The OPC or One Person Company structure is a sole proprietorship business structure refinement. It offers complete authority of the company to a single promoter who is the sole director and shareholder, limiting their liability towards the company. Also, there are no scopes for contributing to equity funding or employee stock options. As per Section 2(62) of the Companies Act of 2013, one-person company registration is legal in India and requires one director and one member to represent the entire company. Also, OPC company registration in India has only a few compliance requirements.
Before enforcing the Companies Act of 2013, a single individual could not form an organization. If they wanted to establish a company, it could be a sole proprietorship business with at least two members and two directors. But as per Section 2(62), now just one director and one member can form a company with the member and the director being the same person. An OPC has all the attributes of a private limited company, like limited liability, separate legal entity and perpetual succession.
Though online company registration fees are minimal, individuals need to meet the following eligibility requirements before opting for OPC registration online:
A resident of India can opt for OPC company registration online in the preceding calendar year.
The company name must be unique; it should not have any similarity to any existing trademark or company.
Only one member can establish an OPC.
A single individual cannot go for more than one online registration of OPC, or a person cannot be the nominee of more than one OPC.
At least one director should be there.
The paid-up capital limit for one-person company registration online is INR 50 Lakhs, with an average annual turnover of INR 2 Crore in the preceding fiscal year. Nevertheless, according to the latest budget, there are no paid-up capital and turnover limits for one-person company online registration in India.
A company should include (OPC) Private Limited in its name for effective and successful online OPC registration.
There's a prior condition to include the name of some other person as the nominee. So, if a subscriber dies, the nominee becomes an OPC member.
Some important documents you need for online one-person company registration are as follows:
Passport or PAN card
Scanned transcript of driver's license or voter ID
Foreign individuals and NRIs should present a passport
Latest electricity or gas invoice/landline or mobile phone invoice or bank account statement.
Passport-size photographs
Specimen signature
All these documents should be self-attested, and those from NRIs must be apostilled or notarized.
One-person company registration in Bangalore may also require the following documents:
Scanned transcript of the rental agreement.
Scanned transcript of band account statement/landline or mobile phone invoice and electricity or gas invoice.
Scanned transcript of NOC or No Objection Certificate from the land owner. If the member is the property owner, he or she must present a scanned transcript of the sale deed.
Applicants must follow the steps below for one-person company registration in India:
Online application for OPC registration starts with applying for DSC or Digital Signature Certificate, which the Certifying Authority issues.
You must apply for the DIN or Director Identification Number in the SPICe+ Form along with all details of the Director. The DIN is for the proposed company director.
The next step is company name approval. The company name should be XYZ OPC Private Limited Company. At this step, you can use the RUN service to check name availability and apply for one OPC name through SPICe+ (INC 32).
You must file a SPICe+ form for OPC registration within 20 days of the approval date of the company name, along with all documents. Once you upload everything on the MCA portal, it will automatically generate your TAN and PAN.
The Registrar of Companies will give the COI or Certificate of Incorporation if they find all your documents and details appropriate.
It takes just one day to obtain the DIN and DSC of the proposed directors while obtaining the Certificate of Incorporation takes 3 to 5 days upon due payment of the one-person company registration fees. On that note, the one-person company registration charges will not be too high if you can find the best online CA services for OPC registration and registration of GST. The entire one-person company registration process in India takes around ten days, provided respective departments revert with the approvals on time.
A few restrictions on one-person company registration include the following:
Minors cannot hold shares with beneficial interests in an OPC.
Minors cannot become a nominee or members of an OPC.
An OPC cannot be converted or registered as a company as per Section 8 of the Companies Act.
A one-person company cannot opt for voluntary conversion before completing 2 years from the registration date.
An OPC cannot take up non-banking financial investment activities.
Some primary advantages of OPC registration in India include the following:
Limited liability protection for the Director's assets.
It is very easy to manage a one-person company. OPCs do not need to conduct AGMs or annual general meetings and file very few ROC filings with the Registrar of Companies.
In India, OPCs are considered private limited companies. Therefore, there's better credibility of OPCs in the market with government agencies, vendors and corporate customers willing to work with them.
Startup entrepreneurs can use the OPC business structure to test their business model and the marketability of their products.
Since only a single owner controls the company, it takes little time to execute decisions.
It is easy to sell a one-person company as there's less cost and documentation involved.
So, there you go! You do not need much time to register a one-person company. The provisions for OPC registration in India are present in the Companies Act 2013. Also, OPC registration has several advantages, like limited compliances, limited liability and separate legal entity. However, you can opt for expert advice if you need help with the process.
Is registration compulsory for a Person Company?
Yes, one-person company registration is compulsory as it enhances the legitimacy of a business and offers several benefits, such as a secure company name, less compliance, limited liabilities for the director, low-income tax rate, no third-party intervention, easily transferable ownership and perfect for credits and banking loans.
Why is OPC better than private limited?
An OPC is better than a private limited company because it offers the limited liability advantages of a private limited company or PLC and the flexibility of a limited liability company.
What is a dormant company?
A company that cannot meet its annual compliances is dormant and can be struck off anytime. However, reviving a struck-off company for up to 20 years is possible.
What is the Director's Identification Number?
A unique number that all proposed and assigned company directors possess is the Director Identification Number. This number does not expire; a director can have a single DIN.
Is audit compulsory for OPC?
Yes, an audit is mandatory for an OPC. An OPC must appoint a chartered accountant as company auditor to verify its books of accounts and issue a Statutory Audit report.
Can OPC raise funds?
Yes, an OPC can easily raise funds through financial institutions and venture capital. It can also raise funds by transforming into a Private Limited Company.
Is GST mandatory for OPC?
Yes, GST is mandatory for one-person companies involved in product supply and services through different e-commerce platforms.
Global business expansion and hiring offer some of the most exciting business scopes. Opening a foreign subsidiary can greatly benefit businesses looking to enter the foreign market. A foreign subsidiary of an Indian company serves as a separate legal entity in the target country. It gives the parent company advantages, such as compliance risk mitigation and local tax incentives. Nevertheless, establishing a foreign subsidiary company requires heavy investment in terms of money and time. It may also expose businesses to compliance risks resulting in reputational damage, lawsuits and fines.
Here, we will go through the advantages of establishing a subsidiary of foreign company as part of a global business plan and other related information.
A foreign subsidiary is a commercial establishment that operates in one country but is wholly or partially owned by a parent company in another country. Such companies are also called Daughter Companies and are separate legal entities that must meet the requirements for compliance for foreign subsidiaries in India. This entails complying with the local jurisdiction's employment and tax laws. The company that owns the foreign entity is the parent or holding company.
The features of the subsidiary company may vary between jurisdictions. However, they must all be a minimum % owned by their respective parent companies. Foreign subsidiaries work on a global expansion strategy where a company comes up with a legal entity in any foreign market for business operations in that country. The subsidiary gives the parent company growth opportunities while safeguarding it from litigation in the host country. Foreign subsidiaries can promote the parent company's products and services to the local population, hire local employees and import and export goods.
Establishing new foreign subsidiaries in India can give foreign companies complete control over their strategy and operations. Whether or not establishing a new foreign subsidiary in India is the right move for you is based on your business's present circumstances and future aspirations. These are a few situations where coming up with a foreign subsidiary can make complete sense:
When you have several remote workers in the same location
When your employees want the stability and advantages of working full-time instead of a contractors. Coming up with a foreign subsidiary will help you offer full-time employee status to your workers while also enjoying the peace of mind that comes with it. Giving full-time status to employees also simplifies taxes for them.
When you are looking to strengthen your business presence in a specific location, opening a foreign subsidiary can help you build relationships locally and work more efficiently than would be the case when running operations from abroad. Forming a subsidiary demonstrates your commitment to the area.
When you want to minimize financial risk, since foreign subsidiaries are separate entities from the parent companies, they come with fewer risks for the parent companies looking for global expansion.
When you want to reduce the burden of high tax rates. Establishing a foreign subsidiary can help your business reap tax advantages and incentives, including lower tax rates than your native country.
With these points in mind, you must also consider that establishing a foreign subsidiary is not for everyone. Always assess associated risks and research all possible expenses along with the amount of paperwork that you would have to indulge in when you want to open a foreign subsidiary.
Financial accounting for foreign subsidiaries that are more than 50% owned by the parent company entails consolidating their financial accounting results and records with the parent company. Financial accounting is unconsolidated for the affiliate companies that are less than 50% owned by the parent company. The financial records of such companies are separated. On that note, for a company to be a foreign subsidiary, the amount of equity participation should be above 50%. The foreign subsidiary capital structure generally describes the liabilities' side composition of the company's balance sheet.
The following are the advantages of foreign subsidiaries:
Coming up with a foreign subsidiary helps a company establish a legal entity in another country, helping it market its products and services to the local people.
Several overseas markets have developed manufacturing facilities enabling foreign subsidiaries to lower the cost of materials and, thus, the cost of producing goods in bulk.
Professionals in foreign countries offer access to new ways of thinking about technical problems and advanced technology. Thus, foreign subsidiaries get easy access to technical skills.
A foreign subsidiary also helps a business make new relations with local partners and develop joint ventures that reap the benefits of localized knowledge.
In most situations, entering a foreign market increases revenue and boosts business growth, which is impossible in one's home country.
Several nations welcome foreign investments openly and make it very simple for businesses to develop foreign subsidiaries. There are even incentives available for foreign investments. These include free trade zones, tax incentives, faster incorporation procedures and special economic zones.
The process of foreign subsidiary registration in India goes like this:
The incorporation procedure starts with two directors applying for DSC or Digital Signature Certificate and the remaining directors applying for DIN or Director Identification Number.
Applicant should apply for the company name in Form INC-1.
Logging in to the Ministry of Corporate Affairs and getting a new online form to fill in details like CIN or Corporate Identification Number, entity type and proposed company name.
Providing documents like trademark, NOC and apostille copies of the resolution of foreign companies.
On approval of the proposed company name, the applicant must file Form INC-7, Form DIR-12 and Form INC-22.
After filing incorporation papers, applicants must pay stamp duty and ROC fees.
The incorporation certificate is sent after ROC verifies the paperwork and fee payment.
If you find subsidiary company registration difficult, you can always take the legal assistance of professionals at https://adca.in/subsidiary-company-registration-bangalore.php to register for a foreign subsidiary easily.
Speaking of the taxation of foreign subsidiaries in India, the Indian government taxes the income of these companies at the rate of 40%. Audit of a foreign subsidiary is also essential from time to time to ensure the entity meets all the requirements in place for a foreign subsidiary of Indian company compliance.
What is the difference between a foreign company and a foreign subsidiary?
The main difference is that the foreign subsidiary has more rules and regulations than a foreign company. Companies with more than 50% of equity shared owned by distant companies come under the category of a foreign company.
Why should a company set up a foreign subsidiary?
It is beneficial for a company to develop a foreign subsidiary as it allows the company to establish a corporate standing in a specific overseas economy. This further generates tax advantages, boosts revenues and diversifies a company's assets for better risk management.
What are the objectives of a foreign subsidiary?
The main objective of a foreign subsidiary is to introduce the products and services of the parent company to all new and profitable markets across the world. Such companies also allow parent companies to hire full-time employees abroad without needing a middleman, like an employer of record.
How do you account for a foreign subsidiary?
If a company reports on a US GAAP basis with control of a foreign subsidiary, consolidating tit into the US parent for financial reporting is vital. In case the foreign subsidiary does not maintain its records in US dollars, it becomes crucial to converting the financial statements into US dollars.
Can a foreign subsidiary apply for start-ups in India?
No, foreign subsidiaries cannot apply for start-ups in India. However, companies with foreign directors and shareholders can apply under the start-up Indian scheme.
What is the difference between a joint venture and a foreign subsidiary?
While a joint venture is a partnership between two or more firms, usually domestic and foreign companies, a foreign subsidiary is a separate legal entity partially or wholly owned by a foreign company.
Taxation is the key source of revenue for all Indian states, and this speaks of the importance of income tax. India's perfectly structured tax system uses both proportional and progressive taxation based on income and associated factors. The state and central governments determine income tax in India, and the money thus received is called tax revenue. The importance of tax received from individuals also lies in the fact that the money thus received is used for varied purposes, like public education and healthcare; infrastructure development like bridges, dams, roads and railways; civil services and defence. The main importance of taxation in India is assisting the government in satisfying all its development objectives.
ITR, or Income Tax Return, is a form issued by the government for individuals to declare their annual income, expenditures, exemptions, deductions and taxes paid. Mandatory filing of income tax returns is important for deductions under Sections 80C, 80D and others for individuals who make more than Rs. 2, 50, 000 as income. The deductions together can help bring down the taxable income of a person. Filing income tax returns is not mandatory for individuals with income less than Rs. 2, 50, 000.
The majority of individuals are not aware of the importance of tax returns and consider them to be a time-consuming procedure. Hence, they do not file tax returns. Nevertheless, as a responsible citizen, you must understand tax and its importance and file your returns on time yearly. As a working Indian, follow the tax return filing procedure and reap its benefits. For income tax advisory and filing services, contact professionals at https://adca.in/income-tax-advisory-and-filing.php.
But before understanding the importance of taxation in India and its benefits, let's get into the features of taxes levied on an individual's income.
Some of the main features of income tax in India are:
Income tax in India is levied as per entry No 82 of a list I or Union List of the Seventh Schedule to the Article 246 of the Constitution of India.
Income tax is chargeable by the Central Government of India on all forms of income except agricultural income. The state government charges income tax on agricultural income.
Since the liability to pay income tax and its burden are on the same person, the kit is a direct tax.
Also, it is an annual tax as it is an individual's income of a specific year that is tax chargeable.
Income tax is the tax on the income earned by an individual. This "individual" can be any person, firm, local authority, company, the body of the individual, association of person, Hindu Undivided Family or any other artificial juridical individual. Individuals covered under income tax are known as assessees.
Income tax is a tax on house property income, salary income, capital gains, business or professional income and other earning sources. On that note, a few incomes are specifically exempted from income tax.
Income made during a specific financial year is duly assessed to tax in the following immediate financial year.
There is a prescribed rate at which income tax is charged. Tax rates prescribed under Income Tax Act include 20% for taxes on long-term capital gains, 15% for taxes on short-term capital gains on shared covered under STT and 30% taxes on income made from lotteries.
The Central Government (Ministry of Finance) administers income tax in India in coordination with the income tax department with branches nationwide.
Income tax applies throughout India, including Jammu and Kashmir.
Here are a few benefits of taxation that you must know about:
Regular filing of tax returns makes it easier for individuals to process loans from different banks.
It also helps individuals to claim their carried forward losses.
Any form of tax paid by an individual helps build a nation. The money generated through tax contributes to the government's cash flow, and the government further uses this amount to build infrastructure.
Regular tax payment also helps people with their credit card and visa applications. It improves their eligibility for such documents.
Filing regular taxes is one of the major prerequisites for obtaining a tax clearance certificate, especially when selling or transferring assets.
ITRs make an individual eligible to undertake all kinds of government assignments.
The most basic purpose of taxation is to fund all government expenses. While earlier taxes from individuals with taxable income were used to raise armies, build defences and support the ruling classes, they are now used to encourage the development of a more equitable society. On the other hand, higher taxes on certain products and services, like gasoline and tobacco, have been put in place to avoid further consumption.
The Income Tax Act features a total of 23 chapters and 298 sections. Considering this huge amount of information in place, it is extremely difficult to go through all the chapters and sections. However, there are five income tax important sections that every individual with taxable income should know about. Clear knowledge of these five sections can be useful when deciding to invest their corpus in any of the investment tools. Also, if you do not understand income tax sections very well and require help with income tax audits in Bangalore, get straight to https://adca.in/income-tax-audit.php, where you can find the best assistance possible. The main sections of income tax are:
Section 80C allows for deductions on an individual's investments in specific instruments. The two most well-known options in this category include Tax Saving Fixed Deposits and Tax Saving Mutual Funds.
Section 80CCC provides income tax deduction to pension funds under Chapter VI- A from the total gross income of the taxpayer for that specific financial year. This section enables taxpayers to invest in pension funds.
Section 80CCD offers income tax deductions for all NPS or National Pension Scheme contributions. The maximum deduction individuals can claim from this section is 10% for salaried individuals and 20% of total gross income from the self-employed.
Section 80TTA of the Income Tax Act (Chapter VI-A) allows individuals to claim deductions of up to Rs. 10, 000 annually from the interest earned through savings accounts deposits held in cooperative societies, post offices and banks.
Section 80TTB of the Income Tax Act gives senior citizens above 60 years of age the flexibility to claim tax breaks in the interest income made from deposits they hold.
Taxpayers can considerably bring down their taxable income by using the different income tax exemptions and deductions allowed under the Income Tax Act.
How many types of tax returns are there?
There are 7 forms of tax returns for individuals. These are ITR 1, ITR 2, ITR 3, ITR 4, ITE 5, ITR 6 and ITR 7. Companies and firms can file their income tax returns using ITR-5, 6 and 7.
Who is eligible for ITR?
According to the Income Tax Law in India, individuals with an annual income exceeding Rs. 2, 50, 000/ 3, 00, 000/5, 00, 000 are mandated to file income tax returns. This will be their way of informing the government to operate the country's financial sectors smoothly.
What's a simple tax return?
A simple tax return is the income tax filed using IRS form 1040 without attaching any schedules or forms.
Who is not required to file an income tax return?
Individuals with income less than Rs. 2, 50, 000 and people above 80 years of age not making professional income or income from regular business are not required to file income tax returns.
Who is exempted from filing ITR?
As per section 194P of the Income Tax Act, senior citizens above 75 years of age, senior citizens with "resident" status in the previous year and those with interest and pension income only are exempted from filing ITR.
Which tax savings is best?
Life insurance, pension plans, mediclaim or health insurance, tax saving mutual funds and NPS are the best tax savings offering maximum benefits.
Operating as a business is one of the best ways to work on your terms and gain complete financial independence. But put in a lot of effort to set up your own business. Beginners in this field must develop the right business plan, which involves choosing an appropriate name for the company, planning operations and arranging funds. Aspiring entrepreneurs must also know the difference between LLP and Pvt Ltd to register their business accordingly.
LLP, or a Limited Liability Partnership, is a business entity that offers the advantages of a partnership firm and a private limited company. All partners in an LLP have limited liability towards the firm. The limited liability also applies to their contributions, and one partner may not be held responsible for the liabilities of the other partners. An LLP in India operates as per the guidelines noted under the Limited Liability Partnership Act 2008.
A Private Limited Company or Pvt Ltd is where private investors hold shares, and the public cannot trade those shares on the stock exchange. The shareholders may be different from the owners of a Private Limited Company, and thus the liabilities and profits are shared among the company owners, according to the Companies Act, 2013.
Some major benefits of registering a business as an LLP are:
- Starting and managing an LLP is easier because of its fewer formalities.
- The death of any of the partners does not affect the survival and existence of a limited liability partnership firm as it has perpetual succession.
- The cost of registering an LLP is lesser than registering other forms of businesses or companies.
- You do not require huge capital to start an LLP.
- Partners in an LLP have limited liability.
The benefits of registering a business as a Private Limited Company include the following:
- You do not require a minimum paid-up capital to develop a Private Limited Company.
- Members of Pvt Ltd have limited liability.
- Such companies can raise funds very easily.
- A Pvt Limited Company has a separate legal entity from all its members.
- The company also has perpetual succession.
Now let us have a clear idea of the points of difference between LLP and private limited. They are as follows:
The registration procedure features key differences between LLP and a private limited company.
- You must register for a Pvt Ltd firm as per the Companies Act, 2013, along with the Registrar of Companies. A DIN or Director Identification Number is required to register a Pvt Ltd.
- An LLP is registered as per the Limited Liability Partnership Act, 2008, along with the Registrar of LLP. A DPIN or Designated Partner Identification Number is required to register an LLP.
Speaking of the ownership difference between Pvt Ltd and LLP Company
- A Private Limited Company is more flexible in ownership, and a maximum of 200 shareholders can hold it.
- In the case of an LLP, partners can hold ownership and operate the company without additional directors, share distribution, and shareholders.
There is also a certain level of tax structure difference between Pvt Ltd and LLP in India:
- Though the tax compliance is the same for both business entities, besides the tax on annual income applicable for both, private limited companies need to pay an additional dividend distribution tax when their profits are distributed among the shareholders.
The characteristic points of difference between LLP and Pvt Ltd India are as follows:
- LLP and Pvt Ltd are transferable entities, but the process is easier in the case of a Pvt Ltd firm where the shares can be moved easily to another shareholder.
- Also, private limited companies can hold general and board meetings within specified timelines which does not apply to the LLPs.
- While a private limited company must draft an Article of Association and Memorandum of Association that puts down its business activities, objectives, shareholding details and company information, a limited liability partnership contract suffices for an LLP.
Which is better, Pvt Ltd or LLP?
Coming to LLP vs Pvt ltd company, LLP will be the right fit for you if you plan to operate a small business with limited capital and a partner. However, go for a Private Limited Company if you want to operate a business with substantial funds and aggressive growth.
Why is LLP better than Pvt?
Once you know the difference between a private limited company and LLP, you will find that LLP is better than Pvt mainly because the cost of registering an LLP is lesser as compared to registering a Pvt Ltd. Similarly, there are fewer formalities, and you need to produce fewer documents to register as an LLP.
Can an LLP have employees?
Yes, an LLP can have employees. The Indian government has not barred any individual from business and employment.
Why do people prefer LLP?
you thoroughly review LLP and Pvt ltd differences, you will find that people prefer LLP mainly because it does not expose partners to unlimited liability. Additionally, the partners or members of an LLP company can be sued, or even they can sue an individual, as an LLP is a legal entity.
What is the minimum capital for LLP?
The difference between a Pvt Ltd company and LLP also points out that no minimal capital is needed for LLP, unlike a private limited firm where the minimum capital requirement is Rs. 1 lakh.
Is the GST number mandatory for LLP?
Yes, the GST number is mandatory for all the limited liability partnership firms supplying products and services. They are required to obtain GST registration based on their annual turnover.
What is the minimum tax for LLP India?
The AMT or Alternative Minimum Tax for LLP Indian is 18.5%. However, this tax is levied with other applicable surcharges and cess.
How many partners are required for LLP?
At least two partners are required to establish an LLP. However, the maximum number of partners cannot be restricted to form a limited liability company.
NRIs or non-resident Indians with warnings abroad and even in India face several finance management problems. They also find it difficult to track different bank accounts while repatriating money to their home accounts. NRO and NRE accounts come to the rescue here. An NRI opens a bank account in India to manage their foreign earnings, which is an NRI account.
NRIs or non-resident Indians with warnings abroad and even in India face several finance management problems. They also find it difficult to track different bank accounts while repatriating money to their home accounts. NRO and NRE accounts come to the rescue here. An NRI opens a bank account in India to manage their foreign earnings, which is an NRI account.
On the other hand, an NRO account is a bank account that an NRI opens in India to park earnings made in India. Such incomes include dividends, rent, interest and pension and must be initiated by filing Form 26QB. If an NRI books an apartment in India and pays money from a bank account, it is important for them to file Form 26QB online. TDS form 26QB can be filed separately.
Form 26QB is a return-cum-challan form used for paying TDS or Tax Deducted at Source to the government for all deductions made under Section 194-IA of the Income Tax Act, 1961. This section handles transactions involving the sale of immovable property and applicable TDS. Submitting a duly filled-in TDS form 26QB within 30 days of transferring immovable property is important. Some of the most critical requirements to file form 26QB are as follows:
- Seller and buyer address
- Seller and buyer PAN
- Property details
- Seller and buyer contact details
- Tax deposit information
- The amount credited or paid
The Income Tax Act 1961 lays out a few important rules about the sale and purchase of the immovable property. In these transactions covered under Section 194-IA, the property buyer, also called Deductor, needs to deduct TDS if the value of the transaction is above Rs. 50 lakhs. Next, the buyer must also issue form 16B to the seller. Essential requirements to file form 26QB, as listed under Section 194-IA of the Income Tax Act, 1961, are as follows:
- When completing the transaction, the buyer should deduct TDA at 1% interest of the total sale amount.
- The buyer doesn't need to deduct TDS on immovable properties valued at less than Rs. 50 lakhs. TDS is generally deducted from the entire transaction amount for transactions below this limit.
- TDS u/s 194-IA does not apply to transactions that involve agricultural land.
- TDS is deducted proportionately on each instalment if the payment is made in instalments.
- The property buyer doesn't need to get a TAN or Tax Deduction Account Number for deducting and depositing TDS. Nevertheless, PAN is crucial for the property buyer and seller if a TDS deduction occurs using form 26QB.
- The property buyer should present a TDS certificate to the seller after deducting and depositing TDS. This should be done within 15 days of the transaction in lieu of the tax deducted and deposited to the government.
- Lastly, the property buyer should get form 16B and present the same to the seller.
Failure to deduct TDS, issue form 16B, or file form 26QB under Section 194 IA of the Income Tax Act may attract penalties and interests. These include:
- A penalty of 1% interest will be levied on the amount not deducted for TDS in case of non-deduction of TDA on the part of the property buyer.
- A monthly penalty of 1.5% of the deducted amount will be levied on non-remittance of TDS to the government.
- In case of a delay in filing TDS returns, a penalty of Rs. 200 per day for each day of default shall be levied.
The process of filling out form 26QB online is very easy. Just go for form 26QB, download and start filling in the form. The steps for the 26QB form download and filling in are as follows:
- Get to https://www.tin-nsdl.com/.
- Next, click on Services- epayment: Pay Tax Online.
- Go to Proceed in the TDS on Property section and start filling in form 26QB by providing all relevant details. Ensure you have all details, like PAN details of seller and buyer; communication details of seller and buyer; property details; tax deposit details and details of the amount credited or paid.
- Submit the form, and you will get a confirmation screen. You will also get two options on the screen. They are Print Form 26QB and Submit to the Bank. You will also get an exclusive acknowledgement number to note down.
- Now click on the option that says Print Form 26QB and then click on Submit to the Bank.
- The next step is to make the payment through internet banking, and once you complete the payment, you will get a challan with payment details, bank name and CIN. This challan is proof of your payment.
You can make form 26QB payment either online or offline. The steps you need to follow for form 26QB online payment include the following:
- Get to onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
- Now click on Form 26QB.
- Choose 0020 if you are a corporate taxpayer; otherwise, click 0021.
- Fill in all the empty blanks and then click on Proceed.
What is the use of 26QB?
The main purpose of form 26QB is to pay the TDS or Tax Deduction at Source to the government for all deductions made under Section 194-IA of the Income Tax Act, 1961.
How to generate a 26QB form?
Form 26QB must be generated at TRACES or TDS Reconciliation Analysis and Correction Enabling System. It is an online platform for managing and implementing TCS and TDS. The steps include:
- Logging into TRACES by providing user ID, password, PAN and specified captcha.
- Getting to the justification report download where you get form 26QB.
- Entering required details along with CIN details.
- Next, you will get a success message
- Now navigate to the requested downloads and provide the requested date or number
- The last step is to download the file and open it using the password "PAN of the Buyer" in capital letters.
Who needs to file 26QB?
Property buyers should file form 26QB for every exclusive buyer-seller combination for their respective shares. Fill two forms if there are two sellers and a single buyer. Alternatively, four forms should be filled in if there are two sellers and two buyers.
What happens if TDS is not deducted on the purchase of property?
If TDS is not deducted on property purchase, an interest of 1% is levied for every part of the month or every month from the date on which the TDS was deductible till the date on which the TDS was deducted. This penalty can range to Rs. 1 Lakh under Section 271H. You can avoid this penalty by paying the TDS, the late payment fee, and the interest amount as soon as you get a tax notice.
Who will claim TDS on the sale of a property?
While the buyer needs to deduct TDS on the property and deposit it to the government during the property sale, the seller avails credit of the same or claims TDS on the sale of the property.
What is the stamp duty value for the property in form 26qb?
Section 194-IA of the Income Tax Act, 1961, read with Rules 30, 31, and 31A of Income Tax Rules, states that the stamp duty value of 1% shall be deducted for all transactions made during property purchase at the time of making a sale payment consideration.
Can we claim a TDS refund on the property purchase?
Yes, claiming a TDS refund on a property purchase is possible. The property seller has the right to do so, while the buyer needs to deduct TDS on the property and deposit the same with the government during the property sale.
Is 26QB refundable?
Yes, taxpayers can submit a refund request for form 26QB on TRACES if they meet criteria like:
- PAN of the taxpayer matches TAN Master and TRACES profile.
- Deductor has registered the DSC of the Authorised Person on TRACES.
OCIs or Overseas Citizens of India, PIOs or Persons of Indian Origin Residing Abroad, Expatriates or Foreign Citizens Residing in India and NRIs or Non-Resident Indians often remit money lying in the bank accounts in India from their NRO accounts to:>/p>
- Either their Foreign Bank account held by OCI/NRI in their native country outside India
- Or their NRO Bank account in the same bank or some other bank.
When the PIPs/NRIs/OCIs request their respective banks for the remittance, the banks usually ask for additional documents, within which form 15CA and 15CB are the most important. Other documents to be submitted along with these forms include:
- Application for outward remittance from NRO account.
- Source of funds along with documentary support only in some cases.
- Passport copy in some cases and A2 form or a form under the RBI regulations.
Form 15CA and 15CB are income tax forms regulated and governed by the Income Tax Authorities in India. Section 195 of the Income Tax Act 1961 offers provisions for form 15CA and form 15CB. Form 15CA & 15CB are declaration and certification forms associated with remittance/payment made to non-residents. Section 195 does not apply to the remittance by PIOs and NRIs from their NRO accounts to their NRE accounts or other foreign accounts. Banks require forms 15CB and 15CA for this purpose. Both forms are prepared and submitted online on the web portal of the Income Tax department, which is www.incometax.gov.in.
The individual remitting money from their respective bank makes a declaration through form 15CA. In this form, the individual states that he has deducted tax from any payment thus made to him. The remitter or the individual who makes the payment to a foreign company or an NRI files form 15CA income tax. This NRI form is also used as one of the most effective tools to collect information regarding payments chargeable to tax.
The Income Tax Department uses form 15CA to track different foreign payments/remittances and their taxability. According to IT Rule 37BB, authorised dealers or banks must ensure they get such forms from the remitters. Form 15CA CB must be filed with the Income Tax Department, and 15CB should be accompanied by a CA certificate.
While form 15CA is the remitter's declaration, form 15 CB is the certificate issued by a Chartered Accountant. The Chartered Accountant's responsibility is to ensure all important provisions of the Double Taxation Avoidance Agreement and IT Act have been duly complied with regarding tax deductions when making payments.
Suppose you are a Non-Resident Indian receiving money from Indian residents. In that case, banks in India will credit you the money only if the remitter or the individual paying the money has submitted Forms 15 CA and 15 CB. Let's understand the need for these forms.
Let's assume you are an NRI who has let out residential property in India and received rent from the tenant. Since you receive this money from an individual in India, the tenant needs to submit forms 15 CA and 15 CB to pay you the rent.
Under section 195 of the IT Act, individuals paying NRI must collect TDS if the transaction is taxable in India. The remitter must submit Form 15 CA and a certificate from a chartered accountant in Form 15 CB. The main requirement of these forms is to ascertain that the remittance payments made to the NRIs are in line with the income tax laws in India. Both forms are available online and are useful for NRIs to avoid instances of double taxation.
Of course, filing forms 15 CA and 15 CB for foreign remittance is crucial. Section 195 of the Income Tax Act of 1961 makes the filing of form 15 CA for foreign remittance compulsory to deduct income tax from the payments made by Indian citizens to the NRIs.
A person making the payment or remittance to an NRI should furnish a declaration under form 15 CA for foreign remittance attested by a CA Certificate in Form 15 CB. When an individual makes any kind of payment or remits money to an NRI, banks must verify the amount's tax payment. There are specific tax slabs for tax deductions that can vary in amounts, and forms 15 CA and CB serve two varied purposes.
Form 15 CB regulates tax deductions according to income tax rules and even prohibits double tax provisions. Filing form 15 CB requires due attestation from a chartered accountant. This form includes information, such as the details of the remitter, details of the remittee and type of remittance, including commission, salary and royalty.
The provision of details from payments made to Non-Residents in form 15 CA is categorised into 4 parts. Based on the case, an individual needs to fill relevant parts, which include:
- Part A: When the payment to the NRI or the aggregate of the payment is not more than Rs. 5 lakh during the fiscal year.
- Part B: When the payment to the NRI or the aggregate of the payment is not more than Rs. 5 lakh during the fiscal year and a certificate or order under Section 195 (2)/ 195 (3)/ 197 of the IT Act is received from the Assessing Officer.
- Part C: Where the payment made to the NRI or the aggregate of the payment exceeds Rs. 5 lakh during the fiscal year, a certificate in Form 15 CB is received from a chartered accountant.
- Part D: When the payment made to the NRI is not chargeable to tax under the IT Act of 1961.
Form 15 CB and Form 15 CA applicability conditions are as follows:
- The remitter should submit only Part A of Form 15 CA when the remittance is not more than Rs. 5 lakh in a certain fiscal year.
- The remitter need not submit any form if the remittance amount is not chargeable to tax.
- Remitter must submit only Part D of Form 15 CA if a specified exemption list covers the remittance.
- Remitter needs to submit Part C of Form 15 CA and Form 15 CB if the remittance amount exceeds Rs. 5 lakh.
- The remitter must submit Part B of Form 15 CA if the remittance amount exceeds Rs. 5 lakh and if he or she receives a certificate under Section 195 (2)/195(3)/197 of the Income Tax.
Form 15CA and 15CB requirements of documents include:
- Details of the remitter like name, address, PAN number, email ID, phone number and main place of business.
- Remitter's status
- Bank details of remitter like name of the bank, name of bank branch and BSR code of the bank.
- Details of the remittee like the main business place, address and country
- Details of remittance like remittance amount in Indian currency, the currency used for the remittance, destination country of remittance and the proposed date of remittance.
In relation to submitting forms 15 CA and 15 CB, PIOs/NRIs/OCIs generally look for competent and experienced chartered accountants or tax consultants to help them with form submission and other related procedures. ADCA, or Anil D'Souza and Associates, is a top chartered accounting firm in Bangalore with a remarkable track record of serving clients in tax implementation and compliance. ADCA offers full-fledged services to various OCIs, PIOs and NRIs, along with Indian residents and Expatriates. In regards to forms 15 CA and CB, ADCA assists and advises its NRI clients on varied requirements, which include:
- Information that the clients must submit in their A2 forms.
- Foreign exchange regulations like limits on the remittance of money from NRO accounts.
- Prepare and properly file Form 15 CA and CB on the Income Tax Department web portal.
- Helping clients in tax calculation if any form of tax is payable on the remitted amount.
- Help with tax payments if anything is due on the remittance amount.
Besides providing expert advisory services in relation to form 15 CA and CB, ADCA also offers other ancillary and incidental support services.
Is 15CA required for transfer from NRO to NRE?
Yes, it is mandatory for a remitter transferring funds from an NRO account to an NRE account to submit Form 15 CA along with form 15 CB to the bank branch.
Is it crucial to file form 15 CB?
It is not always necessary to submit form 15 CB, and it is an event-based form that the remitter needs to submit when remitted amount to the NRI is more than Rs. 5 lakh in a financial year. In that case, an accountant certificate is needed in form 15 CB under Section 288 of the IT Act of 1961.
What method is used to verify form 15 CB?
The DSC method or Digital Signature Certificate is used to verify form 15 CB online, and the Chartered accountant's DSC is entered into the e-filing site. No specific deadline exists to submit form 15 CB; however, it is necessary to submit the form before the amount remittance.
Globalisation is all the rage in this modern world. Hundreds and thousands of people migrate to different countries for better work and living opportunities. India ranks right on top in the list of countries with the highest number of nationals living and working in foreign nations. As per reports, 1.3 crore People of Indian Origin and Non-Resident Indians were estimated to be residing abroad in 2021. Indians living abroad cannot transact through normal savings accounts legally.
Special accounts, such as NRO and NRE, are in place for individuals and transactions. These accounts are the safest options for NRIs looking to save their earnings in India. If your total earnings include income made in India and you want to manage it within the country, you must choose an NRO account. However, if you want to transfer foreign earnings to India without tax liabilities, you must opt for an NRE account. Both these accounts are variations of savings accounts, but it is important to know the difference between NRE and NRO account.
The main points of difference between NRE and NRO accounts include:
A major NRE and NRO account difference is the taxation policy. While an NRE account is free of income tax, wealth tax and tax gifts in India, an NRO account holder must pay wealth and gift tax. Nevertheless, NRO account holders can enjoy reduced tax benefits under the Taxation Avoidance Agreement. Note that the interest accumulated from credit balances and an NRO account falls in the respective tax bracket.
Another major NRE NRO account difference is the transferability of funds. NRE account holders can freely transfer the money in their accounts, both principal amount and interest earned. However, that’s not the case with funds in an NRO account, with a limitation of up to $ 1 million on fund transfers in a financial year, along with applicable taxes levied post payment.
There is a huge NRO vs NRE difference in the holding structure of both accounts. NRIs can open joint NRO accounts with one or more Indian citizens or NRIs. But, there can be joint NRE accounts only with another NRI.
Yet another vital point of difference between NRE and NRO is in the currency used for withdrawals and deposits. NRE account holders can deposit money in any foreign currency and withdraw the same in the Indian rupee without hassle. However, individuals need to deposit and withdraw money in Indian currency or rupee denomination with an NRO account.
NRE and NRO difference also lies in the varied rules of money deposit for both accounts. Any income generated in India cannot be deposited in an NRE account, whereas an NRO account does not allow overseas income deposits.
The suitability of both accounts is considered another key NRE NRO difference. People looking to hold and maintain their foreign earnings in Indian currency should go for an NRE account. Such accounts are also suitable for individuals willing to keep their savings in liquid form.
But with an NRO account, you can save only the earnings made in India and Indian currency. This can be income from the sale of property, rent or dividend.
The difference between NRE and NRO account RBI also lies in how account holders can transfer funds. NRE account holders can transfer funds to other NRE accounts and even NRO accounts. However, NRO account holders can transfer funds only to an NRO account and nothing else.
NRE and NRO account holders should also know about the effect of exchange rate fluctuations on their accounts. While NRO accounts do not risk changing currency value against foreign currency, NRE accounts can risk conversion loss because of fluctuations in exchange rates.
A non-resident Rupee or NRE account is an Indian currency account that offers complete security. You can hold this account as current, savings, fixed or recurring deposit. The foreign currency you deposit into your NRE account gets converted into Indian currency. As an NRE account holder, you can transfer your money, both the principal amount and the interest, to any foreign account without restrictions and complications. But make sure the amount you deposit in this account is earned in some foreign country, not India.
The international debit card will help you deposit and withdraw money into your NRE account 24/7. At the same time, mutual fund investments will become instant and effortless if you link your NRE account to your investment account. You can use your NRE account for personal banking, investing in India and operating a business.
A non-Resident Ordinary Rupee or NRO account is a current or savings account held by non-resident Indians in India to manage the income they make in India. As an NRO account holder, you can deposit and manage your accumulated money in Indian currency without complications. Your NRO account gives you the flexibility to receive money either in Foreign or Indian currency. Note that the interest you earn on the principal amount held in your NRO account is subject to TDS or Tax Deducted at Source.
NREvs.NRO account
comparison table goes like this:
|
Basis of NRE account vs. NRO account |
NRE Account |
NRO Account |
|
Acronym |
Non Resident External Account |
Non Resident Ordinary Account |
|
Meaning |
NRI account to transfer overseas earnings in India. |
NRI account to manage earnings made in India. |
|
Taxability |
Non-taxable interest |
Taxable interest |
|
Repatriability |
Can repatriate |
Interest amount repatriable but limitations on principal amount repatriation. |
|
Joint Account |
Two NRIs can open |
Only an NRI along with another NRI or Indian Citizen can open |
|
Deposits and Withdrawals |
Foreign currency deposits and Indian currency withdrawals |
Deposits in Indian and foreign currency but withdrawals only in Indian currency |
|
Exchange Rate Risks |
Risks involved |
No risks |
ADCA or Anil D’Souza & Associates is a chartered accountants agency in Bangalore managed and operated by an able group of experienced and competent company secretaries, chartered accountants, tax consultants and corporate financial advisors. With over 15 years of experience in tax, advisory, audit, outsourcing and legal services, the company has successfully added value to its clients. It is one of the top 10 CA agencies in Bangalore that you can contact if you want any help regarding NRE and NRO accounts. It will be a good idea to get the services of ADCA as the company:
- Has a young team of experienced professionals who understand present-day requirements.
- Separate departments for varied services to deliver quality right on time.
- Different teams specialized in varied service areas offering required expertise.
- Client satisfaction and client value addition are top priorities at ADCA.
- Affordable Solutions
- Use of advanced technology to deliver top-quality service
- Different statutory compliance solutions under a single roof.
What is the significance of an NRE account?
The main significance of an NRE account is it converts foreign currency into Indian rupees. If you deposit your foreign earnings in your NRE account, they will convert into INR instantly.
What is the most crucial difference between an NRE and NRO account?
One of the most important differences between an NRE and an NRO account is the currency used for withdrawal. NRO account holders cannot transfer funds without limitations. Dissimilar to an NRE account, the interest accrued on NRO account deposits is a 30% taxable rate deductible at the source. Indians living in a foreign country can transfer funds up to $1 million in a financial year once they pay all applicable taxes.
Which is the better account: NRO or NRE?
Going for an NRE account is always better, especially for individuals looking to hold and maintain their foreign earnings in Indian rupees. These accounts also work for people looking to keep their savings in liquid form, and the NRO account is best suited for people who want to save their Indian earnings in Indian rupees.
Should people send money to NRO or NRE?
The NRE account is completely repatriable and free of tax, while the NRO account requires the holder to pay taxes on the repatriated amount. This critical difference makes an NRO account the better solution for those looking to save their money in India.
The culture of running small businesses and startups is reigning supreme in India. As per NASSCOM reports, India is in the 3rd position on the international front with more than 4200 startups. Health tech, hyper-local eCommerce, analytics and IoT of the Internet of Things are some of the most preferred choices of young entrepreneurs with startup ideas. Large-scale growth of startups in a country can lead to the betterment of society on the whole and economic development as well. The Indian government is not late to realise this fact and has thus announced the Startup India campaign. The government has also proposed several tax-related and regulatory benefits in this campaign to generate the interest of young individuals.
Amongst these diversified government proposals that encourage startups in India, GST or Goods and Services Tax is the most critical one as far as indirect tax perspectives are concerned. The Indian government has implemented GST with the sole motive of changing the complex tax structure in India. The GST concept goes by the slogan “One Nation One Tax” to make the complaint process more seamless, intuitive and transparent. Here, we will go through GST benefits for startups and small businesses in India.
GST benefits for startups are innumerable. Let us go through them:
Among the most important benefits of GST to business entrepreneurs in India is the ease of operating several businesses with a single registration. In the pre-GST era, businesses had to register time and again, which was quite frustrating. GST implementation has centralised and standardised the process of business registration in India. Under the GST regime, it is no longer necessary for businesses to acquire different VAT registrations. One solitary GST registration would be fine for them to operate across India.
Speaking of the benefits of GST registration, companies with a turnover of less than Rs. 40 lakhs per year do not need to opt for GST registration. This will help the startups grow manifold as they do not need to file any GST returns.
One of the most crucial benefits of GST regime is making interstate movement more affordable for businesses by replacing state-border taxes at the check posts. This can save businesses's time in goods transportation and resolve several problems at the check borders. As per reports, GST implementation in India has reduced business logistics costs by approximately 20%. Thus, GST is a boon for all those startups that do not have huge capital to use in transportation initially.
The benefits of GST in India are not limited to just cost reduction and single registration for multiple businesses. GST implementation has also subsumed several taxes making it easier for startups to calculate their taxable income with less paperwork. Small enterprises and startups can benefit from this new indirect GST tax regime that accompanies fewer compliance expenses. Under GST, the following taxes have been subsumed and made into a single tax:
- Service charge
- Central taxes
- CVD or additional traditions obligation
- Central excise duty
- Central additional charges
- Special additional duty of customs or SAD
- CST or central sales tax
- VAT or value added tax
- Purchase tax
- Entry and Octroi tax
- Luxury tax
- Entertainment taxes
- Taxes on betting, wagering and lottery
- State additional taxes
The One India, One Market model, is a major opportunity for startups and small businesses to maintain huge logistics and distribution networks because of minimal state-level tax requirements. One common market model across India is the perfect fit for startups and small businesses looking for a larger national footprint without major investment.
Earlier, businesses like restaurants and computer dealers selling merchandise and offering benefits as a pack had to comply with Service Tax and VAT guidelines. For such businesses, it was critical to identify taxes on supply because different tax rates applied to other products. However, the difference between Goods and Services is wholly refined with GST execution, making compliance procedures under the GST framework simpler. Even invoicing has become easier for startups because of a single tax rate on all goods and services.
Furthermore, the centralised digital system has made it easier for businesses to file returns without the need to address varied tax entities for the registration procedure. It has also waived off the complex w.r.t to manual workflow, making GST return filing super easy for startups.
In the pre-GST era, industries like textiles and construction did not operate under any tax regulation. However, GST ensures all-inclusive tax implementation across all sectors of the industry. Revamped payment and compliance structures under GST boost the trading potentials of such firms, making them accountable for the misconduct of tax liabilities.
A startup is a company or venture focused on a single service or product the founder looks to introduce in the market. Startups typically do not feature a completely developed business structure and even lack sufficient capital needed to move to the next business stage. Most startups are funded by their founders initially and then operate through funding from friends, family and different venture capitalists. Startups generally use seed capital for research and development plans that help them determine the demand for their goods or services in the market.
These companies are yet to be incorporated or registered and are necessarily formed to bring innovation in specific areas or for the sole profit of the owners. Startups have several business registration options, which include:
- LLP Registration
- Private Limited Company Registration
- Partnership Firm Registration
- Sole Proprietorship Registration
- One Person Company Registration
Individuals looking to form a startup need to apply for Startup India Certificate, which offers several benefits to such companies.
GST, or Goods and Service Tax, is based on an indirect taxation system. It is a destination-based, multi-stage tax structure that supplanted many indirect taxes across India, like excise duty, service tax, VAT, etc. The introduction of GST is a shift from the old tax structure to a centralised system that offers several benefits to taxpayers, especially startups and small businesses. GST startup is levied on all sources that create value through products and services, and GST for startups applies to all points of sale. Note that all inter-state sales are also chargeable to Central and State GST.
GST registration for startups is applicable in varied cases, which include:
- GST for startups in India is mandatory for all companies with pre-GST tax registrations.
- GST on startups applies to companies with an annual turnover of Rs. 40 lakhs and more and Rs. 20 lakhs in the North-Eastern states of Uttarakhand, Jammu & Kashmir and Himachal Pradesh.
- Startup GST registration is required for startups paying taxes under RCM or Reverse Change Mechanism.
- GST registration is important for startups supplying services or products on eCommerce portals or to eCommerce aggregators.
- Casual taxable individuals.
- TCS/TDS deductors
- Non-resident taxable individuals looking to start a business in India should go for GST registration.
- Data recovery or access service providers
- GST registration also applies to startups that sell goods and services at exhibitions and events that do not require any fixed business location. Such dealers should pay GST based on a 90-day sales estimate.
- GST registration is also necessary for input service providers and supplier agents looking to carry forward the advantage of ITC or input tax credit.
GST is instrumental in the evolution of startups in India, and It is also a boon for the small and medium-scale industries. Nevertheless, as with every new system, GST also carries some barriers. GST impact on startups is as follows:
- According to GST laws, businesses with a yearly turnover of Rs. 20 lakhs and above must go for GST registration. This excludes several startups with a turnover of less than Rs. 20 lakhs. This is a major impact of GST on startups, as the new taxation limits can be a respite to the startups.
- GST execution eliminates the requirement for startups to visit the tax offices to file returns and registrations. The simple registration procedure helps startups save a lot of time and resources.
- With GST, new businesses can enjoy the advantages of eliminating limitations on inter-state goods movement. This will be majorly valuable for startups supplying goods across India.
- Standard tax process for the eCommerce industries by way of GST registration is leading to more eCommerce platforms available for buyers.
- Well, manufacturing startups might face the negative impact of GST. With GST in place, manufacturing businesses with a turnover of Rs. 20 lakhs and more need to pay excises. This ultimately has the manufacturing companies paying more as taxes than the earlier turnover limit, which was 1.50 crores for the manufacturing businesses.
ADCA or Anil D’Souza & Associates is an experienced team of professional and competent GST consultants in Bangalore. If you are a startup in India, initially, it can be a bit tricky to comply with GST laws because of the lack of domain expertise on payrolls. In that case, you must opt for the services of ADCA for efficient GST return filing. So, why should you choose ADCA?
- ADCA is one of the most prestigious GST service providers in Bangalore, with Indian and overseas businesses as its major clients.
- You can always depend on the professional and efficient GST services of ADCA.
- ADCA is a GST expert with a separate department for this purpose.
- Hiring the GST experts at ADCA saves resources and time.
- Full-proof compliance with GST rules and greater efficiency
- Frees up the attention and time of essential company executives
- Cost-Effective services
The experienced and skilled workforce at ADCA prepares and files GST returns regularly. The professionals know their job inside out, and startups can always trust their professionalism and efficiency.
Why register a startup for GST?
Registering a startup for GST offers several benefits, including that your company will be officially recognised as a legitimate business entity. GST registration status will also keep your firm legally updated.
What is the main purpose of GSTIN Number?
GSTIN or Goods and Service Tax Identification Number consists of 15 letters with numbers. The government produces this document after the successful GST registration of a company.
What is the process of GST registration?
GST registration procedures are easy and speedy with the availability of the online portal for this purpose. You need to produce all required documents online and instantly get a GST registration number for your startup.
What are the documents required for GST registration?
The documents needed for GST registration include:
- PAN Card of the person or business.
- Identity proof
- Bank account proof
- Address proof
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