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  • What Is The Fees For FSSAI Registration

    What Is The Fees For FSSAI Registration

    What Is The Fees For FSSAI Registration

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    Fees for FSSAI Central and State licenses, as well as fees for Indian and Konkan Railways’ FSSAI licenses, are listed here.

    FSSAI Central License Fee Structure

    • The FSSAI Central license costs RS. 7500 each year to renew.

    • A price of Rs.7500 is charged for any alteration to an FSSAI Central license (per modification).

    • A duplicate copy of the FSSAI Central license costs 10% of the Applicable License Fee.

    An FSSAI Central license can be awarded or renewed for a maximum of 5 years.

    FSSAI State License Fee Structure 

    • The cost of a new FSSAI State license varies from Rs. 2000 to Rs. 5000 each year, depending on the type of food business. 
    • The number of years chosen determines the cost of renewing an FSSAI state license.
    • A one-year fee is charged for any alteration of an FSSAI State license.
    • The cost of obtaining a duplicate copy of the FSSAI State license is 10% of the applicable license charge.

    Fee structure of FSSAI Railway food license

    • The fee for a new FSSAI Railway food license is RS. 2000 (per year). 
    • The cost of renewing an FSSAI Railway food license is determined by the number of years chosen. 
    • The payments for any changes to an FSSAI Railway food license are one-year fees (per modification).
    • The fee for a duplicate copy of the FSSAI Railway food license is 10% of the Applicable License Fee.

    Non-Consequences Compliance

    The FSSAI requires anyone who is registered or licensed to follow the FSS Act’s rules and regulations. In most cases, a food safety officer inspects the food business operator’s facility and uses a checklist to determine the level of regulatory compliance. The food safety officer assigns a grade based on the level of compliance.

    • Compliance (C) 
    • Non-compliance (NC) 
    • Partial compliance (PC)
    • Not applicable/Not observed (NA)

    In accordance with Section 32 of the FSS Act, 2006, the food safety officer may issue an improvement notice if necessary. If the business owner does not comply with the improvement notice, the officer may suspend or revoke his license after giving him an opportunity to demonstrate cause. An appeal can be made to the State Commissioner of Food Safety by any food business owner who has been harmed by an improvement notice. An appeal to the Food Safety Appellate Tribunal/High Court might be filed in response to the ruling.

    Non-compliance will result in a penalty

    The following is a list of penalties for various types of non-compliance:

    S. No. Particulars Fine
    1 Food Quality Not In Compliance With Act 2 Lakh Petty Manufacturer-25000/-
    2 Sub-Standard Food 5 Lakh
    3 Misbranded Food 3 Lakh
    4 Misleading Adv. or False Description 10 Lakh
    5 Extraneous Matter In Food  1 Lakh
    6 Failure To Comply With Food Safety Officer Direction 2 Lakh
    7 Unhygienic Processing Or Manufacture 1 Lakh

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  • All About Trust Registration

    All About Trust Registration

    All About Trust Registration

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    Introduction

    Individuals form trusts for setting a specific part of the assets or the property for the advantage of another person. A Trust is made as a benefit for an additional individual. it’s more of a fiduciary relationship between the trustor, the trustee, and therefore the beneficiary. Hence when an applicant goes through the method of trust registration, they might show a discrepancy parties as a kind of the official document.

    A specific asset or a property transferred from the trustor to the trustee for the longer-term advantage of the beneficiary is thought of as trust. The beneficiary is another party (third-party) who could also be associated with the trustor and trustee.

    Hence, the link that brings the parties to the trust is crucial to define trust. The Indian Trusts Act of 1882 defines trust as a continuing relationship between the trustor and trustee to provide a defined benefit to the beneficiary.

    What is Trust in an Indian Context?

    The Indian Trust Act 1882 governs all registered Trusts in India and facilitates the legal provisions for the identical. The Trust is sometimes observed as a legal arrangement where the Trust’s owner transfers the property to the concerned Trustee (aka beneficiary). the article of the Trust is to confirm the seamless transfer of the Trustor’s assets among the beneficiaries as per the clauses cited within the deed of trust.

    A trustee, selected by the grantor, is chargeable for administering the Trust & finally distributing his/her assets to the designated beneficiaries selected by the grantor when the Trust is about up. Heir, members of the family, or charity are some common beneficiaries of the Trust in India.

    Trusts will be utilized to cut back taxes, simplify or avert the probate process & safeguard assets.

    There are various kinds of Trust in India, such as;

    • Revocable
    • Testamentary
    • Irrevocable
    • Charitable
    • Asset protection
    • Spendthrift
    • Special needs

    Parties during a Trust

    • Author/Settlor/Trustor/Donor: For the creation of the trust, the person who wishes to transfer his property and place his trust in another.
    • Trustee: The one who accepts the arrogance for the creation of the trust
    • Beneficiary: The one who will take pleasure in the trust within the near future.

    Who can create Trust?

    A trust is also created by:

    • Every person who is competent to contracts: This includes a private, AOP, HUF, company, etc.
    • If a trust is to be created on behalf of a minor, then the permission of a Principal Civil Court of original jurisdiction is required.

    Further, it also depends on the law good that’s prevailing at that specific point of your time and therefore the extent to which the author of the trust may get rid of his property.

    What are the categories of Trusts?

    There are Four kinds of trusts in India:

    • Public Trust
    • Private Trust
    • Public Cum-Private Trust
    • A Company formed under Section 8 of the businesses Act (2013)

    Private trusts are governed by the Indian Trusts Act of 1882, whilst public trusts are divided into religious and benevolent trusts. Many significant acts for the enforcement of public trusts in India include the Religious Endowments Act of 1863, the Charitable and Non-Secular Trust Act of 1920, and the Bombay Trust Act of 1950.

    Private Trust

    A private trust is a legal structure established for the benefit of individuals rather than for a public or charitable purpose. It was established for the financial benefit of one or more beneficiaries known to the Trustor. The benefits of a Private Trust are only available to chosen beneficiaries and serve no philanthropic purpose. The Indian Trusts Act of 1882 will undoubtedly be followed by such trusts.

    Public Trust

    A charitable trust is primarily for the benefit of the general population. Public trusts, unlike private trusts, are not governed by the Indian Trusts Act and are established for philanthropic or religious purposes. For the time being, such a Trust adheres to the general law. These trusts, like private trusts, might be established inter vivos by will.

    Public-Cum-Private Trusts

    The Public-Cum-Private Trusts, as their name implies, serve a dual role. They can utilize their earnings for both public and private reasons. This means that the Trust’s beneficiaries could be public or private individuals or both.

    A Company formed under Section 8 of the businesses Act (2013)

    Section 8 of the businesses act governs private limited enterprises. These enterprises, on the other hand, are unable to generate profits. The goals of the companies founded as a result of this are to promote education, crafts, science, the arts, sustainable development, and environmental initiatives.

    Why Trust Registration Process is Required?

    Trusts are formed for the only real purpose of promoting non-commercial activities. These activities need to be within the field, promoting development within the field of arts, science, education, and therefore the environment. Therefore registering a trust is crucial. the subsequent benefits are obtained from registering a trust in India.

    • To ensure that the activity carried out on behalf of the trust is properly governed.
    • To develop and promote activities resulting in a much better society.
    • Trust registration is required to assert revenue enhancement benefits under 12A and 80 G.
    • In the case of a trust, beneficiaries are the overall public. Every trust must act within the best interests of the general public to push the event of trust.
    • This license is required so that the companies of trust are conducted as per the law.
    • To develop various sectors in society.

    Who regulates Trust Registration?

    The primary regulatory agency for trust registration is the Registrar of Trusts. The registrar of trusts maintains all the data on the trusts which are registered in India. The Trusts Act, 1882 governs registrations of personal Trusts.

    No law governs the registration of trusts. Separate state acts apply to trusts registered in multiple states, which the applicant must be aware of. The Bombay Trust Act governs the registration of trusts in Bombay. In India, public trusts must be registered with the appropriate state authorities (if required).

    The following laws regulate trusts:

    • Trusts Act, 1882
    • Income Tax Act, 1961
    • Societies Registration Act, 1860.

    What are the advantages of Trust Registration?

    To Involve In Charitable Undertakings

    Public trust is primarily how to line up your assets to learn you, concerned beneficiaries, & a charity simultaneously. A trust like this could provide several benefits to someone looking to help society with non-essential assets like stocks or real estate.

    Accessibility to Tax Exemptions

    The Income-tax department provides several tax breaks to all registered trusts in India. Because, unlike NGOs, the Trust’s mission does not revolve around profit generation, they are entitled to a variety of tax breaks. However, such an advantage is only available to trusts that have a registered deed on hand.

    Trusts are very useful for obtaining capital and income tax benefits. The Trust may offer stronger protection to the settlor, beneficiaries, and trust assets from more stringent tax regulations.

    Provide Benefits to Financially Aggrieved Individuals

    The registered Trust provides much-needed assistance to the disadvantaged and the general public through charity initiatives.

    Encounter Minimal Legal Hindrances

    The 1882 Indian Trusts Act gives the Trust a lot of legal protection. It also prohibits any third party from filing a baseless claim that could harm Trust’s legal position.

    Ensures Legal Coverage for the Family Wealth

    Trust is often accustomed allocate specific assets like land/interest within the entity formed by the family, which otherwise wouldn’t be practical for a trustor to separate between individuals.

    Avert tribunal

    Anybody can leverage trust registration as a tool for transferring an asset to the heir within the absence of a Will. because the legal title of the assets transfers from the settlor to the Trustee within the case after they are “settled”, there’s no change of ownership after settlor demise, thus evading the necessity for probate of a will on account of trust assets.

    Unlike probate, the trust acts as a non-public agreement that skips the necessity for added registration. the utilization of a trust may also avert the economic adversity often encountered by a surviving spouse while awaiting a grant of probate.

    Immigration/Emigration of Family

    When a private & her/his family move to a different nation, it’s an ideal event to determine a trust to induce obviate taxation within the destination country, thereby safeguarding the family assets and facilitating flexibility in its organization.

    Eligibility Criteria for Trust Registration

    The following criteria would apply to trust registration:

    • There must be a minimum of two or more persons for forming the trusts.
    • The trust must be formed in keeping with the provisions of the Indian Trusts Act, 1882.
    • The parties must not be disqualified under any law operative in India.
    • The objectives of the trust must not go against any law operative in India.
    • The trustee’s actions must be consistent with the law.
    • The formation of the trust must not go against public interest or the other law effective
    • Any trust activities must not injure someone.
    • The activities conducted by the trust must not go in keeping with the memorandum.
    • Trust Deed must be properly drafted and intend the 000 interests of the parties forming the trust.
    • If there are over two purposes of making trust, then both the needs must be valid. If one object is valid and another object is invalid, then the trust can’t be formed.

    Fundamental Documentation Required for Trust Registration

    The following are key documents that one has to arrange for trust registration:

    • Proof associated with Identity for Trustor & Trustee like Aadhaar Card, Voter ID, Passport, DL
    • Address Proof associated with Registered Office like a Copy of Certificate of Property/Utility Bills
    • No objection certification from the owner of the property is rented.
    • Trust deed’s objective
    • Detail about the Trustee and settlors like Self-attested copy Id & Address Proof and occupation
    • Trust Deed on Proper Stamp Value
    • Trustee and settlor Photos
    • Trustee and settlor
    • PAN details
    • Trust deed must reflect the subsequent information:
    • Number of trustees
    • Trust registered address
    • Proposed name of the trust
    • Proposed Rules that may govern the trust
    • Presence of settlor in addition as two witnesses at the time of registration of Trust

    Step-by-Step Procedure for Registering a Trust in India

    The following are the steps in the detailed procedure for trust registration:

    Step 1: Select an Apt Name for the Trust

    The first and foremost step within the process of Trust registration is the name selection for the proposed Trust. Be mindful while serving such a purpose and take the subsequent points under consideration to avoid any hassles:

    • The name should adhere to the Emblems and Names Act of 1950.
    • There should be no violation whatsoever when it involves Trademark Act.
    • The name should stay the original.

    Step 2: Drafting of the deed of trust

    Drafting of the instrument is a crucial undertaking because it’s the sole thing that creates the Trust legally enforceable.

    In general, the legal document consolidates the below-mentioned clauses:

    Objects

    The Object clause reflects the article behind the formation of the Trust

    Acceptance of Funds

    This section allows the Trust to collect contributions, donations, and subscriptions in the form of cash, immovable properties, and subscriptions from any individual, government entity, or philanthropic outlet. Furthermore, any gifts that interfere with the Trust’s mission are not allowed, according to the condition.

    Investments: The investment clause lays out the terms under which the Trust’s fund will be administered legally and efficiently. Furthermore, this section outlined parameters for the efficient allocation of spare funds that do not appear to be in use and will aid in the generation of additional income through investment.

    Power of the Trustees

    This specific clause discusses the trustees’ obligations, as the name implies.

    Generally, such clauses confer the subsequent powers to the trustees.

    • Appointing employee(s)
    • Alienating the trust properties
    • Opening the checking account within the Trust’s name
    • Suing defaulters just in case of legal dispute on behalf of the Trust
    • Accepting any gift or donation from a legitimate person or source
    • Investing additional funding in securities

    Accounts and Audit

    This clause mandates the trustees to administer the book of account on an everyday basis. Further, it also sets out the necessity for account auditing that ought to be conducted by the certified CA.

    Winding Up

    A trust is tense when all of the Trust properties/assets are lawfully distributed to the beneficiaries or an identical entity, either directly or via resettlement. The involved parties must identify any tax obligations incurred because of the transfer of assets when the Trust is aroused. Furthermore, this clause renders the necessity of conducting such a legal undertaking with the approval of the charity commissioner/Court/any other law to mitigate any chances of legal dispute.

    Penalties for violating Compliances of Trust Registration

    Civil and Criminal Penalties

    The violation of provisions of the legal document incurs both civil and criminal penalties for the defaulters. Sections 405 to Section 409 of the IPC 1860 embarked on the provisions associated with the criminal breach of trust.

    Application for write-down Account Number

    Soon after being registered, the Trust or Institution must make an official request to the Assessing Officer for the assignment of a tax write-off account number. Trust can use form-49B, which is provided by the IT department, for this purpose. All challans for payment of sum u/s 200 and TDS certificate, as well as returns, delivered u/s 206, 206A, and 206B, should include the write-down Account Number.

    The penalty imposed on the Trust if it fails to get the write-off Account Number is discussed in Section 272BB. In the aforementioned situations, the abovementioned provision imposes a penalty of Rs 10,000.

    Failure to Furnish the Return of Income

    The Act imposes severe penalties for failing to assist in the repatriation of income. The return of income will not be invalidated if the TDS certificate was not submitted with the return of income due to the taxpayer’s failure to produce such certificate. Taxpayers are required to provide this certificate within two years of the assessment year’s end.

    Role of Section 12AB on the Registered Trusts

    Ensuring continual exemption u/s 10 or 100 all the active existing trust or institutions are mandatorily required to secure the new registration u/s Section 12AB which are registered under the given sections;

    • Section 12A
    • Section 12AA
    • Section 10(23C)
    • Section 80G

    In addition, trusts registered under section 10 (23C) or section 12AA must renew their registration under section 12AB. Section 12AA, which specifies the procedure of registration for trusts or institutions, will no longer be in effect, and replacement section 12AB will take effect as soon as the stipulated term expires, whichever comes first.

    The grant date of registration u/s12AB or

    The last date by which an application for registration & permission is required is formed.

    Why approach Finaxis for obtaining Trust registration?

    Our professionals will be at your disposal to provide the necessary help for Trust Registration and compliance. In India, trust registration entails delicate and error-prone legal ramifications. This is when our knowledge comes in handy. Our experts affirm that you now have a better understanding of the governing provisions of Trust in India, allowing you to conduct Trust-related operations with fewer legal snags.

    How Can Finaxis Help?

    Governing compliances and registration legalities could run any client into the difficulty of application rejection and re-filing, which indeed may be a time-consuming and cumbersome task. However, all such nuisances may be overcome if you choose to proceed via finaxis way.

    • Examination of the client’s requirements for the establishment of a trust in India.
    • Name Selection for the Trust seeable of prevailing bylaws
    • Identification of applicable provisions and legalities
    • Insertion of Relevant clauses within the legal document counting on the character of the Trust
    • Availing of necessary authorization from Sub-Registrar

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  • How Can You Convert Your Pvt? Ltd Company Into An LLP In India

    How Can You Convert Your Pvt? Ltd Company Into An LLP In India

    How Can You Convert Your Pvt Ltd Company Into An LLP In India

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    Limited liability partnerships are popular because of the multiple benefits of a mix of companies and partnerships. LLP offers corporate benefits and partnership flexibility. A limited liability partnership is a legal entity with the limited liability of a partner. LLPs can sign contracts and own real estate in their own name. Each shareholder must submit a declaration and consent to convert the company to an LLP along with the application. 

    Documents required to Convert Your Pvt Ltd Company To LLP 

    The following documents must be attached to the application for converting to an LLP. 

    The consent of each shareholder of the company to convert the company to LLP in the specified format. 

    Form 2 Incorporation document. 

    Form 3  application and LLP Incorporation Declaration. Customs clearance certificate from the tax office. Statement of company assets and liabilities. 

    A list of all creditors with consent.  Approval from other countries. The power of lawyers to make statements. Optional attachment (if any).

    You Can Also Click Here To Get Your LLP Registration Today.

    Effect of conversion 

    Following are some of the implications of converting a  limited liability company to an LLP. 

    • Another partnership is formed.

    • The name of the limited liability company will be removed from the register of the registrar of the Company.  

    • At the time of conversion, all property, assets, interests, rights, privileges, liabilities, and obligations of the limited liability company shall be passed to the LLP.  

    • The conversion does not affect existing liabilities, obligations, agreements, contracts, and continued employment.  

    • Permits or licenses granted to a limited liability company under underwritten law and valid prior to the conversion date will not be automatically assigned to the limited liability company. The terms of the license are decisive here. Therefore, in most cases, you will need to obtain a new GST  or FSSAI registration from the organizer.

    Governance and benefits 

    Limited Partnerships are governed by the Limited  Partnership Act of 2008. This law was drafted primarily to encourage small businesses. Limited liability companies are given several advantages in continuing this goal. 

    • More scope of autonomy 

    • Less form of compliance  is required for LLPs compared to other companies 

    • There is no limit fixed on the number of partners 

    • There is no statutory minimum number of partner meetings  

    • LLP requires more generous statutory records management requirements 

    • MAT does not apply to LLP 

    • LLP auditing is not mandatory

    Companies that cannot convert to LLP 

     All  companies operating in the banking, finance, and insurance sectors 

     All  companies have secured/asset-secured loans 

     In addition, all foreign direct investment companies apply the conditions related to the operation 

     All  companies with external commercial loans 

     All FDI companies follow the approval route.

    Procedure for the Conversion of a Company Into an LLP

    Step 1: Get the DIN (Director Identification Number). 

    For designated partners who do not yet own DIN. 

    Step 2: Board meeting should be held to consider the conversion plan. In order to convert a company to an LLP, a resolution of the board of directors must be passed and the directors must approve the application for the name of the LLP.  

    Step 3. Next, you need to book the name of the LLP and get a certificate of approval from the Registrar of Company

    Step 4: Submit the e-Form and then complete it in ROC  with the following document 

     Proof of LLP office address 

     Subscription sheet 

     Consent of the nominated partner 

     Proof of identity for all partners 

     Certificate of residence for all named partners and partners 

     Details of other companies with which LLP partners are partners 

    Step 5: Form 18 is a form for converting a company to an LLP. But it must be filed with a form to the company itself. 

     Form 18 must contain the following information 

     Consent of the company’s shareholders to convert it to an LLP 

     Updated  tax return 

     Latest balance sheet and annual reports filed with  MCA 

     Any court decision or  order against or against the company 

     If there is a secured interest in the company’s assets 

     In addition, if the existing shareholders are  partners of the planned LLP 

     If the ROC rejects a previous conversion request 

     Also, a list of secured creditors who have agreed to the conversion

     Statement of company accounts  verified by an independent auditor 

     Statement of the company’s shareholders 

     Step 6 – Draft LLP Agreement 

    Once incorporated, the nominated partners must establish an LLP agreement that must include the following information: 

     Name of LLP 

     Names of all partners and designated partners 

     Governance Rules  

     Recommended company 

     Rights and obligations of general partners 

     Contribution form 

     Interest rate 

     Step 7:  EForm3 and EForm14 files 

    Two forms namely Form 3 and Form 14 will be submitted in the next step. 

    EForm3 contains data related to the LLP agreement. This form must be submitted within 30 days of  your business becoming an LLP, attach the LLP agreement to the form.  

    EForm14 is used to notify the commercial register that the company has been converted to a limited liability company. This form must be submitted within 15 days of conversion. Finally, in addition to Form 14, you need to enclose the following documents: 

    •  A copy of the corporate establishment certificate 

    •  Copy of FiLLiPe-form

    Registration certificate 

    The LLP must notify the registrar that the company has been converted to an LLP within 15 days of the conversion date. The intimation must be edited on Form 14. The registrar will issue a registration certificate after completing the required procedures. If the registrar refuses the conversion, the limited liability company may appeal to the court. 

    If the property is registered in the name of the company, the LLP must notify these authorities of the details of the conversion, along with the details of the LLP.

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  • How to Start and Operate a Sole Proprietorship in India?

    How to Start and Operate a Sole Proprietorship in India?

    How to Start and Operate a Sole Proprietorship in India?

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    NCLAT has clarified in its 2020 order that private businesses are eligible to file an application under Sections 7 and 9 of the Insolvency and Bankruptcy Code (IBC). The NCLAT stated that Section 2 of the IBC applies to private enterprises in the same sequence. The definition of “person” in Section 3(23) of the IBC also applies to private companies.

    1. What is a sole proprietorship?

    2. How to start a sole proprietorship in India?

    3. Sole proprietorship company Registration in India

    Government registration is not required to start and operate a sole proprietorship in India. There is no need to visit an online portal, fill out a form, and upload documents to register a sole proprietorship in India. However, it is recommended that you register as a sole proprietor to take advantage of the benefits that the government sometimes offers to the business sector.

    This blog will guide you on how to register a private company in India. We will also inform you about the documents required for registration as a sole proprietorship. But before moving on to how to register a sole proprietorship in India, let’s take a moment to look at the definition of a sole proprietorship business.

    What is a sole proprietorship?

    Simply put, a sole proprietorship is a small, independent business owned and operated by one person. This is one of the easiest businesses to maintain. This simple ease of operation makes private enterprises very popular in unorganized business sectors, especially among small merchants and traders.

    Sole proprietorships in India are not taxed like other legal entities. Rather, business owners file business taxes as part of their tax returns. A sole proprietor’s business income is added to their gross income after deducting business expenses, tax deductions, and other related income if any. Like other taxpayers, these businesses are eligible for a tax deduction. The same amount is deducted according to the applicable IT rules and is subject to the fixed-rate applicable to taxable income. This is different from a limited liability company, where income tax is charged at a fixed rate.

    How to start a sole proprietorship in India

    Starting a Sole proprietorship in India is very easy. Before you think about how to open a company in India, all you need to do is take care of the following:

    1. Choose an appropriate company name.

    2. Choose a suitable place to do business.

    3. Open a current account with any bank, in the name of your business.

    Here you go for the benefits of a sole proprietorship?

    How to register a sole proprietorship company in India

    Now let’s see how to register a Sole proprietorship in India. Solo traders do not require registrations of any kind by themselves but may accept multiple registrations for a business to function properly. they are mentioned below:

    SME Registration

    A Sole proprietorship may be registered as Small and Medium Enterprises (SMEs) under the provisions of the MSME Act. You can also apply online. Although small business registration is not mandatory for individual entrepreneurs, it is recommended because it makes it easier to get a bank loan when you need it later. The government also operates several schemes that provide low-interest loans for small and medium-sized enterprises (SMEs).

    Find GST rates, HSN codes, or SAC codes for all goods and services using the GST Rate Finder. This lookup service is also known as the HSN code finder. For products and services, GST is calculated based on the product’s HSN or SAC code.

    Shops & establishment registration

    Store and facility licenses apply to all businesses such as stores, restaurants, commercial establishments, retail/corporate, charitable organizations, community entertainment, and more. You must register within 30 days of starting any business. if not. Municipalities issue these licenses based on the number of employees in the institution. You must register your company and obtain a license that grants you the right to do business in that region or state. We also offer the opportunity to open a checking account at any bank. Registering stores and establishments may also take advantage of the state DIC beneficiary scheme.

    GST registration

    GST is a tiered tax levied by each retailer. It has replaced many indirect taxes such as service tax, value-added tax (VAT), central sales tax, excise duty, surcharge, etc. Individuals/companies providing weekly goods and services with an annual turnover of 20 lakhs (or 40 lakhs in some states) or more are required to register with the GST.

    GST registration makes your business a legally recognized provider of services or goods. In addition, small businesses can reduce their taxes by using the configuration plan provided by the GST scheme. Therefore, it can greatly reduce the tax and tax burden. GST registration is required for some business types. Under the GST law, you will be fined if you operate a business without GST registration.

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  • What Is The Difference Between NGO And NPO

    What Is The Difference Between NGO And NPO

    What Is The Difference Between NGO And NPO

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    NGO And NPO: Both non-government organization (NGOs) and non-profit organizations (NPOs) operate for the public good, not for profit. Because their goals and initiatives are also similar, the public is often confused about the differences between the two organizations.

    First, NGOs operate outside of government agencies but are sometimes funded by government agencies. Similarly, NGOs focus on large projects and often go international in those projects. These projects include helping needy and disadvantaged communities in developing countries. On the other hand, NGOs usually work with churches or local groups to improve local conditions.

    State agencies are not involved in the management of NGOs, but often allocate part of their funds to various projects run by NGOs. In general, NGOs tend to focus on the concerns of people in developing countries, such as health, education, social protection, environmental issues, and inequality.

    First, NGOs operate outside of government agencies but are sometimes funded by government agencies. Similarly, NGOs focus on large projects and often go international in those projects. These projects include helping needy and disadvantaged communities in developing countries. On the other hand, NGOs usually work with churches or local groups to improve local conditions.

    State agencies are not involved in the management of NGOs, but often allocate part of their funds to various projects run by NGOs. In general, NGOs tend to focus on the concerns of people in developing countries, such as health, education, social protection, environmental issues, and inequality.

    For NGOs, if you have already registered as an NGO, you can start raising funds for various projects. Likewise, they can also start applying for grants from various grant agencies. For NGOs, the situation can be quite different. Because NGOs deal with a much broader range of cases and issues than NGOs, NGO funding agencies cannot immediately reach out because they will deal with international issues that focus primarily on developing countries.

    over 40,000 NGOs are internationally active, most of them from India. The issues dealt with by NGOs relate to society and the economy. Cases such as equality, human rights, and empowerment are among the categories in which various NGOs around the world are working. Other categories such as arts and culture, research, and similar subjects are mainly handled by NGOs.

    Most of the big foundations you hear are NGOs. Because they cover a wider range than NPOs. NGOs focus more on improving small but still very important issues such as arts and culture. Leaders of both types of organizations should not profit from any activities or donations received. So, both still work for profit, not for personal gain, but to help many sectors of society, either locally or internationally. Both organizations are also looking for various grants to help colorize and empower proposals.

    Although there are differences, grant funding agencies sometimes accept applications from both NGOs and NPOs. This is because many of the similarities may not be limited to the grants provided. When looking for grants, NGOs often turned to NGO funding catalogs and vice versa. Because many grants require the participation of both NGOs and NPOs, this is why many directories have aggregated the grants already offered. Ultimately, whether NGOs or NPOs, openness to partnership opportunities and unity within and outside of each organization are critical.

    Definition of NGO

    Non-Governmental Organization (NGO) is an abbreviation of Non-Government Organization and refers to an association formed by citizens who operate completely independently of the government and perform various services and humanitarian functions. This is a non-profit organization. It operates at the regional, national or international level, depending on scope and connections. You can register as a trust, society, or company. These organizations receive funding from governments, foundations, businesses, and individuals.

    It carries out various activities to induce the government’s interest in civil complaints, advocate for public policy, and promote political participation through information provision.

    There are many NGOs working on specific issues, such as human rights, women’s and children’s rights, environmental or health issues. The International Committee of the Red Cross, Rotary International, the International Air Transport Association (IATA), the International Chamber of Commerce (ICC), and the International Organization for Standardization (ISO) are well-known NGOs operating around the world.

    Definition of NPO

    A non-profit organization or NPO is a legal entity created by a group of individuals to promote a cultural, religious, professional, or social cause.

    Initial funds are collected by members or fiduciaries of the NPO. Since the organization is a non-profit organization, it uses surplus funds to achieve its goals without distributing it to its members. Registered according to Article 8 of the Company Act (old Article 25). These organizations enjoy a number of privileges, such as duty-free, and do not need to use the terms “state” or “Pvt Ltd” at the end of their names.

    NPOs may include charities, member groups such as sports clubs or sororities, community or entertainment organizations, public educational institutions, public hospitals, and more.

    Comparison Table Between NGO and Non-Profit Organization

    Parameters of Comparison NGO Non-Profit Organization
    Another name: Non-governmental organization NPO
    Main Goal Development of the society To drive any special task or objective other than profit.
    Source of funds They have many various sources like Grants, churches, etc. From private institutions, government funds, and the general public.
    Examples Red Cross Society, ISO, etc. Sports clubs, Charitable Organizations, etc.
    Disadvantage Misuse of funds, lack of participation Maintenance expenses, the decreasing role of investors

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  • What Is The Difference Between TIN/TAN/VAT/PAN/DSC And DIN?

    What Is The Difference Between TIN/TAN/VAT/PAN/DSC And DIN?

    What Is The Difference Between TIN/TAN/VAT/PAN/DSC And DIN?

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    Taxpayer Identification Number/ Value Added Tax-TIN/VAT

    Taxpayer Identification Number (TIN) is the finished form of what was earlier known as the VAT (Value Added Tax)/CST (Central Sales Tax) or Sales Tax Number. This number is given by the Commercial Tax Department and helps in distinguishing proof of people and organizations who pay business charges to the State Government. It is a stand-out eleven-digit number that should be utilized for all VAT-related Business Transactions.

    Also, it fills in as a registration number for organizations that have enrolled with the VAT Office. This office was accountable for highway deals tax collection before the execution of the Goods and Service Tax (GST). Accordingly, the TIN or VAT applies to a wide range of wares, including manufactured products, trade things, web-based business things, and retail merchandise. The VAT or TIN has been supplanted by the GST or GSTIN after the presentation of the GST (Goods and Service Tax) in 2017.

    Tax Deducted and Collection Account Number-TAN

    Every organization and person whose income is taxed at the source is assigned a ten-digit alphanumeric code. To use TDS procedures, a company must first obtain a TAN registration and number. This TAN number must be included in any TDS or TCS returns they submit. If a company doing TDS doesn’t even have a registered TAN, it will suffer serious legal consequences. Once a company has a TAN, it is the responsibility of the company to file TDS returns on a quarterly basis.

    Permanent Account Number-PAN

    Every Indian taxpayer is identified by their PAN (Permanent Account Number), which is a ten-digit alphanumeric code. Individuals, foreign nationals, companies, corporations, and HUFs in India are all covered by this number. It’s an important document that doubles as identity. The Income Tax Department of India provides it. A valid PAN Card is required for everyone who wishes to establish their own business. This card is also used by the IT Department to keep track of all money transfers as well as the chargeable component of such transactions. Furthermore, this PAN Card is now required for large cash deposits, loans, and the purchasing of immovable assets.

    Digital Signature Certificates-DSC

    Digital Signature Certificates fill in as a type of electronic approval while transferring records. It additionally fills in as a proof of character, at whatever point you are transferring individual records on the web or making on the web exchanges or filings. Divisions, for example, the MCA, IT office, Employee Provident Fund, Foreign Trade Department, and the Center for E-Tenders by and large use DSCs as approval. These marks go under three kinds:

    Class 1- Utilized principally for non-legislative or low-need cases

    Class 2- Utilized for enlisting an organization and recording IT returns

    Class 3- Utilized fundamentally for E-Tender support

     

    Director Identification Number-DIN

    A Director Identification Number (DIN) is a stand-out number allotted to a current or future head of an organization and expected for enlistment. The terms Director Identification Number (DIN) and Designated Partner Identification Number (DPIN) are compatible. In India, a DPIN is important to enroll in an LLP. The DIN ordinarily contains all of the individual data about the person who is going to turn into a Director. People are the ones in particular who can get a DIN. By giving confirmation of recognizable proof and address, both Indian and unfamiliar residents can get a DIN. Since the Digital Signature Certificate (DSC) is required while applying for a DIN, hence it should be gotten first.

     

    A Detailed Comparison Between TIN/TAN/VAT/PAN/DSC And DIN

     

    TIN/VAT TAN PAN DSC DIN
    TIN represents the Tax Identification Number.TIN was earlier known as VAT. TAN represents Tax Deduction and Collection Account Number. PAN represents Permanent Account Number DSC represents Digital Signature Certificate  DIN represents Director Identification Number.
    Unmistakable states have various regulations that apply to TIN. The Law appropriate to TAN is under segment 203A of the Income Tax Act. The law appropriate to PAN is under segment 139A of the Income Tax Act. According to the Companies Act, 2013. The Law appropriate for DIN is under sections 153 and 154 of the Companies Act.
    Endeavors mentioning VAT enrollment, like exporters, makers, brokers, and vendors of items and administrations, should enlist for a TIN. TIN is currently replaced with GSTIN. TAN is a ten-digit alphanumeric number given by the Indian Income Tax Department to people who are committed to deducting or gathering charges on installments made under the Indian Income Tax Act, 1961. PAN is a 10-digit ID number expected by the Income Tax Department for anyone who goes through with monetary exchanges or makes good on charges. Digital signatures are expected for specific records and exchanges to be documented on the web. DIN is a special distinguishing proof number held for the organization’s current or impending chiefs. It contains individual data about them.
    TIN is given by the Commercial Tax Department of the particular state. TAN is given by the Income Tax Department. PAN is given by the Income Tax Department. It is given by any authorized confirming power, according to area 24 of the Income Tax Act, 2000. DIN is distributed by the Central Government.

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  • What Is The Legal Difference Between A Brand And A Company?

    What Is The Legal Difference Between A Brand And A Company?

    What Is The Legal Difference Between A Brand And A Company?

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    A Brand and A Company : The terms company and brand may look the same, but they are actually very different. Both companies and brands play important roles in advertising and marketing. Knowing the main differences between a company and a brand can help you differentiate certain marketing practices and improve your company or brand.

    This article describes the differences and similarities between companies and brands, and the purposes for which they are useful in marketing.

    What is a company?

    A company is an organization that works both on the manufacture and sale of products. People who work in the office or around the world usually run businesses. Companies manage their employees, develop business strategies, and find solutions to problems to better serve their customers.

    What is a brand?

    A brand is the character of the company. Several factors that contribute to the brand are the company’s name, associated symbols and illustrations, and general reputation. Successful brands are using these factors to achieve greater recognition among their customers. Companies create brands, and the impression they make to consumers determines their success.

    For example, if a company develops a brand that encourages customers to make repeat purchases, implements the brand in their marketing strategy, and then increases repeat purchases, the brand has achieved its goal.

    To build a lasting company and brand, you need to be aware of the legal differences between the two. In this blog, we will help you understand all the legal differences between company and brand, as well as the basics of company and brand. These are two different entities commonly encountered in marketing.

    The main legal difference between a company and a brand is that in the eye of law a company is an artificial person. It can act as a person and claim, generate income or appear before statutory authorities, while a brand is an intangible asset created by the results of its activities and values of the company. In other words, a company is an entity that performs certain activities, while a brand is built through the successful management of the business.

    The legal difference between brand and company

    People are often confused between brand and company names. They believe that the company name and the brand name are the same. But that’s not the case. A brand is about communicating a company’s ideas and images to people through a particular product/service. However,

    the company name is the name associated with an organization whose primary purpose is to make a profit in the business area. That is the registered name of the organization. Similarly, the company name is the official name by which the sole proprietor or partner decides to do business. Company names always end with a suffix. It should also be noted that companies can also have different brands.

    What Is The Legal Difference Between A Brand And A Company

    Brand Company
    A brand is an identification symbol, logo, name, mark, or word that people use to distinguish one product from another. This is an organization or legal entity engaged in business. In other words, it produces or sells goods/services.
    It is based on consumer perceptions and expectations. This is an organization or legal entity engaged in business. In other words, it produces or sells goods/services.
    A brand cannot be owned by more than one company. A company can own multiple brands.
    A brand is used to distinguish one company’s products from those of another. A company name distinguishes one company from another.

    Difference Between a Company and a Brand

    Importance of Naming a Brand

    A brand name is something that helps customers identify and distinguish a parent company’s products from other products. Brand names are protected by trademarks or government agencies. Also, trademarks should be distinctive and attractive in nature. A brand should be chosen by considering the following:

      •    Your brand must be unique and set you apart from your competitors

      •    It should be easy to pronounce, remember and identify.

    Importance of Naming a Company

    We all have a name and it’s part of our identity. Similarly, when a company

    is formed, a name is linked to identify the company. This name is called the company name. This contributes to the marketing of the company’s products. There are a few important things to keep in mind when choosing a company name.

      • The company name must be unique and reflect the quality of the product.

      •  Also, the company name should be creative to grab the attention of consumers.

    • The company name must be legally accessible.

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  • All About Limited Liability Partnership (LLP) Registration 

    All About Limited Liability Partnership (LLP) Registration 

    All About Limited Liability Partnership (LLP) Registration

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    A Limited Liability Partnership (LLP) is a legal entity established under the LLP Law 2008. It is a legally autonomous entity with respect to its partners. Such legal entities are liable for all property. However,

    the partner’s liability is limited to the agreed contribution. And since the partner’s liability in an LLP is limited, it entails the partner company structure and elements of the corporate structure. Except in cases of fraud, the partners are not personally liable. In addition, since the concept of joint responsibility does not work in LLP, partners are not liable for the misconduct or negligence of their fellow partners. The concept of Limited Liability Partnership (LLP) emerged in India in 2008.

    A minimum of two partners is required to register for an LLP, but there is no upper limit in this context. Partners must include at least two designated partners who must be natural persons, one of whom must be an Indian citizen. The LLP Agreement governs the rights and obligations of such partners. They are responsible for complying with all existing provisions of the LLP Act of 2008 and the provisions set forth in their respective agreements.

    What Is An LLP And How To Register An LLP In India?

    A limited liability partnership (LLP) is a form of business that combines the functions of a partnership and a limited liability company business structure. This business form was introduced in India with the passage of the Limited Liability Partnership Act 2008 in April 2009. In LLP, partners are not liable for the misconduct or negligence of other partners. Instead,

    all partners have limited liability limited by their acts or omissions, similar to the obligations of shareholders in a limited liability company. However, unlike the shareholders of the company, LLP partners have the right to manage the business directly. LLP also limits the personal liability of partners for errors, omissions, incompetence, or negligence of LLP employees or other agents. Day-to-day business management is specified in the LLP agreement, giving partners the freedom to manage their business affairs.

    LLP registrations are handled by the Office of Corporate Affairs (MCA) through the Office of Corporate Registration. The incorporation process is completely electronic, just like the incorporation process. This means that applications and documents are submitted electronically and the registrar issues a digitally signed Certificate of Incorporation (COI).

    Benefits Of An LLP

    Limited-lia-Partnership

    The main reasons people prefer LLP structures for their business structures are:

    Limited Liability

    LLP members are only liable for small debts incurred by them. On the other hand, in the case of property and partnerships, the personal assets of directors and unions are not protected if the business goes bankrupt

    Separate Legal Entity

    An LLP is a legal entity separate from its participants. It has a lasting existence following eternal continuity. In other words, the partner can leave, but the business remains. For a company to be dissolved, the terms of the dissolution must be mutually agreed upon.

    Flexible Agreement

    Transferring ownership of an LLP is also easy. A person can be easily induced to a designated partner and ownership is transferred to him.

    Suitable For Small Business

    LLPs with a capital of less than 25 lakh and an annual turnover of less than 40 lakh do not require a formal audit. Therefore, registering as an LLP is beneficial for small businesses and startups

    Once Your LLP is Incorporated, we will send you LLP Certificate

    Steps To Register An LLP In India

    1. Obtain DSC and DIN of partners

    The first step is to obtain the electronic signature certificate of the desired partner of the limited liability partnership. This is because all forms must be submitted online and require an electronic signature from the director. In addition, all directors are required to register a DIN number. Applications must be completed on the DIR-3 form.

     2. Application For Name Approval

     This process involves enrolling in an LLP. Before doing so, you need to check if the name is already in use. A free search is available on the MCA portal. The registrar only accepts previously unused LLP names. Name approval is done by the registrar only if the central government deems it undesirable. Additionally, the name must not resemble any existing partner company, LLP, trademark, or legal entity.

     3. Filing of LLP Incorporation Documents with MCA

    LLP registration consists of preparing the E-Form FiLLip along with the required documents and submitting it to the MCA. All documents completed and certified in accordance with the document requirements must be attached to the FiLLip E-Form and digitally signed with a Digital Signature Certificate (DSC) of all proposed and designated partners.

     4. LLP Agreement

    ​LLP agreements are very important in limited partnerships as they define mutual rights and obligations between partners and between LLP and partners. Partners sign up for an LLP agreement after registering for an LLP by completing Form 3 online on the MCA portal. This process must be completed within 30 days of the registration date.

    5. Apply For PAN & TAN & Bank Account

     Once you have your Certificate of Incorporation, apply for an LLP PAN and TAN with NSDL. It takes about a day.

    Documents Required For LLP Registration

    To register for an LLP, you will need scanned copies of the following documents:

    From partners:

    · PAN card or passport (foreign or NRI)

    · Aadhar card/voter ID/passport/driver’s license

    · Recent bankbook/phone/mobile bill/electricity/gas bill

    · Passport photo

    · Blank document with sample signature.

    Note: One partner must independently certify the first three documents. For foreigners or NRIs, all documents must be notarized (if currently in India or a non-commonwealth country) or apostille (if present in a Commonwealth country).

    For the registered office:

    · Utility bills

    · Notarized English rental agreement

    · Certificate of No Objection by the Property Owner

    · Sale /property deed in English (in case of owned property).

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  • ALL You Need To Know About ADT-1

    ALL You Need To Know About ADT-1

    ALL You Need To Know About ADT-1

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    The company is required to inform the Company Registrar (ROC) of the appointment of the auditors after the Annual General Meeting (AGM) is completed in a timely manner. The ADT-1 format should be used here.

    What is Form ADT-1?

    Form ADT-1 is used by the company to notify the company registrar of the appointment of auditors after the close of the Annual General Meeting (AGM).

     Section 139(1) of the New Companies Act 2013 requires that this form be submitted annually after the AGM in which the auditor is appointed

    Details of Auditor to be submitted

    Classification of auditor (corporate or practitioner), auditor PAN number, certified public accountant number, address, e-mail address, appointment period, appointment date and shareholder meeting date, exempt auditor number, date and reason, etc. If there is an unexpected vacancy etc.

    When should you file Form ADT-1?

    Form ADT1 must be filed with the Company Registrar within 15 days of the auditor appointment. For example, if your company’s AGM was held on September 30, 2018, Form ADT 1 must be submitted by October 15, 2018.

    What are the documents to be filed along with Form ADT-1?

    A list of documents that must be attached to the ADT-1 form:

    · A copy of the resolution of the board of directors

    · Written consent of the auditor

    · Certificate of auditor confirming that there is no reason for disqualification to be appointed as an auditor

    What is the Fee for filing Form ADT-1?

    The cost of filing Form ADT 1 with the company registrar is:

    S.No Share Capital Value of the Company Fee in (Rupees)
    1 Less than 1,00,000 200
    2 1,00,000 to 4,99,999 300
    3 5,00,000 to 24,99,999 400
    4 25,00,000 to 99,99,999 500
    5 1,00,00,00 or more 600
    6 The company not having a share capital 200

    What is the penalty for non-filing Form ADT-1 on time?

    Late filing of the ADT 1 form will result in the following penalties:

    S.No Delay in Filing (No of days) Penalty  
    1 Up-to 30 2 times of Normal Fees
    2 More than 30 to 60 4 times of Normal Fees
    3 More than 60 to 90 6 times of Normal Fees
    4 More than 90 to 180 10 times of Normal Fees
    5 More than 180 12 times of Normal Fees

    Points to remember

    · Submission of Form ADT 1 is mandatory for all listed, unlisted, public, private, and other companies.

    · It is generally agreed that ADT 1 is not required for the appointment of the first auditor. This is because section 4(2) of the 2014 Company Regulations only mentions section 139(1) regarding the appointment of an auditor and does not refer to section 139(6) regarding the appointment of the first auditor. However, it is recommended that you also submit Form ADT 1 for your first auditor appointment.

    · Responsibility for ADT 1 submission rests with the company, not the auditor.

    · A Form ADT 1 must be submitted even if the auditor is randomly appointed.

    E-filing of Form ADT-1

    · You can fill out Form ADT 1. The form can be downloaded from the Ministry of Corporate Affairs (MCA) website.

    · E-forms are automatically approved

    · When this form is registered with the relevant institution, a confirmation e-mail is sent to the registered e-mail ID.

    Companies (Audit and Auditors) Amendment Rules, 2018

    In February 2018, MCA amended Company (Audit and Auditors) Rules, Regulation 2014 by replacing the ADT 1 and ADT 2 forms with new forms. Therefore, the new ADT 1 form is available on the MCA website for the current year. 

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  • How To File GST Return Under Composition Scheme

    How To File GST Return Under Composition Scheme

    How To File GST Return Under Composition Scheme

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    Goods and Services Tax is an indirect form of taxation that greatly simplifies Indian tax law. GSTR4 serves as the GST return for compound dealers, a scheme offered under the GST scheme for certain categories of taxpayers. GST declarations for construction plans should now be submitted annually, but prior to 2018, they were submitted quarterly. In this article, we will take a look at compound dealer GST annual revenue, composition plan, and why it matters.

    You Can also Click here To get your GST Registration Today

    1.  What is GSTR4?

    2.  Things to Know About the GST Return for the Composition Scheme

    3.  Eligibility Criteria for the Composition Scheme under the GST regime

    4.  Composition Scheme under the GST Regime

    5.  GST returns for composition dealers

    What Is GSTR4?

    GSTR4 serves as a GST return for train dealers. Unlike regular taxpayers, who file up to three returns per month, parts dealers only need to file one return per year on the GSTR4 form only. Under normal circumstances, the last date to file a GST Competition Declaration is April 30 following the evaluation year. For example, taxpayers are required to submit their GST returns for the 2019-2020 composition plan by 30 April 2020. This year, however, the deadline has been extended due to the unexpected coronavirus pandemic. Under the GST scheme, all taxpayers who choose a layout plan must submit a GSTR4.

    Things to Know About the GST Return for the Composition Scheme

    1. The GST Portal now offers an offline Excel-based tool to help taxpayers file their GSTR4 annual reports on time. The ability to submit GST editorial declarations was added to the GST portal last August.

    2. The GST filing deadline for construction plans has been extended from July 15, 2020, to August 31, 2020. This will be the new filing date for the GSTR4 report for the 2019-2020 tax year.

    3. The deadline for submitting Form CMP02 to select how 2020-21 will be structured has been extended until June 30, 2020. This applies to registered taxpayers. Subject to both Section 10 of the CGST Act and anyone who has consented to the CGST Notice posted on March 7, 2019.

    4. The ITC03 submission deadline has been extended to July 31, 2020, due to restrictions imposed due to the COVID-19 pandemic.

    5. Taxpayers can file challans and CMP08 reports for Q1 2020 by July 7, 2020.

    6. Taxpayers should be very careful when filing their annual GST reports for compound dealers. This is because they cannot be changed once submitted through the portal. Therefore, it is recommended that these dealers seek legal advice before filing a GSTR4.

    7. Late submission of GST reports for compound dealers will incur a late fee of INR 200 per day prior to submission. However, the maximum fine that can be imposed is INR 5,000

    Eligibility Criteria for the Composition Scheme under the GST Regime

    Companies with an annual income of INR 1.5 million or more are eligible to apply for the constituent scheme. The threshold was originally set at INR 1 million per year, but CBIC later changed it to INR 1.5 million in 2019. Businesses should consider the revenues of all businesses using the same PAN card when calculating their total annual revenue. The government will consider gross sales when considering whether a business is suitable for a layout plan. In addition, only the following types of businesses can choose the configuration scheme in GST mode;

    1.  Manufacturers 

    2.  Dealers

    3.  Restaurants that do not serve alcohol

    The following individuals cannot opt for the Composition Scheme under the GST regime;

    Composition Scheme under the GST Regime

    Now let’s briefly review a few things to remember about Composition schemes

    1. Complex dealers are required to pay taxes according to the reverse billing mechanism, where applicable. The shipping rate is the rate at which the dealer must pay tax on goods and services. Therefore, the tax rate under this scheme cannot be used to pay taxes under the reverse charge mechanism.

    2. Composition dealers cannot avail of any input tax credit. Better known as ITC for the tax they paid under the reverse charge mechanism.

    3. Such dealers do not have to pay the IGST since they have to pay only the CGST and SGST for the import of services or goods from an unregistered dealer under the reverse charge mechanism.

    4. Complex dealers are required to pay a percentage of their total sales tax. And certain purchases are subject to tax according to the reverse charge mechanism. So total goods and services tax = supply tax + tax on B2B transactions (reverse charge) + tax on B2B purchases from unregistered dealers + tax on import services.

    5. Unlike regular taxpayers, composition dealers do not have to keep detailed records of all financial transactions. Because the dealer pays the tax out of their pocket, you need to issue an invoice, not a tax invoice. These dealers cannot recover the GST paid to the customer.

    GST Returns for Composition Dealers

    Complex dealers are required to file the following declarations under the GST scheme:

    1. Taxable individuals must pay tier taxes via a challan-cum-statement from 2019 onwards in the form of CMP-08.

    2. From the assessment year 2019-2020, the frequency of filing GSTR4 has been changed from a quarterly to an annual basis.

    3. GSTR-9A submissions continue to apply with some exceptions for the 2017-2018 and 2018-2019 evaluation years.

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