GST is the biggest and the latest tax reform in Modern India. Besides improving the ease of doing business, it also increases the taxpayer base in India by bringing in millions of small businesses in India under it.
Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised.
Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.
While businesses in special category states with an annual turnover of Rs.10 lakhs and above would be required to register under GST, entities in the rest of India would be required to register for GST if annual turnover exceeds Rs.20 lakhs.
Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST.
IEC registration is required by a person for exporting or importing goods. It is a 10 digit code which is issued by the Directorate General of Foreign Trade (DGFT).
All businesses engaged in Import and Export of goods require to register for the Import Export Code. The code has lifetime validity. Importers are not allowed to proceed without this code and exporters can’t take benefit of exports from DGFT, customs, Export Promotion Council, if they don’t have this code.
The IE Code is a must while clearing customs, while sending money abroad, while sending shipments and while receiving money from abroad.
The Shops and Establishments Act is one of the most important regulations within which majority of Indian businesses fall under the purview of.
With Conscientia, you can be rest assure that from the registration of your entity to maintaining various records and registers; you will be procuring global servicing standards with best-in-class support during inspections and audits.
MSME stands for Micro, Small and Medium Enterprise. MSME or SSI enterprises are the foundation of any economy and are an engine of economic growth, advancing impartial improvement for all. MSME registration or SSI registration helps businesses to avail multiple government subsidies and benefits.
Micro, Small and Medium sized enterprises in both the manufacturing and service sector can obtain MSME Registration or SSI (Small Scale Industry) Registration under the MSMED act.
Although getting MSME online registration is not mandatory but it is always suggested to small and medium enterprises to get it done it provides a variety of benefits. Benefits such as rate of interest charged would be very less, tax subsidies, capital investment subsidies and much other support from the government sector.
Employee State Insurance Corporation or ESIC is a self-financing social security and health insurance scheme which provides medical benefit, sickness benefit, maternity benefit, disablement benefit and various other benefits such as funeral expenses, free supply of physical aids etc. to the employees and their family.
Units or Establishments that have 10 or more employees, drawing the wages of up to Rs.20,000 a month are required to be registered for ESIC under the ESI Act 1948.
All Establishments and Factories employing more than 10 employees are required to mandatorily apply for ESI registration within 15 days of the ESI Act, 1948 becoming applicable to them.
Employees' Provident Fund & Miscellaneous Provisions Act, 1952 is social security legislation for the future benefit of employees & their dependents; in case of unfortunate incidents occurring in the future. It is mandatory for every establishment where 20 or more person is employed.
EPF Registration has to be done within One month from the date of reaching 20 employees. Any delay in EPF Registration may result in a penalty.
Those establishments which do not have the prescribed number of employees but willing to register themselves to provide the benefits of Provident Fund to their employees can register voluntarily with the Regional Provident Fund Office. i.e. covered voluntarily registration.
Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and has to be compulsorily paid by every member of staff employed in private companies. The owner of a business is responsible to deduct professional tax from the salaries of his employees and pay the amount so collected to the appropriate government department.
Professional tax is usually a slab-amount based on the gross income of the professional. It is deducted from his income every month.
In case of salaried employees and wage earners, Employer is liable to deduct professional tax with the State Government. In case of other class of Individuals, this tax is liable to be paid by the person himself.
Failure to obtain professional tax registration or remit professional tax could result in fines and penalties that accrue over time.
Permanent Account Number (PAN) is a unique 10-digit alphanumeric identity allotted by the Income Tax Department.
PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and many more.
The primary objective of PAN is to use a unique identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.
TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government.
Tax deducted at source (TDS) ensures that the Government's collection of tax is proponed and the responsibility for paying tax is diversified. The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government - quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source.
Contracts, which are made by promoters, with parties to acquire some property on right for and on behalf of a company that is yet to be formed are termed as ''pre-incorporation'' or ''preliminary'' contracts.
Section 15 of the Specific Relief Act, 1963 provides that where the promoters of a company have, before its incorporation, entered into contracts for the purposes of the company and such contracts are warranted by terms of incorporation, the contract may be specifically enforced by or against the company, if the company has accepted the contract and communicated such acceptance to the other party to the contract. The phrase "warranted by the terms of incorporation" means within the scope of the company's objects as stated in the Memorandum of Association. The contract should be for the purposes of company operations. Section 19 of the Specific Relief Act further provides that the other party can also enforce the contract if the company has adopted it after incorporation and the contract is within the terms of incorporation.
Any person eligible to acquire DIN and is above 18 years of age can be a director.
Any person who is eligible to be a Director can apply for DIN.
MCA hosts a website www.mca.gov.in which has a user friendly procedure of filing the form for applying of DIN.
The term “Directors” may be defined as individuals who, collectively as a team, known as the Board of Directors of the Company, direct, control and manage the business and affairs of the Company. Section 2(13) of the Companies Act, 1956, defines a Director as any person, occupying the position of Director, by whatever name called. They are professional men, hired by the company to direct its affairs. But, they are not the servants of the company. They are rather the officers of the company. A director is a person appointed to perform the duties and functions of director of a Company in accordance with the provisions of the Companies Act, 1956.
A person can become a member of a company by any of the following methods:
The Board of Directors of the Company to hold its meeting and allot shares to the applicants as per entries in the register of share applications and allotment of shares, which has been prepared by the Registrar to the Issue according to the approved basis of allotment.
Transmission of shares is a process by operation of law; where under the shares registered in a company in the name of a deceased person or an insolvent person are registered in the name of his legal heirs by the company on proof of death or insolvency and on the deceased member’s shares. Transmission of shares takes place when a registered member dies or is adjudicated insolvent or lunatic by a competent Court.
Corporate Governance deals with laws, practices and implicit rules that determine a company's ability to take informed managerial decisions, vis-a-vis its claimants, e.g. its shareholders, creditors, customers, the state and employees. It involves the following:
The meetings of a Company under the Indian Companies Act, 1956 can be classified as under:
The company should have at least 1 Board meeting in each quarter and 4 Board Meeting in year.
In case of a Company, there exists a divorce between the share holders (owners) and the management of a company. The Board of Directors manages the affairs of a company. Mandatory disclosure through annual reports and accounts is a method of providing information to the share holders and the public about the financial position of the Company so as to enable its members to exercise a more intelligent and purposeful control thereon.
Annual Reports and Accounts consist of balance-sheet, profit and loss account (Income and expenditure statement in case of nonprofit making Companies) directors/ governing body’s report, compliance certificate, Auditors’ report etc.
A charge is a right created by any person including a company referred to as “the borrower” on its assets and properties, present and future, in favour of a financial institution or a bank, referred to as “the lender”, which has agreed to extend financial assistance.
The financial institutions/Banks do not lend their monies unless they are sure that their funds are safe and they would be repaid as per agrees repayment schedule along with payment of interest. In order to secure their loans they resort to creating right in the assets and properties of the borrowing companies, which is known as a charge on assets. This is done by executing loan agreements, hypothecations, agreements, mortgage deeds and other similar documents, which the borrowing company is required to execute in favour of the lending institution/bank etc.
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