Sumit Mehta

Unlocking the Market: Top Strategies for Choosing Winning Stocks in Today's Share Market 🌟📈 Often confused while selecting stocks in Indian Share market? Let's revise the basics, when selecting stocks, consider looking into: 1. Blue-Chip Stocks: Companies with strong financials, established business models, and a history of stable performance. 2. Growth Stocks: Companies that are expected to grow earnings at an above-average rate compared to other companies. For instance, companies in technology, pharmaceuticals, or emerging industries might be considered. 3. Dividend Stocks: Companies that offer regular dividends can be attractive for income-seeking investors. 4. Sector Leaders: Look for companies that are leaders in their specific sector. 5. Small-Cap Stocks: These can offer high growth potential but come with higher risk. Companies with innovative products or services in sectors like technology or renewable energy could be worth exploring. 6. Mid-Cap Stocks: These can provide a balance between risk and reward and often represent companies that are on the cusp of becoming large-cap leaders. 7. Stocks with Strong Fundamentals: Companies with robust financial health, low debt, and good earnings growth. Look for metrics like a strong price-to-earnings (P/E) ratio, return on equity (ROE), and earnings per share (EPS). 8. Companies with Competitive Advantages: Firms that have a strong market position, unique technology, or other competitive edges. 9. Emerging Trends: Companies involved in sectors with high future growth potential, such as electric vehicles, renewable energy, and artificial intelligence. 10. Consistent Performers: Companies that have shown consistent revenue and profit growth over time. Trading shares is as much about strategy as it is about timing. By combining research, analysis, and a disciplined approach, you can enhance your chances of making successful trades. Happy investing! #StockMarket #Investing #FinancialFreedom #StockSelection #MarketTrends

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UAE Corporate Tax - Interplay with Indian Tax Residency PART 3/3 Tax residency as per India-UAE Tax Treaty As highlighted above, as per CT Law, the tax residency of individuals in UAE is based on the nature of revenue generating activities undertaken by them in UAE. There is no reference to the physical presence of such individuals in UAE. However as per Article 4 ‘Resident’ of the India-UAE Tax Treaty, in case of UAE, an individual shall be considered as a ‘resident’ for the purpose tax treaty, where such person is present for 183 days or more in UAE in a calendar year. In the current scheme of things, this implies that even if an individual is present in UAE for less than 183 days in a calendar year, as per the CT Law, such individual shall still be considered a resident in UAE, incase such individual undertakes any business activity in UAE, however for treaty purposes such individual would not be a resident of UAE There was no provision for tax residency in UAE laws at the time when India-UAE Tax Treaty was negotiated. However now, with the enactment of CT Law, specific provisions relating to tax residence have been incorporated in the domestic tax law in UAE. As is evident from above, in context to India, there is a dichotomy in the residence rule for UAE as per the CT Law and the India-UAE Tax Treaty. From a taxation standpoint, an individual can be considered as a tax resident of one country only. Where, based on certain facts an individual qualifies as the tax resident of both the countries, the tie-breaker rule as per the tax treaty comes into play and decides on the tax residence of the individual for the purpose of taxation. Therefore, to determine the tax residency of an individual from UAE standpoint, there needs to be consistency in the residence rules as per its domestic tax laws in UAE and its tax treaty with India. UAE had earlier issued a Cabinet Decision in September 2022 before the enactment of CT Law, wherein the tax residency of a natural person in UAE was linked to physical presence in UAE. Such rules were to be effective from 1st March 2023. However thereafter the CT Law was introduced and enacted and there has been no reference of the said Cabinet Decision in the CT Law. This aspect therefore needs clarification from UAE FTA, since this shall have significant ramifications on individuals earning income from UAE and for determining their tax residence for the purpose of taxability of income, whether in India or UAE. Conclusion The introduction of CT law in UAE and the specific provisions for determining tax residency in UAE, shall help streamline the taxability of Indian citizens earning income from UAE. It shall further help in reducing ambiguities with respect to availability of tax treaty benefit between India and UAE to such individuals. This shall however be effective provided the definition of tax resident in UAE, is made consistent per CT Law and the India-UAE Tax Treaty. 

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UAE Corporate Tax - Interplay with Indian Tax Residency PART 1/3 UAE was always considered as a tax-free zone. However, after the introduction of indirect taxes in 2018, the United Arab Emirates (UAE) Ministry of Finance (MoF) recently released the Federal Decree- Law No. 47 of 2022 on 9th December 2022 thereby enacting the corporate tax (CT) regime in UAE. The introduction of CT regime is basically with an objective of fulfilling commitment to meet international standards for tax transparency, implementation of Pillar 2 of OECD BEPS project and prevent harmful tax practices. The MoF has also released a set of Frequently Asked Questions (FAQs) , which supplement the law and aim at providing clarity to stakeholders.    UAE CT Law is based on internationally accepted principles to ensure efficiency, transparency, and predictability. The intent of the UAE CT Law is to achieve strategic objectives and accelerate UAE’s development and transformation and to strengthen its position as a leading destination for business and investment. The UAE CT Law is comprehensive yet concise. It contains anti-abuse provisions, exemptions, and various benefits for businesses. Further it aims at maintaining ease of compliance for stakeholders. The Law shall be effective from 1st June 2023 and shall apply to specified individuals and corporate entities. With a headline tax rate of 9%, UAE CT law requires taxable persons to register with the Federal Tax Authority (FTA) and undertake compliances on an annual basis. Up until the introduction of CT Law in UAE, natural persons were not liable to pay any tax on income earned in UAE. Now, the CT Law provides that natural persons engaged in any business or business activity shall be covered under the purview of CT Law and liable to pay tax on their income in UAE. It may be noted that individuals earning income, other than from business or business activities are still out of the purview of CT Law. CT Law is applicable to a ‘taxable person’ i.e., a person subject to corporate tax under the said Law. A ‘taxable person’ can be ‘resident’ and ‘non-resident’ in UAE. It is interesting to note that an individual shall be a considered as a ‘resident’ in UAE, if such individual conducts business or business activity in UAE. In September 2022, the UAE FTA had issued Cabinet Decision No. 85 of 2022 , whereby an individual was to be considered as a ‘resident’ in UAE, based on physical presence of specified number of days in UAE. In fact, as per India-UAE Double Taxation Avoidance Agreement, the residency of individual depends on number of days stay in UAE. However, in the CT Law enacted, residency of an individual is based on the nature of activities undertaken in UAE, rather than the physical presence of such individuals in the Country.

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Whether these Target induced assessment will do any justice to tax payer. Punishment fearing officer will pass unjust assessment orders to push tax collection. Once an assessment order is passed,tax payer has no option but to pay atleast 10% of demand. In first appeal , there is very little hope of any relief as punishment fearing officer will adjudicate. Court will not interfere asking tax payer to avail remedy available in the statute (indirectly meaning suffer fully)

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In a landmark ruling, @Service Tax Mumbai Zone has declared that a Rs 20 lakh gift received by A Salam from his non-resident brother in the UAE is not taxable. This decision reinforces that gifts from close relatives, including brothers, are exempt under Section 56 (2)(x) of the Income-Tax Act. The ruling underscores the importance of proper documentation to substantiate the legitimacy of such gifts. . . . . . #StockMarket #Stocks #Markets #Economy #finogentsolutionllp #finogentnews

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Will you pay ₹1 lac to acquire a business whose annual revenue is only ₹500 ?? Obviously you will say - Hell No.... This is the current valuation of Nykaa Fy24 Revenue ~₹250Cr only Market capitalisation ~₹50,000 Cr.. It means revenue as a percentage of market cap is only 0.5%... And the insanity is that some brokerage houses are giving a buy recommendation...😅😅 #valuation #market

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➡️Net Direct Tax collections(provisional) for FY2023-24 exceed the Budget Estimates by ₹ 1.35 lakh crore i.e by 7.40% & Revised Estimates by 0.67% ➡️Gross Direct Tax collections(provisional) at ₹23.37 lakh crore register a growth of 18.48% ➡️Net Direct Tax collections(provisional) at ₹19.58 lakh crore mark a growth of 17.70% ➡️Refunds of ₹3.79 lakh crore have been issued, an increase of 22.74% over refunds issued in F.Y 2022-23

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My Article " Real Time Financial System" (RTFS) got published in CMA Aug 24 edition, the India's prestigious Cost and Management Accountant body. RTFS is an advanced, forward looking and proactive System connecting the key critical business parameters into financial figures on instant basis.The most important benefit with RTFS is to take corrective actions spontaneously. it is relevant to every industry. Designing and implementation is important. #agile #smarter #competitive edge #information system" action driven"

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👏 SEBI announce stricter regulation for SME IPO's A step in right direction to improve quality of listed stock and safeguard interest of investors. Link in comment section #sme #msme #ipo #sebi SalPros #india #finance #funding

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Advisory on difference in value of Table 8A and 8C of GST Annual Return FY 2023-24 #gstreturn #gstcompliances #gstreturn #charteredaccountants #gst #cbic #gstn #gstindia #gstr9 #compliances #gstannualreturn

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July-October 2024 Incredible outreach, Conversation on Audit Quality including Group audits SA 600 revisions, valuable feedback and perspectives. Reserve Bank of India (RBI) Karnataka State Chartered Accountants Association BCAS - Bombay Chartered Accountants' Society Confederation of Indian Industry ASSOCHAM (The Associated Chambers of Commerce and Industry of India) #AuditQuality #AuditingStandards #GroupAudits #SA600 #FinancialReporting #Accountability #Transparency

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Key Budget Proposals FTY 2024-25 INCOME TAX 1) Salaried Taxpayers a. Income Tax Exemption to be maintained at Rs. 600,000 per annum b. Slabs being revised 2) Exporters to be taxed under normal tax @ 29% (as against fixed tax @ 1%) 3) Capital Gain on Real Estate & Securities @ 15% for filer and 45% for non-filer 4) Withholding Income Tax on transfer of Immoveable property (separate tax rates for timely filer of return, delayed filer and non-filer) 5) Advance Income Tax to be collected from Non-filer Distributor, Wholesaler, Dealer and Retailer to be increased from 1% to 2.25% 6) Income Tax on registration of Motor Vehicles to be shifted from Engine Capacity to Value SALES TAX 7) Sales tax on Textile and leather to be increased from reduced rate 15% to standard 18% 8) Standard 18% Sales Tax rate on Mobile phones 9) Sales Tax withholding regime for Bronze, Coal and Plastic scrap 10) Sales Tax exemption on Iron and Steel scrap 11) End of exemption for FATA / PATA newly merged districts 12) Default Surcharge rate to be changed from 12% to KIBOR+3% 13) Sales Tax to be charged at time of supply or the time when any payment is received by the supplier in respect of that supply, whichever is earlier 14) Best Judgment Assessment concept introduced in Sales Tax 15) Electronic sales invoicing to be made mandatory by all

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Business Standard : GoM to review tax rates for 100 + products in Goa “ Rationalising GST rates may not be an easy task for the GoM committee, as socio-economic factors will play a crucial role. While adjustments to specific product rates may be possible, major reforms —such as merging the 12 per cent and 18 per cent or the 12 per cent and 5 per cent rates — may take time,” said Harpreet Singh, partner Deloitte “Altering the list of exempt essential items of daily consumption could also prove challenging, as it may result in blocked input tax credits,” #gst #taxes #taxrates https://lnkd.in/gF6_AJtg

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CFO KI PATHSHALA: In the first 90 days of assuming the role of a CFO, it is crucial to assess what you bring to the table and align it with the organization's needs. Identify your unique abilities that can add value and contribute to the overall strategic goals. Understanding the key strategies of the company is essential to provide support effectively. Focus on areas of need and leverage your strengths to quickly establish a solid foundation. Engage with stakeholders, including the CEO, Board members, heads of marketing and operations, and other key contributors outside the hierarchical structure. Seek their support by addressing any initial challenges promptly, as resolving issues efficiently builds stakeholder confidence. Establish key performance metrics to drive performance, setting ambitious targets for each metric. Regularly monitor these metrics closely and celebrate incremental achievements to maintain motivation and momentum. While it may be tempting for a CFO to immerse themselves in numbers behind closed doors, a more effective approach involves actively engaging with teams and collaborating across departments to foster synergy and enhance overall performance.

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GST Updates Important Changes to GSTR-2B API by GSTN from October 2024 Managing your GST filings and claiming Input Tax Credit (ITC) has always been straightforward with GSTR2B. The rate-wise tax break-up details of your inward supplies in GSTR-2B made it easy to reconcile your tax credits. The detailed breakdown was essential for automating the GSTR-2B reconciliation. This was achieved through the current version (API Version 3) of the GSTR-2B download process. Recently, GSTN has upgraded the API to the newer version which impacts the way ITC reconciliation process works. The change – GSTR2B API Version 4 Effective 1st October 2024, GSTN has introduced the newer version of GSTR-2B API. Starting 14th November, GSTR-2B downloads will use the new version to fetch the GSTR-2B details. The key change is that the GSTR-2B downloads from 14th November will no longer include the rate-wise tax break-up details of inward supplies —instead, only the total tax amount will be available. As a result, existing reconciliation methods, including auto-reconciliation, will be impacted. From November 14, 2024, GSTN will stop supporting the current version (3.0) of the GSTR2B API. However, businesses can download GSTR2B of previous months up to September 2024, with no changes to the current process. #gstupdates #indirecttax #jaiupdates #itccredit #inputtaxcredit #gstr2b #accounts

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UAE Corporate Tax - Interplay with Indian Tax Residency PART 2/3 Impact of CT Law on Indian tax residency rules In India the tax residency rules are based on the physical presence of an individual in India. Therefore, where an individual is physically present in India for the prescribed number of days, such individual shall be considered as a resident in India (subject to other conditions prescribed). This is so, since the Indian Government vide Finance Act 2020 had introduced an amendment in its tax residency rules, as per which, an Indian Citizen shall be deemed to be a resident in India for tax purpose, in case such individual derives income exceeding Rupees Fifteen Lakhs in India and is not liable to tax in any other country, by reason of domicile or residence etc. It was observed by the Indian Government that under the pre-amended tax residency provisions in India, in various instances, individuals where able to arrange their affairs in a manner such that they were not liable to be tax in any country/ jurisdiction during a fiscal year. Such individuals although earning income from India or other countries were not paying taxes on such income in any of the jurisdictions, by virtue of their residential status. Hence such situations resulted in double non-taxation, which was an undesirable outcome for the Governments, especially India. The amendment vide Finance Act 2020 was to inter-alia curb this situation of non-taxation. As a consequence of this amendment, Indian citizens undertaking business activities in UAE (considered as not liable to tax in UAE as per Indian Income Tax Act) and also earning income of more than Rupees Fifteen Lakhs in India were deemed to be resident in India. Accordingly, they were liable to tax in India on the income earned in India. With the introduction of corporate tax in UAE, now Indian citizens undertaking business activities in UAE are covered under the purview of UAE CT Law and their business income is taxable in UAE and therefore are covered under the ‘definition of liable to tax’. The ‘deemed residency’ provisions in the Indian Income Tax Act, apply to Indian citizens, who are ‘not liable to tax’ in any country. Now, since the Indian citizens earning business income in UAE are required to pay tax on such income in UAE, hence the ‘deemed residency’ provisions shall not apply to such individuals in India. As per the UAE Tax Laws such individuals would be considered as tax residents of UAE. Accordingly, given the number of days spent in India, such individuals would need to see whether they qualify as residents in India or not, as per the Indian Income Tax Act, other than under the ‘deemed residency’ provisions. Where such individuals qualify as non-residents in India (as deemed residency provisions would not be applicable), they shall be liable to pay tax at the rate of 9% in UAE on their business income, obtain tax registration and file their annual income tax return with the FTA in UAE.

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