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1. GST Registration
On 1st July 2017, Goods and Services Tax (GST) was introduced by the Indian government to subsume different types of State and Central level taxes such as Service Tax, Luxury tax, VAT, entertainment tax, etc. to offer a consolidated tax structure. This step is aimed to introduce much-needed tax reforms in the Indian tax structure by reducing tax complexities and making the filing of GST returns a completely online process.
Goods and Service Tax (GST) is a destination based tax on consumption of goods and services. It is levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer
Every supplier whose aggregate turnover exceeds Rs. 20 Lacs in a financial year is liable to get himself registered within 30 days, in a State from where he makes taxable supplies. Further, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business. Entities located in special category states that have an annual turnover of Rs. 10 lacs are mandated to have GST as well. Those entities which are involved in the sale of goods and services via an e-commerce platform must also register for GST, irrespective of their annual turnover. Apart from this, any person making interstate sales also needs to register for GST.
We at S.V.Bhat & Co help the entities to obtain new registration, voluntary registrations and amendment of existing registrations, return filings- monthly, quarterly, annual as well as GST Audit and assessments. Our team is well versed with GST matters. In case, you need these services, we would be glad to assist you. Please write to [email protected].
No. Every person will have to get registered separately for each of the State from where he makes taxable supply if he is liable for registration in terms of section 22(1) of the CGST Act.
Yes. As per proviso to Section 25(2) of the CGST Act, a person having multiple business verticals in a State or Union territory, may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
In terms of Section 25(4) of the CGST Act, 2017, every person who is required to obtain separate registration for every branch located in different state or union territory shall be treated as distinct persons. Accordingly, the supply of goods (stock transfers) to a branch located outside the State would qualify as supply, liable to tax in terms of clause 2 to Schedule I of the CGST Act, 2017. Further, it is important to note that, supply of goods to a branch / unit located within the same State having separate registration would also be liable to tax since both such units (supplying unit and recipient unit) would qualify as distinct person in terms of Section 25(4).
enerally, the person effecting taxable supplies is liable to pay taxes. However, Import of service will be taxable in the hands of the recipient i.e., importer.
2. Permanent Account Number (PAN)
Permanent Account Number (PAN) is a ten-digit alphanumeric identification number allotted to every taxpayer. It is mandatory to quote PAN on return of income and other important financial transactions.
3. Tax Deduction Number (TAN)
TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. Under Section 203A of the Income Tax Act, 1961, it is mandatory to quote Tax Deduction Account Number (TAN) allotted by the Income Tax Department (ITD) on all TDS returns.
4. Profession Tax Registration (PTRC and PTEC)
Profession tax is a state-level tax and is levied across trades and professions in the country. As soon as a business owner hires new staff, it is the responsibility of the owner to deduct and pay this tax to the relevant government department. This tax is also applicable to persons who are not salaried employees but have a professional income of their own such as doctors, lawyers, and chartered accountants. This tax is based on the gross income of an individual and is calculated slab-wise with a capping of Rs. 200 per month. The states in which this tax is levied are Karnataka, West Bengal, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, Assam, Chhattisgarh, Kerala, Meghalaya, Orissa, Tripura, and Madhya Pradesh.
We are covering Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975
PTEC stands for Professional Tax Enrolment Certificate and PTRC stands for Professional Tax Registration Certificate. Usually these Registration are required to conduct business in Maharashtra and in many other States. PTEC allows to pay professional tax of a business entity and also of the professional or owner of the business. In other words PTEC allows the company to pay the companies and their director’s professional tax, also in case of individual like professionals and sole proprietor (provided he does not have any employees) all have to register under PTEC. On the other hand PTRC allows the employer to deduct and deposit professional tax from the salary of its employees and deposit it to government. Both PTEC and PTRC are required by a regular company to pay its own professional tax, as well as the professional tax for all its employees as is applicable. But, in case the Company and LLP does not have any payable employee then it will only require to pay PTEC and not PTRC and pay for Directors and Partners.
We at S.V.Bhat & Co help the entities to obtain new registration, amendment of existing registrations, filing of monthly and annual returns and payment of timely PT.
Important points to note
- Applicable for PTRC Registration if employee salary > Rs. 7500 / Rs.10000 PM
- Profession tax calculation basis is salary or wages earned per month by the employees
- Lum Sum PT Tax can be of Rs. 2500/- in Maharashtra
- PT in Maharashtra to be paid monthly/annually
- Apply PT Registration with in 30 days from Applicability
- On Late Payment of Professional Tax simple interest rate 1.25%PM
5. Shop and Establishment Act
Shop act registration process in Maharashtra required important documents of company as well as employer. Shop Act registration Charges of government fees depends on number of employees and period applied for Shop Act Registration. For Establishment company having employees below 10 ( Ten ) need not to apply for registration. However such establishments need to given intimation to Jurisdictions about the number of employees, nature of business and business start date and other such important details. For violation of this Act, penalty may be applicable upt to 1 Lac. Shop Act registration process in simple which need important documents of company. Shop Act renewal need to completed with in 30 days from the date of expiry of original shop Act else late fees shall be applicable.
As per Section 6 of Shop & Establishment Act the date on which person or company start business and employing more than 10 employees shall make application to department for Shop Act Registration.
No, Shop Act registration is not compulsory for business / companies who is having number of employees below 10 numbers. Hence no registration required. However intimation is required. Employer who having less than 10 employee shall give intimation of commencement of business to Local Jurisdiction of Shop Act department. Intimation shall be a companied with details of Name of employer , number of employees , nature of business and other details.
In a simple terms the registration certificate contains Name of Company , Postal Address of Company , Name of Employer, Nature of business and other details
A Shop Act License granted under sub-section (2) shall be valid for such period as may be requested by the applicant and specified therein subject to a maximum period of ten years.
Company can submit application for renewal of Shop Act registration in not less than 30 days from the date of expiry along with applicable registration fees. In case Shop Act is not renewed 30 days then company shall pay late fees along with the application fees. Late fee equal to half of the fee payable shall be applicable if license not renewed in due time. Hence company need to keep update about the renewal period for Shop Act license.
Check List of Document for Shop Act Registration
- Address Proofs
- Passport Size Photo
- Company Documents : AOA & MOA / Partnership Deed
- Image of Establishment
- Address proof of company
6. Digital Signature
Digital Signature is an electronic format of your physical signature, is required to sign e-forms like filing income-tax returns, company incorporation, Annual return filings, and e-tender filing, etc.
Digital signature, as the name suggests, is an electronic equivalent of physical signatures, as they verify the identity of the sender of an electronic document. Such signatures are verified by a Certifying Authority, which also provides the sign holder with both a private key (used by the holder to encrypt their signature onto a document) and a public key (used by the receiver to verify the signature of the holder on an electronic document). Nowadays, Digital signature is not used only to verify communications between individuals, but also to carry out online transactions such as Income Tax e-Filing, Company Incorporation, etc. Digital Signatures come in the form of a USB E-Token, wherein the Digital Signature Certificate is stored in a USB Drive and can be accessed through a computer to sign documents electronically. Think of the USB e-Token as the digital equivalent of a rubber stamp – connect it to a computer, sign the document in question, and you’re done! The DSC is a certificate issued by a Certifying Authority which also generates the public and private key for your Digital Signature.
With e-Filing becoming mandatory in increased spheres, Digital Signatures have become more pervasive in the market, out of the sheer necessity of having one.
Types of Digital Signature
There are currently three classes of Digital signatures
Class 1 – required for verification of email communication.
Class 2 – has been made compulsory for every Director/Signing authority who signs documents to be filed with the ROC to have; It is also required by individuals to e-file Income Tax returns.
Class 3 – heavily encrypted, this class of signatures is employed for use in online tenders/auctions that are held across India.
The validity of Digital Signatures:
The Validity of Digital Signature is one year and two years. These are renewable on expiry of the period of initial issue.
We at S.V.Bhat & Co. will help you acquire digital signature for incorporation services, compliance services or any other as per client needs.
7. CMA Data Preparation/ Project Reports
A Credit Monitoring Arrangement (CMA) report or a Project Report is part of the necessary documentation required by businesses that compiles the past performance of the same, as well future projections in a specific format that allows for invested stakeholders to quickly assess the financial health of the undertaking. Most banks require loan applicants to prepare such reports in order to observe whether the capital required could be used for growth and eventual repayment of the same.
Since a well-made CMA Report Preparation or a Project Report could mean the difference between getting a loan and getting rejected, leave us the headache of getting the CMA Report Preparation. Hiring a consultation with us ensures that we can put our effort into compiling the report for you, and you can put your effort into driving up the growth of your business.
In case you require such services, please write to S.V.Bhat & Co at [email protected]