Business Management Archives - Business , Financial & Legal Consultant In India

January 4, 2021January 4, 2021

Several ways to wind up a company

It is ideal to leave a sinking and an ill-fated ship than to go down with it. A business might require to be shut for several reasons: business failure or any other unavoidable situations. This write up will aid you in learning several ways to dissolve a company in India.

As per Companies Act 2013, a Company can be shut in two ways.

1. Winding Up

Winding up can be a bit cumbersome and is executed either voluntarily by scheduling a meeting of all stakeholders and passing a special resolution or on the order of Court or Tribunal. Strike Off mode was initiated by the MCA to help the defunct companies to get their names eliminated from the Register of Companies. On 27th December 2016, MCA informed new rules i.e. Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 standard norm for closing the private limited company as per companies act 2013. By releasing the form STK 2, the ministry of Corporate Affairs has brought the Section 248- 252 of 2013 act into force.

2. Fast track Exit

This is a process that was worth the wait and got enabled on 5^th April 2017. This method was brought in the Section 248 of Companies Act 2013. Fast Track exit happens in two ways:

Suo Moto by Registrar

The registrar would take down the name of Company on his own if:

Company is unable to start any business in a year of its incorporation

The company has not performed any business or Activity for the last 2 financial years and has not asked for the status of Dormant Company.

The Registrar provides a notice (STK-1) of his intent to take off the name and ask for the Company representation in 30 days.

To be noted: Liability on the part of Directors of the company will remain. ROC can activate penalty clauses anytime, and the penalty usually ranges from INR 50K to INR 5Lakhs per director.

Voluntary Elimination of Name with Form STK 2

The company can even file an application to the Registrar of Companies for taking down the name by filing form STK-2 together with a fee of Rs 5000/-. Once the form is filed, the Registrar has the authority to convince him that all outstanding amount of the company for the meeting and its liabilities and other obligations have been realized. ROC can also give a show cause notice if there is a default in filing returns or other obligations. Post above formalities, ROC gives a public notice and takes off the name of Company post its expiry.

Note: The form is in approval. So, relevant ROC can seek the completion of the fillings.  

Details needed

Incorporation Certificate
Director Identification Number
Pending Litigation Proceedings if any

Documents needed

Application in form STK-2
Government filing fees: INR 5,000/-
Copy of Board resolution empowering the filing of this application;
A statement of accounts displaying the assets and liabilities of the Company created till a day, not more than thirty days prior to the date of application and authorized by a Chartered Accountant
The shareholder’s approval through Special Resolution
If a company governed by any other authority, consent of such authority shall also be needed.
Copy of concerned order for delisting, if any, from the relevant Stock Exchange;
Indemnity bond in Form No. STK-3;
Affidavit in Form No. STK-4

Note: This form has to have the signature of a practicing CA or CS  

Companies that are not fit to file for voluntary strike-off:  A company lis not supposed to file the form STK 2 at any time in the last 3 months if the company has

Changed its name or moved its registered office from one State to another;

Created a disposal for property value or rights held by it, urgently

Before cesser of trade or otherwise performing business, for the sake of disposal for gain in the usual course of trading or otherwise conducting business;

Involved itself in any other activity other than the one which is essential or expedient for the sake of making an application according to that section, or deciding to do so or finishing the affairs of the company or adhering to any statutory requirement;

Filed an application with the Tribunal for the approval of a compromise or arrangement and the matter is still pending conclusion; or

Wound up under Chapter XX of Companies Act or under the Insolvency and Bankruptcy code, 2016

Companies that are forbidden from using Fast Track Exit option:

Companies Registered Under Section 8

Listed companies

Companies delisted as a result of non-compliance of listing regulations or listing agreement or any other statutory laws;

Vanishing companies;

Companies where inspection or probe is ordered and going on or actions on such order have not been taken up or were concluded but prosecutions as a result of such inspection or investigation are pending in the Court;

Companies where notices were served by the Registrar or Inspector (under Section 234 of the Companies Act, 1956 (old Act) or section 206 or section 207 of the Act)and reply thereto is pending;

Companies facing prosecution for an offense that is pending before any court;

Companies whose application pertaining to compounding is pending;

Companies which have accepted public deposits which are either outstanding or the company is in default in repayment of the same;

Companies possessing charges which happen to be pending for satisfaction.

Once your company name is struck off from Register:Once the name of the company is taken off from Register, from the date specified in the notice under sub-section (5) of section 248, such an entity stops functioning as a company and the Certificate of Incorporation issued to it will be considered as cancelled from such date except for the sake of recouping the amount due to the company and for the payment or discharge of the liabilities or obligations of the company.

November 23, 2020November 23, 2020

Govt must lower 1% TDS on e-commerce deals to reduce cash liquidity impact for MSME sellers

E-commerce, a rising industry in India, has provided humongous investments in infrastructure and logistics in the last 10 years. It has even generated innumerable number of direct and indirect jobs, and assisted money generation in the entire country, with chief effects witnessed in Tier II and Tier III cities. Evolving at a quicker rate, the e-commerce has attracted unwanted attention of regulators and led to imposition of more taxes and compliance burden. The sector has seen a large number of regulations being thrust into the earlier stage itself. This has to be stopped as there is a requirement to liberalize policy-making for e-commerce and internet companies to back the sector’s growth as it has generated a lot of jobs.

The Finance Act 2020 has included a fresh section 194-O in the Income Tax (IT) Act regarding payment by an e-commerce operator (or operator) to an e-commerce participant (or online seller(s)). This warrants the e-commerce operators to reduce income tax (TDS) at the rate of 1 per cent from the cumulative amount of sale of goods/ services/ both, during credit of the amount of sale in the account of the e-commerce participant.

Online retail (or e-commerce) in terms of percentage of entire retail in India comes to around 3 per cent, meaning a minor online seller base. Section 194-O also exempts online sellers from gross merchandise sale of less than Rs 5 lakh from the last year. This leads to a minority seller base (as a percentage of overall retail) that would give the concerned TDS and thereby defeat the whole objectives. Implementation in the present manner can be looked into by reducing the concerned TDS rate (to say 0.25 per cent) to cut down cash flow impact for MSME. This will aid in bringing down the amount of working capital that gets blocked and critically in these pandemic times, it will do a world of good.

The government can look towards changing the base for TDS calculation from Gross to Net Sales Consideration which is exclusive of GST and fees to operators. The proposed calculation of TDS on Gross Sale Amount, which includes GST, is a case of enforcing a tax-on-a-tax. Along with TCS, the combined impact on blocked working capital would be greater than two percentage points. This would put online sellers working under a high-volume, low-margin model under immense pressure.

TCS collection as the GST law is computed at 1 per cent of the total value of taxable supplies, which even factor in returns (which happened to be roughly 30 per cent for e-commerce companies). In a bid to have consistency in provisions, the Government of India might go for the same Net Sale Consideration (excluding GST and fees/ charges payable to operators) after returns. Together with the consideration in (2) this would also assist in reducing the amount of working capital of online sellers getting blocked while following the no tax-on-tax principle.

The Finance Act 2020 has even included a new clause 1h in Section 206-C of the Income Tax (IT) Act which mandates that all sellers getting sale consideration for goods beyond Rs 50 lakh in any preceding years shall take it from the buyer TCS of 0.1 per cent of the sale consideration going above Rs 50 lakh. This multiplication in taxation will result in strict compliance and blocking of working capital. This can lead to a super hike in the cost of doing business across the whole supply chain of supplier, wholesaler/trader and seller.

The data gathered on sellers via TCS collected by operators, together with data on sellers (offline and online) as per the extended scope of Section 206-C will be an adequate measure for the income tax authorities to curb tax avoidance across majority sellers. So, the Government of India has to reassess the implementation of 206-C (1h) in a bid to reduce the amount of taxable transactions to improve the Ease of Doing Business.

The government has to understand the importance of these e-commerce platforms as they happen to be the distribution medium of India’s biggest job provider- the MSME sector. Therefore, it should look at offering and developing an ecosystem having convenient Tax Regulations. E-commerce sector has to be accommodated the way the IT Sector has been in India.

November 23, 2020November 23, 2020

How Companies are dissolved legally?

What do you mean by Winding-Up?

Winding-up happens to be a circumstance where the life of a company has ended and property is administered so as to benefit the shareholders & creditors.

Form of Winding-Up

By court ( NCLT)/ mandatory Winding-up

Voluntary Winding-up (provisions regarding voluntary winding-up have been abrogated and has now been moved to Insolvency & Bankruptcy code).

Voluntary Winding-Up: The Insolvency and Bankruptcy Code, 2016 regarding re-organization and insolvency resolution of companies, partnership firms and individuals in a timely way.

The Insolvency and Bankruptcy Code, 2016 pertains to substances regarding the insolvency and dissolving of a company where the least amount of the defaulting is Rupees one lakh at present but it might be hiked up to Rupees one crore by the Government, via notification).

Compulsory (Tribunal) winding up

The winding up procedure is carried out by the tribunal. Also called tribunal winding up, this procedure is single-handedly performed by the tribunal and the company has minor or zilch say in the process. Hence, a company will be reduced to a mere spectator and will not follow any directions.

Conditions regarding voluntary wind up:

If the Company is not able to pay back its debts.
A special resolution will be passed by the company for closure.
If a company acts contrary to the principles/interests/sovereignty of the nation.
If the company has jeopardized ties with other nations.
If financial statements or annual returns for the last 5 years has not been filed.
If the tribunal deems it fit and fine to dissolve the company.
If the company has been involved in illegal business or illicit practices.
Any member, part of the founding committee of the firm, is found guilty of wrongdoing.

Manners of Dissolution

Liquidation of an enterprise could be executed in any of the following ways:

By transfer of a company’s undertaking to some other as per a scheme of reconstruction or amalgamation, in such a scenario, the transfer or entity will be dissolved by an order of the Tribunal without wind up; and

With the liquidation of the company, whereby assets of the company are liquidated and given for paying its liabilities. The rest, if any, is distributed among the members of the company, in line with their rights.

December 31, 2019December 31, 2019

What Is Joint Venture ?

In today’s business World , every Organization focuses on the expansion of its business and enhances its revenue in a small period of time . In such a scenario , Joint Venture agreement Plays an important Role .It can be defined as an agreement that includes two or more parties agreed on a common prospective with better utilization of resources in order to achieve desired target or outcome.

There is a difference between joint venture and Merger as merger leads to transfer of ownership whereas in case of Joint venture there is no such case of ownership transfer.

Joint Venture can be classified in two types namely –

1]Equity Based Joint Venture – It can be defined as an agreement between the two companies to enter into a separate business venture together .Each partner participated in gains and losses according to the percentage equity ownership they have as per the agreement.

Equity joint venture is one of the best mediums the best way in which a foreign company can establish its business in India and it is also fruitful for an indian company as it gets the required amount of investment and technology due to the venture.

Contractual Based Joint Venture – It can be defined as an agreement in which two parties come together for a particular business project and sign a contract with terms that define that they will be together for that particular project only.

The franchise Business is a great example of Contractual Based Joint Venture that includes franchisee and franchise owner entering a joint venture for a specific project that has no resemblance to their individual work or business as it will carry on in a similar manner .

Checklist before entering into Joint venture –

A] A Proper and deep research work to be done on the Business activities of other company

B] SWOT Analysis is mandatory to be done our business as it provides us important knowledge of our ongoing business in terms of strength , weakness , opportunities , threats of the company

C] One should also compare the working model and criteria of his company with the one you are going to be in venture agreement

D] A view of the management and its employees should always be taken into consideration

Process of Joint Venture

1] The selection of an accurate and right partner is the first and most important step for having a successful Joint venture . The culture and working module of a proposed partner should be similar with your organization or company.

2] The second step leads towards signing a memorandum of understanding {MOU} that defines terms and conditions on the basis of which both parties are entering into the Joint venture agreement .Each and every point that defines the need of Joint venture is marked here.

3] Joint Venture Agreement and MOUs should always be drafted in the Presence of Corporate law expertize.

4] All Details such as type of firm ,source of funding , stake of shareholders , contribution of intangible assets etc. should be mentioned in the joint venture agreement .It should also include the exit Strategy of the involved parties as they might try to dissolve the venture.

5]The next step is the selection of name for the Joint venture with the consent of both the parties

6]After formulation of Agreement , the last and final step is to register the company and the articles of association.

Important Clauses to be mentioned in Joint venture Agreement –

There are some important clauses that should always be highlighted in the Agreement are provided below –

1] The amount of capital being invested by the involved parties in the joint venture

2] It should be mentioned how the profits, losses, liabilities to be distributed

3] Mentioning the responsibilities and work of parties involved in the venture

4] Mediating mechanism and procedure to be followed in case any dispute may arise in future

5] Proper data to be maintained of the new venture that include administrative and financial records

6] Exit Strategy should be mentioned in case both the involved parties are ready for dissolution of Joint venture.

Opportunities /Advantage of Having Joint Venture Agreement –

The joint venture Agreement provide various advantages being highlighted below –

1] The new joint venture agreement provides opportunities to involved parties such as access to new resources in terms of technology , experience and talented staff , modern assets and equipment , capital investment etc.

2] It also leads to a new client or customer acquisition for involved parties which might not have been possible before being entered into agreement .

3] It also leads to sharing useful ideas , opinions , and information which will be beneficial in terms of growth and development of the new business.

4] Due to two or more parties involved , It also enhances the workforce level and speed of production of the organization.

5] In case one of the companies involved has a better reputation or goodwill in the market it will ultimately provide assistance to the other company to enhance its image and reputation in the market.

However it should be kept in mind that if Joint ventures are improperly planned then due to certain aspects like poorly drafted contracts ,cultural differences , misunderstandings between the parties it may lead to the termination of agreement.

Disadvantages of the Joint Venture Agreement –

Basically joint ventures have more advantages compared to disadvantages but one should keep an eye on the disadvantages while entering into joint venture agreement. Some of the disadvantages are as follows –

1] Liability –

In case of joint ventures there is no liability protection being provided to the businesses involved

2] Unequal Involvement-

Both the parties involved in joint ventures do not share equal involvement in the business activities and functioning . For example – When one company is monitoring the production department and the other is responsible for the sales and marketing department .Therefore the responsibilities of both companies differ and as a result the involvement period is also different.

3] Objective –

The objectives of joint ventures are not clearly defined among people involved in the joint venture agreement.

4] Cultural Differences –

In joint ventures two parties are involved and both the parties have different Management teams and carry different working styles and due to this difference of management culture it may lead to poor cooperation and integration of both parties.

Termination of Joint Venture Agreement –

The various factors that may lead to the termination of joint venture agreement are as follows –

1] The parties involved are not able to solve the disputes arising between them

2] Breach of agreement is done by one of the parties involved in the agreement

3]Due to Insolvency

4]The Project being defined in agreement is being finished or completed

The termination policy and rules of the joint venture should be clearly stated in the agreement and in case a joint venture is being terminated due to default of one of the parties involved then the other party shall have the opportunity to get remedies or relief for the losses incurred from other party.

As per the conclusion , it shows that Joint Ventures provides numerous opportunities and advantages to the business involved in the agreement to come together to share their capital , ideas , resources , technology ,equipment ,expertise etc. in order to develop a desired project.

Therefore a proper Agreement is needed to be drafted in order to have a successful joint venture while improper drafting of Agreements may lead to the termination of Joint venture agreement.

May 26, 2019May 26, 2019

A better Choice For Raising Funds for MSME

In the present scenario loans extended by the NBFCs to MSMEs grew rapidly and the experience of banks and NBFC in terms of quality asset explains the difference in the credit growth.

What is NBFC

NBFC is basically Non Banking financial institutions which is registered under the Companies Act, 2013 with principle objective of dealing in financial activities. Companies Financial asset shall constitute of more than 50% of the total asset and income, and Income for Financial statement constitutes more than 50% of gross income.

What is MSME

MSME stands for Micro and Small and Medium Enterprise. It has many benefits as it is given higher preference in terms of Government License and Certification. MSME also avails benefits in bank loans as compared to the interest paid on regular basis.

Role of NBFC P2P in India’s Economic Development

It helps in the supply of credit in the economic growth of economy, and it helps youth as it helps in achieving of cheaper and faster credit. The new entrants entrepreneur with the ability to repay the loan, are provided with the facility of dedicated loan products from various online platform.

In the current scenario as we can see that man and women are equal, therefore its purpose is to be to empower more and more women as it not only increases the economic development and prosperity but also a good indicator in the development of the entire household.

NBFC P2P helps in connecting and lenders with the borrowers by using the digital platform. For faster decision making and implementation, NBFC P2P has cut through end number of process which ensures interest of both lender and borrower. 24 hours banking facility is available for borrower.

Why NBFC P2P a better choice for raising funds for an MSME these days?

NBFC environment has now been changed as it provides larger opportunity for income seeking investor to diversify their portfolio which was earlier available to the Banks. Potential and e investor dealing in MSME sector are considering P2P platforms for various reasons-

Returns which are provided are highly competitive when considered against average returns delivered by other market linked investment like MFs and stock market.
In this process, both lender and borrower can choose their specified period of time between 6 to 36 months.
It provides diversification that can easily be attained by borrowers profile.
Availing more options for small business where in starting money is required for the temporary shortfall or to meet out the revenue expenses.
It bridges the gap of risk factor involved in funding the small business, as small business srae dependent of cash transactions.

Conclusion

NBFC P2P player has becoming more popular in MSME and in small business financing. It lends fund to the business of MSME by better choice to avail funds. NBFC manly focuses on young entrepreneur with potential and business ideas. It also empowers women entrepreneurs which also helps in increasing and improving economic growth of the country. Therefore, it can e said that P2P is the better choice for availing funds to meet out the revenue expenses and working capital requirement.

May 25, 2019

MCA announced- Companies (Incorporation) Fifth Amendment Rules, 2019

In its latest update to the Companies Act, MCA has come up with new amendment with companies (Incorporation) fifth amendment rules, 2019. It establishes a rule for naming a company. This amendment [provides details about name similarity, undesirable names and names that are not allowed for company incorporation.

Contents of Companies (Incorporation) Fifth amendment rules, 2019

The following notifications were issued by Companies Incorporation are as follows-

The first part establishes rules for names which resembles too nearly with the name of the existing company- in this rule the company name which has been applied incorporation would only be considered similar to the ones Only registered under the newly established rules. Under this part there are 12 rules established. It says that under sub rule 1 the contents or the 12 rules are to be disregarded when a comparison is made between the names of the company.
The second part establishes parameters of what are considered to be undesirable names. There are 19 different rules under that establish the types of names that are not desirable for the purpose of Company Incorporation in india.
The third part is the part of the previous section. It establishes the words and expressions that cannot be used for company registration. There are over 27 such words that cannot be used within the names of the company if the company wants to be registered.

The Ministry has elaborated a variety of illustrations under this rule while determining the name of the company and companies (incorporation) fifth amendment rules, 2019 has divide the rule into two parts-

Rule 8A
Rule 8B

What is Rule 8A?

These rule specifies the list of undesirable names, and

What is Rule 8B?

These rules are for the word or expression which can be used only after obtaining a previous approval of central government.

Key Highlights of Company incorporation Fifth amendment, 2019

The following matters are to be disregarded while comparing the names

The words like private, co, Unlimited, Limited, OPC pvt. Ltd, IFSC Limited etc.
The plural or singular forms of words in one or both names.
Use of different tenses in one or both names.
The order of words in the names.
Addition of the name of the place to a current name which does contain name of any place.
addition , deletion, or modification of numerals or expressions denoting numerals or expressions denoting numerals in an existing names, unless the numeral represents any brand.

Provison

Provided that clause (f) to (h) and (I) shall not be disregarded while comparing the names if an existing company has provided a no objection by way of a Board resolution.

April 11, 2019

Mandatory filing of DPT 3 for return of Deposits

This is a mandatory Filing of form which is mandatory for the specific companies who have taken loans during the specific period and does not consider them as deposit.

What is DPT- 3

Companies that have taken money or debt from any entity from 1st April, 2018 and 22nd January, 2019 have to file a one time return to MCA. and the return is filed through filling of this form. The applicability of this form is present for all types of debts namely-

Secured
Unsecured
External
Commercial borrowings

Who needs to file form DPT-3?

Companies that have taken money or debt from any entity from 1st April, 2018 and 22nd January, 2019 have to file a one time return to MCA.

Subsidiaries Companies
Holding company
Associate company
Money taken from Directors of the company

Who are eligible to file form DPT-3?

Business entities are liable to file this form

One person company
Private Limited company
Public Limited Company
Section 8 Company

However. Government companies are exempted to file the form DPT-3

Due date to file DPT-3 form

This year filing date of this form is 25th of April, 2019

Documents Required

Following are the documents which are required to file this form and they area follows:

Certificate from the auditor
Deposit Insurance contract
Trust Deed Copy
Copy of the Instrument creating charge ( it is mandatory if Trust deed is there of a company).
A list of depositors- this would include a list of matured deposits that have been issued but have yet to be cleared. It needs to be shown separately.
Details of the Liquid Assets ( Details of assets that can be sold)
Any other Document like an outstanding receipt or money or loan taken by a company which has not been filed or considered as Deposits.

If your company falls under this requirement, then you must consult BIATconsultant for its services.

March 3, 2019March 3, 2019

What is the commencement of certificate of business?

There used to be a certificate for the commencement of the business. It was put into the full force until the Companies (Amendment) Ordinance, 2018. Under this ordinance until and unless a company has not filed a declaration within 180 days from the Company Registration that company cannot commence their business. This declaration states all the shareholders of the company and have paid the values of shares as what stated in the MOA of the company. So here in this blog we will discuss the format of this declaration, and documents required for this declaration and fees and penalties for complying with the orders.

Format

I am authorised by the Board of directors of the company through resolution Number______ dated_____ to sign this form and thereby declare that all the requirements of the Companies Act, 2013 and the Company Ordinance Amendment, (2018) and the rules made thereunder in respect of the subject matter of this form and matters incidental thereto have been complied with. I further declare that:

Whatever is stated in this form and in the attchments thereto is true, correct and complete and no information material to the subject matter of this form has been supressed or concealed and is as per the original records maintained by the company.
All the requierment attachment have been completely and legibly attached to this form.
Every subscriber to the MOA has paid the values of share agreed to be taken by him.
The company has filed with the Registrar a verification of its registered office as provided in sub section (2) of section 12.

Documents that have to be attached-

COI of the Company
PAN of the company
List of directors and shareholders of the company
Bnak statements of the Directors and shareholders of the company
ID proofs of the same
Receipt proof (if any)

Fee structure of the share certificate

Share capital involved

Fee to be paid

Less than 1 lakh	Rupees 200
1,00,000- 4,99,999	Rupees 300
5,00,000- 24,99,999	Rupees 400
25,00,000- 99,99,999	Rupees 500
1,00,00,000 or more	Rupees 600

What if you don’t comply with the Declaration

Penalty on the company- if the company do not file the declaration then there is a penalty of Rs. 15000/- on the company.

Penalty on directors- the defaulted Directors have to pay the penalty of INR 1000/- per day after the 180 days limit has been passed.

Company removal- if the registrar has the reasonable cause after the 180 days of incorporation then he can also strike off the company from the companies register.

Not filing a declaration according to the new amendment in the year 2018 is a hassle. Therefore to get relief from the hassle you can get in touch with BIATConsultant for further assistance and we can ensure that your company is registered hassle free and also ensures for its commencement declaration.

January 13, 2019

Public Announcement of Corporate Insolvency

Once an application for Insolvency bankruptcy has been submitted under section 9, IBC states that immediately after submitting application for Interim resolution Professional has to be appointed and a public announcement has to be made regarding the same.

When is the public announcement made?

Right after the initiation of application for insolvency bankruptcy has been submitted then appointment of interim resolution professional announcement has to be made in public and if not done so then the Interim resolution professional himself has to make an announcement.

What constitutes in Public Announcement?

Public announcement includes following things:-

It should contain corporate debtor credentials in which name and address of the corporate debtor.
Credentials Of the authority ( whoever is the authority) in which the corporate debtor is registered or incorporated is to be provided.
The last date of submissions of the claims has to be there.
Details of interim resolution professional who is going to responsible for conducting the insolvency resolution procedure has to be there.
If there are any false and misleading claims, then information about this claim nad penalties given to them has to be published accordingly.
The closing date of insolvency resolution process to be mentioned.

How to make an announcement?

Form A of the schedule has to be filled to make a public announcement.
The announcement is to be publicise:-

In English language and in regional language in news paper. And this newspaper should have a wide circulation at the corporate office and the principle office of the corporate debtor. And the circulation should be everywhere where corporate debtor conducted his business.
If there is a website of corporate debtor, then there also announcement has to be made.
If there is a website specified for the purpose of public announcement, then there also public announcement has to be made.

The announcement shall provide the last date of submission of the proofs of claims by the operational financial creditors. The date is to be 14 days from the appointment of Interim Resolution Professional.

The expenses depends on the applicant to bear them or else the same can be reimbursed by the creditor of companies to a particular cost.

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.