Saturday, 25 January 2020

Kuber Eats


  1. Kuber Eats is in business of food delivery in India. They have hired various individuals to collect the food from various food sellers & to deliver the same to customers.
  2. Kuber Eats does not own any food, they merely collect from various sellers to deliver it to the customers. In turn, they earn the commission at 20% from food sellers & a delivery fees from the end customers. 
  3. Kuber Eats have hired delivery persons on a principal to principal basis. They need to bring their own vehicles & cellular phones with internet where they get the notification regarding the locations, to collect the food parcels from a food seller & its end customer. Payment might be cash on delivery or an internet based prepaid one. Delivery persons get 15000 Rs per month as a fixed pay & 500 Rs per day as an extra incentive if they complete 15 deliveries in 8 hours. However, they get nothing if they do not remain available for delivery work for at least 8 hours a day. 
  4. These business operations in India are owned by Kuber Eats India Private Limited which is the wholly owned subsidiary of a Singapore Based Company named as Kuber Eats India Holding Singapore Limited. Kuber Eats India Holding Singapore Limited is a wholly owned subsidiary of a Singapore Based Company named as Kuber Eats Asia Pacific Holding Singapore Limited. Kuber Eats Asia Pacific Holding Singapore Limited is a wholly owned subsidiary of a Cayman Island Based Company named as Kuber Eats Global Holding Limited. Kuber Eats Global Holding Limited is a wholly owned subsidiary of a USA Based Company named as Kuber Eats Limited. 
  5. Due to commercial considerations, Tomato India Limited has offered to buy the India-Specific Operations of the Kuber Eats India for a 100% shares swap deal. Price of the India-Specific Operations of the Kuber Eats India has been mutually agreed to be worth 10% of the Tomato India Limited. Market value of the Tomato India Limited is Rs. 3000 Crore. In substance Investment held by Kuber Eats India Holding Singapore Limited will be transferred to Tomato India Limited in consideration for fresh shares to be issued by Tomato India Limited to the extent of 300 Crore. 
  6. Based on above information you are required to comment on:
A. Taxation of income in the hands of Kuber Eats India arising out of the food delivery business
B. Taxation of income in the hands of Delivery Persons hired by Kuber Eats India.
C. Will the answer to question B be any different if delivery persons are not resident in India
D. Taxation of transaction specified in para 5
E. Will the answer to Question C, be different if provisions of DTAA are not available.

Hint:
  • Authority to conclude the agreement of sale
  • Agreement for work vs Agreement of work
  • Independent Personal Services vs Dependent Personal Services
  • POEM, Indirect Transfer
  • GAAR

Monday, 6 January 2020

CA Examinations May 2020 Timetable Announced

On 1st January 2010, ICAI announced Exam dates, Exam fees. Form Submission dates and Late fees for CA Examination to be held in May 2020.

Important Points from this announcement are as follows,

Foundation Examination

Examination for CA Foundation Course will be held on 11th, 13th, 15th and 17th May 2020.

Intermediate Examination

Dates

Examination for CA Intermediate (Old) Course will be held on,
  • Group I  : 3rd, 5th, 8th and 10th May 2020
  • Group II : 12th, 14th and 16th May 2020
Examination for CA Intermediate (New) Course will be held on,
  • Group I  : 3rd, 5th, 8th and 10th May 2020
  • Group II : 12th, 14th, 16th and 18th May 2020

Fees

  • Single Group: Rs. 1,500/-
  • Both Groups: Rs. 2,700/-

Final Examination

Dates

Examination for CA Final (Old and New) Course will be held on,
  • Group I  : 2nd, 4th, 6th and 9th May 2020
  • Group II: 11th, 13th, 15th and 17th May 2020

Fees

  • Single Group: Rs.1,800/-
  • Both Groups: Rs. 3,300/-

Form Submission Dates

The forms are to be submitted onlne only at https://icaiexam.icai.org from 5th February 2020 to 26th February 2020. The fees are also to be paid online by using any Debit or Credit Card or by using Net Banking or Bhim UPI.

If due to any reasons you missed the deadlines mentioned above, then don't worry. You can still submit the examination form online up to 4th March 2020. However in this case you will have to pay late fees of Rs. 600/- over and above the basic examination fee mentioned above.

In case you need any more clarification, please click here to read the ICAI announcement regarding May 2020 examination.

All the best to all of you.