INTERNAL AUDIT

Why is Internal Audit Important for Your Company in India?

INTERNAL AUDIT

Internal audit process is executed in every company irrespective of its size and under which segment it is operating. Internal audit process helps in keeping an internal checks & balances on the company policies & management including corporate governance and accounting processes associated. Internal audit process also ensures that the company is complying with the rules & regulations, laws, financial reporting standards etc.

Various benefits of implementing Internal Audit in your company

  • Operational efficiency: without keeping checks and balances on the operational process of the company one would not be able to figure out the extra time and cost which will bring in the efficiency in the company’s functioning. By following Internal Audit Process one could ensure that no such unnecessary cost which is creating a burden on the company.
  • Effective production: Cutting on the extra cost which is sometimes included during the production process is a wise decision. This will bring in economies of scale in the production process and will also help in attaining the break-even point very easily. Internal audit will help in identifying the glitch in the production process and minimise the same in future processes.
  • Confident stakeholders: Report of internal audit boosts the confidence of all the stakeholders. A stakeholder is confident when the internal audit assures that all the risks are being evaluated and appropriate measures are being taken. This clearly demonstrates that the executive management & the board of directors are managing the organisation effectively on behalf of the stakeholders.
  • Quality check: Auditing & assurance service also ensures that a quality check is done before the final product is displayed. Internal audit ensures that the product is as per the standards specified by the company. Quality standards of the product must be met so as to ensure customer satisfaction which will ultimately lead to strong goodwill of the company.
  • Reliable corporate governance: Internal audits evaluate a company’s internal controls, including its corporate governance and accounting processes. Internal audit helps in identifying the problem at the very primary stage at the company level because if any fault is found at the external audit then it might create some serious issues for the company. Therefore it is advisable to conduct a balanced internal audit process primarily involves identify the problems and take corrective steps for the same.

Read other blogs: Nidhi Company in India – It’s Features, Advantages & Disadvantages

  • Risk evaluation: Management must identify the stages which are associated with the risk and how will they impact their company at large. Internal audit must be able to anticipate future concerns which will affect the company and its production and provide assurance & advice.
  • Ensures the compliance of laws: There are various laws which every company has to comply with. If you are running a company then you must comply with the company act, 2013, if you are a manufacturing house then you must comply with the factory act regulations. This is ensured by conducting an internal audit being done by a company’s auditor.

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Know all about Digital Signature Certificate

Know all about Digital Signature Certificate

What is Digital signature certificate (DSC)?

Digital signature certificate (DSC) provisions are regulated under Information & technology act, 2000. This is the most authentic and secures way of uploading a document electronically.

Digital signature certificate (DSC) is a way of signing a document electronically. In the era of internet where everything is present online, it is need of the hour to make these transactions fully authentic and Digital signature certificate (DSC) is the right choice for that.

Digital signature certificate (DSC) authenticates the identity of the sender or signer of the document and the sender cannot easily disclaim it later on.

Digital signature certificate (DSC) includes following information about the user:

  • User Name
  • Pin code
  • Country
  • E-mail address
  • Date of issuance certificate
  • Name of certifying authority

Read other Blogs: How to Register a Trademark & What Cannot Be Trademarked In India?

How Digital signature certificate (DSC) is useful?

  • Reduce cost & time: One can digitally sign the documents and send them much more quickly as compared to physically signing and delivering the documents to the concerned person. The Digital Signature certificate (DSC) does not demand the physically presence of Signature holder to conduct or authorize a business.
  • Integration of data: Once signed, it’s difficult to edit or change the document content which makes it safe & secure. Many times when there is any investigation going on and you are required to present the proof, then digitally signed documents acts as a full proof.
  • Documents authenticity: Digital signature certificate (DSC) minimises the chances of a document being forged. Hence the authenticity of a document is restored in case of any discrepancy. An original signature holder is the rightful person to authenticate the documents.
  • Statutory compliance: There are certain circumstances where it is compulsory to have a Digital signature certificate (DSC). For instance those entities that are required to get their accounts audited or income tax return by a certified professional have to compulsorily do it using a digital signature certificate (DSC). Furthermore certain departments has made it compulsory to use electronic signature such as, Ministry of Corporate Affairs (MCA) has made it mandatory for companies to file annual reports, applications and forms using a electronic signature and under GST registration a company can get registered only by verifying the GST application through an electronic signature.

Read more: Nidhi Company in India – It’s Features, Advantages & Disadvantages

FEATURES OF DIGITAL SIGNATURE CERTIFICATE

  • Legal Limitation: One can use only the valid electronic signature issued to him/her by the authorities. Using someone else’s electronic signature is illegal and is considered as a civil offence. This legal bar is not only on those who have their electronic signature with the authorities but all those who don’t have any digital signature.
  • Certification agencies: Under the provisions of Information technology act, 2000 controller of certification agencies (CCA) is the rightful authority to authorise the certification agencies for issuing digital signature certificate (DSC). Accordingly section 4 of IT Act, 2000 has specified nine agencies that are authorised to issue DSC.
    • National informatics centre (NIC)
    • IDRBT
    • Verasys
    • Capricorn
    • NSDL
    • C-DAC
    • E-MUDHRA
    • (n) Code solutions CA
    • Safecrypt CA, Sify communication ltd.
  • Categories of Digital Signature Certificate (DSC): There are three (3) categories of DSC which is issued by the certifying authorities above:
  • Class I – Issued to business personnel or private individuals. This authorises that the information mentioned by the subscriber does not conflict with that already mentioned in consumer database. Data compromise risk is not significant.
  • Class II – Issued to business personnel or private individuals. Relevant where the risk of fraudulent activity or data compromise if moderate in nature.
  • Class III – Issued to Individuals as well as organisations. Relevant where the data security is of utmost priority and failure of security services in high.
  • Cost/Price of DSC: It includes the cost of medium, the cost of issuance of DSC and the renewal cost after the period of validity. Company representatives and professionals are free to procure DSC from any Certification Agencies as per the MCA portal. The issuance cost varies from agency to agency and are primarily derived from market forces.

Also Read This: FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA

HOW TO APPLY FOR DIGITAL SIGNATURE CERTIFICATE (DSC) & DOCUMENTS REQUIRED?

  1. Approach anyone of the above mentioned certifying authorities.
  2. Carry original documents & self-attested copies of the same.
  3. Using Aadhar card E-KYC based authentication (no supporting documents required in this case)
  4. Letter/certificate as certified by the bank managers containing the DSC applicant information as retained in banks database.
Trademark registration

How to Register a Trademark & What Cannot Be Trademarked In India?

Trademark registration is regulated under the rules and regulation specified Trademarks act, 1999. Trademark registration gives an individual advantage over its competitors in the market. It also gives your product a legal representation, uniqueness from competitors, helps in creating a brand value. This unique identification is given in the form of certain word, logo, symbol, character, numerals or a combination of these.

WHAT IS TRADEMARK?

Trademark could be a symbol, word, numerals, colour combination, label or a mix of all, which is used by business to differentiate its products from that of its competitors in the market.

WHO AUTHORISES TRADEMARK

In India, a trademark is authorised by controller general of patents designs & trademarks under ministry of commerce & industry, Government of India. Trademark gives its owner the right to sue for loss of infringement, misuse of its patented trademark.

If your trademark is similar to existing registered trademarks or it is offensive in nature or unreliable then it could not be registered.

WHO CAN APPLY FOR TRADEMARK REGISTRATION

An application for trademark registration can be applied by:

  • Individuals
  • Private companies
  • Limited liability companies
  • Public limited companies
  • NGO

ADVANTAGES OF TRADEMARK REGISTRATION

There are various advantages which are related with trademark registration, some of them are discussed below:

  • Brand Protection: Creating & managing brand of your business is necessity but providing it due protection is something one should also focus at while creating a brand. This can be provided by registering it with Intellectual Property Rights Registrar .
  • Goodwill: It is something which requires continuous hard work, a sense of trustworthiness with a brand, a reputation which a particular brand possesses in the market. This is a quantifiable asset which can be redeemed while it is being sold.
  • Product Differentiation: To differentiate your product from the competitors in the market, it’s required that you must differentiate it from the competitors. This can be done easily by Trademark registration.
  • Recognition to product/service: Trademark registration of product provides it due recognition amongst the category; product is falling under.
  • Quality Assurance: While developing the product/service one must give priority for its quality and this can be done if the product has a due certificate for it.
  • Prevent unfair trade practices: once you have registered under trademark registration act, no other company/competitor can use your logo, symbol which you have registered under your name.
  • Legal proceedings: If any person tries to use the trademark of product without the permission of the registered owner, then legal proceedings can be started in the court of law against the individual doing so.
  • Edge over competitors in market: Getting your product/service registered under trademark registration act, will certainly give you an edge over your competitors in the market
  • Additional brand presence in the market
  • Less volatility in business
  • Easy market penetration
  • Competent brand value

TRADEMARK REGISTRATION PROCESS

  1. Prepare a list of prospective name that would represent your brand.
  2. Supporting documents to be submitted with the trademark application form.
  3. Filing an application for trademark registration. There are two ways for making an application-
  4. Offline mode: you will have to personally move an application to the registrar office of trademarks in major cities such as New Delhi, Kolkata, Mumbai, Chennai etc. It will take around 15-20 days for you to receive the acknowledgment receipt.
  5. Online mode: Here in E-registration mode, you will receive the acknowledgment receipt instantly. Once you have received the receipt you can use the “TM” symbol beside your brand name.
  6. An application for trademark registration shall be made in Form TM-A and shall be signed either by the applicant or his agent.
  7. Examination of trademark registration application: Once you have applied and you have sent the application to the registrar, now he will examine whether you have followed certain conditions that you needs to comply with or not.
  8. Application for any miscellaneous function in respect of a trademark registration must be in format of Form TM-M.
  9. In the case of an application for trademark registration in respect of a large variety of goods or services, the Registrar may refuse to accept the application unless he is satisfied that the specification is justified by the use of the trademark which the applicant has made.
  10. Trademark registration certificate: If there is no opposition from anyone within the stipulated time period of 90 days, then registrar will accept your application and subsequently your trademark certificate will be issued.

To know more read: What is Trademark Registration Procedure In India?

DOCUMENTS REQUIRED FOR TRADEMARK REGISTRATION

While applying for trademark registration, following documents must be taken care of before making an application:

  • Proof of Applicant: The trademark owner or the person who is approved by the trademark owner requires presenting their identity proof. It can be your Aadhar Card, Driving License, Passport, Ration card or Voter’s ID.
  • Brand Name & Logo: Must contain name of the brand for which you are applying trademark registration.
  • Affidavit: One should submit the affidavit; it will give the authorisation for use of personal data.
  • MSME / Start-up Recognition: To get a substantial rebate on government fee a partnership firm/body corporate can submit a certificate of registration under MSME or Startup India.
  • Signed Form TM – 48: Form for authorisation of an agent.
  • PAN Card and Address Proof of Applicant

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WHAT CANNOT BE TRADEMARKED IN INDIA

Section (9) of the trademarks act, 1999 deals with the grounds on which trademark registration can be refused. Certain categories which can be devoid from trademark registration are:

  • Lost the distinctive identity of the product and cannot be able to distinguish it from other goods or service.
  • If it is of such nature that it deceive the public at large.
  • If it hurts the religious sentiments of any class or any senior citizen of India.
  • If it contains any obscene matter.
  • If its use is prohibited under emblems & name act, 1950.
Advance Tax

What is Advance Tax and Due Dates for Advance Tax Payment

What is Advance Tax?

Section (208) of the Income tax act, 1961 defines “Advance Tax” which means any tax that is paid before the end of the financial year. An assessee earning an income of more than Rs. 10,000 and above in a financial year is liable to pay advance income tax. Rather than receiving all the direct tax revenue at the end of the year, advance tax payment helps the government to meet its obligation on time.

DUE DATES FOR ADVANCE TAX PAYMENT

F.Y. 2019-20 for both Individual/corporate taxpayers

For the taxpayers earning income from any source (Salary, rent, business profession, capital gain etc.)

DUE DATE PERCENTAGE OF ADVANCE TAX
On or before 15th  June 15%
On or before 15th September 45%
On or before 15th December 75%
On or before 15th March 100%

For the taxpayers filing ITR under presumptive scheme (U/S 44AD or 44ADA)

DUE DATE PERCENTAGE OF ADVANCE TAX
On or before 15th March 100%

APPLICABILITY OF ADVANCE TAX

Advance tax is applicable on all tax payers whether you are a salaried professional or a freelancer or businessman.

Exception:

  • If your employer had already deducted TDS from your salary then you don’t have to worry for advance tax payment.
  • However, if such assessee has any other source of income viz. capital gains, house property & interest on investment, then he/she has to fulfil the advance tax liability condition.

FREQUENTLY ASKED QUESTIONS (FAQ’s)

What if advance tax paid is more or less than actual tax obligation?

  • If the advance tax paid is more than actual obligation then the excess amount will be refunded to your registered bank within the stipulated time by the Income tax department.
  • If the advance tax paid is less than the actual tax obligation then then assessee have to pay the remaining amount and the penal interest @1% per month may also apply on the outstanding amount.

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What if I miss the deadline of advance tax payment?

  • If you fail to pay your advance tax or the amount you pay is less than the mandated 30% of the total liability by the first deadline (September 25), you will be liable to pay interest on the amount, viz. 1% simple interest per month on the outstanding amount for three months.
  • The same would apply if you fail to pay the amount by the second deadline (December 15). Failing to pay the third and last instalment (March 25) would attract a penalty of 1% simple interest on the defaulted amount for every month until the tax is fully paid.

Read other blogs: TAX AUDIT LIMIT FOR BUSINESS/PROFESSION IN INDIA

How should I file advance tax for the current financial year?

  • Advance tax is paid just like any other tax payment by filing challan 280. Please follow the following steps to know more how the advance tax is filed:
    1. Login to NSDL –  click on “services”
    2. Then go to “e-payment”
    3. Select the relevant challan [In case of Advance tax select Challan 280]
    4. Enter other mandatory details such as PAN/TAN, address of the taxpayer and the bank through which the payment is to be made etc.
    5. On confirmation of the information so entered, you will be directed to the payments page.
    6. On successful payment a challan, a box will be displayed containing CIN, payment details and bank name through which online payment was made.

How to deposit advance tax with the government?

Advance Tax is to be deposited with the Government of India by using the challan prescribed in this behalf. The Challan can be downloaded from www.incometaxindia.gov.in & Tax can be paid in the designated banks by either of 2 modes viz. physical mode (cash/cheque) or online mode by using debit card or net banking. ​​In case anyone is not able to download challan even after the payment, then challan details will be updated in their form 26AS after a few days.

Related Blog – INCOME TAX EXEMPTIONS/DEDUCTIONS

FSSAI License in India

Essentials to Get FSSAI License in India for Restaurant

India is projected to have the largest food & beverages industry by 2020. So this is the responsibility of a central food authority i.e. FSSAI to lay down certain standards & rules which will help in regulating the food industry. Most Indians eat out once or twice in a month, they eat out on occasions in office and family. Due to the hectic routine of people, it is a way to be around with family or friends- to go out and eat in a restaurant. Therefore the market opportunity is increasing tremendously.

Getting a FSSAI License in India is necessary for all those business ventures planning to enter into the food/restaurant industry. FSSAI is a central institution responsible for laying down safety & security standards for articles of food and to regulate their manufacture, storage, distribution, and sale/import to ensure that quality products should reach the ultimate consumers.

Some essentials to get your FSSAI license are:

  • Food Licensing in India: One needs to have FSSAI License in India – There are three categories of the same and it depends on the nature of your business and turnover. Our experts at Caonweb are there to help you in the process of getting FSSAI License.
  • Shop & Establishment Act: A restaurant has to be registered under this act as is applicable in the concerned state. This act safeguards employee rights and working conditions.
  • Weights & Measures Department:  Approval for the weighing and measuring of instruments you use in the restaurant must be in line with the Weights & Measures Department.
  • Trade registration: For any kind of business you are doing. The local authority needs to be informed. There are formalities such as filling up application provided by them and getting their okay to start the business.
  • License for eating out: In the restaurant, it may not be closed door. If you will be providing eating out facility then you need to have a separate license for that as well. City or state police provides this facility. In mostly all cities this procedure can be done online.
  • Fire Security Certificate: All restaurants need to be secure against fire hence they need a NOC from the fire department of the city.
  • Lift Clearance: Restaurants in multi-story building premises need to ensure that the lift operations comply with safety norms. For this, an electrical inspector from the labour commission must give his approval certificate for the same.
  • Clearance for playing music/video:  This license is obtained from Phonographic Performance Limited or Indian Performing Right Society.
  • Environmental Clearance: An NOC from the Pollution Board of the city/state is required to ensure the restaurants activities do not violate pollution norms.
  • Business Insurance: Insurance for burglary, loss or damage due to fire, damage to property riot, strike and for various other factors.
  • Signage clearance: Obtaining the permission from the local civic bodies like Municipal Committee or City Corporation for putting a sign board of the restaurant is essential.

Read other blog: YOUR PAN CARD MIGHT BECOME INOPERATIVE FROM 01, JANUARY, 2020

FREQUENTLY ASKED QUESTIONS (FAQ’s)

Is FSSAI License in India mandatory for restaurant?

  • There are some FSSAI standard regarding hygiene & safety under which the food is prepared in the restaurant. Some related directly to the product while some relates to the premises of the restaurant.
  • Yes, it is mandatory for every restaurant to have FSSAI License in India either from the central authority or the respective state authority.

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What is the procedure to apply for FSSAI License in India?

  • Login with your user credential and select apply for license/Registration from the Tab License/registration and proceed. Follow the following steps
    • Select the state in which your restaurant is situated.
    • If your restaurant is located in more than one state, click “yes” or else “No”.
    • Proceed for next step.
    • Nature of business you are in.
    • Turnover & the installed capacity must be entered correctly.
    • Registered office address, business premise area, person in-charge of operation, person complying with condition of license and products details etc.
    • Upload the supporting documents (if required).
    • Payment of fees.
    • After signing the acknowledgment, upload the same on portal.

Who needs to register to get FSSAI License?

  • If you are a manufacturer or involved in repackaging of the product then select the product from the kind of businesses mentioned below:
    • Dairy manufacturing units (Incl. chilling unit).
    • Vegetable oil processing units (Incl. refined oil, edible oil or any fat producing product).
    • Meat processing unit/slaughtering unit.
    • All food units involved in relabeling/repacking of the product.

How much does it cost to register with FSSAI & how to pay its fees?

  • Central license: Payment via debit card/credit card/net banking
  • State license: Depends from state to state [Offline mode- challan/DD/Cash]
  • Approximate fees: INR 7,500+GST+Transaction or debit card charges if applicable.

How to check the application status of FSSAI License in India?

FDI in India

APPROVAL PROCESS FOR FDI IN INDIA

The proposals for FDI in India are processed according to the standard operating procedure (SOP) devised by the Department for the promotion of Industry and internal trade (DPIIT).

Following are the stages which are there in FDI approval process:

  • APPLICATION SUBMISSION: Preliminary stage to initiate a process of FDI in India is to submit the application in the prescribed format, which requires prior approval from several ministries via single window i.e. Foreign Investment Facilitation Portal (FIFP) working under the ambit of Department for promotion of industry and internal trade (DPIIT).
  • UPLOADING DOCUMENTS: There are certain other documents which need to be attested with the application form for FDI approval on the FIFP portal. These documents will help in verifying the application of the applicant.
  • ASSIGNING OF CASES: Within 2 working days, DPIIT will assign the cases.
    • In the case where the documents are digitally signed by the applicant, then physical submission of the same is not required.
    • In the case where the documents are not digitally signed, then the physical copy of the proposal is to be submitted to the Competent Authority within 5 days of such intimation.
  • CIRCULATION OF PROPOSAL TO VARIOUS DEPARTMENT: Since FDI in India is regulated under FEMA regulations, therefore, it is necessary to circulate a copy of the same to RBI to consider it in that perspective. Some additional departments such as External Affairs, revenue, and finance are also equally important, so the proposal must be shared with these departments as well.
  • SCRUTNIZAITON: Proposals are scrutinized within a week time and additional information must be served to department if required.
  • FINAL APPROVAL/REJECTION: On getting all required information, the Competent Authority is required to give out its decision in next two weeks. Approval/rejection letters are sent online to the applicant, consulted Ministries/Departments and DIPP.
    {Note: Where total foreign equity inflow is more than INR 5000 crore, then it is required to place the same in front of Cabinet Committee on Economic Affairs (CCEA).

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HOW WILL CAONWEB WILL HELP YOU?

When it is about managing funds which is brought in by the way of FDI then CAONWEB is the right choice you can opt for. Since bringing in funds by the mode of FDI in India is the most challenging part which every business planning to expand at an international level goes through. This is when CAONWEB comes into play. We at CAONWEB have the most experienced Chartered accountants & Company secretary who will look into all your FDI related queries.

Our FDI consulting services are immensely beneficial for setting up business in any sector which falls under the ambit of FDI. Broad category of FDI services we offer:

  1. Advisory for business expansion.
  2. Consultancy on FDI compliance.
  3. All round support for the type of venture one is planning to establish. For example: Joint venture, partnership company, private company
TAX AUDIT LIMIT FOR BUSINESS/PROFESSION IN INDIA

TAX AUDIT LIMIT FOR BUSINESS/PROFESSION IN INDIA

According to Section 44AB, Income tax act 1961 (As amended by finance act, 2017) accounts of persons carrying business/profession need to be audited.

Every person carrying on: –

Business Total sales/Turnover/Gross receipts exceeds INR 1 Crore in any previous year.
Profession Gross receipts exceeds INR 50 lacs in any previous year.
Business (Section 44AE  Section 44BB  Section 44BBB) Profits & gains from business are deemed to be the profits & gains of such person under the specified sections, and the person has claimed his income to be lower than profits of the business in any previous year.
Profession (Section 44ADA) Profits & gains from profession are deemed to be the profits & gains of such person under the specified sections, and the person has claimed his income to be lower than profits from the profession and his income exceeds the maximum amount not chargeable to income tax in any previous year.  
Business (Section 44AD-4) Provision of the section 44AD (4) Income tax act 1961, are applicable in his case and his income exceeds the maximum amount not chargeable to income tax in any previous year.

These previous year accounts must be audited by the accountant before the specified date and furnish the report duly signed & verified by such accountant including such particulars as may be prescribed.

Read other blog: STATUTORY AUDIT OF FINANCIAL STATEMENTS OF COMPANY

Who will not be covered under this section?

  • Person who declares his profits & gains in previous year as per section 44AD (1) of Income tax act 1961, and his total sales/turnover/gross receipts does not exceeds INR 2 Crore in any previous year.
  • Person whose income is in the nature specified under section 44AB/44BBA of Income tax act 1961.
  • Person who is required to get his accounts audited under any other law, then it shall be sufficient with provisions of this sections that person get accounts of such business/profession audited under such law before the specified date and further report by an accountant in the form prescribed under this section.

IMPORTANT SECTIONS RELATED WITH SECTION 44AB, INCOME TAX ACT

Section 44AE: Provision for computing profits/gains of business from plying, hiring or leasing goods carriages

Section 44BB: Provision for computing profits/gains in connection with business of exploration of mineral oils

Section 44BBB: Provision for computing profits/gains of foreign companies engaged in business of civil construction & various turnkey projects.

Section 44ADA: Provision for computing profits/gains of profession on Presumptive basis

Section 44AD (4): Provision for computing profits/gains of business on Presumptive basis

Section 44AD (1): A sum equal to 8% of total turnover/gross receipts of assesse in previous year OR a sum higher than aforesaid sum claimed to have been earned by assesse, shall deemed to be the profits/gains chargeable to tax under the head “Profit & gains from business/profession”

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FREQUENTLY ASKED QUESTIONS (FAQ’s)

Q. What is auditing?

A. Auditing is a process which comes into place once the whole process is completed. It creates checks & balance, review & inspection on the whole process. There are various types of audits for example: Cost audit, tax audit, company audit covered under cost accounting law, income tax law, and company law respectively.

Chartered Accountant conducting the Tax audit is required to furnish the report in the format (Form 3CA/3CB & 3CD) as prescribed in income tax law.

Q. What are the due dates of filing tax audit report?

A. According to section 44AB, every person who is required to get its accounts audited should get its audit report on or before due date of filing of return of income i.e. 30th September of following assessment year.

For example: tax audit report for the financial year 2017-18 must he furnished on or before 30th September, 2018.

Exception: International transaction/domestic transaction specified under section 92E, must file the audit report in format (Form 3CEB) on or before 30th November of the assessment year.

Related Blog: INCOME TAX RULES FOR FOREIGN NATIONALS IN INDIA

Q. Who will audit the books of accounts?

A. Chartered accountant authorised by ICAI are required to prepare and audit the accounts as specified by the Income tax act.

Q. What is the format of these audit reports?

Form 3CA: case where the accounts of the business or profession of a person have been audited under any other law

Form 3CB: Audit report under section 44AB of the Income -tax Act 1961, in the case of a person referred to in clause (b) of sub – rule (1) of rule 6G

Form 3CD: Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 PART – A

Form 3CEB: Report from an accountant to be furnished under section 92E relating to international transaction(s) and specified domestic transaction(s).

Q. What is the penalty in case of any delay in account audit?

A. If any person fails to gets his accounts audited for year(s), the Assessing officer (AO) can impose a penalty. The penalty shall be lower of the two:-

(1) 0.5% of the Total sales/Turnover/Gross receipts

(2) INR 1, 50,000

Q. If any person is required to get its accounts audited under any other law, then is it mandatory to get his accounts audited once again as per section 44AB?

A. No, Section 44AB categorically specifies that if any person get its accounts audited under any other law, then he does not have to comply with requirements mentioned under the section

chartered accountant firm

POPULAR CHARTERED ACCOUNTANTS (CA) SERVICE PLATFORMS IN INDIA

Whether you are an individual or a company, planning for your tax liabilities is a necessity. A rational tax advisor is a certified Chartered Accountant by ICAI. A good tax advisor can save you a considerable amount of funds in your pocket. They have the proficiency to understand the complex Direct Tax & Indirect Tax code.

Read More- 10 COMMON CHALLENGES FACED DURING ITR FILING

There are various chartered accountants in India helping all the budding entrepreneurs/new entrants in setting up their business. There are various services that a CA provides to their clients which help them & the Indian economy as well.

  • Investment Advise
  • Compliance laws
  • Timely filing of ITR, GST etc.
  • Bookkeeping
  • Auditing etc.
  • Company registration

 Some of the famous CA service platforms which provide multiple services to their clients are:

  1. Cleartax (https://cleartax.in/)
  2. Caclubindia (https://www.caclubindia.com/)
  3. Caonweb (https://www.caonweb.com/)
  4. Taxguru (https://taxguru.in/)
  5. Vakilsearch (https://vakilsearch.com/)

These are some of the best online service platforms that provide CA service online to their clients. In this globalized era where everyone is talking about removing the geographical barriers making it easy for potential customers to carry forward their business. In this modernized 21st century, taking the service directly in the hand of the customer, making the customers more aware of the recent financial update or anything will help them in taking their business forward.

Read more: Are you looking for a Chartered Accountant online in India?

Every company has a certain area of expertise in which they provide services. Depending on the type of service they offer, customer base, global presence, channel partners, etc. we would easily differentiate between the companies.

Among those companies mentioned above, CAONWEB is having one of the best service platforms which provide service not just specific to their existing clients but they also have a CA service platform where you can find a CA in your area even if you are not their customer.

WHAT IS MSME REGISTRATION FEES & Process_

WHAT IS MSME REGISTRATION FEES & PROCESS?

NO FEES is being charged by anyone, whosoever wants to register their organisation under MSME Act, 2006. Udyog Aadhaar or MSME Registration is made free by Government of India since 2016. You can visit the Udyog Aadhaar website and directly get your MSME registration done without paying for it.

MICRO, SMALL & MEDIUM ENTERPRISES (MSME): Driver of Indian economy

Over the years MSME has been a game changer and plays an important role in driving the economic growth of India. MSME has emerged as the most dynamic & vibrant sector for Indian economy. Irrespective the line of business you are in, be it manufacturing, servicing, registration can be obtained through MSME Act.

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What is Micro, small & medium enterprises (MSME)?

According to Micro, Small & Medium enterprise development act, 2006 MSME’s are classified in two broad categories:

1.    Manufacturing enterprise:  Engaged in production of goods which comes under the purview of Schedule (I) of Industries act, 1951 or which requires installation of plant & machinery in the formation of final product.

2.    Service enterprise: Engaged in providing or rendering services to individuals/corporates/groups of persons which requires equipment installation for the same.

The following enterprises are categorized depending on the Investment in plant & machinery/ service enterprise.

  MANUFACTURING ENTERPRISE SERVICE ENTERPRISE
Micro Enterprise Less than 25 Lakh Less than 10 Lakh
Small Enterprise 25 Lakh – 5 Crore 10 Lakh – 2 Crore
Medium Enterprise 5 Crore – 10 Crore 2 Crore – 5 Crore

What is the MSME Registration process?

Before getting into the step by step process of MSME registration one should be aware about the documents which are required to be attached with your application.

Company Registration | Startup Business

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DOCUMENTS REQUIRED FOR MSME REGISTRATION

Aadhaar card: Aadhaar number is now compulsory for registration of MSME under the act. Since Aadhaar number acts as a nationwide identification for every individual therefore it helps in a complete transparent process.

PAN card: For all the financial transaction related with one’s personal income or an organisation, PAN card helps it to automatically track the 

Accounting & Auditing

Business address proof:

Self-owned property- Allotment letter, Possession letter, Purchase deed, Property tax receipt.Rented property: Rent agreement, NOC from landlord, any other receipt, evidencing the landlord ownership over the property.

Sale bill/Purchase bill: Invoice related to the product which you have purchased or you want to supply further is required to be submitted.

MOA/AOA/Partnership deed: In case of partnership firm, it has to submit its partnership deed & certificate for the same. Copy of MOA/AOA/Resolution passed in AGM is also to be submitted.

License copy: Industrial license so obtained by the Government of India should be submitted while submitting application for MSME.

Bills of machinery purchased: Since the installation of machinery is helpful in identifying the category in which the MSME will fall into. Therefore, its bills & receipts must be kept safe and are required to be submitted.

FSSAI Registration | Food  Licence

STEP BY STEP MSME REGISTRATION PROCESS

1.    Fill in Aadhaar number in the appropriate field to start of your SSI Registration application form.

2.    Once your Aadhaar is verified then only you can proceed further in the form.

3.    Applicant must fill the details as mentioned in the Aadhaar card issued by UIDAI.

4.    OTP Verification: OTP will be sent to the registered mobile number with UIDAI.

5.    Category: Applicant must mention the social category to which it belongs (General, SC, ST, OBC). The proof for the same can be demanded by the authority, as and when required.

6.    Gender: Male/female/transgender whichever category you fall under.

7.    Name of Enterprise: Legal name of enterprise under which all the transactions of the business will be done, should be mentioned.

8.    Permanent Account Number (PAN): Applicant must mention the PAN details in case of co-operative, public limited, Limited liability partnership while it will be optional in any other type of organization.

9.    Official address: postal address of the organization including the state, district, Pin code, mobile no.

10.   Date of Commencement of business must be specified in the appropriate field.

11.   Bank details: IFSC code of the bank branch and the account number where an individual account exist must be mentioned.

12.   Person employed: Details of employees who are directly working under the payroll of the company must be mentioned while applying for MSME registration.

13.  Investment: While computing the total investment, the original investment (purchase value of items) is to be taken into account.

14.  Submit: The Applicant must click on the Submit button to generate OTP which will be sent to email id mentioned for registration.

15.  The Applicant have to enter OTP received on mobile (linked with Aadhaar) second time.

16.  Enter Captcha: The Applicant must enter Captcha before clicking Final Submit button.

GST Registration

Related Blog:  WHAT IS THE GST REGISTRATION PROCEDURE

Benefits associated with MSME Registration

·       Ease in getting government tenders.

·       15% import subsidy in fully automatic machinery.

·       Approvals & Registration process becomes easy.

·       Low interest on loans.

·       Tariff & tax subsidies.

·       Exemptions under direct tax.

·       Benefits of all the government schemes.

·       Financial support from the government for participating in international expos.

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Attach Your Car With Ola To Start A Business

ATTACH YOUR CAR WITH OLA TO START A BUSINESS

Nowadays, the service industry is not only the fastest-growing but it is also having one of the largest contributions in India’s GDP (28% appx).

It is not only dominant in India GDP, but it also brings in a considerable amount of foreign investment and also provides large scale employment opportunities.

One of the most trending business in some of the prime location in India such as Delhi NCR, Mumbai, and Bangalore etc. are providing cab service. It just requires you to have a smartphone & a vehicle. (Even if you don’t have a vehicle the service provider is having an option with which you can start the business).

Read the remaining article carefully and you will understand all the formalities required to be fulfilled to attach your car in OLA.

Read other blogs: Transactions in which it is mandatory to give your PAN Card number

DOCUMENTS REQUIRED

Documents of the driver:

More documents may be required for leasing.

  • Valid commercial Driving license (yellow badge)
  • Aadhaar card
  • PAN card
  • Current & permanent Address proof document (For example electricity bill)
  • Bank details (passbook & cancelled cheque book)
  • Reference (address & phone numbers)

Car Documents

  • Registration certificate
  • Vehicle permit
  • Insurance of vehicle

Other Documents required

  • PAN card
  • Aadhaar card
  • Address proof (For example electricity bill)
  • Canceled cheque

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DIFFERENT TYPES OF CABS CUSTOMERS CAN BOOK WITH OLA:

  1. OLA Share
  2. OLA Micro
  3. OLA Mini
  4. OLA Prime
  5. OLA Autos
  6. OLA Bike
  7. OLA E-Rickshaw
  8. OLA Luxury
  9. OLA Outstation
  10. OLA Rental
  11. OLA Shuttle

Read more blogs: YOUR PAN CARD MIGHT BECOME INOPERATIVE FROM 01, JANUARY, 2020

WAYS TO START A BUSINESS WITH OLA

There are 3 ways of starting a business with OLA:

Joining OLA as a partner

  • If you own a car then it is easy to attach it with OLA
  • Call or visit the nearest OLA centre and they will provide you with all the details required to attach your car with OLA.
  • Be sure to read all the information carefully before attaching your car with OLA.
  • Submit the necessary documents as mentioned in the article.
  • OLA will then start the training process.
  • The signing of the contract with OLA.
  • Run your car as an OLA cab in your city.

Joining OLA as a driver

  • For those who don’t own a car but still wants to start their business with OLA
  • Simply visit the office of OLA and understand the details required to attach your car with OLA
  • Submit the necessary documents mentioned in the article above.
  • Depending on the car you lease, one has to pay a rental fee of INR 700 – 1200 to OLA. This will be automatically deducted from your daily earnings and the remaining amount will be transferred to your account through NEFT/Cash.
  • OLA will then start the training process.
  • The signing of the contract with OLA.
  • Start working as an OLA Driver.

Joining OLA as a fleet operator

  • For those who have multiple cars, can attach them as a fleet with OLA.
  • Call your nearest regional office and collect the information regarding OLA fleet.
  • Submission of documents
  • If you are not able to find the drivers, OLA will help you find them.
  • OLA will inspect your car & check whether it is meeting the standards of the company or not.
  • OLA will then train these drivers and will make them technology-friendly.
  • After completion of all the processes, OLA will register you as fleet operator under it.
  • The signing of the contract with OLA.
  • Start working as an OLA fleet operator.

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FREQUENTLY ASKED QUESTIONS

Q. How to get a car on a lease in OLA?

  • Get your documents verified
    • Pay the verification fees & security deposit
    • You will get the car once your profile is verified

Q. Initial payment to lease a car in OLA?

  • A non-refundable charge of INR 4,000 is to be paid.
  • Refundable charge of INR 21,000 – 31,000 based on the vehicle.

Q. What is the procedure to pay the daily rental of OLA?

  • OLA will deduct your daily rental from daily earnings and will transfer the remaining to your account through NEFT/Cash.

Q. How much time does OLA takes to complete the registration process?

  • If all your documents are complete and ready to be verified then it will hardly take a day to start with your booking process.