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December 14, 2018

What is Committee of Creditors under Insolvency and Bankruptcy Code

When any person finds himself or herself unable to repay the Debt then they owe to the Financial or Operational Creditors, and then that person who is owing money is deemed to be insolvent.

However from being insolvent to insolvency Resolution is not that easy, there are multiple factors that play a major role and one of the major role is played by the Committee of Creditors.

Section 9 and Company of Creditors

Once there is no positive solution for Section 8 Demand Notice, the Operational financial creditors can file a petition to NCLT to start the process of Insolvency Procedure.

The Committee of Creditors will the decide whether to keep or pursue with that Resolution Professional or not.

The Final approval of the Insolvency Resolution plan is subjective voting percentage from the Committee of Creditors. In Insolvency and Bankruptcy Code the collective decision of the 75% of the committee was taken into account whereas it has now reduced to 66%.

Committee of Creditors: The Definition

Committee of Creditors is a committee consists of a representative of Financial/ Operational creditors to whom Corporate debtors owes a Debt to. The purpose of Committee of Creditors is as follows:-

Making decisions in the routine tasks associated with corporate Insolvency Resolution Process.
Approving or rejecting the Insolvency Resolution Plan.
Deciding upon the liquidation of the Corporate Debtor.

The Creditor of the committee is mostly comprised of Financial creditors rather than operational Creditors.

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December 12, 2018

NOTICE UNDER SECTION 142(1) OF INCOME TAX ACT 1961

Notice under section 142(1) of the Income Tax act is issued by a tax authority generally after ITR is filed and before Income tax assessment in the form of Inquiry.

Generally during the course of Assessment the Assessing officer sends the notice for demanding documents , books ,other documents or details for verifications and the Assessee is bound to produce details before assessing authority.

In case of Non- filing of Income tax return also Notice under section 142(1) is received and thereunder time frame is given to file ITR .

PENALTY

In case of non compliance the AO has to power to levy penalty of Rs. 10000/- for each failure under section 271(b)

PROSECUTION

Prosecution under section 276D for non compliance of section 142(10 is imprisonment upto 1 year with or without fine

NOTICE UNDER SECTION 143(2)

Notice under section 143(2) is issued to Assessee when case is taken under scrutiny by Income tax authority.

When notice under section 143(2) is issued and also Notice Under section 142(1) is issued to Assessee , informations as required time to time by assessing authority is submitted to Assessing authority who based on information submitted assess the case and issues final order for assessment.

December 12, 2018

Procedure For Registration Under Goods And Service Tax (GST) In India

KINDS OF REGISTRATION

THERE ARE THREE KIND OF GST REGISTRATION

1. Mandatory registration
2. VOLUNTARY REGISRATION
3. REGISTRATION BY DEPARTMENT

Before getting registered under GST which came into force in India in July 2017,
we should know what is GST. GST is known as Goods and Service Tax which covers
both supply of Goods and services.
1. Any supplier either Individual/ firm/ company /any organization doing
business or services in India and whose turnover exceeds the threshold
limit i.e 20 lacs at present are required to get mandatorily registered under
GST.
2. It authorizes the person for collection of GST from the customers.
3. It also allows claim of Input tax credit or GST paid on purchases of goods
and /or services and utilizing the same for payment of taxes due on supply
of goods and or services.

REQUIREMENT OF DOCUMENTS FOR REGISTRATION
1.Pan card/Aadhar card
2.Electricity bill/ Telephone bill/Rent Agreement/ ownership proof/No objection
Certificate.
3.MOA/AOA OR Partnership Deed
4. Bank statement/ cancelled cheque
5. Photograph in Individual and partnership
6.Email Address

7.Mobile No

PROCESS OF REGISTRATION OF GST
1. First go to Govt site. GST.Gov.in
2. In Part a of form GST REG -01 PAN No. Mobile No. email Id . should be
filled.
3. Temporary Reference Numer shall be received on mobile and Email after
otp verification.
4. After that part B of GST RG 01 shall have to filled up and duly signed by
DSC/EVC and documents should be uploaded.
5. An acknowledgement shall be sent in GST RG 02 after successful submission
of above said firm.
6. If any objection is intimated in GST RG 03 it will have to be cleared by
visiting related GST office or through GST RG 04.
7. If application accepted you shall get registration Certificate in GST RG 06
otherwise Rejection certificate in GSR RG 05

December 8, 2018

What Is Auditing & Types Of Auditing In India

Auditing

Auditing is the on site verification activity, or it is like inspection and examination of a process or of a quality system. An Auditing is applicable on entire Organizations or an Audit must be specific to a function or process, or a production step.

Some Audits are named according to their purpose and scope.

3 Types of Audit

There are 3 Kinds of Audit and they are as follows:-

Product Audit:- In this an examination which is done of a particular product and service to evaluate whether the particular product or services conforms to the requirement or not.

Process Audit:- It is a kind of verification done to check whether the processes are working within established limits or not.

System Audit:- An audit is conducted for a management system. Auditing is done to check the quality management system is whether maintained or not.

Internal and External Audits: first Party, Second and third party Audits:

First Party Audit: It is done within the Organization to measure its strength and weaknesses against its own methods and produces i.e. it is an internal Audit which is performed by the Auditors who are hired by the Organization itself but they should not be having any vested interest in the audit result of the area which is audited.

Second Party Audit: It is an external Audit which is done or performed on the supplier by a customer or by a contracted Organization on behalf of a customer.

Third Party Audit: It is performed by an Audit Organization independent of the customer-supplier relationship and is free from any kind of conflict of interest.

December 7, 2018

What is TDS Return, and why you need to file it?

As per Government TDS Scheme, TDS has to be deducted at the time of making payment. Person who is making payment deducts and and deposits TDS with the Government of India.

TDS which is deducted is usually paid to the Government through Income Tax Challan along with the payment.

Besides depositing tax, as a deductor you must file TDS return.

Basically a TDS return is a quarterly return which is to be filed or submitted with the Income tax department. If you are deductor then it is mandatory to file TDS Return, and details of the TDS that is deducted is to be deposited by you to the Government. TDS return includes various things as per the forms such as details of PAN of the deductor and deductee, TDS Challan information and other details as required by the Forms.

TDS Return Forms

There are different forms available according to the nature of the income that has to be submitted and they are as follows:

For TDS on salary form 24Q is available.

For TDS where deductee is a non-resident, Foreign Company, form 27Q is there.

For TDS on payment for transfer of certain immovable property, form 26QB is there.

For TDS in any other case, form 26Q is there.

December 7, 2018

What Is The Process To Rectify The Already Registered Trademark In India

trademark rectification process in india

Trademark rectification is a legal procedure that is done to correct or rectify the error that has been done or made in the Trademark that has been put inside the Trademark registry. It is done when trademark has been wrongly registered or or when the mark is still in the trademark Registry after it has been expired (gone beyond the 10 year limit).

Trademark Rectification- Eligibility criteria

Anyone whose Trademark has been entered into the registry in a wrong way.
Anyone whose Trademark Application ahd the correct mark but the data which was entered in the register was wrong.
Anyone whose Trademark registration period of 10 years is over and the mark are still present.
Anyone who wants to cancel the trademark registration.

Trademark Rectification can be applied only when anyone’s Trademark is registered. If anyone’s Trademark is not registered then Rectification for trademark cannot be applied.

What are the grounds of trademark rectification or Trademark Cancellation?

If the trademark registration was done without any proper means, or if the Registration was obtained through untrue representation of facts, or if the Trademark was already been registered.
The Trademark is still inside the registry even after either there is a case againsts it, or the Trademark can create confusion.
If there are changes, amendment, or modification needed to be made to a registered Trademark according to the more recent advancement.
If a Trademark is registered but hasn’t been using it for more than 5 years.
If the Trademark hasn’t been renewed after its prescribed time of 10 years.
If the Trademark Registration have been obtained using unsrupulous means or fraud, then the Trademark can be expunged from the Trademark registry.
If there are any evidences pertaining to the non conformity of the Trademark registered on the grounds present in the Indian Trademark Act.
If more classes need to be included or added to the Registered Trademark.

Where is Trademark rectification Application filed?

Trademark rectification application is to be filed before the Trademark registry or either you can apply the rectification application of Trademark online also. However more physical approach is recommended.

Trademark Rectification Procedure

Firstly you need to file the Application for Trademark Rectification, and for filing there is a prescribed fees and format provided.
The application should include the case statement.
Once you have finished the Application, you can submit it either to the Registrar or IPAB.
After the Registrar receives the Application they are going to make contact with the registered proprietor of the mark to give counter statement.
As the counter statement arrives to the evidence stage, the parties are required to file their evidences in an affidavit format.
After this a haring happens, and the order for subsequent removal or rectification of Trademark is passed.

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December 3, 2018

What Is Section 8 Company And Its Registration Process In India ?

If you are planning to start non- profit Organization then opening a section 8 company is a good option as it involves several benefits within it. So here in this blog we will discuss the procedure for the registration of Section 8 Company.

Objectives of section 8 Company

Section 8 company is basically to start Non- Profit Organization into certain kind of business entity. And the objectives of Section 8 company are as following:-

To promote science, Art, Commerce, Education, social welfare, charity, social welfare, Protection of environment or any other objective that relates to social-economical conditions of society in some shape or form.
The profits which are generated through this business is to be used or promote the above mentioned objective.
Its only objective is to promote business and its profits not to be distributed among its members.

Section 8 Company Registration Process

Firstly Digital signature Certificate is to be obtained of one of the Directors of the Company.
Then DIN (Digital identification number) is to be obtained of the proposed Section 8 Company.
Then Name is to be Approved through RUN (Reserve Unique Name) and then submit it to the Registrar of Companies.
The MOA ( Memorandum of association and AOA (Articles of Association) is to be submitted in which under MOA Objectives and Powers of the Company is explained where in AOA rules and regulations that are followed by NON-Profit organization/ Entity.
Then Form INC 12 is to be filed, this form is for providing such institute a License to conduct welfare activities.
Finally we file for Company Incorporation, by filing spice Form.

Documents which are required

Copy of PAN Card of Director
Any Identity Proof
Utility Proof as Address proof for the headquarters of Company
Passport sized photo id
Proof of ownership of the registered office
An NOC as well.

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November 29, 2018

How to protect Trademark Internationally

If any person wants to register their mark in abroad or you are thinking for worldwide expansion then he can consult his lawyer or his agents to get it registered. And every Application for Trademark is applied individually in that Country’s IP Office. Applying in a different Country is a quite tricky process and that is why World Intellectual Property Organization (WIPO) have given Sorted solution for that and i.e. Filing of Trademark through Madrid Protocol through which Trademark can be applied in several countries through a single Application.

What is Madrid System

It is basically an Agreement which is signed by several countries (At present t has 97 member countries). By filing single Application Trademark can be filed in these several countries. By filing of a single Application status of your Trademark in each country can be tracked and managed centrally through the WIPO Site. without Madrid System international Trademark process is quite tricky and lengthy.

An Application will be moved from the country of origin only. And costing is given on the WIPO website. Fee Calculator is there on the WIPO website to tell the fees for applying for Madrid. It depends on the number of countries you are applying for and accordingly fees is charged. It takes 15 to 18 months to get it registered and can be renewed after every 10 years.

Therefore for Trademark application it is advisable to seek suggestion from the trademark attorney and after proper consultation only applies for Trademark filing by the way of Madrid System.

November 28, 2018

What is the role of Company registrar of Companies in the Incorporation process

The Company Registration process in India includes Companies Secretaries, Chartered accountants and some other individuals. In this blog we will discuss the role of Registrar of Companies in incorporation process.

Role of Company Registrar

Registrar of Companies has very important role to play in Incorporation of Companies. All documents are sent to the Registrar of Companies only. He decides everything like whether Company’s name can be incorporated or not. There are three Categories which are divided in to 3 parts and they are as follows:-

Document Accumulation– Once Registrar receives all the documents and application, then he will cataloguing it responsibly for future assessment.

Document Assessment- Once the Registrar receives all the documents then he will check whether all the documents are in order or not. And for Document assessment he will check whether all documents are present or not. And whether the documents are as per the rule of Ministry of Corporate Affair. And he will check that whether the application is filed right or not.

The certification- Once the Registrar checks every document that whether all the documents are present or not and all the documents are on record or not. And after checking all documents he will decide whether to certify the company or not. After certification of the company, documents are given to the Applicant. Only Chartered Accountant and Companies secretaries and some other people are authorised to apply for Incorporation of the Company. Because they are the experts and will advice you on correct things.

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November 26, 2018

What Is Said To Be Dormant Status Of The Company

Dormant status of the Company

The concept of Dormant Company came into existence in India with Companies Act, 2013. And it basically is formed as a sleeping or inactive company which is made for the future perspective. There is not any specific clause in the companies Act but it is mentioned in section 455 of Companies Act, 2013. And under this section the types of companies which are formed for future references is being discussed.

Inactive company does not carry any business operations or has not made any significant accounting transaction during the last two financial year. Companies must have not filed any financial statements or Annual returns during the last two financial years. Companies who have fails regarding mandatory annual requirements, those companies are also referred as a Dormant Company.

Here are some Rules regarding Dormant Company

MSC-1- Application for seeking- Application for obtaining a status of a Dormant Company can only be obtained through a special resolution Approval and through issuing a notice to all the Shareholders. There should not be any kind of dues i.e. tax dues or any outstanding loans, then only the status of a Dormant Company can be obtained.

MSC 2- Certificate of Registrar- Registrar will issue the Certificate.

MSC 3- Return of Dormant Company- By filing return the financial position of the Company can be seen. And the returns of the Company should be filed by the Chartered Accountants who are in Practice.

MSC 4- Application for Active Status- If a Company wants to get its Active Status then it can simply move an application for the revert of the status along with the requisite fees.

MSC 5- Certificate of Application status- In this certificate of Application status is being issued.

There are some rules which specifies that a Company cannot remain inactive for more than 5 consecutive years i.e. there are some rules given in which it is clearly written that a Company cannot remain inactive for more than 5 Consecutive years.

And is registrar has doubt that being a Dormant Company some transactions have been issued then the registar can take necessary steps or action to revert the status of an inactive company to a Active Company.

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