Company formation with filing of single form

MCA has introduced Integrated form INC-29 for filing of company formation related documents.Now No separate form to be file for Name approval, DIN, PAN & TAN. However all the information/documents to be filed along with Integrated form INC-29. Liability of Professional has been increased on certification of INC-29. Professional has to certify all the details, therefore documentation & due diligence of the subscriber as well as place of business will be required.

As per Integrated form INC-29, following points to be kept in mind before certifying

"I further certify that;
(i) the draft memorandum and articles of association have been drawn up in conformity with the provisions of
sections 4 and 5 and rules made thereunder; and
(ii) all the requirements of Companies Act, 2013 and the rules made thereunder relating to registration of the
company under section 7 of the Act and matters precedent or incidental thereto have been complied with.
The said records have been properly prepared, signed by the required officers of the Company and maintained
as per the relevant provisions of the Companies Act, 2013 and were found to be in order;
(iii) I have opened all the attachments to this form and have verified these to be as per requirements,complete
and legible;
(iv) I further declare that I have personally visited the proposed registered office given in the form at the address
mentioned herein above and verified that the said proposed registered office of the company is functioning
for the business purposes of the company (wherever applicable in respect of the proposed registered office
has been given).
(v) It is understood that I shall be liable for action under Section 448 of the Companies Act, 2013 for wrong
certification, if any found at any stage."

CA S S KHUDANIA: Grab opportunity of CLSS 2014

CA S S KHUDANIA: Grab opportunity of CLSS 2014: CLSS 2014 has been announced by ROC for filing of pending returns.

Grab opportunity of CLSS 2014

CLSS 2014 has been announced by ROC for filing of pending returns.

PPF Amendment

Limit of yearly investment in PPF has been increased to Rs. 1,00,000/- and interest rate increased to 8.6% p.a w.e.f 01.12.2011.

CBDT Notification dated 27.04.2011 on refund of excess TDS deposit

CBDT has issued notification on refund of excess TDS paid, please refer the link.

COMPANY NAME AVAILABILITY RULES AND DIN RULE SIMPLIFIED

THE MCA has simplified the DIN Rule, Now DIN can be approved at the same time of filing of all documents along with attestation by professionals.
Further Company Name Draft Rules has been prepared which is available on MCA website.
Now practicing professionals have to be more cautious while approving any forms certifing before filing to Registrar.

TAX FORMS

New tax Forms has been Notified by the CBDT for the AY 2011-2012.

INCOME TAX PROVISION WITH RESPECT TO LLP

LLP INCORPORATED IN INDIA WILL BE ASSESSED AS IF IT IS A PARTNERSHIP FIRM. SECTION
10(23) OF INCOME TAX ACT STATES THAT "FIRM" SHALL INCLUDE LLP, "PARTNER" SHALL
INCLUDE PARTNER OF LLP.

HOWEVER LLPs INCORPORATED OUTSIDE INDIA (FOREIGN LLPs) SHALL BE TAXED AS "COMPANY".

Direct Tax Code

Direct Tax Code has been introduced in the Parliamant.
Some of the Highlights are as follows:

1.Common threshold limit of Rs. 2,00,000. For resident senior citizens,
threshold increased from Rs. 2,40,000 to Rs. 2,50,000.

2.Deduction for interest on housing loan/loan taken for repair or renovation of house property upto limit of Rs. 1,50,000 in respect of one house pro-perty not let out. No deduction for re-payment of principal under the Code.

3.Limit for tax audits for professionals increased from Rs. 15 lakhs to Rs. 25 lakhs. Limit for tax audit for business increased from Rs. 60 lakhs to Rs. 1 crore.

4.MAT rate - Increased from 15% of book profits to 20%. MAT Credit carry forward period increased from 10 years to 15 years.

5.Wealth tax - threshold increased from Rs. 30,00,000 to Rs. 1 crore. Tax rate will be 1% of net wealth in excess of Rs. 1 crore.

6.DDT on dividend of domestic company - 15%.

7.DDT on income distributed by mutual fund/life insurance to unitholder/policy holder - 5%

8.TDS of 10% on payments in respect of life policies which are not exempt from tax from code.

Income Tax Return

File the Income Tax Return for the Financial Year ending 31st March 2010
by 31st July 2010.
Applicable to Individual and other assessee whose accounts are not
requried to be audited under the Income Tax Act 1961 or any other Act.

CBDT Circular on 26AS TDS Credit

CBDT come forward and issued circular on bindings of 26AS verysoon. Now imposes duty on the deductee to approach to deductor in case of any deficiency on the part of deductor, Like non filing of TDS return, mentioning wrong PAN or wrong credit entries.

Release of Redrafted Direct Tax Code

The FM has released the redrafted Direct Tax Code.

TDS Notification dated 31.05.2010

TDS Notification dated 31.05.2010 whereby following changes has been made:

1. Last quarter TDS return date has been changed from 15th June to 15th May.
2. Due date of deposit of TDS: in respect of 31st March from 31st May to
30th April and in respect of 1st to 30th March from 7th April to 30th
April.

ICAI President Message June 2010

ICAI President Message June 2010

Late Date for Filing of Income Tax Return for A.Y 2008-09

File your Income Tax Return for the A.Y.2008-09 latest by 31st March 2010.
Don't wait for the last date.

Budget 2010

1.
Turnover over which accounts need to be audited has been enhanced to Rs. 60 Lakhs for Business and Rs. 15 Lakhs for the profession. Similarly the turnover limit for the presumptive taxation has also been increased to Rs. 60 Lakhs.

2.
Surcharge on domestic companies has been reduced from 10% to 7.5%. The lower rate of surcharge will be applicable in case of MAT u/s 115JB.

3.
Rate of Minimum Alternative tax has been increased from current rate of 15% to 18% of the book profits.

4.
Direct Tax Code and Goods & Service Tax is likely to implement w.e.f 1st April 2011.

5.

IFRS in also going to implement w.e.f 1st April 2011.

Therefore this is a transition period of economy as well as professionals.

Difference between slowdown and recession

For Example
"If in the last year economy GDP was growing @3% and whereas in the current year economy GDP is growing @2% this is called slowdown."

on the otherhand
"If in the last year economy GDP was growing @3% and whereas in the current year economy GDP is declining @2% this is called recession."

Service Tax Notification

This is in relation to recent notification (Notification No. 01/2010 – Service Tax) issued under the Service tax Rules, 1994 in respect of deposit of service tax and filing of returns. The notification provides the following:

An assessee is required to deposit Service tax electronically (through internet banking) if the amount of service tax deposited (through cash and credit) in the preceding financial year is Rs.10 lacs or more (earlier this limit was Rs 50 lacs for the preceding financial year or the current year);
Service tax return is to be filed electronically by an assessee, if the amount of service tax deposited (through cash and credit) in the preceding financial year is Rs.10 lacs or more.
The notification is effective from 1 April 2010.

Bad debts need not be proven to be irrecoverable u/s 36(1)(vii). It is sufficient if they are written off

TRF Limited vs. CIT (Supreme Court)
Bad debts need not be proven to be irrecoverable u/s 36(1)(vii). It is sufficient if they are written off



The Supreme Court had to consider whether after the amendment to s. 36 (1) (vii) w.e.f. 1.4.1989, an assessee had to establish, as a matter of fact, that the debt advanced by the assessee had, in fact, become irrecoverable or whether writing off the debt as irrecoverable in the accounts was sufficient. HELD deciding in favour of the assessee:

Budget 2010

It is expected that this year the tax burden either remain as neutral or my increase.
Further Govt may decline the susidies on some sectors to reduce their dependent on the government.
It is further expected that some of the provisions or developments related to the Direct Tax Code is likely to announce in the upcomming budget.