BIS Registration in India, its Process and Documents involved

Nowadays it is mandatory for almost every product to have the mark of genuineness and its authenticity in order to get the attention of its target customers. Similarly, BIS registration in India is a way to ensure customers regarding the quality, standard and purity of a product.

In this blog we will discuss about the concept, process and documents required for BIS registration-

Concept of BIS Registration

BIS registration or Bureau of Indian standards denotes the National standard body of India which ensures the standard and quality of a product, scheme of certification of products, and provides testing and standardization services. This national body comprises 25 members and its office is headquartered in New Delhi.

It has five regional offices at Kolkata, Chennai, Delhi, Mumbai and Chandigarh.

Objectives of BIS registration in India

The key objectives of BIS registration are as follows-

It aims to protect and safeguard the health of the citizens.
It offers the quality and standard of a product.
It protects consumers from hazardous products.
It boosts consumer confidence.

Regulatory Framework for BIS Registration

In India BIS registration is regulated by Bureau of Indian Standards Act, 1986 and issues BIS registration certificate according to this Act only. Further it was brought into force on 20th November, 1986 and its enforcement has reduced the ambit of the Indian Standards Institution (ISI).

Items covered under BIS Registration

Items that are covered under BIS registration in India are as follows-

Items covered under Scheme 1 or Mark scheme

Items covered under the above category are as follows-

Cement
Batteries
Household electrical goods
Oil pressure stoves
Food and related products
Automobile accessories.
Medical equipment
Cylinders, valves and Regulators
Electrical Motors
Steel and Stainless steel products
Electrical Transformers
Chemicals and Fertilizers
Capacitors

Items termed as IT and Electronic Products

Items covered under the above title are as follows-

Electronic Games such as Video Games.
Microwave, Oven and OTGs.
Laptop, Notebooks, Tablets
LCD, Plasma TV, LED Televisions with screen size 32 and above
Visual Display Units
Optical Disc Players comprising built amplifiers of input power 200w and above.
Wireless Keyboards
Printers, Plotters
Scanners
Amplifier with an input power 200W and above
Telephone answering machine

Who are eligible to obtain BIS Registration

All the manufacturers or producers notified under compulsory registration scheme need to apply for BIS Registration. However, following are the things which needs to be taken care of-

A Separate registration number is required for the products r tems manufactured or produced at different locations.
A separate registration number is required for each brand, product or item manufactured or produced at the same place.

Documents Required for BIS Registration in India

Following are the documents required for BIS Registration in India-

PCB Layout
Schematic diagram
User manual
Critical components list
A copy of Trademark registration
Factory’s organizational chart
Legal address proof for the factory
List of machinery installed
List of equipment used
All the documents concerning authorized Indian Representative (AIR) when the producer resides is some other country.
Test report of the product analysis or examined by the BIS certified lab.
Declaration from the CEO of the firm.
Invoice concerning sales
Packaging list
Bills of lading
Insurance cover note
Certificate declaring the Brand name of the owner
Letter of consent (LOC) from the owner of the products
Location map
Flow chart showcasing the process of manufacture

Procedure for obtaining BIS Registration in India

Following are the steps involved for obtaining BIS Registration in India-

Firstly product samples or batches are to be sent for testing in the BIS recognized laboratory.
After receiving the test report, the applicant requires to enclose some of the basic details such as-

Name f the Applicant
Name of the Firm
Complete Address
Signature of the Lab in Charge

Now go to the BIS portal and download form VI and VII
The applicant is required to attach or upload all the documents along with the test reports when applying for the BIS Registration.
After filing an online form, the applicant has to submit a hard copy of the documents and test reports along with the form at the BIS regional office.
In case of overseas Manufacturers and producers, the applicant needs to hire an AIR, who will be responsible for obtaining certificates on behalf of its producers.
After receiving an application, the comet authities will conduct an examination and scrutiny of all the documents, test reports and application submitted.
If the examiner will be satisfied by the forms and document then only he will issue a BIS registration certificate.

Validity of BIS registration in India

BIS registration in India is valid for a period of two years starting from the date of issuance and after two years applicant is required to renew its registration by filing Form XII.

Conclusion

The Bureau of Indian Standards provides guidelines of quality and standards of a product to every manufacturer or producer. Moreover, BIS acts as an authority to issue BIS registration certificates. However there are chances for new entities to face difficulty in obtaining the BIS registration certificate.

At BIAT consultants, our experts will provide you end to end assistance with the matter concerning BIS Registration in India.

July 5, 2021July 5, 2021

PMS V/S AIF: Let’s Understand the Difference between the Two

What are PMS (Portfolio Management Services)?

PMS are the tailored investments portfolio in fixed income of an individual, in equity securities and structured products. It basically caters the investments of high net worth individuals with a minimum ticket size of Rs. 50 Lakh/-.

PMS services are discretionary or non-discretionary. In discretionary portfolio managers manage your portfolio by tracking the market and by keeping your investment criteria in mind whereas in non-discretionary investors can themselves take final decisions.

In PMS, individuals have to actively monitor and track the developments themselves on a regular basis. Since an experienced portfolio manager manages your investment, all you have to do is review the transactions periodically and get performance updates. This also helps in best returns in the investments.

What are AIF

AIFs involve higher minimum investment, and it includes higher risk and has probability of higher returns. These are the pooled investments for investing in hedge funds, venture capital, futures, and private equity.

That is why AIFs are considered to be the best by many of the investors.

PMS or AIF : Which one is better?

Particulars	PMS	AIF
Regulation	They are regulated by SEBI (Portfolio Managers Regulations, 1993)	They are governed by SEBI (Alternative Investment funds Regulations, 2012)
Pooling of Funds	Funds are not pooled	Pooling funds are the essence of this kind of investment.
Number of Investors	There is no threshold limit. Portfolio Managers can have any number of clients	It should not exceed more than 1000.
Fees	Apart from the non-refundable fees of Rs 1,00,000/-, registration fees of Rs. 10 Lakh is to be submitted at the time of the grant of the certificate of registration.	Apart from the non-refundable fees, registration fees of Rs. 5 Lakh in category of AIF, Rs.10 Lakh in category II and Rs. 15 Lakh in category III of AIF is to be submitted.
Validity of Registration	It is valid upto three years, and it should get renewed at least 3 months before the expiry.	It is valid until the AIF is wound up.
Types	PMS have two categories-DiscretionaryNon-discretionary	AIF’s are of three types-Category ICategory IICategory III
Segregation of Funds	Funds of every client are segregated separately in a DEMAT Account.	There is no segregation of funds required
Minimum Investment Limit	25,00,000/- (25 Lakh)	1 Crore
Corpus Requirement	No Corpus required	Each scheme is required to have a corpus fund of Rs. 20 crore. In case of angel funds the requirement of Rs. 10 Crore.
Listing	No Listing	Close ended units can be listed after the closure of such limits.
Tenure of securities	No minimum time limit is prescribed. It is adhered by an agreement between the portfolio manager and client	Category I and II have tenure of three years which can be extended upto 2 years.

Conclusion

Therefore there are many differences between the PMS and AIFs. There is an increase in the interest investor in these areas SEBI is planning to align the services of PMS and AIFs both. In 2003 SEBI increased the investment requirement from 5 Lakh to 25 Lakh and now they are planning to increase upto 1 Crore as of AIFs.

Since Both the PMS and AIFs are high risks, involves higher returns, it is crucial to have an excellent.

Get our expert services and guidance over investment in PMS or AIFs.

June 4, 2021June 4, 2021

Practice to Increase the Efficiency of Capital Optimization of Accounts Receivable

It is important to have a productive accounts receivable strategy to optimize cash, no matter the business structure. No business can function unless it has optimal working capital, and this is possible when the accounts receivable process is in accordance with the company’s position. In this article, we will discuss the best practice to increase the efficiency of Capital Optimization of accounts receivable.

Importance of Working Capital Optimization of Accounts Receivable

Some of the benefits of streamlining accounts receivable can take time, but many other features are immediately apparent. This can be harnessed by looking at increased capital as a way of increasing liquidity by avoiding potential wastage of existing capital. In addition, businesses operate more seamlessly with increased capital and less debt. As far as streamlining the accounts receivable process is concerned, you should start as soon as possible without any delay. This includes sharing payment policies with the customer during the initial phase itself.

Tips to improve receivable accounts and working capital optimization

It can be difficult at first to administer the process well, but it can be done easily by taking advantage of the following strategies:

Accurate Management of Customer Data

To establish and maintain the receivable process of productive accounts, centralize the primary data process so that customer accounts and information are accurate. For example, when customer addresses are invalid, it causes delivery of invoices to the wrong address, making the collection process more complicated.

So periodically examine the customer’s account periodically to identify any issues such as abnormal terms of payment, credit limits and discounts. Any change in customer data must be supported by a document for future reference. To reduce data manipulation the firm should pay attention to establishing an effective control.

Adopt Customer Friendly Approval Process

It is clear among businesses that they create an unproductive credit protocol to increase sales, resulting in compromised cash flow management. Giving credit is not bad for businesses as long as it does not affect the working capital or cash flow management of the company. The firm should take advantage of a certain process for approving lending.

In this process the entire workflow of the application process, the situation under which the account is placed on hold, as well as the guidelines related to the evaluation and overriding of the credit limit will have to be shown. It should be continuously audited to identify pain points.

Include Efficient Billing Process

Each company’s billing process creates a roadmap for productive or inefficient invoice management. The invoicing process must be optimized to achieve high accuracy because an error can adversely affect overall productivity and profitability. Also, it is important to define how to create invoices as well as deliver invoices on time.

Take advantage of the latest technology to digitize invoicing. This can prove to be a great solution. Accounts with errors should be indicated with reports highlighting the primary cause of efficient behavior.

Refine the Cash Application Process

When the payment reaches the company, they must be linked to a valid invoice and a valid customer. This can help during future conflicts. Payment must be applied on time to classify current and past accounts.

The process of cash application can be easily streamlined with minimal complications by offering limited payment options to customers. Journal entries regarding cut-off dates should be recorded accordingly and earlier.

Reducing Inefficiencies with the Archiving Process

If you want an uninterrupted cash flow management, then optimize the accounts receivable process according to the current conditions. A proactive approach should be employed in this regard to aid in collection efforts.

Additionally, it is necessary to establish a production process to negotiate payment plans to ensure compliance with the company’s purpose. Automation of the entire process should be done with the help of the latest technologies to reduce the possibility of mistakes.

Conclusion

A firm can improve its working capital by converting its current assets into liquidity. For example, if a firm efficiently maintains its accounts receivable and inventory, it can increase cash flow. Similarly, if a firm establishes supplier-friendly loan terms with its vendors, firms will benefit from having increased working capital.

June 2, 2021June 2, 2021

Essential Factors of Central and State Pollution Control Board

The Central Board having the power to acquire, hold and dispose of the corporate body, is considered a corporate body. Section 3(3) of the Water (Prevention and Control of Pollution) Act, 1974 can also enter into a contract with an individual or a party. They can sue or be prosecuted in the name of the Central Board. For the prevention and control of pollution, the Water Act, provided for the formation of Central and State Boards and dealt with the functions of the Pollution Control Board. The Central Board is constituted by the Central Government, and the State Board is constituted by the State Government. In this article, we will discuss the role of the Pollution Control Board.

Necessity for a Pollution Control Board

Pollution needs to be stopped, and its prevention will reduce financial and environmental costs. Preventing pollution protects the environment and also natural resources while strengthening economic development. Thus, the primary reason for the introduction of a pollution control board is to prevent pollution and save the environment.

Role of Central Pollution Control Board

The Central Board is a body corporate with authority to acquire, hold and dispose of. They can enter into a contract and sue or be sued in the name of the Central Board. For the prevention and control of pollution, as per Section 16 of the Water Act 1974, the Central Pollution Control Board has the following role:

Advise Central Government

The Central Pollution Control Board, also known as the Central Board, is one of the roles required to advise the Central Government for the prevention and control of water pollution.

Coordinating with the Same Board

The Central Board has to coordinate the activities of the State Boards to resolve disputes between both State and Central.

Technical Assistance & Guidance to the State Board

The Central Board should provide technical assistance, assistance and guidance to the State Boards, conduct investigations and research related to the issue of water pollution, its prevention, control etc.

Function as State Board

The Central Board may perform such role of the State Board, and each State Board shall be bound by such directions.

Training Programs

The Central Board should organize and plan training programs for those engaged in or involved in programs for the prevention, control or abatement of water pollution.

Organize Comprehensive Programs

The Central Board should conduct programs through mass media regarding the prevention and control of water pollution.

Publication of Technical and Statistical Data

The Central Board has to collect, compile and publish technical and statistical data related to water pollution. In addition, prepare manuals, codes or guides related to the treatment and disposal of sewage and disseminate information related to it.

Set the Standard for the Stream / Well

Another role of the Pollution Control Board (Central) is to set, modify or cancel standards for a stream / well.

Program Execution at National Level

The Central Board should plan and implement a program for the prevention, control or reduction of water pollution.

Role of State Pollution Control Board

Like the Central Pollution Control Board, the State Pollution Control Board also plays an important role. Its functions are as follows:

Planning Comprehensive Programs

The State Pollution Control Board also known as the State Board should plan a comprehensive program to prevent, control and reduce pollution of rivers and wells in the state.

Advisory Role

The State Board advises the State Government on matters related to the prevention, control or reduction of water pollution.

Broadcast Information

The state board has to collect and disseminate information related to water pollution and its prevention, control or reduction.

Investigation & Discovery

The State Board is to conduct, encourage and participate in investigations and investigations and research related to the prevention, control or abatement of water pollution.

Conduct Training Program

The State Board should cooperate with the Central Board and organize training of persons engaged in programs related to water pollution prevention, control or abatement and also organize mass education programs.

Sewage Inspection & Trade Waste Plant

The State Board is required to inspect sewage or business waste works and plants for the treatment of sewage. They should review the purification work, plans, specifications or other data related to the plants set up for the treatment of water.

Standard for Water Discharge

The state board should set, modify, or revoke waste standards for sewage and business waste, and to classify state water.

Economic Methods of Treatment of Sewage

The State Board should develop economical and reliable methods for sewage treatment and trade waste in relation to the peculiar conditions of climate, soil etc. in different regions.

Ways to Use Sewage

The State Board should develop ways to use sewage in agriculture and appropriate commercial effluents.

Sewage Disposal Methods

Another role of the Pollution Control Board (State) is to develop methods of sewage disposal and trade waste on land.

Standard for Sewage Treatment

The state Board should set standards for the treatment of sewage and business waste to be left to the special stream.

Conclusion

The role of the Pollution Control Board is important for the betterment of the environment. The Central as well as the State Board should work together to protect the environment and take steps to prevent, control or reduce pollution.

May 27, 2021May 27, 2021

DGFT Launches E-Tariff Rate Quota System for Importers

Recently,the Director General of Foreign Trade has decided to announce the launch of an online e-tariff rate quota system for interested applicants for imports. Applicants seeking tariff rate quota for imports are available in the import management system, the process of applying online under the e-tariff rate quota. In this article, we will discuss all these features in detail step by step process.

DGFT Trade Information

DGFT announced the following information in its trade notice:

With effect from 8 February 2021, an easy format has been created for applicants seeking import tariff rate quota to apply online through the import tax dashboard on the DGFT web portal.
For applications that have already been submitted for the financial year 2021-22 and are yet to be processed, they will be transferred to the new system.
As to any amended request for a TRQ license issued on or after February 8, 2021, it was electronically mandated to be produced by the TRQ system.
Licenses for all TRQs have been submitted electronically, and such license data was mainly decided to transmit electronically to customs officers.
Since 8 February 2021, no paper copies of the TRQ import license issued by the Director General of Foreign Trade have been made.

Tariff Rate Quota

Tariff Rate Quota is a mechanism that allows a specified quantity of specific products to be imported. These items are as per the special custom notification attached to it. Tariff quotas are used on many products, most of which are in the agricultural sector.

TRQ is allocated to the importer by DGFT after paragraph 2.62 of the procedures manual, 2015-20. The TRQ authority will include the importer’s name and address, IEC code, customs notification number, sub-title or tariff item applicable, quantity and certificate validity period. The TRQ authority was issued electronically by the DGFT and a process for transmitting the ICES system was made. Import against TRQ will be allowed only if the TRQ quantity is electronically debited in the ICES system.

Benefit from Tariff Rate Quota Scheme

The following people will be benefited from the tariff rate quota scheme:

Manufacturer exporters with or without support manufacturer

Merchant exporters associated with subsidiary exporters

Service provider.

Prerequisites for applying for TRQ authorization

To apply for authorization, the following are based on the following prerequisites:

DGFT user profile must be combined with IEC code.

A valid digital signature certificate must be registered in the system.

GSTN details are required as per IEC branches.

Fee for Tariff Rate Quota Application

For issuing the authorization, a registration fee of Rs 1 thousand for each application will have to be paid for a minimum of Rs 500 and a maximum of Rs 1 lakh on the CIF amount of the authority through the electronic mode in the online system. It is worth noting that the TRQ authorization, the authorization will be considered valid for imports for 1 year from the date of release.

Application Procedure for Tariff Rate Quota

The procedure to apply for e-tariff rate quota in the import management system through the importer’s dashboard on the DGFT website is given below.

New User Registration

Open the DGFT website, access the main page and follow the further process along with the registration process. Enter the registration details and select Register user as importer / exporter. Enter one time password received on email and mobile number. On successful OTP verification, you will receive a notification containing a temporary password, which must be changed at first login.

Apply for Tariff Rate Quota Application

After logging into the DGFT web portal navigate to Services and select Import Management System, and click on TRQ option.
Apply for TRQ on tile, click on explore link.
On the Application Type screen, enter the value on the screen and select Save and Next proceed.
On the firm details screen, enter all the required input values and select Save and select Next option.
On the import details screen, import item details, introduce the required input values in the import details and save and choose the next option.
Once you enter the details on the Import Details tab, the user will be directed to the Port Details tab.
The ribbon will be displayed on the Other Details screen, based on the value selected for the purpose of the import dropdown on the Port Details screen. The user has to fill the input value on the other details screen and select Save and Next option.

Declaration Section

In this section, click on the checkbox, accept the terms and conditions and provide all the necessary details and save and choose the next option. On the Application Summary screen, tick the Approval of Declaration checkbox and click on the Sign button to sign the application through digital token.

Payment

On clicking the sign option, payment will be displayed to apply option-TRQ. Proceed to pay.

Conclusion

It may be noted that help manuals and FAQs have also been set up on the website of the Director General of Foreign Trade to facilitate changes in the e-tariff rate quota system.

May 25, 2021May 25, 2021

Foreign Direct Investment: Overview, Types, Advantages & Disadvantages of FDI

Foreign direct investment or FDI is one of the most important sources of direct investment in countries. Unlike foreign portfolio investment, an investor in a country holds control of any business or organization in foreign lands receiving investment. FDI also indicates the political and socio-economic stability of a country. In this article, we will discuss about the types of FDI and foreign direct investment.

Overview of FDI

Foreign investment can be either organic or inorganic. In the case of organic investment, a foreign investor pumps in money to accelerate expansion and growth in established businesses. In the case of inorganic investment, an investment institution buys a business in its target country.

Foreign direct investment in a developing economy in India and parts of South East Asia gives a lot of boost to businesses that are in poor financial condition. The Government of India employed various measures to ensure that large-scale investment in sectors such as defense, telecom sector, PSUs and IT sector came into the country.

FDI is a non-debt financial resource, it has the potential to become a major driver for economic development in the country. With globalization and internationalization, FDI has become a reality. Whereas, according to scholarly opinion, foreign investment has been released keeping in mind the following factors:

It aims to control companies in a foreign land.
It has helped businesses overthrow monopoly practices.
Considering market imperfections, such investments help companies make an impact in case of a sharp and unpredictable drop in business activity.

Types of Foreign Direct Investment

There are various types of foreign direct investment. Let us discuss its types in this segment.

Horizontal FDI

Horizontal FDI is the first of its kind. It is checked when a business enters a foreign country through the FDI route without changing its original activities or for any other reason for its expansion. It is also one of the most common sort of FDI. An example of this type of FDI is McDonald’s investing in an Asian country to increase the number of stores in the region.

Vertical FDI

Vertical FDI is another form of FDI. This FDI occurs when an investment is made in a company within a specific supply chain and which may or may not be related to the same industry. When vertical FDI occurs, a business invests in a foreign firm that supplies or sells products. An example of vertical FDI is if McDonald’s purchases a large-scale meat processing plant in the European country, to boost its meat supply chain in the target country.

Conglomerate FDI

When the investment is made in two different companies of different industries, the transaction is called Conglomerate FDI. As such, FDI is not directly linked to investor business. An example would be in this case when American retailer Walmart invests in Indian automobile manufacturer Tata Motors.

Platform FDI

Among the types of FDI, platform FDI means expansion of business in a foreign country, but everything manufactured there is exported to a third country. This form of FDI is seen in the trade-free zones of FDI-starved countries. For example- French perfume brand Chanel set up a manufacturing plant in the US and exported products to other parts of Asia and Europe.

If you want to invest through FDI, it is important to know about various types of FDI, including examples. With FDI, the money invested can be used to start a new business in a foreign land or to invest in an existing business in a foreign land.

Advantages & Disadvantages of these types of Foreign Direct Investment

FDI has its advantages as well as disadvantages. Let’s take a look at these two sides of FDI.

Advantages

With the increase in FDI, businesses benefit through tax breaks or incentives and the ability to further diversify.

For the country receiving FDI, benefits such as more excellent employment opportunities, access to latest technologies and modern management methods etc. can be enjoyed.

FDI can help create a level of dependency between countries that will maintain a peaceful environment.

Disadvantages

Large corporations take over the market, and this hurts local businesses. One of the examples is walmart.

There is a risk of profit repatriation which means that the profit generated in India will not enter the domestic economy.

FDI can affect a country’s exchange rates.

Conclusion

FDI has been an important driver of economic growth and also an important source of non-debt finance for India’s economic development. Therefore, there should be a robust and easily accessible FDI system. Once the epidemic ends and the economy opens up completely, analysts predict various types of foreign direct investment to flood.

May 21, 2021May 21, 2021

Awareness of the Environmental Challenges in the International Business

Globalization has reduced the boundaries of operations or businesses worldwide. With the rapid growth in trade enterprises, there has been a significant increase in global trade in goods and services which has reached 25% of the entire GDP. International trade in manufacturing has also increased since 1995. Increasing globalization Businesses wishing to work abroad are facing some major challenges.

International trade is not easy to do due to challenges in the international business environment. It faces challenges such as various uncertainties and different political environments, taxation and other legal constraints. In this article, we will cover some of the major challenges faced in the international business environment.

International Business Environment

International Business environment, refers to trade worldwide. In other words, it means selling and buying goods and services worldwide. Keeping international trade management in one country connects transactions across borders.

The scope of international trade is expanded as it focuses on the opportunities and challenges in a globally operating business environment. The differentiating factor of this business from domestic trade is that international trade is subject to rapid change in an uncertain environment with the possibility of a fully increased income and customer base.

Types of International Business Environment

Some of the major types of international business environments are:

Technical Environment

The technical environment is related to technological upgrading as well as technological adoption and advances in manufacturing and production methods. The success level of a business depends on the acceptance level and utility of technological innovation in different countries. With technological advancement, businesses gain competitive advantages and remain competitive on global terms.

Political Environment

The political environment includes a government that operates in the economy, its laws, policies, etc. Business owners while doing business in other countries deeply considers the political risks prevailing in the country and the government’s relationship with political risk.

Cultural Environment

Culture in any country means the establishment of trust and values in the country. It depends on the main factors like language, history, level of education, resistance to change, lifestyle of people, etc. And these factors act as an alliance to maintain the cultural environment in the country.

Economic Environment

In this, all factors are considered when doing business in a country. Each country may differ in terms of its economic environment depending on the category of the country, whether it is a developed, developing or underdeveloped country. The economic environment is cut after taking factors such as national and per capita income, taxation aspects, availability of raw materials, infrastructure facilities, etc.

Biggest Environmental Challenges in the International Business

Businesses today are diversifying and diversifying more than ever before to reach new customers, grow their customer base, and increase their overall profits. As yesterers in global markets become more accessible by becoming more interconnected, international trade involves risks and challenges that must be dealt with. Some of the major challenges in the international business environment are as follows:

Corporate Structure

If the working structure of the company is not pre-decided then the structure of the company can challenge your business. There should be a qualified team if the company wants to be globally competitive, for which it will consider the organization structure and location from where the team operates.

Foreign Law

A clear understanding of foreign laws is not a challenge for international businesses. Therefore it is considered mandatory to gain a comprehensive understanding of laws and regulations. There have been instances where businesses had to face the heat due to lack of understanding of foreign laws. This is a major challenge that needs to be attended.

Accounting

This is an important concept when it comes to multinational trade which is responsible for paying corporate tax in the countries they operate. Various tax implications, tax rates and compliance requirements pose a challenge in international operations.

Liability to pay Taxes

A company is responsible for paying taxes in the country of its operations. Paying multiple taxes proves a challenge for companies with double taxation to reduce their overall revenue. Tax liabilities challenge companies because of lack of understanding of tax concepts, lack of understanding of tax treaties between countries etc. Companies should get advice and knowledge in tax concepts that can help the company.

Payment method

Payment methods become one of the most hunger challenges in the international business environment. This is because the payment methods applied in the home country may not be acceptable abroad. Hence it becomes a challenge for any business as payment is the key to running. However, to deal with this, businesses may decide to have different ways of accepting payments.

Currency Rate Fluctuations

The fluctuation in currency rates is one of the challenges in the international business environment that needs to be considered by a business operating abroad. Major volatility can affect spending and profits.

Cultural differences

Communication is a skilled skill for businesses, whether working at home or abroad. However, differences in cultures and languages in countries constitute a significant challenge. Given that effective communication is critical to international business success, companies are looking to adopt means to bridge cultural differences.

Political Risk & Terrorism

International businesses have to deal with cases of political instability, and political risk in the form of uncertainties is a major challenge and threat. Regulations and policies that are not pro-business may adversely affect the functioning of the business.

Terrorism has also been another large-scale issue that needs to be distributed as global trade is not easy with terrorism.

Conclusion

There are many challenges in the international business environment that must be actively overhauled. We may also see new forms of challenges in the future but are we ready.

May 17, 2021May 17, 2021

Is RBI’s Covid-19 Measures Adequate for Small Lenders?

It has been a year for all of us battling the Covid-19 pandemic, and now the small lenders find themselves in the same place where they were last year. As small lenders face uncertain business environments due to lockdowns in states, they are apprehensive about another set of assets. In this article, we will discuss RBI’s COVID-19 measures in 2021 and announcements for businesses.

Problem of Small Lenders Due to the Lockout across the Country

Due to the acute impact of the Covid-19 epidemic, many states in India are under quality stress. In this article, we will find out what is sufficient about the recently announced RBI’s Covid-19 measures to help small lenders in a time when a full or partial lockdown is declared. This has worried small lenders a lot as it will affect their collections and livelihoods. According to industry officials in the microfinance and banking sector, the lockdown has hit small and medium business owners tremendously, thus forcing them to close shops and close collections by micro-lenders.

Now I can quote the words of Mr. Samat Ghosh, founder of Ujjivan Financial Services, who has expressed his views in this regard and said that the impact of Covid-19 has been seen for a year now, and the second wave spread like this. It is both a medical and economic problem. He further stated that this is one of the biggest crises to hit the region.

The positive thing here is that the lockdown will not last long. Last year Lockedge continued for an extended period of time at different stages, and Lockdown’s economic losses were enormous. There is no accurate estimate of how many shops closed, but the number is certainly beyond expectations. Demand from homes and consumers affected by the resulting economic stress.

RBI Covid-19 Measures During First Wave

The timely intervention of the Reserve Bank and the government enabled the banks to avoid a steep decline in non-performing assets, it is possible to avoid. The government announced a Rs 20 lakh-crore Covid-19 relief package, a significant portion of which were measures announced by the Reserve Bank. In all, the Reserve Bank infringed liquidity of Rs 1.27 lakh crore. In addition, the Reserve Bank also announced a six-month loan moratorium and lump sum loan facility under the Covid resolution framework.

The liquidity assistance given was through targeted long-term repo operations and specialized open market operations. These measures by RBI helped banks and micro-finance institutions to prevent large asset quality shock.

RBI’s Second Round of COVID-19 measures

On May 5, 2021, the Governor of the Reserve Bank of India, Shaktikanta Das, publicly discussed the measures. One of the important plans of these measures is Resolution Framework 2.0 which allows small companies to restructure them, loans that did not do so.Further borrowers who took risks up to Rs 25 crore who could not take advantage of earlier facilities. They will be considered eligible for debt restructuring as the loans are standard by 31 March.

The reorganization can be implemented by 30 September 2021 under the Resolution Framework 2.0. Banks are required to implement it within 90 days of the call. Lenders can review the working capital limits of small businesses and micro, small and medium enterprises as a one-time measure. Shri Shaktikanta Das said that those who have taken advantage of the back window of debt restructuring can be granted two additional years of deferment. He further said that he announced a liquidity facility of Rs 50 thousand crore to give loans to banks for Covid infrastructure.

RBI announced tagging of micro-finance institutions from small finance banks as priority sector lending loans. This means that lending by banks is compulsory for the economically weaker section. Banks should give 40% of their loans in this category.

Recently, the process of lending by microfinance banks to micro finance institutions was not a priority sector lending classification. However, the RBI governor said that due to the fresh challenges and to ascertain the liquidity position of small micro finance institutions, small finance banks are now offering new loans to small micro finance institutions for lending to individual borrowers in the form of PSL. Has been allowed.

Industry Responded to these Measures

Large banks may not have immediate concerns because of the broad provision made on the Covid effect, but these measures may not help small lenders avoid the second wave of Covid-19 if the situation does not improve on the ground. Unlike large banks, small MFIs do not have very large cash reserves.

The Reserve Bank of India’s Covid-19 measures have been adopted by the industry, but if the lockdown continues for long, the sector may face a huge crisis. Micro finance institutions have already started seeing disruptions in their normal operations due to the lockdown, as this is the biggest issue for the customer. Customers of micro finance institutions are mainly small businessmen, who are the first to be affected during lockdown.

Conclusion

Small lenders are expecting further measures from the Reserve Bank in the coming days or weeks. In uncertain times, these people are searching for authorities to come up with announcements that can keep their businesses alive and active. However, the current situation of the Covid-19 should improve, which would be a different primary expectation from the Covid-19 measures of the RBI. But for now, things look bleak for small lenders.

May 14, 2021May 14, 2021

Comprehensive Guide: Process of UAN Registration and Activation

UAN is known as Universal Account Number. It is important because the entire process related to Employee Provident Fund (EPF) services now operates online. UAN has become one of the important things as the entire process of Employees Provident Fund Services is now conducted online. With UAN, it is easy to access your provident fund account services such as withdrawals, check EPF balance and apply PF loan. In this article, we will discuss UAN registration and activation.

Universal Account Number (UAN)

The UAN is a 12-digit unique number. It is entrusted to employees who contribute to the Employees Provident Fund. It is allocated and produced by the Employees Provident Fund Organization and certified by the Ministry of Labor and Employment, Government of India.

This number provided to employees remains the same throughout their lives, even if such individuals switch. When an employee changes their job, the EPFO allocates a new member identification number that is associated with the UAN. As an employee, you can request a new member ID by providing a UAN to the new employer. When a member ID is created, it is linked to the employee’s UAN. Thus, the UAN acts as an umbrella for more than one member Ids allocated to the employee.

How to Generate UAN?

Typically, you are allocated a UAN by your employer. Some employers also print this number in the salary slip. If you are unable to get your UAN from the employer, do not worry that you can also get it through the UAN portal. Follow the steps given below:

Visit UAN portal – https://unifiedportalmem.epfindia.gov.in/memberinterface/
Click on the option and know your UAN status, and a page will appear.
Select your state and EPF office from the dropdown menu. Other documents like name, date of birth, phone number, etc. must be entered by entering your PF number with details. After which the selection authorization PIN will be received.
A PIN will be sent to your phone number from the main website. Enter the PIN and click on the option which will result in OTP and UAN being validated.
After which your UAN will be received on your mobile number.

Procedure of Activation & login to EPFO Website with UAN

To activate your UAN, you must have a UAN and PF member ID ready. The following steps can be followed to activate the UAN on the EPFO portal:

Go to the EPF homepage and click for staff under our services on the dashboard.
Follow the option of clicking on Member UAN / Online Services in the Services section. After which the UAN portal will open.
Enter Universal Account Number, Mobile Number and PF Member ID. Next, click on the option from which to get the authorization PIN. You have to fill the PIN on the registered mobile number.
Select the option I agree under the disclaimer box and enter the OTP you receive and then click on the option Validate the OTP and activate the UAN.
Upon activation of UAN, you will get a password on the registered mobile number to access your account.

Features & Benefits of UAN Registration

The following points should be considered as benefits and features of UAN registration:

UAN helps centralize employee data in the country;
This unique number reduces the burden of employee verification from companies and employers;
This has made it possible for EPFO to obtain bank account details and KYC of member without the assistance of KYC and employers;
It helps the EPFO track multiple job changes of an employee;
With the introduction of this UAN, the incidence of premature and premature EPF withdrawal has been reduced.

Employees receive certain benefits with the use of UANs. They are:

Easy to extract PF online with this number
Employees use this unique account number to easily transfer PF balance from old to new.
Whenever you need a PF statement, you can download it immediately by logging in through Member ID or UAN.
If the UAN is already verified, new employers are not required to validate your profile.
With UAN, employers cannot access or hold their employees’ PF money.
It becomes easier for employees to ensure that their employer regularly deposits their contribution to the PF account.

Documents required for UAN Registration

These documents are required to get your unique account number:

Bank account details like account number, IFSC code etc are required.
ID proof like driving license, Aadhaar card etc.
Address Proof
Pan Card
Aadhar Card
ESIC Card

UAN Helpdesk for Any Other Information

A UAN helpdesk is available on the EPFO website, which contains various sections. There are two broad sections – Help and Claim. EPFO helps in meeting employee and employer queries regarding office locations, services etc. The claim complements the various claim forms available to users. Members can use this UAN helpdesk at any time to gain clarity against questions and doubts.

Conclusion

UAN registration and activation is a process done online, and there is no need to pay any fees for it. Universal account number has become one of the important things as the entire process of Employees Provident Fund Services now operates online. If you have any query related to UAN registration or activation, use the UAN helpdesk, and get the solution easily.

May 13, 2021May 13, 2021

Income Tax Compliance Deadlines Extended Amid Covid-19

As a major relief for taxpayers, the government has extended compliance deadlines relating to income tax as well as the main tax for Google and service tax. The government has waived late fees to reduce compliance burden amid the second wave of the Covid-19 epidemic. With the rapidly growing Covid-19 cases in the country, experts are of the opinion that the government may need to push the deadline.

Compliance extension Related to Tax, Accordingly Central Board of Direct Taxes

The CBDT said in a statement that due to adverse conditions caused by the Kovid-19 epidemic and after considering multiple requests from taxpayers, tax advisors and other stakeholders across the country, requesting an exemption in compliance dates, the government today announced some Has extended the deadline. .

The Ministry of Finance had received several industry representations from MSMEs (Micro, Small and Medium Enterprises) for up to 3 months of breath taking. The due date is extended in respect of FY 2019-20, GSTR-1 (Sales Return), GSTR-4 (Annual Composition Return), GSTR-3B (Summary Return), filing or amended income tax returns for filing appeals. And payment of taxes. In addition, the rate of interest has been rationalized and late fees have also been waived in many cases.

CBDT Exemption given to Taxpayers

The list of exemptions granted to taxpayers with tax-related compliance between Kovid-19 is as follows:

The appeal to the Commissioner under Chapter XX of the Income Tax Act has been extended till May 31, 2021 or for the time conferred under that section, whichever is later. Earlier, the deadline was 1 April 2021.

The objection to the Dispute Resolution Panel under Section 144C of the Income Tax Act has been extended till May 31, 2021 or for the time provided under that section, whichever is later. The first filing deadline was 1 April 2021.

In response to a notice under section 148 of the Income Tax Act, the income tax return has been extended till May 31, 2021, or the time allowed under that notice, whichever is later. The first filing deadline was 1 April 2021.

Filing of amended returns under sub-section (4) of sub-section (5) of section 139 of the Income Tax Act for the assessment year 2020-21 and filed under section 139 of the Income Tax Act for the assessment year 2020-21 can go. The provision to be filed on or before 31 March 2021 is certain.

Payment of tax deduction under Section 19-1A, Section 194-1B and Section 194M of Income Tax Act and filing of challan cum statement for deducted tax can now be paid on or before 31 May 2021 and furnished. can be done. Before this it had to be done first. Paid and furnished by 30 April 2021 under Rule 30 of the Income Tax Rules 1962.

Statements in Form 61, details of declarations received in Form 50, can be furnished on or before 30 April 2021.

Extension of GST Compliances

The Ministry of Finance has noted nine changes in GST compliance requirements. Notification has been issued based on the recommendations of the GST Council, which is as follows:

Businessmen with a turnover of more than 5 crores in the preceding financial year waive their late fees when they fail to submit their returns in GST Form-3B within 15 days from the due date for March and April.

Businesses with a turnover of up to Rs 5 crore, delay charges are waived for up to 30 days during two months. Taxpayers have a turnover of up to Rs 5 crore, a 30-day window applicable from January to March.

The date of submission of returns in Form GSTR-4 of CGST Rules, 2017 for the financial year ending 31 March 2021 has now been extended by one month to 31 May 2021.

The government also extended the period of declaration to be submitted in Form GST ITC-04 in respect of goods received from such laborers or such laborers during the period from 1 January to 31 March to 20 May 2021.

The government gave the officers more time to perform their statutory duties in view of the raging epidemic.

Expert Observations Detailing Tax Related Compliance

As you will be aware of the fact that many parts of India are facing some kind of bandh. Tax experts believe that SMEs would have been one of the most affected areas had the tax related compliance deadline not been extended.

Shailesh Kumar, Nangia and company LLP partner, are of the opinion that the government has given much needed compliance relief to the taxpayers, and if the situation in the country does not improve in future, the government may have to push these deadlines. A large number of people reel under the epidemic.

EY’s tax partner Abhishek Jain said that with the unprecedented boom in epidemics and lockdowns in many parts of the country, many industry players will find it difficult to meet the GST compliance deadline. Therefore expansion will provide much needed relief.

Sachin Taparia, president and founder, local circles said the government may have to extend the deadline until June 30, unless the small businesses are prevented from filing, the lockout and ban will continue until May 24.

Also Read : How to file income tax for private limited company ?

Conclusion

Likewise, this is no doubt a much-needed relief for taxpayers and businesses as the deadline for tax related compliance has been extended. The Covid-19 epidemic has caused so much uncertainty in everyone’s mind that it has become mandatory to make informed decisions. The way things are moving, we may see another expansion in the future.