10 Initiatives – Digital Collaboration – W.E.F 1st Jan’21

1. Cheque payments:-

In order to keep track of bank fraud, the Reserve Bank of India has agreed to implement a “positive pay system” for cheque payments. In this system, there may be a requirement of re-confirmation of main information for payments in surplus of Rs 50,000. This rule of a positive pay system will come into existence on 1 January 2021. A positive pay system service can be used by the account holders of their choice. Banks may consider making it mandatory to verify with sums of Rs 5 lakh and higher.

2. Contactless card transactions limit:-

From 1 January, the RBI announced that it would raise the limits from Rs 2,000 to Rs 5,000 for contactless card transactions and e-mandates for regularly occurring transactions through cards and UPI transactions. RBI’s change is to improve digital payment. This will maintain a safe and secure manner, especially during the Covid-19 pandemic.

online transaction
3. Car prices:-

Maruti Suzuki India and Mahindra and Mahindra will hike vehicle prices from 1 January to deal with the effects of rising input costs.

4 . WhatsApp to stop Working on Select Phones:- 

Popular Messaging Service WhatsApp will pull support from those platforms from January 1. WhatsApp page has mentioned the operating systems that it supports and suggests using the following devices: Android running OS 4.0.3 and newer; iPhone running iOS 9 and newer; and phones running KaiOS 2.5.1 newer, including JioPhone and JioPhone 2.

5. Landline to Mobile phone calls:-

You will have to add the prefix ‘0’ to make calls from landlines to mobile phones in the country. The Telecom Department ordered telcos to operate on the necessary infrastructure by 1 January in order to introduce the new system effectively. This move would build enough numbering space for telecom services.

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6. FASTag for all four-wheelers:-  

The Union Ministry of Road and Highway Transport made FASTag mandatory for all four-wheel vehicles as of 1 January 2021, through a notification. FASTag will be mandatory for four-wheelers of class M and N sold before 1 December 2017. The Central Motor Vehicles Rules, 1989, were also amended to the same. The notice to this effect was released on 6 November 2020.

7. UPI Payment:-

From 1 January 2021, users will have to pay extra fees when making transactions with Amazon Pay, Google Pay, and Phone Pay. National Payments Corporation of India (NPCI) will impose an additional charge on UPI Payment Service (UPI Payment) with a third-party app starting on 1 January. NPCI applied a 30 percent limit on third-party applications starting in from new year. Paytm is also going to have to pay this charge.

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8. Google Pay web app:-

Google Pay is all set to destroy a user to user payment service on its web app and introduce an automatic money transfer fee from January. Till now, customers have been able to handle payments and transfer money through the smartphone app or pay.google.com. According to Google’s latest notification, the web app site will no longer function as of January 2021.

9. LPG prices:-

On the first day of each month, oil marketing companies revise LPG rates on the basis of crude prices in global markets.

10. GST- Registered small business:-

Businesses with a turnover of up to Rs 5 crores would require to file only 4 GST sales returns, or GSTR-3B, instead of 12 (now) from January, as per PTI. This move would have an effect on 94 lakh taxpayers or around 92% of the overall GST tax base. From now onwards small taxpayers would be filing only eight returns (four GSTR-3B and four GSTR-1 returns) yearly.

Wef 1.1.21, avail only ITC in GSTR-2B plus 5 percent instead of 10 percent earlier. Amendment of Rule 36(4) vide Notice 94/2020CT of 22.12.20.

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How Does Payroll Outsourcing Work?

Payroll can be prepared by workers within a business or can be outsourced to a payroll outsourcing service provider. Many organizations have found that contracting payroll to a consulting service potentially saves the business time and resources.

Employee Costs For In-House Payroll

When an organization decides to prepare its payroll in-house there are workforce costs for the preparer, such as payroll, social security and Medicare premiums, employees’ compensation insurance, future medical or retirement benefits, and training. If a company hires an employee to control the company’s payroll, the employee must be qualified in accounting to be able to calculate payroll and deductions, compile payroll reports, and make timely tax deposits.

payroll

Avoid High Penalties

The company shall be liable for any mistakes committed by the employee. These mistakes will be expensive if taxes are not property filed or deposited, even if the figures are inaccurate. Reputable payroll providers promise their job and can pay fines, provided that their mistake has happened. It is completely possible for a business to potentially spend more in fines per year than would have been the expense of outsourcing payrolls. If they had used a payroll agency, either the mistakes would have been stopped or the payroll provider would have been eligible for fines.

Duties of Payroll

Payroll responsibilities include the writing of checks on workers, the correct measurement of pay and payroll taxes, the prompt supervision of tax deposits, and the maintenance of accurate reports. If the person responsible for processing the paychecks is sick, the paychecks will have to be released. Payroll providers guarantee that payrolls are released on schedule for each pay period, with limited work on the part of in-house staff.

payroll

Cost of Outsourcing

The cost of recruiting a payroll service is generally dependent on the number of workers. As a corporation signs up for a service, the company’s bank accounts and payroll services are created, enabling payroll services to issue paychecks and tax deposits. Few businesses prefer to have the paychecks sent directly to the company, where the checks can be signed and distributed to the workers. Some businesses allow the payroll provider to send or deposit the checks directly to workers.

Getting Started

When setting up an account with payroll outsourcing, business tax records and W-4 employee forms are issued to the service, along with the pay rate for each employee. During each pay period, the company contacts the payroll service and tells them about how many hours each employee has performed during the previous payroll period. The payroll service then measures the pay, all payroll deductions, and also initiates a federal tax deposit. Payroll outsourcing systems will also file and issue W-2s and 1099s, along with monthly, quarterly and annual payroll and tax reports.

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3 months’ extension for holding AGM for Companies

Three months’ general extension for holding AGM has been granted to all the companies because of Covid 19.

No application is required to be made!

Each company, other than the One Person Company(OPC), shall hold, in addition to any other meeting, a General Meeting as its Annual General Meeting (AGM) each year and specify the meeting as such in the notices calling it, and not more than fifteen months shall elapse between two AGM.

First AGM shall be held within nine months from the date of the close of the first financial year of the company and, in any other case, within six months from the date of the close of the financial year.

annaul general meeting

Registrar may, for any special reason, extend the period during which any annual general meeting, other than the first annual general meeting, is held by a period not exceeding 3 months.

Different representations have been received from companies, industry bodies and professional institutes, which point out that several companies find it difficult to hold their AGM for the financial year ended 31.03.2020 because of the difficulties faced by the Covid-19 Pandemic.

Due to such unprecedented special reasons, the time within which the AGM for the financial year ended on 31.03.2020 is required to be held is ought to be extended.

company meeting

Extension of Annual General Meeting, other than the first AGM, for the financial year ended on 31.03.2020 for companies (.e. Registrar of Companies, NCT of Delhi & Haryana). which are unable to hold their AGM within the specified limits can also be availed via this notification..

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Explanation: It is hereby clarified that the extension granted under this Order shall also cover the

(i) Pending applications filed in Form No. GNL 1 for the extension of AGM for the financial year ended on 31.03.2020, which are yet to be approved;

(ii) Applications filed in Form No. GNL-1 for the extension of AGM for the financial year ended on 31.03.2020, which were rejected,

where approval for the extension of AGM up to 3 months from the due date of the AGM shall be deemed to have been granted by the undersigned without any further action on the part of the company.

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