Entity Options for doing business in India

A Foreign company desirous of venturing into the Indian markets can evaluate several entity options available under law. It can opt to operate either as an incorporated or an unincorporated entity. Th e key options being:

Incorporated Entity

(a) Company (both Private Limited and Public Limited)

(b) Limited Liability Partnership (LLP)

(c) Joint Ventures

Unincorporated Entity

(d) Liaison Office

(e) Branch Office

(f) Project Office

Typically, the key factors which influence the choice are the nature of work proposed in India, duration of work, compliance costs (both in terms of time and money), ease of setting up and closure and tax considerations. The foreign exchange regulations, specifically, the regulations governing Foreign Direct Investment (FDI) also play an important role. In India, most aspects of foreign currency transactions are governed by Foreign Exchange Management Act, 1999 (FEMA) and the delegated legislations thereunder. In this article, we would look at the options of setting up a place of doing business in India, as an unincorporated entity, provided under FEMA i.e. Liaison Office, Branch Office and Project Office.

A Valuable Lesson For A Happier Life

Best ways to Invest in Gold.

Indians love gold. It would be difficult to find a person who has never invested in gold. In deciding whether to invest in Physical Gold or Gold ETFs one need to establish the purpose of buying Gold, are we buying for personal consumption, buying for children’s marriage or for investment?

Now if we are buying for personal consumption then it makes sense to buy physical gold in form of jewellery. Gold bars and coins are also another way of buying physical gold to gift someone or to make jewellery in near future. But if we are buying for investment or for child’s marriage then there is another option, which is gold EFT.

I. Gold ETF

Why to Invest in Gold ETF?

Gold ETF are transparent vehicle and provide an effective and efficient platform for small investors to diversify into GOLD. Gold ETFs have been rising in popularity due to their convenience.

A Clever Lesson In Self Worth

Understanding the Stock Market Index

What is an Index?
An index is a number which measures the change in a set of values over a period of time. A stock index represents the change in value of a set of stocks which constitute the index. More specifically, a stock index number is the current relative value of a weighted average of the prices of a pre-defined group of equities. The starting value or base of the index is usually set to a number such as 100 or 1000.  For example, the base value of the Nifty was set to 1000 on the start date of November 3, 1995. A good

International Taxation & DTAA Basics

International Taxation is concerned with taxation of cross border transaction in goods, services, transfer of technology and capital. It defines the right and obligations of non-residents in the host country.

Most countries follow residence-based system of taxation. A residence-based system taxes the worldwide income of the residents of that country. When a resident of that country (residence country) ventures out to another country (source country) and earns income in source country, the source country would charge tax on the income earned within its jurisdiction. The residence country would again tax the income taxed in source country since a person who is resident within residence country’s jurisdiction has earned that income. This gives rise to what is commonly known as ‘doubly taxed income’.

Quick Glance at New Revised CA Curriculum

The Institute of Chartered Accountants of India, the sole regulator of the CA profession in India, has always been conscious of its responsibility to produce competent professional accountants who come up to the expectation of the society both in terms of the scope and quality of services rendered by them. It, therefore, has reviewed and revised its Scheme of Education and Training.

Understanding Shell Companies

What is a Shell Company?

There is no clear definition of what shell company is in the Companies Act, or any other Act. But typically, shell companies include multiple layers of companies that have been created for the purpose of diverting money or for money laundering. Most shell companies do not manufacture any product or deal in any product or render any service.
They are mostly used to make financial transactions. Generally, these companies hold assets only on paper and not in reality. These companies conduct almost no economic activity.

Indian Scenario

After Prime Minister Narendra Modi's decision to demonetise ₹500 and ₹1000 rupee notes on 8th November 2016, various authorities noticed a surge in shell companies depositing cash in banks, possibly in an attempt to hide the real owner of the wealth. In response, in July 2017, the authorities ordered nearly 2 lakh shell companies to be shut down while Securities and Exchange Board of India (SEBI) imposed trading restrictions on 162 listed entities as shell companies. A high-level task force found that hundreds of shell companies were registered in a few buildings in Kolkata. Many of those were found to be locked, with their padlocks coated in dust and many others which had office space the size of cubicles.

What actions can be initiated against shell companies?

Companies can be removed from the rolls of the Ministry of Corporate Affairs by two means: strike off by Registrar of Companies (RoC) — (Section 248 (1) of the Companies Act, 2013) and voluntary strike off — (Section 248 (2) of the Companies Act, 2013). Voluntary closure can be done with the approval of the board and shareholders and the firm should have nil liabilities.

However, not all shell companies may be money laundering vehicles. There are many shell companies that work within legal limits and do not have financial irregularities. For example, a company may separate its HR function into another company altogether. The second one is a legal entity, which operates like any other company. If you are an equity investor, it is better to stay away from investing in shell companies that have financial irregularities. Conduct proper due diligence of companies that you have invested in, and try to research their operations, businesses and financials.

For Hassle free RoC Compliances contact us at 9900397777/ info@preethamandco.com

Google Tez, UPI enabled digital payment service launched in India

Making a foray into mobile payments sector in India, tech giant Google today launched its Android payments app, Tez. Send money to friends, instantly receive payments directly to your bank account & pay the nearby café with Tez, Google's new digital payment app for India. Using NPCI's (National

Beware of Phishing Emails from fake Income Tax Dept.

A phishing campaign is fooling Indians into disclosing confidential data such as banking details, experts have warned, urging people to pay careful attention to any e-mail that purports to be from the Income Tax department.

There have been various cases reported across the country of tax payers receiving fake e-mails. These e-mails are more common during the tax return filing time as tax payers await communication from the Income tax department. If you are a tax payer who has received such an e-mail, be careful as it may be a phishing e-mail which would re-direct you to another website seeking your financial details like bank account number and other related details. These kinds of e-mails are camouflaged in a manner that one feels that it has come from an authentic e-mail id. The e-mail id would resemble the common ids used by CPC/ Income tax department. A wrong step could lead to compromise of one’s personal details and the person eventually becomes a victim of online fraud.

Quick Insight to Digital Signature Certificates (DSC)

Digital Signature serves as a proof of your identity. Its the digital equivalent of a handwritten signature or stamped seal, but offering far more inherent security, a digital signature is intended to solve the problem of tampering and impersonation in digital communications. Digital signatures can provide the added assurances of evidence to origin, identity and status of an electronic document, transaction or message, as well as acknowledging informed consent by the signer.

In short, a digital signature is a mathematical technique used to validate the authenticity and integrity of a message, software or digital document.

What are different types of DSC?

There are three types of Digital Signature Certificates as follows:

Class 1 - To be issued to individuals/ Private Subscribers and mostly used for email encryption.

Class 2 - To be issued for Income Tax filing, ROC and MCA filing, DIN or DPIN application etc.
Class 3 - To be issued for the purpose of e-Tendering, e-Procurement, Trademark / Patent /copyright application filing, etc.

How does it Work?

If the two hash values match, the message has not been tampered with, and the receiver knows the message is from sender.

Uses of Digital Signature Certificate?

E-File Income Tax Return

File ROC Forms with MCA

Send Digitally Signed Emails

Carry out secure transactions on Internet

Apply for E-Tendering or E-Procurement

Digitally Sign Documents such as PDFs

Documents Required?

PAN Card

Passport Size Photo

Identity Proof

Address proof

How long does it takes?

You will receive the DSC Token within 1 day of submission of application form.

What is the Validity period of DSC?

Digital signature can have a validity of 1 year or 2 years. The validity period of Digital Signature Certificate issued by us will be of 2 years. The DSC can also be renewed after expiry of 2 years.

To apply for DSC contact 9900397777 or mail us at info@preethamandco.com

Quick Look at Revised Deadlines for GSTR

Return	Period	Revised Due Date
GSTR 1	Jul 2017	10.10.17
GSTR 1 (For Registered persons with aggregate turnover of more than Rs. 100 Crore)		03.10.17
GSTR 2		31.10.17
GSTR 3		10.11.17
GSTR 4 (For Composite Taxpayers)	Jul-Sep 2017	18.10.17
GSTR 4A		Not Required
GSTR 6 (For Input Service Distributer)	Jul 2017	13.10.17
GSTR 3B	Aug-Dec 2017	To Be Filed Monthly
GST TRAN 1		31.10.17

For Simple Secure GST Compliance contact us at: info@preethamandco.com or Call us at 9900397777

Protect yourself from Inflation

Revised Rules on E-Way bill issued.

The Government has issued Notification No.27/2017-Central Tax, dated 30 August 2017, making amendments to CGST Rules, 2017. 

The Notification prescribes revised rules for e-way bills along with relevant forms. Under GST, transporters will need to carry an electronic waybill or E-Way Bill when moving goods from one place to another. Since it is a new rule introduced under GST, it is necessary for all consignors/consignees/transporters to be aware of the required compliance. The key features of the rules are as under:

1. E-way bill is required to be generated for movement of goods of consignment value exceeding INR 50,000.

2. E-way bill is not required for transport of goods by a non-motorized conveyance and for certain specified goods. The specified goods include exempt goods, currency, jewellery, precious stones and pearls. 

3. E-way bill is also not required for transport of goods from a port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs.

4. For transport of goods up to 100 km, the e-way bill shall be valid for one day. For further distance of every 100 km or part thereof, the validity period shall be increased by one day.

5. Where goods are to be transported for a distance of less than 10 km within the state/ union territory, the details of conveyance may not be furnished in the e-way bill.

6. The effective date from which these rules shall come into force will be notified later.
For Simple Secure GST Compliance contact us at: info@preethamandco.com or Call us at 9900397777

Fundamental Differences between Credit and Debit Cards

What is IGST, CGST & SGST?

GST means a tax on supply of goods and services except tax on supply of alcoholic liquor for human consumption. The structure of GST is quite different from the present tax structure. 

GST?

GST is a tax on goods and services with comprehensive and continuous chain of set-off benefits from the producer's point and service provider's point upto the retailer's level. In simple terms, it is a tax only on the value addition at each stage by the supplier or the service provider.

GST would be applicable on supply of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services.

GST would apply to all goods and services except alcohol for human consumption, electricity and real estate

​GST will not subsume stamp duty which is imposed on legal documents by the state government. This will be continued to be levied by the states.

Under the GST regime, there are three different types of taxes introduced.

The GST to be levied by the Centre would be called Central GST (CGST)

The GST to be levied by the States would be called State GST (SGST)

IGST (Integrated GST) will be collected by the Central Government.

Intra-State Supply and Inter-State Supply:

In case of Intra-state supply i.e. Goods or services supplied within the state, taxes to be paid are CGST and SGST/UTGST. The revenue generated from CGST goes to the Central Government and the revenue generated from SGST goes to the State Government.

In case of Imports and Inter-state supply i.e. Goods or services supplied outside the state, tax to be paid is IGST. The IGST is collected by the Central Government but the revenue generated from IGST is shared by both Central Government and State Government. Thus, to settle the tax amounts the state has to deal directly with the Central Government and not with other states. The rate of IGST is equal to CGST+SGST. The rates of IGST and CGST/SGST would be same all over India and would not vary from State to State.
For Simple Secure GST Compliance contact us at: info@preethamandco.com or Call us at 9900397777

Key Takeaways from 21st GST Council Meet

Due date for GSTR 1 extended

The due date for GSTR 1 filing has been extended to 10th October 2017 from the existing 10th September 2017. However for a registered person with an aggregate turnover of more than Rs.100 crores, the due date for filing is 3rd October 2017.

Due date for GSTR 2 & 3 extended

The due date for GSTR 2 filing has been extended to 31st October 2017 and GSTR 3 to 10th November 2017.

GST TRANS 1 Revision

The government has also allowed the one-time revision of GST TRANS 1 and also extended the filing due date to 31st October 2017.

GST – 3B to continue till December

The government has also decided to continue the filing of GSTR – 3B till December 2017.

Avail composition scheme till 30th September

For those who could not avail the composition scheme can avail the scheme till 30th September 2017 and such person can avail the benefit of composition scheme with effect from 1st October 2017.

Special exemption to Handicraft

The government has decided to allow the handicraft business to enjoy the threshold exemption for registration even in case of interstate supplies if the total turnover is within 20 lakh limit. Further goods can move under the cover of e-way bill, irrespective of the value of the consignment.

Special exemption to Job worker

The government has decided to allow the to exempt job worker from obtaining registration who are making interstate taxable supplies of Job work service to a registered person as long as goods move under the cover of an e-way bill, irrespective of the consignment value.

Requirement of TDS and TCS 

The registration requirement for person liable for deducting TDS and TCS will commence from 18thSeptember 2017.

Setting up committee

The government has decided to set up a committee consisting of officers from both center and state under the chairmanship of the revenue secretary to examine related to exports.

Group of ministers to examine issues  

The GST Council has also decided to constitute a group of ministers to monitor and resolve the IT challenges faced during the GST implementation.

Decoding GST on Works Contract

Under GST Regime, works contract will be treated as service and tax would be charged accordingly (not as goods or part goods/part services). This treatment of works contract as service and not as supply of goods will bring in much needed clarification to the works contracts.

Composition Scheme is not Available.

Composition scheme is not available to works contractors as it is treated as service under GST. Composition scheme is only available to suppliers of goods. This will be a big blow to the small sub-contractors who cannot opt for composition scheme. They will be forced to register for normal taxation scheme increasing their compliance's and costs.

GST Rates?

Refer recent notification 20/2017-Central Tax (Rate) ,dt. 22-08-2017

ITC credit on Works Contract?

ITC credit in case of works contract is one of the things which is still not completely resolved under GST regime. As per section 17(5), the input tax credit on works contract services when supplied for construction of an immovable property (other than plant and machinery) is not available except where it is an input service for further supply of works contract service. In other words, the services availed by the works contractor from sub works contractor is allowed as input tax credit. However, it is easier said than done, because ITC rules on works contract is still not clear and department clarification is much needed in this regard.
For Simple Secure GST Compliance contact us at: info@preethamandco.com or Call us at 9900397777

GST Council further extends due dates filing of GST Returns

The government on Saturday said it is extending the deadline to file GSTR 1 for July by another one month, to 10th October 2017. The government has also decided to form a 3-member inter-ministerial team to look at the technical issues around GSTN and the problems users were facing in uploading their returns on the portal. The decision was taken at the 21st Meeting of GST Council at Hyderabad on Saturday.

For Official Notification Visit Click Here

Press release for 21st Council meeting held today. pic.twitter.com/oVfQS4iIIF

— GST@GoI (@askGST_GoI) September 9, 2017

Compliance Calendar-Key Dates September 2017

Key Dates for Statutory Compliances in September 2017

Due Date	Statutory Act	Applicable Form	Obligation
10/09/2017	GST Act	GSTR-1	Registered persons to furnish details of outward supplies in July
07/09/2017	Income Tax	Challan 281	Payment of TDS/TCS deducted/collected in August, 2017
15/09/2017	PF & ESI	Online Payment	Payment of PF & Payment of ESI
15/09/2017	Income Tax	Challan 280	Second Installment of advance tax for the assessment year 2018-19
20/09/2017	GST Act	GSTR-3B	Registered persons to file GSTR-3B for August
25/09/2017	GST Act	GSTR-2	Registered persons to furnish details of  inward supplies in July
30/09/2017	Income Tax	Challan 280	Due date for payment of last Installment (i.e., 50% of tax, surcharge and penalty) under Income Disclosure Scheme, 2016
30/09/2017	GST Act	GSTR-3	Registered persons to furnish monthly GST return