RBI clarifications under Foreign Exchanges Management Act (FEMA) for start-ups for issues of shares against legitimate payments owed by start-ups and accepting payments by foreign subsidiaries of such start-ups against export and other dues.
As announced in sixth Bi Monthly monetary policy statement for 2015-16 by RBI regarding clarification for some existing regime, to help to doing business in India and to facilitate start-ups, RBI has now clarified following issues.
India currently is on the verge of the biggest Indirect tax reform since independence whereby the erstwhile regime of multiple taxes on manufacture / sale / supply of goods is being replaced by a common GST on supply of goods and services.
For a small medium business, where domain experts are not normally available, GST is going to be a challenge not even post July 1st, 2017, it will have a material bearing on the operations and profitability of business. As a prudent business unit, you should have a pre implementation assessment of GST impacts on your business and all operational process, get the required changes done before July. Implementation and going into GST in July also need expert eyes. There would be major issues post GST for initial periods of at least six to nine months.