Seven Steps for Private Limited Company Registration

Seven Steps for Private Limited Company Registration in Delhi

Private Limited Company is the most popular and prominent type of corporate legal entity in India. The Ministry of Corporate Affairs, the Companies Act, 2013 and the Companies Incorporation Rules, 2014 regulate private limited company registration. A least two shareholders and two directors are required to register a private limited company. While a corporate legal entity can only be a shareholder, a natural person can be both a shareholder and the director.

Besides, foreign citizens, foreign corporate entities or NRIs may be directors or shareholders with Foreign Direct Investment of a company making it the preferred entity option for international promoters.

Are you thinking of setting up your business in Delhi? Do you want to know the process involved in private limited company registration in Delhi?

CAONWEB can help you with private limited company registration in Delhi.

Pre-requisites for Private Limited Company Registration in Delhi

  • 2 Directors
  • 2 Shareholder
  • Registered Office Address (Residential/ Non-Residential)

Document required for private limited company registration in Delhi

The applicant must mandatorily submit the following documents along with the identity card and address proof:

  1. Memorandum of Association
  2. Article of Association
  3. Copy of PAN Card
  4. Copy of Aadhar Card
  5. Firm Address Proof like Electricity Bill or Telephone Bill or anything similar that has full name and address of the firm in legible language. (not more than two months old)
  6. Rent agreement or Electricity Bill if the business place is taken on rent duly attached with No objection Certificate (NOC) issued by the owner.

Process for Private Limited Company Registration in Delhi

  1. The first step is to apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  2. Then apply for approval of the name with Registrar of Companies (ROC), Delhi
  3. The third step is to apply for Registration in INC-32 forms
  4. The last step is to obtain a Registration Certificate.

Following are the steps involved in registering a private limited company:

Seven Steps for Company Registration

1. Obtain DSC

Since we are taking an online route to register a private limited company, Digital Signature is mandatorily required. It is mandatory for all the subscribers and witnesses in the memorandum and article of association. You can obtain Digital Signature Certificate either online or offline from government recognized certifying agencies. There are two category of DSC available, i.e. Class 2 and Class 3. Under Class 2, your identity will be verified against a pre verified database, whereas under class 3, you need to be present in person before the registering authority.

Related Blog – All you need to know about Company Registration as a startup

2. Run Name Approval

There are two options to get name approval

  1. Incorporate a company via Reserve Unique Name (RUN) form.
  2. Apply for the proposed name through SPICe(INC-32)

Option 1:

In an attempt to ease the registration procedure, RUN web service has been introduced by Ministry of Corporate Affairs. While filling RUN form, be extremely careful as it gives you only one chance for applying and in case of rejection of name (based on valid grounds) there is no second chance available. In this case you have to re-file another RUN form by again paying the prescribed fees.

To apply for a name using RUN web from, the applicant must first create a MCA account. The account is free of cost. After creating and logging into the MCA account, the registrant can choose “Private Limited” as the type of company to be registered. He further needs to provide one name choice and check against the database of MCA to check the availability.

It is important to note that MCA Run System only check for identical company names. However the Company Incorporation Rules, 2014 says a company cannot be registered with an identical name. Hence even if the MCA database shows the availability of name, it does not guarantee approval.

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Option 2:

However, with effect from March 23, 2018, Ministry has decided to permit two proposed Names and one re-submission (RSUB) while reserving Unique Names for the Companies.

You must think carefully before adopting a name because any name that violates the rules will not be allowed to use. There’s a list of undesirable names that can’t be used.

 If it is identical with or too closely resembles the following, a suggested name will be considered as undesirable.

  1. Existing company names and LLPs or names approved by the Company Registrar and LLPs.
  2. A registered trademark or trademark for which others have applied for registration and used it or owned it.
  3. Names are given under and in violation of the Emblems and Names Act, 1950.
  4. Foul words or phrases. Words or expressions used as a derogatory term and offensive to a group of people.
  5. Names with “British India” words.
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3. Obtain Director Identification Number for Incorporation

All individuals who are proposed to be the director of the company should have a valid Director Identification Number. The person should apply for DIN only through the SPICE from. All the details should be filled in the SPICE form along with their PAN or Passport details. On incorporation of the company, DIN will be allocated to the person who has duly applied for DIN.

If a person already has a DIN and incorporating a new company, SPICE form must still be used and DIN can be entered wherever applicable.

4. Selecting Your Business Activity

Next, you should choose the operation your Private Limited Company will engage in. You can decide from any of the alternatives that you have been given. And if you cannot find the correct option for your operations, you can select the’ other’ option. It is requested to appoint a professional so that he/she can help you with drafting memorandum and article of association.

5. Form SPICe (INC-32)

Ministry of Corporate Affairs has introduced Form SPICe (INC-32) to simply the process for incorporating and registering a company online. Prior to the introduction of SPICe form, a company is required to file several documents like DIR-3, DIR-12, INC-1, INC-7, INC-22 for different registration requirements. Now all these forms have been merged together in a simplified way.

A professional’s digital signature is mandated to file the INC-32 form. The professional must certify the correctness of all the information provided in the form. The professional can be a Chartered Accountant, Company Secretary, Cost Accountant or advocate.

6. e-MoA(INC-33) and e-AoA (INC-34)

The intention behind introducing e-MoA and e-AoA is to simply the company registration process in India. e-MoA and e-AoA stands for electronic Memorandum of Association and electronic Articles of Association respectively.

The forms need to be filed online on MCA portal and they are linked with SPICe (INC-32). Both of these forms must be mandatorily filed by the subscribers of the Memorandum and Article of associations.

7. PAN and TAN Application

 You can apply for the PAN and TAN of the company through the single SPICe form by using forms 49A for PAN and 49B for TAN. After submitting the SPICe form, the system will auto-generate PAN and TAN form. All you need to do is download it, attach electronic signatures and upload both forms to the MCA portal. 

If all the information in the form is properly filled in along with the necessary documents, MCA will approve the registration and a CIN (Corporate Identity Number) will be given. This CIN can also be tracked on the MCA portal online.

Ministry of Corporate Affairs has significantly made the registration process a lot more simple and easier in an effort to spur new start-ups.

Frequently Asked Questions

1. What is the fee for Incorporation?

The MCA has announced zero fees for incorporation up to 10 lakh of an authorised capital in an attempt to simplify the company incorporation process and encourage new start-ups. Hence, Businesspeople would be able to save a thousand rupees as an incorporation fee. Notwithstanding the announcement of zero fees for the SPICE form, eMOA and eAOA–stamp duties would still be valid for incorporation as before depending on the state of incorporation.

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2. What are the changes made in the registration process in 2017 and 2018?

By reducing the forms for name approval, DIN application and incorporation, the MCA has accomplished substantial process decrease while enhancing the ease of using SPICe form.

A significant drawback in using the SPICe form earlier was that Entrepreneurs or Professionals were unable to acquire previous approval of the name. In the event of refusal of name while using SPICe Form, they were compelled to redo incorporation paperwork. But now, MCA has streamlined the name approval process and made it optional by implementing a web-based method for name authorization called RUN.

3. Can a proposed director of a new company apply for DIN through Form DIR-3?

As per the company registration process 2018, DIR-3 form can only be used for adding a director by existing companies. Hence, due care must be taken by the professionals to ensure that DIN, through DIN-3 is not obtained for a proposed director of a new company.

4. What are the documents required for filing SPICe (INC-32)

The following documents are required for filing SPICe (INC-32):

  • If the Director or Subscriber is an Indian National
  • PAN Card
  • Address Proof:  It can be Passport, Voter ID Card (Election Card), AADHAR Card, Electricity Bill, Telephone Bill, Ration Card or Driving License.
  • Residential Proof: It can be Bank Statement, Electricity Bill, Telephone Bill or Mobile Bill.
  • If the Director or Subscriber is a Foreign National
  • Passport
  • Address Proof: It can be Driving License, Residence Card, Bank Statement or Government issued form of identity containing address.
  • Residential Proof: It can be Bank Statement, Electricity Bill, Telephone Bill or Mobile Bill.

5. What is the time required to register a company?

Since nowadays a company registration has become a fast track process, it takes lesser time to register a company online as compared with the old process.

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Related Blog: INCOME TAX RETURN FOR BEGINNERS

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Related Blog:  WHAT IS THE GST REGISTRATION PROCEDURE

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Related Blog: COMPANY REGISTRATION PROCEDURE IN INDIA

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Related Blog – All you need to know about Company Registration as a startup

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New ITR filing date for A.Y 2019-20

New ITR filing date for A.Y 2019-20

It was demanded to extend the due date of filing ITR because of last minute rush and also main factor was  TDS  statement issue was also delayed for A.Y 2019-20. On 23rd July, 2019 CBDT extended the due date of filing Income Tax Return of taxpayers whose due date fall on 31st July, 2019. Now the new due date shall be 31st August, 2019

Who is required to file ITR by 31st July, 2019 (now extended to 31st August)?

Individuals including salaried taxpayers and entities who do not need to get their accounts audited. 

Click here to Read About : who needs to get their account audited here.

What are the document checklist to file ITR?

-Form 16 received from your employer

-Bank statement during the relevant year if you have income other than salary and also to check interest from your saving bank account, as it is taxable too however you get tax deduction upto a limit for your saving bank account interest.

-If you have income from house property than again details of rent received during the relevant year, along with municipal taxes paid receipts

-Details of your tax aving investments like LIC, ELSS, Basic tuition fees paid for your children, any tax saving FD made during the year, donations eligible for tax benefits, medical insurance paid for yourself or parents and spouse.

-House loan email and interest paid details if any.

-If you are a proprietor and not required to get your account audited make sure your tax computation is calculated correctly so ensure you get the right tax consultant for the same. 

Income TAx Return Filing | ITR Due Date

Why should one approach a tax consultant to file ITR?

There is no doubt that you can login to the income tax and do the basic filing yourself. If you have income only from salary then you can file it yourself. If a salaried taxpayer do not have time they may approach a tax consultant who is not charging you hefty sum to file salary income tax return. However for those having income from capital gain, income from other sources, income from business- it is always recommended that they should approach a tax consultant. Because relying on not so efficient person to file your tax return will only put you in trouble. Income tax department is very strict and serves you with notice in few months if anything submitted is incorrect or you may even have to face late fees or interest if there is by any chance mistake in your tax computation.

Therefore why get served with notice and take hassle when you can now go to a tax consultant nearby you or approach a CA online through a reliable source. Choice is yours file return on time with help of consultant or get served with notice and face interest penalty by doing delay or making mistake by getting your itr filed through not reliable source.

Related Article- 7 Ways Salaried Individuals Can Save Tax

Know how to file ITR online and don’t wait till the last date.

File your ITR on time and live with peace!!

Jail for non-filing of ITR

You may land up in Jail for non-filing of ITR

The central Board of Direct Taxes (CBDT) has extended the ‘Due Date’ for filing of Income Tax Return from 31st July, 2019 to 31stAugust, 2019!

Interest and Penalty for failing to file ITR within due date

Those category of individuals with income below the exemption limit are not required to file the ITR irrespective of what they have earned income during the financial year. The basic exemption limit varies as per age. 

What will happen if you fail to file ITR within due date of 2019-20? Last date of ITR filing for A.Y 2019-20 is 31st July, 2019. Unlike in past missing to file ITR has strict consequences.  If one fails to file ITR by 31st July, 2019 then one still get the chance to file it by 31st March 2020, however with a late fees.  Return filed after due date is called Belated return. So you get a chance to file belated return by 31st December, 2020 with late filing fees.

As per section 234F of income tax Act, if a person fails to file income tax return within due date and files it before 31st December late fees of 5000 is to be paid, if return is not filed even after 31st December late fees goes upto 10000 in that case.If there is tax payable then for late filing you would have to pay interest u/s 234A at 1% per month or part thereof on unpaid taxes along with interest u/s 234B and 234C as applicable.

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When the provision of imprisonment will comes into effect?

276CC of income tax Act highlights that if intentionally you fail to file ITR that is you are doing the fault knowingly in that case a person could get imprisonment terms of at least 6 months. And this may extend upto 7 years if he is evading tax greater than 25 Lakhs. If tax he is trying to evade is greater than 3000 but is upto 25 Lakh then there could be imprisonment for a term of at least 3 months and it could go upto 2 years based on the amount of tax he was trying to avoid.

Therefore, one has to comply with the provision of ITR filing within the due date to avoid such mishappenings or reputation harm like interest, penalty fine or even jail.

Please note that for certain categories of tax payers due date of ITR filing is 30th September, 2019. You may consult caonweb experts for free to check your due date.

Jail for not filing your ITR will harm your business reputation. Are you filing your ITR before 31st july,2019

Basics of income tax for beginners

All about ITR filing for BEGINNERS!

Novice to Income tax! Don’t know how to file an Income Tax Return form. Does Income Tax stress you to such an extent? Try not to stress. It is not an advanced science to get it. You should simply to soak in a couple of essentials of Income Tax to get things clear. Let’s get a deep dive into it.

Before starting, let’s get a brief idea about the Income tax. Income tax is basically imposed by government of India on people who are earning income. This assessment is imposed based on an Act called Income duty Act (IT Act) which was passed by the Parliament of India in 1961. Finance minister also make changes in the rates of income tax every year so we should keep our eye on budget or at least on the income tax rates which are going to help us while online income tax return filing.

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When you are Eligible for Online Income Tax Return filing:

For filing income tax return, there are some taxable slabs are set by the government. From those set of instructions you can easily get the idea for filing an income tax return.As per the financial year 2019-20, Income tax slabs and rates are as mentioned below

Income Tax SlabTax needs to pay
Up to 2,50,000Nil
2,50,001 to 5,00,0005%
5,00,001 to 10,00,00012,500 + 20% of total income exceeding 5,00,000
Above 10,00,0001,12,500 + 30% of total income exceeding 10,00,000

Rates mentioned above does not include Surcharge and Cess.

o    10% surcharge is applicable on income tax in case income exceeds  50 lacs but upto  1 crore

o    15% surcharge is applicable on income tax in case income exceeds  1 crore

o    4% Health & Education Cess is applicable on the income tax and applicable surcharge.

Tax rates and slabs are same for Male and Female

According to the latest budget plan 2019, Individual citizens having assessable yearly salary up to Rs.5 lakh will get full duty rebate u/s 87A and along these lines won’t be required to pay a single penny from our pockets. Anyway Income charge Slabs and Rates will stay unaltered for the FY2019-20.

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What is the assessment year for online Income Tax Return Filing?

As indicated by Indian norms, the financial year (charge year) begins on the 1st of April consistently and closes on the 31st March of the next year. It doesn’t make a difference when you’d begin your employment /job, the budgetary year or the assessment year would close on the 31st of March, each year.

For more clarification, let’s suppose

Working months – 1st January, 2017 to 31st March, 2017

Tax Year – 2016-2017

Assessment Year – 2017-2018.

Please note that ITR Due Date is going to be remain same i.e. 31st of July every year (for the assessment year).

Tax exemptions while applying for Income tax return form

Expense exceptions are capital deductions that can diminish your taxability. These reductions make sure that expense is related just on specific parts of your pay. On the off chance that you pay the lease of your home, you can benefit of an exception on your House Rent Allowance that is determined according to your compensation.

In monetary exclusions, try to use section 80C to 80U. These will help out to reduce taxable income and increase your savings. Under section 80, we have PPF, LIC, Fixed deposits, and Mutual funds while applying Online Income Tax Return Filing

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How to file an Income tax return form

❏  Open the link https://www.incometaxindiaefiling.gov.in/home, register yourself here. 

❏  Fill all the details as per the given form.

❏  Collect your form 16 from HR/ finance dept. Form 16 is basically a TDS document. Where all the income details has been mentioned.

❏  Documents like salary slips, or account details, and other documents for tax exemptions should be with you.

❏  Download form 26A from the portal. .

❏  Compute your total income and recheck if there is any error.

❏  Check your tax liability and calculate your actual taxable payment.

❏  Last step is e-verification of ITR filing. That can be done either by sending a hard copy to the income tax office or uploading online to the portal with digital signatures.

FAQ related to income tax return.

What is ITR?

ITR represents Income Tax Return. It is a recommended structure through which the points of interest of salary earned by an individual in a monetary year and duties paid on such pay are conveyed to the Income-charge Department. It likewise permits convey – forward of misfortune and guarantee discount from personal expense department.Different types of income of salary are recommended for recording of profits for various Status and Nature of pay. These structures can be downloaded from www.incometaxindia.gov.in. For more information you can also visit our blog Basics of Income Tax Return Filing for Beginners

What are the ways to file an income tax return?

You can file an income tax return in any form like mentioned below

1.  You can submit hardcopy to the income tax office

2.  Online method with digital signatures

3.  Either can use online method with the EVC method (electronic verification code)

4.  Or can fill the form online and then submit the verification of return in ITR-V

Note:

When you are applying with the 4th method where you are not applying digital signature, you should take two printed copies of ITR-V form. One of them should be signed by who is paying the tax (taxpayer), sent it to through either normal post or speed post within 120 days to the income tax office address. 

If you don’t want to commit mistakes while filing an income tax return, please visit below mentioned link https://blog.caonweb.com/mistakes-to-avoid-while-filing-income-tax-return/

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How can I pay the tax according to my income?

Tax amount will be calculated on the basis of income earned in the previous year. Procedure of accumulation of duties, Income -charge Act arrangements for instalment of assessments ahead or can say before the culmination of earlier years. It is otherwise called Pay as your gain concept. 

Duties are gathered by the government through the accompanying methods like instalment by the citizens into different assigned banks, for example, Advance duty, Self-Assessment charge, and so on.

For more information related to Income tax slabs, you can also visit to https://blog.caonweb.com/know-about-your-income-tax-return-and-income-tax-slabs-income-tax-rates-for-fy-2018-19/

Impact of GST on Export of Goods and Services

Impact of GST on Export of Goods and Services

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GST for export of goods and services in India is zero-rated. Zero-rated supply does not mean that the goods and services have a tax rate of ‘0 ’. It means that the recipient of the supply is entitled to pay ‘0%’ GST to the supplier of goods or services.

This blog will help you understand GST registration and compliances related issues if you are an exporter of goods or services. It is going to a simple blog for the most searched or most common question that every new exporter in India.

GST on the export of services from India

GST on the export of services from India

1. What is the export of services in the context of GST? 

Export of services mean a case where the place of supply of service is outside India and the person receiving services is outside India and the provider of services is located in India

2. Is GST registration required if I am an exporter of services?

Export of goods are considered as inter-state supply and under GST law, new GST registration becomes compulsory for any person who is doing the inter-state taxable supply of goods. Unlike in export of goods, Export of services cases is exempt from GST registration for a threshold limit of up to INR 20 Lakhs.

3. Do I need to pay GST while I sell services outside India?

 If you are registered under GST as an exporter of services, then you should know that since export is considered as interstate supply so you need to pay IGST in case of export of services. However, the amount of I GST paid in case of export of services can be claimed as refund by the exporter by following a certain procedure as prescribed by the Government. Another alternative that an exporter of services has is that he can apply for a Letter of Undertaking (which is called LUT in short). By taking LUT an exporter of services can make the export without paying any IGST.

4. What is GST Registration procedure for exporter of services in India? Is GST registration online possible?  

There is the facility of GST registration online provided on the Government of India portal. https://www.gst.gov.in/

Other Blog : Annual Return under GST (Form GSTR-9)

One can collect the documents first then apply by following the instructions given on the website. Or one can approach service providers such as caonweb which are  India’s top GST registration service provider. Why take a risk when you have an affordable best quality service providers in the market. 

There is a chance that if you file it yourself you might get a notice from the GST department for any error you may make while filing the application of GST registration. Therefore another alternative of GST registration online is caonweb, India’s most trusted tax, and compliance service provider online. GST registration procedure is simple however it could be tricky based on the nature of business.

5. If I have not crossed the threshold limit but I took GST Registration as an exporter of services?

In this case, do I need to comply with GST return filing norms? Yes, once you take GST registration, filing becomes mandatory for you.

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GST on exports of goods from India

1.What is export of goods in the context of GST?

Export of goods in simple terms means taking goods out of India to a place outside India. Export of goods is considered as inter-state supply and under GST law, GST registration becomes compulsory for any person who is doing the inter-state taxable supply of goods

2. Is GST registration required for export of goods?

Yes it is mandatory for you to take GST Registration if you are an exporter of goods. Irrespective of the limit of your turnover, it becomes mandatory to take new GST registration for an exporter of goods.

3. Do I need to pay GST while I sell goods outside India?

If you are registered under GST as exporter of goods, then you should know that since export is considered as interstate supply so you need to pay IGST in case of export of goods. However the amount of igst paid in case of export of goods can be claimed as refund by the exporter by following a certain procedure as prescribed by the Government. Another alternative that an exporter of goods has- that he can apply for a Letter of Undertaking (which is called LUT in short). By taking LUT an exporter of goods can make the export without paying any IGST.

Here are some common important points for both exporter of good and services

·      What are the important compliances to be kept in mind once my GST Registration procedure is completed? Once you obtain new GST registration, you will be assigned a number which is called GSTIN. Now you are registered under GST. GST return filing becomes mandatory for you.

·       What is the compliance of GST return filing in case of exporter of goods or services? GST return filing is mandatory even if you have to pay zero taxes or even if your business is not doing operation currently. Because once a person is registered under GST it becomes mandatory that such GST registered person files GST returns as per the prescribed due dates are given by the Government.

·       What are the consequences for late filing or return or no filing of return under GST for export of goods or services? You will have to pay interest and penalty for all these noncompliance’s. It is your tax consultants duty to ensure that your business is filing GST return before the due date and there is zero noncompliance from your side.

How to apply for LUT?

To apply for LUT online you need to login to your GST website. Here are the simple steps on how to file furnish LUT in GST. To apply LUT, here is what you need to follow:

·       Login to GST website of the Government

·       Click on User Service

·       Click on Furnish Letter of Undertaking (LUT)

·       Fill the form as per the instruction given

·       Submit with EVC or DSC

Is online GST return filing easy and can be self-filed?

Online GST return filing by yourself is the right thing to do only if you have technical knowledge on GST laws. Otherwise, you must go to a Chartered Accountant who can file your GST return in a correct manner.

Income Tax Return

Basics of Income Tax Return Filing for Beginners

As you all know that the due date for online income tax return filing for FY 2018-19 is approaching soon. The ITR due date is 31st July 2019 for those whose books of accounts are not required to be audited. And, the ITR due date is 31st September 2019 for others.

You should file your income tax return carefully because improper ITR filing can bring troubles in the form of penalty & notices from the income tax department. You should always take help of professionals for accurate and timely ITR filing before the ITR due date to avoid any penalty & notices from the income tax department. You can find the best professionals through our online platform of CAONWEB for services of Online Income Tax Return Filing.

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To make ITR filing easy for you, we are here explaining the basics of income tax return filing for beginners:

1. Select the correct income tax return form:

A taxpayer must file ITR using the correct income tax return form as if he do ITR filing using the incorrect income tax return form, the return will be considered as defective and he has to file a revised ITR using the correct income tax return form. If the defect is not rectified within the time limit, then it is considered the same as not filing a return at all.

2. Reconcile your Income with Form 26AS:

A taxpayer must check the details of all the income, TDS deducted, advance tax paid, self-assessment tax paid, etc. in Form 26AS and also verify it with Form 16 and Form 16A to avoid any discrepancy in ITR Filing.

3. Disclose the losses which have to carry forward:

A taxpayer must file the income tax return on or before the due date in order to carry forward certain losses incurred during the year for offset against income in future years. If income tax return claiming carry forward of certain current year’s losses is filed after the due date, such losses will not be allowed to carry forward and the same shall lapse.

4. Furnish correct personal details:

A taxpayer must furnish correct personal details and also make sure that in case of any refund bank particulars like account number, IFSC code, etc. are accurately mentioned in order to receive the refund on time and without hassles.

GST Registration

5. Report all bank accounts:

A taxpayer is required to report all the bank accounts held by him in the income tax return. However, dormant accounts are excluded from the requirement of reporting in the income tax return.

6. Report interest incomes:

A taxpayer must report all the interest incomes received by him or accrued due to him in the previous financial year while filing his income tax return as they generally forget to report interest earned from the savings bank account, fixed deposits (FDs), recurring deposits (RDs), etc.

7. Report income from the last job:

If a salaried taxpayer switched his job in a financial year, then the income from his previous job must be reported while filing an income tax return with income from the current job.

8. Report tax-free incomes or exempt income:

A taxpayer must report all his incomes even the incomes which are tax-free. These exempt incomes are to be reported in the ‘Exempt Income’ schedule of the income tax return.

9. Pay Advance Tax/ Self-Assessment Tax timely:

A taxpayer must ensure that the tax dues are cleared on or before 31st March of the financial year because failure to do so within due dates will attract interest and penalty.

Audit and Assurance | Compliance Audit

10. Verify ITR V on time:

After online income tax return filing, a taxpayer must e-verify his return via Net banking, Aadhaar Card or through the EVC process. If due to any reason he is unable to e-verify your return, then he can sign and send the ITR-V to the CPC via ordinary or speed post only within 120 days from e-filing of return. So, the above mentioned are the basics of income tax return filing for beginners. To understand in detail about online income tax return filing you can also consult top Chartered accountants in India by using our online ITR filing services through CAONWEB.

Company Registration

What is the procedure to take registration of an IT Company in India?

If you are interested in starting an IT Company in India, then it is mandatory to establish the legal presence of your company. You have to file an online application to the Registrar of Companies or ROC for online company registration in India.

You can also take the help of professionals through our online platform of CAONWEB in the company registration process of IT Company in India. Professionals registered with CAONWEB offers the best services of online company registration in India at affordable prices and quick turn-around time.

GST Registration

The procedure to register an IT Company in India includes the following steps:

Step 1: Obtain a Digital Signature Certificate (DSC):

The company registration process is online and digital signatures are required to file the forms to the MCA for company incorporation. It is mandatory to obtain DSC for all subscribers and witnesses in the memorandum and articles of association.

Step 2: Apply for Director Identification Number (DIN):

DIN is an identification number for a director and it has to be obtained by anyone who wants to be a director in a company. One DIN is enough to be a director in any number of companies. There are 2 ways of obtaining DIN:

Option 1: File form DIN 3 which requires basic details of the proposed director along with identity proof and address proof. Now the applicant need not file DIR-3 separately and it can be applied within SPICe form (INC 32).

Related Blog – All you need to know about Company Registration as a startup

Option 2: File SPICe form (INC 32) and DINs gets issued to the proposed directors who do not have a DIN. Under SPICe form (INC 32), maximum of three directors can apply for DIN. If there are more than 3 Directors and more than 3 persons doesn’t have DIN, then the applicant has to incorporate Company with 3 Directors and have to appoint new directors later on after incorporation.

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Step 3: File for Name Approval

There are 2 options for the name approval for the purpose of company incorporation:

Option 1: You can apply for name approval thorough RUN (Reserve Unique Name) form.

Option 2: You can apply for name approval thorough SPICe form (INC-32).

Step 4: File SPICe form (INC-32)

Ministry of Company Affairs has introduced SPICe Form (INC-32) and it serves the following purposes with the benefit of a single application for company incorporation:

  • Application for allotment of DIN
  • Reservation of company name
  • Incorporation of a new company
  • Application for PAN and TAN

The certification of a professional (Chartered Accountant, Company Secretary, Cost Accountant or advocate) is required and he certifies that all the information provided in the SPICe Form (INC-32) is correct.

Step 5: e-MoA(INC-33) and e-AoA (INC-34)

e-MoA is electronic Memorandum of Association and e-AoA is electronic Articles of Association and these forms are filed as a linked form with SPICe Form (INC-32) and must be signed by the subscribers to the Memorandum of Association and Articles of Association.

Step 6: PAN and TAN Application

Through SPICe Form (INC-32), you can also apply for the company’s PAN and TAN by using forms 49A for PAN and 49B for TAN. These forms will be auto-generated after the submission of SPICe Form (INC-32). You are required to download them and affix digital signatures and upload both forms on the MCA portal.

Recently Ministry of Corporate Affairs (MCA) has introduced a new form AGILE (Application for Goods and Services Tax Identification Number, Employees State Insurance Corporation Registration plus Employees Provident Fund Organization Registration) which is also linked form with SPICe Form (INC-32).

These are the steps of online company registration in India. If you have any query and you want detailed information about online company registration in India or company registration process in India, then you can take help of professionals through our online platform of CAONWEB.

GST registration in India

GST Department is getting stricter day by day!! Are you ready??

Are you aware of the fact that GST department has already put up lenses to check flaws? There are so many businesses who register under GST but they do not file returns. Mostly people are not aware of the fact that even if you are not selling or you have no transactions in the business you still need to comply with the rule of filing GST returns.

Online Company Registration

Now GST department is keeping it strict and checking everything. Department is cancelling registration of those gst registered businesses who are failing to file returns. Also when you apply for GST, You have to make sure that the documents, your bank details everything needs to be as per department’s requirement.

So if you are all ready to start a business or are already doing a business make sure you have just the right knowledge of GST compliance. Else you might lose name or even clients in market. Get in touch with professionals who can guide you on gst correctly. A reliable person for gst compliance is Chartered Accountant so you need to find a consultant for that. A platform such as CAONWEB gives you the facility to connect with CA nearby you for all tax and compliance matter. Do not fall for the nonprofessional service providers who gives you or claims on the lowest price gst trend as a little flaw in compliance could cost you huge in the future.

Read this: Compliances Under GST for a Service Provider

GST is vast. As an owner of the business, you should be familiar with the basic things of GST. The technical part is taken care of by your tax consultant. However, it is good to have knowledge of at least basic terms. For those who are beginners and wants to know basic here it is:

Who needs GST registration in India?

If the turnover of your business exceeds specified limit, you are required to have GST registration on a mandatory basis.

If you are  selling  either product or services  E-commerce operators such as Amazon, Flipkart, You need GST registration on a mandatory basis. It does not matter how much turnover you have.

If you do not fall under the threshold limit and want to get GST registration, You can voluntarily do that.

How is payment of GST done?

20th of the next month is date to pay GST . Like for June-19 gst you need to pay it by 20th July 2019 through filing gstr 3B.Interest @ 18 for failure to pay before due date.

How is GST registration done?

If you have GST documents ready you could complete the process through Government’s website. https://www.gst.gov.in/

What is input tax credit under GST?

Input Tax Credit (ITC) is amount of tax that you pay while you purchase  tax already paid by a person at time  of purchase of product or services. Tax credit as the name suggests, you get to deduct this amount of tax from your tax liability. ITC avail facility is restricted. For certain product and services it is not allowed to take ITC. ITC

What are the compliances after I get registered under GST?

Once you are registered under GST, You need to comply with the GST return filing requirement. All the filing is done electronically through GST department’s portal. Professional help should be taken when you file the return. You can find CA nearby you in google.

GST REGISTRATION | GST RETURN FILING

What is composition scheme under GST?

The composition scheme simplifies the way you pay taxes and file returns. In India if you are in business of goods trading/manufacturing and if you have a restraint turnover of which is less than INR 1 crore you can take the composition scheme.

Under this scheme tax rate is not the normal GST rate. It is 1% (for trading/manufacturing of goods) or 5% (for restaurant). In composition scheme you cannot take input tax credit.

What is e-way bill?

E-way bill is compulsory to move goods from one place to another in a case where goods value exceeds INR 50000. E-way bill can be generated through. https://ewaybill.nic.in/

What is reverse charge mechanism?

Unlike in a normal way where person selling product or services collects and pay gst, under reverse charge mechanism person who purchase product or services is liable to collect and pay gst. Reverse charge is applicable of specific products or services as notified by the Government. The tax rate is same as applicable in regular gst transactions.

STATUTORY AUDIT

STATUTORY AUDIT OF FINANCIAL STATEMENTS OF COMPANY

The audit is an independent examination of the financial statements of an organization by an auditor. It is conducted to ensure that the financial statements represent a true and fair view of the financial position of the organization. Auditor presents the independent auditor’s report to the stakeholders of the company. There are various types of audit which are conducted in India. However, some audits are mandatory and some audits are voluntary.     

Statutory Audit is a type of audit which is mandated by a Statute or Law to ensure a true and fair view of the financial statements of an organization is presented to the regulators and the public. Statutory audit is to be conducted by qualified Chartered Accountants who are independent of the Business. Further, the independent auditor’s report prepared by the Statutory Auditor on his/her findings must be presented in the format prescribed by the regulator.

  • Statutory Audits can be mainly classified into two types of audits i.e. company audits and tax audits.
  • Company Audit is governed by the Companies Act, 2013 and every company, irrespective of its turnover or nature of business or capital must have its book of accounts audited each financial year.
  • And, the books of accounts of a Limited Liability Partnership (LLP) must be audited if it has an annual turnover of Rs.40 lakhs or more or capital contribution of Rs.25 lakhs or more.
  • Tax audit, on the other hand, is required for a certain class of taxpayers who exceeded a certain threshold of turnover or receipts. Tax audit is governed by the Income Tax Act, 1961.
Company Registration

Statutory Auditor Appointment:

  • Statutory auditor appointment will be made for five years and form ADT-1 will be filed for a 5-year appointment. The company auditor appointment can also be made for a period of 1 year, renewable at each annual general meeting.
  • Although the appointment of statutory auditor is made for a term of five years, the company will have to place the matter for ratification at every AGM. Members will have to ratify the appointment of such Auditor in Every AGM by passing an Ordinary Resolution.
  • The first statutory auditor appointment is to be made within one month from the date of incorporation of the company in the first board meeting.

Related Blog – All you need to know about Company Registration as a startup

For audit services you can contact professionals through CAONWEB.

FAQS

What does a Chartered Accountant do?

A Chartered Accountant provides consultancy about accounting, taxation, auditing, and, other matters. He/she also conducts the audit of financial statements of your organization as per the applicable law and provides an independent auditor’s report. 

What is Auditing and why it is necessary?

Auditing is an independent examination of the financial statements of an organization by an auditor. It is conducted to ensure that the financial statements represent a true and fair view of the financial position of the organization and accurate financial information can be provided to the management, shareholders, and investors. He prepares the independent auditor’s report which contains the summary of the examination of financial statements carried by the auditor.

GST Registration

What is the maximum period for which an individual CA or a CA firm can serve a company as an auditor?

An individual CA can serve for a term of five years and a CA firm can serve for two terms of five years as an auditor to a Company.

What if at any AGM appointment of an auditor is not ratified by the members?

If the company auditor appointment is not ratified by the members of the company, The Board of Directors shall appoint another Individual or Firm as its auditor. It will be considered as casual vacancy.