Comments Off on GST Updates – Gst Portal Now More Robust, upto 300k Users!
GST Portal Doubles Network Capacity to Handle 3L Users from August.
Chandigarh tops GST charts with 83% collection.
An EXCEL based offline tool has been provided on GST portal for composition taxpayers to prepare their GSTR-4 Annual Return.
Functionality to file Revocation Application under Removal of Difficulty
In a context of removal of difficulty , the restriction on filing revocation application, in case it was rejected, has been removed. Aggrieved taxpayers can file an application for the revocation of the cancellation of registration once again.
Further, those taxpayer who have filed Appeal against rejection of the Revocation Application and the decision is still pending, they may also file the Revocation of Cancellation.
Taxpayer is required to login and navigate to Services> Registration> Application for Revocation to file the application for revocation.
Comments Off on Financial Liability & Asset (FLA) Annual Return
As more and more Indian entities are bringing in foreign investors in the lure of cheaper, easily available, and sufficient funds Foreign Direct Investment (FDI) has become a routine affair in the Indian economy. Similarly, Overseas Direct Investment (ODI) which means Indian Entities investing outside India have also increased in number manifold (though still small in number as compared to FDI).
Foreign Liabilities and Assets (FLA) Return is an Annual Return that must be filed by entities that have received FDI and/or made overseas investments in any of the previous years, including the current year, i.e., entities with Foreign Assets or Liabilities on their Balance Sheets.
Annual return on Foreign Liabilities and Assets (FLA) is required to be submitted by all the companies which have received FDI and/or made overseas investment in any of the previous year(s), including the current year (July 15 every year).
To monitor these transactions RBI have come up a few compliances, one such being FLA.
FLA is an annual return prescribed under FEMA regulations and is applicable to all companies/Firms who have received FDI during the year or who have made ODI during the year and these transactions are outstanding at the end of the year. This means that the FDI/ODI has to be still in the books of the entity and not squared off during the year.
The due date is 15th July (Extended to 31st July 2020 this year). In case the entity’s books are still unaudited then provisional figures have to be uploaded by the due date. In case there are any changes after the filing of provisional figures then the company shall file a revised FLA return based on audited accounts by the end – September.
The return has to be mailed to the prescribed email of the RBI by the CS/CFO/Directors of the company from the registered email id.
Penalty of thrice the amount of sum of FDI/ODI or Rs 2 lakhs with additional Rs 5000 per day if delay is continuing.
Comments Off on Post-Incorporation Compliances of Company
Following are the significant actions which need to be taken post company incorporation:
1. Filing of declaration of Commencement of Business by the company in form INC-20A. Within 180 days, the company shall obtain a certificate of commencement of business. There is a requirement to file a disclosure made by the directors of the company stating that every subscriber has paid the amount due on the shares.
2. Share certificate The share certificate shall be issued to a shareholder within 60 days from the date of incorporation
3. First Board meeting within 30 days from the date of Incorporation. As per Section 173(1), of The Companies Act 2013, the company shall hold a meeting of the Board of Directors in less than 30 days from the date of its incorporation. Directors are permitted to attend the meeting either in person or through video conferencing.
4. Appointment of First Auditor According to Section 139(1), the first auditor shall be appointed by the Board of Directors (BOD), within 30 days from the time the company is registered. Failing which, the members shall appoint the auditor within 90 days at an extraordinary general meeting. The term of the first auditor shall be until the conclusion of the first annual general meeting.
5. Disclosure of the director’s interest and declaration regarding disqualification in Form MBP-1 & DIR-8 At the first board meeting, every director shall disclose his interest in any company/firm/body corporate/association of individuals as outlined in section 184(1) of the Companies Act 2013. Any changes in the disclosures shall be intimated to the board in its first meeting held during each financial year. An independent director, if any, must give a declaration that he meets the criteria of independence during the first board meeting as a director.
6. Statutory registers The company shall be required to maintain statutory registers at the registered office of the company. The same shall be maintained in the prescribed form failing, which the company will be subject to penalties.
7. it’s all in the name Every company shall be required to affix its name at all places from where it carries on its business operations. It shall be displayed in the language which is generally used in the locality. Additionally, letterheads with appropriate information and printed negotiable instruments.
8. Payment of stamp duty on issuance of share certificate As per the requirement of the provision of the Indian Stamp Act 1899 every instrument must bear a stamp duty with proper amount and it must be paid to the concerned department within 30 days from the date of issue of share certificates (Revenue Department).
YEARLY COMPLIANCES 1) Minimum 4 board meeting with an interval of maximum 120 days between 2 consecutive board meeting, 2) Statutory audit of accounts, 3) Filing of annual return (form mgt-7), 4) Filing of financial statements (form aoc-4), 5) Holding an annual general meeting, 6) Preparation of directors’ report. 7) DIR-3 KYC
From 1st July 2015 onwards, every meeting of Board of Directors and Shareholders shall be conducted in consolidation with provisions of Secretarial Standards and Companies Act, 2013.
Event-Based Compliances
1) E form DPT-3 – Loan from Directors/Bank/Companies/Shareholders etc. 2) E Form MSME-1 – Pending payments to MSME 3) BEN – 2 – Disclosure of significant beneficial owner
