Browse Category: compliance

MCA Update – Aadhaar Integration For Availing Various MCA21 Related Services

aadhaar

MCA is actively considering Aadhaar Integration for availing various MCA21 related services. As a preparatory step, all individual stakeholders viz. DIN holders / Directors / Key Managerial Personnel / Professionals of the Institute of Company Secretaries of India/Institute of Chartered Accountants of India/Institute of Cost Accountants of India (whether in employment or in practice) are requested to obtain Aadhaar as early as possible for integrating their details with MCA21 and also ensure that the information in Aadhaar is in harmony with PAN.

 

Note:

When implemented, all MCA21 services shall be available based on Aadhaar based authentication ONLY. The date of Aadhaar integration with MCA21 would be announced shortly.

 

gst tax

Reduced Liability Of Tax On Complex, Building, Flat etc. Under GST

According to complaints from buyers of flats and other buildings-under-construction recently, builders are demanding that they be paid the entire amount of cost of buying the flat before 1st July, 2017.

This is what the builders are claiming: pay now, or else pay higher amount of tax under new GST (Goods and Services Tax) system. They say this because the current service tax that you pay on goods would amount to a maximum of 6.5%, whereas under the GST scheme, you will pay 12% service tax on the cost of construction.

What they do not tell you, and what you may not have noticed before, is that the tax you would pay on your flat or office building before GST rolls out, is calculated even on the inputs (cement, steel, etc.) the builder uses to construct the building. So until the GST rolls out, you will have to pay for the service of construction as well as for the cost of acquiring the raw materials used for construction.

After the GST rolls out however, you will pay only for the service of construction in the form of tax calculated at 12% on the cost of construction (labour). This is because builders are provided with a facility called Input Tax Credit (ITC), wherein they can claim a reduction of taxes on total cost of construction. So if it cost them Rs. 1000/- to get raw materials and another Rs. 500/- for labour, they can get back Rs. 1000/- from the government as it comes under the definition of “Inputs”. So if you make the entire payment for your flat before 1st July 2017, you will pay tax on Rs. 1500/-, but if you pay the total amount after 1st July 2017, you will pay tax on Rs. 500/-

Therefore, you will not bear the cost of input (raw materials) after GST rollout. This means you will pay less after GST for your house/office overall, than you pay now. So any builders out there claiming you can pay less before GST rolls out, are only trying to profit from your lack of knowledge about the effect of cost of inputs, on the price you pay for the flat. Such builders can be deemed to be profiteering under section 171 of GST law. Hence, it is good to be advised on this matter before making a purchase of a new home or office.

 

For more information, visit the following page: http://pib.nic.in/newsite/PrintRelease.aspx?relid=165663


 

Financial tasks that you need to do right away

Here are some financial task that you need to deal with immediately:-

1. LINK YOUR AADHAAR CARD

It is mandatory to link your Aadhaar card to bank account, PAN card and mobile number. Here’s how you can do it:

(A) Bank Account

Step 1. Log on to the Net banking facility of your bank.
Step 2. Click on ‘Update Aadhaar card’ or ‘Aadhaar card seeding’ option.
Step 3. Enter Aadhaar card details and submit.
Step 4. After verification, the linking will be done and you will be informed via SMS or e-mail. You can also link it offline.

 

(B) Pan Card

Step 1. Log on to the government income tax website www.incometaxindiaefiling.gov.in and click the link ‘Link Aadhaar’ on the left under ‘Services’
Step 2. Give PAN and Aadhaar numbers, fill name and submit. After verification from UIDAI, the link will be confirmed.

OR

Step 1. If you are registered on the income tax portal, log on and go to ‘Profile Settings’. Pull it down, click on ‘Link Aadhaar’.
Step 2. Verify details like name, date of birth and gender with those in your Aadhaar card. If the details match, fill in the Aadhaar number and captcha code, and click on ‘Link now’.
Step 3. A pop-up message will inform you when the linking has been done.

 

c) Mobile Number

If you are linking for the first time, download the Aadhaar card correction application from the UIDAI website. Fill the details, attach copies of Aadhaar card and identity proof, and submit these to the enrolment centre. It will be updated in about 10 days. If you are updating a new number, go to the UIDAI site, fill the Aadhaar number and captcha code. On getting an OTP, update your number and it will be linked.

2. PREPARE TO FILE YOUR TAXES

To ready yourself for the online filing process, get the information and documents you will need at the time.

Step 1.Secure Form 16 from your employer.
Step 2. Check your TDS status so that you know if there is any tax due. Do so by logging on (if you are registered) to the income tax website (www.incometaxindiaefiling.gov.in). Under ‘My account’ click on ‘View Form 26AS’.
Step 3. Make sure you have other information and papers like interest income, charity contribution and details for exemptions (HRA, health insurance premium, etc.) that have not been take into account by your employer.
Step 4. Go through the latest tax slabs and exemption limits before starting with the calculations.

3. FATCA COMPLIANCE

 

The Foreign Account Tax Compliance Act enables exchange of information between India and the US.
Under a 2015 agreement, all individuals and entities who opened a bank account or invested in mutual funds, NPS and insurance schemes between 1 July 2015 and 31 August 2015, will have to get compliance by providing self-certification. Though the last date was 30 April, you can still do it to avoid your account being blocked.

Is Your Adhaar Card Ready?

aadhar-card

The Central boards of Direct Taxes vide its Press Release dated 05.04.2017 have made it mandatory to quote your Aadhaar card for PAN Applications & Filing Return of Income.

Section 139AA of the Income-tax Act, 1961 as introduced by the Finance Act, 2017 provides for mandatory quoting of Aadhaar / Enrolment ID of Aadhaar application form, for filing of return of income and for making an application for allotment of Permanent Account Number with effect from 1st July, 2017.

It is clarified that such mandatory quoting of Aadhaar or Enrolment ID shall apply only to a person who is eligible to obtain Aadhaar number. As per the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only a resident individual is entitled to obtain Aadhaar. Resident as per the said Act means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment.

Accordingly, the requirement to quote Aadhaar as per section 139AA of the Income-tax Act shall not apply to an individual who is not a resident as per the Aadhaar Act, 2016.

 

Why link Aadhaar and PAN?

  • The government can keep a tab on the taxable transactions of a particular individual or entity, whose identity and address will be verified by his Aadhaar Card.
  • By linking the two, entities will no longer have to submit their Income Tax acknowledgement to the I-T department.

 

How to Link Aadhaar and PAN?

  • The first step towards linking Aadhaar with PAN to register on Income tax e-filing portal.
  • On logging in to the site, a pop up window will appear prompting you to link your PAN card with Aadhaar card.
  • You can input your Aadhaar number enter ‘captcha’ code and click on ‘link now’.
  • In case you have decided to link Aadhaar with PAN later click on ‘later’ button.
  • On logging, if no pop up window appear, go to Profile setting and click on ‘link Aadhaar’.
  • Enter your Aadhaar number enter captcha code and click on ‘link Aadhaar’.
  • The system will match your name, date of birth and gender with PAN card and Aadhaar database, if detail matches, you will get the message “Aadhaar – PAN linking is completed successfully.”

 

Your name in Aadhaar and PAN doesn’t match ? Don’t worry !!

In case you are unable to link PAN with Aadhaar because of discrepancy in name, log in to the Aadhaar website (http://www.uidai.gov.in), request for a name change and upload a scanned copy of PAN card as supported proof. In this case, your registered mobile number has to be functional .

The tax department is also planning to introduce an option on the e-filing portal through which taxpayers can choose to link the Aadhaar without changing the name by opting for a One-Time Password (OTP), provided that the year of birth of the person matches in both documents.

 

www.unicomply.com , Contact No.: 080-40463170

 

 

No More Faking Of Rent Receipts To Claim HRA

rent

If you have been producing fake rent receipts to reduce the tax burden and escape up to 60% of HRA amount, there is a bad news for you. You may no longer be able to claim income tax deductions for house rent allowance (HRA) by fabricating fake bills.

The taxman may now insist on proof from you showing that you are a genuine tenant, staying in the property mentioned in the rent receipt.

According to a report in Economic Times, Dilip Lakhani, senior tax advisor, Deloitte Haskins & Sells LLP said, “The ITAT (Income Tax Appellate Tribunal) ruling has now laid down the criteria for the assessing officer to consider the claim of a salaried employee and if necessary question its justification. This will put the onus on the salaried class to follow the rules in availing the tax rebate.”

The assessing officer can now demand proof, such as leave and licence agreement, letter to the housing co-operative society informing about the tenancy, electricity bill or water bill if he suspects the rent receipts are fake, according to a recent tribunal ruling. Till now, to avail of the benefit, the PAN of the owner of the residence was needed in case the rent is above Rs 1 lakh per annum. But now the official can ask for proof even if it is below Rs 1 lakh and the burden of proof will be on the employee who submits the rent receipt. The ruling by the Mumbai tax tribunal is likely to set a precedent and the salaried class is likely to come under the scanner on this count, the report said.

www.unicomply.com Contact No.: 080-40463170

 

 

Corporate Benefit after Budget

 

Impact of Budget-2017 on Companies & LLP/Partnership Firms

  • Budget 2017 has given companies an advantage over partnership and Limited
    Liability Partnership in terms of Income Tax
  • The maximum marginal tax rates including surcharge will be lesser in
    Companies in comparison to LLP/Partnership Firm after Budget-2017.
  • As per the new budget 2017, the corporate tax on companies has been reduced
    from 30% to 25% though the tax on LLP/Partnership remains same i.e. 30%.

Applicable Tax Rate on Companies & LLP/Partnership Firms

Advantages Of Companies Apart From Taxation Point Of View

Restriction on payment of Salary and Interest to Partner when compared to
Company

  • Limit Partners to draw salary, remuneration and interest from partnership/LLP whereas there are no Limit on payment of
    Salary/Remuneration to Directors.
  • The formula is given in Income Tax under Section 40(b) which defines maximum amount which can be given to partners and
    claimed as expenses for partnership firm and LLP.
  • Following are the Limits:-

Dividend Distribution Tax

Dividend distribution tax is the tax levied by the Indian Government on
companies according to the dividend paid to a company’s investors. At
present the dividend distribution tax is 15%. However many closely
held companies instead of declaring dividend they pay Salary and
remuneration to directors to avoid paying DDT.

Formation and Other cost

The cost for formation of Company is bit higher than compared to partnership and
LLP. However it is one time cost and can be adjusted against the tax benefit it
receives over LLP and partnership.

Other Benefits

  • ✓ Company has Limited Liability when compared to partnership Firm
  • ✓ Better Corporate Governance
  • ✓ Easy Succession Planning and expansion
  • ✓ Separate Legal Entity as compared to Partnership Firm

Conversion OF LLP into Private Limited Company

Before filing application for conversion, please ensure the followings:

  • That secured creditors have given their consent for such conversion;
  • A notice in newspaper about such conversion, one in English and in vernacular language seeking objections must be
    published;
  • There are minimum seven or more members in the existing LLP for converting the LLP into a Company.
  • A general meeting must be held where majority of partners have given their consent for such conversion.

Procedure to be followed for Conversion:

  • Apply for DIN in DIR-3- In case members ought to be directors;
  • Apply for Name approval in form INC-1-The name once approved by the authority is valid for 60 days;
  • File eform URC-1- for conversion;
  • File eForm INC 7- For declaration of compliance;
  • File eForm INC 22- For registered office address; and
  • File eform DIR 12- For appointment of Directors

CHARGES

Meaning of Charges

As per Section 2 (16) of the Companies Act, 2013 , charges means an interest or lien created on the property or assets of the company or any of its undertakings or both as security and includes a mortgage.

Essential Features of Charges

There should be 2 parties:- creator of charge and chargeholder. There should be a subject matter of charge, which may be current or future assets. The intention of borrower, in respect of repayment of borrowed money plus interest at agreed rate, should be displayed by an agreement entered by him.

Registration of Charges

All types of charges are required to be registered whether:

  • Created within or outside India.
  • Created on property or assets or any of the company’s undertaking.Creation is tangible or otherwise, situated in or outside India.

 

**If the company fails to register the charges within 300 days of creation or modification or within 30 days of satisfaction, then it may seek extension from Central Government to condone the delay.

Satisfaction of charges

The company shall give intimation to the Registrar within 30 days of payment or satisfaction of charges.

** The Registrar shall issue a notice to the charge-holder within 14 days, if the satisfaction form (i.e. Form CHG-4) is not signed by the holder or if it is not satisfied with intimation made by the company. If no response comes from the holder then the Registrar shall record the same and inform the company.

Consequences of Non-Registration Of Charges

Following are the consequences of non-registration:-

  • Charge becomes void.
  • Charge holder becomes unsecured.
  • Debt is still recoverable.
  • Company is penalized for the same.

Penalty for Non-Registration Of Charges

Applicable to Fines and penalties
Company Rs 1,00,000 to Rs 10,00,000
Officer in default

Imprisonment- Upto 6 months

Or

Fine- Rs. 25,000 to Rs. 1,00,000

Or

Both

 

Particular of charges

The following particulars in respect of each charge are required to be filed with the Registrar:

(a) date and description of instrument creating charge;

(b) total amount secured by the charge;

(c) date of the resolution authorizing the creation of the charge; (in case of issue of secured debentures

only);

(d) general description of the property charged;

(e) a copy of the deed/instrument containing the charge duly certified

or

if there is no such deed, any other document evidencing the creation of the charge to be enclosed;

(f) list of the terms and conditions of the loan; and

(g) name and address of the charge holder.

List Of E-Filing Under Charge

Sl. No. E-Form                      Purpose
1 CHG-1 Creating or modifying the charge (for other than Debentures)
2 CHG-2 Certificate of registration
3 CHG-3 Certificate of modification of charge
4 CHG-4 Intimation of the satisfaction to the Registrar
5 CHG-5 Memorandum of satisfaction of charge
6 CHG-6 Notice of appointment or cessation of receiver or manager
7 CHG-7 Register of charges
8 CHG-8 Application for condonation of delay shall be filed with the Central Government
9 CHG-9 Creating or modifying the charge in (for debentures including rectification)
10 CHG-10 Application for delay to the registrar

DIFFERENCE BETWEEN PRIVATE LIMITED COMPANY V/S ONE-PERSON COMPANY (OPC) V/S LIMITED LIABILITY PARTNERSHIP (LLP)

What kind of business you should Start off with?????

There are several platforms which are available, to Choose one’s plan of owning a business and deriving maximum benefits out of it. However, one need to make a proper analysis of the risks and returns of which they are anticipating of such occurrence before venturing into a new project or certainly the outcome from it.

Here’s the quick analysis of the 3 different forms of organization.

There are various criteria which distinguishes Private ltd company, OPC & LLP.

 

Aspects Private Ltd Company One-person Company(OPC) Limited Liability partnership(LLP)
Governed by Companies Act 2013 Companies Act 2013 Limited Liability partnership Act 2008
Minimum No of Members Min.2 members (Can be body corporate also) 1 member who is resident of India, and 1 nominee should be present. LLP should have a minimum of 2 members. There is no limit on maximum number of members.
Minimum No of Directors Min.2 Directors out of which 1 Director has to be present in India. 1 Director who has to be a resident of India. 2 Designated partners out of which 1 director has to be present in India.
Name shall include Name of the Private Company to end with “Private Limited”. “One-person Company” shall be mentioned in brackets below the name of such company. Name to end with LLP (Limited Liability partnership)
Minimum Capital No minimum requirement No minimum requirement No minimum requirement
Taxation Taxed at 30% + Surcharge + Cess. Taxed at 30% + Surcharge + Cess. Taxed at 30% + Surcharge + Cess.
Annual filings Annual accounts and annual returns to be filed with ROC. Financial Statements and Annual return to be filed with ROC. Annual statement of Accounts and Solvency & Annual Return has to be filed with ROC.
Statutory Audit Compulsory Compulsory If Contribution is >than 25 lakhs, or turnover is

>40 lakhs.

Minimum Number of Meeting (Including Board & AGM)
  • Atleast 4 Board Meetings, 1 in each quarter & the gap between 2 meetings should not be more than 120 days.
  • AGM to be held within 6 months from closure of Accounts (usually in the month of September of every year)
  • Atleast 1 Board Meetings, 1 in each half year & the gap between 2  meetings should not be less than 90 days.
  • No requirement of AGM.
  • No specified Limits.
Suitability More suitable for businesses, trade, manufactures, large industrial establishments etc. Suitable for Individuals whose Capital requirements are less than 50 lakhs or Turnover is less than 2 Cr. More suitable for professionals like CA, CS, Advocates etc.
Conversion Can be converted into LLP. Can be converted only after the expiry of 2 years from the date of incorporation. Can be converted into Company/Firm.
Time taken for Registration 5-7 days 7-10 days 10-15 days
Procedure for Incorporation
  • Obtain Director Identification Number(DIN).
  • Obtain Digital Signature Certificate(DSC)
  • Name Approval
  • Filing of Various Documents & forms required for Incorporation
  • Obtain Director Identification Number(DIN).
  •   Obtain Digital Signature Certificate(DSC)
  •   Name Approval
  •   Filing of Various Documents & forms required for Incorporation
  •   Filing Nominee Details.
  • Obtain Director Identification Number(DIN).
  •   Obtain Digital Signature Certificate(DSC)
  •   Name Approval
  •   Filing of Various Documents & forms required for Incorporation
  • File LLP Agreement.
Liability Limited Liability Limited Liability Limited Liability

Conclusion:

  • One-person Company is a new concept that has been introduced in India. Still there are lot of Changes having to be undergone and lot more review for the improvement of OPC Company is required.
  • In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. This is an important difference from the traditional unlimited partnership under the partnership Act, in which each partner has joint and several
  • Private Limited Company the business owners hold all shares of the company privately. Shareholders may operate the business themselves, or hire directors to manage the Company on their
  • Forming a private limited Company results in protection of personal assets, access to more resources, financial assistance and greater
Deposit

Demonetisation Update: Things you need to know about depositing old notes in banks

Last date

  • Last date to deposit old notes is Dec 30

 

Restrictionsa

  • Old notes above value of Rs.5000 can be deposited only once before Dec 30.

 

 

Magnify

  • Deposit of old notes above value of Rs.5000 will be subject to audit and taken on record. A satisfactory explanation will be required during such deposit.

 

scrutiny

  • Deposits made in small amounts above value of Rs.5000 via old notes will be subject to scrutiny

 

Regulations

  • Only KYC compliant bank accounts will be credited with full value of deposits made above Rs.5000. Non complaint accounts will be restricted to credits limiting upto Rs.50,000

 

Exempt

  • The regulations are exempt for deposits under Taxation and Investment Regime for the Pradhan Mantri Kalyan Yojana, 2016

ADVANCE TAX AND SELF-ASSESSMENT TAX

For Individuals, there are two types of tax that you might have to pay before submission of your return as on 31st July 2017:

  1. Advance Tax

If you have annual tax dues of more than Rs.10, 000, you must pay income tax in advance. Usually, for the salaried, these income tax payments are taken care of via TDS deductions by employer.

Due Dates of payment of Advance Tax for FY 2016-17

For Individuals

On or before 15th June – Up to 15% tax

On or before 15th September – Up to 45% of tax

On or before 15th December- Up to 75% of tax

On or before 15th March- Up to 100% of tax

How to calculate and pay advance tax:

  • Estimate your Total Income: Add income from all sources. Include salary income, interest income, capital gains etc.

  • Allow deductions: From your total income reduce deductions and arrive at your taxable income.

  • Calculate Tax due on total income: Apply the latest income tax slab rates on your taxable income to calculate your income tax due. Reduce any TDS that may have been deducted from your total tax due. These have to be paid as per the installments mentioned above.

  1. Self Assessment Tax

Your income tax return cannot be submitted to the tax department, unless you have paid tax dues in full. Sometimes, you may see tax payable at the time of filing your return (in spite of paying advance tax).

You can only file the returns once you have successfully paid the income tax online.

Usually, interest under section 234B and 234C will also have to be paid along with your tax due, if you are paying tax after 31st March.

For online payment of both advance tax and self assessment tax

Step 1: Login to http://www.tin-nsdl.com > Services > e-payment: Pay Taxes Online.

Step 2: Select the relevant Challan (CHALLAN NO./ITNS 280)

Figure: Challan for payment of Advance Tax and Self Assessment Tax

Step 3: Select your bank and pay the amount through net banking.

Step 4: A challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made. Please store the Counterfoil.

In case you need some expert help to calculate the tax payable and the amount of advance tax to be paid, contact us: info@unicomply.com or call: 9739002844.

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