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How To Become A Tax Expert

Every person who dreams to earn millions faces taxes, companies plan elaborately to handle…

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Every person who dreams to earn millions faces taxes, companies plan elaborately to handle taxes, a common person goes through millions of web pages to understand taxes, but even after all of this, Tax is an elusive topic. For some taxes are a necessary evil for others a sign of equal treatment, but what is important is understanding taxes. These are the reasons why being a tax expert is so sought after.

Having the skills to understand an elusive topic like taxes, can take you to higher places in life. From small businesses to large MNCs, everybody is filing taxes. As a tax expert, your role will be to hold your client’s hands and teach them to maneuver the “tax world”.

You will also play a middle man role between tax authorities and your client when they prepare their tax papers. Being proficient in the tax laws of your country is essential to succeeding in this role. You will be studying lots of calculations, various rules and regulations, and the various schemes the country offers to taxpayers. Your primary task will be to measure taxes, inform your client of rules and regulations and coordinate with tax authorities.

Like any other profession, becoming a tax expert is not the result of reading a few blogs, but a quest for understanding. You will have to pursue professional courses from a recognized University along with nurturing a few key skills that we shall discuss later.

Courses To Swear By!

Ideally after your higher secondary your quest to become a tax expert starts. You will have to complete your undergraduate first and then pursue a post-graduation in taxation. There is a second path too that can be pursued after graduation. Let us have a closer look at what you should be doing;

  • Under Graduation
    Once you have completed your higher secondary, look for undergraduate programs related to taxation. Finding a bachelor’s course that offers specialization in taxation might be difficult. You can go for other related fields that you will need to become a successful tax expert, like taxation courses in Ahmedabad.

    Pursuing your bachelor’s from a reputed institute is also preferable. Choose carefully the institute to pursue a bachelor’s degree, as it will be the base to you becoming a good tax expert. Exposure and quality are the important factors while choosing an institute and not an advertisement.
  • Post Graduation
    The ideal choice after graduation is to pursue post-graduation. In this step, you set yourself for success as a tax expert. Your post-graduation should be in taxation. It will give you all the information you need on how the tax world functions. Keep in mind to get as much exposure to the real-world scenario as possible. An internship under a tax expert will set you up perfectly for your tax expert journey. Again, a reputed institute is advisable, but exposure and quality of education are key factors.
  • Chartered Accountant
    If you want to become a tax expert. Chartered accountancy course is most preferable course in India. The course includes in-depth knowledge of direct as well as indirect taxation. The course offers you to become expert in the field of taxation.

    There is also compulsory internship requirement.  You have to undergo with 3 yeas training under qualified chartered accountant so that you will get the practical exposure to the taxation and accounting. If you are not getting the work related to taxation in the internship you can also prefer to join taxation course in Ahmedabad.

Additional Skills To Add On!

So you have the required qualifications, but without skills, you will not be able to find employers. Let us see some essential skills that a tax expert must possess to become successful.

  1. Leadership
    As a tax expert, you will be in charge of the entire taxes of a huge MNC or a billionaire client. You must have the leadership skills to maneuver challenges and issues that your clients face during their filing of taxes. You might also be required to lead other departments and guide them through the process of tax filings. Thus, a tax expert who can lead from the front and find solutions to problems is bound to succeed.
  2. Up to Date
    The Legislature is always alive coming up with new tax regimes to better fit the society. A tax expert must have the skills to keep up to date with all these changes. A habit of reading newspapers, participating in discussions, seminars, etc. are a few ways to develop these skills. The client is only as aware as the tax expert handling them. Being up to date is crucial for a tax expert to make sure their clients can steer clear of fines and sanctions.
  3. Technical expertise and exposure
    As a tax expert, if you have early exposure to the tax world you will benefit a lot. An internship or a project that you were a part of during your education can help build the expertise needed to succeed. The world of taxes can get complicated with different sectors of the market subject to variable tax regulations. Technical proficiency is a must to understand and find out faulty metrics and partially informed tax filings. Having said that, there are many elite coaching institutes that provide taxation training in Ahmedabad that you could benefit from. Consider checking them out. 

Conclusion

Taxes are a tool deployed by the government to support the development of the country. As a tax expert, you have to make sure that your client pays their taxes without any hassle. You will essentially be the bridge between the government and the client. People might say that taxes are unnecessary, but you must know better. You will also have to be clear and educative with clients and help them better understand the tax regime. A tax expert must be abreast of all the changes in the tax regimes. They must also have the proficiency to deal with mishaps and the composure to work with teams. At the end of the day, a tax expert has to be the one who can see right through the elusiveness of the “Tax World”

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Learn Commerce structures IV: Public Limited Company

An organization that functions as a single entity formed and owned by shareholders is…

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An organization that functions as a single entity formed and owned by shareholders is called a Public Limited Company. It constitutes a company that can freely sell its shares in a public domain and all its decisions are governed by strict rules and regulations.

In the Indian Republic, a Public Limited Company is the largest method of doing business available under the law. Often a group of people who have a great business idea, register for a Public Limited Company and generate capital by offering shares that can be bought by the public. In the present economic scenario, Public Limited Company is very profitable and thus gaining further education in Public Limited Companies after BCom course in Ahmedabad, proves beneficial.

What is a Public Limited Company?

A Public Limited Company in layman’s terms is a company formed and by the people and makes profits for the people. Thus, a company that is registered as a Public Limited Company cannot and will not have a specific owner. This makes sure that a one-head monopoly is avoided in the company.

Let us take an example of a famous Public Limited Company in India, The State Bank of India. Founded in 1955, as an amalgamation of the three princely state banks in British rule, The State Bank of India is one of the most prominent examples of a Public Limited Company. All the shares of the State Bank of India are listed on the National Stock Exchange and the Bombay Stock Exchange for sale to the public.

There is no owner of the State Bank of India and all the profit generated is paid to employees and shareholders as dividends. The presence of the State Bank of India makes sure that the banking sector is free of monopoly by a mogul or one single private bank.

Who is the owner of a public limited company?

The most distinctive aspect of a Public Limited Company is its ownership. In a private company, the owner is either a parent organization or a group of people who founded the company.

Unlike private companies, a Public Limited Company is purely founded and owned by the public. Thus, a Public Limited Company will not have an owner but rather it will have shareholders. The management of a Public Limited Company is looked after by a Board of Directors (we shall discuss this in the features of a Public Limited Company).

What are the features of a public limited company?

Let us try to analyze the features of a Public Limited Company to gain better knowledge;

Legal Existence: A company that is registered as a Public Limited Company shall have separate legal existence from the members who own the company. This means that if a group of people come together and create a Public Limited Company then once the company is formed, it gains a separate identity. All legal documents like GST invoice, court notices shall be issued in the name of the company and not the owners or the management.

Capital: A Public Limited Company has to collect capital for its expenses and procuring its raw materials. Most Public Limited Companies collect capital by selling shares to buyers in the public domain. When you buy a share in a Public Limited Company, you own a certain percentage of the company. The capital generated by selling public shares is called the share capital.

Shareholders: A Public Limited Company is owned by shareholders. This means that no person can claim the company as their own private company. But shareholders cannot take part in the management decisions of the company. Their sole role is to elect the managerial committee often the Board of Directors that looks after the major business decisions of the company.

When a company is indebted and is liquidated, the shareholders do not have to pay the creditors of the company. Rather they have to pay only the face value of their shares. For example, say you hold a thousand shares in a company each worth ten rupees. If the company goes bankrupt, you will have to only pay the face value of the shares that is; ten thousand rupees.

Board of Directors: Almost all companies today, public or private, establish a board of directors to look after major business decisions of the company. The difference here is, the board of directors in a Public Limited Company are selected by the shareholders and they represent these shareholders during meetings with other companies. The decisions taken by the Board of Directors use a majority rule and this ensures unity in the management.

What are the merits of a public limited company?

Public Limited Companies are often the largest companies in a business. Let us analyze a few of the merits of a Public Limited Company;

Leadership: As stated earlier, Public Limited Companies have a board of directors. This ensures that the company is led by a consensus rather than the whims of a single leader. The main advantage of having a board of directors is that these directors are selected from the shareholders and by the shareholders.

Large Capital: One of the largest advantages of a Public Limited Company is that they can generate huge capital investments. By selling their shares in the public, Public Limited Companies generate a huge capital for their expenses. Once the Initial Public Offering (IPO) is over and the share capital has been generated, Public Limited companies can release bonds and debentures through the stock market to generate additional capital. Thus, Public Limited Companies that have a strong performance can generate greater capital over time.

Financials: Public Limited Companies are strictly governed by rules and regulations. Thus, they are required to publish their financial records every year. Unlike private companies, Public Limited Companies have to make sure that their investors know the financial happenings and position of the company. This adds an element of safety to Public Limited Companies and helps them in attracting potential investors.

Limited Liability: Shareholders in a Public Limited Company are protected from incurring the company’s losses. What this means is that shareholders have to pay only the face value of the shares they hold in a company if it goes bankrupt. This facet also makes sure that Public Limited Companies are separate entities on their own and can also be sued on their own without the involvement of the shareholders.

What are the demerits of a public limited company?

Though there are many advantages to a Public Limited Company, there are few disadvantages too that we need to discuss;

Public Books: On the one hand publishing financial records every year, helps Public Limited Company attract investors but at the same, this also means that their competition knows everything about them. Since the company has gone public, the competition can easily analyze their finance books and see the loss and profit that the company is experiencing. This aspect poses great difficulty to Public Limited Companies.

Greedy Shareholders: Often the public has no interest in the working of the company. Investors today want to make an easy buck and this means that they do not pay any attention to the detailed plans a company lays down to expand. Greedy Shareholders take no part in developing these plans and often prove detrimental to the company’s plan.

Takeover: Unlike private companies, Public Limited Companies are prone to takeovers since the board of directors is selected by shareholders. A hostile party may buy a huge number of stocks in the company and gain a significant voice in the board of directors. This means that a hostile party can gain ruling command in a company and derail the existing chain of command.

Is there any specific member requirement in a Public limited company?

A company that wants to register itself as a Public Limited Company has to have a minimum of seven members. The maximum limit for the number of members in a Public Limited Company does not exist, unlike Private companies that can have a maximum of two hundred members only.

This gives an advantage to the Public Limited Companies as they can have a huge number of members. Specific employee requirements can further dwell in deeper after commerce courses in Ahmedabad.

What are the requirements for Public Limited Company registration?

In today’s time, the Government of India has made registering Public Limited Companies easier as compared to earlier times. According to the Ministry of Corporate Affairs, there are three mandatory requirements that a company has to fulfill to register itself as a Public Limited Company;

  • The company must have a minimum of seven share holders.
  • The company must have a minimum of seven share holders 
  • The company must introduce minimum share capital of Rs 5 Lacs
  • All sections of the company should have a direct impact on its compliances.

What are the documents required for registration?

There are two sets of documents required for registration, one set for the directors and shareholders and the other set for registering the company office;

Directors/ Shareholders

  • Copy of PAN Card
  • Aadhar Card
  • Address Proof (Bank Statement, Mobile bill, Telephone bill)
  • Authorization Form

Registered Office

  • Ownership Proof (Electricity Bill, sale deed, copy of index II, Tax Bill, etc)
  • Utility Bill (Gas Bill, Electricity Bill)
  • NOC

What is the process of registering a Public Limited Company?

The process involved in registering a Public Limited Company is;

  • Identify Seven Shareholders and Three directors (Minimum numbers you may have more)
  • Obtain a Director Identification Number (DIN): Every director of the company must have a DIN allotted to them by the Ministry of Corporate Affairs.
  • Obtain a Digital Signature Certificate for Promoter and Directors: This legally allows the promoters to promote the company and recognizes the directors of the company. It also allows the authorities to authenticate the documents being filed.
  • Identify location and capital of the company
  • Company name application: The company should apply to the Registrar of Companies, to reserve a unique name for themselves.
  • Preparation and submission of the Registration documents to the ROC: Registration documents like Memorandum of Association and Articles of Association have to be prepared and submitted to the ROC.
  • Issuing of the Certificate of Incorporation and allocation of the Corporate Identification Number by the ROC
  • Filing commencement of Business: The company cannot start its business until the directors have filed a declaration stating that all shareholders have paid the share money within 180 days of incorporation.

Conclusion

Public Limited Companies allows making sure that major sectors like banking, finance stay free of the monopoly of huge private industries. Thus, learning about Public Limited Companies after BCom courses in Ahmedabad proves very beneficial in the longer run. It can help create and build Public Limited Companies that can go on to become leaders in their respective businesses.

Part – iii – Learn Commerce Structures III: Private Limited Company
Part – ii – Learn Commerce Structures II: Proprietorship Firm
Part – i – Learn Commerce Structures: All About Partnership Firms

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A Career In Commerce And Job Opportunities

IntroductionCommerce has been a course that has been neglected a lot in India. The…

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Introduction
Commerce has been a course that has been neglected a lot in India. The basic system has divided courses into three categories- science, commerce, humanities. Science has always been valued the highest in India because everyone thinks the students in this field get more opportunities and better jobs when compared to the other two fields and also the pay is high so they can live a luxurious life. However, have you ever wondered what exactly to do After Bcom course?

Even though the statement is true it’s not only for science students. Even a commerce student can earn a good amount and live a comfortable luxurious life. In every job, the main importance is your pay and comfort according to your lifestyle. Therefore, your skills play an important role no matter the course.

What Is Commerce? Who is it for?
Commerce is essentially the conduct of trade among economic agents. It usually refers to the exchange of products, services, or something useful, between businesses or entities. From a better perspective, nations are only concerned with managing commerce in a way that enhances the well-being of their citizens, by providing them jobs and producing beneficial goods and services.

Commerce has existed from the time humans started exchanging goods and services with each other. Starting from bartering to the creation of currencies to the establishment of trade routes, humans have found ways to exchange goods and services and build a distribution process around the process of doing so.

In the present time, commerce normally refers to the macroeconomic purchases and sales of goods and services by large organizations at scale. Commerce is for any person who is interested in finance and transactions. So, if you have done a Commerce course and wish to make a career out of it, here are some career options that you should consider.

Top Highest Paying Jobs In Commerce field

Chartered Accountant
If you’re someone from the Commerce field, you’re presumably to understand about the Chartered Accountancy professional course. The Institute of Chartered Accountants of India or ICAI is a statutory body that designates an individual as an accountant after they need skilled a series of examinations and internship. It is one of the foremost popular commerce stream jobs. As a CA, they will handle the important accounts of a corporation and make sure that the finances are properly recorded and calculated.

Taking the role of a Chartered Accountancy is one of the absolute best-paying jobs in India for commerce students and it is a dream of most commerce students to become a CA. One can expect a starting salary of around Rs. 6 to Rs. 7 lakhs per annum as a CA. It is one of the very best salary jobs for commerce students.

when a CA gains more experience the value also increases. However, the CA exams are said to be one of the toughest then, many students stand back from it. While preparation requires immense diligence, this commerce job does pay off at the top, and therefore the fewer the attempts, the higher the pay.

Investment Banker
This is one of the highest-paying highest paying jobs in the field of commerce in India. Being an investment banker offers a huge salary in the commerce field. The duty of the investment banker is to provide advice and suggestions to various companies and firms so that they can use their money more effectively and achieve their financial goals.

Most companies develop their long-term and short-term financial plans with the help of investment bankers. according to their experience, an investment banker can get a salary of Rs. 20-25 lakhs per annum.

Chartered Financial Analyst
Chartered Financial Analyst is also one of the biggest posts in the field of investment management. CFA places amongst the highest paying jobs in the commerce field in India. any Commerce students who opt for this get an average salary of Rs. 12 lakhs per year. It is a good job profile that concerns commercial services globally.

CFA is also an essential part of many fields like asset management, equity, credit analysis, and revenue analysis, so on and so forth. They collect data from multiple sources and analyze it and evaluate the advantages and disadvantages of different investment vehicles.

Certified Public Accountant
The CPA is quite the same as the Chartered Accountancy, but CPA is offered by the American Institute of Certified Public Accountants (AICPA). hence, the CPA has a global interest.

Candidates who wish to obtain a CPA degree must have a bachelor’s degree in either Business Administration or Finance or Accounting and must complete 150 hours of study. The CPA does jobs like managing tax, auditing, reporting, and accounting processes for organizations or MNCs.

It is one of the jobs in the commerce field with a high salary that may lead to commercial broadcasters that can give you financial security. One must have a Business or Accounting degree to be eligible to appear for the CPA exam. A CPA can get a salary of around Rs.7-9 lakhs per annum.

Actuary
An actuary is another respectable career option for people who are looking for jobs in the commerce field with a high salary. Actuaries are people who test risks involved in the insurance industry. Risks can include loss of property, disability, or other potential risks to the corporate.

They are risk management professionals who use their mathematical skills to live the likelihood of future events and predict their financial impact on their customers and businesses generally.

As an actuary, your work won’t be limited to financial institutions. As all areas of business are in danger, Actuaries may find employment opportunities in non-financial domains like land, health care, and other similar fields. An actuary can get up to a minimum salary of 10-14 lakhs per annum.

Cost Accountant
Cost Accountant is another one of the top jobs in the commerce field. There are two main objectives of accounting profit analysis and budget preparation. they are financial experts who help with budgeting, cost management, and company assets and evaluate company performance.

They are usually employed by manufacturing firms. Cost Accountants are essentially responsible for collecting, verifying, analyzing, and communicating data to facilitate financial visibility and improve processes.

They are also a part of the executive team and helped develop the company’s financial plan and report to stakeholders and tax authorities. a fresher has a salary of around Rs. 4 lakhs per annum as a Cost Accountant.

Professional Accountants
In addition to Chartered Accountants, students can also take up the profession of Professional Accountants as it also comes under the highest paying jobs in India. Professional Accountants help with accounting, tax, and compliance reporting.

They should have a working knowledge of accounting software such as SAP, Tally, and Excel. Accounting professionals should create and maintain accurate financial records for businesses and individuals. Professional Accountants can also get a job at an accounting firm or can set up their independent process. They can earn around Rs. 6 lakhs per annum as starting package.

Cost Accountant
Cost Accountant is another one of the top jobs in the commerce field. There are two main objectives of accounting profit analysis and budget preparation. they are financial experts who help with budgeting, cost management, and company assets and evaluate company performance.

They are usually employed by manufacturing firms. Cost Accountants are essentially responsible for collecting, verifying, analyzing, and communicating data to facilitate financial visibility and improve processes. They are also a part of the executive team and helped develop the company’s financial plan and report to stakeholders and tax authorities.

The salary of a fresher as a Cost Accountant is around Rs. 4 lakhs per annum. Retail Manager – A Retail manager assists in the management of supermarkets as per the business principles. The job of a Retail Manager is to run the sales or store successfully. They need a degree in Retail Management.

Retail Managers manage and monitor all aspects of the daily operations of stores, including sales, inventory, staff, and resource management. They have to be familiar with the product and their marketing philosophy. They must use clever marketing strategies to persuade customers to buy products from the store.

Company Secretary
The essential job of a company secretary is to ensure that the company they are working with, runs with proper coordination and while adhering to all the legal requirements and rules.

The Company Secretary (CS) is one of the main positions in the company or organization. CS serves as president between stakeholders and the board. They are responsible for making formal submissions such as account details, tax reports, and annual receipt reports.

CS is also one of the most popular commercial activities in India. Company Secretaries can expect a high salary of Rs. 6-7 lakhs per annum.CS is undoubtedly the most promising course.

Personal Financial Advisor
A personal financial advisor is a person who assists their clients with their financial goals, pensions, retirement savings, insurance, and debt management. Financial advisers require degrees in finance, finance, business, Mathematics, Law. They can get a salary of around Rs. 5 lakhs per annum.

Conclusion
These were the ten highest paying jobs in commerce fields in India. There are many more jobs for commerce students as well which provide decent pay. To name some of them are statistician, sales manager, finance manager, budget analyst, auditor, so on then forth.

It is a field suitable for those people that incline the sector of accountancy, finance, economics, and lots of other related fields. Several students in India join the sector of commerce only because they think it’s an easy choice than that of science but the reality isn’t so. If you’re hooked into this field then it definitely features a lot to supply and if you’re a hardworking person then you’ll get the highest salary jobs in the commerce field. Even though you don’t go for professional courses like CA or CFA, there are also some short term job oriented professional training programs available in the market to get entry in the commerce field job. Link for one of most sought after accounting course for commerce students is provided herewith.

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TDS on Purchase of Goods

Section 194Q – As per provisions of section 194Q of the Income Tax Act,…

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Section 194Q

– As per provisions of section 194Q of the Income Tax Act, TDS is deductible if-
– The buyer is responsible for making payment of a sum to the resident seller; and
– Such payment is to be done for the purchase of goods of the value/ aggregate of the value exceeding INR 50 Lakhs p.a.

Explanation of the term ‘buyer’-

– As per explanation to section 194Q, the term ‘buyer’ means as under-
– A person having total sales/ gross receipts/ turnover exceeding INR 10 Crores in the immediately preceding Financial Year in which the specified purchase of goods took place;
– Buyer will not include anyperson notified by the Central Government.

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Cost of inflation index notified for FY 2021-22

Ministry of finance has notified cost of inflation index (CII) as 317 for the…

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Ministry of finance has notified cost of inflation index (CII) as 317 for the purpose of calculation of capital gain vide Notification No. 73/2021/F.No. 370142/10/2021-TPL dated 15th June 2021.

The cost of inflation index is used to calculate long term capital gain on sale of assets other than equity shares and equity oriented mutual funds. The CII is used to calculate inflated cost of asset which we are going to sale. To Know more about capital gain tax please join taxation course in Ahmedabad.

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Learn Commerce Structures III: Private Limited Company

Introduction  A Private Limited Company is quite a proven and effective business model. It…

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Introduction 

A Private Limited Company is quite a proven and effective business model. It involves private ownership, with a limited number of shareholders(a maximum of 200). These are small but successful business entities and are comparatively easy to achieve targets, for young entrepreneurs, after the BCom course. 

Although it’s somewhat open to all options, individuals from Commerce courses happen to make better jobs here, mostly due to additional Educational orientations to similar subjects, something other stream novices to this sector, are deprived of.

What Is A Private Limited Company? 

As the name suggests, a Private Limited Company is a privately held business entity. It offers limited liability or legal protection to its shareholders. It is an intermediate business stature, shareholders in between a partnership and a collectively owned business company. 

A maximum of 200 shareholders can be a part of this institution. According to the definition, the shares of these companies are not publicly sold in Stock Exchange markets and can only be sold to the stakeholders in the business, implying a ground-level limitation in the liquidation of such a company.

Who’s The Owner Of A Private Limited Company?

Private limited companies are owned by one or more individuals (human or corporate), known as “members”. The company’s “shareholders” are those, who’s memberships are limited by shares, while “guarantors”  are those limited by guarantees. Beyond the technical terms, members of a company are often referred to as partners.

The companies are majorly owned and managed by the same set of people, where the ones managing the functioning of the system are called Directors, and the ones assisting them are called Secretaries. Together, the executive branch of a company is known as company officers.

What Are The Features Of A Private Limited Company?

A private limited company has the following features:

  • Membership: As per the provisions of the Companies Act 2013, from a minimum of two to a maximum of 200 members, is what a private limited company is allowed to comprise of.
  • Limited liability: The liability of the members is limited to the number of shares directly held in their name.
  • Perpetual succession: Even in case of death, insolvency or bankruptcy of any of its members, the company continues to exist in the eyes of the law, thereby offering ways of forever existence.
  • Register of members: This database is not mandatory for a private limited company to maintain, unlike any public limited company.
  • Directors requirement: The company is required to have a minimum of two directors, and then it can remain operational.
  • Paid-up capital: A private limited company must hold a minimum capital worth rupees one Lac, or such higher amounts, prescribed from time to time.
  • Prospectus: A private limited company is not required to issue a prospectus either, again, an absolute must in case of any public limited company. 
  • Minimum subscription: There are no such limits on this ground and the company is free to start a business immediately after its formation.

Name: The company must use the word private limited company at the end of its name.

What Are The Merits Of A Private Limited Company?

A private limited company has the following advantages

  • Flexible Investment: No minimum capital threshold is required for registration.
  • Separate legal identity: A private limited company is a separate legal identity in the court of law and doesn’t hold overlapping assets and liabilities with the directors.
  • Free and easy transfer of shares: Shares of the company are transferable by a shareholder to any other person and it is particularly hazel free.
  • FDI allowed: In a private limited company, 100% foreign direct investment is permissible in certain segments.

What Are The Demerits Of A Private Limited Company?

A private limited company has the following disadvantages:

  • Publicity restrictions: It arrests the transferability of shares by its articles.
  • No place in the stock market: Shares of these companies are not entitled to be sold in the Stock Exchange markets.

Is There Any Specific Employer Requirement In A Private Limited Company?

There is no such mandatory requirement, to appoint employees in a private limited company. Though informal, graduates from Commerce Courses, are likely to prioritize, in the selection processes.

What Are The Requirements For Private Limited Company Registration?

A private limited company has the following requirements for registration::

  • A minimum of two adult persons are required to act as Directors of the company
  • Minimum of 2 Directors and can have a maximum of 2015 directors.
  • One of the directors of a private limited company has to be an Indian Citizen and Indian Resident.
  • The other director(s) can be a Foreign National.
  • Two persons are required to act as a shareholder of a company

What Are The Documents Required For Registration?

The documents required for a private limited company are:

  • ID proof: PAN card and passports of Indian and foreign directors, respectively
  • Address proofs: Ration card or Aadhar card or driver’s license or voter ID
  • Residence proofs: Bank Statement or electricity bill of the premise
  • Notarized rental agreement
  • NOC from the property owner
  • A copy of the sale deed or property deed (for an owned property)
  • Digital signature of any one director

What Is The Process Of Registering A Private Limited Company?

Once a name for the company is finalized, the following steps have to be carried out by the applicant: 

Step 1: Apply for DSC (Digital Signature Certificate).
Step 2: Apply for the DIN (Director Identification Number)
Step 3: Apply for the name availability.
Step 4: File the EMoa and EAOA with registration form to register the private limited company
Step 5: Apply for the PAN and TAN of the company
Step 6: Certificate of incorporation will be issued by RoC with PAN and TAN
Step 7: Open a current bank account on the company name

Conclusion

Merits and Demerits are the two sides of the same coin, likewise, for a private limited company. It is the most prevalent and recognized business entity, in the current date. This is majorly due to the higher degree of freedom, that it offers in setting it up and functioning.

There’s no time gap between these two, and that’s an incredible opportunity to encourage start-ups. After BCom. Courses, thousands of young minds sketch business plans, not always relevant or effective in the public domain. Whereas the private window offers a more homely than a professional working space, warming up young interns to gear up quickly.

Massive Private Limited Companies have prospered beyond extents, inspiring millions to execute their expertise. Some of these include Flipkart, Ola, Snapdeal, etc. It’s important to have directional thinking and appropriate strategies,  to suit the ideas.

Part – iv- Learn Commerce structures IV: Public Limited Company
Part – ii – Learn Commerce Structures II: Proprietorship Firm
Part – i – Learn Commerce Structures: All About Partnership Firms

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Relaxation of Time Limit for Tax Compliances Under Income Tax Act

Sr No Particulars Earllier Date Revised Date 1 TDS return for Last Quarter (Jan’21…

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Sr No ParticularsEarllier DateRevised Date
1TDS return for Last Quarter (Jan’21 – Mar’21)31-05-202130-06-2021
2Form 16 Certificate furnishing Date6/15/20217/15/2021
3Due Date of Income Tax Return (AY 2021-22 i.e. FY 2020-21)7/31/20219/30/2021
4Due Date of Income Tax Return For Audit Entity (AY 2021-22 i.e. FY 2020-21)10/31/202111/30/2021
5Tax Audit Report Submission For FY 2020-219/30/202110/31/2021
6Due Date for Belated Income Tax Return12/31/20211/31/2022
7Statement of Specified Financial Transaction (SFT) for FY 20-2131-05-202130-06-2021
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GST Compliances for Composition Scheme Dealers

GST Composition Scheme provides relief to small businesses in the form of lower rates…

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GST Composition Scheme provides relief to small businesses in the form of lower rates and lesser compliances. By opting for this scheme, a business can pay GST at a fixed rate, without claiming input tax credit. You can learn more nitty-gritties regarding applicability/eligibility and benefits of this scheme by taking GST classes in Ahmedabad at Super 20 Training Institute (s20.in). Meanwhile, the article here lists down the compliances to be undertaken, should you or your client opt for this composition scheme.

Typical compliances for an indirect tax scheme involve:

In the context of GST composition scheme, these compliances are explained as under:

A. Opt for the scheme
For traders and manufacturer : If turnover is upto Rs. 1.50 Crores p.a.
For Service sector : If turnover is upto Rs. 50 Lacs p.a.
then only a person can opt for composition scheme as the scheme is to benefit small businessmen.

Where a registered dealer desires to opt for composition scheme, typically he is required to do so before or at the beginning of the year, by filing Form GST CMP-02. Where the scheme is opted for in the middle of the year, it becomes applicable from the month following the month in which the form is filed.

Persons applying for fresh registration under GST and opting for composition scheme, may do so by filing Form GST REG-01.

Once a dealer has opted for the scheme, there are two more statements to be filed:

  • Form GST CMP-03 – This statement provides information regarding stock and inward supplies held on the day of opting for the scheme. 
  • Form GST ITC-03 – This statement is required to be filed in order to reverse any input tax credit already claimed on stock of inputs / capital goods before opting for this scheme.

If all these forms and compliances seem daunting, attend GST classes in Ahmedabad to get complete clarity and sort out any queries you may have. 

B. maintaining detailed records
The main purpose of the scheme is to provide relief to taxpayers from comprehensive maintaining of records and compliances. Therefore, unlike regular dealers, dealers registered under the composition scheme are NOT required to maintain detailed records. Further, they are NOT required to collect taxes either, as the taxes are paid at a fixed rate out of own pocket. However, the following to-do’s should be borne in mind:

  • The dealer must issue a Bill of Supply, and NOT a tax invoice.
  • All bills of supplies must state ‘composition taxable person, not eligible to collect tax on supplies’.
  • All hoardings outside the office / at other prominent places must clearly state ‘Composition taxable person’. 
  • Composition delaer can not make any interstate sales.

C. Calculating and payment of taxes
A dealer under the composition scheme should collectcollate the following details of:

  • outward supplies on which tax is payable
  • inward supplies on which tax is payable on reverse charge

Thereafter, compute tax liability by using fixed (reduced) rates as applicable, and split tax liability equally among the CGST and SGST components. Further, credit of input tax cannot be claimed by a GST composite dealer. Add interest payable (if any).The afore-said details would need to be filled in Form GST CMP-08. Form CMP-08 is a statement-cum-challan required to be filed on a quarterly basis. It summarizes the tax liability of the dealer alongwith other relevant details sought by the government. Due date for payment of taxes as well as filing of this statement is 18th of the month following the quarter for which taxes are being paid.

D. Filing of returns – Quarterly and annual
The quarterly statement in Form CMP-08 mentioned above serves as quarterly return as well (it replaces erstwhile quarterly Form GSTR 4).

An annual return also needs to be filed by a GST composite dealer by 30th April following the relevant financial year.

Law prescribes penalties where there is delay in filing of the returns mentioned above. Super 20 Training Institute offers excellent GST return training in Ahmedabad so that you can ensure that the return filing process for you and/or your clients is smooth and hassle-free.