By Richa Seth and Harshita Gupta
On 3rd May, 2021, the Central Board of Direct Taxes through Notification No. 41 /2021/ F. No. 370142/11/2018-TPL, introduced “Threshold for the purpose of Significant economic presence” under Income Tax Rules, 2021. Now, companies that do not have any actual presence in India but at the same time have been driving a significant amount of financial benefit from Indian Market will be governed under the Indian Tax System.
Continue reading “Navigating the Shifting Landscape of Digital Taxation in India”
By Tanya Ganguli (Advocate, currently pursuing LLM from Jindal Global Law School) and Shubham Agrawal (Advocate)
Owing to rapid globalisation and emerging social and environmental concerns, the focus of business reporting procedures have become more people-centric. That is, the public has become aware and vigilant, the responsibility towards social and environmental objectives, need for sustainability and accountability to the people has increased manifold. In 2019, the Securities and Exchange Commission (SEC) issued the “Sustainability Reporting Guidelines for Publicly Listed Companies” highlighting the information that the eligible companies will have to disclose in relation to their non-financial performance across the economic, environmental and social aspects of their organisations on a “comply or explain” basis, starting 2020. Securities and Exchange Board of India (SEBI) on 10th May 2021 vide circular no. SEBI/HO/CFD/CMD-2/P/CIR/2021/562 has introduced new reporting requirements on Environmental, Social and Governance (ESG) parameters called the Business Responsibility and Sustainability Report (BRSR). With effect from the financial year 2022-2023, filing of BRSR shall be mandatory for the top 1000 listed companies (by market capitalization) and shall replace the existing Business Responsibility Report (BRR). The current disclosure ecosystem offers limited opportunities to review a company’s historical performance and draw a comparison amongst companies for specific disclosures or ESG performance indicators. To standardise and organise information availability, BRSR has introduced uploading of the BRSR disclosure on the Ministry of Corporate Affairs portal. This will enable the ESG rating agencies to take note of the companies which were not making structured ESG disclosures previously. From the company’s point of view, higher ESG ratings facilitate companies to get better access to capital, which is vital for corporate growth and expansion.
Continue reading “BRSR- Promoting Sustainability and Transparency in the Indian Corporate Reporting Framework”