Resources

Q&A

• January 2014
• Free Access

Gratuity is a lump sum that a company pays when an employee leaves an organization; one of the many retirement benefits offered by a company to an employee. Basic requirements for gratuity are set out under the Payment of Gratuity Act, 1971. An emplo...

Q&A

• January 2014
• Free Access

The Payment of Gratuity Act, 1971, applies to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments for at least five full years with ten or more employees. Years of service does not ma...

Q&A

• January 2014
• Members Access

Gratuity received under the Act is exempt from taxation to the extent that it does not exceed 15 days’ salary for every completed year of service calculated on the last drawn salary subject to a maximum of INR350,000. Any other gratuity is exem...

Q&A

• January 2014
• Free Access

The gratuity payable to an employee shall be wholly forfeited if: The service of such employee has been terminated for his lawless or disorderly conduct or any other act of violence on his part; or The service of such employee is ter...

Q&A

• January 2014
• Members Access

Q&A

• January 2014
• Members Access

VAT reform is designed to resolve the issue of duplicate taxation on goods and services as a result of the coexistence of BT and VAT systems, as well as to promote the development of modern service industries in China. China officially issued ...

Q&A

• January 2014
• Members Access

BT is a cascading turnover tax for which taxes are paid on the whole cost of the product at every point in the supply chain. By taxing only the “value added” components throughout the supply chain, instead of taxing the entire business tu...

Q&A

• January 2014
• Free Access

Nine other cities and provinces have officially applied to participate in the VAT Reform Pilot Program so far, including Chongqing, Shenzhen, Tianjin, Xiamen, Anhui Province, Fujian Province, Hainan Province, Hunan Province and Jiangsu Province. ...

Q&A

• January 2014
• Free Access

When possible, relocation should be avoided for cost and time reasons. Meanwhile, foreign investors considering relocation for other reasons should be aware up front that the process is quite likely far more challenging than you anticipate. Re...

Q&A

• January 2014
• Members Access

Beyond tax de-registration, the transfer process requires a foreign investor to re-do essentially all the steps taken in initially establishing the WFOE. Beyond merely the large number of steps required, the need to minimize costs, potential labor li...

Q&A

• January 2014
• Members Access

 To cut corners, many investors have been misadvised by other companies to have separate registered and operational addresses (i.e. the company first registers on the outskirts of a city and operate in the downtown). This set-up is not legall...

Q&A

• January 2014
• Members Access

No tax officer wants to lose your company’s revenue by letting you relocate to another district and you should expect resistance in conducting the processes for tax closing. This resistance will crop up during the tax audit, which will s...