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Category: knowledge

How to Register a freelancer’s business
How to Register a freelancer’s business

Register a freelancer’s business and Know about Legal requirements

Are you looking to start a career as a freelancer? You are at the right place. This post will help you guide how you can register a freelancer’s business. We understand your dream is to follow your passion and be a master of your schedule. But at the same time, you must also need to consider the legal requirements for freelancers in India. You might be having a lot of questions, confusion about how to get started, legal requirements, business requirements. But don’t worry, this post will cover up all.

Freelance Registration and License in India

If you are starting up as a freelancer, you do not need to mandatorily register a business until your work reaches a certain turnover limit. You can continue to work as a freelancer, with your existing PAN number, if your annual freelancer income is not more than 20 lacs per year. TDS (Tax Deducted at Source) process on your PAN card and included in your income tax.

In other words, If your annual income is less than 20 lacs, you can be freely Freelancing in India, but for various business reasons, still a good option to get yourself register as a proprietor with a mere GST Registration. If you require any assistance with GST Registration, our team will be happy to help you out. You can choose from a list of Chartered Accountants from our homepage.

Once your business register under GST, you can open a current account on behalf of your business and issue a receipt If you want to accept payment of more than 10 Lack rupees.

Additionally, the benefit of getting GST Registration is that you can claim your input tax credit of GST for business-related expenses (like laptop expenses, furniture, appliances, etc.)

Freelancer’s tax In India (Goods and Services Taxes and Income Taxes)

Like any other individual, freelancers are also suppose to pay taxes according to government regulations.

GST for freelancers

If a freelancer earns more than 20 lakh per year (in all states except the northeast of India), GST registration may be required. You must pay a GST of 18% (in most cases) for any income from professional services (mainly done online). For states in northeastern India, the limit is 10 lakh per year. For most professional services, the tax rate is 18%, but there may be exceptions for service fees,

Freelance income tax 

India’s income tax law stipulates that any income a person earns through the exercise of skills consider a professional income, and self-employment income is the sum of all income you receive from your customers, So is, therefore, taxable income beyond a slab.

For Freelancer, income not exceeds 2.5 lakh will not tax. Income from 2.5 lakh to 5 lakh rupees is tax at a rate of 10%. 5 to 10 lakh to 20% and above 10 lakh to 30 percent. Freelancers can use Form ITR 4 when submitting tax returns.

You can use the Form 26 AS associated with your PAN number to help you find all detained TDS. As a self-employed person, you may also need to pay taxes in advance. Withholding tax is the frequent payment of taxes in a given year, rather than one tax payment in a given year. 

According to Article 80 of the Income Tax Law, self-employed individuals can reduce tax expenditures by more than 1.5 lakh. That is when you invest a certain amount of money in tax-saving tools.

Freelance Contract:

One of the biggest challenges in a freelancer’s life is getting payments. Disputes arise when expectations do not match, so be clear and a complete contract must establish. The scope of work and payment terms mutually agree, negotiated, and formulated. Clearly state your presence in the contract.

As Register a freelancer’s business, you should consider some of the items in the contract.

  • Remuneration: the agreed amount to be paid after the work completed.
  • Deadline: The deadline set by both parties.
  • Scope of work: Define the type of activities of the self-employed person during the contract period. 
  • Additional service: payment terms freelancers set default payment terms for each extra effort.
  • Late payment terms: Freelancers can charge interest rates or set different deadlines (this is very important because some customers do not pay during this period). 
  • Advance payment: This clause allows freelancers to charge a certain fee in advance.
  • Termination: The customer can choose to terminate the contract. 
  • Confidentiality: During the term of office, freelancers are not allow to transfer vacancies to third parties.
  • Privacy: Shows the relationship between clients and freelancers. 

The following are the main points to include in your Freelancer’s contract:

  • Scope or purpose of work,
  • Contract period, termination and start of the validity period, timetable
  • Payment method 
  • Verification of basic information

Mainly, based on the effective considerations of Article 2 (d) of the Indian Contract Law of 1872,

If you want to start with Register a freelancer’s business, reach out to Chartered Accountants from CA in Delhi‘s homepage

Receive Money in India from Abroad
Receive Money in India from Abroad

Overview:

When receiving money in India from abroad, there are tax implications that should be considered. Suppose you are sending the money, you double-check how much tax you need to pay when sending money to India in your country/region. Conversely, if you are a resident of India and receive money from abroad, you need to know whether you need to pay taxes on the amount received. In this article, we will address these two issues and more.

What taxes are charged to the sender when transferring from abroad to India?

There is no tax on money sent from abroad to India. None at all. This is because the country already levies taxes on the income received. India has signed double taxation treaties with 85 other countries.

No.Countries
1Armenia
2Australia
3Austria
4Bangladesh
5Belarus
6Belgium
7Botswana
8Brazil
9Bulgaria
10Canada
11China
12Cyprus
13Czech Republic
14Denmark
15Egypt
16Finland
17France
18Georgia
19Germany
20Greece
21Jordan
22Greece
23Jordan
24Hungary
25Iceland
26Indonesia
27Ireland
28Israel
29Italy
30Japan
31Kazakhstan
32Kenya
33South Korea
34Kuwait
35Kyrgyzstan
36Libya
37Lithuania
38Luxembourg
39Malaysia
40Malta
41Mauritius
42Mexico
43Mongolia
44Montenegro
45Morocco
46Mozambique
47Myanmar
48Namibia
49Nepal
50Netherlands
51New Zealand
52Norway
53Oman
54Philippines
55Poland
56Portugal
57Qatar
58Romania
59Russia
60Saudi Arabia
61Serbia
62Singapore
63Slovenia
64South Africa
65Spain
66Sri Lanka
67Sudan
68Sweden
69Switzerland
70Syria
71Tajikistan
72Tanzania
73Thailand
74Trinidad and Tobago
75Turkey
76Turkmenistan
77UAE
78UAR
79Uganda
80UK
81Ukraine
82USA
83Uzbekistan
84Vietnam
85Zambia

As per the Double Taxation Avoidance Agreement DTAA between India and any of the above countries, if you have already paid taxes on income earned abroad, you do not need to pay taxes when transferring the money to India
When sending money to India via foreign exchange or remittance services, the only taxes you need to pay are service tax (minor) and transaction fees.

Therefore, if you plan to remit money from overseas to your parents or close relatives for personal expenses, you only need to remit them directly to your savings account in India. There is no additional tax on this amount.

So how much money can you send to India in a year?

There is no limit to the amount you can send to India within a year. All governments obtain funds from abroad to strengthen the economy. India has no restrictions on receiving funds from abroad.
However, other countries/regions may have regulations that limit the amount of money you can send abroad. These rules vary from country to country.

Example: In the United States, there are no restrictions on how you can send money to India.
When you transfer money to your NRE/NRO account or the bank account of your close relatives, it is tax-free.
According to US law, a person’s close relatives are defined as:
Current or former spouse; father, mother, guardian, brother, sister, son, daughter; or
father-in-law, mother-in-law, son-in-law, daughter-in-law, son-in-law, or daughter-in-law.
However, if you want to send money to friends in India, you can send up to $14,000 tax-free per person per year. You must pay US gift tax.

What taxes are required for recipients of Receive Money in India from Abroad?

If the sender is a close relative, no tax is levied.

According to the regulations of the Reserve Bank of India, transfers of foreign persons who are closely related to you are regarded as tax-free donations.

  • Close relatives are defined as;
  • The individual’s spouse’s brother,
  • A Sister’s individual’s spouse’s brother,
  • Sister’s brother, sister’s individual’s parent’s brother,
  • Sister’s all direct ancestors or
  • Any lineal Ascendants, or Descendants of the individual’s spouse.

However, if you are receive money in India from abroad and sender is not related to you, any amount exceeding 50,000 rupees (approximately US$700) will be taxed as income. excessive.

For example, if your friend in the United States gives you 10,000 US dollars as a gift (approximately 700,000 rupees at the current Indian dollar exchange rate), you need to add a surplus of 6,50,000 rupees to your income.

If the donation exceeds $14,000, your friend must pay gift tax in the United States, and you must pay income tax in India of more than 50,000 rupees.

Frequently Asked Questions: Receive Money in India from Abroad

  1. Will I be taxed if I transfer money from overseas to general savings account in India?
    If you send money to a close relative, you will not be taxed; however, if you send money to a friend or acquaintance in India and the amount exceeds 50,000 rupees, you will be taxed. Anything over 50,000 rupees is considered income and the recipient must pay Indian income tax.
  2. What are the implications of transferring money from India to the United States?
    The tax impact of sending money from India to the US will vary depending on the size of the transfer.
    GST is required for foreign exchange transactions in India.
    Tax on remittance from India to any country.
    1- [up to 100,000 rupees] 45-180 rupees,
    2- [100,000 to 10,00,000 rupees] 180 -990 rupees,
    3- [above Rs.10,00,000] 990-60,000 rupees,
    The maximum tax limit for goods and services in foreign exchange transactions is 60,000 rupees.
  3. Do I need to pay taxes on foreign funds transferred to my account?
    When a close relative sends money abroad, you do not need to pay taxes. However, if the money is sent by someone other than your close relatives, an amount up to 50,000 rupees is considered a tax-deductible gift. If the funds in your account exceed 50,000 rupees.50,000 Then you need to add an extra amount to your income and pay income tax.
  4. How much money can I send from India overseas each year?
    According to the Free Remittance Program (LRS) of the Reserve Bank of India, Indian residents can remit up to US$25,000 overseas within a fiscal year (April 1 to March 31).

If you need assistance in receiving money in India from abroad, reach out to Chartered Accountants from CA in Delhi‘s homepage

Legal regulations and compliance for freelancers in India
Legal regulations and compliance for freelancers in India

Overview: Compliance for freelancers

As a freelancer, it is simple to place the legal and accounting compliance for freelancers at the backburner, However, being a freelancer isn’t simply being a free or independent self-hired worker, but it also means you have a commercial enterprise running along you. To emerge as a successful entrepreneur, it’s very critical to maintain the quality of the services or products you provide and most significantly the way you organizeit and all you need to comply with. Here are some essential compliances you should keep in mind while running a freelancing business.

Accounting and Taxation Compliance for Freelancers:

Not only professionals running Under Trade Name, But Freelancers are also required to follow certain compliances. Most critical of it is to File Income Tax Returns under Section 139 of IT ACT.

Section 44AA of the Income Tax Act calls for that anyone who’s into the career of law, medicine, architecture, engineering, accountancy, technical consultancy, indoors designing, legal representative, movie artist, organization secretary, and records technology, are mandatorily required to maintain books of accounts.

Rule 6F gives for files always maintained. According to it The books of bills consist of the coins book, journal, ledger, carbon copies of serially numbered payments, unique payments of prices incurred, and price vouchers for petty prices incurred for the year.

The others are required to preserve it simplest if their Income from the commercial enterprise/career exceeds Rs.2.5 lakhs for Financial Year 2017-18 (Earlier it was1.2 Lakhs).

With the creation of the Negative List in Service Tax in Finance Act 2012, all of the offerings cover withinside the negative listing are exempt from Service Tax. This has widened the scope of the Service tax net significantly because the those offerings now no longer covered withinside the negative listing are ​taxable.

As for services now no longer stated in Negative List as I.T. Services or engineering/ technical offerings are taxable and, you’re in charge to:

  • Register yourself if gross receipts or aggregate value of the taxable service in a financial year exceeds nine lakh rupees.
  • Compulsorily charge service tax on payments raised on customers as soon as the aggregate value of the taxable service in a financial year exceeds 10 lakhs rupees.

A Freelancer can also declare deductions much like the ones of professionals. To declare deductions or even to run a commercial enterprise you want to incorporate.

Legal Entities a Freelancer can pass for: 

To assist you to decide on which entity freelancers, here’s a short evaluation of common business entities in India. The legal guidelines of Each nation are distinctive, so far encouraged to seek advice from a legal professional so he or she will be able to recommend current regulations and policies of the nation earlier than you are making a decision.

If you want to connect to a professional, you can reach out to Chartered Accountants on CA in Delhi ‘s homepage

Sole proprietorship:

The simplest and the most common entity for a freelancers work is a sole proprietorship. It is a person walking his/her commercial enterprise. It calls for very less hassles and much less paperwork. As a sole proprietor, you can name your business, as per your preference, and freely advertise about it. Additionally, if you wish to restrict others from using the name, you may also opt for Trademark Registration

Partnership Firm / LLP: 

When two or more people collaborate into a business, they can go ahead with a partnership firm, which can be register or unregistered. Usually, no government filings ( other than few tax registrations) are required to form a partnership firm, however, it’s far more secure for partnersto have a written settlement amongst themselves if you want to keep away from future disputes on people roles and duties or division of profits and losses. LLP introduced in 2008, is an improved version of a general partnership.

It offers promoters a useful gain of limited liability & the business enterprise could have continuous existence, The business enterprise must integrate via the Ministry of Corporate Affairs. Not even audited annual returns are required to be submitted with MCA.

One Person Company:

OPC is recently introduced enhanced version of the sole proprietorship firm registration. This offers the promoter a useful gain of limited liability & the business enterprise could have continuing existence. OPC integrate via the Ministry of Corporate Affairs. Not even audit annual returns are required to be submitted with MCA. The business enterprise can nominate some other person as a director without executive powers.

Conclusion: Compliance for freelancers

Potential threats revolve around the business not just from the competitors but also the governments in the form of penalties due to non-compliance. Thus with the aid of using complying with Legal and Accounting Compliance for Freelancers, you could keep each time and money on the later stage and We at CA in Delhi have evolved a scientific procedure to get your legal and accounting compliance achieved seamlessly, We don’t speak jargon we preserve a general stage of transparency in delivering our work.

If you want to get started with compliances for freelancers, reach out to Chartered Accountants from CA in Delhi‘s homepage

How to start a cloud kitchen business
How to start a cloud kitchen business

Overview: How to start a cloud kitchen

How to start a cloud kitchen: A cloud kitchen is basically a virtual restaurant, a kitchen that simply accepts incoming orders through online ordering systems and presents no eating facilities. They have a base kitchen that can provide meals to customer’s doorstep.

Additionally have their online ordering internet site and online ordering app or be given orders via numerous meals transport systems. Since the number one supply of sales for those net eating places is through numerous meal ordering systems which include Swiggy, FoodPanda, Zomato, etc., it’s miles vital to have a check-in machine that keeps a track of the deliveries and the extent the business enterprise generates from various platforms. This will prevent the problem of juggling between orders from numerous websites and their ordering structure/

Here on this blog, we’ll research the primary factors to set up and maintain a Cloud Kitchen company. Without addressing these prerequisites, it gets difficult in maintaining the company.

Location & Property:

Place and belongings are the primary differentiators between a traditional eating place and a cloud kitchen. A cloud kitchen doesn’t want an excessive footfall and high belongings position. Rather, it can without problems be an installation in a 250-three hundred sq. ft. room, as there’s no House Front. This significantly reduces the fee of commencing a cloud kitchen.

The cloud kitchen may be located in a location that is quite difficult to access, but customers have a great demand for it, especially for specific kitchens. Residential areas, behind the market, and unused parking spaces are ideal places for cooking in the cloud. You can choose a public kitchen. Because it helps to reduce the initial investment.

Licenses:

For a variety of reasons, obtaining proper permits and certifications is very important to open a kitchen in the cloud. Second, you can avoid legal troubles by obtaining a license because consumers cannot enter the facility alone to check hygiene, food safety, and readiness. Having the proper license will satisfy you. You can promote them on your website and marketing activities to convince customers that you are producing high-quality food.

FSSAI: Food Safety and Standards Authority of India. FSSAI Licenses are obligatory for food-associated enterprises in India and have to be acquired on behalf of the organization and its owner. The license length can vary from 12 months to five years and have to be renewed earlier than expiry. It’s additionally good to mention FSSAI license at the packaging and bill to construct self-belief in our client approximately our offers.

GST: In this, registration is obligatory for any enterprise in India and additionally, it’s compulsory to report all of the organization taxes in the form of GST Returns timely to the government. It has to be submitted weekly, quarterly, and annually. GST additionally allows you, vendors, because it reduces the tax quantity if all events have a GST number. Upon acquiring a a GST Registration, you can open a bank current account.

If you require any assistance for GST Registration, you can reach out to Chartered Accountants listed on our website.

Trade License: Every enterprise would require to own an alternate license, and so does the cloud kitchen. This may be acquired from the nearby municipal workplace via way of means of furnishing all important documents. It is a one-time process and a sort of obligatory legal requirement.

Fire and Safety License: Now it’s no longer obligatory, to begin with, however, it’s recommended to get one to keep yourself from away from any troubles. This is a part of the law, and fire and health agreements are obligatory for any workplace.

Additional Licenses:

The main licenses to start a cloud kitchen company are FSSAI, Shop & Establishment, GST Registration, Fire Department NOC, etc. Make sure you have these before starting a food delivery company.

Trademark registrationIt is also very relevant for the cloud kitchen company because the idea of this company doesn’t allow the customer to step in, so the brand name of the business is the customer’s HERO. To protect the brand, the business owner must file trademark applications for the logo, name, wordmark consisting of different colors, patterns to create their unique identity on the market.

Kitchen Equipment & Packaging:

The kitchen equipment depends on the type of cuisine you serve. The basic equipment required to start a cloud kitchen is – stove and oven, refrigerator, knives, etc.

Packaging is an important part of operating food companies. No matter how good the food is, it will eventually ruin the entire customer experience and give the company a bad reputation. Packaging also depends on the type of food. I need a plastic container. , Bottles, spoons, etc. to ensure proper food packaging.

Staff: Because there’s no House Front, you don’t want any human beings on your cloud kitchen. Only 2-three human beings working on making things ready and dispensing meals, you could without problems open a store. When you’ve got numerous kitchen brands, the samechef will put together meals for diverse brands. Starting with a small group is best, and you could recruit an extra workforce as incoming order volumes increase.

Since there could be personnel, to work compliantly, the commercial enterprise proprietor will cope with all applicable regulations and laws. Professional tax registration, TDS, PF, Payroll, and salary size will become a critical and vital part of the commercial enterprise.

Salary Accounts, PF, etc: Unfortunately, this is the last thing cloud kitchen proprietors do because the blue-collar personnel are not too worried about paying taxes and getting Provident Fund. When you’re in a severe commercial enterprise with a lengthy-time period target, it’s essential to begin the cycle from day 1. It surely facilitates the group withinside the lengthy run, constructing consider and pleasant relationships with everyone.

Generating Online Orders And Marketing:

Once you’ve installed the kitchen and workforce, generate online orders in your cloud kitchen enterprise.

Since, A cloud kitchen doesn’t have a dine-in facility, depending entirely on online and phone meals orders, spending onmarketing and promotions is essential, at least in the preliminary days. Without a store and no boards and signage, online advertising and marketing are essential in this ​situation.

  • Listing Your Cloud Kitchen On Online Food Aggregators
  • Promoting Your Cloud Kitchen On Online Aggregators
  • Social Media Marketing
  • Search Engine Optimization
  • Loyalty Programs And SMS & Email

Conclusion: How to start a cloud kitchen

While cloud kitchens contain low threats and excessive benefits, one ought to be alert to the opposition beforehand to make profits. A cloud kitchen will virtually be the following theme. If you propose to develop your enterprise or begin a meals channel, the cloud kitchen is the more secure and wiser opportunity thinking about which you preserve it compliant.

If you want to Start with How to start a cloud kitchen, reach out to Chartered Accountants from CA in Delhi‘s homepage

ROC Compliance In Delhi | Private Limited Company | LLP | OPC
ROC Compliance In Delhi | Private Limited Company | LLP | OPC

Overview of ROC Compliance In Delhi

ROC Compliance In Delhi, ROC 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 In Delhi 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 In Delhi | Private Limited Company | Partnership | LLP
Statutory Audit In Delhi | Private Limited Company | Partnership | LLP

What is Statutory Audit In Delhi

A Statutory Audit In Delhi 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 In Delhi 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 Audit In Delhi in which 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

Advance tax In Delhi, Due Date| Calculation | Slabs
Advance tax In Delhi, Due Date| Calculation | Slabs

Overview About the Advance tax and Advance tax In Delhi

Advance tax In Delhi 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 In Delhi, 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 to companies and corporates.

Payment of Advance tax In Delhi: Self employed and businessmen

Due date of installmentAmount payable
On or before 15th SeptemberNot less than 30% of the tax liability
On or before 15th DecemberNot less than 60% of the tax liability
On or before 15th March100% of the tax liability

Payment of advance tax: Companies

Due date of installmentAmount payable
On or before 15th JuneNot less than 15% of the tax liability
On or before 15th SeptemberNot less than 45% of the tax liability
On or before 15th DecemberNot less than 75% of the tax liability
On or before 15th March100% 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.

FSSAI Registration In Dehli | Eligibility | Documents Required | Fees
FSSAI Registration In Dehli | Eligibility | Documents Required | Fees

What is Basic FSSAI Registration In Delhi

FSSAI Registration In Delhi in which FSSAI stands for the Food Safety and Standards Authority of India, which is responsible for the issuance of food licenses to Food Business Operators. It is the apex body incorporated by the Ministry of Health and Family Welfare; Such as the Government of India is accountable for setting up standards for selling, packaging, or storage of food items in India. Additionally, it was set up under the Food Safety and Standards Act, 2006.

The same way all proprietary food units require to get registration/license. Proprietary food means an article of food that has not been standardized under these regulations but does not include any novel food, foods for special dietary use, foods for special medical purposes, functional foods, nutraceuticals, health supplements, and such other articles of food which the central government may notify in this behalf.

It is essential for food business operators like manufacturers, traders, and food store owners to obtain the Registration. Furthermore, there are two types of food licenses depending on the size or scale of the food business, namely, FSSAI License and Basic FSSAI Registration.

Who Requires a Basic Registration?

Every Food Business Operator like hawkers, petty retailers, etc having an annual turnover of upto 12 lacs is under obligation to be registered under the FSSAI Law. Currently, the FSSAI authority is not accepting any registration application for a Basic FSSAI License other than any Proprietor/or Proprietary food units. A Food Business Operator must take note that a Basic FSSAI is mandatory if the Business Falls in any below-mentioned Categories.

  • Manufacture
  • Procurement
  • Processing
  • Distribution
  • Storage
  • Packaging

To be more precise and elaborate, any company or an individual that operates with food substances from the manufacturing units to the serving dishes must obtain the Basic FSSAI Registration.

What are the Benefits of Getting an FSSAI License?

A basic FSSAI License is mandatory for anyone who aims to do a food business. This not only involves food preparation but also who handles food at various stages before it eventually reaches the customer like –

  • Raw materials,
  • Manufacturing,
  • processing,
  • Mess,
  • Canteen packing and,
  • The distribution as well as the agencies who have authority to sell them.

The benefit of FSSAI Registration In Delhi that helps businesses are as given below: –

  • Aware The Consumers : Consumers are becoming more mindful of the nature & quality of their food, which deserves to give many thanks to today’s digital world. Therefore, holding a valid Basic Registration allows for enhancing the level of food credibility and chances of businesses to improve.
  • Ensures Goodwill And Brand Image : The FSSAI logo can ensure goodwill among consumers, which is widely recognized in the food market.
  • Creates Trustworthiness : It makes food as well as quality more reliable and, trustworthy on science-based principles.
  • Rationalization : Streamlines all the processes occupied from manufacturing to distribution as well as the sale of the food products in the market.
  • Maintains Cleanliness And Hygiene : The Important facets of hygiene, cleanliness followed, regulated after the registration completed.
  • Expansion And Growth : FSSAI registration positively influences the production and dependability of the company. Therefore, FSSAI registration gives it a huge chance for a business to expand and grow.
  • Provides Quality Assurance : FSSAI is also liable for setting procedures and guidelines for the attributed labs’ quality assurance as per ISO17025. This enables the customer to think the product is safe to consume in any aspect, as well as it adheres to the guidelines prescribed by the FSSAI Authority.

What is the Checklist Eligibility for FSSAI Basic Registration?

All Small business operators in one state, registered under Basic FSSAI Registration. FSSAI certificate permitted to the state in which the business is located. The eligibility criteria for the basic FSSAI registration are as follows:-

  • Food business operators like wholesalers, dealers, distributors, food sellers, hawkers, bars, restaurants,
  • Food storage units, Dhaba, restaurants, hotels with an annual turnover of upto 12 lakhs.
  • Retailers with operations restricted to sell consumer items.
  • Small-scale manufacturers processing products.
  • Food Manufactures/units.
  • Entities that sell food except the ones serving at any social or religious gathering.
  • The cottage industries related to food.
  • Milk units carrying the dairy processing that have a capacity not surpassing 500 liters per day or have up to 2.5 tons of milk solids annually.
  • Slaughter capacity for not more than 2 large and 10 small cattle, 50 poultry birds per day.
  • Manufacture or refining in solvents and refineries of vegetable oil components, like oil expeller devices. Up to 100 kg/liters (not including milk and meat) per day.

What Documents are Required for Registration?

Following list of documents you would require for the issuance of Basic Registration:

  • FSSAI Declaration,
  • As a copy of identity proof of food business operator,
  • A copy of proof of possession of premise such as rent agreement,
  • and also MOA, AOA, Partnership deed, etc. – depending on the type of entity,
  • Category of food products involved,
  • Also, Plan of food safety management system

Note: Additionally, Documents required For Manufacturers

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

LUT Registration In Delhi | Fees | Process | Documents
LUT Registration In Delhi | Fees | Process | Documents

What is LUT Registration In Delhi

To promote the export of goods or services, the government has provided various reliefs and benefits under GST. Exports help to create employment, achieve a favorable balance of payment situation and boost the economic growth of the country. GST law provides 2 options to exporters:-
1) Export without payment of Taxes by applying for LUT Registration In Delhi or Export Bond.
2) Export with payment of Taxes and claim a refund later.

Export Without Charging GST Using LUT – Letter of Undertaking

Generally, when an entity exports goods or services, are required to pay taxes. However, the GST law allows taxpayers to claim a refund of these taxes paid.

The GST method also offers an attractive alternative, where the taxpayer can apply for a Letter of Undertaking or Export bonds with the GST department. If the application is accepted by the department then the taxpayer is not required to pay any taxes on export, sparing the efforts for claiming a refund and avoid blocking of funds payment of taxes.

What is LUT Registration In Delhi – Letter of Undertaking

The Letter of Undertaking (LUT) is a prescribed document to be furnished in Form GST RFD 11 under rule 96A, whereby the exporter declares that he/she would fulfill all the requirements prescribed under GST while exporting without making IGST payment. Any person registered under GST can submit a LUT only if they have not been prosecuted for tax evasion exceeding Rs. 2.5 Crore, or for any other offense under the CGST Act, the IGST Act 2017, or any other existing law. If the exporter does not meet the LUT requirements, his privileges can be revoked and he must leave a deposit.

Please note :

Letter of Undertaking (LUT) is to be filed online before exporting any goods/services.

Benefits Of LUT And Bond

  • Export of good or services without having to pay taxes
  • Avoid the trouble refund of the tax paid on exports
  • Frees up working capital
  • LUT once filed remains valid for a period of 12 months from the date of submission.
  • The entire process of filing LUT, acceptance by the department online. Bond is to be manually by submit to the department.

Documents Required For LUT Registration In Delhi

In Case Of LUT

  • Previous LUT Certificate
  • GST Login ID and Password
  • DSC of authorized signatory
  • Details of witnesses (Name, Occupation, and Address)

In Case Of Bond

  • GST Form RFD – 11 on the letterhead of the entity
  • Bond on stamp paper
  • Guarantee from Bank
  • Details of witnesses (Name, Occupation, and Address)
  • Authority letter (In case of a company – Board Resolution)
  • Other supporting documents
  • Copy of IEC code
  • Canceled Cheque
  • Pan card
  • Export Invoice

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

IEC Registration In Delhi | Fees | Process | Documents
IEC Registration In Delhi | Fees | Process | Documents

What is IEC Registration In Delhi

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industries, issues IEC Registration In Delhi. Indian companies to have IEC Registration In Delhi if companies want to expand their business via Import and Export. Import-Export Code is a ten-digit code provided by DGFT, the purpose of the Import-Export License is to regulate and monitor the foreign trade in India.

For carrying out Import Export activities in India obtaining IEC registration is compulsory, without having an IEC license no involvement in import-export. Plus, if any business wants to entertain the benefits provided by the government then getting IEC registration is a must. RBI has made it compulsory for all the traders to provide their Import Export Code during any payment transfer.

In the present growing competition, businesses, in order to survive their substitutes available in the domestic market, are stepping out of their local presence. With back to back innovations and the generation of new ideas in business, the emergence of e-commerce, business operating in local limits finds it important to operate globally by stepping abroad.

There are several methods to go beyond the domestic level, such as amalgamation for foreign brands, opening franchisee abroad, starting subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not that easy as it sounds.

Import Export Code (IEC) once gave can be utilized by the entity all through its existence and it doesn’t necessarily need any renewal. When the organization has gotten IEC, at that point the organization can involve in import export necessities with no issues.

Key Features

  • No business can indulge in Import/Export activities without taking IEC registration
  • It works as a proof that a firm is involve in import/export of goods and products
  • Once obtained, an IEC exists for a lifetime. This implies it does not require any renewal.
  • It is not mandatory to involve in import or export of goods for individual or legislative purposes.
  • IEC is obligatory for making foreign bank transfers
  • It is substantial for all parts of importers or exporters business.

When is IEC required?

  • IEC Registration Online did to import and export goods. Passes vendor code details with the port through which the imported-exported take place. Vehicle goods is confined, IEC helps in import-export code without giving the total data trading can be done .
  • Custom authorities will only clear your shipment as an importer if you have an IEC number.
  • The bank needs IEC registration in order to send money abroad
  • To make his shipments clear an exporter needs IEC registration at the custom port
  • IEC registration is needed when an exporter receives payment in foreign currency directly into his bank account
  • Only on the basis of IEC registration, the government of the other countries verifies the trader.

Benefits of IEC Registration In Delhi

Till now it is clear that Import Export Code is a ten-digit code which is essential for every business to obtain who wants to indulge in import-export activities. In India DGFT issues IEC. IEC Registration is the first thing that businesses need to import or export any item from India to some other nation. IEC registration paves the way for many new opportunities for the business personnel.

Here Are The Few Benefits Of Registration:

  • Expansion Of Business : Business can expand in the global market and export goods, products outside the nation’s territory, create a name in the international market.
  • Availing Several Benefits : IEC registration, businesses can enjoy several benefits given by Export Promotion Council, DGFT, and Customs.
  • No Need Of Return Filing : IEC doesn’t include in the filing of return. Once IEC allocated, there isn’t any necessity to follow procedures for its legitimacy. In any event, of the export transaction, DGFT doesn’t order for filing any return.
  • Hassle-Free Processing : Acquiring IEC from DGFT simple, get within a time of 10-15 days in the wake of the application. No evidence required for IEC Registration.
  • Free For Lifetime : Once obtained IEC, can enjoy its validity till eternity, free for a lifetime plus there is no need for any renewal.
  • Government Authorizes Proof : Import-Export Code provided by the DGFT. At the time of clearance of shipment, one can show this identity number.

Documents Required for IEC Registration

The documents needed for IEC registration are as follows:-

  • Scanned copy of proof of incorporation/establishment/ registration for the specified entity. This supporting document is mandatory for Registered Society, HUF, Partnership, Trust, Others.
  • Scanned copy of Photograph (Passport Size)
  • Pan of company / individual / partnership firm / LLP
  • ID proof of individual – Aadhar card, passport, voter id, Mobile no. and email-id
  • You must have a Current or Savings bank account in a bank that contracts and transacts in Foreign Exchange.
  • You should have a scanned copy of the rental/lease deed, sale deed, electricity/phone bill for address verification
  • Submit the scanned copy of the RBI approval letter if an applicant Non-Resident Indian or Non-Resident interested in the Company/firm.
  • Should have ‘Bankers Certificate’ in OR format, scanned copy of ‘Cancelled Cheque’ with Entity’s or Individual’s name pre-printed on it.
  • You should have a ‘Debit/Credit card or Net Banking account’ for Online payment of Government Fees of Rs. 500/- only.
  • In case company applicable, you must have the details of Proprietor and all partners in case of firm or Director
  • The user should have an active Aadhaar or DSC of the firm’s member for submission.

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