Raising funds is crucial at many stages in the life cycle of a company. Traditionally, the funds could be brought-in either by the promoters or could be raised by debt. However, with the bullish Indian stock market, more and more companies are raising funds by using the option of initial public offerings (IPOs).
As the Indian economy recovered in 2021, we witnessed many major IPOs. It seems the number of new entrants raising funds from the market will further increase as the economy rises further.
It is important not only for the new players to understand the nuances and implications of the various challenges including those posed by various tax and regulatory laws.
L&S is hosting a webinar to analyse various issues under the Goods and Services Tax (GST) and Income-tax laws with respect to IPOs.
The webinar will inter alia cover the following:
GST implications
Input Tax Credit (ITC) on various IPO expenditures
- Recovery from Promoter in case of Offer for Sale (OFS)
- ITC on expenses attributable to promoter’s share in case of OFS
- RCM implication on amounts paid to MCA, SEBI, etc
- Corporate Guarantee given within group companies
- Many other relevant points to ponder in GST in case of IPO for fresh sale, OFS, right issues, bonus issues, preferential issues, etc
Income Tax
Treatment of expenditure incurred for raising capital, implication in the hands of the shareholders existing in IPO.
Speakers:
- L Badri Narayanan, Executive Partner
- S Sriram, Partner
- Nupoor Agrawal, Partner
- Nirav Karia, Joint Partner
- Chaitanya Bhatt, Joint Partner