Impact of GST on Export of Goods and Services

Impact of GST on Export of Goods and Services

Company Registration

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.

Accounting & Auditing Services

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.

Company Registration

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.

Accounting & audit Services

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.

APEDA Registration_ Procedure of filing & tracking status (1)

APEDA Registration: Procedure of filing & tracking status

APEDA Registration:

Agricultural & Processed Food Products Export Development Authority or APEDA is established in 1985 for the development and promotion of export of scheduled products.

Under the APEDA Act, every person shall apply to the Authority to be registered as an exporter of the Scheduled product or Scheduled products before the expiration of one month from the date on which he undertakes export of such products. The Authority can also extend the time-limit for registration by such period as it thinks fit if there is sufficient reason.

APEDA Registration Process:

You should take the help of professionals for APEDA online registration and you can easily find such professionals through our online platform of CAONWEB.

Company Registration

The APEDA Registration process includes the following steps:

Step 1: Click on Register as member link on the home page of APEDA Website.

Step 2: Then the exporter requires to enter the basic detail, IE Code, Email ID & Mobile number and submit.

Step 3: An OTP for confirming the details will be sent on E-mail and Mobile number. The exporter should enter the OTP of mobile and E-mail on the verification screen to verify both and click on Submit to proceed for the application.

Step 4: After verification confirmation, the exporter will require to fill the online application and upload the required APEDA registration documents. APEDA registration documents should be in the JPEG, PDF or PNG formats only.

Step 5: Online application can be completed in one or more sessions by revisiting the website using the assigned OTP of E-mail and Mobile. The exporter can edit the filled data until online payment is not made.

Step 6: The exporter may submit registration fees of ₹ 5000 excluding taxes may be made through any of the following modes:-

  • Online by Credit Card and Debit Card 
  • Offline by Demand draft in favor of “APEDA” payable at respective cities of APEDA offices.

Step 7: After completion of Payment process an application number will be generated for future reference.

Step 8: On issuance of RCMC, Login detail is sent to the registered email of the exporter. The Exporter may log in to their account through the “Exporter Login” link given at APEDA website.

Step 9: The exporter can view the status by clicking the “Track Application” link.  

Step 10: Exporter is required to monitor the status as informed above at Step 10 as in case of any shortcoming observed in the application the exporter will require to resubmit the document online.

Step 11: After the approval of RCMC from APEDA officials, the exporter may take a printout of their Certificate through their APEDA Login.

GST Registration

Documents required for APEDA Registration:

  • Self-certified copy of Import-Export code or IEC issued by D.G.F.T.
  • List of Directors or Partners or Proprietor on the letterhead in triplicate.
  • Copy of partnership deed attested by a notary of Private or Public Limited Company(s) or societies should forward a copy of their Memorandum and Article of Association and Partnership firms.
  • Self-certified copy of Permanent Account Number or PAN issued by Income Tax Department.
  • If you want to register as Manufacturer Exporter, they should furnish a self- attested copy of the registration of the company with the relevant certification agencies for the specified products.
  • Bank certificate duly signed by the Authorities.
  • Canceled Cheque of the firm

If you want more information about APEDA registration process and documents required for it, then you can contact professionals through CAONWEB.      

FSSAI Registration

FAQS:

What are Schedule products?

Schedule products are those products which are specified under the APEDA Act, for example:

  • Fruits, Vegetables and their Products
  • Meat and Meat Products
  • Poultry and Poultry Products
  • Dairy Products
  • Groundnuts, Peanuts, and Walnuts
  • Honey, Jaggery and Sugar Products
  • Cocoa and Cocoa products, chocolates of all kinds
  • Alcoholic and Non-Alcoholic Beverages
  • Cereal and Cereal Products
  • Guar Gum
  • Floriculture & Their Products
  • Herbal Medicinal Plants

What are the benefits of APEDA Registration?

Benefits of APEDA Registration are:

  • It is mandatory for exporters of scheduled products
  • It is a one-time Registration
  • It enables exporters to apply for financial assistance schemes of APEDA
  • It enables registered members to participate in training programs organized in various aspects of the Industries for scheduled products
  • And, it also provides guidelines to exporters about the various  products and countries for export

What are the financial assistance schemes provided by APEDA?

APEDA provides financial assistance to its registered member exporters under these schemes:

  • Scheme for Market Development
  • Scheme for Infrastructure Development
  • Scheme for Quality Development
  • Scheme for Research and Development
  • Scheme for Transport Assistance

Is it mandatory to get APEDA registration for exports?

Yes, it is mandatory to get APEDA registration for exports.   

How to apply for APEDA online registration?

You can easily apply for APEDA registration through our online platform of CAONWEB by following these steps:   

  • Step 1: Go to CAONWEB site and choose professionals and required service and submit your details.
  • Step 2: Our team will contact you and guide you about Online APEDA registration procedure and APEDA Registration documents. 
  • Step 3: Then you are required to submit the required information and APEDA Registration documents.
  • Step 4: We will process your APEDA Registration documents and complete the APEDA registration procedure.
  • Step 5: And your APEDA Registration Certificate will be issued online easily within very reasonable APEDA Registration fees.

What is APEDA Registration fees quoted by CAONWEB?

On CAONWEB, you can find the best professionals providing APEDA online registration services in very reasonable APEDA Registration fees.

Are you a salaried Taxpayer? You need to be alert with recent changes in Form 16!!

Do you know that Form 16 has undergone some changes? Yes, there are changes in Form 16 which are a TDS certificate you receive from your employer. The revised  format for Form 16 was notified by the Central Board of Direct Taxes (CBDT) via a notification dated 12th April 2019. The format specified will come into effect from 12th May 2019 So employers would have to follow the revised format after this date.

You need to be alert with recent changes in Form 16

Changes:

Nature of tax-exempt allowance should be separately disclosed:

The Old Form 16 contains the aggregate amount of salary and deduction. It will become more specific now where New Form 16 will have a list of specific detail of allowances on which employee is not required to pay any taxes. This is in line with ITR 1 which needs more disclosure now.

Additional income disclosure in New form 16:

In the old form 16, there used to be a row for any other income other than salary which employer could adjust and deduct TDS accordingly. The new one has a change where an employee can now specify any other income other than salary for house property or for other sources only. Other than these two (house property and other sources), now employee needs to deduct tax if any directly and cannot submit it to the employer so that he deducts the TDS adjusting those sources.

"FSSAI""

Additional row for standard deduction has been separately provided

These changes have been introduced in form 16 to keep it on the same line with the changes that came in Income Tax return Forms as notified by CBDT for AY 2019-20. The incorrect refund claimed by a large number of taxpayers in the last years was also one of the reasons which pushed the Government to bring more disclosures from taxpayers. The changes bought in Form 16 will make it easier for the Indian Tax department to spot discrepancies if any between revised form 16 issued by the employer and the details filled up by the employee.

Is this a positive change?

Yes it is definitely a positive change as it will reduce the false claim of refund by salaried taxpayers, which was a big loss for Government as ultimately it was a burden to actual taxpayers’ pocket. Now the department will find it smooth to cross-check the discrepancies in taxpayers claim and form 16 thereby helping reduce false cases.

Click here to watch Video on recent changes in ITR Forms

MISTAKES TO AVOID WHILE FILING INCOME TAX RETURN (1) (1)

Mistakes to avoid while filing Income Tax Return

Income Tax India e-filing:

Income Tax is a tax that the government imposes on income generated by businesses and individuals. And, an ITR is a form in which a taxpayer furnishes information about his total income and tax payable on that income to the IT Department.

In India, the ITR is filed online and the process of submitting your income tax return online is known as e-filing or electronic filing. For income tax return filing in India following steps to be followed:

Step 1: Register yourself on the IT Department’s online tax filing site (incometaxindiaefiling.gov.in).

Step 2: Choose how you want to e-file as there are two ways of e-filing your ITR. One is to go to the download section and select the required income tax return form, download it and fill all the details offline and then upload it back on the site. And, second is to fill the income tax return form online by selecting the quick e-file option.

Step 3: Select the required income tax return form.

Step 4: Keep all the documents ready: Keep your PAN, Form 16, interest statement, TDS certificates, details of investments, insurance and home loans handy. 

GST

Step 5:  Fill the income tax return form and upload: If you choose to fill the form offline, then after you have downloaded the form and fill all the details, click on generate XML. Then go to the IT website and click on the upload XML button. You will have to first log in to upload the XML file and click on submit. 

Step 6: Verify ITR V: The tax filing process is incomplete and ITR is invalid unless your ITR V is verified. For verification of ITR-V, you can electronically verify or mail the signed ITR V to the processing center in Bengaluru within 120 days of filing the return.


Mistakes to avoid while filing ITR:

         You should file your income tax return carefully because improper income tax return filing can bring troubles in the form of penalty & notices from the IT department. You can also, take help of top Chartered accountants in India for online income tax return filing by using online CA services to avoid any penalty & notices from the income tax department.

To make things easy for you, we are here explaining common mistakes to avoid while online income tax returns filing:

1) Selecting the incorrect form:

A taxpayer must file ITR using the correct form as if he file ITR using the incorrect form, the return will be considered as defective and he has to file a revised ITR using the correct 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) Furnishing incorrect personal details:

A taxpayer must furnish correct personal details and 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.

3) Not reporting 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 ITR.

4) Not reporting interest incomes:

A taxpayer must report all the interest incomes received 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.

5) Not reporting 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 ITR with income from the current job.

6) Not reporting tax free incomes or exempt income:

A taxpayer must report all his incomes even if some is tax-free. These exempt incomes are to be reported in the ‘Exempt Income’ schedule of the ITR.

7) Not clubbing incomes:

A taxpayer must club income of specified persons to his own income and tax payable by him is calculated on the total of these two incomes. The income of the minor child is added to the income of his/her parent and parent can claim exemption of Rs.1500 or income of minor so clubbed, whichever is less.

8) Not Reconciling TDS with Form 26AS:

A taxpayer must check the details of all the income details, 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.

9) Not Paying Advance Tax/ Self-Assessment Tax:

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.

10) Not Verifying ITR V on time:

After e-filing your ITR, 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 common mistakes to avoid while online income tax return filing. To understand in detail you can also consult top tax consultant in India and top Chartered accountants in India by using our online CA services through CAONWEB.

File Income Tax Return Form

FAQS:

1)    For whom Income Tax Return filing is compulsory?

In the following cases income tax return filing is compulsory:

Ø Any private, public, domestic or foreign company located and/or doing business in India whether having profit or loss or nil income.

Ø Any firm including LLP or Unlimited Liability Partnership.

Ø Any resident having any asset located outside of India (might include any financial interest in any entity as well) OR any resident who retains signing authority for an account which is based outside India whether or not having income chargeable to tax.

Ø Individuals, HUF, AOP or BOI and artificial juridical persons having total income (or the total income of any other person in respect of which he is assessable under income tax act) during the previous year exceeds the basic exemption limit before giving effect to the provisions of Chapter VI-A.

2)    What is the due date of online income tax return filing for FY 2018-19?

The ITR due date is 30th September 2019 forCompany, a person other than a company whose accounts are required to be audited and a working partner of a firm whose accounts are required to be audited. And, the ITR due the date is 31st July 2019 forany another assessee.

3)    What if a person furnishes the return of income after the ITR due date or does not furnish the return of income?

Where a person furnishes the return of income after the ITR due date or does not furnish the return of income than the simple interest of 1% per month or part of the month is payable. However, if he/she has paid taxes in full on or before the ITR due date interest is not levied.

Also, where a person fails to furnish a return of income within the prescribed time limit he shall pay, by way of fee, a sum of-

a)    Rs.5000, if the return is furnished on or before the 31st December of the A.Y.

b)    Rs.10000 in any other case

However, if the total income of the person does not exceed Rs.5 lakhs, the fees payable shall not exceed Rs.1000.

4)    How I can file income tax return online?

You can do online income tax return filing either directly or you can also take help of professionals by visiting our website of CAONWEB. You have to follow these simple steps:

Ø Step 1: Go to CAONWEB site and choose professionals and required service and submit your details.

Ø Step 2: Our team will contact you and guide you about online income tax return filing and documents required for it. 

Ø Step 3: Then you are required to submit the required information and documents.

Ø Step 4: We will process your documents and complete the filing process.

Ø Step 5: And your income tax return will be easily filed online.          

5)    What are the different types of Income Tax Return Forms available for Income Tax India e filing?

Income Tax Return Forms for Income Tax India e filing:

Ø ITR 1‐ Applicable to individuals being a resident (other than not ordinarily resident) having total income up to ₹ 50 lakh, having income from salaries, one house property, other sources ( interest, etc.), and agricultural income up to ₹ 5,000. [Not for an individual who is either director in a company or has invested in unlisted equity shares]

Ø ITR 2‐ Applicable for Individuals and HUFs not having income from profits and gains of business or profession

Ø ITR 3‐ Applicable for individuals and HUFs having income from profits and gains of business or profession

Ø ITR 4‐ Applicable for individuals, HUFs and firms (other than LLP) being a resident having total income up to ₹ 50 lakh and having presumptive income from business and profession. [Not for an individual who is either director in a company or has invested in unlisted equity shares]

Ø ITR 5‐ Applicable for persons other than Individual, HUF, Company and, Person filing Form ITR‐7

Ø ITR 6‐ Applicable for companies other than companies claiming an exemption under section 11

Ø  ITR 7‐ Applicable for those persons including companies who are required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F)

ALL ABOUT COMPANY REGISTRATION IN INDIA

ALL ABOUT COMPANY REGISTRATION IN INDIA

If you are planning to start business in India, the first & foremost step is to establish the legal presence of your business in India by registering your business in accordance to the applicable provisions of Companies Act, 2013.

As a Startup, you have various alternatives to incorporate your business like Sole Proprietorship, Partnership Firm, One Person Company, Limited Liability Partnership, Private Limited Company, and Public Limited Company. It is mandatory to register your business before starting any business. The first step is to decide the type of business structure you want to choose for your business among different types of business structure available in India. 

Private Limited Company is the most popular type of business structure in India. The Company registration process is online and for registering a private limited company, a minimum of two shareholders and two directors are required.

Company Registration

Advantages of registering a Private Limited Company in India:

You should incorporate your business as a Private Limited Company as there are various benefits of the Private Limited Company incorporation:

Separate legal identity– Private Limited Company is a separate legal entity from its members in the eyes of law and due to this the distinction, the members of the private limited company are responsible only for those actions which are undertaken by them and not by other members.

Limited Liability– Members of the private limited company have limited liability to the extent of their share in the company and personal assets of members cannot be utilized for the payment of the liabilities of the company under any circumstances.

Perpetual succession– Private limited company is formed as a separate corporate entity in the eyes of the law. And, the life of the company does not come to an end even with the death of all members and the life of the business continues.

Easy and free transferability of shares– Members can easily transfer the shares of the private limited company as they have to simply file and sign the share transfer form and give it to the buyer of shares along with share certificates.

Raising the foreign investment– In the private limited company, any NRI or foreigner can make an investment without government approval. Thus, the raising of foreign investment is easier in this form of the company than others.

 How to register a Company in India?

If you are worried about how to register a company in India, then you can easily register a Private Limited Company in India online with the help of professionals providing online CS and CA Services through our the online platform of CAONWEB.

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

In order to help our clients in online business registration in India, we at CAONWEB provide you a platform in the form of online directory of CA, CS, Advocates & other professionals wherefrom you can choose the best Company Secretaries having expertise in all types of business Registrations in India like private limited company registration, One Person Company Registration, MSME Registration, etc. 

 Steps for registering a Private Limited Company in India:

For private limited company registration in India, you have to follow easy steps which are explained in detail below:

Step 1: Obtain a Digital Signature Certificate:

The first step is to get the Digital Signature Certificates (DSC) of the person involved. The requirement of DSCs arises for filling of e-forms on the online portal of the Ministry of Corporate Affairs (MCA). Digital Signature Certificate, which is commonly known as DSC is issued by the Certifying Authority in token form and is valid for 1 or 2 years.

The personnel involved in company formation in India are Subscribers and Directors for the proposed company. The Subscriber is the promoter of the company and proposed shareholders. The said shareholders are required to file e-MOA and e-AOA by affixing DSCs whereas proposed directors shall obtain DIN by making an online application in the next step.

List of Documents for Digital Signature Certificate:

·         Passport size photograph of the applicant;

·         Self-attested Address proof of the applicant; and

·         Self-attested PAN card of the applicant.

Step 2: Obtain Director Identification Number

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

The DIN obtained can also be used for an appointment for any other company and appointment as Designated Partner in the LLP.

List of documents required for Director Identification Number:

·         Passport size photograph of the applicant;

·         Self-attested Address proof of the applicant; and

·         Self-attested PAN card of the applicant.

Step 3: File for Name Approval

There are 2 options for the name approval:

Option 1: Apply for name approval via RUN (Reserve Unique Name) form.

Option 2: Apply for name approval via SPICe form (INC-32).

Step 4: File SPICe Form (INC-32)

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

·        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 in the SPICe Form (INC-32) is correct.

Related Blog->HOW TO REGISTER COMPANY IN DELHI?

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

e-MoA refers to an 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 only have to download it, affix digital signatures and upload both forms on the MCA portal.

GST Registration

Documents required for registering a Private Limited Company in India:

A. Where director and subscriber are Indian Nationals

  • An Affidavit on a Stamp Paper, which is to be given by all the subscribers of the Company to state their willingness to become the shareholders of the Company
  • Proof of office address – Rental Agreement
  • Copies of utility bills which should not be older than two months
  • Copy of approval in case the proposed name of the company contains any word(s) or expression(s) that require approval from central government
  • If the name you proposed for your company is based on a registered trademark or is a subject matter of an application pending for registration under the Trade Marks Act, then you have to mandatorily attach the trademark registration certificate or trademark application copy
  • NOC from the owner of the property
  • In the case of subscribers/ Director does not have a DIN, it is mandatory to attach, proof of identity and address proof of the subscribers

B. Where director/subscriber is a foreign National

  • Passport
  • Address proof which can be driving license, residence card, bank statement, or a form issued by Government

Registered office proof of the company which can be registered document which shows the title of the premises in the name of the company or notarized copy of lease deed or rental agreement

About the new concept of one person company:

One Person Company is a new concept introduced by the Ministry of Corporate Affairs which allows a single entrepreneur to operate a corporate entity with limited liability protection.

OPC Registration makes the entrepreneur a separate legal entity distinguished from the company and have limited liability. And, the company has its own assets and liabilities, the promoter and their property is detached and not personally liable to repay the debts of the company.

You can contact professionals through CAONWEB for all type of business Registrations in India like a private limited company registration, One Person Company Registration, MSME Registration, etc. and other legal & regulatory compliance CS and CA Services in India.

FAQS:

1.     What are the types of Companies that can be registered in India?

The types of Companies that can be registered in India are:

One Person Company

Private Limited Company

Public Limited Company

Section 8 Company

2.     Can I register a Private Limited Company on home Address?

Yes, you can register your Private Limited Company on your home address.

3.     Can I register my family members as directors or members of the company?

Yes, you can register your family member as a director or members of the company and on a later stage, you can change this or transfer the shares.

4.     How many days are required to register a Private Limited Company?

Minimum 10-15 days are required to register Private Limited Company. The time required also depends on relevant documents provided by the applicant and speed of approvals from the government.

5.     How much does it cost to register a Private Limited Company?

The cost to register Private Limited Company depends on various factors like Number of directors and share capital of the company, form filing fees, and Consultancy fees of Professionals like CA, CS Directory and lawyers.

6.     Can an NRI or Foreign National become a director or shareholder in a Private Limited Company in India?

Yes, an NRI or Foreign National can become a director or shareholder in a Private Limited Company in India.


How Should You Pay Income Tax

How Should You Pay Income Tax?

The Government of India levies income tax on all income as per the provisions of the Income Tax Act, 1961. The Government of India has several mechanisms through which it collects income tax from taxpayers like Advance Tax, Self-assessment tax, Tax deducted at source (TDS) and Tax collected at source (TCS).

Advance tax:

  • Income tax is to be paid in advance instead of a lump sum payment at year end if you have a total tax liability of Rs.10000 or more in a financial year.
  • If there is any default in the payment of advance tax, it will attract interest under section 234B and any deferment of advance tax will attract interest under section 234C.

Self-Assessment tax:

  • You are required to calculate your final income tax liability at the time of online income tax return filing after deducting TDS and advance tax paid during the year.
  • This final liability is known as self-assessment tax and has to be deposited with the Government, before online income tax return filing.
Company Registration

Tax deducted at source:

  • Tax Deducted at Source (TDS) is an indirect way of tax collection by the government.
  • As per this concept, a person who is liable for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment to any other person and remit the same into the account of the Central Government.
  • The deductee from whose tax has been deducted at source would be entitled to get the credit by online income tax return filing on the basis of Form 26AS or TDS certificate issued to him by the deductor.

Tax collected at source:

  • Tax collected at source (TCS) is similar to TDS, except that it is levied on the sale of specific items as listed in Sec 206C of the Income Tax Act, 1961.
  • The seller collects tax from the buyer, at the specified rates and has to deposit the amount to the credit of Central Government.
  • The buyer from whom the Tax has been collected will get the credit of the amount on the basis of certificate issued by the tax collector.
GST Registration

How to pay income tax?

Income Tax can be paid both through the internet (online or e-payment) and at designated branches of banks empaneled with the Income Tax Department (offline). 

Following steps are to be followed to pay tax online:

Step-1

To pay taxes online, log in to http://www.tin-nsdl.com > Services > e-payment: Pay Taxes Online or click here on the tab “e-pay taxes” provided on the said website. Provide a proper link of e-payment.

Step-2

Select the relevant challan i.e. ITNS 280.

Step-3

Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head under which payment is made, the address of the taxpayer and the bank through which payment is to be made, etc.

Step-4

If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name as per the master will be displayed on the confirmation screen.

Step-5

On confirmation of the data, you will be directed to the net-banking site of the bank.

Step-6

You have to log in to the net-banking site with the user id/password provided by the bank for net-banking purpose and enter payment details at the bank site.

Step-7

On successful payment of the tax, a challan will be generated containing CIN, payment details and bank name through which e-payment has been made.

You can either do online income tax return filing yourself or take help of professionals through our online platform CAONWEB. And, if you have any queries relating online income tax payment, online income tax return filing, income tax return form and ITR due date then you can also contact professionals through CAONWEB.