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Sunday, 31 January 2016
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Requirements for ST registration in India



Service Tax is an Indirect Tax in India enacted under the Finance Act, 1994. The government of India has streamlined the process of Service Tax Registration across India and a common set of documents are prescribed for the same. The entire process is online but require subsequent submission of the hard copies of the evidencing documents for approval of registration by the department.


For easy understanding, we are noting below the documents required for Service Tax Registration for each category of business. The Enclosures (Annexures) noted in the Table below can be obtained by requesting a mail to rp@ritulpatwa.com




































































































































































S. No.DOCUMENTS REQUIREDFor CompanyFor Partnership For ProprietorshipENCLOSURE
1PAN CARD – Self Certified : 2 CopiesYYY
2DIRECTORS/PARTNERS/PROPRIETOR DOCUMENTS/ INFO
a)PAN Card copy of Directors/Partners/Proprietor  – Self Certified : 2 CopiesYYY
b)DL/ Voter ID/ Aadhar Card/ Passport – Self Certified : 2 CopiesYYY
c)Mobile No of each Director/ Partner/ ProprietorYYY
d)E-mail ID of each Director/ Partner/ ProprietorYYY
e)Passport Photo of Authorised Person – 2 Nos.YYY
f)List of DirectorYNN
3Business Address Proof –
EitherOWN PROPERTY : Ownership Proof e.g. Latest Electricity Bill not older than 3 months, Latest Telephone Bill not older than 3 months, Registry Paper etc. (if Property in the name of close relative (i.e. father/ mother etc) than a No Objection Certificate from the legal owner is also required- NOC FORMAT ENCLOSED) – Self Certified : 2 CopiesYYYAnnexure – 1
OrRENTED PREMISES : Rent Agreement + Ownership proof of the owner (Latest Electricity Bill not older than 3 months, Latest Telephone Bill not older than 3 months, Registry Paper etc) – – Self Certified : 2 CopiesYYY
4Cancelled Cheque bearing preprinted name of applicant and A/c. No. – Duly singedYYY
5AOA & MOA – Self Certified : 2 CopiesYNN
6PARTNERSHIP DEED – Self Certified : 2 CopiesNYN
7BOARD RESOLUTION – On Letter Head – : 2 CopiesYNNAnnexure – 2
8AUTHORISATION BY THE PARTNERS – On Letter Head – : 2 CopiesNYNAnnexure – 3
9Business transaction numbers obtained from other Government departments or Agencies such as Customs Registration No. (BIN No), Importer Exporter Code (IEC), State Sales Tax Number (VAT), Central Sales Tax Number (CST), Company Index Number (CIN) which have been issued prior to the filing of the service tax registration application – Self Certified : 2 CopiesYYY
10COMPANY’s OTHER INFORMATION
a)Category of Registrant – Service Provider / Service Receiver or bothYYY
b)List of Service ProvidedYYY
c)Land Line Number (if any)YYY
d)Mobile No.YYY
e)E-Mail ID of the ConcernYYY
11DECLARATION FORM – Self Certified : 2 CopiesYYYAnnexure – 4
12UNDERTAKING – Self Certified : 2 CopiesYYYAnnexure – 5
13POWER OF ATTORNEY – Self Certified : 2 CopiesYYYAnnexure – 6

 




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Saturday, 30 January 2016
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Professional opportunity for Chartered Accountants


The opportunities for a Chartered Accountant are clearly vast, the scope massive. For a small and medium practice to grow, the firm has to “THINK BIG.”


Success comes only to doers and not onlookers and observers. Success demands maximum efforts. The key to success in life is to have faith in oneself. There is no shortcut to success. And there is no substitute to hard work. But hard work must be in the right direction in order to yield the fruits of success. If you are prepared to invest your time in activities that generate results from the most potent section of your client base, then the results you will generate will not be marginal but dramatic.


The secret lies in the Pareto principle Pareto principle stipulates that 80% of results are achieved from only 20% of the effort expended. Typically, this principle holds true for a chartered accountant’s practice, where the majority of time is taken up satisfying the needs of clients who represent an insignificant portion of total of business. To counter this situation, the chartered accountant may want to separate clients into three lists: the ‘A’ list of the upper 20% of clients, and the ‘B’ and ‘C’ lists made up of the remaining 80% of clients. The latter two lists should differentiate between clients that have or do not have the potential to become major clients. Accountants should then maintain ‘A’ list clients, cultivate ‘B’ list clients, and disregard ‘C’ list clients.


The following inspiring lines of a poem are relevant


Your reach must always exceed your grasp.

That is heaven on earth. Ultimately, your only competition is yourself.

Those who win are those who believe they can.


OPPORTUNITIES FOR CHARTERED ACCOUNTANTS


The listing below is an indication of the opportunities prevalent in various areas


I. Accounting Under IFRS


• Environmental Accounting

• Human resource accounting

• Fraud and Forensic accounting

• Government Accounting

• Management Accounting


II. Auditing


• Statutory Audit

• Internal Audit

• Concurrent Audit

• Stock Audit

• Revenue Audit

• Information Systems Audit

• Tax Audit

• Quality Audit

• Propriety Audit

• Legal Compliances Audit

• Energy audit

• Assurance on Sustainability reporting


III. Corporate Governance


IV. Economic and Commercial laws


• Competition Act 2002

• Arbitration and Conciliation Act,1996

• Prevention of Money Laundering Act 2002

• Micro Small and Medium Enterprises Development Act 2006

• Laws relating to Intellectual Property Rights

• Regulations applicable to NBFCs

• Foreign Exchange Management Act,1999

• Foreign Contribution (Regulation) Act, 1976

• Labour Laws

• Right to Information Act,2005

• Consumer Protection Act, 1986

• Special Economic Zones Act,2005

• Chapter VI of Foreign Trade Policy- 2004-09- 100% Export Oriented Units (EOU) / Software Technology Parks( STP) / Electronic Hardware Technology Parks(EHTP) and Bio- technology parks[BTP]

• Securitization and Reconstruction of Financial Assets and Enforcement of Security Interests Act, 2002 (SARFAESI)

• Recovery of Debts due to Banks and Financial Institutions Act, 1993

• Drafting and conveyance

• Carriage laws


V. Carbon Credit


VI. Corporate Laws


• Members of Judicial bodies

• Limited Liability Partnership

• Legal support and advisory services


VII. Taxation


• Direct Taxes

• Indirect Taxes

• International Taxation


VIII. Management Services


• Strategic Management

• Change Management

• Quality Management

• Disaster Management

• Knowledge Management

• Directorship


IX. Consultancy


To elaborate on some of the above,


A) Drafting, Conveyance, Stamping & Registration Drafting


Drafting may be defined as the synthesis of law and fact in a language form. Perfection cannot be achieved in drafting unless the nexus between law, facts and language is fully understood.


The old style of drafting of documents of the Eighteenth Century has given way for comprehensiveness, exactitude and clarity of expressions. The particular qualities that distinguish the modern style of drafting the use of definitions, division into numbered paragraphs and sub-paragraphs with marginal notes, the growing disuse of the form “shall” in stating circumstances and conditions, the use of one word (as “convey” or “assign”) for the jumble (grant, bargain, sell, alienate, release, confirm and enforce or bargain, sell, assign, transfer, set-off and confirm) that had often previously been necessary or thought to be so are to be found in any current set of precedents.- E.L Piesse & Gilchrist Smith: The Elements of Drafting.


Conveyance


The term Conveyance in its ordinary legal parlance means the act of conveying or transferring from one person to another or transfer inter vivos.


The Latin term Inter vivos is a legal term referring to a transfer made during one’s lifetime, as opposed to a testamentary transfer i.e a transfer that takes effect on death. Conveyancing depends to a large extent on practice, customs and usage, prudence and precedents. The most common type of documents that illustrate conveyance are a deed of sale, mortgage, lease etc.


However, “Conveyancing”, used in relation to drafting deeds, is paradoxical as the term “conveyancing” has wider use when its referred in relation to drafting of various other documents like a marriage contract, a will, etc. in which no transfer may be involved.


Registration


Registration refers to the recording of the contents of a document with a Registering Officer appointed by the State Government. The State Government may exclude any district or tracts of country from its operation.


The Registering Officer performs the important function of preservation of copies of the original document. The Registration of documents is made under the provisions of the Registration Act, 1908. The Registration Act 1908 is used for proper recording and registration of documents / instruments, which give them more authenticity Stamping Stamp duty is a form of tax that is levied on documents. Historically, a physical stamp (a tax stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document became legally effective


The following categories of Documents generally require drafting:


I. Documents for Formation of an Entity


1. Partnership Deed

2. MOA/ AOA

3. Charitable Trust Deed

4. Cooperative Societies (Rules & Regs)

5. MOA/ AOA of Societies u/ Societies Registration Act,1860

6. LLP Agreement and Incorporation Document

7. Trust Deed / Private Family Trust Deed (Indian Trust Act 1882)


II. Wills


III. Business Agreements


1. Arbitration Agreement

2. Joint Venture Agreement

3. Foreign Collaboration Agreement

4. Shareholders Agreement

5. Stock Holders Agreements

6. Stock Purchase Agreements

7. Acquisition Agreements

8. Franchisee Agreements

9. Research & Development Agreements

10. Technology Sharing Agreements

11. Advertising Agreements & Agency Agreements

12. Agency Agreements

13. Service Agreements

14. Consultancy Agreements

15. Hire Purchase Agreements

16. Credit and Conditional Sale Agreements

17. Agreements for Sale, Mortgage, and loan

18. Agreement relating to deposit of title Deeds

19. Tenancy Agreements

20. Franchising Agreements


IV. Property Agreements


1. Purchase of a Flat

2. Purchase of an Apartment in a Building (Commercial / Residential)

3. Purchase of a Plot of Land

4. Purchase License of Land /Apartment (Lease / Freehold)

5. Development Agreement

6. Will / Bequest Deed

7. Transfer Deed

8. Power of Attorney

9. Lease Agreement

10. Gift Deed of Property

11. Construction Agreement

12. Rent Agreement

13. Sale/ Purchase Agreement

14. Agreement to Sell

15. Deed of Mortgage of Property

16. Relinquishment Deed

17. Surrender Deed in Cooperative Housing Society

18. Mortgage Deed


V. Documents Relating to Intellectual Property


1. Patent and High Technology Agreements

2. Licensing and Franchise

3. Consulting and Know-How Agreements

4. Joint Development Agreements

5. Mass Market Licences like Shrink Wrap and use based licences

6. Licensing of Software and Source Code Escrow Agreements, Motion Pictures for multimedia use, photographs etc.

7. Software Development Agreements

8. Agreement for Sale of Technical Know-How

9. license of use of copy right

10. Agreements relating to protection of designs/ trademarks/ patents/ and know how


VI. Banking Documents


1. Bank Guarantee

2. Loan agreements / lease deeds

3. Overdraft agreements


VII. Documents for Export / Import


1. Letter of Credit

2. Documents for obtaining EXIM Finance

3. Documents for obtaining EXIM Finance

4. Agency Agreement


VIII. Documents relating to Labour Laws and Service Laws


IX. Documents relating to Insurance


X. Documents relating to Public Interest Litigation, Environmental Issues etc.


XI. Documents Relating to Private Equity Form of Funding


1. Business Plan

2. Term Sheet

3. Warranties and Indemnities

4. Disclosure Letter

5. Shareholders’ / Investors’ Rights/ Subscription Agreement


XII. Documents relating to cyber law


1. Internet agreements

2. Software agreements


B) MSME Chartered Accountants can explore opportunities in this area including formation, Registration, taxation and foreign direct investment. They can help large scale enterprises form systems to ensure that they comply with the deadlines for payment of any goods or services supplied by MSMEs. Also there are opportunities in counseling of MSMEs for the rights and benefits available to them.


C) Corporate Governance


• Designing Code of Corporate Governance

• Designing Risk Management Framework

• Designing Internal control framework

• Designing Whistle blower policy

• Internal Audit of Code of Corporate Governance, Risk Management Framework, Internal control framework, Whistle blower policy

• Compliance of Internal Audit of clause 49

• Statutory auditor’s Certificate regarding compliance of conditions of corporate governance as stipulated in sub-clause VII(1) of clause 49

• Management Audit pertaining to various regulatory, statutory or listing requirements (Item 15 of Annex. 1A of clause 49)

• Chairman of audit committee

• Independent director [clause 49 I(A)(iii) meeting a-f criteria]

• Assessment of internal control function under clause 49 V -CEO/CFO Certification


D) Carbon Credit


• Conceptualizing the project

• Drafting Project Concept Note

• Quantification of GHG Carbon Footprint

• Selection of Cleaner technologies for New projects

• Project risk analysis

• Making Project/ Project Design Document

• Legal and regulatory advice during negotiations with host country Designated National Authority (DNA)

• Advice on the appointment of independent validators

• Assistance to achieve registration of the project by the CDM Executive Board

• Ensure Compliances

• Tax structuring and optimization

• Assisting planning commission in their study

• Carbon Finance

• Advise to Govt- Central and state National Action Plan implementation

• Energy Audit

• Advise to investors about investment in carbon credit

• Accounting advisory services

• Taxation advisory services

• Drafting of Emission Rights Purchase Agreements ERPA


E) Corporate Insolvency and Restructuring


There are a broad range of opportunities that arise from corporate insolvency and financial restructurings.


• Spotting and evaluating distressed companies for restructuring and rescue planning.

• Reviewing the various risks involved in restructuring.

• Developing risk mitigation strategies.

• Working out a detailed bankable financial structure of the business.

• Working out a detailed plan for restructuring the business from all angles.

• Assessment of distressed assets, cash position, due diligence and turnaround feasibility.

• Advice on optimum utilization of resources.

• Drafting insolvency petitions.

• Representation and registration of sick companies with BIFR.

• Representation before the Debt Recovery Tribunals.

• Negotiating settlements.

• Identifying Areas Of Opportunity for the company.

• Advisory in relation to a merger or acquisition or takeover.

• Advisory services to management on an ongoing basis.


F) Competition Act, 2002 The Ministry of Corporate Affairs, Government of India has issued a Notification dated 28th August 2009, whereby the most controversial the Monopolies and Restrictive TradePractices Act, 1969 (“the MRTP Act”) stands repealed and is replaced by the Competition Act, 2002, with effect from September 1, 2009. The MRTP Commission will continue to handle all the old cases filed prior to September 1, 2009 for a period of 2 years.


It will, however, not entertain any new cases from now onwards.


G) Competition Act, 2002 Certification under ESIC in Maharashtra if number of employees are more than 40.


H) Central Excise Act Audit under Central Excise act is now allowed to be carried out by CAs.


Remember: 


If opportunity doesn’t knock, build a door.

Opportunities are never lost;

Someone will take the one you miss.


 





Professional opportunity for Chartered Accountants
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Director Identification Number (DIN)

It is an unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 153 & 154 of the Companies Act, 2013


Procedure of obtaining DIN


Any person intending to apply for DIN shall have to make an application in E-Form DIR-3 and should follow the following procedure:


1. E-Form DIR-3 has to follow the online e-Filing process.


2. Attach the photograph and scanned copy of supporting documents i.e. proof of identity, and proof of residence as per the guidelines. Physical documents are not required to submit at DIN cell.


3. Along with the supporting documents, Verification as per Form DIR-4 shall also be attached. This shall contain the Name, Father’s name, date of birth and text of declaration and physical signature of the applicant.


4. The e-Form shall have to be digitally signed and shall be uploaded on MCA21 portal.


5. Upon upload, Pay the fees for eForm DIR-3. Only electronic payment of the fees shall be allowed (I.e. Netbanking / Credit Card). No challan payment will be accepted under revised procedure of DIN allotment.


The applicant is required to get himself/herself registered on the MCA21 Portal to obtain login id, which is necessary for payment of the fees. After obtaining the login-id, Login to the MCA21 portal and click on ‘e-Form upload’ link available under the ‘e-Forms’ tab for uploading the e-Form DIR-3. e-Form DIR-3 will be processed only after the DIN application fee is paid.


6. Upon upload and successful payment,


Form DIR-3 is mandatorily to be signed by an Applicant and a practicing professional or secretary (who is a member of ICSI) in whole time employment or the Director of the existing company


Approved DIN shall be generated in case the form is being signed by a practicing professional and details have not been identified as potential duplicate. Provisional DIN shall be generated in case form is signed by secretary in whole time employment or Director of existing company and details have been found as potential duplicate. A suitable informational message and an email shall be provided to the user that the DIN shall be approved after due verification by the DIN cell.


7. Processing of e-Form DIR-3


In case, DIR-3 gets certified by the professional (i.e. CA(in whole time practice)/ CS(in whole time practice)/ CWA (in whole time practice)/, the DIN will be approved by the system immediately online (in case it is not potential duplicate).


8. Post-approval changes in particulars of Form DIR-3


If there is any change in the particulars submitted in e-form DIR-3, applicant can submit e-form DIR-6 online. For instance in the event of change of address of a director, he/ she is required to intimate this change by submitting e-form DIR-6 along with the required attested documents.


What things should be taken care of while filling form DIR-3?


Please note that Income Tax PAN is mandatory in case of Indian applicants so the applicant details (name, father’s name, date of birth) should be as per the PAN details. The particulars filled in form DIR-3 should match with the details given in the supporting documents to be submitted along with DIN application. Any mis-match will lead to rejection of DIN application.


Whether any fee is payable along with application for allotment of DIN?


Yes, DIN application fee of Rs. 500/- is payable.


How to enquire about the status of the payment made for Form DIR-3?


Status of the payment made for Form DIR-3 can be enquired from ‘Track Payment Status’ link on the homepage of www.mca.gov.in.


What are the scanned documents required to be attached with eform DIR-3?


Please ensure following before attaching supporting documents with DIN application:


• Documents submitted are currently valid and not expired.


• Documents issued by LIC may be enclosed as Date of Birth and Address proof.


• Bank Statements, Utility Bills like telephone, electricity bill etc furnished as residence proof are in the applicant’s name only and not older than two months.


• All supporting documents attached with form DIR-3 must be duly attested by an authorized person/ authority.


• In case the director is illiterate, thumb impression should be certified from the concerned revenue authority (where the applicant resides) and then all the documents should be notarized or attested OR if applicant is not in a position to sign the application due to medical reasons and affixed thumb impression on the application then duly attested medical certificate from Government hospital is must with the application stating the reason of his / her ailment.


What things should be taken care of with regard to supporting documents


ID proof must be currently valid and issued by the Central/ State Government or Instrumentalities of state like PSUs, Public Sector Banks, Universities recognized under the UGC Act. It should contain following information:


• Applicant’s name with photograph

• Father’s Name

• Date of Birth



Director Identification Number (DIN)
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Wednesday, 20 January 2016
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Suggested study plan for CA Final May 2016

CA Final exams of May 2016 are coming closer. We have sufficient time for exam preparation. ICAI have already declared CA Final results. Last attempt (NOV 2015) ICAI declared very low pass percentage that means we have to do more hard work. Our preparation should be started from 1st Feb 2016. Here we have almost 3 months for preparation. If you follow given study plan, I am damn sure that you can get 60 + marks in each and every paper.


Suggested study plan for CA Final May 2015:


Here I’m giving study plan for 3 months. We can definitely complete our preparation in 3 months very easily. In these 3 months preparation, you have to do 3 times of revision for CA Final exams. Below I have given the study plan for CA Final exams preparation.


Preparing For Examinations:


1. A student is required to prepare thoroughly for examinations well in advance and to devote at least two hours daily for studies while undergoing Article Training.


2. During leave period, at least 14 to 16 hours’ hard work is required.


3. Avoid mobiles, internet and television as far as possible.


4. Students must study from study material and do practice from practice manual. Wherever a particular topic or point is not clear, a student may refer to a standard text/reference book.


5. Students should refer suggested answers of questions set of last five/six examinations and Revision Test Papers. It is strongly recommended to solve the questions first without referring to solutions and then comparing the answers with the solutions given. Such an approach would help in knowing point of mistake and presentation pattern of an answer.


6. In law papers, Section and its provision is to be given correctly. If a student is not sure about the Section number, then he should not quote the same.


How to utilize time during leave period:


Get up early in the morning at 4 AM. Be ready by 5 AM. This period (4.00 AM to 6.00 AM) is called ‘Brahma Murat ’ and studies done during this period cannot be forgotten i.e. they remain in memory for long.


5 AM. To 7.00 AM


Read Theory


7 AM. to 7.30 AM.


Breakfast Time


7.30 AM to 10.30 AM


Read theory – mind is always fresh in the morning


10.30 AM to 11.00 AM


Relaxation Time


11.00 AM to 1 PM.


Do/solve practical problems.


1 PM to 2 PM


Lunch Time


2 PM to 3 PM


May take short sleep


3 PM to 5 PM


Do/solve practical problems.


5 PM to 5.30 PM


Have a break.


5.30 PM to 8 PM


Read theory.


8 PM to 9 PM


Dinner Time


9 PM to 10 PM


May go for outing – watch T.V


10 PM to 12 PM


Do/solve practical problems


12 PM to 4 AM


Have sleep


Reading Time Eating Time Relaxation Time


Study plan for CA Final May 2016 – 1st Revision


1st Revision


No. of days = 60 days

Daily preparation hours = ( 13+1 ) = 14 hrs.


Subject


Daily preparation time for each paper


Total hrs.


Refer previous day’s revision

(in early morning )


½ hr x 60 days


30 hrs.

Financial Reporting


2 hr x 60 days


120 hrs.


Strategic Financial Management


2 hr x 60 days


120 hrs.


Advanced Auditing and Professional Ethics


1 hr x 60 days


60 hrs.


Corporate and Allied Laws


Section A: Company Law


Section B: Allied Laws


2 hr x 60 days


120 hrs.

Advanced Management Accounting


2 hr x 60 days


120 hrs.


Information Systems Control and Audit


1 hr x 60 days


60 hrs.


Direct Tax Laws


2 hr x 60 days


120 hrs.


Indirect Tax Laws


Section A: Central Excise


Section B: Service Tax


Section C: Customs


1 hr x 60 days


60 hrs.


Once again refer that full day’s revision


(Before going to bed )


½ hr x 60 days


230 hrs.

Total


14 hrs. x 60 days


840 hrs.


You have to complete your 1st revision in first 60 days and also you have to complete full syllabus of CA Final in your study material in this period.


Here study material means your own class notes/tutorials, own material or any preferred publishers publication. Even you can prepare both CA Final study material and practice manual of ICAI.


Study plan for CA Final May 2016 – 2nd Revision


No. of days = 15 days

Daily preparation hours = ( 13+1 ) = 14 hrs.


You have to complete your 2nd revision in next 15 days and once again you have to complete full revision of your study material which you prepared in 1st revision. But this time you should prepare for both CA Final study material and practice manual of ICAI.


Note: preparation of ICAI’s study material and practice manual is a must. So you should do this in 2nd revision.


Subject


Daily preparation time for each paper


Total hrs.


Refer previous day’s revision

(in early morning )


½ hr x 15 days


7.30 hrs.

Financial Reporting


2 hr x 15 days


30 hrs.


Strategic Financial Management


2 hr x 15 days


30 hrs.


Advanced Auditing and Professional Ethics


1 hr x 15 days


30 hrs.


Corporate and Allied Laws


Section A : Company Law


Section B : Allied Laws


2 hr x 15 days


45 hrs.

Advanced Management Accounting


2 hr x 15 days


15 hrs.


Information Systems Control and Audit


1 hr x 15 days


15 hrs.


Direct Tax Laws


2 hr x 15 days


15 hrs.


Indirect Tax Laws


Section A : Central Excise


Section B : Service Tax


Section C : Customs


1 hr x 15 days


15 hrs.


Once again refer that full day’s revision


(Before going to bed )


½ hr x 15 days


7.30 hrs.

Total


14 hrs. x 15 days


210 hrs.


3rd Revision


No. of days = 15 days


In this 3rd revision, there is no particular time table. Just concentrate on your weak areas of subjects. Once again, revise all the subjects which you completed in last 2 months(1st and 2nd revisions). This time, also prepare previous years papers, mock test papers, RTP’s and other model papers which are you have.


 



Suggested study plan for CA Final May 2016
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Thursday, 14 January 2016
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Requirements for Incorporation of Private limited Company

Requirements for Company Incorporation


For Filing Name Availability (Form INC 1)


a. Number of Promoters. Provide DIN, PAN Xerox of both sides, and Address proof Xerox of all promoters.


b. Email ID, Phone number (landline if available, mobile number) of applicant promoter.


c. Provide Object of the company in brief through mail.


d. Whether promoters have sole proprietary business or Partnership business with the same proposed company name?


e. Whether proposed name includes name of promoter’s relative?


f. Can provide maximum of 6 proposed names in order of preference with significance of such names.


RD-1:( For obtaining license under sec 8 of the Companies Act)


Requirements:


INC-14-Declaration from Professional on stamp paper and notary


INC-15 Declaration from Professional on stamp paper and notary


Estimated Annual Income (for next three years) stating the source of income and objectives of expenditure.


Brief Profile of Promoters.


For Filing Incorporation Forms


Form INC 7


a. Proposed Capital of the company.


b. Provide any of following as proof of identity with self attestation


Voter Identity Card

Passport copy

Driving License

Aadhar Card.

c. Provide any of following as proof of residence with self attestation


Bank statement of previous 3 months.

Electricity bill of previous month

Telephone bill of previous month

Mobile bill of previous month

d. Provide 2 Passport photos of promoters of the company.


Sign on INC 9, INC 10

Confirmation on main objects in MOA.

Filled and signed subscription sheet from promoters.

Form DIR 12


Number of persons to be directors in the company.

Name of person if any of the directors want to be a managing director.

PAN and Address proof(Passport/) Xerox of all proposed directors with self attestation. The signature on all incorporation documents should same as in their PAN card.

Phone numbers, mail IDs, occupation of all proposed directors.

DINs of all proposed directors.

Sign on affidavits and DIR 2 prepared.

Form INC 22


Address of Registered Office to be.

Whether such place is owned by director or taken on lease?

If owned by director:- Provide electricity bill of previous month and NOC from director.


If taken on lease:- Provide electricity bill of previous month, NOC from owner and copy of rental deed.



Requirements for Incorporation of Private limited Company
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How to Identify and Avoid Tricky Financial Advisors?

It is a common thing to hear these days that when you are looking for a suitable investment plan to fit in to your financial plan, not every time can you expect the correct advice from the financial advisors.


While discussing about investment with an advisor, many times you might come across incorrect guidance. It is at this time where one gets to how to handle things wisely and stay protected from such advices that might trap you in the end.


When we conducted a small survey, we found advisors (or the so-called relationship managers) misguiding the naive and easily trapped customers, and pushing them to unsuitable & high commission investments. This was clearly as a profitable situation for the distributor, and not the investor who is investing his hard-earned money.


Let us consider a few situations where these advisors can/may trick the investors, based on incorrect information given by the former.


Tax-saving fixed deposits or ULIPs or PPF:


The moment one seeks advice about investing in FDs, the advisors say that the returns from FDs, both principal and interest are taxable. They suggest the customers to invest into ULIPs (unit-linked insurance plan), which according to them gives tax-free returns. Many large private banks were inappropriately entrapping customers into this. However, what they showed was not actually the real picture. When researched upon what they suggested, we found that the advisors never explained that the returns from ULIPs are unsure, and rather linked to the market situations.


In case of FDs too, only the interest on it is taxable, while the principal amount is not. In no case, the advisor has suggested risk free and tax free PPF as a better alternative. PPF investments don’t get any commission to agents or advisors. Now I need not explain why they didn’t recommend PPF to investors.


Equity Mutual Funds and ELSS Funds:


Here too, when asked for investments into diversified equity funds, the advisors tried to sell us a ULIP. They even try to criticize mutual funds, just to make them appear unattractive to customers as compared to ULIPs. They even tell you that mutual funds are expensive compared to ULIPs.


However, the told story is not always the real one. In fact, mutual funds are the cheapest way to invest into stocks.


Monthly Income Plans:


The wealth managers, who are insistently marketing upon the capital protection oriented plans, never tell you about these being closed-ended and offering limited liquidity to the investors. The fact is the closed ended capital protection funds are more or less similar to the open ended Monthly Income Plans of Mutual Funds.


Closed ended funds pay more commission to agents or advisors and open ended funds pay less commission to agents. Now I need not explain why capital protection funds are sold more than the Monthly Income Plans.


Term Insurance Plans:


Many a times, you will find advisors telling you that term insurance plans (the best form of life cover), are a waste of money. It was actually ridiculous for them to say that the premium goes waste because the same does not have a maturity value. In fact, all investment plans (including the traditional ones and ULIPs) levy charges for mortality.


Low-cost ULIPs:


In such scenarios, the insurance agents tried pushing the traditional schemes over ULIPs, arguing that the former sell more than the plans that are market-linked. Even being far more customer-friendly, no advisor wants to sell low-cost ULIPs, because of the low commission that they offer.


Tax-free Bonds:


The advisors might tell you about the necessity of a demat account for investing in tax-free bonds. However, the truth remains that one can purchase these bonds in physical form as well, and can go for dematerialization at a later stage.


If you find yourself into any of the above scenarios, you need to keep an eye on whether or not your advisor is misleading you to a wrong investment advice. In such situations, you must have some warning signals to watch out.


Take time to think about the most appropriate option, as if it is your last:


Take your investment seriously, and do not make a hassled decision, influenced by whatever the advisor tells you. There is a probability of the advisor to give a wrong advice, too. So, take your time to think and research about the product, in order to find out how it fits into your financial strategy. Do not just make a decision in the first couple of meetings.


Avoid the products that do not fit into requirements:


A financial advisor must first understand his/her customer’s needs, to be able to offer the best investment product. If your advisor does not inquire about your basic things, how will he be able to benchmark your needs? One should try avoiding financial advisors offering such insurance policies.


Beware in case your advisor prevents you from considering other products:


If in case, your advisor offers something other than what you have asked for, it is time you open up your eyes. One thumb rule to remember is that ‘never invest into options you do not understand’. Do not believe anyone unless you are completely sure of the features and working of the product that you are look forward for investment.


Remember no market-linked product is completely risk-free:


The time you come across any advisor offering you any market-linked product and that too, risk-free, be sure of the advisor making a fool around you.


Take indications from the past:


Your past performance as an investor is always a good indicator of the future performance. However, there is never a guarantee of the same, subject to market risks. Therefore, look out for various things, before you actually make a decision to invest.


In the investment world, you are safe as long as you don’t make major mistakes. One such major mistake is to falling prey for misleading advice. If you could identify and stay away from tricky financial advisors, your money is definitely safe. One such way to be alert is to create a unique workable financial plan to achieve all your life financial goals.


The author is Ramalingam.K an MBA (Finance) and certified financial planner. He is the Director & Chief Financial Planner of holistic investment planners​ (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He Can be reached at​ ramalingam@holisticinvestment.in



How to Identify and Avoid Tricky Financial Advisors?
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Decoding GST (Part 1) - Road to GST

To set the stage for the ambitious reform legislation, the Union Cabinet under the leadership of Shri Narendra Modi ji on 17th December, 2014 approved the proposal for introduction of a Bill in the Parliament for amending the Constitution of India.


The Constitution (One Hundred & Twenty Second Amendment) Bill, 2014 as proposed under Bill No. 192 of 2014 containing 21 clauses was introduced by the honourable Finance Minister Shri Arun Jaitley jion 19th December 2014 in the 16th Lok Sabha. The Bill was passed by the House on 6th May 2015, receiving 352 votes in favour and 37 against it. All 37 no votes came from members of the AIADMK. The Indian National Congress party opposed the Bill and walked out from the Parliament.


The Government attempted to move the Bill for consideration in the Rajya Sabha on 11th May 2015, however, members of the Opposition repeatedly stalled the proceedings of the house. In order to appease the Opposition’s demand for further scrutiny of the Bill, Mr. Jaitely moved a motion to refer the Bill to a Select Committee. The 21 member Committee under the chairmanship of Shri Bhupender Yadav submitted its report on 22nd July, 2015 in the Parliament recommending various changes.


The cabinet accepted most of the changes in the GST legislation proposed by the Select Committee on 29th July, 2015. Now the 122nd Amendment Bill, along with the changes approved by the Union Cabinet has been placed before Rajya Sabha for its approval where it is required to be passed by the 2/3rd of the members present and voting.


THE ROAD AHEAD


The much awaited Goods and Services Tax (‘GST’) now seems to be a reality as the broad contours are slightly visible but still the bill has a long way to go. If the bill gets passed in the Rajya Sabha, the government will have to again go back to the Lok Sabha for getting the Lower House approval for the proposed changes approved by the Cabinet. Then the bill needs to be passed in atleast50 percent of the state legislatures (i.e. 15 of 29 states) by a way of simple majority. Then it will be sent to the President for his approval.


The general perception is that this Bill itself is a GST Bill, let it be very clearly understood that this is not a GST Bill. In fact, GST Bill is not in sight at all at this point of time. What we have discussed till now is only the Constitutional Amendment Bill enabling or empowering the Union Government and state governments to concurrently levy a tax to be called GST which it cannot levy under the present Constitution.


The point to be noted over here is that a Joint Session of the Parliament cannot be called in the case of a Constitutional Amendment. Also these changes cannot be brought as a money bill because constitutional amendment is necessary for empowering the govt. to facilitate the introduction of Goods and Services Tax (GST) in the country as in the proposed GST model both the Central and State govt. will levy tax on a common base.


Suitable legislation for the levy of GST (Central GST Bill and State GST Bills) drawing powers from the Constitution can be introduced in Parliament or the State Legislatures only after the enactment of the Constitution Amendment Bill and on the recommendation by the Goods and Service Tax Council.


Unlike the Constitutional Amendment, the GST Bills would need to be passed by a simple majority. Obviously, the levy of the tax can commence only after the GST Law has been enacted by the respective legislatures. Also, unlike the State VAT, the date of commencement of this levy would have to be synchronized across the States. This is because the IGST model cannot function unless the Centre and all the States participate simultaneously. Its expected roll out date is 1st April, 2017 (earlier it was 1st April, 2016).



POLITICAL SCENARIO


All thanks to the political wrangling, GST has missed several deadlines(be it of 1st April,2010 or 1st April,2016). Now, all the eyes are on the Post Budget Session as The numbers in the Rajya Sabha will somewhat change by the latter half of the Budget session this year favourable for political parties that support the goods and services tax (GST) Bill. This has given government strategists confidence that the tax reform Bill can be passed after April. Government strategists are, therefore, also mulling postponing the GST rollout date from April, 2016 to April, 2017.


A Constitution amendment Bill needs to be passed by two-third majority. Current strength of the Rajya Sabha is 242, with three vacancies. This is an arduous task for the Government given that if all members were to vote, it will need 162 votes in favour. All parties barring the Congress (67 MPs), AIADMK (12 MPs) and Left Parties (10 MPs) support the Bill or are not in outright opposition of the bill. This implies that out of 245 members, 89 belong to the parties opposing the bill finally approved by the Cabinet. Together, these parties make up a little more than one third of the seats in the Rajya Sabha (Approximately 9 surplus seats).


The President nominates 12 MPs, of which currently there are two vacancies and two others,Sh Mani Shankar Aiyar and BhalchandraMungnekar, later opted to be treated as part of the Congress.For the rest 8 nominated persons at present, the government believes most of themwill vote with the Congress, as they were sent to Parliament by the UPA government.


The Bihar chief minister Sh.Nitish Kumar has made it clear that his party supports the GST bill but that the government should get support of the Congress first. His party Janata Dal (United) has 12 MPs. Also there are other parties as well like Samajwadi Party, Shiv sena who can cast votes against the bill, having 15 and 3 members respectively, as they have been in news sometimes in support of the bill and sometimes making statements against it.


Thus it is clear that the Government is nowhere near the required majority.Therefore it becomes necessary for the Government to take Congress on Board or keep waiting for the improving numbers to get the required consent in the Upper House.


As many as 17 MPs will end their terms by April 2016, including five from the nominated category.These are Aiyar, Mungnekar, Javed Akhtar, B Jayashree and Mrinal Miri.


Of the 12 elected MPs set to retire by April, five are from the Congress, three from Communist Party of India (Marxist), two each of the BJP and Shiromani Akali Dal. Government strategists forecast that after these 17 are elected or nominated, numbers of those in support of the GST bill will improve.It is also confident that the AIADMK could be persuaded to stage a walkout at the time of voting.


The only case where the Government will not have to bow down to the demands of the congress is when it is able to convince the AIADMK and LEFT MP’s in the Rajya Sabha to abstain from voting, fill in the 7 seats of nominated category, fill in the other vacant seat. Almost all other parties support them. All such pre conditions seems to be quite a difficult task for the floor managers.


Without taking Congress on the board, the passage of the Bill seems in the dark.But the bigger concern is whether the opposition will allow the Parliament to work even in the Budget Session.


The only bottleneck seems to be in the passage of the bill in the Rajya Sabha. As once it gets passed in Rajya sabha, it has to be approved byatleast 15 states. Looking at the present political situation it is achievable.


BJP presently has standalone governments in the 5 states namely Gujarat, Chattisgarh, Madhya Pradesh, Rajasthan, Haryana.It has coalition government in 7 states, having their own CM in 3 of them namely Goa, Maharashtra and Jharkhand. The other 4 states have CMs from their allied parties (NDA) namely Punjab, Nagaland, Andhra Pradesh and Jammu & Kashmir.


Also the elections are due in the states of Assam, Tamil Nadu, West Bengal and Kerala. So there is only a scope of improvement for the NDA alliance, no scope of losing any territory. Moreover although there is no NDA govt in West Bengal, but the ruling TMC has given its outright support for the GST Bill. Thus we don’t see Government struggling to get it passed in atleast 15 legislatures to make it a reality.


If not in this Budget session, then the Govt will have to wait till next round of rotation getting due somewhere before winter session of 2016 where around 55 more seats will come up for re-election.


Disclaimer: The Rajya Sabha tally as on 7th January,2015 has been taken into account while drafting this article.


Views expressed are strictly personal. The content of this document are solely for informational purpose. It may or may not depict the legal position sought to be conveyed by the statute. It doesn’t constitute professional advice or recommendation. Readers are cautioned to evaluate the actual legal position before acting on this write up. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.


(Author may be reached at email id: jainsamarth@live.com)


(Source: Compilation from Rajya Sabha website and News Columns.)



Decoding GST (Part 1) - Road to GST
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