Getting your Digital Signature Certificate

What is a Digital Signature?

Digital signature is a digital equivalent of a handwritten signature but far more secure. It is a mathematical technique used to validate the authenticity and integrity of a message or an electronic document. A digital signature guarantees the authenticity of an electronic document or message in digital communication and uses encryption techniques to provide proof of original and unmodified documentation.

As digital signatures become more common place, let us understand how digital signatures are different from electronic signatures, how they work and why should you adopt them.

Classes of DSC

The type of applicant and the purpose for which the Digital Signature Certificate is obtained defines the kind of DSC one must apply for depending on the need. There are three types of Digital Signature certificates issued by the certifying authorities.

Class 1 Certificates: These are issued to individual/private subscribers and are used to confirm that the user’s name and email contact details from the clearly defined subject lie within the database of the certifying authority.

Class 2 Certificates: These are issued to the director/signatory authorities of the companies for the purpose of e-filing with the Registrar of Companies (ROC). Class 2 certificate is mandatory for individuals who have to sign manual documents while filing of returns with the ROC.

Class 3 Certificates: These certificates are used in online participation/bidding in e-auctions and online tenders anywhere in India. The vendors who wish to participate in the online tenders must have a Class 3 digital signature certificate.

How to get one?

We can help you in getting your DSC in 1 day with our easy and quick process and dedicated support at Rs.850 (With 2 years validity). Following are the requirements for Applying for Digital Signature Certificate

1. DSC Application form duly filled in by the applicant

2. PAN Card

3. Address proof (Aadhaar, Voter ID, DL..)

Vikas U P

eMudra Certified Partner

Contact: 9945694116

Email: digitalemudra01@gmail.com

Preetham Shetty & Co.

Equalisation Levy-Taxing the Digital Ecommerce Transactions

The digital space has grown rapidly in the past few years. We are surrounded by umpteen digital advertisements popping up every single minute on our mobile phones. Online Service Providers are generating huge revenues from online advertising. The biggest beneficiaries of this rapid growth in the Digital Space are companies earning through Digital Ads like Google, Facebook, Twitter, Linkedin, Yahoo and other advertising majors. However, they do not have permanent establishment in the country in which they are providing services and generating revenues.

Moreover, companies providing such services have permanent establishment in countries which are subject to lower rate of tax and hence, have created a new challenge for the revenue departments of the countries where they do not have any permanent establishment.

What is Equalisation Levy?

Its defined as “Tax leviable on consideration received or receivable for any specified service under the provisions of this chapter”. The levy would be under a separate self-contained code and is not part of the income-tax law.

Services Covered:

The Equalisation Levy would be applicable at 6% on gross consideration payable for a ‘Specified Service’.

‘Specified Service’ is defined as follows:

(1) Online advertisement;

(2) Any provision for digital advertising space or facilities/ service for the purpose of online advertisement;

(3) Any other service which may be notified later.

Applicability:

The levy will be applicable on the payments received by a non-resident service provider from an Indian resident or an Indian Permanent Establishment (‘PE’) of a non-resident, in respect of the specified service. The levy would not be applicable to non-resident service providers having a PE in India, as they will be subjected to a regular PE basis taxation. The levy is currently applicable only on B2B transactions, if the aggregate value of consideration in a year exceeds approx USD 1500.

Who needs to comply:
Every resident person and foreign company (having a PE in India) is required to withhold Equalisation Levy while making payment to a non-resident service provider. The compliance procedure is similar to withholding tax compliances already prevalent in India.

Contributed by:

Hemanth C

Articled Assistant, CA Finalist

Preetham Shetty & Co.

Revision in Late Filing Fee by MCA

The Companies (Registration Offices and Fees) Second Amendment Rules 2018 has been notified on 7th May 2018. 

Fresh RoC Filing after 30th June 2018:

Accordingly, in case the due date of filings under Section 92 (Annual Return) or 137 (Annual Financial Statement) of the Companies Act, 2013 expires after 30/06/2018, the additional fee @Rs.100 per day shall become payable in respect of MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS.

Belated RoC Filing:

In all other cases where the belated annual returns or balance sheet/financial statement which were due to be filed whether under the Companies Act,1956 (23AC,23ACA,23AC XBRL,23ACA XBRL,20B,21A) or the Companies Act, 2013 (MGT-7, AoC-4, AoC-4 XBRL and AoC-4 CFS) additional fee as per the applicable slab for the period of delay up to 30th June 2018 plus @Rs.100 per day w.e.f 1st July 2018 shall become payable. Stakeholders are advised to take note and plan accordingly.

For hassle free RoC Compliance contact us at 9900397777/ info@preethamandco.com

Demystifying Startup India Scheme

What is a Startup?

Startup means an entity, incorporated or registered in India:

·         Upto a period of seven years from the date of incorporation/registration or upto ten years in case of Startups in Biotechnology sector

·         As a private limited company or registered as a partnership firm or a limited liability partnership

·         With an annual turnover not exceeding Rs.25 crore for any of the financial years since incorporation/registration

·         Working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation

Provided that an entity formed by splitting up or reconstruction of an existing business shall not be considered a ‘Startup’.

           An entity shall cease to be a Startup:

·         On completion of seven years from the date of its incorporation/registration, ten years in case of Startups in Biotechnology sector, or

·         If its turnover for any previous year exceeds Rs. 25 crore

Incentives under Startup India Scheme

Under this plan the new startups in India can avail of regulatory and tax benefits, capital gains tax exemption, as well as access to government funding if they fulfill certain criteria.

Other benefits include reduction in patent registration fees by 80 percent and trademarks filing fees by 50 percent as well as free legal assistance; simpler entry and exit norms; protection of intellectual property rights (IPR); and facilities to promote entrepreneurship among women and SC/ST communities.

Tax Exemptions under Startup India Scheme

3 year tax holiday in a block of seven years: Income Tax exemption for three years in a block of seven years, if they are incorporated between April 1, 2016 and March 31, 2019.

Tax exemption to Individual/HUF on investment of long-term capital gain in equity shares of Eligible Startups u/s 54GB: Exemption from tax on capital gains arising out of sale of residential house or a residential plot of land if the amount of net consideration is invested in equity shares of an eligible startup for utilizing the same for purchase of specified asset (Section 54 GB of the Income-tax Act, 1961).

Exemptions on investments above fair market value, introduced on June 14, 2016 for investments made in startups.

Exemption from tax on Long-term capital gains: Eligible startups are exempt from their tax on a long-term capital gain if such a long-term capital gain or a part thereof is invested in a fund notified by Central Government within a period of six months from the date of transfer of the asset.

Note: To avail these tax benefits, the entity must obtain a certificate from the Inter-Ministerial Board of Certification. Which can be applied here (Click Here).

GSTR-3B filing deadline extended to 22nd May.

Monthly GSTR-3B deadline for April 2018 has been extended to 22nd May 2018, Tuesday.

Inspirational Speech Warren Buffett (By: Startup Stories)

Video Courtesy: Youtube (Channel: Startup Stories)

Quick Look at Tax Saving Investments

Quick Insights to IE Code

Import Export Code or IE Code is required for undertaking import or export transactions and availing benefits under Central Government Schemes. Any Entrepreneur who wishes to import something to India or export something from India requires an import export code. It has a permanent validity. There are certain benefits of this code. Though exporters need not necessarily apply for this code, however, they will miss out the otherwise provided benefits. Also, RBI is now making the mention of IEC code mandatory in bank account.This code generally comes in play when you decide to expand your business globally. Code can be obtained on your name(in case of proprietorship) or on your company’s name. IE Code issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.

27th GST Council Meet-Key Highlights

GST Return Simplification:

·         GSTR 1 and GSTR 3B will continue for the next 6 months.

·      New single-return plan will go live after 6 months. Thus, now it will be only 12 returns a year, instead of 36.

·   Post the new return going live, provisional credit can be claimed by the taxpayers in the transitional phase of 6 months.

·        The GSTN will show the buyer, invoices uploaded by the seller and thus buyer can check the gap between the credit claimed by him and actually allowed to him.

·         After 6 months of this transition period, if it is noticed that after uploading the invoices, the seller has not paid the tax amount to the government, GSTN has all the right to recover these taxes from the buyer. There will be no automatic reversal of credit from the buyer in these cases.

·         No provisional credit can be claimed after this 6-month transition period.

·         Nil return preparers and Composition dealers will file GST returns quarterly

Rates:

·      Sugar Cess implementation has been postponed. The government believes that there should be a better way to increase revenue for the benefit of the farmers.

·         Duties on Ethanol - Reduction in rate suggested.

·   A group of ministers expected to work on these two above mentioned points and make recommendations within two weeks.

For Expert Assistance in GST Advisory, Filing, Invoicing, Accounting call us at 9900397777 mail us at info@preethamandco.com