Shop & Establishment Registration In Delhi | Process | Fees

What is Shop & Establishment Registration In Delhi

Most of the businesses in India including shops, restaurants, cafes, etc.; are regulated under the provisions of the Shop & Establishment Registration In Delhi Act. To regulate the work environment, as well as the rights of the workers, are being protected, it is mandatory to get your business registered under the Shop and establishments Act. However, the rules and regulations vary from state to state, in which the act aims at providing proper working conditions to the laborers and taking care of their holidays, wages, and rights. The License is issued to the following establishments:-

Business
Trade
Professions Registered under the Shop and Establishment Act.
The Shops and Establishment act makes sure that both organized and unorganized sectors are providing appropriate working conditions to the laborers. Such as the applicant (Establishment) has to file an online application concerning his state’s official portal.

What are the Aspects Regulated as per the provisions of the Act?

The Shop and Establishment Act has made various provisions to regulate the aspects relating to the working of shops and establishment in India. Following are Some Key Aspects Regulated by Them:-

Maximum working hours of the employees/ labors
Time duration allotted for meals and rest
Regulating laws to prohibit child labor in factories and other establishments
Women employment
Number of compulsory weekly holidays provided to the employees
Close/off days of the establishments/shops
Opening and closing hours of the establishments/shops
Wages to employees for the holidays
Accidents coverage policies
Preventive measures against fire
Proper ventilation and lighting for workers
Clean and hygienic premises for the workers
Conditions and timing for the payment
Regulation of deductions on the payments
Leave Policy
Dismissal
Also, Employee’s proper record keeping

Note: Additionally, any more information related to the Shop and Establishment Act can be gathered on the relative state government portal.

What are the Benefits of Registration?

Legal Recognition : Shops and Establishment license provides legal recognition to the respective establishment/shop.
Acts As A Business Proof : For further business registration in India, the Shops and Establishment license acts as a business proof.
Helpful In Opening The Bank Accounts And Other Formalities : The registration of Shops and Establishments becomes necessary for reasons like opening a bank account in the name of the establishment/shop.
Provides A Platform For Raising New Investment : The Shops and Establishment license helps the proposed entrepreneur in raising investments through loans or venture capitals for the proposed business establishment.
Avails The Government Benefits : By getting the shop and establishment license, the entrepreneur can avail of the government benefits in different stages of business.
Saves Time : As the process of shop act registration has turned online, it saves time in the registration procedure as well as creates less hectic while in operation.

Who are Eligible to Obtain a Shop and Establishment License in India?

Wholesalers or the retailer’s shops and establishments
Service Centers
Warehouses, Storerooms, and Godowns
Additionally, any other working places
Hotels
Eateries and restaurants
Entertainment houses, Amusement parks, Theaters, etc

What are the Documents Required for the Shop & Establishment Registration In Delhi?

Documents required for Shop and Establishment License –

Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
Documents such as a Passport size photograph of the employer
The affidavit, Cancelled cheque, and also Bank statement,
As well as a photo of the establishment/ shop along with the employer
In the case of rented property, a copy of the rent agreement
Additionally, Any utility bill of the working premises.

Other Documents Required As Per The Establishment Or Business Entity

In this case of a trust, a list of the number of trustees
Certificate of incorporation, MOA, and AOA as per the Companies Act,
In this case of co-operative societies, as a list of number of members and chairman
Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners.

If you are looking for your Shop & Establishment Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

Compliance for Company | Private Limited | LLP | OPC

Compliance For Company would require a keen ability to understand some complex and some not so complex realities associated with this country (bearing in mind the evolving policies of the Government, amendments to the existing statutes, and new laws enacted in recent times). It covered statutory and legal compliances to avoid penalties for any violation of the law. For corporate companies, compliance needs to maintain under The Companies Act, 2013. Non-compliance could lead to fines and penalties on the Directors and the Company. Hence, it is essential for a corporate company to be aware of the post-incorporation compliance requirements of a company.

Compliance for Company Services are:

Compliance for Company includes various services as defined below:

Compliance for Company Servicesa are Following:

Accounting and bookkeeping service:

Accounting or Bookkeeping Services can be interchangeable. However, in an actual sense, Bookkeeping and Accounting perform different functions. The recording is a part of the accounting procedure that records all the financial transactions and has disparities with accounting. It helps in organizing the financial records that help the management to analyze the business performance. Helps the organization in providing a reliable measure of its performance.

The recording is the primary step in the accounting process. It is a procedure that deals with the undertaking related to the categorization and recording of financial data in an organized way and record-keeping that helps in the accounting process. Additionally, helps in providing the financial statement of business at the end of every financial year.

Advance tax due dates:

The advance tax works on the ‘Pay as you earn’ principle. If your tax liability in a financial year exceeds Rs 10,000, then the government gets very excited and can’t wait till year-end to collect tax. It asks you to pay tax in advance. Its receipts help the government to get a constant flow of income throughout the year so that expenses can be incurred rather than receiving all tax payments at the end of the year.

For instance: if your advance tax liability for the financial year 2011-12 has exceeded Rs. 10,000, you are expected to pay it in FY11-12 itself.

Tax Audit:

The government of India conducts various audits under different laws such as company audit/statutory audit carried out under company law provisions, cost audit, stock audit, etc. Likewise, Income Tax law has made ‘Tax Audit’ compulsory and In tax audits, business accounts, any profession reviewed which makes the process of income computation for filing of return of income easier. Also, Income Tax Act has made compulsory on the annual gross turnover/receipts if the amount exceeds a specified limit. Chartered Accountant conducts the audit as defined in Section 44AB of the Income T. Act, 1961.

Statutory Audit:

An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas and Additionally, a statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.

ROC Compliance:

ROC Compliance For Company stands for Registrar of Companies which is an office under the Indian Ministry of corporate affairs that deals with the administration of the Companies Act, 2013 and Compliance appointed under section 609 of the companies act covering the various States and Union Territories vested with the primary duty of registering companies and LLPs float with respective states, the Union Territories as well as ensure such companies, LLPs comply with statutory requirements under the act.

DIR 3KYC:

DIN- unique identification number is given to a person wanting to be a director. Also, an existing director of a company, In this digitized era, application in eForm DIR 3KYC was sufficient to obtain DIN and This was a one-time process for any person who wants to be a director in one or more companies. However, now with the move of the Ministry of Corporate Affairs (MCA) to update its Registry, all directors with a DIN will have to submit their KYC details annually in eForm DIR-3 KYC.

Appointment and Resignation of Director:

Directors are the brain of the company. They are the managerial staff who control and administer the Company’s Services, The revolution of directors takes place in one, another way – either by the selection of a new director or withdrawal of existing and The endeavor to carry out the change of directors is always to guarantee an optimum blend of experts on board for the interest of the company. It approves the resignation of the director lies with BoD, whereas the appointment must be made through the consent of shareholders. Whether it is an Appointment, removal, or resignation,

If you are looking for your Compliance For Company, you can reach out to Chartered Accountants listed on CA in Delhi ‘s homepage.

Appointment and Resignation of Director | Procedure

What is Appointment and Resignation of Director

Directors are the brain of the company. They are the managerial staff who control and administer the Company’s Services. The revolution of directors takes place in one, another way – either by the selection of a new director or withdrawal of existing. The endeavor to carry out the change of directors is always to guarantee an optimum blend of experts on board for the interest of the company. It approves the resignation of the director lies with BoD, whereas the appointment must be made through the consent of shareholders. Whether it is an Appointment, removal, or resignation, the change does not take effect continuously; the intimation is made to the ‘Ministry of corporate affairs.’

What is the Eligibility Criteria to be a Director?

There are no designated qualifications, but an individual should comply with the following mentors be a director:

However, according to the law, a specific natural person only can be a director of any company.

Age Demarcation: There is no alternate to fixed age for being a director, but it is essential that the person who should be competent enter into any contract. Moreover, in a matter of ‘managing director,’ ‘full-time’ director, or ‘independent director of a recognized company, the person becomes eligible to be a director if he is of 21 years and has not reached the age of 70 years officially.
Determination Of Nationality: There is no restriction. However, there must be a minimum of one Indian director in the company.
DIN Needed: To be eligible, designated as a company’s director, the person must get a Director Identification Number. DIN’s purpose is to make sure no fraud takes place, anyone tries criminal activity and can be traced this unique number.
Limit Of Valid Directorship: A personality can only be a director of 20 separate companies at a time. Out of these 20 companies, only ten can be public companies.

Ineligibility

Unsound Mind Or Bankrupt Person: Anybody who is of unsound mind or is incompetent of making decisions on his own cannot be appointed as a director. This involves children, mentally disabled individuals, and frames with unstable mental faculties. Furthermore, insolvent people or individuals who have maintained bankruptcy claims in the court of law are disqualified from acting directors.
Criminal Background: If a personality has a criminal record and sentenced to confinement for more than seven years or more, he cannot be a director.
Pending Overdue Returns: If the individual not met previous returns in any of the preceding years, he shall be barred from keeping the directorial position.

Recognition: Types of Director

The company director changes in terms of the role they play, such as managing director who runs the overall purposes of the company, executive directors who look after the day-to-day methods, and independent directors who assure proper governance of the company. One company can have increased directors; nevertheless, the appointment of directors depends on the type of business like:

Type of Business:

As per ‘Section 149(1)’ of the Companies Act, 2013, every public corporation shall have a minimum number of 3 directors, whereas the least amount of directors in a private company is two and only one director in case of the ‘One Person Company.’
The highest number of directors in a public company is 15. Besides, a company can also select more than 15 directors after getting a permit from a specific resolution in the general meeting. The method of appointment of more directors does not expect the endorsement of the Central Government.
A director can determine the maximum number of directorships up to 20, including any alternative directorship of a person.
In the event of any private company or ‘public company,’ either holding or subsidiary company shall restrict to10 directorships in the ‘public company’.
All the Certified companies must appoint at least one woman director in the Board of Directors in a year from the enforcement of the second Proviso to Section 149(1) of Companies Act.
Similarly, every public company having a turnover of Rs. 300 Crore or a paid-up portion capital of Rs. One hundred crores under the latest audited financial statements shall appoint at least one woman director within a year from the convocation of the second Proviso to Section 149(1) of Companies Act.

Note: “If any person holds the efficiency of director in more than 10 or 20 companies before the commencement of Companies Act, then he shall have to determine the companies where he wishes to maintain or resign as the director within one year from such beginning. After that, he shall inform about his decision to the chosen companies as well as the concerned Registrar.

Short Note: Appointment and Resignation of Director

Section 168 of the Companies Act, 2013, the resignation of directors, didn’t satisfy in the Companies Act, 1956. and doesn’t have a physical presence, identity as an artificial person to only a natural person can bring into life, a person who takes charge of managing the company’s operations is known as the director. Different directors are qualified for handling various aspects of the company.

Documents needed for Appointment and Resignation of Director

Photograph: Passport size photo
PAN Card: Self-attested PAN card
Proof of Residency: Aadhar Card/ Voter ID/ Passport/ Driving License
Digital Signature Certificate: ongoing Director, may eliminated/removed
Identity proof before-mentioned as Passport/Election card/Driving License/Aadhar card
Mobile number and Personal & official email id of the Director
It is mandatory to apostille all the documents apostilled if the Director is a non-resident of India.
Notice of resignation filed with the company
Proof of dispatch
Acknowledgment of form, if received.

Resignation of the Director under Section 168

Any director can resign from his office by furnishing written notice to the company. After collecting such notice, the Board shall take note of the same, and the corporation shall intimate the Registrar in such a manner, time, and form as designated. Provided that-
The company shall place the case of such resignation in a report of directors shortly after the general gathering of the company.
The director shall also intimate and forward a copy of his resignation along with a precise reason for his resignation to the Registrar within 30 days of resignation.
The resignation of a director should take its influence from the date on which the company accepted his notice or from the itemized period mentioned by the director in mind, whichever comes later: Provided- that the director who has resigned should be liable for the offenses which appeared during his tenure even after the resignation.
Whenever all directors of a company resign at an identical time, promoter, the Central Government select the expected number of directors during which old directors will hold company till new one nominated through the company in general meeting.

Understandings behind Resignation of Directors

Dispute With The Board: When many directors work commonly, a difference of opinion ought to happen. It results in hindering the overall performance of the corporation; in such a position, the directors may decide to resign.
More Beneficial Career Opening: Everyone seeks a more satisfying career opportunity to enlarge their domain, and choose that option through AOA.
Misuse In The Company Affairs: When a director introduced to the illegal practices of the company, he may find himself becoming dragged into it that matches his reason for resignation. To defend himself from personal liability appearing out of such activities, he chooses to resign.
Suspension Due To Infringement: Any non-adherence, violation, or defaults on the director’s end can lead him into trouble.
The Recession Of Nomination: It is only appropriate to the Nominee directors who primarily appointed by the NBFC’s investors on the BOD. Once the transaction between the company, entity completed, then the Nominee director can resign, he may also leave after the removal of the nomination.

Manner of Resignation of Director concerning Companies

The resignation of a director/managing director, companies act 2013, asserts that the company has special duties and obligations to fulfill after.

The first, principal company pass a joint resolution to authorized, Notice, letter of resignation, commission form DIR11 defining the reasons behind the departure, as per the provision specified in section 168(1) of the Companies Act, 2013.
As per ’16 of Companies Rule, 2014, the resignation report, notice, ideas for the resignation shared with the Registrar of Companies (ROC) using ‘Form DIR11′, within ’30 days’ of the date of removal.
In extension to filing eForm ‘DIR11’, the company requires to provide the notice or letter of resignation necessarily. This is the scheme for the company through the resignation of the managing director; companies act 2013.
Documents submitted- Notice of resignation filed with company proof of dispatch acknowledgment form. if received.

If you want to get started with Appointment and Resignation of Director, reach out to Chartered Accountants from CA in Delhi‘s homepage

DIR 3KYC Filing | Due Date | Fees | Penalty

What is DIR 3KYC Compliance

DIN- unique identification number given to a person wanting to be a director or an existing director of a company. In this digitized era, application in eForm DIR 3KYC was sufficient to obtain DIN. This was a one-time process for any person who wants to be a director in one or more companies. However, now with the move of the Ministry of Corporate Affairs (MCA) to update its Registry, all directors with a DIN will have to submit their KYC details annually in eForm DIR-3 KYC.

Who has to file DIR-3 KYC Form?

As per MCA’s recent announcement, any director who allotted a DIN by or on 31st March 2018 and whose DIN is in approved status, will have to submit his KYC details to the MCA, and Further, this procedure is mandatory for the disqualified directors too.

From the Financial Year 2019-20 onwards, mandatory for every director who allotted a DIN on or before the end of the financial year and whose DIN is in approved status will have to file form DIR-3 KYC before 30th September of the immediately next financial year.

For example- For the Financial Year 2020-21, the directors having DIN or Director Partner Identification Number (DPIN) and the directors allotted with a DIN/DPIN by 31st March 2021, need to file the eForm DIR-3 KYC before 30th September 2021.

What Documents required to file Income Tax Return?

Details of Nationality and Citizenship details like gender, and date of birth.
Permanent Account Number (PAN).
Voters Identity card.
Passport (mandatory if a foreign national is holding a DIN).
Driving License.
Aadhaar card.
Personal Mobile and Personal Email Address.
Residential address.

For more information:

If you want to get started with DIR 3KYC, reach out to Chartered Accountants from CA in Delhi ‘s homepage.

ROC Compliance | Private Limited Company | LLP | OPC

Overview of ROC Compliance

ROC Compliance stands for Registrar of Companies which is an office under the Indian Ministry of corporate affairs that deals with the administration of the Companies Act, 2013. Compliance appointed under section 609 of the companies act covering the various States and Union Territories vested with the primary duty of registering companies and LLPs float with respective states, the Union Territories as well as ensure such companies, LLPs comply with statutory requirements under the act.

The office of ROC functions also registry records, related to the companies registered with them, which are available for inspection by members of the public on payment of the prescribed fee. Moreover, there are currently 22 Registrars of companies (ROC) operating from offices in all major states of India.

Besides, the central government exercises administrative control over these offices through the respective Regional Directors. Such as It is important to comply with all compliances applicable to your company to avoid penalties and fines.

Our Legal Raasta team guides you on all the compliances completed, since the incorporation and your ROC Compliance for Private Limited Companies done through Legal Raasta.

What included in the ROC Compliance Package

Compliance by Director
Board Report
Annual Report
Statutory Registers update
Drafting of Notices
Annual Filing and its documentation(AOC4, MGT-7)

Documents required with the ROC every year

1. Form MGT-7- Annual Return

Registered office details of the company, particulars of its holdings, principal business activities, as well as associate companies
Debentures, share and other securities and shareholding pattern
Indebtedness
Debenture holders and members along with changes
Directors, Promoters, key managerial personnel along with changes
Members meeting
Director’s remuneration and key managerial personnel;
Punishment or penalty imposed on the company, its officers or director, details of compounding of offenses as well as appeals made against such penalty/ punishment
Certification of compliances matters
A pattern of the shareholding of the company, such as other matters as required in the form

2. Form AOC-4 – Financial Statements & Other Documents

Mostly all companies file their financial statements and relevant attachments using Form AOC-4 each year and Statements of the company not adopted in Annual General Meeting then un-adopted financial statements filed within 30 days of the date of AGM.

On the other hand, if the financial statements are adopted by the company then the adopted financial statements must be filed within 30 days of the AGM. Apart from this, if the company needs to revise the financial statement or Board’s report then revised financial statements can also be filed using form AOC-4.

If you want to get started with ROC Compliance, reach out to Chartered Accountants from CA in Delhi ‘s homepage

Statutory Audit | Private Limited Company | Partnership | LLP

What is Statutory Audit

An audit is an examination of records held by an organization, business, government entity, or individual, which involves the analysis of financial records or other areas. A statutory audit is a legally required review of the accuracy of a company’s or government’s financial statements and records.

To determine organization provides a fair, accurate of its financial position by examining information bank balances, bookkeeping records, financial transactions.

What is the applicable limit for mandatory Statutory Audit?

Statutory audit is governed under the Companies Act, 2013, and Companies (Audit and Auditors) Rules, 2014. For Limited Liability Partnerships (LLP), statutory audit is applicable if turnover in any financial year exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.For Private Company/ Public Company, statutory audit ismandatory irrespective of Turnover, profits etc. Even if the company is incurring loss even, a Statutory Audit is Required.

Research the control environment of the organisation

The term ‘control environment’ concerns the integrity, system of values, and basic employees’ attitudes on control and management. Every organization control environment either regulatory guidelines, initiatives competitor, economic trends taking place in the country at the international level. These elements show the competitive strategy or the stand of the company in the market. Every statutory auditor has to research these elements to know more about the controlled environment of the business.

Testing of Internal Controls

A test of controls is an audit procedure to test the effectiveness of a control used by a client entity to prevent or detect material misstatements. Depending on the results of this test, auditors may choose to rely upon a client’s system of controls as part of their auditing activities.

However, if test control weak, the auditors will enhance use of substantive testing, which increases the cost of the audit. The following are general classifications of tests of controls:

Reperformance – Auditors may initiate a new transaction, which controls used by the client and the effectiveness of those controls.
Observation – Auditors may observe a business process in action, and in particular the control elements of the process.
Inspection – Auditors may examine business documents for approval signatures, stamps, or review checkmarks, which indicate that controls have been performed.

The auditor has to rank the control and risks from high to low. It’s done to let the entity know which control measures are effective, providing remedies in order to curb any internal breakdowns.

Statutory Audit of Balance Sheet

A balance sheet audit evaluation of the accuracy of information found in a company’s balance sheet. It involves a number of checks, per the auditor’s balance sheet audit checklist, as auditors conduct this evaluation based on supporting documents. Balance Sheet audit will involve verification of:

Share capital and share application money. After Verification, share capital changes, changes are under resolution.
Secured loans including the latest bank statements, bank reconciliation statements, and sanctioned letters confirming the rate of interest on the loan
Unsecured loans including statements showing acceptance of a loan, rate of the interest confirmation letter, ledger copies from the books of the loan provider
Current liabilities and provisions including confirmation copies of the closing balances, the detailed break-up of the sundry creditors, ledger copies of party’s book, detailed notes on the creditors written-off, list of parties to be written-off, detailed provisions standing in the books
Dues and returns including copies of TDS paid, TCS paid, VAT paid, Sales Tax paid, excise duty paid, provident fund payable, professional tax paid etc., copies of challans.
Fixed assets including copies of invoices showing any addition to the Assets, books showing depreciation working, list of assets not yet accounted in the books
Inventories including statements showing valuation of closing stocks, statement of reconciliation and excise records, details of quantity of production and sales on daily basis, input and output ratio of the raw material
Investments including list of investment, date of investment and amount of investment made in a year, nature of investment, investments sold in the year.
Current assets including list of sundry debtors, cash and bank balance details, details of deposits etc., profit and loss account details etc.

Audit of Profit & Loss Account

Compare year-over-year numbers as well as industry benchmarking
Look at the margins such as gross profit margin, EBITDA margin, operating margin, net profit margin
Conduct Trend analysis to find out whether the metrics improving or deteriorating
Look at the Rates of return such as return on equity (ROE), return on assets (ROA)
Check the individual breakups of sales and purchases.
In the case of direct expenses and indirect expenses concentrate on the agreements like rent, fees, royalty, lease rent, advertisement, other expenses.
In this case, preliminary expenses are check treatments showing capitalization in 5 years
Minutes of the meeting should be verified showing any resolutions for capitalization of expenses, managerial remuneration, loans, approving donations
Any income from investment i.e. interest, the dividend checked with the bank account.
Verify the valuation of closing stock whether a closing stock valuation is as per accounting standard-2

Audit of GST

Cross verify GSTR 3B with GSTR 1 & GSTR 2A
There two important things that will cover under this point
The taxpayer to reconcile GSTR 3B with GSTR 2A and ensure the taxpayer is not claiming excess (ITC), if the taxpayer claims ITC excess as well as needs to pay interest, the penalty may be prescribed.
In case the GST auditor finds a mismatch between the GSTR 3B – GSTR 2A such as case the auditor needs to direct the management to amend the invoices at summary levels.
At auditing, the taxpayer keeps in mind between the invoice date, payment date did not exceed 180 days, to reverse ITC for non-payment.
Reconcile e-Way Bills with invoices to determine if there is a bogus entry in the records by the taxpayer.
Check all GST returns a file, payments within due dates or not

Audit of TDS

The auditor will check all the payments, to See whether it will come under TDS categories or not. Additionally If the company does not pay the TDS of any payment which should be as per the TDS section. He will note this mistake and mention it in his audit report.
Vouchers of TDS-related transactions have to be an audit.
The auditor will verify all the source documents relating to TDS. If the deductor paid through eTDS, the deductor handles all the documents printed, digital to an auditor for its verification.
Reconcile the books with challans and returns.

Some other important checks:

If the company pays dividends to its shareholder then check payment as per as prescribed rate and also ascertain interest paid, if there is any delay.
Check Provident Fund, ESIC, Gratuity, Bonus, Leave encashment payments Such as Ascertain applicability of provisions of the respective acts, if there is any variation, then report in the Audit report.
Check payment /aggregate payments for expenditure by account payee cheque, bank draft, through another electronic mode in excess of Rs. 10,000 or Rs. 35,000 in case of transportation), in a day. If yes, check whether such payments are falling under Rule 6DD
Check Company has not received cash in excess of Rs.2,00,000.00 in violation of section 269ST of Income Tax Act, 1961
Loan / Advances checked with due care, permitted by Companies Act, 2013, income tax Act, 1961Section 185, 186, 73-76

If you want to get start Statutory Audit, reach out to Chartered Accountants from CA in Delhi‘s homepage

Tax Audit | Auditing services in Delhi | Due Date

What is Tax Audit

Income Tax Act has made compulsory on the annual gross turnover/receipts if the amount exceeds a specified limit. Chartered Accountant conducts the audit as defined in Section 44AB of the Income T. Act, 1961.

In simple terms, audit of matters related to tax.

Tax Audit Applicability

Section 44AB has made tax audit a mandatory thing for the following persons:

Business: Rs 1 Crore: It means an assessed requirement to audit as mentioned in Section 44AB if his annual gross turnover increases Rs 1 Crore in business.
Profession: Rs 50 Lakh: It means an assessed has to go under Section 44AB if his annual gross income in profession increases Rs50 lakh.

Presumptive Taxation Scheme-Section 44AD

Businesses whose annual turnover does not cross the limit of Rs 2 crore are suitable for this scheme.
It is not necessary to maintain books of Accounts U/s 44AD
Net income estimated to be @8% of your gross turnover
Digital mode of payment used to receive gross receipts
Net income calculated as @6% and @8% of gross receipts
If assessed Presumptive taxation u/s 44AD, then required to follow the same section of the audit for the next five financial years.
You need to file ITR 4 to avail of this scheme

Presumptive Taxation Scheme- Section 44ADA

Professions whose annual gross income does not exceed Rs 50lakhs are suitable for this scheme.
It is not necessary to maintain books of Accounts under Section 44ADA
Net income evaluated to be at @50% of your gross receipt.
If Assesse goes for Presumptive taxation under Section 44ADA then he needs to follow the same section of audit for next five financial years.

What should you do to be safe from a Tax Audit?

The motive of indulging in business, professional and crucial to remember that profit should be earned legally and appropriately. Perform the following activities that will result in a healthy Tax Audit:

Income Tax Act has made it mandatory for maintaining books of accounts
It is necessary to compute profit or gain under Chapter IV
Income is taxable or loss allowable
In tax return file mention show taxable income and allowable loss

Type of Accounts Come Under Tax Audit

Individual/Proprietorship
Hindu Undivided Family
Company
Partnership Firm
Association of Person
Local Authority

What includes Turnover for Tax Audit?

Duty drawback receives after the export sales considered as a part of Turnover in a fiscal year.
Income earns out of interests from a money lender or through foreign fluctuation by an exporter regarded as a part of turnover in a financial year or Advance received and forfeited from customers and if excise duty included in turnover it should be debited in the profit and loss account.

What exclude in Turnover for Tax Audit?

Sale or Purchase of Fixed Assets
Income raised from selling the assets held as investment
Rental Income
Residential or commercial Property
Interest income and reimbursement of expenses as receipt.

Objectives of Tax Audit

It makes sure that books of accounts are maintained properly and correctly and certified by the tax auditor.
Once methodical verification of books of accounts is done it is necessary to report observation or discrepancies observed by the tax auditor.
The main purpose of tax audit is to extract a report according to the requirements of form no. 3CA/3CB and 3CD. Apart from reporting needs of the above forms proper tax audit is also required that will make sure that book of accounts and records are properly maintained as they accurately show the income of the taxpayer and appropriate claim for deductions.
Annual audit is both time and money consuming process. Tax audit is necessary for every eligible assesses. Income Tax Act has made it mandatory. In India, tax consultant (Chartered Accountant) conducts Tax Audit.
Tax audit can prove financially beneficial for a business.
An audit gives credibility to an information published for employees, customers, suppliers, investors, and tax authorities
Audit gives assurance to shareholders that the figures in the accounts show a true and fair view.
A tax audit helps in building a healthy reputation of the company.

What Constitutes Audit Report?

Tax auditor presents his report in the specified form which could be either Form 3CA or Form 3CB where:

Form No. 3CA is presented when a person involved in business or profession is already mandated to get his accounts audited under any other law
Form No. 3CB is presented when a person is involved in business or profession does not need to get his accounts audited under any other law

How & when Tax audit, the report furnished?

The tax auditor submits his report online using his login credentials. It is important for taxpayers to provide the details of CA in their login portal. When the auditor uploads the audit report, it then either accepted or rejected by taxpayers in the login portal. If rejected for any reason, then all steps follow again, till the report accepted by the taxpayer.

Due date, by which taxpayer accounts audited

It is required to cover under section 44AB, accounts audit, Obtains report before the 30th September of the current year, the due date of filing return of income.

Types of Tax Audit:

The first type is correspondence audit. It is the simplest of all types of tax audits, in this audit, IRS sends a letter to you and will ask for information in relation to a certain area of your tax return.
The second type of audit is office audit. In this kind of audit, the auditor will ask multiple detailed questions and will probably consume your whole day, if IRS requires, they will allow you more time to collect and send in required details.
The third type of audit is a field audit which is slight a bit inclusive than an office audit. In this type of audit, IRS pays a visit at the house of the taxpayer or their business place of work. They may ask the taxpayer to scrutinize other things as well; their no limit to specific items.

The penalty of non-filing or delay in filing an audit report

If taxpayer fail to audit done punished by following:

0.5% of the total sales, turnover or gross receipts
Rs 1,50,000

If you want to get start with Tax Audit, reach out to Chartered Accountants from CA in Delhi ‘s homepage

Advance Tax Due Date | Calculation | Slabs

Overview About the Advance tax and Advance Tax Due Date

Advance tax works on ‘Pay as you earn’ principle.

If your tax liability in a financial year exceeds Rs 10,000, then the government gets very excited and can’t wait till year-end to collect tax. It asks you to pay tax in advance

It receipts help the government to get a constant flow of income throughout the year so that expenses can be incurred rather than receiving all tax payments at the end of the year. For instance: if your advance tax liability for the financial year 2011-12 has exceeded Rs. 10,000, you are expected to pay it in FY11-12 itself.

Advance tax due dates: Who should file it?

If you are a salaried employee, you need not pay it as your employer deducts tax at source (TDS). It is applicable when an individual has sources of income other than his salary. For instance, if an assessee earns income via capital gains on shares, interest on fixed deposits, winnings from lottery or races, capital gains on house property besides his regular business/salaried income then after adjusting for expenses or losses he needs to pay advance tax.

Please note that advance tax is payable even by salaried employees on their other income.

While employers deduct TDS on salaries, advance tax is paid on income that is not subject to TDS. Professionals (self-employed) and businessmen will have to pay taxes in advance as, given their business income, the liability can be huge. The same implies for companies and corporates.

Payment of advance tax: Self employed and businessmen

Due date of installment	Amount payable
On or before 15th September	Not less than 30% of the tax liability
On or before 15th December	Not less than 60% of the tax liability
On or before 15th March	100% of the tax liability

Payment of advance tax: Companies

Due date of installment	Amount payable
On or before 15th June	Not less than 15% of the tax liability
On or before 15th September	Not less than 45% of the tax liability
On or before 15th December	Not less than 75% of the tax liability
On or before 15th March	100% of the tax liability

Advance tax has to be paid on the 15th of September, December and March— in instalments of 30%, 30% and 40%, respectively—for self employed and businessman. Companies need to pay it on the 15th of June, September, December and March.

How to file it?

Individuals may pay advance tax using tax payment challans at bank branches authorised by the Income Tax (I-T) Department. It can be deposited with the Reserve Bank of India, State Bank of India, ICICI Bank, HDFC Bank, Indian Overseas Bank, Indian Bank, Allahabad Bank, Syndicate Bank, Axis Bank, Punjab National Bank, Punjab & Sindh Bank and other authorised banks. There are 926 branches in India that can accept tax payments. Individuals may also pay it online through the I-T department or the National Securities Depository.

If you miss the deadline

If you fail to pay or the amount you’ve paid is less than the mandated 30% of the total liability by the first deadline (15 September), you will need to pay an interest. This is computed @ 1% simple interest per month on the defaulted amount for three months.

The same interest penalty would apply if you fail to pay the second deadline (15 December). Failing to pay the third and last deadline (15 March) would mean paying 1% simple interest on the defaulted amount for every month until the tax is fully paid.

What if tax paid is more than required?

If the amount paid is higher than the total tax liability, the assessee will receive the excess amount as a refund. Interest @ 6% per annum paid by the Income Tax department to the assessee on the excess amount if the amount is more than 10% of tax liability.

For any queries, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

Accounting And Bookkeeping Services in Delhi

Accounting Services In Delhi

What is Accounting Services in Delhi

Accounting Services in Delhi or Bookkeeping Services in Delhi can be used interchangeably. However, in an actual sense, Bookkeeping and Accounting perform different functions. The recording is a part of the accounting procedure that records all the financial transactions and has disparities with accounting. It helps in organizing the financial records that help the management to analyze the business performance. Helps the organization in providing a reliable measure of its performance.

Further, It helps in identifying the monetary transactions and events which ultimately helps in maintaining proper financial accounts. This process includes the preparation of reference documents for financial transactions and other business activities.

It deals with various methods. The most common ones are Double-entry and single-entry. It is the process where the bookkeeper records all day-to-day monetary transaction of a business

What are the Benefits of Accounts Outsourcing

Accounting and Bookkeeping Services are important for all businesses. It helps the businesses in managing the cash flows effectively, future forecasting, and being well aware of the working of the business. Further, It helps in complying with the legal requirements. It helps in performing various functions and is important for the business in various ways

Helps In Taking Proper Decisions:

It helps the businessperson in deciding what amount you owe to the supplier. Without it, It will be a very tough task. However, if It is done properly, you can get all the accounting records easily. Hence, helps in taking proper decisions in easy and best ways.

Helps In Determining The Business Assessment: It helps in determining whether the business is enhancing or not?

The Bookkeeping mechanism helps in evaluating the exact position of the business by keeping financial records and helps in preparing the Trial Balance and Balance Sheets. It helps in performance evaluations of businesses by making a potent comparison between aspects of profit and growth.

Proper Communication With Investors:

Such as In every business, the Investors would also like to know the potential of businesses. The investor possesses a stake and has the power to make effective decisions. Investors are very anxious to know whether their money has been utilized properly or not, or whether the business is making money or not. Therefore Bookkeeping, the performance chart can be easily examined, and various information can be easily prepared and documented. Hence, Helps to avoid inconvenience and sets the proper link between the investor and a company.

Controls The Cash Flows:

In this Keeping, a check on the cash flows is an important task for any business. By following the adequate steps to record the financial data effectively, It helps in controlling the cash flow management. Many businesses affected by an unexpected liquidity crunch and It helps in administering the cash flow.

Enforcing Proper Tax Compliance:

Enforcing the Tax compliances along with reports required to effectively assess the tax payable to the authorities as well as Tax reports prepared with the help of recorded financial transactions. This Effective Bookkeeping will keep the tax affairs protected. Bookkeeping in the system easily calculates the exact amount of taxes, to be paid, and also for Enforcing the tax compliances and information filed in the tax reports have to be error-free and presented proficiently. Additionally, Failure to keep the tax compliances as well as tax records and as a result may lead to serious consequences, fines, and legal disputes. It plays a crucial role in providing the requisite data in a well-presented manner which as a result helps in avoiding such fines and legal disputes.

CA In Delhi has a team of professionals that helps its client in providing various services like-

Audits of Companies.
Tax compliances
GST Audits.
Reconciliation of errors occurred in the accounting process.
Invoicing and Billing.
Improves the invoicing process and collections.
Better customer Satisfaction by reconciling their accounts.

If you are looking for your Accounting Services in Delhi, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

Shop And Establishment Registration | Process | Fees

What is Shop & Establishment Registration

Most of the businesses in India including shops, restaurants, cafes, etc.; are regulated under the provisions of the Shop & Establishment Registration Act. To regulate the work environment, as well as the rights of the workers, are being protected, it is mandatory to get your business registered under the Shop and establishments Act. However, the rules and regulations vary from state to state, in which the act aims at providing proper working conditions to the laborers and taking care of their holidays, wages, and rights. The License is issued to the following establishments:-

Business
Trade
Professions Registered under the Shop and Establishment Act.
The Shops and Establishment act makes sure that both organized and unorganized sectors are providing appropriate working conditions to the laborers. Such as the applicant (Establishment) has to file an online application concerning his state’s official portal.

What are the Aspects Regulated as per the provisions of the Act?

The Shop and Establishment Act has made various provisions to regulate the aspects relating to the working of shops and establishment in India. Following are Some Key Aspects Regulated by Them:-

Maximum working hours of the employees/ labors
Time duration allotted for meals and rest
Regulating laws to prohibit child labor in factories and other establishments
Women employment
Number of compulsory weekly holidays provided to the employees
Close/off days of the establishments/shops
Opening and closing hours of the establishments/shops
Wages to employees for the holidays
Accidents coverage policies
Preventive measures against fire
Proper ventilation and lighting for workers
Clean and hygienic premises for the workers
Conditions and timing for the payment
Regulation of deductions on the payments
Leave Policy
Dismissal
Also, Employee’s proper record keeping

Note: Additionally, any more information related to the Shop and Establishment Act can be gathered on the relative state government portal.

What are the Benefits of Registration?

Legal Recognition : Shops and Establishment license provides legal recognition to the respective establishment/shop.
Acts As A Business Proof : For further business registration in India, the Shops and Establishment license acts as a business proof.
Helpful In Opening The Bank Accounts And Other Formalities : The registration of Shops and Establishments becomes necessary for reasons like opening a bank account in the name of the establishment/shop.
Provides A Platform For Raising New Investment : The Shops and Establishment license helps the proposed entrepreneur in raising investments through loans or venture capitals for the proposed business establishment.
Avails The Government Benefits : By getting the shop and establishment license, the entrepreneur can avail of the government benefits in different stages of business.
Saves Time : As the process of shop act registration has turned online, it saves time in the registration procedure as well as creates less hectic while in operation.

Who are Eligible to Obtain a Shop and Establishment License in India?

Wholesalers or the retailer’s shops and establishments
Service Centers
Warehouses, Storerooms, and Godowns
Additionally, any other working places
Hotels
Eateries and restaurants
Entertainment houses, Amusement parks, Theaters, etc

What are the Documents Required for the Shop and Establishment License?

Documents required for Shop and Establishment License –

Id proof such as Aadhar card/PAN card/ voter identification card/ driving license of the employer.
Documents such as a Passport size photograph of the employer
The affidavit, Cancelled cheque, and also Bank statement,
As well as a photo of the establishment/ shop along with the employer
In the case of rented property, a copy of the rent agreement
Additionally, Any utility bill of the working premises.

Other Documents Required As Per The Establishment Or Business Entity

In this case of a trust, a list of the number of trustees
Certificate of incorporation, MOA, and AOA as per the Companies Act,
In this case of co-operative societies, as a list of number of members and chairman
Partnership deed with all the important information such as the name of the partners along with their signature and share percentage of partners.

If you are looking for your Shop & Establishment Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

What is Shop & Establishment Registration In Delhi

What are the Aspects Regulated as per the provisions of the Act?

What are the Benefits of Registration?

Who are Eligible to Obtain a Shop and Establishment License in India?

What are the Documents Required for the Shop & Establishment Registration In Delhi?

Compliance for Company Services are:

Compliance for Company includes various services as defined below:

Compliance for Company Servicesa are Following:

Accounting and bookkeeping service:

Advance tax due dates:

Tax Audit:

Statutory Audit:

ROC Compliance:

DIR 3KYC:

Appointment and Resignation of Director:

What is Appointment and Resignation of Director

What is the Eligibility Criteria to be a Director?

Ineligibility

Recognition: Types of Director

Type of Business:

Short Note: Appointment and Resignation of Director

Documents needed for Appointment and Resignation of Director

Resignation of the Director under Section 168

Understandings behind Resignation of Directors

Manner of Resignation of Director concerning Companies

What is DIR 3KYC Compliance

Who has to file DIR-3 KYC Form?

What Documents required to file Income Tax Return?

Overview of ROC Compliance

What included in the ROC Compliance Package

Documents required with the ROC every year

1. Form MGT-7- Annual Return

2. Form AOC-4 – Financial Statements & Other Documents

What is Statutory Audit

What is the applicable limit for mandatory Statutory Audit?

Research the control environment of the organisation

Testing of Internal Controls

Statutory Audit of Balance Sheet

Audit of Profit & Loss Account

Audit of GST

Audit of TDS

Some other important checks:

What is Tax Audit

Tax Audit Applicability

Presumptive Taxation Scheme-Section 44AD

Presumptive Taxation Scheme- Section 44ADA

What should you do to be safe from a Tax Audit?

Type of Accounts Come Under Tax Audit

What includes Turnover for Tax Audit?

What exclude in Turnover for Tax Audit?

Objectives of Tax Audit

What Constitutes Audit Report?

How & when Tax audit, the report furnished?

Due date, by which taxpayer accounts audited

Types of Tax Audit:

The penalty of non-filing or delay in filing an audit report

Overview About the Advance tax and Advance Tax Due Date

Advance tax due dates: Who should file it?

Payment of advance tax: Self employed and businessmen

Payment of advance tax: Companies

How to file it?

What if tax paid is more than required?

What is Accounting Services in Delhi

What are the Benefits of Accounts Outsourcing

Helps In Taking Proper Decisions:

Proper Communication With Investors:

Controls The Cash Flows:

Enforcing Proper Tax Compliance:

What is Shop & Establishment Registration

What are the Aspects Regulated as per the provisions of the Act?

What are the Benefits of Registration?

Who are Eligible to Obtain a Shop and Establishment License in India?

What are the Documents Required for the Shop and Establishment License?

Company Registration

Other Registrations

Corporate Compliance