplies are expected to exceed S$1million in the next 12 months of operation in Singapore.
You are required to register for GST, you must apply and register within 30 days of becoming liable to pay the tax as mentioned earlier Para.
Exports are made out of Singapore are ‘ZERO’ rated and in order to claim the GST you have suffered at the time of import or local purchase of goods it is advisable to register for GST, even though you will not exceed S$1 million business in any financial year.
For GST registration requirements and any other formalities, kindly contact our Tax Dept for details and information or email firstname.lastname@example.org.
Shall we maintain books of Accounts in US$?
Usually companies would like to maintain the books of accounts in US$ and it is possible if the functional currency of the group happens to be US$. For more details you can refer to FRS 21 and interpretation INT FRS 19 or consult your audit department for details.
When we have to pay Skills Development Levy (SDL)?
SDL is payable for all employees whose gross remuneration is less than or equal to the salary ceiling of SGD 4,500/- per month and the employees include casual, part-time, temporary and foreign workers rendering services wholly or partly in Singapore.
Rate of contribution is 0.25% of employees’ gross remuneration* for the month or $2 whichever is the greater (i.e. minimum of $2 is payable for employees earning $200 or less)
Employers should make full payment on SDL together with the other monthly contributions to the central Provident Fund (CPF) Board as CPF is collecting SDL on behalf of the Singapore Workforce Development Agency.
When we have to File the Annual Return of the Company?
What is the Importance of Company Registration No.?
How to open a CPF Account and make Contributions?
With AXS stations, you can submit your CPF contribution details without computers or the need to look for Internet access. CPF e-Submission is now right at your doorstep with 300 AXS Stations conveniently located island wide. This is an extra convenience you enjoy as compared to manual submission. Pay with NETS or cash card at the AXS stations and you don’t have to worry about late or missing cheque anymore.
It takes just a few steps to complete your CPF submission at AXS stations:
- Select “Employer Contribution”
- Log on with your 7- digit Employer reference Number followed by your CPF Account Number
- Enter details of payment
- Select mode of payment
When a company has to appoint Company Secretary?
When a Company holds its AGM ?
When you have to file the Annual return for the company Incorporated in Singapore?
When you have to file the ECI (Estimated Chargeable Income)?
If you fail to do so, the tax department will estimate the chargeable income and expect the tax to be payable within one month of the assessment order being issued. Hence, we request you to liaise with us to file your returns for your company on time.
Please ignore this letter if your company has held its AGM and filed the AR.
Who is a non-resident Indian (NRI)?
What is an OCB?
What are the investment opportunities available to NRIs?
- Investment with repatriation benefits
- Investment under non-repatriation basis
I am a NRI. How do I trade through the secondary market?
RBI permission is blanket permission valid for five years. Investments on a non-repatriation basis can also be made from NRO accounts and also from funds remitted directly. For this, an NRI form must be submitted to RBI.
Do I need to get approval from RBI to buy and sell shares in the Indian capital market?
Is it necessary for me to get direct RBI permission to invest in Indian companies?
What are the formalities required for opening a bank account?
- Two photographs signed across.
- Copy of passport (first four pages and last page) and visa. These copies should be attested by the Bank Branch Manager (Overseas)/ Notary Public/an official of the Indian Embassy in the country of residence. 3. RPI form for repatriating the benefits or NRI form for non-repatriating the benefits.
As per the FEMA (Transfer or Issue of Foreign Security) Regulations, 2004, Indian companies as well as individuals can make overseas investments. The investment by companies is referred to as “Corporate ODI”, while the investment by individual is referred as “Individual ODI”. In light of your queries, the difference between Corporate ODI and Individual ODI is summarized as follows:
|Corporate ODI||Individual ODI|
|Limit on Investment||of up to 400% of its net worth (paid up capital and free reserves) as per its last audited balance sheet. Limit applicable to overseas investment in any number of entities / in any form (including loans and guarantees). No limit applicable on investment through the EEFC Account (export earnings) of the Indian company.||up to USD 250,000 per financial year, under the LRS|
|Activities of overseas entity||Any activity other than the business of real estate or banking||Any activity other than the business of real estate, banking or financial services|
|Step down subsidiary||Allowed. No prior permission of RBI is required. Only reporting is required.||Not allowed (it should be an operating entity only)|
|Branches or other forms of business presence||No restriction, subject to applicable laws. No prior permission of RBI is required.||No restriction, subject to applicable laws. No prior permission of RBI is required.|
Note: All the compliances applicable in case of Corporate ODI (eg., filing of Form A-2, ODI, APR, valuation of shares etc.) are applicable in case of Individual ODI as well.
Q1: a) The annual return to be filed by an Indian Company to RBI for their operations of their overseas subsidiary- I need information relating to annual filling plus, the forms to be filed & the deadline for their filling.
Q1: b) Penalties for non-compliance and for the delay in submission.
- shall be up to thrice the sum involved where such amount is quantifiable, OR
- up to two lakh rupees where the amount is not quantifiable;
- In case of contravention is a continuing one, further penalty up to five thousand rupees for every day is prescribed.
Q2: a) Consolidation of overseas subsidiary to an Indian holding company, presently the requirement for consolidation is for only listed company, have they included for Private limited companies & when it is required to be done for private companies.
Q2 b) What is the deadline for consolidation of financial statements, filling requirements to the registrar of companies & the income tax department.
As per the Income Tax Act, 1961, the Indian company shall be required to prepare its standalone financial statements and get them audited. The financial statements along with the audit report would have to be filed by the company to income tax department by furnishing a Return of Income before 30 th September of the subsequent year. Thus, in most of the cases, the Indian companies would not be required to furnish the consolidated financial statements to the income tax department. However, where the corporate entity in India is the parent entity having subsidiaries outside India, then it may be required to report its consolidated financial statements to the income tax department, subject to certain conditions provided in section 286 of Income Tax Act, 1961 (Country by Country Reporting). The text of Section 286 is attached for ease of reference.
Q3: If an overseas citizen of Indian Origin buys a property/Land (not an agricultural land) what are the permission required from RBI before purchase & the requirements before the sale of the land/Property.
- The amount to be repatriated does not exceed the amount paid for acquisition; and
- In case of residential property, repatriation is restricted to not more than 2 properties.
Q4 a) If an Indian citizen remits money under LRS (Liberalized Remittance Scheme), can he use the fund to subscribe for the shares of a private ltd overseas and are there any restrictions on controlling interest (Say holding 51% to 100%)
Q4 b) Any annual returns are to be filled about the investments to RBI under LRS scheme.
DO NRIs need to register and obtain an Aadhar Card issued in India?
According to the Act, only a resident individual is entitled to obtain Aadhar, wherein resident means an individual who has re- sided in India for a period or periods amounting in all to 182 days or more in the 12 months immediately preceding the date of application for enrolment. Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act is not applicable to an individual who is not a resident as per the Aadhar Act, 2016.
Service tax or GST paid by any non-resident companies / resident companies can claim for tax offset in the double taxation agreement signed with India.
(a) in India:
income-tax including any surcharge thereon (hereinafter referred to as “Indian tax”);
(b) in Singapore:
the income-tax (hereinafter referred to as “Singapore tax’)
Service tax is an indirect tax and not a direct tax and as such is not covered by Article 2 of the said DTAA and hence charterer is not entitled to get credit in Singapore.
Please note that India has not signed any tax Treaty in respect of indirect taxes.