E-Commerce GST Applicability

E-commerce Operator:

1)Section 2(45):- An e-commerce operator : is a person who owns, operates or manages digital or electronic facility or platform for electronic commerce. 

2) Section 2(44) Electronic Commerce: “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

Levy & Collections of Tax:-section 9(5) of CGST ACT 2017

(5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:

Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:

Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.

Have To Insert any notificatioin Issued by govt in this regard

Notification 14/2017-Central Tax (Rate) dated 28 June, 2017 specifies that ‘ecommerce operator’ is liable to pay tax ‘as if he is the supplier liable to pay tax’ and lists the following:

“services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;”

  1. services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under clause (v) of section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 22 of the said Central Goods and Services Tax Act.

Registration:-

Section 24 of CGST Act 2017:-

  1. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––( Compulsory registration):-

(i) persons making any inter-State taxable supply;

(iv) person who are required to pay tax under sub-section (5) of section 9;

  1. ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
  2. x) every electronic commerce operator;:-

Section 52:- Collection of Tax at source:

  1. (1) Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.Explanation.––For the purposes of this sub-section, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month

 

Press information bureau Regarding the postponement of provision relating to TDS section 51 and TCS section 52 of CGST/SGST Act 2017:-

With the objective of ensuring smooth rollout of GST and taking into account the feedback received from the trade and industry regarding the provisions of deduction of tax at Source under Section 51 of the CGST / SGST Act 2017 and collection of tax at source under Section 52 of the CGST / SGST Act 2017, the following has been decided :-

The provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a date which will be communicated later.

Persons who will be liable to deduct or collect tax at source will be required to take registration, but the liability to deduct or collect tax will arise from the date the respective sections are brought in force.

The persons who were liable to be registered under clause (ix) of Section 24 of the CGST / SGST Act, 2017 (as they were supplying goods or services through electronic commerce operator who is required to collect tax at source under Section 52) will not be liable to register till the provision of Tax Collection at Source is brought under force.

Section 31(1) :

A registered person supplying taxable goods shall, before or at the time of,—

  • a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
  • b) delivery of goods or making available thereof to the recipient, in any other case,
  • issue a tax invoice
  • showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.

  • 2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which––

  • any other document issued in relation to the supply shall be deemed to be a tax invoice; or
  • tax invoice may not be issued:
    • 3) Notwithstanding anything contained in sub-sections (1) and (2)––
      • a) a registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;
      • b) a registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;
      • c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:

    Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;

    • d) a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document,  containing such particulars as may be prescribed, evidencing receipt of such payment;
      • e) where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment;
      • f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;
      • g) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.
      • 4) In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is
      • Subject to the provisions of clause (d) of sub-section (3),  in case of continuous supply of services,––
        • where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;
        • where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;
        • where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that
      • In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such
      • Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on approval for sale or return are removed before the supply takes place,  the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is

      Explanation.––For the purposes of this section,

ANNUAL COMPLIANCE

FILING BASED COMPLIANCE

  • Section 92 (Annual Return)- Every Company shall prepare its Annual Return in Form MGT-7 within 60 days of holding Annual General Meeting.

Signing Provision- Annual Return shall be digitally signed by a Director and the Company Secretary; or where there is no Company Secretary by a Company secretary in Practice.

If paid up capital is more than Rs. 10 crore or turnover is more than Rs. 50 crore a copy of Form MGT-8 (Certificate by Practicing Professional) is required to be annexed in Form MGT-7.

An Extract of Annual Return (Form MGT-9) shall form part of board’s Report.

  • Section 137( Copy of financial Statements to be filed with Registrar)- A copy of financial statements, including CFS, if any along with all the necessary annexures such as-

-Auditor’s Report;

-Director’s Report along with Form MGT-9 (Extract of Annual Return),

-CSR Policy, if any

-Form AOC-1, Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures, if any

shall be filed with the Registrar in Form AOC-4 or Form AOC-4 XBRL as the case may be, within 30 days of the AGM.

Holding company is also required to file consolidated financial statements in Form AOC-4 CFS

  • Section 139 (Appointment of Auditor) – Every company shall appoint statutory auditor for a period of 5 years and intimate the registrar in Form ADT-1.
  • In the subsequent AGM shareholders will ratify the appointment of Auditor, hence no need to file Form ADT-1
  • Section 170 (Registers of directors and Key Managerial Personnel and their shareholding)- A Return containing particulars of appointment or any change in director and Key Managerial Personnel shall be filed with Registrar within thirty (30) days of appointment or change in Form DIR-12.
  • Section 148 (Central Government to specify audit of items of cost in respect of certain Companies) Cost audit is applicable on class of companies (http://www.mca.gov.in/Ministry/pdf/rules_2_30062014.pdf) as specified by the central Government. T Shirt Versace Pas Cher The Audit shall be conducted by a Cost Accountant in Practice who shall be appointed by Board on such remuneration as may be decided by board and ratified by shareholders subsequently.

Intimation of appointment of cost auditor by the company to Central Government be made in Form CRA-2

NON-FILING BASED COMPLIANCE

Following compliances are required to be done and kept as the records with the Company for future reference.

  • Sec 184 (1), Rule 9 Chapter XII (Disclosure of Interest by Directors) Every Director shall disclose his interest in any company, body corporate, firms or other association of individuals by giving a notice in writing in Form MBP-1 in First meeting of BOD in each financial year and whenever there is any change in his interest or at the time of getting inducted as director on the Board.
  • Section 88 (Registers to be maintained)- Following registers are to be maintained by a private company-
  1. MGT-1-Register of members including details of shareholding and share transfer details;
  2. MGT-2- Register of Debenture holders/ other than security holders;
  3. Register of directors and Key Managerial Personnel ;
  4. MBP-2-Register of loans, guarantee, security and acquisition made by the company;
  5. MBP-3- Register of investments not held in its own name by the company;
  6. MBP-4-Contracts or agreements with any related party under section 188 or in which any director is concerned or interested under sub- section (2) of section 184;
  7. MBP-4(2)- Register of contracts with related party and contracts and Bodies etc.  in which directors are interested;
  8. Register of details of securities held by Directors and Key Management Personnel;
  9. CHG-7- Register of Charges
  • Section 139 (Appointment of Auditor) – Every company need to correspond with Auditor at the time of his appointment or ratification of his continuation. Usually the correspondence between the company and auditors is as under:

(a) At the time of appointment:

  • Letter by the company seeking consent, qualification and eligibility of the auditor;
  • Receipt of Consent to act as Auditor and Eligibility certificate from auditor;
  • Intimation to auditor after conclusion of AGM about his appointment and remuneration

(b) At the time of ratification:

  • Letter by the company seeking consent, qualification and eligibility of the auditor about his continuation as Statutory Auditor;
  • Receipt of Consent to act as Auditor and Eligibility certificate from auditor;
  • Intimation to auditor after conclusion of AGM about his ratification and remuneration
  • Section 134 (Director’s Report) – Private company is required to prepare its Director’s Report as per the provisions of section 134 of the Act.

Signing Provision- Board’s report and any annexures thereto shall be signed by the ‘Chairperson’ authorized by the board, and at lease by two directors where he is not authorized.

  • Section 101 & SS-II (Notice of General Meeting)- At least twenty-one(21) days notice of every general meeting shall be given to –
  1. Every member of the company, legal representative of any deceased member or the assignee of an insolvent member;
  2. The auditor of the company;
  3. Every director of the company

specifying the place, date, date and hour of the meeting and shall contain a statement of the business to be transacted at the meeting.

  • Section 136 (Right of the member to have copies of audited financial statement)- Company shall send to every member of the company copy of financial statement, including CFS, if any, auditor’s report, director’s report, not less than 21 days before the date of its Annual General Meeting.
  • Section 173 & SS-1 (Board Meetings)- Every Company shall hold at least four meetings of BOD every year in such a manner that not more than 120 days shall intervene between two consecutive meetings.
  1. Company shall hold at least one meeting in every calendar quarter.
  2. Notice in writing of every Meeting shall be given to every Director by hand or by speed post or by registered post or by courier or by facsimile or by e-mail or by any other electronic means.
  • Section 118 & Rule 25 of Chapter VII and SS-3 (Minutes of Proceedings of General Meeting, meeting of Board of Board of Directors and other meeting and resolution passed by postal ballot)- A distinct minute book shall be maintained for each type of meeting namely:-
  1. General meetings of the members;
  2. Meetings of creditors;
  3. Meetings of the board; and
  4. Meetings of each of the committees of the board
  • Minutes should begin with the number and type of the Meeting, name of the company, day, date, venue, time of commencement and conclusion.
  • Each item of business taken up at the Meeting should be appropriately numbered.
  • Minutes, once entered in the Minutes Book, should not be altered.
  • Minutes of all Meetings should be preserved permanently.
  • Section 148 (Central Government to specify audit of items of cost in respect of certain Companies) – Company need to correspond with cost auditor at the time of his appointment or ratification of his remuneration.  Usually the correspondence between the company and cost auditor is as under:

(a) At the time of appointment:

  • Letter by the company seeking consent, qualification and eligibility of the cost auditor;
  • Receipt of Consent to act as Auditor and Eligibility certificate from auditor;
  • Intimation to auditor after conclusion of board meeting about his appointment and remuneration

(b) At the time of ratification of remuneration by members:

  • Intimation to auditor after conclusion of meeting of members about ratification of his remuneration
  • ANNUAL COMPLIANCE NOT REQUIRED BY PRIVATE COMPANY
  • Section 121 (Report on AGM) – This section is not applicable on Private Companies and applicable only on Listed companies.
  • Section 204 (Secretarial Audit)- Private companies are not required to comply with the requirements of secretarial audit as Secretarial Audit is applicable on listed companies and public companies having paid up share capital of Rs.50 crore or more or turnover Rs. 250 crore or more.
  • Approval of Accounts by Board- Private Companies are not required to file Form MGT-14 in respect of Approval of accounts by board vide Notification dated 05 June, 2015.

SECTION 8 COMPANIES REGISTERD AS PRIVATE LIMITED COMPANY All the compliances are same in case of Section 8 Company except the followings:

  • Section 8 Companies should prepare Income and Expenditure Account instead of Profit and Loss Account as per clause (ii) of sub-section 40 of Section 2 of Companies Act, 2013
  • Section 8 company can call its Annual General Meeting by giving a fourteen days notice.

MASTER ALERTS-

While completing annual compliances, one should carefully go through the followings facts as each one of them may have serious repercussions in terms of penalties and lapses:

  • Subsidiary, Joint Venture and Associate Companies: While preparing Annual Filing Document Company should judiciously analyze its investment/ shareholding in other companies so as to determine the relationship as subsidiary, joint venture and associate companies.

Details of financial position of Subsidiary Company is required to be given in Form AOC-1 (Part-A)

Details of financial position of Joint Venture and Associate Companies is required to be given in Form AOC-1 (Part-B)

  • Holding Company: While preparing Annual documents care should be taken and details of Holding company is required to be mentioned wherever applicable.

Holding company is required to file consolidated financial statements in Form AOC-4 CFS

  • Related Party Transactions and their limits for next year: Disclosure regarding related party transaction undertaken during the year is required to be made in Form AOC-2.

For taking approval from shareholders for related party transaction to be undertaken in next year a resolution alongwith explanatory statement is required to be included in Notice of Annual General Meeting indicating name of related party, nature of relationship and amount of transaction.

  • Directors appointed during the year as Additional Directors: Directors who were appointed as additional directors during previous financial year deemed to have vacated their office at the Annual general Meeting held after their appointment, so their appointment need to be regularized by including the resolution of Regularization of Director in Notice of Annual General Meeting alongwith explanatory statement and approve the same by shareholders.

Form DIR-12 is required to be filed with registrar for Regularization of Additional Director.

Some Important definitions-

  • Associate- In relation to another company, means a company in which that other company has a significant influence, but which is not s subsidiary company of the company having such influence and includes a joint venture company
  • Subsidiary- Subsidiary company or subsidiary in relation to any other company (that is to say the holding company), means a company in which the holding company-
  1. Controls the composition of the Board of directors; or
  2. Exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.

FORSEEABLE FUTURE: Government of India is taking steps for ‘Ease of Doing Business’.This is very easy to predict that annual compliances will also reduce in the span of next two / three years. Entrepreneurs having private limited companies shall neither hurry to convert their existing companies into LLP nor to close down the entity using Simplified Exit Scheme.

Invoicing under GST

GST defines a transaction as ‘Supply’ when there is a transfer, exchange, rental, lease, barter, disposal or license of goods or services. Whenever a transaction takes place, a tax invoice has to be issued depending on the occurrence of any such event or within a prescribed time limit. Hence, every taxpayer registered under the GST network shall be required to issue a tax invoice for the supply of goods or services.

Tax invoices have to be raised under certain circumstances. In the case of supply of goods, the invoices shall be raised within the prescribed time as enumerated below.

  • When there is actual movement of goods, then before or at the time of removal of such goods.
  • If there is no movement involved, then earlier of delivery or making available of such goods.
  • In case of successive issuance of goods, then earlier of each such issuance.
  • On the receipt of goods when on GST is applicable on a reverse charge basis
  • When goods are sold on an approval basis, then earlier of 6 months from the removal date or before or at the time of such removal.
  • Similarly, in the case of supply of services, the invoice has to be issued as follows, within the mentioned time.
    • Within 30 days from the actual supply
    • In case of continuous supply where due date can be ascertained, then 30 days from such due date
    • In case of continuous supply where due date cannot be ascertained, then 30 days from actual payment date
    • In case of cessation of supply before the contract ends, then at the time of such cessation.

    The due date of 30 days is 45 days in case of banks and other financial institutions.

    These invoices have to be issued in TRIPLICATE in the case of supply of goods, original for the recipient, duplicate for the transporter and triplicate copy for the supplier. Likewise, in case of supply of services, the invoices have to be issued in DUPLICATE, where the original will be meant for the recipient and the duplicate copy will be for the supplier.

    How to Create GST Invoice

    The Government of India has come out with a sample GST Invoice format. Slip Calvin Klein Outlet A sample format is shown below. It is better to issue invoices on the same lines as the example since your Input Tax Credit largely depends on the Invoice Number and its proper reporting. Calzoncillos Calvin Klein Hombre Tangas de Calvin Klein The serial number of the invoice forms the basis of mismatch or matching the invoices between the supplier and the receiver, giving a seamless, hassle-free credit flow.

  • There is certain crucial information that needs to be mentioned mandatorily in the GST invoice. Ropa Interior Calvin Klein Barata These are:
    • Name, address and the GSTIN of the supplier
    • The nature of invoice (tax invoice, supplementary invoice or revised invoice)
    • Invoice number (this shall be a consecutive alpha-numeric or numeric series, specific for a financial year)
    • Date of Invoice
    • Name, address and the GSTIN of the recipient
    • Where the value of the goods exceeds Rupees Fifty Thousand and the recipient is an unregistered person, then name and address of such recipient and the delivery address of the consignment.
    • Description of the goods or services
    • HSN code of the goods or the Accounting Code of the Services
    • Quantity of the goods or services
    • Total value of the goods or services
    • Rate of Tax on each item
    • Tax amount charged, on account of CGST, IGST, and SGST to be shown separately under different columns
    • Name of the supplying State and the place of supply
    • Place of delivery
    • A statement mentioning whether reverse charge is applicable or not
    • Trade Discounts not forming part of value of the goods, if any
    • Signature in physical form or Digital Signature of the supplier or an authorized person, duly certifying the invoice

    In addition to the above particulars, an export invoice shall include the following.

    • A mandatory statement mentioning these specific words – “SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST.”
    • Country of destination
    • Delivery address
    • The Number and date of application of form for removal, i.e. Form ARE-1
    • Likewise, when an Input Service Distributor issues the invoice, then “Amount of credit distributed” shall also be added to the invoice instead of the rate and value of the goods or services.

      If you are a Goods Transport Agency, you are a critical link in the supply chain and has to include the following in your invoice.

      • Name and address of the consignor and the consignee
      • Registered Vehicle number
      • Gross weight of the consignment
      • Place of Origin
      • Destination
      • GSTIN of the person liable to pay tax

      The transporter does not require to the Duplicate copy of the Invoice. Instead, they can opt for Invoice Reference Number, which can be generated by the supplier by uploading the tax invoice onto the GST Portal. The portal shall generate a number that is valid for 30 days from such date.

      Apart from the tax invoice, other important documents include Supplementary Invoice, Revised Invoice, Debit or Credit Notes, and Bill of Supply. Let us discuss each one in details.

      Bill of Supply

      When a registered supplier makes a supply of exempted goods or services, or the supplier is registered under the composition scheme, then he has to issue a Bill of Supply instead of a tax invoice.

    • Supplementary Invoice / Debit Note

      Whenever there is an upward revision in prices of a good or service supplied earlier and the same was chargeable to GST, then the supplier is liable to issue a supplementary invoice to the recipient. The said supplementary invoice should be raised within 30 days from the date of such price revision.

    • Credit Note

      Just like the debit note where there is an upward revision in price, credit note has to be issued when there is a downward revision of price. Culottes Calvin Klein Baratos GST should have been charged in the previous transaction. Bragas Calvin Klein Baratas The credit note has to be issued on or before 30th September of the next financial year or before filing the annual return of GST, whichever is earlier.

      The contents of these documents are the same as that of tax invoice. The only major difference is that the nature of the invoice must be mentioned in Bold specifically on top of the invoice. For e.g. Boxer Mujer Calvin Klein “SUPPLEMENTARY INVOICE,” “DEBIT NOTE” etc.

      All the above documents, including the tax invoice, has to be maintained for 6 years (currently prescribed by the GST council). Bikini Calvin Klein 2016 Thus, it requires a very strong IT system that records and maintains such a database for the prescribed time.

    • Cross – Referencing of Invoices

      Since the invoice forms a crucial part in claiming credit for the GST paid therein, it is obligatory to upload returns on time so that the credit flows to the end customer seamlessly.

Input Tax Credit

a) Input Tax Credit (ITC) is the backbone of the GST regime.

b) GST is nothing but a value added tax on goods & services combined.

c) It is these provisions of Input Tax Credit that make GST a value added tax i.e.,  collection of tax at all points after allowing credit for the inputs.

d) The procedures and restrictions laid down in these provisions are important to make sure that there is seamless flow of credit in the whole scheme of transition without any misuse.

e) Thus, the clarity of rules of availment and utilization will have significant impact on making GST a taxpayer-friendly tax.

f) One of the biggest advantages expected from the implementation of GST Act is that it would remove cascading effect by facilitating seamless flow of credit.

g) This would be given effect by providing for the availment of ITC to the purchasing dealer in respect of the GST paid by the supplying dealer and thus by removing the restrictions placed in the present Cenvat credit rules on availment of credit which lead to break in the credit chain and consequent cascading effect which
further leads to increase in cost of goods and services.

h) Thus linking of invoice to invoice would eliminate any ambit for revenue leakage.Chapter V of the model law deals with ITC mechanism provisions.

i) ITC has been defined as credit of IGST/CGST/SGST charged on any supply of goods and or services used or intended to be used in the course or furtherance of business and includes the tax payable under revserse charge .

j) Registered taxable person shall be eligible to avail ITC credited to the e-credit ledger subject to condition prescribed without restrictions of availment (such as 50% of capital goods).

Conditions for availing of ITC:

– Taxpaying documents such as tax invoice, debit note etc.,
– Goods / service should have been received/deemed to be received by the taxable person
– Tax charged on the invoice and should have been paid to the credit of government.
– Return should have been furnished by the tax payer.
– Credit for goods against an invoice received in lots / installments can be availed only on last lot in
installment.
– The timelines for entitlement of credit against a particular invoice shall lapse on the expiry of one
year from date of issue of invoice.

Ways / Manner for availing/payment of ITCby a registered person:
– Tax credit entitlement on stock held and contained in semi-finished and finished goods
o On the day immediately preceding the date of registration in case person obtaining voluntarily registration
o On the day immediately preceding the date from which the person becomes liable to pay tax,  in case person applied for registration within 30 days from the date of liability to pay tax or in case person ceases to pay composition tax and becomes liable to pay tax. under normal provision.

Proportionate credit in case of goods/services used partially for business use and partially for non-business
– Proportionate credit in case goods/services are used partly for effecting taxable supplies and
zero rated supplies and partly for effecting nontaxable supplies and exempt supplies

Transfer of unutilized credit allowed in case of change in constitution of person due to sale,merger,  amalgamation or transfer of business with provision for transfer of liabilities.
– Switch over from regular scheme to composite scheme by debiting cash ledger of amount equivalent to ITC on stock.

Taxable Event – Supply

The taxable event for levy of GST shall be ‘supply’ of goods and/ or services. Ropa Interior Calvin Klein Mujer The term ‘supply’ is defined inclusively to cover general supply and deemed supply.
General supply includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made for a consideration.
Deemed supply includes specified transactions made without consideration.Impact
Supply of services by CA, CS and CMA for a consideration shall be leviable to GST.
Nature of Supply – Inter-state vs. Intra-state supplies

Central GST (CGST) and State GST (SGST) will be leviable on intra-State supplies and Integrated GST (IGST) will be leviable on inter-State supplies. IGST will be summation of CGST and SGST.
Supply of goods and/or services shall be Inter-state if ‘location of supplier’ and ‘place of supply’ are in different States. Otherwise the supply will be Intra-state. ‘Location of supplier’ is generally the registered place of business. ‘Place of Supply’ of services generally is the location of service receiver.Impact
Accordingly, if service provider and service receiver are located within a state, the same will be Intra-state supply liable to CGST/SGST. Boxer Calvin Klein However, if service receiver is located in a different state, the transaction will be Inter-state supply liable to IGST.

Time of Supply and Valuation

The provisions relating to time of supply and valuation are more or less on the same lines as existing in the current service tax regime.

Impact

Accordingly, time of supply of services shall be date of invoice or date of receipt of payment, whichever is earlier. In case invoice is not issued within prescribed time, time of supply will shift to the date of completion of service.
The value of service shall be the price actually paid or payable for supply.
Place Where Tax to be Deposited

Taxable person is one who carries on business at any place in India and who is liable to be registered. Person is liable to be registered in the State from where supplies are made.
Impact

Tax is to be deposited in the State from where supply is made by the supplier. There are no clear provisions to determine the place from where supplied are made.

Registration

Every office of chartered in different state has to take separate registration. There is no concept of centralized registration as of now. Calzoncillos Calvin Klein Baratos Existing taxpayers will be granted registration on provisional basis valid for 6 months.
Input Tax Credit
Input Tax Credit (ITC) is available in respect of inputs, capital goods and input services. There is a negative list of items on which no ITC is available.
ITC is available only on provisional basis until the supplier makes the tax payment and files a valid return. There will be matching of supplier and receiver data and credit will be confirmed only after such matching. Where the data is not matched and where the supplier has not made the tax payment, the ITC shall be reversed with interest.
Interest is from the date of wrong availment or utilization.
Returns
Professionals like CA, CS and CMA are liable to file GSTR 1 (Statement of outward supplies), GSTR 2 (Statement of inward supplies), GSTR 3 (Statement of final tax and GSTR 8 (Annual return). Further, they may also be required to file GSTR 7 (Statement of TDS).
Payment of Taxes
Prioritization rule has been inserted for payment of taxes whereby taxes for the current period cannot be paid until the taxes/interest/late-fee/penalty in relation to returns of previous tax periods have not been deposited.

Transitional Provisions

Amount of CENVAT credit carried forward in a service tax return will be allowed as ITC under GST.

Highlights of the UNION Budget 2016

The thrust of tax proposals this year falls in nine categories:-

Relief to small tax payers.

Measures to boost growth and employment generation.

Incentivizing domestic value addition to help Make in India.

Measures for moving towards a pensioned society.

Measures for promoting affordable housing.

Additional resource mobilization for agriculture, rural economy and clean environment.

Reducing litigation and providing certainty in taxation.

Simplification and rationalization of taxation.

Use of Technology for creating accountability.

Relief to small tax payers.

Section87A

  • In order to lessen tax burden on individuals with income not exceeding `5 lakhs, it has been proposed to raise the ceiling of tax rebate under section87A from `2,000 to `5,000. There are 2 crore tax payers in this category who will get a relief of `3,000 in their tax liability.

Section 80GG

  • The people who do not have any house of their own and also do not get any house rent allowance from any employer today get a deduction of `24,000 per annum from their income to compensate them for the rent they pay. It has been proposed to increase the limit of deduction in respect of rent paid under section 80GG from `24,000 per annum to `60,000 per annum, which should provide relief to those who live in rented houses.

Section 44AD

  • Presumptive taxation scheme under section 44AD of the Income Tax Act is available for small and medium enterprises i.e non corporate businesses with turnover or gross receipts not exceeding one crore rupees. At present about 33 lakh small business people avail of this benefit, which frees them from the burden of maintaining detailed books of account and getting audit done.  It has been proposed to increase the turnover limit under this scheme to Rupees two crores which will bring big relief to a large number of assesses in the MSME category.

Section 44AD

  • It has also been propsed to extend the presumptive taxation scheme to professionals with gross receipts up to `50 lakh with the presumption of profit being 50% of the gross receipts.

Measures to boost growth and employment generation

The highlights on phasing out exemptions are as follows:-

The accelerated depreciation provided under IT Act will be limited to maximum 40% from 1.4.2017.

The benefit of deductions for Research would be limited to 150% from 1.4.2017 and 100% from 1.4.2020.

The benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020.

The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020.

 

2.  The reduction in corporate tax rate has to be calibrated with
additional revenue expected from the incentives being phased out. The

 

benefits from phasing out of exemptions are available to Government only gradually. In the first phase, therefore, It has been proposed the following two changes in corporate income-tax rates:-

 

  • The new manufacturing companies which are incorporated on or after 1.3.2016 are proposed to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.

 

  • It has also been propses to lower the corporate income tax rate for the next financial year of relatively small enterprises i.e companies with turnover not exceeding 5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess.

Startups generate employment, bring innovation and are expected to be key partners in Make in India programme. It has been proposed to assist their propagation through 100% deduction of profits for 3 out of 5 years for startups set up during April 2016 to March 2019. MAT will apply in such cases. Capital gains will not be taxed if invested in regulated/notified Fund of Funds and by individuals in notified startups, in which they hold majority shares.

  1. Research is the driver of innovation and innovation provides a thrust to economic growth. It has been proposed a special patent regime with 10% rate of tax on income from worldwide exploitation of patents developed and registered in India.
  1. In order to get more investment in Asset Reconstruction Companies (ARCs) which play a very important role in resolution of bad debts, It has been proposed to provide complete pass through of income-tax to securitization trusts including trusts of ARCs. The income will be taxed in the hands of the investors instead of the trust. However, the trust will be liable to deduct tax at source.
  1. The period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.
  1. Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.
  1. The determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year.
  1. It has been to reiterated with commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
  1. n order to meet with our commitment to BEPS initiative of OECD and G-20, the Finance Bill, 2016 includes provision for requirement of country by country reporting for companies with a consolidated revenue of more than Euro 750 million.
  1. It has been proposed to exempt service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.

It has been proposed to exempt service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability.

  1. To promote use of refrigerated containers, It has been proposed to reduce the basic custom and excise duty on them to 5% and 6% respectively.
  1. A number of assistive devices, rehabilitation aids and other goods for differently abled (Divyang) persons attract Nil basic customs duty. It has been proposed to extend this exemption to Braille paper.

Incentivising domestic value addition to help Make in India.

Customs and excise duty structure plays an important role in incentivizing domestic value addition towards Make in India campaign of our Government. In line with that, It has been proposed to make suitable changes in customs and excise duty rates on certain inputs, raw materials, intermediaries and components

and certain other goods and simplify procedures, so as to reduce costs and improve competitiveness of domestic industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair etc.

Measures for moving towards a pensioned society

Pension schemes offer financial protection to senior citizens.  It has been proposed to make withdrawal up to 40% of the corpus at the time of retirement tax exempt in the case of National Pension Scheme.

  1. In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made after 1.4.2016.
  1. Further, the annuity fund which goes to the legal heir after the death of pensioner will not be taxable in all three cases.  Also, It has been proposed a monetary limit for contribution of employer in recognized Provident and Superannuation Fund of 1.5 lakh per annum for taking tax benefit.

It has been proposed to exempt from service tax the Annuity services provided by the National Pension System (NPS) and Services provided by EPFO to employees.

It has also been proposed to reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.

Measures for promoting affordable housing

Pradhan Mantri Awas Yojna embodies the assurance of the Government to address the housing needs of all and more specifically the poor, in a time bound manner. Construction of houses creates considerable employment opportunities as well. In order to fuel activity in the housing sector, It has been proposed to give 100% deduction for profits to an undertaking from a housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019, and is completed within three years of the approval. Minimum Alternate Tax will, however, apply to these undertakings.

  1. For the ‘first – home buyers’, It has been proposed to give deduction for additional interest of 50,000 per annum for loans up to 35 lakh sanctioned during the next financial year, provided the value of the house does not exceed 50 lakh.
  1. Another proposal to stimulate housing activity is to facilitate investments in Real Estate Investment Trusts. Ii has been proposed that any distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax.
  1. It is proposed to exempt service tax on construction of affordable houses up to 60 square metres under any scheme of the Central or State Government  including PPP Schemes.
  1. It has also been proposed to extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work at such site to Ready Mix Concrete.

Additional resource mobilization for agriculture, rural economy and clean environment

Dividend Distribution Tax (DDT) uniformly applies to all investors irrespective of their income slabs. This is perceived to distort the fairness and progressive nature of taxes. Persons with relatively higher income can bear a higher tax cost. It,is therefore, proposed that in addition to DDT paid by the companies, tax at the rate of 10% of gross amount of dividend will be payable by the recipients, that is, individuals, HUFs and firms receiving dividend in excess of 10 lakh per annum.

It has also been proposed to raise the surcharge from 12% to 15% on persons, other than companies, firms and cooperative societies having income above 1 crore.

  1. It has also been proposed to collect tax at source at the rate of 1% on purchase of luxury cars exceeding value of Rs.ten lakh and purchase of goods and services in cash exceeding Rs.two lakh. For compliant tax payers with resources, this levy not only advances collection of tax when the expenditure is incurred, but it provides data to the tax authorities to identify the persons who incur such expenditure, but may be missing from the tax base. Farmers and notified class of persons will have an option of giving a form by which TCS will not be charged.
  1. Rate of Securities Transaction tax in case of ‘Options’ is proposed to be increased from .017% to .05%.
  1. In order to tap tax on income accruing to foreign e-commerce companies from India, it is proposed that a person making payment to a non-resident, who does not have a permanent establishment, exceeding in aggregate 1 lakh in a year, as consideration for online advertisement, will withhold tax at 6% of gross amount paid, as Equalization levy. The levy will only apply to B2B transactions.
  1. It has also been proposed to impose a Cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services, proceeds of which would be exclusively used for financing initiatives relating to improvement of agriculture and welfare of farmers. The Cess will come into force with effect from 1st June 2016. Input Tax credit of this cess will be available for payment of this cess.
  1. The pollution and traffic situation in Indian cities is a matter of concern. I propose to levy an infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs.
  1. It has also been proposed to impose an excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other preciousstones], with a higher exemption and eligibility limits of 6 crores and 12 crores respectively. Necessary steps will also be taken to enable the new taxpayers to comply with this levy without any difficulty.

 

  1. It has been proposed to change the excise duty on branded readymade garments and made up articles of textiles with a retail sale price of 1,000 and above from ‘Nil without input tax credit or 6%/12.5% with input tax credit’ to ‘2% without input tax credit or 12.5% with input tax credit’.

It has been proposed to rename the ‘Clean Energy Cess’ levied on coal, lignite and peat as ‘Clean Environment Cess’ and simultaneously increase its rate from 200 per tonne to 400 per tonne.

  1. To discourage consumption of tobacco and tobacco products, It has been proposed to increase the excise duties on various tobacco products other than beedi by about 10 to 15%.
  1. It has been proposed to amend the Finance Act, 1994 so as to declare assignment by the Government of the right to use the radio-frequency spectrum and its subsequent transfers a service, to make it clear that assignment of right to use the spectrum is a service leviable to service tax and not sale of intangible goods.

Reducing litigation and providing certainty in taxation

Moving towards a lower tax regime with non-litigious approach. Thus, while compliant taxpayers can expect a supportive interface with the department, tax evasion will be countered strongly. Capability of the tax department to detect tax evasion has improved because of enhanced access to information and availability of technology driven analytical tools to process such information. I want to give an opportunity to the earlier non-compliant to move to the category of compliant.

It has been proposed a limited period Compliance Window for domestic taxpayers to declare undisclosed income or income represented in the form of any asset and clear up their past tax transgressions by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. There will be no scrutiny or enquiry regarding income declared in these declarations under the Income Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution. Immunity from Benami Transaction (Prohibition) Act, 1988 is also proposed subject to certain conditions. The surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy. We plan to open the window under this Income Disclosure Scheme from 1st June to 30th September, 2016 with an option to pay amount due within two months of declaration.

Litigation is a scourge for a tax friendly regime and creates an environment of distrust in addition to increasing the compliance cost of the

tax payers and administrative cost for the Government. There are about 3 lakh tax cases pending with the 1st Appellate Authority with disputed amount being 5.5 lakh crores. In order to reduce this number, It has been proposed a new Dispute Resolution Scheme (DRS).

 

  1. A taxpayer who has an appeal pending as of today before the

Commissioner (Appeals) can settle his case by paying the disputed tax and interest up to the date of assessment. No penalty in respect of Income-tax cases with disputed tax up to 10 lakh will be levied. Cases with disputed tax exceeding 10 lakh will be subjected to only 25% of the minimum of the imposable penalty for both direct and indirect taxes. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty. Certain categories of persons including those who are charged with criminal offences under specific Acts are proposed to be barred from availing this scheme.

In order to give an opportunity to the past cases which are ongoing under the retrospective amendment, It has been proposed a one-time scheme of Dispute Resolution for them, in which, subject to their agreeing to withdraw any pending case lying in any Court or Tribunal or any proceeding for arbitration, mediation etc. under BIPA, they can settle the case by paying only the tax arrears in which case liability of the interest and penalty shall be waived.

Levy of heavy penalty for concealment of income has over the years resulted in large number of disputes despite a number of decisions of the Apex court on interpretation of statutory provisions and principles guiding imposition of penalty. At present the Income-tax Officer has discretion to levy penalty at the rate of 100% to 300% of tax sought to be evaded. It has been proposed to modify the entire scheme of penalty by providing different categories of misdemeanor with graded penalty and thereby substantially reducing the discretionary power of the tax officers. The penalty rates will now be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts. Remission of penalty is also proposed in certain circumstances where taxes are paid and appeal is not filed.

Another issue which has led to considerable number of disputes is quantification of disallowance of expenditure relatable to exempt income in terms of Section 14A of the Income Tax Act. It has been proposed to rationalize the formula in Rule 8D governing such quantification. The said Rule is being amended to provide that disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed.

As another tax payer friendly measure, It has been proposed to provide a time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.

The Income-tax Department is also issuing instruction making it mandatory for the assessing officer to grant stay of demand once the assesse pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals). In case of deviation, assessing officer has to get orders of his superiors. The tax payer also has an option to go to superior officer in case he does not agree with conditions of stay order passed by the subordinate officer.

In order to remove backlog of cases it has been proposed to creat 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

The monetary limit for deciding an appeal by a single member Bench of ITAT is proposed to be enhanced from 15 lakhs to 50 lakhs.

It has also been proposed to amend the CENVAT Credit Rules, 2004, so as to improve credit flow, reduce the compliance burden and associated litigation, particularly those relating to apportionment of credit between exempted and non exempted final products/services. The amendments in these rules will also enable manufacturers with multiple manufacturing units to maintain a common warehouse for inputs and distribute inputs with credits to the individual manufacturing units.

Simplification and rationalization of taxation

The Government has already accepted many recommendations of Tax Administration Reform Committee and It has been proposed to accept a number of recommendations of Justice Easwar Committee in this Budget.

To reduce multiplicity of taxes, associated cascading and to reduce cost of collection, It is proposed to abolish 13 cesses, levied by various Ministries in which revenue collection is less than 50 crore in a year.

To improve the cash flow position of small tax payers who get their funds blocked due to current TDS provision, It has been proposed to rationalize TDS provisions for Income Tax as Given hereunder.

Measures for TDS / TCS Rationalisation

Present Heads Existing Proposed
Section Threshold Threshold
Limit (`) Limit (`)
192A Paymentof accumulated 30,000 50,000
balance due to an employee
in EPF
194BB Winnings from Horse 5,000 10,000
Race
194C Payments to Contractors Aggregate Aggregate
annual limit annual limit
of 75,000 of 1,00,000
194LA Payment of Compensation on 2,00,000 2,50,000
acquisition of certain
Immovable Property
194D Insurance commission 20,000 15,000
194G Commission on sale of lottery 1,000 15,000
tickets
194H Commission or brokerage 5,000 15,000
Present Heads Existing Proposed
Section Rate of Rate of
TDS (%) TDS (%)
194DA Payment in respect of Life 2% 1%
Insurance
Policy
194EE Payments in respect of NSS 20% 10%
Deposits
194D Insurance commission 10% 5%
194G Commission on sale of lottery 10% 5%
tickets
194H Commission or brokerage 10% 5%
194K Income in respect of Units To be
omitted w.e.f
01.06.2016
194L Payment of Compensation on To be
acquisition of Capital Asset omitted w.e.f
01.06.2016

 

 

  1. Non-residents without PAN are currently subjected to a higher rate of TDS. It is proposed to amend the relevant provision to provide that on furnishing of alternative documents, the higher rate will not apply.

 

  1. The facility for revision of return, hitherto available to a service tax assessee only, is being extended to Central Excise assessees also.

 

  1. It has been proposed to provide additional options to banking companies and financial institutions, including non-banking financial companies, for reversal of input tax credits with respect to non-taxable services provided by them by way of extending deposits, loans and advances.

 

  1. It has been proposed to amend the Customs Act to provide for deferred payment of customs duties for importers and exporters with proven track record.

The customs Baggage Rules for international passengers are being simplified so as to increase the free baggage allowance. The filing of baggage declaration will be required only for those passengers who carry dutiable goods.

Use of Technology for creating accountability

Technology is a boon for mankind.  We plan to use technology in taxation Department in a big way to make life simpler for a law abiding citizen, and also for data mining to track tax evaders.

A pilot was run in 2015-16 for e-assessment to obviate the requirement for tax payers to visit the Income-tax offices. It has been proposed to expand the scope of e-assessments to all assesses in 7 mega cities in the coming years.

Mandatory Compliances for a Private Limited Company in India as per companies Act 2013:

Although Private Limited Company is the most popular form of starting a business, there are various compliances which are required to be followed once your business is incorporated. Adidas Yeezy Boost 750 Managing the day to day operations of your business along with complying the corporate laws can be little taxing for any entrepreneur. Hence, it is essential to take help of a professional and also understand such legal requirements to ensure timely fulfilment of compliances, without any levy of interest or penalty.

We have elaborated below some of the common compliances which a private limited company has to mandatorily ensure:

Compliance Requirement Description and Timeline
Appointment of Auditor Auditor will be appointed for the 5 (Five) years and form ADT-1 will be filed for 5-year appointment.The first Auditor will be appointed within one month from the date of incorporation of the Company.
Statutory Audit of Accounts Every Company shall prepare its Accounts and get the same audited by a Chartered Accountant at the end of the Financial Year compulsorily. The Auditor shall provide an Audit Report and the Audited Financial Statements for the purpose of filing it with the Registrar.
Filing of Annual Return (Form MGT-7) Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Annual Return will be for the period 1st April to 31st March.
Filing of Financial Statements (Form AOC-4) Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.
Holding Annual General Meeting It is mandatory for every Private Limited Company Company to hold an AGM in every Calendar Year. Companies are required to hold their AGM within a period of six months, from the date of closing of the Financial Year.
Preparation of Directors’ Report Directors’ Report will be prepared with a mention of all acheterdufrance.com the information required under Section 134.

Statutory Audit

The purpose of a statutory audit is the same as the purpose of any other audit – to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.

  • Appointment of the Statutory Auditors of the Company.
  • Finalise Annual Accounts with the Auditors of the Company

Annual RoC Filings

  • Private Limited Companies are required to file its Annual Accounts and Returns disclosing details of its shareholders, directors etc to the Registrar of Companies. Ropa Interior Calvin Klein Hombre Such compliances are required to be made once in a year.
  • As a part of Annual Filing, the following forms are to be filed with the ROC:
    • Form MGT-7 (Annual Return) : Every Private Limited Company is required to file its Annual Return within 60 days of holding of Annual General Meeting. Calzoncillos Calvin Klein Baratos Annual Return will be for the period 1st April to 31st March.
    • Form AOC-4 (Financial Statements) : Every Private Limited Company is required to file its Balance Sheet along with statement of Profit and Loss Account and Director Report in this form within 30 days of holding of Annual General Meeting.

Annual General Meeting

  • Every Private Limited Company is required to hold a meeting of its shareholders once in every year within a period of six months from the date of closing of the financial year.
  • The primary agenda of an AGM includes approval of financial statements, declaration of dividends, appointment or re-appointment of auditors, appointment and remuneration of directors etc.
  • The Annual General Meeting shall be held during business hours on a day which is not a public holiday and shall take place at the registered office of the company or at some other place within the city, town or village in which the registered office of the company is situated.

Board Meetings

  • The First meeting of the Board of Directors of a Private Limited Company shall be conducted within 30 days from the date of Incorporation of company.
  • Further, minimum Four Board Meetings shall be held in a calendar year (one meeting in every 3 months).
    In case of a Private Limited Company which is classified as a “Small Company”, atleast two Board Meetings shall be held in a calendar year (one meeting in every half year)
  • Most of the startups fall within the category of “Small Company”.
  • Minimum 2 directors or 1/3rd of the total number of directors, whichever is greater, are required to be present in meeting of the Board of Directors. The discussions of the meeting need to be drafted and recorded in the form of “Minutes of the Meeting” and maintained at the Registered Office of the Company.
  • Directors should be intimated about the date and purpose of the meeting by giving a notice atleast 7 days in advance from the date of the meeting.

Directors’ Report

Every director has to disclose about his directorship in other companies every year. This shall be done by giving a declaration in writing to the company every year in a specified Directors’ Report format.

Income Tax Compliances

  • Calculation and Quarterly Payment of Advance Tax
  • Filing of Income Tax Returns (Tax will be payable at a flat rate of 30% plus Education Cess)
  • Tax Audit – Mandatory in case sales, turnover or gross receipts of a business exceed Rs. One Crore in the previous year relevant to the assessment year.
  • Filing of Tax Audit Report

Maintenance of Statutory Registers and Records

A Private Limited Company has to maintain various statutory registers and records as required by the Company law such as Register of shares, Register of Members, Register of Directors etc. Besides, Incorporation documents of the company, Resolutions of the meetings of the Board of Directors, Minutes of the Board Meetings and Annual General Meeting etc are also required to be preserved by the Company.

Such records are to be kept at the registered office of the company and shall be open for inspection to its members during business hours. Also, the books of account of every company relating to a period of atleast eight financial years should be preserved and kept in good order.

Other Event Based Filings

Besides Annual Filings, there are various other compliances which need to be done as and when any event takes place in the Company. Yeezy Boost 350 Vente Instances of such events are:

  • Change in Authorised or Paid up Capital of the Company.
  • Allotment of new shares or transfer of shares
  • Giving Loans to other Companies.
  • Giving Loans to Directors
  • Appointment of Managing or whole time Director and payment of remuneration.
  • Loans to Directors
  • Opening or closing of bank accounts or change in signatories of Bank account.
  • Appointment or change of the Statutory Auditors of the Company.

Different forms are required to be filed with the Registrar for all such events within specified time periods. In case, the same is not done, additional fees or penalty might be levied. Hence, it is necessary that such compliances are met on time.

Non-Compliance

If a Company fails to comply with the rules and regulations of the Companies Act, then the Company and every officer who is in default shall be punishable with fine for the period for which default continues.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of XYZ Limited (“the Company”) as of 31 March 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). T Shirt Ralph Lauren Pas Cher Ropa Interior Calvin Klein Mujer These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. Short de Bain Philipp Plein Calvin Klein Tanga We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. T Shirt Versace Homme Pas Cher Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Ropa Interior Masculina Calvin Klein Baratos The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including https://www.viagrapascherfr.com/viagra-femme-prix-pfizer/ the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.

Rules regarding quoting of PAN for specified transactions amended

The Government is committed to curbing the circulation of black money and widening of tax base. To collect information of certain types acheter viagra of transactions from third parties in a non-intrusive manner, the Income-tax Rules require quoting of Permanent Account Number (PAN) where the transactions exceed a specified limit. Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity.

One of the recommendations of the Special Investigation Team (SIT) on Black Money was that quoting of PAN should be made mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh. Accepting http://www.cialispharmaciefr24.com/vente-cialis-generique/ this recommendation, the Finance Minister made an announcement to this effect in his Budget Speech. The Government has since received numerous representations from various quarters regarding the burden of compliance this proposal would entail. Considering the representations, it has been decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment.

To bring a balance between burden of compliance on legitimate transactions and the need to capture information relating to transactions of higher value, the Government has also enhanced the monetary limits of certain transactions which require quoting of PAN. Adidas Yeezy Pas Cher Homme The monetary limits have now been raised to Rs. Chaussure Adidas Ultra Boost 10 lakh from Rs. 5 lakh for sale or purchase of immovable property, to Rs.50,000 from Rs. Boxer Calvin Klein Al Mayor 25,000 in the case of hotel or restaurant bills paid at any one time, and to Rs. 1 lakh from Rs. 50,000 for purchase or sale of shares of an unlisted company. In keeping with the Government’s thrust on financial inclusion, opening of a no-frills bank account such as a Jan Dhan Account will not require PAN. Other than that, the requirement of PAN applies to opening of all bank accounts including in co-operative banks.

The changes to the Rules will take effect from 1st January, 2016.

The above changes in the rules are expected to be useful in widening the tax net by non-intrusive methods. They are also expected to help in curbing black money and move towards a cashless economy.

A chart highlighting the key changes to Rule 114B of the Income-tax Act is attached.


Sl.
NATURE OF TRANSACTION MANDATORY QUOTING OF PAN (RULE 114B)
Existing requirement New requirement
1. Immovable property Sale/ purchase valued at Rs.5 lakh or more i. Sale/ purchase exceeding Rs.10 lakh; 

ii. T Shirt Kenzo Homme Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.

2 Motor

vehicle (other than two wheeler)

All sales/purchases No change
3. Time deposit Time deposit exceeding Rs.50,000/- with a banking company i. Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN; 

ii. Adidas Ultra Boost Femme Pas Cher Ropa Interior Calvin Klein Deposits aggregating to more than Rs.5 lakh during the year will also need PAN

4. Deposit with Post Office Savings Bank Exceeding Rs.50,000/- Discontinued
5. Sale or purchase of securities Contract for sale/purchase of a value exceeding Rs.1 lakh No change
6. Opening an account (other than time deposit) with a banking company. All new accounts. i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts); 

ii. T Shirt Versace Homme Pas Cher Ropa Interior Calvin Klein Hombre Co-operative banks also to comply

7. Installation of telephone/ cellphone connections All instances Discontinued
8. Hotel/restaurant bill(s) Exceeding Rs.25,000/- at any one time (by any mode of payment) Cash payment exceeding Rs.50,000/-.
9. Cash purchase of bank drafts/ pay orders/ banker’s cheques Amount aggregating to Rs.50,000/- or more during any one day Exceeding Rs.50,000/- on any one day.
10. Cash deposit with banking company Cash aggregating to Rs.50,000/- or more during any one day Cash deposit exceeding Rs.50,000/- in a day.
11. Foreign travel Cash payment in connection with foreign travel of an amount exceeding Rs.25,000/- at any one time (including fare, payment to travel agent, purchase of forex) Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel agent)
12. Credit card Application to banking company/ any other company/institution for credit card No change. 

Co-operative banks also to comply.

13. Mutual fund units Payment of Rs.50,000/- or more for

purchase

Payment exceeding Rs.50,000/- for purchase.
14. Shares of company Payment of Rs.50,000/- or more to a company for acquiring its shares i. Opening a demat account; 

ii.