Chhota CFO

The first Auditor   shall be appointed in the company by Board of Director under Section 139(6)   or 139(7) of the Companies Act, 2013. For more details visit our blog : https://bit.ly/3nNRx56

XBRL stands for   eXtensible Business Reporting Language, a language for the electronic   communication of business and financial data that has   revolutionized business reporting around the world. XBRL major   benefits include ease in preparation, analysis and communication of business   information by the corporates. XBRL offers cost savings, greater efficiency,   improved accuracy as well as reliability to all those involved in supplying   or using financial data. For more details visit our blog : https://bit.ly/3DJ30bU

PAN is   an electronic system through which, all tax related information for a   person/company is recorded against a single PAN number. This acts as the   primary key for storage of information and is shared across the country.   Hence no two tax paying entities can have the same PAN. For more details visit our blog : https://bit.ly/3Do0l7b

Every   Director resigning from the Board of the Company must submit his resignation   letter to the Board of the Company for their acceptance. For more details visit our blog : https://bit.ly/3ot8bWG

The Ministry   of Corporate Affairs has notified an amendment in the Companies   (Specification of Definitions Details) Rules, 2014 that came into force on   1st April 2021. For more details visit our blog : https://bit.ly/3n2RBh8

Every   entity must present its financial information to all its stakeholders.    The information provided in the financials must be accurate and present a   true picture of the entity. For this presentation, it must account for all   its transactions. Since economic entities are compared to understand their   financial status, there has to be uniformity in accounting. For more details visit our blog : https://bit.ly/3qbX6vU

“Prevention   is better than cure”, Well ! All of us have heard   this quote very often, taking preventive measures to avoid notices from   department is definitely a better way-out than curing the defects with   consequences. Planning your taxes well will elucidate the matter than   thinking to evade taxes. “Tax Planning is better than Tax Evasion” For more details visit our blog : https://bit.ly/3w0pXEr

You’ve always wanted   to sell something on the internet, right? Accept the fact that not everyone   can build a successful ecommerce business like Amazon’s Jeff Bezos   or Flipkart’s Sachin Bansal, but anyone can join their journey and make it   big. For more details visit our blog : https://bit.ly/3DApXgH

Employees Stock Option Scheme and Sweat Equity Shares are two methods of issuing shares by a company to its employees and also can increase the share capital of the Company.

As per Section 2(37) of the Companies Act, 2013 employees stock option means the option given to the directors, officers or employees of a company or of its holding company or subsidiary company or companies, if any, which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a pre-determined price.

As per Section 2(88) of the Companies Act, 2013 Sweat Equity Shares means that such equity shares as are issued by a company to its directors or employees at a discount or for consideration, other than cash for providing them know how or making available rights in the nature of intellectual property rights or values addition, by whatever name called.

Every person whose estimated tax liability for the year is Rs.10,000 or more is required to pay advance tax. (Section 208).

A resident senior citizen (i.e., an individual of the age of 60 years or above during the relevant financial year) not having any income from business or profession is not liable to pay advance tax. (Section 207).

Assessee has to estimate his income for the current financial and compute tax there on as per rates in force for the financial year. This computed tax shall be reduced by taxes deducted or collected at source. (Tax referred to as estimated annual tax).

Due dates for payment of advance tax:

1. By 15th of June :  to pay not less than 15%of estimated annual tax as  advance tax.

2. By 15th of September :  to pay not less than 45% of estimated annual tax as advance tax as reduced by amount, if any, paid in earlier installment.

3. By 15th of December :  to pay not less than 75% of estimated annual tax as advance tax as reduced by amount, if any, paid in earlier installments.

4. By 15th  of March :  to pay 100% of estimated annual tax as advance tax as reduced by amount, if any, paid in earlier installments.

For taxpayers who have opted for presumptive taxation scheme of section 44AD or section 44ADA have to deposit 100% of estimated annual tax as advance tax by 15th of March of the financial year.

Note: Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax.

A complete guide on Incorporation of a Foreign Subsidiary Company/Registration of a Foreign Subsidiary Company in India without any hassle, get in touch with us at Chhota CFO.

PRE-REQUISITES FORINCORPORATION OF FOREIGN SUBSIDIARY IN INDIAAS PERCOMPANIES ACT, 2013:

Minimum      2 Directors – – Out of the two Directors, at least one director should be      ‘Resident of India’. Minimum      2 Shareholders. ‘Resident of India’ means a person who has stayed in India for      more than 182 days in the last Calendar year.

Call us at +91 973 973 6999 | +91 991​​​​ 666 8146 forForeign Company Registration in India!

The Articles of Association is similar to a rule book, within a company. This document contains internal detailed governing aspects of the company’s organisation. These include shares, details in manner of holding the company meetings, the role and powers of the directors.

Every company formed in India under Companies Act is required to have articles, without which a company cannot legally be formed. This requirement applies to all types of Companies.

Features ofArticles of Association:

1. It is a part of the constitution of an organization.

2. A contract between the members and among the members themselves.

3. It lays down the duties of shareholders.

4. Few statutory clauses should be included in the article of associations. Other clauses can be chosen to make the bye-laws of the organization.

5. Article of Association can be inspected by anyone as they are a public document.

The article of a company is an important document which is company’s rule book, defines the responsibilities of its directors, the different means by which the shareholders may exert their control over the directors and the company. While the memorandum defines the objectives of the company, the articles lay down the rules through which the objectives are to be achieved.  In cases of conflict, Act overrides the Articles.

For more details visit our blog : https://bit.ly/2ZjnoB1

The literal meaning of Form FC-TRS is Foreign Currency Transfer of Shares. This form is filed in case of transfer of shares of an Indian Company from a resident to a Non-Resident/Non-Resident Indian or body corporate outside India and vice versa through its authorised dealer bank.

Time Limit: The form FC-TRS shall be filed with the Authorised Dealer bank within Sixty days of transfer of capital instruments or receipt/remittance of funds whichever is earlier.

Step 1: Registration under FIRMS Portal of RBI as entity user and Creation of Master Data in Single Master Entity Form.

Authority Letter is required to be prepared for personnel authorizing him/her for registering as an Entity user for the entity.

Step 2: Registration as business user on FIRMS portal.

Authority Letter is required to be prepared for personnel authorizing him/her for registering as an Entity user for the entity.

Step 3: Reporting of Form- FC-TRS.

Any company can   accept amount from a person who is its director at the time of receipt of the   amount out of his own funds or from the existing Directors. For this purpose,   the director will have to submit a declaration with the Company that amount   is not being given out of funds acquired by him by borrowing or accepting   loans or deposits from others. Such amount are not deposits as   per Companies (Acceptance of Deposit) Rules, 2014. For more details visit our blog : https://bit.ly/3hBsKO6

DIR 3 KYC Filing is a yearly compliance to be filed by all the DIN holders irrespective whether the DIN holder is a Director in any Company or not/Designated Partner in an LLP or not.

The following shall not be able to do KYC web-based verification service and will be required to e file the E-Form DIR 3 KYC:

Those who have been allotted DIN during the FY 2020-21 Those who did not file their KYC last year even though they were required to do so. In such cases penalty of Rs 5000 must be paid. Those who want to update their E-mail or Mobile Number from last year filed form. For persons who want to update any other information like address, they need to first file DIR 6 and then after its approval use the web-based      verification service.

Requirements for filing of Form-DIR-3 KYC for Foreign Director:

1. Identity Proof- Copy of Passport

2. Proof of Address (Any one)- Copy of Driving License / Bank  Statement / Telephone Bill / Electricity Bill / Water Bill / Gas Bill

3. Translation of Documents- All the documents that are not  in English has to be translated to English by an accredited translator.

4. Notarization and Legalization  or Apostilisation of Documents- Copies of Passport and Address  Proof with translations, if any, must be Notarized and Apostilled /  Consularized by the competent authority of that foreign country

5. Validity of the Address Proof- Utility bills like electricity,  water, gas, telephone bill, Bank Statement shall be the name of the applicant  and should be a recent one not older than 2 months from the date of  application

6. Validity of the Notarized or  Apostilled Documents

7. Notarial Affidavits denotes  verification of person making a legal declaration. It is used as a  documentary evidence before the Court of Law. However, a specific declaration  before any concerned authority like LIC, Bank or any govt office is valid for  a period of six months from the date of swearing in.

Key Points:

1. Form shall be verified by Mobile OTP and Email OTP.

2. The form should be filed by every Director using his own DSC and should be duly certified by Practicing professional.

3. No KYC Fees if filed before 30th September of the Financial Year.

4. Every Individual DIN will be marked as deactivated, who does not intimate his/her particulars E-Form DIR-3KYC within stipulated time.

5. The de-activated DIN shall be re-activated only after E-Form- DIR-3 KYC is filed along with fees of Rs. 5000/- as prescribed under Companies (Registration Offices and Fees) Rules, 2014

Call us at +91 973 973 6999 | +91 991​​​​ 666 8146 for online company registration in Bangalore!

Food Licensing and Registration System provides the Food License also known as FSSAI License, which authorises to sell food under the Company or Brand name for which license is being obtained. As per Section 31(1) of FSS Act 2006 Food Licensing is mandatory for Food Business Operators in India.

Types of Food Safety License

Basic FSSAI Registration FSSAI State License Central FSSAI License

Penalty for selling food without a license

Quality of food not in-abidance as per the Act: up to Rs. 2 Lakhs, Rs. 25000 for petty manufacturers For misbranded food products: up to Rs. 3 Lakhs For substandard or low quality food products: up to Rs. 5 Lakhs For false promotion or misleading advertisement or false description : up to Rs. 10 Lakhs For not pertinent matters in the food product: up to Rs. 1 Lakh For failing to follow with the food safety officer’s directions: up to Rs. 2 Lakhs For using unhygienic methods of processing or preparing or manufacturing food items: up to Rs. 1 Lakh

To know more about FSSAI Registration and Licensing cost you can contact our expert team, just share your query on connectus@chhotacfo.com

Call us at +91 973 973 6999 | +91 991​​​​ 666 8146 foronline company registration in Bangalore!c

A one-person company (OPC) is a business formed by a single individual. A single person could not form a business prior to the implementation of the Companies Act of 2013. If a person wished to start a business, he or she could only do so as a sole proprietorship because forming a company required a minimum of two directors and members.

OPC registration process:

Step 1: Apply for DSC

Step 2: Apply for DIN

Step 3: Application of name approval

Step 4: Documents needed

The Memorandum of Association (MOA) outlines the company’s goals and      objectives as well as the business for which it will be incorporated. The Articles of Association (AOA) establishes the company’s operating      procedures. Since there is only one director and one member, a nominee on behalf of such a      person must be nominated so that if he becomes incompetent or dies and is unable to discharge his obligations, the nominee will act in his place.      Along with his PAN card and Aadhaar card, his consent in Form INC-3 would be taken. Proof of the proposed Company’s registered office, as well as proof of ownership      and a letter of authorization from the owner. Forms INC-9 and DIR-2 are used to declare and consent to the prospective      Director.

Step 5: Filing forms with MCA

Step 6: Issue of certificate of incorporation

Only a natural person who is an Indian citizen and also resides in India is qualified to serve an OPC as a member and nominee. The phrase “resident in India” refers to a person who has spent at least one hundred and eighty two days in India during the previous financial year.

What isincome tax exemption?

A tax exemption is the right to have all or part of one’s income free from federal or state taxation. The majority of taxpayers are eligible for numerous exemptions that lower their taxable income and select persons and organisations are fully tax free.

Tax exempt organizations:

When organizations serve the public good, such as religious or philanthropic groups, the government usually exempts them altogether from paying income taxes. The government relieves certain organizations of their tax burdens, allowing them to continue to promote public welfare.

Individual tax exemptions:

An individual can claim one tax exemption if he or she is not listed as dependent on another taxpayer’s return. This is a yearly rise in a fixed amount. The exemption decreases taxable income in the same way that a deduction does, but with fewer limitations. Both spouses receive an exemption if the taxpayer is married and submits a combined tax return.

Decoding income tax exemptions:

Exempt, Exempt and Exempt:EEE stands for Exempt, Exempt and Exempt and it has 3 types. Exempt 1, Exempt 2 and Exempt 3.

Exempt, Exempt, Taxed:The acronym EET stands for exempt-exempt-taxable, which means an investor can get two exemptions on their assets.

Exempt, Taxed, Exempt:The first exemption means that investment qualifies for exemption. The term taxable denotes a taxable return during the holding period. The final exemption means that any lump sum payment at maturity or withdrawal is tax free.

Normally, a tax saving five year fixed deposit fits into this category, where the investment qualifies for an exemption, but the interest income is taxable and the maturity is exempt. National saving systems are another example of this group.Section 80C of theIncome Tax Actallows for a tax deduction on these items.

TheIncome Tax Return (ITR) is a document that must be submitted to the Income Tax Department of India.It comprises information on a person’s earnings and the taxes that must be paid on those earnings throughout the year. The information in an ITR must be for a certain financial year, which begins on April 1st and ends on March 31st of the following year.

Documents required for filing ITR:

1. Form-16

2. Interest certificates from banks and post office

3. Form-16 A/ Form-16 B/ Form-16 C

4. Form-26AS.

The TRACES website has form 26AS. available for download. Login to your account on the e filing website, www.incometaxindiaefilling.gov.in, to download your form 26AS. After logging in, go to “my account” page and select “view 26AS.”. To download the form, the website will take you to the TRACES website.

What is a corporate tax?

A corporate tax is a tax imposed on a company’s profits. Taxes are levied on a company’s taxable income, which comprise revenue less the cost of goods sold (COGS) general and administrative (G&A) expenses, selling and marketing, R & D, depreciation and other operating costs.

Understanding corporate taxes:

As a result of the tax cuts and jobs act(TCJA), which president Donald Trump signed into law in 2017 and took effect in 2018, the federal corporate tax rate in the United States is now a flat 21%. Previously, the maximum corporate income tax rate in the United States was 35%.

Corporate tax deductions

Corporations are allowed to deduct certain essential and regular business expenses from their taxable income. All current operating expenses for the business are fully tax deductible. Purchases of investments and real estate with the intention of creating income for the business are also deductible.

Particular points to consider

The concept of double taxationis a major issue in corporate taxation. Certain corporations are taxed based on their taxable income. If this net income is transferred to shareholders, the dividends received will be subject to individual income taxes. Instead, a company can incorporate as an S corporation and have all the profits distributed to the shareholders. Because all taxes are paid through individual tax returns, an S corporation does not pay corporate tax.

The technique of recording and keeping track of your business’s financial transactions is known as bookkeeping. Your bookkeepers are required to compile financial resorts based on your company’s activity on a regular basis. These reports indicate your company’s financial situation as well as its performance.

In addition to managing financial records, bookkeeping services include:

1. Tax return preparation

2. Invoicing

3. Keeping track of performance indicators

4. Tidying up financial records

5. Keeping track of accounts owned and receivable

6. Management reporting

A bookkeeper’s job is to deliver accurate, up-to-date financial data to accountants so they can compile annual financial reports and tax filings for your company.

Services that bookkeeper can provide:

1. Data entry

2. Bank reconciliation

3. Accounts receivable, accounts payable and payroll

Hiring the best bookkeeping services

You have 3 options: employ a freelancer, hire a bookkeeping firm or adopt a remote bookkeeping solution. Each of them has its own set of advantages and disadvantages which will help you decide which is the best option for you.

Tips on how to hire the best bookkeeping services:

1. Consider experience

2. Ensuring proper education and training

3. Determine technical abilities

4. Consider paying attention to the details

5. Extensive cash flow and credit management experience

6. Planning and preparation of tax

You would register a company that runs a blog if you have a money-making blog. A blogging company must first be registered as a limited liability company, limited partnership, limited liability partnership, etc. it is not required that you use a Pvt ltd company or an LLP; you can also establish a simple solo firm, which is the finest legal entity for testing your ideas. You must register your trademark for your blog., even though it is not required.

There are 5 types of business registration:

1. Sole proprietorship firm

2. Partnership firm

3. Private limited firm

4. LLP

5. One-person company

Blogging Company registration process:

Step 1- obtain a certificate of digital signature (DSC)

The information technology act of 2000 contains provisions for the use of digital signatures on electronic documents to protect the security and authenticity of the papers filed electronically.

Step 2- acquire Director Identification Number (DIN)

With the addition of sections 266A to 266G of the Companies (Amendment) Act 2006, the notion of a director identification number (DIN) was introduced for the first time.

Step 3- create an account on the MCA portal by registering as a new user at mca.gov.in.

Step 4- form a corporation or file an application for a business license.

Some bloggers make money simply by having people click static or dynamic adverts or other embedded links on their blog pages that go to affiliate partner websites, or they get a commission when someone purchases a product or service on a partner website after clicking their link.

Essential points whilefiling income tax returns by NRIs:

1. The residential status of an NRI must be specified when it comes to ITR.

When filing ITR, NRIs must identify their residence tax status in India based on their time of stay throughout the fiscal year.

2. Selecting the correct ITR return form for NRIs

The ITR-1 form was created by the Indian government to make compliance saiser for taxpayers in the country. NRIs can also use the ITR-1 form to file their tax returns.

3. Aadhar number is not compulsory for NRIs

According to the Central Board of Direct Taxes, NRI citizens living in India are not required to include their aadhaar numbers while filing tax returns.

4. Include accurate assets and liabilities in ITR

NRs with a total of more than INR 5 million must report the cost of certain assets in India, as well as their associated liabilities, according to the assets and liabilities table.

5. It is optional to disclose a foreign bank account in ITR

Non-residents or non-citizens of India need not to declare details regarding their foreign bank account in ITR, if they do not claim a tax refund, according to a CBDT statement dated july 24, 2017.

6. Filing ITR is compulsory in case of exempt long term capital gain (LTCG)

Non-resident citizens should be aware that if their exempt LTCG income exceeds the basic tax exemption ceiling of INR 250,000 they must file an ITR, even if their total taxable income is less than the tax threshold limit.

Before we get to know about the Step by step procedure to register company in Bangalore let’s understand different types of company formations. Here are some of them listed for your reference:

Types of Company Registration-

Pvt Ltd Company OPC Company Limited Liability Foreign Company Nidhi Company Limited Company NBFC Producers Micro-Finance Section 8 Company

The process of registration of companies with the permission of MCA is an online company registration process. It will help to make a way to the company and also saves time and energy.

Once you register with our company, our specialists will guide you in the process of registration. Firstly, we will analyze your business structure and then provide the right type of registration that suits your needs for business.

The registration process can be controlled by our team online. We can give you a surety of best service with proper skills and knowledge.

Steps to start Business:

1. Evaluation

Connect with our experts to assess your business needs and determine the best business and legal structure for you.

2. Documentation

By completing a few simple questions about your company, you can get a feel for how smooth our documentation process is.

3. Select services

Select the services you want us to manage while you concentrate on your business.

4. Make payment and get started

Just one more step to complete your payment and our team will take care of the rest.

People are always looking for ways to pay less taxes and they look for all possible ways – like getting in touch with the best tax consultants, hiring the best CA firm, or getting the information available on the internet.

Directions to save tax in India:

1. By claiming expenses

To save money on  income taxes, you will have to claim the expenses you have incurred.

2. Investing in tax-exempt securities

Here are Top 10 ways to save tax in FY 2020-21:

1. Income from agriculture:

2. HUF and extra income:

3. Provisions under section 80C:

4. Amount received as per voluntary retirement scheme:

5. When HRA is not a part of salary:

6. When HRA is a part of salary:

7. Distribution of profit in partnership firm

8. Money spent on donation to political party

9. Expenses for treating specific diseases

10. Amount from provident funds

These are some of the small tips to save on taxes but I am sure if you would like to save even more book a free call with our tax expert at Chhota CFO, Bangalore – where they will guide you each and every ways to save money on taxes.