Saturday, 29 April 2017

Some recent updates that you would not like to miss – 29.04.2017

1.  Govt. is set to slash safe-harbor margins in transfer pricing within a few weeks. The margins are used to determine the prices of goods and services rendered by multinationals to their subsidiaries in India.

2.  Bogus Share Capital cannot be assessed as Company’s Share Capital as Amendment to Sec 68 has no Retrospective Effect: Bombay High Court. In CIT v. M/s. Gagandeep Infrastructure Pvt Ltd.  

3.  Capital Gain Tax would not attract if the Previous Transaction which the assesses acquired the Property was not taxable: Bombay High Court in case of Mr. Nusli Wadia. 

4.  Capital gains: An amount received from a wholly-owned subsidiary in consideration of transfer of shares of the WOS to a group of shareholders is not taxable as capital gains. The Department cannot subject a transaction under the Gift-tax Act and also levy tax under the Income-tax Act.  CIT Vs  M/s Annamalaiar Mills (P) Ltd Vs CIT (Supreme Court)

5.  CBDT clarifies on cash curb, Aadhaar to the small taxpayers under the presumptive taxation scheme are exempt from maintenance of Books of A/c.

6.  Humble President has given his assent to the four key Goods and Services Tax (“GST”) Bills, after they were passed by the Parliament. The four GST Bills which are now enacted can be accessed as under:

The Central Goods and Services Tax Act, 2017

The Integrated Goods and Services Tax Act, 2017

 The Goods and Services Tax (Compensation to States) Act, 2017

 The Union Territory Goods and Services Tax Act, 2017

7.   In GSTR-1 give Summary of supplies to Unregistered persons, Rate wise for Local supplies & Rate & State wise for Inter-state ones up to 2.50 Lacs.

8.   In GSTR-2, Purchaser to specify inward supplies for which he is not eligible for ITC fully or partly whether at invoice level or otherwise.

9.   CBDT has issued Revised Form 3CD applicable for Tax Audit cases for AY 2017-18.

10.   Income tax dept has zeroed in on 60,000 persons who deposited “excessive” cash after the note ban. These include those dealing in high value property and petrol pump owners. Of the 60,000 persons, 1,300 are “high risk” ones who, along with the remaining, would be probed for possible black money generation as part of Operation Clean Money II (OCM). 

Have a great day ahead!

Compliance Requirements Post Incorporation of Company

After incorporation of Private Limited Company, there arise some immediate formalities that need to be completed post incorporation as a part of Private Limited Company registration services. You need to comply with the rules & regulations of the Companies Act 2013 starting from the day you incorporate.

1.      Appointment of Auditor

After obtaining the Certificate of Incorporation, the very next formality is to appoint the first auditor of the company. Board of Directors must call a board meeting for the appointment of an auditor for the company that too within 30 days of date of registration of company. If board fails to appoint the first auditor within the above stipulated time then members of the company must be informed, who may, at an extraordinary General Meeting, appoint the first auditor of the Company within 90 days of such intimation. Appointed auditor shall hold the tenure till the conclusion of the first Annual General Meeting.

2.      Disclosure of Director’s Interest and Declaration regarding Disqualification

Concern or interest of the directors or shareholders in other companies or bodies corporate, firms or other association of individuals shall be disclosed by the directors of the company and declare that such directors are not disqualified. This is a perpetual compliance as well; directors must disclose their interests from time-to-time as required by the Companies Act 2013.

3.      Registered Office

Company shall be required to have a registered office on and from 15th day of its incorporation and at all times thereafter, capable of receiving and acknowledging communication & notices. Verification of registered office of the company required to be filed within 30 days of its incorporation in form INC-22 with the Registrar of Companies. Failure in compliance of which may attract a penalty of Rs.1,000 for every day during which a default continues up to maximum of Rs.1,00,000.

4.      Issue of Share Certificates to Subscribers

Every company must deliver the share certificates within a period of two months from the date of incorporation to the subscribers of the memorandum, failure of which may attract a minimum fine of Rs.25,000 which may extend up to Rs.5,00,000.

Do not miss our next update on Latest Amendments.

You may drop in your queries at or directly get in touch with our finance/tax experts @ 8872032114, 8872032116, 8872013116

Have a great day ahead!

Friday, 21 April 2017

Making it simpler and easier: Ease of Doing Business in India

Government of India has emphasized on the importance of ‘Ease of Doing Business’ as a major pillar of ‘Make in India’ initiative. Hon’ble Prime Minister Shri Narendra Modi has set a target for India to be ranked among the top 50 countries over the next 3 years in the World Bank Doing Business Study. In order to achieve this target all the departments / agencies concerned have come forward and implemented the reforms in the right earnest. The following are the few notable reforms:

1.    Requirement of minimum paid up capital and common seal under the Companies Act 2013 done away with.

2.   Registration for Permanent Account Number (PAN), Tax Deduction Account Number (TAN), EPFO (Employees' Provident Fund Organization) and ESIC (Employee's State Insurance Corporation) and incorporation of company can be done through a single form on eBiz portal.

3.      Time taken for obtaining PAN and TAN on eBiz portal has been brought down to T+1 days.

4.      Provision made for applying for company name and Director Identification Number (DIN) at the time of incorporation with single Form-INC29.

5.      Online and real time registration of ESIC and EPFO has been introduced.

6.      Provision for online payment of EPFO and ESIC contributions has been introduced.

7.    Requirement of bank account for registration with EPFO and ESIC has been made optional.

8.      Central Registry Rules have been amended to record security interests of all types of property.

9.      Number of documents required for imports and exports have been reduced to three.

10. All documents for export and import to be submitted electronically with digital signatures i.e. no physical submission of document.

11. Custom ICEGATE Portal has been integrated with Food Safety and Standards Authority of India (FSSAI), Animal & Plant Quarantine, Drug Controller & Wildlife Control Bureau for imports.

12.  Shram Suvidha Portal launched to issue unique Labour Identification Number (LIN), submission of common electronic returns under 8 Labour Acts and facilitate risk based inspections.

13.  Insolvency and Bankruptcy Code with provision of easy and faster exit, passed by the Parliament.

14.  SARFAESI (Central Registry) Rules have been extended to register extended security interests.

The above significant changes will scale down the number of procedures and days taken to start a business which will slash the costs involved as well. Starting business made simpler and easier by this step taken by The Government of India. These remarkable reforms have improved our rank in Starting a Business parameter from 164 to 155 over the last one year.

Have a great day ahead!

Friday, 14 April 2017

Some recent updates that you’d not like to miss – 14.04.2017

1.   Individuals struggling to link their permanent account number (PAN) with Aadhaar because of differently spelt names can now simply upload a scanned copy of PAN to get the work done.

2.    All cash payments over Rs. 2 lakhs for loans and credit card bills during the 50-day period after demonetization will have to be disclosed in the new one page Income Tax Return form.

3.   Under GST, if another unit of entity outside SEZ has already gets registration done then also separate registration shall be required for SEZ Unit or Developer even if it’s in same state.

4.      Under GST, inward supplies which are not eligible for ITC fully or partly whether at invoice level or otherwise have to be specified by the purchaser.

5.    As per CBDT, restriction on cash transaction shall not apply to withdrawal of cash from bank, co-operative bank, or a post office savings bank.

6.      Last date for filing of Service Tax Return for the period from October 2016 to March 2017 is 25th April 2017.

7.    Income Tax department has tie-up with MCA. Consequently, it has started issuing PAN and TAN to newly incorporated companies within 1 day (in e-form).

Have a great day ahead!

Friday, 7 April 2017

New Income Tax Return Forms for Financial Year 2016 – 17

If a person’s income exceeds Rs. 2.5 lakhs then he shall have to pay income tax on such income. For this purpose, Income Tax Return (ITR) needs to be filed on or before due date in the forms prescribed by Income Tax Department. Now how can it be done? How many types of ITR forms are there? How to choose ITR form? For all these queries, we are here to assist you anytime.

First of all, Income Tax Return filing shall be mandatory for any person whose income exceeds Rs. 2.5 lakhs. Income Tax Department releases ITR forms every year for filing of ITRs for relevant financial year.

Some basics about ITR forms have been discussed below –

1.  ITR – 1 (SAHAJ): This form is particularly for individuals having income from salaries, one house property, other sources (Interest etc.) and having total income up to Rs. 50 lakhs.

2.    ITR – 2: This form shall be filled by individuals and HUFs who are not carrying out any business or profession under any proprietorship. Earlier, ITR – 2A was required to be filled if there has been an income from Capital Gains. Now latter has been subsumed in ITR – 2 w.e.f. Assessment Year 2017-18.

3.   ITR – 3: Individuals & HUFs having income from a proprietary business or profession shall be required to file ITR – 3 now. Earlier, ITR – 4 was required to be filed for this purpose.

4.   ITR – 4 (SUGAM): This form shall be filled by the persons having Presumptive income from Business & Profession. Earlier ITR – 4S was used for this purpose which has now been subsumed.

5.   ITR – 5: For persons other than – (i) individual, (ii) HUF, (iii) company and (iv) person filing form ITR – 7; shall be required to file this form.

6.  ITR – 6: This form shall be particularly filed by companies registered under Companies Act 2013.

7.  ITR – 7: Persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) shall be required to file this form.

Now you can choose which ITR form to file for Income Tax Purposes.

Do not miss our next update on Latest Amendments.

You may drop in your queries at or directly get in touch with our finance/tax experts @ 8872032114, 8872032116, 8872013116

Monday, 3 April 2017

Some recent updates that you would not like to miss – 03.04.2017

1.    Finance Bill, started from April 1, 2017; has been passed by the Lok Sabha. Following changes has been done –

a.    The rate of tax on income between Rs. 2.5-5 lakhs has been reduced to 5% from earlier rate of 10%.

b.    Penalty of Rs.10,000 shall be imposed on those taxpayers who fails to file their returns on time.

c.    Individuals making rental payments above Rs.50,000 per month shall be required to deduct tax at source @ 5% w.e.f. June 1, 2017.

d.    Quoting Aadhaar Number has been made mandatory for filing of Income Tax Returns and while applying for PAN as well w.e.f. July 1, 2017.

e.    Limit on cash transactions has been set at Rs. 2 lakhs from proposed Rs. 3 lakhs.

2.    GST Migration date has been extended to 30.04.2017. Now provisional IDs which were not used till 31.03.2017 can be used up to 30.04.2017. Unused provisional IDs till such extended date shall be cancelled after that date as not needed.

3.    Commodities that are kept outside the purview of GST are Alcohol for human consumption, Petroleum products namely petroleum crude, motor spirit (petrol), high speed diesel, natural gas aviation turbine fuel & Electricity.

4.    Under GST, to amend the Registration Certificate, permission of the proper officer shall be required for only certain core fields of information, whereas for the other fields the registrant can himself carry out the amendments.

5.    Under final GST Bill, Supplies of specified Goods & Services from Unregistered person to Registered person to be taxable under Reverse Charge.

6.    GST paid on Reverse Charge can be considered as Input Tax. Hence, if such goods or services are used, or intended to be used, in the furtherance or course of his business, in that case credit can be availed against such tax.

7.    Under reverse charge, supply will be considered on the date whichever is earlier –

a.    Date of receipt of services

b.    Date on which payment is made

c.    Date of receipt of invoice

d.    Date of debit in the books of accounts by supplier

8.    New ITR forms has been released by Income Tax Department –

a.    Form ITR – 1 SAHAJ: For Individuals having Income from Salaries, one house property, other sources (Interest etc.) and having total income up to Rs.50 lakhs (1 Page Return)

b.    Form ITR – 2: For Individuals and HUFs not carrying out business or profession under any proprietorship

c.    Form ITR – 3: For individuals and HUFs having income from proprietorship business or profession.

d.    Form ITR – 4 (SUGAM): For presumptive income from business & profession.

e.    Form ITR – 5: For persons other than  (i) individual (ii) HUF (iii) company and (iv) person filing ITR form

f.    Form ITR – 6: For Companies other than companies claiming exemption under section 11.

g.    Form ITR – 7: For persons including companies required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F).

Have a great day ahead!