LEXIS AND COMPANY

Everything You Need To Know About GST Goods and services often include costs at every step of production. Earlier, these were added at every step of the production stage and taxed simultaneously. However, in order to simplify the system of multiple taxation and complications of filing several indirect taxes, the Government of India on July 1, 2017, introduced the Goods and Services Tax (GST). This is a cumulative tax on the costs of production. It is a single tax, which is typically levied on the seller and ultimately transferred to the government.   Need for GST The Indirect Tax regime in existence prior to the introduction of GST was inefficient and opaque. Disproportionate taxation was present. States had their own taxation requirements. Problems were made worse by the presence of cascading taxes. Taxes were collected at every stage, inevitably making the commodity’s price higher. The tax burden was pushed on to the final consumer.  It became common to practise to evad...

Assignment of Trademarks The assignment of Trademarks refers to the transfer of ownership of the Trademark to the buyer. The transfer can be with or without goodwill. Licensing refers to a limited transfer i.e.; the transferee is allowed to use the Trademark (within the limits of the agreement entered upon) without having the ownership transferred to him. The Licensor(owner of the Trademark) usually generates loyalties while the Licensee gets the ability to expand his business using the appeal of the Trademark. Types of Assignment The following are the different types of Assignments allowed under the Act: I. Complete Assignment:  As the name entails, a complete transfer of all the rights pertaining to the Trademark is transferred to the buyer. The buyer would be empowered to sell it later on if he so chooses to. II. Partial Assignment:  Herein only restricted ownership pertaining to specific products or services is transferred to the buyer. III. Assignment with Goodwill: Goodw...

 What Is A Non-Compete Clause In An Employment Contract? A non-compete clause is a provision in an employment contract whereby the employee agrees to the fact that he would not enter into any competition with the employer during the term of his employment or even after the employment period is over. Typically, a fixed period of time is agreed upon for restrictions that extend beyond the term of employment. Non-compete clauses are common in IT Departments, Media, Financial Industry, Corporate World.   Enforceability of Non-Compete Clauses The non-compete clause in an employment contract is governed by certain provisions of the Indian Contract Act, 1872. Section 27, of the Contracts Act, makes agreements that are in restraint of trade void.    A vast number of judicial decisions have emerged on the question of enforceability of non-compete clauses. These decisions are divergent, and hence, no clear answer to the enforceability of non-competes has emerged till now. We h...

 What To Do When Wrongfully Terminated From Employment? Wrongful termination of employees refers to when the employees are terminated on account of wrongful means. The different grounds on which the termination of employees is known as wrongful termination are-: Discrimination on the grounds of race, religion, caste, gender, age, rationality, and many more, When the company has specified certain guidelines for the termination of an employee and those guidelines are violated, If public policy is violated, The Employment Contract signed by the employer and the employee defines the procedure of terminating the employee. The contract may or may not have provisions regarding the procedure for the termination of employees; if it contains a procedure, then it must comply with the Labour laws; however, if it does have any such specific procedure, then the employer must follow the state-specific labour law. The two types of terminations of employees are-: Termination by Contract: The employ...

Know About The Laws For Startups Startups Accelerate The Innovative Spirit And Energize Societal-Economic Cohesion  Business is the new ongoing, ever happening movement of the world. The onward march of economy and society depends on the continual churning and development of businesses. Businesses are energized by the vigour of innovations and entrepreneurship. And, a very significant aspect of modern businesses is the rise of start-ups. Well, a startup or start-up is technically defined as a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. The concept of startup has become more popular in recent times. It is widely believed that start-ups keep up the innovative spirit, they continually make the world move and help people find new meanings and dimensions of the running time. Startups heighten the interest in business and innovation, thus they create stronger integration of society and economy, leading to more universal dynam...

How to Register Your Startup in India: 5 Simple Steps for Registration Many potential startup founders do not know what their first step should be while setting up a startup. Startup Registration is the first step a founder should take, post selecting, which entity needs to be set up. Startup registration is simple in India. We bring the five simple steps, every founder needs to follow, to register startups in India. Startup Registration in India Five steps for Startup Registration are: Step 1: Incorporation of the Startup This is the first step in which the startup is required to incorporate itself as a private limited company or a partnership firm or a limited liability partnership. A startup founder, may incorporate his startup by approaching th e Registrar of Companies, if he wants incorporate a private limited company or a LLP or by approaching the Registrar of firms, if he wants to incorporate a partnership firm. Step 2: Registration with Start-up India Under this stage, a startu...

Tax Exemptions: Know About Incentives For Start-Ups o boost up the start-up ecosystem in India, the government has introduced special tax incentives for start-ups over the years. These start-up tax deductions are for enterprises which qualify as “eligible start-ups”. Eligible start-ups must be incorporated either as a private limited company, or as a partnership firm, or a limited liability partnership with a turnover of less than INR 100 Crores in previous fiscal years. An entity is considered to be a start-up only until 10 years from the date of its incorporation. Additionally, the start-up should be attempting to innovate or improve current goods, services, and procedures, and it should have the potential to produce money and jobs. It is mandatory for the "Start-up" to not be a company created through the division or reconstitution of an existing business. Tax benefits for start-ups: Following Tax benefits have been given to startups: Income tax exemption for a period of 3...