One of the most vexed question under the Hindu Law, is, whether a property acquires the character of self-acquired property or ancestral property. This is important because, if the property assumes character of self-acquired, then it falls into the hands of his sons as not coparcenary property, but would devolve upon on them in their individual capacity. In other words, the father has unfettered rights to do so with such property and neither his sons or grand sons would not have any claim on such property. However, if the property is held to be assuming the character of ancestral property, then the son, grand son and great grand son would acquire right in such property from the birth itself. In simpler words, the father cannot have unfettered rights qua such ancestral property and requires the consent of all the three downward generations, if existed, at the time of disposing such property.

Read more: Self Acquired vs Ancestral Property - Supreme Court Answers

The uncertainty continues and across the globe, nations are fighting with this ever-growing pandemic. The invention for the vaccine is at a tremendous pace and I am optimistic, the human race will find a solution and this is not the first time we have faced with this adversity. I wish and pray that every one of us should be impacted at the minimum possible and situation may be restored to normalcy at the earliest.

At times like these, in order to demonstrate the positivity and optimism, I have asked our team to work on the journal. The article on holding of board meeting and general meeting vide video conference in light of the recent MCA’s relaxation deals with various provisions relating to conduct of the board meeting and general meeting. The article on special initiatives taken by MCA keeping the pandemic in perspective details major changes at one place.

Read more: SBS Wiki E Journal April 2020

We are currently in unprecedented times and fighting constantly with a virus which cannot be seen. The fight is also unique because we are asked to do the same by staying at home. The virus even though cannot be seen with naked eye, the impact it can create is being experienced. The aftermath is going to cost many of our dreams. Times like these, call for indomitable positivity and only such measures can help us navigate through this pandemic. I wish and pray that every one of us should be impacted at the minimum possible and situation may be restored to normalcy at the earliest.

At times like these, in order to demonstrate the positivity and optimism, I have asked our team to work on the journal. In this edition, we have discussed the provisions of ‘Corporate Social Responsibility’ in COVID times. The said article deals with the CSR Obligations and also deals with recent notifications/clarifications issued by MCA.

Read more: SBS Wiki E Journal Mar 2020

Introduction:

The typical model of majority of the IT companies which are engaged in provision of software services to parent/group companies is ‘cost plus mark-up’. Under this model, the Indian companies would agree to provide a host of services to the parent/group companies and bill them on periodical basis on cost plus agreed mark-up. An agreed and transfer-pricing friendly margin/mark-up would ensure that Indian companies are always left with good enough reserves and not to worry of working capital requirements. This would ensure that Indian companies would never get into losses and concentrate on development of software and provision of other ancillary services.IT companies can start their operations in India either as SEZ or STPI or simple DTA unit[1]. Each of them have specific set of regulations and host of compliances to be adhered. The selection of the unit (SEZ/STPI/DTA) is purely the decision of promoter taking into the advantages and limitations which each set-up would provide.

The advent of MAT and phase out of Section 10A benefit under the Income Tax laws made choice of setting up a software company as SEZ unit, no longer a favorable option. The same is the case with STPI. Thereby all the companies now prefer starting the company as a DTA unit, since there are no specific pre-requisite conditions that are to be satisfied unlike SEZs and STPIs, which make the entire process of setup of DTA unit easy and hassle-free.

Read more: SOFTEX for Non-STPI Units - A Mandatory Requirement