Compliances Under Gst

A Tax invoice is an invoice issued by a registered dealer to the purchaser, showing the amount of tax payable. The invoice should be created in triplicate – Original for recipient, Duplicate for Transporter and Triplicate for supplier.

A return is a document that a taxpayer is required to file as per the law with the tax administrative authorities. Under the GST law, a normal taxpayer will be required to furnish three returns monthly and one annual return. Similarly there are separate returns for a taxpayer registered under the composition scheme, taxpayer registered as an input service Distributor, a person liable to deduct or collect the tax (TDS/TCS)

TYPES OF RETURNS
GSTR-1 (Registered taxable supplier)
- Details of outward supplies of taxable goods and/or services effected.
- 10th of the next month

GSTR-2 (Registered taxable recipient)
- Details of inward supplies of taxable goods and/or services effected claiming input tax credit.
- 15th of the next month

GSTR-3 (Registered taxable person)
- Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax.
- 20th of the next month

GSTR-4 (Composition supplier)
-Quarterly return for compounding taxable person
-18th of the month succeeding quarter

GSTR-5 (Non-Resident Taxable Person)
- Return for non-resident foreign taxable person
- 20th of the next month

GSTR-6 (Input Service Distributor)
- Return for input service Distributor
- 13th of the next month

GSTR-7 (Tax Deductor)
- Return for authorities deducting tax at source.
- 10th of the next month

GSTR-8 (E-Commerce operator/Tax collector)
- Details of supplies effected through e-commerce operator and the amount of tax collected
- 10th of the next month

GSTR-9 (Registered Taxable Person)
- Annual Return
- 31st December of next financial year

GSTR-10 (Taxable person whose registration has been surrendered or cancelled)
- Final Return
- within three month of the date of cancellation or date of cancellation order, whichever is later.

GSTR-11 (Person having UIN and claiming refund)

- Details of inward supplies to be furnished by a person having UIN
- 28th of the month following the month for which statement is filed.

This article is about GST Registration for more information please visit our website:eFiling Portal

One Person Company (Opc) Incorporation

One person company is a new form of business introduced by the companies Act, 2013. It gives a single promoter full control over the company while limiting his liability to contribution to the business. This person will be the only director and shareholder (100% Shareholder).
OPC INCORPORATION ELIGIBILITY

• A person who is Indian citizen and resident in India can incorporate OPC (resided in India not lesser than 182 days)
• Other legal entities cannot incorporate an OPC.
• A nominee should be appointed by the promoter during incorporation
• Business involved in financial activities cannot be incorporated as OPC.
• It must be converted if the paid up share capital is in excess of 5 Lacs and turnover is in excess of 2 Crores.

HOW TO INCORPORATE OPC?
Documents Required for Incorporating OPC
It requires

1. Passport size photos of the applicant
2. PAN Card of the applicant and nominee
3. Identity proof of Applicant (Voter ID/ Passport/ Driving License/ Adhaar)
4. Adhaar Card Copy of the Nominee.
5. Address proof of the Applicant & Nominee (Bank Statement/ Mobile Bill)
6. ONE PERSON COMPANY (OPC) INCORPORATION

Obtaining Digital signature (DSC)
It is obtained for the sole promoter for processing the incorporation.
DSC for Nominee need not be obtained.
Obtaining Director Identification Number (DIN)
Once Digital signature is obtained, DIN must be obtained for the promoter/Applicant.
Name Availability

• After DIN is obtained, the name approval should be submitted to the MCA.
• The name should be unique and description should be related to the business.
• The State in which Registered Office is situated should be mentioned carefully. Once the Approval is obtained you cannot change.
• There are six name options to submit and the name will be approved within one or two days.

Incorporation

• After obtaining name approval, other documents like affidavits and declaration of the sole promoter must be submitted.
• Form INC3 must be attached for the nominee.
• Approval is granted by the Registrar of companies within 2 to 3 days. If there is any issue the incorporation application can be asked for resubmission.

 For More Information Please visit our website: eFiling Portal

Procedure For Striking Off Limited Liability Partnership (LLP)

E-form 24 is required to be filed for striking off the name of the LLP under clause (b) of sub rule 1 of Rule 37 of LLP Rules 2008. Winding up of an LLP may be voluntarily or compulsorily.
Voluntary Winding up

• The partners may decide to stop and wound up the operations of the LLP voluntarily.

Compulsory winding up

• The Limited Liability Partnership may be wound up by the order of a Tribunal or court.
• If the company is unable to pay its debts.
• If there is no business activity for the continuous period of 1 year or more.
• If the company has acted against the interest of the sovereignty and integrity of India, the security of the state.
• If the company has made a default in filing of statement of Account and solvency or annual return with the Registrar for any five consecutive financial years.

Section 63, 64 and 65 of LLP Act 2008 governs the process for Winding up of LLP.
DOCUMENTS REQUIRED TO WIND UP LLP

• Board Resolution
• Affidavits from the Designated Partners
• Consent of the creditors
• Report regarding the current valuation of the assets of the LLP, by a recognized valuer.
• Statement of Accounts
• Statement of Assets, liabilities, Debts, etc.
• Indemnity Bond from the Designated Partners
• Authorization to make an Application
• Application of Closure
• Consent of the Designated Partners to strike off the LLP

PROCEDURE TO WIND UP LLP

• An application to the ROC in eform 24 along with consent of all partners for striking off the name of the LLP.
• The LLP must pass a resolution in favor of at least ¾th of its total number of partners.
• The majority of the designated partners shall make a declaration in the form of affidavit that LLP does not have any dues towards Income Tax, Sales Tax etc. and there is no litigation pending against the LLP and the information furnished is true to the best of my knowledge and belief.
• Then the registrar will send a notice to the LLP
• The Registrar shall publish a notice on its website for a period of one month for the general public.
• If no reply is received within the prescribed period, registrar may strike off the name of LLP as it deem fit.

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Inclusion Of Anti Profiteering Clause In Gst Regime

Anti-profiteering means to stop a person from earning unreasonable profit through sale of goods and services It mandates a manufacturer and others in the supply of chain to pass on the benefits arising out to input credit and lower taxes to consumers at the pain of penalty. The main intention is to protect consumers from inflation after GST implementation.
MAIN REASONS FOR ANTI-PROFITEERING CLAUSE
There are three main reasons which make this clause necessary is

• To set up honest pricing policy, this will help to retain consumers in the GST regime.
• To examine whether input tax credits or lower tax rates actually result in a commensurate reduction in price.
• To observe the inflationary trends during the initial stages of GST introduction and to analyze and control its long-term effects.

FEATURES OF ANTI-PROFITEERING CLAUSE

• A state wise single registration for a taxpayer for filing returns, paying taxes and to fulfill other compliance requirements.
  (Most of the compliance requirements would be fulfilled through online)
• A taxpayer has to file one single return state wise to report all his supplies, whether made within or outside the state or exported out of the country and pay the applicable taxes on them. (CGST, SGST, IGST etc.)
• A business entity with an annual turnover of up to Rs 20 lakh would not be required to take registration in the GST regime, unless it voluntarily chooses to do so to be a part of the input tax credit (ITC) chain.
• In order to prevent cascading of taxes, ITC would be admissible on all goods and services used in the course of business except on a few items listed in the law.
• In order to ensure that ITC can be used seamlessly for payment of taxes under the Central and the State law, it has been provided that the ITC entitlement arising out of taxes paid under the central law can be cross utilized for payment of taxes under the laws of the states or union territories.
• Detailed transitional provisions have been provided to ensure migration of existing taxpayers and seamless transfer of unutilized ITC in the GST regime.
• In order to mitigate any financial hardship being suffered by a taxpayer, commissioner has been empowered to allow payment of taxes in installments.
• To provide certainty in tax matters, a provision has been made for an Advance Ruling Authority.

This Blog is About GST Registration for more information please visit our website: efilingportal

Government Loan Schemes For Small Scale Businesses

THE CREDIT GUARANTEE FUND SCHEME FOR MICRO AND SMALL ENTERPRISES

• It is launched by the Government of India to provide collateral free finance to the micro and small enterprise sector.
• The Amount is contributed by Government and SIDBI is 4:1 in ratio.
• It also provides credit facilities in the form of term loans and working capital facility of up to Rs.100lakh per borrowing unit.
• Rehabilitation assistance is also made available to sick units.

CREDIT LINK CAPITAL SUBSIDY SCHEME FOR TECHNOLOGY UPGRADATION

• Its main intention is to create an impact in the international trade.
• It is launched to facilitate technology up gradations by extending an upfront capital subsidy of 15% (max INR 15lakhs).
• The corresponding plant and machinery is important
• It is available to machinery to Sole Proprietorship, Partnership firms, Cooperative, Private and Public Limited Companies.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

• SIDBI is one of the most illustrious names among the government financial institutions.
• It played an active role in the promotion and development of the small business industry.

Schemes provided by SIDBI

• Direct Assistance Scheme
• Indirect Assistance Scheme
• Promotional and Development Activities
• National Equity Fund, scheme
• Technology Development and Modernization Fund scheme
• Single window scheme
• Mahila Udyami Nidhi (MUN)
• Scheme and Equipment Finance Scheme

NATIONAL SMALL INDUSTRIES CORPORATION LIMITED (NSIC)

• The main feature is to import machines on hire-purchase terms.
• It promotes awareness about advancements in the small scale industries sector of the country.
• It highlight on supply and distribution of both indigenous and imported raw materials as well as exporting the products of the small business units.

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

• NABARD mainly came into existence to promote agriculture based rural business enterprises.
• It mostly offers financial assistance to small scale industries viz,. Cottage and village industry.

MARKET DEVELOPMENT ASSISTANCE SCHEME FOR MSMEs

• It offers funding for participation in international trade fairs and exhibitions under MSME India stall.
• It also offers financing for sector specific market studies by industry association, export promotion councils and FIEO.
• This scheme offers reimbursement of 75% of a one-time registration fee and 75% of annual fees paid to GSI by SMEs for the first 3 years for the bar code.

TECHNOLOGY AND QUALITY UPGRADATION SUPPORT TO MSMEs

• It aims to improve the production quality of MSMEs to encourage them to adopt global manufacturing standards.
• The main aim of this scheme is to sensitize the manufacturing MSME sector to make use of energy sufficient technologies
• And also the manufacturing processes to reduce manufacturing cost and emissions of harmful gasses that can hamper the environment
• The Indian government provides financial support to the extent of 75% of the actual expenditure to assist manufacturing sector purchase energy efficient technologies for production.

MINI TOOLS ROOM AND TRAINING CENTRE SCHEME

• The mission of this scheme is to develop more tool room facilities to provide technological support to the MSMEs
• The training in tool manufacturing and tool design to create a skilled workforce of workers, supervisors, engineers/designers.
• 90% of the cost of machinery/equipment in case a new Mini tool room is to be created.
• In case an existing room to be upgraded – 75% of the cost is funded.

MUDRA LOAN (Micro Units Development and Refinance Agency Ltd.)

• The vision of Funding the Unfunded.
• It is established by Government of India for development and refinancing activities relating to micro units.
• It provides low cost funding for MFI (Micro Finance Institutes)
• It also supporting to the institutions , societies, trusts section 8 companies, co-operative societies, small Banks, Scheduled commercial Banks and Rural Banks which are in the business of lending to micro or small business etc.

For More Information Please visit our website: efilingportal

Business Registrations For Foreign Companies And Foreign Nationals

• Indian Private Limited Company must have Minimum two share holders and two Directors
• One of the directors must be an Indian Resident i.e. (Must be stayed in India for 182 days or more in the preceding year.)
• There is no requirement for the Indian Citizen to be a shareholder in the company. (100% FDI is allowed in automatic mode)

BASIC DOCUMENTS AND INFORMATIONS REQUIRED FOR COMPANY INCORPORATION
CASE 1 : Foreign national is residing in native country
If native country is a signatory of Hague convention
Attested & Apostatized Original Copy of

• Address Proof Copy
• Passport copy
• Authorization letter, Attesting Officer Proof
• Authorized Signatory Proof (In case of Foreign Company)

If native country is not a signatory of Hague convention
Attested Original Copy of

• Address Proof Copy
• Passport Copy
• Authorized Signatory Proof (In case of Foreign Company)

CASE 2 : Foreign national residing in India
Certified documents by Individual Embassy

• Resident Permit certificate issued by Assistant Foreigner Regional Registration Officer an officer of Bureau of Immigration India.
• Passport Copy
• Address Proof in INDIA
• Business Visa (Compulsory)

STEPS FOR THE INCORPORATION OF THE COMPANY
STEP 1 : Digital Signature For Foreign Nationals & Indian Nationals
DSC must be obtained for all the Subscribers of the company for their DIN issuance as well as for signing INC- 33 & INC-34.

STEP 2 : Obtaining Director Identification Number and Name Approval
Once DSC is issued, DIN needs to be applied for all the Directors and it is required for every individual intending to become a Director of a company in India.
After the issuance of DIN Number we can now apply for the company Name for its Approval from the Ministry of Corporate Affairs OR we can directly apply for the incorporation of the Company with direct method.

STEP 3 : Receiving the documents from the Foreign Nationals which are Subscribers
Once the Name gets approved we need some specific documents for the Foreign Nationals which need to be uploaded for the Final Incorporation.
CASE 1 : Foreign national is residing in native country

• DIR- 2 (In case he is also a Director)
• INC -9
• Declaration for not obtaining the PAN (If Applicable)
• MOA & AOA Subscribers Sheet

If the native country is a party to the Hague Apostille Convention then we need all above mentioned documents Notarized and Apostatized (BOTH)
If the native country is a Commonwealth Nation then we need all above mentioned documents Notarized Only.

If the native country is neither a Commonwealth Nation nor a party to the Hague Convention then we need all above mentioned documents Notarized and need to get attested by a Diplomatic or Consular Officer.
CASE 2 : Foreign national residing in India

We need certified documents by Individual Embassy

• DIR- 2 (In case he is also a Director)
• INC -9
• Declaration for not obtaining the PAN (If Applicable)
• Address Proof in INDIA
• Business Visa (Compulsory) (Only not applicable if the Foreigner is having a POI or OCI)

Rest other Documents of the India Subscribers and Registered Office will be as usual as per the Normal case.
In case a foreign company is a subscriber to the MOA & AOA of the proposed Indian Company:
The Foreign entity subscribing to the shares of the Indian company the following documents must be submitted.

• Board Resolution of The Foreign Entity authorizing Investment in shares of the Indian company.
• Copy of the Certificate of Incorporation of the Foreign entity
• Copy of address proof for the foreign company.

After accepting the documents with application, the Registrar would issue a Certificate of Incorporation PAN & TAN for the Indian Private Limited company.
Once the incorporation certificate is obtained, the Indian company can apply for a bank account for the company in India.

This article is about Business Registration For more information Please visit our website:efilingportal.in

Tax Benefit On Home Loan

A very important criterion to be kept in mind while taking a home loan is the Tax benefit on home loan. To explain the tax benefit on home loan, we would be dividing the repayment of home loan into 2 components.

Repayment of the Principal Amount

Repayment of the interest on Home loan
SECTION 80C -Under section 80c of the income tax act, one can avail tax benefits on principal amount of the home loan. Maximum deduction allowed is Rs.1,50,000. The tax deduction is on the payment basis irrespective of the year for which the payment has been made. The amount paid towards stamp duty charges and registration fees is allowed for deduction under section 80C. Tax benefit for repayment of principal loan amount is allowed after the construction of the house is complete.

SECTION 24 - Tax is available on the interest that is paid towards the home loan under section 24. The tax is deducted on an accrual basis. Maximum tax deduction allowed under section 24 is Rs.2lakh. This can be claimed on yearly basis even if no payments have been made during that year. If  the house is not constructed within 3 years from the end of the financial year that loan was taken  and allowed to claim only Rs.30000 as deduction.

If loan is taken to repair, reconstruct or renew your house, then you won't get any tax deductions on the interest paid. If the interest for the loan taken to purchase or construct the house has been paid before the house has been completed, then the aggregate of the amount is allowed for deduction in 5 equal instalments for 5 successive financial years.

Section 80EE tax benefit on interest paid on home loan for first time buyers. This deduction would be allowed only if the value of the property purchased is less than Rs.50lakhs and the value of loan taken is less than Rs.35lakhs. The loan should be sanctioned between 1st April 2016 and 31st March 2017. The benefit of this deduction would be available till the time the repayment of the loan continues. This deduction would be available till the time the repayment of loan continues. This deduction would be available from Financial year 2016 - 2017 onwards.

TO CLAIM TAX BENEFITS

The tax benefits have to be claimed at the time of filing your return if you have not informed. Deduction under section 80C. Here the taxpayer has to enter the contribution he has made towards PPF, EPF, LIC Premiums paid and the principal repayment made towards the home loan. Please note that if you are selling the property before 5 years from the date of getting possession, then the deductions claimed under section 80 C for principal repayment will be added back to your income.

Deduction under section 24, this deduction is for those who are buying a house for the very first time.

Deduction for interest earned on SB account under section 80TTA.
Deduction under section 80G that includes donations made to charitable organizations.
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