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GST

Goods & Service Tax

Impact analysis on various sectors

India’s looming the new regime of Goods & Service Tax (“GST”), a modern tax reform which will usher in growth and opportunities for businesses in India. It is a tax trigger, which will lead to business transformation for the industry. It will have a far-reaching impact on business avenues, compelling organizations to realign bottlenecks such as production cost, production time, supply chain, compliance, logistics etc. with changing indirect tax structure.

GST is a value added tax where tax is imposed only on the value added at each stage in the supply chain. It is levied at all points in the supply chain. Credit is paid for acquiring inputs used in making the supply. In India GST is defined as “tax on supply of goods or services other than alcohol for human consumption”. In simple language, GST is a single tax on all goods and services in the entire economy.

GST can make the indirect tax system very efficient and will benefit all stakeholders including manufacturers, sellers, the ultimate consumers and the tax collecting governments apart from giving a substantial boost to GDP growth.

GST will turn India into one common market, leading to greater ease of doing business and big savings in logistics costs from companies across all sectors. GST may not have a uniform impact on all sectors, given their varying taxation structures. Some companies will gain more as the GST rate will be lower than the current tax rates they pay, others will lose as the rate will be higher than the present effective rate.

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Company registration in India

Company registration in India means legally getting the right to do business.In India, registration of company is also known as formation of business or incorporation of company.
Let us see what is this Company thing all about and then move on to Company Registration.

 

What are the documents required to register your startup?

An entity required to be incorporated as a Private Limited Company or a Limited Liability Partnership has to be registered with the Ministry of Corporate Affairs. Now the government has come up with several initiatives where an entity can be incorporated in just 1 day.

 

Private Limited Company

A Pvt. Ltd company allows you to play around with the capital structure, you can also play around with the rights distribution, which isn’t so easy in a limited liability partnership. Hence, investors will ask you to convert from an LLP to a Pvt. Ltd. company.

The Directors of the proposed company must have a Digital Signature Certificate (DSC) to sign the e-forms.
The proposed name of the company should be given along with the main line of business.

 
The directors and the subscribers of the proposed company should have the following:
(a) PAN as nationality proof

(b) Photo

(c) Aadhar/ Driving Licence/ Voter Card/ Passport as identification proof

(d) Utility Bill i.e, electricity bill/ telephone bill/ bank statement etc.

(e) email-id

(f) mobile number
The incorporation documents required are as follows:
(a) Affidavit by the promoters

(b) Declaration in DIR – 2 by the directors

(c) Declaration in INC – 9 by the promoters

(d) Declaration in INC – 8 by a Chartered Accountant/Company Secretary/Lawyer/Cost
Accountant

 

Limited Liability Partnership

A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership.

The partners of the proposed LLP must have a Digital Signature Certificate (DSC) to sign the e-forms.
The proposed name of the LLP should be given along with the main line of business.

 
The partners of the proposed LLP should have the following:
(a) PAN as nationality proof

(b) Photo

(c) Aadhar/ Driving Licence/ Voter Card/ Passport/ electricity bill/ telephone bill/ bank statement

(d) email-id

(e) mobile number
For Registered office of the LLP:
(a) Ownership deed (if the property is owned) or

(b) Rent agreement along with latest Rent receipt and P.Tax (if the property is rented) or

(c) NOC from the owner of the property and

(d) Latest Utility Bill in the name of the owner i.e, electricity bill/mobile bill/ telephone
bill/ gas bill.

The LLP agreement should be prepared and executed on the stamp paper.

 

Related : HOW GST WORKS IN INDIA

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Online Income Tax Payment – Procedure

Income tax payment can be done through online or manually by furnishing the hard copy of the challan at the designated bank. The Government has upgraded itself and introduced e-payment facility for income tax. In this Blog, we look at the procedure for online payment of income tax.

Mandatory Online Payment
Private limited company, one person company and limited company are mandatorily required to pay tax using internet banking facility. Further, taxpayers other than company who are liable to get their accounts audited as per section 44AB are also required to mandatorily pay income tax online.

Online income tax payment is mandatory for all companies and all non-corporate taxpayers covered by audit under section 44AB. However, a person not covered in the mandatory category can voluntarily pay income tax by using the e-payment mode.

Income Taxes That Can be Paid Online

Taxes that can be paid online through internet banking facilities are:

  • Income-tax
  • Corporate tax (i.e., income-tax paid by a company)
  • Tax deducted at source (TDS)
  • Tax collected at source (TCS)
  • Securities Transaction Tax (STT)
  • Wealth-tax and other direct taxes like gift tax, expenditure tax, etc


Online Income Tax Payment Procedure
To make income tax payment online, a net banking enabled account in an authorised bank is required. If the taxpayer does not have a net banking enabled account in his/her name, then payment can be made through some other persons account, but the tax should be paid in the assesses name.

Online Income Tax Payment

Step by Step Guide to Online Tax Payment

  • Visit www.tin-nsdl.com or the online tax e-payment website.
  • Open the respective chalan based on the payment type.
  • After selecting the correct challan, the screen for providing details will be displayed, the taxpayer should provide the correct details in the challan.
  • After providing all the requisite details correctly along with the correct Codes, the taxpayer should select his bank from the dropdown provided in the screen (i.e. the selection of the bank from which he wishes to make the online income tax payment).
  • After selecting the applicable bank, the taxpayer should input the verification Code appearing on the screen.
  • After providing the verification Code the taxpayer should click on the proceed button provided on the screen.
  • On clicking on the proceed button, a new page will be displayed containing the details provided by the taxpayer in the Challan and the name of the taxpayer as per the data base of Income-tax Department will be displayed. The name will be displayed from the PAN/TAN database with the Department.
  • In case of Form 26QB the name of the transferor and transferee will be displayed.
  • If the name and other details as displayed on the screen are correct then the taxpayer can proceed for making payment by clicking on the submit to bank button provided on the screen.
  • On submitting the challan to the bank, the gateway of the bank will be displayed on the screen and the taxpayer has to login to his account and input the details of tax, interest, cess, penalty, etc., to be paid.
  • After providing the details he should verify the details once again to check the correctness and then should submit the challan to bank for effecting payment.
  • On successful completion of the transaction, the challan of payment (i.e., receipt of payment) will be generated and will be displayed on the screen.
  • Challan will contain Challan Identification Number (CIN) and other details. The taxpayer should preserve the hard copy as well as soft copy of the Challan for his records and for further requirements.
  • Challan Status – Online Tax Payment Status Check
    Using the Challan Identification Number, tax payers can track online the status of their challans deposited in banks.